Explanation
Background: This fifth modification to the lease of the Waste To Energy Facility (WTEF) and transfer stations by the City to the Solid Waste Authority of Central Ohio (SWACO) represents the culmination of a year's discussion between the parties concerning refinancing of SWACO's debt to the City. SWACO proposes to sell bonds to generate proceeds to pay the City approximately $55 million to retire its $46 million deferred obligation and much of the lease payment due for 2004. It will remain obligated to the City for nearly $40 million as its 65% share of principal and interest due on WTEF debt from 2004-2010. The Retired Facility Fee/Waiver Fee payments that it has been making to the City in partial satisfaction of its lease obligations will continue to support the lease obligation by paying the debt service on these bonds, the proceeds of which reduce the lease obligation. The City will receive any excess moneys not needed for debt service along with any revenue from the WTEF site, but it is obligated to pay its own Retired Facility Fee in cash to any extent to which SWACO's debt service reserve fund fails to end the year with one year's debt service on deposit. The City will no longer receive SWACO's net profits against the lease obligation, and it is committed to send all Refuse Division waste to the transfer stations. New deferred obligations on the part of SWACO will accrue interest at the StarOhio rate (with a 4% cap) rather than at 4.5% as is currently the case. The City will extend its leases of the WTEF and transfer stations to 2054 and reduce the rent to $1 per year after SWACO retires its debt to the City. The fifth modification incorporates these changes.
Fiscal Impact: The proceeds from the SWACO bond sale will be deposited to the Economic Stabilization Fund in accordance with Ordinance #0071-2004, along with any other revenue received in the future from SWACO. These deposits will place this Fund on a very stable footing, currently w...
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