RWS Board Approves Bond Refinancing Plan that Generates an Estimated $2.17 Million in Savings

Board meeting recap - May

The Board of Directors at Regional Waste Systems gave unanimous approval to a bond refinancing plan that will generate an estimated $2.17 million in savings and lower the organization’s annual debt payments without extending the bond maturity dates beyond 2014.

The Board’s approval of the recommendation by the Finance Committee strengthens RWS’ financial stability and ensures that the existing debt of $55.8 million will be paid in full in nine years.

“This refinancing helps RWS continue to strengthen our business systems and financial standing,” said James Cloutier, the RWS Board chairman. “As Southern Maine's community-owned manager for waste-to-energy cogeneration, recycling, and environmental quality management, we continue to seek responsible, forward looking solid waste and environmental quality solutions for our citizens.”

The Board’s vote at its May 19 meeting marked the conclusion of more than four months of intense work by the Finance Committee, chaired by Windham Town Manager Tony Plante, to find and secure the best deal for RWS.

The committee considered suggestions to extend the debt beyond 2014, but in the end decided it was more prudent to maintain the original schedule and get all bonds paid off by the original maturity dates.

The savings will be achieved by paying a lower interest rate on the bonds, which were used to acquire, construct, equip and improve RWS over the years.

The money saved by RWS as a result of the refinancing – including a projected $1.4 million savings in the upcoming 2005-06 budget - will be placed in a fund to offset scheduled peak debt service payments in future years, Cloutier said.

Plante gave credit to the Board for its decision to follow his committee’s recommendations.

“The Board’s approval of the refinancing, without increasing the amount of debt or lengthening the time for paying it back, will result in more than $2 million in savings for everyone in the 27 communities that RWS serves,” Plante said. “Thoughtfully taking advantage of lower interest rates to benefit the system and manage RWS debt was a smart thing for the Board to do."

Beside Plante, other members of the Finance Committee and the communities they represent include: Jeff Jordan, South Portland; Duane Kline and Nick Mavodones, Portland; Carol Fritz, Cape Elizabeth; Maurice St. Clair, Lyman; Susan McGinty, Cumberland; David Cole, Gorham; Ron Owens, Scarborough; and Len Van Gaasbeek, representing Hollis and Limington.

Regional Waste Systems is a non-profit solid waste management corporation that is owned and operated by 21 cities and towns with six associated member towns. The waste-to-energy plant operates 24 hours a day, 365 days a year and complies with state and federal Clean Air emission standards. Each year, RWS processes more than 170,000 tons of trash. The heat created by burning the waste generates steam, which is then transformed into enough electricity to meet the needs of 15,000 homes.

RWS has the largest, most comprehensive municipal recycling program in the state, recycling more than 17,000 tons of recycled materials each year. Established in 1974 after Portland, South Portland, Cape Elizabeth and Scarborough decided to form a cooperative to handle their waste disposal, RWS today is governed by a 28-member board, consisting of officials appointed from member communities. RWS accepts solid waste and recycled materials from these communities. For more info, visit the RWS web site at www.regionalwaste.org.
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