What will happen if the localities do not stabilize SPSA?
If SPSA fails to provide its waste disposal services to member localities, each will have to find another means of doing so. Most importantly, the $240 million dollar debt would still have to be paid. Defaulting on this debt would have serious consequences for localities and the Commonwealth, as approximately one-half of the debt is to the State. If each locality assumes its equitable share of the debt, the amount of the debt could have significant impact on the locality’s bond rating and ability to borrow money at favorable rates for future capital projects including parks, schools and roads. The City’s equitable share of the debt would be from $47 million to $54 million, or roughly the cost of two elementary schools, and the City would still have to pay for trash disposal. Specifically, the Governor has stated in writing that if the City does not meet the debt obligation to the State of Virginia (the Virginia Resources Authority (VRA) has made two loans to SPSA totaling approximately
