Article IX. CREATION, ETC., OF SANITARY DISTRICTS

Section 1. The circuit court of any county in this state having a population of more than 500 inhabitants per square mile, or of any county adjoining any county in this state having a population of more than 1,000 inhabitants per square mile, or of any county adjoining a city having a population of 170,000 inhabitants, or more, or the judge of such court in vacation, upon the petition of 50 qualified voters of the proposed district, may make an order creating a sanitary district or districts in and for such county, which order shall prescribe the metes and bounds of the district.

On and after the effective date of the amendments to chapter 161 of the Acts of Assembly of 1926 made by the General Assembly of 1944, all the provisions of such chapter, as amended, shall be fully applicable to any and all sanitary districts heretofore created in any county included within the provisions of such chapter by reason of such amendments, and the provisions of the sanitary district act under which any such district was created shall no longer apply.

Section 2. Upon the filing of the said petition the court shall fix a day for a hearing on the question of the proposed sanitary district, notice of which hearing shall be given by publication once a week for three consecutive weeks in some newspaper of general circulation within the said county. At least ten days shall intervene between the completion of the publication and the date set for the hearing, and no such district shall be created until the said notice has been given and the hearing had.

Section 3. After the entry of such order creating a sanitary district of such county, the board of supervisors thereof shall have the following powers and duties, subject to the conditions and limitations hereinafter prescribed:

(a)

To construct, reconstruct, maintain, alter, improve, add to and to operate water supply, sewerage, garbage disposal, heat, light, power, gas, sidewalks and fire-fighting systems, for the use and benefit of the public in such sanitary district.

(b)

To acquire by gift, condemnation, purchase, lease, or otherwise, and to maintain and operate any such water supply, sewerage, garbage disposal, heat, light and power and gas and sidewalks and fire-fighting systems in such district.

(c)

To contract with any person, firm, corporation or municipality to construct, establish, maintain, and operate any such water supply, sewerage, garbage disposal, heat, light, power, gas, sidewalks and fire-fighting systems in such districts.

(d)

To require owners or tenants of any property in the said district to connect with any such system or systems, and to contract with the said owners or tenants for such connections. In order to require owners or tenants of any property in the said district to connect with any such system or systems the board of supervisors shall have power and authority to adopt ordinances so requiring said owners or tenants to connect with said systems, and to use the same, and said board of supervisors shall have power to provide for a punishment in said ordinance of not exceeding a $50.00 fine for each failure and refusal to so connect with such systems, or to use the same. Before adopting any such ordinance the board of supervisors shall give public notice of the intention to propose the same for passage by posting hand bill notices of such proposal in three or more public places in said sanitary district at least ten days prior to the time the ordinance shall be proposed for passage. Said ordinance shall not become effective after its passage until ten days' like notice has been given by posting copies of such ordinance in three or more public places in said district. Violations of such ordinance shall be tried before the trial justice court of such county as is provided for trial of misdemeanors, and with like right of appeal.

(e)

To fix and prescribe the rates of charge for the use of any such system or systems, and to provide for the collection of such charges. And to enable the said board to enforce the collection of charges for the use of any such systems against the person or persons, firm or corporation using the same, the said charges when made for the use of any such system shall be collectible by distress, levy, garnishment, attachment or otherwise without recourse to court procedure, except so far as the selected procedure may require the same. And the board shall have power to designate as its agent for the purpose of collection such officer or officers, person or persons as it may determine, and the office or officers, person or persons shall be vested with the same power and authority as a sheriff or constable may have in like procedure.

(f)

To employ and fix the compensation of any technical, clerical, or other force and help which from time to time, in their judgment may be deemed necessary for the construction, operation or maintenance of any such system or systems.

(g)

To negotiate and contract with any person, firm, corporation, or municipality with regard to the connection of any such system or systems, with any other system or systems now in operation or hereafter to be established, and with regard to any other matter necessary and proper for the construction or operation and maintenance of any such system within the said sanitary district.

(h)

To contract for the extension of any such system into territory outside of said district, and for the use thereof, upon such terms and conditions as said board may from time to time determine upon.

