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Suffolk agrees to help bail out SPSA
Published Thursday, April 2, 2009
Suffolk City Council approved a resolution at its Wednesday meeting approving a debt restructuring plan for the Southeastern Public Service Authority.
The plan, hammered out by chief administrative officers in SPSA’s eight member communities, calls for a proposal for the Virginia Resources Authority to restructure outstanding SPSA debt and impose increased tipping fees. SPSA owes the VRA about $129 million on bonds issued for capital expenditures.
In addition, the plan calls for a general obligation pledge by Suffolk, Franklin, Portsmouth and Isle of Wight County to support the VRA restructuring.
Suffolk City Manager Selena Cuffee-Glenn said Wednesday that she did not know the details of the plan yet. The affirmative vote from the council was to approve the general plan, she said.
Suffolk’s resolution states that the council believes going with the new plan will ensure SPSA can continue to provide trash disposal service, remain current on its debt payments, have adequate time to reform the business model and provide cash flow relief by establishing lower tipping fees than those currently under consideration.
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Posted by tryingtobeablessing (anonymous) on April 5, 2009 at 8:02 a.m. (Suggest removal)
I wonder how much this is going to cost the taxpayers!
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