Date: March 12, 2009
Source: News Room
Municipalities in southern Virginia that are members of the Southeastern Public Service Authority (SPSA) will likely soon be paying $175 per ton for waste disposal, the highest rate in the country. The rate increase is central to a plan to keep the troubled agency afloat long enough to sell assets and take other steps to pay off $240 million in debt. Earlier proposals included a rate hike as high as $245 per ton. The proposal, which was presented to city members last week, would still need to pass muster with the Virginia Resources Authority to whom the agency owes $129 million. Among other measures are plans to sell its waste-to-energy plant in Portsmouth this summer and to close on the sale by Sept. 1. Also, some of the member municipalities would guarantee the restructuring of $72 million worth of debt, a measure that Chesapeake City Manager William Harrell said would create some "skin in the game," giving them a vested interest in the survival of the enterprise.
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