HomeMy WebLinkAbout3TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2016 and 2015
NOTE 6 —UNEARNED REVENUES
Transactions that have not yet met revenue recognition requirements are recorded as anon -current liability
and reflected in the accompanying Statement of Net Position. As of December 31, 2016 and 2015,
unearned revenues consist of unearned development agreement deposits, connection fees, and other
deposits.
Unearned revenues consisted of the following at December 31, 2016 and 2015:
January 1,
2016
Development agreement deposits 2,1565844
Connection fees and other deposits 15069,865
Totals $ 3,2261709
January 1,
2015
Development agreement deposits 11843,013
Connection fees and other deposits 943,750
Totals $ 21786,763
Additions
644,922
987,610
$ 11632,532
Additions
7389336
1,085,304
$ 11823,640
NOTE 7 — DONNER LAKE WATER COMPANY ACQUISITION
Reductions
(564,436)
(11221,299)
$ (11785,734)
Reductions
(424, 505)
(959,189)
$ (13383,694)
December 31,
2016
2,237,331
836,177
$ 31073,507
December 31,
2015
2,156, 844
1, 069, 865
$ 3,226,709
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 is fully funded as of December 31, 2016.
As of December 31, 2016 and 2015, the assessment receivable from the property owners was $3,692,876
and $4,363,790 respectively, of which $714,622 and $694,710 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.
The accompanying notes are an integral part of these consolidated financial statements.
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TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2016 and 2015
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 — CaIPERS 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 June 30, 2016, are summarized as follows:
Miscellaneous
Prior to On or after
Hire Date January 1, 2013 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 11,008% 6.555%
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
Benefit Formula
2016 Employer Contributions
2015 Employer Contributions
Miscellaneous
Prior to
January 1,
2013
2.7% 6S7 55
$979,835
$917,113
On or after
January 1
, 2013
2% @ 62
$69, 062
$33, 034
The accompanying notes are an integral part of these consolidated financial statements.
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TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2016 and 2015
NOTE 8 —EMPLOYEE BENEFIT PLANS (Continued)
B. PENSION LIABILITIES, PENSION EXPENSES AND DEFERRED OUTFLOWS/INFLOWS OF
RESOURCES RELATED TO PENSIONS
As of December 31, 2016, the District reported net pension liabilities for its proportionate shares of the net
pension liability as follows:
Proportionate Share of Net Pension Liability
Fiscal Year Ending
June 30, 2016 June 30, 2015
$10,250,329
$8, 013,400
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, 2016, and the total pension liability used to calculate
the net pension liability was determined by an actuarial valuation as of June 30, 2015 rolled forward to
June 30, 2016 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, 2016
and June 30, 2015 is as follows:
Percentage Share of Risk Pool
Measurement Date June 30, 2016 June 30, 2015 Change
Percentage of Plan NPL 0.29837%
0.29209%
0.00628%
For the years ended December 31, 2016 and 2015 the District recognized pension expense of $1,220,591
and $535,372 respectively. At December 31, 2016 the District reported deferred outflows of resources and
deferred inflows of resources related to pensions from the following sources:
Deferred Outflows of Deferred Inflows of
Resources Resources
Pension contributions subsequent to measurement date $773,689
Differences between actual and expected experience 39,148 (81286)
Changes in assumptions (370,377)
Change in employers proportion and differences between
the employers contributions and the employers 239,834 (41,400)
proportionate share of contributions
Net differences between projected and actual earnings 2,9527379 (11177,063)
on plan imestments
Total $4, 005, 050 ($13597,126)
The accompanying notes are an integral part of these consolidated financial statements.
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TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2016 and 2015
NOTE 8 —EMPLOYEE BENEFIT PLANS (Continued)
B. PENSION LIABILITIES, PENSION EXPENSES AND DEFERRED OUTFLOWS/INFLOWS OF
RESOURCES RELATED TO PENSIONS (Continued)
$773,689 reported as deferred outflows of resources related to contributions subsequent to the
measurement date will be recognized as a reduction of the net pension liability in the year ended December
31, 2016. Other amounts reported as deferred outflows of resources and deferred inflows of resources
related to pensions will be recognized as pension expense as follows:
Year Ended
December 31 Amount
2017 $158,022
2018 $191,462
2019 $823,549
2020 $461,202
$1,634,235
Actuarial Assumptions —The total pension liabilities in the June 30, 2016 actuarial valuations were
determined using the following actuarial assumptions:
Miscellaneous
Valuation Date June 30, 2015
Measurement Date June 30, 2016
Actuarial Cost Method Entry -Age Normal Cost Method
Actuarial Assumptions: .
