HomeMy WebLinkAbout4 Annual Report and Financial StatementsFINANCE BUSINESS ITEM
To: Board of Directors
From: Regina Wise
Date. July 19, 2017
Subject: Consideration of Accepting the Annual Report and Financial
Statements
1. WHY THIS MATTER IS BEFORE THE BOARD
Approval of the annual disclosure report and audited financial statements is solely
within the purview of the Financing Corporation Board,
2. HISTORY
The Financing Corporation Board reviews and approves the annual disclosure report.
Also, provided is a copy of the most recent audited financial statements of the
Truckee Donner Public Utility District.
The annual disclosure report is prepared according to the requirements of the
continuing disclosure statements for the refunded 2015 Certificates of Participation
(2015 COP) .
3. NEW INFORMATION
Attached are the following reports:
• Certificates of Participation (Water System Improvements) Series 2015 -
Refunded Portion Annual Report as of December 31, 2016 (Attachment 1)
• Truckee Donner Public Utility District annual audited financial statements as of
December 31, 2016 (Attachment 2)
4. FISCAL IMPACT
There is no fiscal impact associated with this action.
5. RECOMMENDATION
Approve the annual disclosure report and audited financial statements for the 2006
and 2015 Certificate of Participation (COP's) continuing disclosure requirements.
Regina Wise
Treasurer
Michael D. Holley
Secretary
Attachment 1
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
CERTIFICATES OF PARTICIPATION
(WATER SYSTEM IMPROVEMENT PROJECTS)
SERIES 2015 -REFUNDED PORTION
ANNUAL REPORT 12/31/2016
CONTINUING DISCLOSURE CERTIFICATE: 4. Content of Annual Reports
(a) The audited financial statements were electronically forwarded to
Bank of New York on 06/15/20170
(b) The principal amount of refunded Certificates outstanding was $131495,000
as of December 31, 2016.
(c) The Reserve is no longer required due to the 2015 refunding.
(d) Updated tables from "THE WATER SYSTEM OF THE DISTRICT"
IN THE Official Statement are attached:
(i) "TRUCKEE DONNER PUBLIC UTILITY DISTRICT -
Historic Water Production and Accounts" on page 30
in the 2015 Refunding of the Official Statement.
(ii) "TRUCKEE DONNER PUBLIC UTILITY DISTRICT -
Historic Sales Revenue" on page 30
in the 2015 Refunding of the Official Statement.
(iii) "TRUCKEE DONNER PUBLIC UTILITY DISTRICT -
Largest Customers" on page 32
in the 2015 Refunding of the Official Statement.
(iv) "TRUCKEE DONNER PUBLIC UTILITY DISTRICT -
Historic Operating Results of Debt Service Coverage" on page 42
in the 2015 Refunding of the Official Statement.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
Historic Water Production and Accounts
Total
Production
(Million %Increasel Commercial
Year Gallons) (Decrease) Accounts
2001 13736 481
2002 25198 26.61 % 548
2003 25208 0.45% 563
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2424
,
21206
2,371
2,433
2,304
2,056
1,786
1,727
1,857
1846
1,682
1,381
1,460
9.78%
-8.99%
7.48%
2.61%
-5.30%
-10.76%
-13.13%
-3.31%
7.53%
-0.58%
-8.88%
-17.90%
5.69%
582
605
646
641
656
670
695
709
706
706
699
704
%Increase/
(Decrease)
13.93%
2.74%
3.37%
3.95%
6.78%
-0.77%
2.34%
2.13%
3.73%
2.01 %
-0.12%
0.00%
-0.99%
0.72%
0.28%
Residential
Accounts
8,130
10,268
10,491
10,739
11,146
11,436
11,801
11,843
11,900
11,876
11,711
11,753
11,809
11,915
12,012
12,121
hncrease/
(Decrease)
26.30%
