Final - Massachusetts Water Resources Authority

Dam Projects total project spending decreased by $2.0 million primarily due to revised costestimate for Dam Safety Modifications and Repairs contract.Sudbury/Weston Aqueduct Repairs total project spending decreased by $1.5 million due to arevised schedule for Sudbury Short-Term Repairs Phase 2.Distribution and Pumping: ($11.1) million Weston Aqueduct Supply Mains total project spending in the FY09-13 period decreased by $4.1million primarily due to the actual award amount for Design CA/RI Section 36/WatertownSection/Waltham Connection being less than engineer’s estimate and revised constructionschedule.Lynnfield Pipeline total project spending decreased by $2.6 million due to the actual awardamount for Construction 2 contract being less than originally anticipated. Southern Extra High (SEH) Redundancy and Storage total project spending decreased by $2.4million due to a revised schedule for the final design contract.Other Waterworks: ($26.5) millionLocal Water Pipeline Improvement Program total project spending decreased by $25.7 milliondue to revised cash flows for Community Loan programs.Business and Operations Support:Business and Operations Support spending in the FY09-13 period decreased by $5.7 million.MWRA Facilities Management and Planning total project spending in the FY09-13 perioddecreased by $5.2 million due to deletion of the Marlborough Warehouse Records Center andChelsea Annex from the budget.Alternative Energy Initiatives total project spending decreased by $3.0 million primarily due to anew schedule for Deer Island Future Wind project (formerly named Nut Island Wind).Capital Maintenance and Planning project total project spending increased by $2.8 millionprimarily due to additional phases added for As-Needed Design 9 and 10.Outstanding Debt and Debt ManagementCapital Spending versus Debt ServiceThe $7.4 billion spent on MWRA’s modernization efforts to date, has relied heavily on debtfinancing. Total debt as of June 2011 reached $5.9 billion consisting of senior and subordinateddebt, as well as Tax-Exempt Commercial Paper. The MWRA enjoys strong unenhanced senior debtratings of Aa1, AA+, and AA+ from Moody’s, S&P, and Fitch, respectively.The MWRA expects to finance the capital expenditures identified in the MWRA CIP through theissuance of its revenue bonds as provided in the MWRA Act, and from the proceeds of federal andstate grants and operating revenues. As of June 30, 2011, the MWRA’s indebtedness included $3.47