Ruling Raises Worries About Local Boards

Agencies May Lose Authority to Collect Money, Some Fear

RICHMOND , March 11 -- The recent Virginia Supreme Court ruling that eliminated much-needed transportation money could also wipe out the actions of dozens of local boards that raise millions of dollars each year to pay for water and sewer services, parks and toll roads, local and state officials say.

If the General Assembly does not correct the problem, several local and state officials said, they worry that a Virginia resident could refuse to pay his water bill and sue the local water board, arguing that the panel is not allowed under the state constitution to collect the money.

The legal snag, which Gov. Timothy M. Kaine (D) and local and state officials have discussed in recent days behind closed doors in Northern Virginia and Richmond, could hand the General Assembly a massive legal problem to address this spring.

Lawmakers are already exploring a special session to address the court ruling as it applies to transportation.

"No one wants to talk about it, because it could result in overturning water authorities, toll road authorities. . . . It could be a real nightmare," said Del. David B. Albo (R-Fairfax), a lawyer who chairs the House Courts Committee.

"No one seems to know. People have no idea how far-reaching this court decision may be," he said.

In a decision stemming from a lawsuit filed last year, the state Supreme Court ruled Feb. 29 that the regional authorities that legislators set up to collect money for road and transit projects in Northern Virginia and Hampton Roads cannot impose taxes and fees.

That duty, the court ruled, falls only to elected bodies.

Although there is disagreement among state and local officials, some said they think the ruling also applies to dozens, possibly hundreds, of unelected boards in Virginia, including those that charge fees for water and sewer services, parks, ports, airports and economic development.

Those boards could include Fairfax Water, the state's largest water utility, which serves Fairfax, Loudoun and Prince William counties and Alexandria.

The utility, which is run by a 10-member board appointed by the Fairfax County Board of Supervisors, sets water rates, among other things. It collects $160 million annually.

"I think there's legitimate cause to be concerned," said Board of Supervisors Chairman Gerald E. Connolly (D), a member of the now-powerless Northern Virginia Transportation Authority.