Debts and Debt Solutions

Debt Management The average taxpayer probably could come up with a long list of ways Burlington County government should spend the $7.5 million it will save from a landfill-debt bailout law signed last week. The windfall, however, probably won't be used to cut taxes, reduce landfill tipping fees or even repair potholes. That's because county officials say the 522-acre landfill in Florence and Mansfield is in dire need of financial help.

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Debt Relief Solution The next budget for the landfill, the composting operation, the recycling center and other solid waste operations will probably show a $4 million to $5 million deficit when it is completed this spring, county officials said.

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Debt Management Services The reason for the county's solid waste budget deficit, which hovered at about $2 million last year before an emergency state grant helped balance the books, is rooted in a 1997 U.S. Supreme Court ruling that shifted the solid waste business from a virtual government monopoly to the open market.

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Bad Credit Debt Consolidation Several years before the court ruling, state government called on all New Jersey counties to create trash incinerators or landfills that could handle all waste produced in each county. Burlington County opened its sprawling landfill complex in 1989, and created $45 million in additional debt by doing so.

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Credit Debt Solution The courts, however, changed the rules eight years later and forced the county to compete with private, out-of-county landfills. Those private landfills could charge lower tipping fees because they didn't have as much annual debt to pay, and thus took away a lot of the county landfill's business.

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Consolidation Counseling The unexpected loss in revenue threw the solid waste budget for a loop from which it has yet to recover, largely because the county still has to repay the initial cost of building the landfill and other facilities at its sprawling resource-recovery complex.

Credit Card Debt County officials have long believed that the state should help provide debt-service relief because it was that level of government that called for counties to build the expensive landfill operations in the first place.

Debt Free Solution "It was at state direction that we created the solid-waste district,'' said Burlington County Freeholder William Haines Jr., a seven-year veteran of the board who oversees the county's solid waste operations. "Since we did everything at the state's direction, we think it's fair that they help solve the problem.''

Debt Negotiation Services The bailout bill calls on the state to assume 50 percent of the debt facing county landfills across the state. The bill also allows counties to refinance their remaining landfill debt for more savings.

Debt Solution Company Burlington County currently has $131 million of debt directly tied to solid waste operations. The bailout bill should trim Burlington County's annual landfill debt-service bill from the current level of $11 million to roughly $3.5 million.

Debt Elimination Services County officials, however, are reluctant to talk about tax cuts or even reducing the tipping fees at the gates of the landfill until they know exactly how much relief they will get and when it will arrive. They also are waiting to see if the new administration in Trenton will make the landfill bailout a priority.

Debt Reduction "The problem is, we don't know what the time frame is,'' Haines said. "We don't have a clear idea at all. We're not going to assume that money is going to come in a hurry.''

Debt Solution Inc Despite the uncertainty, Haines said he is willing to say the bailout should keep this year's tipping fees stable. Any budget-deficit problem this year should be solved by the incoming state money and will not have to be fixed by increasing tipping fees, which already increased recently to $56.21 a ton.

Debt Settlement Services "The good news is our tipping fees will remain stable,'' Haines said.

Debt Relief Any money left over after this year's solid waste budget is balanced will be used for equipment replacement and other routine maintenance delayed while the finances were tight, said Mary Pat Robbie, the county's director of resource conservation.

Christian Debt Solution "We have been on such a tight budget, we haven't funded a lot of the things we should fund,'' Robbie said.

Counseling Credit Debt After all its questions are answered, the county could consider reducing tipping fees, she said.

Debt Consolidation Program "I'm sure if it's possible to drop it a little bit, then we'll consider it,'' Robbie said.

Debt Reduction Solution Credit By John Reitmeyer
Burlington County Times - 1/13/2002

Topic: Solid Waste

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