State of Georgia Clean Water State Revolving Fund Program 2009 annual report

STATE OF GEORGIA CLEAN WATER STATE REVOLVING LOAN FUND PROGRAM
2009 ANNUAL REPORT
Prepared by the GEORGIA ENVIRONMENTAL FACILITIES AUTHORITY
For the U.S. ENVIRONMENTAL PROTECTION AGENCY, REGION IV
October 30, 2009
PLEASE NOTE that this report does not constitute nor is it suitable for use as an official financial statement. This report is not prepared by an independent auditor or accountant, and is provided for informational purposes only.

CLEAN WATER SRF ANNUAL REPORT TABLE OF CONTENTS FY 2009
INTRODUCTION ........................................................................................... 1
EXECUTIVE SUMMARY .............................................................................. 1
MEETING IUP GOALS AND OBJECTIVES ................................................... 2
PROJECT PERORMANCE MEASURES ......................................................... 3
CLEAN WATER STATE REVOLVING FUND LOANS .................................. 3
BRYAN COUNTY (CWSRF 06-005)............................................................................................................................ 3 COBB COUNTY (CWSRF 07-001) .............................................................................................................................. 4 GWINNETT COUNTY (CWSRF 04-005) ...................................................................................................................... 4 HALL COUNTY (CWSRF 06-006)............................................................................................................................... 4 HENRY COUNTY WATER AND SEWERAGE AUTHORITY (CWSRF 08-001).................................................................. 5 LAKE LANIER ISLANDS DEVELOPMENT AUTHORITY (CWSRF 08-002) ...................................................................... 5
LAND CONSERVATION PROGRAM LOANS ............................................... 5
HARRIS COUNTY (LC2006016).................................................................................................................................. 6 DECATUR COUNTY (LC2008005) .............................................................................................................................. 6 VIRGINIA HIGHLAND CIVIC ASSOCIATION (LC2008019) ............................................................................................ 6
PROGRAM ADMINISTRATION (4%) ............................................................ 7
CWSRF LOAN DISBURSEMENTS ................................................................ 8
CWSRF STATE MATCH ................................................................................ 8
CWSRF LOAN REPAYMENT ........................................................................ 8
ASSURANCES AND SPECIFIC PROPOSALS ................................................ 9

LIST OF ATTACHMENTS
ATTACHMENT 1: SOURCES OF FUNDS BY QUARTER ................................................................................................................ 10 ATTACHMENT 2: CWSRF REPAYMENT ACCOUNTS................................................................................................................. 10 ATTACHMENT 3: COMMUNITIES RECEIVING CWSRF FINANCIAL ASSISTANCE ........................................................................ 11 ATTACHMENT 4: BINDING COMMITMENTS BY CATEGORY, POPULATION & DOLLAR VALUE ................................................... 12 ATTACHMENT 5: PERFORMANCE RESULTS OF CWSRF PROJECTS FUNDED ............................................................................. 13 ATTACHMENT 6: ADMINISTRATIVE EXPENSES BY CATEGORY ................................................................................................. 14 ATTACHMENT 7: DBE UTILIZATION ........................................................................................................................................ 15 ATTACHMENT 8: DISBURSEMENT OF CWSRF FUNDS BY QUARTER ........................................................................................ 16 ATTACHMENT 9: COMPARISON OF PROJECTED VERSUS ACTUAL DISBURSEMENTS.................................................................. 18 ATTACHMENT 10: PROJECTS INITIATING OPERATION .............................................................................................................. 19

STATE OF GEORGIA CLEAN WATER STATE REVOLVING LOAN FUND
FY 2009 ANNUAL REPORT
INTRODUCTION
The Clean Water State Revolving Fund program provides assistance to wastewater, nonpoint source, and estuary projects for the improvement of water quality in Georgia as aligned with the objectives of the federal Clean Water Act of 1972, as amended. A broad range of water quality and wastewater treatment projects are covered by this program such as projects for the construction or expansion of wastewater treatment facilities and installation of sewer lines and sewer rehabilitation. As required by Chapter 40 of the Code of Federal Register, Part 31.3165, Subpart K, Section 606(d), and Chapter 6 of the Clean Water State Revolving Fund (CWSRF) Management Manual of December 1988, the Georgia Environmental Facilities Authority (GEFA) submits this Annual Report for the Fiscal Year ending June 30, 2009. This report provides detailed information concerning the management and fiscal integrity of this program along with any changes to the program, or updates to the program's goals and objectives in relation to the 2008 Intended Use Plan (IUP) submitted in March 2008 and awarded June 2008.
The Georgia Environmental Facilities Authority (GEFA) was created by the Georgia General Assembly in 1986 as the successor agency to the Georgia Development Authority Environmental Facilities Program. GEFA serves as the central State agency for assisting local governments in financing the construction, extension, rehabilitation and replacement and securitization of public works facilities. The Governor of Georgia appoints eight members to the GEFA Board of Directors and three ex-officio members are designated by the Authority's enabling legislation. Through an interagency agreement, the Georgia Environmental Protection Division (EPD) provides certain construction management and professional services for the CWSRF Program. These services include: project reviews and approvals; planning; project development; information tracking; updating files; information gathering and development of the National Needs Survey; project ranking; issuing Notices of No Significant Impacts (NONSI); assistance with the completion of the CWSRF "one-pager;" construction management; Disadvantaged Business Enterprise requirements; project inspections; and assistance with the National Information Management System (NIMS).
EXECUTIVE SUMMARY
In February of 2009 the U.S. Congress passed the American Recovery and Reinvestment Act of 2009 (ARRA). In March of 2009, GEFA submitted its Clean Water ARRA Grant Applications to the U.S. Environmental Protection Agency for the SRF ARRA Grant amounts allocated to the states. On June 8, 2009, the State of Georgia was awarded the Clean Water ARRA grant amount of $66,261,000 with $65,995,956 allocated to projects and $265,044 allocated for administrative expenses. While GEFA applied for federal FY 2009 capitalization grants during this reporting period, it did not receive funding in this timeframe. Funds received to date by Georgia's CWSRF Program from the EPA, including the ARRA award, total $579,219,886. Georgia's required state match to date totals $115,843,977 for a grand total of $695,063,863.

