HomeMy WebLinkAbout14-1 TDPUD Consolidated FS 2015 Draft for Board Packet
TRUCKEE DONNER
PUBLIC UTILITY DISTRICT
CONSOLIDATED FINANCIAL STATEMENTS
Including Independent Auditor’s Report
December 31, 2015 and 2014
TABLE OF CONTENTS
Report of Independent Auditors ……………………………………………………………………………………1
Management’s Discussion and Analysis…………………………………………………………………………..3
Financial Statements………………………………………………………………………………………………...9
Consolidated Statements 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
Required Supplementary Information…………………………………………………………………………….52
Cost Sharing Defined Benefit Pension Plans………………………………………………………….53
Position of Post Employment Benefit Plans……………………………………………………………56
Supplementary Information…….………………………………………………………………………………….57
Consolidating Statement of Net Position……………………………………………………………….58
Consolidating Statements of Revenues, Expenses and Changes in Net Position...…………..….60
Consolidating Statements of Cash Flows……………………..……………………………………….61
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, 2015
and 2014, and the related consolidated statements of revenues, expenses and changes in net position, and
cash flows for the years then ended, and the related notes to the consolidated financial statements.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated financial statements
in accordance with accounting principles generally accepted in the United States of America; this includes the
design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of
consolidated financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these 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 we have 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, 2015 and 2014, 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.
DRAFT
2
REPORT OF INDEPENDENT AUDITORS (continued)
Emphasis of Matter
As discussed in Note 15 to the consolidated financial statements, the District adopted the provisions of GASB
Statement No. 68, Accounting and Financial Reporting for Pensions—an amendment of GASB Statement No. 27,
and GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date
– an amendment of GASB Statement No. 68, effective January 1, 2014. The beginning‐of‐year net position has
been restated for this change. Our opinion is not modified with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that management’s
discussion and analysis, the schedule of the District’s proportionate share of the net pension liability, the
schedule of contributions, and schedule of position of other post‐employment benefit plan, be presented to
supplement the consolidated financial statements. Such information, although not a part of the consolidated
financial statements, is required by the Governmental Accounting Standards Board who considers it to be an
essential part of financial reporting for placing the consolidated financial statements in an appropriate
operational, economic, or historical context. We have applied certain limited procedures in the required
supplementary information in accordance with auditing standards generally accepted in the United States of
America, which consisted of inquiries of management about the methods of preparing the information and
comparing the information for consistency with management’s responses to our inquiries, the consolidated
financial statements, and other knowledge we obtained during our audit of the consolidated financial
statements. We do not express an opinion or provide any assurance on the information because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Supplementary Information
Our audits were conducted for the purpose of forming opinions on the consolidated financial statements that
collectively comprise the District’s consolidated 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, 2015 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
June 1, 2016 DRAFT
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
MANAGEMENT’S DISCUSSION AND ANALYSIS
December 31, 2015 and 2014
See accompanying auditors’ report.
Page 3
MANAGEMENT’S DISCUSSION AND ANALYSIS
As financial management of the Truckee Donner Public Utility District (the District), we offer readers of
these financial statements this narrative overview and analysis of the financial activities of the District for
the years ended December 31, 2015 and 2014. This discussion and analysis is designed to assist the
reader in focusing on the significant financial topics, provide an overview of the District’s financial activity
and identify changes in the District’s financial position.
We encourage readers to consider the information presented here in conjunction with that presented within
the basic financial statements. The reader should take time to read and evaluate all sections of this report,
including the footnotes and other supplementary information that is provided, in addition to this
management discussion and analysis.
FINANCIAL HIGHLIGHTS
The District’s current assets decreased $3.0 million (7%) from $40.6 million at December 31, 2014 to $37.6
million at December 31, 2015, predominantly due to accelerated capital improvements for the Water Utility
in addition to decreasing cash reserves associated with 2006 Certificates of Participation (COP) refunding
bonds. Upon refunding, a reserve was no longer required as part of the refunding agreement. The majority
of the existing reserve was then applied to reduce the principal of the refunding bonds (See note 5).
The District’s total net position increased $3.9 million (5.5%) from $70.6 million at December 31, 2014, to
$74.5 million at December 31, 2015. The increase was primarily due to a $3.1 million increase related to
capital assets. The District’s December 31, 2014 total net position decreased $14.3 million due to a
restatement from $84.9 million to $70.6 million as required per first year implementation to comply with
GASB statement 68 for pension accounting. (See note 9).
Operating revenues increased $0.3 million (1%) from $32.6 million in 2014 to $32.9 million in 2015. Electric
revenues increased only 0.5% in 2015 as the District experienced another mild winter. Water revenues
increased only 1.2%; there was a 3% water rate increase in 2015 that offset reduced revenue from the state
mandated drought regulations.
Compared to 2014, the overall operating expenses of the District remained nearly flat at $30.9 million in
2014 and 2015 respectively.
Non-operating revenues decreased $0.2 million from $3.9 million in 2014 to $3.7 million in 2015 primarily
due to decreased investment income from the removal of the reserve on the 2006 COP refunding
referenced above. Non-operating expenses decreased $0.6 million from just under $3.9 million in 2014 to
$3.3 million in 2015 primarily due to decreased interest expense also primarily attributed to the 2006 COP
refunding.
In August 2015, the District refunded (refinanced) the original 2006 COP bonds issued for infrastructure
improvements for the Water Utility by issuing 2015 COP bonds through a public offering, saving the District
$2.3 million over the term of the bonds. No other new debt was issued in 2015.
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
MANAGEMENT’S DISCUSSION AND ANALYSIS
December 31, 2015 and 2014
See accompanying 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 America
(GAAP). Under this basis of accounting, revenues are recognized in the period in which they are earned
and expenses are recognized in the period in which they are incurred, regardless of the timing of related
cash flows. These statements offer short-term and long-term financial information about the District’s
activities.
The reporting entity consists of the primary government, which provides two utilities (electric utility and
water utility), and the blended component units. Further details about the component units are provided in
note 1(A).
The Consolidated Statement of Net Position presents information on all of the District’s assets and
liabilities, and provides information about the nature and amounts of investments in resources (assets) and
the obligations to District creditors (liabilities). It also provides the basis for computing rate of return,
evaluating the capital structure of the District, and assessing the liquidity and financial flexibility of the
District.
All of the current year’s revenues and expenses are reported in the Consolidated Statements of
Revenues, Expenses, and Changes in Net Position. This statement provides a measurement of the
District’s operations over the past year and can be used to determine whether the District has successfully
recovered all its costs through its rates and other charges.
The Consolidated Statement of Cash Flows provides relevant information about the District’s cash
receipts and cash payments during the reporting period. This statement reports cash receipts and cash
payments resulting from operating, non-capital financing, capital and related financing, and investing
activities. When used with related disclosures and information in the other financial statements, the
statement of cash flows should provide insight into (a) the District’s ability to generate future net cash flows,
(b) the District’s ability to meet its obligations as they come due, (c) the District’s needs for external
financing, (d) the reasons for differences between operating income and associated cash receipts and
payments, and (e) the effects on the District’s financial position of both its cash and its non-cash investing,
capital, and financing transactions during the period. The changes in cash balances are an important
indicator of the District’s liquidity and financial condition.
The Notes to the Financial Statements provide additional information that is essential to a full
understanding of the data provided in the basic financial statements. This includes but is not limited to,
significant accounting policies, significant financial statement balances and activities, material risks,
commitments and obligations, and subsequent events, as applicable.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
MANAGEMENT’S DISCUSSION AND ANALYSIS
December 31, 2015 and 2014
See accompanying auditors’ report.
Page 5
DISTRICT HIGHLIGHTS
The condensed financial statements at December 31, 2015, 2014, and 2013 are presented below.
In 2015 the District implemented Governmental Accounting Standards Board (GASB) Statement of
Governmental Accounting Standards (SGAS) No. 68 “Accounting and Financial Reporting for Pensions –
An Amendment of GASB Statement No. 27” (GASB No. 68). The primary objective of GASB No. 68 is to
improve accounting and financial reporting for pensions. Under statement No. 68, the District is required
to report the net pension liability and deferred inflows and outflows in the statement of Net Position. At
December 31, 2015 and 2014, the Net Pension Liability was $8.0 million and $6.2 million respectively. The
District’s December 31, 2014 total net position decreased $14.3 million for the restatement required for this
new standard in pension accounting. (See note 9 and 15). Additionally in 2015, the District’s current assets
decreased $3.0 million, predominantly due to funding capital improvements for the Water Utility and
decreased cash reserve associated with the 2006 COPs refunding (See note 5). A reserve requirement
was not required as part of the refunding agreement. The existing reserve was applied toward the purchase
Increase
2014 (Decrease)
2015 (as restated)2013 2015 - 2014
Current assets 37,628,590$ 40,589,604$ 41,785,389$ (2,961,014)$
Non-current assets:
Capital assets, net 122,416,668 119,322,462 119,913,559 3,094,206
Restricted assets 1,900,036 1,937,917 1,890,358 (37,881)
Amortized pension obligation - - 6,716,354 -
Other long-term assets 5,361,643 6,072,406 6,274,267 (710,763)
Deferred outflows of resources 3,274,459 500,632 - 2,773,827
TOTAL ASSETS 170,581,396$ 168,423,021$ 176,579,927$ 2,158,375$
RESOURCES AND NET POSITION
Current liabilities 8,845,354$ 8,113,551$ 8,684,955$ 731,803$
Non-current Liabilities
Long-term debt, net of current portion 71,992,962 76,875,680 81,453,756 (4,882,718)
Net pension liability 8,013,400 6,210,985 - 1,802,415
Unearned revenues 4,855,055 4,417,221 4,205,275 437,834
Total Liabilities 93,706,771 95,617,437 94,343,986 (1,910,666)
Deferred inflows of resources
Pension 2,341,737 2,168,674 - 173,063
Total Deferred Inflows of Resources 2,341,737 2,168,674 - 173,063
NET POSITION
Net investment in capital assets 46,387,317 39,661,738 42,944,031 6,725,579
Restricted for debt service 8,569,701 10,521,661 11,096,122 (1,951,960)
Unrestricted 19,575,870 20,453,511 28,195,788 (877,641)
Total Net Position 74,532,888 70,636,910 82,235,941 3,895,978
TOTAL LIABILITIES, DEFERRED
INFLOWS OF RESOURCES
AND NET POSITION 170,581,396$ 168,423,021$ 176,579,927$ 2,158,375$
CONSOLIDATED STATEMENT OF NET POSITION
ASSETS
LIABILITIES, DEFERRED INFLOWS OF
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
MANAGEMENT’S DISCUSSION AND ANALYSIS
December 31, 2015 and 2014
See accompanying auditors’ report.
Page 6
of a surety bond and then applied toward reducing the principal of the refunding bonds. Net long-term debt
decreased $4.9 million, due to the annual reduction of existing debt and the reduction of the 2006 COP
bond due to the refunding. (See notes 5). No other new debt was issued in 2015 or 2014. The District’s
total net position increased $3.9 million, substantially due to increased investment in capital assets for the
Donner Lake substation rebuild, pipeline replacement projects, the reliability enhancement of the District’s
computer servers, and the residential water meter installation. “Net investment in capital assets,” consist
of capital assets, net of accumulated depreciation, reduced by the amount of outstanding indebtedness
attributable to the acquisition, construction, or improvement of those assets. When there are significant
unspent bond proceeds, the portion of related debt is not included in the calculation of this item. Instead,
that portion of the debt is included in the net position restricted for capital projects component as an offset
to the related unspent bond proceeds.
“Restricted for debt service” represents amounts restricted for payments related to outstanding revenue
bonds.
The District had income before capital contributions of $2.5 million, $1.7 million, and $2.1 million for the
years ended December 31, 2015, 2014, and 2013, respectively. The District’s December 31, 2014 income
before capital contributions increased $0.2 million due to the required restatement for compliance with
GASB 68 first year implementation for pension accounting. 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, 2015, 2014, and 2013.
Total operating revenues were $33.0 million in 2015, $32.6 million in 2014, and $33.7 million in 2013. In
2015, electric revenues remained flat, increasing only 0.5% due to continued mild winter weather. Water
revenues increased 1.2%; there was a 3% rate increase in 2015 that offset reduced revenue from the state
mandated drought regulations.
