HomeMy WebLinkAbout16 Attachement 2 att 2 TDPUD Consolidated FS 2020 DraftTRUCKEE DONNER
PUBLIC UTILITY DISTRICT
CONSOLIDATED FINANCIAL STATEMENTS
Including Report of Independent Auditors
December 31, 2020 and 2019
DRAFT
TABLE OF CONTENTS
Report of Independent Auditors ……………………………………………………………………………………3
Management’s Discussion and Analysis…………………………………………………………………………..5
Financial Statements……………………………………………………………………………………………….11
Consolidated Statements of Net Position………………………………………………………………12
Consolidated Statements of Revenues, Expenses and Changes in Net Position…………………15
Consolidated Statements of Cash Flows……………………………………………………………….16
Notes to Financial Statements…………………………………………………………………………………….18
Required Supplementary Information…………………………………………………………………………….56
Cost Sharing Defined Benefit Pension Plans………………………………………………………….57
Schedule of Changes in Net OPEB Liability and Related Ratios……………………………………59
Supplementary Information…….………………………………………………………………………………….63
Consolidating Statement of Net Position……………………………………………………………….64
Consolidating Statement of Revenues, Expenses and Changes in Net Position....…………….…66
Consolidating Statement of Cash Flows…………………..……………………………………….......68
DRAFT
Page 3
Report of Independent Auditors
The Board of Directors
Truckee Donner Public Utility District
Report on the Financial Statements
We have audited the accompanying consolidated financial statements of Truckee Donner Public
Utility District (the “District”), which comprise the consolidated statements of net position as of
December 31, 2020 and 2019, and the related consolidated statements of revenues, expenses and
changes in net position, and cash flows for the years then ended, and the related notes to the
consolidated financial statements.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated financial
statements in accordance with accounting principles generally accepted in the United States of
America; this includes the design, implementation, and maintenance of internal control relevant to the
preparation and fair presentation of consolidated financial statements that are free from material
misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audits. We
conducted our audits in accordance with auditing standards generally accepted in the United States
of America. Those standards require that we plan and perform the audits to obtain reasonable
assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
in the consolidated financial statements. The procedures selected depend on the auditor’s judgment,
including the assessment of the risks of material misstatement of the consolidated financial
statements, whether due to fraud or error. In making those risk assessments, the auditor considers
internal control relevant to the entity’s preparation and fair presentation of the consolidated financial
statements in order to design audit procedures that are appropriate in the circumstances, but not for
the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly,
we express no such opinion. An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of significant accounting estimates made by management, as
well as evaluating the overall presentation of the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.DRAFT
Page 4
Opinion
In our opinion, the consolidated financial statements referred to above present fairly, in all material
respects, the consolidated financial position of Truckee Donner Public Utility District as of
December 31, 2020 and 2019, and the results of its operations and its cash flows for the years then
ended in accordance with accounting principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
accompanying management’s discussion and analysis on pages 5 through 9, the schedule of the
District’s proportionate share of the net pension liability on page 57, the schedule of contributions on
page 58, the schedule of the District’s change in the net OPEB liability and related ratios on page 59,
the schedule of the District’s OPEB contributions on page 60, and the schedule of investment returns
on page 61, be presented to supplement the basic consolidated financial statements. Such
information, although not a part of the basic consolidated financial statements, is required by the
Governmental Accounting Standards Board who considers it to be an essential part of financial
reporting for placing the basic consolidated financial statements in an appropriate operational,
economic, or historical context. We have applied certain limited procedures in the required
supplementary information in accordance with auditing standards generally accepted in the United
States of America, which consisted of inquiries of management about the methods of preparing the
information and comparing the information for consistency with management’s responses to our
inquiries, the basic consolidated financial statements, and other knowledge we obtained during our
audit of the basic consolidated financial statements. We do not express an opinion or provide any
assurance on the information because the limited procedures do not provide us with sufficient
evidence to express an opinion or provide any assurance.
Supplementary Information
Our audits were conducted for the purpose of forming an opinion on the consolidated financial
statements that collectively comprise the District’s consolidated financial statements. The
accompanying consolidating statements of net position, and the related consolidating statements of
revenues, expenses and changes in net position and cash flows as of and for the year ended
December 31, 2020 on pages 64 through 69, are presented for purposes of additional analysis and
are not a required part of the basic consolidated financial statements (collectively, the supplementary
information). The supplementary information is the responsibility of management and was derived
from and relates directly to the underlying accounting and other records used to prepare the basic
consolidated financial statements. Such information been subjected to the auditing procedures
applied in the audit of the basic consolidated financial statements and certain additional procedures,
including comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the basic consolidated financial statements or to the basic consolidated
financial statements themselves, and other additional procedures in accordance with auditing
standards generally accepted in the United States of America. In our opinion, the supplementary
information, as described above, is fairly stated, in all material respects, in relation to the basic
consolidated financial statements as a whole.
Portland, Oregon
______, 2021 DRAFT
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
MANAGEMENT’S DISCUSSION AND ANALYSIS
December 31, 2020 and 2019
See accompanying auditors’ report.
Page 5
Management’s Discussion and Analysis
As financial management of the Truckee Donner Public Utility District (the 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, 2020 and 2019. This discussion and analysis is designed to assist the
reader in focusing on the significant financial topics, 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
management discussion and analysis.
FINANCIAL HIGHLIGHTS
The District’s current assets increased $5.1 million (10.5%) from $48.5 million at December 31, 2019 to
$53.6 million at December 31, 2020, predominantly due to lower capital expenditures in 2020.
The District’s total net position increased $6.3 million (6.3%) from $100.3 million at December 31, 2019, to
$106.6 million at December 31, 2020. The total increase in net position from operating activities was $2.9
million, primarily due Electric Utility revenues higher than anticipated and purchased power costs lower
than anticipated.
Total operating revenues were $41.7 million in 2020, $39.3 million in 2019, and $37.7 million in 2018.
Electric revenues increased 6.0% in 2020 compared to 2019. A 3% rate increase in 2020 along with a
pandemic driven increase in electricity usage can be attributed to the increase. Water revenues increased
6.0% in 2020; a 3% water rate increase also occurred in 2020 and drier than average conditions in 2020
drove an increase in irrigation patterns by consumers compared to the prior year.
Operating expenses of the District increased $2.4 million (8.5%) from $36.4 million in 2019 to $38.8 million
in 2020. The Electric Utility had an 8.5% increase in operating expenses due to wildfire mitigation costs
3.2%, purchased power costs 2.2%, internal labor shifting from capital to operations 2.0%, and all other
costs net increase of 1.1%. The Water Utility had a 3.4% increase in operating expenses primarily due to
impact of rate of pay increases on compensation costs. In addition the District as a whole experienced
increased insurance, regulatory and maintenance material costs.
Non-operating revenues decreased 5.0% at $4.2 million in 2020 compared to $4.5 million in 2019 due
primarily to a decrease in investment income of $465,000 or 44% partially offset by a net gain in disposal
of assets change of $225,000. Non-operating expenses increased 3.1% from $2.7 million in 2019 to $2.8
million in 2020 primarily due to a $197,000 loss on tax sale parcels in the Gray’s Crossing Mello-Roos
Community Facilities District partially offset by a decrease in interest expense of $117,000 or 4.4%.
No new debt was incurred in 2020 or 2019.DRAFT
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
MANAGEMENT’S DISCUSSION AND ANALYSIS
December 31, 2020 and 2019
See accompanying auditors’ report.
Page 6
OVERVIEW OF THE FINANCIAL STATEMENTS
This report includes Management’s Discussion and Analysis, Report of Independent Auditors, the Basic
Financial Statements, (which includes the notes to the financial statements), Required Supplementary
Information and additional 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-term and long-term financial information about the District’s
activities.
The reporting entity consists of the primary government, which provides two utilities (electric utility and
water utility), and the blended component units. Further details about the component units are provided in
note 1(A).
The Consolidated Statement of Net Position presents information on all of the District’s assets, deferred
outflows of resources and liabilities, and deferred inflows of resources 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 reported in the Consolidated Statements of
Revenues, Expenses, and Changes in Net Position. 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.
The Consolidated 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 non-cash 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.
The Notes to the Financial Statements 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.DRAFT
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
MANAGEMENT’S DISCUSSION AND ANALYSIS
December 31, 2020 and 2019
See accompanying auditors’ report.
Page 7
DISTRICT HIGHLIGHTS
The condensed financial statements at December 31, 2020, 2019, and 2018 are presented below.
In 2020, the District’s current assets increased $5.1 million, predominantly due to increased cash reserves
associated with the Electric Utility $3.6 million and Water Utility of $1.5 million. The District’s capital
expenditures of $6.3 million were down $3.3 million compared to 2019. This decrease was due to the timing
of projects, as well as, the pandemic driven pause of expenditures to conserve cash reserves due to
significant uncertainty as to the pandemic’s impact on the District at the time. Net Long Term debt
decreased $4.6 million, due to annual reduction of existing debt. In 2019, the District’s current assets
increased $3.1 million, predominantly due to increased cash reserves associated with the Electric Utility. In
2019, Net Long Term debt decreased $4.6 million, due to annual reduction of existing debt. See note 5 for
details on remaining debt.
“Restricted for debt service” represents amounts restricted for payments related to outstanding revenue
bonds.
Increase
(Decrease)
OUTFLOWS OF RESOURCES 2020 2019 2018 2020 - 2019
Current assets 53,640,347$48,544,973$45,472,272$5,095,374$
Non-current assets:
Capital assets, net 132,031,519 133,812,252 130,173,550 (1,780,733)
Restricted assets 1,674,293 1,730,450 1,753,275 (56,157)
Other long-term assets 970,414 1,811,627 2,605,968 (841,213)
Total Assets 188,316,573 185,899,302 180,005,065 2,417,271
Deferred outflows of resources 6,255,727 3,529,595 3,270,661 2,726,132
TOTAL ASSETS AND
DEFERRED OUTFLOWS OF RESOURCES 194,572,300$189,428,897$183,275,726$5,143,403$
RESOURCES AND NET POSITION
Current liabilities 9,822,138$9,852,426$9,734,621$(30,288)$
Non-current Liabilities
Long-term debt, net of current portion 50,401,520 54,997,965 59,647,062 (4,596,445)
Net pension liability 14,023,172 12,872,646 11,742,137 1,150,526
OPEB liability 5,975,587 4,328,352 4,408,729 1,647,235
Unearned revenues 6,845,107 6,252,705 6,569,632 592,402
Total Liabilities 87,067,524 88,304,094 92,102,181 (1,236,570)
Deferred inflows of resources 868,870 849,728 259,666 19,142
NET POSITION
Net investment in capital assets 77,558,680 74,841,974 66,843,642 2,716,706
Restricted for debt service 11,439,913 11,052,666 9,742,741 387,247
Unrestricted 17,637,313 14,380,435 14,327,496 3,256,878
Total Net Position 106,635,906 100,275,075 90,913,879 6,360,831
TOTAL LIABILITIES, DEFERRED
INFLOWS OF RESOURCES
AND NET POSITION 194,572,300$189,428,897$183,275,726$5,143,403$
ASSETS AND DEFERRED
LIABILITIES, DEFERRED INFLOWS OF
DRAFT
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
MANAGEMENT’S DISCUSSION AND ANALYSIS
December 31, 2020 and 2019
See accompanying auditors’ report.
Page 8
DISTRICT HIGHLIGHTS (Continued)
The District had income before capital contributions of $4.3 million, $4.7 million, and $4.8 million for the
years ended December 31, 2020, 2019, and 2018, respectively. Changes in the District’s net position can
be determined by reviewing the following Condensed Revenues, Expenses, and Changes in Net Position.
Total operating revenues were $41.7 million in 2020, $39.3 million in 2019, and $37.7 million in 2018.
Electric revenues increased 6.0% in 2020 compared to 2019. A 3% rate increase in 2020 along with a
pandemic driven increase in electricity usage can be attributed to the increase. Water revenues increased
6.0% in 2020; a 3% water rate increase also occurred in 2020 and drier than average conditions in 2020
drove an increase in irrigation patterns by consumers compared to the prior year. Electric revenues
increased 4.9% in 2019 compared to 2018. A 3% rate increase in 2019 along with a colder winter can be
attributed to the increase. Water revenues increased 2.6% in 2019 largely due to a 3% rate increase slightly
offset by the colder winter resulting in later irrigation patterns.
Total operating expenses were $38.8 million in 2020, $36.4 million in 2019, and $34.1 million in 2018. In
2020 compared to 2019, the Electric Utility had an 8.5% increase in operating expenses due to wildfire
mitigation costs 3.2%, purchased power costs 2.2%, internal labor shifting from capital to operations 2.0%,
and all other costs net increase of 1.1%. The Water Utility had a 3.4% increase in operating expenses
primarily due to impact of rate of pay increases on compensation costs. In 2019, the increased operating
expenses to 2018 can be attributed to increased tree trimming costs to reduce the risk of wildfire along with
increased maintenance material costs. In addition, in both 2020 and 2019, the District as a whole
experienced increased insurance and regulatory costs compared to the prior year.
In 2020 compared to 2019, non-operating revenues and expenses decreased $0.3 million due primarily to
a decrease in investment income of $0.5 million, a loss of tax receivables due to tax sale of Grey’s Crossing
parcels of $0.2 million, net gain on sale of assets increase of $0.2 million, and a decrease in interest
expense of $0.1 million. In 2019 compared to 2018, non-operating revenues and expenses increased $0.6
million due to an increase in investment income coupled by a decrease in interest expense in 2019.
LONG-TERM DEBT
Long-term debt includes revenue bonds and installment loans. At December 31, 2020, 2019, and 2018, the
District had $55.0 million, $59.5 million, and $63.9 million, respectively, in long-term debt outstanding.
No new debt was issued in 2020 or 2019.