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Attachment 1 displays total sources of funds by quarter during FY 2009 such as Federal grant funds, state match contributions, repayments from direct Federal loans, repayments from state match loans, Land Conservation repayments and interest earnings generated from these accounts. Attachment 1 also shows the 2% closing fees collected by quarter identified as Program Income and Non-Program Income. Georgia reports the collection of Program Income and Non-Program Income separately in accordance with the EPA Fee Guidance released in October 2005. Attachment 2 displays the balances within these accounts as of June 30, 2009.
The CWSRF Program executed nine new contracts which included eight new loans and one loan increase of $375,000 for a total of $120,430,500 during FY 2009. This value far exceeds the 120% binding commitment requirement of section 35.3135(c),(d). Attachment 3 provides detail on each project funded including the project number, permit number, zip code, assistance amount, binding commitment date, construction start date, projected initiation of operation date, community population and loan terms. Attachment 4 displays information about these nine projects (listed in Appendix 3) in the format of the National Information Management System (NIMS). These nine contracts included six 212 projects and three 319 projects.
MEETING IUP GOALS AND OBJECTIVES
The first goal in the 2008 Intended Use Plan was to improve the pace of the CWRSF Program in comparison to the national average. Georgia's Clean Water SRF has implemented new processes to promote greater levels of assistance including executing many "phased-type" contracts that allow funds to flow in and out of the program at an increased rate. Three of the six 212 CWSRF projects were phased projects, which amounted to about 70% in phased funds. Georgia's CWSRF program currently has a 139 % rate for the pace indicator in the FY2008 NIMS Database for "Executed Loans as a % of Funds Available" as well as an 82% rate for "Disbursements as a % of Executed Loans."
The second goal listed in the 2008 Intended Use Plan was to foster a better relationship with the 319 Grants Program managed by EPD in an effort to fund a greater number of Non-Point Source (NPS) projects. Over the last year, GEFA has closely collaborated with the Georgia 319 Grants Program staff. The Manager of the Georgia 319 Grants Program served as a technical advisor for the development of GEFA's Green Project Reserve Prioritization Scoring System and participated in the review of Green Project Reserve projects. This collaboration provided opportunity to better align the CWSRF with Georgia's Nonpoint Source Management Plan.
The final goal of the 2008 Intended Use Plan was to generate non-program income via the CWSRF repayment account for use in the first year of the statewide water management plan. Clean Water NonProgram Income provided key financial support for implementing the Georgia Comprehensive Statewide Water Management Plan. This multi-year effort will provide Georgia with its first statewide assessment of surface water and groundwater resources (supply and assimilative capacity) and a region-by-region roadmap for how Georgia will manage water supply and water quality into the future.

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PROJECT PERORMANCE MEASURES
During FY09 Georgia continued collecting information on project benefits via a state-specific Project Performance Worksheet which tracks project results. Some of the results of those projects funded in FY 2009 are reported in Attachment 5. Projects funded with CWSRF funds in FY 2009 will add 314,133 new customers to municipal sewer systems, construct 120,215 linear feet of sewer lines, and eliminate 100 septic tanks from service.
Georgia's Land Conservation Program uses CWSRF funds to purchase land for conservation purposes. In FY 2009 the CWSRF program funded three projects which helped conserve over 5,000 acres of ecologically important land across the state. These acres will be permanently protected from development thus helping to preserve riparian areas, river basins and other important water quality resources.
Georgia has input project performance data for all the projects funded in FY 2009 into the Clean Water Benefits System, maintained by the EPA.

CLEAN WATER STATE REVOLVING FUND LOANS

Descriptions of the projects that received CWSRF funding within FY 2009 appear below. Each project funded was either on the Comprehensive List or Fundable List of Anticipated Loan Recipients. If the project was not the highest priority project at the time, it bypassed those higher priority projects if the lower priority project has received EPD approval signifying that the project is ready to proceed, along with meeting GEFA debt service requirements. All commitments were made to qualified local governments or water and sewerage authorities according to the requirements of the Georgia Department of Community Affairs (DCA) and all possess a verified Service Delivery Strategy approved by DCA. Additionally, all loan recipients have the technical, managerial, and financial capability to operate a sewer system. Each project was also reviewed in accordance with the EPA-approved State Environmental Review Process (SERP) and was issued a Notice of No Significant Impact (NONSI) or Categorical Exclusion (CE). All CWSRF projects complete a 4700-4 Certification Form and subsequently had that form approved by EPA. A description of each project funded is given below.
Bryan County (CWSRF 06-005) Bryan County signed a $375,000 increase to an existing contract on July 16, 2008, increasing the total commitment of this project to $2,000,000. The project includes construction of a new 0.2 MGD wastewater treatment plant called the Genesis Point Sewer Facility. This plant will be expandable to 0.5 MGD. This treatment plant will service a new development on the Genesis Point land and consist of an aerated lagoon system with spray irrigation of effluent at a designated wooded site. Once the facility reaches 80% of capacity, the plant will be upgraded to a reuse facility with an ultimate capacity of 4.0 MGD. The project will allow Southeast Bryan County to be developed with a centralized treatment facility rather than with individual septic tanks, thus maintaining water quality standards in the Ogeechee River, the Bear River and the Medway River and their tributaries which could be impacted by malfunctioning septic tanks. Based on a financial review, Bryan County was eligible for the additional $375,000 loan at 3% interest. Bryan County will be charged an additional 2% closing fee of $7,500, bringing the total closing fee to $40,000.

