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HomeMy WebLinkAbout2006-12-06 TRUCKEE DONNER PUBLIC UTILITY DISTRICT FINANCING CORPORATION Joseph R. Aguera J. Ron Hemig Patricia S. Sutton Tim Taylor William Thomason General Manager Peter L. Holzmeister Special Meeting 7:00 PM, Wednesday, December 6, 2006 (or immediately after the regularly scheduled TDPUD Board meeting) TDPUD Board Room AGENDA 1. Call to order 2. Roll call 3. Public input- This is time set aside for the public to address the Board on any matter not on the agenda. Testimony related to any agendized matter should be addressed at the time that item is considered. BUSINESS ITEM 4. Election of officers 5. Annual Reports and Financial Statements: December 2005 a) Staff report b) Public input c) Board discussion and action ROUTINE BUSINESS 6. Approval of the minutes of December 15, 2004 and October 4, 2006 ADJOURNMENT The agenda is available for review at the TDPUD office and the Truckee branch of the Nevada County Library Pos ed and mailed on December 1, 2006 ( Oy)W �/OLA/ Barbara Cahill, Deputy District Clerk .�j A copy of the agenda packet is available for public review at the district administrative office: 11570 Donner Pass Rd. Public participation is encouraged. The meeting location is accessible to people with disabilities. Every reasonable effort will be made to accommodate participation of the disabled in all of the District's public meetings. If particular accommodations for the disabled are needed (i.e.,disability-related aids,or other services), please contract the Clerk of the Board at(530)582-3909,at least 24 hours in advance of the meeting. TDPUD FINANCING CORPORATION Special Meeting December 6, 2006 The special meeting of the Board of Directors of the Truckee Donner Public Utility District Financing Corporation was called to order at 10:05 PM by Vice President Aguera. ROLL CALL: Directors Joe Aguera, Patricia Sutton, Tim Taylor and William Thomason were present. Director Ron Hemig was absent. EMPLOYEES PRESENT: Mary Chapman, Jessica Wilson, Nancy Waters, Joe Horvath, Steve Hollabaugh, Peter Holzmeister and Barbara Cahill CONSULTANTS PRESENT: Steve Gross OTHERS PRESENT: Christine Stanley, Frank and Juanita Schneider, and Patrick Flora PUBLIC INPUT There was no public input. BUSINESS ITEM ELECTION OF OFFICERS Director Thomason moved, and Director Aguera seconded, that the Board approve Tim F. Taylor as the President of the Financing Corporation. Director Hemig, Absent; All other Directors, aye, by voice vote. SO MOVED. Director Thomason moved, and Director Aguera seconded, that the Board approve Patricia Sutton as the Vice President of the Financing Corporation. Director Hemig, Absent; All other Directors, aye, by voice vote. SO MOVED. Director Sutton moved, and Director Taylor seconded, that the Board approve Mary Chapman as the Secretary/Treasurer of the Financing Corporation. Director Hemig, Absent; All other Directors, aye, by voice vote. SO MOVED. ANNUAL REPORT AND FINANCIAL STATEMENTS: DECEMBER 2005 Mary Chapman provided copies of the: • Refunding Certificates of Participation Series 1996 report as of December 31, 2005 • Certificates of Participation Series 2003A and 2003B report as of December 31, 2005 • Community Facilities Districts: Old Greenwood and Grays Crossing—Fiscal year 2006/07 • Truckee Donner Public Utility District annual audited financial statements for 2005 Director Sutton moved, and Director Taylor seconded, that the Board accept the annual reports for Refunding Certificates of Participation Series— 1996 Annual Report dated December 31, 2005, the Certificates of Participation Series 2003A and 2003E Annual Report dated December 31, 2005 and the 2005 audited Financial Statements. Director Hemig, absent; All other Directors, aye, by voice vote. SO MOVED. 1 Finance Corp Minutes: Dec. 6, 2006 ROUTINE BUSINESS APPROVAL OF THE MINUTES OF DECEMBER 15, 2004 AND OCTOBER 4, 2006 Director Taylor moved, and Director Aguera seconded, that the Board approve minutes of September 20, 2006. ROLL CALL: All Directors, aye, by voice vote. SO MOVED. ADJOURNMENT There being no further business before the Board, the meeting was adjourned at 10:23 PM. 2 Finance Corp Minutes: Dec. 6, 2006 40*0 Agenda Item # Izo Public Utility Disti-ict g, Staff Report To: Board of Directors From: Mary Chapman, Secretary/Treasurer of TDPUD Financing Corporation Date: December 1, 2006 SUBJECT: Annual Reports WHY THIS ITEM IS BEFORE THE BOARD: Routine Business HISTORY: Each year we hold an annual meeting of the Financing Corporation to conduct their business which includes the election of new officers, review and adoption of minutes, receipt and approval of the annual reports from staff on the certificates of participation and now the community facilities districts. We also provide the financing corporation a copy of the annual audit of the Truckee Donner Public Utility District. District staff follows the continuing disclosure requirements in the COP documents. Muni Financial prepares the annual report for the Community Facility District's which are much more onerous because the CFDs relate to special taxes on property. NEW INFORMATION: Attached are: Refunding Certificates of Participation Series 1996 report as of December 31, 2005 Certificates of Participation Series 2003A and 2003B report as of December 31, 2005 Community Facilities Districts: Old Greenwood and Grays Crossing— Fiscal year 2006/07 Truckee Donner Public Utility District annual audited financial statements for 2005 Recommendation: I recommend that the board approve the attached annual reports. TRUCKEE DONNER PUBLIC UTILITY DISTRICT REFUNDING CERTIFICATES OF PARTICIPATION SERIES-1996 ANNUAL REPORT 12/31/2005 ANNUAL REPORT TRUCKEE DONNER PUBLIC UTILITY DISTRICT Water Operations Summary Statement of Historical Operating Results and Debt Service Coverage Years Ending December 31,2002 through 2005 2002 2003 2004 2005 Revenues 6,667,440 $7,624,998 $8,206,358 85758,637 Maintenance and Operation Costs 4,761,448 $5,293,442 $5,861,134 6,052,695 Net Revenues 1,905,992 $2,331,556 $2,345,224 2,705,942 Debt Service(3) 11109,025 $1,108,423 $19100,405 1,109,005 Debt Service Coverage 172% 210% 213% 244% TRUCKEE DONNER PUBLIC UTILITY DISTRICT Water Operations Summary Statement of Projected Operating Results and Debt Service Coverage Years Ending December 31,2006 through 2009 2006 2007 2008 2009 Revenues(l) 8,244,412 $8,409,300 $8,577,486 8,749,036 Maintenance and Operation Costs (2) 6,207,160 $6,393,375 $6,585,176 6,782,731 Net Revenues 29037,252 $2,015,925 $1,9927310 1,966,305 Debt Service(3) 1,111,680 $1,113,305 $1,109,620 15109,620 Debt Service Coverage 183% 181% 180%177% 1) 2006 budget plus 2%annual increase thereafter 2) 2006 budget plus 3%annual increase thereafter 3) Includes the Series 1996 installment payments and Proposition 55 State loan repayments. TRUCKEE DONNER PUBLIC UTILITY DISTRICT Water System Customers Total Production Commercial Residential Year Million Gallons) Accounts Accounts 2001 1,736 527 81798 2002 211198 555 101341 2003 21208 573 105632 2004 23424 588 10,915 2005 2,206 633 111284 The five largest water system customers in the District for the 12-month billing period ended December 31, 2005 are set forth below. The five largest users in the District accounted for 3.49% of the Water System's gross revenues for 2005. The total amount of water sales in 2005 was $7,454,123. TRUCKEE DONNER PUBLIC UTILITY DISTRICT Five Largest Water System Customers as of 12/31/05 of Total Customer/Account Total Usaize/Gallons Total Sales Water Revenues Tahoe Mountain Club— Old Greenwood 11094935610 50,513 0.71% Coyote Moon Golf Course 65061253 377736 0.65% Tahoe Donner Association 349444,057 995153 1.62% Truckee Tahoe Unified School District 195619,630 315704 0.45% Coachland Mobile Home Park 13,225,000 24,673 0.45% Rates and Charges The District currently recovers the cost of the Water System operation, maintenance and and replacement and capital expansion through a user fee system. The components of the user fees currently imposed by the District are: 1 Water sales (charges which are divided into rates for residential and commercial property). 2 Stand-by water availability charges. 3 Connection charges and facilities fees. 4 Miscellaneous fees and charges. TRUCKEE DONNER PUBLIC UTILITY DISTRICT CERTIFICATES OF PARTICIPATION SERIES 2003A AND 2003B ANNUAL REPORT 12/31/2005 TRUCKEE DONNER PUBLIC UTILITY DISTRICT History of Electric Service Charges February January January March March 2002 2003 2004 2005 2006 Domestic Electric Rates: Permanent Residents Customer Charge: per month 4. 00 4. 50 5. 00 5. 84 6. 13 Energy Charge per kilowatt- hour 0. 09963 0. 10869 0. 11400 0. 11400 $ 0. 12000 Domestic Electric Rates: Non- Permanent Residents Customer Charge: per month 4. 00 4. 50 5. 00 5. 84 6. 13 Energy Charge per kilowatt- hour 0. 11348 0. 12381 0. 13000 0. 13000 $ 0. 13700 Small Commercial Rates: Commercial Customers with monthly demand less than 50 kilowatts Customer Charge: per month 8. 00 8. 73 9. 70 11. 32 11. 89 Energy Charge per kilowatt- hour 0. 11973 0. 13062 0. 13700 0. 13700 $ 0. 14400 Medium Commercial Rates: Commercial Customers with monthly demand less than 50kW and less than 200kW Customer Charge`. per month 80. 00 87. 25 96. 85 113. 04 118. 69 Energy Charge per kilowatt- hour 0. 07176 0. 07729 0. 08110 0. 08110 $ 0. 08520 Demand Charge per kilowatt of demand 9. 77 10. 58 11. 11 11. 11 11. 67 Large Commercial Rates: Commercial Customers with monthly demand greater than 200kW Customer Charge: per month 350. 00 382. 00 425. 00 495. 83 520. 62 Energy Charge per kilowatt- hour 0. 07291 0. 07954 0. 08350 0. 08350 $ 0. 08770 Demand Charge per kilowatt of demand 9. 27 10. 11 10. 62 10. 62 11. 15 i TRUCKEE DONNER PUBLIC UTILITY DISTRICT Electric System Connection Charges and Facilities Fees For 200 amp Service as of March 20, 2006 Connection Facilities Size and Type of Service Charge Fees Three Wire Overhead Temporary Actual Cost Permanent connection to structure 1, 212 1, 260 Temporary connection to pole and transfer to structure 1, 489 Three Wire Underground ( overhead transformer) Permanent connection to structure 1, 212 1, 260 Temporary connection to pole and transfer to structure 1, 489 Three Wire Underground ( padmount transformer) Permanent connection to structure 1, 212 1, 260 Temporary connection to pole and transfer to structure 1, 489 i I6 t}T t F TRUCKEE DONNER PUBLIC UTILITY DISTRICT Electric System Customers, Sales, Revenues and Demand 2001 2002 2003 2004 2005 Number of Customers: 10, 238 10, 424 10, 691 10, 726 11, 082 Residential Commercial and Other 1, 203 1, 273 1, 392 1, 485 1, 6 Total Customers 11, 441 111697 12, 083 12, 211 12, 684 Kilowatt- Hour( kWh) Sales: Residential 65, 014, 735 68, 041, 548 66, 271, 709 69, 818, 294 70, 072, 056 Commercial and Other 57, 467, 440 58, 837, 235 60, 307, 969 65, 434, 701 66, 266, 816 Total kWh Sales 122, 482, 175 126, 878, 783 126, 579, 678 135, 252, 995 136, 338, 872 Revenues from Sale of Energy: Residential 5, 522, 632 7, 579, 083 8, 119, 198 9, 004, 185 9, 171, 600 Commercial and Other 4, 672, 587 6, 337, 757 7, 163, 712 8, 171, 764 8, 369, 493 Total Revenues from Sale of Energy 10, 195, 219 13, 916, 840 15, 282, 910 17, 175, 949 17, 541, 093 Peak Demand ( kW) 29, 040 30, 245 32, 291 32, 235 32, 179 E Ef jf[Y TRUCKEE DONNER PUBLIC UTILITY DISTRICT Electric System Largest Electric Customers- 2005 12 Months Customer Type of Business KWh Sold Electrical Billings District Water Department( 1)( 2) Water Utility 11, 070, 472 1, 375, 255 6, 512, 309 688, 153 Tahoe Truckee Sanitation Agency( 2) Sewer Plant 472, 640 Tahoe Forest Hospital( 2) Hospital 4, 244, 638 58, 062 3 168 862 Tahoe Truckee Unified School District( 2) Education 2 3 8, 062 Safeway Stores Grocery Store 2, 122, 200 748 1) Represents pumping charges incurred by District water system 2) Denotes customers with multiple meters and service locations. The kWh sold and electrical billings are a sum of all customer' s meter locations I TRUCKEE DONNER PUBLIC UTILITY DISTRICT Electric System- Summary of Historical Net Revenues and Selected Balance Sheet Information 2001 2002 2003 2004 2005 Revenues( l) 9, Sales to Customers 759, 286 12, 891, 095 14, 256, 511 15, 689, 878 16, 317, 900 Consumer electric refund ( 2) 0 0 0 0 Interdivisional Sales ( 3) 923, 640 1, 420, 193 1, 566, 049 1, 412, 884 1, 329, 356 39, 333 24, 015 22, 827 24, 420 22, 540 Standby Charges 481, 723 Facilities Fees( 4) 77, 694 128, 329 509, 347 282, 829 172, 188 167, 242 206, 664 466, 841 426, 454 Other( 5) 266, 750 Income from Investments 158, 809 174, 472 75, 373 70, 471 11, 130, 950 14, 805, 346 16, 636, 771 17, 947, 323 18, 844, 732 Total Revenues 0 2, 024, OE2 ( 13) 0 0 0 Rate Stabilization Fund Transfer ( 6) 844, 732 Total Adjusted Revenues 11, 130, 950 16, 829, 408 ( 13) $ 16, 636, 771 17, 947, 323 18, Operations and Maintenance Costs ( 7) Power Purchases 3, 986, 550 11, 093, 289 7, 497, 730 ( 14) $ 8, 269, 483 8, 279, 662 1, 501, 714 1, 955, 759 1, 624, 574 1, 906, 348 2, 231, 024 Operations and Maintenance Administrative and General 1, 612, 485 1, 946, 205 1, 540, 878 1, 693, 424 1, 937, 050 Consumer Services ( s) 599, 315 485, 335 503, 452 586, 803 548, 978 35, 282 43, 142 36, 791 49, 065 56, 674 Interest Expense ( 9) 053, 388 Total Operation and Maintenance Costs 7, 735, 346 15, 523, 730 11, 203, 425 12, 505, 123 13, Adjusted Net Revenues/ Funds Available for Service 3, 395, 604 1, 305, 678 5, 433, 346 5, 442, 200 5, 791, 344 Debt Sery Debt Service is 266, 543 255, 225 1, 107, 682 2, 853, 354 3, 443, 550 1. 91 1. 68 Debt Service Coverage ( 11) 12. 74 5. 12 4. 91 Selected Balance Sheet Information Fund Balances( December 31): General Fund 225, 829 2, 113, 904 3, 706, 328 5, 387, 507 6, 615, 006 2, 448, 281 424, 219 434, 013 440, 870 452, 512 Rate Stabilization Fund Balance 067, 518 Total Fund Balances 2, 674, 110 2, 538, 123 4, 140, 341 5, 828, 377 7, 13, 288, 280 13, 843, 605 15, 726, 184 14, 923, 885 18, 099, 649 Net Plant in Service 714, 371 Construction Work in Progress 1, 844, 911 1, 660, 776 3, 555, 097 4, 933, 875 2, Net Electric Utility Plant( 12) 15, 133, 191 15, 504, 381 19, 281, 281 19, 857, 760 20, 814, 020 TRUCKEE DONNER PUBLIC UTILITY DISTRICT Electric System- Summary of Historical Net Revenues and Selected Balance Sheet Information 1) Excludes Connection Charges. See" Rates and Charges" above. 2) Represents an 11% credit to customers that was discontinued in 2000. See Rates and Charges" above. 3) Represents pumping charges to District water system and interdepartmental rent charged to the water department for use of the District Administrative Building which was financed by the Electric System. 4) Facilities Fees are charged to applicants for new service to cover the costs of infrastructure needed to meet the additional system demand. See" Rates and Charges" above. 5) Represents service transfer charges, late payment fees, building room rentals and miscellaneous receipts. 6) The Rate Stabilization Fund is used to mitigate rate increases. Pursuant to the Installment Purchase Agreement, Adjusted Revenues for coverage purposes include the amounts the District has authorized to be deposited in the Revenue Fund from the Rate Stabilization Fund pay Operation and Maintenance Costs and/ or Debt Service. See" SECURITY AND SOURCES OF PAYMENT FOR THE 2003 CERTIFICATES-- Defined Terms "-- Rate--Rate Covenant herein. 7) Excludes depreciation and amortization. 8) Includes all customer service, billing activity and customer information expenses. 9) Excludes interest on the 2003A/ B Certificates which are shown in the debt service below. 10) Represents Debt Service on the District' s 2003 A/ B Electric Certificates of Participation for the Purchased Power Contract buy- out with IDACORP Energy L. P. 11) Adjusted Net Revenues divided by Debt Service. 12) Prior to 2001 contributed capital was applied to reduce the cost of the assets funded and booked either as a reduction of Plant Serving Customers or Funds received for Construction of Facilities. Beginning in 2001 such amounts are treated as revenues and new plant is recorded as an asset in the amount of the full acquisition cost. 13) The District funded a portion of its Electric System expenses from the Rate Stabilization Fund in 2002. Additional rate increases have been implemented for 2003 and 2004. See Rates and Charges above. 14) Exclusive of$ 26 million Settlement Obligation which is a one- time expense relating to the termination of the Prior Agreements( see" THE TRANSACTION" herein) which was accrued as of December 31, 2002 but will be funded from proceeds of the 2003 Certificates in the Fiscal Year ended December 31, 2003. F 7777777= 7777777 77_ 7 77777 2, US-- le. KEvil Woo! 7 "' i A" j". wv,: m a lM" j:" F TY16 5jaylew 019. 0. 0 W 0- ok, No QWMAE Was nor 10" Ngw 1 T nwa 20, ME. y- np4amm MR' w 04 NO, Moo 19 Q Q M_- Nang JIN pug Z- 4 f N W- 1 Vol, Ak Ppl, T T WON Ao' moil, 00* w wl,,,' I'l_' l gH' I." AN OU AF, K 14 U rv: FF WW WA- 1, g gyms p' R All w W;- Q s7" IWI p Zz aws man RA 10% Q—"' W" WN ANNw— 1`4 q, Y Wag, V N,, g got B" s Emu No, IN I toy & W 14A R MONWo gw_ TWA v. Jw__— AwQMf I-, 1- 1"-, ty-,,-,, l llm,.: D 0"' m 4 UIP" 4 NwElill, low V K TRUCKEE DONNER PUD COMMUNITY FACILITIES DISTRICTS FISCAL YEAR 2006/07 ANNUAL REPORT OCTOBER 2006 MMuniFinancial Fiscal Year 2006107 Annual Report Truckee Donner PUD Community Facilities District No. 03.1 (Old Greenwood) DISTRICT PARTICIPANTS i i A i a • u. Muni handal CFD 03-1 (Old Greenwood) Page 1 of 1 Fiscal Year 2006107 Annual Report Truckee Donner PUD Community Facilities District No. 03-1 (Old Greenwood) DISTRICT OVERVIEW FISCAL YEAR 2006/07 LEVY AMOUNTS ParcelApplied to County Roll Handbilled/SBE Dollar Parcel Dollar Total Count Amount Count Amount SBE parcels:are-State-assessed properties or State Board of Equalization parcels. SBE parcels are`novapplied,t(Y.--the County Roll however;a form provided by the County was used to submit the charge to the State Board of Equalization. ACCOUNT SUMMARY BOND CALL SUMMARY The following table summarizes bond calls performed during Fiscal Year 2005/06. The outstanding bond amount as of September 3,2006 is $12,335,000.00. Date of unt Source of • w>.. DELINQUENCY SUMMARY Delinquency Summary for All Years DataRecent Fiscal Year With Delinquencies of: 01 : of: li . For a more comprehensive summary,please see the Delinquency Management tab of this report. MuniFiCla Ctal CFD 03-1 (Old Greenwood) Page 1 of 1 Fiscal Year 2006107 Annual Report Truckee Donner PUD Community Facilities District No. 03-1 (Old Greenwood) FRAMEWORK SUMMARY The following table shows formation proceeding information and applicable bond issue information for the District: Formation and Bond Issue Information F SYNTHESIS OF PROCEEDINGS The Mello-Roos Community Facilities Act ("Act") of 1982 came about as a response to the lack of adequate financing for public capital facilities and services in the post-Proposition 13 era. State Legislators Mello and Roos sponsored this Bill,which was enacted into law by the California Legislature and is now Sections 53311 through 53363 of the California Government Code. The Act authorizes a local governmental agency, such as a school district or city, to form a Community Facilities District ("CFD") within a defined set of boundaries for the purposes of providing public facilities and services. A CFD is formed for financing purposes only, and is governed by the agency that formed it. BOUNDARIES The District consists of approximately 616.2 gross acres located south of Interstate 80 in the eastern portion of the Town of Truckee, California. The District has an irregular shape with mostly level topography. Please see the District Diagram tab for the specific boundaries of the district. SlYluniFinancial CFD 03-1 (Old Greenwood) Page 1 of 4 Fiscal Year 2006107 Annual Report THE BONDS The Bonds are subject to Mandatory Redemption prior to their stated maturities on any Interest Payment Date from the proceeds of prepayments of Special Taxes, in whole or in part (in integral multiples of $5,000), at a redemption price set forth below, together with accrued interest thereon to the date fixed for redemption. Redemption Dates Redemption Prices The bonds are subject to Optional Redemption from sources of funds other than prepayments of the Special Tax prior to their stated maturity as a whole, or in part (in integral multiples of$5,000), in order of maturity selected by the District and by lot within a maturity on any Interest Payment date, at the redemption price as set forth below. Y s The Bonds maturing on September 1, 2022 are subject to mandatory sinking payment redemption in part on September 1, 2021, and on each September 1 thereafter to maturity, by lot, at a redemption price equal to the principal amount thereof to be redeemed,together with accrued interest to the date fixed for redemption, without premium, from sinking fund payments as follows: Rederription Date (September 1)Principal Ai Final Maturity The Bonds maturing on September 1, 2028 are subject to mandatory sinking payments redemption in part on September 1, 2023, and on each "September 1 thereafter to maturity, by lot, at a redemption price equal to the principal amount thereof to be redeemed, together with accrued interest to the date fixed for redemption,without premium, from sinking fund payments a follows. Redemption Date (September 1)Principal Amount Final Maturity MuniFinwcial CFD 03-1 (Old Greenwood) Page 2 of 4 Fiscal Year 2006107 Annual Report The Bonds maturing on September 1, 2033 are subject to mandatory sinking payments redemption in part on September 1, 2029, and on each September 1 thereafter to maturity, by lot, at a redemption price equal to the principal amount thereof to be redeemed, together with accrued interest to the date fixed for redemption,without premium, from sinking fund payments a follows. Redemption Date (September-11),Principal Amount Final Maturity The amounts in the foregoing table shall be reduced pro rata ny the principal amount of all Term Bonds which are redeemed as a result of any prior partial redemption of Term Bonds. COVENANT FOR JUDICIAL FORECLOSURE The District has covenanted to commence judicial foreclosure proceedings against all parcels where the aggregate delinquent Special Taxes on such parcels is greater than $7,500 by the October 1 following the close of each Fiscal year in which such Special Taxes were due. The District will commence judicial foreclosure proceedings against all parcels with delinquent Special Taxes by the October 1 following the close of each Fiscal Year in which it receives Special Taxes in an amount which is less than 95% of the total Special Tax levied for such Fiscal year. The District will diligently pursue such foreclosure proceedings until the delinquent special taxes are paid. The District may elect to defer foreclosure proceedings on any parcel which is owned by a delinquent property owner whose property is not, in the aggregate, delinquent in the payment for a period of three years or more or in an amount in excess of$12,000 so long as the amount in the Reserve Account of the Special Tax Fund is at lest equal to the Reserve Requirement, and the District is not in default in the payment of the principal of or interest on the Bonds. FINANCED FACILITIES The Facilities authorized to be acquired by the District with the proceeds of the Bonds consist of various public improvements including water facilities, electrical facilities, fiber which includes fiber optic cables and conduits,roadways,and storm drain facilities. The facilities include certain real or other tangible property to serve the area located within the CFD, including all furnishings, equipment and appurtenances related thereto Financed facilities include acquisition or construction of the following public improvements: water InMuniFinc-rlcial CFD 03-1 (Old Greenwood) Page 3 of 4 Fiscal Year 2006107 Annual Report supply and distribution and fire suppression; electrical supply and distribution facilities; public roadways including but not limited to medians, curbs, gutters, sidewalks, traffic signals, street signage, street lighting,pavement striping and any associated landscaping and erosion control; public access parks and trails; storm drains and flood control facilities; telephone and telecommunications facilities; any other public improvements identified in accordance with the Development Agreement between the Truckee Donner Public Utility District and Old Greenwood, LLC pertaining to the Old Greenwood development project. As well as any soft cost associated with the design and construction of the above described improvements including but not limited to engineering, environmental review, inspection, surveying and staking, and environmental mitigation. MuniFinc-mcial CFD 03-1 (Old Greenwood) Page 4 of 4 Fiscal Year 2006107 Annual Report g TRUCKEE DONNER PUBLIC UTILITY DISTRICT COMMUNITY FACILITIES DISTRICT NO. 03-1 (OLD GREENWOOD) RATE AND METHOD OF APPORTIONMENT MAXIMUM SPECIAL TAX Single Family Detached Property The Maximum Special Tax for Single Family Detached Property in Zone 1 for Fiscal Year 2004- 05 was $3,000 per SFD Lot. The Maximum Special Tax for Single Family Detached Property in Zone 2 for Fiscal Year 2004-05 was $3,400 per SFD Lot. On July 1, 2005 and on each July 1 thereafter, these Maximum Special Tax rates shall be increased by an amount equal to two percent (2%) of the amount in effect for the prior Fiscal Year. Single Family Attached Property The Maximum Special Tax for Single Family Attached Property in Zone 1 for Fiscal Year 2004- 05 was $3,000 per Unit. The Maximum Special Tax for Single Family Attached Property in Zone 2 for Fiscal Year 2004-05 was $3,400 per Unit. On July 1, 2005 and on each July 1 thereafter, these Maximum Special Tax rates shall be increased by an amount equal to two percent (2%) of the amount in effect for the prior Fiscal Year. Taxable Other Property The Maximum Special Tax for Taxable Other Property shall be the amount needed on a per- acre basis to maintain the Maximum Special Tax that was assigned to the Parcel prior to the Parcel becoming Taxable Other Property. After the Maximum Special Tax has been determined for a Parcel of Taxable Other Property, the Maximum Special Tax shall be increased each Fiscal Year thereafter by an amount equal to two percent (2%) of the amount in effect the prior Fiscal Year. Undeveloped Property The Maximum Special Tax for Undeveloped Property for Fiscal Year 2004-05 was $11,325 per Acre. On July 1, 2005 and on each July 1 thereafter, this Maximum Special Tax shall be increased by an amount equal to two percent (2%) of the amount in effect for the prior Fiscal Year. Pursuant to Section 53321 (d) of the Act, the Special Tax levied against a Parcel used for private residential purposes shall under no circumstances increase more than ten percent (10%) as a consequence of delinquency or default by the owner of any other Parcel or Parcels and shall, in no event, exceed the Maximum Special Tax in effect for the Fiscal Year in which the Special Tax is being levied. MuniFinanCial CFD 03-1 (Old Greenwood) Page 1 of 3 Fiscal Year 2006/07 Annual Report 1 BACK-UP FORMULA The Maximum Special Taxes set forth above were calculated based on the Expected Land Uses at CFD Formation. The Administrator shall review Tentative Map revisions and other changes to the land uses proposed within the CFD and compare the revised land uses to the Expected Land Uses to evaluate the impact on the Expected Maximum Special Tax Revenues. In addition, the Administrator shall review Final Maps to ensure they reflect the number of residential lots that was anticipated in the Tentative Map. If, prior to the Final Bond Sale, a change to the Expected Land Uses is proposed that will result in a reduction in the Expected Maximum Special Tax Revenues,no action will be needed as long as the reduction in Expected Maximum Special Tax Revenues does not reduce debt service coverage on outstanding Bonds below the amount committed to in the Bond documents. If a Land Use/Entitlement Change is proposed after the Final Bond Sale, the following steps shall be applied: Step 1: By reference to Attachment 1, the Administrator shall identify the Expected Maximum Special Tax Revenues for CFD No. 03-1; Step 2: The Administrator shall calculate the Maximum Special Tax revenues that could be collected from property in the CFD if Land Use/Entitlement Change is approved; Step 3: If the amount determined in Step 2 is higher than that calculated in Step 1, the Land Use/Entitlement Change may be approved without further action. If the revenues calculated in Step 2 are less than those calculated in Step 1, and if. a) The landowner does not withdraw the request for the Land Use/Entitlement Change that was submitted to the Town; or b) Before approval of the Land Use/Entitlement Change, the landowner requesting the Land Use/Entitlement Change does not prepay a portion of the Special Tax for the CFD in an amount that corresponds to the lost Maximum Special Tax revenue, as determined by applying the steps set forth in Section H below;or c) The Land Use/Entitlement Change proposes that a Parcel of Single Family Detached Property or Single Family Attached Property be developed as another land use (other than Public Property), and the landowner requesting the Change fails to submit a written request to the TDPUD to designate the Parcel as Taxable Other Property, thereby maintaining the Expected Maximum Special Tax Revenues for the Parcel; then, the amount of the prepayment determined in Step 3.b shall be allocated on a per-acre basis and included on the next property tax bill for all Assessor's Parcels within the property affected by the Land Use/Entitlement Change. The amount allocated to each Assessor's Parcel shall be added to and, until paid, shall be a part of, the Maximum Special Tax for the Assessor's Parcel. 