Increase
(Decrease)
2020 2019 2018 2020 - 2019
Sales to consumers 38,988,024$37,029,653$35,486,412$1,958,371$
Other operating revenues 2,754,003 2,303,918 2,198,605 450,085
Total Operating Revenues 41,742,027 39,333,571 37,685,017 2,408,456
Operating expenses 38,847,181 36,383,962 34,092,086 2,463,219
Operating Income 2,894,846 2,949,609 3,592,931 (54,763)
Non-operating revenues (expenses)1,422,190 1,728,488 1,162,050 (306,298)
Income before
capital contributions 4,317,036 4,678,097 4,754,981 (361,061)
Capital contributions, net 2,043,795 4,683,099 4,652,720 (2,639,304)
Change in net position 6,360,831 9,361,196 9,407,701 (3,000,365)
Net Position, Beginning of Year 100,275,075 90,913,879 81,506,178 9,361,196
NET POSITION, END OF YEAR 106,635,906$100,275,075$90,913,879$6,360,831$DRAFT
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
MANAGEMENT’S DISCUSSION AND ANALYSIS
December 31, 2020 and 2019
See accompanying auditors’ report.
Page 9
CAPITAL ASSETS
As of December 31, 2020, 2019, and 2018, the District had $132.0 million, $133.8 million, and $130.2
million, respectively, invested in a variety of capital assets, net of accumulated depreciation. A summary of
capital assets is reflected in the following schedule.
Net capital assets (additions, less retirements and depreciation) decreased $1.8 million. The District ended
2020 with decreased construction work in progress of $4.6 million compared to $6.1 million in 2019; this
includes the overhead pole replacement project, Truckee substation project, transformer project, and the
SCADA reliability phase 5 project.
ECONOMIC FACTORS AND NEXT YEARS BUDGETS AND RATES
The District operates on a two year budget. The FY20 & FY21 Board approved Budget includes an
assumption for customer growth in fiscal year 2020 and 2021 of 1%, consistent with what the District
experienced in recent prior years. Revenue projections for fiscal year 2020 and 2021 include rate increases
each year of 3% for both Electric and Water. For 2020 and 2021, Electric’s rate increase was 3.0%, Water’s
rate increase was 3.0% for 2020 and 8.7% for 2021. Rates by rate class can be found on the District’s
website at www.tdpud.org. Expenditures for Electric and Water excluding debt service, were projected to
increase approximately 3% compared to fiscal year 2019 budgeted expenditures for both 2020 and 2021.
Overall, the pandemic’s impact financially on the District has not been material, with certain cost increases,
an increased in unpaid billings, more than offset by an increase in energy demands due to increased
occupancies.
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: Treasurer
11570 Donner Pass Road
Truckee, CA 9616
Plant Balances 2020 2019 2018
Electric distribution 71,894,379$67,692,718$64,204,691$
Water distribution 121,483,082 120,131,130 116,378,593
General plant 19,316,645 18,450,144 16,513,295
Total 212,694,106 206,273,992 197,096,579
Accumulated Depreciation
Electric distribution (21,385,441)(19,454,296)(19,488,505)
Water distribution (52,339,068)(48,269,854)(44,232,073)
General plant (11,522,788)(10,851,668)(10,372,265)
Total (85,247,298)(78,575,819)(74,092,843)
Plant Sub-Total
Electric distribution 50,508,937 48,238,422 44,716,186
Water distribution 69,144,014 71,861,276 72,146,520
General plant 7,793,857 7,598,476 6,141,030
Total 127,446,808 127,698,173 123,003,736
Construction work in progress 4,584,711 6,114,079 7,169,814
Net capital assets 132,031,519$133,812,252$130,173,550$
CAPITAL ASSETS
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FINANCIAL STATEMENTS
DRAFT
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
CONSOLIDATED STATEMENTS OF NET POSITION
December 31, 2020 and 2019
The accompanying notes are an integral part of these consolidated financial statements.
Page 12
ASSETS AND DEFERRED
OUTFLOWS OF RESOURCES 2020 2019
CURRENT ASSETS
Cash Funds
Operating 14,989,131$12,969,107$
Designated 14,498,107 12,635,745
Restricted 9,659,770 9,355,602
Total Cash Funds 39,147,008 34,960,454
Accounts receivable, net 9,615,637 9,024,044
Unbilled revenues 3,111,640 2,945,446
Accrued interest receivable 60,620 110,486
Materials and supplies 906,547 736,544
Prepaid expenses 671,824 643,240
Other 127,071 124,759
Total Current Assets 53,640,347 48,544,973
NON-CURRENT ASSETS
Other Non-Current Assets
Restricted investment fund 1,674,293 1,730,450
Special assessments receivable 783,721 1,562,702
Other 186,693 248,925
Total Other Non-Current Assets 2,644,707 3,542,077
CAPITAL ASSETS
Utility plant 212,694,105 206,273,992
Accumulated depreciation (85,247,297)(78,575,819)
Construction work in progress 4,584,711 6,114,079
Total Capital Assets 132,031,519 133,812,252
DEFERRED OUTFLOWS OF RESOURCES
Pension 2,914,246 2,350,006
OPEB 2,822,218 600,263
Unamortized loss on refunding 478,372 511,174
Unamortized redemption premium 40,891 68,152
Total Deferred Outflows of Resources 6,255,727 3,529,595
TOTAL ASSETS AND DEFERRED
OUTFLOWS OF RESOURCES 194,572,300$189,428,897$DRAFT
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
CONSOLIDATED STATEMENTS OF NET POSITION
December 31, 2020 and 2019
The accompanying notes are an integral part of these consolidated financial statements.
Page 13
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND NET POSITION 2020 2019
CURRENT LIABILITIES
Other Liabilities
Accounts payable 2,880,841$3,111,240$
Customer deposits 440,865 454,959
Other 1,183,100 995,795
Total Other Liabilities 4,504,806 4,561,994
Current Liabilities Payable From Restricted Assets
Current portion of long-term debt 4,574,633 4,508,430
Accrued interest payable 742,699 782,002
Total Current Liabilities Payable from Restricted Assets 5,317,332 5,290,432
Total Current Liabilities 9,822,138 9,852,426
NON-CURRENT LIABILITIES
Long-term debt, net of discounts and premiums 50,376,578 54,973,023
Net pension liability 14,023,172 12,872,646
Net OPEB liability 5,975,587 4,328,352
Installment loans 24,942 24,942
Unearned revenues 6,845,107 6,252,705
Total Non-Current Liabilities 77,245,386 78,451,668
Total Liabilities 87,067,524 88,304,094
DEFERRED INFLOWS OF RESOURCES
Pension 537,295 544,868
OPEB 331,575 304,860
Total Deferred Inflows of Resources 868,870 849,728
NET POSITION
Net investment in capital assets 77,558,680 74,841,974
Restricted for debt service 11,439,913 11,052,666
Unrestricted 17,637,313 14,380,435
Total Net Position 106,635,906 100,275,075
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND NET POSITION 194,572,300$189,428,897$DRAFT
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DRAFT
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
CONSOLIDATED STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
December 31, 2020 and 2019
The accompanying notes are an integral part of these consolidated financial statements.
Page 15
2020 2019
OPERATING REVENUES
Sales to customers 38,988,024$37,029,653$
Standby fees 133,470 137,580
Cap and trade proceeds 1,444,498 1,503,495
Other 1,176,035 662,843
Total Operating Revenues 41,742,027 39,333,571
OPERATING EXPENSES
Purchased power 11,285,537 10,754,898
Operations and maintenance 11,340,451 9,768,460
Consumer services 2,080,714 2,667,957
Administration and general 6,165,611 5,772,396
Depreciation 7,974,868 7,420,251
Total Operating Expenses 38,847,181 36,383,962
Operating Income 2,894,846 2,949,609
NON-OPERATING REVENUE (EXPENSES)
Special tax revenue 3,375,327 3,352,289
Investment income 573,668 1,038,582
Interest expense (2,530,616)(2,647,817)
Amortization (38,250)(38,250)
Other non-operating revenues 41,766 48,096
Other non-operating expenses (238,590)(38,160)
Gain (loss) on disposition of assets 238,885 13,748
Total Non-Operating Revenue (Expenses)1,422,190 1,728,488
Income Before Contributions 4,317,036 4,678,097
CAPITAL & OTHER CONTRIBUTIONS 2,043,795 4,683,099
CHANGE IN NET POSITION 6,360,831 9,361,196
Net Position - Beginning of Year 100,275,075 90,913,879
NET POSITION - END OF YEAR 106,635,906$100,275,075$DRAFT
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
CONSOLIDATED STATEMENTS OF CASH FLOWS
December 31, 2020 and 2019
The accompanying notes are an integral part of these consolidated financial statements.
Page 16
2020 2019
CASH FLOWS FROM OPERATING ACTIVITIES
Received from customers 41,002,317$39,359,150$
Paid to suppliers for goods and services (22,164,412)(19,921,223)
Paid to employees for services (8,367,200)(7,090,512)
Net Cash Flows from Operating Activities 10,470,705 12,347,415
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Principal payments on long-term debt (1,000,803)(920,000)
Interest payments on long-term debt (57,094)(80,177)
Net Cash Flows from Noncapital Financing Activities (1,057,897)(1,000,177)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Capital expenditures for utility plant (6,308,208)(9,589,498)
Cost of disposal of property net of salvage 48,537 (170,589)
Capital contributions, connection and facility fees 2,480,190 2,540,734
Special assessments receipts 778,982 732,107
Special tax receipts 3,117,313 2,976,560
Principal payments on long-term debt (3,534,645)(3,489,293)
Interest payments on long-term debt (2,485,807)(2,571,679)
Cash Flows From Capital and Related Financing Activities (5,903,638)(9,571,658)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest income received 565,848 926,371
Cash Flows from Investing Activities 565,848 926,371
Net Change in Cash and Cash Equivalents 4,075,018 2,701,951
CASH AND CASH EQUIVALENTS – Beginning of Year 34,908,470 32,206,519
CASH AND CASH EQUIVALENTS – END OF YEAR 38,983,488$34,908,470$
NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES
Developer and customer added capital assets 150,874$1,762,711$
Recognition of prior period unearned revenues 855,354$5,688,114$DRAFT
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
CONSOLIDATED STATEMENTS OF CASH FLOWS
December 31, 2020 and 2019
The accompanying notes are an integral part of these consolidated financial statements.
Page 17
2020 2019
RECONCILIATION OF OPERATING INCOME TO NET CASH
FLOWS FROM OPERATING ACTIVITIES
Operating income 2,894,846$2,949,609$
Noncash items included in operating income
Depreciation and amortization 7,974,868 7,420,251
Depreciation charged to other accounts 455,294 477,592
Changes in assets and liabilities
Accounts receivable (725,616)19,591
Materials and supplies (170,003)147,694
Prepaid expenses (28,585)41,575
Accounts payable (196,892)(62,698)
Customer deposits (14,094)5,991
Deferred Pension Contributions - GASB 68 30,709 1,367,347
Deferred OPEB Contributions - GASB 75 -(46,149)
Other current liabilites 250,178 26,612
NET CASH FLOWS FROM OPERATING ACTIVITES 10,470,705$12,347,415$
RECONCILIATION OF CASH AND CASH EQUIVALENTS
TO THE BALANCE SHEET
Operating 14,989,131$12,969,107$
Designated 14,498,107 12,635,745
Restricted funds - current 9,659,770 9,355,602
Restricted funds - non-current 1,674,293 1,730,450
Total Cash and Investments 40,821,301 36,690,904
Less: Long-term investments (1,698,880)(1,698,880)
Mark to market adjustments (138,933)(83,554)
TOTAL CASH AND CASH EQUIVALENTS 38,983,488$34,908,470$DRAFT
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2020 and 2019
Page 18
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. 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. The following is a
description of the District’s blended component units:
Truckee Donner Public Utility District Financing Corporation is a legal entity that was 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) is a
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. 04-1 (Gray’s Crossing) is a
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 the 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, that are a result of exchange and exchange like transactions, are recognized
when the exchange takes place.DRAFT
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2020 and 2019
Page 19
NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
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. CASH AND CASH EQUIVALENTS
For the purpose of the accompanying statement of cash flows, the District considers all highly liquid
instruments with original maturities of three months or less when purchased to be cash equivalents and are
shown in the financial statements as “Cash Funds”.
E. INVESTMENTS
The District pools cash and investments. The District’s investment policy allows for investments in
instruments permitted by the California Government Code and/or the investments permitted by the trust
agreements on District financing. The District’s investment policy contains provisions intended to limit the
District’s exposure to interest rate risk, credit risk, and concentration of credit risk. Investment income from
pooled investments is allocated to all funds in the pool. Interest is allocated on the basis of month end cash
amounts for each fund as a percentage of the total balance.
The District categorizes the fair value measurements of its investments based on the hierarchy established
by generally accepted accounting principles. The fair value hierarchy, which has three levels, is based on
the valuation inputs used to measure an assets fair value: Level 1 inputs are quoted prices in active markets
for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant
unobservable inputs. The District does not have any investments that are measured using Level 3 inputs.
F. DESIGNATED ASSETS
The board has designated certain resources for future capital projects, replacements, and operational
needs.
G. 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.
H. ACCOUNTS RECEIVABLE AND ALLOWANCES FOR DOUBTFUL ACCOUNTS
Accounts receivable are recorded at the invoiced amount and are reported net of allowances for doubtful
accounts of $41,200 and $13,100 for 2020 and 2019, respectively. Receivables are considered past due
after 30 days and routine collection efforts begin. District Code allows for the Treasurer to write off
delinquent account balances up to 0.17% of the amounts billed. This write off process occurs semi-
annually.DRAFT
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2020 and 2019
Page 20
NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
I. MATERIALS AND SUPPLIES
Materials and supplies are recorded at average cost.
J. DEBT PREMIUM,BOND ISSUANCE COSTS,AND DISCOUNTS
Original issue and reacquired bond premiums and discounts relating to revenue bonds are amortized over
the terms of the respective bond issues using the effective interest method. Debt issuance costs are
expensed in the period incurred.
K. SPECIAL ASSESSMENT RECEIVABLE
Special assessment receivable 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.
L. AMORTIZED EXPENSES
In 2003, the District entered into a broadband dark fiber maintenance agreement with Sierra Pacific
Communications (SPC) which is included in the line item “other non-current assets” in the accompanying
Statement of Net Position. SPC subsequently assigned the agreement to AT&T. The agreement is expected
to provide benefit to the District over the estimated 20-year life of the agreement. (See note 3).
