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ANNUAL REPORT 2017


To Conserve and Improve Georgia’s Energy, Land, and Water Resources Founded in 1985, the Georgia Environmental Finance Authority (GEFA) directs programs that improve Georgia’s environment, protect natural resources, and promote economic development. GEFA provides loans for water, wastewater, and solid waste infrastructure; manages energy efficiency and renewable energy programs; administers land conservation loans and tax credits; and monitors state-owned fuel storage tanks. To date, GEFA has provided more than $4 billion in low-interest loans to cities, counties, and infrastructure authorities for more than 1,600 projects that improve water, wastewater, stormwater, and solid waste systems.

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Executive Director’s Report To the Governor, Members of the General Assembly, and Georgia Citizens: Infrastructure is the foundation of our economy and quality of life, and it is essential for supporting and maintaining prosperous communities. However, for many communities investing in infrastructure can be a challenge. Whether it is a lack of financial resources or more immediate concerns, infrastructure improvements are often overlooked. The Georgia Environmental Finance Authority (GEFA) was created to help communities make these infrastructure improvements by providing below-market financing. Our financing programs strive to conserve and improve Georgia’s energy, land, and water resources. In Fiscal Year (FY) 2017, GEFA provided more than $125 million to 71 infrastructure projects in communities across Georgia. The town of Byromville received a $305,000 loan that helped finance drilling a new water supply well and rehabilitating an existing well to restore reliable drinking water to the community. The city of Cornelia received a $1.2 million loan to replace the city’s water meters with an advanced metering infrastructure system. This system will help the city to better serve its customers by reading water meters more effectively, reducing water loss, and enhancing system reliability. Both of these are examples of communities investing in infrastructure improvements. In FY2017, Georgia was affected by several severe weather events—the largest being Hurricane Matthew—that impacted the state’s electricity and fuel infrastructure. During the storms, GEFA worked behind the scenes to ensure that Georgians had access to energy resources for their safety and well-being. GEFA also provided the media, local authorities, and other state agencies with up-to-date information on electricity and fuel resources.

It is not only the hard work and dedication of our staff that increases infrastructure investments across the state, but it is also encouraging innovation. Through the Solar for Schools Program, GEFA awarded Savannah Technical College (Savannah Tech) a $233,000 matching grant, which included $35,000 in student scholarships. The students used the knowledge they acquired in the classroom and applied it to installing solar power infrastructure on their campus. Gaining this knowledge prepared the students to enter the solar industry, which has grown significantly in our state. Effective environmental protection and conservation is accomplished by finding solutions to the energy, land, and water infrastructure challenges we face. GEFA has made important strides in continued program growth and development, and I’m confident we will continue that well into the future.

Sincerely,

Kevin Clark, Executive Director

Effective environmental protection and conservation is accomplished by finding solutions to the energy, land, and water infrastructure challenges we face.”


FY2017 Accomplishments at a Glance

GEFA increases the capacity and quality of Georgia’s water supply, coordinates the protection and preservation of Georgia’s land resources, and promotes conservation and advancement of Georgia’s energy resources. The agency continues to build upon this success through its commitment to protecting Georgia’s natural resources and supporting economic development.

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Improving Georgia’s Water Resources Projects financed by GEFA in FY2017 provided reliable water, wastewater, and solid waste services to more than 750,000 Georgians. Local governments using GEFA financing saved an estimated $31 million in interest costs over the life of an average 20-year loan in FY2017. The Clean Water State Revolving Fund awarded 18 loans totaling $60.6 million. The Drinking Water State Revolving Fund awarded 31 loans totaling $50 million. The Georgia Fund awarded 22 loans totaling $16.9 million. Provided financing to 64 communities with 10 being first-time borrowers. Five emergency loans were executed for communities facing imminent public health hazards due to failing infrastructure.

