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TRUCKEE DONNER
PUBLIC UTILITY DISTRICT
FINANCIAL STATEMENTS
Including Independent Auditors' Report
December 31, 2012 and 2011
TABLE OF CONTENTS
Report of Independent Auditors.......................................................................................
Management's Discussion and Analysis..........................................................................
FinancialStatements........................................................................................................
Consolidated Statements of Net Position....................................................................
Consolidated Statements of Revenues, Expenses, and Changes in Net Position .....
Consolidated Statements of Cash Flows.....................................................................
Notes to Financial Statements.........................................................................................
Supplemental Information................................................................................................
Consolidating Statement of Net Position.....................................................................
Consolidating Statement of RevEnues, Expenses, and Changes in Net Position ......
Consolidating Statement of Cash Flows......................................................................
Position of Other Post Employment Benefit Plans ......................................................
.......................16
....................... 44
50
52
............... 53
............... 55
WWW.MOSSADAMS.COM
REPORT OF INDEPENDENT AUDITORS
The Board of Directors
Truckee Donner Public Utility District
Report on Financial Statements
We have audited the accompanying consolidated financial statements of Truckee Donner Public Utility
District (the "District"), which comprise the consolidated statements of net position as of December 31, 2012
and 2011, 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 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 auditing 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 obtained is sufficient and appropriate to provide a basis for our audit
opinion.
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, 2012 and 2011, 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.
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INDEPENDENT FIRMS
REPORT OF INDEPENDENT AUDITORS (continued)
Other Matter
Accounting principles generally accepted in the United States of America require that management's
discussion and analysis and the schedules of pension plan funding history and retiree health plan funding
history be presented to supplement the basic financial statements. Such information, although not a part of
the basic financial statements, is required by the Governmental Accounting Standards Board who considers it
to be an essential part of financial reporting for placing the basic 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 basic financial
statements, and other knowledge we obtained during our audit of the basic 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.
Our audits were conducted for the purpose of forming opinions on the financial statements that collectively
comprise the District's financial statements. The consolidating statements of net position, statements of
revenues, expenses and changes in net position and cash flows are presented for purposes of additional
analysis and are not a required part of the 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 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 financial statements and certain other procedures, including comparing and reconciling
such information directly to the underlying accounting and other records used to prepare the financial
statements or to the 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 financial statements as a whole.
Portland, Oregon
May 29, 2013
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2012 and 2011
MANAGEMENT'S DISCUSSION AND ANALYSIS
As financial management of the Truckee Donner Public Utility 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, 2012 and 2011. This discussion and analysis is designed to assist the reader in
focusing on the significant financial issues, 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 here in 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 net capital assets decreased $2.1 million (2%) from $121.9 million at December 31, 2011 to
$119.8 million at December 31, 2012, due to the continued lack of new development. Electric distribution
assets were replaced at about the same pace as accumulated depreciation and Water distribution assets
were replaced at a slower pace.
The District's total net position increased $3.6 million (5%) from $77.3 million at December 31, 2011, to
$80.8 million at December 31, 2012. The increase was due to a $5.2 million increase in unrestricted
assets, less a $1.5 million decrease in restricted assets and $0.1 million decrease related to capital
assets.
The operating revenues decreased $0.7 million (2%) from $33.5 million in 2011 to $32.8 million in 2012.
Electric revenues decreased 2% in 2012 due to milder winter weather, and Water revenues decreased
2% as anticipated due to the conservation effect of the newly installed residential water meters.
Operating expenses of the District decreased by $0.6 million (2%) from $29.3 million in 2011 to $28.7
million in 2012 due to lower purchased power costs. These costs were lower due to decreased
consumption, lower market -priced energy, and $0.2 million of carbon auction proceeds from California's
Cap and Trade Program. (See notes 1(V) and 2).
Non -operating revenues decreased $1.0 million from 2011, mostly because of a gain on the sale of land
in 2011. Non -operating expenses decreased $0.2 million due to less interest expense.
$7.8 million debt was issued in 2011 to refinance an existing pension obligation (See notes 1(J), 5, and
9(B)), but no new debt was issued in 2012.
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), and Supplementary
Information.
See accompanying auditors' report.
Page 3
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2012 and 2011
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- and long-term financial information about the District's
activities.
The reporting entity consists of the primary government, which has two departments (electric operations
and water operations), and the blended component units. Further details about the component units are
provided in note 1(A).
The Consolidated Statement of Net Position, formerly Balance Sheet, 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, formerly Statement of Revenues, Expenses, and
Changes in Net Assets. 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 Statement 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 4
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2012 and 2011
DISTRICT HIGHLIGHTS
The condensed financial statements at December 31, 2012, 2011, and 2010 are presented below.
Isle] 6YdIIB7_AI =1 DIM I/_119=1�,I=1Z11910l0kql=119l01;y1111M�I
ASSETS
Current assets
Non -current assets:
Capital assets, net
Restricted assets
Other long-term assets
TOTAL ASSETS
LIABILITIES AND NET POSITION
Current liabilities
Non -current liabilities
Long-term debt, net of current
portion
Unearned revenues
Total Liabilities
Net Position
Net investment in
capital assets
Restricted for debt service
Unrestricted
Total Net Position
TOTAL LIABILITIES
AND NET POSITION
Increase
(Decrease)
gniq gni1 o2nin 7niq-gn1i
4S,yb5,tS15
4L,/5t5,/b/
4U,"IS"1,454
1,LU/,U4b
119,750,604
121,918,394
122,071,635
(2,167,790)
2,095,966
2,021,017
1,884,183
74,949
15,177,350
16,374,169
9,540,843
(1,196,819)
$ 180,989,735
$ 183,072,347
$ 173,628,115
$ (2,082,612)
$ 11,796,526
$ 10,928,960
$ 10,033,179
$ 867,566
84,201,341
90,522,322
88,780,242
(6,320,981)
4,156,039
4,335,944
4,447,397
(179,905)
100,153,906
105,787,226
103,260,818
(5,633,320)
41,983,182
42,160,866
40,245,805
(177,684)
14,667,929
16,187,007
15,768,308
(1,519,078)
24,184,718
18,937,248
14,353,184
5,247,470
80,835,829
77,285,121
70,367,297
3,550,708
$ 180,989,735 $ 183,072,347 $ 173,628,115 $ (2,082,612)
In 2012, the District's current assets increased $1.2 million, predominantly due to increased cash
reserves. (See note 2). The District's net capital assets decreased $2.2 million, due to the continued lack
of new development. Electric distribution assets were replaced at about the same pace as accumulated
depreciation and Water distribution assets were less. Non -current restricted assets increased $0.1 million,
attributed to a market adjustment of long-term investments. Other long-term assets decreased $1.2
million due to the scheduled collection of special assessments receivable and the debt issue costs are
amortized according to schedule. Net long-term debt decreased $6.3 million, due to the annual reduction
of existing debt. No new debt was issued in 2012. Unearned revenues decreased by $0.2 million due to
the reduction of facilities fees collected as a result of the lack of new development. The District's total net
position increased $3.5 million, substantially due to a $5.2 million increase in unrestricted assets, less a
$1.5 million decrease in restricted assets.
See accompanying auditors' report.
Page 5
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2012 and 2011
Net position invested in capital assets, net of related debt, 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.
Net position restricted for debt service represents amounts restricted for payments related to outstanding
revenue bonds.
The District had income before capital contributions of $3.2 million, $4.3 million, and $5.0 million for the
years ended December 31, 2012, 2011 and 2010, respectively. 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, 2012, 2011, and 2010.
CONDENSED REVENUES, EXPENSES, AND CHANGES IN NET POSITION
Sales to consumers
Other operating revenues
Total Operating Revenues
Operating expenses
Operating Income
Non -operating revenues (expenses)
Income before
capital contributions
Capital contributions, net
Change in net position
NET POSITION, Beginning of Year
NET POSITION, END OF YEAR
Increase
(Decrease)
2012
2011
2010
2012-2011
$ 30,383,363
$ 31,053,129
$ 31,118,286
$ (669,766)
2,377,362
2,430,965
2,358,141
(53,603)
32,760,725
33,484,094
33,476,427
(723,369)
28,746,242
29,284,060
27,620,502
(537,818)
4,014,483
4,200,034
5,855,925
(185,551)
(855,100)
120,208
(902,905)
(975,307)
3,159,383
4,320,242
4,953,020
(1,160,858)
391,325
2,597,582
1,590,134
(2,206,257)
3,550,708
6,917,824
6,543,154
(3,367,115)
77,285,121
70,367,297
63,824,143
6,917,824
$ 80,835,829
$ 77,285,121
$ 70,367,297
3,550,708
Total Operating revenues were $32.8 million in 2012, and $33.5 million in 2011 and $33.5 million in 2010.
In 2012, electric revenues decreased slightly due to a mild winter and water revenues decreased as
anticipated due to the conservation effect of the newly installed residential water meters.
Total operating expenses were $28.7 million in 2012, $29.3 million in 2011 and $27.6 million in 2010. The
decrease of $0.6 million (2%) in 2012 was primarily due to decreased purchased power costs. These
costs were lower due to decreased consumption, lower market -priced energy, and $0.2 million of carbon
auction proceeds from California's Cap and Trade Program. (See notes 1(V) and 2).
The net of non -operating revenues, less non -operating expenses, decreased $1.0 million in 2012
substantially because of a $1.0 million gain on the sale of land in 2011.
The net capital contributions decreased $2.2 million in 2012 due to the lack of new construction and
development activities.
See accompanying auditors' report.
Page 6
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2012 and 2011
CAPITAL ASSETS
As of December 31, 2012, 2011 and 2010, the District had $119.8 million, $121.9 million, and $122.1
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
Land held for future use
TOTALS
CAPITAL ASSETS
2012
2011
2010
$ 48,284,640
$ 46,895,992
$ 42,895,235
101,010,796
102,184,801
91,627,643
11,962,706
11,709,868
11,751,073
161,258,142
160,790,661
146,273,951
(46,102,004)
(42,699,978)
(37,979,543)
115,156,138
118,090, 683
108,294,408
4,594,466
3,827,711
13,488,564
-
-
288,663
$ 119,750,604
$ 121,918,394
$ 122,071,635
Net capital assets (additions, less retirements and depreciation) decreased $2.2 million (2%) in 2012 due
to the continued lack of new development. Electric distribution assets were replaced at about the same
pace as accumulated depreciation and Water distribution assets were replaced at a slower pace.
LONG-TERM DEBT
Long-term debt includes revenue bonds and notes payable. At December 31, 2012, 2011 and 2010, the
District had $90.5 million, $96.5 million, and $94.0 million, respectively, in long-term debt outstanding,
including current maturities. No new debt was issued in 2012.
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
Accounting & Finance Department
11570 Donner Pass Road
Truckee, CA 96161
See accompanying auditors' report.
Page 7
THIS PAGE IS INTENTIONALLY LEFT BLANK
FINANCIAL STATEMENTS
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
CONSOLIDATED STATEMENTS OF NET POSITION
December 31, 2012 and 2011
ASSETS
CURRENT ASSETS
Funds
Operating
Designated
Restricted
Total Funds
Accounts receivable, net
Unbilled revenues
Accrued interest receivable
Materials and supplies
Prepaid expenses
Other
Total Current Assets
NON -CURRENT ASSETS
Other Non -Current Assets
Restricted funds
Special assessments receivable
Deferred charges
Unamortized debt expense
Other
Total Other Non -Current Assets
CAPITAL ASSETS
Utility plant
Accumulated depreciation
Construction work in progress
Total Utility Plant
TOTAL ASSETS
2012 2011
$ 8,895,390 $
11,281,344
13, 799, 258
8,149, 507
9,500,894
15, 509, 694
33, 975, 992
33,160, 095
6,617,898
6,075,570
2,365,653
2,508,386
105,387
101,902
531,416
547,150
315,913
320,059
53,556
45,605
43, 965, 815 42, 758, 767
2,095,966 2,021,017
6,266,286 6,870,615
1,036,515 1,146, 426
7,874,549 8,357,128
17, 273, 316 18, 395,186
161, 258,142 160, 790, 661
(46,102,004) (42,699,978)
4,594,466 3,827,711
1In 7CZO Gnn 101 nIQ QnA
$ 180, 989, 735 $ 183, 072, 347
The accompanying notes are an integral part of these consolidated financial statements.
