HomeMy WebLinkAboutFinal TDPUD PGO FS 2017
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
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…………………………………………………………………………….46
Cost Sharing Defined Benefit Pension Plans………………………………………………………….47
Position of Post Employment Benefit Plans……………………………………………………………49
Supplementary Information…….………………………………………………………………………………….50
Consolidating Statement of Net Position……………………………………………………………….51
Consolidating Statement of Revenues, Expenses and Changes in Net Position...…………..…...53
Consolidating Statement of Cash Flows……………………..………………………………………...54
1
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 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.
2
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.
3
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
See accompanying auditors’ report.
Page 4
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 (7.8%) 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 (CalOES)
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.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
MANAGEMENT’S DISCUSSION AND ANALYSIS
December 31, 2017 and 2016
See accompanying auditors’ report.
Page 5
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.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
MANAGEMENT’S DISCUSSION AND ANALYSIS
December 31, 2017 and 2016
See accompanying auditors’ report.
Page 6
DISTRICT HIGHLIGHTS
The condensed financial statements at December 31, 2017, 2016, and 2015 are presented below.
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 $4.4 million, substantially due to increased investment in capital assets
including electric distribution replacement and improvement projects, meter replacement and
communication upgrade, transportation equipment, pipeline replacement, and the continuation of the water
SCADA replacement.
“Restricted for debt service” represents amounts restricted for payments related to outstanding revenue
bonds.
Increase
(Decrease)
OUTFLOWS OF RESOURCES 2017 2016 2015 2017 - 2016
Current assets 33,803,415$ 28,913,981$ 28,230,800$ 4,889,434$
Non-current assets:
Capital assets, net 123,114,074 123,602,331 122,416,668 (488,257)
Restricted assets 1,818,513 1,876,032 1,900,036 (57,519)
Other long-term assets 3,848,264 4,618,396 5,361,643 (770,132)
Total Assets 162,584,266 159,010,740 157,909,147 3,573,526
Deferred outflows of resources 4,350,842 4,764,564 3,274,459 (413,722)
TOTAL ASSETS AND
DEFERRED OUTFLOWS OF RESOURCES 166,935,108$ 163,775,304$ 161,183,606$ 3,159,804$
RESOURCES AND NET POSITION
Current liabilities 7,445,020$ 7,262,461$ 7,300,776$ 182,559$
Non-current Liabilities
Long-term debt, net of current portion 24,609,395 27,642,726 30,583,770 (3,033,331)
Net pension liability 11,975,654 10,250,329 8,013,400 1,725,325
OPEB liability 1,116,568 719,217 - 397,351
Unearned revenues 3,654,076 3,073,507 3,226,709 580,569
Total Liabilities 48,800,714 48,948,240 49,124,655 (147,526)
Deferred inflows of resources 551,932 1,597,126 2,341,737 (1,045,194)
NET POSITION
Net investment in capital assets 95,717,888 93,421,545 89,271,509 2,296,343
Restricted for debt service 6,419,333 6,011,469 5,762,124 407,864
Unrestricted 15,445,241 13,796,924 14,683,581 1,648,317
Total Net Position 117,582,462 113,229,938 109,717,214 4,352,524
TOTAL LIABILITIES, DEFERRED
INFLOWS OF RESOURCES
AND NET POSITION 166,935,108$ 163,775,304$ 161,183,606$ 3,159,804$
CONSOLIDATED STATEMENT OF NET POSITION
LIABILITIES, DEFERRED INFLOWS OF
ASSETS AND DEFERRED
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
MANAGEMENT’S DISCUSSION AND ANALYSIS
December 31, 2017 and 2016
See accompanying auditors’ report.
Page 7
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.
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 $1.1M 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 (CalPERS (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 $0.7 million in 2017.
Increase
(Decrease)
2017 2016 2015 2017 - 2016
Sales to consumers 34,462,146$ 33,026,587$ 30,818,856$ 1,435,559$
Other operating revenues 3,873,207 2,577,122 2,158,141 1,296,085
Total Operating Revenues 38,335,353 35,603,709 32,976,997 2,731,644
Operating expenses 35,702,131 33,101,672 30,892,366 2,600,459
Operating Income 2,633,222 2,502,037 2,084,631 131,185
Non-operating revenues (expenses) (377,526) (688,423) (762,711) 310,897
Income before
capital contributions 2,255,696 1,813,614 1,321,920 442,082
Capital contributions, net 2,096,828 1,699,110 1,430,510 397,718
Change in net position 4,352,524 3,512,724 2,752,430 839,800
Net Position, Beginning of Year 113,229,938 109,717,214 106,964,784 3,512,724
NET POSITION, END OF YEAR 117,582,462$ 113,229,938$ 109,717,214$ 4,352,524$
CONDENSED REVENUES, EXPENSES, AND CHANGES IN NET POSITION
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
MANAGEMENT’S DISCUSSION AND ANALYSIS
December 31, 2017 and 2016
See accompanying auditors’ report.
Page 8
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.
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 million, $27.6 million, and $30.6 million, respectively, in long-term debt outstanding, net
current maturities.
No new debt was issued in 2017.
CONTACTING THE DISTRICT’S FINANCIAL MANAGEMENT
The financial report is designed to provide readers with a general overview of the District’s finances and to
demonstrate the District’s accountability for the money it receives. If you have questions about this report
or need additional financial information, contact:
Truckee Donner Public Utility District
Attn: Treasurer
11570 Donner Pass Road
Truckee, CA 96161
2017 2016 2015
Electric distribution facilities 60,416,921$ 58,345,690$ 54,721,615$
Water distribution facilities 112,596,747 108,860,825 107,005,578
General plant 15,782,620 15,062,278 13,887,881
Sub-totals 188,796,288 182,268,793 175,615,074
Less: Accumulated depreciation (68,563,235) (63,372,738) (58,042,448)
Net of accumulated depreciation 120,233,053 118,896,055 117,572,626
Construction work in progress 2,881,021 4,706,276 4,844,042
Net capital assets 123,114,074$ 123,602,331$ 122,416,668$
CAPITAL ASSETS
FINANCIAL STATEMENTS
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
CONSOLIDATED STATEMENTS OF NET POSITION
December 31, 2017 and 2016
The accompanying notes are an integral part of these consolidated financial statements.
Page 10
ASSETS AND DEFERRED
OUTFLOWS OF RESOURCES 2017 2016
CURRENT ASSETS
Cash Funds
Operating 8,460,571$ 7,852,130$
Designated 13,710,369 10,759,538
Restricted 4,830,995 4,293,285
Total Cash Funds 27,001,935 22,904,953
Accounts receivable, net 2,694,266 1,820,173
Unbilled revenues 2,629,457 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 1,818,513 1,876,032
Special assessments receivable 3,005,178 3,692,876
Other 843,086 925,520
Total Other Non-Current Assets 5,666,777 6,494,428
DEFERRED OUTFLOWS OF RESOURCES
Pension 3,651,391 4,005,050
Unamortized loss on refunding 576,778 609,580
Unamortized redemption premium 122,673 149,934
Total Deferred Outflows of Resources 4,350,842 4,764,564
CAPITAL ASSETS
Utility plant 188,796,288 182,268,793
Accumulated depreciation (68,563,235) (63,372,738)
Construction work in progress 2,881,021 4,706,276
Total Capital Assets 123,114,074 123,602,331
TOTAL ASSETS AND DEFERRED
OUTFLOWS OF RESOURCES 166,935,108$ 163,775,304$
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
CONSOLIDATED STATEMENTS OF NET POSITION
December 31, 2017 and 2016
The accompanying notes are an integral part of these consolidated financial statements.
