Rates could go up as bond payments increase - KUAM.com-KUAM News: On Air. Online. On Demand.

Rates could go up as bond payments increase

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by Mindy Aguon

Guam - With the federal receiver's help and the establishment of the Guam Solid Waste Authority, the collection of trash around the island has become more reliable.  But the cost to dispose your trash could go up in the next few years.

Beginning next year the Government of Guam will have to start paying $11 million to pay the Section 30 bonds it obtained to finance the construction of the Layon Landfill.  This means trash rates for island residents and businesses could increase significantly over the next few years.  The Guam Solid Waste Authority will be filing a petition with the Public Utilities Commission in November requesting that rates be established.  

While they are recommending that there not be an increase in rates, the Authority understands that it might be required in order for the government to pay the bonds.  To date only interest payments were required and borrowed money was used to pay the interest but that money will be exhausted this year.  The bonds were to be paid directly from Section 30 revenue, but should the government wish to be reimbursed by ratepayers for the increase in debt service, the Solid Waste Authority advises that this could result in a substantial rate increase. 

Currently commercial customers are paying $172 a month while residential customers are paying $30 a month.  Should an increase be necessary, starting next year, commercial rates could increase to $225 and remain that way through 2015, while residential monthly rates could increase to $35 next year, $40 the following year and $45 in 2015. 

Again, the GSWA is not recommending the rate increase, but understands it may be necessary for the government in order to pay the bonds.  Residents with opinions or comments can e-mail gswarates@gmail.com.   

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