Page 10
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
CONSOLIDATED STATEMENTS OF NET POSITION
December 31, 2012 and 2011
LIABILITIES AND NET POSITION
CURRENT LIABILITIES
Other Liabilities
Accounts payable
Customer deposits
Other
Total Other Liabilities
Current Liabilities Payable From Restricted Assets
Current portion of long-term debt
Accrued interest payable
Total Current Liabilities Payable from Restricted Assets
Total Current Liabilities
NON -CURRENT LIABILITIES
Long-term debt, net of discounts, premiums and losses
Installment loans
Unearned revenues
Total Non -Current Liabilities
Total Liabilities
NET POSITION
Net investment in capital assets
Restricted for debt service
Unrestricted
Total Net Position
TOTAL LIABILITIES AND NET POSITION
7ni7 gn11
$ 3,150,894 $ 2,451,579
362,276 488,230
784,193 744,161
A 9Q7 RRA RA'� Q7n
6,303,832
1,195,331
7,499,163
11 7QA -,7R
82,975,105
1,226,236
4,156,039
RR Rr,7 ARn
5,933,250
1,311,740
7,244,990
in QqR QRn
88,983,704
1,538,618
4,335,944
Qd W;R 9RR
100,153, 906 105, 787, 226
41,983,182
42,160,866
14,667,929
16,187,007
24,184, 718
18, 937, 248
80,835,829
77,285,121
$ 180,989,735 $ 183,072,347
The accompanying notes are an integral part of these consolidated financial statements.
Page 11
THIS PAGE IS INTENTIONALLY LEFT BLANK
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
CONSOLIDATED STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
December 31, 2012 and 2011
2012
2011
OPERATING REVENUES
Sales to customers
$ 30,383,363
$ 31,053,129
Water meter surcharge
741,209
746,759
Standby fees
191,625
186,520
Other
1,444,528
1,497,686
Total Operating Revenues
32,760,725
33,484,094
OPERATING EXPENSES
Purchased power
10,571,359
11,342,992
Operations and maintenance
6,953,992
6,548,249
Consumer services
2,543,376
2,753,561
Administration and general
3,603,644
3,422,302
Depreciation
5,073,871
5,216,956
Total Operating Expenses
28,746,242
29,284,060
Operating Income
4,014,483
4,200,034
NON -OPERATING REVENUE (EXPENSES)
Special tax revenue
3,310,837
3,293,878
Investment income
463,893
539,017
Interest expense
(4,116,599)
(4,381,426)
Amortization
(100,090)
(105,797)
Other non -operating revenues
61,502
38,656
Other non -operating expenses
(121,466)
(41,928)
Gain (loss) on disposition of assets
(353,177)
777,808
Total Non -Operating Expenses
(855,100)
120,208
Income Before Contributions
3,159,383
4,320,242
CAPITAL CONTRIBUTIONS
391,325
2,597,582
CHANGE IN NET POSITION
3,550,708
6,917,824
NET POSITION - Beginning of Year
77,285,121
70,367,297
NET POSITION - END OF YEAR
$ 80,835,829 $
77,285,121
The accompanying notes are an integral part of these consolidated financial statements.
Page 13
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
CONSOLIDATED STATEMENTS OF CASH FLOWS
December 31, 2012 and 2011
CASH FLOWS FROM OPERATING ACTIVITIES
Received from customers
Paid to suppliers for goods and services
Paid to employees for services
Net Cash Flows from Operating Activities
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Principal payments on long-term debt
Proceeds from long-term debt issued
Payment of existing pension obligation
Interest payments on long-term debt
Net Cash Flows from Noncapital Financing Activities
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Capital expenditures for utility plant
Cost of disposal of property net of salvage
Proceeds from sale of land
Capital contributions, connection and facility fees
Special assessments receipts
Special tax receipts
Principal payments on long-term debt
Interest payments on long-term debt
Cash Flows From Capital and Related Financing Activities
CASH FLOWS FROM INVESTING ACTIVITIES
Matured long-term investment reinvested in short-term
Interest income received
Cash Flows from Investing Activities
Net Change in Cash and Cash Equivalents
CASH AND CASH EQUIVALENTS — Beginning of Year
CASH AND CASH EQUIVALENTS — END OF YEAR
NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES
Developer and customer added capital assets
Recognition of prior period unearned revenues
2012 2011
$ 32, 800,199 $
33,103, 216
(15,851,644)
(17,838,792)
(5,655,332)
(5,074,968)
11, 293, 223
10,189, 456
(3,538,000)
(3,138,000)
-
7,816,000
-
(7,816,000)
(448,219)
(648,723)
(3,986,219) (3,786,723)
(3,989,918) (4,062,590)
(378,784)
(354,563)
-
1,092,308
365,973
711,067
604,329
583,837
2,717,154
2,833,368
(2,402,579)
(2,002,145)
r'i 7R4 7An)
/3 RR9 97A1
(b,bbb,bIb) (5,ubu,aa1)
- 1,912,958
384,705 436,430
384,705 2,349,388
823,094 3,671,124
33,128,241 29,457,117
$ 33, 951, 335 $ 33,128, 241
$ 247,338 $ 1,775,189
$ 2,563,585 $ 2,780,676
The accompanying notes are an integral part of these consolidated financial statements.
Page 14
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
CONSOLIDATED STATEMENTS OF CASH FLOWS
December 31, 2012 and 2011
2012
2011
RECONCILIATION OF OPERATING INCOME TO NET CASH
FLOWS FROM OPERATING ACTIVITIES
Operating income
$ 4,014,483 $
4,200,034
Noncash items included in operating income
Depreciation and amortization
5,073,871
5,216,957
Amortization of deferred expenses
-
62,232
Depreciation charged to other accounts
730,384
353,422
Changes in assets and liabilities
Accounts receivable and unbilled revenues
187,709
(440,910)
Materials and supplies
15,734
13,148
Prepaid expenses and other current assets
4,146
(18,519)
Accounts payable
893,277
579,207
Customer deposits
(148,236)
60,030
Other current liabilites
521,855
163,855
NET CASH FLOWS FROM OPERATING ACTIVITIES $ 11,293,223 $ 10,189,456
RECONCILIATION OF CASH AND CASH EQUIVALENTS
TO THE BALANCE SHEET
Operating $ 8,895,390 $ 8,149,507
Designated 11,281,344 9,500,894
Restricted bond funds - current 13,799,258 15,509,694
Restricted bond funds - non -current 2,095,966 2,021,017
Total Cash and Investments 36,071,958 35,181,112
Less: Long-term investments (1,698,880) (1,698,881)
Mark to market adjustment (421,743) (353,990)
TOTAL CASH AND CASH EQUIVALENTS $ 33,951,335 $ 33,128,241
The accompanying notes are an integral part of these consolidated financial statements.
Page 15
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2012 and 2011
NOTES TO FINANCIAL STATEMENTS
NOTE 1 — ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. ORGANIZATION
The Truckee Donner Public Utility District (the District) was formed and operates under the State of
California Public Utility District Act. The District is governed by a board of directors which consists of five
elected members. The District provides electric and water service to portions of Nevada and Placer
Counties described as Truckee. The electric and water service operations are separately maintained and
operated. These financial statements reflect the combined electric and water operations of the District. All
significant transactions between electric and water operations have been eliminated. These eliminations
include power purchases and rent for shared facilities.
The District's blended component units consist of organizations whose respective governing boards are
comprised entirely of the members of the District's Board of Directors. These organizations are reported
as if they are a part of the District's operations. The entities are legally separate, however, in the case of
the Truckee Donner Public Utility District Financing Corporation, financial support has been pledged and
financial and operational policies may be significantly influenced by the District. The following is a
description of the District's blended component units:
Truckee Donner Public Utility District Financing Corporation is a legal entity that was created to
issue and administer Certificates of Participation on behalf of the District. (See note 5).
Truckee Donner Public Utility District Community Facilities District No. 03-1 (Old Greenwood) is a
legal entity created to issue special tax bonds to finance various public improvements needed to
develop property located within Old Greenwood. (See note 7).
Truckee Donner Public Utility District Community Facilities District No. 04-1 (Gray's Crossing) is a
legal entity created to issue special tax bonds to finance various public improvements needed to
develop property located within Gray's Crossing. (See note 7).
Separate standalone financial statements are not available for the blended component units
described above. Unless noted, disclosures relating to the component units are the same as for
the District.
B. ACCOUNTING POLICIES
The financial statements of the District have been prepared in conformity with accounting principles
generally accepted in the United States of America. The Governmental Accounting Standards Board
(GASB) is the accepted standard setting body for establishing governmental accounting and financial
reporting principles.
The financial statements are reported using the economic resources measurement focus and the accrual
basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and
expenses are recorded when the liability is incurred or economic asset used. Revenues, expenses,
gains, losses, assets and liabilities, that are a result of exchange and exchange like transactions, are
recognized when the exchange takes place.
The District follows all pronouncements of the GASB, and has elected not to follow Financial Accounting
Standards Board (FASB) pronouncements issued after November 30, 1989.
Page 16
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2012 and 2011
NOTE 1 — ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. USE OF ESTIMATES
Preparation of financial statements in conformity with accounting principles generally accepted in the
United States of America requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
D. DESIGNATED ASSETS
The board has designated certain resources for future capital projects, replacements and operational
needs.
E. RESTRICTED ASSETS
Restricted assets are assets restricted by the covenants of long-term financial arrangements or other third
party legal restrictions. Restricted assets are used in accordance with their requirements and where both
restricted and unrestricted resources are available for use, restricted resources are used first and then
unrestricted as they are needed.
F. ACCOUNTS RECEIVABLE AND ALLOWANCES FOR DOUBTFUL ACCOUNTS
Accounts receivable are recorded at the invoiced amount and are reported net of allowances of $101,811
and $88,845 for 2012 and 2011, respectively.
G. MATERIALS AND SUPPLIES
Materials and supplies are recorded at average cost.
H. UNAMORTIZED FINANCING COSTS
Certain costs related to borrowing funds are amortized over the term of the related borrowings using the
effective interest method.
I. SPECIAL ASSESSMENT RECEIVABLE
Special assessments represent amounts due from property owners within the Donner Lake Assessment
District for improvements made by the District pursuant to an agreement with the property owners to
improve their water quality as discussed in note 8.
Page 17
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2012 and 2011
NOTE 1 — ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
J. DEFERRED CHARGES
In 2003, the District entered into a broadband dark fiber maintenance agreement with Sierra Pacific
Communications (SPC) which is included in other deferred outflows on the accompanying Statement of
Net Position. SPC subsequently assigned the agreement to AT&T. The agreement is expected to provide
benefit to the District over the estimated 20-year life of the agreement. (See note 4).
In 2011, the District refinanced an existing $7.8 million pension side fund obligation for its participation in
CalPERS. (See notes 5 and 9(B)). Prior to 2011, the annual side fund payments were expensed and
described in the Notes to Financial Statements. The pension liability was not required to be reported on
the District's Statement of Net Position, but the future pension expense was included in budget and rate
calculations. This pension obligation will be deferred through 2022.
K. CAPITAL ASSETS
Capital assets are generally defined by the District as assets with an initial, individual cost of more than
$10,000 and an estimated useful life of at least two years.
Capital assets of the District are stated at the lower of cost or the fair market value at the time of
contribution to the District. Major outlays for plant are capitalized as projects are constructed.
Depreciation on capital assets is calculated using the straight-line method over the estimated useful lives
of the assets, which are as follows:
Distribution Plant
Electric 23 — 35 years
Water 15 — 40 years
Computer software and hardware 3 — 7 years
Building and improvements 20 — 33 years
Equipment and furniture 4 — 10 years
It is the District's policy to capitalize interest paid on debt incurred for significant construction projects
while those projects are under construction, less any interest earned on related unspent debt proceeds.
No new debt related to capital assets was issued in 2011 and 2012; no interest was capitalized in 2011 or
in 2012.
L. COMPENSATED ABSENCES
Under terms of employment, employees are granted sick leave and vacations in varying amounts. Only
benefits considered to be vested are disclosed in these statements. Vested vacation and sick leave pay
is accrued when earned in the financial statements. The liability is liquidated from general operating
revenues of the utility.
M. REVENUE RECOGNITION
The District records estimated revenues earned, but not billed to customers, as of the end of the year.
Revenues are recorded as meters are read on a cycle basis throughout each month for electric and water
customers. Unbilled revenues, representing estimated consumer usage for the period between the last
meter reading and the end of the period, are accrued in the period of consumption. Water customers
without meters are billed on a flat -rate basis, and revenues are recorded as billed. Revenues from
connection fees are recognized upon completion of the connection. Income that the District has earned
through investing its excess cash is reflected within income from investments when earned.
