HomeMy WebLinkAbout11 Water Overdraft Agenda Item #
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Public District
Staff Report
To: Board of Directors
From: Peter Holzmeister
Date: January 31, 2003
Subject: Pay electric general fund for water overdraft
1. WHY THIS ITEM IS BEFORE THE BOARD
This matter involves borrowing from water restricted funds to pay the water general fund
debt to the electric general fund. Only the board can authorize the use of restricted.
2. HISTORY
The water fund has usually run close to the end of its financial tether. A healthy balance
in the electric general fund has cushioned the water fund cash needs over the years.
During the past two years the water fund tackled unusually expensive projects, and built
up a large debt to the electric fund, and in the process drew down the electric general
fund cash position.
This is a process that really must end. The water fund cannot rely any longer on the
health of the electric fund and its cash position to support itself. The water fund cash
flow needs to be sufficient to carry the water utility. We need to address this situation.
We need to set up a much stricter budget and performance monitoring process. We
need to have rates that provide cash reserves for operations and for capital.
We will take a big step toward having a capital reserve when we complete sale of the
Southside property. However, if we are not vigilant water operations will use that fund or
the electric general fund as its default checking account. None of this is new information.
We have struggled with this for years.
3. NEW INFORMATION
Now we have a new reason to solve this problem. We are issuing COPS to implement
the settlement with IDACORP. We will achieve a better interest rate if our electric fund
is not supporting the water fund. We need to show that the electric general fund's cash
balance is actually on hand. This means the water fund needs to pay back to the
electric general fund the $1,137,106.31 that is now owes.
I recommend that the board set up the water cash overdraft as a debt entirely internal to
the water fund, by borrowing internally from water restricted funds. This can be
accomplished by borrowing $551,445.63 from the Reserve for Meters and $585,660.68
from Facilities Fees. These would be set up as internal loans.
4. RECOMMENDATION
I recommend that the board transfer $551,445.63 from the Reserve for Meters and
$585,660.68 from Water Facilities Fees and transfer the total of $1,137,106.31 to the
water general fund with the effect that the electric general fund will be then reimbursed
for the water fund overdraft.
INVESTMENT STATUS REPORT
Activity for the Month Ended December 31,2002
Interim
INVESTMENTS
LOCAL AGENCY INVESTMENT FUND 2.201% $7,340,499.67
ELECTRIC FUNDS 11/30/02 Activity 12102 12/31/02
General Fund $2,719,212.15
Consolidate cash accounts (65,304.94)
Record LAIF transfer in/out general fund (1,053,000.00)
Restrict facilities fees received (37,860.00)
Unrestrict facilities fees refunded or adjusted 4,060.00
Internal loan repayments 22,484,96
Restrict Glenshire water revenue received (14,651,95)
1,574,940.22
Facilities Fees -Post AB1600 387,259.60
Restrict facilities fees received 3,213.00
Unrestrict facilities fees refunded or adjusted (100.00) 390,372.60
Storm Damage Fund 311,521.72 311,521.72
Building Fund 1,431,358.44 1,431,358.44
Electric Rate Reserve Fund 424,219.15 424,219.15
Total Electric Investments $5,273,571.06 ($1,141,158.93) $4,132,412A3 $4,132,412.13
WATER FUNDS 11/30/02 Activity 12102 12/31/02
General Fund ($1,435,995.15)
Reimbursement water Glenshire transactions 233,583.90
Consolidate cash accounts 65,304,94 (1,137,106.31)
Facilities Fees -Pre AB1600 66.23
Unrestrict balance for Falcon Point project (66.23) 0.00
Facilities Fees -Global after 6/6197 866,375,24
Restrict facilities fees received 34,647.00
Unrestrict facilities fees - Falcon Point project (141,626,21)
Unrestrict facilities fees refunded or adjusted (3,960.00) 755,436.03
Building Fund 465,465.68 465,465.68
Reserve for Future Meters 573,930,59
Internal loan repayment (22,484.96) 551,445,63
Tahoe Donner Water System Fund 121,082.27
Unrestrict fees - Falcon Point project (121,775.15) (692.88)
West River St. Assessment District
Bond Redemption Fund 27,656.56 27,656.56
Prepaid Connection Fees 77,149.80 77,149.80
Ponderosa Palisades 4 Improvement 775.39 775.39
Sierra Meadows 3 Improvement Fund 4,673,34 4,673.34
Glenshire Water System Sinking Fund 382,818.29
Restrict Glenshire water revenue received 14,651.95
Restrict Glenshire project funds (233,583.90) 163,886.34
Donner Lake Assessment District Fund 1,538,360.25
Laif transfer to Donner Lake Assessment Improvement Fund (55,000.00) 1,483,360.25
TSA SAD II Improvement Fund 63,968.38 63,968.38
TSA SAD V Improvement Fund 56,351.76 56,35t76
Proceeds from Land Sale 215,857.82 215,857.82
Reserve Fund-TDPUD Prop 55 216,392.06 216,392.06
Total Water Investments $3,174,928.51 ($230,308.66) $2,944,619,85 $2,944,619.85
Total Investments $8,448,499.57 ($1,371,467.59) $7,077,031.98 $7,077,031.98
Agenda Item #TRUCKEE �1
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DONNER
Public Utility District
Staff Report
To: Board of Directors
From: Mary Chapman
Date: February 5, 2003
Subject: Pay Electric General Fund for Water Overdraft
3. NEW INFORMATION: 2/5/2003
In Peter's Staff Report dated January 31, 2003, he indicated that the amount the Water
Department owed the Electric Department was $1,137,106.31. Unfortunately, until our
books are closed we are dealing with a moving target. Year-end journal entries
continue to be recorded which affect this account balance. Provided the Board
approves the Falcon Point project reimbursement from the Tahoe Donner and Facilities
Fees funds totaling $263,467.59, the overdraft will be $1,245,764.42 as of today. This
is the amount that we would like the Board to authorize to be repaid.
Next week we will be issuing Interim Financial Statements for the month of December,
2002. We would like the Water Department to not owe the Electric Department any
money at that time.
Below is a recap of the overdraft as it currently stands:
Current Overdraft $ 1,509,232.01
Less Falcon Point project reimbursement (263,467.59}
Total Adjusted Overdraft $ 1,245,764.42
4. RECOMMENDATION:
I recommend that the Board transfer $551,445.63 from the Reserve for Future
Meters fund and $694,318.79 from the Facilities Fees fund and transfer the total of
$1,245,764.42 to the water general fund with the effect that the electric general
fund will be then reimbursed for the water fund overdraft.
Balance in Account Falcon Point Project Transfer to Cover Balance Available
as of12131/02 Transfer Overdraft after Transfers
Tahoe Donner Water System Fund $121,775.15 ($121,775.15) $0.00
Facilities Fees- Investment Fund (accrued interest) 66,23 (66.23) 0.00
Facilities Fees-Global after 5/5/97 897,062.24 (141,626.21) (694,318,79) 61,117.24
Reserve for Future Meters 551 445.63 0.00 (551,445.63) 0.00
Total Funds Available $1,670,349.25 ($263,467.59) ($1,245,764.42) $61,117.24