2009 Clean Water Fund Report
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State of Connecticut State Revolving Fund Programs: CLEAN WATER FUND Supporting the Planning, Design, and Construction of Municipal Water Quality Projects 2009 Annual Report State of Connecticut CLEAN WATER FUND Amey Marrella Commissioner Department of Environmental Protection Denise L. Nappier State Treasurer COMMUNITIES SERVED BY THE CONNECTICUT CLEAN WATER FUND As of June 30, 2009 Litchfield County: Windham County: Canaan Brooklyn Litchfield Plainfield New Milford Windham Plymouth Woodstock Thomaston Torrington Watertown Tolland County: Winchester Bolton Lakes WPCA Coventry Hebron Stafford Fairfield County: Vernon Bethel Bridgeport New London County: Brookfield East Lyme Danbury Darien Groton Fairfield Jewett City Greenwich Ledyard New Canaan New London Norwich Newtown Point-O’Woods Norwalk Redding Sprague Stonington Ridgefield Shelton Hartford County: Stamford Bristol, MDC, Suffield, Stratford Burlington, New Britain, Middlesex County: Westport Windsor Locks, Canton, New Haven County: Deep River Plainville, East Windsor, Middlefield Ansonia, Branford, Naugatuck, Simsbury, Farmington, East Haddam Cheshire, North Branford, South Windsor, Marlborough, Middletown Derby, North Haven, GNHWPCA, Southington East Hampton Seymour, Meriden, Portland Wallingford, Middlebury, Waterbury, Beacon Falls, Milford, West Haven TABLE OF CONTENTS REPORT INTRODUCTION..................................................................................................................................................... 5 EXECUTIVE SUMMARY ........................................................................................................................................................ 6 SUMMARY OF ACTIVITIES AND ACCOMPLISHMENTS IN 2009................................................................................ 7 BACKGROUND......................................................................................................................................................................... 8 PROGRAM MANAGEMENT ................................................................................................................................................ 10 MAJOR PROGRAMS OF THE CONNECTICUT CLEAN WATER FUND ........................................................................................... 11 PROJECT FINANCING.......................................................................................................................................................... 16 THE PROJECT PRIORITY LIST .................................................................................................................................................. 17 AVAILABLE FINANCING .......................................................................................................................................................... 18 BORROWERS ........................................................................................................................................................................... 20 2009 PROJECTS ....................................................................................................................................................................... 22 PENDING PROJECTS ................................................................................................................................................................. 22 FINANCING PROGRAM ADMINISTRATION .................................................................................................................. 24 PROGRAM FUNDING FOR THE CLEAN WATER SRF ................................................................................................................. 25 FEDERAL CAPITALIZATION GRANTS ....................................................................................................................................... 25 STATE AUTHORIZATIONS AND CONTRIBUTIONS ..................................................................................................................... 27 REVENUE BONDING PROGRAM ............................................................................................................................................... 28 SUMMARY OF PROGRAM ACTIVITIES AND INITIATIVES FOR 2010 .................................................................... 31 LONG-TERM PROJECTIONS.............................................................................................................................................. 32 CONDITION OF THE CONNECTICUT CLEAN WATER FUND ................................................................................... 34 APPENDICES........................................................................................................................................................................... 35 APPENDIX I: STATE AUTHORIZATIONS........................................................................................................................ 36 APPENDIX II: STATE MATCH FOR FEDERAL CAPITALIZATION GRANTS ......................................................... 38 APPENDIX III: FEDERAL CAPITALIZATION GRANTS ............................................................................................... 39 APPENDIX IV: LOANS CLOSED DURING FY 2009......................................................................................................... 41 APPENDIX V: PENDING PROJECTS ................................................................................................................................. 42 APPENDIX VI: BORROWERS BY CREDIT RATING...................................................................................................... 44 APPENDIX VII: CLEAN WATER FUND PRIORITY RANKING LIST AS OF 2009.................................................... 46 APPENDIX VIII: PROGRAM MANAGEMENT BY DEP ................................................................................................. 49 APPENDIX IX: PROGRAM MANAGEMENT BY THE STATE TREASURER’S OFFICE ......................................... 50 APPENDIX X: APPLICATION PROCESS .......................................................................................................................... 55 APPENDIX XI: LOAN AGREEMENTS ............................................................................................................................... 56 APPENDIX XII: PROJECTS FUNDED BY THE CLEAN WATER FUND SINCE 1987 ............................................... 58 UNAUDITED FINANCIAL STATEMENTS ........................................................................................................................ 98 STATE ACCOUNT (21014) - UNAUDITED ................................................................................................................................. 99 LONG ISLAND SOUND ACCOUNT (21016) - UNAUDITED ....................................................................................................... 100 AUDIT REPORTS AND SCHEDULES............................................................................................................................... 102 REPORT INTRODUCTION The Connecticut Clean Water Fund includes the Clean Water State Revolving Fund program that provides financing for projects that have been identified by the Department of Environmental Protection as priorities for ensuring compliance with state and federal water quality standards. This report for the fiscal year ending June 30, 2009, is the nineteenth Annual Report to the Governor on the Connecticut Clean Water Fund. It has been prepared jointly by the Bureaus of Water Protection and Land Reuse, and Financial and Support Services within the Department Environmental Protection, and the Office of the State Treasurer, Debt Management Division. Included in this report are the history of the Connecticut Clean Water Fund and the Clean Water State Revolving Fund, a review of project financing during fiscal year 2009, descriptions of the Clean Water State Revolving Fund revenue bond program, and projections of project funding and the management initiatives for fiscal year 2010. As a major recipient of federal financial assistance, the State must provide audited statements and comply with the federal Single Audit Act of 1984. The audited statements for the fiscal year that ended June 30, 2009, as provided in this report have been prepared by a firm of independent certified public accountants. This report includes references to the Drinking Water State Revolving Fund (Drinking Water SRF), for which a separate annual report is available. Copies of this and previous annual reports since 2001 are available at the State Treasurer’s website at www.state.ct.us/ott . Enjoying Long Island Sound waters at the Hammonasset Point jetty at Hammonasset State Park, Madison. 5 CONNECTICUT CLEAN WATER FUND Annual Report 2009 EXECUTIVE SUMMARY Within Connecticut’s borders, there are approximately 450,000 acres of wetlands, 6,000 miles of streams and rivers, over 2,000 lakes and reservoirs, and 600 square miles of estuarine water in the Long Island Sound. Managing these resources for today and tomorrow is a critical goal of the State of Connecticut and the primary purpose for the creation of the Connecticut Clean Water Fund (CWF) and its programs. The Connecticut Clean Water Fund programs include the Connecticut Clean Water State Revolving Fund Program (Clean Water SRF or CWSRF), the largest financing programs in the CWF which supports municipal sewage infrastructure projects throughout the State. The Clean Water SRF is a designated