STATE OF GEORGIA CLEAN WATER STATE REVOLVING FUND PROGRAM STATE FISCAL YEAR 2017 ANNUAL REPORT Prepared by the GEORGIA ENVIRONMENTAL FINANCE AUTHORITY For the U.S. ENVIRONMENTAL PROTECTION AGENCY, REGION IV September 30, 2017 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 STATE REVOLVING FUND ANNUAL REPORT TABLE OF CONTENTS STATE FISCAL YEAR 2017 INTRODUCTION ................................................................................................................................ 1 EXECUTIVE SUMMARY .................................................................................................................... 1 ADDITIONAL SUBSIDIZATION PROJECTS ..................................................................................... 2 CITY OF BUTLER (CW16008) ........................................................................................................................................... 2 CITY OF DAVISBORO (CW16021) ...................................................................................................................................... 2 ELLIJAY GILMER COUNTY WSA (CW16013) ....................................................................................................................... 2 FORT VALLEY UTILITIES COMMISSION (CW16025) ............................................................................................................... 2 JONES COUNTY (CW16019) ............................................................................................................................................ 2 DOWNTOWN DEVELOPMENT AUTHORITY OF MADISON (CW15012) .......................................................................................... 3 GREEN PROJECTS........................................................................................................................... 3 CITY OF BROOKHAVEN (LC2015005)................................................................................................................................. 3 CITY OF JESUP (CW16029) ............................................................................................................................................. 3 LEE COUNTY UTILITIES AUTHORITY (CW16023) .................................................................................................................. 3 CITY OF WOODBINE (CW16003)....................................................................................................................................... 3 BASE CWSRF PROJECTS................................................................................................................ 3 TOWN OF CAMAK (CW16017) .......................................................................................................................................... 3 CLAYTON COUNTY WATER AUTHORITY (CW16037) ............................................................................................................. 3 CITY OF GROVETOWN (CW15015) .................................................................................................................................... 4 CITY OF HINESVILLE (CW16004) ...................................................................................................................................... 4 CITY OF RINCON (CW16001) ........................................................................................................................................... 4 CITY OF ST. MARYS (CW15024)....................................................................................................................................... 4 CITY OF THOMASVILLE (CW16040) ................................................................................................................................... 4 CITY OF TYBEE ISLAND (CW16043)................................................................................................................................... 4 MEETING IUP GOALS AND OBJECTIVES....................................................................................... 4 PROGRAM ADMINISTRATION (4 PERCENT) ................................................................................. 6 CWSRF NON-PROGRAM INCOME .................................................................................................. 6 DBE PARTICIPATION........................................................................................................................ 6 CWSRF LOAN DISBURSEMENTS.................................................................................................... 7 CWSRF STATE MATCH .................................................................................................................... 7 CWSRF LOAN REPAYMENT ............................................................................................................ 7 WRRDA IMPLEMENTATION ............................................................................................................. 8 ASSURANCES AND SPECIFIC PROPOSALS ................................................................................. 8 LIST OF ATTACHMENTS ATTACHMENT 1: SOURCES AND USES 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: ADMINISTRATIVE EXPENSES BY CATEGORY ................................................................................................................ 13 ATTACHMENT 6: DBE UTILIZATION ..................................................................................................................................................... 14 ATTACHMENT 7: DISBURSEMENT OF CWSRF FUNDS BY QUARTER ...................................................................................................... 