HomeMy WebLinkAboutFinancial StatementsEXHIBIT "G"
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TRLO;ffi-D0N\'ro PUBLIC UTILITY DISTRICT
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FINANCIAL STATFMENTS AS OF DnCFMBK,R 31, 1979 AND 1978
TOGETMER WITH
AUDITORS' REPORT
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ARTHUR ANDERSEN & Co.
SAN FRANCISCO, CALIFORNIA
i o ".ne b o a r G ol si rectors of
'ruckee-Donner Public Utility District
he have examined the balance sheets of Truckee- Donner
, b I 1 C Hy District (a political subdivision of the State of
: s 01 De ceniDo r i l. 19 ; n d i y / < ihd the related
st a: i.iO! if net rev em funds provided for additions to utility
ieii enueiS. Our examinations were ,:,ade l
a c c o r d < w 11 h y o n c- r a 1 I d auditing standards and,
icccrdlntjl' nc Iudec such tests of the account i rig records and such
81her auditing procedures a s we considered necessary in the
circumstances,
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As discussed further in Note b to the accompanying
financial stot ernents, the District is a party in a legal action which
seeks oarages in excess of $100 million from various defendants,
including the District. The ultimate outcome of this legal action
anc the effect u; on the District, if any, cannot be determined at
this time.
As aiscussed in Note 4 to the accompanying financial
s;otei;ients, District is required to meet certain covenants which
result from the issuance of a promissory note payable to the United
Jte :es of America, farmers' Hone Administration. During 1979 and
uaS uncertain whether the District met and fulfilled the
fgow i rement s of these covenants
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In our opinion, subject to the effect of any adjustments
that might nave- been required had the cut come of the matters referred
co in the preceding paragraphs been known, the financial statements
■cterroc t o a D o v e
I Jonner Public utility
.he results of its
?nt fairly the financial position of Truckee-
)1strict as of December 31, 1979 and 1978, and
ds provided for additions to its operations and funds f
accepted
mt for the years then ended, in conformity with generally
:counting principles applied on a consistent basis.
Uur examinations have been made primarily for the purpose
j the opinion stated in the preceding paragraph. The data
contained in the combining ient of departmental operations,
although not considered necessary for a fair presentation of
financial position, results of operations and changes in financial
3511ion. ' r e s ented supplementary information and ! v e been
;bjecteu to thi idit procedure: • p1i ed in the e x a m i n ations of the
I Do asic financial statements. In our opinion, subject to the effect of
any adjustments that might have been required had the outcome^of the
legal action discussed above been known, these data contained in the
combining statements of departmental operations are fairly stated in
all material respects in relation to the basic financial statements
taken as a whc1e.
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,arch 2b, iSbu
ASSETS
ft
TRUCKEE-DONNER PU
BALANCE SHEETS DE
I UTILITY PLANT, at cost (Note 1)
P 1 tint i n serv i co-
Lie c t r i c
Water
Genera 1
less - Accumu ! cited d epreciation
let p 1 a n t i i)
19 79 1978
$2,236,721 $2,213,9:
951,018
509,390
880,49(
465,721
$3,697,129 $3,560,15:
2,026,836 1 ,896,6861
$1,670,293 $1,663,46'
Construct i c n : r e:. s
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LI ectric acquisition adjustments
let uti ty
KESTRICTLU FUNDS (Note 3)
CURRENT ASSETS
Cash
Accounts recei vabl e - consumer, less
bad debt reserves of $61,600 in 1979
and $47,100 in 1978
Account receivable - purchased power
refund (Note 2)
Accounts receivable - standby fees and other,
less bad debt reserves of $13,600 in 1979
and 1978
Inventory, at average cost
Interest receivable
ind other
I repaid insurance
610,740
2,537
22 7,2 011
3,30:
$2,28 3,5 70 $1,893,96)
(.73,605 496,12'
900,9/1
271,410
6,054
164,742
161,944
43,403
728,13(1
258,471
102,41!
138,301
168,87!
34,43!
$1,548,524 $1,430,641
$4,505,699 $3,820,73!
