Annual report 2022/ Georgia Environmental Finance Authority.

2022
Annual Report
GEORGIA ENVIRONMENTAL FINANCE AUTHORITY

2019 ANNUAL REPORT | 1

ANNUAL REPORT

2022

Our Mission
To Conserve and Improve Georgia's Energy, Land, and Water Resources.

Founded in 1985, the Georgia Environmental Finance Authority (GEFA) directs programs that improve Georgia's environment, protect natural resources, and promote economic development. GEFA provides loans for water, wastewater, and solid waste infrastructure; manages energy efficiency and renewable energy programs; administers land conservation loans; and monitors state-owned fuel storage tanks.
To date, GEFA has provided $5.5 billion in low-interest loans to cities, counties, and infrastructure authorities for more than 2,100 projects that improve water, wastewater, stormwater, and solid waste systems.

TABLE OF CONTENTS
3 Executive Director's Report 4 Accomplishments 6 Energy Resources 8 Water Resources

10 Financial Highlights 11 Net Position 12 Statement of Net Position 13 Statement of Activities

14 Revenues and Expenses 15 Division Summaries 15 Board of Directors 15 Senior Staff

GEORGIA ENVIRONMENTAL FINANCE AUTHORITY

3

Executive Director's Report
To the Governor, Members of the General Assembly, and Georgia Citizens:
I am pleased to present the Georgia Environmental Finance Authority's (GEFA) fiscal year (FY) 2022 annual report. Thanks to the dedicated staff, GEFA had a great year both internally and externally.
At the end of FY2022, GEFA Executive Director Kevin Clark retired after 30 years of faithful service to the state of Georgia. Kevin's experience and leadership skills left an indelible impact on GEFA and will be greatly missed.
In addition to the change in leadership, GEFA experienced a full return to the office, moved to a new office, and executed changes to our state- and federally-funded programs.
To date, GEFA has provided $5.5 billion in low-interest loans and assisted with more than 2,100 water, wastewater, solid waste, and land conservation projects for improvements to cities, counties, and infrastructure authorities across Georgia. In FY2022, there were 61 new projects and 15 increases to previously approved loans, totaling more than $290 million.
GEFA also promotes energy conservation and the use of renewable energy sources through several energy programs. GEFA receives federal State Energy Program (SEP) and Weatherization Assistance Program (WAP) funds. WAP provides free energy conservation measures to the homes of low-income households in the state of Georgia. During FY2022, the WAP program weatherized 1,367 homes positively impacting 2,664 Georgians.
Infrastructure is essential for a successful economy and prosperous communities, and GEFA is proud to partner with cities and counties all over Georgia to ensure they have the right infrastructure to serve their citizens. We know that for many communities investing in infrastructure is a challenge. GEFA will continue to help by providing financing with the goal of ensuring every Georgian has access to clean water at the lowest cost possible.
Our work would not be possible without the support of Governor Kemp, the General Assembly, and many state agencies. In this report, you will see many examples of how GEFA made important strides in FY2022 implementing our programs to benefit Georgians.
In the coming years, due to recent federal legislation, there will be even more funds coming through GEFA. We are committed to stewarding and allocating these resources to communities that need them so their leaders can focus on serving their constituents.
Sincerely,

Hunter Hill, Executive Director

ANNUAL REPORT

2022

Fiscal Year 2022 Accomplishments
GEFA increases the capacity and quality of Georgia's water supply, supports the protection and preservation of Georgia's land resources, and promotes conservation and advancement of Georgia's energy resources. GEFA continues to build on this success through its commitment to protecting Georgia's natural resources and supporting economic development.

GEORGIA ENVIRONMENTAL FINANCE AUTHORITY

5

Conserving Georgia's Energy Resources

Forty K-12 and higher education building operators received Building Operator Certification training.
The Solar Resiliency Technical Assistance Program awarded six new contracts totaling $987,315 to install more than 300 kilowatts (kW) of solar photovoltaic (PV) and backup batteries at critical facilities.
The Weatherization Assistance Program weatherized 1,367 homes positively impacting 2,664 Georgians with an estimated energy savings of 40,053 MBtu.