4 MunlFinancial CFD 03-1 (Old Greenwood) Page 2 of 3 Fiscal Year 2006107 Annual Report If multiple Land Use/Entitlement Changes are proposed at one time (which may include approval of multiple Final Maps at one time), the Administrator may consider the combined effect of all the Changes to determine if there is a reduction in Expected Maximum Special Tax Revenues that necessitates implementation of Step 3.b or 3.c. If, based on this analysis, the Administrator determines that there is a reduction in Expected Maximum Special Tax Revenue, and all of the Land Use/Entitlement Changes are being proposed by the same land owner, the Administrator shall determine the required prepayment (pursuant to Step 3.b) by analyzing the combined impact of all of the proposed Land Use/Entitlement Changes. If the Administrator analyzes the combined impact, and the Town subsequently does not approve one or more of the Land Use/Entitlement Changes that was proposed, the Administrator shall once again apply the three steps set forth above to determine the combined impact of those Land Use/Entitlement Changes that were approved simultaneously by the Town. If, based on the comprehensive analysis, the Administrator determines that there is a reduction in Expected Maximum Special Tax Revenue, and the Land Use/Entitlement Changes are not all being proposed by the same land owner, the Administrator shall consider the proposed Land Use/Entitlement Changes individually to determine the required prepayment from each owner. METHOD OF LEVY OF THE SPECIAL TAX Each Fiscal Year, the Administrator shall determine the Special Tax Requirement to be collected in that Fiscal Year,and the Special Tax shall be levied according to the steps outlined below. Step 1: The Special Tax shall be levied Proportionately on each Parcel of Developed Property within the CFD up to 100% of the Maximum Special Tax for each Parcel for such Fiscal Year until the amount levied on Developed Property is equal to the Special Tax Requirement prior to applying any Capitalized Interest that is available in the CFD accounts. Step 2: If additional revenue is needed after Step 1, and after applying Capitalized Interest to the Special Tax Requirement, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property within the CFD, up to 100% of the Maximum Special Tax for Undeveloped Property for such Fiscal Year determined pursuant to Section C; Step 3: If additional revenue is needed after applying the first two steps, the Special Tax shall be levied Proportionately on each Parcel of Association Property within the CFD, up to 100% of the Maximum Special Tax for Undeveloped Property for such Fiscal Year determined pursuant to Section C; Step 4: If additional revenue is needed after applying the first three steps, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Excess Public Property, exclusive of property exempt from the Special Tax pursuant to Section G below,up to 100% of the Maximum Special Tax for Undeveloped Property for such Fiscal Year determined pursuant to Section C. MittliFinnCial CFD 03-1 (Old Greenwood) Page 3 of 3 Truckee Donner PUD Community Facilities District No.03-1 (Old Greenwood) ORIGINAL DEBT SERVICE SCHEDULE Dated Date: 12/22/2003 First Coupon: 3/1/2004 First Maturity: 9/1/2005 Payment Interest B. •CalledPrincipal Due Interest Due Total Annual Payment Due Rate Amount 3/1/2004 0.00 0.00 9/1/2004 2.25000% 0.00 0.00 0.00 0.00 3/1/2005 0.00 0.00 9/1/2005 2.25000% 10,000.00 0.00 10,000.00 10,000.00 3/1/2006 0.00 0.00 9/1/2006 2.50000% 25,000.00 0.00 25,000.00 25,000.00 3/1/2007 360,233.75 360,233.75 9/1/2007 2.80000% 40,000.00 360,233.75 400,233.75 760,467.50 3/1/2008 359,673.75 359,673.75 9/1/2008 3.10000% 55,000.00 359,673.75 414,673.75 774,347.50 3/1/2009 358,821.25 358,821.25 9/1/2009 3,45000% 70,000.00 358,821.25 428,821.25 .787,642.50 3/1/2010 357,613.75 357,613.75 9/1/2010 3.80000% 90,000.00 357,613.75 447,613.75 805,227.50 3/1/2011 355,903.75 355,903.75 9/1/2011 4.15000% 110,000.00 355,903.75 465,903.75 821,807.50 3/1/2012 353,621.25 353,621.25 9/1/2012 4.50000% 130,000.00 353,621.25 483,621.25 837,242.50 3/1/2013 350,696.25 350,696.25 9/1/2013 4.80000% 155,000.00 350,696.25 505,696.25 856,392.50 3/1/2014 346,976.25 346,976.25 9/1/2014 5.00000% 180,000.00 346,976.25 526,976.25 873,952.50 3/1/2015 342,476.25 342,476.25 9/1/2015 5.10000% 205,000.00 342,476.25 547,476.25 889,952.50 3/1/2016 337,248.75 337,248.75 9/1/2016 5.20000% 235,000.00 337,248.75 572,248.75 909,497.50 3/1/2017 331,138.75 331,138.75 9/1/2017 5.30000% 265,000.00 331,138.75 596,138.75 927,277.50 3/1/2018 324,116.25 324,116.25 9/1/2018 5.45000% 295,000.00 324,116.25 619,116.25 943,232.50 3/1/2019 316,077.50 316,077.50 9/1/2019 5.60000% 330,000.00 316,077.50 646,077.50 962,155.00 3/1/2020 306,837.50 306,837.50 9/1/2020 5.70000% 5,000.00 365,000.00 306,837.50 671,837.50 978,675.00 3/1/2021 296,435.00 296,435.00 9/1/2021 5.90000% 5,000.00 405,000.00 296,435.00 701,435.00 997,870.00 3/1/2022 284,487.50 284,487.50 9/1/2022 5.90000% 5,000.00 450,000.00 284,487.50 734,487.50 1,018,975.00 3/1/2023 271,212.50 271,212.50 9/1/2023 6.00000% 5,000.00 500,000.00 271,212.50 771,212.50 1,042,425.00 3/1/2024 256,212.50 256,212.50 9/1/2024 6.00000% 5,000.00 550,000.00 256,212.50 806,212.50 1,062,425.00 3/1/2025 239,712.50 239,712.50 9/1/2025 6.00000% 5,000.00 605,000.00 239,712.50 844,712.50 1,084,425.00 3/1/2026 221,562.50 221,562.50 9/1/2026 6.00000% 5,000.00 660,000.00 221,562.50 881,562.50 1,103,125.00 3/1/2027 201,762.50 201,762.50 9/1/2027 6.00000% 5,000.00 725,000.00 201,762.50 926,762.50 1,128,525.00 3/1/2028 180,012.50 180,012.50 9/1/2028 6.00000% 5,000.00 790,000.00 180,012.50 970,012.50 1,150,025.00 3/1/2029 156,312.50 156,312.50 9/1/2029 6.10000% 5,000.00 860,000.00 156,312.50 1,016,312.50 1,172,625.00 3/1/2030 130,082.50 130,082.50 9/1/2030 6.10000% 5,000.00 940,000.00 130,082.50 1,070,082.50 1,200,165.00 3/1/2031 101,412.50 101,412.50 9/1/2031 6.10000% 5,000.00 1,020,000.00 101,412.50 1,121,412.50 1,222,825.00 3/1/2032 70,302.50 70,302.50 9/1/2032 6.10000% 5,000.00 1,110,000.00 70,302.50 1,180,302.50 1,250,605.00 3/1/2033 36,447.50 36,447.50 9/1/2033 6.10000% 10,000.00 1,195,000.00 36,447.50 1,231,447.50 1,267,895.00 t l{ I t l i 4 t l{E I f E{ t i f I f outstanding Principal 12,335,000.0 Matured Principal 35,000.0 Called Principal 75,000.0 Total Bond issue 12,445,000.0 MuniFinancial Fiscal Year 2006/07 Annual Report Page 1 of 1 Fiscal Year 2006107 Annual Report tR s 5 1 all a U. a i q le qC i Jill lfill 49UK ALUM i'11R Sl 00 raw w s u uw w V k d bs8 N F4 aLtv s = F t x ^S 5 93 7^ SIMuniFinancial CFD 03-1 (Old Greenwood) Page 1 of 1 Fiscal Year 2006107 Annual Report Truckee Donner PUD Community Facilities District No. 03-1 (Old Greenwood) DELINQUENCY MANAGEMENT SUMMARY MuniFinancial has performed the following Delinquency Monitoring Actions since July 1, 2005. Action Date Performedt •Parcels h NOTES: REMINDER LETTER u Reminds property owner that the special assessment has not been paid, and should be redeemed with the County. DEMAND LETTER Allows property owner to redeem the delinquent amount with the County. However, this letter informs the property owner that the Agency will be stripping the delinquent amount from the County Secured Property Tax Roll, and will pursue Foreclosure actions, if the amount is not paid. HANDBILL INVOICE Reminds property owner that the special assessment has not been paid, and should be redeemed with the Agency. PAYMENT PLAN Repayment schedule negotiated by MuniFinancial on behalf of the Agency to cure the delinquency and avoid initiation of judicial foreclosure on installments removed from the Tax Roll. MuniFir mcia! CFD 03-1 (Old Greenwood) Page 1 of 2 Fiscal Year 2006107 Annual Report SB 1471 Represents a document recorded at the County Recorder's Office which provides constructive notice to interested parties that a delinquency may exist in a specific Agency's District for specific parcel(s),in specific tax year(s), that the Agency intends to remove from the Tax Roll for collection by the Agency, or by one of its agents; either by direct billing, or through the judicial foreclosure process. STRIP REQUEST The delinquent amount requested to be removed from the County Secured Property Tax Roll. STRIP CONFIRMATION The delinquent amount is confirmed removed from the County Secured Property Tax Roll. FORECLOSURE COMPLETE Foreclosure satisfied and subsequent foreclosure fee invoiced to agency. FORECLOSURE LETTER Informs the property owner that if the delinquent amount is not paid directly to the Agency within 21 days of receipt of the letter, Foreclosure Actions will be pursued. FORECLOSURE REQUEST All remaining delinquent parcels are forwarded to a Foreclosure Attorney. Please note that Delinquency Actions are performed on an installment basis and not on a per parcel basis. ZMuniFinwcial CFD 03-1 (Old Greenwood) Page 2 of 2 DELINQUENCY SUMMARY BY DISTRICT Truckee Donner PUD Community Facilities District No. 03- 1 ( Old Greenwood) r DOLLARS r • DOLLARS PARCELS PARCELS DATA ri LEVIED DELINQUENT DELINQUENT LEVIED DELINQUENT ri TE 2005/ 06- 1 387, 609. 17 3, 060. 00 0. 79% 1411 2 05/ 15/ 2006 2005/ 06- 2 387, 609. 17 3, 060. 00 0. 79% 148 2 05/ 15/ 2006 TOTAL 775, 218. 34 6, 120. 00 0. 79% Calculations performed on 9/ 14/ 2006 10: 51: OOPM Covenant for Judicial Foreclosure The District has covenanted to commence judicial foreclosure proceedings against all parcels where the aggregate delinquent Special Taxes on sucl parcels is greater than$ 7, 500 by the October 1 following the close of each Fiscal year in which such Special Taxes were due. The District will commence judicial foreclosure proceedings against all parcels with delinquent Special Taxes by the October 1 following the close o each Fiscal Year in which it receives Special Taxes in an amount which is less than 95% of the total Special Tax levied for such Fiscal year. The District will diligently pursue such foreclosure proceedings until the delinquent special taxes are paid. The District may elect to defer foreclosur. proceedings on any parcel which is owned by a delinquent property owner whose property is not, in the aggregate, delinquent in the payment for period of three years or more or in an amount in excess of $ 12, 000 so long as the amount in the Reserve Account of the Special Tax Fund is at lest equa to the Reserve Requirement, and the District is not in default in the payment of the principal of or interest on the Bonds. i i 4 E Z urniFinancial Printed on: September 15, 2006 at 2: 06 pm Page 1 of 1 Fiscal Year 2006107 Annual Report Truckee Donner PUD Community Facilities District No. 03.1 (Old Greenwood) SPECIAL TAX RATES SPECIAL TAX SPREAD The following table summarizes the number of parcels in each land use category according to its' square footage as well as the applied special tax rate for each category. FY 11 . t 7 FY 2006/07 Land Use ClassificationApplied Dollars MAXIMUM AND APPLIED SPECIAL TAX RATES The following table summarizes the percent of the Applied Special Tax Rate to the Maximum Special Tax Rate. FY 11 ./ 1 11 . i Land Use ClassificationApplied- • Rate Rate/Parcel APPLIED SPECIAL TAX PROGRESSION The following table summarizes the percent change of Fiscal Year 2006/07 Applied Special Tax Rate as compared to Fiscal Year 2005/06 Applied Special Tax Rate. FY 11 . 1 11 1 . Percent Rate/ParcelLandUseClassificationAppliedTaxAppliedTaxChangeFrom li i . MuniFinancial CFD 03-1 (Old Greenwood) Page 1 of 1 Truckee Donner PUD 2006/07 Budget Worksheet Community Facilities District No.03-1 (Old Greenwood) Fund Number 608 Levy Components 0i 0. 2006107 PRINCIPAL Principal 25,000.00 40,000.00 Interest 725,597.50 720,467.50 TOTAL 750,597.50 760,467.50 ADMINISTRATION COSTS Agency Administration 0.00 0.00 Finance Manager 0.00 0.00 Accounting Staff 4,000.00 5,000.00 Engineering Staff 0.00 0.00 City Manager Staff 0.00 0.00 Other Staff 0.00 0.00 Agency Auditor Fees 1,500.00 1,500.00 Attorney Fees 0.00 0.00 Office Expenses,Paid by Agency 30.00 30.00 Other Expenses, Paid by Agency 0.00 0.00 Total Agency Staff and Expenses 5,530.00 6,530.00 County Auditor and Assessor Fees 162.16 162.16 Registrar/Transfer/Paying Agent Fees 3,000.00 3,175.00 Consulting Services(1) 8,600.00 10,350.00 Consulting Expenses 1,000.00 500.00 y TOTAL 18,292.16 20,717.16 Total Principal,Interest and Admin Costs 768,889.66 781,184.66 ADJUSTMENTS APPLIED TO LEVY Reserve Fund Credit 0.00 0.00 Special Tax Fund Credit 17,171.31) 41,100.00) Replenishment/(Credit) 0.00 0.00 Reserve For Future DQs 23,500.00 23,000.00 Capitalized Interest Credit 0.00 0.00 Miscellaneous/Adjustment Credit 0.00 0.00 TOTAL 6,328.69 18,100.00) TOTAL Total Charge 775,218.35 763,084.66 Applied Charge 775,218.34 763,084.62 Difference(due to rounding)(2) 0.01 0.04 ADDITIONAL i- i Number of Active Parcels 159 0 Number of Parcels Levied 148 179 Admin Costs as a percent of Annual Levy 2.36% 2.71% 1) Consulting services include,but are not limited to:District Administration Fees,Arbitrage Rebate Calculation Fees and Municipal Disclosure Fees. 2) The Difference is used to ensure that each parcel's levy amount is divisible by two, as required by the County Auditor-Controller. Truckee Donner PUD Community Facilities District No. 03- 1 ( Old Greenwood) Charge Detail Report ( Sorted by Assessor' s Parcel Number; 19- 720- 07- 000 OLD GREENWOOD LLC N/ A 55, 813. 00 415, 024. 00 470, 837. 00 $ 3, 121. 20 3, 121. 20 19- 720- 08- 000 OLD GREENWOOD LLC N/ A 64, 342. 00 320, 168. 00 384, 510. 00 3, 121. 20 3, 121. 20 19- 720- 09- 000 OLD GREENWOOD LLC N/ A 51, 493. 00 274, 067. 00 325, 560. 00 3, 121. 20 3, 121. 20 19- 720- 10- 000 OLD GREENWOOD LLC N/ A 49, 388. 00 415, 024. 00 464, 412. 00 3, 121. 20 3, 121. 20 N/ A 99, 412. 00 0. 00 99, 412. 00 24, 761. 52 24, 761. 52 19- 730- 06- 000 OLD GREENWOOD LLC N/ A 79, 401. 00 1, 326, 000. 00 1, 405, 401. 00 3, 537. 36 3, 537. 36 19- 730- 10- 000 OLD GREENWOOD LLC ETAL 19- 730- 11- 000 ROGINA DAVID J& CAROLYN TRSTES ETAL N/ A 364, 201. 00 1, 105, 949. 00 1, 0, 1 3, 537. 36 3, 537. 36 19- 730- 12- 000 OLD GREENWOOD LLC ETAL N/ A 356, 028. 00 1, 244, 163. 00 1, 600, 191. 00 1. 00 3, 537. 36 3, 537. 36 19- 730- 13- 000 OLD GREENWOOD LLC ETAL N/ A 371, 760. 00 1, 130, 242. 00 1, 502, 002. 00 3, 537. 36 3, 537. 36 19- 730- 14- 000 OLD GREENWOOD LLC ETAL N/ A 358, 504. 00 1, 254, 422. 00 1, 612, 926. 00 3, 537. 36 3, 537. 36 19- 730- 15- 000 WHITE WILLIAM ETAL N/ A 373, 200. 00 1, 132, 218. 00 1, 505, 418. 00 3, 537. 36 3, 537. 36 19- 730- 16- 000 OLD GREENWOOD LLC ETAL N/ A 322, 536. 00 1, 051, 198. 00 1, 373, 734. 00 3, 537. 36 3, 537. 36 19- 730- 17- 000 OLD GREENWOOD LLC ETAL N/ A 355, 538. 00 1, 113, 577. 00 1, 469, 115. 00 3, 537. 36 3, 537. 36 19- 730- 18- 000 CONKLIN DOUGLAS& LINDA TRSTES ETAL N/ A 372, 011. 00 1, 120, 202. 00 1, 492, 213. 00 3, 537. 36 3, 537. 36 N/ A 378, 272. 00 1, 141, 033. 00 1, 519, 305. 00 3, 537. 36 3, 537. 36 19- 730- 19- 000 OLD GREENWOOD LLC ETAL N/ A 377, 013. 00 1, 353, 285. 00 1, 730, 298. 00 3, 537. 36 3, 537. 36 19- 730- 20- 000 OLD GREENWOOD LLC ETAL N/ A 380, 987. 00 1, 146, 730. 00 1, 527, 717. 00 3, 537. 36 3, 537. 36 19- 730- 21- 000 OLD GREENWOOD LLC ETAL 19- 730- 22- 000 OLD GREENWOOD LLC ETAL NIA 363, 771. 00 1, 134, 148. 00 1, 497, 919. 00 3, 537. 36 3, 537. 36 19- 730- 23- 000 OLD GREENWOOD LLC ETAL N/ A 429, 863. 00 1, 345, 803. 00 1, 775, 666. 00 3, 537. 36 3, 537. 36 19- 730- 24- 000 MARSHALL GEORGE F& MILAGROS D ETAL N/ A 362, 401. 00 1, 090, 042. 00 1, 452, 443. 00 3, 537. 36 3, 537. 36 19- 730- 27- 000 OLD GREENWOOD LLC ETAL N/ A 342, 559. 00 1, 134, 662. 00 1, 477, 221. 00 3, 537. 36 3, 537. 36 19- 730- 28- 000 OLD GREENWOOD LLC ETAL N/ A 9, 651. 00 1, 300, 000. 00 1, 309, 651. 00 3, 537. 36 3, 537. 36 19- 730- 29- 000 OLD GREENWOOD LLC ETAL N/ A 12, 155. 00 1, 300, 000. 00 1, 312, 155. 00 3, 537. 36 3, 537. 36 19- 730- 30- 000 OLD GREENWOOD LLC ETAL N/ A 322, 697. 00 1, 292, 831. 00 1, 615, 528. 00 3, 537. 36 3, 537. 36 19- 730- 31- 000 OLD GREENWOOD LLC ETAL N/ A 7, 693. 00 441, 073. 00 448, 766. 00 3, 537. 36 3, 537. 36 19- 730- 33- 000 OLD GREENWOOD LLC ETAL N/ A 12, 220. 00 441, 073. 00 453, 293. 00 3, 537. 36 3, 537. 36 19- 730- 34- 000 OLD GREENWOOD LLC ETAL N/ A 11, 319. 00 441t073. 00 452, 392. 00 3, 537. 36 3, 537. 36 19- 730- 35- 000 OLD GREENWOOD LLC ETAL N/ A 11, 769. 00 441, 073. 00 452, 842. 00 3, 537. 36 3, 537. 36 19- 730- 36- 000 OLD GREENWOOD LLC ETAL N/ A 11, 319. 00 441, 073. 00 452, 392. 00 3, 537. 36 3, 537. 36 19- 730- 37- 000 OLD GREENWOOD LLC ETAL N/ A 15, 845. 00 441, 073. 00 456, 918. 00 3, 537. 36 3, 537. 36 N/ A 19- 740- 02- 000 OLD GREENWOOD LLC 187, 451. 00 0. 00 187, 451. 00 61, 740. 46 23, 441. 58 19- 740- 05- 000 OLD GREENWOOD LLC N/ A 234, 629. 00 0. 00 234, 629. 00 77, 175. 57 29, 301. 96 19- 740- 06- 000 MORRISON JAMES W& KATHERINE S N/ A 323, 044. 00 1, 600, 000. 00 1, 923, 044. 00 3, 121. 20 3, 121. 20 19- 740- 07- 000 GREENBERGER J PETER& BRIGIT M N/ A 400, 554. 00 0. 00 567. 00 3, 121. 20 3, 121. 20 278 19- 740- 08- 000 SANDY STEVEN H& MARTHA TRSTES N/ A 278, 567. 00 0. 00 278, 567. 00 3, 121. 20 3, 121. 20 19- 740- 09- 000 IFLAND GARY R& CHERENE K N/ A 278, 567. 00 1, 490, 000. 00 1, 768, 567. 00 3, 121. 20 3, 121. 20 19- 740- 10- 000 CSP INC N/ A 430, 000. 00 1, 770, 000. 00 2, 200, 000. 00 3, 121. 20 3, 121. 20 19- 740- 11- 000 WARD DENNIS J& PATRICIA A N/ A 260, 880. 00 0. 00 260, 880. 00 3, 121. 20 3, 121. 20 19- 740- 12- 000 ERBES MICHAEL R TRSTE ETAL N/ A 260, 880. 00 0. 00 260, 880. 00 3, 121. 20 3, 121. 20 19- 740- 13- 000 LONG VICTORIA A ETAL N/ A 429, 913. 00 0. 00 429, 913. 00 3, 121. 20 3, 121. 20 19- 740- 14- 000 ELDER DESMOND& ALISON M TRSTES N/ A 281, 688. 00 0. 00 281, 688. 00 3, 121. 20 3, 121. 20 19- 740- 15- 000 BOCKO CONSTRUCTION INC N/ A 306, 918. 00 490, 000. 00 796, 918. 00 3, 121. 20 3, 121, 20 19- 740- 16- 000 KHANNA NITIN TRSTE N/ A 291, 572. 00 0. 00 291, 572. 00 3, 121. 20 3, 121. 20 19- 740- 17- 000 THOMASON JANE M N/ A 281, 688. 00 0. 00 281, 688. 00 3, 121. 20 3, 121. 20 19- 740- 18- 000 ORMOND WILLIAM E& KAREN K N/ A 281, 688. 00 0. 00 281, 688. 00 3, 121. 20 3, 121. 20 19- 740- 19- 000 REINIS MITCHELL N& TONI L TRSTES N/ A 281, 688. 00 0. 00 281, 688. 00 3, 121. 20 3, 121. 20 19- 740- 20- 000 WOLFF ROBERT S TRSTE ETAL N/ A 281, 688. 00 0. 00 281, 688. 00 3, 121. 20 3, 121. 20 MuniFinancial Fiscal Year 2006/ 07 Annual Report Page 1 of 4 Truckee Donner PUD a Community Facilities District No. 03- 1 ( Old Greenwood) 0 n3 Wre- Y Charge Detail Report ( Sorted by Assessor' s Parcel Number!, i 19- 740- 21- 000 STRAW EZEKIEL A& SUSAN K TRSTES N/ A 262, 140. 00 0. 00 252, 140. 00 3, 121. 20 3, 121. 20 19- 740- 22- 000 BLUMENKRANZ MARK& RECIA K N/ A 381, 826. 00 0. 00 381, 826. 00 3, 121. 20 3, 121. 20 19- 740- 23- 000 GUNTER DARREN S& JENNIFER L TRSTES N/ A 313, 940. 00 0. 00 313, 940. 00 3, 121. 20 3, 121. 20 19- 740- 24- 000 WALLSTROM SCOTT M& CAROL A N/ A 291, 832. 00 225, 000. 00 516, 832. 00 3, 121. 20 3, 121. 20 19- 740- 25- 000 BIRLEM GARY W& JANICE E N/ A 484, 500. 00 2, 150, 000. 00 2, 634, 500. 00 3, 121. 20 3, 121. 20 19- 740- 26- 000 GAMEL JANICE E TRSTE N/ A 380, 266. 00 0. 00 380, 266. 00 3, 121. 20 3, 121. 20 19- 740- 27- 000 LEWIS STEVEN R& SHARON R ETAL N/ A 535, 000. 00 0. 00 535, 000. 00 3, 121. 20 3, 121. 20 19- 740- 28- 000 MENARD ROGER B ETAL N/ A 591, 600. 00 0. 00 591, 600. 00 3, 121. 20 3, 121. 20 19- 740- 29- 000 SHURMAN WILLIAM A& JENNIFER A N/ A 590, 000. 00 0. 00 590, 000. 00 3, 121. 20 3, 121. 20 19- 740- 30- 000 BORCICH JOHN M& DAGNY TRSTES N/ A 437, 748. 00 1, 700, 000. 00 2, 137, 748. 00 3, 121. 20 3, 121. 20 19- 740- 31- 000 KRIEG JAMES C& MARY E TRSTES N/ A 635, 000. 00 0. 00 635, 000. 00 3, 121. 20 3, 121. 20 19- 740- 32- 000 WELLS WILLIAM S& ELKE H N/ A 550, 000. 00 0. 00 550, 000. 00 3, 121. 20 3, 121. 20 19- 740- 33- 000 SUMARAGA DOUGLAS L& ELEANOR M N/ A 494, 190. 00 0. 00 494, 190. 00 3, 121. 20 3, 121. 20 19- 740- 34- 000 HOUSE JAMES B TRSTE ( 50%) N/ A 460, 189. 00 0. 00 460, 189. 00 3, 121. 20 3, 121. 20 19- 740- 35- 000 ROGERS MIKE N/ A 479, 364. 00 0. 00 479, 364. 00 3, 121. 20 3, 121. 20 19- 740- 36- 000 SENNETT GLENN& ROBIN TRSTES N/ A 550, 000. 00 0. 00 550, 000. 00 3, 121. 20 3, 121. 20 19- 740- 37- 000 CUTTS JOSEPH R& LYNN M TRSTES N/ A 510, 316. 00 0. 00 510, 316. 00 3, 121. 20 3, 121. 20 19- 740- 38- 000 O' CONNELL JOHN P& MARY L TRSTES N/ A 389, 109. 00 1, 583, 040. 00 1, 972, 149. 00 3, 121. 20 3, 121. 20 19- 740- 39- 000 SEELIG FRANK M& FRANCES B ETAL N/ A 393, 531. 00 0. 00 393, 531. 00 3, 121. 20 3, 121. 20 19- 740- 40- 000 SEELIG FRANK M& FRANCES R ETAL N/ A 411, 218. 00 0. 00 411, 218. 00 3, 121. 20 3, 121. 20 19- 740- 41- 000 THORNTON JAMES R& SHERRY A TRSTES N/ A 569, 000. 00 0. 00 569, 000. 00 3, 121. 20 3, 121. 20 19- 740- 42- 000 LESSMAN ROGER W N/ A 683, 910. 00 301. 920. 00 985, 830. 00 3, 121. 20 3, 121. 20 19- 740- 43- 000 GIANULIAS JAMES C TRSTE N/ A 658, 833. 00 0. 00 658, 833. 00 3, 121. 20 3, 121. 20 19- 740- 44- 000 PLUNKETT JAMES W& GERALDINE N/ A 767, 040. 00 0. 00 767, 040. 00 3, 121. 20 3, 121. 20 19- 740- 45- 000 KARPEN EDITH N/ A 795, 000. 00 0. 00 795, 000. 00 3, 121. 20 3, 121. 20 19- 740- 46- 000 CSP INC N/ A 697, 588. 00 0. 00 697, 588. 00 3, 121. 20 3, 121. 20 19- 740- 47- 000 CSP INC N/ A 697, 588. 00 0. 00 697, 588. 00 3, 121. 20 3, 121. 20 19- 740- 48- 000 HOFMANN K H TRSTE N/ A 624, 240. 00 0. 00 624, 240. 00 3, 121. 20 3, 121. 20 19- 740- 49- 000 STEVENS KENNETH V& DEBORAH A N/ A 702, 932. 00 0. 00 702, 932. 00 3, 121. 20 3, 121. 20 19- 740- 50- 000 BOECK P K& KATHRYN M TRSTES N/ A 683, 910. 00 0. 00 683, 910. 00 3, 121. 20 3, 121. 20 19- 740- 51- 000 REISER MICHAEL J ETAL N/ A 574, 093. 00 227, 000. 00 801, 093. 00 31121. 20 3, 121. 20 19- 740- 52- 000 DUNDON THOMAS N/ A 700, 000. 00 0. 00 700, 000. 00 3, 121. 20 3, 121. 20 19- 740- 53- 000 DUNDON THOMAS N/ A 700, 000. 00 0. 00 700, 000. 00 3, 121. 20 3, 121. 20 19 740- 54- 000 OLD GREENWOOD LLC N/ A 305, 928. 00 0. 00 305, 928. 00 94, 142. 41 35, 743. 94 72 19- 740- 55- 000 OLD GREENWOOD LLC N/ A 17, 011. 00 0. 00 19, 7 4. 00 0, 612. 08 0, 612. 08 19- 740- 56- 000 OLD GREENWOOD LLC N/ A 19, 784. 00 2, 200, 000. 00 2, 219, 784. 00 10, 612. 08 17, 074. 72 19- 740- 57- 000 OLD GREENWOOD LLC N/ A 17, 011. 00 1, 600, 000. 00 1, 617, 011. 00 7, 074. 72 7, 074. 72 19- 740- 58- 000 OLD GREENWOOD LLC ETAL N/ A 438, 924. 00 1, 881, 030. 00 2, 319, 954. 00 10, 612. 08 10, 612. 08 19- 740- 59- 000 OLD GREENWOOD LLC ETAL N/ A 190, 257. 00 1, 092, 076. 00 1, 282, 333. 00 7, 074. 