Protecting Georgia’s Land Resources The Georgia Conservation Tax Credit Program facilitated six conservation easement donations protecting more than 2,700 acres of land. Awarded the city of Brookhaven a $5.7 million loan to acquire and protect 33 acres of forested land. In FY2017, the Fuel Storage Tank Program provided oversight and monitoring services for 682 fuel storage tanks at more than 20 state agencies and departments. GEFA conducted underground storage tank operator and compliance trainings at approximately 60 state facilities and passed 32 compliance inspections. Completed the annual registration for 342 state-owned underground fuel storage tanks. GEFA installed a new 20,000-gallon jet fuel tank at Fulton County Airport-Brown Field for the Georgia Aviation Authority.

Conserving Georgia’s Energy Resources GEFA continued its role of coordinating and leading the emergency support function #12 (ESF-12) in tropical and winter storms, and numerous emergency exercises. Awarded Savannah Technical College a $233,000 matching grant to create an educational program for students to gain knowledge in installing, inspecting, and repairing solar panels. Six state agencies moved forward with Energy Performance Contracts. Awarded three communities $75,000 in grant funds for biogas feasibility studies. The Weatherization Assistance Program completed weatherization retrofits to 752 units—impacting 1,309 people—with estimated energy savings of 22,936 MBtu. Consolidated from 16 to 14 weatherization agencies throughout the state and conducted two manufactured housing training sessions.


Energy Resources The Energy Resources Division promotes energy efficiency, renewable energy, and energy assurance programs to improve environmental quality and stimulate sustainable economic

The State Energy Program provides

development.

financial assistance and technical support for energy efficiency and renewable energy programs. The Weatherization Assistance Program, a national program established in 1976, provides energy conservation measures to income-eligible households. The Georgia Energy Challenge helps state agencies reach the program’s 15 percent energy conservation goal. Energy Performance Contracting allows the state to finance building improvements designed to lower energy and water consumption. The Energy Assurance Program works closely with the Georgia Emergency Management Agency, other state agencies, and private sector stakeholders to develop energy emergency planning resources and to lead exercises designed to ensure better emergency coordination.

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Communities Awarded Grant Funding to Help Fuel Biogas Research

According to the Merriam-Webster dictionary, innovation is the introduction of something new. GEFA promotes innovation by offering incentives to encourage the adoption of new technologies that help conserve energy, land, and water resources. GEFA’s Energy Resources Division launched the Biogas Technical Assistance Program to help local governments better utilize biogas resources at wastewater treatment facilities and landfills. Biogas refers to a mixture of different gasses produced by the breakdown of organic matter in the absence of oxygen. It can be produced from raw materials such as agricultural waste, manure, municipal waste, plant material, sewage, green waste, or food waste. In October 2016, GEFA partnered with Cavanaugh, a water efficiency and waste-to-energy consulting firm, and hosted a one-day workshop to educate wastewater treatment plant and landfill operators about the biogas program. The attendees learned how to apply for GEFA grant funding to kick start the use of biogas resources at

their facilities. They were also able to meet and connect with energy experts to learn about successful operations and approaches. In April 2017, GEFA awarded three communities $75,000 in grant funds for biogas feasibility studies. • Brunswick-Glynn County Joint Water and Sewer Commission, Brunswick Wastewater Treatment Plant. • City of Gainesville, Department of Water Resources, Flat Creek Water Reclamation Facility. • DeKalb County, Department of Watershed Management, Pole Bridge Advanced Wastewater Treatment Plant. The feasibility study will help these organizations better understand innovative technical solutions to achieve the highest and best use of biogas resources. Utilizing biogas is a great example of how innovation can help local governments be better stewards of existing resources and the environment.


