HomeMy WebLinkAbout13-2 TDPUD Consolidated FS 2014
TRUCKEE DONNER
PUBLIC UTILITY DISTRICT
CONSOLIDATED FINANCIAL STATEMENTS
Including Independent Auditors’ Report
December 31, 2014 and 2013
TABLE OF CONTENTS
Report of Independent Auditors .................................................................................................................... 1
Management’s Discussion and Analysis ....................................................................................................... 3
Financial Statements ..................................................................................................................................... 9
Consolidated Statem ents of Net Position ............................................................................................... 10
Consolidated Statements of Revenues, Expenses, and Changes in Net Position ................................ 13
Consolidated Statements of Cash Flows ................................................................................................ 14
Notes to Financial Statements .................................................................................................................... 16
Supplemental Information ........................................................................................................................... 47
Consolidating Statement of Net Position ................................................................................................ 48
Consolidating Statement of Revenues, Expenses, and Changes in Net Position ................................. 50
Consolidating Statement of Cash Flows ................................................................................................. 51
Position of Post Employment Benefit Plans ........................................................................................... 53
1
REPORT OF INDEPENDENT AUDITORS
The Board of Directors
Truckee Donner Public Utility District
Report on 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, 2014
and 2013, 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 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 consolidated 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 consolidated 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 obtained is sufficient and appropriate to provide a basis for our audit
opinion.
Opinion
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects,
the financial position of Truckee Donner Public Utility District as of December 31, 2014 and 2013, 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.
2
REPORT OF INDEPENDENT AUDITORS (continued)
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that management’s
discussion and analysis and the schedules of pension plan funding progress – 2% @ 62, pension plan funding
progress – 2.7% @55, and retiree health plan funding history be presented to supplement the basic financial
statements. Such information, although not a part of the basic 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 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 financial statements, and other knowledge we obtained
during our audit of the basic 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.
Other Supplementary Information
Our audits were conducted for the purpose of forming opinions on the financial statements that collectively
comprise the District’s financial statements. The consolidating statements of net position, statements of
revenues, expenses and changes in net position and cash flows as of and for the year ended December 31,
2014 are presented for purposes of additional analysis and are not a required part of the financial statements.
Such information is the responsibility of management and was derived from and relates directly to the
underlying accounting and other records used to prepare the financial statements. The consolidating
statements of net position, statements of revenues, expenses and changes in net position and cash flows have
been subjected to the auditing procedures applied in the audit of the financial statements and certain other
procedures, including comparing and reconciling such information directly to the underlying accounting and
other records used to prepare the financial statements or to the financial statements themselves, and other
additional procedures in accordance with auditing standards generally accepted in the United States of
America. In our opinion, the consolidating statements of net position, statements of revenues, expenses and
changes in net position and cash flows are fairly stated in all material respects in relation to the financial
statements as a whole.
Portland, Oregon
May 26, 2015
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
M ANAGEM ENT’S DISCUSSION AND ANALYSIS
December 31, 2014 and 2013
See accom panying auditors’ report.
Page 3
M ANAGEMENT’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, 2014 and 2013. This discussion and analysis is designed to assist the
reader in focusing on the significant financial issues, provide an overview of the District’s financial activity
and identify changes in the District’s financial position.
W e 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 decreased $1.2 million (3%) from $41.8 million at December 31, 2013 to
$40.6 million at December 31, 2014, predominantly due to decreased cash reserves assoc iated with the
Old Greenwood refunding bond. A reserve requirement was not required as part of the refunding
agreement. The existing reserve was applied towards reducing the principal of the refunding bonds . (See
notes 5 & 7).
The District’s total net position increased $2.3 million (3%) from $82.2 million at Decem ber 31, 2013, to
$84.7 m illion at December 31, 2014. The increase was primarily due to a $2.9 million increase related to
capital assets, less a $0.6 m illion decrease in restricted assets.
The operating revenues decreased $1.1 million (3%) from $33.7 million in 2013 to $32.6 million in 2014.
Electric revenues decreased 3% in 2014 due to mild winter weather. W ater revenues decreased 3% due
to the five year meter surcharge ending in 2013.
Compared to 2013, the overall operating expenses of the District rem ained flat, decreasing $0.2 million
from $31.3 million in 2013 to $31.1 million in 2014. Purchased power decreased due to lower
consumption and transm ission costs, but that decrease was offse t by broadband project expenses. (See
note 4).
Non-operating revenues increased $0.4 million due to investment earnings. Non-operating expenses
increased $0.2 m illion due to issuance cost relating to the Old Greenwood refunding. (See notes 5 & 7).
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 more than $3 million over the term of the bonds. No new debt was
issued in 2013.
OVERVIEW OF THE FINANCIAL STATEMENTS
This report includes Management’s Discussion and Analysis, the Independent Auditors’ Report, the Basic
Financial Statements, (which includes the notes to the financial statements), and Supplementary
Information.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
M ANAGEM ENT’S DISCUSSION AND ANALYSIS
December 31, 2014 and 2013
See accom panying auditors’ report.
Page 4
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
Am erica (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 prim ary government, which has two departments (electric operations
and water operations), and the blended component units. Further details about the component units are
provided in note 1(A).
The Consolidated Statement of Net Position presents information on all of the District’s assets and
liabilities, and provides information about the nature and amounts of investm ents in resources (assets)
and the obligations to District creditors (liabilities). It also provides the basis for com puting rate of re turn,
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 statem ent 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 statem ent reports cash receipts and cash
payments resulting from operating, non-capital financing, capital and related financing and investing
activities. W hen 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 b oth 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 inform ation 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 ris ks,
commitments and obligations and subsequent events, as applicable.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
M ANAGEM ENT’S DISCUSSION AND ANALYSIS
December 31, 2014 and 2013
See accom panying auditors’ report.
Page 5
DISTRICT HIGHLIGHTS
The condensed financial statem ents at Decem ber 31, 2014, 2013, and 2012 are presented below.
Incre a se
(De cre a se )
2014 2013 2012 2014 - 2013
Current assets 40,589,604$ 41,785,389$ 43,965,815$ (1,195,785)$
Non-current assets :
Capital assets, net 119,322,462 119,913,559 119,750,604 (591,097)
Restricted as s ets 1,937,917 1,890,358 2,095,966 47,559
Amortiz ed pens ion obligation 6,177,000 6,716,354 7,190,000 (539,354)
Other long-term assets 6,072,406 6,274,267 6,950,835 (201,861)
TOTAL ASSETS 174,099,389$ 176,579,927$ 179,953,220$ (2,480,538)$
Current liabilities 8,113,551$ 8,684,955$ 11,796,526$ (571,404)$
Non-current Liabilities
Long-term debt, net of current portion 76,875,680 81,453,756 84,662,903 (4,578,076)
Unearned revenues 4,417,221 4,205,275 4,156,039 211,946
Total Liabilities 89,406,452 94,343,986 100,615,468 (4,937,534)
NET POSITI ON
Inves ted in capital assets , net of related debt 45,838,738 42,944,031 40,485,105 2,894,707
Restricted for debt servic e 10,521,661 11,096,122 14,667,929 (574,461)
Unrestric ted 28,332,538 28,195,788 24,184,718 136,750
Total Net Position 84,692,937 82,235,941 79,337,752 2,456,996
TOTAL LIABILITIES
AND NET POSITION 174,099,389$ 176,579,927$ 179,953,220$ (2,480,538)$
CONSOLIDATED STATEMENT OF NET POSITION
ASSETS
LIA BILITIES A ND NET POSITION
In 2014, the District’s current assets decreased $1.2 million, predominantly due to decreased cash
reserves associated with the Old Greenwood refunding (See note 5). A reserve requirem ent was not
required as part of the refunding agreement. The existing reserve was applied towards reducing the
principal of the refunding bonds. Net long-term debt decreased $4.6 million, due to the annual reduction
of existing debt and the reduction of the Old Greenwood bond due to the refunding . (See notes 5 & 7).
No new debt was issued in 2014 or 2013. The District’s total net position increased $2.5 million,
substantially due to increased investment in capital assets for the Donner View Hydro Pump Station
replacement, pipeline replacem ent projects, the reliability enhancement of the District’s computer servers,
and the residential water m eter installation. “Invested in capital assets, net of related debt,” consist of
capital assets, net of accumulated depreciation, reduced by the amount of outstanding indebtedness
attributable to the acquisition, construction or improvement of those as sets. When there are significant
unspent bond proceeds, the portion of related debt is not included in the calculation of this item. Instead,
that portion of the debt is included in the net position restricted for capital projects com ponent as an offset
to the related unspent bond proceeds.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
M ANAGEM ENT’S DISCUSSION AND ANALYSIS
December 31, 2014 and 2013
See accom panying auditors’ report.
Page 6
“Restricted for debt service” represents amounts restricted for paym ents related to outstanding revenue
bonds.
The District had income before capital contributions of $1.5 million, $2.1 million, and $3.3 million for the
years ended December 31, 2014, 2013 and 2012, respectively. Changes in the District’s net position can
be determined by reviewing the following Condensed Revenues, Expenses, and Changes in Net Position
for the years ended December 31, 2014, 2013, and 2012.
Incre a se
(De cre a se )
2014 2013 2012 2014 - 2013
Sales to c onsumers 30,331,953$ 30,810,370$ 30,383,363$ (478,417)$
Other operating revenues 2,296,643 2,852,441 2,377,363 (555,798)
Total Operating Revenues 32,628,596 33,662,811 32,760,726 (1,034,215)
Operating ex penses 31,112,025 31,286,218 28,746,242 (174,193)
Operating Income (Los s)1,516,571 2,376,593 4,014,484 (860,022)
Non-operating revenues (expenses )(53,631) (303,118) (734,781) 249,487
Income (loss) before
c apital contributions 1,462,940 2,073,475 3,279,703 (610,535)
Capital contributions, net 994,056 824,714 391,325 169,342
Cha nge in ne t position 2,456,996 2,898,189 3,671,028 (441,193)
Net Position, Beginning of Year 82,235,941 79,337,752 75,666,724 2,898,189
NET POSITION, END OF YEAR 84,692,937$ 82,235,941$ 79,337,752$ 2,456,996$
CONDENSED REVENUES, EXPENSES, AND CHANGES IN NET POSITION
Total Operating revenues were $32.7 m illion in 2014, and $33.7 million in 2013 and $32.8 million in 2012.
In 2014, electric revenues decreased 3% due to mild winter weather. W ater revenues decreased 3% due
to the five year meter surcharge ending in 2013.
Total operating expenses were $31.1 m illion in 2014, $31.3 million in 2013 and $28.7 million in 2012.
Compared to 2013, the overall operating expenses of the District rem ained flat. Purchased power
decreased due to lower consum ption and transmission costs, but that decrease was offset by broadband
project expenses. (See note 4).