Page 18
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2012 and 2011
NOTE 1 — ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
N. REVENUE AND EXPENSE CLASSIFICATION
The District distinguishes operating revenues and expenses from non -operating items in the preparation
of its financial statements. Operating revenues and expenses generally result from providing electric and
water services in connection with the District's principal ongoing operations. The principal operating
revenues are sales to customers. The District's operating expenses include power purchases, labor,
materials, services, and other expenses related to the delivery of electric and water services. All revenues
and expenses not meeting this definition are reported as non -operating revenues and expenses, or
capital contributions.
O. POWER PURCHASES AND TRANSMISSION
In 1999, the District entered into an agreement with Sierra Pacific Power Company dba NV Energy
(SPPC), whereby SPPC will provide transmission services to the District through December 31, 2027. In
addition, the District purchases scheduling services from Northern California Power Agency (NCPA).
These purchases of services represented 8.2% and 8.5% of total purchased power costs in 2012 and
2011, respectively.
Beginning January 1, 2005, the District entered into an agreement with the Western Area Power
Administration (WAPA). In accordance with this agreement, the District is entitled to an allocation of
power generated by the WAPA system. Because delivery of the power from WAPA to the District is
difficult, the District assigns the power from WAPA to NCPA. The scheduler then uses the value of this
power to offset power purchases from the Utah Associated Municipal Power System (UAMPS) or other
deliverable power purchases.
In December of 2005, the District entered into an agreement with UAMPS. Subsequently, the District
entered into many pooling appendices for power capacity and energy that relate to various time periods
from January 2008 through March 2028. Also in 2009, the District signed an agreement with UAMPS for
approximately 5 MW of the Nebo natural gas generation plant capacity.
In 2012 and 2011, the UAMPS contract, along with its appendices, and the WAPA contract comprised the
majority of a diversified power portfolio that balanced risk and cost for the District.
P. INCOME TAXES
As a government agency, the District is exempt from payment of federal and state income taxes.
Q. TAX REVENUES
Beginning in 2004, the District levied ad valorem property tax on all the taxable property within the Old
Greenwood District in an amount sufficient to pay the yearly principal and interest on the Special
Assessment District Tax Bonds. (See notes 5 and 7). The District had revenues of $878,950 in 2012 and
$933,545 in 2011.
Beginning in 2005, the District levied ad valorem property tax on all taxable property within the Gray's
Crossing District in an amount sufficient to pay the yearly principal and interest on the Special
Assessment District Tax Bonds. (See notes 5 and 7). The District levied ad valorem taxes of $2,431,887
in 2012 and $2,360,333 in 2011.
Taxes are assessed based on the county tax year ending June 30, resulting in unearned revenues for
each of the community facility districts. (See note 6).
Page 19
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2012 and 2011
NOTE 1 — ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
R. CONTRIBUTED CAPITAL ASSETS
A portion of the District's capital assets have been obtained through amounts charged to developers for
plant constructed by the District; direct contributions of capital assets from developers and other parties;
as well as assessments of local property owners. These items are recognized within capital assets as
construction is completed for plant constructed by the District based on the cost of the items, when
received for contributed capital assets based on the actual or estimated fair value of the contributed
items, or upon completion of the related project for development agreements. The District records
amounts received within capital contributions when a legally enforceable claim is established. Until the
District meets the criteria to record the amounts described above as capital contributions, any amounts
received are recorded within unearned revenues on the statement of net position.
S. RECENT ACCOUNTING PRONOUNCEMENTS IMPLEMENTED BY THE DISTRICT
In November 2010, GASB issued Statement No. 61, "The Financial Reporting Entity - Omnibus — An
Amendment of GASB Statements No. 14 and No. 34." This statement modifies GASB Statement 34
requirements for inclusion of component units and amends criteria for reporting of component units. The
statement also clarifies the reporting of equity interests in legally separate organizations. This statement
is effective for periods beginning after June 15, 2012. The District has elected to early implement GASB
Statement No. 61 and its impact is not material.
In June 2011, GASB issued Statement No. 63, "Financial Reporting of Deferred Outflows of Resources,
Deferred Inflows of Resources, and Net Position." This statement provides a new statement of net
position format to report all assets, deferred outflows of resources, liabilities, deferred inflows of
resources, and net position (which is the net residual amount of the other elements). This statement also
provides guidance on reporting deferred inflows and outflows of resources and standardizes the
presentation of deferred inflows and outflows of resources and their effect on a government's net position.
Deferred outflows of resources are defined as the consumption of net assets in one period that are
applicable to future periods and deferred inflows of resources are the acquisition of net assets that are
applicable to future reporting periods. The components of net position are classified as investments in
capital assets — net of related debt, restricted, and unrestricted. Unrestricted indicates the funds are
available for operations, while restricted funds are the result of bond covenants, Board action, or other
commitments.
This statement requires that deferred outflows of resources and deferred inflows of resources be reported
separately from assets and liabilities, and to reflect the residual measure in the statement of financial
position as net position, rather than net assets. This statement is effective for the District beginning in
2012. The District has reformatted its Consolidated Balance Sheets to reflect the new presentation and
terminology required by this statement. Major changes include renaming the Consolidated Balance
Sheets to Consolidated Statements of Net Position, and the Consolidated Statements of Revenues,
Expenses and Changes in Net Assets to the Consolidated Statements of Revenues, Expenses and
Changes in Net Position. Former calculations of net asset classifications have been modified to present
the components of net position.
Page 20
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2012 and 2011
NOTE 1 — ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
T. ACCOUNTING PRONOUNCEMENTS TO BE IMPLEMENTED IN UPCOMING YEARS
In March 2012, GASB issued Statement No. 65, "Items Previously Reported as Assets and Liabilities."
This statement establishes accounting and financial reporting standards that reclassify certain items
previously reported as assets and liabilities as deferred outflows or deferred inflows of resources, or as
outflows or inflows of resources. This statement also limits the use of the term deferred in presentations.
This statement is effective for the District beginning 2013. The District has elected not to early implement
GASB Statement No. 65, but does not believe that its impact will be material.
In June 2012, GASB issued Statement No. 68, "Accounting and Financial Reporting for Pensions — An
Amendment of GASB Statement No. 27." The primary objective of this statement is to improve accounting
and financial reporting by state and local governments for pensions. This statement establishes standards
for measuring and recognizing liabilities, deferred outflows and deferred inflows of resources, and
expenses. For defined benefit pensions, this statement identifies the methods and assumptions that
should be used to project benefit payments, discount projected benefit payments to their actuarial present
value, and attribute that present value to periods of employee service. Note disclosure and required
supplementary information requirements about pensions also are addressed. This statement is effective
for the District beginning 2015. The District has elected not to early implement GASB Statement No. 68
and has not determined its effect on the District's financial statements.
U. RECLASSIFICATION
Certain amounts in the 2011 Financial Statements have been reclassified in order to conform to the 2012
presentation.
V. ASSEMBLY BILL 32
California Assembly Bill 32 (AB32) is an effort by the State of California to set a 2020 greenhouse gas
(GHG) emissions reduction goal into law. The goal is to reach a statewide emission limit of 427 million
metric tons of carbon dioxide equivalent of greenhouse gases (GHG). Central to this initiative is the
implementation of a cap and trade program, which covers major sources of GHG emissions in the State
including power plants. The cap and trade program includes an enforceable emissions cap that will
decline over time. The State will distribute allowances, which are tradable permits. Sources under the cap
will need to surrender allowances and offsets equal to their emissions at the end of each compliance
period. The District is subject to AB32 and has excess allowances due to reducing carbon -based
generation in its power portfolio.
In 2012, the District sold its excess allowances in the first program auction and will use the proceeds in
qualified renewable purchased power. The District is monitoring legislation and proposed programs that
would impact AB32.
Page 21
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2012 and 2011
NOTE 2 — CASH, CASH EQUIVALENTS, AND INVESTMENTS
Cash, cash equivalents and investments are recorded in accounts as either restricted or unrestricted as
required by the District's certificates of participation indentures or other third -party legal restrictions.
Restricted assets represent funds that are restricted by certificates of participation covenants or third
party contractual agreements. Assets that are allocated by resolution of the Board of Directors are
considered to be board designated assets. Board designated assets are a component of unrestricted
assets as their use may be redirected at any time by approval of the Board. Upon Board approval, assets
from board designated accounts may be used to pay for selected capital projects. Such accounts have
been designated by the Board for the following purposes:
Electric Capital Replacement
Starting in 2009, the Board has set aside funds designated for future electric infrastructure
replacement.
Electric Vehicle Reserve
Beginning in 2009, the Board set aside funds designated for future electric utility vehicle
replacements.
Electric Rate Reserve
In compliance with Board rules, the District has created an electric rate stabilization fund in
anticipation of future costs. During both 2012 and 2011, there was no utilization of these funds to
offset increased power costs in lieu of raising electric rates.
Reserve for Future Meters
Prior to 1992, connection fees charged to applicants for water service included an amount, which
was maintained in a designated fund, to offset the cost of future metering. In 2008, the Board
adopted an ordinance to charge a $5 monthly surcharge to all customers of treated water
beginning January 2009 through December 2013. Water meters and automated meter reading
devices are being installed, and customers will be billed volumetrically in accordance with
California Assembly Bill 2572. As meters are installed, these funds are used to pay for related
costs.
Water Capital Replacement
Starting in 2006, the Board has set aside a portion of water revenues designated for future water
infrastructure replacement.
Water Vehicle Reserve
Beginning in 2009, the Board set aside funds designated for future water utility vehicle
replacements.
Prepaid Connection Fees
In compliance with Board rules, the District has set aside prepaid connection fees to cover
installation costs of water services.
Page 22
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2012 and 2011
NOTE 2 — CASH, CASH EQUIVALENTS, AND INVESTMENTS (Continued)
Debt Service Coverage Fund
Effective 2007, the Board has voluntarily set aside a portion of the water rates to improve the
cash -to -debt -service ratio.
Donner Lake Assessment District Surcharge Fund
The District established a monthly billing surcharge in the amount of $6.65 applicable to
customers in the Donner Lake area to provide revenue to pay the remainder of the cost of
reconstruction effective October 2006.
As of December 31, board designated accounts consisted of the following:
Electric capital replacement fund
Electric vehicle reserve
Electric rate reserve
Reserve for future meters
Water capital replacement fund
Water vehicle reserve
Prepaid connection fees
Debt service coverage fund
Donner Lake Assessment District surcharge fund
Totals
2012
2011
$ 1,184,854
$ 11,606
305,722
166,772
2,665,059
2,384,084
682,804
426,169
2,975,677
3,388,950
47,156
57,585
81,769
81,479
3,287,116
2,940,454
51,187
43,795
$ 11,281,344 $ 9,500,894
Certain assets have been restricted by bond covenants or third party contractual agreements for the
following purposes:
Certificates of Participation: Electric
The terms of the Electric Division's Certificates of Participation require a reserve fund as security
for each principal and interest payment as they come due. A reserve fund is set aside as
prescribed in the loan documents. These reserve funds are held by Bank of New York Mellon
Trust Company.
Certificates of Participation: Water
The terms of the Water Division's Certificates of Participation require a reserve fund as security
for each principal and interest payment as they come due. A reserve fund is set aside as
prescribed in the loan documents. These reserve funds are held by Bank of New York Mellon
Trust Company.
Special Tax Bonds: Gray's Crossing and Old Greenwood
The terms of the special tax bonds issued for the Mello -Roos Community Facilities Districts
require reserve funds as security for each principal and interest payment as they come due.
Reserve funds are set aside as prescribed in the loan documents. These reserve funds are held
by Bank of New York Mellon Trust Company.
Page 23
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2012 and 2011
NOTE 2 — CASH, CASH EQUIVALENTS, AND INVESTMENTS (Continued)
Facilities Fees
The District charges facilities fees to applicants for new service to cover the costs of infrastructure
needed to meet their systems demand. The use of such funds is restricted by California state law.
Department of Water Resources (DWR) Prop 55 Reserve Fund
Regulations relating to the Department of Water Resources loan require the accumulation of a
reserve fund as security for each principal and interest payment as they come due. Annual
payments into the fund were required for each of the first ten years beginning April 1, 1996. The
total reserve fund equals two semi-annual payments and was fully funded during 2006. These
funds will be set aside for the life of the borrowed amount. All of the reserve funds are invested in
the State of California Local Agency Investment Fund.
Glenshire Escrow Account
The District received cash and other assets as part of its acquisition of the Glenshire Mutual
Water Company. Also, the District will continue to receive a monthly water system upgrade
surcharge from Glenshire residents until November 30, 2017. This cash is utilized to pay the
installment loan related to the Glenshire water system improvements as specified in the terms of
the acquisition agreement.
