§ 15.2-2116. Acquisition by county or city of water supply system or sewagesystem from sanitary district.
Any county or city may acquire any water supply or sewage systems or watersupply and sewage system, from any sanitary district in any such county orcity, 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 theamount of any indebtedness owing by the county or city to the sanitarydistrict with respect to such water supply or sewage system or water supplyand sewage system (reduced by the amount of any indebtedness owing to thecounty or city by the sanitary district in respect of such system), providedthat any such amount so paid to the sanitary district shall be set aside andapplied to the payment of the outstanding bonded indebtedness of the sanitarydistrict incurred with respect to such water supply or sewage system or watersupply and sewage system; and (ii) the assumption by the county or city ofthe outstanding bonded indebtedness of the sanitary district incurred withrespect to such water supply or sewage system, or water supply and sewagesystem, for which payment is not provided for pursuant to clause (i), or anyportion thereof, or the payment by the county or city of moneys (reduced byany amounts paid to the sanitary district pursuant to clause (i)) sufficientfor, and to be applied to, the payment of the principal of and interest onsuch bonded indebtedness or portion thereof not assumed by the county or cityand for which payment is not provided for pursuant to clause (i), or acombination of such assumption and payment whereby the payment of theprincipal of and interest on all such bonds shall be made or provided for.
The county or city may limit its assumption of such sanitary district'sbonded indebtedness to payment from the revenues to be derived from rates,rentals, fees and charges for the use and services of such water or sewagesystem, or water and sewage system. If at any time the revenues derived fromrates, rentals, fees and charges for the use and services of such unifiedsystem are insufficient to provide for the operation and maintenance of thesystem and for payment of principal of and interest on such bondedindebtedness of the sanitary district as they become due, the sanitarydistrict shall levy an annual tax upon all property in such sanitary districtsubject to local taxation to pay such principal and interest as they becomedue.
Nothing contained in the immediately preceding sentence shall, however, beconstrued to relieve the county or city of its obligations under any suchagreement to impose rates, rentals, fees and charges for the use and servicesof such system sufficient to pay the costs of operation and maintenance andto provide for the payment of such principal and interest. Such agreementshall also provide for the assumption by the county or city of the contractsfor materials and services pertaining to such water supply or sewage systemor water supply and sewage system, entered into by the sanitary district andexisting on the day of such acquisition.
Moneys to be applied to the payment of sanitary district bonded indebtednessunder this section shall be applied to such payment upon the earlier of thestated maturity of such bonds or the first date after the acquisition thatsuch bonds may be redeemed in accordance with their terms. Pending suchapplication, such moneys may be invested by the governing bodies ininvestments permitted by subdivisions 1, 2 and 3 of § 2.2-4500, exclusive ofrevenue bonds. Amounts earned from time to time on the investment of suchmoneys and not required for the payment of the principal of and interest andpremium, if any, on such bonded indebtedness shall be paid to such county orcity and applied to water supply or sewerage purposes, or both. The county orcity may enter into a contract with any bank or trust company within oroutside the Commonwealth, not inconsistent with the foregoing provisions,with respect to the safekeeping and application of the moneys set aside inaccordance herewith for the payment of such bonded indebtedness of suchsanitary district, the investment of such moneys and the safekeeping andapplication of the earnings on such investment.
If there is a sanitary district in any such county or city having both awater supply system and a sewage system, the governing bodies, in theirdiscretion, may acquire either or both of such systems, and if there is asingle indebtedness against both such systems and the governing bodies electto acquire only one such system, then the governing body is authorized andempowered to assume such indebtedness in whole or in part. Any such water orsewage system or water and sewage system acquired by any county or cityhereunder shall constitute a "project" as defined in § 15.2-2602, and suchcounty or city in respect of such project shall have all the powers grantedby the Public Finance Act (§ 15.2-2600 et seq.). Any acquisition pursuant tothis section of a water supply or sewage system, or water supply and sewagesystem, of a sanitary district shall be made pursuant to an agreement enteredinto between the county or city and such district. No proceeding or approvalsother than those specifically required by this section shall be required forthe acquisition by the county or city from any sanitary district, or theconveyance to the county or city by any sanitary district, of any such systemor systems.
(1948, c. 154, § 15.1-293.1; 1972, c. 220; 1997, c. 587.)