Discount Rate 7.65%
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
(1) The mortality table used was developed based on CaIPERS' 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, 2016 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 CaIPERS website.
The accompanying notes are an integral part of these consolidated financial statements.
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TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2016 and 2015
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, 2016
was 7.65%. To determine whether the municipal bond rate should be used in the calculation of a discount
rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would
be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run
out of assets. Therefore, the current 7.65% discount rate used is adequate and the use of the municipal
bond rate calculation is not necessary. The long term expected discount rate of 7.65% 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 abuilding-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, CaIPERS 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 CaIPERS' Board effective on
July 1, 2015,
Asset Class
New Strategic Real Return Real Returns
Allocation
Years 1-10 (a) 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%
Pri\rate Equity 10.0% 6.83% 6.95%
Real Estate 10.0% 4.50% 5.13%
Infrastructure and Forestland 2.0% 4.50% 5.09%
Liquidity 1.0% -0.55% -1.05%
100.0%
The accompanying notes are an integral part of these consolidated financial statements.
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TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2016 and 2015
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:
Miscellaneous
Measurement Date June 30,2016
1%Decrease 6.65%
Net Pension Liability $15,9691742
Current Discount Rate 7.65%
Net Pension Liability $10,250,329
1%Increase 8.65%
Net Pension Liability $5,523,516
Pension Plan Fiduciary Net Position —Detailed information about each pension plan's fiduciary net
position is available in the separately issued CaIPERS 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 2016 and 2015,
the total match was $88,494 and $53,605 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.
The accompanying notes are an integral part of these consolidated financial statements.
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TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2016 and 2015
NOTE 8 —EMPLOYEE BENEFIT PLANS (Continued)
E. OTHER POST EMPLOYMENT BENEFITS (OPEB)
The District administers asingle-employer defined benefit healthcare plan (The Retiree Health Plan).
Contribution requirements and benefit provisions are established through collective bargaining agreements
and may be amended only through negotiations between the District and the Union. The plan provides
health insurance contributions for eligible retirees and their spouses through the District's group health
insurance plan, which covers both active and retired members. Health insurance includes medical
insurance, dental insurance, and prescriptions. The Retiree Health Plan does not issue a publicly available
financial report.
Post employment health care is available to all employees, and qualified dependents, that retire from the
District with at least 10 years of service. As of June 30, 2015, there were fifty participants including
dependents. The monthly amount paid by the District is capped at $475 for each participant or $375 for
each participant eligible for Medicare. For participants with less than 20 years of service, the benefit is
reduced by 5% for each year. Expenditures for post employment health care benefits are recognized when
premiums are paid.
On November 7, 2007, the Board approved a participation agreement with CaIPERS to be the plan
administrator for the District's other post employment benefit (OPEB) trust. The participation agreement
was submitted to CalPERS on November 8, 2007, and became effective on January 15, 2008. At that time,
accumulated deposits from the prior year, plus accrued interest, were transferred to the California
Employers' Retiree Benefit Trust Program (CERBT).
The funds of the Retiree Health Plan are invested in CERBT, which is a tax qualified trust organized under
Internal Revenue Code (IRC) Section 115. Participation in the trust is limited to those agencies who qualify
as "government" entities under that IRC section. The CERBT is an irrevocable trust established for the
purpose of receiving employer contributions to prefund health and other postemployment benefits for
retirees and their beneficiaries. The CERBT administrative costs are financed through investment earnings.
