| | | | | | | | REPORT TO SHASTA COUNTY BOARD OF SUPERVISORS
BOARD MEETING DATE: October 3, 2017
CATEGORY: Scheduled Hearings - Public Works-8.
SUBJECT:
Waste Management Bond Financing
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| | | | | | | | Supervisorial District No. : All
DEPARTMENT CONTACT: Pat Minturn, Public Works Director, (530) 225-5661
STAFF REPORT APPROVED BY: Pat Minturn, Public Works Director
Vote Required?
Simple Majority Vote | General Fund Impact?
General Fund Impact |
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| | | | | | | | RECOMMENDATION
Take the following actions regarding the issuance of tax-exempt revenue bonds by Waste Management, Inc. to finance their refuse collection and disposal facilities at the Anderson Landfill: (1) Conduct a public hearing; (2) close the public hearing; and (3) adopt a resolution which approves the issuance of the California Municipal Finance Authority Solid Waste Disposal Revenue Bonds (Waste Management, Inc. Project). |
| | | | | | | | SUMMARY
Waste Management, Inc. seeks permission to issue tax-exempt bonds to improve their Anderson Landfill. |
| | | | | | | | DISCUSSION
Waste Management, Inc. (WM) proposes to issue $100 million in tax-exempt bonds through the California Municipal Finance Authority (CMFA). Up to $5,450,000 of the proceeds may be spent at the Anderson Landfill in Shasta County. The Tax and Equity Fiscal Responsibility Act (TEFRA) places some conditions upon this financing mechanism. The elected body of the local government shall concur. A public hearing is required. WM shall be solely responsible for bond repayment. Shasta County shall have no obligation, liability or responsibility for the bonds and they will not affect the County’s bond rating. |
| | | | | | | | ALTERNATIVES
The Board may decline to adopt the resolution. WM would be precluded from using tax-exempt bonds to finance improvements in Shasta County. They may be able to obtain alternate funding albeit at a higher cost. |
| | | | | | | | OTHER AGENCY INVOLVEMENT
CMFA is a joint powers agency with 275 members including Shasta County. County Counsel has approved the resolution as to form. The recommendation has been reviewed by the County Administrative Office. |
| | | | | | | | FINANCING
Adequate funds to prepare this staff report were included in the Adopted FY 2017/18 Solid Waste budget. The General Fund will receive approximately $850 through CMFA. There is no other General Fund impact. |
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