Land Resources The Georgia Land Conservation Program (GLCP) offers grants and low-interest loans for fee title or conservation easement purchases from the Georgia Land Conservation Trust Fund and Revolving Loan Fund. It

The Fuel Storage Tank Program

also manages the Georgia Conservation Tax Credit Program, which is

(FSTP) is responsible for upgrading,

designed to increase the financial incentives for landowners to donate

replacing, or closing state-owned

land or place a conservation easement on their property. The GLCP is administered under the guidance of the Land Conservation Council.

fuel storage tanks. The FSTP serves as the centralized management and monitoring office for fuel storage tanks owned by state agencies and institutions throughout Georgia. The FSTP also: • Conducts environmental cleanup • Facilitates fuel storage tank preventative maintenance and repair • Manages annual maintenance inspections conducted by private contractors

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Cum ula tive Acr es Pr ot ect ed by t he G LC P Fiscal Years 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0

2 005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017


Water Resources Water, wastewater, and solid waste infrastructure protects the environment, facilitates economic development, accommodates population growth, and safeguards public health. GEFA partners

The Georgia Fund is a state loan

with local governments by providing loans for water, wastewater,

program for water, wastewater, and

stormwater, and solid waste infrastructure improvements. The

solid waste infrastructure.

Water Resources Division also assists local governments with the development of reservoir and water supply projects. The Georgia Reservoir Fund is a state loan program for reservoir and water supply infrastructure.

The Clean Water State Revolving Fund is a federal loan program for water quality and wastewater treatment infrastructure.

The Drinking Water State Revolving Fund is a federal loan program for drinking water infrastructure.

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Water Wise Community Sets the Bar for Future Generations

Every plant and animal needs water to survive. Despite water’s importance, it is an undervalued resource. Population growth, economic development, and unsustainable practices put pressure on freshwater resources. There are many reasons to protect our drinking water supply not only for ourselves but for future generations. The Clayton County Water Authority (CCWA) has been recognized as one of the nation’s top “water wise” communities for protecting clean water and public health with innovative green solutions. In 2007–2008, when most of Georgia was suffering through one of the worst droughts in history, CCWA maintained a 230-day supply in its reservoirs through an innovative water recycling process. The CCWA identified in their 2015 Strategic Master Plan 95 water, sewer, and stormwater projects totaling $367.1 million. Of this amount, $162 million is estimated for pipeline asset management needs. CCWA maintains almost 1,500 miles of water distribution lines, 1,100 miles

of sewer conveyance pipe, and 500 miles of stormwater pipe. During the initial inspection, cameras detected the Flint River Outfall located within the W.B. Casey Water Reclamation Facility sewer service area was corroded down to the rebar. This added more improvements to be completed during the project. Looking for different solutions to help with this massive project, CCWA approached GEFA. GEFA promotes conservation activities by offering a 1 percent interest rate reduction for conservation projects. GEFA approved a $25 million loan for the replacement of the Flint River Relief and Outfall Sewers. The completion of this project will lead to significant energy savings, reduced wet weather flows to the treatment plant, and decreased pumping costs. It will also help better serve the citizens of Clayton County.


Financial Highlights

Total assets plus deferred outflows of resources exceeded its liabilities plus deferred inflows of resources at the close of the fiscal year by $2.2 billion (net position). Of this amount, $42 million was from governmental activities and $2.2 billion was from business-type activities.

The narrative overview and analysis of the agency’s financial activities for the fiscal year ended June 30, 2017, provides additional detail on GEFA’s financial performance.

Total long-term liabilities experienced a net increase of $845,000 during FY2017, all within governmental activities. The increase was mostly attributable to the changes in GEFA’s proportionate share of Net Pension Liability.

GEFA’s total net position increased by $73.5 million. The net position in governmental activities increased by $1.7 million and the net position of business-type activities increased $71.8 million, resulting in an overall $1.8 million increase over FY2016.

Total governmental revenues increased by $800,000 over FY2016. The increased revenue is primarily attributable to an increase in operating grants and contributions due to increased grant program revenues.

Charges for services within businesstype activities experienced a decline. A $1.9 million decrease from the prior year stems from a reduction in charges for services. Revenues earned were less because of significant loan payoffs resulting in reduced principal outstanding during FY2017; and GEFA’s reduction to interest rates charged on loans to incentivize conservation projects.