Increase
2014 (Decrease)
2015 (as restated)2013 2015 - 2014
Sales to consumers 30,818,856$ 30,331,953$ 30,810,370$ 486,903$
Other operating revenues 2,158,141 2,296,643 2,852,441 (138,502)
Total Operating Revenues 32,976,997 32,628,596 33,662,811 348,401
Operating expenses 30,892,366 30,879,299 31,286,218 13,067
Operating Income (Loss)2,084,631 1,749,297 2,376,593 335,334
Non-operating revenues (expenses)380,837 (53,631) (303,118) 434,468
Income (loss) before
capital contributions 2,465,468 1,695,666 2,073,475 769,802
Capital contributions, net 1,430,510 994,056 824,714 436,454
Change in net position 3,895,978 2,689,722 2,898,189 1,206,256
Net Position, Beginning of Year 70,636,910 82,235,941 79,337,752 (11,599,031)
Less: Restatement for change in
accounting principal - (14,288,753) - -
Net Position, Beginning of Year, as adjusted 70,636,910 67,947,188 79,337,752 (11,599,031)
NET POSITION, END OF YEAR 74,532,888$ 70,636,910$ 82,235,941$ (10,392,775)$
CONDENSED REVENUES, EXPENSES, AND CHANGES IN NET POSITION
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
MANAGEMENT’S DISCUSSION AND ANALYSIS
December 31, 2015 and 2014
See accompanying auditors’ report.
Page 7
Total operating expenses were $30.9 million in 2015, $30.9 million in 2014, and $31.3 million in 2013.
Compared to 2014, the overall operating expenses of the District remained nearly flat.
Non-operating revenues exceeded non-operating expenses in 2015 by $0.4 million compared to 2014. This
change is primarily attributed to decreased investment income offset by decreased interest expense
primarily related to the refunding of the 2006 COPs.
CAPITAL ASSETS
As of December 31, 2015, 2014, and 2013, the District had $122.4 million, $119.3 million, and $119.9
million, respectively, invested in a variety of capital assets, net of accumulated depreciation. A summary of
capital assets is reflected in the following schedule.
Net capital assets (additions, less retirements and depreciation) increased in 2015 $3.1 million, after a slight
decrease in 2014. This increase is primarily attributed to the Water Utility’s replacement of transmission
and distribution water lines in addition to ongoing replacement of the antiquated SCADA communication
system across the District.
LONG-TERM DEBT
Long-term debt includes revenue bonds and notes payable. At December 31, 2015, 2014, and 2013, the
District had $72.0 million, $76.9 million, and $81.4 million, respectively, in long-term debt outstanding, net
current maturities.
In August 2015, the 2006 COP bonds issued for the infrastructure improvements for the water utility were
partially refunded (refinanced) by issuing 2015 bonds in a public offering, saving the District $2.3 million
over the term of the bonds. The 2015 bonds did not require a reserve fund. Therefore the reserve fund of
the 2006 COP bonds was utilized to reduce the principal and secure a surety bond. No other new debt was
issued in 2015.
CONTACTING THE DISTRICT’S FINANCIAL MANAGEMENT
The financial report is designed to provide readers with a general overview of the District’s finances and to
demonstrate the District’s accountability for the money it receives. If you have questions about this report
or need additional financial information, contact:
Truckee Donner Public Utility District
Attn: Treasurer
11570 Donner Pass Road
Truckee, CA 96161
2015 2014 2013
Electric distribution facilities 54,721,615$ 51,524,863$ 49,307,043$
Water distribution facilities 107,005,578 103,049,122 101,559,248
General plant 13,887,881 12,816,635 12,613,092
Sub-totals 175,615,074 167,390,620 163,479,383
Less: Accumulated depreciation (58,042,448) (54,475,747) (50,015,511)
Net of accumulated depreciation 117,572,626 112,914,873 113,463,872
Construction work in progress 4,844,042 6,407,589 6,449,687
Net capital assets 122,416,668$ 119,322,462$ 119,913,559$
CAPITAL ASSETS
THIS PAGE IS INTENTIONALLY LEFT BLANK
FINANCIAL STATEMENTS
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
CONSOLIDATED STATEMENTS OF NET POSITION
December 31, 2015 and 2014
The accompanying notes are an integral part of these consolidated financial statements.
Page 10
ASSETS 2014
2015 as restated
CURRENT ASSETS
Funds
Operating 7,134,053$ 8,377,543$
Designated 11,914,287 12,447,243
Restricted 7,098,010 9,358,084
Total Funds 26,146,350 30,182,870
Accounts receivable, net 7,460,443 6,926,538
Unbilled revenues 2,766,757 2,412,775
Accrued interest receivable 92,981 99,087
Materials and supplies 639,442 634,817
Prepaid expenses 436,902 254,282
Other 85,715 79,235
Total Current Assets 37,628,590 40,589,604
NON-CURRENT ASSETS
Other Non-Current Assets
Restricted funds 1,900,036 1,937,917
Special assessments receivable 4,363,790 5,012,321
Other 997,853 1,060,085
Total Other Non-Current Assets 7,261,679 8,010,323
DEFERRED OUTFLOWS OF RESOURCES
Pension 2,632,077 500,632
Unamortized loss on refunding 642,382 -0-
Total Deferred Outflows of Resources 3,274,459 500,632
CAPITAL ASSETS
Utility plant 175,615,074 167,390,620
Accumulated depreciation (58,042,448) (54,475,747)
Construction work in progress 4,844,042 6,407,589
Total Capital Assets 122,416,668 119,322,462
TOTAL ASSETS 170,581,396$ 168,423,021$
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
CONSOLIDATED STATEMENTS OF NET POSITION
December 31, 2015 and 2014
The accompanying notes are an integral part of these consolidated financial statements.
Page 11
NET POSITION AND LIABILITIES 20142015as restated
CURRENT LIABILITIES
Other Liabilities
Accounts payable 2,983,101$ 2,585,280$
Customer deposits 423,502 421,349
Other 766,699 679,328
Total Other Liabilities 4,173,302 3,685,957
Current Liabilities Payable From Restricted Assets
Current portion of long-term debt 3,754,919 3,458,730
Accrued interest payable 917,133 968,864
Total Current Liabilities Payable from Restricted Assets 4,672,052 4,427,594
Total Current Liabilities 8,845,354 8,113,551
NON-CURRENT LIABILITIES
Long-term debt, net of discounts and premiums 71,618,432 76,201,994
Net pension liability 8,013,400 6,210,985
Installment loans 374,530 673,686
Unearned revenues 4,855,055 4,417,221
Total Non-Current Liabilities 84,861,417 87,503,886
Total Liabilities 93,706,771 95,617,437
DEFERRED INFLOWS OF RESOURCES
Pension 2,341,737 2,168,674
Total Deferred Inflows of Resources 2,341,737 2,168,674
NET POSITION
Net investment in capital assets 46,387,317 39,661,738
Restricted for debt service 8,569,701 10,521,661
Unrestricted 19,575,870 20,453,511
Total Net Position 74,532,888 70,636,910
TOTAL NET POSITION AND LIABILITIES 170,581,396$ 168,423,021$
THIS PAGE IS INTENTIONALLY LEFT BLANK
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
CONSOLIDATED STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
December 31, 2015 and 2014
The accompanying notes are an integral part of these consolidated financial statements.
Page 13
2014
2015 as restated
OPERATING REVENUES
Sales to customers 30,818,856$ 30,331,953$
Standby fees 169,010 174,250
Cap and trade proceeds 965,402 836,193
Other 1,023,729 1,286,200
Total Operating Revenues 32,976,997 32,628,596
OPERATING EXPENSES
Purchased power 11,348,241 11,414,498
Operations and maintenance 6,804,271 6,762,174
Consumer services 2,159,522 2,318,900
Administration and general 4,054,439 3,976,027
Pension expense 565,373 806,399
Depreciation 5,960,520 5,601,301
Total Operating Expenses 30,892,366 30,879,299
Operating Income 2,084,631 1,749,297
NON-OPERATING REVENUE (EXPENSES)
Special tax revenue 3,306,080 3,356,052
Investment income 393,002 510,962
Interest expense (3,141,758) (3,568,730)
Amortization 10,150 26,297
Other non-operating revenues 34,126 60,066
Other non-operating expenses (251,753) (344,353)
Gain (loss) on disposition of assets 30,990 (93,925)
Total Non-Operating Expenses 380,837 (53,631)
Income Before Contributions 2,465,468 1,695,666
CAPITAL & OTHER CONTRIBUTIONS 1,430,510 994,056
CHANGE IN NET POSITION 3,895,978 2,689,722
Net Position - Beginning of Year, before adjustment 70,636,910 82,235,941
Less: Restatement for change in accounting principal - (14,288,753)
Net Position - Beginning of Year, as adjusted 70,636,910 67,947,188
NET POSITION - END OF YEAR 74,532,888$ 70,636,910$
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
CONSOLIDATED STATEMENTS OF CASH FLOWS
December 31, 2015 and 2014
The accompanying notes are an integral part of these consolidated financial statements.
Page 14
2014
2015 as restated
CASH FLOWS FROM OPERATING ACTIVITIES
Received from customers 32,950,562$ 32,892,805$
Paid to suppliers for goods and services (18,507,965) (20,104,405)
Paid to employees for services (6,159,526) (5,721,375)
Net Cash Flows from Operating Activities 8,283,071 7,067,025
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Principal payments on long-term debt (593,000) (534,000)
Interest payments on long-term debt (301,725) (329,150)
Net Cash Flows from Noncapital Financing Activities (894,725) (863,150)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Capital expenditures for utility plant (9,014,992) (5,362,033)
Cost of disposal of property net of salvage (109,189) (191,182)
Capital contributions, connection and facility fees 1,703,180 1,300,638
Special assessments receipts 648,531 639,627
Special tax receipts 2,686,373 2,689,383
Debt issuance costs 251,754 257,863
Proceeds from refunding 14,781,118 10,231,837
Principal payments on long-term debt (19,282,345) (14,264,346)
Interest payments on long-term debt (3,518,790) (3,316,194)
Cash Flows From Capital and Related Financing Activities (11,854,360) (8,014,407)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest income received 419,492 407,855
Cash Flows from Investing Activities 419,492 407,855
Net Change in Cash and Cash Equivalents (4,046,522) (1,402,677)
CASH AND CASH EQUIVALENTS – Beginning of Year 30,194,435 31,597,112
CASH AND CASH EQUIVALENTS – END OF YEAR 26,147,913$ 30,194,435$
NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES
Developer and customer added capital assets 167,277$ 500$
Recognition of prior period unearned revenues 3,014,152$ 3,039,526$
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
CONSOLIDATED STATEMENTS OF CASH FLOWS
December 31, 2015 and 2014
The accompanying notes are an integral part of these consolidated financial statements.
Page 15
2014
2015 as restated
RECONCILIATION OF OPERATING INCOME TO NET CASH
FLOWS FROM OPERATING ACTIVITIES
Operating income 2,084,631$ 1,749,297$
Noncash items included in operating income
Depreciation and amortization 5,960,520 5,601,301
Depreciation charged to other accounts 267,722 (89,768)
Pension expense - GASB 68 565,373 806,399
Deferred Pension Contributions - GASB 68 (721,340) (499,771)
Accounts receivable and unbilled revenues (236,166) 188,396
Materials and supplies (4,625) (81,802)
Prepaid expenses and other current assets (182,620) 29,306
Accounts payable 397,822 (692,614)
Customer deposits 2,152 75,815
Other current liabilites 149,602 (19,534)
NET CASH FLOWS FROM OPERATING ACTIVITES 8,283,071$ 7,067,025$
RECONCILIATION OF CASH AND CASH EQUIVALENTS
TO THE BALANCE SHEET
Operating 7,134,053$ 8,377,543$
Designated 11,914,287 12,447,243
Restricted funds - current 7,098,010 9,358,084
Restricted funds - non-current 1,900,036 1,937,917
Total Cash and Investments 28,046,386 32,120,787
Less: Long-term investments (1,698,880) (1,698,880)
Mark to market adjustments (199,593) (227,472)
TOTAL CASH AND CASH EQUIVALENTS 26,147,913$ 30,194,435$
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2015 and 2014
Page 16
NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. ORGANIZATION
The Truckee Donner Public Utility District (the District) was formed and operates under the State of
California Public Utility District Act. The District is governed by a board of directors which consists of five
elected members. The District provides electric and water service to portions of Nevada and Placer
Counties described as Truckee. The electric and water service operations are separately maintained and
operated. These financial statements reflect the combined electric and water operations of the District. All
significant transactions between electric and water operations have been eliminated. These eliminations
include power purchases and rent for shared facilities.
