{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/15.2-2116.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/15.2-2116.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/15.2-2116.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/15.2-2116.html"}],"law_id":65470,"edition_id":1,"section_id":65470,"structure_id":14728,"section_number":"15.2-2116","catch_line":"Acquisition by county or city of water supply system or sewage system from sanitary district","history":"1948, c. 154, \u00a7 15.1-293.1; 1972, c. 220; 1997, c. 587.","full_text":"Any county or city may acquire any water supply or sewage systems or water supply and sewage system, from any sanitary district in any such county or city, and the sanitary district may convey the system to such county or city, upon: (i) the payment to the sanitary district by the county or city of the amount of any indebtedness owing by the county or city to the sanitary district with respect to such water supply or sewage system or water supply and sewage system (reduced by the amount of any indebtedness owing to the county or city by the sanitary district in respect of such system), provided that any such amount so paid to the sanitary district shall be set aside and applied to the payment of the outstanding bonded indebtedness of the sanitary district incurred with respect to such water supply or sewage system or water supply and sewage system; and (ii) the assumption by the county or city of the outstanding bonded indebtedness of the sanitary district incurred with respect to such water supply or sewage system, or water supply and sewage system, for which payment is not provided for pursuant to clause (i), or any portion thereof, or the payment by the county or city of moneys (reduced by any amounts paid to the sanitary district pursuant to clause (i)) sufficient for, and to be applied to, the payment of the principal of and interest on such bonded indebtedness or portion thereof not assumed by the county or city and for which payment is not provided for pursuant to clause (i), or a combination of such assumption and payment whereby the payment of the principal of and interest on all such bonds shall be made or provided for.\n\t\tThe county or city may limit its assumption of such sanitary district’s bonded indebtedness to payment from the revenues to be derived from rates, rentals, fees and charges for the use and services of such water or sewage system, or water and sewage system. If at any time the revenues derived from rates, rentals, fees and charges for the use and services of such unified system are insufficient to provide for the operation and maintenance of the system and for payment of principal of and interest on such bonded indebtedness of the sanitary district as they become due, the sanitary district shall levy an annual tax upon all property in such sanitary district subject to local taxation to pay such principal and interest as they become due.\n\t\tNothing contained in the immediately preceding sentence shall, however, be construed to relieve the county or city of its obligations under any such agreement to impose rates, rentals, fees and charges for the use and services of such system sufficient to pay the costs of operation and maintenance and to provide for the payment of such principal and interest. Such agreement shall also provide for the assumption by the county or city of the contracts for materials and services pertaining to such water supply or sewage system or water supply and sewage system, entered into by the sanitary district and existing on the day of such acquisition.\n\t\tMoneys to be applied to the payment of sanitary district bonded indebtedness under this section shall be applied to such payment upon the earlier of the stated maturity of such bonds or the first date after the acquisition that such bonds may be redeemed in accordance with their terms. Pending such application, such moneys may be invested by the governing bodies in investments permitted by subdivisions 1, 2 and 3 of \u00a7 2.2-4500, exclusive of revenue bonds. Amounts earned from time to time on the investment of such moneys and not required for the payment of the principal of and interest and premium, if any, on such bonded indebtedness shall be paid to such county or city and applied to water supply or sewerage purposes, or both. The county or city may enter into a contract with any bank or trust company within or outside the Commonwealth, not inconsistent with the foregoing provisions, with respect to the safekeeping and application of the moneys set aside in accordance herewith for the payment of such bonded indebtedness of such sanitary district, the investment of such moneys and the safekeeping and application of the earnings on such investment.