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FY2017 // NET POSITION

PRIMARY GOVERNMENT GOVERNMENTAL ACTIVITIES

CURRENT AND OTHER ASSETS

2017

2016

BUSINESS-TYPE ACTIVITIES

INCREASE (DECREASE)

TOTAL

2017

2016

2017

2016

%

$48,801,246

47,396,047

2,203,608,994

2,132,468,994  

2,252,410,240  

2,179,865,041  

3.3%

145,931

124,280

—     

—     

145,931

182,945

(20.2%)

    

   

  

  

  

  

48,947,177

47,578,992

2,132,468,994

2,132,468,994

2,252,556,171  

2,180,047,986  

3.3%

DEFERRED OUTFLOWS

1,418,361

909,882    

—      

—    

1,418,361    

909,882    

55.9%    

LONG-TERM LIABILITIES OUTSTANDING

6,493,403

5,648,419

—  

6,493,403    

5,648,419

15.0%

OTHER LIABILITIES

1,811,248

2,202,159

568,814

1,189,731

2,380,062    

3,391,890    

(29.8%)

TOTAL LIABILITIES

8,304,651

7,850,578

568,814

1,189,731

8,873,465

9,040,309

(1.8%)

61,435

  422,776 

—  

61,435

422,776

(85.5%)

145,931

182,945

145,931

182,945

(20.2%)

38,555,789

36,759,679

1,638,492,840

1,576,901,260

1,677,048,629

1,613,660,939

3.9%

3,297,732

3,272,896

564,547,340

554,378,003

567,845,072

557,650,899

1.8%

$41,999,452

40,215,520

2,203,040,180

2,131,279,263

2,245,039,632

2,171,494,783

3.4%

CAPITAL ASSETS

TOTAL ASSETS

DEFERRED INFLOWS NET POSITION

INVESTMENT IN CAPITAL ASSETS RESTRICTED UNRESTRICTED

TOTAL NET POSITION

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


F Y 2 0 1 7 / / S TAT E M E N T O F N E T P O S I T I O N

GOVERNMENTAL ACTIVITIES

BUSINESS - TYPE ACTIVITIES

TOTAL

GA. ENVIRON. LOAN ACQ. CORP.

$2,842,277

11,213,608

14,055,885   

87,644

CASH WITH FISCAL AGENT

—    

—    

—    

1,035,250   

INVESTMENTS WITH FISCAL AGENT

—  

4,971,267

42,080,827

883,805,716

925,886,543

63,793,580

DUE FROM OTHER GOVERNMENTS

2,067,304

710,751   

2,778,055   

—    

INTERNAL BALANCES

1,809,417      

(1,809,417)

ACCRUED INTEREST RECEIVABLE

—    

3,962,687   

3,962,687

244,307

LOANS RECEIVABLE

—    

1,305,725,649

1,305,725,649   

53,310,204   

1,421   

—    

1,421

—    

145,931

  —      

145,931

—    

ASSETS CASH

INVESTMENTS

OTHER ASSETS CAPITAL ASSETS, NET OF ACCUMULATED DEPRECIATION

TOTAL ASSETS

    48,947,177 

DEFERRED OUTFLOWS OF RESOURCES RELATED TO PENSIONS

1,418,361

2,203,608,994 __

2,252,556,171    1,418,361   

123,442,252    __

LIABILITES 1,794,524

142,590   

1,937,114   

10,200

16,724

—      

16,724

—        

ACCRUED INTEREST PAYABLE

—   

—    

88,396

RETAINAGE PAYABLE

426,224

426,224

124,576   

—    

124,576   

—    

—    

—    

1,750,000   

373,729   

—    

373,729

5,995,098

5,995,098

—    

—    

—    

—    

42,186,562

8,304,651   

568,814

8,873,465   

44,035,158

    61,435 

__

61,435  

__

145,931   

—    

145,931

   

   