Copies of the CalPERS' comprehensive annual financial report, that includes CERBT investment
performance, may be obtained from:
California Public Employees' Retirement System
400 Q Street
P.O. Box 942701
Sacramento, CA 94229-2701
Tel. 888-225-7377
http://www.calpers.ca.gov
The District's annual OPEB expense is calculated based on the ARC, an amount actuarially determined in
accordance within the parameters of GASB Statement No. 45. The ARC represents a level of funding that,
if paid on an ongoing basis, is projected to cover the normal cost each year. The plan's unfunded actuarial
accrued liability prior to June 30, 2015 is being amortized as a level percentage of projected payrolls on an
open basis, over a period not to exceed 30 years, using the entry age normal cost method. The June 30,
2015 unfunded actuarial accrued liability is being amortized as a level percentage of projected payroll on
an open basis, over a 20 year period, using the actuarial cost method.
The District's actual annual OPEB contribution is recognized as 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:
The accompanying notes are an integral part of these consolidated financial statements.
Page 40
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2016 and 2015
NOTE 8 —EMPLOYEE BENEFIT PLANS (Continued)
E. OTHER POST EMPLOYMENT BENEFITS (OPEB) (Continued)
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
06/30/2013
$ 267,800
$ 628
$
268,428
$
304,556
113.5%
$ (36,128)
$ (81205)
$ (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
$ (451031)
$ 328,791
06/30/2016
$ 665,667
$
$
665,667
$
275,240
41.3%
$390,427
$ 328,791
$ 719,217
Actuarial valuations of an ongoing plan are required at least once every two years and involve estimates
for the value of reported amounts and assumptions about the probability of occurrence of events far into
the future. Examples include assumptions about future employment, mortality, and the healthcare cost
trend. Amounts determined regarding the funded status of the plan and annual required contributions of the
employer are subject to continual revision as actual results are compared with past expectations and new
estimates are made about the future.
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as
understood by the employer and plan members) and include the types of benefits provided at the time of
each valuation and historical pattern of sharing benefit costs between the employer and plan members to
that point. The methods and assumptions used include techniques that are designed to reduce short-term
volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term
perspective of calculations.
Significant actuarial assumptions for years prior to June 30, 2015 include:
Actuarial Cost Method
Asset Valuation Method
Discount Rate
General Inflation
Amortization of Unfunded Liability
Projected Unit Credit
Significant actuarial assumptions after June 30, 2015 include:
Actuarial Cost Method
Asset Valuation Method
Discount Rate
General Inflation
Amortization of Unfunded Liability
Entry Age Normal
The accompanying notes are an integral part of these consolidated financial statements.
Page 41
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2016 and 2015
NOTE 8 —EMPLOYEE BENEFIT PLANS (Continued)
E. OTHER POST EMPLOYMENT BENEFITS (OPEB) (Continued)
The following is a funding schedule for the Retiree Health Plan:
Schedule of Retiree Health Plan Funding Progress
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 $ 21501,800 $ 645,700 $ 11856,100 25.8% $ 61307,400 29.4%
07/01/2011 $ 21657,000 $ 661,400 $ 11995,600 24.9% $ 61226,000 32.1%
07/01 /2013 $ 2,960,600 $ 11079,900 $ 11880,700 36.5% $ 6,409, 000 29.3%
07/01 /2015 $ 61755,593 $ 11579,982 $ 51175,611 23.4% $ 61360,511 81.4%
*Valuations are required once ew;ry two years. In 2011, the vaulation
date changed to July 1 in compliance with GASB Statement No. 57.
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 aself-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 District also
issued special tax bonds secured by tax revenues from Mello -Roos Community Facilities Districts. Each
project has an external requirement to be reported separately, and investors in the revenue bonds and
special tax bonds rely solely on the revenue generated by the individual projects for repayment. Summary
financial information for each project is presented on the following pages for the years ending December
311 2016 and 2015.
The accompanying notes are an integral part of these consolidated financial statements.