The District’s blended component units consist of organizations whose respective governing boards are
comprised entirely of the members of the District’s Board of Directors. These organizations are reported as
if they are a part of the District’s operations. The entities are legally separate, however, in the case of the
Truckee Donner Public Utility District Financing Corporation, financial support has been pledged and
financial and operational policies may be significantly influenced by the District. The following is a
description of the District’s blended component units:
Truckee Donner Public Utility District Financing Corporation is a legal entity that was created to
issue and administer Certificates of Participation on behalf of the District. (See note 5).
Truckee Donner Public Utility District Community Facilities District No. 03-1 (Old Greenwood) is a
legal entity created to issue special tax bonds to finance various public improvements needed to
develop property located within Old Greenwood. (See note 7).
Truckee Donner Public Utility District Community Facilities District No. 04-1 (Gray’s Crossing) is a
legal entity created to issue special tax bonds to finance various public improvements needed to
develop property located within Gray’s Crossing. (See note 7).
Separate standalone financial statements are not available for the blended component units
described above. Unless noted, disclosures relating to the component units are the same as for
the District.
B. ACCOUNTING POLICIES
The financial statements of the District have been prepared in conformity with accounting principles
generally accepted in the United States of America. The Governmental Accounting Standards Board
(GASB) is the accepted standard setting body for establishing governmental accounting and financial
reporting principles.
The financial statements are reported using the economic resources measurement focus and the accrual
basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and
expenses are recorded when the liability is incurred or economic asset used. Revenues, expenses, gains,
losses, assets and liabilities, that are a result of exchange and exchange like transactions, are recognized
when the exchange takes place.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2015 and 2014
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 amount and are reported net of allowances of $51,100
and $72,000 for 2015 and 2014, respectively.
G. MATERIALS AND SUPPLIES
Materials and supplies are recorded at average cost.
H. DEBT PREMIUM, BOND ISSUANCE COSTS, AND DISCOUNTS
Original issue and reacquired bond premiums and discounts relating to revenue bonds are amortized over
the terms of the respective bond issues using the effective interest method. 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 FINANCIAL STATEMENTS
December 31, 2015 and 2014
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 Sierra Pacific
Communications (SPC) which is included in the line item “other non-current assets” in the accompanying
Statement of Net Position. SPC subsequently assigned the agreement to AT&T. The agreement is expected
to provide benefit to the District over the estimated 20-year life of the agreement. (See note 4).
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 method over the estimated useful lives of the assets, which are
as follows:
Distribution Plant
Electric 23 – 35 years
Water 15 – 40 years
Computer software and hardware 3 – 7 years
Building and improvements 20 – 33 years
Equipment and furniture 4 – 10 years
It is the District’s policy to capitalize interest paid on debt incurred for significant construction projects while
those projects are under construction, less any interest earned on related unspent debt proceeds. No new
debt related to capital assets was issued in 2015 and 2014; no interest was capitalized in 2015 or in 2014.
L. COMPENSATED ABSENCES
Under terms of employment, employees are granted sick leave and vacations in varying amounts. Only
benefits considered to be vested are disclosed in these statements. Vested vacation and sick leave pay is
accrued when earned in the financial statements. The liability is liquidated from general operating revenues
of the utility.
M. REVENUE RECOGNITION
The District records estimated revenues earned, but not billed to customers, 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. Water customers without
meters are billed on a flat-rate basis, and revenues are recorded as billed. Revenues from connection fees
are recognized upon completion of the connection. Income that the District has earned through investing
its excess cash is reflected within income from investments when earned.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2015 and 2014
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 meeting this definition are reported as non-operating revenues and expenses, or capital
contributions and other.
O. POWER PURCHASES AND TRANSMISSION
In 1999, the District entered into an agreement with Sierra Pacific Power Company dba NV Energy (SPPC),
whereby SPPC will provide transmission services to the District through December 31, 2027. In addition,
the District purchases scheduling services from Utah Municipal Power Systems and the scheduling services
are included in the monthly power billings from UAMPS. The purchase of transmission services from NV
Energy represented 4.6% and 5.1% of total purchased power costs in 2014 and 2015, respectively.
In December of 2005, the District entered into an agreement 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
Wind project began commercial operation and the District owns approximately 15 MW of nameplate
capacity that generates about 5 MW on average. The District has also invested in the Veyo Heat Recovery
project that 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 WAPA 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 Stampede 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 2015 and 2014, the UAMPS contract, along with its appendices, and the WAPA contract for Stampede
Dam Hydro comprised the m ajority 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 maximum statewide GHG emissions for all covered sectors each year (“cap”), and allows
covered entities to sell off allowances (“trade”). An allowance is a tradable permit that allows the emission
of one metric ton of CO2 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 FINANCIAL STATEMENTS
December 31, 2015 and 2014
Page 20
NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
P. CAP AND TRADE PROGRAM PROCEEDS (Continued)
In 2015 and 2014, the District sold its excess allowances in the program auctions and the proceeds were
recorded as $965,402 and $836,193 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 payment of federal and state income 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 $674,664 in 2015 and
$806,741 in 2014.
On January 28, 2014, refunding bonds were sold to a private investment firm and the proceeds were used
to call the 2003 Old Greenwood bonds on March 1, 2014. The 2014 refunding bonds have the same rate
and method of apportionment conditions on the Old Greenwood properties as the original 2003 bonds.
Beginning in 2005, the District levied ad valorem property tax on all taxable property within the Gray’s
Crossing District in an amount sufficient to pay the yearly principal and interest on the Special Assessment
District Tax Bonds. (See notes 5 and 7). The District levied ad valorem taxes of $2,631,416 in 2015 and
$2,549,311 in 2014.
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 the District based on the cost of the items, when received
for contributed capital assets based on the actual or estimated fair value of the contributed items, or upon
completion of the related project for development agreements. The District records amounts received within
capital contributions when a legally enforceable claim is established. Until the District meets the criteria to
record the amounts described above as capital contributions, any amounts received are recorded within
unearned revenues on the Statement of Net Position.
T. OTHER – PENSION SIDEFUND
As a result of implementing GASB Statement No. 68, in part the pension side-fund payoff that occurred in
2011 and which had been reported in the financial statements as an asset was written off due to the
District’s participation in CalPERS cost-sharing multi-employer retirement benefit plan. However, the
liability for the payoff remains until paid in full thru 2022. The intercompany fund transfers for the principal
portion of the debt service between the electric and water utility is included as “other.”
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2015 and 2014
Page 21
NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
U. PENSION
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to
pensions, and pension expense, information about the fiduciary net position of the District’s California Public
Employee’s Retirement System (CalPERS) plans (Plans) and the additions to/deductions from the Plans’
fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this
purpose, benefit payments (including refunds of employee contributions) are recognized when due and
payable in accordance with the benefit terms. Investments are reported at fair value.
V. CHANGE IN ACCOUNTING PRINCIPLE
In June 2012, GASB issued Statement No. 68, “Accounting and Financial Reporting for Pensions – An
Amendment of GASB Statement No. 27.” The primary objective of this statement is to improve accounting
and financial reporting by state and local governments for pensions by requiring recognition of the entire
net pension liability and a more comprehensive measure of pension expense. This statement establishes
standards for measuring and recognizing liabilities, deferred outflows and deferred inflows of resources,
and expenses/expenditures. 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. In November 2013,
GASB issued Statement No. 71, “Pension Transition for Contributions Made Subsequent to the
Measurement Date – an amendment of GASB Statement no. 68.” This statement requires that at transition,
the district recognize a beginning deferred outflow of resources for pension contributions, if any, made
subsequent to the measurement date of the beginning net pension liability. The District’s beginning net
position was restated for 2014 from $82.2 million to $67.9 million as required per first year implementation
to comply with these changes. See note 9 and 15 for additional information on the District’s current pension
plans and related prior period adjustments.
W. ACCOUNTING PRONOUNCEMENTS TO BE IMPLEMENTED IN UPCOMING YEARS
GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than
Pensions, addresses accounting and financial reporting for OPEB that is provided to the employees of state
and local governmental employers. This Statement establishes standards for recognizing and measuring
liabilities, deferred outflows of resources, deferred inflows of resources, and expense/expenditures. This
statement is effective for the District beginning in 2017. The District has elected not to implement GASB
Statement No. 75 early and has not determined its effect on the District’s financial statements.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2015 and 2014
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
may be redirected at any time by approval of the Board. Upon Board approval, assets from board
designated accounts may be used to pay for selected capital projects. Such accounts have been designated
by the Board for the following purposes:
Electric Capital Replacement
Starting in 2009, the Board set aside funds designated for future electric infrastructure replacement.
Electric Vehicle Reserve
Beginning in 2009, the Board set aside funds designated for future electric utility vehicle
replacements.
Electric Rate Reserve
In compliance with Board rules, the District created an electric rate stabilization fund in anticipation
of future costs. During both 2015 and 2014, there was no utilization of these funds to offset
increased power costs in lieu of raising electric rates.
Reserve for Future Meters
Prior to 1992, connection fees charged to applicants for water service included an amount, which
was maintained in a designated fund, to offset the cost of future metering. 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. Water meters and automated meter reading devices are
being installed, and customers will be billed volumetrically in accordance with California Assembly
Bill 2572. As meters 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 FINANCIAL STATEMENTS
December 31, 2015 and 2014
Page 23
NOTE 2 – CASH, CASH EQUIVALENTS, AND INVESTMENTS (Continued)
Debt Service Coverage Fund
Effective 2007, the Board has voluntarily set aside funds to improve 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 $6.65 applicable to customers
in the Donner Lake area to provide revenue to pay the remainder of the cost of reconstruction
effective October 2006.
As of December 31, board designated accounts consisted of the following:
Certain assets have been restricted by bond covenants or third party contractual agreements for the
following purposes:
Certificates of Participation: Water
In 2015, a portion of the 2006 Certificates of Participation were refunded. The new 2015 refunding
did not require a reserve fund. The reserve fund was liquidated and applied towards reducing the
debt principal remaining funds are for scheduled debt service.
Special Tax Bonds: Gray’s Crossing and Old Greenwood
The terms of the special tax bonds issued for the Mello-Roos Community Facilities Districts (CFD)
require reserve funds as security for each principal and interest payment as they come due.
Reserve funds are set aside as prescribed in the loan documents. These reserve funds are held
by Bank of New York Mellon Trust Company.
In 2014, the Old Greenwood CFD special tax bonds were refunded. The new 2014 refunding bonds
did not require a reserve fund. The reserve fund was liquidated and applied towards reducing the
debt principal.
2015 2014
Electric capital replacement fund 3,364,783$ 3,041,245$
Electric vehicle reserve 351,761 216,279
Electric rate reserve 4,039,629 3,581,285
Reserve for future meters 632,967 795,460
Water capital replacement fund - 877,256
Water vehicle reserve 79,352 159,333
Prepaid connection fees 79,869 79,464
Debt service coverage fund 3,283,853 3,627,159
Donner Lake Assessment District surcharge fund 82,073 69,762
Totals 11,914,287$ 12,447,243$
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2015 and 2014
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 Department of Water Resources loan require the accumulation of a
reserve fund as security for each principal and interest payment as they come due. Annual
paym ents into the fund were required for each of the first ten years beginning April 1, 1996. The
total reserve fund equals two semi-annual payments and was fully funded during 2006. These funds
are set aside for the life of the borrowed amount. All of the reserve funds are invested in the State
of California Local Agency Investment Fund.
Glenshire Escrow Account
The District received cash and other assets as part of its acquisition of the Glenshire Mutual Water
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 Water 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 and Reserve Fund
The District established the Donner Lake Special Assessment District (DLAD) Improvement Fund
to account for all funds received from the Special Assessment Receivable, which will be used to
pay the debt service costs related to the Donner Lake Water System project. The DLAD
Improvement Fund also has a reserve fund as required by the California – Safe Drinking Water –
State Revolving Fund (SRF). This fund is required to set aside $40,043 semi-annually for ten years
beginning in 2006.
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 implement 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.
In 2015, the rebate program exceeded rebate collections eliminating the need to restrict rebate
proceeds. The District electric utility will be reimbursed for advancing the rebates with future SB1
collections through 2017.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2015 and 2014
Page 25
NOTE 2 – CASH, CASH EQUIVALENTS, AND INVESTMENTS (Continued)
AB 32 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 implementation of a cap and trade
program, which covers major sources of GHG emissions in the State including power plants. The
California Cap and Trade Program is designed to achieve cost-effective emissions reductions
across the capped sectors. The program sets maximum statewide GHG emissions for all covered
sectors each year (“cap”), and allows covered entities to sell off allowances (“trade”). An allowance
is a tradable permit that allows the emission of one metric ton of CO2 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 allowances that can be sold in
an auction. The proceeds from quarterly allowance auctions are held in this restricted fund and
are used to purchase qualified renewable power. These funds are intended to mitigate the burden
on the consumer without impacting a carbon price signal.