M. CAPITAL ASSETS
Capital assets are generally defined by the District as assets with an initial, individual cost of more than
$10,000 and an estimated useful life of at least two years.
Capital assets of the District are stated at the lower of cost or the acquisition 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
Electric 23 – 35 years
Water 15 – 40 years
Computer software and hardware 3 – 7 years
Building and improvements 20 – 33 years
Equipment and furniture 4 – 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. No new
debt related to capital assets was issued in 2020 and 2019; no interest was capitalized in 2020 or in 2019.
N. 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.DRAFT
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2020 and 2019
Page 21
NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
O. REVENUE RECOGNITION
Unbilled revenues, representing estimated consumer usage for the period between the last meter reading
and the end of the period, are accrued in the period of consumption. Water customers without meters are
billed on a flat-rate basis, and revenues are recorded as billed. 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.
P.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 electric and
water 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 electric and water services. All revenues
and expenses not meeting this definition are reported as non-operating revenues and expenses, or capital
contributions and other.
Q. POWER PURCHASES AND TRANSMISSION
In 1999, the District entered into an agreement with Sierra Pacific Power Company dba NV Energy (SPPC),
whereby SPPC will provide transmission services to the District through December 31, 2027. The District
uses this transmission service to import energy over SPPC’s transmission system to serve District load. In
addition, the District purchases scheduling services from Utah Municipal Power Systems (UAMPS) and the
scheduling services are included in the monthly power billings from UAMPS. The purchase of transmission
services from SPPC represented 8.7% and 10.9% of total purchased power costs in 2020 and 2019,
respectively.
In December of 2005, the District entered into an agreement with UAMPS. Subsequently, the District
entered into several pooling appendices for power capacity and energy that relate to various time periods
from January 2008 through March 2028. Also in 2009, the District signed an agreement with UAMPS for
approximately 5 MW of the Nebo natural gas generation plant capacity. In August 2012, the Horse Butte
Wind project began commercial operation and the District owns approximately 15 MW of nameplate
capacity that generates about 5 MW on average. The District has also invested in the Veyo Heat Recovery
project that came on line in mid-2016. The District receives about 1.7 MW of carbon-free generation from
this resource. In September 2019 the District entered into 25-year Purchase Power Agreement with UAMPS
for a 6MW share of the Red Mesa Solar Project. The Project is being developed by UAMPS and the Navajo
Tribal Utility Authority for use by UAMPS members. It is scheduled to be online by June 1, 2022. The Red
Mesa Solar Project price for energy is among the lowest wholesale price paid by the District for any
resource. It is estimated that a 6MW share equates to about 10 percent of total annual District energy
requirements.
In August of 2007, the District entered into an agreement with Western Area Power Administration (WAPA)
for the delivery of Stampede Dam Hydroelectric generation. In accordance with this agreement, the District
is entitled to a portion of the power generated by Stampede Dam. This generation is dependent upon the
amount of water that is made available to the generator. This agreement is effective through 2024.
In 2018 and 2019, the UAMPS contract, along with its appendices, and the WAPA contract for Stampede
Dam Hydroelectric generation comprised the majority of a diversified power portfolio that balanced risk and
costs for the District.DRAFT
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2020 and 2019
Page 22
NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
R. CAP AND TRADE PROGRAM PROCEEDS
California Assembly Bill 32 (AB32) is an effort by the State of California to set a 2020 greenhouse gas
(GHG) emissions reduction goal into law. AB32 requires California to lower greenhouse gas emissions to
1990 levels by 2020. Central to this initiative is the implementation of a cap and trade program, which covers
major sources of GHG emissions in the State including power plants. The California Cap and Trade
Program is designed to achieve cost-effective emissions reductions across the capped sectors. The
program sets maximum statewide GHG emissions for all covered sectors each year (“cap”), and allows
covered entities to sell off allowances (“trade”). An allowance is a tradable permit that allows the emission
of one metric ton of CO2. The California carbon price is driven by allowance trading. The District is subject
to AB32 and has excess allowances due to reducing carbon-based generation in its power portfolio.
In 2020 and 2019, the District sold its excess allowances in the program auctions and the proceeds were
recorded as $1,444,498 and $1,503,495 operating revenue for the respective years. The auction proceeds
are held in a restricted fund and are used to purchase qualified renewable power. (See note 2)
S.INCOME TAXES
As a government agency, the District is exempt from payment of federal and state income taxes.
T. TAX REVENUES
Beginning in 2004, the District levied ad valorem property tax on all the taxable property within the Old
Greenwood District in an amount sufficient to pay the yearly principal and interest on the Special
Assessment District Tax Bonds. (See notes 5 and 7). The District had revenues of $782,954 in 2020 and
$749,609 in 2019.
On January 28, 2014, refunding bonds were sold to a private investment firm and the proceeds were used
to call the 2003 Old Greenwood bonds on March 1, 2014. The 2014 refunding bonds have the same rate
and method of apportionment conditions on the Old Greenwood properties as the original 2003 bonds.
Beginning in 2005, the District levied ad valorem property tax on all taxable property within the Gray’s
Crossing District in an amount sufficient to pay the yearly principal and interest on the Special Assessment
District Tax Bonds. (See notes 5 and 7). The District had revenues of $2,592,373 in 2020 and $2,602,680
in 2019.
Taxes are assessed based on the county tax year ending June 30, resulting in unearned revenues for each
of the community facility districts. (See note 6).
U. 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
unearned revenues on the Statement of Net Position.DRAFT
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2020 and 2019
Page 23
NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
V. OTHER –PENSION SIDEFUND
As a result of implementing GASB Statement No. 68, the pension side-fund payoff that occurred in 2011
and which had been reported in the financial statements as an asset was written off due to the District’s
participation in CalPERS cost-sharing multi-employer retirement benefit plan. However, the liability for the
payoff remains until paid in full thru 2022. The intercompany fund transfers for the principal portion of the
debt service between the electric and water utility is included as “other.”
W. PENSION
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to
pensions, and pension expense, information about the fiduciary net position of the District’s California Public
Employee’s Retirement System (CalPERS) plans (Plans) and the additions to/deductions from the Plans’
fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this
purpose, benefit payments (including refunds of employee contributions) are recognized when due and
payable in accordance with the benefit terms. Investments are reported at fair value.
X. RECENT ACCOUNTING PRONOUNCEMENTS IMPLEMENTED BY THE DISTRICT
GASB Statement No. 84,Fiduciary Activities, addresses identifying fiduciary activities of all state and local
governments. The general focus of the criteria is on (1) whether a government is controlling the assets of
the fiduciary activity and (2) the beneficiaries with whom a fiduciary relationship exists. Separate criteria
are included to identify component units and postemployment benefit arrangements that are fiduciary
activities. The District has determined that this pronouncement has no changes in financial reporting of the
District.
GASB Statement No. 97,Certain Component Unit Criteria, and Accounting and Financial Reporting For
Internal Revenue Code Section 457 Deferred Compensation Plans,is intended to improve the consistency
of the reporting of fiduciary component units and enhance the comparability in the application of accounting
and financial reporting requirements for deferred compensation plans. The District has determined that this
pronouncement has no changes in financial reporting of the District.
Y. DEFERRED OUTFLOWS OF RESOURCES AND DEFERRED INFLOWS OF RESOURCES
Deferred Outflows of Resources:This separate financial statement element represents consumption of net
position or fund balance that applies to future period(s) and so will not be recognized until that time.
Deferred Inflows of Resources:This separate financial statement element represents an acquisition of net
position or fund balance that applies to future period(s) and so will not be recognized as an inflow of
resources until that time.
Z.UNAMORTIZED LOSS ON BOND REFUNDING
For current and advanced refunding results in defeasance of debt, the difference between the reacquisition
price and the net carrying amount of the old debt (Gain or loss) is deferred and amortized as a component
of interest expense over the remaining life of the old debt or the new debt, whichever is shorter. These
amounts are reported as deferred outflow on the statements of net position.DRAFT
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2020 and 2019
Page 24
NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
AA. ACCOUNTING PRONOUNCEMENTS TO BE IMPLEMENTED IN UPCOMING YEARS
GASB Statement No. 87,Leases,addresses accounting and financial reporting for leases by governments.
This Statement increases the usefulness of financials statements by requiring recognition of certain lease
assets and liabilities for leases that previously were classified as operating leases by establishing a single
model of lease accounting based on the foundational principle that leases are financings of the right to use
an underlying asset. Under this statement, a lessee is required to recognize a lease liability and intangible
right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of
resources, thereby enhancing the relevance and consistency of information about leasing activities. The
District has not determined what impact, if any, this pronouncement will have on the financial statements.
This statement is effective for the District fiscal year ending December 31, 2022.
GASB Statement No. 89,Accounting for Interest Cost Incurred before the End of a Construction Period,
addresses interest costs incurred before the end of a construction period to be recorded as an expenditure
in the applicable period. As a result, interest costs incurred before the end of a construction period will not
be included in the historical cost of a capital asset reported. The District has not determined what impact
this pronouncement will have on the financial statements. Application of this statement is effective for the
District’s fiscal year ending December 31, 2021.
NOTE 2 – CASH, CASH EQUIVALENTS, AND INVESTMENTS
Cash, cash equivalents 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 board
designated accounts may be used to pay for selected capital projects. Such accounts have been designated
by the Board for the following purposes:
Electric Capital Replacement
Starting in 2009, the Board set aside funds designated for future electric infrastructure replacement.
Electric Vehicle Reserve
Beginning in 2009, the Board set aside funds designated for future electric utility vehicle
replacements.
Electric Rate Reserve
In compliance with Board rules, the District created an electric rate stabilization fund in anticipation
of future costs. During both 2020 and 2019, there was no utilization of these funds to offset
increased power costs in lieu of raising electric rates.
Water Vehicle Reserve
Beginning in 2009, the Board set aside funds designated for future Water Utility vehicle
replacements.DRAFT
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2020 and 2019
Page 25
NOTE 2 – CASH, CASH EQUIVALENTS, AND INVESTMENTS (Continued)
Prepaid Connection Fees
In compliance with Board rules, the District has set aside prepaid connection fees to cover
installation costs of water services.
Debt Service Coverage and Operating Reserve Fund
Effective 2007, the Board has voluntarily set aside funds to improve the District’s cash-to-debt-
service ratio. In 2020 no funds were used.
Donner Lake Assessment District Surcharge Fund
The District established a monthly billing surcharge in the amount of $6.65 applicable to customers
in the Donner Lake area to provide revenue to pay the remainder of the cost of reconstruction
effective October 2006.
Deferred Liabilities Reserve
Starting in 2017, the Board established a reserve to protect the District from volatility in pension,
other post-employment benefits, and worker’s compensation premiums.
As of December 31, Board designated accounts at fair value consisted of the following:
Certain assets have been restricted by bond covenants or third party contractual agreements for the
following purposes:
Certificates of Participation
Prepayments to the Trustee from the District for upcoming debt payments.
Special Tax Bonds: Gray’s Crossing
The terms of the special tax bonds issued for the Mello-Roos Community Facilities Districts (CFD)
require reserve funds as security for each principal and interest payment as they come due.
Reserve funds are set aside as prescribed in the loan documents. These reserve funds are held
by Bank of New York Mellon Trust Company.
2020 2019
Electric capital replacement fund 3,649,736$2,419,674$
Electric vehicle reserve 626,347 402,741
Electric rate reserve 5,973,501 5,852,452
Electric deferred liabilites reserve 2,085,918 2,053,044
Water vehicle reserve 197,987 -
Prepaid connection fees 77,788 76,837
Debt service & operating reserve fund 1,632,667 1,592,690
Donner Lake Assessment District surcharge fund 147,937 133,379
Water deferred liabilites reserve 106,226 104,928
Totals 14,498,107$12,635,745$DRAFT
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2020 and 2019
Page 26
NOTE 2 – CASH, CASH EQUIVALENTS, AND INVESTMENTS (Continued)
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. Annual
payments into the fund were required for each of the first ten years beginning April 1, 1996. The
total reserve fund equals two semi-annual payments and was fully funded during 2006. These funds
are 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.
Donner Lake Special Assessment District Improvement and Reserve Fund
The District established the Donner Lake Special Assessment District (DLAD) 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. The DLAD
Improvement Fund also has a reserve fund as required by the California – Safe Drinking Water –
State Revolving Fund (SRF). This fund is required to set aside $40,043 semi-annually for ten years
beginning in 2006. The reserve fund was fully funded as of December 31, 2016.
AB32 Cap and Trade Auction Fund
The District electric utility is identified as an “Electric Distribution Utility” under the Cap and Trade
regulations and is therefore eligible to receive a direct allocation of allowances that can be sold in
an auction. The proceeds from quarterly allowance auctions are held in this restricted fund and
are used to purchase qualified renewable power. These funds are intended to mitigate the burden
on the consumer without impacting a carbon price signal.
Other (Area Improvement Funds)
The District received 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.DRAFT
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2020 and 2019
Page 27
NOTE 2 – CASH, CASH EQUIVALENTS, AND INVESTMENTS (Continued)
As of December 31, restricted cash and cash equivalents and investments at fair value consisted of the
following:
Cash and investments are comprised of the following cash and cash equivalents and investments as of
December 31:
Cash and cash equivalents and investments were $40,821,301 and $36,690,905 at December 31, 2020
and 2019, respectively. Cash equivalents substantially consist of deposits in the state pooled fund, Placer
County pooled fund, money market funds and investments.
Adjustments necessary to record investments at fair market value are recorded in the operating statement
as increases or decreases in investment income. Market values may have changed significantly after year
end.
FAIR VALUE MEASUREMENT
The District applies the provisions of Governmental Accounting Standards Board (GASB) Statement No.
72,Fair Value Measurement and Application,which requires governmental entities, to report certain
investments at fair value on the Statements of Net Position.
Investments are valued at fair value at December 31. Fair value is defined as the price that would be
received to sell an asset or paid to transfer a liability in an orderly transaction between market participants
at the measurement date. The District categorizes its fair value measurements within the fair value
hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation
inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices for identical instruments
in active markets. Level 2 inputs are quoted prices for similar instruments in active markets; quoted prices
for identical or similar instruments in markets that are not active; and model derived valuations in which all
significant inputs are observable. Level 3 inputs are valuations derived from valuation techniques in which
significant inputs are unobservable.