Non-operating revenues increased $0.4 million due to investment earnings . Non-operating expenses
increased $0.2 million due to issuance cost relating to the Old Gr eenwood refunding. (See note 5).
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
M ANAGEM ENT’S DISCUSSION AND ANALYSIS
December 31, 2014 and 2013
See accom panying auditors’ report.
Page 7
CAPITAL ASSETS
As of December 31, 2014, 2013 and 2012, the District had $119.3 million, $119.9 million, and $119.8
million, respectively, invested in a variety of capital assets, net of accum ulated depreciation. A summary
of capital assets is reflected in the following schedule.
2014 2013 2012
Electric distribution facilities 51,524,863$ 49,307,043$ 48,284,640$
W ater distribution facilities 103,049,122 101,559,248 101,010,796
General plant 12,816,635 12,613,092 11,962,706
Sub-totals 167,390,620 163,479,383 161,258,142
Less : Acc umulated depreciation (54,475,747) (50,015,511) (46,102,004)
Net of acc umulated depreciation 112,914,873 113,463,872 115,156,138
Construction work in progress 6,407,589 6,449,687 4,594,466
Ne t ca pita l a sse ts 119,322,462$ 119,913,559$ 119,750,604$
CAPITAL ASSETS
Net capital assets (additions, less retirem ents and depreciation) slightly decreased in 2014, after a slight
increase in 2013. Electric distribution assets were replaced at slightly faster pace as accum ulated
depreciation and W ater distribution assets were replaced at a slightly slower pace.
LONG-TERM DEBT
Long-term debt includes revenue bonds and notes payable. At December 31, 2014, 2013 and 2012, the
District had $76.9 m illion, $81.4 million, and $84.7 million, respectively, in long-term debt outstanding, net
current maturities.
In January 2014, the original 2003 bonds issued for the Old Greenwood Community Facilities District
were refunded (refinanced) by issuing 2014 bonds to a pri vate 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 sim ilar terms and have the same rate and method of apportionment for the Old
Greenwood parcel owners as the original 2003 bonds. No new debt was issued in 2013.
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 96161
T H I S P A G E I S I N T E N T I O N A L L Y L E F T B L A N K
FINANCI AL STATEMENTS
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
The accompanying notes are an integral part of these consolidated financial statements.
Page 10
CONSOLIDATED STATEMENTS OF NET POSITION
December 31, 2014 and 2013
ASSETS
2014 2013
CURRENT ASSETS
Funds
Operating 8,377,543 $ 8,638,342 $
Designated 12,447,243 12,495,410
Restricted 9,358,084 10,408,303
Total Funds 30,182,870 31,542,055
Accounts receivable, net 6,926,538 6,829,437
Unbilled revenues 2,412,775 2,411,028
Accrued interest receivable 99,087 100,618
Materials and supplies 634,817 553,015
Prepaid expenses 254,282 283,588
Other 79,235 65,648
Total Current Assets 40,589,604 41,785,389
NON-CURRENT ASSETS
Other Non-Current Assets
Restricted funds 1,937,917 1,890,358
Special assessments receivable 5,012,321 5,651,949
Amortized pension obligation 6,177,000 6,716,354
Other 1,060,085 622,318
Total Other Non-Current Assets 14,187,323 14,880,979
CAPITAL ASSETS
Utility plant 167,390,620 163,479,382
Accumulated depreciation (54,475,747) (50,015,511)
Construction work in progress 6,407,589 6,449,688
Total capital Assets 119,322,462 119,913,559
TOT AL ASSETS 174,099,389 $ 176,579,927 $
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
The accompanying notes are an integral part of these consolidated financial statements.
Page 11
CONSOLIDATED STATEMENTS OF NET POSITION
December 31, 2014 and 2013
NET POSITION A ND LIA BILITIES
2014 2013
CURRENT LIABILI TIES
Other Liabilities
Ac c ounts pay able 2,585,280$ 3,277,894$
Cus tomer depos its 421,349 345,534
Ot her 679,328 800,447
Tot al Other Liabilities 3,685,957 4,423,875
Current Liabilities Payable From Res tric ted Ass ets
Current portion of long-t erm debt 3,458,730 3,184,097
Ac c rued interest pay able 968,864 1,076,983
Tot al Current Liabilit ies Pay able from Res tric ted As set s 4,427,594 4,261,080
Total Current Liabilities 8,113,551 8,684,955
NON-CURRENT LI ABILITIES
Long-term debt, net of dis c ounts and premiums 76,201,994 80,496,431
Installment loans 673,686 957,325
Unearned revenues 4,417,221 4,205,275
Total Non-Current Liabilities 81,292,901 85,659,031
Tot al Liabilities 89,406,452 94,343,986
NET POSITI ON
Inves ted in c apital assets, net of relat ed debt 45,838,738 42,944,031
Res trict ed for debt s ervice 10,521,661 11,096,122
Unrestric ted 28,332,538 28,195,788
Total Net Pos ition 84,692,937 82,235,941
TOTAL NET P OS ITION AND LIABILI TIES 174,099,389$ 176,579,927$
T H I S P A G E I S I N T E N T I O N A L L Y L E F T B L A N K
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
The accompanying notes are an integral part of these consolidated financial statements.
Page 13
CONSOLIDATED STATEMENTS OF REVENUES, EXPENSES, AND CH ANGES IN NET POSITION
December 31, 2014 and 2013
2014 2013
OPERATING REVENUES
Sales to cus tomers 30,331,953$ 30,810,370$
W ater meter surcharge - 703,982
Standby fees 174,250 182,580
Cap and trade proceeds 836,193 620,403
Other 1,286,200 1,345,476
Total Operating Revenues 32,628,596 33,662,811
OPERATING EXPENSES
Purchas ed power 11,414,498 12,306,311
Operations and maintenanc e 7,254,114 7,190,676
Cons umer services 2,526,733 2,563,012
Adminis tration and general 4,315,379 3,798,842
Deprec iat ion 5,601,301 5,427,377
Total Operating Expens es 31,112,025 31,286,218
Operat ing Inc ome 1,516,571 2,376,593
NON-OPERATING REVENUE (EXPENSES)
Spec ial tax revenue 3,356,052 3,407,806
Investment inc ome 510,962 110,423
Int eres t expense (3,568,730) (3,834,332)
Amortizat ion 26,297 25,092
Other non-operat ing revenues 60,066 58,063
Other non-operat ing ex pens es (344,353) (75,062)
Gain (loss ) on dis position of as s ets (93,925) 4,892
Total Non-Operating Ex pens es (53,631) (303,118)
Income Before Contributions 1,462,940 2,073,475
CAPITAL CONTRIBUTI ONS 994,056 824,714
CHANGE IN NET POSITION 2,456,996 2,898,189
Net P osition - Beginning of Year 82,235,941 79,337,752
NET POSITION - END OF YEAR 84,692,937$ 82,235,941$
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
The accompanying notes are an integral part of these consolidated financial statements.
Page 14
CONSOLIDATED STATEMENTS OF CASH FLOWS
December 31, 2014 and 2013
2014 2013
CASH FLOW S FROM OPERATING ACTIVITIES
Rec eived from cus tomers 32,892,805$ 33,844,696$
Paid to s uppliers for goods and s ervic es (20,104,405) (19,126,960)
Paid to employ ees for services (5,721,375) (5,696,530)
Net Cas h Flows from Operating A c tivities 7,067,025 9,021,206
CASH FLOW S FROM NONCAPITAL FINANCING ACTIVITIES
Princ ipal pay ment s on long-t erm debt (534,000) (3,764,000)
Interes t pay ments on long-term debt (329,150) (353,775)
Net Cas h Flows from Nonc apit al Financing Act ivities (863,150) (4,117,775)
CASH FLOW S FROM CAPITAL AND RELATED
FI NANCI NG ACTIV ITIES
Captial expenditures for utility plant (5,362,033) (5,554,295)
Cos t of dis pos al of property net of salvage (191,182) (217,638)
Capital c ontributions, c onnec t ion and fac ility fees 1,300,638 671,564
Spec ial ass ess ments rec eipt s 639,627 614,338
Spec ial tax rec eipt s 2,689,383 2,978,650
Debt is s uance c os ts 257,863 -
Proc eeds from refunding 10,231,837 -
Princ ipal pay ment s on long-t erm debt (14,264,346) (2,539,790)
Interes t pay ments on long-term debt (3,316,194) (3,598,906)
Cas h Flows From Capit al and Related Financing Ac tivities (8,014,407) (7,646,077)
CASH FLOW S FROM I NV ESTING ACTI VITI ES
Interes t inc ome rec eived 407,855 388,423
Cas h Flows from Invest ing Ac t ivit ies 407,855 388,423
Ne t Cha nge in Ca sh a nd Ca sh Equiva le nts (1,402,677) (2,354,223)
CASH AND CASH EQUIVALENTS – Beginning of Year 31,597,112 33,951,335
CASH AND CASH EQUIV ALENTS – END OF YEAR 30,194,435$ 31,597,112$
NONCAS H CAP ITAL AND RELATED FINANCING ACTIVITIES
Developer and cus tomer added c apital ass ets 500$ 159,002$
Rec ognition of prior period unearned revenues 3,039,526$ 2,587,422$
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
The accompanying notes are an integral part of these consolidated financial statements.
Page 15
CONSOLIDATED STATEMENTS OF C ASH FLOWS
December 31, 2014 and 2013
2014 2013
RECONCILIATION OF OPERATI NG INCOME TO NET CASH
FLOW S FROM OPERATI NG ACTIVI TIES
Operating income 1,516,571$ 2,376,593$
Nonc ash items inc luded in operating inc ome
Deprec iation and amortiz ation 5,601,301 5,427,377
Deprec iation c harged to other ac counts 449,586 345,496
Changes in as s et s and liabilities
Ac c ounts receivable and unbilled revenues 188,396 198,627
Materials and s upplies (81,802) (21,599)
Prepaid expens es and other c urrent as sets 29,306 32,325
Ac c ounts payable (692,614) 126,999
Cus tomer deposits 75,815 (16,742)
Other current liabilites (19,534) 552,130
NET CASH FLOW S FROM OPERATING ACTIVITES 7,067,025$ 9,021,206$
RECONCILIATION OF CASH AND CASH EQUIVALENTS
TO THE BALANCE SHEET
Operating 8,377,543$ 8,638,342$
Des ignat ed 12,447,243 12,495,410
Res tric ted funds - c urrent 9,358,084 10,408,303
Res tric ted funds - non-c urrent 1,937,917 1,890,358
Total Cash and Investments 32,120,787 33,432,413
Les s: Long-term investments (1,698,880) (1,698,880)
Mark to mark et adjus tments (227,472) (136,421)
TOTAL CASH AND CAS H EQUIVALENTS 30,194,435$ 31,597,112$
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCI AL STATEMENTS
December 31, 2014 and 2013
Page 16
NOTES TO FINANCIAL STATEMENTS
NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. ORGANIZATION
The Truckee Donner Public Utility District (the District) was form ed and operates under the State of
California Public Utility District Act. The District is governed by a board of directors which consists of fi ve
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 statem ents 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.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCI AL STATEMENTS
December 31, 2014 and 2013
Page 17
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. DESIGNATED ASSETS
The board has designated certain resources for future capital projects, replacements and operational
needs.