Other (Area Improvement Funds)
The District received funds from the County of Nevada, which are to be used only for improvements
to specific areas within the District’s boundaries in Nevada County. These areas include various
Nevada County assessment districts.
When both restricted and unrestricted resources are available for use, it is the District's policy to use
restricted resources first, then unrestricted resources as they are needed.
As of December 31, restricted cash and cash equivalents and investments consisted of the following:
2015 2014
Certificates of Participation 641,699$ 2,497,964$
Special tax bonds 3,036,619 3,328,023
Facilities fees 514,264 657,218
DWR-Prop 55 reserve fund 312,670 311,075
Glenshire escrow accounts 175,403 255,847
Donner Lake Special Assessment District improvement 2,517,494 2,567,157
Donner Lake Special Assessment District reserve fund 800,852 720,978
Solar Initiative - 66,761
AB 32 Cap and Trade Auction fund 947,269 839,464
Other (area improvement funds)51,776 51,514
Total Restricted Cash and Cash
Equivalents and Investments 8,998,046$ 11,296,001$
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2015 and 2014
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:
Cash and cash equivalents were $28,046,386 and $32,120,787 at December 31, 2015 and 2014,
respectively. Cash equivalents substantially consist of investments in the state pooled fund, Placer County
pooled fund, money market funds and government bonds. For purposes of the Statements of Cash Flows,
the District considers all highly liquid instruments with original maturities of three months or less to be cash
equivalents.
Adjustments necessary to record investments at market value are recorded in the operating statement as
increases or decreases in investment income. Market values may have changed significantly after year
end.
INVESTMENTS AUTHORIZED BY THE DISTRICT’S INVESTMENT POLICY
The District adopted an investment policy in 2006 which allowed for investments in instruments permitted
by the California Government Code and/or the investments permitted by the trust agreements on District
financing, including investments in the local government investment fund pool administered by the State of
California (LAIF), Placer Count y Treasurer’s Investment Portfolio (PCTIP) pooled investment and Utah
Public Treasurers’ Investment Fund (UPTIF). The District’s investment policy contains provisions intended
to limit the District’s exposure to interest rate risk, credit risk, and concentration of credit risk. At December
31, 2015 and 2014 the District’s deposits and investments were held as follows:
2015 2014
Cash and cash equivalents 26,147,913$ 30,194,435$
Mark to market adjustment 199,593 227,472
Investments – government bonds 1,698,880 1,698,880
Totals 28,046,386$ 32,120,787$
2015 2014
Cash on hand 2,400$ 2,000$
Deposits 765,515 659,379
LAIF 7,747,679 17,344,044
PCTIP 8,447,363 9,944,623
UPTIF 7,157,159 -
Money Market Funds 2,026,234 2,232,824
Government Bonds 1,900,036 1,937,917
Totals 28,046,386$ 32,120,787$
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2015 and 2014
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 will adversely affect the fair value of an
investment. Generally, the longer the maturity of an investment, the greater is the sensitivity of its fair value
to changes in market interest rates. Information about the sensitivity of the fair values of the District’s
investments to market interest rate fluctuations is provided by the following table that shows the District’s
investments by maturity for 2015 and 2014:
Investment Maturity
LAIF 3 months or less
PCTIP 3 months or less
UPTIF 3 months or less
Federated U.S. Treasury Cash Reserve 3 months or less
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 investment will not fulfill its obligation to the holder of
the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating
organization. LAIF, PCTIF and UPTIF do not have a rating provided by a nationally recognized statistical
rating organization. The 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.
Goldman 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 policy does not contain legal or policy
requirements that would limit the exposure to custodial credit risk for deposits. However, the California
Government Code requires that a financial institution secure deposits made by state or local governmental
units by pledging securities in an undivided collateral pool held by a depository regulated under state law
(unless waived by the government unit). The market value of pledged securities in the collateral pool must
equal at least 110% of the total amount deposited by the public agencies.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2015 and 2014
Page 28
NOTE 2 – CASH, CASH EQUIVALENTS, AND INVESTMENTS (Continued)
CUSTODIAL CREDIT RISK (CONTINUED)
As of December 31, 2015 and 2014 all deposits were fully insured or collateralized.
The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g.,
broker/dealer) to a transaction, a government will not be able to recover the value of its investment or
collateral securities that are in the possession of another party. The California Government Code and the
District’s investment policy do not contain legal or policy requirements that would limit the exposure to
custodial credit risk for investments. With respect to investments, custodial credit risk generally applies
only to direct investments in marketable securities. Custodial credit risk does not apply to a local
government’s indirect investment in securities through the use of 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 investment fund
has an equity interest in the State of California’s (State’s) Pooled Money Investment Account (PMIA). PMIA
funds are on deposit with the State’s Centralized Treasury System and are managed in compliance with
the California Government Code according to a statement of investment policy which sets forth permitted
investment vehicles, liquidity parameters, and maximum maturity of investments. The fair value of the
District’s investment in this pool is reported in the accompanying financial statements at amounts based
upon the District’s pro-rata share of the fair value provided by the LAIF for the entire LAIF portfolio (in
relation to the amortized cost of the portfolio). The balance available for withdrawal is based on the
accounting records maintained by the LAIF, which are recorded on an amortized cost basis.
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 managed in compliance with the
California Government Code according to a statement of investment policy which sets forth permitted
investment vehicles, liquidity parameters, and maximum maturity of investments. The fair value of the
District’s investment in this pool is reported in the accompanying financial statements at amounts based
upon the District’s pro-rata share of the fair value provided by Placer County Treasurer for the entire PCTIP
(in relation to the amortized cost of the portfolio). The balance available for withdrawal is based on the
accounting records maintained by the Placer County Treasurer, which are recorded on an amortized cost
basis.
INVESTMENT IN UTAH PUBLIC TREASURERS’ INVESTMENT FUND
The District is a voluntary participant in the Utah Public Treasurers’ Investment Fund (UPTIF). The District
is eligible to participate in (UPTIF) through its membership with Utah Associated Municipal Power Systems
(UAMPS). Investments are on deposit with State of Utah public treasury and investments are restricted to
those authorized by the Utah Money Management Act and rules of the Money Management Council of
Utah. The fair value of the District’s investments in this pool is reported in the accompanying financial
statements at amounts based upon the District’s pro-rata share of the fair value provided by UPTIF through
UAMPS Member Retention Fund.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2015 and 2014
Page 29
NOTE 3 – CAPITAL ASSETS
Capital assets consist of the following at December 31, 2015 and 2014:
As of December 31, 2015 and 2014, the plant in service included land and land rights, $2,622,946 and
$2,622,946 respectively, which is not being depreciated.
A portion of the plant has been contributed to the District. When replacement is needed, the District replaces
the contributed plant with District-financed plant.
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 approvals and franchises
needed to construct and launch the broadband project. A local cable television service provider filed an
objection in September 2004 with the Nevada County Local Agency Formation Commission (LAFCO), the
entity responsible for providing regulatory approval for the broadband project. After denying the cable
television provider’s request for a reconsideration of their approval of the District’s project, the cable
television provider filed a lawsuit against LAFCO. The District was not named in the lawsuit. A ruling on the
lawsuit was received in January 2006. LAFCO prevailed on all portions of the cable television provider’s
claim. The cable television provider filed an appeal; however, in June of 2007, the Court ruled in favor of
LAFCO, upholding the initial ruling.
Since 2009, the District has been exploring options to sell or lease the existing infrastructure to provide a
return on investment in the project. Expenses incurred by the District to date on the broadband project total
$2,834,079, of which $496,990 was expensed in 2014 for legal fees and preliminary feasibility studies. In
2015 there were no material expenditures for this project.
January 1,December 31,
2015 Additions Reductions 2015
Electric distribution facilities 51,524,863$ 3,777,881$ (581,129)$ 54,721,615$
Water distribution facilities 103,049,122 5,653,380 (1,696,924) 107,005,578
General plant 12,816,635 1,314,555 (243,308) 13,887,881
167,390,620 10,745,816 (2,521,362) 175,615,074
Less: Accumulated depreciation (54,475,747) (6,204,361) 2,637,661 (58,042,448)
Construction work in progress 6,407,589 9,188,877 (10,752,425) 4,844,042
Totals 119,322,462$ 13,730,332$ (10,636,125)$ 122,416,668
January 1,December 31,
2014 Additions Reductions 2014
Electric distribution facilities 49,307,043$ 2,656,895$ (439,075)$ 51,524,863$
Water distribution facilities 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 depreciation (50,015,511) (5,871,652) 1,411,416 (54,475,747)
Construction 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$
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2015 and 2014
Page 30
NOTE 5 – LONG-TERM DEBT
Long-term debt consisted of the following at December 31, 2015:
January 1,December 31,Due within
2015 Additions Reductions 2015 one year
Pension Obligation Bonds
Electric, 5%
due semi-annually 6,177,000$ -$ (593,000)$ 5,584,000$ 656,000$
State Revolving Fund Loan –
Water, 2.34%, due semi-annually
beginning in 2006 to 2026.8,033,804 - (616,446) 7,417,358 630,956
Special Tax Bonds – Mello
Roos, 4.18%, due
serially to 2032 10,344,400 - (253,900) 10,090,500 279,000
Special Tax Bonds – Mello
Roos, 3.25% to 5.7%,
due serially to 2035 (net
unamortized discounts of $92,128)14,588,185 - (195,313) 14,392,872 230,000
Special Tax Bonds – Mello
Roos, 3.50% to 5.50%,
due serially to 2035 (net
unamortized discounts of $10,180)18,019,303 - (274,483) 17,744,820 310,000
Certificates of Participation –
Water, 4.00% to 5.00%,
due serially to 2021
A portion was refunded in 2015 20,427,202 - (16,662,202) 3,765,000 570,000
Certificates of Participation –
Water, 2.00% to 4.00%,
due serially to 2035 (net
premiums of $529,095)- 15,120,352 (576,257) 14,544,095 520,000
Department of Water Resources,
3.18%, due semiannually to
2021, secured by real
and personal property.1,787,132 - (251,685) 1,535,448 259,705
Installment loans, 5.4% to 6.23%,
various payment terms and
due dates, secured by
equipment.957,384 - (283,596) 673,788 299,258
Totals 80,334,410$ 15,120,352$ (19,706,882)$ 75,747,881$ 3,754,919$
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2015 and 2014
Page 31
NOTE 5 – LONG-TERM DEBT (Continued)
Long-term debt consisted of the following at December 31, 2014:
January 1,December 31,Due within
2014 Additions Reductions 2014 one year
Pension Obligation Bonds
Electric, 5%
due semi-annually 6,711,000$ -$ (534,000)$ 6,177,000$ 593,000$
State Revolving Fund Loan –
Water, 2.34%, due semi-annually
beginning in 2006 to 2026.8,636,075 - (602,271) 8,033,804 616,446
Special Tax Bonds – Mello
Roos, 2.25% to 5.7%, due
serially to 2033 11,610,000 - (11,610,000) - -
refinanced in January 2014
Special Tax Bonds – Mello
Roos, 4.18%, due
serially to 2032 - 10,489,700 (145,300) 10,344,400 253,900
Special 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 discounts of $96,815)
Special 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 discounts of $10,697)
Certificates of Participation –
Water, 4.00% to 5.00%,
due serially to 2036
(net premiums of $347,202)21,411,210 - (984,008) 20,427,202 985,000
Department of Water Resources,
3.18%, due semiannually to
2021, secured by real
and personal property.2,031,006 - (243,874) 1,787,132 251,685
Installment loans, 5.4% to 6.23%,
various payment terms and
due dates, secured by
equipment.1,226,279 - (268,895) 957,384 283,699
Totals 84,637,853$ 10,489,700$ (14,793,143)$ 80,334,410$ 3,458,730$
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2015 and 2014
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 required to fund a reserve account
by making semi-annual reserve payments in the amount 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 Community Facilities District issued $12,445,000 of Special
Tax Bonds, the net proceeds of which were utilized to finance various public improvements for property
within Old Greenwood. (See note 7). The terms of the Special Tax Bonds call for debt service payments to
be provided solely by taxes levied on and collected from the owners of the taxable land within Old
Greenwood. The bonds are secured by land located within Old Greenwood.