2.17%
2.36%
3.79%
2.60%
3.19%
0.36%
0.48%
0%
9%
0.36%
0.48%
0.90%
0.81%
0.91%
TRUCKEE DONNER PUBLIC UTIETIY DISTRICT
Historic Water Sales Revenues
Increase/ % bncrease/
Year Residential (Decrease) Commercial (Decrease)
2001 $319445222 $4763195
2002 550133242 27010% 6479822 36004%
2003 557685092 15006% 678,423 4.72%
2004 632543756 8044% 8255109 21062%
2005 6095311 5667% 8445812 2239%
2006 75160,485 8634% 9911941 17042%
2007 758755829 9599% 151651511 17450%
2008 854595823 T42% 151795157 1917%
2009 835771396 1039% 1,1375447 -3.54%
2010 859733220 4061% 151843084 4610%
2011 857315670 -2.69% 152273533 3067%
2012 8,4921037 -2.74% 153745376 11096%
2013 855085607 0920% 133381298 -2.63%
2014 857425143 2674% 11328,800 471%
2015 9101405 3012% 19230,259 -7642%
2016 9,7831533 8653% 15407,446 14440%
TRUCKEE DONNER PUBLIC UTILTIY DISTRICT
Largest Water Customers - Fiscal Year 2016
Customer• Water Usage tjl Annual Payments
TAHOE MOUNTAIN CLUB (Old Greenwood & Grays Grossing Golf Courses) 150,952,087 $146,246
COYOTE MOON GOLF COURSE 66,2229946 443755
TAHOE DONNER ASSOCIATION 31,24%501 125,542
TRUCKEE DONNER RECREATION AND PARK DISTRICT 21,0851773 51,810
TAHOE TRUCKEE UNIFIED SCHOOL DISTRICT 17,618,712 44,750
VILLAGE GREEN MOBILE HOME PARK 1354733370 30,079
TAHOE FOREST HOSPITAL 12,900,913 445296
BOB GALES (Coachland Mobile Home Park) 101661,000 23,731
DONNER CREEK MOBILE HOME PARK 71700,514 14,462
OREGON INVESTORS (Truckee Pines Apartments) 611722879 301264
TOP TEN TOTAL 338,037,695 $555,935
TOTAL SYSTEM 1,459,583,258 $10,313,592.78
23.16% 5.39%
��� Gallons
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
Historic Water Operating Results & Debt Service Coverage
Fiscal Year Ending December 31
Revenues 2013 2014 2015 2016
Sales to Customers $958703531 $10J02,819 $10,313,593 $111312,973
Standby Fees 1573440 1509390 145,840 1383480
Investment Income (1) 10,506 87,312 855741 702573
Facilites Fees (2) 264,199 4172873 3863647 5953761
Connection Fees (2)(3) 90,856 1661328 1393771 1803226
Meter Surcharge 7033982 0 0 0
Other (4) 3289553 403,847 3295644 610,697
Total Revenues $11,4263067 $111328,570 $112401,236 $1239087710
Operating &Maintenance Expenses
Operations and Maintenance $4,802,929 $4,508,867 $4,422,049 $4,484,787
Administration and General 158293741 231143506 21088,100 212542537
Customer Services 73005 8133864 7255096 656,181
Pension Expense - GASB 68 0 0 2263149 4883236
OPEB Expense 0 0 0 287,687
Total Operations & Maintenance Expenses $77363,275 $734373237 $7,4615394 $89171,428
Net Revenues $4,062,792 $3,891,333 $3,939,842 $4,737,282
Parity Debt Service (5)
2006 Installmem, urchase Agreement $138959089 $1,898,889 1,812,849 1,768,638
DWR Proposition 55 Loan $306,481 $306,481 $306,481 $306,481
Interest on Parity Debt Service Reserve Funds (65130) (5,283) (5)485) (23904)
Total Parity Debt Service $2,195,440 $23200,087 $23113,845 $2,0723215
Parity Debt Service Coverage 1.85 1.77 1.86 2.29
Net Revenues Remaining for Subordinate Debt $1,867,352 $1,691,246 $1,825,997 $2,665,067
Service
Subordinate Debt Service (5)(6) $316,944 $316,944 $316,944 $316,944
Parity and Subordinate Debt Service Coverage (7) 1962 I.55 1.62 1998
Balance Available for Capital Projects or Other $11550,408 $1,374,302 $125093053 $2,3489123
Purposes
NOTES
(1) Excludes interest component of Donner Lake Assessment and interest on parity debt service reserve funds.