Page 11
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND NET POSITION 2017 2016
CURRENT LIABILITIES
Other Liabilities
Accounts payable 2,345,746$ 2,506,514$
Customer deposits 488,196 468,168
Other 994,615 918,577
Total Other Liabilities 3,828,557 3,893,259
Current Liabilities Payable From Restricted Assets
Current portion of long-term debt 3,411,314 3,206,043
Accrued interest payable 205,149 163,159
Total Current Liabilities Payable from Restricted Assets 3,616,463 3,369,202
Total Current Liabilities 7,445,020 7,262,461
NON-CURRENT LIABILITIES
Long-term debt, net of discounts and premiums 24,561,650 27,584,323
Net pension liability 11,975,655 10,250,329
OPEB liability 1,116,568 719,217
Installment loans 47,745 58,403
Unearned revenues 3,654,076 3,073,507
Total Non-Current Liabilities 41,355,694 41,685,779
Total Liabilities 48,800,714 48,948,240
DEFERRED INFLOWS OF RESOURCES
Pension 551,932 1,597,126
Total Deferred Inflows of Resources 551,932 1,597,126
NET POSITION
Net investment in capital assets 95,717,888 93,421,545
Restricted for debt service 6,419,333 6,011,469
Unrestricted 15,445,241 13,796,924
Total Net Position 117,582,462 113,229,938
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND NET POSITION 166,935,108$ 163,775,304$
T H I S P A G E I S I N T E N T I O N A L L Y L E F T B L A N K
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
CONSOLIDATED STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
December 31, 2017 and 2016
The accompanying notes are an integral part of these consolidated financial statements
Page 13
2017 2016
OPERATING REVENUES
Sales to customers 34,462,146$ 33,026,587$
Standby fees 154,970 160,670
Cap and trade proceeds 1,140,372 1,172,306
Other 2,577,865 1,244,146
Total Operating Revenues 38,335,353 35,603,709
OPERATING EXPENSES
Purchased power 11,327,300 11,511,308
Operations and maintenance 8,681,718 6,951,273
Consumer services 2,302,501 2,130,422
Administration and general 4,192,012 4,331,827
Pension expense 2,269,610 1,220,591
OPEB expense 397,350 719,218
Depreciation 6,531,640 6,237,033
Total Operating Expenses 35,702,131 33,101,672
Operating Income 2,633,222 2,502,037
NON-OPERATING REVENUE (EXPENSES)
Investment income 393,977 368,761
Interest expense (745,996) (897,993)
Amortization (33,045) (12,599)
Other non-operating expenses - (145,078)
Gain (loss) on disposition of assets 7,538 (1,514)
Total Non-Operating Revenue (Expenses)(377,526) (688,423)
Income Before Contributions 2,255,696 1,813,614
CAPITAL & OTHER CONTRIBUTIONS 2,096,828 1,699,110
CHANGE IN NET POSITION 4,352,524 3,512,724
Net Position - Beginning of Year 113,229,938 109,717,214
NET POSITION - END OF YEAR 117,582,462$ 113,229,938$
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
CONSOLIDATED STATEMENTS OF CASH FLOWS
December 31, 2017 and 2016
The accompanying notes are an integral part of these consolidated financial statements
Page 14
2017 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Received from customers 37,790,910$ 35,177,778$
Paid to suppliers for goods and services (20,134,075) (19,476,138)
Paid to employees for services (7,486,250) (6,432,772)
Net Cash Flows from Operating Activities 10,170,585 9,268,868
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Debt issuance costs - 78,838
Proceeds from refunding - 5,353,413
Principal payments on long-term debt (404,000) (6,102,838)
Interest payments on long-term debt (63,590) (250,584)
Net Cash Flows from Noncapital Financing Activities (467,590) (921,171)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Capital expenditures for utility plant (5,381,950) (7,421,152)
Cost of disposal of property net of salvage (126,018) (78,431)
Capital contributions, connection and facility fees 1,805,481 1,356,731
Special assessments receipts 687,698 670,914
Debt issuance costs - 66,240
Proceeds from refunding - 3,128,760
Principal payments on long-term debt (2,424,060) (5,497,159)
Interest payments on long-term debt (613,400) (648,788)
Cash Flows From Capital and Related Financing Activities (6,052,249) (8,422,885)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest income received 477,236 406,993
Cash Flows from Investing Activities 477,236 406,993
Net Change in Cash and Cash Equivalents 4,127,982 331,805
CASH AND CASH EQUIVALENTS – Beginning of Year 22,925,400 22,593,595
CASH AND CASH EQUIVALENTS – END OF YEAR 27,053,382$ 22,925,400$
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
CONSOLIDATED STATEMENTS OF CASH FLOWS
December 31, 2017 and 2016
The accompanying notes are an integral part of these consolidated financial statements
Page 15
2017 2016
RECONCILIATION OF OPERATING INCOME TO NET CASH
FLOWS FROM OPERATING ACTIVITIES
Operating income 2,633,222$ 2,502,037$
Noncash items included in operating income
Depreciation and amortization 6,531,640 6,237,033
Depreciation charged to other accounts 344,042 264,368
Pension expense - GASB 68 2,269,611 1,180,590
Deferred Pension Contributions - GASB 68 (1,235,820) (1,061,245)
OPEB 397,350 719,218
Changes in assets and liabilities
Accounts receivable and unbilled revenues (592,348) (325,520)
Materials and supplies (20,915) (17,539)
Prepaid expenses and other current assets (173,927) (22,362)
Accounts payable (160,769) (476,588)
Customer deposits 20,027 44,668
Other current liabilites 158,472 224,208
NET CASH FLOWS FROM OPERATING ACTIVITES 10,170,585$ 9,268,868$
RECONCILIATION OF CASH AND CASH EQUIVALENTS
TO THE BALANCE SHEET
Operating 8,460,571$ 7,852,130$
Designated 13,710,369 10,759,538
Restricted funds - current 4,830,995 4,293,285
Restricted funds - non-current 1,818,513 1,876,032
Total Cash and Investments 28,820,448 24,780,985
Less: Long-term investments (1,698,880) (1,698,880)
Mark to market adjustments (68,186) (156,705)
TOTAL CASH AND CASH EQUIVALENTS 27,053,382$ 22,925,400$
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2017 and 2016
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 financial results of these blended component units are not included in this report. However,
the District has issued an additional consolidated report that includes these component units. A
copy of that report can be requested from the District.
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).
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, 2017 and 2016
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. CASH AND CASH EQUIVALENTS
For the purpose of the accompanying statement of cash flows, the District considers all highly liquid
instruments with original maturities of three months or less when purchased to be cash equivalents and are
shown in the financial statements as “Cash Funds”.
E. INVESTMENTS
The District pools cash and investments. The District’s investment policy allows for investments in
instruments permitted by the California Government Code and/or the investments permitted by the trust
agreements on District financing. The District’s investment policy contains provisions intended to limit the
District’s exposure to interest rate risk, credit risk, and concentration of credit risk. Investment income from
pooled investments is allocated to all funds in the pool. Interest is allocated on the basis of month end cash
amounts for each fund as a percentage of the total balance.
The District categorizes the fair value measurements of its investments based on the hierarchy established
by generally accepted accounting principles. The fair value hierarchy, which has three levels, is based on
the valuation inputs used to measure an assets fair value: Level 1 inputs are quoted prices in active markets
for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant
unobservable inputs. The District does not have any investments that are measured using Level 3 inputs.
F. DESIGNATED ASSETS
The board has designated certain resources for future capital projects, replacements, and operational
needs.
G. RESTRICTED ASSETS
Restricted assets are assets restricted by the covenants of long-term financial arrangements or other third
party legal restrictions. Restricted assets are used in accordance with their requirements and where both
restricted and unrestricted resources are available for use, restricted resources are used first and then
unrestricted as they are needed.
H. ACCOUNTS RECEIVABLE AND ALLOWANCES FOR DOUBTFUL ACCOUNTS
Accounts receivable are recorded at the invoiced amount and are reported net of allowances for doubtful
accounts of $25,200 and $34,300 for 2017 and 2016, respectively.
I. MATERIALS AND SUPPLIES
Materials and supplies are recorded at average cost.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2017 and 2016
Page 18
NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
J. DEBT PREMIUM, BOND ISSUANCE COSTS, AND DISCOUNTS
Original issue and reacquired bond premiums and discounts relating to revenue bonds are amortized over
the terms of the respective bond issues using the effective interest method. Debt issuance costs are
expensed in the period incurred.
K. SPECIAL ASSESSMENT RECEIVABLE
Special assessment receivable represent amounts due from property owners within the Donner Lake
Assessment District for improvements made by the District pursuant to an agreement with the property
owners to improve their water quality as discussed in note 7.
L. AMORTIZED EXPENSES
In 2003, the District entered into a broadband dark fiber maintenance agreement with Sierra Pacific
Communications (SPC) which is included in the line item “other non-current assets” in the accompanying
Statement of Net Position. SPC subsequently assigned the agreement to AT&T. The agreement is expected
to provide benefit to the District over the estimated 20-year life of the agreement. (See note 4).
M. CAPITAL ASSETS
Capital assets are generally defined by the District as assets with an initial, individual cost of more than
$10,000 and an estimated useful life of at least two years.
Capital assets of the District are stated at the lower of cost or the acquisition value at the time of contribution
to the District. Major outlays for plant are capitalized as projects are constructed. Depreciation on capital
assets is calculated using the straight-line method over the estimated useful lives of the assets, which are
as follows:
Distribution Plant
Electric 23 – 35 years
Water 15 – 40 years
Computer software and hardware 3 – 7 years
Building and improvements 20 – 33 years
Equipment and furniture 4 – 10 years
It is the District’s policy to capitalize interest paid on debt incurred for significant construction projects while
those projects are under construction, less any interest earned on related unspent debt proceeds. No new
debt related to capital assets was issued in 2017 and 2016; no interest was capitalized in 2017 or in 2016.
N. COMPENSATED ABSENCES
Under terms of employment, employees are granted sick leave and vacations in varying amounts. Only
benefits considered to be vested are disclosed in these statements. Vested vacation and sick leave pay is
accrued when earned in the financial statements. The liability is liquidated from general operating revenues
of the utility.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2017 and 2016
Page 19
NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
O. REVENUE RECOGNITION
Unbilled revenues, representing estimated consumer usage for the period between the last meter reading
and the end of the period, are accrued in the period of consumption. Water customers without meters are
billed on a flat-rate basis, and revenues are recorded as billed. Revenues from connection fees are
recognized upon completion of the connection. Income that the District has earned through investing its
excess cash is reflected within income from investments when earned.