2020 2019
Certificates of Participation 571,993$557,673$
Special tax bonds 2,539,730 2,658,411
Facilities fees 2,587,322 2,349,620
DWR-Prop 55 reserve fund 340,762 336,596
Donner Lake Special Assessment District improvement 2,804,343 2,767,820
Donner Lake Special Assessment District reserve fund 826,526 821,579
AB 32 Cap and Trade Auction fund 1,606,959 1,538,615
Other (area improvement funds)56,428 55,738
Total Restricted Cash and Cash
Equivalents and Investments 11,334,063$11,086,052$
2020 2019
Cash and cash equivalents 39,147,008$34,960,454$
Investments – government bonds 1,674,293 1,730,450
Totals 40,821,301$36,690,905$DRAFT
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2020 and 2019
Page 28
NOTE 2 – CASH, CASH EQUIVALENTS, AND INVESTMENTS (Continued)
FAIR VALUE MEASUREMENT (Continued)
The District classifies its fair value measurements within the fair value hierarchy established by generally
accepted accounting principles. The District has the following fair value measurements as of December
31, 2020:
US Government bonds are valued using observable inputs (Level 2 inputs).
INVESTMENTS AUTHORIZED BY THE DISTRICT’S INVESTMENT POLICY
The District adopted an investment policy in 2006 which allowed for investments in instruments permitted
by the California Government Code and/or the investments permitted by the trust agreements on District
financing, including investments in the local government investment fund pool administered by the State of
California (LAIF), Placer County Treasurer’s Investment Portfolio (PCTIP) pooled investment and Utah
Public Treasurers’ Investment Fund (UPTIF). The District’s investment policy contains provisions intended
to limit the District’s exposure to interest rate risk, credit risk, and concentration of credit risk. At December
31, 2020 and 2019 the District’s deposits and investments at fair value were held as follows:
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 is the sensitivity of its fair value
to changes in market interest rates. Information about the sensitivity of the fair values of the District’s
investments to market interest rate fluctuations is provided by the following table that shows the District’s
investments by maturity for 2020 and 2019:
Investments and Deposits Maturity
LAIF 3 months or less
PCTIP 3 months or less
UPTIF 3 months or less
Federated U.S. Treasury Cash Reserve 3 months or less
Morgan Stanley Treasury 3 months or less
Fidelity Money Market Government Portfolio 57 3 months or less
Dreyfus Treasury Securities 3 months or less
Federal Farm Credit Banks 3 months or less
2020 2019
Cash on hand 2,400$2,400$
Deposits 3,073,483 1,287,103
LAIF 17,525,627 15,260,179
PCTIP 8,459,694 8,271,436
UPTIF 8,866,958 8,856,197
Money Market Funds 1,218,846 1,283,139
Government Bonds 1,674,293 1,730,450
Totals 40,821,301$36,690,905$DRAFT
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2020 and 2019
Page 29
NOTE 2 – CASH, CASH EQUIVALENTS, AND INVESTMENTS (Continued)
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, PCTIF and UPTIF do not have a rating provided by a nationally recognized statistical
rating organization. The Morgan Stanley Treasury is rated AAAm by S&P and Aaa-mf by Moody’s. The
Federated U.S. Treasury Cash Reserve is rated AAAm by S&P and Aaa-mf by Moody’s. Federal Farm
Credit Banks is rated AA+ by S&P and Aaa by Moody’s. The Dreyfus Treasury Securities is rated Aaa-mf
by Moody’s and AAAm by S&P. The Fidelity Money Market is rated AAA-mf by Moody’s and AAAm by S&P.
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 District’s investment policy does not contain legal or policy
requirements that would limit the exposure to custodial credit risk for deposits. However, 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, 2020 and 2019 bank deposits exceeded FDIC insurance coverage as of December
31, 2020 and 2019 by $2,524,887 and $1,007,581, respectively.
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 mutual funds or governmental investment
pools (such as LAIF).
DEPOSIT IN STATE INVESTMENT POOL
The District is a voluntary participant in the Local Agency Investment Fund (LAIF). This investment fund
has an equity interest in the State of California’s (State’s) Pooled Money Investment Account (PMIA). PMIA
funds are on deposit with the State’s Centralized Treasury System and are managed in compliance with
the California Government Code according to a statement of investment policy which sets forth permitted
investment vehicles, liquidity parameters, and maximum maturity of investments. 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.DRAFT
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2020 and 2019
Page 30
NOTE 2 – CASH, CASH EQUIVALENTS, AND INVESTMENTS (Continued)
DEPOSIT IN PLACER COUNTY TREASURER INVESTMENT POOL
The District is a voluntary participant in the Placer County Investment Portfolio (PCTIP). The District is
eligible to participate in PCTIP because a portion of the District’s service area is in Placer County.
Investments are on deposit with the Placer County Treasurer and are managed in compliance with the
California Government Code according to a statement of investment policy which sets forth permitted
investment vehicles, liquidity parameters, and maximum maturity of investments. 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 Placer County Treasurer for the entire PCTIP
(in relation to the amortized cost of the portfolio). The balance available for withdrawal is based on the
accounting records maintained by the Placer County Treasurer, which are recorded on an amortized cost
basis.
DEPOSIT IN UTAH PUBLIC TREASURERS’INVESTMENT FUND
The District is a voluntary participant in the Utah Public Treasurers’ Investment Fund (UPTIF). The District
is eligible to participate in (UPTIF) through its membership with Utah Associated Municipal Power Systems
(UAMPS). Investments are on deposit with State of Utah public treasury and investments are restricted to
those authorized by the Utah Money Management Act and rules of the Money Management Council of
Utah. The fair value of the District’s investments 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 UPTIF through
UAMPS Member Retention Fund.
NOTE 3 – TELECOMMUNICATION SERVICES
In 1999, the District initiated a project to expand its basic service offerings to include internet access, cable
television and voice delivered over fiber optic networks (the broadband project). The District completed the
broadband design project and obtained the necessary regulatory approvals and franchises needed to
construct and launch the broadband project. A local cable television service provider filed an objection in
September 2004 with the Nevada County Local Agency Formation Commission (LAFCO), the entity
responsible for providing regulatory approval for the broadband project. After denying the cable television
provider’s request for a reconsideration of their approval of the District’s project, the cable television
provider filed 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 the cable television provider’s claim. The
cable television provider filed an appeal; however, in June of 2007, the Court ruled in favor of LAFCO,
upholding the initial ruling.
Since 2009, the District has been exploring options to sell or lease the existing infrastructure to provide a
return on investment in the project. Expenses incurred by the District to date on the broadband project total
$2,834,079, of which $496,990 was expensed in 2014 for legal fees and preliminary feasibility studies. In
2020 and 2019 there were no material expenditures for this project.
In 2018, The District signed a Memorandum of Understanding with Plumas Sierra Telecommunications to
offer services utilizing these four fibers from Reno to Sacramento in future years.DRAFT
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2020 and 2019
Page 31
NOTE 4 – CAPITAL ASSETS
Capital assets consist of the following at December 31, 2020 and 2019:
As of December 31, 2020 and 2019, the plant in service included land and land rights of $3,318,346 which
are 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.
January 1,December 31,
Plant Balances 2020 Additions Reductions 2020
Electric distribution 67,692,719$$4,429,790 ($228,130)71,894,379$
Water distribution 120,131,130 2,161,608 (809,656)121,483,082
General plant 18,450,143 1,397,052 (530,551)19,316,644
Total 206,273,992 7,988,450 (1,568,337)212,694,105
Accumulated Depreciation
Electric distribution (19,454,296)(2,350,811)419,666 (21,385,441)
Water distribution (48,269,854)(4,879,104)809,890 (52,339,068)
General plant (10,851,669)(1,156,262)485,143 (11,522,788)
Total (78,575,819)(8,386,177)1,714,699 (85,247,297)
Plant Sub-Total
Electric distribution 48,238,423 2,078,979 191,536 50,508,938
Water distribution 71,861,276 (2,717,496)234 69,144,014
General plant 7,598,474 240,790 (45,408)7,793,856
Total 127,698,173 (397,727)146,362 127,446,808
Construction work in progress 6,114,079 6,853,869 (8,383,237)4,584,711
Totals 133,812,252$6,456,142$(8,236,875)$132,031,519$
January 1,December 31,
Plant Balances 2019 Additions Reductions 2019
Electric distribution 64,204,692$5,482,262$(1,994,235)$67,692,719$
Water distribution 116,378,593 4,138,345 (385,808)120,131,130
General plant 16,513,294 2,787,341 (850,492)18,450,143
Total 197,096,579 12,407,948 (3,230,535)206,273,992
Accumulated Depreciation
Electric distribution (19,488,505)(2,159,666)2,193,875 (19,454,296)
Water distribution (44,232,073)(4,423,754)385,973 (48,269,854)
General plant (10,372,265)(1,199,000)719,596 (10,851,669)
Total (74,092,843)(7,782,420)3,299,444 (78,575,819)
Plant Sub-Total
Electric distribution 44,716,187 3,322,596 199,640 48,238,423
Water distribution 72,146,520 (285,409)165 71,861,276
General plant 6,141,029 1,588,341 (130,896)7,598,474
Total 123,003,736 4,625,528 68,909 127,698,173
Construction work in progress 7,169,814 10,013,133 (11,068,868)6,114,079
Totals 130,173,550$14,638,661$(10,999,959)$133,812,252$DRAFT
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2020 and 2019
Page 32
NOTE 5 – LONG-TERM DEBT
Long-term debt consisted of the following at December 31, 2020:
January 1,December 31,Due within
2020 Additions Reductions 2020 one year
Pension Obligation Bonds
Electric, 2.47%
due semi-annually to 2022 2,556,000$-$(978,000)$1,578,000$1,039,000$
State Revolving Fund Loan –
Water, 2.34%, due semi-annually
beginning in 2006 to 2026 4,803,024 -(692,489)4,110,535 708,788
Special Tax Bonds – Mello
Roos, 4.18%, due
serially to 2032 8,793,600 -(408,500)8,385,100 444,800
Special Tax Bonds – Mello
Roos, 3.25% to 5.8%,
due serially to 2035 (net
unamortized discounts of $68,693)13,171,620 -(370,313)12,801,307 420,000
Special Tax Bonds – Mello
Roos, 3.50% to 5.30%,
due serially to 2035 (net
unamortized discounts of $7,590)16,091,892 -(484,482)15,607,410 530,000
Certificates of Participation –
Water, 1.54%
due serially to 2021
refinanced in 2016 1,331,000 -(667,000)664,000 605,000
Certificates of Participation –
Water, 2.00% to 4.00%,
due serially to 2035 (net
premiums of $394,005)12,266,023 -(612,018)11,654,005 664,000
Department of Water Resources,
3.18%, due semiannually to
2021, secured by real
and personal property 445,491 -(294,638)150,854 150,854
Installment loan, 4.58%
due serially to 2023 47,745 -(22,803)24,942 12,191
Totals 59,506,395$-$(4,530,243)$54,976,153$4,574,633$DRAFT
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2020 and 2019
Page 33
NOTE 5 – LONG-TERM DEBT (Continued)
Long-term debt consisted of the following at December 31, 2019:
January 1,December 31,Due within
2019 Additions Reductions 2019 one year
Pension Obligation Bonds
Electric, 2.47%
due semi-annually to 2022 3,476,000$-$(920,000)$2,556,000$978,000$
State Revolving Fund Loan –
Water, 2.34%, due semi-annually
beginning in 2006 to 2026 5,479,589 -(676,565)4,803,024 692,489
Special Tax Bonds – Mello
Roos, 4.18%, due
serially to 2032 9,164,800 -(371,200)8,793,600 408,500
Special Tax Bonds – Mello
Roos, 3.25% to 5.8%,
due serially to 2035 (net
unamortized discounts of $73,380)13,556,933 -(385,313)13,171,620 375,000
Special Tax Bonds – Mello
Roos, 3.50% to 5.30%,
due serially to 2035 (net
unamortized discounts of $8,108)16,606,374 -(514,482)16,091,892 485,000
Certificates of Participation –
Water, 4.00% to 5.00%
due serially to 2021
refinanced in 2016 1,990,000 -(659,000)1,331,000 667,000
Certificates of Participation –
Water, 2.00% to 4.00%,
due serially to 2035 (net
premiums of $421,023)12,858,041 -(592,018)12,266,023 585,000
Department of Water Resources,
3.18%, due semiannually to
2021, secured by real
and personal property 731,001 -(285,510)445,491 294,638
Installment loan, 4.58%
due serially to 2023 47,745 --47,745 22,803
Totals 63,910,483$-$(4,404,088)$59,506,395$4,508,430$DRAFT
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2020 and 2019
Page 34
NOTE 5 – LONG-TERM DEBT (Continued)
During April 2004, the District obtained financing in the form of a State Revolving Fund Loan, the proceeds
of which were utilized in the replacement of the Donner Lake water system. The District submitted
expenditures to the State for reimbursement of $12,732,965. The semi-annual principal and interest
payments are $400,426 and commenced in 2006. In 2004, the remaining balance of $12,227,122 was used
to pay off the temporary lines of credit obtained in 2001 and 2002 to fund the Donner Lake project. (See
note 8).
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. (See note 7). 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.
In January 2014, the original 2003 bonds issued for the Old Greenwood Community Facilities District were
refunded (refinanced) by issuing 2014 bonds to a private investment firm at a lower rate, saving the property
owners in Old Greenwood over $3 million over the term of the bonds. The 2014 bonds did not require a
reserve fund. Therefore the reserve fund of the 2003 bonds was utilized to reduce the principal. The 2014
bonds have similar terms and have the same rate and method of apportionment for the Old Greenwood
parcel owners as the original 2003 bonds.
During 2005 and 2004 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 7). 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.