The Fuel Storage Tank Program provided oversight and monitoring services for 620 fuel storage tanks at 24 state agencies and departments.
GEFA helped its agency partners pass 64 fuel storage tank site compliance inspections.
GEFA completed the annual registration for 322 state-owned underground fuel storage tanks.

Improving Georgia's Water Resources
Projects financed by GEFA provided reliable water, wastewater, and solid waste services to almost 900,000 Georgians.
The Clean Water State Revolving Fund awarded 28 loans totaling $173.5 million.
The Drinking Water State Revolving Fund awarded 26 loans totaling $48.4 million.

The Georgia Fund awarded seven loans totaling $20.2 million.
GEFA provided financing to 51 communities, with $34.7 million in debt service savings.
Two communities received WaterFirst designations city of Byron and the city of Cumming.

ANNUAL REPORT

2022

Energy Resources
The Energy Resources Division promotes energy efficiency, renewable energy, and energy assurance programs to improve environmental quality and stimulate sustainable economic development.
The State Energy Program provides financial assistance and technical support for energy efficiency and renewable energy programs.
The Weatherization Assistance Program provides energy efficiency measures to low-income households.
Energy Performance Contracting allows the state to finance building improvements guaranteed to lower energy and water consumption.
The Energy Assurance Program works closely with the Georgia Emergency Management Agency, other state agencies, and private sector stakeholders to develop energy emergency planning resources and to lead exercises designed to ensure better emergency coordination.
The Fuel Storage Tank Program serves as the central management office for state agencies and institutions with fuel storage tanks.

GEORGIA ENVIRONMENTAL FINANCE AUTHORITY

7

Building Operator Certification trains facility personnel to save energy and money

The Building Operator Certification (BOC) is a nationally recognized training and certification program. The program helps facility managers, building engineers, and maintenance technicians make heating, ventilation, air conditioning, electric, and lighting systems more energy efficient.
The Georgia Environmental Finance Authority (GEFA) provides a scholarship of $1,599 for individuals to complete eight BOC level one courses at Gwinnett Technical College. The courses provide training and technical assistance for building operators and facility managers on how to operate and maintain their facilities in an efficient manner. The scholarship recipients provide utility data for one facility prior to completing the course and utility data after implementing what they have learned. This data allows GEFA to track energy savings and report on the program's effectiveness.

Due to the success of the program, level two courses have been added to the curriculum. Level two participants submit a high-level project incorporating facility utility data into an Energy Action Plan that they present to their facility supervisors. As part of the course, the students must also provide mentorship to a level one student outside of their organization.
In total, the BOC program has improved 102 state buildings (13.3 million square feet) and saved a total of more than 6.5 million kilowatt-hours.

More than 200 facility personnel from various local governments and state institutions have participated in the scholarship program. This is in addition to the 650 students from public and private entities that have paid for the training out-of-pocket.

ANNUAL REPORT

2022

Water Resources

The Water Resources Division supports the development of water, wastewater, and solid waste infrastructure projects, which help protect the environment, facilitate economic development, accommodate population growth, and safeguard public health.
GEFA partners with local governments by providing loans for water, wastewater, stormwater, and solid waste infrastructure. The Water Resources Division also assists local governments with reservoir and water supply projects.

The Georgia Fund is a state loan program for water, wastewater, and solid waste infrastructure.
The Georgia Reservoir Fund is a state loan program for reservoir and water supply infrastructure.
The Clean Water State Revolving Fund is a federal loan program for water quality and wastewater treatment infrastructure.

The Drinking Water State Revolving Fund is a federal loan program for drinking water infrastructure.
The WaterFirst Program recognizes a local government's commitment to responsible water stewardship for environmental and economic benefits.

GEORGIA ENVIRONMENTAL FINANCE AUTHORITY

9

Town restores streambank with GEFA funding

Streams provide many wonderful benefits for the community that surrounds it. A stream can provide drinking water for people, irrigation for crops, electricity through hydropower, and a natural habitat for wildlife. For something that gives so much, an unhealthy stream can also be a threat to a community.
In 2018, Hurricane Michael caused severe damage all over the state of Georgia. The town of Braselton, Georgia, received 4.75 inches of rain during Hurricane Michael, which threatened the town's water supply wells. The wells, which supply 45 percent of the town's water supply, are located on the west bank of the Mulberry River. The intense rainfall from Hurricane Michael eroded the streambank of the Mulberry River and threatened to disrupt the operation of the wells.

