The City of Falls Church announced today that it has filed a petition with the Virginia Supreme Court requesting a hearing by the full court following the refusal by a three-judge Supreme Court panel regarding the City’s appeal of a ruling by Fairfax County Circuit Court Judge R. Terrence Ney on one count of a Fairfax Water lawsuit against the City.

At issue is the City’s “longstanding return on investment transfer from its water fund to its general fund,” according to a City press release. It notes that the Virginia Supreme Court has never ruled on the constitutionality of a “profit transfer” like the City’s that is done pursuant to a special act of the General Assembly. That “special act,” referring to the City’s charter approved in Richmond, “expressly authorizes such a transfer,” it said, adding, “The Fairfax County Water Authority consented to the City’s profit transfer when it agreed to purchase City water.” The City’s petition can be below.

September 15, 2010 Petition for a Rehearing (PDF)