On October 12, 2006, through the Truckee Donner Public Utility District Financing Corporation on behalf of
the District issued $26,570,000 of Certificates of Participation to refund 100% of the outstanding balance
of Certificates issued in 1996, complete the funding of the Donner Lake Assessment District water system,
and fund water system capital improvements. The refunding portion of the 2006 COP’s, totaling $8,465,000,
has an average interest rate of 4.10%. The refunded 1996 COP’s had an average interest rate of 5.41%.
The net proceeds of $7,500,557 (after payment of $63,733 in underwriting fees, insurance and other
issuance costs) plus an additional $1,315,194 of reserve fund monies were used to prepay the outstanding
debt service requirements on the 1996 COP’s. The terms of the 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 125% of the debt service for each year.
In 2015, a portion of the 2006 COP was refunded. Since a portion of the 2006 COP was used for advance
refunding of previous COP, that portion could not be advance refunded at the time of the refunding. The
new 2015 refunding did not require a reserve fund. The reserve fund was liquidated and applied towards
reducing the debt principal. The estimated net present value savings were $1,600,000 or 10% over the
remaining life of issuance.
In 2016, the remaining portion of the 2006 COP was refunded. Due to the refunding an estimated net
present value savings of $222,000 was achieved.DRAFT
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2020 and 2019
Page 35
NOTE 5 – LONG-TERM DEBT (Continued)
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.
In June 2011, the District refunded (refinanced) an existing $7.8 million pension side fund obligation for its
participation in CalPERS. Prior to 2011, the annual side fund payments were expensed and described in
the Notes to Financial Statements. The pension side fund liability was amortized through June 2022 with a
7.75% rate. This liability was not required to be reported on the District’s Statement of Net Position, but the
future pension expense was included in budget and rate calculations. The new refunding rate of 5% reduced
the District’s annual pension costs by almost $100,000 through 2022. In 2016, the District refunded the
pension side fund again earning the District annual savings of $30,000 or $164,000 in total.
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. There were no additional installment loans in 2020 or in 2019.
Scheduled payments on debt are:
Principal Interest Total
2021 4,574,633$2,479,049$7,053,682$
2022 3,441,721 2,331,982 5,773,703
2023 3,075,746 2,205,289 5,281,035
2024 3,280,323 2,076,955 5,357,278
2025 3,889,807 8,207,185 12,096,992
2026-2030 16,876,100 3,894,715 20,770,815
2031-2035 19,520,100 186,265 19,706,365
54,658,430$21,381,440$76,039,870$
Plus: Unamortized premiums 394,005
Less: Unamortized discounts (76,282)
54,976,153$DRAFT
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2020 and 2019
Page 36
NOTE 6 – UNEARNED REVENUES
Transactions that have not yet met revenue recognition requirements are recorded as a non-current liability
and reflected in the accompanying Statement of Net Position. As of December 31, 2020 and 2019,
unearned revenues consist of unearned special assessment revenues, development agreement deposits,
connection fees, and other deposits.
Unearned revenues consisted of the following at December 31, 2020 and 2019:
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 (CFD), 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
were completed, the infrastructure was donated in the form of a capital contribution to the Town of Truckee,
the Truckee Sanitary District, Southwest Gas, and the District.
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). In January 2014, the original 2003 bonds were
refunded (refinanced) by issuing 2014 bonds to a private investment firm at a lower rate, saving the property
owners in Old Greenwood over $3 million over the term of the bonds. The 2014 bonds have similar terms
and have the same rate and method of apportionment for the Old Greenwood parcel owners as the original
2003 bonds.
During 2020 and 2019 respectively, taxes of $790,384 and $775,524 were levied by Old Greenwood. Of
these amounts, $395,192 and $387,762 relate to 2020 and 2019 respectively, and accordingly are included
in tax revenues in the accompanying Statement of Revenues, Expenses, and Changes in Net Position. The
remaining amount will be recognized in future periods and are included in unearned revenues on the
accompanying Statement of Net Position.
January 1,December 31,
2020 Additions Reductions 2020
Unearned tax revenues 1,677,418$1,727,290$(1,706,805)$1,697,903$
Development agreement deposits 3,210,661 907,627 (233,369)3,884,919
Connection fees and other deposits 1,364,626 1,405,210 (1,507,551)1,262,285
Totals 6,252,705$4,040,127$(3,447,725)$6,845,107$
January 1,December 31,
2019 Additions Reductions 2019
Unearned tax revenues 1,614,691$1,706,804$(1,644,077)$1,677,418$
Development agreement deposits 3,727,796 2,051,670 (2,568,805)3,210,661
Connection fees and other deposits 1,227,145 1,612,713 (1,475,232)1,364,626
Totals 6,569,632$5,371,187$(5,688,114)$6,252,705$DRAFT
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2020 and 2019
Page 37
NOTE 7 – COMMUNITY FACILITIES DISTRICTS (Continued)
In September 2004, the Community Facilities District No. 04-1 (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 the county tax roll for 2020 and 2019,
taxes of $2,605,427 and $2,579,317 respectively were levied by Gray’s Crossing. Of this amount,
$1,302,713 and $1,298,658 relate to 2020 and 2019 respectively, and accordingly, are included in tax
revenues. The remaining levied amount through the county tax roll will be recognized in future periods and
is included in unearned revenues on the accompanying Statement of Net Position.
Due to consistently high tax levy payment delinquencies, the Gray’s Crossing made unscheduled reserve
fund draws to fund debt payments of $132,640 and $238,694, for 2020 and 2019 respectively. Gray’s
Crossing Reserve Fund balance as of year-end December 31 was $2,536,011 and $2,654,709, for 2020
and 2019 respectively.
The official statements and continuing disclosures may be viewed on the web site of Electronic Municipal
Market Access (EMMA) of the Municipal Securities Rulemaking Board (MSRB), http://emma.msrb.org/. The
Committee on Uniform Securities Identification Procedures number (CUSIP) for these special tax bonds is
CUSIP 897817.
NOTE 8 – DONNER LAKE WATER COMPANY ACQUISITION
In 2001, the District acquired the Donner Lake Water Company by initiating an eminent domain lawsuit. As
a part of the takeover, the District replaced the entire water system, which cost approximately
$15.6 million and was completed in 2006. The District initially estimated the replacement cost to be
$13 million. The Donner Lake property owners agreed to reimburse the District for the full costs of the
replacement. Therefore, an assessment was placed on each Donner Lake homeowner’s property for a pro-
rata share of the $13 million payable immediately or with an option to pay over 20 years. The assessment
is collected by Nevada County and Placer County on behalf of the District and is secured by the Donner
Lake property owners. A monthly $6.65 water system upgrade surcharge is paid by the Donner Lake
customers to reimburse the District for the $2.6 million cost incurred in excess of the assessment.
In 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 District is required to fund a reserve account by making semi-annual reserve payments
in the amount of $40,043 for a 10-year period. The reserve fund was fully funded as of December 31, 2016.
As of December 31, 2020 and 2019, the assessment receivable from the property owners was $783,721
and $1,562,702. These amounts are shown as Special Assessments Receivable in the Statement of Net
Position. The proceeds of the assessment and surcharge are placed in the Donner Lake Special
Assessment District Improvement Fund and used to pay the debt service for the water system
improvements.DRAFT
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2020 and 2019
Page 38
NOTE 9 – EMPLOYEE BENEFIT PLANS
A. PENSION PLANS
Plan Description – All qualified permanent and probationary employees are eligible to participate in
the District’s Miscellaneous Employee Pension Plans, cost-sharing multiple employer defined benefit
pension plans administered by the California Public Employees’ Retirement System (CalPERS).
Benefit provisions under the Plans are established by State statute and Local Government resolution.
CalPERS issues publicly available reports that include a full description of the pension plans regarding
benefit provisions, assumptions and membership information that can be found on the CalPERS
website.
Benefits Provided – CalPERS provides service retirement and disability benefits, annual costs of living
adjustments and death benefits to plan members, who must be public employees and beneficiaries.
Benefits are based on years of credited service, equal to one year of full time employment. Members
with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All
members are eligible for non-duty disability benefits after 10 years of service. The death benefits is
Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as
specified by the Public Employees’ Retirement Law. The 2.7% at 55 Miscellaneous Plan is closed to
new entrants.
The plans’ provisions and benefits in effect at December 31, 2020 are summarized as follows:
Contributions – Section 208149(c) of the California Public Employee’s Retirement Law requires that
the employer contribution rates for all public employers be determined on an annual basis by the
actuary and shall be effective on the July 1 following notice of a change in the rate. Funding
contributions for both Plans are determined annually on an actuarial basis as of June 30 by CalPERS.
The actuarially determined rate is the estimated amount necessary to finance the costs of benefits
earned by employees during the year, with an additional amount to finance any unfunded accrued
liability. The District is required to contribute the difference between the actuarially determined rate
and the contribution rate of employees. Contributions shown below are for the fiscal year of July 1,
2019 through June 30, 2020.
Hire Date
Prior to
January 1, 2013
On or after
January 1, 2013
Benefit Formula 2.7% @ 55 2% @ 62
Benefit Vesting Schedule 5 years service 5 years service
Benefit Payments monthly for life monthly for life
Retirement Age 50 and Up 52 and Up
Monthly Benefits, as a % of eligible compensation 2.0% - 2.7%1.0% to 2.5%
Required Employee Contributions Rates 8%6.75%
Required Employer Contributions Rates 12.514%6.985%
Miscellaneous
Hire Date
Prior to
January 1, 2013
On or after
January 1, 2013
Benefit Formula 2.7% @ 55 2% @ 62
2020 Employer Contributions $1,498,521 $213,336
2019 Employer Contributions $1,248,232 $160,568
MiscellaneousDRAFT
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2020 and 2019
Page 39
NOTE 9 – EMPLOYEE BENEFIT PLANS (Continued)
B. PENSION LIABILITIES,PENSION EXPENSES AND DEFERRED OUTFLOWS/INFLOWS OF
RESOURCES RELATED TO PENSIONS
As of December 31, 2020, the District reported net pension liabilities for its proportionate shares of
the net pension liability as follows:
The District’s net pension liability is measured as a proportionate share of the net pension liability. The
net pension liability is measured as of June 30, 2020, and the total pension liability used to calculate
the net pension liability was determined by an actuarial valuation as of June 30, 2019 rolled forward to
June 30, 2020 using standard update procedures. The District’s proportion of the net pension liability
was based on a projection of the District’s long-term share of contributions to the pension plans relative
to the projected contributions of all participating employers, actuarially determined. The District’s
proportionate share of the net pension liability for the Plan for the measurement date of June 30, 2020
and June 30, 2019 is as follows:
At December 31, 2020 and 2019 the District reported deferred outflows of resources and deferred
inflows of resources related to pensions from the following sources:
June 30, 2020 June 30, 2019
$14,023,172 $12,872,646
Proportionate Share of Net Pension Liability
Fiscal Year Ending
June 30, 2020 June 30, 2019 Change
0.33245%0.32145%0.01100%
Percentage Share of Risk Pool
Percentage of Plan NPL
Measurement Date
Deferred Outflows of
Resources
Deferred Inflows of
Resources
Changes of assumptions -$100,019$
Differences between expected and actual experience 722,656 -
Differences between projected and actual investment earnings 416,581 -
Differences between employer's contributions and
proportionate share of contributions
Change in employer's proportion 470,436 -
Pension contributions made subsequent to the measurement 1,304,573 -
date
Total 2,914,246$537,295$
437,276
2020
-DRAFT
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2020 and 2019
Page 40
NOTE 9 – EMPLOYEE BENEFIT PLANS (Continued)
B. PENSION LIABILITIES,PENSION EXPENSES AND DEFERRED OUTFLOWS/INFLOWS OF
RESOURCES RELATED TO PENSIONS (Continued)
$1,304,573 is reported as deferred outflows of resources related to contributions subsequent to the
measurement date will be recognized as a reduction of the net pension liability in the year ended December
31, 2021. Other amounts reported as deferred outflows of resources and deferred inflows of resources
related to pensions will be recognized as pension expense as follows:
Deferred Outflows of
Resources
Deferred Inflows of
Resources
Changes of assumptions 396,231$-$
Differences between expected and actual experience 824,788 -
Differences between projected and actual investment earnings -225,054
Differences between employer's contributions and
proportionate share of contributions
Change in employer's proportion 348,223 -
Pension contributions made subsequent to the measurement
date
Total 2,350,006$544,868$
319,814
2019
-
780,764 -
Year Ended
December 31 Amount
2021 $162,936
2022 400,786
2023 308,852
2024 199,804
$1,072,378DRAFT
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2020 and 2019
Page 41
NOTE 9 – EMPLOYEE BENEFIT PLANS (Continued)
B. PENSION LIABILITIES,PENSION EXPENSES AND DEFERRED OUTFLOWS/INFLOWS OF
RESOURCES RELATED TO PENSIONS (Continued)
Actuarial Assumptions – The total pension liabilities in the June 30, 2019 actuarial valuations were
determined using the following actuarial assumptions:
(1) The mortality table used was developed based on CalPERS’ specific data. The Table includes 15 years of
mortality improvements using 90 percent of Scale MP 2016 published by the Society of Actuaries. For more
details on this table, please refer to the 2017 experience study report.
All underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2019
valuation were based on results of a December 2017 CalPERS Experience Study and Review of
Actuarial Assumptions. Further details of the Experience Study can be found on the CalPERS website.
Discount Rate -The discount rate used to measure the total pension liability as of June 30, 2020 was
7.15%. To determine whether the municipal bond rate should be used in the calculation of a discount
rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that
would be different from the actuarially assumed discount rate. Based on the testing, none of the tested
plans run out of assets. Therefore, the current 7.15% discount rate used is adequate and the use of
the municipal bond rate calculation is not necessary. The long term expected discount rate of 7.15%
will be applied to all plans in the Public Employees Retirement Fund (PERF). The stress test results
are presented in a detailed report that can be obtained from the CalPERS website.