Page 42
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2016 and 2015
NOTE 10 —SEGMENT DISCLOSURE (Continued)
STATEMENT OF NET POSITION
ASSETS AND DEFERRED OUTFLOWS OF RESOURCES
Current assets
Non -current assets:
Capital assets, net
Restricted assets
Other long term assets
Total Noncurrent Assets
Deferred outflows of resources
Pension
Unamortized loss on refunding
Unamortized redemption premium
Total Deferred Outflows of Resources
December 31, 2016
EI a ctri c
$ 19,438,054
47,660,186
9251520
48, 585, 706
214031030
1491934
2,552,964
Water
$ 91475,927
75, 942,145
11876,032
316921876
811511,053
1, 602, 020
91580
2, 211, 600
TOTAL ASSETS AND DEFERRED OUTFLOWS $ 70,576,724 $ 93,198,580
OF RESOURCES
LIABILITIES, DEFERRED INFLOWS OF RESOURCES
AND NET POSITION
LIABILITIES
Current liabilities
Non -current Liabilities
Long-term debt, net of current portion
Net pension liability
OPEB liability
Unearned revenues
Total Noncurrent Liabilities
Total Liabilities
Deferred inflows of resources
Pension
Total Deferred Inflows of Resources
Net Position
Net investment in capital assets
Restricted for debt service
Unrestricted
Total Net Position
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND NET POSITION
$ 4,312,570
4, 398, 403
6,150,197
431,530
21587,458
13, 567, 588
17, 880,158
958,276
958,276
42,500,995
1, 316, 355
71920,940
51, 738, 290
$ 2, 949, 891
23, 244, 323
4,100,132
2871687
4861049
28,118,191
31,068,082
638850
638, 850
50,920,550
4, 695,114
518752984
61 A91,648
$ 70,576,724 $ 93,198, 580
The accompanying notes are an integral part of these consolidated financial statements.
Page 43
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2016 and 2015
NOTE 10 -SEGMENT DISCLOSURE (Continued)
STATEMENT OF NET POSITION (CONTINUED
ASSETS AND DEFERRED
OUTFLOWS OF RESOURCES
Current assets
Non -current assets:
Capital assets, net
Restricted assets
Other long-term assets
Total Noncurrent Assets
Deferred outflows of resources
Pension
Unamortized loss on refunding
Total Deferred Outflows of Resources
TOTAL ASSETS AND DEFERRED OUTFLOWS
OF RESOURCES
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND NET POSITION
LIABILITIES
Current liabilities
Non -current Liabilities
Long-term debt, net of current portion
Net pension liability
Unearned revenues
Total Noncurrent Liabilities
Total Liabilities
Deferred inflows of resources
Pension
Total Deferred Inflows of Resources
Net Position
Net investment in capital assets
Restricted for debt service
Unrestricted
Total Net Position
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND NET POSITION
December 31, 2015
Electric
$ 16,
871, 099
47,
078, 580
997,853
48,
076,433
11579,246
11579,246
Water
$ 11, 359, 701
75, 338, 088
11900,036
41363,790
811601,914
1,052,831
642,382
11695,213
$ 66, 526, 778 $ 94, 656, 828
$ 4,388,630
4, 996, 594
4, 8081 040
2, 85,854
121 390, 488
16, 779,118
1, 405, 042
1,405,042
40, 828, 835
944, 929
6, 568, 854
342618
48, ,
$ 2, 912,146
25, 587,176
3, 205, 360
640,855
29, 433, 391
32, 345, 537
936, 695
936, 695
47, 786, 674
4, 817,195
70,727
374596
8, 7
$ 66, 526, 778 $ 94, 656, 828
The accompanying notes are an integral part of these consolidated financial statements.
Page 44
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES I FINANCIAL STATEMENTS
December 31, 2016 and 2015
NOTE 10 —SEGMENT DISCLOSURE (Continued)
STATEMENTS OF REVENUE, EXPENSES, AND CHANGES IN NET POSITION
Operating Revenues
Sales to consumers
Other operating revenues
Operating expenses
Depreciation
Non -operating revenues (expenses)
Income (loss) before
capital contributions
Capital contributions, net
CHANGE IN NET POSITION
Net Position, Beginning
NET POSITION, ENDING
Operating Revenues
Sales to consumers
Other operating revenues
Operating expenses
Depreciation
Non -operating revenues (expenses)
Income (loss) before
capital contributions
Capital contributions, net
CHANGE IN NET POSITION
Net Position, Beginning
NET POSITION, ENDING
Year ended December 313 2016
Electric
$ 21,713,614
31357,601
(20,222,867)
(2,576,192)
12,076
2,284,232
1,111,440
31395,672
Water
$ 11,312,973
749,177
(81171, 428)
(31660,841)
(700,499)
(470, 618)
5873670
117,052
48,342,618 61,374,596
$ 51,738,290 $ 61,491,648
Year ended December 31, 2015
Electric
$ 20,505,263
3,156, 585
18, 944, 380
21375,757
106,127
2,447,838
1, 058, 835
31506,673
835945
Water
$ 10,313,593
475,484
71461, 394
31584,763
(868, 838)
(1,125, 918)
371, 675
(754, 243)
62,128, 839
$ 48,3421618 $ 611374,596
The accompanying notes are an integral part of these consolidated financial statements.
