HomeMy WebLinkAbout4 Annual Report and Financial Statementenda Item #
FINANCE BUSINESS ITEM
To: Board of Directors
From: Regina Wise
Date: July 18, 2018
Subject: Consideration of Accepting the Annual Report and Financial
Statements
1. WHY THIS MATTER IS BEFORE THE BOARD
Approval of the annual disclosure report and audited financial statements is solely
within the purview of the Financing Corporation Board.
2. HISTORY
The Financing Corporation Board reviews and approves the annual disclosure report.
Also, provided is a copy of the most recent audited financial statements of the
Truckee Donner Public Utility District.
The annual disclosure report is prepared according to the requirements of the
continuing disclosure statements for the refunded 2015 Certificates of Participation.
3. NEW INFORMATION
Attached are the following reports:
• Certificates of Participation (Water System Improvements) Series 2015 -
Refunded Portion Annual Report as of December 31, 2017 (Attachment 1)
• Truckee Donner Public Utility District annual audited financial statements as of
December 31, 2017 (Attachment 2)
4. FISCAL IMPACT
There is no fiscal impact associated with this action.
5. RECOMMENDATION
Approve the annual disclosure report and audited financial statements for the 2015
Certificate of Participation continuing disclosure requirements.
Regina Wise
Treasurer
Michael D. Holley
Secretary
Attachment 1
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
CERTIFICATES OF PARTICIPATION
(WATER SYSTEM IMPROVEMENT PROJECTS)
SERIES 2015 -REFUNDED PORTION
ANNUAL REPORT 12/31/2017
CONTINUING DISCLOSURE CERTIFICATE: 4. Content of Annual Reports
(a) The audited financial statements were electronically forwarded to
Bank of New York on 06/13/2018.
(b) The principal amount of refunded Certificates outstanding was $1219603000
as of December 31, 2017.
(c) The Reserve is no longer required due to the 2015 refunding.
(d) Updated tables from "THE WATER SYSTEM OF THE DISTRICT"
IN THE Official Statement are attached.
(i) "TRUCKEE DONNER PUBLIC UTILITY DISTRICT -
Historic Water Production and Accounts" on page 30
in the 2015 Refunding of the Official Statement.
(ii) "TRUCKEE DONNER PUBLIC UTILITY DISTRICT -
Historic Sales Revenue" on page 30
in the 2015 Refunding of the Official Statement.
(iii) "TRUCKEE DONNER PUBLIC UTILITY DISTRICT -
Largest Customers" on page 32
in the 2015 Refunding of the Official Statement.
(iv) "TRUCKEE DONNER PUBLIC UTILITY DISTRICT -
Historic Operating Results of Debt Service Coverage" on page 42
in the 2015 Refunding of the Official Statement.
Year
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
TRUCKLE DONNER PUBLIC UTILITY DISTRICT
Historic Water Production and Accounts
Total
Production
(Million
Gallons)
1,736
2,198
25208
2,424
2,206
2,371
2,433
2,304
2,056
1,786
1,727
1,857
1,846
1,682
1,381
1,460
1,471
Increase/
(Decrease)
26.61
0.45%
9.78%
-8.99%
7.48%
2.61%
-5.30%
-10.76%
-13.13%
-3.31%
7.53%
-0.58%
-8.88%
-1T90%
5.72%
0.78%
Commercial
Accounts
481
548
563
582
605
646
641
656
670
695
709
706
706
699
704
706
706
Increase/
(Decrease)
13.93%
2.74%
3.37%
3.95%
6.78%
-0.77%
2.34%
2.13%
3.73%
2.01%
-0.42%
0.00%
-0.99%
0.72%
0.28%
0.00%
Residential
Accounts
8,130
10,268
10,191
10,739
11,146
11,136
11,801
11,843
11,900
11,876
11,711
11,753
11,809
11,915
12,012
12,121
12,218
Increase/
(Decrease)
26.30%
2.17%
2.36%
3.79%
2.60%
3.19%
0.36%
0.48%
0%
9%
0.36%
0.48%
0.90%
0.81%
0.91
0.80%
TRUCKEE DONNER PUBLIC UTILTIY DISTRICT