15 ATTACHMENT 8: COMPARISON OF PROJECTED VERSUS ACTUAL DISBURSEMENTS ................................................................................ 16 ATTACHMENT 9: PROJECTS INITIATING OPERATION ............................................................................................................................. 17 STATE OF GEORGIA CLEAN WATER STATE REVOLVING FUND PROGRAM STATE FISCAL YEAR 2017 ANNUAL REPORT INTRODUCTION The Clean Water State Revolving Fund (CWSRF) provides assistance to wastewater and nonpoint source projects that improve water quality in Georgia as aligned with the objectives of the Clean Water Act of 1972, as amended. A range of water quality and wastewater treatment projects are covered by the program, including: Stormwater and flood control projects, Projects for the construction or expansion of wastewater treatment facilities and installation of sewer lines and sewer rehabilitation, and Projects that reduce energy costs, such as solar, wind, and biogas projects. As required by the Code of Federal Regulations, Title 40, Part 35, Subpart K, Section 35.3165; Section 606, Paragraph (d) of the Clean Water Act; and Chapter 6 of the CWSRF Management Manual of December 1988, the Georgia Environmental Finance Authority (GEFA) submits this annual report for the state fiscal year ending June 30, 2017. This report provides detailed information concerning the management and fiscal integrity of this program, changes to the program, and updates to the program's goals and objectives in relation to the 2016 Intended Use Plan (IUP). 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, 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 GEFA's enabling legislation. The Georgia Environmental Protection Division (EPD) provides certain professional services for the CWSRF. These services include: project reviews and approvals; planning; project development; information tracking; information gathering and assistance with the National Needs Survey; issuing Notices of No Significant Impacts (NONSI) and Categorical Exclusions (CE); and assistance with the National Information Management System (NIMS) and certain sections of the Clean Water Benefits reporting database. EXECUTIVE SUMMARY In April 2016, GEFA submitted an IUP and application for the 2016 CWSRF grant. The 2016 grant was awarded on August 24, 2016, for $22,591,000. Additionally, in June 2017, the 2017 grant application and IUP was submitted to the U.S. Environmental Protection Agency (EPA) for $22,417,000 and awarded on August 18, 2017. Funds awarded by EPA to Georgia's CWSRF as of June 30, 2017 total $768,377,061 which includes $24,672,170 net transfers from the Drinking Water State Revolving Fund (DWSRF). Georgia's required state match totals $136,808,062. Attachment 1 displays the total sources of funds by quarter during state Fiscal Year 2017 (FY2017) including federal grant funds, state match contributions, repayments from direct federal loans, and interest earnings generated from these accounts. Attachment 1 also shows the 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 1 also displays the uses of funds State FY2017 CWSRF Annual Report 1 by quarter. Attachment 2 displays the balances within these accounts as of June 30, 2017. The CWSRF executed 18 new loans along with one increase to an existing loan in state FY2017 for a total of $60,596,370. This total assistance includes $3,636,500 in eligible principal forgiveness and $8,839,250 in loans that met the qualifications for the Green Project Reserve. Attachment 3 provides a list of loans executed in state FY2017. Attachment 4 displays information for these 18 projects in the NIMS format. Lastly, GEFA and EPD have collectively entered all necessary information into the Clean Water Benefits Reporting database for all projects funded through state FY2017. All commitments were made to qualified local governments or water and sewer authorities according to the requirements of the Georgia Department of Community Affairs (DCA). All loans also met the requirements of HB 489, which indicates that each loan possesses a verified service delivery strategy. Additionally, all loan recipients have the technical, managerial, and financial capability to operate a sewer system. Each project was reviewed in accordance with the EPA approved State Environmental Review Process (SERP) and was issued a NONSI or CE. ADDITIONAL SUBSIDIZATION PROJECTS City of Butler (CW16008) On July 1, 2016, Butler signed a $2,010,000 assistance agreement, including $375,000 in principal forgiveness. The project includes rehabilitation and improvements to the WWTP and pumping stations. As of the end of state FY2017, Butler had drawn $85,085.00 from this commitment. City of Davisboro (CW16021) On March 13, 2017, Davisboro signed a $4,679,000 assistance agreement, including $500,000 in principal forgiveness. This project includes the expansion of the land application system (LAS). As of the end of state FY2017, Davisboro had not drawn from this commitment. Ellijay Gilmer County WSA (CW16013) On December 1, 2016, Ellijay Gilmer County WSA signed a $2,100,000 assistance agreement, including $500,000 in principal forgiveness. This project includes the installation of gravity sewer, force main, and lift station to serve the Gilmer County jail. As of the end of state FY2017, Ellijay Gilmer County WSA had drawn $989,260.65 from this commitment. Fort Valley Utilities Commission (CW16025) On March 29, 2017, Fort Valley Utilities Commission signed a $1,000,000 