Atlantic County officials last week approved an initiative to process a portion of its solid waste within the county rather than sending it to the Cumberland County Improvement Authority’s solid-waste facilities.
The New Jersey Department of Environmental Protection will now review Atlantic County’s plan, known as “flow control.”
If approved by the DEP, the authority will receive less business from customers in Atlantic County. From 2005 to 2009, 20% of the agency’s revenue came from solid waste generated in the county, according to a material event notice posted on the Municipal Securities Rulemaking Board website.
Cumberland County and Atlantic County are located in southern New Jersey.
The notice said potential revenue loss affects $44.47 million of outstanding solid-waste revenue bonds, including $22.78 million of outstanding Series 2009 authority revenue bonds and $22.69 million of outstanding Series 2006 Cumberland County-guaranteed bonds.
Along with Cumberland County’s pledge, the Series 2006 bonds are insured by National Public Finance Guarantee Corp. The Series 2009 bonds are not obligations of Cumberland County and do not carry bond insurance, according to the official statement for the bonds. Moody’s Investors Service rates the Series 2009 bonds Baa1.
The agency expected to use a portion of the Series 2009 bond proceeds to finance construction of new landfills at its solid-waste facilities. Those developments are now on hold, according to the notice.
“At this time, the authority cannot definitively estimate the amount, if any, of reduced waste or revenues that may result from the implementation of flow control and the authority makes no representations and provides no assurances as the ultimate effect of flow control, if implemented, upon the authority,” the notice said.