The accompanying notes are an inj
'LIC UTILITY DISTRICT
CCKPFR 31, 1979 AND 1973
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CONSUMERS' EQUITY AND LIABILITIES
CAPITALIZATION:
Consumers' equity employed in t.ho business-
Balance, beginning o 1 year
Not revenue for the year
Total consumers' equity
1979 1978
$2,222,131 $1,893,965
335,400 328,166
$2,557,531 $2,222,131
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Long-term debt (Note 4)-
R LA bonds
Note payable to Sierra Pacific Power
Company
Promissory note United States of America,
Farmers' Home Administration
Sewer assessments payable
Equipment notes payable
Total long-term debt
Total capitalization
CURRENT LIABIUl IES (Note 4 ) :
Accounts payable
Deferred income - standby fees
Consumer deposits
Accrued interest
Accrued liabilities
Current maturities of long-term debt
CONTINGENCIES (Note 5)
•0 CONSTRUCTION ADVANCES (Note 3)
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$ 310,574 $ 329,574
26,457
249,591
12,746
671
43,064
249,591
14,041
8,889
$ 600,039 $ 645,159
$3,157,570 $2,867,290
$ 762,747 $ 484,270
55,423
43,053
22,318
37,652
47,327
51,156
33,002
7,672
35,948
46,938
$ 968,520 $ 658,986
$ 379,609 $ 294,455
$4,505,699 $3,820,731
: e g r a 1 part of these balance sheets.
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TRuCKEE-DONNER PUBLIC UTILITV DISTRICT
STATEMENTS OF NET REVENUE
I FOR THE YEARS ENDED DECE 1, 1979 AND 1975
OPERATING REVENUES;
LI ect ric
W dter
19 79 1973
,2,630,562 52,299,267
5 6 4,609 298,065
S2,995,171 $2,597,332
'ERAT1NG EXPENSES:
Pu rchiised , ower (N
rransmissien
Distribution
Consumer accounts
Admin fstrative - nti
Depreci at i on
.te 2!
general (Note 6)
Net operating revenue
I OTHER INCOME:
Interstt i ,,r one
Other, net
Net revenue before interest
expense
EREST EXPENSE
Net revenue
$1,959,601 $1,469,942
68,177
159,572
153,499
283,094
128,116
59,593
165,397
131,863
342,894
119,703
$2,752,059 $2,289,392
$ 243,112 $ 307,940
129,624
17,390
60,817
(4,783'
$ 390,126 $ 363,974
54,726 35,808
$ 335,400 $ 328,166
The accompanying notes are an integral
part of these statements.
oy\
TKUCKEE-DONNER PUBLIC UTILITY DISTRICT
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ST/' iKENTS OF FUNDS PROVIDED FOR ADDITIONS TO UTILITY PLANT
FOR iE YEARS ENDED DECEMBER 31, 1979 AND 1978
FUNDS PROVIDED INTERNALLY
Operat i ons-
N e t r o v c- n u e
Depreciation expe
current use ol
; not requiring
' u n d s
Other
19 79
1 J J3, rOO
128,116
14,710
1978
$ 328,166
119,703
16,252
;nds provided by operations
Add (deduct)-
Reductions in 1ong-1erm debt
Adaitions to restricted funds
478,226
(44,7 32
177,481
$ 464,121
(90,347
127,654
Net ft ■ r o v i d e d intern.: $ 256,013 246,120
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FUNDS PROVIDED FROM EXTERNAL SOURCES:
Construction and maintenance funds
contributed tu the District
Advances utilized for
construct ion
increase in long-term debt
Net funds from external
sources
FUNDS PROVIDED (USED) FROM NET
CHANGE IN WORKING CAPITAL (Note 7)
Funds provided for additions to
utility plant
85,154
$ ,47,600
51,174
251,801
$ 85,154 $ 350,575
S 191,650 5(216,235)
S 532,817 S 380,460
The accompanying notes are an integral
part of these statements.
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TRUCKEE-DONNER PUBLIC UTILITY DISTRICT
;OT; "0 FINANCIAL STATEMENTS
DECEMBER 31, 1979 AND 1978
1. Sui irv of Si^mricant account) ng toim es
I r (j a n i 2 a t ion -- The Truckee-Donner Public Utility
Ul: ict (the District) was formed and operate! ider the State
of CaliforuI 'lit Utility District Act irovide electric
and water service to a portion of Nevada County described as
Truckee and Conner Lake. The District is exempt from payment of
federal and state income taxes.
