Sponsor: Finance
Title
title
2021 Solid Waste Facility Bond Ordinance - Hold Public Hearing
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Recommendation
recommendation
Hold a public hearing to afford the public an opportunity to comment on the proposed 2021 Solid Waste Facility Bond Ordinance.
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Background
background
As part of the approved Recycling and Energy (R&E) Center enhancements financing structure, Ramsey County proposes to issue general obligation bonds, on behalf of both Ramsey and Washington Counties, to fund the aggregate County Enhancement Loan amount for the R&E Center enhancements.
The R&E enhancements financing structure was approved by the R&E Board (Resolution R&E Board 2020-09) and the Ramsey County Board (Resolution B2020-201) including the following:
1. Approve the financing structure for the R&E Center enhancements, with said financing structure to include the following:
a. Each county shall loan a proportionate share to the R&E Board sufficient to cover its share of total financing, including all financing costs, for the R&E Center enhancements, according to the percentages set forth in the joint powers agreement: Ramsey County - 73%, Washington County - 27% (the “County Enhancement Loans”).
b. Ramsey County shall issue general obligation bonds on behalf of both counties (the “County Bonds”) to fund the aggregate County Enhancement Loan amount for the R&E Center enhancements.
c. Ramsey County and Washington County shall enter into an agreement whereby Washington County agrees that Ramsey County will issue bonds on behalf of both counties, and that Washington County shall provide its general obligation pledge to Ramsey County for its share of the financing and pay its share of the total financing of the R&E Center enhancements through its loan agreement with the R&E Board.
d. The R&E Board shall be obligated to and is hereby authorized to enter into one or more loan agreements pursuant to which it will agree to repay the County Enhancements Loans from facility revenues, County Environmental Charges and other available revenues on terms and conditions that match, or are otherwise consistent with, any terms and conditions of any other loans outstanding and owed to the counties, additional covenants required by the counties and the County Bonds issued to fund R&E Board’s County Enhancements Loans.
The two R&E Center enhancement projects, a durable compostable bag processing system and a recyclables recovery system are estimated to cost $19,286,450 and $23,575,000 respectively, for a total estimated cost of $42,861,450. To allow for small adjustments and costs of issuance, the proposed 2021 Solid Waste Facility Bond Ordinance sets the maximum amount of bonding at $43,000,000. The proposed ordinance sets the maximum amount of bonds that can be issued, the actual amount of bonds issued may be less, and cannot be more, than the maximum set in the ordinance. The County Board will be requested at future dates to approve the actual amount of bonds issued and to award the sale of the bonds to the lowest bidder.
The proposed bonds would be issued by ordinance in accordance with procedures set forth in the County’s General Bonding Ordinance No. 93-292, adopted on July 29, 1993, and in compliance with the Ramsey County Home Rule Charter.
The Ramsey County Home Rule Charter states that the County Board will hold a public hearing to afford the public the opportunity to comment on each proposed ordinance. On October 20, 2020, the County Board (Resolution B2020-209) established November 17, 2020 as the date for the public hearing on the proposed 2021 Solid Waste Facility Bond Ordinance. The notice for this public hearing was published on October 28, 2020.
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County Goals (Check those advanced by Action)
☐ Well-being ☒ Prosperity ☒ Opportunity ☒ Accountability
Bond financing aligns with the County’s Opportunity and Prosperity goals by facilitating strategic capital investments which cultivate economic development and prosperity in the community.
Racial Equity Impact
This action by itself does not have a measurable racial equity impact, as the action is just one step in the ordinance process required by the County Charter to issue bonds. The County issues bonds to finance numerous capital improvement projects, each of which provides programs and services to the community. The racial equity impact is considered by the County departments during the development of the associated programs and services for each capital project.
Community Participation Level and Impact
The bonds issued by Ramsey County pursuant to this proposed ordinance will be joint obligations of Ramsey and Washington Counties, with the proceeds loaned to Ramsey/Washington Recycling and Energy Board for enhancements to the R&E Center. The enhancements are the result of policy direction in the two county solid waste management master plans. Preparation of the Ramsey County plan included significant community engagement, as did the purchase of the R&E Center and discussion about the enhancements. The County Board also holds a public hearing as part of the Bond Ordinance process to afford the public an opportunity to comment on this proposed project.
☒ Inform ☒ Consult ☒ Involve ☐ Collaborate ☐ Empower
Fiscal Impact
The proposed 2021 Solid Waste Facility Bond Ordinance authorizes a maximum amount of $43 million of bond issuance to finance the R&E Center enhancement loans. The actual amount of bonding may be less and the final bonding amount will be determined and considered by the County Board at a later date. The County expects to receive loan payments from the R&E Board and Washington County equal to the required debt service on the County Bonds resulting in no cost to Ramsey County. The expected term of the loans and bonds is 25 years.
County Manager Comments
County Board approval is required for Ordinance procedures.
Last Previous Action
On October 20, 2020, the County Board waived the first reading of the proposed 2021 Solid Waste Facility Bond Ordinance (Resolution B2020-208) and set the date of the Public Hearing for November 17, 2020 (Resolution B2020-209)
On October 20, 2020, the County Board approved the Recycling and Energy Center Enhancements Financing Structure (Resolution B20202-201)
Attachments
1. Proposed 2021 Solid Waste Facility Bond Ordinance
2. Proposed Schedule of Events - 2021 Solid Waste Facility Bond Sale
3. Affidavit of Publication