Powers of Local Governments

Question 1

The nature, number, and duration of the powers conferred and the territory over which localities exercise them all must be…

Answer 1

expressly provided in the legislatively-enacted charter for the locality or in general statutes conferring powers on localities in Virginia.

Question 2

Almost all localities have the following powers:

Answer 2

1. To tax (normally: real property, or local sales taxes);
2. To sue and be sued;
3. To enter into contracts
4. To acquire, hold, and dispose of its revenue;
5. To exercise eminent domain;
6. To borrow money and issue tax-exempt bonds; and
7. To acquire, hold, and dispose of real and personal property.

Question 3

The powers conferred by the charter and statutes must generally be executed by…

Answer 3

the governing body of the locality.

Question 4

In narrow subject areas, such as land use administration, some limited re-delegation of administrative or decision-making responsibilities to suboordinate local bodies (not policy setting powers) is permitted, but only if the exercise of the power is…

Answer 4

controlled by fixed and readily ascertainable standards.

Question 5

Virginia adheres firmly to Dillon’s Rule, which states that a locality can only exercise those powers granted…

Answer 5

expressly by statute or charter, but not by any other power.

Question 6

What are the exceptions to the Dillon’s Rule doctrine?

Answer 6

1. The powers are necessarily implied in or incident to the powers expressly granted, or
2. The implied power is essential and indispensable to the declared purposes for creating the locality.

Question 7

Dillon’s Rule applies uniformly to…

Answer 7

counties.

Question 8

With respect to cities, Virginia statute holds that the legislature can provide that “approved” cities and towns may exercise all powers not expressly prohibited by…

Answer 8

the constitution or general laws that are necessary or desirable to promote the general welfare of the inhabitants.

Question 9

The General Assembly has “approved” ____ cities. The rest are subject to Dillon’s Rule.

Answer 9

few

Question 10

Where the legislature grants a local government the power to do something but does not specifically direct the method of implemending that power, what must the locality do?

Answer 10

The locality can choose how to implement the conferred power, and it will be upheld as long as the method selected is reasonable.

Question 11

If the Commonwealth doubts the reasonableness of the locality’s method of implementing a certain power, the dispute will be resolved in the favor of…

Question 12

A ballot vote or special hearing must be held before _____ may be issued by a locality.

Question 13

Bonds (other than revenue anticipation bonds) may generally be issued only for…

Answer 13

capital expenditures.

Question 14

No locality may issue general obligation bonds on excess of ____ of the assessed valuation of real estate subject to taxation in the locality.

Answer 14

10%

Question 15

The first exception to the 10% cap are revenue anticipation bonds, which are to be paid back from ________ _____ already in place withinone year.

Question 16

The second exception to the 10% bond cap are special fund bonds, which will be paid down in 5 years, or the payment of which will flow directly from the _______ __ __ ______.

Answer 16

project to be funded (e.g. revenues from a water supply plant to be built)

Question 17

What are the other exceptions to the 10% bond cap?

Answer 17

1. projects where payment will come from assessments levied upon the property benefitted by an improvement (e.g. a special assessment on landowners for sidewalk improvements to their property)
2. debts arising from civil and criminal judgments against the locality
3. debts from daily expenses, continuing service contracts, or the ordering of supplies.

Question 18

Subject to normal constitutional limits on vagueness, taking of property and the like, in the exercise of its police power, the locality may…

Question 19

Although a locality’s police power is almost unlimited, it must…

Question 20

Localities generally have the power to levy taxes for ______ ________.

Question 21

Localities may not impose a(an) ________ tax.

Question 22

Localities have the power to _______ any business, occupation, or activity.

Question 23

Licenses are merely the extension of permission to….

Question 24

While license taxes are often based on _____ ________ of an activity, this is held to be distinct from imposition from an income tax by the local body, and is valid.

Answer 24

gross receipts

Question 25

Localities have power to authorize use of ______ ________ by utility companies, taxis, cable TV, etc…

Answer 25

public property