COVINGTON, Ga. - 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:
1. Par amount of the bond (the “principal” of the bond that the SWMA will have to repay over time) : $22,730,000
2. The interest on the bonds: varies between 3.4% and 4.1%.; average is 3.78%
3. 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
4. The proceeds (the amount paid by the market to buy the bonds): $23,424,651.35
5. The fees and expenses (the underwriter’s commission $150,000 plus the cost of issuance $317,800): $467,800
6. 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.