0epreci ation The District provides for depreciation
on the historical cost of utility properties on a straight-line
basis at rates in accordance with the Rural Electrification
Administration Bulletin 181-1. The average annual composite
rates were 3.60X and 3.548 in 1979 and 1978, respectively.
Retirements of utility plant and the related costs of
remova uid salvage are charged to accumulated depreciation.
The costs of replacement of property units are charged to
plant. Kepair and ma i ntenance costs are charged to expense.
as me
Revenues -- Revenues consist of billings to consumers
.ers are read on a cycle basis throughout each month.
Services provided to municipal entities without charge are not
reflected in operating revenues.
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Pension Plan - strict ■ mains a
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noncontributory, defined benefit pension plan covering
substantially all employees who have at least one ye&r o1
service. It is the Distr- :c1 icy to fund pension costs as
accrued, and contributions for 1979 and 1978 amounted to $27,312
and $21,741, respectively December 31, 1979, the value of
the plan's assets exceeded the actuarially computed present
value of vested benefits.
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Purchased Power Refund
On January 4, 1979, the District received a cash
refund in the amount of $;u2,415, including interest, from its
wholesale electrical power supplier. This resulted from
refunds, ordered by the federal Energy Reyulatory Commission
(formerly the Federal Power Commission), which the supplier had
received from its suppliers and from audits of its fuel clause
billings. The refund to the District covered purchases during
the period 1971-1978. The 1978 financial statements have
reflected the refund ($102,415) in the balance sheet as an
account recei vable purchase d power refund and in the statement
of net revenue as a reduction of purchased power expense.
3. Restricted Funds
The District has collected and restrictively deposited
funds for future uses as fellows:
Dart Industries Water Aqr L'cnient -
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the District has collected $40
per lot for future water source
and storage facilities in the
developers' project
REA loan proceeds - placed in trust
to be used for future electric
construction projects
Dart Industries water services
sett 1ewent the District has
collected funds for anticipated
future repairs of water lines
constructed by Dart Industries
Facilities fees c < lected from
customers for future procurement
of source and st o r a q e
Portion of connection fees collected
from customers for the future
purchase of water meters
Other restricted funds-
Loai prlnclpa and interest fund
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in accordance with loan agree-
ments, principal and interest
payments dre to be placed on
deposit until payment is due-
RF.A
Sierra Pacific Power Company
Promissory note proceeds - placed
in trust to be used for specific
water construction projects
Purchased power refund proceeds
restricted by the District to
be used for future construction
projects
Consumer deposits
Restricted Constructiot
Funds
5196,300
40,675
36,410
4 9,120
46,
5.41'
38,769
34,067
25,656
112,704
43,529
A d v a n c e s
5196,300
86,361
50,202
46,746
$379,609
$67! i05 $379,609
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Long-Term Debt
REA bonds, secured by pledge of all assets, are as
follows:
1979 1978
First series 2% bonds pay able in
annual amounts varying from $13,000
to $14,000, in accordance with
sinking fund requirements, balance of
$14,000 uue July, 1994
Second series 2% bonds, payable in
annual amounts varying from $3,000
to $5,000, in accordance with
sinking fund requirements, balance
of $6,000 due hay, 2002
Third series 2% bonds, net of undrawn
funds ot $05,426, payable in annual
amounts varying from $3,000 to
$6,000, in accordance with sinking
fund requirements, balance of
$3,000 due Kay, 2004
Less - Current maturities
Total REA bonds
198,000 $211,000
88,000 91,000
43,574 46,574
(19,000) (19,000)
$310,574 $329,574
The note payable to Sierra Pacific Power Company is
due in semiannual installments of $9,213, including interest, at
a rate of 4.68%, with final payment due in March, 1983. The net
revenues (as defined) of the Conner Lake Electric System are
pledged as security.