Section 3-a. In addition to the powers and duties conferred upon the board of supervisors in section 3, such board shall have the following powers and duties, subject to the conditions and limitations hereinafter prescribed:

(a)

To employ and fix the compensation of counsel for such legal advice or services as the board deems necessary;

(b)

To levy and collect an annual tax upon all property in such sanitary district subject to local taxation to pay, either in whole or in part, the expenses and charges incident to maintaining and operating water supply, sewerage, garbage removal and disposal, heat, lights, fire-fighting equipment and power and gas systems and sidewalks for the use and benefit of the public in such sanitary district;

(c)

To exercise the same power and authority for the abatement of nuisances in such sanitary district as is vested by law in councils of cities and towns for the abatement of nuisances therein, and it shall be the duty of the board to exercise such power when any such nuisance shall be shown to exist.

Section 4. In order to raise the necessary funds to carry into effect the foregoing powers the board of supervisors in any such county in which such sanitary district has been created shall have power, subject to the conditions and limitations of this act, to issue the bonds of the said county to an amount in the aggregate of not exceeding 18 percent of the assessed value of all real estate in the said sanitary district subject to local taxation.

Section 5. The circuit court of such county, or the judge thereof in vacation, upon the petition of a majority of the board of supervisors of said county, or upon the 50 qualified voters residing in said sanitary district shall make an order requiring the judges of election, at the next election of county officers or at any other time not less than 30 days from the date of such order, which shall be designated therein, to open a poll and take the sense of the qualified voters of the said sanitary district or districts on the question whether the board of supervisors shall issue bonds for said purposes.

Section 6. The regular election officers of said county in and for the said sanitary district, or districts, at the time designated in the order authorizing the vote, shall open polls at such voting places in the said district or districts, as may be designated in the said order, and shall conduct such election and close the polls in such manner as is provided by law in other elections. At the said election there shall be printed on each ballot in separate lines the following:

For Bond Issue
Against Bond Issue

Voters desiring to vote in favor of the issuance of said bonds shall strike out the words "against bond issue," and voters desiring to vote against bond issue shall strike out the words "for bond issue." Voters striking out or erasing the words "for" or "against" shall be deemed to have stricken out or erased the entire line. The judges of election at the several voting places shall immediately after the closing of the polls at each of the said places count the ballots deposited, and shall, within two days after the said election, make return thereof as is provided in other elections. Said ballots shall be printed and furnished by the regular election officers.

Section 7. The commissioner of election of said county shall, within two days after the judges of election have made return of the poll books and ballots as aforesaid, meet at the office of said clerk and, having taken an oath before him faithfully to discharge their duties, canvass the returns and certify the results thereof to the circuit court.

Section 8. If it shall appear by the report of the commissioners that a majority of the qualified voters of the said sanitary district or districts voting on the question, are in favor of issuing the bonds for the purposes aforesaid, the circuit court, or the judge thereof in vacation, shall, at its next term, enter of record an order requiring the supervisors of the county to proceed at their next meeting to carry out the wishes of the voters as expressed at the said election.

Section 9. Whenever the sense of the qualified voters of any district or districts shall be taken on the question whether the board of supervisors of the said county shall issue bonds for the purposes aforesaid, the said election and returns shall be subject to the inquiry, determination and judgment of the circuit court of the county in which said election was held, upon the written complaint of 25 or more of the qualified voters of such county, of an undue election or false returns, two of whom shall take an oath that facts set forth in such complaint are true to the best of their knowledge and belief, and the court shall in judging of such election and returns, proceed upon the merits thereof and determine concerning the same according to the constitution and laws of this state, but such complaint shall not be valid unless it shall have been filed within 30 days after said election in the clerk's office of the said circuit court. The board of supervisors of such county shall be made a defendant by summons or notice to its chairman of the filing of the complaint, and after such service of notice on the chairman of the board of supervisors, either party, upon reasonable notice to the other, shall be at liberty to take depositions to sustain or invalidate such election. Service of notice on any three of the complainants shall be sufficient. The court shall proceed at its next term after such service of summons or notice to determine the contest without a jury on the evidence, oral or written, unless good cause be shown for a continuance, and shall make a proper record of its judgment. If the judgment be that the election was a valid one in favor of the issuing of bonds in said district or districts, the court shall make an order in conformity with the preceding section [section 8].