Historic Water Sales Revenues
% Increase/ % Increase/
Year Residential (Decrease) Commercial (Decrease)
2001 $35944,222 $4763195
2002 5,0135242 27.10% 647,822 36004%
2003 557685092 15,06% 678,423 4.72%
2004 6,254,756 8.44% 825,109 21062%
2005 6,609,311 5067% 8443812 2939%
2006 7,1601485 8034% 9913941 17442%
2007 7,8753829 9099% 13165,511 IT50%
2008 8,459,823 T42% 1,1793157 1917%
2009 8,577,396 1.39% 15137,447 -3.54%
2010 83973,220 4961% 1,1845084 4,10%
2011 8,731,670 -2.69% 13227,533 3867%
2012 8,4923037 -174% 153745376 11096%
2013 85508,607 0.20% 1,3383298 -2.63%
2014 85742,143 2974% 153285800 471%
2015 910143695 3012% 1,2303259 -T42%
2016 %783,533 8.53% 1,4075446 14040%
2017 105383,019 6.13% 154643514 4.05%
TRUCKEE DONNER PUBLIC UTit, TIY DISTRICT
Largest Water Customers - Fiscal Year 2017
Customer Water Usage tU
TAHOE MOUNTAIN CLUB (Old Greenwood & Gray's Grossing Golf Courses) 137,8695875
COYOTE MOON GOLF COURSE 5734532522
TRUCKEE DONNER RECREATION AND PARK DISTRICT 233686,435
TAHOE DONNER ASSOCIATION 223994,206
TAHOE TRUCKEE UNIFIED SCHOOL DISTRICT 17>8025802
VILLAGE GREEN MOBILE HOME PARK 1418873715
TAHOE FOREST HOSPITAL 13,580,364
BOB GALES (Coachland Mobile Home Park) 10,6913000
DONNER CREEK MOBILE HOME PARK 716535943
OREGON INVESTORS (Truckee Pines Apartments) 613353538
TOP TEN TOTAL 312,955,400
TOTAL SYSTEM 1,471,334,157
21.27%
t�� Gallons
Annual Payments
$144,173
44,112
60,486
109,950
48,135
34,153
47,772
25,045
15,158
32,105
$561,089
$11,801,888.32
4.75%
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
Historic Water Operating Results & Debt Service Coverage
Fiscal Year Ending December 31
Revenues 2013 2014 2015 2016 2017
Sales to Customers $9,870,531 $10,1020819 $10,313,593 $1133123973 $11,801,888
Standby Fees 157,440 150,390 1452840 138,480 133,440
Investment Income (r) 1%506 87,312 85,741 703573 84,678
Facilites Fees (2) 264,199 4172873 386,647 595,761 338,461
Connection Fees (2)(3) 90,856 1662328 139,771 180,226 144,722
Meter Surcharge 7033982 0 0 0 0
Other (4) 328,553 4034847 32044 61007 405*521
Total Revenues $11,4261067 $11,328,570 $112401,236 $12,9083710 $12,908,711
Operating & Maintenance Expenses
Operations and Maintenance $4,8021929 $4,508,867 $4,088,100 $4,484,787 $4,835,623
Administration and General 1,829,741 21114,506 2,088,100 2,254,537 2,640,793
Customer Services 7305605 813,864 725,096 656,181 640,793
Pension Expense - GASB 68 0 0 226,149 4882236 907,844
OPEB Expense 0 0 0 287,687 1 %940
Total Operations & Maintenance Expenses $7,363,275 $72437,237 $7,461,394 $81171,428 $82774,653
Net Revenues $4,062,792 $3,8912333 $3,9392842 $42737,282 $4,134,058
Parity Debt Service t5�
2006 Installment Purchase Agreement $1,895,089 $1,898,889 1,8122849 1,768,638 $1,721,629
DWR Proposition 55 Loan $306,481 $306,481 $306,481 $306,481 $306,481
Interest on Parity Debt Service Reserve Funds 6 130 (5,283) 5 485 2 904 4 301
Total Parity Debt Service $2,195,440 $2,200,087 $23113,845 $2,0723215 $2,023,808
Parity Debt Service Coverage 1.85 1.77 1.86 2.29 2.04
Net Revenues Remaining for Subordinate Debt $15867,352 $1,6913246 $1,825,997 $2,6653067 $2,110,250
Service
Subordinate Debt Service (5)(6) $3165944 $316,944 $3163944 $3165944 $316,944
Parity and Subordinate Debt Service Coverage 1.62 1.55 1.62 1.98 1.77
Balance Available for Capital Projects or Other $15550,408 $1,374,302 $1,509,053 $2,348,123 $1,793,306
Purposes
NOTES
(1) Excludes interest component of Donner Lake Assessment and interest on parity debt service reserve funds.
