In its 2010 Annual Financial Report Update Document, submitted to the Office of the New York State Comptroller, the Town of Colonie reported a deficit of $10.4 million in governmental funds and $10.6 in the landfill fund, equaling out to a total deficit of $21.1 million. The landfill's deficit was up $2.9 million from 2009, which Mahan said led the town to decide that this contract with Waste Connections was a "no brainer."
The $23 million the town is receiving will eliminate the $21.1 million deficit, and will leave it with $2.5 million to pay off other debt such as the $25 million in bonds the town took out for the landfill. According to Deputy Comptroller Chris Kelsey, the town is legally not allowed to pay off all of their debt right away. He said this is because there are people that own town bonds in the IRA and expect a level of interest every year till it matures.
The governmental funds deficit, which is paid for by the taxpayers, has actually gone down $1.5 million since the current administration took office, according to Comptroller Craig Blair.
"Most of the increase came from the landfill, which supports why we've come to this operating agreement because we can do so much better for the residents now and far into the future," Mahan said.""