\n\t\tIf there is a sanitary district in any such county or city having both a water supply system and a sewage system, the governing bodies, in their discretion, may acquire either or both of such systems, and if there is a single indebtedness against both such systems and the governing bodies elect to acquire only one such system, then the governing body is authorized and empowered to assume such indebtedness in whole or in part. Any such water or sewage system or water and sewage system acquired by any county or city hereunder shall constitute a “project” as defined in \u00a7 15.2-2602, and such county or city in respect of such project shall have all the powers granted by the Public Finance Act (\u00a7 15.2-2600 et seq.). Any acquisition pursuant to this section of a water supply or sewage system, or water supply and sewage system, of a sanitary district shall be made pursuant to an agreement entered into between the county or city and such district. No proceeding or approvals other than those specifically required by this section shall be required for the acquisition by the county or city from any sanitary district, or the conveyance to the county or city by any sanitary district, of any such system or systems.","order_by":null,"text":{"0":{"id":238055,"text":"Any county or city may acquire any water supply or sewage systems or water supply and sewage system, from any sanitary district in any such county or city, and the sanitary district may convey the system to such county or city, upon: (i) the payment to the sanitary district by the county or city of the amount of any indebtedness owing by the county or city to the sanitary district with respect to such water supply or sewage system or water supply and sewage system (reduced by the amount of any indebtedness owing to the county or city by the sanitary district in respect of such system), provided that any such amount so paid to the sanitary district shall be set aside and applied to the payment of the outstanding bonded indebtedness of the sanitary district incurred with respect to such water supply or sewage system or water supply and sewage system; and (ii) the assumption by the county or city of the outstanding bonded indebtedness of the sanitary district incurred with respect to such water supply or sewage system, or water supply and sewage system, for which payment is not provided for pursuant to clause (i), or any portion thereof, or the payment by the county or city of moneys (reduced by any amounts paid to the sanitary district pursuant to clause (i)) sufficient for, and to be applied to, the payment of the principal of and interest on such bonded indebtedness or portion thereof not assumed by the county or city and for which payment is not provided for pursuant to clause (i), or a combination of such assumption and payment whereby the payment of the principal of and interest on all such bonds shall be made or provided for.\n\t\tThe county or city may limit its assumption of such sanitary district’s bonded indebtedness to payment from the revenues to be derived from rates, rentals, fees and charges for the use and services of such water or sewage system, or water and sewage system. If at any time the revenues derived from rates, rentals, fees and charges for the use and services of such unified system are insufficient to provide for the operation and maintenance of the system and for payment of principal of and interest on such bonded indebtedness of the sanitary district as they become due, the sanitary district shall levy an annual tax upon all property in such sanitary district subject to local taxation to pay such principal and interest as they become due.\n\t\tNothing contained in the immediately preceding sentence shall, however, be construed to relieve the county or city of its obligations under any such agreement to impose rates, rentals, fees and charges for the use and services of such system sufficient to pay the costs of operation and maintenance and to provide for the payment of such principal and interest. Such agreement shall also provide for the assumption by the county or city of the contracts for materials and services pertaining to such water supply or sewage system or water supply and sewage system, entered into by the sanitary district and existing on the day of such acquisition.