In January 2014, the original 2003 bonds issued for the Old Greenwood Community Facilities District were
refunded (refinanced) by issuing 2014 bonds to a private investment firm at a lower rate, saving the property
owners in Old Greenwood over $3 million over the term of the bonds. The 2014 bonds did not require a
reserve fund. Therefore the reserve fund of the 2003 bonds was utilized to reduce the principal. The 2014
bonds have similar terms and have the same rate and method of apportionment for the Old Greenwood
parcel owners as the original 2003 bonds.
During 2005 and 2004 respectively, the Gray’s Crossing Community Facilities District issued $15,375,000
and $19,155,000 of Special Tax Bonds, the net proceeds of which were utilized to finance various public
improvements for property within Gray’s Crossing. (See note 7). The terms of the Special Tax Bonds call
for debt service payments to be provided solely by taxes levied on and collected from the owners of the
taxable land within Gray’s Crossing. The bonds are secured by land located within Gray’s Crossing.
On October 12, 2006, Truckee Donner Public Utility District Financing Corporation issued $26,570,000 of
Certificates of Participation to refund 100% of the outstanding balance of Certificates issued in 1996,
complete the funding of the Donner Lake Assessment District water system, and fund water system capital
improvements. The refunding portion of the 2006 COP’s, totaling $8,465,000, has an average interest rate
of 4.10%. The refunded 1996 COP’s had an average interest rate of 5.41%. The net proceeds of
$7,500,557 (after payment of $63,733 in underwriting fees, insurance and other issuance costs) plus an
additional $1,315,194 of reserve fund monies were used to prepay the outstanding debt service
requirements on the 1996 COP’s. The terms of the Certificates call for payments to be made only from the
net revenues of the Water Division and the debt is secured by this revenue. These revenues are required
to be at least equal to 125% of the debt service for each year.
In 2015, a portion of the 2006 COP was refunded. Since a portion of the 2006 COP was used for advance
refunding of previous COP, that portion could not be advance refunded. The new 2015 refunding did not
require a reserve fund. The reserve fund was liquidated and applied towards reducing the debt principal.
The estimated net present value savings are $1,600,000 or 10% over the remaining life of issuance.
Under the Safe Drinking Water Bond Law of 1986, the Department of Water Resources provided a
$5,000,000 loan to the District in 1993. The loan was to finance capital improvements to the public water
supply and to reduce water quality hazards. The terms of the loan call for payments to be made only from
the net revenues of the Water Division, which are required to be sufficient to pay the debt service for each
year.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2015 and 2014
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. Prior to 2011, the annual side fund payments were expensed and described in
the Notes to Financial Statements. The pension side fund liability was amortized through June 2022 with a
7.75% rate. This liability was not required to be reported on the District’s Statement of Net Position, but the
future pension expense was included in budget and rate calculations. The new refunding rate of 5% reduced
the District’s annual pension costs by almost $100,000 through 2022.
As a normal part of its operations, the District finances the acquisition of certain assets through the use of
installment loans. These loans have been used to finance the purchase of vehicles, equipment, and certain
water system improvements. There were no additional installment loans in 2015 or in 2014.
Scheduled payments on debt are:
Principal Interest Total
2016 3,754,919$ 3,374,362$ 7,129,280$
2017 4,001,825 3,230,062 7,231,887
2018 3,931,214 3,074,501 7,005,715
2019 4,195,421 2,919,499 7,114,920
2020 4,474,284 2,745,379 7,219,663
2021-2025 17,951,435 11,170,399 29,121,834
2026-2030 17,366,895 7,487,375 24,854,271
2031-2035 19,645,100 2,933,069 22,578,169
75,321,093$ 36,934,646$ 112,255,739$
Plus: Unamortized premiums 529,095
Less: Unamortized discounts (102,308)
75,747,881$
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2015 and 2014
Page 34
NOTE 6 – UNEARNED REVENUES
Transactions that have not yet met revenue recognition requirements are recorded as a non-current liability
and reflected in the accompanying Statement of Net Position. As of December 31, 2015 and 2014,
unearned revenues consist of unearned special assessment revenues, development agreement deposits,
connection fees, and other deposits.
Unearned revenues consisted of the following at December 31, 2015 and 2014:
NOTE 7 – COMMUNITY FACILITIES DISTRICTS
In order to finance various public improvements needed to develop property within the Town of Truckee,
California, the District formed Community Facilities Districts (CFD), which issued Special Tax Bonds
pursuant to the Mello-Roos Community Facilities Act of 1982, as amended. Accordingly, the Bonds are
special obligations of the respective Community Facilities Districts and are payable solely from revenues
derived from taxes levied on and collected from the owners of the taxable land within the respective
Community Facilities Districts. These Special Tax Bonds are not general or special obligations of the
District. The Board of Directors of the District is the legislative body of the Communities Facilities Districts
and as such they approve the rates and method of apportionment of the special taxes. As improvements
were completed, the infrastructure was donated in the form of a capital contribution to the Town of Truckee,
the Truckee Sanitary District, Southwest Gas, and the District.
In December 2003, the Community Facilities District No. 03-1 (Old Greenwood) was formed and issued
$12,445,000 in Special Tax Bonds (the 03-1 Bonds). In January 2014, the original 2003 bonds were
refunded (refinanced) by issuing 2014 bonds to a private investment firm at a lower rate, saving the property
owners in Old Greenwood over $3 million over the term of the bonds. The 2014 bonds have similar terms
and have the same rate and method of apportionment for the Old Greenwood parcel owners as the original
2003 bonds.
During 2015 and 2014 respectively, taxes of $657,576 and $691,753 were levied by Old Greenwood. Of
these amounts, $328,788 and $345,877 relate to 2015 and 2014, and accordingly are included in tax
revenues in the accompanying Statement of Revenues, Expenses, and Changes in Net Position. The
remaining amount will be recognized in future periods and are included in unearned revenues on the
accompanying Statement of Net Position.
January 1,December 31,
2015 Additions Reductions 2015
Unearned tax revenues 1,630,458$ 1,628,346$ (1,630,458)$ 1,628,346$
Development agreement deposits 1,843,013 738,336 (424,505) 2,156,844
Connection fees and other deposits 943,750 1,085,304 (959,189) 1,069,865
Totals 4,417,221$ 3,451,986$ (3,014,152)$ 4,855,055$
January 1,December 31,
2014 Additions Reductions 2014
Unearned tax revenues 1,725,595$ 1,630,458$ (1,725,595)$ 1,630,458$
Development agreement deposits 1,572,282 590,108 (319,377) 1,843,013
Connection fees and other deposits 907,398 1,030,905 (994,553) 943,750
Totals 4,205,275$ 3,251,471$ (3,039,525)$ 4,417,221$
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2015 and 2014
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 the county tax roll for 2015 and 2014,
taxes of $2,599,116 and $2,569,162 respectively were levied by Gray’s Crossing. Of this amount,
$1,299,558 and $1,284,581 relate to 2015 and 2014, and accordingly, are included in tax revenues in the
accompanying Statement of Revenues, Expenses, and Changes in Net Position. The remaining amount
will be recognized in future periods and is included in unearned revenues on the accompanying 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 WATER COMPANY ACQUISITION
In 2001, the District acquired the Donner Lake Water Company by initiating an eminent domain lawsuit. As
a part of the takeover, the District replaced the entire water system, which cost approximately
$15.6 million and was completed in 2006. The District initially estimated the replacement cost to be
$13 million. The Donner Lake property owners agreed to reimburse the District for the full costs of the
replacement. Therefore, an assessment was placed on each Donner Lake homeowner’s property for a pro-
rata share of the $13 million payable immediately or with an option to pay over 20 years. The assessment
is collected by Nevada County and Placer County on behalf of the District and is secured by the Donner
Lake property owners. A monthly $6.65 water system upgrade surcharge is paid by the Donner Lake
customers to reimburse the District for the $2.6 million cost incurred in excess of the assessment.
In April 2004, the District obtained financing in the form of a State Revolving Fund Loan for $12,732,965 at
a rate of 2.34%. The District is required to fund a reserve account by making semi-annual reserve payments
in the amount of $40,043 for a 10-year period.
As of December 31, 2015 and 2014, the assessment receivable from the property owners was $4,363,790
and $5,012,321 respectively, of which $694,710 and $675,450 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 Assessment District Improvement Fund
and used to pay the debt service for the water system improvements.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2015 and 2014
Page 36
NOTE 9 – EMPLOYEE BENEFIT PLANS
A. PENSION PLANS
Plan Description – All qualified permanent and probationary employees are eligible to participate
in the District’s Miscellaneous Employee Pension Plans, cost-sharing multiple employer defined benefit
pension plans administered by the California Public Employees’ Retirement System (CalPERS).
Benefit provisions under the Plans are established by State statute and Local Government resolution.
CalPERS issues publicly available reports that include a full description of the pension plans regarding
benefit provisions, assumptions and membership information that can be found on the CalPERS
website.
Benefits Provided – CalPERS provides service retirement and disability benefits, annual costs of
living adjustments and death benefits to plan members, who must be public employees and
beneficiaries. Benefits are based on years of credited service, equal to one year of full time
employment. Members with five years of total service are eligible to retire at age 50 with statutorily
reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service.
The death benefits is Optional Settlement 2W Death Benefit. The cost of living adjustments for each
plan are applied as specified by the Public Employees’ Retirement Law. The 2.7% at 55 Miscellaneous
Plan is closed to new entrants.
The plans’ provisions and benefits in effect at December 31, 2015 are summarized as follows:
Contributions – Section 208149(c) of the California Public Employee’s Retirement Law requires
that the employer contribution rates for all public employers be determined on an annual basis by the
actuary and shall be effective on the July 1 following notice of a change in the rate. Funding
contributions for both Plans are determined annually on an actuarial basis as of June 30 by CalPERS.
The actuarially determined rate is the estimated amount necessary to finance the costs of benefits
earned by employees during the year, with an additional amount to finance any unfunded accrued
liability. The District is required to contribute the difference between the actuarially determined rate
and the contribution rate of employees.
Hire Date
Prior to
January 1, 2013
On or after
January 1, 2013
Benefit Formula 2.7% @ 55 2% @ 62
Benefit Vesting Schedule 5 years service 5 years service
Benefit Payments monthly for life monthly for life
Retirement Age 50 and Up 52 and Up
Monthly Benefits, as a % of eligible compensation 2.0% - 2.7%1.0% to 2.5%
Required Employee Contributions Rates 8%6.25%
Required Employer Contributions Rates 10.298%6.237%
Miscellaneous
Hire Date
Prior to
January 1, 2013
On or after
January 1, 2013
Benefit Formula 2.7% @ 55 2% @ 62
2015 Employer Contributions $917,113 $33,034
2014 Employer Contributions $821,641 $49
Miscellaneous
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2015 and 2014
Page 37
NOTE 9 – EMPLOYEE BENEFIT PLANS (Continued)
B. PENSION LIABILITIES, PENSION EXPENSES AND DEFERRED OUTFLOWS/INFLOWS OF
RESOURCES RELATED TO PENSIONS
As of December 31, 2015, the District reported net pension liabilities for its proportionate shares of
the net pension liability as follows:
The District’s net pension liability is measured as a proportionate share of the net pension liability. The
net pension liability is measured as of June 30, 2015, and the total pension liability used to calculate
the net pension liability was determined by an actuarial valuation as of June 30, 2014 rolled forward to
June 30, 2015 using standard update procedures. The District’s proportion of the net pension liability
was based on a projection of the District’s long-term share of contributions to the pension plans relative
to the projected contributions of all participating employers, actuarially determined. The District’s
proportionate share of the net pension liability for each plan as of June 30, 2015 is as follows:
Hire Date
Prior to
January 1, 2013
On or after
January 1, 2013
Benefit Formula 2.7% @ 55 2% @ 62 Total
Proportionate Share of Net
Pension Liability $8,014,258 ($858)$8,013,400
Miscellaneous
Hire Date
Prior to
January 1, 2013
On or after
January 1, 2013
Benefit Formula 2.7% @ 55 2% @ 62
0.29212%-0.00003%
Miscellaneous
Proportion - June 30, 2015
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2015 and 2014
Page 38
NOTE 9 – EMPLOYEE BENEFIT PLANS (Continued)
B. PENSION LIABILITIES, PENSION EXPENSES AND DEFERRED OUTFLOWS/INFLOWS OF
RESOURCES RELATED TO PENSIONS (Continued)
For the years ended December 31, 2015 and 2014 the District recognized pension expense of $565,373
and $806,399. At December 31, 2015 the District reported deferred outflows of resources and deferred
inflows of resources related to pensions from the following sources:
$721,340 reported as deferred outflows of resources related to contributions subsequent to the
measurement date will be recognized as a reduction of the net pension liability in the year ended
December 31, 2016. Other amounts reported as deferred outflows of resources and deferred inflows
of resources related to pensions will be recognized as pension expense as follows:
Deferred Outflows of
Resources
Deferred Inflows of
Resources
Pension contributions subsequent to measurement date 721,340
Differences between actual and expected experience 60,897
Changes in assumptions (576,143)
Change in employer's proportion and differences between
the employer's contributions and the employer's
proportionate share of contributions
Net differences between projected and actual earnings 1,476,766 (1,765,594)
on plan investments
Total $2,632,077 ($2,341,737)
373,074
Year Ended
December 31 Amount
2016 (122,982)
2017 (122,982)
2018 (112,829)
2019 (72,207)
2020 -
Thereafter -
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2015 and 2014
Page 39
NOTE 9 – EMPLOYEE BENEFIT PLANS (Continued)
B. PENSION LIABILITIES, PENSION EXPENSES AND DEFERRED OUTFLOWS/INFLOWS OF
RESOURCES RELATED TO PENSIONS (Continued)
Actuarial Assumptions – The actuarial methods and assumptions used for the December 31,
2015 and December 31, 2014 total pension liabilities are as follows:
(1) The mortality table used was developed based on CalPERS’ specific data. The Table includes 20 years of
mortality improvements using Society of Actuaries Scale BB. For more details on this table, please refer to
the 2014 experience study report.
All underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2013
valuation were based on results of a January 2014 actuarial experience study for the period 1997 to
2011. Further details of the Experience Study can be found on the CalPERS website.
Discount Rate - The discount rate used to measure the total pension liability as of December 31,
2015 and 2014 was 7.65% and 7.5%, respectively for each Plan. To determine whether the municipal
bond rate should be used in the calculation of a discount rate for each plan, CalPERS stress tested
plans that would most likely result in a discount rate that would be different from the actuarially assumed
discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the current
7.65% and 7.5% discount rates used are adequate and the use of the municipal bond rate calculation
is not necessary. The long term expected discount rate of 7.65% and 7.5% will be applied to all plans
in the Public Employees Retirement Fund (PERF). The stress test results are presented in a detailed
report that can be obtained from the CalPERS website.
2015 2014
Valuation Date June 30, 2014 June 30, 2013
Measurement Date June 30, 2015 June 30, 2014
Actuarial Cost Method
Actuarial Assumptions: .
Discount Rate 7.65%7.50%
Inflation
Payroll Growth
Salary Increase
Investment Rate of Return
Mortality (1)
Miscellaneous
Entry-Age Normal Cost Method
2.75%
3.00%
Varies by Entry Age and Service
7.5% Net of Pension Plan Investment and Administrative Expenses;
includes Inflation
Derived using CalPERS membership data for all funds
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2015 and 2014
Page 40
NOTE 9 – EMPLOYEE BENEFIT PLANS (Continued)
B. PENSION LIABILITIES, PENSION EXPENSES AND DEFERRED OUTFLOWS/INFLOWS OF
RESOURCES RELATED TO PENSIONS (Continued)
The long-term expected rate of return on pension plan investments was determined using a building-
block method in which best-estimate ranges of expected future real rate of return (expected returns,
net of pension plan investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both short-term and
long-term market return expectations as well as the expected pension fund cash flows. Using historical
returns of all the funds’ asset classes, expected compound returns were calculated over the short-term
(first 10 years) and the long term (11-60 years) using a building-block approach. Using the expected
nominal returns for both short-term and long-term, the present value of benefits was calculated for each
fund. The expected rate of return was set by calculating the single equivalent expected return that
arrived at the same present value of benefits for cash flows as the one calculated using both short-term
and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate
calculated above and rounded down to the nearest one quarter of one percent.
The table below reflects the long-term expected real rate of return by asset class. The rate of return
was calculated using the capital market assumptions applied to determine the discount rate and asset
allocation. The target allocation shown below was adopted by CalPERS’ Board effective on
July 1, 2015.
Asset Class
New Strategic
Allocation
Real Return
Years 1-10 (a)
Real Returns
Years 11+(b)
Global Equity 51.0%5.25%5.71%
Global Fixed Income 20.0%0.99%2.43%
Inflation Sensitive 6.0%0.45%3.36%
Private Equity 10.0%6.83%6.95%
Real Estate 10.0%4.50%5.13%
Infrastructure and Forestland 2.0%4.50%5.09%
Liquidity 1.0%-0.55%-1.05%
100.0%
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2015 and 2014
Page 41
NOTE 9 – EMPLOYEE BENEFIT PLANS (Continued)
B. PENSION LIABILITIES, PENSION EXPENSES AND DEFERRED OUTFLOWS/INFLOWS OF
RESOURCES RELATED TO PENSIONS (Continued)
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount
Rate - The following presents the District’s proportionate share of the net pension liability for each Plan,
calculated using the discount rate for each Plan, as well as what the District’s proportionate share of
the net pension liability would be if it were calculated using a discount rate that is 1% point lower or 1%
point higher than the current rate:
Pension Plan Fiduciary Net Position – Detailed information about each pension plan’s fiduciary net
position is available in the separately issued CalPERS financial reports.
C. PAYABLE TO THE PENSION PLAN
At December 31, 2015 and 2014 respectively the District did not report a payable for outstanding
required contributions to the pension plan.
D. DEFERRED COMPENSATION PLAN
The District maintains two deferred compensation plans: a 401(a) and a 457 plan, (the Plans) for certain
qualified employees. The District matches 6.78% of eligible employee contributions. In 2015 and 2014,
the total match was $53,605 and $19,593 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.
Prior to
January 1, 2013
On or after
January 1, 2013
Hire Date 2.7% @ 55 2% @ 62
1% Decrease 6.65%6.65%
Net Pension Liability $13,440,473 ($1,439)
Current Discount Rate 7.65%7.65%
Net Pension Liability $8,014,258 ($858)
1% Increase 8.65%8.65%
Net Pension Liability $3,534,291 ($378)
Miscellaneous
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2015 and 2014
Page 42
NOTE 9 – EMPLOYEE BENEFIT PLANS (Continued)
E. 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 includes medical
insurance, dental insurance, and prescriptions. The Retiree Health Plan does not issue a publicly available
financial report.
Post employment health care is available to all employees, and qualified dependents, that retire from the
District with at least 10 years of service. As of June 30, 2015, there were fifty 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 time,
accumulated deposits from the prior year, plus accrued interest, were transferred to the California
Employers’ Retiree Benefit Trust Program (CERBT).
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 financed 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
Sacramento, 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 prior to June 30, 2015 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 normal cost method. The June 30,
2015 unfunded actuarial accrued liability is being amortized as a level percentage of projected payroll on
an open basis, over a 20 year period, using the actuarial 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:
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2015 and 2014
Page 43
NOTE 9 – EMPLOYEE BENEFIT PLANS (Continued)
E. OTHER POST EMPLOYMENT BENEFITS (OPEB) (Continued)
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 time 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.
Significant actuarial assumptions for years prior to June 30, 2015 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
Significant actuarial assumptions after June 30, 2015 include:
Actuarial Cost Method Entry Age Normal
Asset Valuation Method Five-year smoothing formula with a 20% corridor around
market value
Discount Rate 7.0%
General Inflation 2.75% Annual Increase
Amortization of Unfunded Liability Closed 30 years; level percent for initial UAAL Open 20 years; level percent for residual UAAL
Annual % of Change in OPEB Net OPEB
Fiscal Required Interest Annual Annual Net OPEB Obligation Obligation
Year Contribution and OPEB Actual OPEB Cost Obligation (Asset)(Asset)
Ended*(ARC)Adjustments Cost Contribution Contributed (Asset)Beginning Ending
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)$
06/30/2015 647,851$ -$ 647,851$ 274,029$ 42.3%373,822$ (45,031)$ 328,791$
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2015 and 2014
Page 44
NOTE 9 – EMPLOYEE BENEFIT PLANS (Continued)
E. OTHER POST EMPLOYMENT BENEFITS (OPEB) (Continued)
The following is a funding schedule for the Retiree Health Plan:
The actuarial valuation issued July 1, 2015 had a significant increase in accrued liability of $3.8 million due
to a new Actuarial Standard of Practice 6 that became effective for valuations after March 1, 2015 that
requires valuing an “implicit rate subsidy”. Though the District has an employer cap on retiree benefits, the
liability of providing them based on the expected premiums of the plan are now required to be recognized
in the actuarial valuation to guarantee the stability of the plan for the long run which nearly doubled the
normal costs and liabilities.
NOTE 10 – SELF FUNDED INSURANCE
The District has a self-funded vision insurance program and claims were processed by and on behalf of the
District. The District did not maintain a claim liability; rather claims were expensed as paid. The amount of
claims paid for each of the past three years have not been material.
Accrued Actuarial Unfunded Funded Annual
Valuation Liabilities Value of Liabilities Ratio Covered UL as a %
Date*(AL)Assets (AVA)(UL)(AVA/AL)Payroll of Payroll
01/01/2011 2,501,800$ 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%
07/01/2015 6,755,593$ 1,579,982$ 5,175,611$ 23.4%6,360,511$ 81.4%
*Valuations are required once every two years. In 2011, the vaulation
date changed to July 1 in compliance with GASB Statement No. 57.
Schedule of Retiree Health Plan Funding Progress
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2015 and 2014
Page 45
NOTE 11 – SEGMENT DISCLOSURE
The District has issued revenue bonds to finance electric and water distribution facilities. The District also
issued special tax bonds secured by tax revenues from Mello-Roos Community Facilities Districts. Each
project has an external requirement to be reported separately, and investors in the revenue bonds and
special tax bonds rely solely on the revenue generated by the individual projects for repayment. Summary
financial information for each project is presented on the following pages for the years ending December
31, 2015 and 2014.