E. RESTRICTED ASSETS
Restricted assets are assets restricted by the covenants of long-term financial arrangements or other third
party legal restrictions. Restricted assets are used in accordance with their requirements and where both
restricted and unrestricted resources are available for use, restricted resources are used first and then
unrestricted as they are needed.
F. ACCOUNTS RECEIVABLE AND ALLOWANCES FOR DOUBTFUL ACCOUNTS
Accounts receivable are recorded at the invoiced am ount and are reported net of allowances of $72,000
and $71,800 for 2014 and 2013, respectively.
G. MATERIALS AND SUPPLIES
Materials and supplies are recorded a t average cost.
H. DEBT PREMIUM AND DISCOUNT
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. Bond issuance costs
are expensed in the period incurred.
I. 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.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCI AL STATEMENTS
December 31, 2014 and 2013
Page 18
NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
J. AMORTIZED EXPENSES
In 2003, the District entered into a broadband dark fiber maintenance agreement with Sierr a Pacific
Communications (SPC) which is included in “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 4).
In 2011, the District refinanced an existing $7.8 million pension side fund obligation for its participation in
CalPERS. (See notes 5 and 9(B)). Prior to 2011, the annual side fund payments were expensed and
described in the Notes to Financial Statements. The pension 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. This pension obligation will be amortized through 2022.
K. 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 fair market value at the time of
contribution to the District. Major outlays for plant are capitalized as projects are constructed.
Depreciation on capital assets is calculated using the straight-line m ethod 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 polic y 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 2014 and 2013; no interest was capitalized in 2014 or
in 2013.
L. COMPENSATED ABSENCES
Under terms of employm ent, employees are granted sick leave and vacations in varying amounts. Only
benefits considered to be vested are disclosed in these s tatements. Vested vacation and sick leave pay
is accrued when earned in the financial statem ents. The liability is liquidated from general operating
revenues of the utility.
M. REVENUE RECOGNITION
The District records estim ated revenues earned, but not billed to custom ers, as of the end of the year.
Revenues are recorded as meters are read on a cycle basis throughout each month for electric and water
customers. 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. W ater 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.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCI AL STATEMENTS
December 31, 2014 and 2013
Page 19
NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
N. 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 m eeting this definition are reported as non -operating revenues and expenses, or
capital contributions.
O. POWER PURCHASES AND TRANSMISSION
In 1999, the District entered into an agreement with Sierra Pacific Power Com pany dba NV Energy
(SPPC), whereby SPPC will provide transmission services to the District through December 31, 2027. In
addition, the District purchases scheduling services from Northern California Power Agency (NCPA).
These purchases of services represented 8.1% and 4.9% of total purchased power costs in 2013 and
2014, respectively. The reduction in 2014 was due to NV Energy transmission rate change s and NCPA
scheduling services ending in July 2014.
In December of 2005, the District entered into an agreem ent with UAMPS. Subsequently, the District
entered into many 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
W ind 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 Vey o Heat
Recovery project that is scheduled to come on line in late 2016. The District will expect about 1.7 MW of
carbon free generation from this generation source.
In August of 2007, the District entered into an agreement with W APA for the delivery of Stampede Dam
Hydro generation. In accordance with this agreement, the District is entitled to a portion of the power
generated by the Stam pede Dam Hydro generation. This generation is dependent upon the amount of
water that is made available to the generator. This agreement is effective through 2024.
In 2014 and 2013, the UAMPS contract, along with its appendices, and the W APA contract for Stampede
Dam Hydro comprised the majority of a diversified power portfolio that balanced risk and cost for the
District.
P. 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 maxim um 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 that they do not need. 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.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCI AL STATEMENTS
December 31, 2014 and 2013
Page 20
NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
P. CAP AND TRADE PRGRAM PROCEEDS (Continued)
In 2014 and 2013, the District sold its excess allowances in the program auctions and the proceeds were
recorded as $836,193 and $620,403 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).
Q. INCOME TAXES
As a government agency, the District is exempt from paym ent of federal and state incom e taxes .
R. 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 $806,741 in 2014 and
$906,339 in 2013.
On January 28, 2014, refunding bonds were sold to a private investm ent 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 levied ad valorem taxes of $2,549,311
in 2014 and $2,501,467 in 2013.
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).
S. 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 th e 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
item s, 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.
T. RECENT ACCOUNTING PRONOUNCEMENTS IMPLEMENTED BY THE DISTRICT
No new accounting pronouncements were implemented by the District in 2014.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCI AL STATEMENTS
December 31, 2014 and 2013
Page 21
NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
U. ACCOUNTING PRONOUNCEMENTS TO BE IMPLEMENTED IN UPCOMING YEARS
In June 2012, GASB issued Statem ent No. 68, “Accounting and Financial Reporting for Pensions – An
Amendment of GASB Statement No. 27.” The prim ary objective of this statement is to improve accounting
and financial reporting by state and local governments for pensions. This statement establishes standards
for measuring and recognizing liabilities, deferred outflows and deferred inflows of resources, and
expenses. For defined benefit pensions, this statement identifies the methods and assumptions that
should be used to project benefit payments, discount projected benefit payments to their actuarial present
value, and attribute that present value to periods of employee service. Note disclosure and required
supplementary information requirements about pensions also are addressed. This statement is effective
for the District beginning 2015. The District has elected not to implement GASB Statement No. 68 early
and has not determined its effect on the District’s financial statements.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCI AL STATEMENTS
December 31, 2014 and 2013
Page 22
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 m ay 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 2014 and 2013, there was no utilization of these funds to
offset increased power costs in lieu of raising electric rates.
Reserve for Future Meters
Prior to 1992, connection fees charged to applicants for water serv ice included an amount, which
was maintained in a designated fund, to offset the cost of future metering. In 2008, the Board
adopted an ordinance to charge a $5 monthly surcharge to all customers of treated water
beginning January 2009 through December 2013. W ater meters and automated meter reading
devices are being installed, and customers will be billed volumetrically in accordance with
California Assembly Bill 2572. As m eters are installed, these funds are used to pay for related
costs.
Water Capital Replacement
Starting in 2006, the Board has set aside a portion of water revenues designated for future water
infrastructure replacement.
Water Vehicle Reserve
Beginning in 2009, the Board set aside funds designated for future water utility vehicle
replacements.
Prepaid Connection Fees
In compliance with Board rules, the District has set aside prepaid connection fees to cover
installation costs of water services.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCI AL STATEMENTS
December 31, 2014 and 2013
Page 23
NOTE 2 – CASH, CASH EQUIVALENTS, AND INVESTMENTS (Continued)
Debt Service Coverage Fund
Effective 2007, the Board has voluntarily set aside funds to im prove the District’s cash-to-debt-
service ratio.
Donner Lake Assessment District Surcharge Fund
The District established a monthly billing surcharge in the amount of $6.65 applicable to
custom ers in the Donner Lake area to provide revenue to pay the remainder of the cost of
reconstruction effective October 2006.
As of December 31, board designated accounts consisted of the following:
2014 2013
Electric capital replac ement fund 3,041,245$ 2,162,044$
Electric vehicle reserve 216,279 430,177
Electric rate reserve 3,581,285 3,102,938
Res erve for fut ure meters 795,460 1,074,185
W ater c apital replac ement fund 877,256 1,997,251
W ater vehic le reserve 159,333 -
Prepaid c onnec tion fees 79,464 80,707
Debt servic e coverage fund 3,627,159 3,588,453
Donner Lake Assess ment Dis tric t surcharge fund 69,762 59,655
Totals 12,447,243$ 12,495,410$
Certain assets have been restricted by bond covenants or third party contractual agreem ents for the
following purposes:
Certificates of Participation: Water
The terms of the W ater Division’s Certificates of Participation require a reserve fund as security
for each principal and interest payment as they come du e. A reserve fund is set aside as
prescribed in the loan docum ents. These reserve funds are held by Bank of New York Mellon
Trust Company.
Special Tax Bonds: Gray’s Crossing and Old Greenwood
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.
In 2014, the Old Greenwood CFD special tax bonds were refunded. The new 2014 refunding
bonds did not require a reserve fund. The reserve fund was liquidated and applied towards
reducing the debt principal.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCI AL STATEMENTS
December 31, 2014 and 2013
Page 24
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 Departm ent of W ater Resources loan require the accumulation of a
reserve fund as security for each principal and interest paym ent 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 paym ents and was fully funded during 2006. These
funds are set aside for the life of the borrowed amount. All of the reserve funds are in vested in the
State of California Local Agency Investment Fund.
Glenshire Escrow Account
The District received cash and other assets as part of its acquisition of the Glenshire Mutual
W ater Company. Also, the District will continue to receive a monthly water system upgrade
surcharge from Glenshire residents until November 30, 2017. This cash is utilized to pay the
installment loan related to the Glenshire water system improvements as specified in the terms of
the acquisition agreement.
In 2011, the District sold a parcel from the Glenshire Mutual W ater Company assets. The net
proceeds of $294,940 were transferred to the Glenshire Escrow Account and the monthly water
system upgrade surcharge was reduced from $10.75 to $4.75.
Donner Lake Special Assessment District Improvement Fund
The District established the Donner Lake Special Assessment District (DLAD) Improvement Fund
to account for all funds received from the Special Assessm ent Receivable, which will be used to
pay the debt service costs related to the Donner Lake W ater System project. The DLAD
Im provement Fund also has a reserve fund as required by the California – Safe Drinking W ater –
State Revolving Fund (SRF). This fund is required to set aside $40,043 semi -annually for ten
years beginning in 2006.
Solar Initiative Fund
The California Solar Initiative Senate Bill 1 (SB1) was enacted in 2006, mandating that all
publicly-owned electric utilities within the State of California, prepare, adopt and im plement a
solar rebate program by January 2008 to encourage its customers to install solar energy systems.
In 2007, the Board adopted a rebate program effective January 2008, targeting $177,400
annually over ten years to be used as rebates for the installation of solar electricity systems and
to raise these funds through a customer surcharge.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCI AL STATEMENTS
December 31, 2014 and 2013
Page 25
NOTE 2 – CASH, CASH EQUIVALENTS, AND INVESTMENTS (Continued)
AB32 Cap and Trade Auction Fund
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 im plementation of a cap and
trade program, which covers major sources of GHG emissions in the State incl uding power
plants. The California Cap and Trade Program is designed to achieve cost -effective emissions
reductions across the capped sectors. T he program sets maximum statewide GHG emissions for
all covered sectors each year (“cap”), and allows covered en tities to sell off allowances (“trade”).