(2) Appears as contributed capital in the Financial Statement of the District.
(3) Historically, connection fees were recognized in the year in which the connection to the Water System was
effected rather than the year in which the connection fee was allocated.
(4) Includes interdepartmental sales.
(5) Debt service presented on an accrual basis.
(6) Represents payments on Capital Leases. The DWR Loan, which is secured by, and has historically been paid
entirely from, the Donner Lake Assessments, is excluded form subordinate debt service.
TRUCKEE DONNER
PUBLIC UTILITY DISTRICT
PRIMARY GOVERNMENT ONLY
Including Report of Independent Auditors
December 31, 2017 and 2016
TABLE OF CONTENTS
Report of Independent Auditors................................................................................................1
Management's Discussion and Analysis......................................................................................4
FinancialStatements............................................................................................. ..................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........................................................................................46
Cost Sharing Defined Benefit Pension Plans...................................................................47
Position of Post Employment Benefit Plans.....................................................................49
Supplementary Information.....................................................................................................50
Consolidating Statement of Net Position'., "1 111111164 111 111",", 111,51
Consolidating Statement of Revenues, Expenses and Changes in Net Position'......,, I'm Me ... 53
Consolidating Statement of Cash Flows'., IV, 404 14, ell", ''1", 14, 04SNI'llm "I ''I ...... 54
MOSSADAMS
Report of Independent Auditors
The Board of Directors
Truckee Donner Public Utility District
Report on the Financial Statements
We have audited the accompanying consolidated financial statements of Truckee Donner Public
Utility District (the "District"), which comprise the consolidated statements of net position as of
December 31, 2017 and 2016, 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 aung 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.
1
MOSSADAMS
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, 2017 and
2016, 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.
Emphasis of Matter
The consolidated financial statements referred to above include only the primary government of the
District which consists of all departments that comprise the District's legal entity. The consolidated
financial statements do not include financial data for the District's legally separate component units,
which accounting principles generally accepted in the United States of America require to be reported
with the financial data of the District's primary government. As a result, the primary government
financial statements do not purport to, and do not present fairly the financial position of the reporting
entity of the District as of December 31, 2017 and 2016, the results of operations, or its cash flows for
the years then ended in conformity with accounting principles generally accepted in the United States
of America, the District has issued separate reporting entity financial statements, for which we have
issued our report for the 2017 and 2016 statements dated May 25, 2018,
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 retiree health plan funding history, be presented to supplement the
basic consolidated financial statements. Such information, although not a part of the basic
consolidated financial statements, is required by the Governmental Accounting Standards Board who
considers it to be an essential part of financial reporting for placing the basic consolidated financial
statements in an appropriate operational, economic, or historical context. We have applied certain
limited procedures in the required supplementary information in accordance with auditing standards
generally accepted in the United States of America, which consisted of inquiries of management
about the methods of preparing the information and comparing the information for consistency with
management's responses to our inquiries, the basic consolidated financial statements, and other
knowledge we obtained during our audit of the basic consolidated financial statements. We do not
express an opinion or provide any assurance on the information because the limited procedures do
not provide us with sufficient evidence to express an opinion or provide any assurance.
MOSSADAMS
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, 2017 are presented for purposes
of additional analysis and are not a required part of the basic consolidated 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 basic consolidated 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
basic consolidated financial statements and certain additional procedures, including comparing and
reconciling such information directly to the underlying accounting and other records used to prepare
the basic consolidated financial statements or to the basic consolidated financial statements
themselves, and other additional procedures in accordance with auditing standards generally
accepted in the United States of America. In our opinion, the 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 basic consolidated financial statements as a whole.
Portland, Oregon
May 25, 2018
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2017 and 2016
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, 2017 and 2016. This discussion and analysis is designed to assist the
reader in focusing on the significant financial topics, provide an overview of the District's financial activity
and identify changes in the District's financial position.