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As of the end of FY2009, Bryan County has drawn $1,908,962.41 (95%) of the contract amount.
Cobb County (CWSRF 07-001) On December 19, 2008, Cobb County signed a contract for $35,000,000 representing the second of a multi-phased project to construct a 30,000 foot long, deep rock tunnel with a 27-foot excavated diameter, several connecting tunnels 6-10 feet in diameter ranging from 50 to 3,200 feet in length, and a 130 MGD lift station at the South Cobb Water Reclamation Facility. The primary environmental benefit of the project is that by providing additional wastewater transportation capacity for southern Cobb County and portions of Paulding County, it will eliminate two pump stations, Sweetwater Creek Pump Station and Nickajack Creek Pump Station, and it will protect the water quality of the Chattahoochee River and Sweetwater Creek by eliminating sanitary sewer overflows. The first phase of the project received a $35,000,000 loan from the CWSRF program on May 12, 2008. The total projected cost of this project is approximately $305,000,000. Based on a financial review, Cobb County was eligible for a Phase II loan at 3% interest. Cobb County will be charged a 2 % closing fee of $700,000. As of the end of FY2009, Cobb County has drawn $35,000,000 (100%) of the contract amount for Phase II.
Gwinnett County (CWSRF 04-005) On September 30, 2008, Gwinnett County signed a contract for $23,000,000 representing the second of a multi-phased project to construct a deep tunnel to store and convey wastewater from the Jacks Creek, No Business Creek, Big Haynes Creek, and Brushy Fork Creek service areas to the site of the future No Business Creek Regional Pump Station. This pump station will then convey the wastewater to advanced treatment facilities located elsewhere in the County. Currently, the Jacks Creek and No Business Creek water pollution control plants (WPCP) provide wastewater service to much of southern Gwinnett County, but are nearly at the end of their useful life. Once this project is completed, these two WPCPs will be decommissioned and their wastewater flows conveyed to the County's newer, more advanced treatment facilities. The primary environmental effect of the project will be improved water quality, more efficient/economical treatment of wastewater, and potential increase in reserved greenspace at the former WPCP sites. The first phase of the project received a $22,000,000 loan from the CWSRF program that was executed on September 13, 2006. The total projected cost of the project is $55,000,000 with the balance of $10,000,000 provided in a Phase 3 loan from the CWSRF. Based on a financial review, Gwinnett County was eligible for the Phase II loan at 3% interest. Gwinnett County will be charged a 2% closing fee of $460,000. At the end of FY2009 Gwinnett County has drawn $13,051,715.50 (57%) of the contract amount for Phase II.
Hall County (CWSRF 06-006) On November 24, 2008, Hall County signed a contract for $21,200,000 representing the second of a multi-phased project to construct facilities needed to provide wastewater collection service to the Mulberry Creek Sewerage Area. The project runs along State Route 21 and State Route 53 then crosses Interstate 985 to State Route 13 to the Flat Creek WPCP. The facilities consist of gravity sewers, two pump stations, and force main in addition to other appurtenance that are necessary to complete the work. The total projected cost of this project is approximately $31,200,000 with Phase I previously financed by GEFA for $10,000,000. The project is necessary to meet the immediate needs of residential and commercial growth in the service area by serving the South Hall County and Municipality Partnership Service District with sewer collection system. The primary environmental impact of the project is that it will eliminate the installation of septic tanks in the

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service area. Based on a financial review, Hall County was eligible for the Phase II loan at 3% interest. Hall County will be charged a 2% closing fee of $424,000. As of the end of FY2009, Hall County has drawn $10,955,653.59 (52%) of the contract amount for Phase II.
Henry County Water and Sewerage Authority (CWSRF 08-001) The Henry County Water and Sewerage Authority (WSA) signed a contract for $20,000,000 on July 22, 2008 to expand the Walnut Creek Water Reclamation Facility (WRF) from 4 MGD to 8 MGD. The facility serves the Walnut Creek basin and a portion of the Big Cotton/Little Cotton Indian Creek basin in eastern Henry County. The project includes additional construction to the WRF such as an additional storage pond and a Land Application System. This expansion is vital for the protection of Walnut Creek and Big Cotton Indian Creek, and all creeks in all 19 sub-basins. The project will provide additional wastewater treatment capacity to serve currently un-sewered areas. It will prevent future developments from installing individual septic tanks. The total projected cost of this project is approximately $41,340,000 with the balance of $21,340,000 to be provided by Phase II funding from GEFA. Based on a financial review, Henry County WSA was eligible for a $20,000,000 loan at 3% interest. Henry County WSA will be charged a 2% closing fee of $400,000. At the end of FY2009, Henry County WSA has drawn $9,361,653.16 (47%) of the contract amount.
Lake Lanier Islands Development Authority (CWSRF 08-002) The Lake Lanier Islands Development Authority signed a contract for $15,000,000 on September 30, 2008 for the construction of a new 350,000-gallon per day wastewater treatment plant for Lake Lanier Islands. A new advanced-treatment wastewater plant is needed to provide the phosphorous limits required by the facility's existing NPDES permit and to provide back-up power for the facility, and back-up power or remote alarm indicator at the sewage pump stations on the islands. The project will serve Lake Lanier Islands, Hall County, Georgia, a resort and recreational area used by as many as 700,000 people a year. The primary environmental effect of the project is returning water resources to Lake Lanier, and providing a more reliable sewage collection and treatment system. The new plant will produce reuse-quality water for irrigation on the islands to reduce the potable water demand, which will benefit both water quality and water quantity in the area of the project. The total projected cost of this project is $15,000,000. Based on a financial review, Lake Lanier Islands Development Authority was eligible for a $15,000,000 loan at 3.75% interest for 15 years. Lake Lanier Islands Development Authority will be charges a 2% closing fee of $300,000. At the end of FY2009, Lake Lanier Islands Development Authority has drawn $7,353,422.94 (49%) of the contract amount.
LAND CONSERVATION PROGRAM LOANS
Listed below is a narrative describing the projects that received CWSRF funding within FY 2009 under Georgia's Land Conservation Program. This program provides low interest loans to local governments for the purchase of land for the purpose of conservation. All projects using CWSRF funds are certified as providing a water quality benefit in accordance with the EPA-approved Non-Point Source Management Plan.