An allowance is a tradable permit that allows the emission of one metric ton of CO2 that they do
not need. 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.
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 a llowances 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.
W hen both restricted and unrestricted resources are available for use, it is the District's polic y to use
restricted resources first, then unrestricted resources as they are needed.
As of December 31, restricted cash and cash equivalents and investm ents consisted of the following:
2014 2013
Certificates of Partic ipation 2,497,964$ 2,626,063$
Special t ax bonds 3,328,023 4,628,502
Facilities fees 657,218 -
DW R-Prop 55 reserve fund 311,075 310,338
Glenshire es crow ac c ounts 255,847 337,012
Donner Lake Special As ses sment Dist rict improvement 2,567,157 2,469,436
Donner Lake Special As ses sment Dist rict reserve fund 720,978 641,450
Solar Initiative 66,761 300,043
AB 32 Cap and Trade Auction fund 839,464 863,703
Other (area improvement funds)51,514 122,114
Total Rest ricted Cash and Cas h
Equivalents and Inves tments 11,296,001$ 12,298,661$
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCI AL STATEMENTS
December 31, 2014 and 2013
Page 26
NOTE 2 – CASH, CASH EQUIVALENTS, AND INVESTMENTS (Continued)
Cash and investments are comprised of the following cash and cash equivalents and investments as of
December 31:
2014 2013
Cash and cash equivalents 30,194,436$ 31,597,112$
Mark to mark et adjustment 227,471 136,421
Investments – government bonds 1,698,880 1,698,880
Totals 32,120,787$ 33,432,413$
Cash and cash equivalents were $32,120,787 and $33,432,413 at December 31, 2014 and 2013,
respectively. Cash equivalents substantially consist of investments in the state pooled fund, Placer
County pooled fund, money market funds and government bonds. For purposes of the Statements of
Cash Flows, the District considers all highly liquid instrum ents with original maturities of three months or
less to be cash equivalents.
Adjustments necessary to record investments at market value are recorded in the operating statement as
increases or decreases in investment income. Market values may have changed significantly after year
end.
INVESTMENTS AUTHORIZED BY THE DISTRICT’S INVESTMENT POLICY
The District adopted an investment policy in 2006 which allowed for investm ents in ins truments perm itted
by the California Government Code and/or the investments permitted by the trust agreements on District
financing, including investments in the local government investment fund pool administered by the State
of California (LAIF) and Placer County Treasurer’s Investment Portfolio (PCTIP) pooled investment. The
District’s investment policy contains provisions intended to limit the District’s exposure to interest rate risk,
credit risk, and concentration of credit risk. At December 31, 2014 and 2013 the District’s deposits and
investments were held as follows:
2014 2013
Cas h on hand 2,000$ 1,900$
Certificate of Depos it - 1,271,918
Depos its 659,379 929,587
LAIF 17,344,044 17,688,006
PCTIP 9,944,623 9,190,999
Money Mark et Funds 2,232,824 2,459,645
Government Bonds 1,937,917 1,890,358
Totals 32,120,787$ 33,432,413$
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCI AL STATEMENTS
December 31, 2014 and 2013
Page 27
NOTE 2 – CASH, CASH EQUIVALENTS, AND INVESTMENTS (Continued)
DISCLOSURES RELATING TO INTEREST RATE RISK
Interest rate risk is the risk that changes in the market interest rates wi ll 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 2014 and 2013:
Investment Maturity
LAIF 3 months or less
PCTIP 3 months or less
Federated U.S. Treasury Cash Reserve 3 months or less
Fidelity Institutional Prime 3 months or less
Fidelity Money Market 3 months or less
Goldman Sachs Tax Free Money Market Fund 3 months or less
Various Certificate of Deposits 3 months or less
Federal Farm Credit Banks 03/02/2021
DISCLOSURES RELATING TO CREDIT RISK
Generally, credit risk is the risk that an issuer of an investm ent 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 and PCTIP do not have a rating provided by a nationally recognized st atistical
rating organization. The Fidelity Money Market is also not rated. The Fidelity Institutional Prime 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.
Goldm an Sachs Financial Square Money Market Fund 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 polic y does not contain
legal or policy requirem ents that would lim it 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 depositor y
regulated under state law (unless waived by the government unit). The m arket value of pledged securities
in the collateral pool must equal at least 110% of the total amount deposited by the public agencies.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCI AL STATEMENTS
December 31, 2014 and 2013
Page 28
NOTE 2 – CASH, CASH EQUIVALENTS, AND INVESTMENTS (Continued)
CUSTODIAL CREDIT RISK (CONTINUED)
As of December 31, 2014 and 2013 all deposits were fully insured or collateralized.
The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g.,
broker/dealer) to a transaction, a government will not be able to recover the value of its investment or
collateral securities that are in the possession of another party. The California Government Code and the
District’s investment policy do not contain legal or policy requirements that would limit the ex posure to
custodial credit risk for investments. W ith 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).
INVESTMENT IN STATE INVESTMENT POOL
The District is a voluntary participant in the Local Agency Investment Fund (LAIF). This investm ent 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 Governm ent Code according to a statem ent of investment policy which sets forth
permitted investment vehicles, liquidity parameters, and maximum m aturity of investments. The fair value
of the District’s investm ent in this pool is reported in the accompanying financial statem ents 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 am ortized 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.
INVESTMENT 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 m anaged in compliance with the
California Government Code according to a statement of investment policy which sets forth permitted
investment vehicles, liquidity param eters, and maximum maturity of investm ents. 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.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCI AL STATEMENTS
December 31, 2014 and 2013
Page 29
NOTE 3 – CAPITAL ASSETS
Capital assets consist of the following at December 31, 2014 and 2013:
Ja nua ry 1,De ce mbe r 31,
2014 Additions Re ductions 2014
Electric distribution facilities 49,307,043$ 2,656,895$ (439,075)$ 51,524,863$
W ater distribution fac ilities 101,559,249 1,684,337 (194,464) 103,049,122
General plant 12,613,090 1,063,399 (859,854) 12,816,635
163,479,382 5,404,631 (1,493,393) 167,390,620
Less : Accumulated deprec iation (50,015,511) (5,871,652) 1,411,416 (54,475,747)
Cons truction work in progress 6,449,688 5,479,022 (5,521,121) 6,407,589
Totals 119,913,559$ 5,012,001$ (5,603,098)$ 119,322,462$
Ja nua ry 1,De ce mbe r 31,
2013 Additions Re ductions 2013
Electric distribution facilities 48,284,640$ 1,839,668$ (817,265)$ 49,307,043$
W ater distribution fac ilities 101,010,796 817,749 (269,296) 101,559,249
General plant 11,962,706 1,200,658 (550,274) 12,613,090
161,258,142 3,858,075 (1,636,835) 163,479,382
Less : Accumulated deprec iation (46,102,004) (5,687,929) 1,774,422 (50,015,511)
Cons truction work in progress 4,594,466 5,722,702 (3,867,480) 6,449,688
Totals 119,750,604$ 3,892,848$ (3,729,893)$ 119,913,559$
As of December 31, 2014 and 2013, the plant in service included land and land rights, $2,622,946 and
$2,622,946 respectively, which is not be ing depreciated.
A portion of the plant has been contributed to the District. W hen replacement is needed, the District
replaces the contributed plant with District-financed plant.
NOTE 4 – TELECOMMUNICATION SERVICES
In 1999, the District initiated a project to expand their basic service offerings to include internet access,
cable television and voice delivered over fiber optic networks (the broadband project). The District
completed the broadband design project and obtained the necessary regulatory app rovals 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 name d 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 2013 there were no material expenditures for this project.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCI AL STATEMENTS
December 31, 2014 and 2013
Page 30
NOTE 5 – LONG-TERM DEBT
Long-term debt consisted of the following at December 31, 2014:
Ja nuary 1,Decembe r 31,Due w ithin
2014 Additions Re ductions 2014 one ye a r
Pens ion Obligation Bonds
Electric, 5%
due s em i-annually 6,711,000 - (534,000) 6,177,000 593,000
State Revolving Fund Loan –
W ater, 2.34%, due semi-annually
beginning in 2006 to 2026.8,636,075 - (602,271) 8,033,804 616,446
Spec ial Tax Bonds – Mello
Roos, 2.25% to 5.7%, due
serially to 2033 11,610,000 - (11,610,000) - -
refinanced in January 2014
Spec ial Tax Bonds – Mello
Roos, 4.18%, due
serially to 2032 - 10,489,700 (145,300) 10,344,400 253,900
Spec ial Tax Bonds – Mello
Roos, 3.25% to 5.7%,
due serially to 2035 (net 14,753,498 - (165,313) 14,588,185 200,000
unamortized disc ounts of $96,815)
Spec ial Tax Bonds – Mello
Roos, 3.50% to 5.50%,
due serially to 2035 (net 18,258,785 - (239,482) 18,019,303 275,000
unamortized disc ounts of $10,697)
Certificates of Participation –
W ater, 4.00% to 5.00%,
due serially to 2036
(net premiums of $347,202)21,411,210 - (984,008) 20,427,202 985,000
Department of W ater Resourc es,
3.18%, due semiannually to
2021, s ecured by real
and pers onal property.2,031,006 - (243,874) 1,787,132 251,685
Installment loans , 5.4% to 6.23%,
various pay ment terms and
due dates, secured by
equipment.1,226,279 - (268,895) 957,384 283,699
Totals 84,637,853$ 10,489,700$ (14,793,143)$ 80,334,410$ 3,458,730$
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCI AL STATEMENTS
December 31, 2014 and 2013
Page 31
NOTE 5 – LONG-TERM DEBT (Continued)
Long-term debt consisted of the following at December 31, 2013:
Ja nua ry 1,De cem be r 31,Due w ithin
2013 Additions Re ductions 2013 one ye a r
Certificates of Participation –
Electric, 2.5% to 5.75%,
due serially to 2013 3,285,000$ -$ (3,285,000)$ -$ -$
Pension Obligation Bonds
Electric, 5%
due s em i-annually 7,190,000 - (479,000) 6,711,000 534,000
State Revolving Fund Loan –
Water, 2.34%, due semi-annually
beginning in 2006 to 2026.9,224,497 - (588,422) 8,636,075 602,271
Special Tax Bonds – Mello
Roos , 2.25% to 5.7%, due
serially to 2033 11,765,000 - (155,000) 11,610,000 180,000
Special Tax Bonds – Mello
Roos , 3.25% to 5.7%,
due serially to 2035 (net 14,886,645 - (133,147) 14,753,498 170,000
unamortized discounts of $101,502)
Special Tax Bonds – Mello
Roos , 3.50% to 5.50%,
due serially to 2035 (net 18,468,016 - (209,231) 18,258,785 240,000
unamortized discounts of $11,215)
Certificates of Participation –
Water, 4.00% to 5.00%,
due serially to 2036
(net premiums of $378,703
and arbitrage of $7,507).22,348,924 - (937,714) 21,411,210 945,000
Department of W ater Resources,
3.18%, due semiannually to
2021, secured by real
and pers onal property.2,267,360 - (236,354) 2,031,006 243,874
Installment loans, 5.4% to 6.23%,
various payment terms and
due dates, secured by
equipment.1,531,293 - (305,014) 1,226,279 268,952
Totals 90,966,735$ -$ (6,328,882)$ 84,637,853$ 3,184,097$
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCI AL STATEMENTS
December 31, 2014 and 2013
Page 32
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. The District is also r equired to fund a reserve
account by making sem i-annual reserve payments in the am ount of $40,043 for a 10-year period. 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 Comm unity 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 term s 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 sim ilar 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, Truckee Donner Public Utility District Financing Corporation issued $26,570,000 of
Certificates of Participation to refund 100% of the outstanding balance of Certificates issue d 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 W ater 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.