(2) Appears as contributed capital in the Financial Statement of the District.
(3) Historically, connection fees were recognized in the year in which the connection to the Water System was
effected rather than the year in which the connection fee was allocated.
(4) Includes interdepartmental sales.
(5) Debt service presented on an accrual basis.
(6) Represents payments on Capital Leases. The DWR Loan, which is secured by , and has historically been paid
entirely from, the Donner Lake Assessments, is excluded form subordinate debt service.
(7) Subordinate Debt Service, Parity and Subordinate Debt Service Coverage, and Balance Available for Capital
Projects have been amended for 2006.
Attachment 2
TRUCKEE DONNER
PUBLIC UTILITY DISTRICT
PRIMARY GOVERNMENT ONLY
Including Report of Independent Auditors
December 31, 2016 and 2015
TABLE OF CONTENTS
Reportof Independent Auditors................................................................................................1
Management's Discussion and Analysis......................................................................................4
FinancialStatements....................................................................................... ........................9
Consolidated Statements of Net Position........................................................................10
Consolidated Statements of Revenues, Expenses and Changes in Net Position.....................13
Consolidated Statements of Cash Flows.........................................................................14
Notes to Financial Statements.................................................................................................16
Required Supplementary Information.......................................................................................48
Cost Sharing Defined Benefit Pension Plans...................................................................49
Position of Post Employment Benefit Plans.....................................................................51
Supplementary Information.....................................................................................................52
Consolidating Statement of Net Position.........................................................................53
Consolidating Statement of Revenues, Expenses and Changes in Net Position .......................55
Consolidating Statement of Cash Flows.,, I., "I'll" "I "I "I "I "1 1*1 led 014 me, d19 414 led "I I'll, "I ''I "I "I'll, 56
WWW.MOSSADAMS.COM
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 Trucl{ee Donner Public Utility
District (the "District"), which comprise the consolidated statements of net position as of December 31,
2016 and 2015, and the related consolidated statements of revenues, expenses and changes in net
position, and cash flows for the years then ended, and the related notes to the consolidated financial
statements.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated financial
statements in accordance with accounting principles generally accepted in the United States of America;
this includes the design, implementation, and maintenance of internal control relevant to the
preparation and fair presentation of consolidated financial statements that are free from material
misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our
audits. We conducted our audits in accordance with aung standards generally accepted in the United
States of America. Those standards require that we plan and perform the audits to obtain reasonable
assurance about whether the consolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the consolidated financial statements. The procedures selected depend on the auditor's judgment,
including the assessment of the risks of material misstatement of the consolidated financial statements,
whether due to fraud or error. In making those risk assessments, the auditor considers internal control
relevant to the entity's preparation and fair presentation of the consolidated financial statements in
order to design audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no
such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of significant accounting estimates made by management, as well as evaluating the
overall presentation of the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion.
Praxity•:
MEMAfR •'
GLOBAL ALLIANCE OF
INOEPENOENT FIRMS
REPORT OF INDEPENDENT AUDITORS (continued)
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, 2016 and
2015, 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, 2016 and 2015, 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 2016 and 2015 statements dated June 7, 2017.
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
consolidated financial statements. Such information, although not a part of the consolidated financial
statements, is required by the Governmental Accounting Standards Board who considers it to be an
essential part of financial reporting for placing the consolidated financial statements in an appropriate
operational, economic, or historical context We have applied certain limited procedures in the required
supplementary information in accordance with auditing standards generally accepted in the United
States of America, which consisted of inquiries of management about the methods of preparing the
information and comparing the information for consistency with management's responses to our
inquiries, the consolidated financial statements, and other knowledge we obtained during our audit of
the consolidated financial statements. We do not express an opinion or provide any assurance on the
information because the limited procedures do not provide us with sufficient evidence to express an
opinion or provide any assurance.