—  

—    

—  

 79,407,094 

4,609,944   

4,609,944

—    

33,945,845

1,638,492,840

1,672,438,685

—    

 3,297,732 

564,547,340

 567,845,072 

$41,999,452

2,203,040,180   

2,245,039,632

  79,407,094 

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES ACCRUED PAYROLL

COMPENSATED ABSENCES, CURRENT SECURITIZATION BONDS PAYABLE, CURRENT LONG-TERM LIABILITIES:

COMPENSATED ABSENCES, NET OF CURRENT PORTION NET PENSION LIABILITY SECURITIZATION BONDS PAYABLE, NET OF CURRENT PORTION AND UNAMORTIZED BOND DISCOUNT

TOTAL LIABILITIES DEFERRED INFLOWS OF RESOURCES RELATED TO PENSIONS

NET POSITION NET INVESTMENT IN CAPITAL ASSETS RESTRICTED FOR: DEBT SERVICE GRANT PROGRAMS LOAN PROGRAMS UNRESTRICTED

TOTAL NET POSITION

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F Y 2 0 1 7 / / S TAT E M E N T O F N E T A C T I V I T I E S

NET (EXPENSE) REVENUE AND CHANGES IN NET POSITION

PROGRAM REVENUES

FUNCTIONS/ PROGRAMS

EXPENSES

CHARGES FOR SERVICES

OPERATING GRANTS AND CONTRIBUTIONS

CAPITAL GRANTS AND CONTRIBUTIONS

GOVERNMENTAL ACTIVITIES

BUSINESSTYPE ACTIVITIES

TOTAL

COMPONENT UNIT

$7,434,445   

—    

14,071,835  

—    

6,637,390    

—    

6,637,390  

—    

8,781,032    

1,107,133    

6,691,814  

—    

(982,085)

—    

(982,085)

—    

747    

—    

28,213    

—    

27,466    

—    

27,466    

—    

5,191,460    

—    

5,288,821  

—    

97,361  

—    

97,361  

—    

5,780,132  

GOVERNMENTAL ACTIVITIES:

GENERAL GOVERNMENT WATER AND WASTEWATER LAND CONSERVATION ENERGY AND ENVIRONMENT

 

TOTAL GOVERNMENTAL ACTIVITIES

21,407,684    

1,107,133    

26,080,683    

—    

5,780,132    

—         

        

BUSINESS-TYPE ACTIVITIES:

10,202,019  

—    

10,202,019    

—    

—    

—    

—    

—    

STORAGE TANK MAINTENANCE

613,774    

974,125    

7,086    

—    

—    

367,437    

367,437    

—    

LOAN AND FINANCING SERVICES

190,514    

29,839,105    

37,344,724    

—    

—    

66,993,315    

66,993,315  

—    

WATER AND WASTEWATER

TOTAL BUSINESS-TYPE ACTIVITIES TOTAL PRIMARY GOVERNMENT

 

11,006,307    

30,813,230   

47,553,829    

—    

—    

     67,360,752

67,360,752    

$32,413,991    

31,920,363  

73,634,512  

5,780,132  

67,360,752    

73,140,884    

$2,680,801   

2,245,222  

396,484  

—    

(39,095)

$2,680,801    

2,245,222   

396,484  

COMPONENT UNIT:

GEORGIA ENVIRONMENTAL LOAN ACQUISITION CORPORATION

TOTAL COMPONENT UNITS

   

GENERAL REVENUES:

UNRESTRICTED INVESTMENT EARNINGS MISCELLANEOUS TRANSFERS

256,976    

—    

256,976    

—    

60,451  

86,538    

146,989   

1,565  

—  

(4,313,627)

4,313,627    

—    

—    

(37,530)

TOTAL GENERAL REVENUES AND TRANSFERS

(3,996,200)

4,400,165  

403,965  

CHANGE IN NET POSITION

1,783,932    

71,760,917    

73,544,849    

(37,530)