We encourage readers to consider the information presented here in conjunction with that presented within
the basic financial statements. The reader should take time to read and evaluate all sections of this report,
including the footnotes and other supplementary information that is provided, in addition to this
management discussion and analysis.
FINANCIAL HIGHLIGHTS
The District's current assets increased $4.9 million (16.9%) from $28.9 million at December 31, 2016 to
$33.8 million at December 31, 2017, predominantly due to higher than anticipated revenues for the Electric
Utility,
The District's total net position increased $4.4 million (3.84%) from $113.2 million at December 31, 2016,
to $117.6 million at December 31, 2017. The increase is primarily attributed to a $4.4 million increase for
the Electric Utility for 2017.
Operating revenues increased $2.8 million (7.80/) from $35.6 million in 2016 to $38.3 million in 2017.
Electric revenues increased 10.5% in 2017. Electric revenues include a 2% rate increase in 2017. Federal
Emergency Management Agency (FEMA) and California Office of Emergency Services (CaIOES)
reimbursements for reparation of plant damages sustained in January and February 2017 from extreme
winter storms, and the District's participation in the joint pole program exceeded expectations in 2017 due
to increased pole replacements. Water revenues increased 2% in 2017; primarily due to a 3% water rate
increase in 2017 that was offset by decreased residential consumption. The Water Utility also received a
small reimbursement of expenses from FEMA and CalOES associated with the extreme winter storms in
2017.
Operating expenses of the District increased $2.6 million (7.9%) from $33.1 million in 2016 to $35.7 million
in 2017. Electric expense increased 8.5% and Water expense increased 7.2% in 2017. The primary
increase in expense is due to increased pension expense associated with the change in the discount rate
implemented by CalPERS in 2017 in addition to the extra operating expenses that occurred from the
extreme winter storms in Q1 of 2017.
Compared to 2016, the overall non -operating revenues remained flat at $0.4 million in 2017. Non -operating
expenses decreased $0.4 million from $1.1 million in 2016 to $0.7 million in 2017.
No new debt was incurred in 2017. Final payments were made on two of the Water Utility's installment
loans in 2017. The annual debt service on the two installment loans was just over $300,000.
OVERVIEW OF THE FINANCIAL STATEMENTS
This report includes Management's Discussion and Analysis, the Report of Independent Auditors, the Basic
Financial Statements, (which includes the notes to the financial statements), Required Supplementary
Information and additional Supplementary Information.
See accompanying auditors' report.
Page 4
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2017 and 2016
REQUIRED FINANCIAL STATEMENTS
The financial statements of the District are designed to provide readers with a broad overview of the
District's finances similar to a private -sector business. They have been prepared using the accrual basis of
accounting in accordance with accounting principles generally accepted in the United States of America
(GAAP). Under this basis of accounting, revenues are recognized in the period in which they are earned
and expenses are recognized in the period in which they are incurred, regardless of the timing of related
cash flows. These statements offer short-term and long-term financial information about the District's
activities.
The reporting entity consists of the primary government, which provides two utilities (electric utility and
water utility), and the blended component units. Further details about the component units are provided in
note 1(A).
The Consolidated Statement of Net Position presents information on all of the District's assets, deferred
outflows of resources and liabilities, and deferred inflows of resources and provides information about the
nature and amounts of investments in resources (assets) and the obligations to District creditors (liabilities).
It also provides the basis for computing rate of return, evaluating the capital structure of the District, and
assessing the liquidity and financial flexibility of the District.
All of the current year's revenues and expenses are reported in the Consolidated Statements of
Revenues, Expenses, and Changes in Net Position. This statement provides a measurement of the
District's operations over the past year and can be used to determine whether the District has successfully
recovered all its costs through its rates and other charges.
The Consolidated Statement of Cash Flows provides relevant information about the District's cash
receipts and cash payments during the reporting period. This statement reports cash receipts and cash
payments resulting from operating, non -capital financing, capital and related financing, and investing
activities. When used with related disclosures and information in the other financial statements, the
statement of cash flows should provide insight into (a) the District's ability to generate future net cash flows,
(b) the District's ability to meet its obligations as they come due, (c) the District's needs for external
financing, (d) the reasons for differences between operating income and associated cash receipts and
payments, and (e) the effects on the District's financial position of both its cash and its non -cash investing,
capital, and financing transactions during the period. The changes in cash balances are an important
indicator of the District's liquidity and financial condition.