In 2011, the District sold a parcel from the Glenshire Mutual Water Company assets. The net
proceeds of $294,940 were transferred to the Glenshire Escrow Account and the monthly water
system upgrade surcharge was reduced from $10.75 to $4.75.
Donner Lake Special Assessment District Improvement Fund
The District established the Donner Lake Special Assessment District (DLAD) Improvement Fund
to account for all funds received from the Special Assessment Receivable, which will be used to
pay the debt service costs related to the Donner Lake Water System project. The DLAD
Improvement Fund also has a reserve fund as required by the California — Safe Drinking Water —
State Revolving Fund (SRF). This fund is required to set aside $40,043 semi-annually for ten
years beginning in 2006.
2006 COP Water System Project Fund
During 2006, the District issued $26.6 million in water Certificates of Participation (2006 COP)
(see note 5), the proceeds of which were used in part for future water system replacement. The
District established the Water System Project Fund to account for the unspent bond proceeds.
The District was allowed to draw upon such funds as valid construction costs are incurred. The
final payments for the 2006 COP Water System Project were made in 2012.
Page 24
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2012 and 2011
NOTE 2 — CASH, CASH EQUIVALENTS, AND INVESTMENTS (Continued)
Solar Initiative Fund
The California Solar Initiative Senate Bill 1 (SB1) was enacted in 2006, mandating that all
publicly -owned electric utilities within the State of California, prepare, adopt and implement a
solar rebate program by January 2008 to encourage its customers to install solar energy systems.
In 2007, the Board adopted a rebate program effective January 2008, targeting $177,400
annually over ten years to be used as rebates for the installation of solar electricity systems and
to raise these funds through a customer surcharge.
AB 32 Cap and Trade Auction Fund
In 2006, the Legislature passed Assembly Bill 32 (AB 32), also known as the Global Warming
Solutions Act which commits California to reduce its greenhouse gas emissions to 1990 levels by
2020. Part of AB 32 is the Cap and Trade program that requires businesses that emit more than
25,000 metric tons of carbon dioxide to obtain an allowance to emit carbon.
The District electric utility is identified as an "Electric Distribution Utility" under the Cap and Trade
regulations and is therefore eligible to receive a direct allocation of allowances that can be sold in
an auction. The proceeds in this fund are from the quarterly allowance auctions. These funds
are intended to mitigate the burden on the consumer without impacting a carbon price signal.
Other (Area Improvement Funds)
The District received funds from the County of Nevada, which are to be used only for
improvements to specific areas within the District's boundaries in Nevada County. These areas
include various Nevada County assessment districts.
When both restricted and unrestricted resources are available for use, it is the District's policy to use
restricted resources first, then unrestricted resources as they are needed.
As of December 31, restricted cash and cash equivalents and investments consisted of the following:
Certificates of Participation
Special tax bonds
Facilities fees
DWR-Prop 55 reserve fund
Glenshire escrow accounts
Donner Lake Special Assessment District improvement
Donner Lake Special Assessment District reserve fund
2006 COP Water System Project fund
Solar Initiative
AB 32 Cap and Trade Auction fund
Other (area improvement funds)
Total Restricted Cash and Cash
Equivalents and Investments
2012
2011
$ 5,928,985
$ 7,714,106
4,618,483
4,607,396
742,328
991,254
309,482
308,346
418,036
498,719
2,651,050
2,556,368
560,903
481,130
-
22,023
302,022
230,028
242,160
-
121.775
1?1.341
$ 15,895,224 $ 17,530,711
Page 25
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2012 and 2011
NOTE 2 — CASH, CASH EQUIVALENTS, AND INVESTMENTS (Continued)
Cash and investments are comprised of the following cash and cash equivalents and investments as of
December 31:
Cash and cash equivalents
Mark to market adjustment
Investments — government bonds
Totals
2012 2011
$ 33,951,335
$ 33,128,241
421,743
353,990
1,698,880
1,698,881
$ 36,071,958
$ 35,181,112
Cash and cash equivalents were $33,951,335 and $33,128,241 at December 31, 2012 and 2011,
respectively. Cash equivalents substantially consist of investments in the state pooled fund, money
market funds and government bonds. For purposes of the statements of cash flows, the District considers
all highly liquid instruments with original maturities of three months or less to be cash equivalents.
Adjustments necessary to record investments at market value are recorded in the operating statement as
increases or decreases in investment income. Market values may have changed significantly after year
end.
INVESTMENTS AUTHORIZED BY THE DISTRICT'S INVESTMENT POLICY
The District adopted an investment policy in 2006 which allowed for investments in instruments permitted
by the California Government Code and/or the investments permitted by the trust agreements on District
financing, including investments in the local government investment fund pool administered by the State
of California (LAIF). The District's investment policy contains provisions intended to limit the District's
exposure to interest rate risk, credit risk, and concentration of credit risk. At December 31, 2012 and 2011
the District's deposits and investments were held as follows:
2012
2011
Cash on hand
$ 1,900
$ 1,900
Deposits
785,992
690,265
LAIF
27,388,261
24,706,598
Money Market Funds
6,196,926
8,083,468
Government Bonds
1,698,880
1,698,881
Totals
$ 36,071,959
$ 35,181,112
Page 26
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2012 and 2011
NOTE 2 — CASH, CASH EQUIVALENTS, AND INVESTMENTS (Continued)
DISCLOSURES RELATING TO INTEREST RATE RISK
Interest rate risk is the risk that changes in the market interest rates will adversely affect the fair value of
an investment. Generally, the longer the maturity of an investment, the greater is the sensitivity of its fair
value to changes in market interest rates. Information about the sensitivity of the fair values of the
District's investments to market interest rate fluctuations is provided by the following table that shows the
District's investments by maturity for 2012 and 2011:
Investment Maturity
LAIF
3 months or less
Federated U.S. Treasury Cash Reserve
3 months or less
Fidelity Institutional Prime
3 months or less
Fidelity Money Market
3 months or less
Goldman Sachs Tax Free Money Market Fund
3 months or less
Federal Farm Credit Banks
03/02/2021
DISCLOSURES RELATING TO CREDIT RISK
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of
the investment. This is measured by the assignment of a rating by a nationally recognized statistical
rating organization. LAW does not have a rating provided by a nationally recognized statistical rating
organization. The Fidelity Money Market is also not rated. The Fidelity Institutional Prime is rated AAAm
by S&P and Aaa by Moody's. The Federated U.S. Treasury Cash Reserve is rated AAAm by S&P and
Aaa-mf by Moody's. Federal Farm Credit Banks is rated AA+ by S&P and Aaa by Moody's. Goldman
Sachs Financial Square Government Tax Free Fund is rated Aaa-mf by Moody's and AAAm by S&P.
CUSTODIAL CREDIT RISK
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial
institution, a government will not be able to recover its deposits or will not be able to recover collateral
securities that are in the possession of an outside party. The District's investment policy does not contain
legal or policy requirements that would limit the exposure to custodial credit risk for deposits. However,
the California Government Code requires that a financial institution secure deposits made by state or
local governmental units by pledging securities in an undivided collateral pool held by a depository
regulated under state law (unless waived by the government unit). The market value of pledged
securities in the collateral pool must equal at least 110% of the total amount deposited by the public
agencies.
Page 27
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2012 and 2011
NOTE 2 — CASH, CASH EQUIVALENTS, AND INVESTMENTS (Continued)
CUSTODIAL CREDIT RISK (CONTINUED)
As of December 31, 2012 and 2011 all deposits were fully insured or collateralized.
The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g.,
broker/dealer) to a transaction, a government will not be able to recover the value of its investment or
collateral securities that are in the possession of another party. The California Government Code and the
District's investment policy do not contain legal or policy requirements that would limit the exposure to
custodial credit risk for investments. With respect to investments, custodial credit risk generally applies
only to direct investments in marketable securities. Custodial credit risk does not apply to a local
government's indirect investment in securities through the use of mutual funds or governmental
investment pools (such as LAIF).
INVESTMENT IN STATE INVESTMENT POOL
The District is a voluntary participant in the Local Agency Investment Fund (LAIF). This investment fund
has an equity interest in the State of California's (State's) Pooled Money Investment Account (PMIA).
PMIA funds are on deposit with the State's Centralized Treasury System and are managed in compliance
with the California Government Code according to a statement of investment policy which sets forth
permitted investment vehicles, liquidity parameters, and maximum maturity of investments. The fair value
of the District's investment in this pool is reported in the accompanying financial statements at amounts
based upon the District's pro-rata share of the fair value provided by the LAIF for the entire LAIF portfolio
(in relation to the amortized cost of the portfolio). The balance available for withdrawal is based on the
accounting records maintained by the LAIF, which are recorded on an amortized cost basis.
Page 28
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2012 and 2011
NOTE 3 — CAPITAL ASSETS
Capital assets consist of the following at December 31, 2012 and 2011:
January 1,
December 31,
2012
Additions
Reductions
2012
Electric distribution facilities
$ 46,895,993
$ 1,991,119
$ (602,472)
$ 48,284,640
Water distribution facilities
102,184,801
376,002
(1,550,007)
101,010,796
General plant
11,709,866
476,982
(224,142)
11,962,706
160,790,660
2,844,103
(2,376,621)
161,258,142
Less: Accumulated depreciation
(42,699,978)
(5,366,969)
1,964,943
(46,102,004)
Construction work in progress
3,827,711
14,666,728
(13,899,973)
4,594,466
Land held for future use
-
-
-
Totals
$ 121,918,393
$ 12,143,862
$ (14,311,651)
$ 119,750,604
January 1,
December 31,
2011
Additions
Reductions
2012
Electric distribution facilities
$ 42,895,235
$ 4,064,797
$ (64,039)
$ 46,895,993
Water distribution facilities
91,627,643
10,573,081
(15,923)
102,184,801
General plant
11,751,073
688,712
(729,919)
11,709,866
146,273,951
15,326,590
(809,880)
160,790,661
Less: Accumulated depreciation
(37,979,543)
(5,453,483)
733,048
(42,699,978)
Construction work in progress
13,488,564
4,181,758
(13,842,611)
3,827,711
Land held for future use
288,663
24,901
(313,564)
-
Totals
$ 122,071,635
$ 14,079,766
$ (14,233,007)
$ 121,918,394
As of December 31, 2012 and 2011, the plant in service included land and land rights, $2,622,946 and
$1,876,099 respectively, which is not being depreciated.
A portion of the plant has been contributed to the District. When replacement is needed, the District
replaces the contributed plant with District -financed plant.
At the end of 2011, there were open contracts with one contractor totaling $0.2 million. All completed
work was paid or accrued, and recorded in construction work in progress. There were no open contracts
at the end of 2012.
Page 29
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2012 and 2011
NOTE 4 — TELECOMMUNICATION SERVICES
In 1999, the District initiated a project to expand their basic service offerings to include internet access,
cable television and voice delivered over fiber optic networks (the broadband project). The District has
completed the broadband design project and obtained the necessary regulatory approvals and franchises
needed to construct and launch the broadband project. Expenses incurred by the District to date on the
broadband project total $2,834,079 of which $496,990 is included in capital assets on the accompanying
statement of net position. During 2012 and 2011, there were no material expenditures for this project.
A local cable television service provider filed an objection in September 2004 with the Nevada County
Local Agency Formation Commission (LAFCO), the entity responsible for providing regulatory approval
for the broadband project. After denying the cable television provider's request for a reconsideration of
their approval of the District's project, the cable television provider filed a lawsuit against LAFCO. The
District was not named in the lawsuit. A ruling on the lawsuit was received in January 2006. LAFCO
prevailed on all portions of the cable television provider's claim. The cable television provider filed an
appeal, however, in June of 2007, the Court ruled in favor of LAFCO, upholding the initial ruling. Since
2009, the District has been exploring options to sell or lease the existing infrastructure to provide a return
on investment in the project.
Page 30
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2012 and 2011
NOTE 5 — LONG-TERM DEBT
Long-term debt consisted of the following at December 31, 2012:
January 1,
December 31,
Due within
2012 Additions
Reductions
2012
one year
Certificates of Participation —
Electric, 2.5% to 5.75%,
due serially to 2013 $
6,410,526 $
$ (3,125,526)
$ 3,285,000
$ 3,285,000
Pension Obligation Bonds
Electric, 5%
due semi-annually
7,618,000
(428,000)
7,190,000
479,000
State Revolving Fund Loan —
Water, 2.34%, due semi-annually
beginning in 2006 to 2026.
9,799,386
(574,889)
9,224,497
588,421
Special Tax Bonds — Mello
Roos, 2.25% to 5.7%, due
serially to 2013 (net of
unamortized discounts of
$95,414).