72 7, 074. 72 19- 740- 60- 000 OLD GREENWOOD LLC ETAL N/ A 379, 773. 00 1, 454, 614. 00 1, 834, 387. 00 7, 074. 72 7, 074. 72 19- 740- 61- 000 OLD GREENWOOD LLC ETAL N/ A 354, 017. 00 1, 255, 541. 00 1, 609, 558. 00 7, 074. 72 7, 074. 72 19- 740- 62- 000 OLD GREENWOOD LLC ETAL N/ A 706, 576. 00 2, 415, 013. 00 3, 121, 589. 00 10, 612. 08 10, 612. 08 19- 740- 63- 000 OLD GREENWOOD LLC ETAL N/ A 515, 646. 00 1, 631, 571. 00 2, 147, 217. 00 7, 074. 72 7, 074. 72 19- 740- 64- 000 OLD GREENWOOD LLC ETAL N/ A 20, 793. 00 0. 00 20, 793. 00 10, 612. 08 10, 612. 08 19- 740- 65- 000 OLD GREENWOOD LLC ETAL N/ A 14, 489. 00 370, 000. 00 384, 489. 00 7, 074. 72 7, 074. 72 19- 740- 66- 000 OLD GREENWOOD LLC ETAL N/ A 16, 757. 00 295, 000. 00 311, 757. 00 10, 612. 08 10, 612. 08 19- 740- 67- 000 OLD GREENWOOD LLC ETAL N/ A 22, 053. 00 0. 00 22, 053. 00 10, 612. 08 10, 612. 08 Page 2 of 4 MuniFinancial Fiscal Year 2006/ 07 Annual Report Truckee Donner PUDs E Community Facilities District No. 03- 1 ( Old Greenwood) n Charge Detail Report ( Sorted by Assessor' s Parcel Number 19- 760- 11- 000 VIETS SHEPHEN H& REGINA L ETAL N/ A 260, 880. 00 0. 00 260, 880. 00 3, 121. 20 3, 121. 20 19- 760- 12- 000 MACFARLANE DIANA J N/ A 464, 100. 00 0. 00 464, 100. 00 3, 121. 20 3, 121. 20 19- 760- 13- 000 MACFARLANE DIANA J N/ A 469, 200. 00 0. 00 469, 200. 00 3, 121. 20 3, 121. 20 19- 760- 14- 000 BEATY WILLIAM C& JUDITH A N/ A 306, 397. 00 0. 00 306, 397. 00 3, 121. 20 3, 121. 20 19- 760- 15- 000 MARSHALL DON A& KATHLEEN D N/ A 265, 302. 00 0. 00 265, 302. 00 3, 121. 20 3, 121. 20 19- 760- 16- 000 KOSAKOWSKI CHRIS& LINDA TRSTES N/ A 377, 400. 00 0. 00 377, 400. 00 3, 121. 20 3, 121. 20 19- 760- 17- 000 ORZALLI RICHARD L& BETTY L TRSTES N/ A 418, 200. 00 0. 00 418, 200. 00 3, 121. 20 3, 121. 20 19- 760- 18- 000 OLD GREENWOOD LLC ETAL N/ A 20, 824. 00 441, 073. 00 461, 897. 00 3, 537. 36 3, 537. 36 19- 760- 19- 000 OLD GREENWOOD LLC ETAL N/ A 16, 298. 00 441, 073. 00 457, 371. 00 3, 537. 36 3, 537. 36 19- 760- 20- 000 OLD GREENWOOD LLC ETAL N/ A 15, 391. 00 441, 073. 00 456, 464. 00 3, 537. 36 3, 537. 36 19- 760- 21- 000 OLD GREENWOOD LLC ETAL N/ A 15, 391. 00 441, 073. 00 456, 464. 00 3, 537. 36 3, 537. 36 19- 760- 22- 000 OLD GREENWOOD LLC ETAL N/ A 10, 863. 00 441, 073. 00 451, 936. 00 3, 537. 36 3, 537. 36 19- 760- 24- 000 OLD GREENWOOD LLC ETAL N/ A 19, 014. 00 441, 073. 00 460, 087. 00 3, 537. 36 3, 537. 36 19- 760- 25- 000 OLD GREENWOOD LLC N/ A 35, 227. 00 75, 558. 00 110, 785. 00 3, 537. 36 3, 537. 36 19- 760- 26- 000 OLD GREENWOOD LLC N/ A 32, 058. 00 75, 558. 00 107, 616. 00 3, 537. 36 3, 537, 36 19- 760- 27- 000 OLD GREENWOOD LLC N/ A 33, 869. 00 75, 558. 00 109, 427. 00 3, 537. 36 3, 537. 36 19- 760- 28- 000 OLD GREENWOOD LLC N/ A 39, 757. 00 75, 558. 00 115, 315. 00 3, 537. 36 3, 537. 36 19- 760- 29- 000 OLD GREENWOOD LLC N/ A 38, 398. 00 75, 558. 00 113, 956. 00 3, 537. 36 3, 537. 36 19- 760- 30- 000 OLD GREENWOOD LLC N/ A 36, 133. 00 75, 558. 00 111, 691. 00 3, 537. 36 3, 537. 36 19- 760- 31- 000 OLD GREENWOOD LLC N/ A 34, 322. 00 75, 558. 00 109, 880. 00 3, 537. 36 3, 537. 36 19- 760- 32- 000 OLD GREENWOOD LLC N/ A 39, 757. 00 75, 558. 00 115, 315. 00 3, 537. 36 3, 537. 36 19- 760- 33- 000 OLD GREENWOOD LLC N/ A 32, 058. 00 75, 558. 00 107, 616. 00 3, 537. 36 3, 537. 36 19- 940- 02- 000 OLD GREENWOOD LLC N/ A 28, 875. 00 0. 00 28, 875. 00 25, 214. 61 9, 573. 46 19- 940- 04- 000 OLD GREENWOOD LLC N/ A 52, 290. 00 236, 730. 00 289, 020. 00 3, 537. 36 3, 537. 36 19- 940- 05- 000 OLD GREENWOOD LLC N/ A 52, 122. 00 236, 730. 00 288, 852. 00 3, 537. 36 3, 537. 36 19- 940- 06- 000 OLD GREENWOOD LLC N/ A 48, 268. 00 236, 730. 00 284, 998. 00 3, 537. 36 3, 537. 36 19- 940- 07- 000 OLD GREENWOOD LLC N/ A 44, 687. 00 236, 730. 00 281, 417. 00 3, 537. 36 3, 537. 36 19- 940- 08- 000 OLD GREENWOOD LLC N/ A 52, 290. 00 236, 730. 00 289, 020. 00 3, 537. 36 3, 537. 36 19- 940- 09- 000 OLD GREENWOOD LLC N/ A 42, 170. 00 236, 730. 00 278, 900. 00 3, 537. 36 3, 537. 36 19- 940- 10- 000 OLD GREENWOOD LLC N/ A 51, 447. 00 236, 730. 00 288, 177. 00 3, 537. 36 3, 537. 36 19- 940- 11- 000 OLD GREENWOOD LLC N/ A 51, 112. 00 236, 730. 00 287, 842. 00 3, 537. 36 3, 537. 36 19- 940- 12- 000 OLD GREENWOOD LLC N/ A 51, 200. 00 236, 730. 00 287, 930. 00 3, 537. 36 3, 537. 36 19- 940- 13- 000 OLD GREENWOOD LLC N/ A 52, 290. 00 236, 730. 00 289, 020. 00 3, 537. 36 3, 537. 36 19- 940- 14- 000 OLD GREENWOOD LLC N/ A 55, 664. 00 236, 750. 00 292, 414. 00 3, 537. 36 3, 537. 36 19- 940- 15- 000 OLD GREENWOOD LLC N/ A 49, 761. 00 236, 750. 00 286, 511. 00 3, 537. 36 3, 537. 36 19- 940- 16- 000 OLD GREENWOOD LLC N/ A 46, 387. 00 236, 730. 00 283, 117. 00 3, 537. 36 3, 537. 36 19- 940- 17- 000 OLD GREENWOOD LLC N/ A 43, 017. 00 236, 730. 00 279, 747. 00 3, 537. 36 3, 537. 36 19- 940- 18- 000 OLD GREENWOOD LLC N/ A 43, 017. 00 236, 730. 00 279, 747. 00 3, 537. 36 3, 537. 36 Total: 52, 014, 731. 00 $ 70, 345, 576. 00 $ 122, 360, 307. 00 ; 923, 296. 73 ; 763, 084. 62 179 Parcel Count:Handbilled parcels are included in this Report. See Handbilled Tab for detailed Information. Parcels with an" N" as a prefix indicate newly created parcels, for which secured roll information may not yet be available. I MunlFinancial Fiscal Year 2006/ 07 Annual Report Page 4 of 4 Fiscal Year 2006107 Annual Report Truckee Donner PUD Community Facilities District No. 04-1 (Gray's Crossing) DISTRICT PARTICIPANTS y5: MuniFiinancial CFD 04-1 (Gray's Crossing) Page 1 of 1 Fiscal Year 2006107 Annual Report Truckee Donner PUD Community Facilities District No. 04-1 (Gray's Crossing) DISTRICT OVERVIEW FISCAL YEAR 2006/07 LEVY AMOUNTS Applied to county Roll Handbilled/SB Parcel Dollar Dollar r Countl Levy Amount Count Amount SBE parcels are State-assessed properties or State Board of Equalization parcels. SBE parcels are not applied to the County Roll however;a form provided by the County was used to submit the charge to the State Board of Equalization. ACCOUNT SUMMARY s - 0 now01 Reserve t Amounts x 4 MurtiFinCial CFD 04-1 (Grays Crossing) Page 1 of 2 Fiscal Year 2006107 Annual Report 3 BOND CALL SUMMARY The following table summarizes bond calls performed during Fiscal Year 2005/06. The outstanding bond amount as of September 3,2006 is $34,530,000.00. Outstanding Bond Amount Series as of • 1 1 • Date of Call Amount Source of Funds DELINQUENCY SUMMARY If H s For a more comprehensive summary,please see the Delinquency Management tab of this report. mmMaUf11Fii'1 '1Ci11 CFD 04-1 (Grays Crossing) Page 2 of 2 Fiscal Year 2006107 Annual Report Truckee Donner PUD Community Facilities District No. 04-1 (Gray's Crossing) FRAMEWORK SUMMARY The following table shows formation proceeding information and applicable bond issue information for the District: Formation and Bond Issue Information SYNTHESIS OF PROCEEDINGS The Mello-Roos Community Facilities Act ("Act") of 1982 came about as a response to the lack of adequate financing for public capital facilities and services in the post-Proposition 13 era. State Legislators Mello and Roos sponsored this Bill,which was enacted into law by the California Legislature and is now Sections 53311 through 53363 of the California Government Code.The Act authorizes a local governmental agency, such as a school district or city, to form a Community Facilities District ("CFD") within a defined set of boundaries for the purposes of providing public facilities and services. A CFD is formed for financing purposes only,and is governed by the agency that formed it. MUn1Fit"1,"dt"IClal CFD 04-1 (Gray's Crossing) Page 1 of 5 Fiscal Year 2006107 Annual Report BOUNDARIES The District consists of approximately 757.2 gross acres located south of Interstate 80 in the eastern portion of the Town of Truckee, California on both the east and west sides of State Highway 89. The District has an irregular shape with mostly level topography with some gently sloping and undulating areas. Please see the District Diagram tab for the specific boundaries of the district. THE BONDS Series 2004 Bond The Bonds are subject to Redemption prior to their stated maturities on any Interest Payment Date from the proceeds of prepayments of Special Taxes, in whole or in part (in integral multiples of $5,000), at a redemption price set forth below, together with accrued interest thereon to the date fixed for redemption. r r fi The bonds are subject to Optional Redemption from sources of funds other than prepayments of the Special Tax prior to their stated maturity as a whole, or in part (in integral multiples of$5,000),in order of maturity selected by the Distract and by lot within a maturity on any Interest Payment date,at the redemption price as set forth below. Redemption r Prices OEM The Bonds maturing on September 1, 2029 are subject to mandatory sinking payments redemption in part on September 1, 2023, and on each September 1 thereafter to maturity, by lot, at a redemption price equal to the principal amount thereof to be redeemed, together with accrued interest to the date fixed for redemption,without premium, from sinking fund payments a follows. MMuniFinancial CFD 04-1 (Grays Crossing) Page 2 of 5 Fiscal Year 2006107 Annual Report Principal AmountRedemptionf (September Final Maturity The Bonds maturing on September 1, 2033 are subject to mandatory sinking payments redemption in part on September 1, 2029, and on each September 1 thereafter to maturity, by lot, at a redemption price equal to the principal amount thereof to be redeemed, together with accrued interest to the date fixed for redemption,without premium, from sinking fund payments a follows. f Final Maturity The amounts in the foregoing table shall be reduced pro rata by the principal amount of all Term Bonds which are redeemed as a result of any prior partial redemption of Term Bonds. Series 2005 Bond The Bonds are subject to Redemption prior to their stated maturities on any Interest Payment Date from the proceeds of prepayments of Special Taxes, in whole or in part (in integral multiples of $5,000), at a redemption price set forth below, together with accrued interest thereon to the date fixed for redemption. Redemption Dates Redemption slip aMuniFinc-mW CFD 04-1 (Gray's Crossing) Page 3 of 5 Fiscal Year 2006107 Annual Report The bonds are subject to Optional Redemption from sources of funds other than prepayments of the Special Tax prior to their stated maturity as a whole, or in part (in integral multiples of$5,000),in order of maturity selected by the District and by lot within a maturity on any Interest Payment date,at the redemption price as set forth below. redeniption Dates Redemption WL The Bonds maturing on September 1, 2025 are subject to mandatory sinking payments redemption in part on September 1, 2021, and on each September 1 thereafter to maturity, by lot, at a redemption price equal to the principal amount thereof to be redeemed, togetherwithaccruedinteresttothedatefixedforredemption,without premium, from sinking fund payments a follows. MENEM= Final Maturity The Bonds maturing on September 1, 2030 are subject to mandatory sinking payments redemption in part on September 1, 2026, and on each September 1 thereafter to maturity, by lot, at a redemption price equal to the principal amount thereof to be redeemed, togetherfixedforredemption,without premium, from sinkingwithaccruedinteresttothedatenking fund payments a follows. r a • Final Maturity The Bonds maturing on September 1, 2030 are subject to mandatory sinking payments redemption in part on September 1, 2031, and on each September 1 thereafter to maturity, by lot, at a redemption price equal to the principal amount thereof to be redeemed, togetherwithaccruedinteresttothedatefixedforredemption, without premium, from sinking fund payments a follows. WMuniFinwcial CFD 04-1 (Gray's Crossing) Page 4 of 5 Fiscal Year 2006107 Annual Report September sA Final Maturity The amounts in the foregoing table shall be reduced pro rata by the principal amount of all Term Bonds which are redeemed as a result of any prior partial redemption of Term Bonds. COVENANT FOR JUDICIAL FORECLOSURE The District has covenanted to commence judicial foreclosure proceedings against all parcels where the aggregate delinquent Special Taxes on such parcels is greater than $7,500 by the October 1 following the close of each Fiscal year in which such Special Taxes were due. The District will commence judicial foreclosure proceedings against all parcels with delinquent Special Taxes by the October 1 following the close of each Fiscal Year in which it receives Special Taxes in an amount which is less than 95% of the total Special Tax levied for such Fiscal year. The District will diligently pursue such foreclosure proceedings until the delinquent special taxes are paid. The District may elect to defer foreclosure proceedings on any parcel which is owned by a delinquent property owner whose property is not,in the aggregate, delinquent in the payment for a period of three years or more or in an amount in excess of$12,000 so long as the amount in the Reserve Account of the Special Tax Fund is at lest equal to the Reserve Requirement, and the District is not in default in the payment of the principal of or interest on the Bonds. FINANCED FACILITIES The Facilities authorized to be acquired by the District with the proceeds of the Bonds consist of various public improvements including water facilities, electrical facilities, sewer, roads, storm drains, natural gas facilities, power line relocation, highway improvements and fiber infrastructure which includes fiber optic cables and conduits. MuniFinancial CFD 04-1 (Grays Crossing) Page 5 of 5 Fiscal Year 2006107 Annual Report TRUCKEE DONNER PUBLIC UTILITY DISTRICT COMMUNITY FACILITIES DISTRICT NO. 04-1 GRAYS CROSSING) RATE AND METHOD OF APPORTIONMENT MAXIMUM SPECIAL TAX Single Family Detached Property The Maximum Special Tax for Single Family Detached Property in Zone 1 for Fiscal Year 2004- 05 is shown in the table below. r On July 1, 2005 and on each July 1 thereafter, the Maximum Special Taxes shown in the table above shall be increased by an amount equal to 2%of the amount in effect for the prior fiscal Year. The square footage of SFD Lots shall be determined by reference to County Assessor's Parcel Maps or, to the extent such Maps do not reflect square footage of the SFD Lots, by reference to the lot size summary provided by the engineering firm that produced the Final Map. Single Family Attached Property The Maximum Special Tax for Single Family Attached Property in Zone 1 for Fiscal Year 2004- 05 was $1,200 per Unit. The Maximum Special Tax for Single Family Attached Property in Zone 2 for Fiscal Year 2004-05 was $3,400 per Unit. On July 1, 2005 and on each July 1 thereafter, these Maximum Special Tax rates shall be increased by an amount equal to two percent (20/6) of the amount in effect for the prior Fiscal Year. MurlinanCial CFD 04-1 (Gray's Crossing) Page 1 of 4 Fiscal Year 2006107 Annual Report Loft Units The Maximum Special Tax for Loft Units for Fiscal Year 2004-05 was $1,200 per Unit. On July 1, 2005 and on each July 1 thereafter,this Maximum Special Tax shall be increased by an amount equal to two percent(20/6) of the amount in effect for the prior Fiscal Year. Non-Residential Property The Maximum Special Tax for Non- Residential Property for Fiscal Year 2004-05 was $2.50 per square foot of Building Square Footage. On July 1, 2005 and on each July 1 thereafter, this Maximum Special Tax shall be increased by an amount equal to two percent (2%) of the amount in effect for the prior Fiscal Year. SACK-UP FORMULA The Maximum Special Taxes set forth in Section C above were calculated based on the Expected Land Uses at CFD Formation. The Administrator shall review Tentative Map revisions and other changes to the land uses proposed within the CFD and compare the revised land uses to the Expected Land Uses to evaluate the impact on the Expected Maximum Special Tax Revenues. In addition, the Administrator shall review Final Maps to ensure they reflect the number of residential lots that was anticipated in the Tentative Map. If, prior to the Final Bond Sale, a change to the Expected Land Uses (a "Land Use/Entitlement Change") is proposed that will result in a reduction in the Expected Maximum Special Tax Revenues, no action will be needed pursuant to this Section D as long as the reduction in Expected Maximum Special Tax Revenues does not reduce debt service coverage on outstanding Bonds below the amount committed to in the Bond documents. Upon approval of the Land Use/Entitlement Change, the Administrator shall update Attachment 1 to show the reduced Expected Maximum Special Tax Revenues, and the reduced Expected Maximum Special Tax Revenues shall be the amount used to determine the amount of the Final Bond Sale. If a Land Use/Entitlement Change is proposed after the Final Bond Sale, the following steps shall be applied: Step 1: By reference to Attachment 1 (which will be updated by the Administrator each time a Land Use/Entitlement Change has been processed according to this Section D), the Administrator shall identify the Expected Maximum Special Tax Revenues for CFD No. 04-1. Step 2: The Administrator shall calculate the Maximum Special Tax revenues that could be collected from property in the CFD if the Land Use/Entitlement Change is approved. ZMuniFinancial CFD 04-1 (Gray`s Crossing) Page 2 of 4 Fiscal Year 2006107 Annual Report Step 3: If the amount determined in Step 2 is higher than that calculated in Step 1, the Land Use/Entitlement Change may be approved without further action. If the revenues calculated in Step 2 are less than those calculated in Step 1, and if: a) The landowner does not withdraw the request for the Land Use/Entitlement Change that was submitted to the Town;or b) Before approval of the Land Use/Entitlement Change, the landowner requesting the Land Use/Entitlement Change does not prepay a portion of the Special Tax for the CFD in an amount that corresponds to the lost Maximum Special Tax revenue,as determined by applying the steps set forth in Section H below;or The Land Use/Entitlement Change proposes that a Parcel of Single Family Detached Property or Single Family Attached Property be developed as another land use (other than Public Property), and the landowner requesting the Land Use/Entitlement Change fails to submit a written request to the TDPUD to designate the Parcel as Taxable Other Property, thereby maintaining the Expected Maximum Special Tax Revenues for the Parcel; then, the amount of the prepayment determined in Step 3.b shall be allocated on a per-acre basis and included on the next property tax bill for all Assessor's Parcels within the property affected by the Land Use/Entitlement Change. The amount allocated to each Assessors Parcel shall be added to and, until paid, shall be a part of, the Maximum Special Tax for the Assessor'sinclude approval ple of Land Use/Entitlement Changes are proposed at one time (which may ppmeal multiple Final Maps), the Administrator may consider the combined effect of all the Land Use/Entitlement Changes to determine if there is a reduction in Expected Maximum Special Tax Revenues that necessitates implementation of Step 3.b or 3.c. If, based on this analysis, the Administrator determines that there is a reduction in Expected Maximum Special Tax Revenue, and all of the Land Use/Entitlement Changes are being proposed by the same land owner, the Administrator shall determine the required prepayment (pursuant to Step 3.b) by analyzing the combined impact of all of the proposed Land Use/Entitlement Changes. Notwithstanding the foregoing, if the Administrator analyzes the combined impacts of or multiple of the and Use/Entitlement Changes, and the Town subsequently does not approve one Land Use/Entitlement Changes that was proposed, the Administrator shall once again apply the three steps set forth above to determine the combined impact of those Land Use/Entitlement Changes that were approved simultaneously by the Town. If, based on the comprehensive analysis, the Administrator determines that there is a reduction in Expected Maximum Special Tax Revenue, and the Land Use/Entitlement Changes are not all being proposed by the same land owner, the Administrator shall consider the proposed Land Use/Entitlement Changes individually to determine the required prepayment from each owner. METHOD OF LEVY OF THE SPECIAL TAX Each Fiscal Year, the Administrator shall determine the Special Tax Requirement to be collected in that Fiscal Year,and the Special Tax shall be levied according to the steps outlined below. Step 1: The Special Tax shall be levied Proportionately on each Parcel of Developed Property within the CFD that is Single Family Detached Property, Single Family Attached Property, or a Loft Unit up to 100% of the Maximum Special Tax for each Parcel for km MuniFinancial CFD 04-1 (Grays Crossing) Page 3 of 4 Fiscal Year 2006107 Annual Report such Fiscal Year until the amount levied on such Developed Property is equal to the Special Tax Requirement prior to applying any Capitalized Interest that is available in the CFD accounts Step 2: If additional revenue is needed after Step 1, and after applying Capitalized Interest to the Special Tax Requirement, the Special Tax shall be levied Proportionately on each Parcel of Developed Property within the CFD that is Non-Residential Property up to 100% of the Maximum Special Tax for such Developed Property for such Fiscal Year determined pursuant to Section C. Step 3: If additional revenue is needed after Step 2, the Special Tax shall be levied Proportionately on each Parcel of Developed Property within the CFD that is .Golf Course Property up to 100% of the Maximum Special Tax for such Developed Property for such Fiscal Year determined pursuant to Section C. Step 4: If additional revenue is needed after Step 3, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property within the CFD, up to 100% of the Maximum Special Tax for Undeveloped Property for such Fiscal Year determined pursuant to Section C. Step 5: If additional revenue is needed after Step 4, the Special Tax shall be levied Proportionately on each Parcel of Association Property within the CFD, up to 100% of the Maximum Special Tax for Undeveloped Property for such Fiscal Year determined pursuant to Section C. Step 6: If additional revenue is needed after Step 5, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Excess Public Property, exclusive of property exempt from the Special Tax pursuant to Section G below, up to 100% of the Maximum Special Tax for Undeveloped Property for such Fiscal Year determined pursuant to Section C. Mut1Fnancial CFD 04-1 (Gray's Crossing) Page 4 of 4 Truckee Donner PUD Community Facilities District No.04-1 (Gray's Crossing)Series 2004 ORIGINAL DEBT SERVICE SCHEDULE Dated Date: 9/14/2004 First Coupon: 3/1/2005 First Maturity: 9/1/2007 Payment Interest r Called TotalPaymentAnnual Due Rate Amount 3/1/2005 403,724.82 403,724.82 9/1/2005 3.25000% 0.00 435,152.50 435,152.50 838,877.32 3/1/2006 435,152.50 435,152.50 9/1/2006 3.25000% 0.00 435,152.50 435,152.50 870,305.00 3/1/2007 435,152.50 435,152.50 9/1/2007 3.25000% 15,000.00 435,152.50 450,152.50 885,305.00 3/1/2008 434,908.75 434,908.75 9/112008 3.50000% 35,000.00 434,908.75 469,908.75 904,817.50 3/1/2009 434,296.25 434,296.25 9/1/2009 3.90000% 50,000.00 434,296.25 484,296.25 918,592.50 3/1/2010 433,321.25 433,321.25 9/1/2010 4.15000% 70,000.00 433,321.25 503,321.25 936,642.50 311/2011 431,868.75 431,868.75 9/1/2011 4.35000% 95,000.00 431,868.75 526,868.75 958,737.50 3/1/2012 429,802.50 429,802.50 9/1/2012 4.65000% 115,000.00 429,802.50 544,802.50 974,605.00 3/1/2013 427,128.75 427,128.75 9/1/2013 4.75000% 140,000.00 427,128.75 567,128.75 994,257.50 3/1/2014 423,803.75 423,803.75 9/1/2014 4.90000% 170,000.00 423,803.75 593,803.75 1,017,607.50 3/1/2015 419,638.75 419,638.75 9/1/2015 5.00000% 200,000.00 419,638.75 619,638.75 1,039,277.50 3/1/2016 414,638.75 414,638.75 9/1/2016 5.10000% 230,000.00 414,638.75 644,638.75 1,059,277.50 3/1/2017 408,773.75 408,773.75 9/1/2017 5.20000% 260,000.00 408,773.75 668,773.75 1,077,547.50 3/1/2018 402,013.75 402,013.75 9/1/2018 5.30000% 295,000.00 402,013.75 697,013.75 1,099,027.50 311/2019 394,196.25 394,196.25 9/1/2019 5.40000% 335,000.00 394,196.25 729,196.25 1,123,392.50 3/1/2020 385,151.25 385,151.25 1/2020 5.50000% 375,000.00 385,151.25 760,151.25 1,145,302.50 9/ 1/2021 374,838.75 374,838.75 2021 5.60000% 420,000.00 374,838.75 794,838.75 1,169,677.50 9/1/ 2022 363,078.75 363,078.75 3/11/2022 5.70000% 465,000.00 363,078.75 828,078.75 1,191,157.50 3/1/2023 349,826.25 349,826.25 9/1/2023 5.75000% 515,000.00 349,826.25 864,826.25 1,214,652.50 3/1/2024 335,020.00 335,020.00 9/1/2024 5.75000% 570,000.00 335,020.00 905,020.00 1,240,040.00 3/1/2025 318,632.50 318,632.50 9/1/2025 5.75000% 625,000.00 318,632.50 943,632.50 1,262,265.00 3/1/2026 300,663.75 300,663.75 9/1/2026 5.75000% 690,000.00 300,663.75 990,663.75 1,291,327.50 3/1/2027 280,826.25 280,826.25 9/1/2027 5.75000% 755,000.00 280,826.25 1,035,826.25 1,316,652.50 3/1/2028 259,120.00 259,120.00 911/2028 5.75000% 825,000.00 259,120.00 1,084,120.00 1,343,240.00 3/1/2029 235,401.25 235,401.25 9/1/2029 5.75000% 895,000.00 235,401.25 1,130,401.25 1,365,802.50 3/1/2030 209,670.00 209,670.00 9/1/2030 5.80000% 975,000.00 209,670.00 1,184,670.00 1,394,340.00 311/2031 181,395.00 181,395.00 9/1/2031 5.80000% 1,060,000.00 181,395.00 1,241,395.00 1,422,790.00 3/1/2032 150,655.00 150,655.00 9/1/2032 5.80000% 1,150,000.00 150,655.00 1,300,655.00 1,451,310.00 3/1/2033 117,305.00 117,305.00 9/1/2033 5.80000% 1,245,000.00 117,305.00 1,362,305.00 1,479,610.00 3/1/2034 81,200.00 81,200.00 9/1/2034 5.80000% 1,345,000.00 81,200.00 1,426,200.00 1,507,400.00 3/1/2035 42,195.00 42,195.00 9/1/2035 5.80000% 1,455,000.00 42,195.00 1,497,195.00 1,539,390.00 O utstanding Principal 15,375,000.00 Principal 0.00 nci al 0.00 d Issue 15,375,000.00 MuniFinancial Fiscal Year 2006/07 Annual Report Page 1 of 2 Truckee Donner PUD Community Facilities District No.04-1 (Gray's Crossing)Series 2005 ORIGINAL DEBT SERVICE SCHEDULE Dated Date: 7/13/2005 First Coupon: 9/1/2005 First Maturity: 9/1/2007 Payment Interest Bond Call