CHAPTER 593

AN ACT to authorize the governing bodtes of counties, cities and
towns to establish, construct, wmprove, enlarge, maintatn
and operate sewage disposal systems, to borrow money and
issue bonds therefor, to collect fees, rents and charges for
the use thereof and to confer certain powers and duttes
upon such governing bodies.

{ H 674 ]

Approved April 11, 1950

- Be it enacted by the General Assembly of Virginia:
1. § 1. For the purpose of providing relief from pollution,
and for the improvement of conditions affecting the public
health and in addition to other powers conferred by law, the
governing body of any county, city, or town, hereinafter referred
to as governing body, shall have power and authority:

(1) To establish, construct, improve, enlarge, operate and
maintain a sewage disposal system with all the necessary sewers,
conduits, pipe lines, pumping and ventilating stations, treatment
plants and works, and other plants, structures, boats, convey-
ances and other real and personal property necessary for the
operation of such system.

(2) To acquire by purchase, gift, condemnation or other-
wise, real estate, or rights or easements therein, necessary or
convenient for establishment, enlargement, maintenance or oper-
ation of such sewage disposal system, and the right to dispose
of property so acquired no longer necessary for the use of such
system. Provided, however, that the provisions of § 25-233 of
the Code of Virginia of 1950 shall apply as to any property
owned by a corporation possessing the power of eminent domain
that may be sought to be taken by condemnation under the pro-
visions of this act.

(3) To borrow money for the purpose of establishing, con-
structing, improving and enlarging the sewage disposal system
and to issue bonds therefor in the name of such county, city or
town, as hereinafter provided in section two of this act.

(4) To accept gifts or grants of real or personal property,
money, material, labor or supplies for the establishment and
operation of such sewage disposal system and to make and per-
form such agreements or contracts as may be necessary or con-
venient in connection with the procuring or acceptance of such
gifts or grants.

(5) To enter on any lands, waters and premises for the
purpose of making surveys, borings, soundings and examina-
tions for constructing and operating the sewage disposal system,
and for the prevention of pollution.

(6) To enter into contracts with the United States of
America, or any department or agency thereof, or any person,
firm or corporation, or the governing body of any other county,
city or town, providing for or relating to the treatment and
disposal of sewage and industrial wastes.

(7) To fix, charge and collect fees, rents or other charges
for the use and services of the sewage disposal system. Such
fees, rents, and charges may be charged to and collected from
any person contracting for the same, or from the owner or
lessee or tenant, or some or all of them who use or occupy any
real estate which directly or indirectly is or has been connected
with the sewage disposal system, or from or on which originates
or has originated sewage or industrial wastes, or either, which
directly or indirectly have entered or will enter the sewage dis-
posal system, and the owner or lessee or tenant of any such real
estate shall pay to the county, city or town such fees, rents and
charges at the time and place where the same are due and
payable.

Such fees, rents and charges, being in the nature of use or
service charges, shall, as nearly as the governing body shall
deem practicable and equitable, be uniform for the same type,
class and amount of use or service of the sewage disposal sys-
tem, and may be based or computed either on the consumption
of water on or in connection with the real estate, making due
allowances for commercial use of water, or on the number and
kind of water outlets on or in connection with the real estate
or on the number and kind of plumbing or sewage fixtures or
facilities on or in connection with the real estate or on the
number or average number of persons residing or working on
or otherwise connected or identified with the real estate or any
other factors determining the type, class and amount of use or
service of the sewage disposal system, or on any combination
of such factors, or on such other basis as the governing body
may determine. Such fees, rents and charges shall be due and
payable at such time as the governing body may determine, and
the governing body may require the same to be paid in advance
for periods of not more than six months. The revenue derived
from any or all of such fees, rents, and charges is hereby
declared to be revenue of such sewage disposal system.

In the event the fees, rents or charges charged for the use
and services of the sewage disposal system by or in connection
with any real estate shall not be paid when due, interest shall
at that time begin to accrue thereon at the rate of one per
centum per month, and the owner, lessee or tenant, as the case
may be, of such real estate shall, until such fees, rents and
charges shall be paid with such interest to the date of payment,
cease to dispose of sewage or industrial waste originating from
or on such real estate by discharge thereof directly or indirectly
into the sewage disposal system, and if such owner, lessee or
tenant shall not cease such disposal within two months there-
after, the county, city or town or person or corporation supply-
ing water for the use of such real estate shall cease supplying
water thereto unless the health officers shall certify that the
shutting off the water will endanger the health of the occupants
of the premise or the health of others.

Such fees, rents and charges and interest thereon may be
recovered by the county, city or town by action at law or suit
in equity, and shall constitute a lien against the property, rank-
ing on a parity with liens for unpaid taxes.

