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):  

           Ending   Amounts due
Governmental Activities   Balance   Additions   Reductions   Balance   within one year
Bonds:
General Obligation $16,402,537 2,843,375 1,851,290 17,394,622 1,291,350
Transportation 4,089,540 839,770 409,620 4,519,690 270,550
20,492,077 3,683,145 2,260,910 21,914,312 1,561,900
Plus/(Less) Premiums 1,417,172 442,335 187303 1,672,204 175,465
Total Bonds 21,909,249 4,125,480 2448213 23586516 1737365
Long-Term Notes 520,275 - 167,690 352,585 167,690
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 -
Compensated Absences 499,004 47,822 35,435 511,391 42,095
Workers' Compensation 651,184 136,682 103,465 684,401 104,442
Capital Leases 35,368 3,034 6,060 32,342 5,815
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
Business-Type Activities
Revenue Bonds 1,356,779 - 110,097 1,246,681 95,757
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
Compensated Absences 186,090 42464 36,374 192,180 56,977
Federal Loans Payable 103,054 5,563 108,617 - -
Other 350,631 15,130 26,573 339,188 11,377
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):

Long-Term    Balance    Amounts due
Debt    June 30, 2016    within year
Bonds Payable $4,491,234 $315,643
Escrow Deposits 175,401 44,636
Annuities Payable 131,003 8,741
Rate Swap Liability 178,018 -
Net Pension Liability 211,230 -
Other 31,818 776
Total $5,218,704 $369,796

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.