STATEMENT OF NET POSITION
Gray's Old
Electric Water Crossing Greenwood
Current assets 16,871,099$ 11,359,701$ 8,253,684$ 1,144,106$
Non-current assets:
Capital assets, net 47,078,580 75,338,088 - -
Restricted assets - 1,900,036 - -
Other long-term assets 997,853 4,363,790 - -
Total Noncurrent Assets 48,076,433 81,601,914 - -
Deferred outflows of resources
Pension 1,579,246 1,052,831 - -
Unamortized loss on refunding - 642,382 - -
Total Deferred Outflows of Resources 1,579,246 1,695,213 - -
TOTAL ASSETS AND DEFERRED OUTFLOWS 66,526,778$ 94,656,828$ 8,253,684$ 1,144,106$
OF RESOURCES
Current liabilities 4,388,630$ 2,912,146$ 1,124,984$ 419,594$
Non-current Liabilities
Long-term debt, net of current portion 4,996,594 25,587,176 31,597,692 9,811,500
Net pension liability 4,808,040 3,205,360 - -
Unearned revenues 2,585,854 640,855 1,299,558 328,788
Total Noncurrent Liabilities 12,390,488 29,433,391 32,897,250 10,140,288
Total Liabilities 16,779,118 32,345,537 34,022,234 10,559,882
Deferred inflows of resources
Pension 1,405,042 936,695 - -
Total Deferred Inflows of Resources 1,405,042 936,695 - -
Net Position
Net investment in capital assets 40,828,835 47,786,674 (32,137,692) (10,090,500)
Restricted for debt service 944,929 4,817,195 2,807,577 -
Unrestricted 6,568,854 8,770,727 3,561,565 674,724
Total Net Position 48,342,618 61,374,596 (25,768,550) (9,415,776)
TOTAL LIABILITIES, DEFERRED INFLOWS 66,526,778$ 94,656,828$ 8,253,684$ 1,144,106$
OF RESOURCES AND NET POSITION
ASSETS
December 31, 2015
LIABILITIES
LIABILITIES AND NET POSITION
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2015 and 2014
Page 46
NOTE 11 – SEGMENT DISCLOSURE (Continued)
STATEMENT OF NET POSITION (CONTINUED)
Gray's Old
Electric Water Crossing Greenwood
Current assets 17,011,546$ 14,587,013$ 7,823,186$ 1,167,859$
Non-current assets:
Capital assets, net 43,384,263 75,938,199 - -
Restricted assets - 1,937,917 - -
Other long term assets 1,060,085 5,012,321 - -
Total Noncurrent Assets 44,444,348 82,888,437 - -
Deferred outflows of resources
Pension 300,379 200,253 - -
Total Deferred Outflows of Resources 300,379 200,253 - -
TOTAL ASSETS AND DEFERRED OUTFLOWS 61,756,273$ 97,675,703$ 7,823,186$ 1,167,859$
OF RESOURCES
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
Net pension liability 3,726,591 2,484,394 - -
Unearned revenues 2,352,353 434,410 1,284,581 345,877
Total Noncurrent Liabilities 11,741,283 31,909,158 33,417,068 10,436,377
Total Liabilities 15,619,124 34,679,394 34,484,510 10,834,409
Deferred inflows of resources
Pension 1,301,204 867,470 - -
Total Deferred Inflows of Resources 1,301,204 867,470 - -
Net Position
Net investment in capital assets 37,197,945 45,415,680 (32,607,487) (10,344,400)
Restricted for debt service 1,109,740 6,659,078 2,752,843 -
Unrestricted 6,528,260 10,054,081 3,193,320 677,850
Total Net Position 44,835,945 62,128,839 (26,661,324) (9,666,550)
TOTAL LIABILITIES, DEFERRED INFLOWS 61,756,273$ 97,675,703$ 7,823,186$ 1,167,859$
OF RESOURCES AND NET POSITION
December 31, 2014 (as restated)
LIABILITIES
ASSETS
LIABILITIES AND NET POSITION
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2015 and 2014
Page 47
NOTE 11 – SEGMENT DISCLOSURE (Continued)
STATEMENTS OF REVENUE, EXPENSES, AND CHANGES IN NET POSITION
Year ended December 31, 2015
Gray’s Old
Electric Water Crossing Greenwood
Operating Revenues
Sales to consumers 20,505,263$ 10,313,593$ -$ -$
Other operating revenues 3,156,585 475,484 - -
Operating expenses 18,944,380 7,461,394 - -
Depreciation 2,375,757 3,584,763 - -
Non-operating revenues (expenses)106,127 (868,838) 892,774 250,774
Income (loss) before
capital contributions 2,447,838 (1,125,918) 892,774 250,774
Capital contributions, net 1,058,835 371,675 - -
CHANGE IN NET POSITION 3,506,673 (754,243) 892,774 250,774
Net Position, Beginning 44,835,945 62,128,839 (26,661,324) (9,666,550)
NET POSITION, ENDING 48,342,618$ 61,374,596$ (25,768,550)$ (9,415,776)$
Year ended December 31, 2014 (as restated)
Gray’s Old
Electric Water Crossing Greenwood
Operating Revenues
Sales to consumers 20,229,134$ 10,102,819$ -$ -$
Other operating revenues 3,323,656 554,237 - -
Operating expenses (19,495,323) (7,363,925) - -
Depreciation (2,134,453) (3,466,848) - -
Non-operating revenues (expenses)(4,254) (822,014) 766,405 (3,768)
Income (loss) before
capital contributions 1,918,760 (995,731) 776,405 (3,768)
Capital contributions, net 337,805 656,251 - -
CHANGE IN NET POSITION 2,256,565 (339,480) 776,405 (3,768)
Net Position, Beginning 53,643,210 65,693,242 (27,437,729) (9,662,782)
Less, Accumulated adjustment for change in (11,063,830) (3,224,923) - -
accounting position
Net Position, Beginning of year, as adjusted 42,579,380 62,468,319 (27,437,729) (9,662,782)
NET POSITION, ENDING 44,835,945$ 62,128,839$ (26,661,324)$ (9,666,550)$
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2015 and 2014
Page 48
NOTE 11 – SEGMENT DISCLOSURE (Continued)
STATEMENTS OF CASH FLOWS
Year ended December 31, 2015
Gray’s Old
Electric Water Crossing Greenwood
NET CASH PROVIDED BY (USED IN)
Operating activities 5,230,727$ 3,052,344$ -$ -$
Noncapital financing activities (894,725) - - -
Capital and related financing activities (4,820,206) (6,781,907) (296,361) 44,114
Investing activities 89,048 324,675 5,042 727
(395,156) (3,404,888) (291,319) 44,841
Cash and Cash Equivalents, Beginning 13,325,749 13,067,890 3,359,107 441,689
CASH AND CASH
EQUIVALENTS, ENDING 12,930,593$ 9,663,002$ 3,067,788$ 486,530$
Year ended December 31, 2014
Gray’s Old
Electric Water Crossing Greenwood
NET CASH PROVIDED BY (USED IN)
Operating activities 3,793,204$ 3,273,821$ -$ -$
Noncapital financing activities (863,150) - - -
Capital and related financing activities (2,449,929) (4,177,909) (133,405) (1,253,164)
Investing activities 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$
cash equivalents
Net increase (decrease) in cash and
Net increase (decrease) in cash and
cash equivalents
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2015 and 2014
Page 49
NOTE 12 – MARTIS VALLEY GROUNDWATER 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 Community Services District (NCSD)
and Placer County Water Agency (PCWA) are the three primary public water agencies in the Martis
Valley Basin. Together, the TDPUD, NCSD and PCWA (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 information and understanding 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 component will be part of the final
groundwater model.
Partner agencies each adopted the Groundwater Management Plan (GMP) in February 2012 and the
model and associated report was completed in 2015. The total cost of the project was approximately
$1,000,000, which includes federal funding of approximately $500,000 from the U.S. Bureau of
Reclamation and $250,000 from the Lawrence Livermore National Laboratory; and contributions of
$150,000 from TDPUD and $100,000 from the other members of the Partnership Agencies.
NOTE 13 – CLAIMS AND JUDGMENTS
From time to time, the utility is party to various pending claims and legal proceedings. Although the
outcome of such matters cannot be forecasted with certainty, it is the opinion of management and the
utility's legal counsel that the likelihood is remote that any such claims or proceedings will have a
material adverse effect on the utility's financial position or results of operations.
NOTE 14 – RISK MANAGEMENT
The utility is exposed to various risks of loss related to torts; theft of, damage to, or destruction of assets;
errors and omissions; workers compensation; and health care of its employees. These risks are
covered through the purchase of commercial insurance, with minimal deductibles. Settled claims have
not exceeded the commercial liability in any of the past three years. There were no significant
reductions in coverage compared to the prior year.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2015 and 2014
Page 50
NOTE 15 – CHANGE IN ACCOUNTING PRINCIPLE
As a result of implementing GASB Statement No. 68, the District has restated beginning net position
as of January 1, 2014 by $14,288,753 to $67,947,188. This includes in part of the implementation, the
pension side-fund payoff that occurred in 2011 and which had been reported on the Electric Utility as
an asset has been written off due to the District’s participation in the multi-employer cost-sharing
retirement plan with CalPERS. The total impact on the Statement of Net Position as of December 31,
2014 and the Statement of Revenues, Expenses, and Changes in Net Position for the year ended
December 31, 2014 is as follows:
2014 2014
As Restated Originally Reported
Current assets 40,589,604$ 40,589,604$
Non-current assets:
Capital assets, net 119,322,462 119,322,462
Restricted assets 1,937,917 1,937,917
Amortized pension obligation - 6,177,000
Other long-term assets 6,072,406 6,072,406
Deferred outflows of resources 500,632 -
TOTAL ASSETS 168,423,021$ 174,099,389$
Current liabilities 8,113,551$ 8,113,551$
Non-current Liabilities
Long-term debt, net of current portion 76,875,680 76,875,680
Net Pension Liability 6,210,985
Unearned revenues 4,417,221 4,417,221
Total Liabilities 95,617,437 89,406,452
Deferred inflows of resources
Pension 2,168,674 -
Total Deferred Inflows of Resources 2,168,674 -
NET POSITION
Invested in capital assets, net of related debt 39,661,738 45,838,738
Restricted for debt service 10,521,661 10,521,661
Unrestricted 20,453,511 28,332,538
Total Net Position 70,636,910 84,692,937
TOTAL LIABILITIES, DEFERRED
INFLOWS OF RESOURCES
AND NET POSITION 168,423,021$ 174,099,389$
ASSETS
LIABILITES, DEFERRED INFLOWS OF
RESOURCES AND NET POSITION
CONSOLIDATED STATEMENT OF NET POSITION
2014 2014
As Restated Originally Reported
Sales to consumers 30,331,953$ 30,331,953$
Other operating revenues 2,296,643 2,296,643
Total Operating Revenues 32,628,596 32,628,596
Operating expenses 30,879,299 31,112,025
Operating Income (Loss)1,749,297 1,516,571
Non-operating revenues (expenses)(53,631) (53,631)
Income (loss) before
capital contributions 1,695,666 1,462,940
Capital contributions, net 994,056 994,056
Change in net position 2,689,722 2,456,996
Net Position, Beginning of Year 82,235,941 82,235,941
Less: Restatement for change in
accounting principal (14,288,753) -
Net Position, Beginning of Year, as adjusted 67,947,188 82,235,941
NET POSITION, END OF YEAR 70,636,910$ 84,692,937$
CONDENSED REVENUES, EXPENSES, AND CHANGES IN NET POSITION
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
REQUIRED SUPPLEMENTARY INFORMATION
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2015 and 2014
Page 53
COST SHARING DEFINED BENEFIT PENSION PLANS
Schedule of the District's Proportionate Share of the Net Pension Liability
Cost Sharing Defined Benefit Plans
As of June 30, 2015
Last Ten Years*
2015 2014 2015 2014
Hire Date
Prior to
January 1, 2013
Prior to
January 1, 2013
On or after
January 1, 2013
On or after
January 1, 2013
Benefit Formula 2.7% @ 55 2.7% @ 55 2% @ 62 2% @ 62
Portion of Net Pension Liability 0.29212%0.09981%-0.00003%0.00001%
Proportionate Share of The Net Pension Liability $8,014,258 $6,210,617 ($858)$368
Covered - Employee Payroll $5,633,888 $6,233,597 $528,543 $44,948
Proporationate Share of the Net Pension Liability
as Percentage of Covered Payroll 142.25%99.63%-0.16%0.82%
Plan's Fidicuiary Net Position $30,714,838 $30,384,304 $10,678 $1,797
Plan Fiduciary Net Position as a percentage of the
Total Pension Liability 79.31%83.03%108.74%83.00%
* Fiscal year 2014 was the 1st year of implementation, therefore only two years are shown
Miscellaneous
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2015 and 2014
Page 54
Schedule of Contributions
Cost Sharing Defined Benefit Plans
As of June 30, 2015
Last Ten Years*
2015 2014 2015 2014
Prior to
January 1, 2013
Prior to
January 1, 2013
On or after
January 1, 2013
On or after
January 1, 2013
Hire Date 2.7% @ 55 2.7% @ 55 2% @ 62 2% @ 62
Contractually Required Contribution (Actuarially
Determined)$917,113 $936,031 $33,034 $7,087
Contributions in Relation to the Actuarially
Determined Contributions $917,937 $936,031 $31,697 $7,087
Contribution deficiency (excess)$824 $0 ($1,337)$0
Covered - Employee Payroll $5,633,888 $6,233,597 $528,543 $44,948
Contributions as a percentage of covered-
employee payroll 16.29%15.02%6.00%15.77%
* Fiscal year 2014 was the 1st year of implementation, therefore only two years are shown
Miscellaneous
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2015 and 2014
Page 55
Notes to Schedule
The actuarial methods and assumptions used to set the actuarially determined contributions for the years ended December 31, 2015 and 2014
were derived from the June 30, 2012 and 2011 funding valuation reports.
Methods and Assumptions used to determine contribution rates:
Actuarial Cost Method
Amortization Method/Period
Asset Valuation Method
Inflation
Salary Increases
Payroll Growth
Investment Rate of Return
Retirement Age
Mortality Rate Table
7.5% Net of Pension Plan Investment and
Administrative Expenses: includes
Inflation
The probabilities of mortality are based on
the 2010 CalPERS Experience Study of
the period from 1997 to 2007. Pre-
retirement and Post-retirement mortality
rates include 5 years of projected
mortality improvement using Scale AA
published by the Society of Actuaries.
3.0%
The probabilities of retirement are based
on the 2010 CalPERS Experience Study
for the period from 1997 to 2007
Entry Age Normal
For details, see June 30, 2012 and 2011
Funding Valuation Reports
Actuarial value of assets. For Details see
June 30, 2012 and 2011 Funding
Valuation Reports
2.75%
Varies by Entry Age and Service
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2015 and 2014
Page 56
POSITION OF OTHER POST EMPLOYMENT BENEFIT PLANS
Accrued Actuarial Unfunded Funded Annual
Valuation Liabilities Value of Liabilities Ratio Covered UL as a %
Date*(AL)Assets (AVA)(UL)(AVA/AL)Payroll of Payroll
01/01/2006 2,328,500$ -$ 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%
07/01/2015 6,755,593$ 1,579,982$ 5,175,611$ 23.4%6,360,511$ 81.4%
*Retire Health Plan funding began in 2007. Valuations are required once every two years. The valaution
date changed to July 1 in compliance with GASB Statement No. 57.