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Harris County (LC2006016) Harris County executed a $2,000,000 loan contract on December 30, 2008, to acquire 150 acres in fee-title and a conservation easement on 2,131 additional acres. The combined fee-title and easement interest in the parcel was appraised at $7,600,000. Additional funding sources included the Georgia Land Conservation Trust Fund and the landowner, who provided a discounted sale. GEFA's financial review of Harris County determined that the County was eligible for a $2,000,000 loan at 3% interest over 18 years with a 2% closing fee of $40,000. Harris County has drawn all of the $2,000,000 as of the end of FY 2009. Harris County has transferred stewardship of the conservation easement to Georgia Forestry Commission (GFC). GFC is assisting the landowner implement a forest stewardship plan that will permanently protect the property's rare montane longleaf ecosystem. The stewardship plan also aims to prevent erosion on the tract's steeply sloping mountainsides, thereby preventing sedimentation and maintaining high water quality within the numerous streams that flow from the property.
Decatur County (LC2008005) Decatur County executed a $3,000,000 loan contract on July 2, 2008, to help fund a purchase of 2,840 acres by the Georgia Department of Natural Resources. This parcel is part of a larger acquisition that includes 8,430 acres and was appraised, and eventually purchased, at $45,000,000. Additional funding was provided by the U.S. Forest Service, U.S. Fish and Wildlife Service, the Georgia Land Conservation Trust Fund, the Doris Duke Foundation, the Woodruff Foundation and many other private partners. GEFA's financial review of Decatur County determined that the County was eligible for a $3,000,000 loan at 3% interest over 20 years with a 2% closing fee of $60,000. Decatur County has withdrawn all of the $3,000,000 as of the end of FY 2009. The acquired parcel will be incorporated into the new Silver Lake Wildlife Management Area. The project will permanently protect the northeastern shores of Lake Seminole on the Flint River from future development and intensive agricultural practices, thus preserving water quality and protecting the river from associated non-point sources of water pollution and sedimentation problems. This project will help maintain viable habitat for the many aquatic species-of-concern in the Flint River and Apalachicola Bay, as well as the endangered Red-cockaded Woodpeckers that inhabit the property itself.
Virginia Highland Civic Association (LC2008019) The Virginia Highland Civic Association executed a $855,500 loan contract on December 4, 2008, to acquire 0.4 acres in the City of Atlanta. The loan amount constitutes the entire appraised value and purchase price of the property. GEFA's financial review of the Virginia Highland Civic Association determined that the Association was eligible for a $855,500 loan at 3% interest over 15 years with a 2% closing fee of $17,110. The Association has drawn all of the $855,500 as of the end of FY 2009. As part of the contract documents, the Association has committed to excavate buried foundations on the tract and backfill them with porous materials to create a large stormwater recharge area, thus reducing hazardous runoff to our waterways and improving the area's water quality overall. Native vegetation, porous walkways and an artificial stream will also be constructed on-site. Due to its location in a highly-trafficked area of Atlanta, the project will be a highly-visible demonstration of passive, "green" stormwater management techniques.

