Due to the finances that developed from the construction of its waste to energy, the town dug itself into a huge 6 million dollar hole.
In order to fuel the change and decrease debts, they ended their 30-year contract for one of the facilities that were located in between Edison Avenue and Patterson Avenue.
In this contract, a company named Covanta was responsible for the operation of the daily landfill. In this agreement, Covanta received 15% of profits while the town received the remaining 85%. Along with this Covanta was also being charged a maintenance fee.
On the flip side, they both benefited financially from their association with the Gershaw recycling corporation. The revenue that was coming from this was being shared.
Upon the new agreement, it is said that the town will save nearly 9 million dollars in spending. Most noteworthy pointing out the fact that the payment structure would be more beneficial to them and Covanta.
New Agreement Regulations:
Covanta will be paid a non-tipping fee by the town.
The town will get a portion of money from energy sales.
The town will not receive any money from recycling.
The town will obtain revenue for the disposal of ash.
With this, the town of Babylon will not only save money but also help taxpayers reduce their finances in forms of trash pickups, etc. This will help those in the town who need help with finances and help them save money.