For the Years Ended January 1, 2006, 2007, 2009, 2011, 2013 and July 1, 2015*
Retiree Health Plan Funding History
SUPPLEMENTAL INFORMATION
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
SUPPLEMENTARY INFORMATION
December 31, 2015 and 2014
Page 58
CONSOLIDATING STATEMENT OF NET POSITION
As of December 31, 2015
Electric Operations Water Operations Gray's Crossing Old Greenwood Eliminations Totals
ASSETS
CURRENT ASSETS
Funds
Operating 4,225,538$ 2,390,816$ 31,169$ 486,530$ -$ 7,134,053$
Designated 7,756,173 4,158,114 - - - 11,914,287
Restricted 947,319 3,114,072 3,036,619 - - 7,098,010
Total Funds 12,929,030 9,663,002 3,067,788 486,530 - 26,146,350
Accounts receivable, net 1,085,588 553,508 5,163,771 657,576 - 7,460,443
Unbilled revenues 2,068,468 698,289 - - - 2,766,757
Accrued interest receivable 7,570 63,286 22,125 - - 92,981
Materials and supplies 489,387 150,055 - - - 639,442
Prepaid expenses 248,451 188,451 - - - 436,902
Other 42,605 43,110 - - - 85,715
Total Current Assets 16,871,099 11,359,701 8,253,684 1,144,106 - 37,628,590
NON-CURRENT ASSETS
Other Non-Current Assets
Restricted funds - 1,900,036 - - - 1,900,036
Special assessments receivable - 4,363,790 - - - 4,363,790
Other 997,853 - - - - 997,853
Total Other Non-Current Assets 997,853 6,263,826 - - - 7,261,679
DEFERRED OUTFLOWS OF RESOURCES
Pension 1,579,246 1,052,831 - - - 2,632,077
Unamortized loss on refunding - 642,382 - - - 642,382
Total deferred outflows of resources 1,579,246 1,695,213 - - - 3,274,459
CAPITAL ASSETS
Utility plant 64,620,008 110,995,066 - - - 175,615,074
Accumulated depreciation (21,732,753) (36,309,695) - - - (58,042,448)
Construction work in progress 4,191,325 652,717 - - - 4,844,042
Total capital assets 47,078,580 75,338,088 - - - 122,416,668
TOTAL ASSETS AND DEFERRED OUTFLOWS OF RESOURCES 66,526,778$ 94,656,828$ 8,253,684$ 1,144,106$ -$ 170,581,396$
Component Units
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
SUPPLEMENTARY INFORMATION
December 31, 2015 and 2014
Page 59
Electric Operations Water Operations Gray's Crossing Old Greenwood Eliminations Totals
NET POSITION AND LIABILITIES
CURRENT LIABILITIES
Other liabilities
Accounts payable 2,935,715$ 47,386$ -$ -$ -$ 2,983,101$
Customer deposits 343,074 80,428 - - - 423,502
Other 441,753 324,946 - - - 766,699
Total other liabilities 3,720,542 452,760 - - - 4,173,302
Current liabilities payable from restricted assets:
Current portion of long-term debt 665,745 2,270,174 540,000 279,000 - 3,754,919
Accrued interest payable 2,343 189,212 584,984 140,594 - 917,133
Total Current Liabilities Payable from Restricted Assets 668,088 2,459,386 1,124,984 419,594 - 4,672,052
Total Current Liabilities 4,388,630 2,912,146 1,124,984 419,594 - 8,845,354
NON-CURRENT LIABILITIES
Long-term debt, net of discounts and premiums 4,928,000 25,281,240 31,597,692 9,811,500 - 71,618,432
Net pension liability 4,808,040 3,205,360 8,013,400
Installment loans 68,594 305,936 - - - 374,530
Unearned revenues 2,585,854 640,855 1,299,558 328,788 - 4,855,055
Total non-current liabilities 12,390,488 29,433,391 32,897,250 10,140,288 - 84,861,417
Total Liabilities 16,779,118 32,345,537 34,022,234 10,559,882 - 93,706,771
DEFERRED INFLOWS OF RESOURCES
Pension 1,405,042 936,695 - - - 2,341,737
Total deferred inflows of resources 1,405,042 936,695 - - - 2,341,737
NET POSITION
Net investment in capital assets 40,828,835 47,786,674 (32,137,692) (10,090,500) - 46,387,317
Restricted for debt service 944,929 4,817,195 2,807,577 - - 8,569,701
Unrestricted 6,568,854 8,770,727 3,561,565 674,724 - 19,575,870
Total Net Position 48,342,618 61,374,596 (25,768,550) (9,415,776) - 74,532,888
TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND NET POSITION 66,526,778$ 94,656,828$ 8,253,684$ 1,144,106$ -$ 170,581,396$
Component Units
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
SUPPLEMENTARY INFORMATION
December 31, 2015 and 2014
Page 60
CONSOLIDATING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
For the Year Ended December 31, 2015
Electric Operations Water Operations Gray's Crossing Old Greenwood Eliminations Totals
OPERATING REVENUES
Sales to customers 20,505,263$ 10,313,593$ -$ -$ -$ 30,818,856$
Interdepartmental sales 1,083,070 2,063 - - (1,085,133) -
Standby fees 23,170 145,840 - - - 169,010
Cap and trade proceeds 965,402 - - - - 965,402
Other 1,084,943 327,581 - - (388,795) 1,023,729
Total Operating Revenues 23,661,848 10,789,077 - - (1,473,928) 32,976,997
OPERATING EXPENSES
Purchased power 11,348,241 - - - - 11,348,241
Operations and maintenance 3,467,355 4,422,049 - - (1,085,133) 6,804,271
Consumer services 1,434,426 725,096 - - - 2,159,522
Administration and general 2,355,134 2,088,100 - - (388,795) 4,054,439
Pension expense (credit)339,224 226,149 - - - 565,373
Depreciation 2,375,757 3,584,763 - - - 5,960,520
Total Operating Expenses 21,320,137 11,046,157 - - (1,473,928) 30,892,366
Operating Income 2,341,711 (257,080) - - - 2,084,631
NON-OPERATING REVENUE (EXPENSES)
Special tax revenue - - 2,631,416 674,664 - 3,306,080
Investment income 95,854 289,877 14,004 (6,733) - 393,002
Interest expense (4,721) (938,313) (1,769,866) (428,858) - (3,141,758)
Amortization - 15,355 (5,205) - - 10,150
Other non-operating revenues - - 22,425 11,701 - 34,126
Other non-operating expenses - (251,753) - - - (251,753)
Gain (loss) on disposition of assets 14,994 15,996 - - - 30,990
Total Non-Operating Expenses 106,127 (868,838) 892,774 250,774 - 380,837
Income Before Contributions 2,447,838 (1,125,918) 892,774 250,774 - 2,465,468
CAPITAL & OTHER CONTRIBUTIONS, net
Capital Contributions 851,255 579,255 - - - 1,430,510
Intercompany Debt Service - Pension Sidefund 207,580 (207,580) - - - -
Total Capital and Other Contributions, net 1,058,835 371,675 - - - 1,430,510
CHANGE IN NET POSITION 3,506,673 (754,243) 892,774 250,774 - 3,895,978
NET POSITION - Beginning of Year 44,835,945 62,128,839 (26,661,324) (9,666,550) - 70,636,910
NET POSITION - END OF YEAR 48,342,618$ 61,374,596$ (25,768,550)$ (9,415,776)$ -$ 74,532,888$
Component Units
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
SUPPLEMENTARY INFORMATION
December 31, 2015 and 2014
Page 61
CONSOLIDATING STATEMENT OF CASH FLOWS
For the Year Ended December 31, 2015
Electric Operations Water Operations Gray's Crossing Old Greenwood Eliminations Total
CASH FLOWS FROM OPERATING ACTIVITIES
Received from customers 23,730,002$ 10,694,488$ -$ -$ (1,473,928)$ 32,950,562$
Paid to suppliers for goods and services (14,568,793) (5,413,100) - - 1,473,928 (18,507,965)
Paid to employees for services (3,930,482) (2,229,044) - - - (6,159,526)
Net Cash Flows from Operating Activities 5,230,727 3,052,344 - - - 8,283,071
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Principal payments on long-term debt (593,000) - - - - (593,000)
Interest payments on long-term debt (301,725) - - - - (301,725)
Net Cash Flows from Noncapital Financing Activities (894,725) - - - - (894,725)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Capital expenditures for utility plant (5,934,322) (3,080,670) - - - (9,014,992)
Cost of disposal of property net of salvage (124,976) 15,787 - - - (109,189)
Capital contributions, connection and facility fees 950,736 752,444 - - - 1,703,180
Special assessments receipts - 648,531 - - - 648,531
Special tax receipts - - 1,955,963 730,410 - 2,686,373
Debt issuance costs - 251,754 - - - 251,754
Proceeds from refunding - 14,781,118 - - - 14,781,118
Principal payments on long-term debt (9,318) (18,544,127) (475,000) (253,900) - (19,282,345)
Interest payments on long-term debt 297,674 (1,606,744) (1,777,324) (432,396) - (3,518,790)
Cash Flows From Capital and Related Financing Activities (4,820,206) (6,781,907) (296,361) 44,114 - (11,854,360)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest income received 89,048 324,675 5,042 727 - 419,492
Cash Flows from Investing Activities 89,048 324,675 5,042 727 - 419,492
Net Change in Cash and Cash Equivalents (395,156) (3,404,888) (291,319) 44,841 - (4,046,522)
CASH AND CASH EQUIVALENTS – Beginning of Year 13,325,749 13,067,890 3,359,107 441,689 - 30,194,435
CASH AND CASH EQUIVALENTS – END OF YEAR 12,930,593$ 9,663,002$ 3,067,788$ 486,530$ -$ 26,147,913$
NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES
During 2015: $134,020 and $33,257 of capital assets were contributed to the electric and water utilities, respectively, by customers and developers.
$715,464 and $668,230 of prior period unearned revenues were recognized by the electric and water utilities, respectively.
$1,284,581 and $345,877 of prior period unearned revenues were recognized by the component units, Gray's Crossing and Old Greenwood, respectively.
Component Units
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
SUPPLEMENTARY INFORMATION
December 31, 2015 and 2014
Page 62
Electric Operations Water Operations Gray's Crossing Old Greenwood Eliminations Total
RECONCILIATION OF OPERATING INCOME TO NET CASH
FLOWS FROM OPERATING ACTIVITIES
Operating income 2,341,711$ (257,080)$ -$ -$ -$ 2,084,631$
Noncash items included in operating income
Depreciation and amortization 2,375,757 3,584,763 - - - 5,960,520
Depreciation charged to other accounts 138,239 129,483 - - - 267,722
Intercompany Transfer 207,579 (207,579) -
Pension expense - GASB 68 339,224 226,149 565,373
Deferred Pension Contributions - GASB 68 (432,804) (288,536) (721,340)
Accounts receivable and unbilled revenues (137,756) (98,410) - - - (236,166)
Materials and supplies (18,837) 14,212 - - - (4,625)
Prepaid expenses and other current assets (91,310) (91,310) - - - (182,620)
Accounts payable 398,601 (779) - - - 397,822
Customer deposits (1,669) 3,821 - - - 2,152
Other current liabilities 111,992 37,610 - - - 149,602
NET CASH FLOWS FROM OPERATING ACTIVITIES 5,230,727$ 3,052,344$ -$ -$ -$ 8,283,071$
RECONCILIATION OF CASH AND CASH EQUIVALENTS
TO THE BALANCE SHEET
Operating 4,225,538$ 2,390,816$ 31,169$ 486,530$ -$ 7,134,053$
Designated 7,756,173 4,158,114 - - - 11,914,287
Restricted bond funds - current 947,319 3,114,072 3,036,619 - - 7,098,010
Restricted bond funds - non-current - 1,900,036 - - - 1,900,036
Total Cash and Investments 12,929,030 11,563,038 3,067,788 486,530 - 28,046,386
Less: Long-term investments - (1,698,880) - - - (1,698,880)
Mark to market adjustment 1,563 (201,156) - - - (199,593)
TOTAL CASH AND CASH EQUIVALENTS 12,930,593$ 9,663,002$ 3,067,788$ 486,530$ -$ 26,147,913$
Component Units