The promissory note payable to the United States of
America, Fanners' Home Administration is due in 39 annual
installments of principal and interest of $14,800. The interest
rate i s 5 % per annum. The net revenues (as defined) of the
District's water system are pledged as security. The Indenture,
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which secures the promissory note, requires the District to
establish and maintain rates ana charges to produce net revenues
(as defi ned) equal to not 1 e ss than 1.2 times the aggregate
amount of the principal and interest due within the next \'l
iont hs [n addition, it requires the District to establish
separate special accounting funds. During 1979 and 1978, it was
uncertain whether the District met the requirements of the
ndenture as outlined above. As a result of this uncertainty
the District may not have fulfilled the covenants of the
Indenture. In the event of a default, the holder of not less
than 66-2/3% of the aggregate principal amount shall be
entitled, upon notice in writing to the District, to declare the
principal of all the notes ($251,800) due and payable
i mmediately.
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The sewer assessments &ra payable over a 20-year
period, plus interest at 7%, to Nevada County, California.
Final payment is due in 1990.
The equipment notes payable to banks are secured by
computer equipment and a truck. They sre due in monthly
installments, including interest at 7%, of $830 through
September, 1980, and $356 thereafter through March, 1981.
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5. Contingencies - Dart Industries Water
Agreement ana Related Lawsuits
In 1970, an agreement was signed between the District
and Dart Industries for the purpose of providing water service
to a Dart subdivision. agreement required Dart to construct
water source and storage faci lit ies at Conner Lake, In
December, 1975, subsequent to completion of the facilities,
ownership was transferred to the District for future maintenance
and operation. The Attorney General of the State of California
has filed suit against t! ,trict and Dart to restrain them
f ron .■sing Dortner Lake as a water soui Since this action
claims no monetary damages, the District has no liability
resulting from this action. Subsequent to the acceptance of the
water system, a citizens i roup has filed suit to have the
District rescind its action of acceptance of the water system or
to refer the matter to a vote of the District's residents. This
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action also claims no monetary damages to the District
In a separate action related to the Dart subdivision,
a homeowners' group filed suit against Dart, claiming amounts in
excess of S100 million, and Dart has, in turn, filed suit
against the District and others, seeking indemnity for all such
claims. The outcome and potential Impact on the District cannot
presently be determined.
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Legal Fees
ie District re crrded £116,117 for 1 ega 1 fc-es during
19 7 8. This amount was included in administrative and general
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expenses in the statements of net revenue,
7. Changes in .'let Work i n j Capital
the changes in accounts classified as current assets
and current liabilities are as follows:
Year Lnded December 31
1979 1978
Working capital increase
(decrease) in-
Ca sh
Receivables
In ventory
Other current assets
Accounts payable
Deferred income
Consumer depos i t s
Other curr e n t liabilities
$ 172,641
(56,988)
(6,934)
8,9o5
78,431
218,642
(22,123)
22,850
;278,47/) (143,499;
14,267'
(10,051)
(16,739)
3,294
(4,390)
69,618
$(191,650) S 216,235
I (^classifications
Certain amounts in the December 31, 1973 financial
Statements have been reclassified to conform with the
presentation used in the December 31, 1979 financial
statements. Fhese reclassifications did not change previously
reported net revenue.
TRUCKEE-DONNER PUBLIC UTILITY DISTRICT
COMBINING STATEMENT OE DEPARTMENTAL OPERATjONS_
FOR THE YEAR ENDED DECEMEER 31, 1979
Total Eliminations
El ect r i c
Truckee
Donncr
Lake
Water
Truckee
Tahoe
Donner
OPLRATING REVENUE
OPERAIING IXPENSES:
Purchased power
T r a n nil ssi on
Uistri but ion
Consumer accounts
Administrative and general
Depreci at1on
Other
k't operating
revenue
$2,995,171
$1,959,601
68,177
159,5 72
153,499
283,094
128,116
$2,752,059
$ 243,112
$ 89,3 54
$ -
(78,633)
(1,273)
(1,803)
(7,645)
$(89,354)
$2,142,891
$1,649,852
107,010
89,202
127,168
8 0,613
?,6'15
$2,061,450
11,4 05
$577,021
$309,7 4"
56.3 78
41,414
62,691
15,652
$485,884
$ 91,137
,236,486
76,002
4,51
l1 '97
62,571
31,265
$ 46,263
,128,123
70,808
(7,131)
7,086
32,467
586
$190,223 $103,816
$ 24,307