Under the Safe Drinking Water Bond Law of 1986, the Department of W ater 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 W ater Division, which are required to be sufficient to pay the debt service for each
year.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCI AL STATEMENTS
December 31, 2014 and 2013
Page 33
NOTE 5 – LONG-TERM DEBT (Continued)
In June 2011, the District refunded (refinanced) an existing $7.8 million pension side fund obligation for its
participation in CalPERS. (See notes 1(J) and 9(B)). Prior to 2011, the annual side fund paym ents 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 Statem ent 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
$100,000 through 2022.
As a normal part of its operations, the District finances the acquisition of certain assets through the use of
installment loans. These loans have been used to finance the purchase of vehicles, equipment and
certain water system improvements. There were no additional installm ent loans in 2014 or in 2013.
Scheduled payments on debt are:
Principa l Inte re st Tota l
2015 3,458,730$ 3,713,314$ 7,172,044$
2016 3,684,919 3,572,413 7,257,332
2017 3,936,724 3,420,513 7,357,237
2018 3,871,214 3,262,202 7,133,417
2019 4,140,421 3,104,101 7,244,521
2020-2024 18,691,707 12,833,104 31,524,811
2025-2029 16,824,107 9,070,845 25,894,952
2030-2034 20,141,900 4,477,712 24,619,612
2035-2039 5,344,998 323,110 5,668,108
80,094,720 43,777,314$ 123,872,034$
P lus : Unamort iz ed premiums 347,202
Arbitrage rebate -
Les s : Unamortiz ed discount s (107,512)
80,334,410$
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCI AL STATEMENTS
December 31, 2014 and 2013
Page 34
NOTE 6 – UNEARNED REVENUES
Transactions that have not yet met revenue recognition requirem ents are recorded as a non-current
liability and reflected in the accompanying Statement of Net Position. As of December 31, 2014 and 2013,
unearned revenues consist of unearned special assessment revenues, development agreem ent depos its,
connection fees and other deposits.
Unearned revenues consisted of the following at December 31, 2014 and 2013:
Ja nua ry 1,De ce mbe r 31,
2014 Additions Re ductions 2014
Unearned tax revenues 1,725,595$ 1,630,458$ (1,725,595)$ 1,630,458$
Development agreement depos its 1,572,282 590,108 (319,377) 1,843,013
Connection fees and other depos its 907,398 1,030,905 (994,554) 943,749
Totals 4,205,275$ 3,251,471$ (3,039,526)$ 4,417,220$
Ja nua ry 1,De ce mbe r 31,
2013 Additions Re ductions 2013
Unearned tax revenues 1,682,210$ 1,725,597$ (1,682,212)$ 1,725,595$
Development agreement depos its 1,543,162 333,136 (304,016) 1,572,282
Connection fees and other depos its 930,667 577,945 (601,214) 907,398
Totals 4,156,039$ 2,636,678$ (2,587,442)$ 4,205,275$
NOTE 7 – COMMUNITY FACILITIES DISTRICTS
In order to finance various public improvements needed to develop property within the Town of Truckee,
California, the District form ed 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 im provem ents
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 Januar y 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 bond s. 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 2014 and 2013 respectively, taxes of $691,753 and $921,728 were levied by Old Greenwood. Of
these amounts, $345,877 and $460,864 relate to 2014 and 2013, and accordingly, are included in tax
revenues in the accompanying Statem ent of Revenues, Expenses and Changes in Net Position. The
remaining amount will be recognized in 2015 and 2014 and are included in unearned revenues on the
accompanying Statement of Net Position.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCI AL STATEMENTS
December 31, 2014 and 2013
Page 35
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 2014 and 2013, taxes of $2,569,162
and $2,529,460 respectively were levied by Gray’s Crossing. Of this amount, $1,284,581 and $1,264,730
relate to 2014 and 2013, and accordingly, are included in tax revenues in the accompanying Statement of
Revenues, Expenses and Changes in Net Position. The rem aining amount will be recognized in 2015
and 2014 and is included in unearned revenues on the accom panying Statement of Net Position.
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 W ATER COMPANY ACQUISITION
In 2001, the District acquired the Donner Lake W ater 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 m illion 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 m illion 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 m onthly $6.65 water system upgrade surcharge is paid by the
Donner Lake customers to reim burse 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.
As of December 31, 2014 and 2013, the assessm ent receivable from the property owners was
$5,012,321 and $5,651,949 respectively, of which $675,450 and $658,005 is due in the next year. 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 Assessm ent District
Im provement Fund and used to pay the debt service for the water system improvements.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCI AL STATEMENTS
December 31, 2014 and 2013
Page 36
NOTE 9 – EMPLOYEE BENEFIT PLANS
A. CALPERS MISCELLANEOUS 2.7% AT 55 RISK POOL PENSION PLAN
The District and bargaining unit employees elected to participate in the Public Agency portion of California
Public Employees’ Retirement System (CalPERS) Miscellaneous Risk Pool Pension effective August 21,
2004. On November 15, 2010, the Board of Directors adopted an amendment to the CalPERS
Miscellaneous Risk Pool Pension to participate in the 2.7% at 55 Plan, effective January 1, 2011.
In 2012, California's Assembly Bill 340 (AB 340) was signed into law by the Governor with the effective
date of January 1, 2013. The District modified its pension plan effective January 1, 2013 to com ply with
AB 340. The provisions of AB340 require that the District’s current employees, who participate in the
2.7% at 55 Plan, contribute at least 50% of normal cost, up to 8% of their wages. District employees hired
after January 1, 2013, who do not qualify to participate in the 2.7% at 55 Plan, participate in a new 2% at
62 Plan and pay at least 50% of normal cost, up to 8% of their wages. Additionally, employees
participating in the 2% at 62 Plan have a $117,000 cap on wages eligible for pension calculation. That
cap is adjusted annually to equal the social security contribution and benefit base.
Both of the CalPERS Miscellaneous 2.7% at 55 and 2% at 62 Risk Pool Plans are cost-sharing multi-
employer defined benefit plans adm inistered by CalPERS, which acts as a common investment and
administrative agent for participating public employers within the State of California. State statutes within
the Public Employees’ Retirement Law establish a menu of benefit provisions, as well as other
requirements. The District selects optional benefit provisions from the benefit menu by contract with
CalPERS and adopts those benefits through local ordinance or resolution. The CalPERS plan also
provides for death and disability benefits. CalPERS issues a separate comprehensive annual financial
report. Copies of the CalPERS’ comprehensive annual financial report may be obtained from :
California Public Employees’ Retirement System
400 Q Street
P.O. Box 942701
Sacram ento, CA 94229-2701
Tel. 888-225-7377
http://www.calpers.ca.gov
Effective January 2013, active participants contribute 8% of their annual covered salary. The District
contributes the actuarially determ ined rem aining amounts necessary to fund the benefits for its
participants. The required employer contribution rate for fiscal years ending June 30, 2014 and 2013 was
15.064% and 14.525% of payroll for the 2.7% at 55 plan. The required employer contribution rate for
fiscal years ending June 30, 201 4 and 2013 was 6.250% of payroll for the 2% at 62 plan. The
contribution requirements of the plan participants are established by State statute and the em ployer
contributions rate is established and may be amended by CalPERS.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCI AL STATEMENTS
December 31, 2014 and 2013
Page 37
NOTE 9 – EMPLOYEE BENEFIT PLANS (Continued)
The District’s annual pension cost (APC) for the years ended December 31, 2014, 2013, and 2012
respectively was $923,033, $900,290 and $1,094,372, and was equal to the District’s annual required
contributions (ARC) as determined by the June 30, 2013, 2012 and 2011 actuarial valuations using the
entry age normal actuarial cost method with the contributio ns determined as a percent of payroll. The
actuarial methods and assumptions used are those adopted by the CalPERS Board of Administration.
Significant actuarial assumptions and methods include:
Actuarial Cost Method Entry Age Normal Cost Method
Amortization Method Level Percent of Payroll
Asset Valuation Method Market Value
Investment Rate of Return 7.50% (Net of Administrative Expenses)
Projected Salary Increases 3.30% - 14.20% depending on age, service and type of employment
Inflation 2.75%
Payroll Growth 3.00%
Individual Salary Growth Merit scale varying by duration of employment, annual inflation growth
of 2.75%, and annual production growth of 0.25%
The plan’s unfunded actuarial accrued liability is being amortized as a level percentage of projected
payrolls on an open basis over a period not to exceed 30 years.
Retirem ent plans like the District’s with less than 100 active members are required to participate in a risk
pool. Therefore, the funding progress for the District for the June 30 valuation dates are for the entire
pool, not just the District em ployees. The following are funding schedules for the current and form er
CalPERS pooled pension plans:
Accrue d Actua ria l Unfunde d Funde d Annua l
Va lua tion Li a bilitie s V a lue of Li a bilitie s Ra tio Cove re d UL a s a %
Da te (AL)Asse ts (AVA)(UL)(AVA/AL)Pa yroll of Pa yroll
06/30/2011 -$ -$ -$ 0.0%-$ 0.0%
06/30/2012 -$ -$ -$ 0.0%-$ 0.0%
06/30/2013 1,063,294$ 699,991$ 363,303$ 65.8%48,743,702$ 0.7%
Accrue d Actua ria l Unfunde d Funde d Annua l
Va lua tion Li a bilitie s V a lue of Li a bilitie s Ra tio Cove re d UL a s a %
Da te (AL)Asse ts (AVA)(UL)(AVA/AL)Pa yroll of Pa yroll
06/30/2011 2,486,708,579$ 1,981,073,089$ 505,635,490$ 79.7%427,300,410$ 118.3%
06/30/2012 2,680,181,441$ 2,178,799,790$ 501,381,651$ 81.3%417,600,034$ 120.1%
06/30/2013 2,858,732,321$ 2,218,982,123$ 639,750,198$ 77.6%406,940,099$ 157.2%
Sche dule of Pe nsion Pl a n Funding Progre ss - 2% @ 62 (Sta rte d Pa rticipa tion Ja nua ry 1, 2013)
Sche dule of Pe nsion P la n Funding Progre ss - 2.7% @ 55 (Sta rte d P a rti ci pa tion Ja nua ry 1, 2011)
As of July 1, 2014, the District’s contribution rate changed from 15.064% to 16.086% of payroll for the
2.7% at 55 plan and remained at 6.25% of payroll for the 2% at 62 plan.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCI AL STATEMENTS
December 31, 2014 and 2013
Page 38
NOTE 9 – EMPLOYEE BENEFIT PLANS (Continued)
B. EXISTING PENSION OBLIGATION - PENSION SIDE FUND
At the time of joining the CalPERS Miscellaneous Risk Pool, an em ployer side fund was created to
account for the difference between the funded status of the pool and the funded status of the District’s
plan. The side fund used the actuarial assumption of a 7.75% investment return and it was amortized on
a closed basis, ending in 2022. On June 30, 2011, the District refinanced the existing $7.8 million
pension side fund obligation with amortized payments through 2022 and a 5% rate. (See notes 1(J)
and 5). The debt service is paid by the District and recorded as pension expense; allocated 63% to the
Electric Utility and 37% to the W ater Utility. The net side fund pension expense for 2014 and 2013
respectively was $863,150 and $832,775.