CalledPrincipal Due Interest Due Payment Total Annual Due Rate 9/1/2005 3.50000% 0.00 131,191.33 131,191.33 131,191.33 3/1/2006 491,967.50 491,967.50 9/1/2006 3.50000% 0.00 491,967.50 491,967.50 983,935.00 3/1/2007 491,967.50 491,967.50 9/1/2007 3.50000% 50,000.00 491,967.50 541,967.50 1,033,935.00 3/1/2008 491,092.50 491,092.50 9/1/2008 3.62500% 70,000.00 491,092.50 561,092.50 1,052,185.00 3/1/2009 489,823.75 489,823.75 9/1/2009 3.75000%100,000.00 489,823.75 589,823.75 1,079,647.50 3/1/2010 487,948.75 487,948.75 9/1/2010 4.00000%125,000.00 487,948.75 612,948.75 1,100,897.50 3/1/2011 485,448.75 485,448.75 9/1/2011 4.00000%150,000.00 485,448.75 635,448.75 1,120,897.50 3/1/2012 482,448.75 482,448.75 9/1/2012 4.12500%180,000.00 482,448.75 662,448.75 1,144,897.50 3/1/2013 478,736.25 478,736.25 9/1/2013 4.25000%210,000.00 478,736.25 688,736.25 1,167,472.50 3/1/2014 474,273.75 474,273.75 9/1/2014 4.37500%240,000.00 474,273.75 714,273.75 1,188,547.50 3/1/2015 469,023.75 469,023.75 9/1/2015 4.50000%275,000.00 469,023.75 744,023.75 1,213,047.50 3/1/2016 462,836.25 462,836.25 9/1/2016 4.62500%310,000.00 462,836.25 772,836.25 1,235,672.50 3/1/2017 455,667.50 455,667.50 9/1/2017 4.75000%355,000.00 455,667.50 810,667.50 1,266,335.00 3/1/2018 447,236.25 447,236.25 9/1/2018 4.75000%395,000.00 447,236.25 842,236.25 1,289,472.50 3/1/2019 437,855.00 437,855.00 9/1/2019 4.87500%440,000.00 437,855.00 877,855.00 1,315,710.00 3/1/2020 427,130.00 427,130.00 9/1/2020 5.00000°485,000.00 427,130.00 912,130.00 1,339,260.00 3/1/2021 415,005.00 415,005.00 9/1/2021 5.20000%535,000.00 415,005.00 950,005.00 1,365,010.00 3/1/2022 401,095.00 401,095.00 9/1/2022 5.20000%595,000.00 401,095.00 996,095.00 1,397,190.00 3/1/2023 385,625.00 385,625.00 9/1/2023 5.20000%650,000.00 385,625.00 1,035,625.00 1,421,250.00 3/1/2024 368,725.00 368,725.00 9/1/2024 5.20000%715,000.00 368,725.00 1,083,725.00 1,452,450.00 3/1/2025 350,135.00 350,135.00 9/1/2025 5.20000%780,000.00 350,135.00 1,130,135.00 1,480.270.00 3/1/2026 329,855.00 329,855.00 9/1/2026 5.25000%850,000.00 329,855.00 1,179,855.00 1,509,710.00 3/1/2027 307,542.50 307,542.50 9/1/2027 5.25000%925,000.00 307,542.50 1,232,542.50 1,540,085.00 3/112028 283,261.25 283,261.25 9/1/2028 5.25000% 1,005,000.00 283,261.25 1,288,261.25 1,571,522.50 3/1/2029 256,880.00 256,880.00 9/1/2029 5.25000% 1,090,000.00 256,880.00 1,346,880.00 1,603,760.00 3/1/2030 228,267.50 228,267.50 911/2030 5.25000% 1,180,000.00 228,267.50 1,408,267.50 1,636,535.00 3/1/2031 197,292.50 197,292.50 9/1/2031 5.30000% 1,275,000.00 197,292.50 1,472,292.50 1,669,585.00 3/1/2032 163,505.00 163,505.00 9/1/2032 5.30000% 1,375,000.00 163,505.00 1,538,505.00 1,702,010.00 3/1/2033 127,067.50 127,067.50 9/1/2033 5.30000% 1,480,000.00 127,067.50 1,607,067.50 1,734,135.00 3/1(2034 87,847.50 87,847.50 9/1/2034 5.30000% 1,600,000.00 87,847.50 1,687,847.50 1,775,695.00 3/1/2035 45,447.50 45,447.50 9/1/2035 5.30000% 1,715,000.00 45,447.50 1,760,447.50FAIIOTW1,805,895.00 1 1 t it 111 11 1. TI i. E Prnci al 19,155,000-001 Outstantured i al 0.0 0 al 0.00 Total Bond Issue 19,155,000.0 MuniFinancial Fiscal Year 2006/07 Annual Report Page 2 of 2 oil a • 1 Ig k A nas oC 4 A md pop t • 3 Air r RK I e flay 52 u' its 5 r y xk• rs+ ' teRrr. " a eS day a n. Fiscal Year 2006107 Annual Report Truckee Donner PUD Community Facilities District No. 04-1 (Gray's Crossing) DELINQUENCY MANAGEMENT SUMMARY MuniFinancial has performed the following Delinquency Monitoring Actions since July 1, 2005. Action Date Performed Number of Parcels NOTES: REMINDER LETTER Reminds property owner that the special assessment has not been paid, and should be redeemed with the County. DEMAND LETTER Allows property owner to redeem the delinquent amount with the County. However, this letter informs the property owner that the Agency will be stripping the delinquent amount from the County Secured Property Tax Roll, and will pursue Foreclosure actions, if the amount is not paid. HANDBILL INVOICE Reminds property owner that the special assessment has not been paid, and should be redeemed with the Agency. PAYMENT PLAIN Repayment schedule negotiated by MuniFinancial on behalf of the Agency to cure the delinquency and avoid initiation of judicial foreclosure on installments removed from the Tax Roll. SB 1471 Represents a document recorded at the County Recorder's Office which provides constructive notice to interested parties that a delinquency may exist in a specific Agency's District for specific parcel(s), in specific tax year(s), that the Agency intends to remove from ElYluniFinc-mcial CFD 04-1 (Gray's Crossing) Page 1 of 2 Fiscal Year 2006107 Annual Report the Tax Roll for collection by the Agency, or by one of its agents; either by direct billing, or through the judicial foreclosure process. STRIP REQUEST The delinquent amount requested to be removed from the County Secured Property Tax Roll. STRIP CONFIRMATION The delinquent amount is confirmed removed from the County Secured Property Tax Roll. FORECLOSURE COMPLETE Foreclosure satisfied and subsequent foreclosure fee invoiced to agency. FORECLOSURE LETTER Informs the property owner that if the delinquent amount is not paid directly to the Agency within 21 days of receipt of the letter, Foreclosure Actions will be pursued. FORECLOSURE REQUEST All remaining delinquent parcels are forwarded to a Foreclosure Attorney. Please note that Delinquency Actions are performed on an installment basis and not on a per parcel basis. MUniFinc-mCial CFD 04-1 ( rays Crossing) Page 2 of 2 DELINQUENCY SUMMARY BY DISTRICT Truckee Donner PUD CommunityDistrict No. 04 DUE DOLLARS DOLLARS DOLLARS PARCELS PARCELS DATA DATE LEVIED DELINQUENT DELINQUENT t DELINQUENT DATE 2005/ 06- 1 406, 596. 50 1, 581. 00 0. 39% 114 1 05/ 15/ 2006 2005/ 06- 2 406, 596. 50 1, 530. 00 0. 38% 114 1 05/ 15/ 2006 TOTAL 813, 193. 00 3, 111. 00 0. 38% Calculations performed on 9/ 14/ 2006 10: 51: OOPM Cover ant for Judicial Foreclosure The District has covenanted to commence judicial foreclosure proceedings against all parcels where the aggregate delinquent Special Taxes on sucl parcels is greater than$ 7, 500 by the October 1 following the close of each Fiscal year in which such Special Taxes were due. The District will commence judicial foreclosure proceedings against all parcels with delinquent Special Taxes by the October 1 following the close o each Fiscal Year in which it receives Special Taxes in an amount which is less than 95% of the total Special Tax levied for such Fiscal year. The District will diligently pursue such foreclosure proceedings until the delinquent special taxes are paid. The District may elect to defer foreclosur. proceedings on any parcel which is owned by a delinquent property owner whose property is not, in the aggregate, delinquent in the payment for period of three years or more or in an amount in excess of $ 12, 000 so long as the amount in the Reserve Account of the Special Tax Fund is at lest equa to the Reserve Requirement, and the District is not in default in the payment of the principal of or interest on the Bonds. am go Ivi u m' Financial Printed on: September 15, 2006 at 2: 06 pm Page 1 of 1 Fiscal Year 2006107 Annual Report Truckee Donner PUD Community Facilities District No. 04-1 (Gray's Crossing) SPECIAL TAX RATES SPECIAL TAX SPREAD The following table summarizes the number of parcels in each land use category according to its' square footage as well as the applied special tax rate for each category. FY 0f . 0 00. 0LandUse Parcels rApplied tion Rate/Parcel Levied 14 MAXIMUM AND APPLIED SPECIAL TAX RATES The following table summarizes the percent of the Applied Special Tax Rate to the Maximum Special Tax Rate. Mlrti naCtCial CFD 04-1 (Gray's Crossing) Page 1 of 2 Land Use FY 2006/07 FY 2006/07 percent of Classification Maximum Tax Applied Tax MaximumRateRate/Parcel r^' a ` I + ate,a,a ` x r -#'• a `"'a'-- q,..3-,.`€ E k,' .r § ' s r ram• a i r, 3 "' S xas". ?'"s., s. c -'-v s :Znl a$ PRO r xyx xtl`-'{..-• w,£ ,g rd' s,h„ _,y Arr h k a 3'd e a ,7x MOP 3 1 A t3 .. x a rt. t s " h"w- s:: n i be e . t r. - u` '. a x,,'' f k„a-, r' 2*k-".'., a TZ ':" ,. ..• z'.,*.ate;". n rz2„y,,.'k.. w 3 DonnerTruckee 2006/07 Budget Worksheet Community Facilities District No.04-1 (Gray's Crossing) Fund Number 617 PRINCIPALLevy Components 2005106 2006/07 r INTEREST Principal-Series 2004 0.00 15,000.00 Interest-Series 2004 870,305.00 870,305.00 Principal-Series 2005 50,000.00 Interest-Series 2005 983,935.00 TOTAL 870,305.00 $1,919,240.00 ADMINISTRATION COSTS Agency Administration 0.00 0.00 Finance Manager 0.00 0.00 Accounting Staff 4,000.00 5,500.00 Engineering Staff 0.00 0.00 City Manager Staff 0.00 0.00 Other Staff 0.00 0.00 Agency Auditor Fees 1,500.00 1,500.00 Attorney Fees 0.00 0.00 Office Expenses, Paid by Agency 30.00 30.00 Other Expenses, Paid by Agency 0.00 0.00 Total Agency Staff and Expenses 5,530.00 7,030.00 County Auditor and Assessor Fees 147.88 147.88 Registrar/Transfer/Paying Agent Fees 6,000.00 3,175.00 Consulting Services(1) 8,600.00 10,350.00 Consulting Expenses 1,000.00 500.00 Delinquency Management Allowance 0.00 277.50 TOTAL 21,277.88 21,480.38 Total Principal,Interest and Admin Costs 891,582.88 $1,940,720.38 ADJUSTMENTS r TO LEVY Reserve Fund Credit 103,389.89)0.00 Special Tax Fund Credit 0.00 124,000.00) Replenishment/(Credit) 0.00 0.00 Capitalized Interest Credit 0.00 0.00 Reserve for future Delinquencies 25,000.00 56,000.00 TOTAL 78,389.89)68,000.00) TOTAL Total Charge 813,192.99 $1,872,720.38 Applied Charge 813,193.00 $1,872,720.28 Difference(due to rounding)(2) 0.01 0.10 ADDITIONAL INFORMATION Number of Active Parcels 144 0 Number of Parcels Levied 114 304 Admin Costs as a percent of Annual Levy 2.62%1.15% 2006 1) Consulting services include, but are not limited to:District Administration Fees,Arbitrage Rebate Calculation Fees and Municipal Disclosure Fees. 2) The Difference is used to ensure that each parcel's levy amount is divisible by two, as required by the County Auditor-Controller. Truckee Donner PUD Community Facilities District No. 04- 1 ( Grays Crossing) Charge Detail Report( Sorted by Assessors Parcel dumber) i s it s 19- 370- 24- 000 GRAY' S STATION LLC 11495 PROSSER DAM RD 1, 088, 304. 00 0. 00 1, 088, 304. 00 $ 914, 719. 68 $ 104, 010. 00 19- 370- 25- 000 GRAY' S STATION LLC 11100 PROSSER DAM RD 1, 012, 774. 00 0. 00 1, 012, 774. 00 851, 541. 39 96, 826. 18 19- 370- 26- 000 GRAY' S STATION LLC 10510 SAN FRANCISCO COURT 1, 105, 064. 00 0. 00 1, 105, 064, 00 928, 739. 07 105, 604. 10 19- 370- 32- 000 GRAY' S STATION LLC N/ A 354, 938. 00 0. 00 354, 938. 00 971, 525. 52 110, 469. 22 19- 370- 41- 000 GRAY' S STATION LLC N/ A 76, 089. 00 0. 00 76, 089. 00 1, 132, 657. 47 128, 791. 06 19- 410- 33- 000 VILLAGE AT GRAY' S CROSSING LP THE N/ A 3, 358, 860. 00 0. 00 3, 358, 860. 00 371, 969. 01 42, 295. 46 19- 410- 34- 000 GRAY' S STATION LLC N/ A 1, 909, 188. 00 0. 00 1, 909, 188. 00 1, 586, 740. 05 180, 423. 40 19- 770- 02- 000 GRAY' S STATION LLC N/ A 975, 206. 00 0. 00 975, 206. 00 268, 735. 32 30, 557. 06 19- 770- 03- 000 MARSHALL BRAD F ETAL N/ A 160, 308. 00 0. 00 160, 308. 00 3, 121. 20 3, 121. 20 19- 770- 04- 000 ENGEL KURT W& JOAN TRSTES N/ A 152, 505. 00 0. 00 152, 505. 00 3, 017. 16 3, 017. 16 19- 770- 05- 000 IFLAND GARY R& CHERENE TRSTES ETAL N/ A 152, 505, 00 265, 000. 00 417, 505. 00 3, 017. 16 3, 017. 16 19- 770- 06- 000 MANCUSO JULIA M N/ A 160, 308. 00 0. 00 160, 308. 00 3, 017. 16 3, 017. 16 19- 770- 07- 000 BISCHOFF JOHN& STACY ETAL N/ A 175, 047. 00 0. 00 175, 047. 00 3, 017. 16 3, 017. 16 19- 770- 08- 000 FRANCES JOHN K& LINDA R TRSTES N/ A 175, 047. 00 0. 00 175, 047. 00 3, 017. 16 3, 017. 16 19- 770- 09- 000 MARSHALL DON A ETAL N/ A 169, 845. 00 0. 00 169, 845. 00 3, 017. 16 3, 017. 16 19- 770- 10- 000 BROWN WILLIAM A& ELISABETH H N/ A 169, 845. 00 0. 00 169, 845. 00 3, 017. 16 3, 017. 16 19- 770- 11- 000 KOSAKOWSKI CHRIS& LINDA B TRSTES N/ A 184, 584. 00 0. 00 184, 584. 00 3, 017. 16 3, 017. 16 19- 770- 12- 000 AINGE DONALD& PAMELA N/ A 229, 398. 00 0. 00 229, 398. 00 3, 017. 16 3, 017. 16 19- 770- 13- 000 SEELIG FRANK M& FRANCES B N/ A 194, 988. 00 0. 00 194, 988. 00 3, 017, 16 3, 017. 16 19- 770- 14- 000 FRIEDRICHSEN PETE& AMANDA N/ A 295, 800. 00 0, 00 295, 800, 00 3, 017. 16 3, 017. 16 19- 770- 15- 000 ARDELL JOHN E III& SUSAN R TRSTES N/ A 169, 845. 00 0, 00 169, 845. 00 3, 017. 16 3, 017. 16 19- 770- 16- 000 HEIDENREICH GARY& KATHLELEN N/ A 155, 106. 00 0. 00 155, 106. 00 2, 913. 12 2, 913. 12 19- 770- 17- 000 ROSEN AARON D N/ A 285, 600. 00 0. 00 285, 600. 00 2, 913. 12 2, 913. 12 19- 770- 18- 000 SHIPIRO A HORTON& ELIZABETH TRSTES N/ A 155, 106. 00 0. 00 155, 106. 00 2, 913. 12 2, 913. 12 19- 770- 19- 000 WALLSTRUM CASSANDRA ETAL N/ A 157. 707. 00 0. 00 157, 707. 00 2, 913. 12 2, 913. 12 19- 780- 01- 000 LU HOT N/ A 204, 525. 00 0. 00 204, 525. 00 3, 121. 20 3, 121. 20 19- 780- 02- 000 KERN DOUGLAS& JANIS M K N/ A 204, 525. 00 0. 00 204, 525. 00 3, 121. 20 3, 121. 20 19- 780- 03- 000 SUMARAGA DOUGLAS L& ELEANOR M ETAL N/ A 204, 525. 00 0, 00 204, 525. 00 3, 121. 20 3, 121. 20 19- 780- 04- 000 JONES HOWARD C& DIANNE ETAL N/ A 240, 618. 00 0. 00 240, 618. 00 3, 121. 20 3, 121. 20 19- 780- 05- 000 CCI MILLER LP N/ A 316, 200. 00 0. 00 316, 200, 00 3, 329. 28 3, 329. 28 19- 780- 06- 000 BARSTEN JANA L& GREGORY S TRSTES N/ A 234, 003. 00 0. 00 234, 003. 00 3, 121. 20 3, 121. 20 19- 780- 07- 000 DORSEY ROBERT L& JOYCE E N/ A 264, 348. 00 0. 00 264, 348. 00 3, 433. 32 3, 433. 32 19- 780- 08- 000 SANBAR PROPERTIES LLC N/ A 253, 944. 00 0. 00 253, 944. 00 3, 225. 24 3, 225. 24 19- 780- 09- 000 ERBES MICHAEL R ETAL N/ A 273, 885. 00 0. 00 273, 885. 00 3, 121. 20 3, 121. 20 19- 780- 10- 000 MARICH INVESTMENTS LLC N/ A 268, 683. 00 0, 00 268, 683. 00 3, 225. 24 3, 225. 24 19- 780- 11- 000 TWO BLACK DOGS LLC N/ A 253, 944. 00 0. 00 253, 944. 00 3, 017. 16 3, 017. 16 19- 780- 12- 000 STEVENS KENNETH V& DEBORAH A N/ A 253, 944. 00 0. 00 253, 944. 00 3, 121. 20 3, 121. 20 19- 780- 13- 000 ZACHARY DAVID K N/ A 248, 742. 00 0. 00 248, 742. 00 3, 121. 20 3, 121. 20 19- 780- 14- 000 COWIE PAUL J& NANCY J ETAL N/ A 304, 878. 00 0. 00 304, 878. 00 3, 121. 20 3, 121. 20 19- 780- 15- 000 NOUROT ALEX J& CHRISTINE M N/ A 331, 500. 00 0. 00 331, 500. 00 3, 225. 24 3, 225. 24 19- 780- 16- 000 KRAMER KEVIN ETAL N/ A 259, 146. 00 0. 00 259, 146. 00 3, 121. 20 3, 121. 20 19- 780- 17- 000 2000 N VILLAGE HOLDINGS LLC N/ A 259, 146. 00 0. 00 259, 146. 00 3, 225. 24 3, 225. 24 19- 780- 18- 000 RPR FAMILY INVESTMENTS ETAL N/ A 263, 481. 00 0. 00 263, 481. 00 3, 225, 24 3, 225. 24 19- 780- 19- 000 PACE WILLIAM B& BETSY R TRSTES N/ A 248, 742. 00 0. 00 248, 742. 00 3, 121. 20 3, 121. 20 19- 780- 20- 000 DELARROZ MANUEL& JUANITA N/ A 248, 742. 00 0. 00 248, 742. 00 3, 225. 24 3, 225. 24 19- 780- 21- 000 SELTZ THOMAS E& NORMA J TRSTES N/ A 248, 742. 00 0. 00 248, 742. 00 3, 121. 20 3, 121. 20 19- 780- 22- 000 TOWERY REID A TRSTE ETAL N/ A 199, 323. 00 0. 00 199, 323, 00 3, 017. 16 3, 017. 16 19- 780- 23- 000 SCHLENKER GARY E& KAREN I TRSTES N/ A 198, 390. 00 0. 00 198, 390. 00 3, 017A6 3, 017. 16 19- 780- 24- 000 LAPOINT ERIKA N/ A 204, 525. 00 0. 00 204, 525. 00 3, 017. 16 3, 017. 16 19- 780- 25- 000 LOZOVATSKIY YAKOV& LARISA N/ A 266, 000. 00 0. 00 266, 000. 00 3, 017. 16 3, 01T16 MuniFinancial Fiscal Year 2006/ 07 Annual Report Page 1 of 7 Truckee Donner PUD Community Facilities District No. 04- 1 ( Grays Crossing) Charge Detail Report( Sorted by Assessor' s Parcel Number) a o 19- 780- 26- 000 BARRAS ARNE ETAL N/ A 194, 988. 00 0. 00 194, 988. 00 3, 017. 16 3, 017. 16 19- 780- 27- 000 ROGERS BRIAN& KATHERINE N/ A 290, 000. 00 0. 00 290, 000. 00 3, 017. 16 3, 017. 16 19- 780- 28- 000 NETHERSOLE MICHAEL C ETAL N/ A 223, 278. 00 165, 000. 00 388, 278. 00 3, 017. 16 3, 017. 16 19- 780- 29- 000 BROWN JEFFREY W& LAURA A ETAL N/ A 194, 988. 00 0. 00 194, 988. 00 3, 121. 20 3, 121. 20 19- 790- 02- 000 TAYLOR MILO C& GINGER A TRSTES N/ A 293, 826. 00 0. 00 293, 826, 00 3, 017. 16 3, 017. 16 19- 790- 03- 000 BARRIELLE SYLVAIN N/ A 298, 161. 00 0. 00 298, 161. 00 3, 12120 3. 121. 20 19- 790- 04- 000 POWERPLAY PROPERTIES LLC N/ A 298, 161. 00 0. 00 298, 161. 00 3, 121. 20 3, 121. 20 19- 790- 05- 000 TRUCKEE RIVER PARTNERS N/ A 298, 161. 00 0. 00 298, 161. 00 3, 017. 16 3, 017. 16 19- 790- 06- 000 VAILLE DAVID A& DESIREE A N/ A 316, 098. 00 0. 00 316, 098. 00 3, 017. 16 3, 017. 16 19- 790- 07- 000 JENKINS ROBERT T& VIRGIN[ A T TRSTES N/ A 268, 683. 00 0. 00 268, 683. 00 3, 017. 16 3, 017. 16 19- 790- 08- 000 UPSHAW EUGENE JR& THERESA N/ A 268, 683. 00 0. 00 268, 683. 00 3, 329. 28 3, 329. 28 19- 790- 09- 000 TAHOE BASIN PARTNERS LP N/ A 268, 683. 00 0. 00 268, 683. 00 3, 017. 16 3, 017. 16 19- 790- 10- 000 BRUZZONE DAVID& CORINNE TRSTES ETAL N/ A 278, 220. 00 0. 00 278, 220. 00 3, 017. 16 3, 017. 16 19- 790- 11- 000 LEVINS ALAN S& SHARON TRSTES ETAL N/ A 298, 161. 00 0. 00 298, 161. 00 3, 225. 24 3, 225. 24 19- 790- 12- 000 DAVIS THOMAS D& JUDITH J TRSTES N/ A 298, 161. 00 0. 00 298, 161. 00 3, 225. 24 3, 225. 24 19- 790- 13- 000 GRAY' S BLUFF LLC N/ A 334, 000. 00 303, 000. 00 637, 000. 00 3, 017. 16 3, 017. 16 19- 790- 14- 000 NETHERSOLE MICHAEL C ETAL N/ A 333, 438. 00 0. 00 333, 438. 00 3, 017. 16 3, 017. 16 19- 790- 15- 000 RICCIO RESORT PROPERTIES LLC N/ A 268, 683. 00 0. 00 268, 683. 00 3, 121. 20 3, 121. 20 19- 790- 16- 000 73 GRAY' S CROSSING LLC N/ A 259, 146. 00 0. 00 259, 146. 00 3, 017. 16 3, 017. 16 19- 790- 17- 000 ROSEN AARON ETAL N/ A 259, 146. 00 0. 00 259, 146. 00 3, 017. 16 3, 017. 16 19- 790- 18- 000 KHANNA NITIN TRSTE ETAL N/ A 259, 146. 00 0. 00 259, 146. 00 3, 017. 16 3, 017. 16 19- 790- 19- 000 GEE JAMES& FRANCES Q N/ A 259, 146. 00 0. 00 259, 146. 00 3, 433. 32 3, 433. 32 19- 790- 20- 000 MARICH INVESTMENTS LLC N/ A 248, 742. 00 0. 00 248, 742. 00 3, 017. 16 3, 017. 16 19- 790- 21- 000 MESKIMEN KAREN L& JAMES L N/ A 248, 742. 00 0. 00 248, 742. 00 3, 017. 16 3, 017. 16 19- 790- 22- 000 PACKARD AMY P& EDWARD A N/ A 295, 800, 00 0. 00 295, 800. 00 3, 225. 24 3, 225. 24 19- 790- 23- 000 GRAY' S STATION LLC N/ A 272, 000. 00 0. 00 272, 000, 00 3, 225. 24 3, 225. 24 19- 790- 24- 000 DICKERMAN DANIEL T& PAMELA J N/ A 219, 264. 00 0. 00 219, 264. 00 3, 121. 20 3, 121. 20 19- 790- 25- 000 TAHOE BUILDER LLC N/ A 198, 390. 00 0. 00 198, 390. 00 3, 121. 20 3, 121. 20 19- 790- 26- 000 MEINYER DENNIS R& ERIN K N/ A 194, 121. 00 0. 00 194, 121. 00 2, 913. 12 2, 913. 12 19- 790- 27- 000 POPHAM BETH ETAL N/ A 194, 988. 00 0. 00 194, 988. 00 3, 121. 20 3, 121. 20 19- 800- 01- 000 FORNI JAMES J N/ A 288, 624. 00 0. 00 288, 624. 00 3, 225. 24 3, 225. 24 19- 800- 02- 000 HORN MICHAEL P& SANDRA J N/ A 293, 825. 00 0. 00 293, 825. 00 3, 017. 16 3, 017. 16 19- 800- 03- 000 ALDER CREEK INVESTMENTS LLC N/ A 291, 225. 00 0. 00 291, 225. 00 3, 017. 16 3, 017. 16 19- 800- 04- 000 JOHNSON ROBERT& ELAINE TRSTES ETAL N/ A 286, 023. 00 265, 000. 00 551, 023. 00 3, 121. 20 3, 121. 20 19- 800- 05- 000 STEVENS KENNETH V& DEBORAH A N/ A 273, 885. 00 0. 00 273, 885. 00 2, 913. 12 2, 913. 12 19- 800- 06- 000 FOUTS LANDSCAPE N/ A 293, 826. 00 0. 00 293, 826. 00 2, 913. 12 2, 913. 12 19- 800- 07- 000 BROOKS JONI J N/ A 298, 161. 00 0. 00 298, 161. 00 3, 017. 16 3, 017. 16 19- 800- 08- 000 REVERE JOHN A& MARTHA B N/ A 280, 622. 00 0. 00 280, 622. 00 3, 121. 20 3, 121. 20 19- 800- 09- 000 BRENT A MASON JR N/ A 308, 565. 00 0. 00 308, 565. 00 3, 121. 20 3, 121. 20 19- 800- 10- 000 BLEFARI EUGENE A TRSTE N/ A 308, 565. 00 0. 00 308, 565. 00 3, 017. 16 3, 017. 16 19- 800- 11- 000 KSC INVESTMENT GROUP LLC N/ A 323, 304. 00 0. 00 323, 304. 00 3, 017. 16 3, 017. 16 19- 800- 12- 000 POWERPLAY PROPERTIES LLC N/ A 328, 506. 00 0. 00 328, 506. 00 3, 329. 28 3, 329. 28 19- 800- 13- 000 FERRERA EDWARD J& JOAN N/ A 298, 161. 00 0. 00 298, 161. 00 3, 121. 20 3, 121. 20 19- 800- 14- 000 FOUTS LANDSCAPE N/ A 298, 161. 00 0. 00 298, 161. 00 3, 01 T 16 3, 017. 16 19- 800- 15- 000 SUMARAGA DOUGLAS L& ELEANOR M ETAL N/ A 308, 565. 00 0. 00 308, 565. 00 3, 225. 24 3, 225. 24 19- 800- 16- 000 IFLAND GARY R TRSTE ETAL N/ A 312, 900. 00 0. 00 312, 900. 00 3, 121. 20 3, 121. 20 19- 800- 17- 000 LAMBIOTTE JAY& ANNA N/ A 304, 286. 00 217, 000. 00 521, 286, 00 3, 121. 20 3, 121. 20 19- 800- 18- 000 47 GRAY' S CROSSING LLC N/ A 330, 240. 00 0. 00 330, 240, 00 3, 121. 20 3, 121, 20 19- 800- 19- 000 LESLIE RUSSELL E& LAURA A TRSTES N/ A 438, 600. 00 0. 00 438, 600. 00 3, 433. 32 3, 433. 32 19- 800- 20- 000 GOINES MARK R TRSTE ETAL N/ A 343, 245. 00 0. 00 343, 245. 00 3, 225. 24 3, 225. 24 MuniFinancial Fiscal Year 2006107 Annual Report Page 2 of 7 I M Truckee Donner PUD x , Community Facilities District No. 04- 1 ( Gray s Crossing) Charge Detail Report( Sorted by Assessor' s Parcel plumber) a 19- 800- 21- 000 CSP INC N/ A 340, 644. 00 0. 00 340, 644. 00 3, 121. 20 3, 121. 20 19- 800- 22- 000 CSP INC N/ A 332, 841. 00 0. 00 332, 841, 00 3, 017. 16 3, 017. 16 19- 800- 23- 000 HJ HOLDINGS LLC N/ A 326, 364. 00 0. 00 326, 364. 00 3, 017. 16 3, 017. 16 19- 800- 24- 000 MANLEY GERARD& TAMI N/ A 349, 080. 00 0. 00 349, 080. 00 3, 017. 16 3, 017. 16 19- 800- 25- 000 DELARROZ MANUEL& JUANITA N/ A 312, 900. 00 0. 00 312, 900. 00 3, 225. 24 3, 225. 24 19- 800- 26- 000 BRANDT RYAN D& MARI T N/ A 283, 422. 00 0. 00 283, 422. 00 3, 121. 20 3, 121. 20 19- 800- 27- 000 BENTHAM JACK E ETAL N/ A 283, 422. 00 0. 00 283, 422. 00 3, 121. 20 3, 121. 20 19- 800- 28- 000 COMMENDATORE JIM& CAROL N/ A 288, 624. 00 0. 00 288, 624. 00 3, 121. 20 3, 121. 20 19- 800- 29- 000 LACY DEAN R& KAREN N/ A 268, 683. 00 0. 00 268, 683. 00 3, 121. 20 3, 121. 20 19- 840- 01- 000 STUART CHRISTOPHER ETAL N/ A 332, 500. 00 0. 00 332, 500. 00 3, 901. 50 3, 901. 50 19- 840- 02- 000 GARIBALDI ALBERT D& DEANNA C N/ A 332, 500. 00 0. 00 332, 500. 00 3, 901. 50 3, 901. 50 19- 840- 03- 000 HAGAN KRISTINA M ETAL N/ A 332, 500. 00 0. 00 332, 500. 00 3, 771. 45 3, 771. 44 19- 840- 04- 000 DANA MICHELLE D ETAL N/ A 332, 500. 00 0. 00 332, 500. 00 3, 901. 50 3, 901. 50 19- 840- 05- 000 DAVOUDI SHAHLA TRSTE N/ A 308, 750. 00 0. 00 308, 750. 00 3, 641. 40 3, 641. 40 19- 840- 06- 000 BLAKE MICHAEL A& KELLEY D N/ A 83, 466. 00 0. 00 83, 466. 00 3, 771. 45 3, 771. 44 19- 840- 07- 000 MCGIVERN JAMES W SR& ELAINE N/ A 285, 000. 00 0. 00 285, 000. 00 3, 771. 45 3, 771. 44 19- 840- 08- 000 APIP 179 LLC N/ A 73, 192. 00 0. 00 73, 192. 00 3, 901. 50 3, 901. 50 19- 840- 09- 000 GRAY' S STATION LLC N/ A 102, 729. 00 0. 00 102, 729. 00 3, 901. 50 3, 901. 50 19- 840- 10- 000 GRAY' S STATION LLC N/ A 102, 729. 00 0. 00 102, 729. 00 3, 901. 50 3, 901. 50 1" 40- 11- 000 GRAY' S STATION LLC N/ A 109, 150. 00 0. 00 109, 150. 00 3, 901. 50 3, 901. 50 19- 840- 12- 000 GRAY' S STATION LLC N/ A 109, 150. 00 0. 00 109, 150. 00 4, 031, 55 4, 031. 54 19- 840- 13- 000 GRAY' S STATION LLC N/ A 109, 150. 00 0. 00 109, 150. 00 4, 031. 55 4, 031. 54 19- 840- 14- 000 GRAY' S STATION LLC N/ A 109, 150. 00 0. 00 109, 150. 00 4, 031. 55 4, 031. 54 19- 840- 15- 000 GRAY' S STATION LLC N/ A 109, 150, 00 0. 00 109, 150. 00 3, 771. 45 3, 771A4 19- 840- 16- 000 RYE BRIAN J& DAWN C N/ A 403, 750. 00 0. 00 403, 750. 00 3, 771. 45 3, 771. 44 19- 840- 17- 000 CGL ENTERPRISES LLC N/ A 403, 750. 00 0. 00 403, 750. 00 3, 771. 45 3, 771. 44 19- 840- 18- 000 GRAY' S STATION LLC N/ A 115, 570. 00 0. 00 115, 570. 00 3, 771. 45 3, 771. 44 19- 840- 19- 000 GRAY' S STATION LLC N/ A 115, 570. 00 0. 00 115, 570. 00 3, 771. 45 3, 771. 44 19- 840- 20- 000 BORRIS JONAH N/ A 115, 570. 00 0. 00 115, 570. 00 3, 771. 45 3, 771. 44 19- 840- 21- 000 GRAY' S STATION LLC N/ A 115, 570. 00 0. 00 115, 570. 00 3, 771. 45 3, 771. 44 19- 840- 22- 000 POPE BRIAN J& VICTORIA L TRSTES N/ A 427, 500. 00 0. 00 427, 500. 00 3, 771. 45 3, 771. 44 19- 840- 23- 000 FRIEDRICHSEN PETE& AMANDA ETAL N/ A 318, 750. 00 0. 00 318, 750. 00 3, 771. 45 3, 771. 44 19- 840- 24- 000 RIDGEWOOD ENTERPRISES LLC N/ A 318, 750. 00 0. 00 318, 750. 00 3, 771. 45 3, 771. 44 19- 840- 25- 000 CADY CHRISTOPHER B& TAMI Z TRSTES N/ A 318, 750. 00 0. 00 318, 750. 00 3, 771. 45 3, 771. 44 19- 840- 26- 000 ARDELL JOHN III& SUSAN TRSTES ETAL N/ A 318, 750. 00 0. 00 318, 750. 00 3, 901. 50 3, 901. 50 19- 840- 27- 000 RIDGEWOOD ENTERPRISES LLC N/ A 318, 750. 00 0. 00 318, 750. 00 3, 901. 50 3, 901. 50 19- 840- 28- 000 PETERSON ERIC O& PAMELA J N/ A 356, 250. 00 0. 00 356, 250. 00 3, 771. 45 3, 771. 44 19- 840- 29- 000 OMALEKI SAMUEL L ETAL N/ A 356, 250. 00 0. 00 356, 250. 00 3, 771. 45 3, 771, 44 19- 840- 30- 000 GRUNDMEIER DAVID A& DEBBIE L N/ A 356, 250. 00 0. 00 356, 250. 00 4, 031. 55 4, 031. 54 19- 850- 02- 000 GRAY' S STATION LLC N/ A 130, 980. 00 0. 00 130, 980. 00 3, 901. 50 3, 901. 50 19- 850- 03- 000 CARR DONNELL B TRSTE N/ A 488, 750. 00 0. 00 488, 750. 00 3, 901. 50 3, 901. 50 19- 850- 04- 000 ZACHARY DAVID K N/ A 488, 750, 00 0. 00 488, 750. 00 3, 901. 50 3, 901. 50 19- 850- 05- 000 GRAY' S STATION LLC N/ A 125, 522. 00 0, 00 125, 522. 00 3, 901. 50 3, 901. 50 19- 850- 06- 000 PALLI ULFRIED ETAL N/ A 141, 767. 00 0. 00 141, 767. 00 3, 901. 50 3, 901. 50 19- 850- 07- 000 GRAY' S STATION LLC N/ A 154, 094. 00 0. 00 154, 094. 00 3, 901. 50 3, 901. 50 19- 850- 08- 000 GRAY' S STATION LLC N/ A 92, 776. 00 0. 00 92, 776. 00 3, 901. 50 3, 901. 50 19- 850- 09- 000 TOMASINI STEVEN& MICHELLE N/ A 103, 692. 00 0. 00 103, 692. 00 3, 771. 45 3, 771. 44 19- 850- 10- 000 MORAN TIMOTHY D ETAL N/ A 427, 500. 00 0. 00 427, 500. 00 3, 771. 45 3, 771, 44 19- 850- 11- 000 ROCKY RIDGE PROPERTIES LLC N/ A 386, 750. 00 0, 00 386, 750. 00 3, 771. 45 3, 771. 44 19- 850- 12- 000 GANN SEAN& LYNDA ETAL N/ A 403, 750. 00 0. 00 403, 750. 00 3, 771. 45 3, 771. 44 MuniFinancial Fiscal Year 2006/ 07 Annual Report Page 3 of 7 Truckee Donner PUD Community Facilities District No. 04- 1 ( Gray' s Crossing) s _ Charge Detail Report( Sorted by Assessors Parcel Number) i rz-. INF4 19- 850- 13- 000 TELFORD ALAN D& CHRISTINE M N/ A 361, 250. 00 0. 00 361, 250. 00 3, 901. 50 3, 901. 50 19- 850- 14- 000 H J HOLDINGS LLC N/ A 318, 750. 00 0. 00 318, 750. 00 3, 771. 45 3, 771. 44 19- 850- 15- 000 H J HOLDINGS LLC N/ A 318, 750. 00 0, 00 318, 750. 00 3, 771. 45 3, 771. 44 19- 850- 16- 000 COOPER JEFFERY J& KATHRYN N/ A 356, 250. 00 0. 00 356, 250. 00 3, 771. 45 3, 771. 44 19- 850- 17- 000 NARVICK GREG R& DANIELLE M N/ A 318, 750. 00 0. 00 318, 750. 00 4, 161. 60 4, 161. 