HomeMy WebLinkAboutSpecial Meeting MinSPECIAL MEETING
December 6, 1982
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The special meeting of the Board of Directors of the Truckee Dormer Public
Utility District was called to order by President Maass at 6:07 P.M. in the Dis-
trict Board room.
R0_LL_CALL: Directors Corbett, Kuttel, VanLandingham and Maass were present.
Director Huber arrived at 6:08 P.M.
EMPLOYEES PRESENT: James Ward and Mary Chapman were present.
CONSULTANTS PRESENT: Rick Blumenfeld of Arthur Andersen and Company was present.
OTHERS PRESENT: The Chairman noted several guests were present in the audience.
QUARTERLY FINANCIAL REVIEW WITH RICK BLUMENFELD OF ARTHUR ANDERSEN & COMPANY
Rick Blumenfeld discussed with the Board the FmHA indenture, related condi-
tions and restrictions. He presented and explained a "Liquidity Working Capital
Test," of which a copy has been attached for reference, and went over the assets,
obligations and net working capital of the District. Arthur Andersen and Company
recommends a $500,000 (8% of the annual operating expenses) cash reserve be main-
tained.
Regarding the Truckee River Bank note for purchase of the computer, Mr.
Blumenfeld advised that the bank is willing, according to the Office Manager, to
rewrite the note at 10% for six years with no prepayment penalty for early pay-
off.
Note was made of the recent monthly deposits for the construction of the
Martis Valley Substation. Rick Blumenfeld suggested continuing to set aside a
certain amount each month for funding future projects.
The Water and Electric income statements, net margin, receivables, rates
and charges and revenue funds in the Water Department were discussed. Mr. Blu-
menfeld advised that Mary Chapman has done an analysis since 1980, and found that
the Water Department owes the Electric Department a total of $57,000; this amount,
he noted, should be taken out of the restricted fund and put to the Electric side.
The President directed that consideration of the transfer be placed on the Decem-
ber 20th meeting agenda; he directed Mrs. Chapman to draft the necessary resolu-
tion.
Mr. Blumenfeld noted that, over the last few years, the District has en-
joyed excess cash which was invested at very high rates - there has been several
hundred thousand dollars of interest income. The District has spent this income,
and the amount of money available for investment is no longer present; therefore,
the benefit of high interest rates payable on large investments is no longer pre-
sent.
Briefly discussed were upcoming water improvement projects, revenue funds
in the approximate amount of $200,000 which have been set aside for this purpose,
the viability of additional Farmers Home loans and present indebtedness.
After some further discussion regarding miscellaneous items, the Chairman
advised that the next meeting with Arthur Andersen £ Company will be the prelim-
inary audit report, which will probably take place in April.
ADJOURNMENT
The meeting was adjourned at 7:06 P.M.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
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imes A. Maass, President
Susan M. Craig, Deputy District Clerk
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