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Home My WebLink About4103_4112_Greensboro_FYEND2020Mechanism_FID1716322_20201208GREENSBORO NORTH CAROLINA CITY OF GREENSBORO, NC LETTER FROM CHIEF FINANCIAL OFFICER FY 2020 December 8, 2020 Ms. Renee Kramer Compliance Officer North Carolina Department of Environmental Quality Division of Waste Management Solid Waste Section 1646 Mail Service Center 217 West Jones Street Raleigh, NC 27699-1646 Dear Ms. Kramer: I am the Chief Financial Officer of the City of Greensboro, North Carolina. This letter is in support of this unit of local government's use of the financial test to demonstrate financial assurance, as specified in N.C.G.S. 130A-295.04 for the fiscal year ending June 30, 2020, including estimated closure and post -closure costs of the City's C & D Landfill, as well as certain estimated remediation costs associated with the Phase II Landfill groundwater. This unit of local government is the owner and operator of the following facilities for which financial assurance for closure, post -closure, or corrective action is demonstrated through the financial test specified in N.C.G.S. 130A-295.04 (Bond Rating Indicator of Financial Strength). The current closure and post -closure cost estimate covered by the test are shown for Permit No. 41-03, White Street Sanitary Landfill, Phase II, located at 2503 White Street, Greensboro, North Carolina, 27405. Of the 135 acres of the Phase II footprint, 101 are owned by Guilford County and leased to the City of Greensboro. We believe, however, that only 98 acres of the 101 acres owned by Guilford County are actually utilized as part of the landfill footprint area. The City completed final closure of Phase II during fiscal year 1998-99. Upon closure, the MSW Landfill was re -permitted for construction and demolition debris disposal above the regulatory closure cap, consisting of approximately 65 acres. As of June 30, 2020, the City of Greensboro had expended $3,876,035 to complete closure of the original Phase II MSW Landfill. Another $2,535,980 was spent to close 33 acres of the C&D Landfill which was completed in FY 2016. Total remaining closure costs of the C&D unit (32 more acres) are estimated at $3,101,871. It is PO BOX 3136 • GREENSBORO NC 27402-3136 • WWW.GREENSBORO-NC.GOV • 336-373-CITY (2489) 640 estimated that total Phase II post -closure care costs, including the C&D unit will amount to $8,891,426 ($296,381 per year), for 30 years following closure. The current closure and post -closure cost estimates covered by the test are also shown for Phase III, Cells 1, 2 and 3, White Street Sanitary Landfill, located at 2503 White Street, Greensboro, North Carolina, 27405. The permit number for Phase III is 41-12. Phase III opened on January 1, 1998 and Cell 1 (25 acres) completed filling as of June 30, 2001. It is estimated that $6,086,517 (2013 plus inflation) will be required in total for closure activities at the White Street Sanitary Landfill Phase IIl, Cell 1, and post -closure activities will require $83,564 (2013 plus inflation) annually for 30 years after closure or $2,506,920. The City's recorded liability for closure and post -closure care costs of Phase III Cell 1 as of June 30, 2020 was $8,593,437 based on full capacity used. Phase III, Cell 2 (13 acres) opened on July 1, 2001. It is estimated that $3,164,939 (2013 plus inflation) will be required in total for closure activities at the White Street Sanitary Landfill Phase III, Cell 2, and post -closure activities will require $43,453 (2013 plus inflation) annually for 30 years after closure or $1,303,590. The City's recorded liability for closure and post - closure care costs of Phase III Cell 2 as of June 30, 2020 was $4,468,529 based on 100% capacity used. Phase III, Cell 3 (13 acres) began filling in 2005. It is estimated that $3,164,936 (2013 plus inflation) will be required in total for closure activities at the White Street Sanitary Landfill Phase III, Cell 3, and post -closure activities will require $43,453 (2013 plus inflation) annually for 30 years after closure or $1,303,590. The