\n\t\tMoneys to be applied to the payment of sanitary district bonded indebtedness under this section shall be applied to such payment upon the earlier of the stated maturity of such bonds or the first date after the acquisition that such bonds may be redeemed in accordance with their terms. Pending such application, such moneys may be invested by the governing bodies in investments permitted by subdivisions 1, 2 and 3 of \u00a7 2.2-4500, exclusive of revenue bonds. Amounts earned from time to time on the investment of such moneys and not required for the payment of the principal of and interest and premium, if any, on such bonded indebtedness shall be paid to such county or city and applied to water supply or sewerage purposes, or both. The county or city may enter into a contract with any bank or trust company within or outside the Commonwealth, not inconsistent with the foregoing provisions, with respect to the safekeeping and application of the moneys set aside in accordance herewith for the payment of such bonded indebtedness of such sanitary district, the investment of such moneys and the safekeeping and application of the earnings on such investment.\n\t\tIf there is a sanitary district in any such county or city having both a water supply system and a sewage system, the governing bodies, in their discretion, may acquire either or both of such systems, and if there is a single indebtedness against both such systems and the governing bodies elect to acquire only one such system, then the governing body is authorized and empowered to assume such indebtedness in whole or in part. Any such water or sewage system or water and sewage system acquired by any county or city hereunder shall constitute a “project” as defined in \u00a7 15.2-2602, and such county or city in respect of such project shall have all the powers granted by the Public Finance Act (\u00a7 15.2-2600 et seq.). Any acquisition pursuant to this section of a water supply or sewage system, or water supply and sewage system, of a sanitary district shall be made pursuant to an agreement entered into between the county or city and such district. No proceeding or approvals other than those specifically required by this section shall be required for the acquisition by the county or city from any sanitary district, or the conveyance to the county or city by any sanitary district, of any such system or systems.","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1}},"ancestry":[{"id":14728,"edition_id":1,"name":"General Provisions for Public Utilities","identifier":"2","label":"article","depth":4,"order_by":1,"parent_id":13192,"metadata":{},"date_created":"2026-06-26 03:49:34","date_modified":"2026-06-26 03:49:34","permalink":{"id":154517,"object_type":"structure","relational_id":14728,"identifier":"2","token":"15.2\/II\/21\/2","url":"\/15.2\/II\/21\/2\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13192,"edition_id":1,"name":"Franchises; Sale and Lease of Certain Municipal Public Property; Public Utilities","identifier":"21","label":"chapter","depth":3,"order_by":1,"parent_id":12733,"metadata":{},"date_created":"2026-06-26 03:44:25","date_modified":"2026-06-26 03:44:25","permalink":{"id":154333,"object_type":"structure","relational_id":13192,"identifier":"21","token":"15.2\/II\/21","url":"\/15.2\/II\/21\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12733,"edition_id":1,"name":"Powers of Local Government","identifier":"II","label":"subtitle","depth":2,"order_by":1,"parent_id":12720,"metadata":{},"date_created":"2026-06-26 03:43:50","date_modified":"2026-06-26 03:43:50","permalink":{"id":152369,"object_type":"structure","relational_id":12733,"identifier":"II","token":"15.2\/II","url":"\/15.2\/II\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12720,"edition_id":1,"name":"Counties, Cities and Towns","identifier":"15.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":151279,"object_type":"structure","relational_id":12720,"identifier":"15.2","token":"15.2","url":"\/15.