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<br />WHEREAS, the circumstances present when these contractual arrangements were entered <br /> <br />into several decades ago have materially changed; and <br /> <br /> <br />WHEREAS, because Suffolk pays no tipping fees, each of the Full Tipping Fee Members, <br /> <br />including Portsmouth, must pay apro rata share ofSPSA's operating expenses that would be paid <br /> <br /> <br />by Suffolk but for the exemption; and <br /> <br />WHEREAS, because Virginia Beach's tipping fees are materially reduced, each of the <br /> <br />Full Tipping Fee Members, including Portsmouth, must pay apro rata share ofSPSA's operating <br /> <br />expenses that are attributable to Virginia Beach; and <br /> <br /> <br />WHEREAS, the combined subsidies of the six Full Tipping Fee Members to Virginia <br /> <br /> <br />Beach and Suffolk are now in the vicinity of $40,000,000 per year; and <br /> <br /> <br />WHEREAS, the effective exemption of Virginia Beach and Suffolk from paying their <br /> <br /> <br />actual costs of waste disposal by SPSA is the single largest contributing cause to SPSA's present <br /> <br /> <br />fiscal crisis, and it is also the single largest contributing cause of the SPSA debt crisis by which <br /> <br /> <br />SPSA is approximately $240,000,000 in debt with only nine years to amortize that debt; and <br /> <br /> <br />WHEREAS, if Virginia Beach and Suffolk were to pay tipping fees or rates equal to those <br /> <br /> <br />charged to other SPSA members, then SPSA's debt could be entirely retired in approximately six <br /> <br /> <br />years without increasing tipping fees; and <br /> <br />WHEREAS, the net effect ofthe Virginia Beach and Suffolk contractual arrangements IS <br /> <br />that the citizens of Portsmouth, which has a population of approximately 100,000 and a median <br /> <br />household income of $44,374, are subsidizing the municipal solid waste costs of both Virginia <br /> <br />Beach, which has a population of approximately 435,000 and a median household income of <br /> <br />$61,462, and Suffolk, which has a population of approximately 81,000 and a median household <br />income of$59,417; and <br />