VIDEO: GBB Warns Tipping Fees Will Have to Rise If GovGuam Wants to Keep Pace With Rising Bond Payments

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Guam – Solid waste receiver Gershman, Brickner and Bratton (GBB) told the Federal Court Wednesday that there is enough information now for the Public Utilities Commission [PUC] “to properly establish rates” for the Guam Solid Waste Authority [GSWA].

READ GBB’s Quarterly Report HERE

During his presentation of GBB’s Quarterly report, GBB’s Principal Associate, David Manning, spoke about the 3 rate options GBB has presented to the PUC for their consideration.

Each option, Manning said, would provide adequate funding to the Solid Waste Authority, but he warned that whatever option the PUC chooses, it will have “significant implications for the finances of the Government of Guam.”

Read GBB’s Letter to the PUC

That is because the tipping fees that Solid Waste charges consumers are linked to the debt service payments GovGuam makes on the bond funds that were borrowed to build the Layon Landfill. GovGuam uses Section 30 funds to make those bond payments. Solid Waste reimburses GovGuam from the proceeds it collects by picking up your trash. 

Manning told the Court that the PUC must make a decision by December 1 of this year, because the current debt service rates GovGuam must pay on the bonds “signficantly increases in 2013.”

If GovGuam wants to continue to be FULLY reimbursed for the bond payments its making, than the tipping fees will have to be increased as well.

“They do need to raise the rates and raise them significantly in order to ensure those dollars are there” said Manning. If rates are kept at the same level they are now, that will be enough to cover the Solid Waste Division’s costs, but it won’t be enough to cover the increased costs GovGuam must pay in debt service which are slated to increase significantly next year.