Oneida-Herkimer Solid Waste Management Authority

Management’s Discussion and Analysis

December 31, 2022 and 2021

Flow Control - Continued

The Court recognized that local communities are entitled to develop the kinds of facilities and programs that meet their unique needs, and those local communities can set up a fee structure that encourages waste reduction, recycling, and detoxification.

Capital Assets

At the end of 2022 and 2021, the Authority had $47.7 million and $49.5 million, respectively, invested in capital assets, net of accumulated depreciation, as indicated in Table A-4.

Capital Assets

The Authority adopted a five-year capital plan with the passage of its annual budget. The five-year plan forecasts spending on capital projects between $2,712,000 and $7,725,000 per year. The funds for capital projects are covered by the system tipping fees and reserves.

Debt Administration

The Authority had $9,307,593 and $10,977,593 in outstanding Revenue Bonds at December 31, 2022 and 2021, respectively. Although Oneida and Herkimer Counties guarantee debt service payments in the event that the Authority defaults, the Authority is contractually obligated to set its rates to cover 100% of debt service and operating expenses. Since its inception, the Authority has always raised sufficient revenue to cover operating expenditures, capital purchases, and debt service payments. Because the United States Supreme Court affirmed the County laws and validated the Authority’s system, and because the Authority has fostered an extensive working relationship with generators and haulers, and because the Authority has significantly diversified its operations, management is confident that revenues will continue to be sufficient to maintain the integrated solid waste system without assistance from either County. The Authority has never made a request of the Counties for a subsidy.