60 19- 850- 18- 000 RIDGEWOOD ENTERPRISES LLC N/ A 318, 750. 00 0. 00 318, 750. 00 3, 901. 50 3, 901, 50 19- 850- 19- 000 SULLIVAN PATRICK E& CECELIA M N/ A 318, 750. 00 0. 00 318, 750. 00 3, 771A5 3, 771. 44 19- 850- 20- 000 KELLY WILLIAM R ETAL N/ A 318, 750. 00 0. 00 318, 750. 00 3, 771. 45 3, 771. 44 19- 850- 21- 000 LONG VICTORIA ETAL N/ A 318, 750. 00 0. 00 318, 750. 00 3, 771. 45 3, 771. 44 19- 850- 22- 000 PACWEST REAL ESTATE INVESTMENTS LLC N/ A 297, 500. 00 0. 00 297, 500. 00 3, 771. 45 3, 771. 44 19- 850- 23- 000 HARRIS KEN& PAMELA S TRSTES N/ A 297, 500. 00 0. 00 297, 500. 00 3, 771. 45 3, 771. 44 19- 850- 24- 000 STEVENS KENNETH& DEBORAH TRSTE ETAL N/ A 297, 500. 00 0. 00 297. 500. 00 3, 771. 45 3, 771. 44 19- 850- 25- 000 SELTZ THOMAS E& NORMA J ETAL N/ A 297, 500. 00 0. 00 297, 500. 00 3, 771. 45 3, 771 A4 19- 850- 26- 000 JOHNSON ROBERT A& ELAINE D TRSTES N/ A 297, 500. 00 0. 00 297, 500. 00 3, 771. 45 3, 771. 44 19- 850- 27- 000 DELARROZ MANUEL M& JUANIT. A L N/ A 297, 500. 00 0. 00 297, 500. 00 3, 901. 50 3, 901. 50 19- 860- 02- 000 POLAND WILLIAM F& LYNN E TRSTES N/ A 570, 000. 00 0. 00 570, 000. 00 4, 031. 55 4, 031. 54 19- 860- 03- 000 GRAY' S STATION LLC N/ A 166, 936. 00 0. 00 166, 936. 00 4, 161. 60 4, 161, 60 19- 860- 04- 000 MOODY MARLENE& DOUGLAS W N/ A 531, 250. 00 0. 00 531, 250. 00 4, 161. 60 4, 161. 60 19- 860- 05- 000 RPR FAMILY INVESTMENTS ETAL N/ A 531, 250. 00 0. 00 531, 250. 00 4, 031. 55 4, 031. 54 19- 860- 06- 000 WHITEHEAD WILLIAM& DARLA TRSTE ETAL N/ A 510, 000, 00 0. 00 510, 000. 00 3, 901. 50 3, 901. 50 19- 860- 07- 000 SCHERER RICHARD& MELANIE ETAL N/ A 510, 000. 00 0. 00 510, 000. 00 3, 901. 50 3, 901. 50 19- 860- 08- 000 DUNDON THOMAS& VERUSCHKA N/ A 531, 250. 00 0. 00 531, 250. 00 4, 031. 55 4, 031. 54 19- 860- 09- 000 SEB LAND HOLDINGS LLC N/ A 552, 500. 00 0. 00 552, 500. 00 4, 031. 55 4, 031. 54 19- 860- 10- 000 GRAY' S STATION LLC N/ A 115, 570. 00 0. 00 115, 570. 00 3, 771. 45 3, 771, 44 19- 860- 11- 000 HENRY JEANNINE A& WILLIAM M N/ A 427, 500. 00 0. 00 427, 500. 00 3, 771. 45 3, 771. 44 19- 860- 12- 000 NJO MICHAEL A& TIFFANY M N/ A 361, 250. 00 0. 00 361, 250. 00 3, 771. 45 3, 771. 44 19- 860- 13- 000 MCGAUGHEY SANDRA M N/ A 361, 250. 00 0. 00 361, 250. 00 3, 771. 45 3, 771. 44 19- 860- 14- 000 POWERPLAY PROPERTIES LLC N/ A 361, 250. 00 0. 00 361, 250. 00 3, 771. 45 3, 771. 44 19- 860- 15- 000 KERN DOUG& JANIS M K N/ A 361, 250. 00 0. 00 361, 250. 00 3, 771. 45 3, 771. 44 19- 860- 16- 000 RIDGEWOOD ENTERPRISES LLC N/ A 361, 250. 00 0. 00 361, 250. 00 3, 771. 45 3, 771. 44 19- 860- 17- 000 GRAY' S STATION LLC N/ A 92, 776. 00 0. 00 92, 776. 00 3, 901. 50 3, 901. 50 19- 860- 18- 000 WATSON MATTHEW K ETAL N/ A 361, 250. 00 0. 00 361, 250. 00 3, 901, 50 3, 901. 50 19- 860- 19- 000 DRYSEN HELEN P TRSTE ETAL N/ A 403, 750. 00 0. 00 403, 750. 00 3, 901. 50 3, 901. 50 19- 860- 20- 000 CASSANI JOHN J& STARIA A N/ A 403, 750. 00 0. 00 403, 750. 00 3, 901. 50 3, 901. 50 19- 870- 02- 000 DELARROZ MANUEL M& JUANITA L N/ A 488, 750. 00 0. 00 488, 750. 00 4, 031, 55 4, 031. 54 19- 870- 03- 000 ROCKY RIDGE PROPERTIES LLC N/ A 523, 250. 00 0. 00 523, 250. 00 4, 031. 55 4, 031. 54 19- 870- 04- 000 ROCKY RIDGE PROPERTIES LLC N/ A 523, 250. 00 0. 00 523, 250. 00 4, 161. 60 4, 161. 60 19- 870- 05- 000 GRAY' S STATION LLC N/ A 154, 094. 00 0. 00 154, 094. 00 4, 291. 65 4, 291, 64 19- 870- 06- 000 GRAY' S STATION LLC N/ A 154, 094. 00 0. 00 154, 094. 00 4, 291. 65 4, 291. 64 19- 870- 07- 000 GRAY' S STATION LLC N/ A 154, 094. 00 0. 00 154, 094. 00 4, 161. 60 4, 161. 60 19- 870- 08- 000 GRAY' S STATION LLC N/ A 96, 308, 00 0. 00 96, 308. 00 3, 901, 50 3, 901. 50 19- 870- 09- 000 GRAY' S STATION LLC N/ A 96, 308. 00 0. 00 96, 308. 00 3, 901. 50 3, 901. 50 19- 870- 10- 000 DERAKSHANDEH DARYOUSH& ELIKA ETAL N/ A 332, 500. 00 0. 00 332, 500. 00 3, 771. 45 3, 771. 44 19- 870- 11- 000 KELLY JULIAN A SR& SANDRA D N/ A 332, 500. 00 0. 00 332, 500. 00 3, 771. 45 3, 771. 44 19- 870- 12- 000 CIVJAN NEAL N/ A 332, 500. 00 0, 00 332, 500. 00 3, 901. 50 3, 901. 50 19- 870- 13- 000 KELLY JULIAN A SR ETAL N/ A 332, 500. 00 0. 00 332, 500. 00 3. 771. 45 3, 771. 44 19- 870- 14- 000 BLOOM JEFFREY M& CHRISTINA L N/ A 85, 392. 00 0. 00 85, 392. 00 3, 771. 45 3, 771. 44 19- 870- 15- 000 WEISBROD JAY& BARBARA N/ A 89, 887. 00 0. 00 89, 887. 00 3, 901. 50 3, 901. 50 19- 870- 16- 000 DISBROW TODD C N/ A 89, 887. 00 0. 00 89, 887. 00 3, 771. 45 3, 771. 44 19- 870- 17- 000 JACKSON ELI H N/ A 318, 750. 00 0. 00 318, 750. 00 41161. 60 4, 161. 60 MuniFinancial Fiscal Year 2006/ 07 Annual Report Page 4 of 7 Truckee Donner PUD w s Community Facilities District No. 04- 1 Gra ' s Crossing) a Charge Detail Report( Sorted by Assessor' s Parcel Number) a r 19- 870- 18- 000 SUMMERS ALAN P& MICHELLE R N/ A 332, 500. 00 0. 00 332, 500. 00 3, 771. 45 3, 771. 44 19- 870- 19- 000 BOCKIUS BLAKE H& MARY L TRSTES N/ A 332, 500. 00 0. 00' 332, 500. 00 3, 771. 45 3, 771. 44 19- 870- 20- 000 GRAY' S STATION LLC N/ A 76, 404. 00 0. 00 76, 404. 00 3, 771. 45 3, 771. 44 19- 870- 21- 000 GRAY' S STATION LLC N/ A 81, 861. 00 0. 00 81, 861. 00 3, 901. 50 3, 901. 50 19- 870- 22- 000 HUGHES ROGER M& ROBERTA K N/ A 356, 250. 00 0. 00 356, 250. 00 3, 771. 45 3, 771. 44 19- 870- 23- 000 PRUETT BRADLEY A& DIANA L V ETAL N/ A 380, 000. 00 0. 00 380, 000. 00 3, 771. 45 3, 771. 44 19- 870- 24- 000 PERILLI RICHARD A& GRETCHEN L N/ A 380, 000. 00 0. 00 380, 000. 00 3, 901. 50 3, 901, 50 19- 870- 25- 000 PRUETTING CHRISTOPHER J TRSTE ETAL N/ A 380, 000. 00 0. 00 380, 000. 00 3, 901. 50 3, 901. 50 19- 870- 26- 000 GREGOIRE MICHAEL P& HOLLY L TRSTES N/ A 318, 750. 00 0. 00 318, 750. 00 3, 901. 50 3, 901. 50 19 870- 27- 000 FOUTS DONALD L N/ A 318, 750. 00 0. 00 318, 750. 00 3, 901. 50 3, 901. 50 19- 870- 28- 000 CRUMP CHRISTOPHER& EVANGELITA TRSTE N/ A 318, 750. 00 0. 00 318, 750. 00 3, 901. 50 3, 901. 50 F 19- 870- 29- 000 GILMOUR STEVE& DIANE N/ A 318, 750. 00 0. 00 318, 750. 00 3, 901. 50 3, 901. 50 E 19- 870- 30- 000 KRAMER KEVIN R ETAL N/ A 297, 500. 00 0. 00 297, 500. 00 3, 901. 50 3, 901. 50 I 19- 870- 31- 000 WTB PROPERTIES LLC N/ A 297, 500. 00 0. 00 297, 500. 00 3, 901. 50 3, 901. 50 19- 870- 32- 000 HEIDENREICH GARY N/ A 297, 500. 00 0. 00 297, 500, 00 3, 901, 50 3, 901. 50 19- 870- 33- 000 HEIDENREICH GARY N/ A 297, 500. 00 0. 00 297, 500. 00 3, 901. 50 3, 901. 50 19- 870- 34- 000 MULLINS LORETTA ETAL N/ A 297, 500. 00 0. 00 297, 500. 00 3, 771. 45 3, 771. 44 19- 870- 35- 000 BHOLA MARGARET A& RAVI TRSTES ETAL N/ A 297, 500. 00 0. 00 297, 500. 00 3, 771. 45 3, 771. 44 19- 870- 36- 000 CSP INC N/ A 318, 750. 00 0. 00 318, 750. 00 3, 901. 50 3, 901. 50 19- 870- 37- 000 FOUTS DONALD L N/ A 318, 750. 00 0. 00 318, 750. 00 3, 901. 50 3, 901. 50 19- 870- 38- 000 HARRIS KEN& PAMELA S TRSTES N/ A 318, 750. 00 0. 00 318, 750. 00 3, 901. 50 3, 901. 50 19- 870- 39- 000 DELARROZ MANUEL M& JUANITA L N/ A 318, 750. 00 0. 00 318, 750. 00 3, 771. 45 3, 771. 44 19- 880- 01- 000 GRAY' S STATION LLC N/ A 186, 199. 00 0. 00 186, 199. 00 4, 161. 60 4, 161. 60 19- 880- 02- 000 GRAY' S STATION LLC N/ A 186, 199. 00 0. 00 186, 199. 00 4, 291. 65 4, 291. 64 19- 880- 03- 000 GRAY' S STATION LLC N/ A 173, 356. 00 0. 00 173, 356. 00 4, 161. 60 4, 161. 60 19- 880- 04- 000 GRAY' S STATION LLC N/ A 173, 357. 00 0. 00 173, 357. 00 4, 161. 60 4, 161. 60 19- 880- 05- 000 JONES JEFFREY& SHANNON ETAL N/ A 658, 750. 00 0. 00 658, 750. 00 4, 291. 65 4, 291. 64 19- 880- 06- 000 DREXEL CAPITAL PARTNERS LLC N/ A 736, 250. 00 0. 00 736, 250. 00 4, 031. 55 4, 031. 54 19- 880- 07- 000 CHERNEFF STEVEN ETAL N/ A 320, 000. 00 0. 00 320, 000. 00 3, 901. 50 3, 901. 50 19- 880- 08- 000 GRAY' S STATION LLC N/ A 128, 412. 00 0. 00 128, 412. 00 3, 771. 45 3, 771, 44 19- 880- 09- 000 MARR ROBERT A& SANDI G TRSTES N/ A 425, 000. 00 0. 00 425, 000. 00 3, 901. 50 3, 901. 50 19- 880- 10- 000 JENNY RONALD L& JANE E TRSTES N/ A 425, 000. 00 0. 00 425, 000. 00 3, 901. 50 3, 901. 50 19- 880- 11- 000 LACOTTI LAWRENCE M& DARLENE TRSTES N/ A 498, 750. 00 0. 00 498, 750. 00 3, 901. 50 3, 901. 50 19- 880- 12- 000 WALKER DAVID E& LOIS L TRSTES N/ A 318, 750. 00 0. 00 318, 750. 00 3, 901. 50 3, 901. 50 19- 880- 13- 000 LO LINDY N/ A 340, 000. 00 0. 00 340, 000. 00 4, 031. 55 4, 031. 54 19- 880- 14- 000 MCHUGH JOHN D II& CHARISE H N/ A 403, 750. 00 0. 00 403, 750. 00 4, 031. 55 4, 031. 54 19- 880- 15- 000 SUTTER DOUGLAS N/ A 109, 791. 00 0. 00 109, 791. 00 4, 161. 60 4, 161. 60 19- 880- 16- 000 POWERPLAY PROPERTIES LLC N/ A 382, 500. 00 0. 00 382, 500. 00 3, 901. 50 3, 901. 50 19- 880- 17- 000 ERICH ROBERT W N/ A 382, 500. 00 0. 00 382, 500. 00 3, 901. 50 3, 901. 50 19- 880- 18- 000 LEWIS ALBERT M& THERESA A N/ A 380, 000. 00 0. 00 380, 000. 00 4, 031. 55 4, 031. 54 19- 890- 01- 000 GRAY' S STATION LLC N/ A 154, 095. 00 0. 00 154, 095. 00 4, 031. 55 4, 031. 54 19- 890- 02- 000 DELUCCHI RON& AMY ETAL N/ A 425, 000. 00 0. 00 425, 000. 00 3, 901. 50 3, 901. 50 19- 890- 03- 000 HUGHES ROGER M& ROBERTA K N/ A 475, 000. 00 0. 00 475, 000. 00 3, 901. 50 3, 901. 50 19- 890- 04- 000 DELARROZ MANUEL M& JUANITA L N/ A 425, 000. 00 0. 00 425, 000. 00 3, 901. 50 3, 901. 50 19- 890- 05- 000 DELARROZ MANUEL M& JUANITA L N/ A 425, 000. 00 0. 00 425, 000. 00 4, 031. 55 4, 031. 54 19- 890- 06- 000 DELARROZ MANNY M& JUANITA L N/ A 403, 750. 00 0. 00 403, 750. 00 3, 901. 50 3, 901. 50 19- 890- 07- 000 DELARROZ MANUEL M& JUANITA L N/ A 403, 750. 00 0. 00 403, 750. 00 3, 901. 50 3, 901. 50 19- 890- 08- 000 DELARROZ MANUEL M& JUANITA L N/ A 403, 750. 00 0. 00 403, 750. 00 4, 161. 60 4, 161. 60 19- 890- 09- 000 MARREN JOHN& LYNDA N/ A 255, 000. 00 0. 00 255, 000. 00 3, 901. 50 3, 901. 50 19- 890- 10- 000 GRAY' S STATION LLC N/ A 79, 294. 00 0. 00 79, 294. 00 3, 901. 50 3, 901. 50 Ff MuniFinancial Fiscal Year 2006/ 07 Annual Report Page 5 of 7 e Truckee Donner PUD Community Facilities District No. 04- 1 ( Grays Crossing) G .. Charge Detail Report( Sorted by Assessor' s Parcel Number) AAMEN MR a t 1" 90- 11- 000 CAPRINI MARIO& EVA N/ A 308, 750. 00 0. 00 308, 750. 00 3, 771. 45 3, 771. 44 19- 890- 12- 000 MOFFITT STEPHEN A& TERESA L N/ A 308, 750, 00 0. 00 308, 750. 00 3, 771. 45 3, 771. 44 19- 890- 13- 000 RUPPERT NATHAN M ETAL N/ A 356, 250. 00 0. 00 356, 250. 00 3, 771. 45 3, 771. 44 19- 890- 14- 000 TRUCKEE SERENITY PARTNERS I N/ A 340, 000, 00 0. 00 340, 000. 00 4, 161. 60 4, 161. 60 19- 890- 15- 000 MUSCAT KENNETH& DIANE ETAL N/ A 331, 250. 00 0. 00 331, 250. 00 3, 771. 45 3, 771. 44 19- 890- 16- 000 RABY KENNETH S& LINDA S N/ A 356, 250. 00 0. 00 356, 250. 00 3, 771. 45 3, 771. 44 19- 890- 17- 000 HALL LISA E N/ A 332, 500. 00 0. 00 332, 500. 00 3, 901. 50 3, 901. 50 19- 890- 18- 000 RIDGEWOOD ENTERPRISES LLC N/ A 297, 500. 00 0. 00 297, 500. 00 3, 771. 45 3, 771. 44 19- 900- 02- 000 JACKSON ELI H N/ A 318, 750. 00 0. 00 318, 750. 00 4, 031. 55 4, 031. 54 19- 900- 03- 000 DALAL ALEXANDER R& THU V T TRSTES N/ A 356, 250. 00 0. 00 356, 250. 00 3, 901. 50 3, 901. 50 19- 900- 04- 000 LU HOT N/ A 356, 250. 00 0. 00 356, 250. 00 3, 901. 50 3, 901. 50 19- 900- 05- 000 SODERQUIST CHRISTIAN& KAREN N/ A 318, 750. 00 0. 00 318, 750. 00 3, 901. 50 3, 901. 50 19- 900- 06- 000 SANBAR PROPERTIES LLC N/ A 318, 750. 00 0. 00 318, 750. 00 3, 901. 50 3, 901. 50 19- 900- 07- 000 CAPRINI ANTHONY A N/ A 356, 250. 00 0. 00 356, 250. 00 3, 901. 50 3, 901. 50 19- 900- 08- 000 LOPICCOLO VINCENT F N/ A 91, 492. 00 0. 00 91, 492. 00 3, 771. 45 3, 771. 44 19- 900- 09- 000 KADOYA RICHARD S& SALLY TRSTES ETAL N/ A 356, 250. 00 0. 00 356, 250. 00 3, 771. 45 3, 771. 44 19- 900- 10- 000 GRAY' S STATION LLC N/ A 147, 353. 00 0. 00 147, 353. 00 3, 901. 50 3, 901. 50 19- 900- 11- 000 DUNDON THOMAS& VERUSCHKA N/ A 595, 000. 00 0. 00 595, 000. 00 3, 901. 50 3, 901. 50 19- 900- 12- 000 GRAY' S STATION LLC N/ A 192, 620. 00 0. 00 192, 620. 00 4, 291. 65 4, 291. 64 19- 900- 13- 000 DUNDON THOMAS& VERUSCHKA N/ A 595, 000. 00 0. 00 595, 000. 00 4, 291. 65 4, 291. 64 19- 900- 14- 000 VAILLE CONSTRUCTION INC ETAL N/ A 595, 000. 00 0. 00 595, 000. 00 4, 031. 55 4, 031. 54 19- 900- 15- 000 GRAY' S STATION LLC N/ A 152, 811. 00 0. 00 152, 811. 00 4, 291. 65 4, 291. 64 19- 900- 16- 000 GRAY' S STATION LLC N/ A 152, 811, 00 0. 00 152, 811. 00 4, 291. 65 4, 291. 64 19- 900- 17- 000 BAYVEN CAPITAL INC MONEY P P TRUST N/ A 340, 000. 00 0. 00 340, 000. 00 3, 641. 40 3, 641. 40 19- 900- 18- 000 GRAY' S STATION LLC N/ A 87, 320. 00 0. 00 87, 320. 00 3, 771. 45 3, 771. 44 19- 900- 19- 000 CRENSHAW JERRY R JR& LORI L N/ A 295, 000. 00 0. 00 295, 000. 00 4, 161. 60 4, 161. 60 19- 900- 20- 000 ENGEL KURT W& JOAN TRSTES N/ A 318, 750. 00 0. 00 318, 750. 00 4, 161. 60 4, 161. 60 19- 900- 21- 000 TENEYCK SCOTT ETAL N/ A 340, 000. 00 0. 00 340, 000. 00 3, 901. 50 3, 90L50 19- 900- 22- 000 SCHNOBRICH ALAN J& BEVERLY J N/ A 340, 000. 00 0. 00 340, 000. 00 4, 291. 65 4, 291. 64 19- 900- 23- 000 44 THE RIDGE LLC N/ A 510, 000. 00 0. 00 510, 000. 00 4, 291. 65 4, 291. 64 19- 900- 24- 000 JOST DAVID R& ERIN T N/ A 570, 000. 00 0. 00 570, 000. 00 4, 161. 60 4, 161. 60 19- 900- 25- 000 GRAY' S STATION LLC N/ A 147, 675. 00 0. 00 147, 675. 00 4, 031. 55 4, 031. 54 19- 900- 26- 000 GRAY' S STATION LLC N/ A 141, 254. 00 0. 00 141, 254. 00 3, 901. 50 3, 901. 50 i 19- 910- 01- 000 PUGEDA ISMAEL G& CHRISTINA R N/ A 356, 250. 00 0. 00 356, 250. 00 3, 771. 45 3, 771. 44 p 19- 910- 02- 000 IFLAND GARY R& CHERENE TRSTES ETAL N/ A 340, 000. 00 0. 00 340, 000. 00 4, 161. 60 4, 161. 60 t 19- 910- 03- 000 TRAN DAVID M& IVIE L ETAL N/ A 403, 750. 00 0. 00 403, 750. 00 4, 161. 60 4, 161. 60 19- 910- 04- 000 NGUYEN KIMBERLY& KEVIN ETAL N/ A 380, 000. 00 0. 00 380, 000. 00 3, 641. 40 3, 641. 40 19- 910- 05- 000 GRAY' S STATION LLC N/ A 102, 730. 00 0. 00 102, 730. 00 3, 771. 45 3, 771. 44 19- 910- 06- 000 ALANO FLORIETO G N/ A 97, 592. 00 0. 00 97, 592. 00 3, 771. 45 3, 771. 44 19- 910- 07- 000 GRAY' S STATION LLC N/ A 141, 254. 00 0. 00 141, 254. 00 4, 031. 55 4, 031. 54 19- 910- 08- 000 CLAWSON JOHN R& CAROLE S ETAL N/ A 467, 500. 00 0. 00 467, 500. 00 3, 771 A5 3, 771. 44 19- 910- 09- 000 VERZOSA JOHN& MARIGOLD N ETAL N/ A 467, 500. 00 0. 00 467, 500. 00 3, 771. 45 3, 771. 44 19- 910- 10- 000 OLIN BILL N/ A 522, 500. 00 0. 00 522, 500. 00 3, 641. 40 3, 641. 40 19- 910- 11- 000 SPERBECK JEFFREY& ANNE TRSTES ETAL N/ A 522, 500. 00 0. 00 522, 500. 00 3, 641. 40 3, 641. 40 19- 910- 12- 000 SPAULDING BRIAN ETAL N/ A 467, 500. 00 0. 00 467, 500. 00 3, 771. 45 3, 771. 44 19- 910- 13- 000 GRAY' S STATION LLC N/ A 141, 254. 00 0. 00 141, 254. 00 3, 641. 40 3, 641. 40 19- 910- 14- 000 OTTENWELLER CHRISTOPHER R ETAL N/ A 522, 500. 00 0. 00 522, 500. 00 3, 641. 40 3, 641. 40 19- 910- 15- 000 CIVJAN NEAL N/ A 641, 250. 00 0. 00 641, 250. 00 4, 031. 55 4, 031. 54 19- 910- 16- 000 DELARROZ MANNY M& JUANITA L N/ A 425, 000. 00 0. 00 425, 000. 00 4, 031. 55 4, 031. 54 19- 910- 17- 000 DELARROZ MANUEL M& JUANITA L N/ A 425, 000. 00 0. 00 425, 000. 00 3, 771. 45 3, 771. 44 MuniFinancial Fiscal Year 2006/ 07 Annual Report Page 6 of 7 Truckee Donner PUD fwk& Community Facilities District No. 04- 1 ( Grays Crossing) W- 2 Charge Detail Report( Sorted by Assessor' s Parcel Number) 19- 910- 18- 000 GRAYS STATION LLC N/ A 147, 675. 00 0. 00 147, 675. 00 3, 901. 50 3, 901. 50 19- 910- 19- 000 GRAY' S STATION LLC N/ A 141, 254. 00 0. 00 141, 254. 00 4, 161. 60 4, 161. 60 19- 910- 20- 000 DICKERMAN DANIEL T& PAMELA J N/ A 255, 000. 00 0. 00 255, 000, 00 3, 771. 45 3, 771. 44 19- 910- 21- 000 NARVICK GREG R& DANIELLE M N/ A 255, 000. 00 0. 00 255, 000. 00 3, 771. 45 3, 771. 44 Total: 96, 874, 627. 00 1, 215, 000. 00 $ 98, 089, 627. 00 $ 8, 100, 372. 33 $ 1, 872, 720. 28 304 Parcel Count:Handbilled parcels are included in this Report. See Handbilled Tab for detailed Information. Parcels with an" N" as a prefix indicate newly created parcels, for which secured roll information may not yet be available. i i MuniFinancial Fiscal Year 2006/ 07 Annual Report Page 7 of 7 TRUCKEE DONNER PUBLIC UTILITY DISTRICT FINANCIAL STATEMENTS December 31, 2005 and 2004 TRUCKEE DONNER PUBLIC UTILITY DISTRICT TABLE OF CONTENTS December 31, 2005 and 2004 Independent Auditors' Report 1 — 2 Management's Discussion and Analysis 3 - 9 Consolidated Balance Sheets 10 — 11 Consolidated Statements of Revenues, Expenses, and Changes in Net Assets 12 Consolidated Statements of Cash Flows 13 — 14 Notes to Financial Statements 15 — 41 Supplemental Information Consolidating Balance Sheets — 2005 42 — 43 Consolidating Statements of Revenues, Expenses, and Changes in Net Assets 44 Consolidating Statements of Cash Flows 45 —46 VirchowKrause INDEPENDENT AUDITORS' REPORT The Board of Directors Truckee Donner Public Utility District Truckee, California We have audited the accompanying balance sheet of the Truckee Donner Public Utility District as of December 31, 2005, and the related statements of revenues, expenses, and changes in net assets and cash flows for the year then ended, as noted in the table of contents. These financial statements are the responsibility of the Truckee Donner Public Utility District's management. Our responsibility is to express an opinion on these financial statements based on our audit. The financial statements of the Truckee Donner Public Utility District as of and for the year ended December 31, 2004 were audited by other auditors whose report, dated April 8, 2005, expressed an unqualified opinion on those financial statements. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Governmental Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Truckee Donner Public Utility District at December 31, 2005, and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated April 7, 2006 on our consideration of the Truckee Donner Public Utility District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing and not to provide an opinion on the internal control of financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. Page 1 Virchow, Krause &Company, LLP Certified Public Accountants&Consultants•An Independent Member of Baker Tilly International The Board of Directors Truckee Donner Public Utility District The management's discussion and analysis on pages 3 through 9 is not a required part of the basic financial statements, but is supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. Our audit was conducted for the purpose of forming an opinion on the financial statements taken as a whole. The consolidating statements included in the back of this report are presented for purposes of additional analysis and is not a required part of the financial statements. The consolidating statements have been subjected to the auditing procedures applied in the audit of the financial statements and, in our opinion, are fairly stated, in all material respects, in relation to the financial statements taken as a whole. Madison, Wisconsin April 7, 2006 Page 2 TRUCKEE DONNER PUBLIC UTILITY DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2005 and 2004 As financial management of the Truckee Donner Public Utility District, we offer readers of these financial statements this narrative overview and analysis of the financial activities of the District for the years ended December 31, 2005 and 2004. This discussion and analysis is designed to assist the reader in focusing on the significant financial issues, provide an overview of the District's financial activity and identify changes in the District's financial position. We encourage readers to consider the information presented here in conjunction with that presented within the basic financial statements. The reader should take time to read and evaluate all sections of this report, including the footnotes and other supplementary information that is provided, in addition to this MD&A. FINANCIAL HIGHLIGHTS The District's capital assets, net, increased $4.0 million (or 5.7%) from $66.6 million at December 31, 2004 to $70.6 million at December 31, 2005, primarily due to the infrastructure constructed for a new development within the Truckee Donner Public Utility District's service area. The District's total net assets increased by $1.1 million (or 5.2%) from $19.4 million at December 31, 2004 to $20.5 million at December 31, 2005. The increase is due to additional billing revenues, partially offset by additional operating expenses, along with higher tax revenues and income from investments. Operating revenues increased $0.5 million (or 2.1%) from $24.1 million for the year ended December 31, 2004 to $24.7 million for the year ended December 31, 2005, primarily due to electric and water rate increases and customer growth. Net non-operating revenues/expenses decreased $1.3 million from 2004, primarily from increases in income from investments, additional tax revenues from the Gray's Crossing Community Facilities District and the sale of capital assets. Operating expenses of the District increased by $787,000 (or 4.0%) from $19.3 million during 2004 to $20.1 million during 2005, due primarily to increased operation and administration costs. During 2004, the District entered into long term financing with the California State Revolving Fund in the amount of $9.0 million for the financing of the replacement of the Donner Lake water system. An additional $2.9 million was drawn down on this loan in 2005 and an additional $1.0 in 2006. In 2004 the District also issued $15.4 million in Mello Roos bonds to finance infrastructure for a new development within the Truckee Donner Public Utility District's service area (Gray's Crossing). During 2005, the District issued another 19.2 million in Mello Roos bonds to finance the second phase of the Gray's Crossing Project. The Mello Roos bonds represent a land secured financing and are not payable from or secured by any District assets. The Mello Roos bond proceeds are used to finance public agency infrastructure, to fund reserve and prepaid interest funds and to pay closing costs. Page 3 TRUCKEE DONNER PUBLIC UTILITY DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2005 and 2004 OVERVIEW OF THE FINANCIAL STATEMENTS This report includes Management's Discussion and Analysis, the Independent Auditors' Report, the Basic Financial Statements, (which includes the notes to the financial statements), and Supplementary Information. REQUIRED FINANCIAL STATEMENTS The financial statements of the District are designed to provide readers with a broad overview of the District's finances similar to a private-sector business. They have been prepared using the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America (GAAP). Under this basis of accounting, revenues are recognized in the period in which they are earned and expenses are recognized in the period in which they are incurred, regardless of the timing of related cash flows. These statements offer short- and long- term financial information about the District's activities. The reporting entity consists of the primary government, which has two departments (electric operations and water operations), and the blended component units. Further details about the component units are provided in Note 1. The Balance Sheet presents information on all of the District's assets and liabilities and provides information about the nature and amounts of investments in resources (assets) and the obligations to District creditors (liabilities). It also provides the basis for computing rate of return, evaluating the capital structure of the District and assessing the liquidity and financial flexibility of the District. All of the current year's revenues and expenses are accounted for in the Statement of Revenues, Expenses, and Changes in Net Assets. This statement provides a measurement of the District's operations over the past year and can be used to determine whether the District has successfully recovered all its costs through its rates and other charges and to also analyze profitability and credit worthiness. The Statement of Cash Flows provides relevant information about the District's cash receipts and cash payments during the reporting period. This statement reports cash receipts and cash payments resulting from operating, non-capital financing, capital and related financing and investing activities. When used with related disclosures and information in the other financial statements, the statement of cash flows should provide insight into (a) the District's ability to generate future net cash flows, (b) the District's ability to meet its obligations as they come due, c) the District's needs for external financing, (d) the reasons for differences between operating income and associated cash receipts and payments and (e) the effects on the District's financial position of both its cash and its noncash investing, capital and financing transactions during the period. The changes in cash balances are an important indicator of the District's liquidity and financial condition. Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the basic financial statements. This includes but is not limited to, significant accounting policies, significant financial statement balances and activities, material risks, commitments and obligations and subsequent events, as applicable. Page 4 TRUCKEE DONNER PUBLIC UTILITY DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2005 and 2004 DISTRICT HIGHLIGHTS The condensed financial statements are presented below. Condensed Balance Sheet Increase Decrease) %Change ASSETS 2005 2004 2003 2005-2004 2005-2004 Current assets 16,392,557 $ 14,787,030 $24,379,444 $ 1,605,527 10.9% Non-current assets: Capital assets, net 70,649,606 66,573,669 61,269,615 4,075,937 6.1% Restricted assets 28,604,486 14,738,978 6,383,989 13,865,508 94.1% Other long-term assets 12,928,415 13,450,587 3,378,430 522,172) 3.9)% TOTAL ASSETS 128,575,064 $109,550,264 $95,411,478 $ 19,024,800 17.4% LIABILITIES AND NET ASSETS Current liabilities 7,604,771 $ 8,922,223 $15,789,052 $ (1,317,452) (14.8)% Non-current Liabilities Long-term debt, net of current portion 93,346,770 74,894,133 53,589,753 18,452,637 24.6% Deferred revenue 7,103,767 6,311,569 5,537,062 792,198 12.6% Total Liabilities 108,055,308 90,127,925 74,915,867 17,927,383 19.9% Net Assets Invested in capital assets, net of related debt 14,486,509 24,870,432 26,304,401 (10,383,923) (41.8)% Restricted for debt service 14,808,782 16,659,153 16,049,371 (1,850,371) (11.1)% Unrestricted 8,775,535) (22,107,246) (21,858,161) 13,331,711 60.3)% Total Net Assets 20,519,756 19,422,339 20,495,611 1,097,417 5.7% TOTAL LIABILITIES AND NET ASSETS $128,575,064 $109,550,264 $95,411,478 $ 19,024,800 17.4% The increase in restricted assets at December 31, 2005 is due primarily to the funds held for the construction of the Gray's Crossing Mello Roos community facilities project. The increase in restricted assets at December 31, 2004 from December 31, 2003 is due primarily to the reserve funds restricted for the Mello Roos community facilities district bonds. Page 5 TRUCKEE DONNER PUBLIC UTILITY DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2005 and 2004 DISTRICT HIGHLIGHTS (cont.) The overall increase of $18.6 million in 2005 from 2004 in bonds and notes payable, including current maturities, is due primarily to the issuance of $19.1 million of additional Mello Roos financing. The overall increase of $22.3 million in 2004 from 2003 in bonds and notes payable, including current maturities, is due primarily to the issuance of $15.4 million in Mello Roos community facilities district bonds, secured by land and used to finance capital infrastructure for a new development within the District's service area and $9.0 million borrowed from the state revolving fund to finance improvements to the District's water service. The new debt was partially offset by the principal portion of debt service payments on revenue bonds and principal payments on various notes payable during the year. Current liabilities (not including current debt maturities) stayed stable from 2004 to 2005, while current liabilities decreased in 2004 from 2003 with the payment of the purchased power contract settlement. Net assets invested in capital assets, net of related debt, consist of capital assets, net of accumulated depreciation, reduced by the amount of outstanding indebtedness attributable to the acquisition, construction or improvement of those assets. When there are significant unspent bond proceeds, the portion of related debt is not to be included in the calculation of this item. Instead, that portion of the debt is included in the net assets restricted for capital projects component as an offset to the related unspent bond proceeds. Net assets restricted for debt service represents amounts restricted for payments related to outstanding revenue bonds. The District had income before capital contributions of $3.9, $2.3, and $9.3 million for the years ended December 31, 2005, 2004 and 2003, respectively. Changes in the District's net assets can be determined by reviewing the following Condensed Revenues, Expenses, and Changes in Net Assets for the year. Page 6 TRUCKEE DONNER PUBLIC UTILITY DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2005 and 2004 DISTRICT HIGHLIGHTS (cont.) Condensed Revenues, Expenses, and Changes in Net Assets Increase Decrease) 2005 2004 2003 2005-2004 Sales to consumers 23,881,041 $ 22,778,873 $ 20,765,148 $ 1,102,168 Other operating revenues 805,544 1,392,155 1,224,277 586,611) Total Operating Revenues 24,686,585 24,171,028 21,989,425 515,557 Operating expenses 20,121,360 19,334,790 16,674,456 786,570 Operating Income(Loss) 4,565,225 4,836,238 5,314,969 271,013) Non-operating revenues (expenses) 676,877)2,008,275) 3,937,941 1,331,398 Income(loss)before capital contributions 3,888,348 2,827,963 9,252,910 1,060,385 Capital contributions, net 2,790,931)3,901,235) 974,408) 1,110,304 Change in net assets 1,097,417 1,073,272) 8,278,502 2,170,689 NET ASSETS, Beginning of Year 19,422,339 20,495,611 12,217,109 1,073,272) NET ASSETS, END OF YEAR 20,519,756 $ 19,422,339 $ 20,495,611 $ 1,097,417 Sales to consumers were $23.9 million in 2005 and $22.8 million in 2004. The overall increase of 1.1 million (or 4.8%) is primarily due to electric and water rate increases to pay for increased operating costs and growth in customers. Sales to consumers were $20.8 million in 2003. The overall increase from 2003 to 2004 is primarily due to electric and water rate increases to pay for increased operating costs and growth in customers Total operating expenses were $20.1 million in 2005 and $19.3 million in 2004. The overall increase of $787,000 in operating expenses is due primarily to residual effects of changing benefit plans in 2004. Total operating expenses were $16.7 million in 2003. The overall increase of $2.7 million in operating expenses in 2004 from 2003 is due primarily to increased purchased power costs due to growth, as well as increased operating costs and depreciation expense. Non- operating revenues/expenses decreased $1.3 million in 2005 primarily due to an increase in interest on investments and a gain on sale of surplus property. Non-operating revenues decreased $5.9 million in 2004 from 2003 primarily due to the sale of capital assets for $5.3 million in 2003, and an increase in interest expense related to new borrowings in 2004. Page 7 TRUCKEE DONNER PUBLIC UTILITY DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2005 and 2004 DISTRICT HIGHLIGHTS (cont.) Capital contributions decreased from a net outflow of $3.9 million in 2004 to a net outflow of 2.8 million in 2005, primarily due to the completion of the Donner Lake project in 2005 and the capital projects completed and contributed out from Gray's Crossing and Old Greenwood Community Facilities Districts in 2004. Capital contributions increased from a net outflow 1.0 million in 2003 to a net outflow of $3.9 million in 2004 primarily due to contributions received in 2003 related to construction at the Donner Lake Assessment District and Glenshire water systems and the capital projects completed and contributed out from Gray's Crossing and Old Greenwood Community Facilities Districts in 2004. CAPITAL ASSETS As of December 31, 2005, 2004 and 2003, the District had $70.6, $66.6, and $61.7 million, respectively, invested in a variety of capital assets, net of accumulated depreciation. A summary of capital assets is reflected in the following schedule. 2005 2004 2003 Electric distribution 20,884,302 $ 19,660,201 $ 19,506,360 Water distribution 57,086,129 46,313,905 42,811,920 General plant 9,969,072 8,929,095 8,939,989 Sub-totals 87,939,503 74,903,201 71,258,269 Less: Accumulated depreciation 22,702,608) 20,852,855) 18,187,169) 65,236,895 54,050,346 53,071,100 Construction work in progress 4,982,613 12,093,223 8,198,515 Land held for future use 430,100 430,100 430,100 TOTALS 70,649,608 $ 66,573,669 $ 61,699,715 Net capital assets (additions, less retirements and depreciation) at December 31, 2005 increased 4.1 million (or 6.2%) from December 31, 2004 and net capital assets at December 31, 2004 increased $4.9 million (or 8.0%) from December 31, 2003. The increases in both years have been due primarily to the electric and water plant additions for new development within the District's service area. LONG-TERM DEBT Long-term debt includes revenue bonds and notes payable. At December 31, 2005, 2004 and 2003, the District had $97.0 million, $78.4 million and $56.1 million, respectively, in long-term debt outstanding, including current maturities. Page 8 TRUCKEE DONNER PUBLIC UTILITY DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2005 and 2004 LONG-TERM DEBT (cont.) In July 2005, the Gray's Crossing Community Facilities District issued the second in a series of two bondings for $19.2 million in special tax bonds, the proceeds of which are to be used to acquire certain infrastructure assets,within a new development within the District's service area. In October 2004, the Gray's Crossing Community Facilities District issued $15.4 million in special tax bonds, the proceeds of which were used to acquire certain infrastructure assets within a new development within the District's service area. In April 2004, the District obtained $9.0 million in financing from a State Revolving Fund Loan, the proceeds of which are being used in the replacement of the Donner Lake Water System. An additional $2.9 million was drawn on this loan in 2005 and an additional $1.0 million in 2006. CONTACTING THE DISTRICT'S FINANCIAL MANAGEMENT The financial report is designed to provide readers with a general overview of the District's finances and to demonstrate the District's accountability for the money it receives. If you have questions about this report or need additional financial information, contact Truckee Donner Public Utility District, Attn: Finance Department, P.O. Box 309, Truckee, CA 96160. Page 9 Consolidating Balance Sheets — 2005 Follows TRUCKEE DONNER PUBLIC UTILITY DISTRICT CONSOLIDATED BALANCE SHEETS December 31, 2005 and 2004 ASSETS 2005 2004 CURRENT ASSETS Funds Operating 5,505,857 $ 5,378,547 Designated 1,423,687 1,295,728 Restricted 3,103,567 3,032,286 Total Funds 10,033,111 9,706,561 Accounts receivable, net 3,385,655 2,628,116 Unbilled revenues 1,747,644 1,506,002 Accrued interest receivable 221,996 145,019 Materials, supplies and fuel inventory 793,263 548,081 Prepaid expenses 201,196 246,134 Other 9,692 7,117 Total Current Assets 16,392,557 14,787,030 NON-CURRENT ASSETS Restricted funds 28,604,486 14,738,978 Special assessments receivable 10,125,905 10,591,683 Deferred charges Unamortized debt expense 1,716,014 1,693,308 Other 1,086,496 1,165,596 Total Non-Current Assets 41,532,901 28,189,565 CAPITAL ASSETS Utility plant 87,840,290 72,159,526 Accumulated depreciation 22,702,610) (20,852,859) Construction work in progress 5,081,826 14,836,902 Land held for future use 430,100 430,100 Total Utility Plant 70,649,606 66,573,669 TOTAL ASSETS 128,575,064 $ 109,550,264 Page 10 LIABILITIES AND NET ASSETS 2005 2004 CURRENT LIABILITIES Other Liabilities Accounts payable 1,687,186 $ 3,505,718 Customer deposits 190,333 196,031 Other 554,358 496,256 Total Other Liabilities 2,431,877 4,198,005 Current Liabilities Payable From Restricted Assets Current portion of long-term debt 3,651,400 3,499,570 Accrued interest payable 1,521,494 1,224,648 Total Current Liabilities Payable from Restricted Assets 5,172,894 4,724,218 Total Current Liabilities 7,604,771 8,922,223 NON-CURRENT LIABILITIES Long-term debt, net of discounts and premiums 89,643,950 70,615,319 Installment loans 3,702,820 4,278,814 Deferred revenues 7,103,767 6,311,569 Total Non-Current Liabilities 100,450,537 81,205,702 Total Liabilities 108,055,308 90,127,925 NET ASSETS Invested in capital assets, net of related debt 14,486,509 24,870,432 Restricted for debt service 14,808,782 16,659,153 Unrestricted (Deficit) 8,775,535) (22,107,246) Total Net Assets 20,519,756 19,422,339 TOTAL LIABILITIES AND NET ASSETS 128,575,064 $ 109,550,264 See accompanying notes to financial statements. Page 11 TRUCKEE DONNER PUBLIC UTILITY DISTRICT CONSOLIDATED STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS Years Ended December 31, 2005 and 2004 2005 2004 OPERATING REVENUES Sales to customers 23,881,041 $ 22,778,873 Construction fees 572,846 Standby fees 205,659 221,500 Other 599,885 597,809 Total Operating Revenues 24,686,585 24,171,028 OPERATING EXPENSES Purchased power 8,279,662 8,269,483 Operations and maintenance 5,130,152 4,649,682 Consumer services 846,494 877,303 Administration and general 3,219,632 2,835,750 Depreciation 2,645,420 2,702,572 Total Operating Expenses 20,121,360 19,334,790 Operating Income 4,565,225 4,836,238 NON-OPERATING REVENUE (EXPENSES) Special tax revenue 1,128,475 354,706 Investment income 1,224,482 627,316 Interest expense 3,170,288) (2,887,732) Amortization 143,715) (102,906) Gain on disposition of assets 411,370 341 Loss on early retirement of assets 127,201) Total Non-Operating Expenses 676,877) (2,008,275) Income Before Contributions 3,888,348 2,827,963 CAPITAL CONTRIBUTIONS 2,790,931) (3,901,235) CHANGE IN NET ASSETS 1,097,417 (1,073,272) NET ASSETS- Beginning of Year 19,422,339 20,495,611 NET ASSETS-END OF YEAR 20,519,756 $ 19,422,339 See accompanying notes to financial statements. Page 12 Consolidating Statements of Cash Flows Follows TRUCKEE DONNER PUBLIC UTILITY DISTRICT CONSOLIDATED STATEMENTS OF CASH FLOWS Years Ended December 31, 2005 and 2004 CASH FLOWS FROM OPERATING ACTIVITIES 2005 2004 Received from customers 24,566,515 $ 22,210,386 Paid to suppliers for goods and services 15,816,638) (8,829,639) Paid to employees for services 3,840,157) (4,098)633) Net Cash Flows from Operating Activities 4,909,720 9,282,114 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Principal payments on long-term debt 2,320,000) (1,695,000) Interest payments on long-term debt 1,123,550) (1,1211310) Net Cash Flows from Noncapital Financing Activities 3,443,550) (2,816,310) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital expenditures for utility plant 4,854,375) (11,837,064) Cost of disposal of property 44,608) Proceeds from sale of land 411,370 180,242 Capital contributions, connection and facility fees 3,656,655 755,199 Special assessments receipts 517,063 474,999 Capital contributed to developers 6,778,828) 374,451) Special tax receipts 687,431 Debt issuance costs 465,834) Proceeds from issuance of new debt 22,400,841 25,012,223 Principal payments on long-term debt 1,179,570) (10,916,200) Interest payments on long-term debt 2,769,192) (1,6551265) Cash Flows From Capital and Related Financing Activities 11,580,953 1,639,683 CASH FLOWS FROM INVESTING ACTIVITIES Interest received 1,144,935 627,317 Cash Flows from Investing Activities 1,144,935 627,317 Net Change in Cash and Cash Equivalents 14,192,058 8,732,804 CASH AND CASH EQUIVALENTS—Beginning of Year 23,637,069 14,904,265 CASH AND CASH EQUIVALENTS—END OF YEAR 37,829,127 $ 23,637,069 NONCASH CAPITAL AND INVESTING ACTIVITIES Developer and customer added capital assets 1,702,889 $ 2,627,306 Broadband lease 154,860 Capital assets constructed for others 7,283,740) Page 13 2005 2004 RECONCILIATION OF OPERATING INCOME TO NET CASH FLOWS FROM OPERATING ACTIVITIES Operating income 4,565,225 $ 4,836,238 Noncash Items Included in Operating Income Depreciation and amortization 2,645,420 2,781,672 Depreciation charged to other accounts 179,432 Changes in assets and liabilities Accounts receivable and unbilled revenues 114,372) 520,376) Materials, supplies and fuel inventory 245,182) 3,589 Prepaid expenses and other current assets 124,038 129,745 Accounts payable 2,297,244)1,747,134 Deferred revenue 419,801 Customer deposits 5,698) 43,653) Accrued payroll 58,101 72,036) NET CASH FLOWS FROM OPERATING ACTIVITIES 4,909,720 $ 9,282,114 RECONCILIATION OF CASH AND CASH EQUIVALENTS TC THE BALANCE SHEET Operating 5,505,857 $ 5,378,547 Designated 1,423,687 1,295,728 Restricted bond funds-current 3,103,567 3,032,286 Restricted bond funds-non-current 28,604,486 14,738,978 Total Cash and Investments 38,637,597 24,445,539 Less: Long-term Investments 808,470) 808,470) TOTAL CASH AND CASH EQUIVALENTS 37,829,127 $ 23,637,069 See accompanying notes to financial statements. Page 14 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2005 and 2004 NOTE 1 —ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. ORGANIZATION The Truckee Donner Public Utility District (the District) was formed and operates under the State of California Public Utility District Act. The District is governed by a board of directors which consists of five elected members. The District provides electric and water service to portions of Nevada and Placer counties described as Truckee and Donner Lake. The electric and water service operations are separately maintained and operated. These financial statements reflect the combined electric and water operations of the District. All significant transactions between electric and water operations have been eliminated. These eliminations include power purchases and rent for shared facilities. The District's blended component units consist of organizations whose respective governing Boards are comprised entirely of the members of the District's Board of Directors. These organizations are reported as if they are a part of the District's operations. The entities are legally separate, however in the case of the Truckee Donner Public Utility District Financing Corporation, financial support has been pledged and financial and operational policies may be significantly influenced by the District. Following is a description of the District's blended component units: Truckee Donner Public Utility District Financing Corporation: legal entity created to issue and administer Certificates of Participation on behalf of the District. See note 5. Truckee Donner Public Utility District Community Facilities District No. 03-1 (Old Greenwood): legal entity created to issue special tax bonds to finance various public improvements needed to develop property located within Old Greenwood. See note 7. Truckee Donner Public Utility District Community Facilities District No. 04-01 (Gray's Crossing): legal entity created to issue special tax bonds to finance various public improvements needed to develop property located within Gray's Crossing. See note 7. Separate standalone financial statements are not available for the blended component units described above. Unless noted, disclosures relating to the component units are the same as for the District. B. ACCOUNTING POLICIES The financial statements of Truckee Donner Public Utility District (District) have been prepared in conformity with accounting principles generally accepted in the United States of America. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset used. Revenues, expenses, gains, losses, assets and liabilities resulting from exchange and exchange-like transactions are recognized when the exchange takes place. The district follows all pronouncements of the Governmental Accounting Standards Board, and has elected not to follow Financial Accounting Standards Board pronouncements issued after November 30, 1989. Page 15 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2005 and 2004 NOTE 1 —ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) C. USE OF ESTIMATES Preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. D. DESIGNATED ASSETS The board has designated certain resources for future capital projects, replacements and operational needs. E. RESTRICTED ASSETS Restricted assets are assets restricted by the covenants of long-term financial arrangements or other third party legal restrictions. Restricted assets are used in accordance with their requirements and where both restricted and unrestricted resources are available for use, restricted resources are used first and then unrestricted as they are needed. F. ACCOUNTS RECEIVABLE Accounts receivable are reported net of allowances of $30,521 and $50,584 for 2005 and 2004, respectively. G. MATERIALS AND SUPPLIES Materials and supplies are recorded at average cost. H. UNAMORTIZED FINANCING COSTS Certain costs related to borrowing funds are amortized over the term of the related borrowings. 1. SPECIAL ASSESSMENT RECEIVABLE Special assessments represent amounts due from property owners within the Donner Lake Assessment District for improvements made by the District pursuant to an agreement with the property owners to improve their water quality as discussed in Note 8. Page 16 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2005 and 2004 NOTE 1 —ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) J. CAPITAL ASSETS Capital assets are generally defined by the district based on assembly units and having an estimated useful life in excess of one year. Capital assets of the District are stated at the lower of cost or the fair market value at the time of contribution to the District. Major outlays for plant are capitalized as projects are constructed. Depreciation on capital assets is calculated using the straight-line method over the estimated useful lives of the assets, which are as follows: Distribution Plant Water 20-40 years Electric 23-35 years Computer software and hardware 4-5 years Buildings and improvements 20-33 years Equipment and furniture 10 years It is the District's policy to capitalize interest paid on debt incurred for significant construction projects while those projects are under construction, less any interest earned on related unspent debt proceeds. In 2005 and 2004, interest was capitalized in connection with the Gray's Crossing Community Facility District. K. COMPENSATED ABSENCES Under terms of employment, employees are granted sick leave and vacations in varying amounts. Only benefits considered to be vested are disclosed in these statements. Vested vacation and sick leave pay is accrued when earned in the financial statements. The liability is liquidated from general operating revenues of the utility. L. REVENUE RECOGNITION Revenues are recorded as meters are read on a cycle basis throughout each month for electric and commercial water. Other water customers are billed on a flat-rate basis, and revenues are recorded as billed. Also, the District records estimated revenues earned but not billed to customers as of the end of the year. Revenues from connection fees are recognized upon completion of the connection. Income that the District has earned through investing its excess cash is reflected within income from investments when earned. M. REVENUE AND EXPENSE CLASSIFICATION The District distinguishes operating revenues and expenses from non-operating items in the preparation of its financial statements. Operating revenues and expenses generally result from providing water and electric services in connection with the District's principal ongoing operations. The principal operating revenues are sales to customers. The District's operating expenses include power purchases, labor, materials, services, and other expenses related to the delivery of water and electric services. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses, or capital contributions. Page 17 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2005 and 2004 NOTE 1 —ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) N. POWER PURCHASES AND TRANSMISSION On March 7, 2003, the District entered into a power purchase agreement with Constellation Power Source, Inc. (CPS), under which CPS will supply the District's power needs through 2007. This power supply replaces the interim power being provided to the District by IDACORP Energy L.P. under the terms of the related settlement agreement. The agreement with CPS provides for a block purchase of power at $49.95 per megawatt hour designed to cover the District's projected monthly power requirements. In addition, the agreement contains call and put options to provide the District with the flexibility to buy additional power or sell excess power, depending upon the District's actual monthly load requirements. Beginning January 1, 2005, the District entered into a membership agreement with the Western Area Power Administration (WAPA). In accordance with this agreement, the District is entitled to an allocation of power generated by the WAPA system. Because delivery of this power to the District is difficult, the District has assigned this power to its third party power scheduler. The scheduler then uses the value of this "banked" power to offset period peak power purchases above the CPS allotment. In 1999, the District entered into an agreement with Sierra Pacific Power Company (SPPC), whereby SPPC will provide transmission services to the District through December 31, 2027. In addition, the District purchases scheduling and dispatch services from Northern California Power Agency. These purchases of services represented 9.1% and. 10.3% of total purchased power costs in 2005 and 2004, respectively. In December of 2005 the District entered into an agreement with the Utah Associated Municipal Power System (UAMPS) under which UAMPS will supply the District with a fixed amount of power capacity and energy each month for the period January 1, 2008 through March 24, 2009 to replace energy contracts expiring with CPS. O. INCOME TAXES As a government agency, the District is exempt from payment of federal and state income taxes. P. TAX REVENUES Beginning in 2004, the District levies ad valorem property tax on all the taxable property within the Old Greenwood Community Facility District in an amount sufficient to pay the yearly principal and interest on the Special Assessment District Tax Bonds (see note 5). The District had revenues of$724,835 in 2005 and $354,706 in 2004. Beginning in 2005, the District levies ad valorem property tax on all taxable property within the Gray's Crossing Community Facility District in an amount sufficient to pay the yearly principal and interest on the Special Assessment District Tax Bonds(see note 5). The District had revenues of$403,640 in 2005. Taxes are assessed based on the county tax year ending June 30, resulting in deferred revenue for each of the community facility districts. Page 18 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2005 and 2004 NOTE 1 —ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) Q. CONTRIBUTED CAPITAL ASSETS A portion of the District's capital assets have been obtained through amounts charged to developers for plant constructed by the District; direct contributions of capital assets from developers and other parties; as well as assessments of local property owners. These items are recognized within capital assets as construction is completed for plant constructed by the District based on the cost of the items, when received for contributed capital assets based on the actual or estimated fair value of the contributed items, or upon completion of the related project for development agreements. The District records amounts received within capital contributions when a legally enforceable claim is established. Until the District meets the criteria to record the amounts described above as capital contributions, any amounts received are recorded within deferred revenue on the balance sheet. During 2005 and 2004, the Gray's Crossing Community Facility District contributed $7,412,132 and $6,917,740 to the District and other government entities. The contribution out from Gray's Crossing Community Facility District has been netted with capital contributions on the accompanying statement of revenues, expenses, and changes in net assets. During 2005 and 2004, the Old Greenwood Community Facility District contributed $385,645 and 