P. REVENUE AND EXPENSE CLASSIFICATION
The District distinguishes operating revenues and expenses from non-operating items in the preparation of
its financial statements. Operating revenues and expenses generally result from providing electric and
water services in connection with the District’s principal ongoing operations. The principal operating
revenues are sales to customers. The District’s operating expenses include power purchases, labor,
materials, services, and other expenses related to the delivery of electric and water services. All revenues
and expenses not meeting this definition are reported as non-operating revenues and expenses, or capital
contributions and other.
Q. POWER PURCHASES AND TRANSMISSION
In 1999, the District entered into an agreement with Sierra Pacific Power Company dba NV Energy (SPPC),
whereby SPPC will provide transmission services to the District through December 31, 2027. 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 4.4% and 6.1% of total purchased power costs in 2016 and 2017, 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 came on line in mid-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 Western Area Power Administration (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 2017 and 2016, the UAMPS contract, along with its appendices, and the WAPA contract for Stampede
Dam Hydro comprised the majority of a diversified power portfolio that balanced risk and cost for the District.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2017 and 2016
Page 20
NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
R. CAP AND TRADE PROGRAM PROCEEDS
California Assembly Bill 32 (AB32) is an effort by the State of California to set a 2020 greenhouse gas
(GHG) emissions reduction goal into law. AB32 requires California to lower greenhouse gas emissions to
1990 levels by 2020. Central to this initiative is the implementation of a cap and trade program, which covers
major sources of GHG emissions in the State including power plants. The California Cap and Trade
Program is designed to achieve cost-effective emissions reductions across the capped sectors. The
program sets maximum statewide GHG emissions for all covered sectors each year (“cap”), and allows
covered entities to sell off allowances (“trade”). An allowance is a tradable permit that allows the emission
of one metric ton of CO2. The California carbon price is driven by allowance trading. The District is subject
to AB32 and has excess allowances due to reducing carbon-based generation in its power portfolio.
In 2017 and 2016, the District sold its excess allowances in the program auctions and the proceeds were
recorded as $1,140,372 and $1,172,306 operating revenue for the respective years. The auction proceeds
are held in a restricted fund and are used to purchase qualified renewable power (See note 2).
S. INCOME TAXES
As a government agency, the District is exempt from payment of federal and state income taxes.
T. 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.
U. OTHER – PENSION SIDEFUND
As a result of implementing GASB Statement No. 68, the pension side-fund payoff that occurred in 2011
and which had been reported in the financial statements as an asset was written off due to the District’s
participation in CalPERS cost-sharing multi-employer retirement benefit plan. However, the liability for the
payoff remains until paid in full thru 2022. The intercompany fund transfers for the principal portion of the
debt service between the electric and water utility is included as “other.”
V. 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.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2017 and 2016
Page 21
NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
W. RECENT ACCOUNTING PRONOUNCEMENTS IMPLEMENTED BY THE DISTRICT
In March 2016, GASB issued Statement No. 82, Pension Issues, an amendment of GASB Statements No.
67, No. 68, and No. 73. The primary objective of this statement is to address issues regarding (1)
presentation of payroll-related measures in required supplementary information, (2) selection of
assumptions and the treatment of deviations from the guidance in an Actuarial Standard of Practice for
financial reporting purposes, and (3) the classification of payments made by employers to satisfy employee
(plan member) contribution requirements. The District implemented the statement in the current year.
X. DEFERRED OUTFLOWS OF RESOURCES AND DEFERRED INFLOWS OF RESOURCES
Consists of deferrals for changes in the net pension liability as defined under GASB Statement No. 68.
Y. UNAMORTIZED LOSS ON BOND REFUNDING
For current and advanced refunding results in defeasance of debt, the difference between the reacquisition
price and the net carrying amount of the old debt (Gain or loss) is deferred and amortized as a component
of interest expense over the remaining life of the old debt or the new debt, whichever is shorter. These
amounts are reported as deferred outflow on the statements of net position.
Z. 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 fiscal year ending December 31, 2018. The District has elected not to
implement GASB Statement No. 75 early and has not determined its effect on the District’s financial
statements.
GASB Statement No. 83, Certain Asset Retirement Obligations, addresses accounting and financial
reporting for certain asset retirement obligations (ARO’s). The District has not determined what impact, if
any, this pronouncement will have on the financial statements. Application of this statement is effective for
the District’s fiscal year ending December 31, 2019.
GASB Statement No. 87, Leases, addresses accounting and financial reporting for leases by governments.
This Statement increases the usefulness of financials statements by requiring recognition of certain lease
assets and liabilities for leases that previously were classified as operating leases by establishing a single
model of lease accounting based on the foundational principle that leases are financings of the right to use
an underlying asset. Under this statement, a lessee is required to recognize a lease liability and intangible
right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of
resources, thereby enhancing the relevance and consistency of information about leasing activities. The
District has not determined what impact, if any, this pronouncement will have on the financial statements.
This statement is effective for the District fiscal year ending December 31, 2020.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2017 and 2016
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 2017 and 2016, 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 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.
Debt Service Coverage and Operating Reserve Fund
Effective 2007, the Board has voluntarily set aside funds to improve the District’s cash-to-debt-
service ratio. In 2017, no funds were used.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2017 and 2016
Page 23
NOTE 2 – CASH, CASH EQUIVALENTS, AND INVESTMENTS (Continued)
Donner Lake Assessment District Surcharge Fund
The District established a monthly billing surcharge in the amount of $6.65 applicable to customers
in the Donner Lake area to provide revenue to pay the remainder of the cost of reconstruction
effective October 2006.
Deferred Liabilities Reserve
Starting in 2017, the Board established a reserve to protect the District from volatility in pension,
other post-employment benefits, and worker’s compensation premiums.
As of December 31, Board designated accounts at fair value consisted of the following:
Certain assets have been restricted by bond covenants or third party contractual agreements for the
following purposes:
Certificates of Participation
Prepayments to the Trustee from the District for upcoming debt payments.
Facilities Fees
The District charges facilities fees to applicants for new service to cover the costs of infrastructure
needed to meet their systems demand. The use of such funds is restricted by California state law.
Department of Water Resources (DWR) Prop 55 Reserve Fund
Regulations relating to the Department of Water Resources loan require the accumulation of a
reserve fund as security for each principal and interest payment as they come due. Annual
payments into the fund were required for each of the first ten years beginning April 1, 1996. The
total reserve fund equals two semi-annual payments and was fully funded during 2006. These funds
are set aside for the life of the borrowed amount. All of the reserve funds are invested in the State
of California Local Agency Investment Fund.
2017 2016
Electric capital replacement fund 4,035,103$ 3,428,130$
Electric vehicle reserve 602,706 378,880
Electric rate reserve 5,449,424 4,400,251
Electric deferred liabilites reserve 1,000,000 -
Reserve for future meters 507,653 533,777
Water vehicle reserve 60,897 -
Prepaid connection fees 80,261 79,181
Debt service & operating reserve fund 1,869,954 1,847,559
Donner Lake Assessment District surcharge fund 104,371 91,760
Totals 13,710,369$ 10,759,538$
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2017 and 2016
Page 24
NOTE 2 – CASH, CASH EQUIVALENTS, AND INVESTMENTS (Continued)
Glenshire Escrow Account
The District received cash and other assets as part of its acquisition of the Glenshire Mutual Water
Company. Also, the District received a monthly water system upgrade surcharge from Glenshire
residents until November 30, 2017. This cash was 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.
In 2017, the final debt payment was made and the surcharge ended.
Donner Lake Special Assessment District Improvement and Reserve Fund
The District established the Donner Lake Special Assessment District (DLAD) Improvement Fund
to account for all funds received from the Special Assessment Receivable, which will be used to
pay the debt service costs related to the Donner Lake Water System project. The DLAD
Improvement Fund also has a reserve fund as required by the California – Safe Drinking Water –
State Revolving Fund (SRF). This fund is required to set aside $40,043 semi-annually for ten years
beginning in 2006. The reserve fund was fully funded as of December 31, 2016.
AB32 Cap and Trade Auction Fund
The District electric utility is identified as an “Electric Distribution Utility” under the Cap and Trade
regulations and is therefore eligible to receive a direct allocation of allowances that can be sold in
an auction. The proceeds from quarterly allowance auctions are held in this restricted fund and
are used to purchase qualified renewable power. These funds are intended to mitigate the burden
on the consumer without impacting a carbon price signal.