REPORT OF INDEPENDENT AUDITORS (continued)
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, 2016 are presented for purposes of additional analysis and are not a
required part of the 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 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 consolidated financial statements and certain other
procedures, including comparing and reconciling such information directly to the underlying accounting
and other records used to prepare the consolidated financial statements or to the 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 consolidated financial statements as a whole.
Portland, Oregon
June 7, 2017
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2016 and 2015
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, 2016 and 2015. 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 herein 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 $0.7 million (2.4%)from $28.2 million at December 31, 2015 to $28.9
million at December 31, 2016, predominantly due to higher than anticipated revenues for the Electric Utility.
The District's total net position increased $3.5 million (3.1%) from $109.7 million at December 31, 2015, to
$113.2 million at December 31, 2016. The increase was primarily due to a $3.4 million increase for the
Electric Utility.
Operating revenues increased $2.6 million (8.0%) from $33.0 million in 2015 to $35.6 million in 2016.
Electric revenues increased only 6.0% in 2015 as the District experienced higher energy consumption
related to an extreme winter resulting in high tourist visitation. Water revenues increased 11.8%; there was
a 6% rate increase in 2016 in addition to changes in the state mandated drought regulations.
Operating expenses of the District increased $2.2 million (6.6%)from $30.9 million in 2015 to $33.1 million
in 2016. Electric expense increased 6.9% and Water expense increased 7.1%primarily attributed to $1.4
million in additional expense for Pension and Other Post -Employee Benefits required to comply with GASB
68 and updated requirements for GASB 45.
Compared to 2015, the overall non -operating revenues remained nearly flat at $0.4 million in 2016 and
2015 respectfully. Non -operating expenses decreased $0.1 million from $1.1 million in 2015 to $1.0 million
in 2016.
In October 2016, the District had two bond refundings (refinance). For the Water Utility the remaining portion
of the 2006 COP was refunded providing the District with a net present value savings of just under $222,000
over the term of the bond. For the Electric Utility the Pension Sidefund Obligation Bond was refunded,
providing the District with a net present value savings of $164,000 over the term of the bond (See Note 5).
No other new debt was issued in 2016.
OVERVIEW OF THE FINANCIAL STATEMENTS
This report includes Management's Discussion and Analysis, the Independent Auditors' Report, the Basic
Financial Statements, (which includes the notes to the financial statements), Required Supplementary
Information and additional Supplementary Information.
See accompanying auditors' report.
Page 4
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2016 and 2015
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 Statements of Net Position presents information on all of the District's assets and
liabilities, and provides information about the nature and amounts of investments in resources (assets) and
the obligations to District creditors (liabilities). It also provides the basis for computing rate of return,
evaluating the capital structure of the District, and assessing the liquidity and financial flexibility of the
District.
All of the current year's revenues and expenses are reported in the Consolidated Statements of
Revenues, Expenses, and Changes in Net Position. This statement provides a measurement of the
District's operations over the past year and can be used to determine whether the District has successfully
recovered all its costs through its rates and other charges.
The Consolidated Statements of Cash Flows provides relevant information about the District's cash
receipts and cash payments during the reporting period. This statement reports cash receipts and cash
payments resulting from operating, non -capital financing, capital and related financing, and investing
activities. When used with related disclosures and information in the other financial statements, the
statement of cash flows should provide insight into (a) the District's ability to generate future net cash flows,
(b) the District's ability to meet its obligations as they come due, (c) the District's needs for external
financing, (d) the reasons for differences between operating income and associated cash receipts and
payments, and (e) the effects on the District's financial position of both its cash and its non -cash investing,
capital, and financing transactions during the period. The changes in cash balances are an important
indicator of the District's liquidity and financial condition.
The Notes to the Financial Statements provide additional information that is essential to a full
understanding of the data provided in the basic financial statements. This includes but is not limited to,
significant accounting policies, significant financial statement balances and activities, material risks,
commitments and obligations, and subsequent events, as applicable.
See accompanying auditors' report.
Page 5
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2016 and 2015
DISTRICT HIGHLIGHTS
The condensed financial statements at December 31, 2016, 2015, and 2014 are presented below.
