In what could be described as a combination of good and bad news, Norwich has been reinstated on the state's 2015 list of its top 25 Distressed Municipalities , while Montville was removed from the list released by the state Department of Economic and Community Development.

The list, calculated using nine weighted criteria, such as employment, poverty rates, job growth and population, is used to determine eligibility by municipalities for certain state grants, infrastructure improvements and brownfields environmental contamination remediation programs. Listed municipalities also qualify for a 50 percent reimbursement of the property tax revenue lost through manufacturers' equipment property tax exemption programs.

Norwich was removed from the list from 2012 through 2014 — a move that surprised city officials, given the city's low income levels, aging housing stock and other factors that had placed Norwich on the list consistently in prior years.

Kolie Sun, a DECD associate research analyst who compiled the statistics used to calculate the Distressed Municipalities list, said that while many factors remained the same in Norwich, the city's population and employment levels helped drop the city off the list in 2012, and then back on it this year. From 2003 to 2013, Norwich had a gain in employment of 4.6 percent. This year, the city's employment change rate dropped by 0.7 percent. While the unemployment rate of 8.3 percent remained the same, other Connecticut municipalities fared better, jumping Norwich from a ranking of 31st to 18th most distressed.

Montville, which was on the list for the past two years, dropped off, ranking 29th this year. Sun said the biggest factor in removing Montville from the list was a 33.9 percent increase in the town's per-capita income change.

Other southeastern Connecticut municipalities on the distressed list are: New London, Preston, Sprague and Griswold. Groton had been on the list in 2012 and 2013, but dropped off in 2014.

Norwich officials welcomed being restored to the Distressed Municipalities List for the financial assistance it can bring to the city.

Norwich Public Utilities General Manager John Bilda, who also currently is serving as acting city manager, said NPU received state grants to cover the design engineering costs for the $100 million sewage treatment plant upgrade while the city was on the Distressed Municipalities list. When the city was removed, those grants turned into loans.

Now that Norwich is back on the list, Bilda hopes to obtain similar design engineering grants for major upgrades needed for the city drinking water system.

Norwich Human Services Director Lee Ann Gomes said Norwich received state Department of Labor assistance as a distressed city when the Foxwoods Resort Casino had major layoffs several years ago.

Norwich Mayor Deberey Hinchey said while no community wants to be considered distressed, the designation helps the city address real conditions.

“It's a sign of who we are, our slow coming out of the recession, low employment,” Hinchey said. “For that reason, it continually concerns me. But for the fact that it helps us get some economic stimulus money to help get us out of that situation, it's useful. We're at the mercy of the region's economy.”

c.bessette@theday.com

Twitter: @Bessettetheday