Sanitary District Definition
What is a "Sanitary District"?
A "Sanitary District" is a special taxing district llowed 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
Currently there are 8 sanitary districts in
1.
2.
3.
4.
Shenandoah Farms
5.
1.
Skyland Estates
2.
3.
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.
This
information came from the