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":79360,"structure_id":14728,"section_number":"15.2-2109","catch_line":"Powers of localities as to public utilities and computer services; prevention of pollution of certain water","url":"\/15.2-2109\/","token":"15.2\/II\/21\/2\/15.2-2109","metadata":false},{"id":71006,"structure_id":14728,"section_number":"15.2-2109.1","catch_line":"Prescriptive easements for provision of water and sewer services","url":"\/15.2-2109.1\/","token":"15.2\/II\/21\/2\/15.2-2109.1","metadata":false},{"id":70677,"structure_id":14728,"section_number":"15.2-2109.2","catch_line":"Mutual aid agreements for power and natural gas","url":"\/15.2-2109.2\/","token":"15.2\/II\/21\/2\/15.2-2109.2","metadata":false},{"id":87456,"structure_id":14728,"section_number":"15.2-2109.3","catch_line":"Provision of natural gas distribution service within counties","url":"\/15.2-2109.3\/","token":"15.2\/II\/21\/2\/15.2-2109.3","metadata":false},{"id":57929,"structure_id":14728,"section_number":"15.2-2110","catch_line":"Mandatory connection to water and sewage systems in certain counties","url":"\/15.2-2110\/","token":"15.2\/II\/21\/2\/15.2-2110","metadata":false},{"id":70760,"structure_id":14728,"section_number":"15.2-2111","catch_line":"Regulation of sewage disposal or water service","url":"\/15.2-2111\/","token":"15.2\/II\/21\/2\/15.2-2111","metadata":false},{"id":59568,"structure_id":14728,"section_number":"15.2-2112","catch_line":"Agreements by political subdivisions for sewage or water service","url":"\/15.2-2112\/","token":"15.2\/II\/21\/2\/15.2-2112","metadata":false},{"id":84432,"structure_id":14728,"section_number":"15.2-2113","catch_line":"Connections of fire suppression systems","url":"\/15.2-2113\/","token":"15.2\/II\/21\/2\/15.2-2113","metadata":false},{"id":60869,"structure_id":14728,"section_number":"15.2-2114","catch_line":"Regulation of stormwater","url":"\/15.2-2114\/","token":"15.2\/II\/21\/2\/15.2-2114","metadata":false},{"id":69504,"structure_id":14728,"section_number":"15.2-2114.01","catch_line":"Local Stormwater Management Fund; grant moneys","url":"\/15.2-2114.01\/","token":"15.2\/II\/21\/2\/15.2-2114.01","metadata":false},{"id":56426,"structure_id":14728,"section_number":"15.2-2114.1","catch_line":"Car-washing fundraiser","url":"\/15.2-2114.1\/","token":"15.2\/II\/21\/2\/15.2-2114.1","metadata":false},{"id":58555,"structure_id":14728,"section_number":"15.2-2115","catch_line":"Purchase of gas, electric and water plants operating in contiguous territory","url":"\/15.2-2115\/","token":"15.2\/II\/21\/2\/15.2-2115","metadata":false},{"id":65470,"structure_id":14728,"section_number":"15.2-2116","catch_line":"Acquisition by county or city of water supply system or sewage system from sanitary district","url":"\/15.2-2116\/","token":"15.2\/II\/21\/2\/15.2-2116","metadata":false},{"id":75698,"structure_id":14728,"section_number":"15.2-2117","catch_line":"Contracts with sewerage or water purification company, etc","url":"\/15.2-2117\/","token":"15.2\/II\/21\/2\/15.2-2117","metadata":false},{"id":74215,"structure_id":14728,"section_number":"15.2-2118","catch_line":"Lien for water and sewer charges and taxes imposed by localities","url":"\/15.2-2118\/","token":"15.2\/II\/21\/2\/15.2-2118","metadata":false},{"id":81760,"structure_id":14728,"section_number":"15.2-2118.1","catch_line":"Lien for gas utilities charges and taxes imposed by localities","url":"\/15.2-2118.1\/","token":"15.2\/II\/21\/2\/15.2-2118.1","metadata":false},{"id":60752,"structure_id":14728,"section_number":"15.2-2119","catch_line":"Fees and charges for water and sewer services provided to a property owner","url":"\/15.2-2119\/","token":"15.2\/II\/21\/2\/15.2-2119","metadata":false},{"id":61731,"structure_id":14728,"section_number":"15.2-2119.1","catch_line":"Credit for excessive water and sewer charges","url":"\/15.2-2119.1\/","token":"15.2\/II\/21\/2\/15.2-2119.1","metadata":false},{"id":78767,"structure_id":14728,"section_number":"15.2-2119.2","catch_line":"Discounted fees and charges for certain low-income, elderly, or disabled customers","url":"\/15.2-2119.2\/","token":"15.2\/II\/21\/2\/15.2-2119.2","metadata":false},{"id":65635,"structure_id":14728,"section_number":"15.2-2119.3","catch_line":"Sustainable infrastructure financial assistance","url":"\/15.2-2119.3\/","token":"15.2\/II\/21\/2\/15.2-2119.3","metadata":false},{"id":82149,"structure_id":14728,"section_number":"15.2-2119.4","catch_line":"Fees and charges for water and sewer services provided to a tenant or lessee of the property owner","url":"\/15.2-2119.4\/","token":"15.2\/II\/21\/2\/15.2-2119.4","metadata":false},{"id":81070,"structure_id":14728,"section_number":"15.2-2120","catch_line":"Enforcement of liens for water or sewer charges","url":"\/15.2-2120\/","token":"15.2\/II\/21\/2\/15.2-2120","metadata":false},{"id":57664,"structure_id":14728,"section_number":"15.2-2121","catch_line":"Regulations as to water, sewer and other facilities in subdivisions and development plans","url":"\/15.2-2121\/","token":"15.2\/II\/21\/2\/15.2-2121","metadata":false}],"previous_section":{"id":58555,"structure_id":14728,"section_number":"15.2-2115","catch_line":"Purchase of gas, electric and water plants operating in contiguous territory","url":"\/15.2-2115\/","token":"15.2\/II\/21\/2\/15.2-2115","metadata":false},"next_section":{"id":75698,"structure_id":14728,"section_number":"15.2-2117","catch_line":"Contracts with sewerage or water purification company, etc","url":"\/15.2-2117\/","token":"15.2\/II\/21\/2\/15.2-2117","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/15.2-2116\/","history_text":"

