Defeasance of the Solid Waste System Refunding Revenue Bonds Series 2003 Orange County Board of County Commissioners Meeting September 18, 2007 Defeasance.

Defeasance of theSolid Waste System

Refunding Revenue BondsSeries 2003

Orange CountyBoard of County Commissioners

MeetingSeptember 18, 2007





Solid Waste SystemSolid Waste SystemSolid Waste SystemSolid Waste System

• Solid Waste System

• Solid Waste Debt

• Defeasance

• Summary and Action Requested

Presentation Topics:




• Defeasance




– Statutory responsibility to provide a means of waste disposal for the citizens of Orange County

– Serves growing community

– Provides public service

– Uses landfill capacity prudently

– Responsible for providing Closure and Long Term Care for closed cells as required by DEP regulations


• Orange County Solid Waste Landfill

– 5,000 Acres

– Class I - Cell 7B & 8

• Closure in 2008

– Class I - Cell 9

• Began accepting waste in 2005

• Scheduled to close 2011

– Class I - Cell 10

• Scheduled to open 2010

– Class III – Cell 2


• Solid Waste Special Programs

– Tire disposal

– Small Vehicle Drop off operation

– Yard Waste Composting

– Household hazardous waste collection and disposal

– Educational outreach and community cleanups


• Recognize the Landfill as valuable public asset which must be sustained

• Ensure Board control of Solid Waste assets

• Proactive marketing has secured long term tonnage commitments

– Interlocal agreements with municipalities

– Agreements with commercial waste haulers

– Agreements with other county agencies



Historical Tons Excluding recycled materials tonnage

• 2003 977,085

• 2004 1,081,518

• 2005 1,350,153

• 2006 1,152,570

24% of total tonnage is from mandatory residential customers

• Solid Waste Enterprise Fund

– Self supporting and fiscally

sound

– No Countywide tax subsidy

– Competes in free market

– Rate Stability

• Solid Waste Tipping Fees have not increased since 1995

– $49.9 million cash reserves as of September 2007


• Landfill Cell construction funding

– Debt funding for cell construction issued in 1990’s

– Bond proceeds have long since been used and all system requirements have been cash funded

– Rising closure costs have placed pressure on the system to comply with bond covenants


• To alleviate financial system pressure due to annual debt service requirements:

– Opportunity exists to use cash reserves to pay off $32 million in outstanding debt

– Cash flow analysis indicates the ability to continue to fund requirements with cash and short term financing during the current planning horizon

– Access to the County’s Commercial Paper Program to meet short term funding requirements if needed



• Summary

– The Solid Waste System is meeting the waste disposal requirements of the community

– The landfill is a valuable public asset that must be preserved

– The opportunity exists to improve the system’s financial position by paying off outstanding debt




• Defeasance



• 1992 Bonds

• 1993 Bonds

• 2003

– Cash Defease

– 2003 Refunding Bonds

Solid Waste SystemSolid Waste SystemHistoric DebtHistoric Debt

Solid Waste SystemSolid Waste SystemHistoric DebtHistoric Debt

Refinance 92 & 93 Bonds

2003 Refunding Bonds $43,000,000

Repay Bonds-Reserve Cash 13,000,000

$56,000,000

Solid Waste SystemSolid Waste System2003 2003 Plan of FinancePlan of FinanceSolid Waste SystemSolid Waste System2003 2003 Plan of FinancePlan of Finance

Solid Waste SystemSolid Waste System Revenue Bonds Revenue Bonds

Solid Waste SystemSolid Waste System Revenue Bonds Revenue Bonds

Outstanding BondsOrange County, Florida, Solid Waste Facility Refunding Revenue Bonds, Series 2003

• $31,760,000 outstanding

• All bonds callable Oct 1, 2013

• Refunded 1992 & 1993 Solid Waste Bonds




• Defeasance



Retire 2003 Bonds

Repay Bonds-Reserve Cash $33,900,000

Must occur before the Oct 1, 2007 payment date

Solid Waste SystemSolid Waste System2007 Defeasance2007 Defeasance

Solid Waste SystemSolid Waste System2007 Defeasance2007 Defeasance

• Uses Solid Waste Cash Reserves

– About $50 million reserves

– $34 million will repay all bonds

– Escrow of U.S. Treasury Securities

• Pays Bonds until 2013

• All bonds retired in 2013

– Retires bond covenants

– Provides future financial flexibility

Solid Waste SystemSolid Waste SystemDefeasanceDefeasance

Solid Waste SystemSolid Waste SystemDefeasanceDefeasance




• Defeasance



• Use Solid Waste cash reserves to retire all outstanding debt

• Closely monitor tonnage and revenues

• Monitor Solid Waste cash reserves

• Undertake future actions as necessary

Solid Waste SystemSolid Waste SystemSummarySummary


• Action Requested

– Approval of a Resolution of the Orange County Board of County Commissioners Authorizing the Defeasance of the Outstanding Solid Waste Facility Refunding Revenue Bonds, Series 2003 and Approval of corresponding Budget Transfer 07-1707.











Defeasance of the Solid Waste System Refunding Revenue Bonds Series 2003 Orange County Board of County Commissioners Meeting September 18, 2007 Defeasance.

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