CONSOLIDATED STATEMENT OF NET POSITION
ASSETS AND DEFERRED
OUTFLOWS OF RESOURCES 2016
Current assets
Non -current assets:
Capital assets, net
Restricted assets
Other long-term assets
Total Assets
Deferred outflows of resources
TOTAL ASSETS AND
DEFERRED OUTFLOWS OF RESOURCES
$ 28,913,981
2015
$ 281230, 800
Increase
(Decrease)
2014 2016 - 2015
$ 31,598,559
123, 602, 331
122, 416, 668
119, 322, 462
13876,032
1, 900, 036
1, 9371917
45618,396
5,3611643
6,0721406
159, 010, 740
157, 909,147
158, 931, 344
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND NET POSITION
Current liabilities
Non -current Liabilities
Long-term debt, net of current portion
Net pension liability
OPEB liability
Unearned reeenues
Total Liabilities
Deferred inflows of resources
NET POSITION
Net investment in capital assets
Restricted for debt ser\ice
Unrestricted
Total Net Position
TOTAL LIABILITIES, DEFERRED
INFLOWS OF RESOURCES
AND NET POSITION
$ 683,181
1,185, 663
(24, 004)
(743, 247)
1,101,593
4,764,564 3,274,459 500,632 1,490,105
$ 163,775,304 $ 161,183,606 $ 159,431,976 $ 2,591,698
$ 7,262,461 $ 7,300,776 $ 6,648,077 $ (38,315)
27, 642, 726 30, 583, 770
10,250,329 8,013,400
7193217
31073,507 33226,709
481948,240 493124,655
34, 652, 693
6, 210, 985
2, 786, 763
50, 298, 518
(2, 941, 044)
2,236,929
719,217
(153,202)
(176,415)
11597,126 21341,737 22168,674 (744,611)
93,421,545
89,271,509
82,613,625
4,150,036
6,011,469
5,762,124
7,768,818
249,345
13,796,924
14,683,581
161582,341
(8869657)
113, 229, 938
109, 717, 214
106, 964, 784
3,5121724
$ 163,775,304 $ 161,183,606 $ 159,431,976 $ 2,591,698
The District implemented Governmental Accounting Standards Board (GASB) Statement of Governmental
Accounting Standards (SGAS) No. 68 "Accounting and Financial Reporting for Pensions -An Amendment
of GASB Statement No. 27" (GASB No. 68) in 2015. Under GASB no. 68, the District is required to report
the net pension liability and deferred inflows and outflows in the Statement of Net Position. Net Pension
Liability was $10.3 million, $8.0 million and $6.2 million at December 31, 2016, 2015 and 2014 respectfully.
Net long-term debt decreased $2.9 million, due to the annual reduction of existing debt. See note 5 for
details on remaining debt. The District had two refundings in 2016, the previously unrefunded portion of
the 2006 COP and the Pension Sidefund Obligation Bond which provide the District with net present value
savings of just under $386,000 over the remaining life of the bonds. No additional debt was issued in 2016
or 2015 respectfully. The District's total net position increased $3.5 million, substantially due to increased
investment in capital assets for substations, pipeline replacement projects, pump stations, and the reliability
See accompanying auditors' report.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2016 and 2015
enhancement of the District's computer servers. "Net investment in capital assets," consist of capital
assets, net of accumulated depreciation, reduced by the amount of outstanding indebtedness attributable
to the acquisition, construction, or improvement of those assets. When there are significant unspent bond
proceeds, the portion of related debt is not included in the calculation of this item. Instead, that portion of
the debt is included in the net position restricted for capital projects component as an offset to the related
unspent bond proceeds.
"Restricted for debt service" represents amounts restricted for payments related to outstanding revenue
bonds.
The District had income before capital contributions of $1.8 million, $1.3 million, and $0.9 million for the
years ended December 31, 2015, 2014, and 2013, respectively. The District's December 31, 2014 income
before capital contributions increased $0.2 million due to the required restatement for compliance with
GASB No. 68 first year implementation for pension accounting. Changes in the District's net position can
be determined by reviewing the following Condensed Revenues, Expenses, and Changes in Net Position
for the years ended December 31, 20152 2014, and 2013.
