There is some confusion on what the sanitary district tax is that is charged to Lake Holiday residents. A sanitary district is created to get funding for certain types of infrastructure in Virginia that communities may not be able to pay for by other traditional financing methods.
In this case, Lake Holiday needed to complete a new dam in order to meet the downstream property protection needs that arose when laws were changed. The cost of the dam far exceeded the ability of the community to cover in the short term and there are no loan programs for such infrastructure. The options were a very large special assessment to the residents in Lake Holiday or a sanitary district which would spread the payments out over a much longer period of time. In the 2010 election a referendum was included on the ballot that allowed Lake Holiday residents to vote on the sanitary district and it was approved by members to move forward.
The name often confuses people, it has nothing to do with sanitation or sewer usage, so even membership lots are charged the sanitary district tax. Sanitary district tax fees arrive in the mail around the same time property taxes are sent, twice yearly.
The original plan was for a 20 year payoff, with a two tier rate system. Owners of homes and buildable lots are charged $678 per year, and membership lot owners are charged $264 per year. The county can change either the amount or the two tier system can be changed to a system that would go by property value much like property tax assessments. So far the county has not made any changes as the loan is being paid off faster than planned. Current estimates are another 10-12 years of payments and the bonds will be fully paid.