366,000, respectively, to the District and other government entities. The contribution out from the Old Greenwood Community Facility District has been netted with capital contributions on the accompanying statement of revenues, expenses, and changes in net assets. R. ACCOUNTING PRONOUNCEMENTS NOT YET IMPLEMENTED In July 2004, the GASB issued Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions. Statement No. 45 establishes standards for the measurement, recognition, and display of other postemployment benefits OPEB) expense/expenditures and related liabilities and/or assets, note disclosures, and, if applicable, required supplementary information in the financial reports of state and local governmental employers. OPEB includes postemployment healthcare, as well as other forms of postemployment benefits (for example, life insurance) when provided separately from a pension plan. The adoption of Statement No. 45 is effective for the District beginning fiscal year 2008. The District is evaluating the impact that Statement No. 45 will have on the financial position and operations of the District as a result of implementing this standard. S. COMPARATIVE DATA Certain amounts presented in the prior year data have been reclassified in order to be consistent with the current year's financial presentation. Page 19 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2005 and 2004 NOTE 2—CASH AND INVESTMENTS Cash and investments are recorded in accounts as either restricted or unrestricted as required by the District's certificates of participation indentures or other third-party legal restrictions. Restricted assets represent funds that are restricted by certificates of participation covenants or third party contractual agreements. Assets that are allocated by resolution of the board of directors are considered to be board designated assets. Board designated assets are a component of unrestricted assets as their use may be redirected at any time by approval of the Board. Upon Board approval, assets from designated accounts may be used to fund capital projects. These designated accounts are replenished with lost earnings accordingly. Such accounts have been designated by the board of directors for the following purposes: Building Fund In compliance with Board rules, the District maintains a building fund to pay for capital improvements to the District office complex. Storm Damage Fund The District maintains a designated fund to provide for storm damages that may occur in the future. Electric Rate Reserve In compliance with Board rules, the District has created an electric rate stabilization fund in anticipation of future costs. During both 2005 and 2004, there was no utilization of these funds to offset increased power costs in lieu of raising electric rates. Reserve for Future Meters Prior to 1992, connection fees charged to applicants for water service included an amount, which was maintained in a designated fund, to offset the cost of future metering. As meters are installed, these funds are used to pay for related costs. Prepaid Connection Fees In compliance with Board rules, the District has set aside prepaid connection fees to cover installation costs of water services within specified subdivisions. Land Sale Trust Fund The District's Board has set aside certain funds from the sale of surplus properties to pay for future capital improvement projects. Page 20 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2005 and 2004 NOTE 2—CASH AND INVESTMENTS (cont.) As of December 31, board designated accounts consisted of the following: 2005 2004 Building fund 268,076 $ 274,202 Storm damage fund 331,581 323,052 Electric rate reserve 452,512 440,870 Reserve for future meters 270,210 184,739 Prepaid connection fees 73,755 72,865 Land sale trust fund 27,553 Totals 1,423,687 $ 1,295,728 Certain assets have been restricted by certificates of participation covenants or third party contractual agreements for the following purposes: Certificates of Participation: Electric The terms of the Electric Division's Certificates of Participation require a reserve fund as security for each principal and interest payment as they come due. A reserve fund is set aside for the highest annual principal and interest payment over the life of the borrowed amount. All of these reserve funds are held by BNY Western Trust Company. Certificates of Participation: Water The terms of the Water Division's Certificates of Participation require a restricted fund to provide for payment of principal and interest as they come due. The Water Division's Certificates of Participation debt funds are held by BNY Western Trust Company. Facilities Fees The District charges facilities fees to applicants for new service to cover the costs of infrastructure needed to meet their systems demand. The use of such funds is restricted by California state law. Department of Water Resources (DWR) Prop 55 Reserve Fund Regulations relating to the Department of Water Resources loan require the accumulation of a reserve fund as security for each principal and interest payment as they come due. The total reserve fund equals two semi-annual payments. These funds will be set aside for the life of the borrowed amount. All of the reserve funds are invested in the State of California Local Agency Investment Fund. Page 21 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2005 and 2004 NOTE 2—CASH AND INVESTMENTS (cont.) Glenshire Escrow Accounts As described in more detail in note 10, the District received cash as part of its acquisition of the Glenshire water system and from a monthly surcharge paid by residents. The terms of the acquisition agreement specify that the cash be utilized for the construction of improvements to the Glenshire water system. The funds are being used to pay the debt service costs related to improvements. Donner Lake Special Assessment District Improvement Fund The District established the Donner Lake Special Assessment District Improvement Fund to account for all funds received from the Special Assessment Receivable, which will be used to pay the debt service costs related to the Donner Lake Water System project. Old Greenwood Construction Fund During 2003, the Old Greenwood Community Facilities District issued $12,445,000 of Special Tax bonds to finance various property improvements within Old Greenwood. The District established the Old Greenwood Construction Fund to account for the unspent bond proceeds. The District is allowed to draw upon such funds as valid construction costs are incurred. Gray's Crossing Project Fund During 2004, the Gray's Crossing Community Facilities District issued $15,375,000 of Special Tax bonds to finance various property improvements with Gray's Crossing. Additional bonds of $19,155,000 were issued in 2005. The District established the Gray's Crossing Project Fund to account for the unspent bond proceeds. The District is allowed to draw upon such funds as valid construction costs are incurred. Equipment Loans Escrow Accounts During 2005 and 2004, the District obtained loans to purchase various capital equipment. As the District receives loan funds, the proceeds are held in escrow until qualified purchases are made. The District intends to use funds remaining in escrow for future purchases of capital equipment. Other (Area Improvement Funds) The District receives funds from the County of Nevada, which are to be used only for improvements to specific areas within the District's boundaries in Nevada County. These areas include various Nevada County assessment districts. When both restricted and unrestricted resources are available for use, it is the district's policy to use restricted resources first, then unrestricted resources as they are needed. Page 22 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2005 and 2004 NOTE 2—CASH AND INVESTMENTS (cont.) As of December 31, restricted cash and cash equivalents and investments consisted of the following: 2005 2004 Certificates of participation 9,298,300 $ 7,158,078 Facilities fees 3,410,386 2,447,104 DWR-Prop 55 reserve fund 305,918 275,358 Glenshire escrow accounts 98,054 81,361 Donner Lake Special Assessment District Improvement Fund 2,896,845 1,201,328 Old Greenwood Construction fund 1,264 384,642 Gray's Crossing Project Fund 15,377,777 5,677,129 Equipment loans escrow accounts 156,193 387,154 Other(area improvement funds) 163,316 159,110 Total Restricted Cash and Cash Equivalents and Investments 31,708,053 $ 17,771,264 Cash and investments are comprised of the following cash and cash equivalents and investments as of December 31: 2005 2004 Cash and cash equivalents 37,829,127 $ 23,637,068 Investments—repurchase agreement 808,470 808,470 Totals 38,637,597 $ 24,445,538 Cash and cash equivalents of $37,829,127 and $23,637,068 at December 31, 2005 and 2004, respectively, consist primarily of investments in the state pooled fund and US Treasury notes. For purposes of the statements of cash flows, the District considers all highly liquid instruments with original maturities of three months or less to be cash equivalents. The District follows GASB No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools. This statement establishes fair value standards for recording investments. The recorded amount for the District's investments approximated their fair values as of December 31, 2005 and 2004. Page 23 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2005 and 2004 NOTE 2—CASH AND INVESTMENTS (cont.) INVESTMENTS AUTHORIZED BY THE DISTRICT'S INVESTMENT POLICY The District's investment policy only authorizes investment in the local government investment pool administered by the State of California ("LAIF"). The District's investment policy does not contain any specific provisions intended to limit the District's exposure to interest rate risk, credit risk, and concentration of credit risk. At December 31, 2005 the District's deposits and investments were held as follows: Deposits 550,579 LAIF 15,064,201 Money Market Mutual Funds 22,214,347 Repurchase Agreement 808,470 Total 38,637,597 DISCLOSURES RELATING TO INTEREST RATE RISK Interest rate risk is the risk that changes in the market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. As of year end, the weighted average maturity of the investments contained in investment pools and money market mutual funds is as follows: LAI F 138 days Fidelity Tax Exempt Daily MMF 28 days Federated U.S. Treasury Cash Reserve 43 days The district also has one repurchase agreement at year end for $808,470, at 6.31%, due on 11/15/2021 and backed by U.S. Agency securities. DISCLOSURES RELATING TO CREDIT RISK Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. LAIF does not have a rating provided by a nationally recognized statistical rating organization. The Fidelity Tax Exempt Daily MMF is also not rated. The Federated U.S. Treasury Cash Reserve is rated AAAm by S&P and Aaa by Moody's. The U.S. Agency securities pledged as security for the repurchase agreement are not rated but are implicitly backed by the U.S government. Page 24 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2005 and 2004 NOTE 2—CASH AND INVESTMENTS (cont.) CUSTODIAL CREDIT RISK Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The California Government Code and the District's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits, other than the following for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless waived by the government unit). The market value of pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. As of December 31, 2005 and 2004 all deposits were fully insured or collateralized. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker/dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the District's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for investments. With respect to investments, custodial credit risk generally applies only to direct investments in marketable securities. Custodial credit risk does not apply to a local government's indirect investment in securities through the use of money market mutual funds or governmental investment pools such as LAIF. The securities underlying the repurchase agreement are held by the counterparty in the district's name. INVESTMENT IN STATE INVESTMENT POOL The District is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by the California Government Code under the oversight of the Treasurer of the State of California. The fair value of the District's investment in this pool is reported in the accompanying financial statements at amounts based upon the District's pro-rata share of the fair value provided by the LAIF for the entire LAIF portfolio (in relation to the amortized cost of the portfolio). The balance available for withdrawal is based on the accounting records maintained by the LAIF, which are recorded on an amortized cost basis. Page 25 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2005 and 2004 NOTE 3—CAPITAL ASSETS Capital assets consist of the following at December 31, 2005 and 2004: January 1, December 31, 2005 Additions Reductions 2005 Electric distribution facilities 19,660,201 $ 1,400,692 $ (176,591) $ 20,884,302 Water distribution facilities 43,570,230 13,731,447 314,761) 56,986,916 General plant 8,929,095 1,055,928 15,951) 9,969,072 72,159,526 16,188,067 507,303) 87,840,290 Less:Accumulated depreciation 20,852,859)2,843,784) 994,033 22,702,610) Construction work in progress 14,836,902 4,808,149 14,563,225) 5,081,826 Land held for future use 430,100 430,100 Totals 66,573,669 $ 18,152,432 $ (14,076,495) $ 70,649,606 January 1, December 31, 2004 Additions Reductions 2004 Electric distribution facilities 19,506,360 $ 209,218 $ (55,377) $ 19,660,201 Water distribution facilities 42,811,920 761,357 3,047) 43,570,230 General plant 8,939,989 79,584 90,478) 8,929,095 71,258,269 1,050,159 148,902) 72,159,526 Less:Accumulated depreciation 18,187,169)2,814,592) 148,902 20,852,859) Construction work in progress 8,198,515 10,211,394 3,573,007) 14,836,902 Land held for future use 430,100 430,100 Totals 61,699,715 $ 8,446,961 $ (3,573,007) $ 66,573,669 As of December 31, 2005 and 2004, the plant in service included $1,917,852 and $1,726,146 of land, respectively, which is not being depreciated. A portion of the plant has been contributed to the District. When replacement is needed, the District replaces the contributed plant with District-financed plant. During 2005 and 2004, the District capitalized $887,758 and 395,897 respectively of interest in connection with the Gray's Crossing Community Facility District and Donner Lake system improvements. Page 26 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2005 and 2004 NOTE 4—TELECOMMUNICATION SERVICES During 1999, the District initiated a project to expand their basic service offerings to include internet access, cable television and voice delivered over fiber optic networks (the broadband project). The District has completed the broadband design project and obtained the necessary regulatory approvals, franchises and contractors needed to construct and launch the broadband project. The District has also contracted with Eagle Broadband for the purchase of video and data content, to be sold and delivered to District customers upon completion of the fiber optic network. Expenses incurred by the District to date on the broadband project total $2,419,024 of which $553,534 is included in capital assets on the accompanying balance sheet. During 2005 and 2004, expenditures for this project, mainly related to legal, financing, and charges for District labor and overhead were $421,398 and $610,715, respectively, none of which were capitalized. Cebridge Connections (Cebridge), a local telecommunications service provider, filed an objection in September 2004 with the Local Agency Formation Commission (LAFCO), the entity responsible for providing regulatory approval for the broadband project. The permit authority denied the request for reconsideration, resulting in Cebridge filing a lawsuit against LAFCO. The District was not named in the lawsuit. A ruling on the lawsuit was received in January 2006. LAFCO prevailed on all portions of Cebridge's claim. Since that time Cebridge has filed an appeal. The District's Board may still consider moving forward with financing and construction of the project. Page 27 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2005 and 2004 NOTE 5—LONG-TERM DEBT Long-term debt consisted of the following at December 31, 2005 and 2004: January 1, December 31, Due within 2005 Additions Reductions 2005 one year Certificates of Participation— Electric,2.5%to 5.75%, due serially to 2013(net of unamortized premiums of 366,962). 25,026,422 $ 2,409,460) $ 22,616,962 $ 2,385,000 State Revolving Fund Loan— Water,2.34%,due semi-annually beginning in 2006 to 2026. 8,939,961 2,883,483 11,823,444 251,450 Special Tax Bonds—Mello Roos,2.25%to 5.7%,due serially to 2013(net of unamortized discounts of 145,620). 12,292,478 3,099) 12,289,379 25,000 Special Tax Bonds—Mello Roos,3.25%to 5.7%,due due serially to 2035(net of uamortized discounts of 330,872). 15,014,422 29,706 15,044,128 Special Tax Bonds—Mello Roos, 3.50%to 5.50%,due due serially to 2035(net of uamortized discounts of 247,196). 18,907,803 18,907,803 Certificates of Participation— Water,5.25%to 5.4%, due serially to 2021 (net of umamortized discounts of 30,172). 8,761,583 3,246 330,000)8,434,829 350,000 Department of Water Resources, 3.18%,due semiannually to 2021,secured by real and personal property. 3,912,009 183,673)3,728,336 189,482 Installment loans,5.4%to 6.23%, various payment terms and due dates,secured by equipment. 4,446,828 362,357 655,896)4,153,289 450,467 Totals 78,393,703 $ 22,186,595 $ (3,582,128) $ 96,998,170 $ 3,651,400 Page 28 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2005 and 2004 NOTE 5— LONG-TERM DEBT (cont.) January 1, December 31, Due within 2004 Additions Reductions 2004 one year Certificates of Participation— Electric,2.5%to 5.75%, due serially to 2013(net unamortized premiums of 456,422). 26,816,606 $ 1,790,184) $ 25,026,422 $ 2,320,000 State Revolving Fund Loan— Water,2.34%,due semi-annually beginning in 2006 to 2026. 8,939,961 8,939,961 Special Tax Bonds—Mello Roos,2.25%to 5.7%,due serially to 2013(net unamortized discounts of 152,522). 12,287,705 4,773 12,292,478 10,000 Special Tax Bonds—Mello Roos,3.25%to 5.7%,due serially to 2035(net unamortized discounts of 360,578). 15,014,422 15,014,422 Certificates of Participation— Water, 5.25%to 5.4%, due serially to 2021 (net umamortized discounts of 33,417). 9,073,223 3,360 315,000)8,761,583 330,000 Department of Water Resources, 3.18%,due semiannually to 2021,secured by real and personal property. 4,089,803 177,794)3,912,009 183,603 Installment loans,5.4%to 6.23%, various payment terms and due dates,secured by equipment. 3,832,394 1,057,840 443,406)4,446,828 655,967 Totals 56,099,731 $ 25,020,356 $(2,726,384) $ 78,393,703 $ 3,499,570 On April3, 2003, the District issued $26,265,000 of Certificates of Participation, the net proceeds of which were utilized to pay the amounts due to IDACORP for the purchase power contract settlement fees, as well as to cover the associated costs of issuance. The terms of the new Certificates call for debt service payments to be made only from the net revenues of the Electric Division. These revenues are required to be a least equal to 120% of the debt service for each year. Page 29 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2005 and 2004 NOTE 5—LONG-TERM DEBT (cont.) During April 2004, the District obtained financing in the form of a State Revolving Fund Loan, the proceeds of which are to be utilized in the replacement of the Donner Lake water system. The District may submit expenditures to the State for reimbursement up to $12,732,965. The semi- annual principal and interest payments will be $400,426 and commence in 2006. The District is also required to fund a reserve account by making semi-annual reserve payments in the amount of $40,043 for a 10-year period. The outstanding balance of$11,823,444 was largely used to pay off the temporary lines of credit obtained in 2001 and 2002 to fund the Donner Lake project. During December 2003, the Old Greenwood Community Facilities District issued $12,445,000 of Special Tax Bonds, the net proceeds of which were utilized to finance various public improvements for property within Old Greenwood. The terms of the Special Tax Bonds call for debt service payments to be provided solely by taxes levied on and collected from the owners of the taxable land within Old Greenwood. The bonds are secured by land located within Old Greenwood. During 2004 and 2005 respectively, the Gray's Crossing Community Facilities District issued 15,375,000 and $19,155,000 of Special Tax Bonds, the net proceeds of which were utilized to finance various public improvements for property within Gray's Crossing (see note 8). The terms of the Special Tax Bonds call for debt service payments to be provided solely by taxes levied on and collected from the owners of the taxable land within Gray's Crossing. The bonds are secured by land located within Gray's Crossing. During 1996, Truckee Donner Public Utility District Financing Corporation issued $10,905,000 of Certificates of Participation to refund 100% of the outstanding balance of Certificates issued in 1991. The 1991 Certificates were used to finance the repair and construction of various water system improvements for the District. The terms of the new Certificates call for payments to be made only from the net revenues of the Water Division and the debt is secured by this revenue. These revenues are required to be at least equal to 110% of the debt service for each year. Under the Safe Drinking Water Bond Law of 1986, the Department of Water Resources provided a $5,000,000 loan to the District in 1993. The loan was to finance capital improvements to the public water supply and to reduce water quality hazards. The terms of the loan call for payments to be made only from the net revenues of the Water Division, which are required to be sufficient to pay the debt service for each year. The loan is secured by the net revenues of the Water Division. As a normal part of its operations, the District finances the acquisition of certain assets through the use of installment loans. These loans have been used to finance the purchase of vehicles, equipment and certain water system improvements. Page 30 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2005 and 2004 NOTE 5—LONG-TERM DEBT (cont.) Scheduled payments on debt are: Principal Interest Total 2006 3,651,400 $ 4,541,016 $ 8,192,416 2007 4,110,187 4,533,156 8,643,343 2008 4,277,039 4,364,905 8,641,944 2009 4,412,022 4,183,300 8,595,322 2010 4,629,120 3,990,266 8,619,386 2011-2015 19,953,192 16,597,887 36,551,079 2016-2020 13,615,784 13,242,149 26,857,933 2021-2025 12,501,324 10,274,868 22,776,192 2026-2030 13,190,000 7,173,085 20,363,085 2031-2035 17,045,000 2,806,890 19,851,890 97,385,068 $ 71,707,522 $ 169,092,590 Plus: Unamortized premiums 366,962 Less: Unamortized discounts 753,860) Total Payments on Debt 96,998,170 NOTE 6—DEFERRED REVENUE For transactions that have not yet met revenue recognition requirements, revenues are deferred and reflected in the accompanying balance sheets. As of December 31, 2005 and 2004, deferred revenues consist of unearned special assessment revenues (see Note 9), development agreement deposits, connection fees and other deposits as follows: 2005 2004 Unearned tax revenues 794,206 $ 354,706 Development agreement deposits 3,944,461 4,452,308 Connection fees and other deposits 2,365,100 1,504,555 Totals 7,103,767 $ 6,311,569 Page 31 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2005 and 2004 NOTE 7—COMMUNITY FACILITIES DISTRICTS In order to finance various public improvements needed to develop property within the Town of Truckee, California, the District formed Community Facilities Districts, which issued Special Tax Bonds pursuant to the Mello-Roos Community Facilities Act of 1982, as amended. Accordingly, the Bonds are special obligations of the respective Community Facilities Districts and are payable solely from revenues derived from taxes levied on and collected from the owners of the taxable land within the respective Community Facilities Districts. These Special Tax Bonds are not general or special obligations of the District. The Board of Directors of the District is the legislative body of the Communities Facilities Districts and as such they approve the rates and method of apportionment of the special taxes. As improvements are completed, the infrastructure is donated, in the form of a capital contribution to the Town of Truckee, the Truckee Sanitary District, Southwest Gas and the District. In September 2004, the Community Facilities District No. 04-01 (Gray's Crossing) was formed and issued $15,375,000 in Special Tax Bonds (the 04-1 Bonds). In 2005 an additional 19,155,000 (2005 Series) in Special Tax Bonds was issued for the Gray's Crossing CFD. During 2005 and 2004 respectively, Gray's Crossing contributed infrastructure valued at 7,412,132 and $6,917,740, of which $1,295,688 and $945,000 was donated to the District. During 2005 taxes of $813,193 were levied by Gray's Crossing. Of this amount, $406,597 relates to 2005 and accordingly, is included in tax revenues in the accompanying statement of revenues, expenses and changes in net assets. The remaining amount will be recognized in 2006 and is included in deferred revenue on the accompanying balance sheets. In December 2003, the Community Facilities District No. 03-1 (Old Greenwood) was formed and issued $12,445,000 in Special Tax Bonds (the 03-1 Bonds). During 2004, Old Greenwood contributed infrastructure valued at $366,000 all of which was donated to the District. During 2005 and 2004 respectively, taxes of $775,218 and $709,412 were levied by Old Greenwood. Of these amounts, $387,609 and $354,706 relate to 2005 and 2004 and accordingly, are included in tax revenues in the accompanying statement of revenues, expenses and changes in net assets. The remaining amount will be recognized in 2006 and 2005 and are included in deferred revenue on the accompanying balance sheets. NOTE 8—DONNER