(2) When a petition for incorporation is filed under ORS 221.031 (1), an economic feasibility statement concerning the proposed city described in the petition shall also be filed with the county clerk. The economic feasibility statement shall be prepared by the persons designated as the chief petitioners and shall form the basis for the proposed permanent rate limit for operating taxes required by ORS 221.031 (3). The economic feasibility statement shall contain:
(a) A description of the services and functions to be performed or provided by the proposed city;
(b) An analysis of the relationship between those services and functions and other existing or needed government services; and
(c) Proposed first and third year budgets for the new city demonstrating its economic feasibility. [1989 c.92 §28; 1997 c.541 §352; 2001 c.557 §3; 2007 c.669 §4]