HomeMy WebLinkAbout12 Assessment District Update� w
To: Board of Directors
From: Regina Wise
Date: July 19, 2017
Subject: Review of:
a) Glenshire Water System Upgrade Surcharge
b) Donner Lake Assessment District
c) Other Area Improvement Funds
1. WHY THIS MATTER IS BEFORE THE BOARD
The 15 year Glenshire Water System Upgrade Surcharge ends this November 2017.
This workshop is intended to update the Board on the status of the surcharge and the
District's plan on handling the final months of the surcharge in relation to the final debt
payment required in November 2017. Additionally, the workshop will also do a
general review of the Donner Lake Assessment District and remaining other area
improvement funds.
2. HISTORY
Glenshire Surcha
In 2002, the District received cash and other assets as part of its acquisition of the
Glenshire Mutual Water Company. In 2011, the District sold a parcel from the
Glenshire Mutual Water Company assets. The net proceeds were transferred to the
Glenshire Escrow Account and the monthly water system upgrade surcharge was then
able to be reduced from $10.75 to $4.75. The District is scheduled to receive the
monthly water system upgrade surcharge from Glenshire residents thru November 30,
2017. The funds received from customers for the Glenshire Surcharge pay the
installment loan related to the Glenshire water system improvements as specified in
the terms of the acquisition agreement. In review of the anticipated surcharge
proceeds and final debt payment scheduled for November 2017, projections are
showing that the District will have enough funds to satisfy the final debt payment from
the funds that will be received from the surcharge thru the October 2017 processing of
water bills. Upon reconciliation, and after the October billing process completes, the
District plans on ending the Glenshire Water System Upgrade Surcharge for any
future customer billings and the remaining payment on the loan will be satisfied in full
in 2017.
Donner Lake Assessment District
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 which was financed
with a 20 year loan through the State Revolving Fund (SRF). 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. The
assessment ends after the 2020/2021 tax roll on property owner tax bills. The project
incurred excess expenses of the originally anticipated $13 million of $2.6 million that
was financed in the 2006 COP over 30 years. Customers additionally agreed to a
monthly $6.65 water system upgrade surcharge to reimburse the District for the
excess expenses incurred. The District is scheduled to receive the surcharge from
Donner Lake residents thru November 2036 to fully satisfy the entire cost of the water
system improvements of $15.6 million.
Other Area Improvement Funds
Sewer Assessment District 2 (SAD 2) - In 1969, Nevada County issued bonds for
utility improvements in the Gateway and Meadow Park area. On or about 1994,
Nevada County transfered residual funds of about $42,000 to Truckee Donner PUD to
be used to maintain the water assets in SAD 2. In 2009 and 2010, a total of just
under $63,000 (including interest earned) was utilized towards pipeline replacement
projects.
West River Street Assessment District (WRSAD) - In 1974 WRSAD was formed to
provide water services along West River Street after wells dried up. In 1994 residual
balance of $18,000 was remaining and will be used to improve water assets within this
assessment district.
3. NEW INFORMATION
As of December 31, 2016:
• The Glenshire Surcharge paid by customers is projected to end October 31,
2017;
• The principal amount due on the long-term debt associated with Glenshire was
$162,063, the loan will be paid in full in November 2017;
• The principal amount due on the long-term debt associated with Donner Lake
Assessment District was $6,786,402 and is amortized through 2026;
• The remaining outstanding principle from the $2.6 million excess on the Donner
Lake Water System Improvements is approximately $1,350,000 and is
amortized through 2036,
• The monthly Donner Lake Water System Improvement Surcharge of $6.65 is
scheduled to continue on customer bills to November 2036;
• The fund balance of the other area improvement fund for SAD 2 was $17,006
and will be used for future improvements; and
• The fund balance of the other area improvement fund for WRSAD was $35,251
and will be used for future improvements.
4. FISCAL IMPACT
There is no fiscal impact associated with this workshop.
5. RECOMMENDATION
Review this report and provide comment.
Jeremy Popov
Administrative Services Manager
Michael D. Holley
General Manager