The long-term expected rate of return on pension plan investments was determined using a building-
block method in which best-estimate ranges of expected future real rate of return (expected returns,
net of pension plan investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both short-term and
long-term market return expectations as well as the expected pension fund cash flows. Using historical
returns of all the funds’ asset classes, expected compound returns were calculated over the short-term
Miscellaneous
2020
Valuation Date June 30, 2019
Measurement Date June 30, 2020
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:
Discount Rate 7.15%
Inflation 2.50%
Salary Increase Varies by Entry Age and Service
Investment Rate of Return 7.15% Net of Pension Plan Investment and Administrative
Expenses; includes Inflation
Mortality (1)Derived using CalPERS membership data for all funds
DRAFT
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2020 and 2019
Page 42
NOTE 9 – EMPLOYEE BENEFIT PLANS (Continued)
B. PENSION LIABILITIES,PENSION EXPENSES AND DEFERRED OUTFLOWS/INFLOWS OF
RESOURCES RELATED TO PENSIONS (Continued)
(first 10 years) and the long term (11 + years) using a building-block approach. Using the expected
nominal returns for both short-term and long-term, the present value of benefits was calculated for each
fund. The expected rate of return was set by calculating the single equivalent expected return that
arrived at the same present value of benefits for cash flows as the one calculated using both short-term
and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate
calculated above and rounded down to the nearest one quarter of one percent.
The table below reflects the long-term expected real rate of return by asset class. The rate of return
was calculated using the capital market assumptions applied to determine the discount rate and asset
allocation. The target allocation shown below was adopted by CalPERS’ Board effective on
July 1, 2018.
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount
Rate -The following presents the District’s proportionate share of the net pension liability for each Plan,
calculated using the discount rate for each Plan, as well as what the District’s proportionate share of
the net pension liability would be if it were calculated using a discount rate that is 1% point lower or 1%
point higher than the current rate:
Pension Plan Fiduciary Net Position –Detailed information about each pension plan’s fiduciary net
position is available in the separately issued CalPERS financial reports.
Asset Class
New Strategic
Allocation
Global Equity 50.0%
Private Equity 8.0%
Fixed Income 28.0%
Real Assets 13.0%
Liquidity 1.0%
Total 100.0%
Measurement Date June 30,2020
1% Decrease 6.15%
Net Pension Liability $21,690,021
Current Discount Rate 7.15%
Net Pension Liability $14,023,172
1% Increase 8.15%
Net Pension Liability $7,688,295
MiscellaneousDRAFT
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2020 and 2019
Page 43
NOTE 9 – EMPLOYEE BENEFIT PLANS (Continued)
C. PAYABLE TO THE PENSION PLAN
At December 31, 2020 and 2019 respectively the District did not report a payable for outstanding required
contributions to the pension plan
D.DEFERRED COMPENSATION PLAN
The District maintains two deferred compensation plans: a 401(a) and a 457 plan, (the Plans) for certain
qualified employees. The District matches 6.78% of eligible employee contributions. In 2020 the total match
was $195,156 compared to $162,913 in 2019. The District has no liability for losses under the Plans, but
does have the duty of due care that would be required of an ordinary prudent investor. The District has not
reflected the Plans’ assets and corresponding liabilities (if any) on the accompanying Statement of Net
Position.
E. OTHER POST EMPLOYMENT BENEFITS (OPEB)
General Information -As discussed in Note 1, beginning with the year ended December 31, 2018, the
District adopted the provisions of GASB Statement No. 75,Accounting and Financial Reporting for
Postemployment Benefits Other Than Pensions. The District’s retiree Benefits Plan (the Plan) recognizes
benefit payments when due and payable in accordance with the benefit terms. The Plan’s fiduciary net
position has been determined on the same basis as is reported by the Plan in calculating the fiduciary net
position (Net OPEB Liability), deferred outflows of resources and deferred inflows of resource and
associated OPEB expense.
The District administers a single-employer defined-benefit post-employment healthcare plan. Dependents
are eligible to enroll.
Benefits Provided – Retirees are eligible for a District contribution towards premiums for the retiree health
plans(s) if they have 10+ years of District service. The maximum District contribution is based on years of
service. The Retiree is eligible for 50% of the following maximums, with a minimum of 10 years of service,
plus 5% for each year of service over 10 years: $475 per person enrolled in the plan, if not eligible for
Medicare, and $375 per person enrolled, if eligible for Medicare.
Employees Covered – At December 31, 2019 (the valuation date), the benefit terms covered the following
employees:
Contributions – The District pays benefits as they come due and contributes additionally to the Trust
annually. The District’s annual contribution to the Trust as of December 31, 2020 and 2019 was $110,006
and $100,000, respectively.
Category Count
Active Employees 64
Inactive Empoloyes, spouses, or beneficiaries currently
receiving payments(s)65
Inactive employees entitled to but not yet receiving
benefit payment(s)-
Total 129DRAFT
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2020 and 2019
Page 44
NOTE 9 – EMPLOYEE BENEFIT PLANS (Continued)
E. OTHER POST EMPLOYMENT BENEFITS (OPEB)(Continued)
Net OPEB Liability – The District’s net OPEB liability was measured as of December 31, 2019, and the
total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of
December 31, 2019.
Actuarial Assumptions
The total OPEB Liability in the December 31, 2019 measurement was determined using the following
actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:
Inflation: 2.50%
Salary Increases: Base salary increases in year one: 2.750%. Additional merit-based increases
based on CalPERS.
Investment Rate of Return: 7.33%
Healthcare cost trend rates: 7.00% in the first year, trending down to 4.04% over 55 years
Mortality Rates: Based on CalPERS tables
The discount rate used to measure the total OPEB liability was 7.33%. The projection of cash flows
used to determine the discount rate assumed that the District contribution will be made at rates equal
to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan’s fiduciary
net position was projected to cover all future OPEB payments. Therefore, the discount rate was set
equal to the long-term expected rate of return.DRAFT
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2020 and 2019
Page 45
NOTE 9 – EMPLOYEE BENEFIT PLANS (Continued)
E. OTHER POST EMPLOYMENT BENEFITS (OPEB)(Continued)
Changes in the Net OPEB Liability – The changes in the net OPEB liability for the Plan are as follows:
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability
(a)(b)(c) = (a) -(b)
Balance as of Report Date December 31, 2019 6,473,886$2,145,534$4,328,352$
Changes for the year:
Service Cost 168,811 -168,811
Interest 476,373 -476,373
Differences between Expected and
Actual Experience 1,814,336 -1,814,336
Changes of Assumptions 306,886 306,886
Contributions -
Employer - District's Contribution -376,674 (376,674)
Employer - Implicit Subsidy -270,562 (270,562)
Net Investment Income -473,144 (473,144)
Benefit Payments (276,678)(276,678)-
Implicity Rate Subsidy Credit (270,562)(270,562)-
Administrative Expenses -(1,209)1,209
Net Changes 2,219,166 571,931 1,647,235
Balance as of Report Date December 31, 2020 8,693,052$2,717,465$5,975,587$
Increases (Decreases)DRAFT
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2020 and 2019
Page 46
NOTE 9 – EMPLOYEE BENEFIT PLANS (Continued)
E. OTHER POST EMPLOYMENT BENEFITS (OPEB)(Continued)
Sensitivity of the net OPEB liability to changes in the discount rate -The net OPEB liability of the
District, as well as what the District’s net OPEB liability would be if it were calculated using a discount rate
that is one percentage point lower (6.33%) or one percentage point higher (8.33%) is as follows:
Sensitivity of the net OPEB liability to changes in the healthcare cost trend rates -The net OPEB
liability of the District, as well as what the District’s net OPEB liability would be if it were calculated using
healthcare cost trend rates that are one percentage point lower (6.00%) or one percentage point higher
(8.00%) than current healthcare cost trend rates is as follows:
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability
(a)(b)(c) = (a) -(b)
Balance as of Report Date December 31, 2018 6,615,140$2,206,411$4,408,729$
Changes for the year:
Service Cost 178,856 -178,856
Interest 457,563 -457,563
Differences between Expected and (29,828)-(29,828)
Actual Experience ---
Changes of Assumptions (233,084)(233,084)
Contributions ---
Employer - District's Contribution -294,698 (294,698)
Employer - Implicit Subsidy -270,061 (270,061)
Net Investment Income -(110,318)110,318
Benefit Payments (244,700)(244,700)
Implicity Rate Subsidy Credit (270,061)(270,061)-
Administrative Expenses -(557)557
Net Changes (141,254)(60,877)(80,377)
Balance as of Report Date December 31, 2019 6,473,886$2,145,534$4,328,352$
Increases (Decreases)
1% Decrease Current Rate 1% Increase
6.33%7.33%8.33%
Net OPEB Liability 6,700,987$5,975,587$5,341,808$
1% Decrease Current Rate 1% Increase
6.00%7.00%8.00%
Decreasing to Decreasing to Decreasing to
3.04%4.04%5.04%
Net OPEB Liability $5,560,334 $5,975,587 $6,448,417DRAFT
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2020 and 2019
Page 47
NOTE 9 – EMPLOYEE BENEFIT PLANS (Continued)
E. OTHER POST EMPLOYMENT BENEFITS (OPEB)(Continued)
OPEB Plan Fiduciary Net Position – CERBT issues a publicly available financial report for the overall
OPEB plan’s fiduciary net position which may be obtained from CalPERS at PO Box 942709,
Sacramento, Ca. 94229-2709.
OPEB Expense and Deferred Inflows and Outflows of Resources Related to OPEB – For the year
ended December 31, 2020, the District recognized an OPEB expense of $390,679. At December 31,
2020 and 2019, the District reported deferred outflows of resources and deferred inflows of resources
related to OPEB from the follow sources:
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Differences between expected and actual experience 1,622,453$21,304$
Changes of assumptions 261,082 232,745
Net Difference between Projected and Actual
Earnings on OPEB Plan Investments
District contributions made subsequent to the
measurement date 938,683 -
Total 2,822,218$331,575$
2020
-77,526
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Differences between expected and actual experience 0$25,566$
Changes of assumptions -279,294
Net Difference between Projected and Actual --
Earnings on OPEB Plan Investments
District contributions made subsequent to the
measurement date 388,162 -
Total 600,263$304,860$
212,101 -
2019DRAFT
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2020 and 2019
Page 48
NOTE 9 – EMPLOYEE BENEFIT PLANS (Continued)
E.OTHER POST EMPLOYMENT BENEFITS (OPEB)(Continued)
The $938,683 reported as deferred outflows of resources related to contributions subsequent to the
December 31, 2019 measurement date will be recognized as a reduction of the net OPEB liability during
the fiscal year ending December 31, 2021. Other amounts reported as deferred outflows of resources
and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:
NOTE 10 – SELF FUNDED INSURANCE
The District has a self-funded vision insurance program and claims were processed by and on behalf of the
District. The District did not maintain a claim liability; rather claims were expensed as paid. The amount of
claims paid for each of the past three years have not been material.
Year Ended
December 31 Amount
2021 $272,331
2022 $272,335
2023 $276,098
2024 $220,250
2025 $279,641
remaining $231,305
$1,551,960
DRAFT
THIS PAGE IS INTENTIONALLY LEFT BLANK
DRAFT
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2020 and 2019
Page 50
NOTE 11 – SEGMENT DISCLOSURE
The District has issued revenue bonds to finance electric and water distribution facilities. The District also
issued special tax bonds secured by tax revenues from Mello-Roos Community Facilities Districts. Each
project has an external requirement to be reported separately, and investors in the revenue bonds and
special tax bonds rely solely on the revenue generated by the individual projects for repayment. Summary
financial information for each project is presented on the following pages for the years ending December
31, 2020 and 2019.