Section 10. The board of supervisors at their meeting or as soon thereafter as practicable, shall determine what amount of bonds shall be issued for constructing and operating said system or systems in said district or districts, but the maximum amount of bonds issued shall in no case exceed the maximum amount prescribed in section 4 of this act, and in event they do not at said meeting direct the present issuing of all the said bonds, they may thereafter, from time to time, direct the residue thereof to be issued to carry out the wishes of the voters, so far as necessary, as expressed in such election, and in event the board, for any reason, fails or refuses to issue the bonds so authorized to be issued, the circuit court of the county may, upon the complaint of ten qualified voters of such district and after ten days' notice to the chairman of the board, for cause shown, issue an order directing them to issue the said bonds or any unissued residue thereof, or such portion thereof as the court may, from time to time, deem proper to be issued in order to carry out the wishes of the voters as expressed in said election. They shall have the power to appoint an agent or agents to sell said bonds (and to pay said agent or agents a commission for negotiating said sale not to exceed three percent of the amount of bonds sold by them, or to pay such sum to the purchaser of such bonds, provided that said bonds shall be sold to be paid for in lawful money only, and shall not be sold at less than par value). When such a sale of bonds has been negotiated, the board of supervisors shall issue the same. Such bonds may be either registered or with coupons attached, as said board of supervisors may prescribe, and shall have written or printed in ink the following sentences: "These bonds are issued for the construction and operation of a public ___________ system in ___________ sanitary district, but the full faith and credit of the entire county of ___________ is hereby pledged for their payment." Such bonds shall be signed by the chairman and countersigned by the clerk thereof under the seal of the board; shall be in denominations of $100.00 or some multiple thereof; shall bear interest at a rate not exceeding six percent per annum, payable semiannually, both principal and interest to be payable at such place or places as may be determined by the board of supervisors, and shall be payable not exceeding 34 years from the date thereof at said office, but may, in the discretion of the said board, be made redeemable at such time or times within such period or periods and upon such notice as the said board may prescribe and stipulate upon the face of the bonds when issued. The board shall deliver them to the treasurer of the county, who shall deliver said bonds to the purchasers thereof, or [on] their order, upon the payment of the price thereof. The said treasurer and his sureties shall be liable for the amount received for said bonds as though it were a county levy, and said funds shall be expended for the purposes and in the sanitary district or districts for which it was intended, and none other. The said treasurer shall receive as compensation for his services hereunder one-eighth of one (0.125) percent of the amount thus coming into his hands, and also the reasonable cost to him of giving surety on such additional bond or bonds as may be required of him, if any, on account of his receipts heretofore or hereafter of said funds, and the board of supervisors of such county may direct the treasurer to deposit the proceeds of said bond issue in such bank or banks as it may approve, to the credit of the said treasurer, to be paid out on his checks therefor, and at the rate of interest to be specified, and all interest accrued therefrom shall be accounted for by the said treasurer and be expended for the purposes for which the bonds were issued, and insofar as not necessary therefor, shall be used for the payment of the interest on the bonds, or shall be paid into the sinking fund to redeem the principal thereof at maturity.

Section 11. The net revenue derived from the operation of such systems shall be set apart by the board to pay the interest on the bonds so issued or to be issued, and to create a sinking fund to redeem the principal thereof at maturity. The board of supervisors is hereby authorized and empowered to apply any part or all of such sinking fund to the payment, if redeemable by their terms, or to the purchase of any such bonds, at any time, and all bonds so paid off or purchased by the board of supervisors shall be immediately cancelled, and shall not be reissued. The board of supervisors is authorized and empowered to invest all accumulations of money to the credit of the sinking fund in bonds of the United States, of the State of Virginia, or of any county, city or town of the State of Virginia, or to lend out, upon real estate security, the loan not to exceed 50 percent of the assessed value of such real estate, or deposit in bank at interest, all accumulations of money to the credit of the sinking fund and to collect and reinvest the same and the interest accruing thereon from time to time, so often as is necessary or expedient, until the bonds become subject to call; provided that no money to the credit of the sinking fund shall be loaned out or deposited or invested by the board of supervisors unless such loan, deposit or investment is first approved by the circuit court of the county, or the judge in vacation, and the form of the security be examined and approved by the commonwealth's attorney of the county, which approval shall be entered of record in the order book of the court.