assistance agreement, including $150,000 in principal forgiveness. This project includes the installation of a new oxygenation system at the Lanter Water Reclamation Facility (WRF). As of the end of state FY2017, Fort Valley Utilities Commission had drawn $278,510.43 from this commitment. Jones County (CW16019) On March 14, 2017, Jones County signed a $1,887,000 assistance agreement, including $469,250 in principal forgiveness. This project includes the construction of pump stations and installation of force main and gravity sewer. As of the end of state FY2017, Jones County had not drawn from this commitment. State FY2017 CWSRF Annual Report 2 Downtown Development Authority of Madison (CW15012) On October 5, 2016, the Downtown Development Authority of Madison signed a $1,680,000 assistance agreement, including $336,000 in principal forgiveness. This project includes the installation of storm water infrastructure, acquisition of land for a storm water facility to capture drainage from downtown Madison, and construction of five wet ponds. As of the end of state FY2017, the Downtown Development Authority of Madison had drawn $859,646.88 from this commitment. GREEN PROJECTS City of Brookhaven (LC2015005) On April 14, 2017, Brookhaven signed a $5,700,000 assistance agreement, including $500,000 in principal forgiveness. This project includes the acquisition of the 33 acre Dekalb-Peachtree Airport (PDK) greenspace property, which will provide recreation opportunities and passive greenspace for residents of the city. As of the end of state FY2017, Brookhaven had drawn $5,700,000 from this commitment. City of Jesup (CW16029) On December 21, 2016, Jesup signed a $1,710,000 assistance agreement, including $427,500 in principal forgiveness. This project includes the installation of a 600 kW solar array to provide power to the wastewater treatment plant. As of the end of state FY2017, Jesup had drawn $71,820 from this commitment. Lee County Utilities Authority (CW16023) On April 11, 2017, Lee County Utilities Authority signed a $998,000 assistance agreement, including $249,375 in principal forgiveness. This project includes the installation of a 350 kW solar array to provide power to the Kinchafoonee Creek Wastewater Treatment Plant. As of the end of state FY2017, Lee County Utilities Authority had not drawn from this commitment. City of Woodbine (CW16003) On August 26, 2016, Woodbine signed a $431,250 assistance agreement, including $129,375 in principal forgiveness. This project includes the installation of a 125 kW solar array to provide power to the wastewater treatment plant. As of the end of state FY2017, Woodbine had not drawn from this commitment. BASE CWSRF PROJECTS Town of Camak (CW16017) On January 1, 2017, Camak signed a $100,000 assistance agreement. This project includes the installation of a new pump station. As of the end of state FY2017, Camak had drawn $24,356 from this commitment. Clayton County Water Authority (CW16037) On June 29, 2017, Clayton County Water Authority signed a $25,000,000 assistance agreement. This project includes the rehabilitation of the Flint River Relief and Outfall Sewers and the Jester Creek East Outfall. As of the end of state FY2017, Clayton County Water Authority had not drawn from this commitment. State FY2017 CWSRF Annual Report 3 City of Grovetown (CW15015) On January 17, 2017, Grovetown signed a $2,478,000 assistance agreement. This project includes improvements to the headworks at the water pollution control plant. As of the end of state FY2017, Grovetown had drawn $239,563.56 from this commitment. City of Hinesville (CW16004) On July 20, 2016, Hinesville signed a $4,622,450 assistance agreement. This project includes the replacement of a pump station and 24" force main. On January 6, 2017, Hinesville also signed a $1,500,000 increase to cover bids that came in higher than estimated to complete the project. As of the end of state FY2017, Hinesville had drawn $282,870.20 from this commitment. City of Rincon (CW16001) On May 1, 2017, Rincon signed a $2,000,000 assistance agreement. This project includes the construction of new headworks at the wastewater treatment plant. As of the end of state FY2017, Rincon had drawn $68,505 from this commitment. City of St. Marys (CW15024) On July 11, 2016, St. Marys signed a $480,670 assistance agreement. This project includes the replacement of 8 inch PVC force main with 12 inch PVC force main. As of the end of state FY2017, St. Marys had not drawn from this commitment. City of Thomasville (CW16040) On June 1, 2017, Thomasville signed a $1,500,000 assistance agreement. This project includes the installation of new sewer main, demolishing a pump station, and abandoning existing force main. As of the end of state FY2017, Thomasville had not drawn from this commitment. City of Tybee Island (CW16043) On March 29, 2017, Tybee Island signed a $720,000 assistance agreement. This project includes the replacement of the Ultraviolet (UV) disinfection system at the wastewater treatment plant. As of the end of state FY2017, Tybee Island had not drawn from this commitment. MEETING IUP GOALS AND OBJECTIVES The 2016 CWSRF IUP listed six goals for the program. 