The town of Braselton received a $1.9 million Georgia Environmental Financial Authority (GEFA) Drinking Water State Revolving Fund (DWSRF) loan. The loan helped restore one mile of the Mulberry River streambank and replaced and upgraded three water supply wells located along its bank. The loan also financed a water transmission main and improvements to the water treatment facility. This project provided immediate protection of the town's vital infrastructure and also improved health of the Mulberry River.
Communities need to maintain the health of their streams and other bodies of water because of the tangible benefits they provide. This project is a great example of how GEFA helped the town save a vital part of its community.

Streambank erosion happens when high volumes of water flow quickly downstream. This can contribute to sediment pollution and can pose a threat to nearby infrastructure like bridges and culverts. One way to fix the erosion is through streambank and floodplain restoration.

Streambank and floodplain restoration stabilizes or alters the stream channel to slow and direct the flow of water to reduce erosion and flooding. Practices can be employed to redirect the water flow to the center of the stream where less erosion will occur. The water is slowed down and the streambanks are protected.

ANNUAL REPORT

2022

FISCAL YEAR 2022
Financial Highlights
The narrative overview and analysis of the financial activities for the fiscal year ended June 30, 2022, provides additional detail on GEFA's financial performance.

Total assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources at the close of the fiscal year by $2.7 billion (net position). Of this amount, $56 million was from governmental activities and $2.6 billion was from business-type activities.
GEFA's total net position increased by $90.2 million. The net position in governmental activities increased by $11.2 million while the net position of business-type activities increased by $79.1 million.
Total governmental revenues increased by $6.6 million from 2021. The increase in revenue is mostly attributable to an increase in operating grants and contributions due to additional bond funds received for state match for federal loan programs.

Charges for services within business-type activities increased by $10.2 million. The increase is primarily due to a return to a full year's interest revenue billing and collection. In the prior year, there was a six-month forbearance offered and accepted by many borrowers that significantly decreased revenues in each of GEFA's loan programs.
Operating grants and contributions within businesstype activities increased by $6.6 million. This increase is mostly due to increased receipts for the Georgia Outdoor Stewardship Program.

GEORGIA ENVIRONMENTAL FINANCE AUTHORITY

11

FINANCIAL HIGHLIGHTS
FY2022 Net Position

PRIMARY GOVERNMENT

GOVERNMENTAL ACTIVITIES

2022

2021

BUSINESS-TYPE ACTIVITIES

2022

2021

Current and other assets Capital assets Total assets Deferred outflows of resources Long-term liabilities outstanding Other liabilities Total liabilities Deferred inflows of resources Net position: Investment in capital assets Restricted Unrestricted
Total net position

$ 63,437,103 1,617,478
65,054,581 1,675,859 3,217,685 3,780,580 6,998,265 3,548,984
1,617,478 46,476,561
8,089,152 $ 56,183,191

53,660,958 70,760
53,731,718 946,508
5,490,730 2,857,929 8,348,659 1,295,082

2,631,421,392 --
2,631,421,392 -- --
2,285,295 2,285,295
--

2,552,647,568 --
2,552,647,568 -- --
2,563,950 2,563,950
--

70,760 38,048,328
6,915,397 45,034,485

-- 2,033,027,210
596,108,887 2,629,136,097

-- 1,956,581,173 593,502,445 2,550,083,618

Copies of the complete audited financial statements are available at gefa.georgia.gov.