The treasurer shall not be liable for any funds herein provided for that are lost while on deposit made by order of the board of supervisors with any bank or banks, or when invested in any real estate security as provided herein, but the board of supervisors may require of any such bank a bond, with corporate or other surety, to secure such deposit.

The board of supervisors shall, if necessary for the payment of interest on the bonds or to increase the sinking fund provided for hereunder, levy an annual tax upon all the real property in such sanitary district subject to local taxation to pay such interest and to make payments into such sinking fund.

Section 12. When the said county wishes to redeem any of its outstanding bonds subject to call, issued under the provisions of this act, it may, through the chairman of the board of supervisors, give notice of its readiness to do so to the holder in person or by publication thereof once a week for two successive weeks in a newspaper published in said county or nearest thereto. It shall be sufficient in the notice to give the number and amount of such bond, and fix a day for its presentation for payment, which shall not be less than ten days from the date of personal service of notice, or the completion of the publication thereof, as the case may be.

If the bond be not presented on the day fixed for its redemption, interest thereon shall cease from that day.

Section 12-a. In any county in which a sanitary district has been created, or is hereafter created under this act, the board of supervisors of such county may, if they deem it necessary, furnish to any thickly populated area within such district, public utilities, as provided in section 3 of this act, and thereupon they may form such thickly populated area within such sanitary district into a smaller district, hereinafter referred to as "small district," and allocate to such "small district" such sum or sums of money received from the sanitary district bond issue, or issues, as are, in their judgment, necessary for the construction of public utilities within the "small district" so formed.

All of the property subject to local taxation within the "small district" shall be primarily obligated for the payment of the interest and principal on that part of the bonded indebtedness of the sanitary district as is equal to that part of the proceeds therefrom which have been allocated for use within the "small district," and the board of supervisors of the county shall, in the event that the net revenue from the operation of the public utilities is not sufficient to pay the interest and to create a sinking fund to liquidate the amount so allocated, levy an annual tax on all of the property, subject to local taxation in the "small district," to pay such interest and to make payments into the sinking fund. But nothing in this act shall be construed to exempt the sanitary district, and the property subject to local taxation therein, from its obligation under and by reason of such sanitary district bond issue or issues.

In lieu of allocating such sum or sums from the sanitary district bond issue or issues, as hereinbefore provided, the board of supervisors, in order to raise the necessary funds to furnish public utilities to such "small district," shall have the power, subject to the conditions and limitations of sections 4 to 12, both inclusive, of chapter 161 of the Acts of Assembly of 1926, as amended, to issue bonds of the "small district" to an amount in the aggregate of not exceeding 18 per centum of the assessed value of all real estate in the "small district" subject to local taxation and it is further declared that whenever this paragraph is utilized the words "small district" and "district" appearing in sections 4 to 12, both inclusive, of such chapter, as amended, shall be construed to mean "small district" as referred to in this paragraph.

Section 12-b. The board of supervisors of any such county is hereby vested with the power of eminent domain insofar as necessary for the construction, reconstruction, alteration, additions to, maintenance, and repair of any part of such sewerage system, water system, or other public utility, and in the exercise of such power is hereby vested with all of the authority to exercise such power as is given to the state highway commissioner of Virginia by chapter 380 of the Acts of Assembly 1940, as amended.

The enhancement, if any, in the value of the remaining property of the landowner by reason of the construction, reconstruction, alteration, additions to, maintenance and repair of any part of such sewerage system, water system or other public utility contemplated or made by such board, shall not be shown as an offset against the damage, if any, resulting to such remaining property of such landowner by reason of such construction, reconstruction, alteration, additions to, maintenance or repairs; nor shall the taking of any such property under the provisions of this section preclude the board from assessing the land in proportion to the peculiar benefits accruing to such land by reason of such improvement in the same manner and to the same extent that other property may be assessed for the peculiar benefits accruing thereto.