                                 CODE OF VIRGINIA

VOLUNTARY SETTLEMENTS AMONG LOCAL GOVERNMENTS (§ 15.2-3400)

Recognizing that the localities of the Commonwealth may be able to settle the
matters provided for in this subtitle through voluntary agreements and further
recognizing that such a resolution can be beneficial to the orderly growth and
continued viability of the localities of the Commonwealth the following
provisions are made:

1. Any locality may enter voluntarily into agreement with any other locality or
combination of localities whereby any rights provided for its benefit in this
subtitle may be modified or waived in whole or in part, as determined by its
governing body, provided that the modification or waiver does not conflict with
the Constitution of Virginia.

2. The terms of the agreement may include fiscal arrangements, land use
arrangements, zoning arrangements, subdivision arrangements and arrangements for
infrastructure, revenue and economic growth sharing, provisions for the
acceptance on each other&#8217;s behalf of proffered conditions under &#xA7;
15.2-2298 or 15.2-2303, dedication of all or any portion of tax revenues to a
revenue and economic growth sharing account, boundary line adjustments,
acquisition of real property and buildings and the joint exercise or delegation
of powers as well as the modification or waiver of specific annexation,
transition or immunity rights as determined by the local governing body
including opposition to petitions filed pursuant to &#xA7; 15.2-3203, and such
other provisions as the parties deem in their best interest. The terms of the
agreement may also provide for subsequent court review, instituted pursuant to
provisions contained in the agreement, by a special court convened under Chapter
30 (&#xA7; 15.2-3000 et seq.) of this title.

3. If a voluntary agreement is reached pursuant to this chapter, the governing
bodies shall present to the Commission the proposed settlement. The Commission
shall conduct a hearing pursuant to subsection A of &#xA7; 15.2-2907. The
Commission shall report, in writing, its findings and recommendations as to
whether the proposed settlement is in the best interest of the Commonwealth.
Such report shall not be binding upon any court but shall be advisory in nature
only.

4. Upon receipt of the Commission report, the localities, by ordinance passed by
a recorded affirmative vote of a majority of the members of each governing body
thereof, may adopt either the original or a modified agreement acceptable to all
parties. Each local governing body shall advertise its intention to approve such
agreement, or modified agreement, twice, with the first notice appearing no more
than 28 days before and the second notice appearing no less than seven days
before the adoption of the ordinance in a newspaper having a general circulation
in its jurisdiction. Such advertisements shall contain a descriptive summary of
the agreement or modified agreement. Each locality shall hold at least one
public hearing on the agreement or modified agreement prior to the adoption of
the ordinance. The publication shall include a statement that a copy of the
agreement, or modified agreement, is on file in the office of the clerk of the
circuit court for each of the affected jurisdictions.

5. The governing bodies shall petition a circuit court having jurisdiction in
one or more of the localities for an order affirming the proposed settlement.
The circuit court with which the petition is filed shall notify the Supreme
Court, which shall appoint a special court to hear the case as prescribed by
Chapter 30 (&#xA7; 15.2-3000 et seq.) of this title. The special court shall be
limited in its decision to either affirming or denying the voluntary agreement
and shall have no authority, without the express approval of each local
governing body, to amend or change the terms or conditions of the agreement, but
shall have the authority to validate the agreement and give it full force and
effect. The court shall affirm the agreement unless the court finds either that
the agreement is contrary to the best interests of the Commonwealth or that it
is not in the best interests of each of the parties thereto. In determining
whether such agreement should be affirmed, the court shall consider, among other
things, whether the interest of the Commonwealth in promoting orderly growth and
the continued viability of localities has been met. If the agreement is
validated and provides for annexation by a city or town, the agreement shall
take effect on the first day of the month succeeding validation of the agreement
unless the agreement stipulates that the annexation shall be effective on some
other date.

6. The agreement shall not become binding on the localities until affirmed by
the special court under this section. Once approved by the special court, the
agreement shall also bind future local governing bodies of the localities.

7. The applicable provisions of this chapter shall be deemed to have been met
with regard to any voluntary fiscal agreement or voluntary agreement in
settlement of an annexation, transition or immunity petition or voluntary
settlement agreement entered into pursuant to this chapter (i) which was entered
into before July 1, 1990, (ii) which had been reviewed or was in the process of
review by the Commission on Local Government on or before July 1, 1990, (iii)
which had been or was the subject of review by a special court convened under
Chapter 30 of this title on or before July 1, 1990, or (iv) which had been or
was approved by a special court convened under Chapter 30 of this title on or
before July 1, 1990.

8. The provisions of &#xA7; 15.2-3226 shall apply when a voluntary agreement
made under this section includes the annexation of territory by a city or town.
No election for members of council shall be held as a result of such annexation
unless the city or town increases its population by more than five percent due
to the annexation.

HISTORY: 1983, c. 523, § 15.1-1167.1; 1985, c. 478; 1986, c. 333; 1988, c. 881;
1990, cc. 62, 326; 1994, c. 293; 1996, cc. 644, 650; 1997, c. 587; 2003, cc.
197, 444, 583; 2006, c. 212; 2024, cc. 225, 242.