§ 15.2-2116. Acquisition by county or city of water supply system or sewagesystem from sanitary district.
Any county or city may acquire any water supply or sewage systems or watersupply and sewage system, from any sanitary district in any such county orcity, 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 theamount of any indebtedness owing by the county or city to the sanitarydistrict with respect to such water supply or sewage system or water supplyand sewage system (reduced by the amount of any indebtedness owing to thecounty or city by the sanitary district in respect of such system), providedthat any such amount so paid to the sanitary district shall be set aside andapplied to the payment of the outstanding bonded indebtedness of the sanitarydistrict incurred with respect to such water supply or sewage system or watersupply and sewage system; and (ii) the assumption by the county or city ofthe outstanding bonded indebtedness of the sanitary district incurred withrespect to such water supply or sewage system, or water supply and sewagesystem, for which payment is not provided for pursuant to clause (i), or anyportion thereof, or the payment by the county or city of moneys (reduced byany amounts paid to the sanitary district pursuant to clause (i)) sufficientfor, and to be applied to, the payment of the principal of and interest onsuch bonded indebtedness or portion thereof not assumed by the county or cityand for which payment is not provided for pursuant to clause (i), or acombination of such assumption and payment whereby the payment of theprincipal of and interest on all such bonds shall be made or provided for.
The county or city may limit its assumption of such sanitary district'sbonded indebtedness to payment from the revenues to be derived from rates,rentals, fees and charges for the use and services of such water or sewagesystem, or water and sewage system. If at any time the revenues derived fromrates, rentals, fees and charges for the use and services of such unifiedsystem are insufficient to provide for the operation and maintenance of thesystem and for payment of principal of and interest on such bondedindebtedness of the sanitary district as they become due, the sanitarydistrict shall levy an annual tax upon all property in such sanitary districtsubject to local taxation to pay such principal and interest as they becomedue.
Nothing contained in the immediately preceding sentence shall, however, beconstrued to relieve the county or city of its obligations under any suchagreement to impose rates, rentals, fees and charges for the use and servicesof such system sufficient to pay the costs of operation and maintenance andto provide for the payment of such principal and interest. Such agreementshall also provide for the assumption by the county or city of the contractsfor materials and services pertaining to such water supply or sewage systemor water supply and sewage system, entered into by the sanitary district andexisting on the day of such acquisition.
Moneys to be applied to the payment of sanitary district bonded indebtednessunder this section shall be applied to such payment upon the earlier of thestated maturity of such bonds or the first date after the acquisition thatsuch bonds may be redeemed in accordance with their terms. Pending suchapplication, such moneys may be invested by the governing bodies ininvestments permitted by subdivisions 1, 2 and 3 of § 2.2-4500, exclusive ofrevenue bonds. Amounts earned from time to time on the investment of suchmoneys and not required for the payment of the principal of and interest andpremium, if any, on such bonded indebtedness shall be paid to such county orcity and applied to water supply or sewerage purposes, or both. The county orcity may enter into a contract with any bank or trust company within oroutside the Commonwealth, not inconsistent with the foregoing provisions,with respect to the safekeeping and application of the moneys set aside inaccordance herewith for the payment of such bonded indebtedness of suchsanitary district, the investment of such moneys and the safekeeping andapplication of the earnings on such investment.
If there is a sanitary district in any such county or city having both awater supply system and a sewage system, the governing bodies, in theirdiscretion, may acquire either or both of such systems, and if there is asingle indebtedness against both such systems and the governing bodies electto acquire only one such system, then the governing body is authorized andempowered to assume such indebtedness in whole or in part. Any such water orsewage system or water and sewage system acquired by any county or cityhereunder shall constitute a "project" as defined in § 15.2-2602, and suchcounty or city in respect of such project shall have all the powers grantedby the Public Finance Act (§ 15.2-2600 et seq.). Any acquisition pursuant tothis section of a water supply or sewage system, or water supply and sewagesystem, of a sanitary district shall be made pursuant to an agreement enteredinto between the county or city and such district. No proceeding or approvalsother than those specifically required by this section shall be required forthe acquisition by the county or city from any sanitary district, or theconveyance to the county or city by any sanitary district, of any such systemor systems.
(1948, c. 154, § 15.1-293.1; 1972, c. 220; 1997, c. 587.)