Other (Area Improvement Funds)
The District received funds from the County of Nevada, which are to be used only for improvements
to specific areas within the District’s boundaries in Nevada County. These areas include various
Nevada County assessment districts.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2017 and 2016
Page 25
NOTE 2 – CASH, CASH EQUIVALENTS, AND INVESTMENTS (Continued)
As of December 31, restricted cash and cash equivalents and investments at fair value consisted of the
following:
Cash and investments are comprised of the following cash and cash equivalents and investments as of
December 31:
Cash and cash equivalents and investments were $28,820,448 and $24,737,083 at December 31, 2017
and 2016, respectively. Cash equivalents substantially consist of deposits in the state pooled fund, Placer
County pooled fund, money market funds and investments
Adjustments necessary to record investments at fair market value are recorded in the operating statement
as increases or decreases in investment income. Market values may have changed significantly after year
end.
FAIR VALUE MEASUREMENT
The District applies the provisions of Governmental Accounting Standards Board (GASB) Statement No.
72, Fair Value Measurement and Application, which requires governmental entities, to report certain
investments at fair value on the Statements of Net Position.
Investments are valued at fair value at December 31. Fair value is defined as the price that would be
received to sell an asset or paid to transfer a liability in an orderly transaction between market participants
at the measurement date. The District categorizes its fair value measurements within the fair value
hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation
inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices for identical instruments
in active markets. Level 2 inputs are quoted prices for similar instruments in active markets; quoted prices
for identical or similar instruments in markets that are not active; and model derived valuations in which all
2017 2016
Certificates of Participation 1,020,999$ 537,586$
Facilities fees 671,866 607,235
DWR-Prop 55 reserve fund 319,873 315,571
Glenshire escrow accounts - 95,695
Donner Lake Special Assessment District improvement 2,634,240 2,593,139
Donner Lake Special Assessment District reserve fund 811,765 804,801
AB 32 Cap and Trade Auction fund 1,137,796 1,163,035
Other (area improvement funds) 52,969 52,256
Total Restricted Cash and Cash
Equivalents and Investments 6,649,508$ 6,169,318$
2017 2016
Cash and cash equivalents 27,001,935$ 22,904,953$
Investments – government bonds 1,818,513 1,876,032
Totals 28,820,448$ 24,780,985$
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2017 and 2016
Page 26
NOTE 2 – CASH, CASH EQUIVALENTS, AND INVESTMENTS (Continued)
significant inputs are observable. Level 3 inputs are valuations derived from valuation techniques in which
significant inputs are unobservable.
The District classifies its fair value measurements within the fair value hierarchy established by generally
accepted accounting principles. The District has the following fair value measurements as of December
31, 2017:
US Government bonds and cash equivalents are valued using observable inputs (Level 2
inputs).
INVESTMENTS AUTHORIZED BY THE DISTRICT’S INVESTMENT POLICY
The District adopted an investment policy in 2006 which allowed for investments in instruments permitted
by the California Government Code and/or the investments permitted by the trust agreements on District
financing, including investments in the local government investment fund pool administered by the State of
California (LAIF), Placer County Treasurer’s Investment Portfolio (PCTIP) pooled investment and Utah
Public Treasurers’ Investment Fund (UPTIF). The District’s investment policy contains provisions intended
to limit the District’s exposure to interest rate risk, credit risk, and concentration of credit risk. At December
31, 2017 and 2016 the District’s deposits and investments at fair value were held as follows:
DISCLOSURES RELATING TO INTEREST RATE RISK
Interest rate risk is the risk that changes in the market interest rates will adversely affect the fair value of an
investment. Generally, the longer the maturity of an investment, the greater is the sensitivity of its fair value
to changes in market interest rates. Information about the sensitivity of the fair values of the District’s
investments to market interest rate fluctuations is provided by the following table that shows the District’s
investments by maturity for 2017 and 2016:
Investments and Deposits Maturity
LAIF 3 months or less
PCTIP 3 months or less
UPTIF 3 months or less
Morgan Stanley Treasury 3 months or less
Fidelity Money Market Government Portfolio 57 3 months or less
Dreyfus Treasury Securities 3 months or less
Federal Farm Credit Banks 03/02/2021
2017 2016
Cash on hand 2,400$ 2,400$
Deposits 1,083,310 964,122
LAIF 9,915,618 8,006,871
PCTIP 7,933,761 6,853,226
UPTIF 7,446,510 6,944,706
Money Market Funds 620,336 133,628
Government Bonds 1,818,513 1,876,032
Totals 28,820,448$ 24,780,985$
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2017 and 2016
Page 27
NOTE 2 – CASH, CASH EQUIVALENTS, AND INVESTMENTS (Continued)
DISCLOSURES RELATING TO CREDIT RISK
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of
the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating
organization. LAIF, PCTIF and UPTIF do not have a rating provided by a nationally recognized statistical
rating organization. The Morgan Stanley Treasury is rated AAAm by S&P and Aaa-mf by Moody’s. Federal
Farm Credit Banks is rated AA+ by S&P and Aaa by Moody’s. The Dreyfus Treasury Securities is rated
Aaa-mf by Moody’s and AAAm by S&P. The Fidelity Money Market is rated AAA-mf by Moody’s and AAAm
by S&P.
CUSTODIAL CREDIT RISK
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution,
a government will not be able to recover its deposits or will not be able to recover collateral securities that
are in the possession of an outside party. The District’s investment policy does not contain legal or policy
requirements that would limit the exposure to custodial credit risk for deposits. However, the California
Government Code requires that a financial institution secure deposits made by state or local governmental
units by pledging securities in an undivided collateral pool held by a depository regulated under state law
(unless waived by the government unit). The market value of pledged securities in the collateral pool must
equal at least 110% of the total amount deposited by the public agencies.
As of December 31, 2017 and 2016 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).
DEPOSIT IN STATE INVESTMENT POOL
The District is a voluntary participant in the Local Agency Investment Fund (LAIF). This investment fund
has an equity interest in the State of California’s (State’s) Pooled Money Investment Account (PMIA). PMIA
funds are on deposit with the State’s Centralized Treasury System and are managed in compliance with
the California Government Code according to a statement of investment policy which sets forth permitted
investment vehicles, liquidity parameters, and maximum maturity of investments. The fair value of the
District’s investment in this pool is reported in the accompanying financial statements at amounts based
upon the District’s pro-rata share of the fair value provided by the LAIF for the entire LAIF portfolio (in
relation to the amortized cost of the portfolio). The balance available for withdrawal is based on the
accounting records maintained by the LAIF, which are recorded on an amortized cost basis.
DEPOSIT IN PLACER COUNTY TREASURER INVESTMENT POOL
The District is a voluntary participant in the Placer County Investment Portfolio (PCTIP). The District is
eligible to participate in PCTIP because a portion of the District’s service area is in Placer County.
Investments are on deposit with the Placer County Treasurer and are managed in compliance with the
California Government Code according to a statement of investment policy which sets forth permitted
investment vehicles, liquidity parameters, and maximum maturity of investments. The fair value of the
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2017 and 2016
Page 28
NOTE 2 – CASH, CASH EQUIVALENTS, AND INVESTMENTS (Continued)
District’s investment in this pool is reported in the accompanying financial statements at amounts based
upon the District’s pro-rata share of the fair value provided by Placer County Treasurer for the entire PCTIP
(in relation to the amortized cost of the portfolio). The balance available for withdrawal is based on the
accounting records maintained by the Placer County Treasurer, which are recorded on an amortized cost
basis.
DEPOSIT IN UTAH PUBLIC TREASURERS’ INVESTMENT FUND
The District is a voluntary participant in the Utah Public Treasurers’ Investment Fund (UPTIF). The District
is eligible to participate in (UPTIF) through its membership with Utah Associated Municipal Power Systems
(UAMPS). Investments are on deposit with State of Utah public treasury and investments are restricted to
those authorized by the Utah Money Management Act and rules of the Money Management Council of
Utah. The fair value of the District’s investments in this pool is reported in the accompanying financial
statements at amounts based upon the District’s pro-rata share of the fair value provided by UPTIF through
UAMPS Member Retention Fund.
NOTE 3 – CAPITAL ASSETS
Capital assets consist of the following at December 31, 2017 and 2016:
As of December 31, 2017 and 2016, the plant in service included land and land rights of $3,318,346 which
are not being depreciated.
A portion of the plant has been contributed to the District. When replacement is needed, the District replaces
the contributed plant with District-financed plant.
January 1, December 31,
2017 Additions Reductions 2017
Electric distribution facilities 58,345,690$ 2,191,342$ (120,111)$ 60,416,921$
Water distribution facilities 108,860,825 4,898,966 (1,163,044) 112,596,747
General plant 15,062,278 988,813 (268,471) 15,782,620
182,268,793 8,079,121 (1,551,626) 188,796,288
Less: Accumulated depreciation (63,372,738) (6,840,212) 1,649,716 (68,563,235)
Construction work in progress 4,706,276 5,554,478 (7,379,733) 2,881,021
Totals 123,602,331$ 6,793,387$ (7,281,643)$ 123,114,074
January 1, December 31,
2016 Additions Reductions 2016
Electric distribution facilities 54,721,615$ 4,391,867$ (767,792)$ 58,345,690$
Water distribution facilities 107,005,578 2,023,496 (168,249) 108,860,825
General plant 13,887,881 1,332,733 (158,336) 15,062,278
175,615,074 7,748,096 (1,094,377) 182,268,793
Less: Accumulated depreciation (58,042,448) (6,485,285) 1,154,994 (63,372,738)
Construction work in progress 4,844,042 7,686,181 (7,823,947) 4,706,276
Totals 122,416,668$ 8,948,992$ (7,763,330)$ 123,602,331$
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2017 and 2016
Page 29
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 $496,990 was expensed in 2014 for legal fees and preliminary feasibility studies. In
2017 and 2016 there were no material expenditures for this project.