1. The CWSRF program will work toward increasing its pace in comparison to the national average. According to the FY2015 NIMS database, Georgia's CWSRF program had an 84 percent rate for the pace indicator of "Executed Loans as a Percent of Funds Available." Status: According to the FY2016 NIMS database, Georgia's CWSRF program had an 86 percent rate for the pace indicator of "Executed Loans as a Percent of Funds Available". This shows an increase from the percent rate in the FY2015 NIMS database. On April 14, 2017, GEFA executed a Land Conservation loan to the city of Brookhaven for $5,700,000 and on June 26, 2017, GEFA executed a Clean Water loan to Clayton County Water Authority for $25,000,000. According to the FY2016 NIMS database, Georgia's CWSRF program had an 87 percent rate for the pace indicator of "Disbursements as a Percent of Executed Loans". During FY2017, GEFA disbursed a total of State FY2017 CWSRF Annual Report 4 $14,654,473.41 to the city of Atlanta, $5,700,000 to the city of Brookhaven, and $10,171,376.71 to the city of Griffin. The total amount of these disbursements was $30,525,850.12 and comprised 44 percent of the total amount disbursed. With these two executions and the three large disbursements, GEFA should be on track to show an increase in the pace for the FY2017 NIMS database. 2. GEFA will fully implement the provisions included in the Water Resources Reform and Development Act (WRRDA) and communicate these updates to current and/or prospective loan recipients. Status: GEFA has met all requirements of WRRDA. GEFA also communicates this in the annual CWSRF solicitation process. 3. The CWSRF program will continue to use the GEFA Conservation Initiative with its interest rate reductions to promote projects that produce and conserve energy at publically-owned wastewater treatment plants such as wind, solar and biogas combined heat and power projects as described in FWPCA Section 603(c)(8). Status: GEFA successfully initiated the Biogas Technical Assistance Program (BTAP) to provide technical assistance to the municipal landfill owners and wastewater treatment plant (WWTP) operators to realize their landfill gas and biogas potential and to understand the technical solutions available to help them achieve the highest and best use of their resources. As of the end of state FY2017, $12,950 had been spent from program income to cover the phase I education and awareness. During Phase II, GEFA awarded three grants to Gainesville Department of Water Resources, Dekalb County Department of Watershed Management, and Brunswick-Glynn County Joint Water and Sewer Commission for site assessments of biogas reuse at landfills/WWTP. The deadline for the grantees to submit the study and invoice GEFA is in the first quarter of state FY2018; therefore, the invoiced amounts and outcomes from the studies will be reflected in the 2018 CWSRF Annual Report. GEFA continues its effort to promote energy conservation projects. In state FY2017, three solar projects were executed totaling $3,139,250. These projects will provide solar power to the wastewater treatment facility to offset energy purchase costs and provide for long term sustainable power generation wastewater operations. GEFA hopes to continue funding more solar installations throughout the state which will provide a stable energy source to many other wastewater utilities. 4. The CWSRF will continue to use the GEFA Conservation Initiative with its interest rate reductions to promote activities that implement water conservation projects and programs. Sustaining and promoting a culture of water conservation in Georgia and helping municipalities maximize existing water supplies is a key priority for GEFA. Status: GEFA continues to promote water conservation projects using financial incentives such as an interest rate reduction and principal forgiveness. This has proven to be an effective marketing tool for communities throughout the state. 5. The CWSRF will continue to promote the development of green infrastructure. Even absent a regulatory driver, GEFA will help communities define the benefits of these types of projects including water quality and recreation so that public support is generated and the work is ultimately performed. GEFA staff will State FY2017 CWSRF Annual Report 5 stay up to date on changing regulatory drivers and other trends and position itself to finance a large number of these projects and stormwater projects for municipalities when the need for financing arises. Status: GEFA continues its effort to encourage investment in green infrastructure to support community needs. In state FY2017, GEFA executed a $1,344,000 assistance agreement with the Downtown Development Authority of Madison to construct green infrastructure including wet ponds to capture and treat stormwater runoff from downtown Madison and all associated land acquisition. This facility will serve as a new park for residents and visitors to downtown Madison. GEFA also executed a $5,700,000 assistance agreement with the city of Brookhaven to acquire the 33 acre Dekalb-Peachtree Airport Greenspace property. Through preservation of this greenspace, runoff water quality from the site will not suffer the impacts that result from the development of suburban neighborhoods. This greenspace will also provide passive recreation facilities for the surrounding neighborhood. 