STATEMENT OF NET POSITION
Gray's Old
ASSETS AND DEFERRED OUTFLOWS OF RESOURCES Electric Water Crossing Greenwood Eliminations Grand Total
Current assets 31,018,878$12,283,958$9,270,967$1,119,867$(53,323)$53,640,347$
Non-current assets:
Capital assets, net 59,492,672 72,538,847 ---132,031,519
Restricted assets -2,458,014 ---2,458,014
Other long term assets 186,693 ----186,693
Total Noncurrent Assets 59,679,365 74,996,861 ---134,676,226
Deferred outflows of resources
Pension 1,748,548 1,165,698 ---2,914,246
OPEB 1,693,331 1,128,887 ---2,822,218
Unamortized loss on refunding -478,372 ---478,372
Unamortized redemption premium 40,891 ----40,891
Total Deferred Outflows of Resources 3,482,770 2,772,957 ---6,255,727
TOTAL ASSETS AND DEFERRED OUTFLOWS 94,181,013$90,053,776$9,270,967$1,119,867$(53,323)$194,572,300$
OF RESOURCES
LIABILITIES, DEFERRED INFLOWS OF RESOURCES
AND NET POSITION
Current liabilities 4,995,944$2,793,029$1,471,533$614,955$(53,323)$9,822,138$
Non-current Liabilities
Long-term debt, net of current portion 551,751 14,450,752 27,458,717 7,940,300 -50,401,520
Net pension liability 8,413,903 5,609,269 ---14,023,172
OPEB liability 3,585,352 2,390,235 ---5,975,587
Unearned revenues 3,996,087 1,151,117 1,302,713 395,190 -6,845,107
Total Noncurrent Liabilities 16,547,093 23,601,373 28,761,430 8,335,490 -77,245,386
Total Liabilities 21,543,037 26,394,402 30,232,963 8,950,445 (53,323)87,067,524
Deferred inflows of resources
Pension 322,377 214,918 ---537,295
OPEB 198,945 132,630 ---331,575
Total Deferred Inflows of Resources 521,322 347,548 ---868,870
Net Position
Net investment in capital assets 57,914,672 56,437,825 (28,408,717)(8,385,100)-77,558,680
Restricted for debt service 2,354,515 6,273,747 2,811,651 --11,439,913
Unrestricted 11,847,467 600,254 4,635,070 554,522 -17,637,313
Total Net Position 72,116,654 63,311,826 (20,961,996)(7,830,578)-106,635,906
TOTAL LIABILITIES, DEFERRED INFLOWS 94,181,013$90,053,776$9,270,967$1,119,867$(53,323)$194,572,300$
OF RESOURCES AND NET POSITION
December 31, 2020
DRAFT
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2020 and 2019
Page 51
NOTE 11 – SEGMENT DISCLOSURE (Continued)
Gray's Old
ASSETS AND DEFERRED OUTFLOWS OF RESOURCES Electric Water Crossing Greenwood Eliminations Grand Total
Current assets 27,392,285$10,812,929$9,297,427$1,046,154$(3,822)$48,544,973$
Non-current assets:
Capital assets, net 58,755,925 75,056,327 ---133,812,252
Restricted assets -1,730,450 ---1,730,450
Other long-term assets 248,925 1,562,702 ---1,811,627
Total Noncurrent Assets 59,004,850 78,349,479 ---137,354,329
Deferred outflows of resources
Pension 1,410,003 940,003 ---2,350,006
OPEB 360,158 240,105 ---600,263
Unamortized loss on refunding 511,174 ---511,174
Unamortized redemption premium 68,152 ----68,152
1,838,313 1,691,282 ---3,529,595
TOTAL ASSETS AND DEFERRED OUTFLOWS 88,235,448$90,853,690$9,297,427$1,046,154$(3,822)$189,428,897$
OF RESOURCES
LIABILITIES, DEFERRED INFLOWS OF RESOURCES
AND NET POSITION
Current liabilities 5,083,892$2,838,642$1,402,690$531,024$(3,822)$9,852,426$
Non-current Liabilities
Long-term debt, net of current portion 1,602,942 16,606,411 28,403,512 8,385,100 -54,997,965
Net pension liability 7,723,588 5,149,058 ---12,872,646
OPEB liability 2,597,011 1,731,341 ---4,328,352
Unearned revenues 3,431,825 1,143,462 1,289,656 387,762 -6,252,705
Total Noncurrent Liabilities 15,355,366 24,630,272 29,693,168 8,772,862 -78,451,668
Total Liabilities 20,439,258 27,468,914 31,095,858 9,303,886 (3,822)88,304,094
Deferred inflows of resources
Pension 326,921 217,947 ---544,868
OPEB 182,916 121,944 ---304,860
Total Deferred Inflows of Resources 509,837 339,891 ---849,728
Net Position
Net investment in capital assets 56,177,122 56,721,963 (29,263,512)(8,793,600)-74,841,973
Restricted for debt service 2,455,343 5,803,021 2,794,303 --11,052,667
Unrestricted 8,653,888 519,901 4,670,778 535,868 -14,380,435
Total Net Position 67,286,353 63,044,885 (21,798,431)(8,257,732)-100,275,075
TOTAL LIABILITIES, DEFERRED INFLOWS 88,235,448$90,853,690$9,297,427$1,046,154$(3,822)$189,428,897$
OF RESOURCES AND NET POSITION
December 31, 2019
DRAFT
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2020 and 2019
Page 52
NOTE 11 – SEGMENT DISCLOSURE (Continued)
STATEMENTS OF REVENUE,EXPENSES,AND CHANGES IN NET POSITION
Gray’s Old
Electric Water Crossing Greenwood Eliminations Grand Total
Operating Revenues
Sales to consumers 25,451,966$13,536,058$-$-$-$38,988,024$
Other operating revenues 4,019,447 470,799 --(1,736,243)2,754,003
Operating expenses (23,009,999)(9,598,557)--1,736,243 (30,872,313)
Depreciation (3,012,752)(4,962,116)---(7,974,868)
Non-operating revenues (expenses)312,226 (153,625)836,435 427,154 -1,422,190
Income (loss) before
capital & other contributions 3,760,888 (707,441)836,435 427,154 -4,317,036
Capital contributions, net 1,069,413 974,382 ---2,043,795
CHANGE IN NET POSITION 4,830,301 266,941 836,435 427,154 -6,360,831
Net Position, Beginning 67,286,353 63,044,885 (21,798,431)(8,257,732)-100,275,075
NET POSITION, ENDING 72,116,654$63,311,826$(20,961,996)$(7,830,578)$-$106,635,906$
Gray’s Old
Electric Water Crossing Greenwood Eliminations Grand Total
Operating Revenues
Sales to consumers 24,239,706$12,789,947$-$-$-$37,029,653$
Other operating revenues 3,568,272 417,479 --(1,681,833)2,303,918
Operating expenses (21,093,225)(9,552,319)--1,681,833 (28,963,711)
Depreciation (2,893,711)(4,526,540)---(7,420,251)
Non-operating revenues (expenses)572,803 (266,838)1,071,715 350,808 -1,728,488
Income (loss) before
capital & other contributions 4,393,845 (1,138,271)1,071,715 350,808 -4,678,097
Capital contributions, net 2,472,463 2,210,636 ---4,683,099
CHANGE IN NET POSITION 6,866,308 1,072,365 1,071,715 350,808 -9,361,196
Net Position, Beginning 60,420,045 61,972,520 (22,870,146)(8,608,540)-90,913,879
NET POSITION, ENDING 67,286,353$63,044,885$(21,798,431)$(8,257,732)$-$100,275,075$
Year ended December 31, 2020
Year ended December 31, 2019
DRAFT
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2020 and 2019
Page 53
NOTE 11 – SEGMENT DISCLOSURE (Continued)
STATEMENTS OF CASH FLOWS
Gray’s Old
Electric Water Crossing Greenwood Eliminations Grand Total
NET CASH PROVIDED BY (USED IN)
Operating activities 6,300,565$4,120,639$(3,821)$53,322$-$10,470,705$
Noncapital financing activities (1,057,897)----(1,057,897)
Capital and related financing activities (2,694,747)(3,080,659)(131,911)3,679 -(5,903,638)
Investing activities 312,748 212,708 33,708 6,684 -565,848
2,860,669 1,252,688 (102,024)63,685 -4,075,018
Cash and Cash Equivalents, Beginning 23,175,596 8,712,363 2,772,301 248,210 -34,908,470
CASH AND CASH
EQUIVALENTS, ENDING 26,036,265$9,965,051$2,670,277$311,895$-$38,983,488$
Gray’s Old
Electric Water Crossing Greenwood Eliminations Grand Total
NET CASH PROVIDED BY (USED IN)
Operating activities 8,270,006$4,073,587$3,822$-$-$12,347,415$
Noncapital financing activities (1,000,177)----(1,000,177)
Capital and related financing activities (6,146,527)(3,088,182)(281,398)(55,551)-(9,571,658)
Investing activities 499,432 343,857 72,287 10,795 -926,371
1,622,734 1,329,262 (205,289)(44,756)-2,701,951
Cash and Cash Equivalents, Beginning 21,552,862 7,383,101 2,977,590 292,966 -32,206,519
CASH AND CASH
EQUIVALENTS, ENDING 23,175,596$8,712,363$2,772,301$248,210$-$34,908,470$
Net increase (decrease) in cash and
cash equivalents
Year ended December 31, 2020
Net increase (decrease) in cash and
cash equivalents
Year ended December 31, 2019
DRAFT
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2020 and 2019
Page 54
NOTE 12 – MARTIS VALLEY GROUNDWATER MANAGEMENT EFFORTS
The Martis Valley aquifer underlies about 35,000 acres in both Placer and Nevada counties, near the Town
of Truckee. It is the main groundwater supply for numerous public and private entities. This area has seen
significant growth in the last few decades with more planned for the future. Maintaining an adequate water
supply and protecting water quality are critical for the region's future.
The Truckee Donner Public Utility District (TDPUD), Northstar Community Services District (NCSD) and
Placer County Water Agency (PCWA) are the three primary public water agencies with jurisdiction in the
Martis Valley Groundwater Basin (MVGB). Together, the TDPUD, NCSD and PCWA (Partnership
Agencies) partnered to submit a Groundwater Management Plan and to help develop a groundwater model
for the Martis Valley basin.
The Martis Valley Groundwater Management Plan (GMP) was prepared in 2013 to reflect current water
resources planning in the region and to incorporate the latest information and understanding of the
underlying groundwater basin. This collaborative effort provided the guidance necessary to align
groundwater policy. In addition to the GMP, a computer model of the groundwater basin was developed
by the Desert Research Institute, which incorporated available data and enhanced understanding of the
groundwater basin. A climate change modeling component out to the end of the century was part of the
overall Federal study effort.
Partner agencies each adopted the GMP in February 2012 and the model and associated report was
completed in 2015. The total cost of the project was approximately $1,000,000, which includes federal
funding of approximately $500,000 from the U.S. Bureau of Reclamation and $250,000 from the Lawrence
Livermore National Laboratory; and contributions of $150,000 from TDPUD and $100,000 from the other
members of the Partnership Agencies.
In mid-2016, the California Sustainable Groundwater Management Act of 2014 (SGMA) took effect for
which the District was the submitting agency of a SGMA Alternate Submittal in December, 2016 on behalf
of the Town of Truckee, Placer County, Nevada County, PCWA, and Northstar CSD (Local SGMA
Agencies). The SGMA Alternative Submittal was intended to comply with the new regulations. There was
an adopted MOA amongst the six local agencies for this compliance project which covers the time period
for preparation of the SGMA Alternative Submittal, possible conditional acceptance of the plan by DWR,
and submittal of a first-year annual report. DWR had two years by statute to review the SGMA Alternative
Submittal.
In 2018, DWR was required to undergo groundwater basin prioritization which is the basis for compliance
obligation for SGMA. The MVGB had previously been prioritized as medium priority. DWR’s final
Determination was to re-prioritize MVGB to low priority. This was a significant act that resulted in a direct
reduction in regulatory burden and future regulatory costs that would be required for groundwater
management. To ensure continued stewardship and management of the MVGB, the District and its local
partners have agreed to return to the 2013 GMP framework which was never fully implemented due to
SGMA. There was a kick-off meeting for the GMP in 2019 and the three local water agencies have hired a
hydrogeologic consultant to prepare the first annual report as required by the GMP. The consultant’s report
was presented to the GMP Stakeholder Working Group at the annual meeting in the summer of 2020.
NOTE 13 – 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.DRAFT
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2020 and 2019
Page 55
NOTE 14 – 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.
On March 11, 2020, the World Health Cooperative assessed the novel coronavirus (COVID-19) outbreak
and characterized it as a pandemic. Subsequent to the declaration of a pandemic, a variety of federal,
state and local governments have taken actions in response to the pandemic, which have ranged by
jurisdiction, and the pandemic resulted in a variety of negative economic consequences. To date, the
pandemic’s resulting impact to the District has not been material. Future potential negative financial
impacts to the District related to the pandemic cannot be accurately estimated, however, based on
current trends the impact is not forecasted to be material.DRAFT
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REQUIRED SUPPLEMENTARY INFORMATION
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REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2020 and 2019
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COST SHARING DEFINED BENEFIT PENSION PLANS
2020 2019 2018 2017 2016 2015 2014
Portion of Net Pension Liability 0.33245%0.32145%0.31157%0.30379%0.29837%0.29209%0.09982%
Proportionate Share of The Net Pension Liability $14,023,172 $12,872,646 $11,742,137 $11,975,655 $10,250,329 $8,013,400 $6,210,985
Covered - Employee Payroll $7,619,022 $7,602,120 $7,375,933 $7,108,563 $6,670,248 $6,162,431 $6,278,545
Proporationate Share of the Net Pension Liability as
Percentage of Covered Payroll 184.05%169.33%159.20%168.47%153.67%130.04%98.92%
Plan's Fidicuiary Net Position $43,589,560 $40,367,745 $29,308,590 $27,244,095 $30,950,578 $30,725,516 $30,386,101
Plan Fiduciary Net Position as a percentage of the
Total Pension Liability 75.66%75.82%75.26%73.31%75.12%79.31%89.17%
* Fiscal year 2014 was the 1st year of implementation, therefore only seven years are shown
Schedule of the District's Proportionate Share of the Net Pension Liability
Cost Sharing Defined Benefit Plans
As of June 30
Last Ten Years*DRAFT
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2020 and 2019
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COST SHARING DEFINED BENEFIT PENSION PLANS - CONTINUED
2020 2019 2018 2017 2016 2015 2014
Contractually Required Contribution (Actuarially
Determined)$1,711,857 $1,408,800 $1,246,476 $1,138,758 $1,011,908 $950,147 $943,118
Contributions in Relation to the Actuarially
Determined Contributions
$1,711,857 $1,408,800 $1,246,476 $1,138,758 $1,048,897 $949,634 $943,118
Contribution deficiency (excess)$0 ($0)$0 $0 ($36,989)$513 $0
Covered - Employee Payroll $7,619,022 $7,602,120 $7,375,933 $7,108,563 $6,670,248 $6,162,431 $6,278,545
Contributions as a percentage of covered-employee
payroll 22%19%17%16%16%15%15%
* Fiscal year 2014 was the 1st year of implementation, therefore only seven years are shown
Cost Sharing Defined Benefit Plans
December 31
Last Ten Years*
Schedule of Contributions
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REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2020 and 2019
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Measurement Date:December 31, 2019 December 31, 2018 December 31, 2017
Report Date:December 31, 2020 December 31, 2019 December 31, 2018
Total OPEB Liability
Service Cost $168,811 $178,856 $170,473
Interest 476,373 457,563 448,374
Changes in Benefit Terms 0 0 0
Differences Between Expected and Actual Experience 1,814,336 (29,828)0
Changes of Assumptions 306,886 (233,084)0
Benefit Payments (276,678)(244,700)(214,280)
Implicit Rate Subsidy Credit (270,562)(270,061)(254,930)
Net Change in Total OPEB Liability $2,219,166 ($141,254)$149,637
Total OPEB Liability - Beginning of Year 6,473,886 6,615,140 6,465,503
Total OPEB Liability - End of Year (a)$8,693,052 $6,473,886 $6,615,140
Plan Fiduciary Net Position
Net Investment Income $473,144 ($110,318)$167,459
Contributions
Employer - District's Contribution 376,674 294,698 256,280
Employer - Implicity Subsidy 270,562 270,061 254,930
Benefit Payments, Including Refunds of Employee Contributions (276,678)(244,700)(214,280)
Implicit Rate Subsidy Fulfilled (270,562)(270,061)(254,930)
Administrative Expense (1,209)(557)(519)
Net Change in Plan Fiduciary Net Position 571,931 (60,877)208,940
Plan Fiduciary Net Position - Beginning of Year 2,145,534 2,206,411 1,997,471
Plan Fiduciary Net Position - End of Year (b)2,717,465 2,145,534 2,206,411
District's Net OPEB liability - End of Year = (a) -(b)$5,975,587 $4,328,352 $4,408,729
Plan Fiduciary Net Position as a Percentage of the Total OPEB Liability 31.3%33.1%33.4%
Covered Employee Payroll $7,604,103 $7,400,587 $7,202,518
District's Net OPEB Liability as a Percentage of Covered-Employee Payroll 78.58%58.49%61.21%
Notes to Schedule:The District adopted GASB 75 for the fiscal Year Ending December 31,2018
Schedule of Changes in The District's Net OPEB Liability and Related Ratios
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REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2020 and 2019
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Measurement Date:December 31, 2019 December 31, 2018 December 31, 2017
Report Date:December 31, 2020 December 31, 2019 December 31, 2018
Annual Money-Weighted Rate of Return, Net of Investment Expense 21.56%-4.94%8.30%
Notes to Schedule:The District adopted GASB 75 for the fiscal Year Ending December 31, 2018
Other Post Employment Benefits - Schedule of Investment Returns
The annual money-weighted rate of return, net of investment expenses, is the net investment income for the year divided by the average net positon for the year (less
investment expenses).
