Chap. 332.—An ACT to amend and reenact Section 2958 of the Code of Virginia,
as amended, relating to the extension of corporate limits of cities and iT 56]

Approved March 31, 1948

Be it enacted by the General Assembly of Virginia:

1. That section twenty-nine hundred fifty-eight of the Code of
Virginia, as amended, be amended and reenacted as follows:

Section 2958. How case heard and by whom'and what order shall
contain—The court, without a jury, shall be held and presided over
by three judges, as follows: the judge of the circuit court of the county
in which the territory sought to be annexed lies; the judge of the circuit
court of the city to which the territory is to be annexed, if the territory
is to be annexed to a city having a circuit court, and a judge of some
circuit court in this State remote from the territory to be annexed, to
be designated by the Chief Justice of the Supreme Court of Appeals, and
when the circuit judge of the city and of the county in which the territory
lies is the same, or when the town or city whether it is within the same
judicial circuit of the circuit judge of the county in which the territory
lies or not, has no separate circuit court, the Chief Justice of the Supreme
Court of Appeals shall designate a third judge from an adjoining circuit.
The powers and duties herein conferred and imposed upon the Chief
Justice of the Supreme Court of Appeals to designate the foregoing
judges may be exercised and performed by any justice or any committee
of justices, of the said court, designated by the Chief Justice for such
purpose.

If a vacancy shall occur in the membership of the court by reason
of the illness, death, incapacity, resignation or disqualification of any
judge designated to sit as a member thereof, at any time prior to the
final disposition of the case and the final completion of all of the duties
to be performed by the court under this chapter or any other provision
of law, the court shall not be dissolved and the proceeding shall not
fail; but the vacancy shall be filled by designation of another judge,
possessing the qualifications hereinabove prescribed, to sit for and in the
place of the judge so deceased, ill, incapacitated, resigned or disqualified,
and such other judge, who shall be designated as hereinbefore provided,
shall be vested with all of the power and authority conferred by law
upon his predecessor and the court shall proceed as so constituted to hear
and determine the case, and do all things necessary to accomplish its
final disposition and the final completion of all of the duties to be per-
formed by the court under this chapter or under any other provision of
law, including such matters as the certification of evidence and exceptions,
and in the performance of all of the duties of the court subsequent to his
designation, such other judge shall be fully empowered to participate ;
provided, that no decision shall be rendered, ruling made or action taken
by the court with respect to any question to be determined by it after
such new designation except after a full hearing in open court by the
court as reconstituted of all the evidence theretofore introduced before
the court relating to such question, and a rehearing of all arguments
theretofore made with reference to any question previously submitted to
but not decided by the court.