6. GEFA will promote the 25 and 30-year loan terms available under the CWSRF to promote the upgrade of existing or construction of new wastewater treatment plants. With the availability of this extended term financing in the current interest rate environment, conditions are ideal for communities to finance the high costs involved with wastewater treatment at minimum borrowing costs. The development, construction, and disbursement of funds for these large wastewater treatment projects will promote the achievement of Goal #1 as well, increased pace of the CWSRF program. Status: In state FY2017 GEFA signed 30-year loan term assistance agreements with the city of Butler and the city of Grovetown. The city of Butler will replace pump stations and components of the wastewater treatment facility (WWTF) that have already failed or are at risk for failing. These upgrades allowed the WWTF to operate more effective and efficiently and meet limits set in their wastewater discharge permit. The city of Grovetown will construct a new water pollution control plant (WPCP) that discharges into Butler Creek, which will address the city's consent order for their current land application system. These two communities would not have been be able to afford to construct these much needed projects without the 30-year loan option. PROGRAM ADMINISTRATION (4 PERCENT) In state FY2017, GEFA spent $1,483,281.91 on program administration of the CWSRF and EPD charged $272,582.92 to the program operations contract with GEFA. Only $903,640 of program administration was funded out of the 4 percent set-aside due to lack of availability of funding. Where 4 percent set-aside funds were not sufficient to cover program administration costs, CWSRF Program Income was used to fund administration. Attachment 5 displays expenditures associated with program administration broken down by object category. CWSRF NON-PROGRAM INCOME Of the total spent on program for FY2017, GEFA spent $762.35 in CWSRF Non-Program Income in support of the state's water quality monitoring, testing, and standards development efforts. Attachment 5 shows the breakout of these dollars. DBE PARTICIPATION As a part of GEFA's loan agreement, loan recipients are required to encourage the participation of small minority- State FY2017 CWSRF Annual Report 6 and women-owned businesses in all project subcontracts. The state's CWSRF percentage goals through September 30, 2017, are 4 percent for Minority Business Enterprises (MBE) and 4 percent for Women Business Enterprises (WBE). A summary of the DBE utilization is displayed in Attachment 6. Due to the reporting change of the DBE numbers to EPA from semi-annually to annual reporting, the data provided in Attachment 6 is for the reporting period of October 1, 2015, through September 30, 2016, which represents the most recent full fiscal year of data reported. GEFA has made a tremendous effort 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 CWSRF and DWSRF. DBE's are alerted to GEFA-approved projects as soon as they appear in the database, allowing subcontractors to inquire and prepare for these projects prior to the bid date. Subcontractors are additionally urged to pursue EPA/DOT/SBA certification. GEFA staff are available to answer questions and assist subcontractors in the application process. GEFA also maintains an in-house bidder's list of certified DBE prime and subcontractors. The data for the bidder's list is collected and forwarded to loan recipients with compliance approval. The bidder's list also serves as a database of MBE's and WBE's and non-MBE/WBE prime and subcontractors. In considering whether firms could subcontract with DBEs, GEFA encourages prime contractors to follow the Six Good Faith Efforts to solicit the services of MBEs and WBEs and withholds project approval 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 solicitation letter in efforts to eliminate generic newspaper advertisements and poorly-written letters. Prime contractors are sent a link to available DBEs on the Georgia DOT website and the bidder's list is also available to prime contractors, as well as the names, addresses and telephone numbers of contacts in the Small Business Administration, the Minority Business Development Agency, the U.S. Department of Commerce and other related state and federal agencies and associations. Guidance is also provided in all related construction contracts to encourage prime contractors to divide work when feasible. CWSRF LOAN DISBURSEMENTS The CWSRF disbursed funds to 45 active projects during state FY2017. Attachment 7 shows 47 projects that received funds by quarter in state FY2017. The CWSRF disbursed a total of $69,464,550.64 in state FY2017. Attachment 8 compares the projected disbursement schedules indicated within the 2015 and 2016 IUPs for state FY2017 against the actual disbursements made in state FY2017. The CWSRF disbursed 43 percent of projected disbursements in state FY2017. CWSRF STATE MATCH During state FY2017, projects that received federal capitalization grant dollars used a cash draw ratio of 83.33 percent federal dollars and 16.67 percent state match dollars. GEFA has revisited this state match process and is currently considering implementing a new process whereby state match funds are disbursed before federal funds, upon prior approval from EPA. This approach will closely align with EPA's suggested methodology. GEFA received sufficient general obligation bond funds to match the CWSRF program at 20 percent. The state bond funds will be deposited into the CWSRF fund as grant payments are made. Attachment 1 shows the amount of state match funds provided during state FY2017 by quarter. CWSRF LOAN REPAYMENT Thirteen CWSRF projects initiated operation during state FY2017 (Attachment 9). The total dollar value awarded State FY2017 CWSRF Annual Report 7 to these 13 projects equaled $70,957,447 of which $65,716,773.20, or 93 percent, was disbursed. The total amount of repayments credited to the CWSRF during state FY2017 from all sources was $84,516,780.70 and can be found within Attachment 1 (total of federal and state-match repayments). These sources of repayment include principal and interest payments as well as any late fees or