11,792,833
(123,247)
11,669,586
155,000
Special Tax Bonds — Mello
Roos, 3.25% to 5.7%,
due serially to 2035 (net of
unamortized discounts of
$235,026).
14,859,993
(100,019)
14,759,974
140,000
Special Tax Bonds — Mello
Roos, 3.50% to 5.50%,
due serially to 2035 (net of
unamortized discounts of
$159,580).
18,490,093
(169,673)
18,320,420
210,000
Certificates of Participation —
Water, 4.00% to 5.00%,
due serially to 2036 (net of
unamortized discounts of
$91,879, premiums of
$411,417 and arbitrage of
23,153,402
(896,358)
22,257,044
905,000
$7, 507).
Department of Water Resources,
3.18%, due semiannually to
2021, secured by real
and personal property.
2,496,270
(228,910)
2,267,360
236,355
Installment loans, 5.4% to 6.23%,
various payment terms and
due dates, secured by
equipment.
1,835,069
(303,777)
1,531,292
305,057
Totals $
96,455,572 $
$ (5,950,399)
$ 90,505,173
$ 6,303,833
Page 31
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2012 and 2011
NOTE 5 — LONG-TERM DEBT (Continued)
Long-term debt consisted of the following at December 31, 2011:
January 1, December 31, Due within
2011 Additions Reductions 2011 one year
Certificates of Participation —
Electric, 2.5% to 5.75%,
due serially to 2013 (net of
unamortized premiums of
$15,524). $
9,380,741 $ -
$ (2,970,215)
$ 6,410,526
$ 3,110,000
Pension Obligation Bonds
Electric, 5%
due semi-annually
- 7,816,000
(198,000)
7,618,000
428,000
State Revolving Fund Loan —
Water, 2.34%, due semi-annually
beginning in 2006 to 2026.
10,081,855 -
(282,469)
9,799,386
574,890
Special Tax Bonds — Mello
Roos, 2.25% to 5.7%, due
serially to 2013 (net of
unamortized discounts of
$102,167).
11,936,037
(143,204)
11,792,833
130,000
Special Tax Bonds — Mello
Roos, 3.25% to 5.7%,
due serially to 2035 (net of
unamortized discounts of
$250,007).
14,939,941
(79,948)
14,859,993
115,000
Special Tax Bonds — Mello
Roos, 3.50% to 5.50%,
due serially to 2035 (net of
unamortized discounts of
$169,907).
18,629,703
(139,610)
18,490,093
180,000
Certificates of Participation —
Water, 4.00% to 5.00%,
due serially to 2036 (net of
unamortized discounts of
$99,398, premiums of
$445,295 and arbitrage of
24,182,097
(1,028,695)
23,153,402
870,000
$7, 507).
Department of Water Resources,
3.18%, due semiannually to
2021, secured by real
and personal property.
2,718,138
(221,868)
2,496,270
228,910
Installment loans, 5.4% to 6.23%,
various payment terms and
due dates, secured by
equipment.
2,107,875
(272,806)
1,835,069
296,450
Totals $
93,976,387 $ 7,816,000
$ (5,336,815)
$ 96,455,572
$ 5,933,250
Page 32
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2012 and 2011
NOTE 5 — LONG-TERM DEBT (Continued)
On April 3, 2003, the District issued $26,265,000 of Certificates of Participation, the net proceeds of which
were utilized to pay the amounts due to IDACORP for the purchase power contract settlement fees, as
well as to cover the associated costs of issuance. The terms of the new Certificates call for debt service
payments to be made only from the net revenues of the Electric Division. These revenues are required to
be at least equal to 120% of the debt service for each year.
During April 2004, the District obtained financing in the form of a State Revolving Fund Loan, the
proceeds of which were utilized in the replacement of the Donner Lake water system. The District
submitted expenditures to the State for reimbursement of $12,732,965. The semi-annual principal and
interest payments are $400,426 and commenced in 2006. The District is also required to fund a reserve
account by making semi-annual reserve payments in the amount of $40,043 for a 10-year period
beginning in 2006. In 2004, the remaining balance of $12,227,122 was used to pay off the temporary
lines of credit obtained in 2001 and 2002 to fund the Donner Lake project. See note 8 for additional
information.
During December 2003, the Old Greenwood Community Facilities District issued $12,445,000 of Special
Tax Bonds, the net proceeds of which were utilized to finance various public improvements for property
within Old Greenwood. (See note 7). The terms of the Special Tax Bonds call for debt service payments
to be provided solely by taxes levied on and collected from the owners of the taxable land within Old
Greenwood. The bonds are secured by land located within Old Greenwood.
During 2005 and 2004 respectively, the Gray's Crossing Community Facilities District issued $15,375,000
and $19,155,000 of Special Tax Bonds, the net proceeds of which were utilized to finance various public
improvements for property within Gray's Crossing. (See note 7). The terms of the Special Tax Bonds call
for debt service payments to be provided solely by taxes levied on and collected from the owners of the
taxable land within Gray's Crossing. The bonds are secured by land located within Gray's Crossing.
On October 12, 2006, Truckee Donner Public Utility District Financing Corporation issued $26,570,000 of
Certificates of Participation to refund 100% of the outstanding balance of Certificates issued in 1996,
complete the funding of the Donner Lake Assessment District water system, and fund water system
capital improvements The refunding portion of the 2006 COP's, totaling $8,465,000, has an average
interest rate of 4.10%. The refunded 1996 COP's had an average interest rate of 5.41 %. The net
proceeds of $7,500,557 (after payment of $63,733 in underwriting fees, insurance and other issuance
costs) plus an additional $1,315,194 of reserve fund monies were used to prepay the outstanding debt
service requirements on the 1996 COP's. The terms of the Certificates call for payments to be made only
from the net revenues of the Water Division and the debt is secured by this revenue. These revenues are
required to be at least equal to 125% of the debt service for each year.
Under the Safe Drinking Water Bond Law of 1986, the Department of Water Resources provided a
$5,000,000 loan to the District in 1993. The loan was to finance capital improvements to the public water
supply and to reduce water quality hazards. The terms of the loan call for payments to be made only from
the net revenues of the Water Division, which are required to be sufficient to pay the debt service for each
year.
Page 33
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2012 and 2011
NOTE 5 — LONG-TERM DEBT (Continued)
In June 2011, the District refunded (refinanced) an existing $7.8 million pension side fund obligation for its
participation in CalPERS. (See notes 1(J) and 9(B)). Prior to 2011, the annual side fund payments were
expensed and described in the Notes to Financial Statements. The pension side fund liability was
amortized through June 2022 with a 7.75% rate. This liability was not required to be reported on the
District's Statement of Net Position, but the future pension expense was included in budget and rate
calculations. The new refunding rate of 5% reduces the District's annual pension costs by almost
$100,000 through 2022.
As a normal part of its operations, the District finances the acquisition of certain assets through the use of
installment loans. These loans have been used to finance the purchase of vehicles, equipment and
certain water system improvements. There were no additional installment loans in 2011 or in 2012.
Scheduled payments on debt are:
Principal
2013
$ 6,303,833
2014
3,184,097
2015
3,409,830
2016
3,635,919
2017
3,887,823
2018-2022
20,195,373
2023-2027
16,111,273
2028-2032
19,745,000
2033-2037
14,195,000
90,668,148
Plus: Unamortized premiums
411,417
Arbitrage rebate
7,507
Less: Unamortized discounts
(581,899)
Total carrying value
$ 90,505,173
Interest
Total
$ 4,306,814
$ 10,610,647
4,091,247
7,275,344
3,961,459
7,371,289
3,820,715
7,456,634
3,668,517
7,556,340
15,751,632
35,947,005
11,617,779
27,729,055
7,167,175
26,912,175
- 14,195,000
$ 54,385,338 $ 145,053,489
Page 34
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2012 and 2011
NOTE 6 — UNEARNED REVENUES
For transactions that have not yet met revenue recognition requirements, revenues are deferred and
reflected in the accompanying statement of net position. As of December 31, 2012 and 2011, unearned
revenues consist of unearned special assessment revenues, development agreement deposits,
connection fees and other deposits.
Unearned revenues consisted of the following at December 31, 2012 and 2011:
Unearned tax revenues
Development agreement deposits
Connection fees and other deposits
Totals
Unearned tax revenues
Development agreement deposits
Connection fees and other deposits
Totals
January 1,
December 31,
2012
Additions
Reductions
2012
$ 1,628,624
$ 1,682,212
$ (1,628,626)
$ 1,682,210
1,621,811
316,861
(395,510)
1,543,162
1,085,509
384,607
(539,449)
930,667
$ 4,335,944
$ 2,383,680
$ (2,563,585)
$ 4,156,039
January 1,
December 31,
2011
Additions
Reductions
2011
$ 1,628,751 $ 1,628,625 $ (1,628,752) $ 1,628,624
1,748,499 613,864
1,070,147 426,734
$ 4,447,397 $ 2,669,223
NOTE 7 — COMMUNITY FACILITIES DISTRICTS
(740,552) 1,621,811
(411,372) 1,085,509
$ (2,780,676) $ 4,335,944
In order to finance various public improvements needed to develop property within the Town of Truckee,
California, the District formed Community Facilities Districts (CFD), which issued Special Tax Bonds
pursuant to the Mello -Roos Community Facilities Act of 1982, as amended. Accordingly, the Bonds are
special obligations of the respective Community Facilities Districts and are payable solely from revenues
derived from taxes levied on and collected from the owners of the taxable land within the respective
Community Facilities Districts. These Special Tax Bonds are not general or special obligations of the
District. The Board of Directors of the District is the legislative body of the Communities Facilities Districts
and as such they approve the rates and method of apportionment of the special taxes. As improvements
were completed, the infrastructure was donated, in the form of a capital contribution to the Town of
Truckee, the Truckee Sanitary District, Southwest Gas and the District.
In December 2003, the Community Facilities District No. 03-1 (Old Greenwood) was formed and issued
$12,445,000 in Special Tax Bonds (the 03-1 Bonds). During 2012 and 2011 respectively, taxes of
$890,950 and $866,950 were levied by Old Greenwood. Of these amounts, $445,475 and $433,475
relate to 2012 and 2011, and accordingly, are included in tax revenues in the accompanying statement of
revenues, expenses and changes in net position. The remaining amount will be recognized in 2013 and
2012 and are included in unearned revenues on the accompanying statement of net position.
Page 35
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2012 and 2011
NOTE 7 — COMMUNITY FACILITIES DISTRICTS (Continued)
In September 2004, the Community Facilities District No. 04-1 (Gray's Crossing) was formed and issued
$15,375,000 in Special Tax Bonds (the 04-1 Bonds). In 2005, an additional $19,155,000 (2005 Series) in
Special Tax Bonds was issued for the Gray's Crossing CFD. During 2012 and 2011, taxes of $2,473,474
and $2,390,301 respectively were levied by Gray's Crossing. Of this amount, $1,236,737 and $1,195,150
relate to 2012 and 2011, and accordingly, are included in tax revenues in the accompanying statement of
revenues, expenses and changes in net position. The remaining amount will be recognized in 2013 and
2012 and is included in unearned revenues on the accompanying statement of net position.
The official statements and continuing disclosures may be viewed on the web site of Electronic Municipal
Market Access (EMMA) of the Municipal Securities Rulemaking Board (MSRB), http://emma.msrb.org/.
The Committee on Uniform Securities Identification Procedures number (CUSIP) for these special tax
bonds is CUSIP 897817.
NOTE 8 — DONNER LAKE WATER COMPANY AQUISITION
In 2001, the District acquired the Donner Lake Water Company by initiating an eminent domain lawsuit.
As a part of the takeover, the District replaced the entire water system, which cost approximately
$15.6 million and was completed in 2006. The District initially estimated the replacement cost to be
$13 million. The Donner Lake property owners agreed to reimburse the District for the full costs of the
replacement. Therefore, an assessment was placed on each Donner Lake homeowner's property for a
pro-rata share of the $13 million payable immediately or with an option to pay over 20 years. The
assessment is collected by Nevada County and Placer County on behalf of the District and is secured by
the Donner Lake property owners. A monthly $6.65 water system upgrade surcharge is paid by the
Donner Lake customers to reimburse the District for the $2.6 million cost incurred in excess of the
assessment.
In April 2004, the District obtained financing in the form of a State Revolving Fund Loan for $12,732,965
at a rate of 2.34%. The District is required to fund a reserve account by making semi-annual reserve
payments in the amount of $40,043 for a 10-year period.