Such court shall hear the case upon the evidence introduced in the
manner in which evidence is introduced in common law cases, and shall
ascertain and determine the necessity for and expediency of annexation,
considering the best interests of the county, the city and the best interests,
services to be rendered and needs of the area proposed to be annexed
and the best interests of the remaining portion of the county and whether
the terms and conditions set forth in the ordinance are reasonable and
fair, and whether fair and just provisions are made for the future man-
agement and improvement of such territory and the rendering of needed
services ; and if the majority of the court shall be satisfied of the necessity
for and expediency of such annexation, considering the best interests of
the county, the city and the best interests, services to be rendered and
needs of the area proposed to be annexed and the best interests of the
remaining portion of the county, that such conditions and provisions are
reasonable and fair, an order shall be entered providing for the annexa-
tion of such territory: But if a majority of the court shall be of the
opinion that no annexation is necessary or expedient, considering the
best interests of the county, the city and the best interests, services to be
rendered and needs of the area proposed to be annexed, and the best
interests of the remaining portion of the county, the motion to annex shall
be dismissed. In every case of annexation, such city or town shall assume
and provide for the reimbursement of the county or counties for such
just proportion of any existing debt of such county or counties or dis-
tricts therein, and for the then value of such permanent public improve-
ments as may have been made in the territory annexed, either by way of
macadamizing public roads or streets, or by way of the construction
of concrete roads or streets, or otherwise permanently improving roads
or streets, or by constructing concrete sidewalks on public roads or
streets, or by constructing or laying water mains or sewers, garbage dis-
posal systems, fire protection facilities, bridges or any other permanent
public improvements constructed and maintained by such county or coun-
ties at the time of annexation, as may be determined by the court in the
proceeding. In the determination of such value the court shall take into
consideration the original cost of such public improvements less deprecia-
tion as well as the reproduction cost at the time of annexation less depre-
ciation and the value to the city or town seeking annexation as well as the
county or counties affected thereby; provided, the cost of such public
improvements is not embraced in the proportion of the debt of such
county or counties, or district therein, which is assumed and provided
for by such city or town in the proceeding; and provided that such city
or town shall receive credit, upon a just basis to be determined by the
court, for such sums, if any, as it may have contributed to such public
improvements; and provided that the authorities of the county or
counties portions of which are proposed to be annexed or the authorities
of any town or township in the territory proposed to be annexed, shall
not, between the entry of the decree of annexation and the date when the
same is to become effective, make or contract to make any permanent
public improvements, to be paid for by the city or town seeking annexa-
tion, without the consent of the corporate authorities of such city or
town and the supervision of the official of such city or town charged
with the duty of making similar public improvements within the city or
town. And such city or town shall also provide for the compensation
to such county or counties for the then value of any school property or
other public building, including the equipment of such county located
within the annexed territory and for any injury to the value or the im-
pairment of the use to the county of any school property therein by
reason of the annexation made. If the court shall be of opinion that the
annexation of only a part of such territory is necessary or expedient,
considering the best interests of the county, the city and the best
interests, services to be rendered and needs of the area proposed to be
annexed and the best interests of the remaining portion of the county, or
that the ordinance does not contain fair and reasonable terms, or if it
shall be of the opinion that more territory should be annexed than was
described in the metes and bounds originally set forth, it shall enter a
proper order, embodying what it deems reasonable and fair terms upon
which the annexation is to be had, and how much of the territory shall
be annexed, and shall direct the annexation of such territory in con-
formity with the terms and conditions so prescribed. The court shall
so draw the lines of annexation as to have a reasonably compact body

- of land, and shall also see that no land shall be taken into the city which
is not adapted to city improvements unless necessarily embraced in said
compact body of land or which the city shall not need in the reasonably
near future for development. In making its decision as to the character
and extent of annexation the court shall take into consideration as well,
not only the development of the city but also the loss of revenue to the
county and the effect that annexation may have upon the revenues of
the city and of the county.

But the tax rate upon the land annexed shall not be increased for a
period of five years after such annexation, except upon the petition of a
majority of the voters of such territory to the city or town council, and
all revenues derived by such city or town from taxation in the territory
during such period, from all sources shall be wholly expended by such
city or town upon schools, streets, sewer, light, water, or other public
improvements in the territory annexed and all such revenues received
and expenditures made shall be reported to the city or town council and
made a matter of public record; provided, that any time within the
said five years the council of the city or town may by ordinance set
apart a sum equal to twelve per centum of the assessed value at the
time of annexation of the land annexed, which sum so set apart shall
be wholly expended in and for the benefit of the annexed territory in
public improvements ; and when the sum shall have been so set apart and
the public improvements shall have been substantially completed, the
land annexed shall be subject to the city tax rate, and the proceeds
thereof shall be paid into the city treasury along with all other taxes
and licenses in such territory for general purposes, although the five years
shall not have elapsed. The sum to be so set apart and expended shall be
reduced by the sum already expended on the improvements under any
other plan of annexation, and the sum shall also be reduced by the
amount of any debt of any town that may be annexed to a city or to
another town. When two or more cities or towns desire the same terri-
tory and petitions of their respective councils are pending at the same
time, the court shall consolidate the cases and hear them together, and
enter such order as to it shall seem proper, declaring to which city or
town the territory shall be annexed and the terms and conditions of
annexation as in other cases.
2. This act shall not affect pending annexation proceedings,