The Notes to the Financial Statements provide additional information that is essential to a full
understanding of the data provided in the basic financial statements. This includes but is not limited to,
significant accounting policies, significant financial statement balances and activities, material risks,
commitments and obligations, and subsequent events, as applicable.
See accompanying auditors' report.
Page 5
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2017 and 2016
DISTRICT HIGHLIGHTS
The condensed financial statements at December 31, 2017, 2016, and 2015 are presented below.
CONSOLIDATED STATEMENT OF NET POSITION
ASSETS AND DEFERRED
OUTFLOWS OF RESOURCES 2017
Current assets
Non -current assets:
Capital assets, net
Restricted assets
Other long-term assets
Total Assets
Deferred outflows of resources
TOTAL ASSETS AND
DEFERRED OUTFLOWS OF RESOURCES
$ 33803415
2016
$ 2819132981
2015
$ 283230,800
Increase
(Decrease)
2017 - 2016
$ 41889,434
123,114,074
123,602,331
122,416,668
(488,257)
13818,513
11876,032
11900,036
(57,519)
338480264
42618,396
5,3611643
(770,132)
162,584,266
1593010,740
157,909,147
33573,526
41350,842
41764,564
39274,459
(413,722)
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND NET POSITION
Current liabilities
Noncurrent Liabilities
Long-term debt, net of current portion
Net pension liability
OPEB liability
Unearned revenues
Total Liabilities
Deferred inflows of resources
NET POSITION
Net investment in capital assets
Restricted for debt service
Unrestricted
Total Net Position
TOTAL LIABILITIES, DEFERRED
INFLOWS OF RESOURCES
AND NET POSITION
$ 166,935,108 $ 163,775,304 $ 161,183,606 $ 3,159,804
$ 7,445,020
24, 609, 395
11,975,654
1,116,568
3, 54,076
48,800,714
551,932
$ 7,262,461 $ 7,300,776 $ 182,559
27, 642, 726
10, 250, 329
719,217
3,0731507
48, 48,240
1, 597,126
30, 583, 770
8, 013, 400
3, 226, 709
49,124,655
21341,737
(3,033,331)
1, 725, 325
397, 351
5801569
(147,526)
(11045,194)
95,717,888
93,421,545
89,271,509
2,296,343
6,419,333
6,011,469
5,762,124
407,864
15, 445, 241
13, 796, 924
14, 683, 581
1364 8, 317
1173582,462
113122%938
109,717,214
41352,524
$ 1662935,108
$ 1639775,304
$ 1611183,606 $
31159,804
In 2017, the District's current assets increased $4.9 million, predominantly due to increased cash reserves
associated with the Electric Utility. Other Long Term assets decreased $0.7 million, due to the scheduled
collection of special assessments receivable. Net Long Term debt decreased $3.0 million, due to annual
reduction of existing debt. See note 5 for details on remaining debt. No new debt was issued in 2017. The
District's total net position increased $4.4 million, substantially due to increased investment in capital assets
including electric distribution replacement and improvement projects, meter replacement and
communication upgrade, transportation equipment, pipeline replacement, and the continuation of the water
SCADA replacement.
"Restricted for debt service" represents amounts restricted for payments related to outstanding revenue
bonAs.