This law was first created in 1948. The record of its establishment is cataloged in chapter 154 of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. Unfortunately, the 1948 \u201cActs\u201d aren\u2019t available online. It has been modified 2 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1972, chapter 220; in 1997, chapter 587<\/a>.<\/p>","references":false,"refers_to":[{"id":82731,"section_number":"15.2-2600","catch_line":"Short title","order_by":null,"url":"\/15.2-2600\/"},{"id":81371,"section_number":"15.2-2602","catch_line":"Definitions","order_by":null,"url":"\/15.2-2602\/"},{"id":65575,"section_number":"2.2-4500","catch_line":"Legal investments for public sinking funds","order_by":null,"url":"\/2.2-4500\/"}],"permalink":{"id":154567,"object_type":"law","relational_id":65470,"identifier":"15.2-2116","token":"15.2\/II\/21\/2\/15.2-2116","url":"\/15.2-2116\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/15.2-2116\/","token":"15.2\/II\/21\/2\/15.2-2116","dublin_core":{"Title":"Acquisition by county or city of water supply system or sewage system from sanitary district","Type":"Text","Format":"text\/html","Identifier":"\u00a7 15.2-2116","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

Any county<\/span> or city<\/span> may acquire any water supply or sewage systems or water supply and sewage system, from any sanitary district in any such county<\/span> or city<\/span>, and the sanitary district may convey the system to such county<\/span> or city<\/span>, upon: (i) the payment to the sanitary district by the county<\/span> or city<\/span> of the amount of any indebtedness owing by the county<\/span> or city<\/span> to the sanitary district with respect to such water supply or sewage system or water supply and sewage system (reduced by the amount of any indebtedness owing to the county<\/span> or city<\/span> by the sanitary district in respect of such system), provided that any such amount so paid to the sanitary district shall be set aside and applied to the payment of the outstanding bonded indebtedness of the sanitary district incurred with respect to such water supply or sewage system or water supply and sewage system; and (ii) the assumption by the county<\/span> or city<\/span> of the outstanding bonded indebtedness of the sanitary district incurred with respect to such water supply or sewage system, or water supply and sewage system, for which payment is not provided for pursuant to clause (i), or any portion thereof, or the payment by the county<\/span> or city<\/span> of moneys (reduced by any amounts paid to the sanitary district pursuant to clause (i)) sufficient for, and to be applied to, the payment of the principal of and interest on such bonded indebtedness or portion thereof not assumed by the county<\/span> or city<\/span> and for which payment is not provided for pursuant to clause (i), or a combination of such assumption and payment whereby the payment of the principal of and interest on all such bonds<\/span> shall be made or provided for.\n\t\tThe county<\/span> or city<\/span> may limit its assumption of such sanitary district’s bonded indebtedness to payment from the revenues to be derived from rates, rentals, fees and charges for the use and services of such water or sewage system, or water and sewage system. If at any time the revenues derived from rates, rentals, fees and charges for the use and services of such unified system are insufficient to provide for the operation and maintenance of the system and for payment of principal of and interest on such bonded indebtedness of the sanitary district as they become due, the sanitary district shall levy<\/span> an annual tax upon all property in such sanitary district subject to local taxation to pay such principal and interest as they become due.