                                 CODE OF VIRGINIA

SAME; APPLICATION OF REVENUES; TAX LEVY WHERE REVENUES INSUFFICIENT (§
21-118.6)

Whenever a county and one or more sanitary districts have entered into an
agreement for a unified water supply or sewerage system, or unified water supply
and sewerage system, and such county has agreed therein to pay from the revenues
of such unified system the principal of and interest on all bonds issued for
water or sewer purposes, or both, as the case may be, by such sanitary district
or districts, and to impose such schedule of rates, rentals, fees and charges
for the use and services of such unified system so as to produce revenues
sufficient for such payment, such county may also apply the revenues derived
from such rates, rentals, fees and charges to the payment of the cost of
operation and maintenance of the unified system, to the cost of renewals and
replacements and to any other lawful purposes connected with or pertaining to
such unified system, including the making of additions to and expansions of such
unified system, to the payment of the principal of and interest on any bonds
issued by such county for the purpose of such unified system and to the creation
and maintenance of such reserves as may be deemed necessary by such county to
effect any financing for such unified system. The order of any priority of the
application of such revenues to any of the foregoing purposes, including to the
payment of the principal of and interest on such bonds of the sanitary
districts, may be determined by the board of supervisors as the governing body
of the county. 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 unified system, and for payment
of principal of and interest on such bonded indebtedness of the sanitary
district as the same shall become due, such 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 the same shall become due. Nothing
contained in the immediately preceding sentence shall, however, be construed to
relieve the county 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 such costs of operation and maintenance and to provide for the payment of
such principal and interest.

HISTORY: 1972, c. 221.