C. DEFERRED COMPENSATION PLAN
The District maintains two deferred compensation plans: a 401(a) and a 457 plan, (the Plans) for certain
qualified em ployees. The District matches 6.78% of employee contributions. In 2014 and 2013, the total
match was $19,593 and $0 in the respective years. 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.
D. OTHER POST EMPLOYMENT BENEFITS (OPEB)
The District administers a single-employer defined benefit healthcare plan (The Retiree Health Plan).
Contribution requirements and benefit provisions are established through collective bargaining
agreements and may be amended only through negotiations between the District and the Union. The plan
provides health insurance contributions for eligible retirees and their spouses through the District’s group
health insurance plan, which covers both active and retired members. Health insurance inc ludes medical
insurance, dental insurance, and prescriptions. The Retiree Health Plan does not issue a publicly
available financial report.
The District began providing post employment health care on January 1, 2000 to all employees, and
qualified dependents, that retire from the District on or after attaining age 60 with service of at least 20
years. As of June 30, 2014, there were forty participants including dependents. The monthly amount paid
by the District is capped at $475 for each participant or $375 for each participant eligible for Medicare. For
participants with less than 20 years of service, the benefit is reduced by 5% for each year. Expenditures
for post employment health care benefits are recognized when premiums are paid.
On November 7, 2007, the Board approved a participation agreement with CalPERS to be the plan
administrator for the District's other post employment benefit (OPEB) trust. The participation agreement
was submitted to CalPERS on November 8, 2007, and became effective on January 15, 2008. At that
tim e, accumulated deposits from the prior year, plus accrued interest, were transferred to the California
Em ployers’ Retiree Benefit Trust Program (CERBT).
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCI AL STATEMENTS
December 31, 2014 and 2013
Page 39
NOTE 9 – EMPLOYEE BENEFIT PLANS (Continued)
D. OTHER POST EMPLOYMENT BENEFITS (OPEB) (Continued)
The funds of the Retiree Health Plan are invested in CERBT, which is a tax qualified trust organized
under Internal Revenue Code (IRC) Section 115. Participation in the trust is limited to those agencies who
qualify as “government” entities under that IRC section. The CERBT is an irrevocable trust established for
the purpose of receiving employer contributions to prefund health and other postemployment benefits for
retirees and their beneficiaries. The CERBT administrative costs are fin anced through investment
earnings. Copies of the CalPERS’ comprehensive annual financial report, that includes CERBT
investment performance, may be obtained from:
California Public Employees’ Retirement System
400 Q Street
P.O. Box 942701
Sacram ento, CA 94229-2701
Tel. 888-225-7377
http://www.calpers.ca.gov
The District's annual OPEB expense is calculated based on the ARC, an amount actuarially determined in
accordance within the parameters of GASB Statement No. 45. The ARC represents a level of funding
that, if paid on an ongoing basis, is projected to cover the normal cost each year. The plan’s unfunded
actuarial accrued liability is being amortized as a level percentage of projected payrolls on an open basis,
over a period not to exceed 30 years, using the entry age norm al cost method.
The following table shows the components of the District’s annual OPEB cost, the amount actually
contributed to the plan, and changes in the net OPEB obligation to the Retiree Health Plan:
Annua l % of Cha nge in OPEB Ne t OPEB
Fisca l Re quire d Inte re st Annua l Annua l Ne t OPEB Obl iga tion Obliga tion
Ye a r Contribution a nd OPEB Actua l OPEB Cost Obliga tion (Asse t)(Asse t)
Ende d*(ARC)Adjustme nts Cost Contribution Contribute d (Asse t)Be ginning Endi ng
12/31/2011 271,200$ 1,322$ 272,522$ 237,501$ 87.1%35,021$ (101,692)$ (66,671)$
06/30/2012 276,800$ 66,671$ 343,471$ 285,005$ 83.0%58,466$ (66,671)$ (8,205)$
06/30/2013 267,800$ 628$ 268,428$ 304,556$ 113.5%(36,128)$ (8,205)$ (44,333)$
06/30/2014 267,800$ -$ 267,800$ 268,498$ 100.3%(698)$ (44,333)$ (45,031)$
*In 2011, the Fis cal Year Ended date changed to June 30 in compliance with GASB Statement No. 57.
Actuarial valuations of an ongoing plan are required at least once every two years and involve estimates
for the value of reported amounts and assumptions about the probability of occurrence of events far into
the future. Examples include assumptions about future employment, mortality, and the healthcare cost
trend. Amounts determined regarding the funded status of the plan and annual required contributions of
the employer are subject to continual revision as actual results are compared with past expectations and
new estimates are made about the future.
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as
understood by the employer and plan members) and include the types of benefits provided at the tim e of
each valuation and historical pattern of sharing benefit costs between the employer and plan members to
that point. The methods and assumptions used include techniques that are designed to reduce short -term
volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term
perspective of calculations.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCI AL STATEMENTS
December 31, 2014 and 2013
Page 40
NOTE 9 – EMPLOYEE BENEFIT PLANS (Continued)
D. OTHER POST EMPLOYMENT BENEFITS (OPEB) (Continued)
Significant actuarial assumptions include:
Actuarial Cost Method Projected Unit Credit
Asset Valuation Method Five-year spread of gain/loss, beginning with 2009-10
Gain/loss on market value basis compared to assumption
Discount Rate 7.5%
General Inflation 3% Annual Increase
Amortization of Unfunded Liability 23 years; level annual payments
The following is a funding schedule for the Retiree Health Plan:
Accrue d Actua ria l Unfunde d Funde d Annua l
Va lua tion Li a bilitie s V a lue of Lia bilitie s Ra tio Cove re d UL a s a %
Da te *(AL)Asse ts (AV A)(UL)(AVA/AL)Pa yroll of Pa yroll
01/01/2009 1,748,000$ 230,900$ 1,517,100$ 13.2%5,276,400$ 28.8%
01/01/2011 2,501,800$ 645,700$ 1,856,100$ 25.8%6,307,400$ 29.4%
07/01/2011 2,657,000$ 661,400$ 1,995,600$ 24.9%6,226,000$ 32.1%
07/01/2013 2,960,600$ 1,079,900$ 1,880,700$ 36.5%6,409,000$ 29.3%
*Valuations are required onc e every two y ears. In 2011, t he vaulation
date c hanged to July 1 in compliance wit h GASB Statement No. 57.
Sche dule of Re tire e He a lth P la n Funding Progre ss
NOTE 10 – SELF FUNDED INSURANCE
The District has a self-funded vision insurance program and claims were processed b y and on behalf of
the District. The District did not maintain a claim liability; rather claim s were expensed as paid. The
amount of claims paid for each of the past three years have not been m aterial.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCI AL STATEMENTS
December 31, 2014 and 2013
Page 41
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 Comm unity Facilities Districts. Each
project has an external requirem ent 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, 2014 and 2013.