\n\t\tNothing contained in the immediately preceding sentence shall, however, be construed to relieve the county<\/span> or city<\/span> of its obligations under any such agreement to impose rates, rentals, fees and charges for the use and services of such system sufficient to pay the costs of operation and maintenance and to provide for the payment of such principal and interest. Such agreement shall also provide for the assumption by the county<\/span> or city<\/span> of the contracts<\/span> for materials<\/span> and services pertaining to such water supply or sewage system or water supply and sewage system, entered into by the sanitary district and existing on the day of such acquisition.\n\t\tMoneys to be applied to the payment of sanitary district bonded indebtedness under this section shall be applied to such payment upon the earlier of the stated maturity of such bonds<\/span> or the first date after the acquisition that such bonds<\/span> may be redeemed in accordance with their terms. Pending such application, such moneys may be invested by the governing bodies in investments permitted by subdivisions 1, 2 and 3 of \u00a7 2.2-4500<\/a>, exclusive of revenue bonds<\/span>. Amounts earned from time to time on the investment of such moneys and not required for the payment of the principal of and interest and premium, if any, on such bonded indebtedness shall be paid to such county<\/span> or city<\/span> and applied to water supply or sewerage purposes, or both. The county<\/span> or city<\/span> may enter into a contract<\/span> with any bank or trust company within or outside the Commonwealth, not inconsistent with the foregoing provisions, with respect to the safekeeping and application of the moneys set aside in accordance herewith for the payment of such bonded indebtedness of such sanitary district, the investment of such moneys and the safekeeping and application of the earnings on such investment.\n\t\tIf there is a sanitary district in any such county<\/span> or city<\/span> having both a water supply system and a sewage system, the governing bodies, in their discretion, may acquire either or both of such systems, and if there is a single indebtedness against both such systems and the governing bodies elect to acquire only one such system, then the governing body<\/span> is authorized and empowered to assume such indebtedness in whole or in part. Any such water or sewage system or water and sewage system acquired by any county<\/span> or city<\/span> hereunder shall constitute a “project” as defined in \u00a7 15.2-2602<\/a>, and such county<\/span> or city<\/span> in respect of such project shall have all the powers granted by the Public Finance Act (\u00a7 15.2-2600<\/a> et seq.). Any acquisition pursuant to this section of a water supply or sewage system, or water supply and sewage system, of a sanitary district shall be made pursuant to an agreement entered into between the county<\/span> or city<\/span> and such district. No proceeding or approvals other than those specifically required by this section shall be required for the acquisition by the county<\/span> or city<\/span> from any sanitary district, or the conveyance to the county<\/span> or city<\/span> by any sanitary district, of any such system or systems.<\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nACQUISITION BY COUNTY OR CITY OF WATER SUPPLY SYSTEM OR SEWAGE SYSTEM FROM\nSANITARY DISTRICT (\u00a7 15.2-2116)\n\nAny county or city may acquire any water supply or sewage systems or water\nsupply and sewage system, from any sanitary district in any such county or city,\nand the sanitary district may convey the system to such county or city, upon:\n(i) the payment to the sanitary district by the county or city of the amount of\nany indebtedness owing by the county or city to the sanitary district with\nrespect to such water supply or sewage system or water supply and sewage system\n(reduced by the amount of any indebtedness owing to the county or city by the\nsanitary district in respect of such system), provided that any such amount so\npaid to the sanitary district shall be set aside and applied to the payment of\nthe outstanding bonded indebtedness of the sanitary district incurred with\nrespect to such water supply or sewage system or water supply and sewage system;\nand (ii) the assumption by the county or city of the outstanding bonded\nindebtedness of the sanitary district incurred with respect to such water supply\nor sewage system, or water supply and sewage system, for which payment is not\nprovided for pursuant to clause (i), or any portion thereof, or the payment by\nthe county or city of moneys (reduced by any amounts paid to the sanitary\ndistrict pursuant to clause (i)) sufficient for, and to be applied to, the\npayment of the principal of and interest on such bonded indebtedness or portion\nthereof not assumed by the county or city and for which payment is not provided\nfor pursuant to clause (i), or a combination of such assumption and payment\nwhereby the payment of the principal of and interest on all such bonds shall be\nmade or provided for.