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PROGRAM ADMINISTRATION (4%)
In FY 2009 GEFA spent $499,583 and EPD spent $502,000 on program administration of the CWSRF Program. Additionally, EPD spent $618,874.01 to provide administrative expenses in construction monitoring associated with the oversight task force responsibilities for the city of Atlanta's Capital Improvement Plan. Attachment 6 displays expenditures associated with program administration broken down by object category.
During FY 2009, the Construction Management Unit (CMU) of EPD processed 107 CWSRF project draw requests, performed 198 CWSRF project inspections and also coordinated the Minority Business Enterprise (MBE), Women Business Enterprise (WBE) and Equal Employment Opportunity (EEO) contract approvals. Additionally, this group performed 41 project inspections via the city of Atlanta oversight task force.
As a part of GEFA's loan agreement, all loan recipients are required to encourage the participation of small, minority and women owned businesses in all project subcontracts. The State's CWSRF Program percentage goal for Minority Business Enterprises (MBE) is 11.47% and 6.87% for Women Business Enterprises (WBE). The FY 2009 DBE participation percentage was low this year, at 4.35% and 3.82% respectively. These percentages are calculated by dividing the total funds disbursed to DBE contractors by the total funds disbursed to all contractors. A summary of the quarterly DBE participation percentages for both SRF Programs during FY 2009 is displayed in Attachment 7. There were several contributing factors for why the DBE participation percentages were low in FY 2009 as compared to past years. First, the DBE utilization reporting period changed to a semi-annual submission which meant that GEFA's established reporting periods did not align with the new reporting periods. The result is that the Annual Report only contains, at most, 75% of FY 2009's data. The remainder of the FY 2009's DBE information will be reported in the upcoming April-September report. We expect that by FY 2010, we will have a new process in place for negotiating the different reporting periods so that we can report complete and accurate information. Another problem that we encountered in FY09 was the fact that the pool of "eligible" certified DBE subcontractors was effectively reduced by EPA's new DBE rule which only allows EPA, DOT, or SBA certified subcontractors to qualify under these programs. As of 9/15/09, there were no EPAcertified DBE subcontractors available. This caused our loan recipients to seek DOT-certified subcontractors; a group that is not as accustomed to water and wastewater construction. As subcontractors continue to obtain certification throughout the year, we expect to see a larger pool of qualified candidates resurface in FY 2010. Finally, one last factor that contributed to low numbers in FY 2009 was the end of the Atlanta project. The Atlanta project was well funded and typically had about 34% overall participation by MBE and WBE subcontractors. The completion of this project has had a clear impact on these programs.

Despite FY 2009's DBE low participation percentages, there has been a tremendous effort of the part on the Environmental Protection Division (EPD) to comply with the EPA's Six Good Faith Efforts. Telephone calls and emails are regularly made to DBE subcontractors to encourage their participation in both the Clean Water and Drinking Water SRF programs. DBE's are alerted of GEFA's approved projects as soon as they appear in the transmittal log in order that subcontractors can inquire about and prepare for these projects prior to bid date. Subcontractors are additionally being urged to pursue EPA/DOT/SBA certification and EPD has made themselves available to answer questions and assist subcontractors in the

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application process. EPD also keeps an in-house bidders list of certified DBE subcontractors who have worked on previous projects to be supplied to and utilized by prime contractors that are seeking qualified DBEs. In considering whether firms could subcontract with DBEs, EPD encourages prime contractors to follow the six good faith efforts to solicit the services of minority and women-owned businesses and will withhold approval for a project if there is insufficient documentation that the efforts were met. Prime contractors are also provided with an example of an EPA approved newspaper advertisement and an example of a well-written solicitation letter in efforts to eliminate generic newspaper advertisements and poorly written letters. Prime contractors are further supplied with a link for the available DBEs on the Georgia DOT website and the Bidders list that is kept-in house, as well as names/addresses/numbers of contacts in the Small Business Administration, the Minority Business Development Agency, the Department of Commerce and other related agencies and associations throughout the State. Guidance is also provided in all related construction contracts to encourage prime contractors to divide work when feasible. These affirmative efforts made by the EPD, when juxtaposed with the aforementioned problems encountered in FY09, make it clear that the aforementioned extenuating circumstances of FY 2009 had the most drastic affect on DBE participation. We expect that changes in the new year will bring higher participation percentages for FY 2010.

CWSRF LOAN DISBURSEMENTS
The CWSRF Program disbursed funds to 22 active projects during FY 2009. Attachment 8 shows those projects which received funds by quarter in FY 2009. The CWSRF Program disbursed a total of $169,065,994 in FY 2009. Attachment 9 compares the projected disbursement schedules indicated within the 2007, 2008 and 2009 IUPs for FY 2009 against the actual disbursements made in FY 2009. The CWSRF Program actually disbursed 52% of what it projected it would disburse in FY 2009.

CWSRF STATE MATCH
During FY 2009 all projects which received direct capitalization grant dollars were funded with 80% Federal dollars and 20% state match dollars. GEFA received sufficient general obligation bond funds from the state to match the CWSRF program at 20%. Each disbursement made with Federal dollars is appropriately matched with state dollars so as to maintain the proper level of match at any given time. Attachment 1 shows the amount of state match funds provided during FY 2009 by quarter.

CWSRF LOAN REPAYMENT
Four 212 projects and three Land Conservation projects completed the construction phase and initiated operation during FY 2009 (Attachment 10). The total dollar value awarded to these seven projects equaled $65,570,259 of which $65,566,609, or virtually 100%, was disbursed. Initiating operation of a land conservation project is defined as a real estate transaction where the land is purchased by the loan recipient. The total amount of repayments credited to the CWSRF fund during FY 2009 from all sources was $46,219,266 and can be found within Attachment 1. These sources of repayment include principal and interest payments and late fee payments. To maintain the self-perpetuating nature of the CWSRF fund, all

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repayments including the principal and interest are credited to the CWSRF Program. Attachment 1 also shows that $3,172,483 in 2% closing fees for both program income and non-program income were collected during the fiscal year. Non-program income will be used to fund water quality portions of the State-wide Water Management Plan during FY 2010.
ASSURANCES AND SPECIFIC PROPOSALS
The CWSRF Program certifies to adhere to all the certifications covered in 31.3135 as well as those within Georgia's Operating Agreement with the Regional EPA office. The specific certifications are:
1. Capitalization Grant Acceptance 2. Payment Schedule 3. State Matching Funds 4. Commitment of 120 percent in One Year 5. All Funds - Timely Expenditure 6. Enforceable Requirements of the Act 7. Title II Requirements 8. Cross Cutting Issues 9. State Law and Procedures 10. State Accounting and Auditing Procedures 11. Recipient Accounting and Auditing Procedures 12. Annual Report 13. Limitations on Eligibility 14. Maintain the Fund 15. Perpetuity 16. Types of Assistance 17. Limitations of Double Benefits 18. Consistency with Planning Requirements 19. Comprehensive List of Potential Loan Recipients 20. Eligibility on Non-Federal Share of Grants Projects 21. Annual Audit 22. Annual Federal Oversight Review and Technical Assistance 23. Corrective Action 24. Transfer of Funds between SRF Program
The completed audit of the Georgia Environmental Facilities Authority is attached.