See accompanying auditors' report.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2017 and 2016
The District had income before capital contributions of $2.3 million, $1.8 million, and $1.3 million for the
years ended December 31, 2017, 2016, and 2015, respectively. Changes in the District's net position can
be determined by reviewing the following Condensed Revenues, Expenses, and Changes in Net Position
for the years ended December 31, 2017, 2016, and 2015,
CONDENSED REVENUES, EXPENSES, AND CHANGES IN NET POSITION
Sales to consumers
Other operating revenues
Total Operating Revenues
Operating expenses
Operating Income
Non -operating revenues (expenses)
Income before
capital contributions
Capital contributions, net
Change in net position
Net Position, Beginning of Year
NET POSITION, END OF YEAR
Increase
(Decrease)
2017 2016 2015 2017-2016
34462146
3,873,207
38,335,353
35,7021131
$ 33026587
21577,122
35,603,709
33,101,672
2,633,222 2,502,037
$ 30,818,856
211583141
32,976,997
$ 1,435,559
1.296.085
2,731,644
30,892,366 2,600,459
2,084,631 131,185
(3775526) (688,423) (762,711) 3103897
2,255,696
21096,828
41352,524
1133229,938
1,813,614
1,699,110
3,5125724
109,717,214
1,321,920
1,430,510
2,752,430
106,964,784
$ 117,582,462 $ 113,229,938 $ 109,717,214 $
442,082
397,718
839,800
3,512,724
4.352.524
Total operating revenues were $38.3 million in 2017, $35.6 million in 2016, and $33.0 million in 2015. In
2017, electric revenues increased 10.5% due to a 2% rate increase in addition to increased residential and
commercial consumption driven by colder temperatures. Water revenues increased 2.0%; a 3% rate
increase in 2017 was offset by a continued trend in decreased consumption. Other operating revenues
include just under $1.1 M in reimbursements to the Electric Utility from the Federal Emergency Management
Agency (FEMA) and California Office of Emergency Services (CalOES) reimbursements for reparation of
plant damages sustained in the January and February 2017 from extreme winter storms. The District
received an additional $65K in reimbursements to the Water Utility for reimbursement of qualifying
expenses associated with the District's emergency protective measures to maintain water service to
customers during those extreme winter storms.
Total operating expenses were $35.7 million in 2017, $33.1 million in 2016, and $30.9 million in 2015.
Electric expenses increased 8.5% and water expenses increased 7.2%. primarily attributed to the
extraordinary expenses incurred from the extreme winter storms of 2017 as noted above in addition to a
significant increase in pension expense due to the first year implementation of the decrease in the discount
rate adopted by the California Public Employees Retirement System (CaIPERS (see note 9),
Compared to 2016, the overall non -operating revenues remained flat at $0.4 million in 2017. Non -operating
expenses decreased $0.4 million from $1.1 million in 2016 to $0.7 million in 2017.
See accompanying auditors' report.
Page 7
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2017 and 2016
CAPITAL ASSETS
As of December 31, 2017, 2016, and 2015, the District had $123.1 million, $123.6 million, and $122.4
million, respectively, invested in a variety of capital assets, net of accumulated depreciation. A summary of
capital assets is reflected in the following schedule.
Electric distribution facilities
Water distribution facilities
General plant
Sub -totals
Less: Accumulated depreciation
Net of accumulated depreciation
Construction work in progress
Net capital assets
CAPITAL ASSETS
2017
900
112, 596, 747
15,782,620
188, 796, 288
(68, 563, 235)
120, 233, 053
21881,021
$ 123,114, 074
2016
$ 58, 345,
690
108, 860,
825
15,062,278
182, 268,
793
(63, 372,
738)
118, 896,
055
41706,
276
$ 123,6021331
2015
$ 54,721,615
107, 005, 578
13, 887, 881
175, 615, 074
(58, 042, 448)
117,572,626
41844,042
$ 122,4161668
Net capital assets (additions, less retirements and depreciation) remained nearly flat in 2017 compared to
2016 respectfully. The District ended 2017 with decreased construction work in progress of $2.9 million
compared to $4.7 million in 2016; the mainline replacement project in 2017 was completed earlier than prior
years enabling the District to capitalize on it in 2017, Electric and Water Utility distribution assets in 2017
were both replaced at a slightly faster pace than accumulated depreciation.
LONG-TERM DEBT
Long-term debt includes revenue bonds and notes payable. At December 31, 2017, 2016, and 2015, the
District had $24.6 mon, $27.6 mon, and $30.6 mon, respectively, in long-term debt outstanding, net
current maturities.
No new debt was issued in 2017.
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
See accompanying auditors' report.