TOTAL 2022

2021

2,694,858,495 1,617,478
2,696,475,973 1,675,859 3,217,685 6,065,875 9,283,560 3,548,984

2,606,308,526 70,760
2,606,379,286 946,508
5,490,730 5,421,879 10,912,609 1,295,082

1,617,478 2,079,503,771
604,198,039 2,685,319,288

70,760 1,994,629,501
600,417,842 2,595,118,103

INCREASE (DECREASE)
%
3.4% 2,185.9%
3.5% 77.1% (41.4%) 11.9% (14.9%) 174%
2,185.9% 4.3% 0.6% 3.5%

ANNUAL REPORT

2022

FINANCIAL HIGHLIGHTS
FY2022 Statement of Net Position

ASSETS Cash Investments Due from other governments Internal balances Accrued interest receivable Loans receivable Other Assets Net OPEB asset Capital assets, net of accumulated depreciation
Total assets DEFERRED OUTFLOWS OF RESOURCES Related to other postemployment benefits
Related to pensions Total deferred outflows of resources
LIABILITIES Accounts payable and accrued liabilities Accrued payroll Due to other governments Long-term liabilities: Compensated absences, current Compensated absences, noncurrent Net OPEB liability Net pension liability
Total liabilities
DEFERRED INFLOWS OF RESOURCES Related to other postemployment benefits
Related to pensions Total deferred inflows of resources
NET POSITION Investment in capital assets Restricted for: Grant programs Loan programs Unrestricted
Total net position

GOVERNMENTAL ACTIVITIES
$ 1,649,518 52,674,841 6,272,159 2,075,998 -- -- 18,834 745,753 1,617,478 65,054,581

PRIMARY GOVERNMENT
BUSINESS-TYPE ACTIVITIES
12,383,470 1,032,298,117
1,643,473 (2,075,998) 4,985,055 1,582,187,275
-- -- -- 2,631,421,392

210,189

--

1,465,670

--

1,675,859

--

3,721,421 30,864 28,295
148,675 446,023 217,331 2,405,656 6,998,265

2,282,221 --
3,074
-- -- -- -- 2,285,295

1,307,213

--

2,241,771

--

3,548,984

--

1,617,478
3,165,641 43,310,920
8,089,152 $ 56,183,191

--
-- 2,033,027,210
596,108,887 2,629,136,097

Copies of the complete audited information are available at gefa.georgia.gov.

TOTAL
14,032,988 1,084,972,958
7,915,632 --
4,985,055 1,582,187,275
18,834 745,753 1,617,478 2,696,475,973

COMPONENT UNIT
GA. ENVIRON. LOAN ACQ. CORP
305,174 65,557,370
-- -- 63,931 17,064,664 -- -- -- 82,991,139

210,189

--

1,465,670

--

1,675,859

--

6,003,642 30,864 31,369
148,675 446,023 217,331 2,405,656 9,283,560

9,935 -- 30
-- -- -- -- 9,965

1,307,213

--

2,241,771

--

3,548,984

--

1,617,478
3,165,641 2,076,338,130
604,198,039 2,685,319,288

--
-- -- 82,981,174 82,981,174

GEORGIA ENVIRONMENTAL FINANCE AUTHORITY

13

FINANCIAL HIGHLIGHTS
FY2022 Statement of Activities

PROGRAM REVENUES

NET (EXPENSE) REVENUE AND CHANGES IN NET POSITION

FUNCTIONS/PROGRAMS: GOVERNMENTAL ACTIVITIES: General government Water and wastewater Energy and environment
Total governmental activities

EXPENSES

CHARGES FOR SERVICES

OPERATING GRANTS AND CONTRIBUTIONS

CAPITAL GRANTS AND CONTRIBUTIONS

GOVERNMENT ACTIVITIES

BUSINESS-TYPE ACTIVITIES

$ 6,026,740

-- 15,384,170

--

9,357,430

--

12,610,052

2,528,981

9,886,280

--

(194,791)

--

10,244,293

--

10,182,185

--

(62,108)

--

28,881,085

2,528,981 35,452,635

--

9,100,531

--

TOTAL

COMPONENT UNIT

9,357,430 (194,791) (62,108) 9,100,531

BUSINESS-TYPE ACTIVITIES: Water and wastewater Storage tank maintenance Outdoor stewardship and land conservation General and administrative
Total business-type activities Total primary government

12,365,506 860,519
9,788,819

-- 1,059,075
--

12,365,506 2,259
20,638,011

321,506 23,336,350 $ 52,217,435

30,050,132 31,109,207 33,638,188

40,167,268 73,173,044 108,625,679

--

--

--

--

--

--

200,815

200,815

--

--

10,849,192

10,849,192

--

--

69,895,894

69,895,894

--

--

80,945,901

80,945,901

--

9,100,531

80,945,901

90,046,432

COMPONENT UNIT:

Georgia Environmental Loan

$

21,112

748,951

225,990

--

Acquisition Corporation

Total Component Units

$

21,112

748,951

225,990

--

953,829

GENERAL REVENUES: Unrestricted investment earnings Miscellaneous Transfers Total general revenues and transfers Change in net position Net position July 1 Net position June 30

$ 153,820 660
1,893,695 2,048,175 $ 11,148,706 45,034,485 $ 56,183,191

-- 273 (1,893,695) (1,893,422) 79,052,479 2,550,083,618 2,629,136,097

153,820 933 --
154,753 90,201,185 2,595,118,103 2,685,319,288

-- -- -- 953,829 953,829 82,027,345 82,981,174

Copies of the complete audited information are available at gefa.georgia.gov.

ANNUAL REPORT

2022

FINANCIAL HIGHLIGHTS
2022 Revenues and Expenses

24% 76%

Fiscal Year 2022 Revenues
Charges for Services and Other Revenue* Investment Earnings, Unrestricted Operating Grants and Contributions Total Revenues

$33,638,188 $154,753
$108,625,679 $142,418,620

24% 0% 76%
100%

2%

12%

19%

19% 48%

Fiscal Year 2022 Expenses
General Government Water and Wastewater Outdoor Stewardship and Land Conservation Energy and Environment Storage Tank Maintenance General and Administrative Total Expenses
*Includes restricted investment earnings

$6,026,740

12%

$24,975,558

48%

$9,788,819

19%

$10,244,293 $860,519 $321,506
$52,217,435

19% 2% 0% 100%

GEORGIA ENVIRONMENTAL FINANCE AUTHORITY

15

ADMINISTRATION

HUMAN RESOURCES

LEGAL SERVICES

The Administration Division provides administrative support to staff, customers, and the board of directors; oversees office operations; and maintains the file management system for GEFA.

The Human Resources Division supports GEFA's workforce by developing, maintaining, and communicating office policies, employee benefits and compensation, and training and awards programs.

The Legal Services Division functions as legal advisor to GEFA's business and personnel matters, including contracts, agreements, environmental and job safety standards, litigation, open records requests, and tax code requirements.

FINANCIAL SERVICES
The Financial Services Division provides financial underwriting and loan servicing for Georgia communities. The division also ensures compliance with state and federal accounting policies by preparing and submitting financial reports, monitoring division accounts, and managing GEFA's budget.

INFORMATION TECHNOLOGY
The Information Technology Division develops GEFA's internal and external technical architecture, facilitates secure electronic access to information and services, and protects information systems and data.

PUBLIC AFFAIRS
The Public Affairs Division educates internal and external stakeholders about GEFA's infrastructure and financing programs, and state energy, land, and water conservation initiatives and policies.

BOARD OF DIRECTORS

Commissioner Scott Orenstein Chairman Lowndes County
Mayor Mike Young Vice Chairman City of McRae-Helena
Greg Griffin Secretary State Auditor
Mayor Jimmy Andrews City of Sandersville
Commissioner Eugene Cason Dooly County
Councilmember Christopher Hightower City of Barnesville

Commissioner Christopher Nunn Georgia Department of Community Affairs Chairman Ted Rumley Dade County Board of Commissioners Rick Story At-Large Member Travis Turner At-Large Member Commissioner Pat Wilson Georgia Department of Economic Development
*As of June 2022

SENIOR STAFF
Hunter Hill Executive Director
Kristofor Anderson Director of Energy Resources
Tammi Fuller Director of Legal Services
David Gipson Director of Water Resources

Jammie Harden Director of Financial Services
Shane Hix Director of Public Affairs and Information Technology
Glendale Jones Director of Human Resources
Susan Lucki Director of Administration

GEORGIA ENVIRONMENTAL FINANCE AUTHORITY
Annual Report
2022
GEFA.GEORGIA.GOV O: 404-584-1000 | F: 404-584-1069 47 Trinity Ave SW, 2F0if1t9hAFNloNoUrA, AL tRlaEPnOtaR,TGA|3013634