New­ton County BOC ap­proves fi­nal bond res­o­lu­tion

The Covington News - - LOCAL - DAR­RYL WELCH dwelch@cov­news.com

The New­ton County Board of Com­mis­sion­ers (BOC) gave fi­nal ap­proval to a $22,730,000 bond is­suance by the county’s Solid Waste Man­age­ment Au­thor­ity (SWMA) dur­ing a spe­cial called meet­ing July 20.

The money gen­er­ated by the sale of the bonds will be used by the SWMA to pur­chase the land­fill and con­ve­nience cen­ters from the county, re­fi­nance an ex­ist­ing Ge­or­gia En­vi­ron­men­tal Fi­nance Au­thor­ity (GEFA) loan and pay for Ex­ca­va­tion and Recla­ma­tion Phase 1 at the land­fill.

At­tor­ney Sam VanVolken­burgh pro­vided a sum­mary of the bond fi­nances:

Par amount of the bond (the “prin­ci­pal” of the bond the SWMA will have to re­pay over time) : $22,730,000

The in­ter­est on the bonds: varies be­tween 3.4 per­cent and 4.1per­cent; av­er­age is 3.78 per­cent

The “pre­mium” of the bond (the amount the in­vestors are will­ing to pay over the par amount be­cause the in­ter­est rates on the bond are fa­vor­able com­pa­ra­ble to the mar­ket rate): $704,651.35

The pro­ceeds (the amount paid by the mar­ket to buy the bonds): $23,424,651.35

The fees and ex­penses (the un­der­writer’s com­mis­sion $150,000 plus the cost of is­suance $317,800): $467,800

The amount re­ceived by the SWMA from the sale of the bonds: $22,956,851

Un­der the In­ter­gov­ern­men­tal Agree­ment (IGA) be­tween the county and SWMA, to the ex­tent funds are avail­able, the SWMA will make pay­ments on the bonds.

Bond at­tor­ney Har­ri­son Sul­li­van told com­mis­sion­ers should the SWMA rev­enues be in­suf­fi­cient to make the pay­ments, the county will be re­spon­si­ble.

“The county will agree to pay the au­thor­ity amounts suf­fi­cient to en­able the au­thor­ity to pay debt ser­vice on the bonds in the event the rev­enues of the land­fill are not suf­fi­cient,” he said.

The res­o­lu­tion passed by a 3-0 vote.

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