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Direct Capitalization Grant Funds State Match Funds Repayments
CWSRF Federal Repayments CWSRF State-Match Repayments CWSRF Land Conservation Repayments Fees 2% Closing fee payments (program) 2% Closing fee payments (non-program) Investment Earnings (Short & Long-term) CWSRF Federal Repayment Fund CWSRF State-Match Repayment Fund 2% Closing fee payments (program) 2% Closing fee payments (non-program)

ATTACHMENT 1 SOURCES OF FUNDS BY QUARTER CLEAN WATER STATE REVOLVING LOAN FUND

FY2009 July 1, 2008 - June 30, 2009

Qtr 1

Qtr 2

Qtr 3

Qtr 4

07/2008 - 09/2008 10/2008 - 12/2008 01/2009 - 03/2009 04/2009 - 06/2009

$8,282,955.14 2,140,831.82

$2,762,213.86 1,258,382.57

$0.00 630,691.43

$0.00 2,382,380.88

Total $11,045,169.00
6,412,286.70

8,946,066.88 740,632.80 131,143.71

9,755,957.35 744,909.62 147,800.49

10,986,837.50 806,379.35 183,609.21

12,670,497.98 903,918.33 201,513.57

42,359,359.71 3,195,840.10 664,066.98

200,400.06 748,125.01

56,000.00 659,791.63

0.00 812,666.64

224,499.99 470,999.97

480,900.05 2,691,583.25

1,198,050.64 676,532.41 193,553.06 21,051.20
$ 23,279,342.73 $

2,851,219.92 568,517.65 557,697.65 21,411.67
19,383,902.41 $

180,147.37 259,688.34 (62,253.69)
11,042.99
13,808,809.14 $

-100,780.68 139,296.44 (143,178.66)
6,360.43
16,755,508.25 $

4,128,637.25 1,644,034.84
545,818.36 59,866.29
73,227,562.53

ATTACHMENT 2 CWSRF REPAYMENT ACCOUNTS CLEAN WATER STATE REVOLVING LOAN FUND

Account
CWSRF Federal Repayment Fund CWSRF State-Match Repayment Fund CWSRF 2% Closing Fee (Non-prog. Income) CWSRF 2% Closing Fee (Program Income)
Total
*Balance as of 06/30/2009
FY 2009 CWSRF Annual Report

FY2009

July 1, 2008 - June 30, 2009

Investment

Balance*

Earnings

Expected Uses of Funds

$20,301,595.25 120,592,228.05
5,459,364.48 18,682,211.73

$4,128,637.25 Project Funding 1,644,034.84 Project Funding 59,866.29 Non-Program Income: Water Quality Related Activities 711,305.53 Program Income: CWSRF Activities

$165,035,399.51

$6,543,843.91

10

ATTACHMENT 3 COMMUNITIES RECEIVING CWSRF FINANCIAL ASSISTANCE
CLEAN WATER STATE REVOLVING LOAN FUND

Community 212 Projects
Bryan County

Project Number
CW06-005

Permit Number
GA 02-024 Genesis Pt.

FY2009 July 1, 2008 - June 30, 2009

Zip Code

CWSRF Assistance
Amount

Binding

Commitment Construction

Date

Start Date

31321 $ 375,000

7/16/2008 12/1/2007

Projected Initiate
Operation Date

Loan Interest Population Rate

Date Loan Matures

6/1/2009 23,417

3%

June-29

GA0026158 -

Cobb County

Cobb County CW07-001 South

Gwinnett County CW04-005 GA0038130

GA0021156 -

Hall County

CW06-006 Flat Creek

Henry County WSACW08-001 GA151001

Lake Lanier

Island Dev. Auth. CW08-002 GA0049115

319 Projects

Decatur County LC2008005

N/A

Harris County LC2006016

N/A

Highlands Civic

Association

LC2008019

N/A

Total

30090 35,000,000 30045 23,000,000

30503 21,200,000 30253 20,000,000

30518 15,000,000

39818 31811

3,000,000 2,000,000

30306

855,500

$120,430,500

12/19/2008 9/30/2008

6/1/2008 9/1/2006

11/24/2008 10/1/2007 7/22/2008 7/1/2008

9/30/2008 6/1/2008

7/2/2008

N/A

12/29/2008

N/A

12/4/2008

N/A

6/1/2014 607,751 4/1/2010 588,448
6/30/2010 139,277 7/1/2010 119,341
1/1/20111 139,277
N/A 55,983 N/A 23,695
N/A 416,474

3% January-29

3%

March-30

3% November-28

3%

June-30

3% December-30

3%

July-28

3% January-28

3% January-24

FY 2009 CWSRF Annual Report

11

ATTACHMENT 4 BINDING COMMITMENTS BY CATEGORY, POPULATION & DOLLAR VALUE
CLEAN WATER STATE REVOLVING LOAN FUND ASSISTANCE

FY2009 July 1, 2008 - June 30, 2009

Project Type (212) & (319)

Number of

Assistance

Agreements

Secondary Treatment (Category I)