As of December 31, 2012 and 2011, the assessment receivable from the property owners was
$6,266,286 and $6,870,615 respectively, of which $639,319 and $622,071 is due in the next year. These
amounts are shown as Special Assessments Receivable in the Statement of Net Position. The proceeds
of the assessment and surcharge are placed in the Donner Lake Special Assessment District
Improvement Fund and used to pay the debt service for the water system improvements.
Page 36
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2012 and 2011
NOTE 9 — EMPLOYEE BENEFIT PLANS
A. CALPERS MISCELLANEOUS 2.7% AT 55 RISK POOL PENSION PLAN
The District and bargaining unit employees elected to participate in the Public Agency portion of California
Public Employees' Retirement System (CaIPERS) "Miscellaneous 2% at 60 Risk Pool," effective August
21, 2004. On November 15, 2010, the Board of Directors adopted an amendment to the CaIPERS
Miscellaneous Risk Pool Pension to increase retiree benefits from the 2% at 60 Plan to the 2.7% at 55
Plan, effective January 1, 2011. The employees paid the additional cost through increased payroll
deductions and a relinquishment of a 3% employer match to the deferred compensation plan.
The CaIPERS Miscellaneous 2.7% at 55 Risk Pool is a cost -sharing multi -employer defined benefit plan
administered by CaIPERS, which acts as a common investment and administrative agent for participating
public employers within the state of California. State statutes within the Public Employees' Retirement
Law establish a menu of benefit provisions, as well as other requirements. The District selects optional
benefit provisions from the benefit menu by contract with CaIPERS and adopts those benefits through
local ordinance or resolution. The CaIPERS plan also provides for death and disability benefits. CaIPERS
issues a separate comprehensive annual financial report. Copies of the CaIPERS' comprehensive annual
financial report may be obtained from:
California Public Employees' Retirement System
400 Q Street
P.O. Box 942701
Sacramento, CA 94229-2701
Tel. 888-225-7377
http://www.calpers.ca.gov
Prior to January 2011, active plan participants were required to contribute 7% of their annual covered
salary, of which the District paid 4% on behalf of the participants. Effective January 2011, active
participants are required to contribute 8% of their annual covered salary, of which the District pays 4%.
The District and the employees are also required to contribute the actuarially determined remaining
amounts necessary to fund the benefits for its participants. The required employer contribution rate for
fiscal years ending June 30, 2012 and 2011 was 14.113% and 17.086% of payroll. The 14.113% rate was
equivalent to the scheduled 27.616%, less 13.503% for the pension side fund that was refinanced on
June 30, 2011. The contribution requirements of the plan participants are established by State statute
and the employer contributions rate is established and may be amended by CaIPERS.
The District's annual pension cost (APC) for the years ended December 31, 2012, 2011, and 2010
respectively, was $1,094,372, $1,238,501, and $1,190,116, and was equal to the District's annual
required contributions (ARC) as determined by the June 30, 2011, 2010 and 2009 actuarial valuations
using the entry age normal actuarial cost method with the contributions determined as a percent of
payroll. The actuarial methods and assumptions used are those adopted by the CaIPERS Board of
Administration. Significant actuarial assumptions and methods include:
Actuarial Cost Method Entry Age Normal Cost Method
Amortization Method Level Percent of Payroll
Average Remaining Period 20 Years as of the Valuation Date
Asset Valuation Method 15 Year Smoothed Market
Investment Rate of Return 7.50% (Net of Administrative Expenses)
Projected Salary Increases 3.30%- 14.20%
Inflation 2.75%
Payroll Growth 3.00%
Individual Salary Growth Merit scale varying by duration of employment, annual inflation growth
of 2.75%, and annual production growth of 0.25%
Page 37
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2012 and 2011
NOTE 9 — EMPLOYEE BENEFIT PLANS (Continued)
The plan's unfunded actuarial accrued liability is being amortized as a level percentage of projected
payrolls on an open basis over a period not to exceed 30 years.
Retirement plans like the District's with less than 100 active members are required to participate in a risk
pool. Therefore, the funding progress for the District for the June 30, 2011 and 2010 valuation dates are
for the entire pool, not just the District employees. The following are funding schedules for the current
and former CalPERS pooled pension plans:
Schedule of Pension Plan Funding Progress-2.7%@ 55 (Started Participation January 1, 2011)
Accrued
Actuarial
Unfunded
Funded
Annual
Valuation
Liabilities
Value of
Liabilities
Ratio
Covered
UL as a %
Date
(AL)
Assets (AVA)
(UL)
(AVA/AL)
Payroll
of Payroll
06/30/2009
$2,140,438,884
$1,674,260,302
$ 466,178,582
78.2%
$ 440,071,499
105.9%
06/30/2010
$2,297,871,345
$1,815,671,616
$ 482,199,729
79.0%
$ 434,023,381
111.1%
06/30/2011
$2,486,708,579
$1,981,073,089
$ 505,635,490
79.7%
$ 427,300,410
118.3%
Schedule of Pension Plan Funding Progress - 2%@ 60 (Ended participation December 31, 2010)
Accrued
Actuarial
Unfunded
Funded
Annual
Valuation
Liabilities
Value of
Liabilities
Ratio
Covered
UL as a %
Date
(AL)
Assets (AVA)
(UL)
(AVA/AL)
Payroll
of Payroll
06/30/2009
$ 582,841,869
$ 553,953,526
$ 28,888,343
95.0%
$ 184,319,666
15.7%
06/30/2010
$ 624,423,437
$ 594,492,164
$ 29,931,273
95.2%
$ 186,777,830
16.0%
06/30/2011
$ 682,375,804
$ 639,237,247
$ 43,138,557
93.7%
$ 193,877,169
22.3%
As of July 1, 2012, the District's contribution rate changed from 14.113% to 14.525% of payroll.
B. EXISTING PENSION OBLIGATION - PENSION SIDE FUND
At the time of joining the CalPERS Miscellaneous Risk Pool, an employer side fund was created to
account for the difference between the funded status of the pool and the funded status of the District's
plan. The side fund used the actuarial assumption of a 7.75% investment return and it was amortized on
a closed basis, ending in 2022. On June 30, 2011, the District refinanced the existing $7.8 million
pension side fund obligation with amortized payments through 2022 and a 5% rate. (See notes 1(J) and
5). A portion of the debt service of the existing pension obligation is paid by the employees as a 3.5%
payroll deduction. The remaining debt service is paid by the District and recorded as pension expense;
allocated 63% to the Electric Utility and 37% to the Water Utility. The net side fund pension expense for
the twelve months ending December 31, 2012 was $609,320 and for the six months ending December
31, 2011 was $340,836.
Page 38
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2012 and 2011
NOTE 9 — EMPLOYEE BENEFIT PLANS (Continued)
C. DEFERRED COMPENSATION PLAN
The District maintains two deferred compensation plans: a 401(a) and a 457 plan, (the Plans) for certain
employees. The District has no liability for losses under the Plans, but does have the duty of due care that
would be required of an ordinary prudent investor. The District has not reflected the Plans' assets and
corresponding liabilities (if any) on the accompanying statement of net position.
D. OTHER POST EMPLOYMENT BENEFITS (OPEB)
The District administers a single -employer defined benefit healthcare plan (The Retiree Health Plan).
Contribution requirements and benefit provisions are established through collective bargaining
agreements and may be amended only through negotiations between the District and the Union. The plan
provides health insurance contributions for eligible retirees and their spouses through the District's group
health insurance plan, which covers both active and retired members. Health insurance includes medical
insurance, dental insurance, and prescriptions. The Retiree Health Plan does not issue a publicly
available financial report.
The District began providing post employment health care on January 1, 2000 to all employees, and
qualified dependents, that retire from the District on or after attaining age 60 with service of at least 20
years. As of December 31, 2011, there were eleven active plan participants. The monthly amount paid by
the District is capped at $475 for each participant or $375 for each participant eligible for Medicare. For
participants with less than 20 years of service, the benefit is reduced by 5% for each year. For
participants who retired prior to age 60, the benefit is reduced by 2% for each year. Expenditures for post
employment health care benefits are recognized when premiums are paid.
On November 7, 2007, the Board approved a participation agreement with CalPERS to be the plan
administrator for the District's other post employment benefit (OPEB) trust. The participation agreement
was submitted to CalPERS on November 8, 2007, and became effective on January 15, 2008. At that
time, accumulated deposits from the prior year, plus accrued interest, were transferred to the California
Employers' Retiree Benefit Trust Program (CERBT).
The funds of the Retiree Health Plan are invested in CERBT, which is a tax qualified trust organized
under Internal Revenue Code (IRC) Section 115. Participation in the trust is limited to those agencies who
qualify as "government" entities under that IRC section. The CERBT is an irrevocable trust established for
the purpose of receiving employer contributions to prefund health and other postemployment benefits for
retirees and their beneficiaries. The CERBT administrative costs are financed through investment
earnings. Copies of the CaIPERS' comprehensive annual financial report, that includes CERBT
investment performance, may be obtained from:
California Public Employees' Retirement System
400 Q Street
P.O. Box 942701
Sacramento, CA 94229-2701
Tel. 888-225-7377
http://www.calpers.ca.gov
Page 39
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2012 and 2011
NOTE 9 — EMPLOYEE BENEFIT PLANS (Continued)
The District's annual OPEB expense is calculated based on the ARC, an amount actuarially determined in
accordance within the parameters of GASB Statement No. 45. The ARC represents a level of funding
that, if paid on an ongoing basis, is projected to cover the normal cost each year. The plan's unfunded
actuarial accrued liability is being amortized as a level percentage of projected payrolls on an open basis,
over a period not to exceed 30 years, using the entry age normal cost method.
The following table shows the components of the District's annual OPEB cost, the amount actually
contributed to the plan, and changes in the net OPEB obligation to the Retiree Health Plan:
Annual
%of
Change in
OPEB
Net OPEB
Fiscal
Required
Interest
Annual
Annual
Net OPEB
Obligation Obligation
Year
Contribution
and
OPEB
Actual
OPEB Cost
Obligation
(Asset)
(Asset)
Ended*
(ARC)
Adjustments
Cost
Contribution
Contributed
(Asset)
Beginning
Ending
12/31/2009
$ 203,500
$
$ 203,500
$
202,680
99.6%
$ 820
$ (98,104) $
(97,284)
12/31/2010
$ 207,600
$
$ 207,600
$
212,008
102.1%
$ (4,408)
$ (97,284) $
(101,692)
12/31/2011
$ 271,200
$ 1,322
$ 272,522
$
237,501
87.1%
$ 35,021
$(101,692) $
(66,671)
06/30/2012
$ 276,800
$ 66,671
$ 343,471
$
285,005
83.0%
$ 58,466
$ (66,671) $
(8,205)
*Funding began in 2007. Valuations are required once eery two years. In 2011, the vaulation
date changed to July 1 in compliance with GASB Statement No. 57.
Actuarial valuations of an ongoing plan are required at least once every two years and involve estimates
for the value of reported amounts and assumptions about the probability of occurrence of events far into
the future. Examples include assumptions about future employment, mortality, and the healthcare cost
trend. Amounts determined regarding the funded status of the plan and annual required contributions of
the employer are subject to continual revision as actual results are compared with past expectations and
new estimates are made about the future.
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as
understood by the employer and plan members) and include the types of benefits provided at the time of
each valuation and historical pattern of sharing benefit costs between the employer and plan members to
that point. The methods and assumptions used include techniques that are designed to reduce short-term
volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term
perspective of calculations.
Significant actuarial assumptions include:
Actuarial Cost Method
Discount Rate
General Inflation
Amortization of Unfunded Liability
Projected Unit Credit
7.5%
3% Annual Increase
25 Years; Level Annual Payments
Page 40
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2012 and 2011
NOTE 9 — EMPLOYEE BENEFIT PLANS (Continued)
The following is a funding schedule for the Retiree Health Plan:
Schedule of Retiree Health Plan Funding Progress
Accrued
Actuarial
Unfunded
Funded
Annual
Valuation
Liabilities
Value of
Liabilities
Ratio
Covered
UL as a %
Date*
(AL)
Assets (AVA)
(UL)
(AVA/AL)
Payroll
of Payroll
01/01/2007
$ 1,369,600
$ 198,800
$ 1,170,800
14.5%
$ 4,925,600
23.8%
01/01/2009
$ 1,748,000
$ 230,900
$ 1,517,100
13.2%
$ 5,276,400
28.8%
01/01/2011
$ 2,501,800
$ 645,700
$ 1,856,100
25.8%
$ 6,307,400
29.4%
07/01/2011
$ 2,657,000
$ 661,400
$ 1,995,600
24.9%
$ 6,226,000
32.1%
*Funding began in 2007. Valuations are required once eery two years. In 2011, the vaulation
date changed to July 1 in compliance with GASB Statement No. 57.