City's recorded liability for closure and post - closure care costs of Phase III Cell 3 as of June 30, 2020 was $2,599,331 based on 58.2% capacity used. Costs are based on estimates provided by an independent engineering firm contracted by the City in FY2013, as attached, and are adjusted for inflation each year by the factor provided by NCDEQ. Resources totaling $3,354,322 to fund landfill expansion, closure and post -closure care costs and certain remediation costs have been set aside in a Solid Waste Capital Reserve Fund as of June 30, 2020. In addition, available operating funds totaled $3,802,405 and available capital improvement funds totaled $730,902 as of June 30, 2020 for solid waste disposal purposes, including $1,919,571 appropriated for FY 2021 activities. Should any corrective actions be deemed necessary, a detailed written estimate of current costs associated with the required corrective action remedies shall be submitted to the Division of Solid Waste Management. Estimated groundwater remediation costs, as provided to us by our groundwater consultants, S&ME, Inc., were included in the information submitted to NCDENR on August 31, 2007 and again in a detailed estimate in 2012. A corresponding estimate of $1,555,311 was included in the financial assurance test, using inflation of 1.7%. The current fiscal year of this unit of local government ended on June 30, 2020. The figures for the following items marked with an asterisk are derived from this local government's Annual Financial Information Report (AFIR) for the latest completed fiscal year ended June 30, 2020. I hereby certify the following: (1) that the unit of local government has not operated at a total operation fund deficit equal to five percent or more of total annual revenue in either of the past two fiscal years, (2) that the unit of local government is not in default on any outstanding general obligation bonds or long-term obligations, and (3) does not have any outstanding general obligation bonds rated lower than Baa as issued by Moody's, BBB as issued by Standard & Poor's, BBB as issued by Fitch's, or 75 as issued by the Municipal Council. Sincerely, Richard L. Lusk Finance Director City of Greensboro December 8, 2020 Attachments CITY OF GREENSBORO, NORTH CAROLINA BOND RATING INDICATOR OF FINANCIAL STRENGTH - FY 2020 1. Sum of current closure and post -closure cost estimates: (a) Phase III, Cell I closure $6,086,517 (a) Phase III, Cell I post -closure 2,506,920 (a) Phase III, Cell 2 closure 3,164,939 (a) Phase III, Cell 2 post -closure 1,303,590 (a) Phase III, Cell 3 closure 3,164,939 (a) Phase III, Cell 3 post -closure 1,303,590 (a) Phase ll, Closure (C&D) 3,101,871 (a) Phase 11, Post -closure 8,891,426 (b) Phase ll, Estimated groundwater remediation 1,555,311 Total closure and post -closure costs $31,079,103 2. Current bond rating of most recent issuance and name of rating service: Enterprise System Revenue General Obligation Limited Obligation Bonds Bonds Bonds Standard & Poor's Global AAA AAA AA+ Moody's Investors Service Aa1 Aaa Aa1 Fitch Ratings AAA AAA AA+ 3. Date of issuance bond: June, 2020 March, 2020 February, 2020 4. Date of maturity bond: June, 2050 April, 2040 November, 2039 5. Assured environmental cost to demonstrate financial responsibility in the following amounts under Division rules: MSWLF under 15A NCAC 13B Section.1600: $31,079,103 Hazardous waste treatment, storage and disposal $0 facilities under 15A NCAC 13A Rules .0009 and .0010: Petroleum underground storage tanks under 15A $129,600 NCAC 2N Sections .0100 - 0800: Underground injection Control System facilities under 15A NCAC 2D Section .0400 and 15A NCAC 2C Section .0200: PCB commercial storage facilities under 15A NCAC 20 Section .0100 and 15A NCAC 2N Section .0100: Other: Assessment and Corrective Action - Permit 41-12 (c) 2,270,916 Other: Assessment and Corrective Action - Permit 41-03 (c) 2,270,916 Total assured environmental costs: $35,750,535 6. Total Annual Revenue AFIR: (2020 Report) $593,159,159 7. Is line 5 divided by line 6 less than or equal to 0.43? Yes/No? Yes (a) Based on 2013 engineering cost estimates with annual inflation and 1.7% inflation in FY 2020 (b) Based on 2012 engineering cost estimates, with annual inflation and 1.7% inflation in FY 2020 (c) Based on 2012 detail estimate peformed by S&ME, with annual inflation and 1.7% inflation in FY 2020 a i aw �'i'OF�: ` ' ''2613Y AS Geoifrembrans {,32 4p P&) .. 