HomeMy WebLinkAboutRES 2021-20 - Board
Resolution No. 2021 – 20
ADOPTING AMENDMENTS TO DISTRICT CODE TITLE 3,
Chapter 3.01
WHEREAS, the Board of Directors of the Truckee Donner Public Utility District wishes
to amend the District Code Title 3, Chapter 3.01 Financial Goals; and
WHEREAS, in August 2021, the District embarked on financial planning for 2022, 2023
and eight years thereafter; and
WHEREAS, the financial planning review included review of District Code Title 3,
Chapter 3.01 Financial Goals, as it relates to reserves and reserves targets; and
WHEREAS, during this review certain refinements to Chapter 3.01 were discussed ; and
WHEREAS, the revised version of Title 3 Chapter 3.01 will improve clarity and
understanding of District’s Code policies.
NOW THEREFORE, BE IT RESOLVED, that the Board of Directors does hereby repeal
any resolutions and ordinances effecting Title 3 and; adopt the amended District Code,
Title 3, and Chapter 3.01; as attached.
PASSED AND ADOPTED by the Board of Directors of the Truckee Donner Public
Utility District in a meeting duly called and held within said District on the third day of
November, 2021 by the following roll call vote:
AYES: Directors Harris, Bender, President Finn.
NOES:
ABSTAIN:
ABSENT: Directors Aguera, Vice President Laliotis.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
By: ____________________________________
Christa Finn, President
ATTEST:
____________________________________
Shanna D. Kuhlemier, CMC, District Clerk
DocuSign Envelope ID: D28E704A-60DA-400F-8313-7440BDDE0C76
CHAPTER 3.01
FINANCIAL GOALS
Section:
3.01 Financial Goals
3.01.01.1 Financial Goals The following goals are established to promote and maintain
the financial strength of the District:
3.01.01.01 Planning Goals
Review Water and Electric Master Plans at least every five years
Review ten-year Finance Master Plan each year
Prepare two-year operating budget with semi-annual reviews
Prepare ten-year Capital Improvement Plan; update annually
Review rate structure and levels every two years
Review Financial Goals every year
3.01.01.02 Revenue Goals
Set operating revenues to capture entire cost to provide service plus build and
maintain reserves and satisfy debt coverage ratios
Review connection charges every two years and set them to recover all costs
Review facilities fees every budget cycle and after the completion of a master plan
3.01.01.03 Debt Goals
Separate debt that is serving development (facilities fees), debt serving current
customers (rates), debt serving a special assessment district (assessments) and
debt financed by billing surcharges. These categories of debt should be separately
identified in the budget
One-half the debt service for all long-term debt in the aggregate is due in the first
ten years
No more than one half the projected annual facilities fee revenue committed to debt
service
No more than twenty-five percent of general fund revenues committed to debt
service
No debt more than 30 year maturity
No debt longer than useful life of the project
Debt issued by the District, either directly or indirectly, shall be subject to these
provisions and section 3.07, Debt Issuance and Management Policy:
3.01.01.04 Cash Reserve Goals - Operations
Water general fund should have a cash reserve equal to one half of the annual
budgeted operating expenses, excluding depreciation.
Resolution 2021-20, Attachment 1
Electric general fund should have a cash reserve equal to one half of the annual
budgeted operating expenses, excluding depreciation and purchased power.
Electric rate stabilization fund (aka Electric Rate Reserve) should maintain a
minimum cash reserve equal to six months of the budgeted cost of purchased
power.
Both the Electric and Water Utilities shall maintain a Board restricted operating
reserve fund titled Deferred Liability. The intent of the fund is to provide reserves
for unfunded liabilities such as pension costs and the reserve goal shall be
determined by the Board on an annual basis.
3.01.01.05 Capital Reserve Goals
There should be a revolving water capital reserve equal to the average annual
budget for capital replacement to permit projects to be initiated and funded prior to
arrangement of long-term debt or other financing.
There should be a revolving electric capital reserve fund equal to the average
annual budget for capital replacement.
3.01.01.06 Debt Reserve Goals
There should be a reserve fund for each debt instrument in an amount required by
each lender.
A reserve fund should be established and maintained to pay for vehicle and
equipment purchases as needed. Long term financing should be used when
necessary and the life of the asset purchased is greater than 15 years.