Local Bank to Handle County Bond for Solid Waste Debt

By Stan Matthews
County Website and Communications Manager

At its May 22 meeting, the San Juan County Council will formally extend its thanks to Islanders Bank for its “excellent proposal” which won the bank the right to purchase the County’s $810,000 general obligation bond.  Islander’s bank was founded in San Juan County in 1980 and, though it was acquired by Banner Bank in 2007, it operates under local management and a local board of directors.

“This is a good deal for the council and a good investment for our local bank. It’s genuine ‘win-win’ situation for the people of San Juan County,” said County Administrator Pete Rose.

The proceeds of the bond sale will cover the debt accumulated by the county’s solid waste utility in 2009 and 2010. During that time, the operation faced expensive capital projects required to keep its transfer stations operating; then saw the volume of waste, and its revenue stream, drop dramatically as the economy contracted.

Rose called the bond sale “an action of finality for preparing the county to move beyond an uncertain financial period in solid waste.”

The bonds interest rate for the 15-year bond is fixed at 3.125%. The annual principal and interest payment will be approximately $65,000.

Though the County is required to pledge its full faith and credit to repay the bond, the Council has stated it will cover the cost of the payments with excise tax revenue collected from the franchise solid waste hauler.  The franchise hauler will handle most of the garbage and recycling that residents now drop off at County facilities.

Requests for proposals for private operation of the County’s current drop-off facilities are now being prepared; however both the County and the franchise hauler are preparing for the possibility that the facilities could be closed if no acceptable proposals are received.

The transition from primarily drop off to roadside collection is scheduled to begin late this summer.