Maverick County Commissioners Court approves $3M bonds for Landfill expansion
By: Jose G. Landa
An Exclusive Eagle Pass Business Journal News Story/Copyright 2013
Maverick County Commissioners Court unanimously approved (4-0) the issuance of $3,090,000 in 2013 Maverick County Tax Bond Series to finance the design and construction of the second cell of the Maverick County Landfill operated by the Maverick County Solid Waste Authority at a special meeting held on Monday, April 29, 2013.
Maverick County Financial Advisor Roberto Rodriguez advised Maverick County Commissioners Court that a $3,090,000 bond issuance is required to finance the design and construction of the second cell of the Maverick County Landfill with $2,844,000 going to the Maverick County Solid Waste Authority for this project and the remaining $246,000 going to pay for legal, financial, and issuance expenses.
Rodriguez told Maverick County Commissioners Court that an exhaustive search for financing was made and that the Oppenheimer Company had agreed to do the issuance of the $3,090,000 bonds at a rate of eight (8%) percent interest for a term of seven years with the first payment commencing in September of 2013. Rodriguez added that a lower interest rate was unavailable due to Maverick County not having completed its financial audits for 2011 and 2012. Rodriguez pointed out that Maverick County’s failure to approve and complete its 2011 and 2012 Maverick County financial audits to date will cost Maverick County taxpayers increased financing costs due to the higher interest rate of eight percent. Had Maverick County been in compliance with its 2011 and 2012 financial audits, a lower interest rate would have more than likely been available and negotiated for the $3,090,000 bonds.
Rodriguez added that his firm had found a buyer for the $3,090,000 bonds in the Orix Company from Dallas, Texas.
Maverick County Bond Counsel Juan “Johnny” Aguilera advised Maverick County Commissioners Court that his law firm had reviewed and prepared the necessary legal documents to finalize the issuance of the $3,090,000 and recommended they approve the bond issuance.
County Commissioner Roberto Ruiz questioned Rodriguez if all measures had been exhausted to obtain a lower interest rate and terms, which Rodriguez answered “Yes.” Rodriguez pointed out that the previous Landfill loan had a higher interest rate of eight and three-quarters percent (8.75%) and under the new bonds Maverick County was saving a three-quarters of a percent (0.75%). Rodriguez reiterated that a lower interest rate had not been obtained due to Maverick County Commissioners Court failure to approve its 2011 and 2012 financial audits which are still been worked on by an independent auditing firm.
Maverick County Solid Waste Authority Board Chairman Rolando Jasso also attended the meeting and confirmed Rodriguez’s terms and conditions of the issuance of the $3,090,000 bonds.
Rodriguez noted that the bond funds should be available to the Maverick County Solid Waste Authority by no later than May 28th to begin with the design and construction of the second landfill cell so that it may be completed and operational by November of this year. Jasso added that cell one is projected to reach its full capacity by the end of this year and stated that he “hopes the Eagle Ford continues to grow” so that the Maverick County Landfill may continue accepting its solid waste.
In October of last year (2012), the Maverick County Solid Waste Authority informed Maverick County Commissioners Court and taxpayers that the original cell of the Maverick County Landfill was reaching full capacity in just two and a half years of operation instead of its projected five year life span due to the large demand and usage by Eagle Ford Shale oil and gas service companies of the landfill to dispose of their solid waste and the need to seek and obtain financing for the design and construction of a new second cell.
On January 7, 2013, former Maverick County Solid Waste Authority Chief Executive Officer and Maverick County Landfill General Manager Hector Daniel Chavez, Jr. abruptly resigned from his post and was later indicted in March of 2013 by a federal grand jury for embezzlement of funds, which said federal criminal case is currently pending in the United States District Court for the Western District of Texas, Del Rio Division, in Del Rio, Texas.