loan continuation fees paid. To maintain the revolving nature of the CWSRF, all repayments including the principal, interest and fees are credited to the CWSRF. Attachment 1 also shows that $1,100,409.68 in closing fees were collected during the state fiscal year. WRRDA IMPLEMENTATION GEFA has taken specific steps toward implementing all new provisions of the Water Resources Reform and Development Act (WRRDA) signed into law by President Obama on June 10, 2014. Below is a summary of the provisions of this act that were implemented prior to June 30, 2016. One provision enacted into law by WRRDA is the competitive procurement of architectural and engineering (A&E) services for projects receiving CWSRF assistance. GEFA used Clayton County Water Authority CW16037 to meet the equivalency requirement because the A&E services were done in house and did not need to be procured. The total amount of the loan is $25,000,000, which exceeded the 2016 CWSRF Capitalization Grant of $22,591,000. The Act made the American Iron and Steel (AIS) requirements permanent. GEFA had developed and implemented the process for ensuring AIS compliance since this provision had already been enacted through other legislation prior to being made permanent. GEFA has incorporated AIS language into the loan agreement for treatment works projects. GEFA does not consider solar projects as treatment works and has excluded this language from these loan agreements. GEFA implemented a process to verify that a Fiscal Sustainability Plan (FSP) has been developed or will be developed prior to loan closing for all projects receiving CWSRF assistance. GEFA developed a new loan document titled the FSP Certification Form that CWSRF borrowers must complete prior to contract execution certifying that either the borrower has developed and implemented or will develop and implement an FSP for the portion of the treatment works included in the project scope. The FSP Certification Form requires that the FSP shall be made available by the borrower to GEFA upon request. ASSURANCES AND SPECIFIC PROPOSALS The CWSRF will adhere to all the certifications covered in the Act as well as those within Georgia's Operating Agreement with the Regional EPA office. The specific certifications are: A. Introduction and General Program Management Assurances B. Clean Water State Revolving Loan Fund - An Instrumentality of the State a. State Law b. Interagency Agreements C. Capitalization Grant Acceptance D. Payment Schedule E. State Matching Funds F. Commitment of 120 percent in One Year G. All Funds - Timely Expenditure H. Enforceable Requirements of the Act I. Cross Cutting Issues State FY2017 CWSRF Annual Report 8 J. State Law and Procedures K. State Accounting and Auditing Procedures L. Recipient Accounting and Auditing Procedures M. Annual Report N. Limitations on Eligibility O. Maintain the Fund P. Perpetuity Q. Types of Assistance R. Limitation of Double Benefits S. Consistency with Planning Requirements T. Priority List U. Annual Audit V. Annual Federal Oversight Review and Technical Assistance W. Dispute Resolution X. Transfer of Funds between SRF Programs A copy of GEFA's FY2017 audited financial data is provided under separate cover. State FY2017 CWSRF Annual Report 9 ATTACHMENT 1 SOURCES AND USES OF FUNDS BY QUARTER CLEAN WATER STATE REVOLVING FUND FY 2017 July 1, 2016 - June 30, 2017 Quarter 1 7/2016 - 9/2016 Quarter 2 10/2016 - 12/2016 Quarter 3 1/2017 - 3/2017 Quarter 4 4/2017 - 6/2017 Total Sources Direct Capitalization Grant Funds (Accrual Basis) 3,650,583.69 4,333,869.21 7,910,788.94 2,775,671.22 $ 18,670,913.06 State Match Funds (Accrual Basis) 730,291.97 744,680.39 1,524,067.62 555,267.48 $ 3,554,307.46 Repayments Collected (Cash Basis) CWSRF Federal & State Principal Repayments 21,324,989.86 21,127,314.02 10,682,849.36 12,284,723.54 $ 65,419,876.78 CWSRF Federal & State Interest Repayments 4,857,121.57 4,769,030.10 4,717,854.03 4,752,898.22 $ 19,096,903.92 Fees Collected (Cash Basis) Closing fee payments (program) 582,322.84 190,563.27 180,251.98 147,271.59 $ 1,100,409.68 Closing fee payments (non-program) - - - - $ - Investment Earnings (Short & Long-term) CWSRF Federal Repayment Fund 405,926.13 460,545.67 593,724.76 858,549.73 $ 2,318,746.29 CWSRF State-Match Repayment Fund 118,508.80 133,169.04 172,880.98 254,698.09 $ 679,256.91 Closing fee payments (program) 24,430.30 26,410.04 34,079.70 49,452.74 $ 134,372.78 Closing fee payments (non-program) 1,446.46 1,944.98 2,506.04 3,709.27 $ 9,606.75 Total Sources $ 31,695,621.62 $ 31,787,526.72 $ 25,819,003.41 $ 21,682,241.88 $ 110,984,393.63 Uses CWSRF Disbursements - Cap grant 3,650,583.69 3,722,508.56 7,618,509.59 2,775,671.22 $ 17,767,273.06 CWSRF Disbursements - State Match 730,291.97 744,680.39 1,524,067.62 555,267.48 $ 3,554,307.46 CWSRF Disbursements - Repayments 11,389,371.60 16,970,950.19 9,430,339.24 10,652,309.19 $ 48,442,970.22 CWSRF Administration (4%) - 611,360.65 292,279.35 - $ 903,640.00 CWSRF Program Income 275,139.69 (244,896.87) 68,916.65 479,720.09 $ 578,879.56 CWSRF Non-Program Income 160.25 199.25 198.09 204.76 $ 762.35 Total Uses $ 16,045,547.20 $ 21,804,802.17 $ 18,934,310.54 $ 14,463,172.74 $ 71,247,832.65 ATTACHMENT 2 CWSRF REPAYMENT ACCOUNTS CLEAN WATER STATE REVOLVING FUND Account CWSRF Federal Repayment Fund CWSRF State-Match Repayment Fund CWSRF Closing Fee (Program Income) CWSRF Closing Fee (Non-program Income) Total $ FY 2017 July 1, 2016 - June 30, 2017 Balance* Investment Earnings Expected Uses of Funds 381,978,290.36 2,318,746.29 Project Funding 113,620,996.17 679,256.91 Project Funding 