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What is a "Sanitary District"?
A "Sanitary District" is a special taxing district allowed by the Code of Virginia. The
governing body of a Sanitary District has the following powers and duties:
- To construct, maintain and
operate water supply, sewerage, garbage removal and disposal, heat, light,
fire-fighting equipment, power, gas, streets, parking lots, curbs, gutters,
sidewalks, community buildings, community centers and other recreational
facilities for the use and benefit of the public in such sanitary districts.
- To acquire by gift,
condemnation, purchase, lease, or otherwise, and to maintain and operate
such systems.
- To levy and collect an
annual tax upon all property in such sanitary district.
- The power to abate
nuisances within the district.
How is a Sanitary District created?
The Circuit Court of any
County, upon the petition of 50 qualified voters of a proposed district, or if
the proposed district contains less than 100 qualified voters upon petition of
fifty percent of the qualified voters of the proposed district, may make an
order creating a sanitary district. The order shall create
the boundaries and powers for such district.
How would Sanitary District
status affect the Board of Directors and our current fees?
The Warren County Board of
Supervisors would be designated as the governing Board of the Sanitary District.
The Board of Directors would submit an annual budget to the Board of Supervisors
for approval. Once a subdivision is designated as a Sanitary District, the subdivision governing body could waive
the annual fees currently paid to the Association.
What are the benefits of
becoming a Sanitary District?
There are a number of benefits
that the residents of a subdivision would receive from becoming a Sanitary
District. This list of benefits includes:
- Sanitary District status
will not affect the privacy of roads, gate, pool, etc.
- The ability to establish
uniform fees throughout the entire subdivision (Some subdivisions have
different covenanted rates).
- All lots, including those
owned by a developer, would be subject to Sanitary District taxes.
- Sanitary District taxes could
be collected by the Warren County Treasurer’s Office,
thereby increasing the collection rate and freeing the subdivision Association
from the burden of collection. Currently the County charges a fee of 4.3% for
collecting the Sanitary District tax, much less than collection firms charge for
collecting on delinquent accounts.
- Sanitary District fees are
treated as taxes and are therefore deductible on one’s Federal Income Tax
Return.
- For the majority of
homeowners, Sanitary District taxes would be collected along with County
taxes on one’s mortgage escrow throughout the year.
- Sanitary District taxes
could be set up on a tiered system to allow for a lower rate for undeveloped
lots.
- Impact fees could be
required to be paid by builders prior to the issuance of a building permit.
- Sanitary District status
would make a subdivision eligible for various State and Federal disaster
relief funds and allow us to acquire surplus government property.
- The ability to raise
additional revenue to make necessary improvements to the community.
- There would no longer be a
need for the Board of Directors to place liens on property as any unpaid
Sanitary District taxes would be have to be paid before the sale of any
property. The Association currently loses unpaid fees if there is no lien
placed on individual properties.
- Sanitary District status
can provide stability for a subdivision and can likely increase property
values for all property owners. It could also improve the credit status of
our community.
What are the drawbacks of
Sanitary District status?
- There would be legal costs
associated with petitioning the Circuit Court for Sanitary District status.
These fees are estimated at $2,500-5,000.
- In order to become a Sanitary
District, court approval must be secured.
- The Warren County Board of
Supervisors must approve the annual budget and any building impact fees.
If my subdivision becomes a
Sanitary District, can we dissolve it at a later date?
The Code of Virginia contains
provisions to abolish the Sanitary District at any time by order of the Circuit
Court.
Are there any other Sanitary
Districts in Warren County?
Currently there are 8 sanitary
districts in Warren County. They include:
- Blue Mountain
- Cedarville Heights
- Riverside
- Shenandoah Farms
- Shenandoah Shores
- Skyland Estates
- South River Estates
- High Knob
How do we get started?
The residents of the
subdivision must circulate a petition for the creation of a Sanitary District.
Interested registered voters who reside in the subdivision should sign the
petition. Once you have enough signatures, you must work with your attorney to
draft the necessary paperwork to file the petition for the creation of the
Sanitary District.
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