NET POSITION – JULY 1

40,215,520     2,131,279,263   2,171,494,783   

79,444,624  

NET POSITION – JUNE 30

$41,999,452   2,203,040,180   2,245,039,632  

79,407,094  

 

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FY2017 // REVENUES

69%

30%

2017 REVENUE

Charges for Services and Other Revenue* Investment Earnings, Unrestricted Operating Grants and Contributions

TOTAL REVENUES

AMOUNT PERCENT

$32,067,352

30.3%

$256,976

0.2%

$73,634,512

69.5%

$105,958,840 100%

* Includes restricted investment earnings

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FY2017 // EXPENSES

2% 1% 16%

2017

59%

EXPENSES

23%

General Government

AMOUNT PERCENT

$7,434,445

22.9%

$18,983,051

58.6%

$747

0%

$5,191,460

16%

Storage Tank Maintenance

$613,774

1.9%

Loan and Financing Services

$190,514

0.6%

Water and Wastewater Land Conservation Energy and Environment

TOTAL EXPENSES

$32,413,991 100%


Fiscal Ser vices The Fiscal Services Division provides accounting, underwriting, and loan servicing for GEFA programs. It ensures compliance with agency, state, and federal fiscal policies and procedures, and it reviews and recommends loan awards for the Water Resources Division. The division performs credit analyses; provides reimbursements for loan project expenses; processes loan payments; calculates loan repayment figures and accrued construction-period loan interest; monitors borrowers for debt service coverage; and reviews compliance limits for GEFA customers. Team members provide consultations to communities on underwriting; prepare and submit financial reports to state and federal authorities; process invoices; monitor division accounts; and manage the agency’s budget.

Human Resources Human Resources facilitates the general administration of the agency through developing, maintaining, and communicating office policy. Key responsibilities include developing and implementing hiring and recruiting policies, compensation and salary administration, conducting employee relations, developing official documentation on workplace ethics/code of conduct, employee handbooks, employee training programs, and award/reward programs.

Public Af fairs The Public Affairs Division educates internal and external stakeholders on GEFA’s infrastructure financing programs, and state energy, land, and water conservation initiatives and policies.

I n f o r m a t i o n Te c h n o l o g y The Information Technology Division develops GEFA’s internal and external technical architecture; facilitates electronic access to agency information and services; protects GEFA’s information systems and data; and helps GEFA support its goal of superior customer service.

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Board of Directors Mayor Boyd L. Austin Chairman City of Dallas

Commissioner Grady Tompson Tift County Board of Commissioners

Commissioner Travis Turner Vice Chairman White County Board of Commissioners

Mayor Gary McCullough City of Dahlonega

Greg Griffin Secretary State Auditor

George McIntosh At-Large Member

Mayor Jimmy Andrews City of Sandersville

Commissioner Pat Wilson Georgia Department of Economic Development

Stephen Gray At-Large Member

Commissioner Jason Winters Chattooga County Sole Commissioner

Commissioner Christopher Nunn Georgia Department of Community Affairs

Executive and Senior Staf f Kevin Clark Executive Director

Glendale Jones Director of Human Resources

Chris Jones Deputy Director

Susan Lucki Senior Executive Assistant

David Gipson Director of Energy Resources

Theresa Hinds Director of Information Technology

Jammie Harden Director of Fiscal Services

Martha Douglas Director of Water Resources

Shane Hix Director of Public Affairs

*As of October 2017


ANNUAL REPORT 2017

Georgia Environmental Finance Authority 233 Peachtree St NE Ste 900 Atlanta, GA 30303 404-584-1000 404-584-1069

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Profile for Georgia Environmental Finance Authority (GEFA)

GEFA 2017 Annual Report  

GEFA’s financing programs, which enable the protection of Georgia’s energy, land and water resources, impact millions of Georgians daily. GE...

GEFA 2017 Annual Report  

GEFA’s financing programs, which enable the protection of Georgia’s energy, land and water resources, impact millions of Georgians daily. GE...

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