In 2018, The District signed a Memorandum of Understanding with Plumas Sierra Telecommunications to
offer services utilizing these four fibers from Reno to Sacramento in future years.
NOTE 5 – LONG-TERM DEBT
Long-term debt consisted of the following at December 31, 2017:
January 1, December 31, Due within
2017 Additions Reductions 2017 one year
Pension Obligation Bonds
Electric, 2.47%
due semi-annually to 2020 5,149,000$ -$ (404,000)$ 4,745,000$ 1,269,000$
State Revolving Fund Loan –
Water, 2.34%, due semi-annually
beginning in 2006 to 2026. 6,786,402 - (645,806) 6,140,596 661,006
Certificates of Participation –
Water, 4.00% to 5.00%,
due serially to 2021
refinanced in 2016 3,266,000 - (632,000) 2,634,000 644,000
Certificates of Participation –
Water, 2.00% to 4.00%,
due serially to 2035 (net
premiums of $475,059) 13,997,077 - (562,018) 13,435,059 550,000
Department of Water Resources,
3.18%, due semiannually to
2021, secured by real
and personal property. 1,275,743 - (268,092) 1,007,651 276,650
Installment loan, 4.58%
due serially to 2023 374,548 - (316,145) 58,403 10,658
Totals 30,848,770$ -$ (2,828,061)$ 28,020,709$ 3,411,314$
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2017 and 2016
Page 30
NOTE 5 – LONG-TERM DEBT (Continued)
Long-term debt consisted of the following at December 31, 2016:
During April 2004, the District obtained financing in the form of a State Revolving Fund Loan, the proceeds
of which were utilized in the replacement of the Donner Lake water system. The District submitted
expenditures to the State for reimbursement of $12,732,965. The semi-annual principal and interest
payments are $400,426 and commenced in 2006. In 2004, the remaining balance of $12,227,122 was used
to pay off the temporary lines of credit obtained in 2001 and 2002 to fund the Donner Lake project. (See
note 8).
On October 12, 2006, through the Truckee Donner Public Utility District Financing Corporation on behalf of
the District issued $26,570,000 of Certificates of Participation to refund 100% of the outstanding balance
of Certificates issued in 1996, complete the funding of the Donner Lake Assessment District water system,
and fund water system capital improvements. The refunding portion of the 2006 COP’s, totaling $8,465,000,
has an average interest rate of 4.10%. The refunded 1996 COP’s had an average interest rate of 5.41%.
The net proceeds of $7,500,557 (after payment of $63,733 in underwriting fees, insurance and other
isuance costs) plus an additional $1,315,194 of reserve fund monies were used to prepay the outstanding
debt service requirements on the 1996 COP’s. The terms of the Certificates call for payments to be made
January 1, December 31, Due within
2016 Additions Reductions 2016 one year
Pension Obligation Bonds
Electric, 5%
due semi-annually to 2020 5,584,000$ -$ (5,584,000)$ -$ -$
refinanced in 2016
Pension Obligation Bonds
Electric, 2.47%
due semi-annually - 5,589,000 (440,000) 5,149,000 809,000
State Revolving Fund Loan –
Water, 2.34%, due semi-annually
beginning in 2006 to 2026 7,417,358 - (630,956) 6,786,402 645,807
Certificates of Participation –
Water, 4.00% to 5.00%,
due serially to 2021
refinanced in 2016 3,765,000 - (3,765,000) - -
Certificates of Participation –
Water, 1.54%
due serially to 2021 - 3,266,000 - 3,266,000 632,000
Certificates of Participation –
Water, 2.00% to 4.00%,
due serially to 2035 (net
premiums of $502,077) 14,544,095 - (547,018) 13,997,077 535,000
Department of Water Resources,
3.18%, due semiannually to
2021, secured by real
and personal property. 1,535,448 - (259,705) 1,275,743 268,092
Installment loans, 5.4% to 6.23%,
various payment terms and
due dates, secured by
equipment. 673,789 - (299,242) 374,548 316,144
Totals 33,519,690$ 8,855,000$ (11,525,921)$ 30,848,770$ 3,206,043$
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2017 and 2016
Page 31
NOTE 5 – LONG-TERM DEBT (Continued)
only from the net revenues of the Water Division and the debt is secured by this revenue. These revenues
are required to be at least equal to 125% of the debt service for each year.
In 2015, a portion of the 2006 COP was refunded. Since a portion of the 2006 COP was used for advance
refunding of previous COP, that portion could not be advance refunded at the time of the refunding. The
new 2015 refunding did not require a reserve fund. The reserve fund was liquidated and applied towards
reducing the debt principal. The estimated net present value savings were $1,600,000 or 10% over the
remaining life of issuance.
In 2016, the remaining portion of the 2006 COP was refunded. Due to the refunding an estimated net
present value savings of $222,000 was achieved.
Under the Safe Drinking Water Bond Law of 1986, the Department of Water Resources provided a
$5,000,000 loan to the District in 1993. The loan was to finance capital improvements to the public water
supply and to reduce water quality hazards. The terms of the loan call for payments to be made only from
the net revenues of the Water Division, which are required to be sufficient to pay the debt service for each
year.
In June 2011, the District refunded (refinanced) an existing $7.8 million pension side fund obligation for its
participation in CalPERS. Prior to 2011, the annual side fund payments were expensed and described in
the Notes to Financial Statements. The pension side fund liability was amortized through June 2022 with a
7.75% rate. This liability was not required to be reported on the District’s Statement of Net Position, but the
future pension expense was included in budget and rate calculations. The new refunding rate of 5% reduced
the District’s annual pension costs by almost $100,000 through 2022. In 2016, the District refunded the
pension side fund again earning the District annual savings of $30,000 or $164,000 in total.
As a normal part of its operations, the District finances the acquisition of certain assets through the use of
installment loans. These loans have been used to finance the purchase of vehicles, equipment, and certain
water system improvements. There were no additional installment loans in 2017 or in 2016.
Scheduled payments on debt are:
Principal Interest Total
2018 3,411,314$ 855,887$ 4,267,201$
2019 3,117,221 724,222 3,841,442
2020 3,228,784 648,447 3,877,231
2021 3,179,833 563,954 3,743,787
2022 1,907,221 486,560 2,393,781
2023-2027 6,221,277 1,747,794 7,969,070
2028-2032 4,255,000 903,838 5,158,838
2033-2037 2,225,000 149,425 2,374,425
27,545,650$ 6,080,127$ 33,625,776$
Plus: Unamortized premiums 475,059
28,020,709$
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2017 and 2016
Page 32
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, 2017 and 2016,
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, 2017 and 2016:
NOTE 7 – DONNER LAKE WATER COMPANY ACQUISITION
In 2001, the District acquired the Donner Lake Water Company by initiating an eminent domain lawsuit. As
a part of the takeover, the District replaced the entire water system, which cost approximately
$15.6 million and was completed in 2006. The District initially estimated the replacement cost to be
$13 million. The Donner Lake property owners agreed to reimburse the District for the full costs of the
replacement. Therefore, an assessment was placed on each Donner Lake homeowner’s property for a pro-
rata share of the $13 million payable immediately or with an option to pay over 20 years. The assessment
is collected by Nevada County and Placer County on behalf of the District and is secured by the Donner
Lake property owners. A monthly $6.65 water system upgrade surcharge is paid by the Donner Lake
customers to reimburse the District for the $2.6 million cost incurred in excess of the assessment.
In April 2004, the District obtained financing in the form of a State Revolving Fund Loan for $12,732,965 at
a rate of 2.34%. The District is required to fund a reserve account by making semi-annual reserve payments
in the amount of $40,043 for a 10-year period. The reserve fund is fully funded as of December 31, 2016.
As of December 31, 2017 and 2016, the assessment receivable from the property owners was $3,005,178
and $3,692,876 respectively, of which $736,020 and $714,622 is due in the next year. These amounts are
shown as Special Assessments Receivable in the Statement of Net Position. The proceeds of the
assessment and surcharge are placed in the Donner Lake Special Assessment District Improvement Fund
and used to pay the debt service for the water system improvements.