Page 8
FINANCIAL STATEMENTS
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
CONSOLIDATED STATEMENTS OF NET POSITION
December 31, 2017 and 2016
ASSETS AND DEFERRED
OUTFLOWS OF RESOURCES 2017 2016
CURRENT ASSETS
Cash Funds
Operating $ 81460,571 $ 71852,130
Designated 13, 710, 369 10, 759, 538
Restricted 41830,995 41293,285
Total Cash Funds 27, 001, 935 22, 904, 953
Accounts receivable, net 21694,266 11820,173
Unbilled revenues 21629,457 2,911,201
Accrued interest receivable 73,033 65,044
Materials and supplies 677,896 656,981
Prepaid expenses 633,191 459,264
Other 93,637 96,365
Total Current Assets 33,803,415 28,913,981
NON=CURRENT ASSETS
Other Non=Current Assets
Restricted investment fund 11818,513 11876,032
Special assessments receivable 31005,178 31692,876
Other 843,086 925,520
Total Other Non=Current Assets 5,666,777 61494,428
DEFERRED OUTFLOWS OF RESOURCES
Pension 3,651, 391 41005,050
Unamortized loss on refunding 576,778 609,580
Unamortized redemption premium 122,673 1493934
Total Deferred Outflows of Resources 41350,842 41764,564
CAPITAL ASSETS
Utility plant 188,796,288 182,268,793
Accumulated depreciation (681563,235) (63,372,738)
Construction work in progress 21881,021 41706,276
Total Capital Assets 123,114,074 123,602,331
TOTAL ASSETS AND DEFERRED
OUTFLOWS OF RESOURCES $ 166,935,108 $ 163,775,304
The accompanying notes are an integral part of these consolidated financial statements.
Page 10
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
CONSOLIDATED STATEMENTS OF NET POSITION
December 31, 2017 and 2016
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND NET POSITION
CURRENT LIABILITIES
Other Liabilities
Accounts payable
Customer deposits
Other
Total Other Liabilities
Current Liabilities Payable From Restricted Assets
Current portion of long-term debt
Accrued interest payable
Total Current Liabilities Payable from Restricted Assets
Total Current Liabilities
NON -CURRENT LIABILITIES
Long-term debt, net of discounts and premiums
Net pension liability
OPEB liability
Installment loans
Unearned revenues
Total Non -Current Liabilities
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
Pension
Total Deferred Inflows of Resources
NET POSITION
Net investment in capital assets
Restricted for debt service
Unrestricted
Total Net Position
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND NET POSITION
2017
2016
$ 21345, 746 $
21506, 514
488,196
468,168
994,615
918,577
31828,557
31893,259
31411, 314
31206, 043
205,149
163,159
3,616,463
31369,202
71445, 020
71262, 461
24,561,650
27,584,323
11, 975, 655
10, 250, 329
1,116, 568
719, 217
47,745
58,403
31654,076
31073,507
41,355,694
41,685,779
48,800,714
48,948,240
551,932
11597,126
5517932
11597,126
95,717,888
93,421,545
61419, 333
61011, 469
15,445,241
13,796,924
117,582,462
113,229,938
$ 166, 935,108 $ 163, 775, 304
The accompanying notes are an integral part of these consolidated financial statements.
Page 11
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TRUCKEE DONNER PUBLIC UTILITY DISTRICT
CONSOLIDATED STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
December 31, 2017 and 2016
OPERATING REVENUES
Sales to customers
Standby fees
Cap and trade proceeds
Other
Total Operating Revenues
OPERATING EXPENSES
Purchased power
Operations and maintenance
Consumer services
Administration and general
Pension expense
OPEB expense
Depreciation
Total Operating Expenses
Operating Income
NON -OPERATING REVENUE (EXPENSES)
Investment income
Interest expense
Amortization
Other non -operating expenses
Gain (loss) on disposition of assets
Total Non -Operating Revenue (Expenses)
Income Before Contributions
CAPITAL &OTHER CONTRIBUTIONS
CHANGE IN NET POSITION
Net Position -Beginning of Year
NET POSITION -END OF YEAR
2017 2016
$ 34,462,146
154,970
1,140, 372
215771865
38, 335, 353
11,327,300
811718
2,3021501
4,1921012
2,2691610
971350
6, 311640
$ 33, 026, 587
1601670
1,172, 306
11244,146
5603709
11,511,308
6,9511273
2,1301422
4,3311827
1,220,591
7191218
71033
35,7021131 33,1011672
2,633,222 215021037
3931977 368,761
(745, 996) (897, 993)
(33,045) (12,599)
(145, 078)
71538 (11514)
(377,526) (688,423)
2,255, 696 11813,614
210961828 11699,110
4,352,524
91938
113,
3512724
109,7171214
$ 1171582,462 $ 11312291938
The accompanying notes are an integral part of these consolidated financial statements
Page 13