The Page County Board of Supervisors plans to reopen and operate Battle Creek Landfill just like a business — though it’s likely to be months before the facility starts taking in trash.

Last week county officials struck an $8.5 million deal with landfill investors CapitalSource Finance of Maryland and former Battle Creek operator National Waste Services (NWS) of Virginia. The deal allows Page County to claim operational ownership of the landfill.

Page County began the changeover this week, putting new locks on the gates leading to Battle Creek on Tuesday, Jan. 25, a move that starts the process of readying the landfill to reopen as a county-run facility.

Ten months ago in March, the state Department of Environmental Quality shut down Battle Creek after citing numerous operational violations.

In the interim, the county has been hauling local waste to other state disposal sites, and the county and NWS appeared to be headed for a showdown in court.

But on Jan. 18 — a week before the first hearing in Richmond City Circuit Court — county officials announced that all parties involved in the landfill dispute had reached a $8.5 million deal, allowing Page County to reclaim Battle Creek with the intention of reopening the facility following strict state requirements.

Now after signing on the dotted line, county supervisors are looking into financing the settlement, plus paying for improvements at the landfill required by the DEQ.

The first step was taken last week, when county supervisors unanimously supported forming a public service authority (PSA) to run Battle Creek, a move that requires a public hearing scheduled for March 1.

According to Page County landfill attorney James E. Cornwell Jr., establishing a public service authority creates the financial situation that lets the county borrow the money to pay for the $8.5 million settlement, along with money needed to make improvements at Battle Creek. County officials have yet to estimate the cost of these improvements.

The public service authority will be run by a board of directors. These directors are appointed by county supervisors. Or, added Cornwell, the county supervisors could also appoint themselves to serve as PSA directors.

A PSA board would be in charge of maintaining Battle Creek and hiring employees to operate the facility. The public service authority would also be responsible for operating the county’s three trash collection centers at Springfield, Stanley and Shenandoah.

The PSA plan is similar to the one used at the Luray Caverns Airport. The airport is run by an authority appointed by elected county officials. This authority runs the airport and secures funding for airport projects, like the current apron expansion. But the airport authority must get county approval for such projects and, typically, the county must contribute a percentage of funding for the projects.

"One of the advantages of creating a PSA is those appointed to the authority can enter an agreement with the county of Page to dispose of waste and operate Battle Creek Landfill," Cornwell said. "A PSA could create a revenue stream for the county to borrow money for settlement and construction costs. And then, hopefully, when the landfill is up and running, it could offset some of the county’s costs."

The PSA doesn’t preclude the county from bringing in a third-party operator to run the landfill. But Cornwell said it’s likely the county board will look to run the facility with county employees.

Since DEQ shut down the landfill on March 10, 2004, Page County has spent about $35,000 a week to transport and dump local waste. With a PSA in place, Cornwell said county officials could pay that money to the public service authority, which could then put it toward debt service on the $8.5 million settlement and other construction costs at the landfill.

"Clearly, the county is paying out money now to dispose waste," Cornwell said. "But we can take that money and, in a sense, pay it to ourselves to the authority to help get this landfill back up and running."

A public hearing on creating a public service authority to oversee local waste disposal and operate Battle Creek landfill is planned for Tuesday, March 1. No site has been picked.

According to the settlement agreement, Page County has until June 1 to pony up the $8.5 million to CapitalSource. Cornwell said he is researching where the county should apply for a loan.

At the same time, county officials are reviewing how the outlay of money is likely to impact Page’s financial situation.

Supervisors Chair Mason C. Lockridge Jr. (R-Dist. 2) said it’s too early to say if the settlement and reopening costs will result in the need for a tax increase.

"I hope that we don’t have to have a tax increase. But it’s way too early to determine that. We need to see what each department’s needs are, and that will relate to whether we need a tax increase or not," Lockridge said.

But Lockridge said he’s confident the settlement will not impact the current 2004-05 fiscal budget.

So, over the next couple of weeks, county officials plan to begin the 2005-06 budget planning process. And the landfill settlement — and its financial impact — will be in the mix.

"Once we have all of the facts and figures in front of us, we will be able to make a better determination," Lockridge said.

"My feeling right now is that [the landfill] won’t be a major player at this time. But until we get some things aligned, we don’t know. None of us want to [impose a tax increase], but we might have to."