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IREDELL COUNTY BOARD OF COMMISSIONERS
awk MINUTES
MARCH 17, 1992 - 4:00 P. M. BRIEFING
The Iredell County Board of Commissioners met in the South Wing Conference Room, Iredell County
Government Center, 200 South Center Street, Statesville, NC, at 4:00 p.m. on Tuesday, March 17,
1992, for a regularly scheduled meeting. Those present for the meeting were:
Sara K. Haire, Vice Chairman
Doug Madison
Frank Mitchell
Alice Stewart
Others present: Joel Mashburn, County Manager
William P. Pope, County Attorney
Alice Fortner, Clerk to the Board
Carson Fisher, Staff Engineer
Jerry Lundy, Director of Services and Development
Lois Troutman, Tax Assessor
Vice Chairman Haire called the meeting to order at 4:00 p.m.
IREDELL-STATESVILLE SCHOOLS REQUEST DELAYED UNTIL MARCH 24, 1992: Mr. Mashburn announced that
more time was needed for consideration of this request, and the board set Tuesday, March 24, 1992,
12:30 p.m., South Wing Conference Room, as the time and place to consider this matter.
DISCUSSION OF THE BOND ORDER FOR THE SPECIAL OBLIGATION BOND FOR FINANCING THE LANDFILL: Mr.
William P. Pope, County Attorney, explained the 112 -page Bond Order. Some changes had been made in
the document since a draft copy was originally given the commissioners, so new pages incorporating
the changes were distributed to the board at this time.
Mr. Pope said because of the tremendous cost of operating landfills, legislation creating a new
type of bonds called "Special Obligation Bonds" to finance these landfill improvements has been
created. "In a sense," Mr. Pope said, "we are plowing new ground." This may be the first one.
The County is about to borrow $6 million dollars for the erection of this landfill, the baler
facility, and equipment; and the landfill is going to be financed by using bonds that are tax
exempt. We do not know what the interest will be. It is about 6.3% (effective rate). This Bond
Order is the document whereby the County authorizes all of this to occur. The collateral is the
fee from the landfill (household assessment and tipping fees). The other collateral is non -tax
revenues, which includes such things as fees from the register of deeds, fees from the health
department, inspections fees, beer and wine taxes, etc. Mr. Pope hopes to negotiate with the
underwriters to exclude as many of these fees as possible. The underwriters are requiring these
non-taxable fees to be included because the revenues from the solid waste facility have no track
record, and the taxing authority of the county is not being pledged in these special bonds. (Mr.
Pope added that if the fees were needed to pay off the debt on the landfill bond, then taxes would
have to be raised to supplant the fees that now go into the general fund for appropriation.) The
bond will be rated and sold on the public market.
Mr. Pope said if the County should need additional funds in years to come, funds may be
acquired under this same bond order without going back through the process. There will probably be
more cost in the future for landfills, and this same bond can be used to finance the first lined
cell which will be needed no later than October 1, 1993.
The solid waste disposal system must be operated as an enterprise fund, and the Iredell County
Board of Commissioners has instructed that the fund be totally self-supporting. There are seven
funds involved. Ms. Goodman, finance officer, said she did not believe she would need additional
staff to handle this work. The tipping fee is to be set at a level that will cover the cost of the
landfill. There will be consultants who come in to determine if everything is being properly done
and if the tipping fee is adequate. The cost of this consultant is ten to fifteen thousand dollars
annually for a cost analysis. This additional cost will be charged to the Enterprise Fund.
Ms. Goodman said the tipping fee is now bringing in an average $143,000 a month. The
operational costs is $80,000 month.
Action on this Bond Order will be taken at the first meeting in April. Mr. Pope said the only
risk he could foresee is if someone came up with a plan where garbage became a resource, and the
landfill would no longer be needed.
Regarding the current tipping fee of $24 a ton, it is believed by staff that the fee is
adequate for FY 92-93; however a fee change is expected in FY 93-94.
TAX MATTERS: Mrs. Lois Troutman discussed the items she had for the agenda and they were
placed on Consent Agenda.
REVIEW OF BIDS FOR THE LANDFILL BALER BUILDING: Mr. Harry Dail and Mr. Jim Woodie were
present from Municipal Engineering Company to discuss the bids with the county commissioners. Mr.
Dail said he had talked with the bidders about the finance closing for the landfill, and the bidders
are willing to wait until that time for the contracts to be signed. According to the G.S., bids
' must be awarded in 30 days; contracts can be signed after that time.