21,754,183.42 134,372.78 Project Funding 1,669,680.36 9,606.75 Water Quality Related Activities 519,023,150.31 $ 3,141,982.73 State FY 2017 CWSRF Annual Report 10 ATTACHMENT 3 COMMUNITIES RECEIVING CWSRF FINANCIAL ASSISTANCE CLEAN WATER STATE REVOLVING FUND FY 2017 July 1, 2016 - June 30, 2017 Community Butler, City of Camak, Town of Clayton County Water Authority Davisboro, City of Ellijay Gilmer County WSA Fort Valley Utilities Commission Grovetown, City of Hinesville, City of Hinesville, City of* Jesup, City of Jones County Lee County Utilities Authority Downtown Development Authority of Madison Rincon, City of St. Marys, City of Thomasville, City of Tybee Island, City of Woodbine, City of Brookhaven, City of *Indicates increases to exisitng loans. Project Number CW16008 CW16017 CW16037 CW16021 CW16013 CW16025 CW15015 CW16004 CW16004 CW16029 CW16019 CW16023 CW15012 CW16001 CW15024 CW16040 CW16043 CW16003 LC2015005 Population 1,931 138 273,955 2,010 143 11,500 12,365 40,000 40,000 10,214 105 28,298 111 9,843 17,500 18,413 2,990 1,412 50,812 Zip Code 31006 30807 30260 31018 30540 31030 30813 31313 31313 31546 31032 31763 30650 31326 31558 31792 31328 31569 303019 Project Type Secondary Treatment New Collector Sewers I/I Correction Secondary Treatment New Collector Sewers Secondary Treatment Secondary Treatment Sewer Rehab Sewer Rehab Energy Efficiency Secondary Treatment Energy Efficiency CSO Correction Advanced Treatment Sewer Rehab Advanced Treatment Secondary Treatment Secondary Treatment Land Conservation Total Assistance Agreement 2,010,000.00 100,000.00 25,000,000.00 4,679,000.00 2,100,000.00 1,000,000.00 2,478,000.00 4,622,450.00 1,500,000.00 1,710,000.00 1,887,000.00 998,000.00 1,680,000.00 2,000,000.00 480,670.00 1,500,000.00 720,000.00 431,250.00 5,700,000.00 $ 60,596,370.00 $ Loan Amount 1,635,000.00 100,000.00 25,000,000.00 4,179,000.00 1,600,000.00 850,000.00 2,478,000.00 4,622,450.00 1,500,000.00 1,282,500.00 1,417,750.00 748,625.00 1,344,000.00 2,000,000.00 480,670.00 1,500,000.00 720,000.00 301,875.00 5,200,000.00 56,959,870.00 Principal Forgiveness Amount 375,000.00 500,000.00 500,000.00 150,000.00 427,500.00 469,250.00 249,375.00 336,000.00 129,375.00 500,000.00 $ 3,636,500.00 Green Projected Project Binding Initiation Reserve Amount Commitment Date Operation Date 7/1/2016 8/1/2016 1/20/2017 4/1/2016 6/29/2017 8/1/2017 3/13/2017 10/1/2017 12/1/2016 9/1/2016 3/29/2017 12/1/2016 1/17/2017 3/1/2017 7/20/2016 8/1/2016 1/6/2017 8/1/2016 1,710,000.00 12/21/2016 3/1/2017 3/14/2017 3/1/2017 998,000.00 4/11/2017 4/1/2017 10/5/2016 10/1/2016 5/1/2017 11/1/2016 7/11/2016 8/1/2016 6/1/2017 9/1/2017 3/29/2017 3/1/2017 431,250.00 8/26/2016 7/1/2016 5,700,000.00 4/14/2017 4/14/2017 $ 8,839,250.00 Loan Interest Rate 2.72% 1.40% 0.65% 1.89% 1.89% 1.89% 2.72% 1.09% 1.09% 0.89% 1.39% 0.65% 1.00% 1.89% 1.09% 0.89% 0.89% 0.75% 0.89% State FY 2017 CWSRF Annual Report 11 CLEAN WATER STATE REVOLVING FUND FY 2017 July 1, 2016 - June 30, 2017 Project Type Number of Projects* Dollar Value ($) Assistance by Population Size Number of New Assistance Agreements Dollar Value ($) Secondary Treatment (I) Advanced Treatment (II) Infiltration/Inflow (IIIA) Sewer System Rehab (IIIB) New Collecter Sewers (IVA) 7 11,870,792 Less than 3,500: 1 1,957,340 3,500 to 9,999: 2 22,603,293 10,000 to 99,999: 3 6,636,271 100,000 & above: 2 2,200,000 Total 8 1 8 1 18 $ 13,587,838 -2,354,295 19,135,830 24,986,323 55,355,696.00 New Interceptors (IVB) CSO Correction (V) Storm Sewers (VI) Recycled Water Distribution (X) Energy Efficiency Renewable Energy Water Efficiency Water Reuse Agricultural Cropland (VII-A) Agricultural Animals (VII-B) Silviculture (VII-C) Urban, Excluding Decentralized Systems (VII-D) Groundwater, Unknown Source (VII-E) Marinas (VII-F) Resource Extraction (VII-G) Brownfields (VII-H) Storage Tank (VII-I) Sanitary Landfills (VII-J) 1 1,680,000 2 2,708,000 Hydromodification (VII-K) Individual/Decentralized Systems (VII-L) Land Conservation Total 1 5,700,000 19 $ 55,355,696.00 *Assistance Agreements may be counted in more than one category when they fund more than one category. **Calculations are consistent with the Clean Water Benefits Reports database and net out funds returned by projects closed in state FY2017. State FY 2017 CWSRF Annual Report 12 ATTACHMENT 5 ADMINISTRATIVE EXPENSES BY CATEGORY CLEAN WATER STATE REVOLVING FUND FY 2017 July 1, 2016 - June 30, 2017 Object Category 4% - GEFA Personnel Fringe Benefits 166,470.33 88,236.61 Travel 12,196.38 Contractual Operating Expenses 99,655.72 168,770.41 Indirect Costs 191,030.21 Shared Services 177,280.34 Total $ 903,640.00 4% - EPD - $ - Program Income $51,682.69 $26,512.80 3,255.85 $306,539.95 72,012.66 $58,646.62 $60,228.99 $ 578,879.56 Non-Program Income - - - - 762.35 - - $ 762.35 Total Expenditures $ 218,153.02 $ 114,749.41 $ 15,452.23 $ 406,195.67 $ 241,545.42 $ 249,676.83 $ 237,509.33 $ 1,483,281.91 State FY 2017 CWSRF Annual Report 13 ATTACHMENT 6 DBE UTILIZATION CLEAN WATER STATE REVOLVING FUND October 1, 2015 - September 30, 2016** Annual Dates Summaries MBE ($) WBE ($) TOTAL ($) (October 1, 2015 - September 30, 2016) 3,666,900.52 1,193,702.80 $ TOTAL PERCENTAGE GOAL $ 3,666,900.52 $ 1,193,702.80 $ 4.00% 4.00% PERCENTAGE ACTUAL* 6.99% 2.27% *DBE information is provided on an annual basis to EPA **Percentage Actual is calculated by dividing the DBE funds disbursed by the total CWSRF funds disbursed in the same period 4,860,603.32 4,860,603.32 8.00% 12.77% State FY 2017 CWSRF Annual Report 14 Community Atlanta, City of Bartow County Baxley, City of Braselton, Town of Brookhaven, City