Landfill’s financial success tied to volume
MUSCLE SHOALS — Leaders of the Tri-Cities Solid Waste Disposal Authority (SWDA) say the landfill is operating well again, but its long-term financial stability depends on bringing in more waste.
“I think the landfill is running great. The problem is the debt,” said Muscle Shoals Mayor Billy Hudson during Friday’s meeting at city hall. “So, my question is: How are we going to solve that problem? How are we going to get more income?”
The authority carries roughly $37 million in total liabilities, including more than $32 million remaining on bonds issued after the CWI Cherokee Landfill LLC’s bankruptcy restructuring.
Monthly bond payments are more than $216,000.
While recent financial reports show the operation covering expenses and posting a modest monthly profit, officials said steady, higher tonnage is the key to staying ahead of the debt.
To increase revenue, the authority is trying to recruit companies outside Colbert County rather than relying only on local waste. Leaders said one challenge is regaining the trust of companies that had to find other disposal options when the landfill was closed for eight months.
Board members said the closure forced large waste generators to scramble to secure alternatives. Some have not returned.
“I think there is some trust issues there,” said John Simmons, consulting engineer to the Tri-Cities SWDA. “They want to feel comfortable that we can handle it.”
Simmons noted one company located close to the landfill used to be a top customer. The company currently land applies its sludge rather than hauling it to the landfill.
Even if the company opted to start using the landfill again, Simmons said the landfill could not handle its entire daily volume without other material to mix with the sludge. When the landfill was previously operated by CWI, additional waste was brought in from a transfer station in Madison to balance sludge loads.
Today, average daily tonnage fluctuates between about 450 and 600 tons, depending on the season. Officials said bringing in about 200 additional tons per day would significantly strengthen revenue.
Landfill Manager Curtis Roberts is working with an industry consultant to pursue new customers outside the area.
Simmons told the board the facility is operating in compliance after resolving earlier wastewater treatment issues.
SWDA attorney Kyle DeFoor said operations are in far better shape than when the authority took control following bankruptcy proceedings.
DeFoor estimates the landfill has more than 40 years of life remaining at current disposal levels. A significant increase in volume would shorten that lifespan.
“We want it to be better in the future … make sure it’s here for Colbert County and the cities for as long as possible,” he said.
