Notes to the Financial Statements
June 30, 2016
Note 16 Long-Term Debt
The following is a summary of changes in long-term debt of the primary government for the year ended June 30, 2016, (amounts in thousands):
|Governmental Activities||Balance||Additions||Reductions||Balance||within one year|
|Other L/T Liabilities: 1|
|Net Pension Liability (Note 10) 2||26,115,463||6,747,299||5,402,790||27,459,972||-|
|Net OPEB Obligation||8,982,926||1,573,578||628,553||9,927,951||-|
|Claims and Judgments||75,587||3,211||15,949||62,849||31,344|
|Landfill Post Closure Care||35,185||15,177||929||49,433||929|
|Liability on Interest Rate Swaps||3,361||-||1,504||1,857||-|
|Contracts Payable & Other||705||-||-||705||-|
|Total Other Liabilities||36,398,783||8,526,803||6,194,685||38,730,901||184,625|
|Governmental Activities Long-Term|
|Liabilities 2||$58,828,307||$12,652,283||$8,810,588||$62,670,002||$2,089,680||1. In prior years, the General and Transportation funds have been used to liquidate other liabilities.|
|2. The beginning total is restated by the effect of CHFA's reporting the net pension|
|liability on their financial statements as of the December, 2015|
|Plus/(Less) Premiums and Discounts||110,737||-||8,693||102,044||1,486|
|Total Revenue Bonds||1,46,516||-||118,790||1,348,725||97,243|
|Federal Loans Payable||103,054||5,563||108,617||-||-|
|Total Other Liabilities||639,775||63,157||171,564||531,368||68,354|
|Business-Type Long-Term Liabilities||$2,107,291||$63,157||$290,354||$,880,093||$165,597|
The liability for claims and judgments (Governmental Activities) includes a pollution remediation liability of approximately $31.9 million. This liability represents the State's share of the cost of cleaning up certain polluted sites in the state under federal and state superfund regulations. The liability was estimated using the cash flow technique and could change over time due to changes in costs of goods and services, changes in remediation technology, or changes in laws and regulations governing the remediation effort. In addition, there are other polluted sites in the state that require remedial action by the State that will result in additional cleanup costs. The State did not recognize a liability for these costs at year end because it could not be reasonably estimated.
As of June 30, 2016, long-term debt of component units consisted of the following (amounts in thousands):
|Debt||June 30, 2016||within year|
|Rate Swap Liability||178,018||-|
|Net Pension Liability||211,230||-|
Not all component units report net pension liabilities; therefore the net pension liability in the notes is $4,584 higher than in the financial statements.
Landfill Closure and Postclosure Care
Public Act 13-247 and section 99 of Public Act 13-184 required the Materials Innovation and Recycling Authority to transfer all legally required reserves and obligations resulting from the closure of the authority's landfills located in Hartford, Ellington, Waterbury, Wallingford and Shelton to the State Department of Energy and Environmental Protection (DEEP). During the year ended June 30, 2014, the legal transfer of $35.8 million in post closure care obligations and the concurrent transfer of $31.0 million of Authority reserve funds to the State resulting from the closure of landfills was addressed by a memorandum of understanding ("MOU") between the Authority and DEEP.
By the end of the year ended June 30, 2015, all work associated with the closure of the five landfills was completed. Going forward DEEP is required to reimburse the authority for all postclosure care obligations as the five landfills are now certified as closed. All landfill expense reimbursements paid by DEEP totaled $928,683 in FY2016.
GASB Statement No.18 Accounting for Municipal Solid Waste Landfill Closure
and Postclosure Care Cost applies to closure and postclosure care costs that
are paid near or after the date a landfill stops accepting waste. The State
recognizes landfill expenditures and related General Fund liabilities using the
modified accrual basis of accounting. DEEP estimates the State's
landfill liability for closure and postclosure costs based on landfill capacity. Increases or decreases in such estimates are reported as additions or reductions in this line item of the State's
long-term liabilities. The liability for these estimated costs is reduced when the costs are actually paid. Actual costs may be higher than estimated due to inflation or changes in permitted capacity, technology or regulation. As of June 30, 2013, all five of the landfills had no capacity available since 100 percent of their capacity had been used.