§ 15.2-2116. Acquisition by county or city of water supply system or sewagesystem from sanitary district.
Any county or city may acquire any water supply or sewage systems or watersupply and sewage system, from any sanitary district in any such county orcity, 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 theamount of any indebtedness owing by the county or city to the sanitarydistrict with respect to such water supply or sewage system or water supplyand sewage system (reduced by the amount of any indebtedness owing to thecounty or city by the sanitary district in respect of such system), providedthat any such amount so paid to the sanitary district shall be set aside andapplied to the payment of the outstanding bonded indebtedness of the sanitarydistrict incurred with respect to such water supply or sewage system or watersupply and sewage system; and (ii) the assumption by the county or city ofthe outstanding bonded indebtedness of the sanitary district incurred withrespect to such water supply or sewage system, or water supply and sewagesystem, for which payment is not provided for pursuant to clause (i), or anyportion thereof, or the payment by the county or city of moneys (reduced byany amounts paid to the sanitary district pursuant to clause (i)) sufficientfor, and to be applied to, the payment of the principal of and interest onsuch bonded indebtedness or portion thereof not assumed by the county or cityand for which payment is not provided for pursuant to clause (i), or acombination of such assumption and payment whereby the payment of theprincipal of and interest on all such bonds shall be made or provided for.
The county or city may limit its assumption of such sanitary district'sbonded indebtedness to payment from the revenues to be derived from rates,rentals, fees and charges for the use and services of such water or sewagesystem, or water and sewage system. If at any time the revenues derived fromrates, rentals, fees and charges for the use and services of such unifiedsystem are insufficient to provide for the operation and maintenance of thesystem and for payment of principal of and interest on such bondedindebtedness of the sanitary district as they become due, the sanitarydistrict shall levy an annual tax upon all property in such sanitary districtsubject to local taxation to pay such principal and interest as they becomedue.
Nothing contained in the immediately preceding sentence shall, however, beconstrued to relieve the county or city of its obligations under any suchagreement to impose rates, rentals, fees and charges for the use and servicesof such system sufficient to pay the costs of operation and maintenance andto provide for the payment of such principal and interest. Such agreementshall also provide for the assumption by the county or city of the contractsfor materials and services pertaining to such water supply or sewage systemor water supply and sewage system, entered into by the sanitary district andexisting on the day of such acquisition.
Moneys to be applied to the payment of sanitary district bonded indebtednessunder this section shall be applied to such payment upon the earlier of thestated maturity of such bonds or the first date after the acquisition thatsuch bonds may be redeemed in accordance with their terms. Pending suchapplication, such moneys may be invested by the governing bodies ininvestments permitted by subdivisions 1, 2 and 3 of § 2.2-4500, exclusive ofrevenue bonds. Amounts earned from time to time on the investment of suchmoneys and not required for the payment of the principal of and interest andpremium, if any, on such bonded indebtedness shall be paid to such county orcity and applied to water supply or sewerage purposes, or both. The county orcity may enter into a contract with any bank or trust company within oroutside the Commonwealth, not inconsistent with the foregoing provisions,with respect to the safekeeping and application of the moneys set aside inaccordance herewith for the payment of such bonded indebtedness of suchsanitary district, the investment of such moneys and the safekeeping andapplication of the earnings on such investment.
If there is a sanitary district in any such county or city having both awater supply system and a sewage system, the governing bodies, in theirdiscretion, may acquire either or both of such systems, and if there is asingle indebtedness against both such systems and the governing bodies electto acquire only one such system, then the governing body is authorized andempowered to assume such indebtedness in whole or in part. Any such water orsewage system or water and sewage system acquired by any county or cityhereunder shall constitute a "project" as defined in § 15.2-2602, and suchcounty or city in respect of such project shall have all the powers grantedby the Public Finance Act (§ 15.2-2600 et seq.). Any acquisition pursuant tothis section of a water supply or sewage system, or water supply and sewagesystem, of a sanitary district shall be made pursuant to an agreement enteredinto between the county or city and such district. No proceeding or approvalsother than those specifically required by this section shall be required forthe acquisition by the county or city from any sanitary district, or theconveyance to the county or city by any sanitary district, of any such systemor systems.
(1948, c. 154, § 15.1-293.1; 1972, c. 220; 1997, c. 587.)
