Waste Not! Carroll

From the Carroll County Times, August 19, 2010

By Bruce Holstein

The incinerator is not in the best interest of our citizens because it places Carroll at a financial disadvantage that will result in higher trash bills higher taxes and/or service benefit fees.

The financial structure is absurd. Although Frederick's tipping costs will be $45.11 per ton, Carroll's cost is $84.81. To add insult to injury, other counties with zero investment in the project will only pay $68. This may be the first time in history where an investor (Carroll) has to pay more than un-invested third parties.

Additionally, contract terms between the Northeast Maryland Waste Disposal Authority and the contractor, Wheelabrator, are troubling.

The Authority receives big money from the incinerator, and this creates the appearance of a conflict of interest. The Authority receives $52,000 in direct payments and $502,000 a year in back door payments from Wheelabrator for oversight.

The contract includes a $73 million contribution from Wheelabrator toward construction costs. However, the financial plan shows the counties repaying the entire $73 million plus $38.8 million for inflation adjustments regardless of the amount actually spent. Does this mean we must fund the entire $111.8 million even if the contractor spends less?

On June 23, I released an analysis and critique of the incinerator financial plan, which is available on the WasteNot Carroll website. Click on WTE financial analysis on the right hand side of the page to access all the financial discussion to date. Three weeks later the Frederick County Board of Commissioners authorized hiring a consultant for $50,000 to study their own plan, and on July 22, the Carroll County Board of Commissioners held a hearing to discuss the WTE financials.

The county is committed to building a $600 million incinerator and does not even have a profit and loss statement. Their commitment shows a lack of respect for our pocketbooks as they will force us to pay much higher trash bills and/or they will have to increase taxes or implement a service benefit fee to cover the enormous fixed cost of this project.

In view of the significant problems with the planned incinerator finances, I call upon Carroll County's decision-makers to protect our interests. The size and structure of the existing contract need to be reconsidered and renegotiated. In the absence of a sensible arrangement, we need to terminate the partnership arrangement.

Bruce Holstein

Taylorsville