January 1, December 31,
2017 Additions Reductions 2017
Development agreement deposits 2,237,330 1,134,433 (603,342) 2,768,421
Connection fees and other deposits 836,178 823,219 (773,741) 885,656
Totals 3,073,507$ 1,957,652$ (1,377,083)$ 3,654,076$
January 1, December 31,
2016 Additions Reductions 2016
Development agreement deposits 2,156,844 644,922 (564,436) 2,237,330
Connection fees and other deposits 1,069,865 987,611 (1,221,298) 836,178
Totals 3,226,709 1,632,533 (1,785,734) 3,073,507
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2017 and 2016
Page 33
NOTE 8 – 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, 2017 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 11.049% 6.533%
Miscellaneous
Hire Date
Prior to
January 1, 2013
On or after
January 1, 2013
Benefit Formula 2.7% @ 55 2% @ 62
2017 Employer Contributions $1,044,745 $94,014
2016 Employer Contributions $979,835 $69,062
Miscellaneous
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2017 and 2016
Page 34
NOTE 8 – EMPLOYEE BENEFIT PLANS (Continued)
B. PENSION LIABILITIES, PENSION EXPENSES AND DEFERRED OUTFLOWS/INFLOWS OF
RESOURCES RELATED TO PENSIONS
As of December 31, 2017, 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, 2017, and the total pension liability used to calculate
the net pension liability was determined by an actuarial valuation as of June 30, 2016 rolled forward to
June 30, 2017 using standard update procedures. The District’s proportion of the net pension liability
was based on a projection of the District’s long-term share of contributions to the pension plans relative
to the projected contributions of all participating employers, actuarially determined. The District’s
proportionate share of the net pension liability for the Plan for the measurement date of June 30, 2017
and June 30, 2016 is as follows:
For the years ended December 31, 2017 and 2016 the District recognized pension expense of
$2,269,610 and $1,220,591 respectively. At December 31, 2017 the District reported deferred outflows
of resources and deferred inflows of resources related to pensions from the following sources:
June 30, 2017 June 30, 2016
$11,975,655 $10,250,329
Proportionate Share of Net Pension Liability
Fiscal Year Ending
June 30, 2017 June 30, 2016 Change
0.30379% 0.29837%0.00542%
Percentage Share of Risk Pool
Percentage of Plan NPL
Measurement Date
Deferred Outflows of
Resources
Deferred Inflows of
Resources
Changes of assumptions $1,796,683
Differences between expected and actual experience (208,908)
Differences between projected and actual investment earnings 439,877
Differences between employer's contributions and
proportionate share of contributions
Change in employer's proportion 544,250
Pension contributions made subsequent to the measurement 870,580
date
Total $3,651,390 ($551,932)
(343,024)
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2017 and 2016
Page 35
NOTE 8 – EMPLOYEE BENEFIT PLANS (Continued)
B. PENSION LIABILITIES, PENSION EXPENSES AND DEFERRED OUTFLOWS/INFLOWS OF
RESOURCES RELATED TO PENSIONS (Continued)
$870,580 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, 2017. Other amounts reported as deferred outflows of resources and deferred inflows
of resources related to pensions will be recognized as pension expense as follows:
Actuarial Assumptions – The total pension liabilities in the June 30, 2017 actuarial valuations were
determined using the following actuarial assumptions:
(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, 2017
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.
Year Ended
December 31 Amount
2018 $699,571
2019 $1,107,687
2020 $682,783
2021 ($261,163)
$2,228,878
Miscellaneous
2017
Valuation Date June 30, 2016
Measurement Date June 30, 2017
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:
Discount Rate 7.15%
Inflation 2.75%
Payroll Growth 3.00%
Salary Increase Varies by Entry Age and Service
Investment Rate of Return 7.5% Net of Pension Plan Investment and Administrative
Expenses; includes Inflation
Mortality (1)Derived using CalPERS membership data for all funds
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2017 and 2016
Page 36
NOTE 8 – EMPLOYEE BENEFIT PLANS (Continued)
B. PENSION LIABILITIES, PENSION EXPENSES AND DEFERRED OUTFLOWS/INFLOWS OF
RESOURCES RELATED TO PENSIONS (Continued)
Discount Rate - The discount rate used to measure the total pension liability as of December 31, 2017
was 7.15%. To determine whether the municipal bond rate should be used in the calculation of a
discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate
that would be different from the actuarially assumed discount rate. Based on the testing, none of the
tested plans run out of assets. Therefore, the current 7.15% discount rate used is adequate and the
use of the municipal bond rate calculation is not necessary. The long term expected discount rate of
7.15% will be applied to all plans in the Public Employees Retirement Fund (PERF). The stress test
results are presented in a detailed report that can be obtained from the CalPERS website.
The long-term expected rate of return on pension plan investments was determined using a building-
block method in which best-estimate ranges of expected future real rate of return (expected returns,
net of pension plan investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both short-term and
long-term market return expectations as well as the expected pension fund cash flows. Using historical
returns of all the funds’ asset classes, expected compound returns were calculated over the short-term
(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%
Total 100.0%
(a) An expected inflation rate of 2.5% was used for this period
(b) An expected inflation rate of 3.0% was used for this period
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2017 and 2016
Page 37
NOTE 8 – 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, 2016 and 2015 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 2017 and 2016,
the total match was $106,332 and $91,066 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.
Measurement Date June 30,2017
1% Decrease 6.15%
Net Pension Liability $18,386,901
Current Discount Rate 7.15%
Net Pension Liability $11,975,655
1% Increase 8.15%
Net Pension Liability $6,665,743
Miscellaneous
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2017 and 2016
Page 38
NOTE 8 – 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, 2017, there were fifty eight 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 Annual Required Contribution (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, 2017 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, 2017 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.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2017 and 2016
Page 39
NOTE 8 – EMPLOYEE BENEFIT PLANS (Continued)
E. OTHER POST EMPLOYMENT BENEFITS (OPEB) (Continued)
The District’s annual OPEB cost is recognized in the District’s operating expenses. The following table
shows the components of the amount actually contributed to the plan, and changes in the net OPEB
obligation to the Retiree Health Plan:
Actuarial valuations of an ongoing plan are required at least once every three 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$
06/30/2016 665,667$ 665,667$ 275,240$ 41.3% 390,427$ 328,791$ 719,218$
06/30/2017 683,973$ 683,973$ 286,623$ 41.9% 397,350$ 719,218$ 1,116,568$
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2017 and 2016
Page 40
NOTE 8 – 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 $3.8 million due
to a new Actuarial Standard of Practice 6 that became effective for valuations after March 1, 2015 that
requires valuing an “implicit rate subsidy”. Though the District has an employer cap on retiree benefits, the
liability of providing them based on the expected premiums of the plan are now required to be recognized
in the actuarial valuation to guarantee the stability of the plan for the long run which nearly doubled the
normal costs and liabilities.
NOTE 9 – SELF FUNDED INSURANCE
The District has a self-funded vision insurance program and claims were processed by and on behalf of
the District. The District did not maintain a claim liability; rather claims were expensed as paid. The
amount of claims paid for each of the past three years have not been material.
NOTE 10 – SEGMENT DISCLOSURE
The District has issued revenue bonds to finance electric and water distribution facilities. The project has
an external requirement to be reported separately, and investors in the revenue bonds rely solely on the
revenue generated by the individual projects for repayment. Summary financial information for each project
is presented on the following pages for the years ending December 31, 2017 and 2016.