NOTE 10 — SELF FUNDED INSURANCE
The District has a self -funded vision insurance program and claims were processed by and on behalf of
the District. The District did not maintain a claim liability; rather claims were expensed as paid. The
amount of claims paid for each of the past three years have not been material.
Page 41
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2012 and 2011
NOTE 11 — SEGMENT DISCLOSURE
The District has issued revenue bonds to finance electric and water distribution facilities. The District also
issued special tax bonds secured by tax revenues from Mello -Roos Community Facilities Districts. Each
project has an external requirement to be reported separately, and investors in the revenue bonds and
special tax bonds rely solely on the revenue generated by the individual projects for repayment. Summary
financial information for each project is presented on the following pages for the years ending December
31, 2012 and 2011.
STATEMENT OF NET POSITION
ASSETS
Current assets
Non -current assets:
Capital assets, net
Restricted assets
Other long-term assets
Total Noncurrent Assets
TOTAL ASSETS
LIABILITIES AND NET POSITION
Current liabilities
Non -current Liabilities
Long-term debt, net of current
portion
Unearned revenues
Total Liabilities
Net Position
December 31, 2012
Gray's Old
Electric Water Crossing Greenwood
41,434,065 78,316,539
- 2,095,966 - -
7,874,549 6,799,792 343,339 159,670
$ 7,749,323 $ 2,705,966 $ 953,910 $ 387,327
6,807,568 33,148,794 32,730,393 11,514,586
Invested in capital assets, net
41,375,462
44,854,690
(32,737,054)
(11,509,916)
of related debt
Restricted for debt service
4,441,721
6,461,573
2,747,811
1,016,824
Unrestricted
5,434,118
15,392,902
2,459,789
897,909
Total Net Position
51,251,301
66,709,165
(27,529,454)
(9,595,183)
TOTAL LIABILITIES
AND NET POSITION
$ 67,887,859
$ 102,958,085
$ 7,391,586
$ 2,752,205
Page 42
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2012 and 2011
NOTE 11 — SEGMENT DISCLOSURE (Continued)
December 31, 2011
Gray's
Old
ASSETS
Electric
Water
Crossing
Greenwood
Current assets
$ 17,591,504
$ 15,899,801
$
6,718,213
$ 2,549,249
Non -current assets:
Capital assets, net
41,035,844
80,882,550
-
-
Restricted assets
-
2,021,017
-
-
Other long-term assets
8,378,619
7,459,211
365,367
170,972
Total Noncurrent Assets
49,414,463
90,362,778
365,367
170,972
TOTAL ASSETS
$ 67,005,967
$ 106,262,579
$
7,083,580
$ 2,720,221
LIABILITIES AND NET POSITION
Current liabilities
$ 6,632,745
$ 3,028,771
$
903,167
$ 364,277
Non -current Liabilities
Long-term debt, net of current
10,653,047
35,151,357
33,055,086
11,662,832
portion
Unearned revenues
2,156,675
550,643
1,195,151
433,475
Total Liabilities
19,442,467
38,730,771
35,153,404
12,460,584
Net Position
Invested in capital assets, net
40,978,938
45,788,507
(32,984,719)
(11,621,860)
of related debt
Restricted for debt service
5,793,876
6,645,790
2,737,118
1,010,223
Unrestricted
790,686
15,097,511
2,177,777
871,274
Total Net Position
47,563,500
67,531,808
(28,069,824)
(9,740,363)
TOTAL LIABILITIES
AND NET POSITION
$ 67,005,967
$ 106,262,579
$
7,083,580
$ 2,720,221
Page 43
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2012 and 2011
NOTE 11 — SEGMENT DISCLOSURE (Continued)
STATEMENTS OF REVENUE, EXPENSES, AND CHANGES IN NET POSITION
Year ended December 31, 2012
Gray's
Old
Electric
Water
Crossing
Greenwood
Operating Revenues
Sales to consumers
$ 20,589,369
$ 9,793,994
$
$
Other operating revenues
2,770,919
1,234,191
Operating expenses
(18,010,608)
(7,289,511)
Depreciation
(1,673,256)
(3,400,615)
Non -operating revenues (expenses)
(311,994)
(1,228,656)
540,370
145,180
Income (loss) before
capital contributions
3,364,430
(890,597)
540,370
145,180
Capital contributions, net
323,371
67,954
-
-
CHANGE IN NET POSITION
3,687,801
(822,643)
540,370
145,180
NET POSITION, BEGINNING
47,563,500
67,531,808
(28,069,824)
(9,740,363)
NET POSITION, ENDING
$ 51,251,301
$ 66,709,165
$ (27,529,454)
$ (9,595,183)
Year ended December 31, 2011
Gray's
Old
Electric
Water
Crossing
Greenwood
Operating Revenues
Sales to consumers
$ 21,106,358
$ 9,946,771
$
$
Other operating revenues
2,718,676
1,283,733
Operating expenses
(18,753,199)
(6,885,349)
Depreciation
(1,659,556)
(3,557,400)
-
Non -operating revenues (expenses)
(446,332)
(117,773)
484,573
199,740
Income (loss) before
capital contributions
2,965,947
669,982
484,573
199,740
Capital contributions, net
1,042,147
1,555,435
-
-
CHANGE IN NET POSITION
4.008.094
2.225.417
484.573
199,740
NET POSITION, BEGINNING
43,555,406
65,306,391
(28,554,397)
(9,940,103)
NET POSITION, ENDING
$ 47,563,500
$ 67,531,808
$ (28,069,824)
$ (9,740,363)
Page 44
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2012 and 2011
NOTE 11 — SEGMENT DISCLOSURE (Continued)
STATEMENTS OF CASH FLOWS
NET CASH PROVIDED BY (USED IN)
Operating activities
Noncapital financing activities
Capital and related financing activities
Investing activities
Net increase (decrease) in cash and
cash equivalents
Cash and Cash Equivalents, Beginning
CASH AND CASH
EQUIVALENTS, ENDING
Year ended December 31, 2012
Gray's Old
Electric Water Crossing Greenwood
$ 7,276,555 $ 4,016,668 $ $ -
(3,986,219) - -
(2,297,957) (4,335,479) (243,426) 8,247
25,222 348,363 6,435 4,685
1,017,601
29,552
(236,991)
12,932
13,580,186
14,122,611
3,754,758
1,670,686
$ 14,597,787
$ 14,152,163
$ 3,517,767
$ 1,683,618
Year ended December 31, 2011
Gray's
Old
Electric
Water
Crossing
Greenwood
NET CASH PROVIDED BY (USED IN)
Operating activities
$ 5,704,742
$ 4,484,714
$
$
Noncapital financing activities
(3,786,723)
-
-
Capital and related financing activities
(1,816,493)
(3,159,654)
(185,931)
81,081
Investing activities
30,744
2,320,690
(8,432)
6,386
Net increase (decrease) in cash and
cash equivalents
132,270
3,645,750
(194,363)
87,467
Cash and Cash Equivalents, Beginning
13,447,916
10,476,861
3,949,121
1,583,219
CASH AND CASH
EQUIVALENTS, ENDING
$ 13,580,186
$ 14,122,611
$ 3,754,758
$ 1,670,686
Page 45
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2012 and 2011
NOTE 12 — MARTIS VALLEY GROUNDWATER STUDY
The Martis Valley aquifer underlies about 35,000 acres in both Placer and Nevada counties, near the
Town of Truckee. It is the main water supply for numerous public and private entities. This area has
seen significant growth in the last few decades with more planned for the future. Maintaining an
adequate water supply and protecting water quality are critical for the region's future.
The Truckee Donner Public Utility District (TDPUD), Northstar Community Services District (NCSD) and
Placer County Water Agency (PCWA) are the three primary public water agencies that depend on the
Martis Valley Basin for their water supply. Together, the TDPUD, NCSD and PCWA (Partnership
Agencies) partnered to update a groundwater management plan and to help develop a groundwater
model for the Martis Valley basin.
The Martis Valley Groundwater Management Plan (GMP) has been updated to reflect current water
resources planning in the region and to incorporate the latest information and understandings of the
underlying groundwater basin. This collaborative effort will provide the guidance necessary to align
groundwater policy. In addition to the updated groundwater management plan, a computer model of the
groundwater basin is being developed, which will incorporate available data and enhance understanding
of the groundwater basin. A climate change modeling component will be part of the final groundwater
model.
Partner agencies each adopted the Groundwater Management Plan (GMP) in February 2012 and the
model is expected to be completed by the end of 2013. The total cost of the project is approximately
$1,000,000, which includes federal funding of approximately $500,000 from the U.S. Bureau of
Reclamation and $250,000 from the Lawrence Livermore National Laboratory; and contributions of
$150,000 from TDPUD and $100,000 from the other members of the Partnership Agencies.
NOTE 13 — CLAIMS AND JUDGMENTS
From time to time, the utility is party to various pending claims and legal proceedings. Although the
outcome of such matters cannot be forecasted with certainty, it is the opinion of management and the
utility's legal counsel that the likelihood is remote that any such claims or proceedings will have a material
adverse effect on the utility's financial position or results of operations.
NOTE 14 — RISK MANAGEMENT
The utility is exposed to various risks of loss related to torts; theft of, damage to, or destruction of assets;
errors and omissions; workers compensation; and health care of its employees. These risks are covered
through the purchase of commercial insurance, with minimal deductibles. Settled claims have not
exceeded the commercial liability in any of the past three years. There were no significant reductions in
coverage compared to the prior year.
NOTE 15 — SUBSEQUENT EVENTS
In 2012, California's Assembly Bill 340 (AB 340) was signed into law by the Governor with the effective
date of January 1, 2013. The District modified its pension plan effective January 1, 2013 to comply with
AB 340. The provisions of AB340 require that the District's current employees, who participate in the
2.7% @ 55 Plan, shall contribute at least 50% of normal cost, up to 8% of their wages. District employees
hired after January 1, 2013, who do not qualify to participate in the 2.7% @ 55 Plan, shall participate in a
new 2% @ 62 Plan and shall pay at least 50% of normal cost, up to 8% of their wages. Additionally,
employees participating in the 2% @ 62 Plan shall have a $110,000 cap on wages eligible for pension
Page 46
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2012 and 2011
calculation. That cap shall be adjusted annually to equal the social security contribution and benefit base.
These changes to the retirement benefits are not expected to materially impact the District's expenses.
