HomeMy WebLinkAboutr2019-02Resolution No. 2019 - 02
ADOPTING AMENDMENTS TO THE DISTRICT CODE
TITLE 3
WHEREAS, the District Code provides rules and regulations intended to convey a comprehensive description
of the manner in which the District operates, handles its finances and performs its accounting; and
WHEREAS, the District has identified a need to adjust cash reserve goals and capital reserve goals to be
consistent with operational, inflationary, and regulatory needs; and
WHEREAS, a workshop on the cash reserve goals and capital reserve goals and draft revisions to District
Code, Title 3 was held at the January 16, 2019 Board meeting; and
WHEREAS, the Board of Directors of Truckee Donner Public Utility District has chosen to amend the District
Code Title 3.01; and
NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE TRUCKEE-DONNER PUBLIC UTILITIES
DISTRICT DOES RESOLVE AS FOLLOWS:
Section 1. All previously adopted resolutions related to District Code Titles 3.01.01.04 and 3.01.01.05 are
hereby rescinded; and
Section 2. That the Board does hereby adopt the amended District Code, Title 3, 3.01.01.04 and
3.01.01.05 related to Cash Reserve Goals and Capital Reserve Goals as follows;
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.
• Electric general fund should have a cash reserve equal to one half of the annual
budgeted operating expenses, excluding depreciation.
• 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 fund 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.
Section 3. That this resolution shall remain in effect until superseded by another resolution amending District
Code Title 3.01.01.04 and 3.01.01.05.
PASSED AND ADOPTED by the Board of Directors at a meeting duly called and held within the District on
the sixth day of March, 2019 by the following roll call vote:
AYES:
NOES:
ABSENT:
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
By
Bob Ellis, President
ATTEST:
Shanna D. Kuhlemier, CIVIC, District Clerk