Accrued Actuarial Unfunded Funded Annual
Valuation Liabilities Value of Liabilities Ratio Covered UL as a %
Date* (AL) Assets (AVA) (UL) (AVA/AL) Payroll of Payroll
01/01/2011 2,501,800$ 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, 2017 and 2016
Page 41
NOTE 10 – SEGMENT DISCLOSURE (Continued)
STATEMENT OF NET POSITION
Electric Water
Current assets 23,717,604$ 10,085,811$
Non-current assets:
Capital assets, net 48,257,502 74,856,572
Restricted assets - 1,818,513
Other long-term assets 843,086 3,005,178
Total Noncurrent Assets 49,100,588 79,680,263
Deferred outflows of resources
Pension 2,190,835 1,460,556
Unamortized loss on refunding - 576,778
Unamortized redemption premium 122,673 -
2,313,508 2,037,334
TOTAL ASSETS AND DEFERRED OUTFLOWS 75,131,700$ 91,803,408$
OF RESOURCES
AND NET POSITION
Current liabilities 4,702,463$ 2,742,557$
Non-current Liabilities
Long-term debt, net of current portion 3,523,745 21,085,650
Net pension liability 7,185,392 4,790,262
OPEB liability 669,941 446,627
Unearned revenues 2,612,137 1,041,939
Total Noncurrent Liabilities 13,991,215 27,364,478
Total Liabilities 18,693,678 30,107,035
Deferred inflows of resources
Pension 331,159 220,773
Total Deferred Inflows of Resources 331,159 220,773
Net Position
Net investment in capital assets 43,501,844 52,216,044
Restricted for debt service 1,842,553 4,576,780
Unrestricted 10,762,466 4,682,776
Total Net Position 56,106,863 61,475,600
TOTAL LIABILITIES, DEFERRED INFLOWS 75,131,700$ 91,803,408$
OF RESOURCES AND NET POSITION
LIABILITIES, DEFERRED INFLOWS OF RESOURCES
ASSETS AND DEFERRED OUTFLOWS OF RESOURCES
December 31, 2017
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2017 and 2016
Page 42
NOTE 10 – SEGMENT DISCLOSURE (Continued)
Electric Water
Current assets 19,438,054$ 9,475,927$
Non-current assets:
Capital assets, net 47,660,186 75,942,145
Restricted assets - 1,876,032
Other long term assets 925,520 3,692,876
Total Noncurrent Assets 48,585,706 81,511,053
Deferred outflows of resources
Pension 2,403,030 1,602,020
Unamortized loss on refunding - 609,580
Unamortized redemption premium 149,934 -
Total Deferred Outflows of Resources 2,552,964 2,211,600
TOTAL ASSETS AND DEFERRED OUTFLOWS 70,576,724$ 93,198,580$
OF RESOURCES
AND NET POSITION
Current liabilities 4,312,570$ 2,949,891$
Non-current Liabilities
Long-term debt, net of current portion 4,398,403 23,244,323
Net pension liability 6,150,197 4,100,132
OPEB liability 431,530 287,687
Unearned revenues 2,587,458 486,049
Total Noncurrent Liabilities 13,567,588 28,118,191
Total Liabilities 17,880,158 31,068,082
Deferred inflows of resources
Pension 958,276 638,850
Total Deferred Inflows of Resources 958,276 638,850
Net Position
Net investment in capital assets 42,500,995 50,920,550
Restricted for debt service 1,316,355 4,695,114
Unrestricted 7,920,940 5,875,984
Total Net Position 51,738,290 61,491,648
TOTAL LIABILITIES, DEFERRED INFLOWS 70,576,724$ 93,198,580$
OF RESOURCES AND NET POSITION
ASSETS AND DEFERRED OUTFLOWS OF RESOURCES
LIABILITIES, DEFERRED INFLOWS OF RESOURCES
December 31, 2016
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2017 and 2016
Page 43
NOTE 10 – SEGMENT DISCLOSURE (Continued)
STATEMENTS OF REVENUE, EXPENSES, AND CHANGES IN NET POSITION
Electric Water
Operating Revenues
Sales to consumers 22,660,258$ 11,801,888$
Other operating revenues 5,046,862 538,960
Operating expenses 22,108,454 8,774,652
Depreciation 2,624,534 3,907,106
Non-operating revenues (expenses) 140,304 (517,830)
Income (loss) before
capital contributions & other 3,114,436 (858,740)
Capital contributions, net 1,254,137 842,691
CHANGE IN NET POSITION 4,368,573 (16,049)
Net Position, Beginning 51,738,290 61,491,648
NET POSITION, ENDING 56,106,863$ 61,475,599$
Year ended December 31, 2017
Electric Water
Operating Revenues
Sales to consumers 21,713,614$ 11,312,973$
Other operating revenues 3,357,601 749,177
Operating expenses (20,222,867) (8,171,428)
Depreciation (2,576,192) (3,660,841)
Non-operating revenues (expenses) 12,076 (700,499)
Income (loss) before
capital contributions & other 2,284,232 (470,618)
Capital contributions, net 1,111,440 587,670
CHANGE IN NET POSITION 3,395,672 117,052
Net Position, Beginning 48,342,618 61,374,596
NET POSITION, ENDING 51,738,290$ 61,491,648$
Year ended December 31, 2016
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2017 and 2016
Page 44
NOTE 11 – SEGMENT DISCLOSURE (Continued)
STATEMENTS OF CASH FLOWS
Electric Water
NET CASH PROVIDED BY (USED IN)
Operating activities 6,624,835$ 3,545,750$
Noncapital financing activities (467,590) -
Capital and related financing activities (2,328,476) (3,723,773)
Investing activities 181,261 295,975
4,010,030 117,952
Cash and Cash Equivalents, Beginning 15,439,826 7,485,574
CASH AND CASH
EQUIVALENTS, ENDING 19,449,856$ 7,603,526$
Year ended December 31, 2017
Net increase (decrease) in cash and
cash equivalents
Electric Water
NET CASH PROVIDED BY (USED IN)
Operating activities 5,549,180$ 3,719,688$
Noncapital financing activities (921,171) -
Capital and related financing activities (2,233,583) (6,189,302)
Investing activities 114,807 292,186
2,509,233 (2,177,428)
Cash and Cash Equivalents, Beginning 12,930,593 9,663,002
CASH AND CASH
EQUIVALENTS, ENDING 15,439,826$ 7,485,574$
Year ended December 31, 2016
cash equivalents
Net increase (decrease) in cash and
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2017 and 2016
Page 45
NOTE 11 – MARTIS VALLEY GROUNDWATER MANAGEMENT EFFORTS
The Martis Valley aquifer underlies about 35,000 acres in both Placer and Nevada counties, near the Town
of Truckee. It is the main 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 submit a groundwater
management plan and to help develop a groundwater model for the Martis Valley basin.
The Martis Valley Groundwater Management Plan (GMP) was prepared in 2015 to reflect current water
resources planning in the region and to incorporate the latest information and understanding of the
underlying groundwater basin. This collaborative effort provided the guidance necessary to align
groundwater policy. In addition to the groundwater management plan, a computer model of the
groundwater basin was developed by the Desert Research Institute, which incorporated available data and
enhanced understanding of the groundwater basin. A climate change modeling component was part of the
overall Federal study effort.
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.
In mid 2016, the California Sustainable Groundwater Management Act of 2014 (SGMA) took effect for which
the District was the submitting agency of a SGMA Alternate Submittal in December, 2016 on behalf of the
Town of Truckee, Placer County, Nevada County, PCWA, and Northstar CSD (Local SGMA Agencies).
The SGMA Alternative Submittal is intended to comply with the new regulations. There was an adopted
MOA amongst the six local agencies for this compliance project which covers the time period for preparation
of the SGMA Alternative Submittal, possible conditional acceptance of the plan by DWR, and submittal of
a first-year annual report. DWR has two years by statute to review the SGMA Alternative Submittal and,
as of the date the financial statements were available to be issued, has not formally responded.
NOTE 12 – 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 13 – 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.
REQUIRED SUPPLEMENTARY INFORMATION
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2017 and 2016
Page 47
COST SHARING DEFINED BENEFIT PENSION PLANS
2017 2016 2015 2014
Portion of Net Pension Liability 0.30379% 0.29837% 0.29209% 0.09982%
Proportionate Share of The Net Pension Liability $11,975,655 $10,250,329 $8,013,400 $6,210,985
Covered - Employee Payroll $7,108,563 $6,670,248 $6,162,431 $6,278,545
Proporationate Share of the Net Pension Liability as
Percentage of Covered Payroll 168.47% 153.67% 130.04% 98.92%
Plan's Fidicuiary Net Position $27,244,095 $30,950,578 $30,725,516 $30,386,101
Plan Fiduciary Net Position as a percentage of the
Total Pension Liability 73.31% 75.12% 79.31% 89.17%
* Fiscal year 2014 was the 1st year of implementation, therefore only four years are shown
Schedule of the District's Proportionate Share of the Net Pension Liability
Cost Sharing Defined Benefit Plans
As of June 30
Last Ten Years*
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2017 and 2016
Page 48
2017 2016 2015 2014
Contractually Required Contribution (Actuarially
Determined)$1,138,758 $1,011,908 $950,147 $943,118
Contributions in Relation to the Actuarially
Determined Contributions
$1,138,758 $1,048,897 $949,634 $943,118
Contribution deficiency (excess) ($0) ($36,989) $513 $0
Covered - Employee Payroll $7,108,563 $6,670,248 $6,162,431 $6,278,545
Contributions as a percentage of covered-employee
payroll 16% 16% 15% 15%
* Fiscal year 2014 was the 1st year of implementation, therefore only four years are shown