STATEMENT OF NET POSITION
Gra y's Old
Ele ctric W a ter Crossing Gre e nw ood
Current assets 17,011,546$ 14,587,013$ 7,823,186$ 1,167,859$
Non-current assets:
Capital as sets, net 43,384,263 75,938,199 - -
Res tricted assets - 1,937,917 - -
Other long term assets 7,237,085 5,012,321 - -
Total Nonc urrent As sets 50,621,348 82,888,437 - -
TOTAL ASSETS 67,632,894$ 97,475,450$ 7,823,186$ 1,167,859$
Current liabilities 3,877,841$ 2,770,236$ 1,067,442$ 398,032$
Non-current Liabilities
Long-term debt, net of current portion 5,662,339 28,990,354 32,132,487 10,090,500
Unearned revenues 2,352,353 434,410 1,284,581 345,877
Total Nonc urrent Liabilities 8,014,692 29,424,764 33,417,068 10,436,377
Total Liabilities 11,892,533 32,195,000 34,484,510 10,834,409
Net Position
Invested in capital as sets, net of related debt 43,374,945 45,415,680 (32,607,487) (10,344,400)
Res tricted for debt service 1,109,740 6,659,078 2,752,843 -
Unrestricted 11,255,676 13,205,692 3,193,320 677,850
Total Net Position 55,740,361 65,280,450 (26,661,324) (9,666,550)
TOTAL LIABILITIES AND NET POSITION 67,632,894$ 97,475,450$ 7,823,186$ 1,167,859$
De ce m be r 31, 2014
LIABILITIES
ASSETS
LIABILITIES A ND NET POSITION
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCI AL STATEMENTS
December 31, 2014 and 2013
Page 42
NOTE 11 – SEGMENT DISCLOSURE (Continued)
STATEMENT OF NET POSITION (CONTINUED)
Gra y's Old
Ele ctric W a te r Crossing Gre e nw ood
Current assets 16,605,360$ 15,104,096$ 7,438,003$ 2,637,930$
Non-current assets :
Capital assets, net 42,535,768 77,377,791 - -
Restricted as s ets - 1,890,358 - -
Other long-term assets 7,338,672 5,651,949 - -
Total Noncurrent As sets 49,874,440 84,920,098 - -
TOTAL ASSETS 66,479,800$ 100,024,194$ 7,438,003$ 2,637,930$
Current liabilities 4,500,766$ 2,765,623$ 1,008,718$ 409,848$
Non-current Liabilities
Long-term debt, net of current portion 6,264,658 31,156,815 32,602,283 11,430,000
Unearned revenues 2,071,166 408,514 1,264,731 460,864
Total Noncurrent Liabilities 8,335,824 31,565,329 33,867,014 11,890,864
Total Liabilities 12,836,590 34,330,952 34,875,732 12,300,712
Net Position
Inves ted in capital assets , net of related debt 42,526,857 45,039,457 (33,012,283) (11,610,000)
Restricted for debt servic e 1,161,905 6,172,282 2,746,567 1,015,368
Unrestric ted 9,954,448 14,481,503 2,827,987 931,850
Total Net Position 53,643,210 65,693,242 (27,437,729) (9,662,782)
TOTAL LIABILITIES AND NET POSITION 66,479,800$ 100,024,194$ 7,438,003$ 2,637,930$
ASSETS
De ce m be r 31, 2013
LIABILITIES
LIA BILITIES A ND NET POSITION
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCI AL STATEMENTS
December 31, 2014 and 2013
Page 43
NOTE 11 – SEGMENT DISCLOSURE (Continued)
STATEMENTS OF REVENUE, EXPENSES, AND CHANGES IN NET POSITION
Ye a r e nde d De ce mbe r 31, 2014
Gra y’s Old
Ele ctric W a ter Crossing Gre e nw ood
Operating Revenues
Sales to consumers 20,229,134$ 10,102,819$ -$ -$
Other operating revenues 3,323,656 554,237 - -
Operating ex penses (19,654,737) (7,437,237) - -
Deprec iation (2,134,453) (3,466,848) - -
Non-operating revenues (expenses )(4,254) (822,014) 766,405 (3,768)
Inc ome (loss) before
capital c ontributions 1,759,346 (1,069,043) 776,405 (3,768)
Capital contributions, net 337,805 656,251 - -
CHANGE IN NET POSITION 2,097,151 (412,792) 776,405 (3,768)
Net Position, Beginning 53,643,210 65,693,242 (27,437,729) (9,662,782)
NET POSITION, ENDING 55,740,361$ 65,280,450$ (26,661,324)$ (9,666,550)$
Ye a r e nde d De ce mbe r 31, 2013
Gra y’s Old
Ele ctric W a ter Crossing Gre e nw ood
Operating Revenues
Sales to consumers 20,939,839$ 9,870,531$ -$ -$
Other operating revenues 3,273,535 1,189,975 - -
Operating ex penses (20,106,635) (7,363,275) - -
Deprec iation (1,989,264) (3,438,113) - -
Non-operating revenues (expenses )4,886 (1,204,822) 709,333 187,485
Inc ome (loss) before
capital c ontributions 2,122,361 (945,704) 709,333 187,485
Capital contributions, net 269,548 555,166 - -
CHANGE IN NET POSITION 2,391,909 (390,538) 709,333 187,485
Net Position, Beginning 51,251,301 66,083,780 (28,147,062) (9,850,267)
NET POSITION, ENDING 53,643,210$ 65,693,242$ (27,437,729)$ (9,662,782)$
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCI AL STATEMENTS
December 31, 2014 and 2013
Page 44
NOTE 11 – SEGMENT DISCLOSURE (Continued)
STATEMENTS OF CASH FLOWS
Ye a r e nde d De ce mbe r 31, 2014
Gra y’s Old
Ele ctric W a ter Crossing Gre e nw ood
NET CASH PROVIDED BY (USED IN)
Operating activities 3,793,204$ 3,273,821$ -$ -$
Nonc apital financing activities (863,150) - - -
Capital and related financ ing ac tivities (2,449,929) (4,177,909) (133,405) (1,253,164)
Investing ac tivities 64,574 335,260 6,659 1,362
544,699 (568,828) (126,746) (1,251,802)
Cash and Cash Equivalents , Beginning 12,781,050 13,636,718 3,485,853 1,693,491
CASH AND CASH
EQUIVALENTS, ENDING 13,325,749$ 13,067,890$ 3,359,107$ 441,689$
Ye a r e nde d De ce mbe r 31, 2013
Gra y’s Old
Ele ctric W a ter Crossing Gre e nw ood
NET CASH PROVIDED BY (USED IN)
Operating activities 5,097,721$ 3,923,485$ -$ -$
Nonc apital financing activities (4,117,775) - - -
Capital and related financ ing ac tivities (2,839,536) (4,771,482) (39,067) 4,008
Investing ac tivities 42,853 332,552 7,153 5,865
(1,816,737) (515,445) (31,914) 9,873
Cash and Cash Equivalents , Beginning 14,597,787 14,152,163 3,517,767 1,683,618
CASH AND CASH
EQUIVALENTS, ENDING 12,781,050$ 13,636,718$ 3,485,853$ 1,693,491$
cash e quiva le nts
Ne t incre a se (de cre ase ) in ca sh a nd
Ne t incre a se (de cre ase ) in ca sh a nd
cash e quiva le nts
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCI AL STATEMENTS
December 31, 2014 and 2013
Page 45
NOTE 12 – MARTIS VALLEY GROUNDW ATER STUDY
The Martis Valley aquifer underlies about 35,000 acres in both Placer and Nevada counties, near the
Town of Truckee. It is the main water 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 Communit y Services District (NCSD) and
Placer County W ater Agency (PCW A) are the three primary public water agencies that depend on the
Martis Valley Basin for their water supply. Together, the TDPUD, NCSD and PCW A (Partnership
Agencies) partnered to update a groundwater management plan and to help develop a groundwater
model for the Martis Valley basin.
The Martis Valley Groundwater Management Plan (GMP) has been updated to reflect current water
resources planning in the region and to incorporate the latest info rmation and understandings of the
underlying groundwater basin. This collaborative effort will provide the guidance necessary to align
groundwater policy. In addition to the updated groundwater management plan, a computer model of the
groundwater basin is being developed, which will incorporate available data and enhance understanding
of the groundwater basin. A climate change modeling com ponent will be part of the final groundwater
model.
Partner agencies each adopted the Groundwater Managem ent Plan (GM P) in February 2012 and the
model is expected to be completed by mid-2015. The total cost of the project is approximately
$1,000,000, which includes federal funding of approxim ately $500,000 from the U.S. Bureau of
Reclamation and $250,000 from the Lawrenc e Livermore National Laboratory; and contributions of
$150,000 from TDPUD and $100,000 from the other members of the Partnership Agencies.
NOTE 13 – CLAIMS AND JUDGMENTS
From time to time, the utility is party to various pending claim s and legal proceedi ngs. Although the
outcom e of such matters cannot be forecasted with certainty, it is the opinion of management and the
utility's legal counsel that the likelihood is remote that any such claims or proceedings will have a m aterial
adverse effect on the utility's financial position or results of operations.
NOTE 14 – RISK MANAGEMENT
The utility is exposed to various risks of loss related to torts; theft of, damage to, or destruction of assets;
errors and omissions; workers compensation; and health care of its employees. These risks are covered
through the purchase of commercial insurance, with minim al deductibles. Settled claims have not
exceeded the commercial liability in any of the past three years. There were no significant reductions in
coverage compared to the prior year.
T H I S P A G E I S I N T E N T I O N A L L Y L E F T B L A N K
SUPPLEMENTAL INFORMATION
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
SUPPLEM ENT ARY INFORM ATION
December 31, 2014
Page 48
CONSOLIDATING STATEMENT OF NET POSITION
As of De ce m be r 31, 2014
Electric Operations Water Operations Gray's Crossing Old Greenw ood Eliminations Totals
ASSETS
CURRENT ASSETS
Funds
Operating 5,369,496$ 2,535,274$ 31,084$ 441,689$ -$ 8,377,543$
Designated 6,838,809 5,608,434 - - - 12,447,243
Restric ted 1,111,622 4,918,439 3,328,023 - - 9,358,084
Total Funds 13,319,927 13,062,147 3,359,107 441,689 - 30,182,870
Accounts receivable, net 1,229,967 526,945 4,450,916 718,710 - 6,926,538
Unbilled revenues 1,786,334 626,441 - - - 2,412,775
Accrued interes t rec eiv able 7,803 70,661 13,163 7,460 - 99,087
Materials and s upplies 470,550 164,267 - - - 634,817
Prepaid ex penses 157,141 97,141 - - - 254,282
Other 39,824 39,411 - - - 79,235
Total Current A s sets 17,011,546 14,587,013 7,823,186 1,167,859 - 40,589,604
NON-CURRENT ASSETS
Other Non-Current A ssets
Restric ted f unds - 1,937,917 - - - 1,937,917
Special as s essments receivable - 5,012,321 - - - 5,012,321
A mortiz ed pension obligation 6,177,000 - - - - 6,177,000
Other 1,060,085 - - - - 1,060,085
Total Other Non-Current Assets 7,237,085 6,950,238 - - - 14,187,323
CAPITAL ASSETS
Utility plant 60,469,638 106,920,982 - - - 167,390,620
A cc umulated depreciation (20,034,451) (34,441,296) - - - (54,475,747)
Construction w ork in progress 2,949,076 3,458,513 - - - 6,407,589
Total capital assets 43,384,263 75,938,199 - - - 119,322,462
TOTAL ASSETS 67,632,894$ 97,475,450$ 7,823,186$ 1,167,859$ -$ 174,099,389$