46.50 <.f x1s65;I-4 :.SF. ho ,fniicat 'S" 0 'raasporaiioE 2p&c) ==t: -- - - . . - g-Snpp��4IIichesj; "fir Zit • �� - - �iieu{ _347arJai . = I6,780 idai $54 .i'1as;IGra�iagl 16f 800, .I;006,800 .:. .52 188,400 ee Sub100 toia Eueamg�Iagf e=Sn_ _ $1;624t1e MmfFlicdionfluiy =- - 10 $E,03,605 009 TOTAL - oil P,, Ifs t2 1, f 0.12hiIaiaiias:0 -:.ZQIS ITafuaFpNil Ob TOTAL CQ =3.81 J tYe€ihometbp¢e'gsysteiai¢thePkaseTLclasurtarehas6ecrieomplete�"i7�isiL^mism �.7T"aeseestimatrsezbssec�arc2 os iudfuesmil7ei oFicaisaear laodnls 6na1¢e eg s �C . 'nise"s?yiateassmnessiuT" �:_ . . �. - - .. , sI'siem, '• �' �. � J mefai�7FcamefrouEoff7eao 4 QQ�fiicT¢deacass kucCtotiinomt dQ j itivaaadc^iFiitc tioasatvicesas urdrm�erN�D eN1tAu1esl5riNCAC13Sdb212�d.16Z¢, IM ,,y . bale �t �, '° _ i' . �•�Y .,..�.�---�-^.•----.-..,.a... t 'J 1` 0 r 0 t 20111719 C--ensboro Clcsrc�€ p lasua esj,,aies y Phase 19 Clostu YV � I. 1!413 ? hi 6 A w,D� a/ a aQ1 T`�� ; -8 {�iv��n�j _ .. _ _ vm ng�eering Ceitif 44 rtz Tnspeciioa aiidRecord�eep�g; - 17400 _ _ MainLenauce, - _ a slFenaes and Access CoafroI : ` 220 -. - '= AC #£fl!i $ Z,000 eediIIg..:: 3 IS .3;SQ03 500 - -- "Grotr>tr3urairSampa'oa�i�epozi Soo /ieilianeG3.sSys2ai : = - Michael D. Pltntner, PE )-K E 2 (- t tci .910 Frio Fp I g P G TL I$ _711 Site peC R� e O L $17�00 $I74" - Csaies�'`�es aud�c�ss CodioI £rasioii4oI - eadm 1T I.. E}�OQ and :.Pb•�dRspari - T�.s t fatal .-,-009AVMAt IU,COS`I` 21flo nI afi.--Factac r -f}}II:%€tiouFactar - 2127uflascsiFactpNf!} ET I. TAL'sees6maft2ra� 201 -TO . -- a�'F�aadmclv3ela6or,f- - ,ago _ k�, ni Rid- 1-7 i 1 -7V) -7V CITY OF GREENSBORO, NORTH CAROLINA BOND RATING INDICATOR OF FINANCIAL STRENGTH - FY 2020 1. Sum of current closure and post -closure cost estimates: (a) Phase III, Cell I closure $6,086,517 (a) Phase III, Cell I post -closure 2,506,920 (a) Phase III, Cell 2 closure 3,164,939 (a) Phase III, Cell 2 post -closure 1,303,590 (a) Phase III, Cell 3 closure 3,164,939 (a) Phase III, Cell 3 post -closure 1,303,590 (a) Phase II, Closure (C&D) 3,101,871 (a) Phase II, Post -closure 8,891,426 (b) Phase II, Estimated groundwater remediation 1,555,311 Total closure and post -closure costs $31,079,103 2. Current bond rating of most recent issuance and name of rating service: Enterprise System Revenue General Obligation Limited Obligation Bonds Bonds Bonds Standard & Poor's Global AAA AAA AA+ Moody's Investors Service Aa1 Aaa Aa1 Fitch Ratings AAA AAA AA+ 3. Date of issuance bond: June, 2020 March, 2020 February, 2020 4. Date of maturity bond: June, 2050 April, 2040 November, 2039 5. Assured environmental cost to demonstrate financial responsibility in the following amounts under Division rules: MSWLF under 15A NCAC 13B Section.1600: $31,079,103 Hazardous waste treatment, storage and disposal $0 facilities under 15A NCAC 13A Rules .0009 and .0010: Petroleum underground storage tanks under 15A $129,600 NCAC 2N Sections .0100 - 0800: Underground injection Control System facilities $0 under 15A NCAC 2D Section .0400 and 15A NCAC 2C Section .0200: PCB commercial storage facilities under 15A $0 NCAC 20 Section .0100 and 15A NCAC 2N Section .0100: Other: Assessment and Corrective Action - Permit 41-12 (c) 2,270,916 Other: Assessment and Corrective Action - Permit 41-03 (c) 2,270,916 Total assured environmental costs: $35,750,535 6. Total Annual Revenue AFIR: (2020 Report) $593,159,159 7. Is line 5 divided by line 6 less than or equal to 0.43? Yes/No? Yes (a) Based on 2013 engineering cost estimates with annual inflation and 1.7% inflation in FY 2020 (b) Based on 2012 engineering cost estimates, with annual inflation and 1.7% inflation in FY 2020 (c) Based on 2012 detail estimate peformed by S&ME, with annual inflation and 1.7% inflation in FY 2020