City agrees to amend contract

August 30, 1991|By Patrick Gilbert | Patrick Gilbert,Evening Sun Staff

The city has agreed to amend its contract with the Northeast Waste Disposal Authority so that the authority can refinance a 1982 bond issue that provided money to construct the Bresco incinerator in South Baltimore.

By refinancing the bonds at a lower interest rate, the authority will cut its debt service and pass the savings along to the city by cutting the tipping fee the city pays for solid waste disposal at the incinerator. Northeast needed the city's approval to change language in the contract that set the terms of the bond sale. The agreement means the city could save as much as $600,000 annually.

The tipping fee paid by the city is based on a complicated formula that includes the debt service the authority pays on the bonds it sold. The city now pays about $34 a ton to dump its trash at the incinerator. City finance officials said the reduction would be between $2 and $2.61 a ton. In view of the approximately 261,000 tons the city disposes at BRESCO, the city could save between $500,000 and $600,000, said city Finance Director William R. Brown Jr.

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