The Central Ohio Solid Waste Authority is expected to issue $15.5 million of solid-waste facilities improvement bonds this week.
The deal will include $2.1 million of general obligation, limited-tax, tax-exempt bonds and $13.4 million of GO limited-tax federally taxable Build America Bonds.
Moody’s Investors Service, ahead of the sale, assigned a Aaa to the bonds and the authority’s outstanding $95.7 million of limited-tax debt. The top rating reflects the authority’s stable and large economic base, growing population, and strong financial management, Moody’s said.
Proceeds will finance capital projects and equipment purchases for the agency, which serves Columbus and Franklin County in central Ohio. It enjoys strong operations but faces challenges tied to a closed waste-to-energy facility that the authority used to lease from Columbus, Moody’s analysts said.
Another challenge is the decreasing amount of trash the authority receives at its landfill. Volume has declined since 2004, so officials this year imposed flow-control rules that required trash companies to deposit 90% of the trash they collect to the utility’s landfill, Moody’s said. So far this year, volume is up by 15.4%, Moody’s said.
“We view the authority’s demonstrated will to use their authority to impose flow-control as a critical strength,” wrote analyst Henrietta Chang.
The waste authority’s board is able to set rates to maintain revenues and finance capital needs.