Page 45
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES I FINANCIAL STATEMENTS
December 31, 2016 and 2015
NOTE 10 —SEGMENT DISCLOSURE (Continued)
STATEMENTS OF CASH FLOWS
NET CASH PROVIDED BY (USED IN)
Operating activities
Noncapital financing activities
Capital and related financing activities
Investing activities
Net increase (decrease) in cash and
cash equivalents
Cash and Cash Equivalents, Beginning
CASH AND CASH
EQUIVALENTS, ENDING
NET CASH PROVIDED BY (USED IN)
Operating activities
Noncapital financing activities
Capital and related financing activities
Investing activities
Net increase (decrease) in cash and
cash equivalents
Cash and Cash Equivalents, Beginning
CASH AND CASH
EQUIVALENTS, ENDING
Year ended December 313 2016
Electric
$ 5,549,180
(921,171)
(21233, 583)
114,807
2,509,233
930,593
Water
$ 3,719,688
(6,189, 302)
2921186
(2,177,428)
9.6 33,002
$ 15,439,826 $ 7,485,574
Year ended December 31, 2015
EI a ctri c
$ 5,230,727
(894,725)
(4,820,206)
89, 048
(395,156)
13,325,749
Water
$ 3, 052, 344
(6,781, 907)
324,675
(3,404, 888)
13, 067, 890
$ 12, 930, 593 $ 9, 663, 002
The accompanying notes are an integral part of these consolidated financial statements.
Page 46
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2016 and 2015
NOTE 11 — MARTIS VALLEY GROUNDWATER STUDY
The Martis Valley aquifer underlies about 35,000 acres in both Placer and Nevada counties, near the
Town of Truckee. It is the main water supply for numerous public and private entities. This area has
seen significant growth in the last few decades with more planned for the future. Maintaining an
adequate water supply and protecting water quality are critical for the region's future.
The Truckee Donner Public Utility District (TDPUD), Northstar Community Services District (NCSD)
and Placer County Water Agency (PCWA) are the three primary public water agencies in the Martis
Valley Basin. Together, the TDPUD, NCSD and PCWA (Partnership Agencies) partnered to update a
groundwater management plan and to help develop a groundwater model for the Martis Valley basin.
The Martis Valley Groundwater Management Plan (GMP) has been updated to reflect current water
resources planning in the region and to incorporate the latest information and understanding of the
underlying groundwater basin. This collaborative effort will provide the guidance necessary to align
groundwater policy. In addition to the updated groundwater management plan, a computer model of
the groundwater basin is being developed, which will incorporate available data and enhance
understanding of the groundwater basin. A climate change modeling component will be part of the final
groundwater model.
Partner agencies each adopted the Groundwater Management Plan (GMP) in February 2012 and the
model and associated report was completed in 2015. The total cost of the project was approximately
$1,000,000, which includes federal funding of approximately $500,000 from the U.S. Bureau of
Reclamation and $250,000 from the Lawrence Livermore National Laboratory; and contributions of
$150,000 from TDPUD and $100,000 from the other members of the Partnership Agencies.
In mid 2016, the California Sustainable Groundwater Management Act of 2014 (SGMA) took effect
which the District was the submitting agency of an alternate submittal in December on behalf of the
Town, Placer County, Nevada County, PCWA, and Northstar CSD - to comply with the new regulations.
There was an adopted MOA amongst the six local agencies.
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.
The accompanying notes are an integral part of these consolidated financial statements.
Page 47
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