Component Units
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
SUPPLEM ENT ARY INFORM ATION
December 31, 2014
Page 49
Electric Operations Water Operations Gray's Crossing Old Greenw ood Eliminations Totals
NET POSITION AND LIABILITIES
CURRENT LIABILITIES
Other liabilities
A cc ounts payable 2,537,114$ 48,166$ -$ -$ -$ 2,585,280$
Customer deposits 344,743 76,606 - - - 421,349
Other 391,993 287,335 - - - 679,328
Total other liabilities 3,273,850 412,107 - - - 3,685,957
Current liabilities payable f rom res tricted assets:
Current portion of long-term debt 602,318 2,127,512 475,000 253,900 - 3,458,730
A cc rued interest pay able 1,673 230,617 592,442 144,132 - 968,864
Total Current Liabilities Pay able f rom Restricted A s s ets 603,991 2,358,129 1,067,442 398,032 - 4,427,594
Total Current Liabilities 3,877,841 2,770,236 1,067,442 398,032 - 8,113,551
NON-CURRENT LIABILITIES
Long-term debt, net of discounts and premiums 5,584,000 28,395,007 32,132,487 10,090,500 - 76,201,994
Installment loans 78,339 595,347 - - - 673,686
Unearned revenues 2,352,353 434,410 1,284,581 345,877 - 4,417,221
Total non-current liabilities 8,014,692 29,424,764 33,417,068 10,436,377 - 81,292,901
Total Liabilities 11,892,533 32,195,000 34,484,510 10,834,409 - 89,406,452
NET POSITION
Inves ted in capital assets , net of related debt 43,374,945 45,415,680 (32,607,487) (10,344,400) - 45,838,738
Restricted f or debt service 1,109,740 6,659,078 2,752,843 - - 10,521,661
Unres tricted 11,255,676 13,205,692 3,193,320 677,850 - 28,332,538
Total Net Position 55,740,361 65,280,450 (26,661,324) (9,666,550) - 84,692,937
TOTAL NET POSITION AND LIABILITIES 67,632,894$ 97,475,450$ 7,823,186$ 1,167,859$ -$ 174,099,389$
Component Units
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
SUPPLEM ENT ARY INFORM ATION
December 31, 2014
Page 50
CONSOLIDATING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
For the Ye ar Ende d De ce m be r 31, 2014
Electric Operations Water Operations Gray's Cros s ing Old Greenw ood Eliminations Totals
OPERATING REVENUES
Sales to c ustomers 20,229,134$ 10,102,819$ -$ -$ -$ 30,331,953$
Interdepartmental s ales 1,198,015 2,063 - - (1,200,078) -
Standby f ees 23,860 150,390 - - - 174,250
Cap and trade proceeds 836,193 - - - - 836,193
Other 1,265,588 401,784 - - (381,172) 1,286,200
Total Operating Revenues 23,552,790 10,657,056 - - (1,581,250) 32,628,596
OPERATING EXPENSES
Purc hased pow er 11,414,498 - - - - 11,414,498
Operations and maintenance 3,945,325 4,508,867 - - (1,200,078) 7,254,114
Consumer s ervices 1,712,869 813,864 - - - 2,526,733
Administration and general 2,582,045 2,114,506 - - (381,172) 4,315,379
Depreciation 2,134,453 3,466,848 - - - 5,601,301
Total Operating Expenses 21,789,190 10,904,085 - - (1,581,250) 31,112,025
Operating Income 1,763,600 (247,029) - - - 1,516,571
NON-OPERATING REV ENUE (EXPENSES)
Special tax rev enue - - 2,549,311 806,741 - 3,356,052
Inv es tment income 92,327 404,198 9,470 4,967 - 510,962
Interest expense (4,286) (1,256,083) (1,789,878) (518,483) - (3,568,730)
Amortization - 31,501 (5,204) - - 26,297
Other non-operating revenues - - 59,146 920 - 60,066
Other non-operating expenses - - (46,440) (297,913) - (344,353)
Gain (los s ) on dis position of as s ets (92,295) (1,630) - - - (93,925)
Total Non-Operating Expenses (4,254) (822,014) 776,405 (3,768) - (53,631)
Income Bef ore Contributions 1,759,346 (1,069,043) 776,405 (3,768) - 1,462,940
CAPITAL CONTRIBUTIONS, ne t 337,805 656,251 - - - 994,056
CHANGE IN NET POSITION 2,097,151 (412,792) 776,405 (3,768) - 2,456,996
NET POSITION - Beginning of Year 53,643,210 65,693,242 (27,437,729) (9,662,782) - 82,235,941
NET POSITION - END OF YEAR 55,740,361$ 65,280,450$ (26,661,324)$ (9,666,550)$ -$ 84,692,937$
Component Units
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
SUPPLEM ENT ARY INFORM ATION
December 31, 2014
Page 51
CONSOLIDATING STATEMENT OF CASH
STATEMENTS OF CASH FLOW S
For the Year Ended December 31, 2014
Electric Operations Water Operations Gray's Crossing Old Greenw ood Eliminations Total
CASH FLOWS FROM OPERATING ACTIV ITIES
Rec eived f rom customers 23,790,945$ 10,683,110$ -$ -$ (1,581,250)$ 32,892,805$
Paid to suppliers f or goods and services (16,403,194) (5,282,461) - - 1,581,250 (20,104,405)
Paid to employees f or services (3,594,547) (2,126,828) - - - (5,721,375)
Net Cash Flow s f rom Operating A ctivities 3,793,204 3,273,821 - - - 7,067,025
CASH FLOWS FROM NONCAPITAL FINANCING ACTIV ITIES
Principal pay ments on long-term debt (534,000) - - - - (534,000)
Interest pay ments on long-term debt (329,150) - - - - (329,150)
Net Cash Flow s f rom Nonc apital Financing Ac tivities (863,150) - - - - (863,150)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIV ITIES
Capital expenditures f or utility plant (3,195,640) (2,166,393) - - - (5,362,033)
Cos t of disposal of property net of salv age (188,564) (2,618) - - - (191,182)
Capital contributions , c onnection and f acility f ees 618,491 682,147 - - - 1,300,638
Spec ial assessments receipts - 639,627 - - - 639,627
Spec ial tax receipts - - 2,072,749 616,634 - 2,689,383
Debt issuanc e cos ts - - - 257,863 - 257,863
Proceeds f rom ref unding - - - 10,231,837 - 10,231,837
Principal pay ments on long-term debt (8,910) (2,090,136) (410,000) (11,755,300) - (14,264,346)
Interest pay ments on long-term debt 324,694 (1,240,536) (1,796,154) (604,198) - (3,316,194)
Cash Flow s From Capital and Related Financing A c tiv ities (2,449,929) (4,177,909) (133,405) (1,253,164) - (8,014,407)
CASH FLOWS FROM INV ESTING ACTIV ITIES
Interest income received 64,574 335,260 6,659 1,362 - 407,855
Cash Flow s f rom Inves ting Ac tivities 64,574 335,260 6,659 1,362 - 407,855
Ne t Change in Cas h and Cas h Equivale nts 544,699 (568,828) (126,746) (1,251,802) - (1,402,677)
CA SH A ND CASH EQUIV A LENTS – Beginning of Y ear 12,781,050 13,636,718 3,485,853 1,693,491 - 31,597,112
CASH AND CASH EQUIV ALENTS – END OF YEAR 13,325,749$ 13,067,890$ 3,359,107$ 441,689$ -$ 30,194,435$
NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES
During 2014: $500 and $0 of c apital as sets w ere c ontributed to the elec tric and w ater utilities , respectively , by c ustomers and developers.
$497,431 and $816,500 of prior period unearned revenues w ere recogniz ed by the electric and w ater utilities, respectively .
$1,264,731 and $460,864 of prior period unearned rev enues w ere rec ognized by the c omponent units, Gray's Cros sing and Old Greenw ood, respectively.
Component Units
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
SUPPLEM ENT ARY INFORM ATION
December 31, 2014
Page 52
Electric Operations Water Operations Gray 's Crossing Old Greenw ood Eliminations Total
RECONCILIATION OF OPERATING INCOM E TO NET CASH
FLOWS FROM OPERATING ACTIV ITIES
Operating income 1,763,600$ (247,029)$ -$ -$ -$ 1,516,571$
Noncas h items included in operating income
Deprec iation and amortization 2,134,453 3,466,848 - - - 5,601,301
Deprec iation c harged to other accounts 309,462 140,124 - - - 449,586
Changes in ass ets and liabilities
A ccounts receiv able and unbilled rev enues 173,721 14,675 - - - 188,396
Materials and supplies (49,902) (31,900) - - - (81,802)
Prepaid ex penses and other current assets 42,447 (13,141) - - - 29,306
A ccounts pay able (692,374) (240) - - - (692,614)
Customer deposits 64,434 11,381 - - - 75,815
Other current liabilities 47,363 (66,897) - - - (19,534)
NET CASH FLOWS FROM OPERATING ACTIVITIES 3,793,204$ 3,273,821$ -$ -$ -$ 7,067,025$
RECONCILIATION OF CASH AND CASH EQUIV ALENTS
TO THE BALANCE SHEET
Operating 5,369,496$ 2,535,274$ 31,084$ 441,689$ -$ 8,377,543$
Des ignated 6,838,809 5,608,434 - - - 12,447,243
Res tricted bond f unds - current 1,111,622 4,918,439 3,328,023 - - 9,358,084
Res tricted bond f unds - non-c urrent - 1,937,917 - - - 1,937,917
Total Cas h and Inv estments 13,319,927 15,000,064 3,359,107 441,689 - 32,120,787
Les s : Long-term investments - (1,698,880) - - - (1,698,880)
Mark to market adjustment 5,822 (233,294) - - - (227,472)
TOTAL CASH AND CASH EQUIV ALENTS 13,325,749$ 13,067,890$ 3,359,107$ 441,689$ -$ 30,194,435$
Component Units
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
REQUIRED SUPPLEMENTARY INFORM ATION
December 31, 2014
Page 53
POSITION OF POST EMPLOYMENT BENEFIT PLANS
Accrue d Actua ria l Unfunde d Funde d Annua l
Va lua ti on Lia biliti e s Va lue of Li a bilitie s Ra tio Cove re d UL a s a %
Da te (AL)Asse ts (AVA)(UL)(AVA/AL)Pa yrol l of Pa yroll
06/30/2011 -$ -$ -$ 0.0%-$ 0.0%
06/30/2012 -$ -$ -$ 0.0%-$ 0.0%
06/30/2013 1,063,294$ 1,426,597$ (363,303)$ 134.2%48,743,702$ -0.7%
Accrue d Actua ria l Unfunde d Funde d Annua l
Va lua ti on Lia biliti e s Va lue of Li a bilitie s Ra tio Cove re d UL a s a %
Da te (AL)Asse ts (AVA)(UL)(AVA/AL)Pa yrol l of Pa yroll
06/30/2011 2,486,708,579$ 1,981,073,089$ 505,635,490$ 79.7%427,300,410$ 118.3%
06/30/2012 2,680,181,441$ 2,178,799,790$ 501,381,651$ 81.3%417,600,034$ 120.1%
06/30/2013 2,858,732,321$ 2,218,982,123$ 639,750,198$ 77.6%406,940,099$ 157.2%
Sche dule of Pe nsion Pla n Funding Progre ss - 2% @ 62
Sche dule of Pe nsion Pl a n Funding Progre ss - 2.7% @ 55
Accrue d Actua ria l Unfunde d Funde d Annua l
Va lua tion Lia bilitie s Va lue of Lia bi litie s Ra tio Cove re d UL a s a %
Da te *(AL)Asse ts (AVA)(UL)(AVA/AL)Pa yrol l of Pa yroll
01/01/2006 2,328,500$ -$ 2,328,500$ 0.0%5,542,800$ 42.0%
01/01/2007 1,369,600$ 198,800$ 1,170,800$ 14.5%4,925,600$ 23.8%
01/01/2009 1,748,000$ 230,900$ 1,517,100$ 13.2%5,276,400$ 28.8%
01/01/2011 2,501,800$ 645,700$ 1,856,100$ 25.8%6,307,400$ 29.4%
07/01/2011 2,657,000$ 661,400$ 1,995,600$ 24.9%6,226,000$ 32.1%
07/01/2013 2,960,600$ 1,079,900$ 1,880,700$ 36.5%6,409,000$ 29.3%
*Retire Health Plan funding began in 2007. Valuations are required onc e every two years . The valuation
date changed to July 1 in c omplianc e with GASB Statement No. 57.
Re tire e He a lth Pla n Funding History