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|July 19, 2018, City Council Regular Meeting|
13. Motion to Adopt Resolution Approving the Issuance of Bonds and Authorizing a Contract with the Resource Recovery Development Authority (RRDA)
The City’s adopted capital improvement plan includes the expansion of the City’s Dean Forest Landfill facility. This facility is utilized for most of the City’s residential and commercial refuse collections as a final destination for waste. It is estimated that the capacity of the current active cell will be utilized within the next four to seven years and, therefore, the City has been planning this expansion for some time.
The property currently utilized for the Dean Forest Landfill has vacant land that will be used for the expansion and thus no property acquisition will be necessary. The City has completed the necessary permitting process for the expansion and is now in the process of procuring a construction firm. The design engineer estimates the upcoming landfill expansion will have a net waste disposal capacity (after deductions for cover material) of 2.8 million cubic yards and a projected operational life of 13.67 years.
The current cost estimate of the landfill expansion project is approximately $28 million. The financing plan for this project includes funding $17 million in previously accumulated cash that has been set aside for this purpose and fund the remaining $11,000,000 by a bond issue of the Resource Recovery Development Authority.
David Maxwell, CFO
Debt service on the bonds will be funded by user fees within the City’s Sanitation Fund and will not impact the City’s General Fund. The bonds have a projected 10 year amortization with approximately $1.3 million due annually in total debt service. Security for the bonds will be provided through an intergovernmental contract between the Authority and the City, whereby the City agrees to guarantee payments equal to the debt service will be made to the Authority as required by the debt service schedule.
Memo RE 2018 Bonds 6-8-18.pdf
IGA Resource Recovery Development Authority.pdf
Bond Resolution 071919.pdf