Scott Rebus, general manager of 3 Rivers Solid Waste Authority, and the authority’s finance advisor presented a plan to build the next permitted cell at the regional landfill and described a financing plan that would rely on revenue bonds and a phased increase in tipping fees.

What 3 Rivers described: The authority said Cell 8 would be roughly 28.2 acres and, at current tonnage levels, is projected to provide about 13 years of capacity. Rebus noted the construction estimate for Cell 8 was about $22 million; the financing offer presented to council assumed total bond proceeds nearer $27 million after reserves and issuance costs were included.

Financing approach and credit considerations

Brent (Stifel), the authority’s finance advisor, explained the importance of debt service coverage (DSC) to rating agencies and investors and showed multi-year coverage projections for the authority. He said the authority’s five-year audited average DSC is roughly 2.49x and warned that taking on the new debt without a revenue plan would compress coverage to levels investors would find weak. To address that, the authority’s board adopted a plan of five annual tipping-fee increases: $2.30 per ton in year one followed by $2.00 per ton increases in four subsequent years — a cumulative $10.30 per ton increase. Under that plan the county’s current fee of $37.70 per ton would rise to about $48.00, still below current statewide averages in the advisor’s peer comparison.

Why the county is being asked to extend service

Rebus said the authority asked member counties to extend service agreements through Feb. 1, 2050, to provide credit support and project longevity for financing. Council members discussed the proposed extension and raised questions about the county’s continuing obligation if the authority were to cease operations or the landfill closed; council member Chuck Cook said he was “a little uncomfortable” with language that would require the county to continue payments regardless of service delivery.

Council action at this meeting

Council considered title-only language for an ordinance authorizing execution of an amended and restated solid waste service agreement and authorization for bonds to fund construction of the new cell (ordinance 25-10). The council approved the ordinance on title-only reading; the item will return in full for a subsequent reading per normal ordinance procedure.

Context and next steps

Authority staff said the project and financing are intended to ensure continued regional capacity and to protect the existing inter-county arrangement that has kept tipping fees relatively low compared with private alternatives. Council members emphasized they would closely review the service agreement’s legal commitments before subsequent readings and final decisions. The authority’s proposed financing timeline, fee schedule and service-extension request will return to the council for additional review before final execution.

Ending: Council approved title-only consideration of the ordinance authorizing the amended service agreement and a bond offering for the new cell and asked staff and counsel to review contract language and fiscal impacts before final action.