2

Advanced Treatment (Category II)

1

Infiltration/Inflow (Category IIIA)

Sewer System Rehabilitation (Category IIIB)

New Collector Sewers (Category IVA)

1

New Interceptors (Category IVB)

2

CSO Correction (Category V)

Storm Sewers (Category VI) Recycled Water Distribution (Category X)

Agricultural Cropland (Category VII-A)

Agricultural Animals (Category VII-B)

Silviculture (Category VII-C)

Urban (Category VII-D, excludes decentralized systems) Ground Water - Unknown Source (Category VII-E)

Marinas (Category VII-F)

Resource Extraction (Category VII-G)

Brownfields (Category VII-H)

Storage Tanks (Category VII-I) Sanitary Landfills (VII-J)

Hydromodification (Category VII-K)

3

Individual/Decentralized Sewage Treatment (Cat VII-L)

Unclassified

Total

9$

Dollar Value

Assistance by Population Size

20,375,000 Less than 3,500:

15,000,000 3,500 to 9,999:

10,000 to 99,999:

1000,000 & above:

21,200,000

Total

58,000,000

5,855,500 120,430,500

Dollar

Number of New

Value ($)

Assistance

Agreements

0

0

5,375,000

3

115,055,500

6

$ 120,430,500

9

FY 2009 CWSRF Annual Report

12

ATTACHMENT 5 PERFORMANCE RESULTS OF CWSRF PROJECTS FUNDED
CLEAN WATER STATE REVOLVING LOAN FUND

FY2009 July 1, 2008 - June 30, 2009

Community Bryan County Cobb County Gwinnett County Hall County Henry County WSA Lake Lanier Island Dev. Auth. Decatur County Harris County

Project Number CW06-005 CW07-001 CW04-005 CW06-006 CW08-001 CW08-002 LC2008005 LC2006016

Number of Septic Tanks Eliminated
100
N/A N/A

Gallons of Treatment Capacity Created
130 3,850 2,000,000 4,000,000 500,000
N/A N/A

Virginia Highlands Civic Association LC2008019

N/A

N/A

100 Septic Tanks 6,503,980 Gallons

Total Eliminated

of Treatment

Linear Feet of Number of New

New Sewer Line Customers Added

Constructed

to System

4,615

650

35,000

16,000

64,600

150

13,333

300,000

N/A

N/A

N/A

N/A

N/A

N/A

120,215 LF of new sewer line

314,133 New Customers

Number of Acres
Conserved N/A N/A N/A N/A N/A N/A
2,840 2,280
0
5,120.41 Acres Conserved

FY 2009 CWSRF Annual Report

13

ATTACHMENT 6 ADMINISTRATIVE EXPENSES BY CATEGORY CLEAN WATER STATE REVOLVING LOAN FUND

FY2009 July 1, 2008 - June 30, 2009

Object Category
Personnel Fringe Benefits Travel Contractual Operating Expenses Computers Indirect Costs

Total $

4% - GEFA
186,090.11 55,868.82 2,747.25 36,912.17 56,423.55 4,268.64
157,273.30 499,583.84 $

4% - EPD

Administrative Expenses Program Income

502,000.00

618,874.01

502,000.00 $

618,874.01 $

Total Expenditures
186,090.11 55,868.82 2,747.25
1,157,786.18 56,423.55 4,268.64
157,273.30
1,620,457.85

FY 2009 CWSRF Annual Report

14

ATTACHMENT 7 DBE UTILIZATION CLEAN WATER STATE REVOLVING LOAN FUND
FY2009 July 1, 2008 - June 30, 2009

Quarter

FFY

SFY

4th Quarter (July 1 - Sept. 30, 2008)

1st Quarter (Oct. 1 - Dec. 31, 2008)

2nd Quarter (Jan. 1 - March 31, 2009)

3rd Quarter (April 1 - Jun 30, 2009)

TOTAL

PERCENTAGE GOAL

PERCENTAGE ACTUAL*

Quarterly Summaries

MBE ($)

WBE ($)

TOTAL ($)

2,342,087

1,348,617

3,690,704

2,430,999

2,488,513

4,919,512

2,432,158

2,431,579

4,863,737

141,547

182,929

324,476

$

7,346,791 $

6,451,638 $

13,798,429

13.70%

7.00%

20.70%

4.35%

3.82%

8.16%

*Percentage Actual is calculated by dividing the DBE funds disbursed by the total CWSRF funds disbursed.

FY 2009 CWSRF Annual Report

15

Project

Community

Number

CWSRF Federal Disbursements

ATHENS-CLARKE CO. CW006-004

BRYAN COUNTY

CW06-005

CALHOUN

CW02-002

COBB CO. BOC

CW07-001

COLUMBUS WATER WORKS

CW03-001

COLUMBUS WATER

WORKS

CW97-001

EFFINGHAM COUNTY CW04-007

ELLIJAY-GILMER COUNTY WSA

CW05-006

GAINESVILLE

CW01-016

GWINNETT COUNTY CW03-002NP

GWINNETT COUNTY CW04-005

HALL COUNTY

CW05-004

HALL COUNTY

CW06-006

HAMPTON

CW04-004

HENRY COUNTY WSA CW06-001

HENRY COUNTY WSA CW08-001

LAKE LANIER

CW08-002

RINCON SAVANNAH

CW05-005 CW96-011

Subtotal

ATTACHMENT 8 DISBURSEMENT OF CWSRF FUNDS BY QUARTER
CLEAN WATER STATE REVOLVING LOAN FUND

FY2009 July 1, 2008 - June 30, 2009

Qtr 1

Qtr 2

Qtr 3

Qtr 4

07/2008 - 09/2008 10/2008 - 12/2008 01/2009 - 03/2009 04/2009 - 06/2009

Total

$4,793,972.82 714,882.99
20,759,273.87 4,557.62
510,965.07 280,372.06 539,613.08 452,758.93 346,263.11 4,820,000.00 107,443.11 2,673,478.94 1,618,899.75 1,955,060.44
$39,577,541.79