Measurement Date:December 31, 2019 December 31, 2018 December 31, 2017
Report Date:December 31,2020 December 31,2019 December 31,2018
Actuarially Determined Contribution $532,225 $614,761 $569,210
Less: Actual Contributions 647,236 564,759 511,210
Contribution Deficiency (Excess)($115,011)$50,002 $58,000
Covered - Employee Payroll $7,604,103 $7,400,587 $7,202,518
Contributions as a Percentage of Covered-Employee Payroll 8.51%7.63%7.10%
Notes to Schedule:The District adopted GASB 75 for the fiscal Year Ending December 31,2018
Other Post Employment Benefits - Schedule of Contributions
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REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2020 and 2019
.
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Actuarial methods and assumptions used to set the actuarially determined contributions for fiscal year 2020 were from the December 21, 2019 valuation.
Methods and assumptions used to determine contributions:
Assumptions and Methods
Actuarial Cost Method Entry age normal, level percent of pay
Amortization Method Closed period, level percent of pay
Amortization Period 20 years
Inflation 2.50%
Assumed Payroll Growth Year 1 2.750%
Healthcare Trend Rates 7.00%, trending down to 4.04% over 55 years
Rate of Return on Assets 7.33%
Mortality Rate CalPERS Rates utilizing the decrement table Mort and Disb Rates_PA Misc
from the CalPERS OPEB assumption model revised May 14, 2018.
Retirement Rates CalPERS Rates based on CalPERS assumption model revised
May 14, 2018 for the periods 1997 through 2017.
Other Post Employment Benefits - Actuarial Assumptions
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SUPPLEMENTARY INFORMATION
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TRUCKEE DONNER PUBLIC UTILITY DISTRICT
SUPPLEMENTARY INFORMATION
December 31, 2020
Page 64
CONSOLIDATING STATEMENT OF NET POSITION – PAGE 1 OF 2
As of December 31, 2020
Electric Operations Water Operations Gray's Crossing Old Greenwood Eliminations Totals
ASSETS AND DEFERRED OUTFLOWS OF RESOURCES
CURRENT ASSETS
Funds
Operating 11,441,611$3,105,078$130,547$311,895$-$14,989,131$
Designated 12,335,503 2,162,604 ---14,498,107
Restricted 2,355,089 4,764,951 2,539,730 --9,659,770
Total Funds 26,132,203 10,032,633 2,670,277 311,895 -39,147,008
Accounts receivable, net 1,497,143 771,965 6,595,971 803,881 (53,323)9,615,637
Unbilled revenues 2,230,001 881,639 ---3,111,640
Accrued interest receivable 18,715 33,095 4,719 4,091 -60,620
Materials and supplies 713,566 192,981 ---906,547
Prepaid expenses 365,912 305,912 ---671,824
Other 61,338 65,733 ---127,071
Total Current Assets 31,018,878 12,283,958 9,270,967 1,119,867 (53,323)53,640,347
NON-CURRENT ASSETS
Other Non-Current Assets
Restricted funds -1,674,293 ---1,674,293
Special assessments receivable -783,721 ---783,721
Other 186,693 ----186,693
Total Other Non-Current Assets 186,693 2,458,014 ---2,644,707
CAPITAL ASSETS
Utility plant 86,608,800 126,085,305 ---212,694,105
Accumulated depreciation (30,582,586)(54,664,711)---(85,247,297)
Construction w ork in progress 3,466,458 1,118,253 ---4,584,711
Total capital assets 59,492,672 72,538,847 ---132,031,519
DEFERRED OUTFLOWS OF RESOURCES
Pension 1,748,548 1,165,698 ---2,914,246
OPEB 1,693,331 1,128,887 2,822,218
Unamortized loss on refunding -478,372 ---478,372
Unamortized redemption premium 40,891 ----40,891
Total deferred outflows of resources 3,482,770 2,772,957 ---6,255,727
TOTAL ASSETS AND DEFERRED OUTFLOWS OF RESOURCES 94,181,013$90,053,776$9,270,967$1,119,867$(53,323)$194,572,300$
Component Units
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SUPPLEMENTARY INFORMATION
December 31, 2020
Page 65
CONSOLIDATING STATEMENT OF NET POSITION – PAGE 2 OF 2
As of December 31, 2020
Electric Operations Water Operations Gray's Crossing Old Greenwood Eliminations Totals
NET POSITION AND LIABILITIES
CURRENT LIABILITIES
Other liabilities
Accounts payable 2,793,899$86,942$-$53,323$(53,323)$2,880,841$
Customer deposits 352,705 88,160 ---440,865
Other 797,578 385,522 ---1,183,100
Total other liabilities 3,944,182 560,624 -53,323 (53,323)4,504,806
Current liabilities payable from restricted assets:
Current portion of long-term debt 1,051,191 2,128,642 950,000 444,800 -4,574,633
Accrued interest payable 571 103,763 521,533 116,832 -742,699
Total Current Liabilities Payable from Restricted Assets 1,051,762 2,232,405 1,471,533 561,632 -5,317,332
Total Current Liabilities 4,995,944 2,793,029 1,471,533 614,955 (53,323)9,822,138
NON-CURRENT LIABILITIES
Long-term debt, net of discounts and premiums 526,809 14,450,752 27,458,717 7,940,300 -50,376,578
Net pension liability 8,413,903 5,609,269 ---14,023,172
OPEB liability 3,585,352 2,390,235 ---5,975,587
Installment loans 24,942 ----24,942
Unearned revenues 3,996,087 1,151,117 1,302,713 395,190 -6,845,107
Total non-current liabilities 16,547,093 23,601,373 28,761,430 8,335,490 -77,245,386
Total Liabilities 21,543,037 26,394,402 30,232,963 8,950,445 (53,323)87,067,524
DEFERRED INFLOWS OF RESOURCES
Pension 322,377 214,918 ---537,295
OPEB 198,945 132,630 ---331,575
Total deferred inflow s of resources 521,322 347,548 ---868,870
NET POSITION
Net investment in capital assets 57,914,672 56,437,825 (28,408,717)(8,385,100)-77,558,680
Restricted for debt service 2,354,515 6,273,747 2,811,651 --11,439,913
Unrestricted 11,847,467 600,254 4,635,070 554,522 -17,637,313
Total Net Position 72,116,654 63,311,826 (20,961,996)(7,830,578)-106,635,906
TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND NET POSITION 94,181,013$90,053,776$9,270,967$1,119,867$(53,323)$194,572,300$
Component Units
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SUPPLEMENTARY INFORMATION
December 31, 2020
Page 66
CONSOLIDATING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
For the Year Ended December 31, 2020
Electric Operations Water Operations Gray's Crossing Old Greenwood Eliminations Totals
OPERATING REVENUES
Sales to customers 25,451,966$13,536,058$-$-$-$38,988,024$
Interdepartmental sales 1,226,706 2,693 --(1,229,399)-
Standby fees 18,670 114,800 ---133,470
Cap and trade proceeds 1,444,498 ----1,444,498
Other 1,329,573 353,306 --(506,844)1,176,035
Total Operating Revenues 29,471,413 14,006,857 --(1,736,243)41,742,027
OPERATING EXPENSES
Purchased pow er 11,285,537 ----11,285,537
Operations and maintenance 6,748,580 5,821,270 --(1,229,399)11,340,451
Consumer services 1,340,108 740,606 ---2,080,714
Administration and general 3,635,774 3,036,681 --(506,844)6,165,611
Depreciation 3,012,752 4,962,116 ---7,974,868
Total Operating Expenses 26,022,751 14,560,673 --(1,736,243)38,847,181
Operating Income 3,448,662 (553,816)---2,894,846
NON-OPERATING REVENUE (EXPENSES)
Special tax revenue --2,592,373 782,954 -3,375,327
Investment income 352,203 177,155 36,217 8,093 -573,668
Interest expense (2,247)(574,350)(1,592,138)(361,881)-(2,530,616)
Amortization (27,261)(5,784)(5,205)--(38,250)
Other non-operating revenues --37,353 4,413 -41,766
Other non-operating expenses --(232,165)(6,425)-(238,590)
Gain (loss) on disposition of assets (10,469)249,354 ---238,885
Total Non-Operating Expenses 312,226 (153,625)836,435 427,154 -1,422,190
Income Before Contributions 3,760,888 (707,441)836,435 427,154 -4,317,036
CAPITAL & OTHER CONTRIBUTIONS, net
Capital Contributions 707,553 1,336,242 ---2,043,795
Intercompany Debt Service - Pension Sidefund 361,860 (361,860)----
Total Capital and Other Contributions, net 1,069,413 974,382 ---2,043,795
CHANGE IN NET POSITION 4,830,301 266,941 836,435 427,154 -6,360,831
NET POSITION - Beginning of Year 67,286,353 63,044,885 (21,798,431)(8,257,732)-100,275,075
NET POSITION - END OF YEAR 72,116,654$63,311,826$(20,961,996)$(7,830,578)$-$106,635,906$
Component Units
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CONSOLIDATING STATEMENT OF CASH FLOWS – PAGE 1 OF 2
For the Year Ended December 31, 2020
Electric Operations Water Operations Gray's Crossing Old Greenw ood Eliminations Total
CASH FLOWS FROM OPERATING ACTIVITIES
Received from customers 29,251,280$13,487,280$-$-$(1,736,243)$41,002,317$
Paid to suppliers for goods and services (17,511,627)(6,438,529)(3,821)53,322 1,736,243 (22,164,412)
Paid to employees for services (5,439,088)(2,928,112)---(8,367,200)
Net Cash Flows from Operating Activities 6,300,565 4,120,639 (3,821)53,322 -10,470,705
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Principal payments on long-term debt (1,000,803)----(1,000,803)
Interest payments on long-term debt (57,094)----(57,094)
Net Cash Flows from Noncapital Financing Activities (1,057,897)----(1,057,897)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Capital expenditures for utility plant (3,754,601)(2,553,607)---(6,308,208)
Cost of disposal of property net of salvage (200,817)249,354 ---48,537
Capital contributions, connection and facility fees 1,207,440 1,272,750 ---2,480,190
Special assessments receipts -778,982 ---778,982
Special tax receipts --2,337,562 779,751 -3,117,313
Principal payments on long-term debt -(2,266,145)(860,000)(408,500)-(3,534,645)
Interest payments on long-term debt 53,231 (561,993)(1,609,473)(367,572)-(2,485,807)
Cash Flows From Capital and Related Financing Activities (2,694,747)(3,080,659)(131,911)3,679 -(5,903,638)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest income received 312,748 212,708 33,708 6,684 -565,848
Cash Flows from Investing Activities 312,748 212,708 33,708 6,684 -565,848
Net Change in Cash and Cash Equivalents 2,860,669 1,252,688 (102,024)63,685 -4,075,018
CASH AND CASH EQUIVALENTS – Beginning of Year 23,175,596 8,712,363 2,772,301 248,210 -34,908,470
CASH AND CASH EQUIVALENTS – END OF YEAR 26,036,265$9,965,051$2,670,277$311,895$-$38,983,488$
Component Units
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CONSOLIDATING STATEMENT OF CASH FLOWS – PAGE 2 OF 2
For the Year Ended December 31, 2020
Electric Operations Water Operations Gray's Crossing Old Greenwood Eliminations Total
RECONCILIATION OF OPERATING INCOME TO NET CASH
FLOWS FROM OPERATING ACTIVITIES
Operating income 3,448,662$(553,816)$-$-$-$2,894,846$
Noncash items included in operating income
Depreciation and amortization 3,012,752 4,962,116 ---7,974,868
Depreciation charged to other accounts 259,825 195,469 ---455,294
Intercompany Transfer 361,860 (361,860)--
Accounts receivable (578,090)(147,526)---(725,616)
Materials and supplies (153,003)(17,000)---(170,003)
Prepaid expenses 4,623 (33,208)---(28,585)
Accounts payable (253,906)7,513 (3,821)53,322 -(196,892)
Customer deposits (3,903)(10,191)---(14,094)
Deferred Pension Contributions - GASB 68 18,424 12,285 ---30,709
Other current liabilities 183,321 66,857 ---250,178
NET CASH FLOWS FROM OPERATING ACTIVITIES 6,300,565$4,120,639$(3,821)$53,322$-$10,470,705$
RECONCILIATION OF CASH AND CASH EQUIVALENTS
TO THE BALANCE SHEET
Operating 11,441,611 3,105,078 130,547 311,895 -$14,989,131$
Designated 12,335,503 2,162,604 ---14,498,107
Restricted bond funds - current 2,355,089 4,764,951 2,539,730 --9,659,770
Restricted bond funds - non-current -1,674,293 ---1,674,293
Total Cash and Investments 26,132,203 11,706,926 2,670,277 311,895 -40,821,301
Less: Long-term investments -(1,698,880)---(1,698,880)
Mark to market adjustment (95,938)(42,995)---(138,933)
TOTAL CASH AND CASH EQUIVALENTS 26,036,265$9,965,051$2,670,277$311,895$-$38,983,488$
Component Units
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