2013 Connecticut General Statutes
Title 22a - Environmental Protection
Chapter 446e - Solid Waste Management Services Act
Section 22a-268d - Temporary borrowing from the state to support repayment of debt on behalf of Mid-Connecticut Project. Financial mitigation plan. Reports. Discussions re extensions of municipal contracts. Reporting and examination for term of loans.

(a) The Connecticut Resources Recovery Authority may, with the approval of two-thirds of the appointed directors of the authority at a duly called meeting of said authority, and with the subsequent approval of the State Treasurer and the Secretary of the Office of Policy and Management, borrow temporarily from the state for the purposes of supporting the repayment of debt issued by the authority on behalf of the Mid-Connecticut Project for the fiscal years ending June 30, 2003, and June 30, 2004, an amount not to exceed twenty-two million dollars, in accordance with the provisions of this section, provided the principal and interest from such loan shall be repaid prior to the end of the fiscal year ending June 30, 2012. The Connecticut Resources Recovery Authority may, with the approval of two-thirds of the appointed directors of the authority at a duly-called-for meeting of said authority, and with the subsequent approval of the State Treasurer and the Secretary of the Office of Policy and Management, borrow temporarily from the state for the purposes of supporting the repayment of debt issued by the authority on behalf of the Mid-Connecticut Project for fiscal years subsequent to fiscal year ending June 30, 2004, an amount in the aggregate not to exceed ninety-three million dollars in accordance with the provisions of this section. To the extent possible, as determined by the State Treasurer and the Secretary of the Office of Policy and Management, any loans made pursuant to this section shall be collateralized. Prior to any such borrowing, or the draw-down of an amount pursuant to a master loan agreement entered into between the authority and the state, the authority shall submit to the State Treasurer and the Secretary of the Office of Policy and Management a financial mitigation plan which shall include, but not be limited to, a plan to minimize tipping fees for municipalities that have entered into solid waste disposal services contracts with the authority and any additional information the State Treasurer and the secretary may require. Such financial mitigation plan shall include information detailing the efforts that the authority has made to reduce the amount necessary to borrow from the state, including, but not limited to, the reduction of general administration and costs, renegotiation of vendor contracts, efforts to increase the price paid for the sale of steam or electricity, efforts to assess the viability of the sale of hard assets of the project and an analysis of the staffing levels, performance and qualifications of staff and members of the board of directors. In addition, the authority shall provide the State Treasurer and the secretary with its proposed budget for the ensuing fiscal year, a three-year financial plan, a cash flow analysis showing the need for the current and projected future borrowings, and the most recent certified audit of the authority, on an annual basis. Such loans shall be repaid as provided in a repayment schedule established by the State Treasurer and the secretary and shall bear and pay interest as shall be determined by the State Treasurer in the best interest of the state. The State Treasurer is authorized to establish fixed or variable interest rates for such loans based upon the interest rate of the Short Term Investment Fund or the interest rate of any borrowing by the state that may be required to fund the loans to the authority. The repayments of principal and the interest applicable to any such loans made shall be paid to the State Treasurer in accordance with a repayment plan established by the State Treasurer and the secretary. Such loans shall be subordinate to all bonded indebtedness of the authority.

(b) The Connecticut Resources Recovery Authority shall submit, on a quarterly basis, reports detailing the status of the financial mitigation plan as described in subsection (a) of this section to the State Treasurer, the Secretary of the Office of Policy and Management and to the joint standing committee of the General Assembly having cognizance of matters relating to finance, revenue and bonding.

(c) The Connecticut Resources Recovery Authority shall enter into discussions with municipalities that have entered into solid waste disposal services contracts with the Mid-Connecticut Project to determine the interest of said municipalities in extending these contracts beyond the fiscal year ending June 30, 2012. The Connecticut Resources Recovery Authority shall include the status of these discussions in the quarterly reports required under subsection (b) of this section.

(d) For the term of all loans made to the Connecticut Resources Recovery Authority by the state, the Connecticut Resources Recovery Authority shall be subject to the provisions of section 4-67.

(P.A. 02-46, S. 3; June 30 Sp. Sess. P.A. 03-5, S. 2.)

History: P.A. 02-46 effective April 30, 2002; June 30 Sp. Sess. P.A. 03-5 designated existing provisions as Subsec. (a) and amended said Subsec. by deleting provision re borrowing not to exceed $115,000,000 in the aggregate, adding provisions re borrowing not to exceed $22,000,000 for the fiscal years ending June 30, 2003, and June 30, 2004, with principal and interest repayment prior to end of fiscal year ending June 30, 2012, re borrowing not to exceed $93,000,000 for fiscal years subsequent to fiscal year ending June 30, 2004, re loans made pursuant to section to be collateralized and re analysis of staffing levels, performance and qualifications of staff and board members, replacing provision re submission of financial mitigation plan “for approval by” with provision re submission of said plan “to” the State Treasurer and secretary, and adding provision re providing financial information “on an annual basis”, added Subsec. (b) re quarterly reports, added Subsec. (c) re contract extension discussions with municipalities, and added Subsec. (d) re applicability of Sec. 4-67 for term of loans, effective August 20, 2003.