$2,070,471.31
14,240,726.13 40,399.46
426,342.53
180,755.17
352,178.43 3,508,825.20 2,308,084.69 1,527,489.79 1,327,224.33 1,638,020.00
$27,620,517.04

$4,242,104.07 70,679.85 91,787.96
29,731,360.85 17,294.85
547,673.22
198,742.34
837,434.82 4,813,391.50
5,041,611.48 1,647,406.91 3,097,059.82 6,007,985.31 1,033,915.00
147,072.81
$57,525,520.79

5,268,639.15

$11,106,548.20 785,562.84 91,787.96
70,000,000.00

286,439.38

348,691.31

1,293,593.35

2,778,574.17 280,372.06

68,117.52
3,114,391.21 100,661.90
5,988,242.00
2,329,405.22 1,601,384.17
922,249.15 3,353,667.85 4,681,487.94
3,266,666.20

987,228.11 3,567,150.14 1,636,538.26 19,130,458.70
107,443.11 12,352,580.33
6,395,180.62 7,301,593.74 9,361,653.16 7,353,422.94
147,072.81 3,266,666.20

$32,274,945.04 $ 156,998,524.66

FY 2009 CWSRF Annual Report

16

ATTACHMENT 8 DISBURSEMENT OF CWSRF FUNDS BY QUARTER
CLEAN WATER STATE REVOLVING LOAN FUND
FY2009 July 1, 2008 - June 30, 2009

CWSRF Land Conservation Disbursements

DECATUR CO BOC

LC2008005

$3,000,000.00

$ 3,000,000.00

HARRIS CO. BOC

LC2006016

2,000,000.00

2,000,000.00

VIRGINIA HIGHLAND CIVIC ASSOCIATION

LC2008005

855,500.00

855,500.00

Subtotal

$ 3,000,000.00 $ 2,855,500.00 $

-$

- $ 5,855,500.00

Total Federal $42,577,541.79

$30,476,017.04

$57,525,520.79

$32,274,945.04 $162,854,024.66

CWSRF State Match Disbursements

CW State Match Disbursements

$2,140,831.82

$808,366.17 $ 1,024,907.75 $ 2,237,864.20 $ 6,211,969.94

Subtotal

$ 2,140,831.82 $

808,366.17 $ 1,024,907.75 $ 2,237,864.20 $ 6,211,969.94

Total Federal & State Match $44,718,373.61

$31,284,383.21

$58,550,428.54

$34,512,809.24 $ 169,065,994.60

FY 2009 CWSRF Annual Report

17

ATTACHMENT 9 COMPARISON OF PROJECTED VERSUS ACTUAL DISBURSEMENTS
CLEAN WATER STATE REVOLVING LOAN FUND

FY2009 July 1, 2008 - June 30, 2009

Projected Disbursements
Projected FY2009 CW Disb. from 2007 IUP Projected FY2009 CW Disb. from 2008 IUP Projected FY2009 CW Disb. from 2009 IUP
Total Projected Disbursements for FY2009

Qtr 1 07/2008 - 09/2008
$37,916,387.00 20,548,547.00
58,464,934.00

Qtr 2 10/2008 - 12/2008
$36,544,082.00 38,170,387.00
74,714,469.00

Qtr 3 01/2009 - 03/2009
$29,414,856.00 48,048,126.00
77,462,982.00

Qtr 4 04/2009 - 06/2009
$27,526,397.00 52,521,095.00 35,213,708.00
115,261,200.00

Actual FY2009 CWSRF Disbursements Percent Disbursed of Projected

$44,718,374 76%

$31,284,383 42%

$58,550,429 76%

$34,512,809 30%

Total $131,401,722.00
159,288,155.00 35,213,708.00
325,903,585.00
$169,065,995 52%

FY 2009 CWSRF Annual Report

18

ATTACHMENT 10 PROJECTS INITIATING OPERATION CLEAN WATER STATE REVOLVING LOAN FUND

FY2009 July 1, 2008 - June 30, 2009

Community 212 Projects
Gainesville Rincon Hall County Hancock County
319 Projects Decatur County Harris County

Project Number
CW01-016 CW05-005 CW05-004 CW00-004
LC2008005 LC2006016

CWSRF Assistance
Amount

Assistance Amount Used

$

53,000,000 $

53,000,000

$

2,904,759 $

2,904,759

$

3,000,000 $

3,000,000

$

810,000 $

806,350

$

3,000,000 $

3,000,000

$

2,000,000 $

2,000,000

Virginia Highlands Civic Association LC2008019

$

Total $

855,500 $ 65,570,259 $

855,500 65,566,609

Percentage Used

Binding Commitment
Date

100% 100% 100% 100%
100% 100%
100% 100%

10/29/2006 12/17/2007
6/20/1997 4/12/2004
6/24/2008 12/29/2008
12/4/2008

Initiate Operation
Date
5/1/2009 3/12/2009
8/1/2008 7/1/2008
7/2/2008 12/30/2008
12/5/2008

Loan Interest
Rate
3% 3% 3% 3%
3% 3% 3%

FY 2009 CWSRF Annual Report

19