CONDENSED REVENUES, EXPENSES, AND CHANGES IN NET POSITION
Sales to consumers
Other operating revenues
Total Operating Revenues
Operating expenses
Operating Income (Loss)
Non -operating revenues (expenses)
Income (loss) before
capital contributions
Capital contributions, net
Change in net position
Increase
(Decrease)
2016
2015
2014
2016-2015
$ 33,0261587
$ 30,818,856
$ 30,331,953
$ 23207,731
2,5771122
21158,141
21296,643
418,981
35,6031709
32,976,997
32,628,596
2,626,712
33,101,672
30,892,366
30,879,299
2,2093306
2,502,037
21084,631
1/7493297
417,406
(688,423)
(762,711)
(826,268)
743288
1,813,614
1,321,920
923,029
491,694
1,699,110
1,430,510
994,056
268,600
31512,724
2,752,430
11917,085
760,294
Net Position, Beginning of Year 109,717,214 106,964,784 119,336,452 2,752,430
Less: Restatement for change in
accounting principal (141288,753) -
Net Position, Beginning of Year, as adjusted 109,717,214 106,964,784 105,0477699 21752,430
NET POSITION, END OF YEAR $ 1131229,938 $ 10%7171214 $ 1065964,784 $ 3,512,724
Total operating revenues were $35.6 million in 2016, $33.0 million in 2015, and $32.6 million in 2014. In
2016, electric revenues increased 6.0% as the District experienced an active winter season compared to
prior years. Water revenues increased 11.8%; there was a 6% rate increase in 2016 in addition to changes
to the state mandated drought regulations.
Total operating expenses were $33.1 million in 2016, $30.9 million in 2015, and $30.9 million in 2014.
Electric expenses increased 6.9% and water expenses increased 7.1%primarily attributed to $1.4 million
in additional expense compared to 2015 for pension expense and other post -employment benefits in
compliance with GASB 68 and GASB 45 (see note 9).
See accompanying auditors' report.
Page 7
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2016 and 2015
Non -operating revenues remained nearly flat in 2016 from 2015. Non -operating expenses decreased $0.1
million due to decreased interest expense from 2015 and savings acquired from the 2016 refundings of
existing debt (see note 5).
CAPITAL ASSETS
As of December 31, 2016, 2015, and 2014, the District had $123.6 million, $122.4 million, and $119.3
million, respectively, invested in a variety of capital assets, net of accumulated depreciation. A summary of
capital assets is reflected in the following schedule.
Electric distribution facilities
Water distribution facilities
General plant
Sub -totals
Less: Accumulated depreciation
Net of accumulated depreciation
Construction work in progress
Net capital assets
CAPITAL ASSETS
2016
$ 58,345,690
108, 860, 825
15, 062, 278
182, 268, 793
(63, 372, 738)
118, 896, 055
4,663,696
$ 123, 559, 751
2015
$ 54,721,615
107, 005, 578
13,887,881
175, 615, 074
(58, 042, 448)
117, 572, 626
4,844,042
$ 122,416,668
2014
$ 51,524,863
103, 049,122
12, 816, 635
167, 390, 620
(54, 475, 747)
112, 914, 873
6,407, 589
$ 119, 322, 462
Net capital assets (additions, less retirements and depreciation) increased in 2016 $1.2 million. This
increase is primarily attributed to the Electric Utility's replacement of sub -station equipment in addition to
the Water Utility's ongoing replacement of the antiquated SCADA communication system in addition to
pump station maintenance and repairs and main water line replacements across the District.
LONG-TERM DEBT
Long-term debt includes revenue bonds and notes payable. At December 31, 2016, 2015, and 2014, the
District had $27.6 million, $30.6 million, and $34.7 million, respectively, in long-term debt outstanding, net
current maturities.
In October 2016, the remaining portion of the 2006 COP was refunded and the Pension Sidefund Obligation
Bond, was refunded saving the District $0.4 million over the remaining term of the bonds. No other new
debt was issued in 2016.
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
11510 Donner Pass Road
Truckee, CA 9616
See accompanying auditors' report.
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