\n\t\tThe county or city may limit its assumption of such sanitary district’s\nbonded indebtedness to payment from the revenues to be derived from rates,\nrentals, fees and charges for the use and services of such water or sewage\nsystem, or water and sewage system. If at any time the revenues derived from\nrates, rentals, fees and charges for the use and services of such unified system\nare insufficient to provide for the operation and maintenance of the system and\nfor payment of principal of and interest on such bonded indebtedness of the\nsanitary district as they become due, the sanitary district shall levy an annual\ntax upon all property in such sanitary district subject to local taxation to pay\nsuch principal and interest as they become due.\n\t\tNothing contained in the immediately preceding sentence shall, however, be\nconstrued to relieve the county or city of its obligations under any such\nagreement to impose rates, rentals, fees and charges for the use and services of\nsuch system sufficient to pay the costs of operation and maintenance and to\nprovide for the payment of such principal and interest. Such agreement shall\nalso provide for the assumption by the county or city of the contracts for\nmaterials and services pertaining to such water supply or sewage system or water\nsupply and sewage system, entered into by the sanitary district and existing on\nthe day of such acquisition.\n\t\tMoneys to be applied to the payment of sanitary district bonded indebtedness\nunder this section shall be applied to such payment upon the earlier of the\nstated maturity of such bonds or the first date after the acquisition that such\nbonds may be redeemed in accordance with their terms. Pending such application,\nsuch moneys may be invested by the governing bodies in investments permitted by\nsubdivisions 1, 2 and 3 of \u00a7 2.2-4500, exclusive of revenue bonds. Amounts\nearned from time to time on the investment of such moneys and not required for\nthe payment of the principal of and interest and premium, if any, on such bonded\nindebtedness shall be paid to such county or city and applied to water supply or\nsewerage purposes, or both. The county or city may enter into a contract with\nany bank or trust company within or outside the Commonwealth, not inconsistent\nwith the foregoing provisions, with respect to the safekeeping and application\nof the moneys set aside in accordance herewith for the payment of such bonded\nindebtedness of such sanitary district, the investment of such moneys and the\nsafekeeping and application of the earnings on such investment.\n\t\tIf there is a sanitary district in any such county or city having both a water\nsupply system and a sewage system, the governing bodies, in their discretion,\nmay acquire either or both of such systems, and if there is a single\nindebtedness against both such systems and the governing bodies elect to acquire\nonly one such system, then the governing body is authorized and empowered to\nassume such indebtedness in whole or in part. Any such water or sewage system or\nwater and sewage system acquired by any county or city hereunder shall\nconstitute a “project” as defined in \u00a7 15.2-2602, and such county\nor city in respect of such project shall have all the powers granted by the\nPublic Finance Act (\u00a7 15.2-2600 et seq.). Any acquisition pursuant to this\nsection of a water supply or sewage system, or water supply and sewage system,\nof a sanitary district shall be made pursuant to an agreement entered into\nbetween the county or city and such district. No proceeding or approvals other\nthan those specifically required by this section shall be required for the\nacquisition by the county or city from any sanitary district, or the conveyance\nto the county or city by any sanitary district, of any such system or systems.\n\nHISTORY: 1948, c. 154, \u00a7 15.1-293.1; 1972, c. 220; 1997, c. 587.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}