LAKE WATER COMPANY PURCHASE In 2001, the District took ownership of Donner Lake Water Company by initiating an eminent domain lawsuit. As a part of the takeover, the District agreed to replace the entire water system, which is estimated to cost approximately $15,232,000 and be completed in 2006. The District agreed to initially finance the replacement through obtaining third party financing and the Donner Lake property owners have agreed to reimburse the District for the full costs of the replacement. Therefore an assessment has been placed on each Donner Lake homeowner's property for a pro-rata share of the $13,000,000 payable immediately, or, for those not paying the assessment in full, over 20 years at approximately a 3.5% interest rate. One twentieth of the assessment, plus interest, is added to each property owner's annual property tax bill, if they have not previously paid the assessment in full, and is collected by Nevada and Placer Counties on behalf of the District. The Donner Lake homeowner's property values secure the $13,000,000 assessment. Page 32 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2005 and 2004 NOTE 8—DONNER LAKE WATER COMPANY PURCHASE (cont.) Project costs incurred in excess of the assessment will be collected through surcharges to each property owner's bill until all costs are recovered. As of December 31, 2005 and 2004, the amount outstanding from the property owners was $10,125,905 and $10,591,683 respectively, of which $499,113 and $482,091 is due in the next year. These amounts are shown as Special Assessments Receivable in the Balance Sheet. Per Board resolution, all funds received from property owners are set aside in the Donner Lake Special Assessment District Improvement Fund until such time as the funds will be used to fund the debt service on the District's initial third party debt. During April 2004, the District obtained financing in the form of a State Revolving Fund Loan for $12,732,965 at a rate of 2.34%. The semi-annual principal and interest payments will be $400,426. The District is also required to fund a reserve account by making semi-annual reserve payments in the amount of $40,043 for a 10-year period. Prior to obtaining the State Revolving Fund Loan, the District had third party bridge financing in the form of two lines of credit totaling $10,000,000. Both lines of credit were extinguished with funds received through the State Revolving Fund Loan. NOTE 9—GLENSHIRE WATER SYSTEM ACQUISITION Prior to 2002, the residents of the Glenshire water service area in the eastern portion of the Town of Truckee were served by the Glenshire Mutual Water Company (GMWC), an independent nonprofit entity originally created by the Glenshire residents. The Glenshire area had been experiencing problems with water quality, and thus the GMWC, on behalf of the residents, requested that the District assume responsibility for the improvement of the Glenshire water system, and for its ongoing operations. In early 2002 the District agreed to accept the donation of the Glenshire water system assets from the GMWC, in exchange for bringing the system up to the District's existing standards. The donated assets were recorded as cash and capital assets in the accompanying balance sheet and as contributed capital in the statement of revenues, expenses and changes in net assets. The improvements have been in process since 2002, and were completed in 2004 for a total cost of$3,129,413. NOTE 10—EMPLOYEE BENEFIT PLANS A. 401(A) PLANS The District sponsored a 401(a) defined contribution plan (401(a) Plan) for District management effective August 1, 2000) and bargaining unit employees (effective January 1, 2000). During 2004, the District merged the 401(a) Plan, as well as the existing pension plan into and became part of the Public Agency portion of the California Public Employees' Retirement System CaIPERS). As a result of the merger, plan assets of $875,595 were transferred to CalPERS to fund future benefits for active participants. The District has no further obligation under the 401(a) Plan. Page 33 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2005 and 2004 NOTE 10— EMPLOYEE BENEFIT PLANS (cont.) B. TRUCKEE DONNER PUBLIC UTILITY DISTRICT DEFINED BENEFIT PLAN Prior to 2004, the District sponsored a single employer defined benefit plan for all District bargaining unit employees who have at least one year of service. During 2004, the District merged the existing pension plan as well as the 401(a) Plan into and became a part of CalPERS. As a result of the merger, $185,000 of the pension plan's assets were distributed out to existing retirees or beneficiaries, which satisfied the District's obligation for future benefit payments to such retirees and beneficiaries. The remaining plan assets of $1,070,252 were transferred to CaIPERS to fund future benefits for active participants. There are no further obligations under the prior pension plan. C. CALPERS PLAN During 2004, the District and bargaining unit employees elected to terminate their existing pension plan and 401(a) plan and become a part of the Public Agency portion of CalPERS, effective August 21, 2004. The CaIPERS plan is an agent multiple-employer plan administered by CaIPERS, which acts as a common investment and administrative agent for participating public employers within the state of California. State statutes within the Public Employees' Retirement Law establish a menu of benefit provisions, as well as other requirements. The District selects optional benefit provisions from the benefit menu by contract with CalPERS and adopts those benefits through local ordinance or resolution. The CalPERS plan also provides for death and disability benefits. CalPERS issues a separate comprehensive annual financial report. Copies of the CaIPERS' annual financial report may be obtained from the CaIPERS Executive Office — 400 P Street— Sacramento, California, 95814. Active plan participants are required to contribute 7% of their annual covered salary, of which the District on the participants' behalf pays 4%. The District is required to contribute the actuarially determined remaining amounts necessary to fund the benefits for its participants. The required employer contribution rate for fiscal year ending June 30, 2005 is 18.006% of eligible participant payroll. The contribution requirements of the plan participants are established by State statute and the employer contributions rate is established and may be amended by CalPERS. The District's annual pension cost for the years ended December 31, 2005 and 2004, respectively, was $907,711 and $284,937 and was equal to the District's required and actual contributions as determined by the May 31, 2004 initial actuarial valuation using the entry age normal actuarial cost method with the contributions determined as a percent of payroll. The actuarial methods and assumptions used are those adopted by the CalPERS Board of Administration. Significant actuarial assumptions include: Actuarial Cost Method Entry Age Normal Cost Method Inflation Rate 3.00%compounded annually Investment Return 7.75%compounded annually Salary Increases 3.25% The plan's unfunded actuarial accrued liability is being amortized as a level percentage of projected payrolls on a closed basis. The remaining amortization period ends in 2017 for prior service. Page 34 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2005 and 2004 NOTE 10— EMPLOYEE BENEFIT PLANS (cont.) C. CALPERS PLAN(cont.) Schedule of Funding Progress (Unaudited, Required Supplementary Information) The following is a funding schedule for the CaIPERS Plan: Actuarial Unfunded Actuarial accrued Annual AAL as a Actuarial value liability Unfunded Funded covered percentage valuation date of assets AAL) AAL ratio payroll of payroll May 31,2004 1,945,846 $6,453,157 $4,507,311 30%3,615,996 125% The District's contribution rate and AAL will be reevaluated by CalPERS as of June 30, 2006 and any adjustments to that rate determined at that time. D. DEFERRED COMPENSATION PLAN The District maintains a deferred compensation plan (the Plan) for certain employees. The District has no liability for losses under the Plan but does have the duty of due care that would be required of an ordinary prudent investor. The District has not reflected the Plan's assets and corresponding liabilities (if any) on the accompanying balance sheets. E. POST EMPLOYMENT HEALTH CARE The District began providing Post Employment Health Care on January 1, 2000 to all employees, and their qualified dependents that retire from the District on or after attaining age 60 with service of at least 20 years. The board of directors of the District retains full authority to set the provisions and contribution obligations related to this benefit. For years worked which are less than 20, the benefit is reduced by 5% for each year. For retirement prior to age 60, the benefit is reduced by 2% for each year. Currently six individuals meet those eligibility requirements. The District pays insurance premiums for medical, dental, and prescription drugs. Expenditures for post employment health care benefits are recognized when premiums are paid. The cost of post employment health care was $47,508 and $41,810 for 2005 and 2004, respectively, net of retiree contributions. NOTE 11 —SELF FUNDED INSURANCE The district has a self-funded vision insurance program as well as a very small amount of self insurance with respect to the supplemental cost of certain mail order prescriptions that is not covered by the commercial health insurance. For both, claims are processed by and on behalf of the district. The district does not maintain a claim liability rather claims are expensed as paid. The amount of claims paid for each of the past three years have not been material. Page 35 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2005 and 2004 NOTE 12—SEGMENT DISCLOSURE The District has issued revenue bonds to finance water and electric distribution facilities. During 2005 and 2004, the District also issued special tax bonds secured by tax revenues. Each project has an external requirement to be accounted for separately, and investors in the revenue and special tax bonds rely solely on the revenue generated by the individual projects for repayment. Summary financial information as of and for the years ending December 31, 2005 and 2004 for each project is presented below. Balance Sheets 2005 Gary's Old ASSETS Electric Water Crossing Greenwood Current assets 12,816,533 $ 846,886 $ 1,907,384 $ 821,754 Noncurrent Assets Capital assets, net 20,814,021 49,835,585 Restricted assets 1,760,396 7,004,214 18,602,298 1,237,578 Other assets 1,594,662 10,588,045 503,179 242,529 Total Noncurrent Assets 24,169,079 67,427,844 19,105,477 1,480,107 Total Assets 36,985,612 $ 68,274,730 $ 21,012,861 $ 2,301,861 LIABILITIES AND NET ASSETS(DEFICIT) Current liabilities 5,208,058 $ 1,511,765 $ 643,081 $ 241,867 Noncurrent Liabilities Long-term debt, net of current portion 21,117,207 26,013,251 33,926,932 12,289,380 Other liabilities 4,595,913 1,713,648 406,597 387,609 Total Liabilities 30,921,178 29,238,664 34,976,610 12,918,856 Net Assets(Deficit) Invested in capital assets, net of related debt 20,749,962 23,854,374 18,070,976) (12,046,851) Restricted for debt service 4,172,258 7,034,373 2,606,440 995,711 Unrestricted 18,857,786) 8,147,319 1,500,787 434,145 Total Net Assets(Deficit)6,064,434 39,036,066 13,963,749) (10,616,995) Total Liabilities and Net Assets 36,985,612 $ 68,274,730 $ 21,012,861 $ 2,301,861 Page 36 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2005 and 2004 NOTE 12—SEGMENT DISCLOSURE (cont.) Balance Sheets(cont.) 2004 Gary's Old ASSETS Electric Water Crossing Greenwood Current assets 11,272,149 $ 1,837,388 $ 917,161 $ 761,640 Noncurrent Assets Capital assets,net 19,857,760 46,715,909 Restricted assets 1,641,488 4,345,547 7,132,427 1,619,516 Other assets 1,797,650 11,103,548 295,311 254,078 Total Noncurrent Assets 23,296,898 62,165,004 7,427,738 1,873,594 Total Assets 34,569,047 $ 64,002,392 $ 8,344,899 $ 2,635,234 LIABILITIES AND NET ASSETS(DEFICIT) Current liabilities 5,177,036 $ 3,245,675 $ 248,216 $ 252,604 Noncurrent Liabilities Long-term debt,net of current portion 23,593,295 24,003,936 15,014,423 12,282,479 Other liabilities 4,351,090 1,605,773 354,706 Total Liabilities 33,121,421 28,855,384 15,262,639 12,889,789 Net Assets(Deficit) Invested in capital assets, net of related debt 18,926,908 22,994,210 6,669,524) (10,381,162) Restricted for debt service 2,291,448 13,998,493 369,212 Unrestricted 19,770,730) 1,845,695) 248,216) 242,605) Total Net Assets(Deficit) 1,447,626 35,147,008 6,917,740) (10,254,555) Total Liabilities and Net Assets 34,569,047 $ 64,002,392 $ 8,344,899 $ 2,635,234 Page 37 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2005 and 2004 NOTE 12—SEGMENT DISCLOSURE (cont.) Statements of Revenues, Expenses,and Changes in Net Assets 2005 Gray's Old Electric Water Crossing Greenwood OPERATING REVENUES Sales to customers 16,317,909 $ 7,563,132 $ Other operating revenues 1,778,349 600,663 Operating expenses 12,996,713) 6,052,695) Depreciation 865,603) 1,779,817) Nonoperating revenues(expenses) 907,044) 159,161) 366,123 23,205 Income(loss) before capital contributions 3,326,898 172,122 366,123 23,205 Capital contributions 1,289,910 3,716,936 7,412,132) 385,645) Change in net assets 4,616,808 3,889,058 7,046,009) 362,440) TOTAL NET ASSETS DEFICIT)—Beginning of Year 1,447,626 35,147,008 6,917,740) 10,254,555) TOTAL NET ASSETS DEFICIT)—END OF YEAR 6,064,434 $ 39,036,066 $ (13,963,749) $ (10,616,995) Page 38 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2005 and 2004 NOTE 12—SEGMENT DISCLOSURE (cont.) Statements of Revenues, Expenses,and Changes in Net Assets(coot.) 2004 G ray's Old Electric Water Crossing Greenwood OPERATING REVENUES Sales to customers 15,689,876 $ 7,088,997 $ Other operating revenues 2,134,412 942,717 Operating expenses 12,456,058) 5,861,134) Depreciation 891,202) 1,811,370) Nonoperating revenues (expenses)1,170,353) 449,367) 388,555) Income(loss)before capital contributions 3,306,675 90,157) 388,555) Capital contributions 381,704 801 6,917,740) 366,000) Change in net assets 3,688,379 89,356) 6,917,740) 754,555) TOTAL NET ASSETS DEFICIT)—Beginning of Year 2,240,753)32,236,364 9,500,000) TOTAL NET ASSETS DEFICIT)—END OF YEAR 1,447,626 $ 32,147,008 $ (6,917,740) $ (10,254,555) Page 39 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2005 and 2004 NOTE 12—SEGMENT DISCLOSURE (cont.) Statements of Cash Flows 2005 Old Gray's Electric Water Greenwood Crossing NET CASH PROVIDED BY(USED IN) Operating activities 4,731,277 $ 178,443 $ Noncapital financing activities 3,443,550) Capital and related financing activities 92,031) 781,107 434,037) 11,325,914 Investing activities 218,323 563,720 41,907 320,985 Net increase(decrease) in cash and cash equivalents 1,414,019 1,523,270 392,130) 11,646,899 Beginning Cash and Cash equivalents 9,935,073 3,980,664 1,671,744 8,049,588 ENDING CASH AND CASH EQUIVALENTS 11,349,092 $ 5,503,934 $ 1,279,614 $ 19,696,487 Statements of Cash Flows 2004 Old Gray's Electric Water Greenwood Crossing NET CASH PROVIDED BY(USED IN) Operating activities 6,080,642 $ 3,201,472 $ Noncapital financing activities 2,816,310) Capital and related financing activities 569,771)4,860,491) 956,316) 8,026,261 Investing activities 70,471 518,225 15,293 23,327 Net increase(decrease) in cash and cash equivalents 2,765,032 1,140,794) 941,023) 8,049,588 Beginning cash and cash equivalents 7,170,040 5,121,458 2,612,767 ENDING CASH AND CASH EQUIVALENTS 9,935,072 $ 3,980,664 $ 1,671,744 $ 8,049,588 Page 40 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2005 and 2004 NOTE 13—CONTINGENCIES The District is one of a group of approximately 50 utilities involved in a matter relating to the disposal of PCB wastes at two sites. The clean up of the two sites falls under the federal EPA Superfund Program. The District believes it has resolved this matter with the EPA, with the District funding its portion of the cleanup expenses, as long as expenses do not exceed $60,000,000. If cleanup expenses exceed 60,000,000, the District will be liable for their portion (.163%) of the additional cost. The District's management believes that it will not incur any additional liability. NOTE 14—CLAIMS AND JUDGMENTS From time to time, the utility is party to various pending claims and legal proceedings. Although the outcome of such matters cannot be forecasted with certainty, it is the opinion of management and the utility's legal counsel that the likelihood is remote that any such claims or proceedings will have a material adverse effect on the utility's financial position or results of operations NOTE 15—RISK MANAGEMENT The utility is exposed to various risks of loss related to torts; theft of, damage to, or destruction of assets; errors and omissions; workers compensation; and health care of its employees. These risks are covered through the purchase of commercial insurance, with minimal deductibles. Settled claims have not exceeded the commercial liability in any of the past three years. There were no significant reductions in coverage compared to the prior year. Page 41 SUPPLEMENTAL INFORMATION TRUCKEE DONNER PUBLIC UTILITY DISTRICT BALANCE SHEETS December 31, 2005 Component Units Electric Water Operations Operations Gray' s Cross Old Greenwood Eliminations Totals ASSETS CURRENT ASSETS Funds Operating 5, 562, 836 $ ( 1, 193, 204) $ 1, 094, 189 $ 42, 036 $ 5, 505, 857 Designated 1, 052, 169 371, 518 1, 423, 687 Restricted 2, 973, 691 129, 876 3, 103, 567 Total Funds 9, 588, 696 691, 810) 1, 094, 189 42, 036 10, 033, 111 Accounts receivable, net 1, 124, 573 668, 169 813, 195 779, 718 3, 385, 655 Unbilled revenues 1, 293, 164 454, 480 1, 747, 644 Accrued interest receivable 68, 501 153, 495 221, 996 Materials, supplies, and fuel inventory 629, 013 164, 250 793, 263 Prepaid expenses 112, 586 88, 610 201, 196 Other 9, 692 9, 692 Total Current Assets 12, 816, 533 846, 886 1, 907, 384 821, 754 16, 392, 557 F NON- CURRENT ASSETS Restricted funds 1, 760, 396 7, 004, 214 18, 602, 298 1, 237, 578 28, 604, 486 Special assessments receivable 10, 125, 905 10, 125, 905 Deferred charges Unamortized debt expense 508, 166 462, 140 503, 179 242, 529 1, 716, 014 Other 1, 086, 496 1, 086, 496 Total Non- Current Assets 3, 355, 058 17, 592, 259 19, 105, 477 1, 480, 107 41, 532, 901 CAPITAL ASSETS Utility plant 28, 640, 511 59, 199, 779 87, 840, 290 Accumulated depreciation 10, 577, 086) ( 12, 125, 524) 22, 702, 610) Construction work in progress 2, 750, 596 2, 331, 230 5, 081, 826 Land held for future use 430, 100 430, 100 Total Utility Plant 20, 814, 021 49, 835, 585 70, 649, 606 i TOTAL ASSETS 36, 985, 612 $ 68, 274, 730 $ 21, 012, 861 $ 2, 301, 861 $ 128, 575, 064 Page 42 Component Units Electric Water Operations Operations Gray' s Cross Old Greenwood Eliminations Totals LIABILITIES AND NET ASSETS CURRENT LIABILITIES Other liabilities Accounts payable 1, 576, 688 $ 110, 498 $ 1, 687, 186 Customer deposits 152, 063 38, 270 190, 333 Other 327, 215 227, 143 554, 358 Total other liabilities 2, 055, 966 375, 911 2, 431, 877 Current liabilities payable from restricted assets: Current portion of long- term debt 2, 590, 263 1, 036, 137 25, 000 3, 651, 400 Accrued interest payable 561, 829 99, 717 618, 081 241, 867 1, 521, 494 Total Current Liabilities Payable from Restricted AssE 3, 152, 092 1, 135, 854 643, 081 241, 867 5, 172, 894 I Total Current Liabilities 5, 208, 058 1, 511, 765 643, 081 241, 867 7, 604, 771 NON- CURRENT LIABILITIES Long- term debt, net of discounts and premiums 20, 231, 962 23, 195, 676 33, 926, 932 12, 289, 380 89, 643, 950 Installment loans 885, 245 2, 817, 575 3, 702, 820 Deferred revenues 4, 595, 913 1, 713, 648 406, 597 387, 609 7, 103, 767 Total non- current liabilities 25, 713, 120 27, 726, 899 34, 333, 529 12, 676, 989 100, 450, 537 Total Liabilities 30, 921, 178 29, 238, 664 34, 976, 610 12, 918, 856 108, 055, 308 NET ASSETS Invested in capital assets, net of related debt 20, 749, 962 23, 854, 374 ( 18, 070, 976) ( 12, 046, 851) 14, 486, 509 Restricted for debt service 4, 172, 258 7, 034, 373 2, 606, 440 995, 711 14, 808, 782 Unrestricted( deficit) 18, 857, 786) 8, 147, 319 1, 500, 787 434, 145 8, 775, 535) 6, 064, 434 39, 036, 066 ( 13, 963, 749) ( 10, 616, 995) 20, 519, 756 Total Net Assets TOTAL LIABILITIES AND NET ASSETS 36, 985, 612 $ 68, 274, 730 $ 21, 012, 861 $ 2, 301, 861 $ 128, 575, 064 I Page 43 fIr TRUCKEE DONNER PUBLIC UTILITY DISTRICT STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS Year Ended December 31, 2005 Component Units Electric Water Old Operations Operations Gray' s Cross Greenwood Eliminations Totals OPERATING REVENUES Sales to customers 16, 317, 909 $ 7, 563, 132 $ 23, 881, 041 Interdepartmental sales 1, 329, 355 1, 209 1, 330, 564) Standby fees 22, 540 183, 119 205, 659 Other 426, 454 416, 335 242, 904) 599, 885 Total Operating Revenues 18, 096, 258 8, 163, 795 1, 573, 468) 24, 686, 585 OPERATING EXPENSES Purchased power 8, 279, 662 8, 279, 662 Operations and maintenance 2, 231, 024 4, 229, 692 1, 330, 564) 5, 130, 152 Consumer services 548, 977 297, 517 846, 494 Administration and general 1, 937, 050 1, 525, 486 242, 904) 3, 219, 632 Depreciation 865, 603 1, 779, 817 2, 645, 420 Total Operating Expenses 13, 862, 316 7, 832, 512 1, 573, 468) 20, 121, 360 Operating Income 4, 233, 942 331, 283 4, 565, 225 NON- OPERATING REVENUE( EXPENSES) Special tax revenue 403, 640 724, 835 1, 128, 475 Investment income 266, 750 594, 842 320, 984 41, 906 1, 224, 482 Interest expense 1, 145, 413) 978, 806) 320, 984) 725, 085) 3, 170, 288) Amortization 34, 777) 52, 970) 37, 517) 18, 451) 143, 715) Gain on disposition of assets 6, 396 404, 974 411, 370 Loss on early retirement of assets 127, 201) 127, 201) Total Non- Operating Expenses 907, 044) 159, 161) 366, 123 23, 205 676, 877) Income Before Contributions 3, 326, 898 172, 122 366, 123 23, 205 3, 888, 348 CAPITAL CONTRIBUTIONS, net 1, 289, 910 3, 716, 936 ( 7, 412, 132) 385, 645) 2, 790, 931) CHANGE IN NET ASSETS 4, 616, 808 3, 889, 058 ( 7, 046, 009) 362, 440) 1, 097, 417 I NET ASSETS( Deficit)- Beginning of Year 1, 447, 626 35, 147, 008 ( 6, 917, 740) ( 10, 254, 555) 19, 422, 339 r NET ASSETS( Deficit)- END OF YEAR 6, 064, 434 $ 39, 036, 066 $ ( 13, 963, 749) $ ( 10, 616, 995) $ 20, 519, 756 Page 44 iEf TRUCKEE DONNER PUBLIC UTILITY DISTRICT STATEMENTS OF CASH FLOWS Year Ended December 31, 2005 Component Units Electric Water Old Operations Operations Gray' s Cross Greenwood Eliminations Totals CASH FLOWFROISPERATING ACTIVITIES Received from customers 18, 087, 374 $ 8, 052, 609 $ 1, 573, 468) $ 24, 566, 515 15, 816, 638) Paid to suppliers for goods and services 10, 976, 470) ( 6, 413, 636) 1, 573, 468 Paid to employees for services 2, 379, 627) ( 1, 460, 530) 3, 840, 157) Net Cash Flows from Operating Activities 4, 731, 277 178, 443 4, 909, 720 CASH FLOWFROMONCAPITAL FINANCING ACTIVITIES Principal payments on long- term debt 2, 320, 000) 2, 320, 000) Interest payments on long- term debt 1, 123, 550) 1, 123, 550) Net Cash Flows from Noncapital Financing Activities 3, 443, 550) 3, 443, 550) CASH FLOWFROIZAPITAL AND RELATED FINANCING ACTIVITIES Capital expenditures for utility plant 1, 002, 953) ( 3, 851, 422) 4, 854, 375) Cost of disposal of property 42, 611) 1, 997) 44, 608) Proceeds from sale of land 6, 396 404, 974 411, 370 Capital contributions, connection and facility fees 1, 094, 098 2, 562, 557 3, 656, 655 Special assessments receipts 517, 063 517, 063 Capital contributed to developers 6, 393, 183) ( 385, 645) 6, 778, 828) Special tax receipts 687, 431 687, 431 Debt issuance costs 465, 834) 465, 834) Proceeds from issuance of new debt 225, 171 3, 020, 670 19, 155, 000 22, 400, 841 Principal payments on long- term debt 326, 632) ( 842, 938) 10, 000) 1, 179, 570) Interest payments on long- term debt 45, 500) ( 1, 027, 800) ( 970, 069) ( 725, 823) 2, 769, 192) Cash Flows From Capital and Related Financing Activities 92, 031) 781, 107 11, 325, 914 ( 434, 037) 11, 580, 953 CASH FLOWFRONNVESTING ACTIVITIES t Interest received 218, 323 563, 720 320, 985 41, 907 1, 144, 935 Cash Flows from Investing Activities 218, 323 563, 720 320, 985 41, 907 1, 144, 935 Net Ch9 in CracCl£ ipnts 1, 414, 019 1, 523, 270 11, 646, 899 ( 392, 130) 14, 192, 058 CASH AND CASH EQUIVALENTS— Beginning of Year 9, 935, 073 3, 980, 664 8, 049, 588 1, 671, 744 23, 637, 069 CASH AND CASH EQIVALENTS- END OF YEAR 11, 349, 092 $ 5, 503, 934 $ 19, 696, 487 $ 1, 279, 614 $ 37, 829, 127 c NONCASH INVESTING ACTIVITIES During 2005$ 1, 262, 254 and$ 440, 635 of capital assets were contributed to the water and electric utilities, respectively, by customers and developers. Page 45 i a Component Units Electric Water Old Operations Operations Gray' s Cross Greenwood Eliminations Totals RECONCILIATION OF OPERATING INCOME TO NET CASH FLOWS FROM OPERATING ACTIVITIES 4, 565, 225 Operating income 4, 233, 942 $ 331, 283 $ Noncash Items Included in Operating Income 2, 645, 420 Depreciation and amortization 865, 603 1, 779, 817 179, 432 Depreciation charged to other accounts 94, 564 84, 868 Changes in assets and liabilities 114, 372) Accounts receivable and unbilled revenues 4, 309) ( 110, 063) 245, 182) Materials, supplies and fuel inventory 234, 430) 10, 752) 124, 038 Prepaid expenses and other current assets 116, 993 7, 045 Accounts payable 353, 685) ( 1, 943, 559) 2, 297, 244) Deferred revenue 5, 698) Customer deposits 4, 575) 1, 123) Accrued payroll 17, 174 40, 927 58, 101 NET CASH FLOWS FROM OPERATING ACTIVITIES 4, 731, 277 $ 178, 443 $ 4, 909, 720 q RECONCILIATION OF CASH AND CASH EQUIVALENTS Tl THE BALANCE SHEET Operating 5, 562, 836 $ ( 1, 193, 204) $ 1, 094, 189 $ 42, 036 $ 5, 505, 857 1, 052, 169 371, 518 1, 423, 687 Designated 2, 973, 691 129, 876 3, 103, 567 Restricted bond funds- current 28, 604, 486 Restricted bond funds- non- current 1, 760, 396 7, 004, 214 18, 602, 298 1, 279, 614 597 Total Cash and Investments 11, 349, 092 6, 312, 404 19, 696, 487 1, 279, 614 38( 808, 470 Less: Long- Term Investments 808, 470) 808, 470) TOTAL CASH AND CASH EQUIVALENTS 11, 349, 092 $ 5, 503, 934 $ 19, 696, 487 $ 1, 279, 614 $ 37, 829, 127 7 f 6 Page 46 i