Use of Tax-Exempt Financing

To minimize the financing cost to the Department, all financing utilized by the contractor to fund the construction, operation and maintenance of a solid waste facility shall be through tax-exempt obligations, if a mechanism to do so is available. The purpose for this requirement is to assure that the Department pays the lowest possible interest rate so that the cost of financing the construction, operation and maintenance of a solid waste facility to the Department, amortized through the lease-back payments from the Department to the contractor, will be lower than regular commercial rates.