§ 2. Bonds of the county, city or town, the principal and
interest of which shall be payable from ad valorem taxes, which
shall be levied upon all the taxable property of said county, city
or town without limitation of rate or amount, in the event that
the revenue hereinafter referred to is insufficient for the pay-
ment of the principal and interest thereof, may be issued from
time to time in the manner prescribed by the Constitution of
Virginia to establish, construct, improve and enlarge a sewage
disposal system with all the necessary sewers, conduits, pipe
lines, pumping and ventilating stations, treatment plants and
works and other property, real and personal, necessary for the
operation thereof, from which the county, city or town may
derive a revenue to reimburse the general fund or any other
fund of the county, city or town for moneys paid from said fund
or funds for such purposes, and to fund or refund any existing
indebtedness incurred for such purposes, and such bonds shall
not be included in determining the power to incur indebtedness
within the limitation prescribed by section one hundred twenty-
seven of the Constitution of Virginia, but from and after a
period to be determined by the governing body, not exceeding
five years from the date of the election authorizing such bonds,
whenever and for so long as such sewage disposal system fails to
produce sufficient revenue to pay for cost of operation and admin-
istration, including the interest on such bonds, and the cost of
insurance against loss by injury to persons or property, and an
annual amount to be covered into a sinking fund sufficient to
pay at or before maturity, all such bonds, then all such bonds
outstanding shall be included in determining the limitation of
the power to incur indebtedness; provided, however, that bonds
may be issued from time to time for any or all of such purposes,
including reimbursement of funds and the funding or refunding
of existing indebtedness, in the manner prescribed by the Con-
stitution of Virginia, the principal and interest of which bonds
shall be payable solely from the revenue of such sewage disposal
system, which bonds shall never be included in determining the
power to incur indebtedness within the limitations prescribed
by section one hundred twenty-seven of the Constitution of Vir-
ginia. The ordinance authorizing the issuance of any of such
bonds and the calling of an election on the question of the issu-
ance thereof shall state:

(a) the maximum amount of bonds to be issued;

() the purpose or purposes for which such bonds are to be
issued ;

(c) that the principal and interest of said bonds shall be
payable from ad valorem taxes without limitation of rate or
amount, if the revenue of the sewage disposal system is in-
sufficient for that purpose, or that the principal and interest of
such bonds shall be payable solely from the revenue of such
sewage disposal system;
(d) if the bonds are to be payable from ad valorem taxes
without limitation of rate or amount in the event that the reve-
nue of the sewage disposal plant is insufficient for that purpose,
that the bonds are to be issued pursuant to the provisions of the
Constitution of Virginia and are not to be included in determin-
ing the power to incur indebtedness within the limitation pre-
scribed by section one hundred twenty-seven of the Constitution
of Virginia; provided, however, that from and after a period
specified in such ordinance not exceeding five years from the date
of the election authorizing the bonds, whenever and for so long
as such sewage disposal system fails to produce sufficient revenue
to pay for cost of operation and administration, including the in-
terest on such bonds, and the cost of insurance against loss by
injury to persons or property, and an annual amount to be cover-
ed into a sinking fund sufficient to pay at or before maturity, all
such bonds, then all such bonds outstanding shall be included in
determining the limitation of the power to incur indebtedness;

(e) If the bonds are to be payable solely from the revenue
of such sewage disposal system, that the bonds are to be issued
pursuant to the provisions of the Constitution of Virginia and
are never to be included in determining the power to incur in-
debtedness within the limitation prescribed by section one hun-
dred twenty-seven of the Constitution of Virginia;

(f) the maximum rate of interest to be borne by the bonds,
not exceeding six per centum per annum;

(g) the maximum period within which such bonds shall
mature, not exceeding thirty-five years from the date of issue;

(h) such other details as the governing body may, in its
sole discretion deem necessary, including but without limiting
the generality of the foregoing, a pledge of the net revenue of
the sewage disposal system to the payment of the principal
and interest of any such bonds and a covenant to maintain fees,
rents or other charges for the use of such sewage disposal sys-
tem, authorized by section one of this chapter, at a level which
‘will produce net revenue sufficient for the payment of the princi-
pal and interest thereof, and any reserve funds deemed necessary
for the efficient administration of such sewage disposal system
and for the protection of the holders of the bonds.

The provisions of §§ 24-141, 15-596, 15-624, 15-625 and
15-626 of the Code of Virginia shall govern the calling and hold-
ing of the election on the question of the issuance of such bonds.
If such bonds are sold at public sale, the notice of sale may pro-
vide that the bidders shall name the rate or rates of interest to
be borne by such bonds, not exceeding the maximum rate pre-
scribed by the ordinance calling the election, to be expressed in a
multiple or multiples of one-fourth or one-tenth of one per
centum per annum. The powers conferred by this section shall
be deemed to be supplemental to, cumulative of, and in addition
to all other powers heretofore granted by the general laws of the
State or by special acts or other charter provisions of any city
or town and no general law or special act or other charter pro-
vision, except as herein expressly provided, shall in any way
affect the issuance of such bonds.