Schedule of Contributions
Cost Sharing Defined Benefit Plans
As of June 30
Last Ten Years*
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2017 and 2016
Page 49
POSITION OF OTHER POST EMPLOYMENT BENEFIT PLANS
Accrued Actuarial Unfunded Funded Annual
Valuation Liabilities Value of Liabilities Ratio Covered UL as a %
Date* (AL) Assets (AVA) (UL) (AVA/AL) Payroll of Payroll
01/01/2007 1,369,600$ 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 were routinely done every two years. The valuation
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
Page 51
CONSOLIDATING STATEMENT OF NET POSITION
As of December 31, 2017
Electric Operations Water Operations Eliminations Totals
ASSETS AND DEFERRED OUTFLOWS OF RESOURCES
CURRENT ASSETS
Funds
Operating 6,411,215$ 2,049,356$ -$ 8,460,571$
Designated 11,087,233 2,623,136 - 13,710,369
Restricted 1,902,490 2,928,505 - 4,830,995
Total Funds 19,400,938 7,600,997 - 27,001,935
Accounts receivable, net 1,476,994 1,217,272 - 2,694,266
Unbilled revenues 1,863,673 765,784 - 2,629,457
Accrued interest receivable 21,203 51,830 - 73,033
Materials and supplies 519,034 158,862 - 677,896
Prepaid expenses 391,141 242,050 - 633,191
Other 44,621 49,016 - 93,637
Total Current Assets 23,717,604 10,085,811 - 33,803,415
NON-CURRENT ASSETS
Other Non-Current Assets
Restricted funds - 1,818,513 - 1,818,513
Special assessments receivable - 3,005,178 - 3,005,178
Other 843,086 - - 843,086
Total Other Non-Current Assets 843,086 4,823,691 - 5,666,777
DEFERRED OUTFLOWS OF RESOURCES
Pension 2,190,835 1,460,556 - 3,651,391
Unamortized loss on refunding - 576,778 - 576,778
Unamortized redemption premium 122,673 - - 122,673
Total deferred outflows of resources 2,313,508 2,037,334 - 4,350,842
CAPITAL ASSETS
Utility plant 71,679,419 117,116,869 - 188,796,288
Accumulated depreciation (25,855,204) (42,708,031) - (68,563,235)
Construction work in progress 2,433,287 447,734 - 2,881,021
Total capital assets 48,257,502 74,856,572 - 123,114,074
TOTAL ASSETS AND DEFERRED OUTFLOWS OF RESOURCES 75,131,700$ 91,803,408$ -$ 166,935,108$
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
SUPPLEMENTARY INFORMATION
Page 52
Electric Operations Water Operations Eliminations Totals
NET POSITION AND LIABILITIES
CURRENT LIABILITIES
Other liabilities
Accounts payable 2,312,114$ 33,632$ -$ 2,345,746$
Customer deposits 399,333 88,863 - 488,196
Other 651,421 343,194 - 994,615
Total other liabilities 3,362,868 465,689 - 3,828,557
Current liabilities payable from restricted assets:
Current portion of long-term debt 1,279,658 2,131,656 - 3,411,314
Accrued interest payable 59,937 145,212 - 205,149
Total Current Liabilities Payable from Restricted Assets 1,339,595 2,276,868 - 3,616,463
Total Current Liabilities 4,702,463 2,742,557 - 7,445,020
NON-CURRENT LIABILITIES
Long-term debt, net of discounts and premiums 3,476,000 21,085,650 - 24,561,650
Net pension liability 7,185,392 4,790,263 - 11,975,655
OPEB liability 669,941 446,627 - 1,116,568
Installment loans 47,745 - - 47,745
Unearned revenues 2,612,137 1,041,939 - 3,654,076
Total non-current liabilities 13,991,215 27,364,479 - 41,355,694
Total Liabilities 18,693,678 30,107,036 - 48,800,714
DEFERRED INFLOWS OF RESOURCES
Pension 331,159 220,773 - 551,932
Total deferred inflows of resources 331,159 220,773 - 551,932
NET POSITION
Net investment in capital assets 43,501,844 52,216,044 - 95,717,888
Restricted for debt service 1,842,553 4,576,780 - 6,419,333
Unrestricted 10,762,466 4,682,775 - 15,445,241
Total Net Position 56,106,863 61,475,599 - 117,582,462
TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND NET POSITION 75,131,700$ 91,803,408$ -$ 166,935,108$
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
SUPPLEMENTARY INFORMATION
Page 53
CONSOLIDATING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
For the Year Ended December 31, 2017
Electric Operations Water Operations Eliminations Totals
OPERATING REVENUES
Sales to customers 22,660,258$ 11,801,888$ -$ 34,462,146$
Interdepartmental sales 1,148,845 2,292 (1,151,137) -
Standby fees 21,530 133,440 - 154,970
Cap and trade proceeds 1,140,372 - - 1,140,372
Other 2,736,115 403,229 (561,479) 2,577,865
Total Operating Revenues 27,707,120 12,340,849 (1,712,616) 38,335,353
OPERATING EXPENSES
Purchased power 11,327,300 - - 11,327,300
Operations and maintenance 4,997,232 4,835,623 (1,151,137) 8,681,718
Consumer services 1,661,708 640,793 - 2,302,501
Administration and general 2,522,038 2,231,453 (561,479) 4,192,012
Pension expense 1,361,766 907,844 - 2,269,610
OPEB expense 238,410 158,940 - 397,350
Depreciation 2,624,534 3,907,106 - 6,531,640
Total Operating Expenses 24,732,988 12,681,759 (1,712,616) 35,702,131
Operating Income 2,974,132 (340,910) - 2,633,222
NON-OPERATING REVENUE (EXPENSES)
Investment income 163,323 230,654 - 393,977
Interest expense (2,951) (743,045) - (745,996)
Amortization (27,261) (5,784) - (33,045)
Gain (loss) on disposition of assets 7,193 345 - 7,538
Total Non-Operating Expenses 140,304 (517,830) - (377,526)
Income Before Contributions 3,114,436 (858,740) - 2,255,696
CAPITAL & OTHER CONTRIBUTIONS, net
Capital Contributions 946,717 1,150,111 - 2,096,828
Intercompany Debt Service - Pension Sidefund 307,420 (307,420) - -
Total Capital and Other Contributions, net 1,254,137 842,691 - 2,096,828
CHANGE IN NET POSITION 4,368,573 (16,049) - 4,352,524
NET POSITION - Beginning of Year 51,738,290 61,491,648 - 113,229,938
NET POSITION - END OF YEAR 56,106,863$ 61,475,599$ -$ 117,582,462$
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
SUPPLEMENTARY INFORMATION
Page 54
CONSOLIDATING STATEMENT OF CASH FLOWS
For the Year Ended December 31, 2017
Electric Operations Water Operations Eliminations Total
CASH FLOWS FROM OPERATING ACTIVITIES
Received from customers 27,915,556$ 11,560,093$ (1,684,739)$ 37,790,910$
Paid to suppliers for goods and services (16,319,624) (5,499,190) 1,684,739 (20,134,075)
Paid to employees for services (4,971,097) (2,515,153) - (7,486,250)
Net Cash Flows from Operating Activities 6,624,835 3,545,750 - 10,170,585
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Principal payments on long-term debt (404,000) - - (404,000)
Interest payments on long-term debt (63,590) - - (63,590)
Net Cash Flows from Noncapital Financing Activities (467,590) - - (467,590)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Capital expenditures for utility plant (3,042,889) (2,339,061) - (5,381,950)
Cost of disposal of property net of salvage (126,363) 345 - (126,018)
Capital contributions, connection and facility fees 731,961 1,073,520 - 1,805,481
Special assessments receipts - 687,698 - 687,698
Special tax receipts - - - -
Principal payments on long-term debt (10,191) (2,413,869) - (2,424,060)
Interest payments on long-term debt 119,006 (732,406) - (613,400)
Cash Flows From Capital and Related Financing Activities (2,328,476) (3,723,773) - (6,052,249)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest income received 181,261 295,975 - 477,236
Cash Flows from Investing Activities 181,261 295,975 - 477,236
Net Change in Cash and Cash Equivalents 4,010,030 117,952 - 4,127,982
CASH AND CASH EQUIVALENTS – Beginning of Year 15,439,826 7,485,574 - 22,925,400
CASH AND CASH EQUIVALENTS – END OF YEAR 19,449,856$ 7,603,526$ -$ 27,053,382$
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
SUPPLEMENTARY INFORMATION
Page 55
For the Year Ended December 31, 2017
Electric Operations Water Operations Eliminations Total
RECONCILIATION OF OPERATING INCOME TO NET CASH
FLOWS FROM OPERATING ACTIVITIES
Operating income 2,974,132$ (340,910)$ -$ 2,633,222$
Noncash items included in operating income
Depreciation and amortization 2,624,534 3,907,106 - 6,531,640
Depreciation charged to other accounts 194,032 150,010 - 344,042
Intercompany Transfer 307,420 (307,420) -
Pension expense - GASB 68 1,361,766 907,845 2,269,611
Deferred Pension Contributions - GASB 68 (741,492) (494,328) (1,235,820)
OPEB 238,410 158,940 397,350
Accounts receivable and unbilled revenues (115,912) (476,436) - (592,348)
Materials and supplies (40,037) 19,122 - (20,915)
Prepaid expenses and other current assets (131,509) (42,418) - (173,927)
Accounts payable (152,512) (8,257) - (160,769)
Customer deposits 16,927 3,100 - 20,027
Other current liabilities 89,076 69,396 - 158,472
NET CASH FLOWS FROM OPERATING ACTIVITIES 6,624,835$ 3,545,750$ -$ 10,170,585$
RECONCILIATION OF CASH AND CASH EQUIVALENTS
TO THE BALANCE SHEET
Operating 6,411,215$ 2,049,356$ -$ 8,460,571$
Designated 11,087,233 2,623,136 - 13,710,369
Restricted bond funds - current 1,902,490 2,928,505 - 4,830,995
Restricted bond funds - non-current - 1,818,513 - 1,818,513
Total Cash and Investments 19,400,938 9,419,510 - 28,820,448
Less: Long-term investments - (1,698,880) - (1,698,880)
Mark to market adjustment 48,918 (117,104) - (68,186)
TOTAL CASH AND CASH EQUIVALENTS 19,449,856$ 7,603,526$ -$ 27,053,382$