Page 47
THIS PAGE IS INTENTIONALLY LEFT BLANK
SUPPLEMENTAL INFORMATION
CONSOLIDATING STATEMENT OF NET POSITION
As of December 31, 2012
ASSETS
CURRENT ASSETS
Funds
Operating
Designated
Restricted
Total Funds
Accounts receivable, net
Unbilled revenues
Accrued interest receivable
Materials and supplies
Prepaid expenses
Other
Total Current Assets
NON -CURRENT ASSETS
Other Non -Current Assets
Restricted funds
Special assessments receivable
Deferred charges
Unamortized debt issue costs
Other
Total Other Non -Current Assets
CAPITAL ASSETS
Utility plant
Accumulated depreciation
Construction work in progress
Total Utility Rant
TOTAL ASSETS
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
SUPPLEMENTAL INFORMATION
December 31, 2012
Component Units
Electric Operations Water Operations Gray's Crossing Old Greenwood Eliminations
$ 5,915,734 $
2,396,754 $
166,046 $
416,856 $
4,155,634
7,125,710
-
-
4,538,767
4,642,008
3,351,721
1,266,762
14,610,135
14,164,472
3,517,767
1,683,618
1,565,650
625,407
3,519,252
907,589
1,744,364
621,289
-
-
7,931
84,900
11,228
1,328
410,762
120,654
-
-
213,161
102,752
27,242
26,314
Totals
$ 8,895,390
11,281,344
13,799,258
33,975,992
6,617,898
2,365,653
105,387
531,416
315,913
53,556
2,095,966 2,095,966
6,266,286 6,266,286
-
533,506 343,339 159,670
1,036,515
7,874,549
- - -
7,874,549
7,874,549
8,895,758 343,339 159,670
17,273,316
56,391,434
104,866,708 - -
161,258,142
(18,099,121)
(28,002,883)
(46,102,004)
3,141,752
1,452,714
4,594,466
41,434,065
78,316,539 - -
119,750,604
$ 67,887,859 $
102,958,085 $ 7,391,586 $ 2,752,205 $
$ 180,989,735
Page 50
LIABILITIES AND NET POSITION
CURRENT LIABILITIES
Other liabilities
Accounts payable
Customer deposits
Other
Total other liabilities
Current liabilities payable from restricted assets:
Current portion of long-term debt
Accrued interest payable
Total Current Liabilities Payable from Restricted Assets
Total Current Liabilities
NON -CURRENT LIABILITIES
Long-term debt, net of discounts, premiums and losses
Installment loans
Unearned revenues
Total non -current liabilities
Total Liabilities
NET POSITION
Invested in capital assets, net of related debt
Restricted for debt service
Unrestricted
Total Net Position
TOTAL LIABILITIES AND NET POSITION
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
SUPPLEMENTAL INFORMATION
December 31, 2012
Component Units
Electric Operations Water Operations Gray's Crossing Old Greenwood Eliminations
Totals
$ 3,102,460 $
48,434 $
$
$
$ 3,150,894
295,617
66,659
362,276
431,598
352,595
784,193
3,829,675
467,688
4,297,363
3,822,602
1,976,230
350,000
155,000
6,303,832
97,046
262,048
603,910
232,327
1,195,331
3,919,648
2,238,278
953,910
387,327
7,499,163
7,749,323
2,705,966
953,910
387,327
11,796,526
6,711,001
32,019,125
32,730,393
11,514,586
82,975,105
96,567
1,129,669
-
1,226,236
2,079,667
394,160
1,236,737
445,475
4,156,039
8,887,235
33,542,954
33,967,130
11,960,061
88,357,380
16,636,558
36,248,920
34,921,040
12,347,388
100,153,906
41,375,462
44,854,690
(32,737,054)
(11,509,916)
41,983,182
4,441,721
6,461,573
2,747,811
1,016,824
14,667,929
5,434,118
15,392,902
2,459,789
897,909
24,184,718
51,251,301
66,709,165
(27,529,454)
(9,595,183)
80,835,829
$ 67,887,859 $
102,958,085 $
7,391,586 $
2,752,205 $
$ 180,989,735
Page 51
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2012
CONSOLIDATING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
For the Year Ended December 31, 2012 Component Units
Electric Operations Water Operations Gray's Crossing Old Greenwood Eliminations Totals
OPERATING REVENUES
Sales to customers
$ 20,589,369 $
9,793,994 $
$
$
$
30,383,363
Water meter surcharge
-
741,209
741,209
Interdepartmental sales
1,267,050
2,318
(1,269,368)
-
Standby fees
25,490
166,135
191,625
Other
1,478,379
324,529
(358,380)
1,444,528
Total Operating Revenues
23,360,288
11,028,185
(1,627,748)
32,760,725
OPERATING EXPENSES
Purchased power
10,571,359
-
10,571,359
Operations and maintenance
3,416,797
4,806,563
(1,269,368)
6,953,992
Consumer services
1,822,042
721,334
2,543,376
Administration and general
2,200,410
1,761,614
(358,380)
3,603,644
Depreciation
1,673,256
3,400,615
5,073,871
Total Operating Expenses
19,683,864
10,690,126
(1,627,748)
28,746,242
Operating Income
3,676,424
338,059
4,014,483
NON -OPERATING REVENUE (EXPENSES)
Special tax revenue
-
-
2,431,887
878,950
3,310,837
Investment income
27,706
414,992
15,816
5,379
463,893
Interest expense
(198,712)
(1,396,762)
(1,820,245)
(700,880)
(4,116,599)
Amortization
(5,967)
(28,731)
(47,336)
(18,056)
(100,090)
Other non -operating revenues
53,464
8,038
61,502
Other non -operating expenses
-
(93,216)
(28,251)
(121,467)
Gain (loss) on disposition of assets
(135,021)
(218,155)
-
-
(353,176)
Total Non -Operating Expenses
(311,994)
(1,228,656)
540,370
145,180
(855,100)
Income Before Contributions
3,364,430
(890,597)
540,370
145,180
3,159,383
CAPITAL CONTRIBUTIONS, net
323,371
67,954
-
-
391,325
CHANGE IN NET POSITION
3,687,801
(822,643)
540,370
145,180
3,550,708
NET POSITION - Beginning of Year
47,563,500
67,531,808
(28,069,824)
(9,740,363)
77,285,121
NET POSITION - END OF YEAR
$ 51,251,301 $
66,709,165 $
(27,529,454) $
(9,595,183) $
$
80,835,829
Page 52
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2012
CONSOLIDATING STATEMENT OF CASH FLOWS
For the Year Ended December 31, 2012 Component Units
Electric Water Gray's
Operations Operations Crossing Old Greenwood Eliminations Total
CASH FLOWS FROM OPERATING ACTIVITIES
Received from customers
$ 23,301,282 $
11,126,665 $
$ $ (1,627,748) $ 32,800,199
Paid to suppliers for goods and services
(12,519,549)
(4,959,843)
1,627,748 (15,851,644)
Paid to employees for services
(3,505,178)
(2,150,154)
(5,655,332)
Net Cash Flows from Operating Activities
7,276,555
4,016,668
11,293,223
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Principal payments on long-term debt
(3,538,000)
-
(3,538,000)
Interest payments on long-term debt
(448,219)
(448,219)
Net Cash Flows from Noncapital Financing Activities
(3,986,219)
(3,986,219)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Capital expenditures for utility plant
Cost of disposal of property net of salvage
Capital contributions, connection and facility fees
Special assessments receipts
Special tax receipts
Principal payments on long-term debt
Interest payments on long-term debt
Cash Flows From Capital and Related Financing Activities
CASH FLOWS FROM INVESTING ACTIVITIES
Matured long-term investment reinvested in short-term
Interest income received
Cash Flows from Investing Activities
Net Change in Cash and Cash Equivalents
CASH AND CASH EQUIVALENTS — Beginning of Year
CASH AND CASH EQUIVALENTS — END OF YEAR
(2,448,266)
(1,541,652)
(160,630)
(218,154)
226,764
139,209
-
604,329
-
-
-
1,876,077
841,077
(70,223)
(1,907,356)
(295,000)
(130,000)
154,398
(1,411,855)
(1,824,503)
(702,830)
(2,297,957)
(4,335,479)
(243,426)
8,247
25,222
348,363
6,435
4,685
(3,989,918)
(378,784)
365,973
604,329
2,717,154
(2,402,579)
(3,784,790)
(6,868,615)
384,705
25,222
348,363
6,435
4,685
384,705
1,017,601
29,552
(236,991)
12,932
823,094
13, 580,186
14,122, 611
3,754,758
1,670,686
33,128,241
$ 14,597,787 $
14,152,163 $
3,517,767 $
1,683,618 $
$ 33,951,335
NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES
During 2012: $19,600 and $6,000 of capital assets were contributed to the electric and water utilities, respectively, by customers and developers. Additionally, water contibuted
assets were adjusted downward by $233,738.
$424,078 and $510,881 of prior period unearned revenues were recognized by the electric and water utilities, respectively.
$1,195,151 and $433,475 of prior period unearned revenues were recognized by the component units, Gray's Crossing and Old Greenwood, respectively.
Page 53
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2012
RECONCILIATION OF OPERATING INCOME TO NET CASH
FLOWS FROM OPERATING ACTIVITIES
Operating income
Noncash items included in operating income
Depreciation and amortization
Amortization of deferred expenses
Depreciation charged to other accounts
Changes in assets and liabilities
Accounts receivable and unbilled revenues
Materials and supplies
Prepaid expenses and other current assets
Accounts payable
Customer deposits
Other current liabilities
Component Units
Electric Water Gray's
Operations Operations Crossing Old Greenwood Eliminations Total
$ 3,676,424 $
338,059 $
$ $ $ 4,014,483
1,673,256
3,400,615
5,073,871
421,998
308,386
730,384
9,142
178,567
187,709
19,234
(3,500)
15,734
3,970
176
4,146
1,046,463
(153,186)
893,277
(68,149)
(80,087)
(148,236)
494,217
27,638
521,855
NET CASH FLOWS FROM OPERATING ACTIVITIES $ 7,276,555 $ 4,016,668 $ - $ - $ - $ 11,293,223
RECONCILIATION OF CASH AND CASH EQUIVALENTS
TO THE BALANCE SHEET
Operating
Designated
Restricted bond funds - current
Restricted bond funds - non -current
Total Cash and Investments
Less: Long-term investments
Mark to market adjustment
TOTAL CASH AND CASH EQUIVALENTS
$ 5,915,734 $ 2,396,754 $ 166,046 $ 416,856 $ $ 8,895,390
4,155,634 7,125,710 - - 11,281,344
4,538,767 4,642,008 3,351,721 1,266,762 13,799,258
- 2,095,966 - - 2,095,966
14,610,135 16,260,438 3,517,767 1,683,618 36,071,958
- (1,698,880) - - (1,698,880)
(12,348) (409,395) (421,743)
$ 14,597,787 $ 14,152,163 $ 3,517,767 $ 1,683,618 $ - $ 33,951,335
Page 54
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2012
POSITION OF OTHER POST EMPLOYMENT BENEFIT PLANS
Pension Plan Funding History-2.7%@ 55 (Started Participation January 1, 2011)
For the Years Ended June 30, 2006 through 2011
Accrued
Actuarial
Unfunded
Funded
Annual
Valuation
Liabilities
Value of
Liabilities
Ratio
Covered
UL as a %
Date
(AL)
Assets (AVA)
(UL)
(AVA/AL)
Payroll
of Payroll
06/30/2006
$1, 280,157, 040
$1, 069, 546, 974
$ 210, 610, 066
83.5%
$ 304, 898,179
69.1 %
06/30/2007
$1,627,025,950
$1,362,059,317
$ 264,966,633
83.7%
$ 376,292,121
70.4%
06/30/2008
$1,823,366,479
$1,529,548,799
$ 293,817,680
83.9%
$ 414,589,514
70.9%
06/30/2009
$2,140,438,884
$1,674,260,302
$ 466,178,582
78.2%
$ 440,071,499
105.9%
06/30/2010
$2,297,871,345
$1,815,671,616
$ 482,199,729
79.0%
$ 434,023,381
111.1%
06/30/2011
$2,486,708,579
$1,981,073,089
$ 505,635,490
79.7%
$ 427,300,410
118.3%
Pension Plan Funding History - 2%@ 60 (Ended Participation December 31, 2010)
For the Years Ended June 30, 2005 through 2011
Accrued
Actuarial
Unfunded
Funded
Annual
Valuation
Liabilities
Value of
Liabilities
Ratio
Covered
UL asa %
Date
(AL)
Assets (AVA)
(UL)
(AVA/AL)
Payroll
of Payroll
06/30/2005
$ 484,351,523
$ 459,996,995
$ 24,354,528
95.0%
$ 174,127,476
14.0%
06/30/2006
$ 478,122,215
$ 454,602,459
$ 23,519,756
95.1%
$ 170,458,082
13.8%
06/30/2007
$ 498, 934, 859
$ 479, 520, 670
$ 19,414,189
96.1 %
$ 171, 052, 819
11.3%
06/30/2008
$ 532,483,463
$ 513,147,099
$ 19,336,364
96.4%
$ 183,387,608
10.5%
06/30/2009
$ 582,841,869
$ 553,953,526
$ 28,888,343
95.0%
$ 184,319,666
15.7%
06/30/2010
$ 624,423,437
$ 594,492,164
$ 29,931,273
95.2%
$ 186,777,830
16.0%
06/30/2011
$ 682,375,804
$ 639,237,247
$ 43,138,557
93.7%
$ 193,877,169
22.3%
Retiree Health Plan Funding History
For the Years Ended January 1, 2006, 2007, 2009, and 2011; and July 1, 2011*
Accrued
Actuarial
Unfunded
Funded
Annual
Valuation
Liabilities
Value of
Liabilities
Ratio
Covered
UL a s a %
Date*
(AL)
Assets (AVA)
(UL)
(AVA/AL)
Payroll
of Payroll
01/01/2006
$ 2,328,500
$ -
$ 2,328,500
0.0%
$ 5,542,800
42.0%
01/01/2007
$ 1,369,600
$ 198,800
$ 1,170,800
14.5%
$ 4,925,600
23.8%
01/01/2009
$ 1,748,000
$ 230,900
$ 1,517,100
13.2%
$ 5,276,400
28.8%
01/01/2011
$ 2,501,800
$ 645,700
$ 1,856,100
25.8%
$ 6,307,400
29.4%
07/01/2011
$ 2,657,000
$ 661,400
$ 1,995,600
24.9%
$ 6,226,000
32.1%
*Retire Health Plan funding began in 2007. Valuations are required once every two years. The valaution
date changed to July 1 in compliance with GASB Statement No. 57.
Page 55