of Butler, City of Byron, City of Byron, City of Camak, Town of Canton, City of Clayton, City of Cleveland, City of Cochran, City of Cochran, City of Cornelia, City of Dawsonville, City of Elberton, City of Ellijay Gilmer County WSA Emerson, City of Fayetteville, City of Fort Valley Utilities Commission Griffin, City of Grovetown, City of Hartwell, City of Helen, City of Hinesville, City of Jesup, City of Jones County Macon Water Authority Downtown Development Authority of Madison Madison, City of Millen, City of Moultrie, City of Pooler, City of Rincon, City of Rockmart, City of Sandersville, City of Savannah, City of St. Marys, City of Summerville, City of Sylvester, City of Tallapoosa, City of Thomasville, City of Thomasville, City of Thomasville, City of Valdosta, City of Wrightsville, City of ATTACHMENT 7 DISBURSEMENT OF CWSRF FUNDS BY QUARTER CLEAN WATER STATE REVOLVING FUND FY 2017 July 1, 2016 - June 30, 2017 Project Number CW15010 CW14011 CW15011 CW14010 LC2015005 CW16008 CW14002 CW14003 CW16017 CW12012 CW14007 CW15013 CW15002 CW15009 CW15017 CW15008 CW14020 CW16013 CW15005 CW14019 CW16025 CW14013 CW15015 CW15007 CW14018 CW16004 CW16029 CW13002 CW13010 CW15012 CW13007 CW15014 CW11002 CW15020 CW16001 CW14015 CW15003 CW14009 CW15024 CW13005 CW12002 CW13011 CW11004 CW11006 CW14006 CW13006 CW14021 Total Disbursements Quarter 1 7/2016 - 9/2016 4,295,998.52 1,350,730.06 19,100.00 66,812.66 680,789.01 72,220.47 304,608.82 12,101.11 356,798.99 372,827.05 310,373.03 2,974,796.63 66,197.25 119,018.92 95,400.37 251,971.69 415,734.64 1,301,970.85 113,294.88 78,695.43 699,257.41 1,528,271.47 283,278.00 $15,770,247.26 Quarter 2 10/2016 - 12/2016 7,302,109.72 367,759.05 250,894.39 277,307.67 20,000.00 394,270.11 80,781.31 192,887.36 214,539.02 88,753.90 514,274.51 347,828.16 - 4,078,004.67 - 383,368.39 - 2,320,687.05 735,163.28 73,131.66 41,200.00 48,362.90 980,024.63 329,318.78 50,817.16 219,445.20 37,051.75 32,222.00 488,119.51 73,944.00 1,392,610.19 103,262.77 $21,438,139.14 Quarter 3 1/2017 - 3/2017 3,056,365.17 - 763,375.88 - 706,912.44 29,700.00 - 386,008.41 - 332,923.64 645,681.94 29,548.48 206,021.50 166,246.02 495,674.75 184,225.02 62,003.84 - 1,207,184.73 - 71,641.41 - 1,590,672.51 124,483.60 518,782.99 3,538,601.47 2,908,055.44 14,168.28 145,391.99 87,367.43 119,949.69 852,348.37 58,589.71 108,888.45 42,030.76 120,072.53 $18,572,916.45 Quarter 4 4/2017 - 6/2017 381,747.58 192,311.14 1,000.00 5,700,000.00 85,085.00 241,995.94 24,356.00 278,150.64 64,350.05 411,088.10 62,352.01 77,619.50 161,996.07 10,000.00 493,585.90 278,510.43 1,911,390.68 239,563.56 151,104.75 282,870.20 71,820.00 624,191.74 893,372.03 68,505.00 38,041.15 585,900.00 97,633.26 554,707.16 $13,983,247.89 Total $14,654,473.41 $2,100,236.69 $1,225,681.41 $67,812.66 $5,700,000.00 $85,085.00 $1,226,216.05 $49,700.00 $24,356.00 $1,461,067.53 $278,150.64 $478,055.00 $1,321,877.87 $91,900.49 $802,788.84 $429,097.10 $366,798.99 $989,260.65 $1,071,326.58 $720,205.03 $278,510.43 $10,171,376.71 $239,563.56 $672,311.80 $119,018.92 $282,870.20 $71,820.00 $95,400.37 $4,535,551.30 $859,646.88 $73,131.66 $559,982.99 $3,838,936.06 $4,781,452.10 $68,505.00 $797,262.85 $1,498,180.00 $585,900.00 $404,445.89 $233,244.57 $115,747.18 $32,222.00 $2,039,725.29 $58,589.71 $182,832.45 $3,517,619.58 $506,613.30 $69,764,550.74 State FY 2017 CWSRF Annual Report 15 ATTACHMENT 8 COMPARISON OF PROJECTED VERSUS ACTUAL DISBURSEMENTS CLEAN WATER STATE REVOLVING FUND FY 2017 July 1, 2016 - June 30, 2017 Projected Disbursements Quarter 1 Quarter 2 Quarter 3 Quarter 4 7/2016 - 9/2016 10/2016 - 12/2016 1/2017 - 3/2017 4/2017 - 6/2017 Total Projected FY 2017 CW Disbursements from 2015 IUP 14,378,044.00 14,143,052.00 10,564,219.00 5,677,975.00 $ 44,763,290.00 Projected FY 2017 CW Disbursements from 2016 IUP 50,568,161.00 23,232,546.00 23,277,073.00 21,599,852.00 $ 118,677,632.00 Total Projected Disbursements for FY 2017 $ 64,946,205.00 $ 37,375,598.00 $ 33,841,292.00 $ 27,277,827.00 $ 163,440,922.00 Actual FY 2017 CWSRF Disbursements $ 15,770,247.26 $ 21,438,139.14 $ 18,572,916.45 $ 13,983,247.89 $ 69,764,550.74 Percent Disbursed of Projected 24% 57% 55% 51% 43% State FY 2017 CWSRF Annual Report 16 Community Byron, City of Elberton, City of Hartwell, City of Helen, City of Jones County Sandersville, City of Summerville, City of Sylvester, City of Thomasville, City of Thomasville, City of Thomasville, City of Valdsota, City of Brookhaven, City of ATTACHMENT 9 PROJECTS INITIATING OPERATION CLEAN WATER STATE REVOLVING FUND FY 2017 July 1, 2016 - June 30, 2017 Project Number CW14003 CW14020 CW15007 CW14018 CW13002 CW15003 CW13005 CW12002 CWSRF Assistance Amount 4,000,000.00 1,400,000.00 1,000,000.00 350,000.00 1,326,319.00 1,498,180.00 1,320,000.00 1,725,500.00 Assistance Amount Used 103,292.60 1,400,000.00 672,311.80 330,587.97 1,326,319.00 1,498,180.00 1,320,000.00 1,595,600.68 CW11004 CW11006 CW14006 CW13006 LC2015005 Total $ 11,391,000.00 2,800,000.00 665,000.00 37,781,448.00 5,700,000.00 70,957,447.00 $ 11,246,084.19 2,137,765.14 618,860.70 37,767,771.12 5,700,000.00 65,716,773.20 Percentage Used 3% 100% 67% 94% 100% 100% 100% 92% 99% 76% 93% 100% 100% 93% Binding Commitment Date 10/1/2015 7/24/2015 2/22/2016 7/15/2015 10/16/2013 12/22/2015 5/16/2014 11/5/2013 11/8/2012 7/2/2012 7/17/2015 4/29/2014 4/14/2017 Initiate Operation Date 4/1/2017 5/1/2017 5/1/2017 12/31/2016 9/1/2016 3/1/2017 12/31/2016 12/1/2016 4/1/2017 4/1/2017 4/1/2017 6/1/2017 5/1/2017 Loan Interest Rate 1.03% 1.63% 1.03% 0.50% 1.40% 1.03% 0.50% 1.82% 2.13% 2.13% 1.03% 1.40% 0.89% State FY 2017 CWSRF Annual Report 17