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Home My WebLink AboutGeneral Fund TRUCKEE-DONNER PUBLIC UTILITY DISTRICT STATEMENT OF GENERAL FUND - July 2, 1980 Bank Balance - June 10, 1980 $ 1625809.65 Truckee Electric & Water Revenue 205,946.69 Donner Lake Electric Revenue 31 ,386.51 Electric Connection Fees 15,900.00 Water Connection Fees 7,381 .00 Facilities Fees 1 ,125.00 Miscellaneous Billings Revenue 15379.82 Miscellaneous Revenue - Office supplies, 176.23 Credit balance on accounts payable Interest Income 10.83 $ 426,115.73 Approved Billings $ 8,500.48 Bank of America - Federal tax $ 2,961 .10 deposit 6/15/80 payroll Truck loan payment 474.02 LAIF deposit 266,000.00 269,435.12 Central Bank - Computer loan payment 356.44 George Cattan - Pension plan payment 258.75 Directors - Board meeting attendance 400.00 IBEW - Union dues, 6/80 290.00 Petty Cash - To replenish fund 142.88 Refunds: Connection fees First American Title Co. 300.00 Refunds: Credit on Line Extensions: Bartlett, C. $ 21 .55 Bischel ,D. 55.99 Bjerkhoel , W. 57.51 Clark, L. 55.98 Columbo, M. 13.55 Delfino, J. 57.52 Delgado, J. 6.77 Ekdahl , R. 8.21 Havens, E. 186.19 Jensen Lindbloom 13.35 Johnston, C. 4.86 Lindsey, R. 4.19 Loetterle, J. 57.52 Lovett, P. 6.78 Mattei, H. 29.53 Madding, J. 6.77 Ogburn, T. 29.54 Racich, R. 6.76 Redman, F. 55.97 Santilena, A. 6.76 Sierra Building Supply 16.38 Sunwood Construction 13.52 Treichler, W. 19.42 Vogt, K. 6.76 Whited, R. 223.09 964.47 Refunds: Credit balance on closed account: Bevan B. $ 7.34 Boshart, J. 103.87 Forrest, G. 10.06 Jensen Lindbloom 20.94 Koch, K. 27.68 McClaine, F. 13.99 McMahon, C. 50.00 Maass, T. 12.59 Schnobrich, B. 28.46 Sierra Building Supply 15.21 290.14 Roen Construction Co. - Payment on reconstruction $ 34,014.00 of Southside Well No. 2 building TDPUD - Interest on consumer deposits 116.13 U S Postmaster - Postage meter $ 400.00 - Postage stamps 75.00 - Postage Permit No. 1 525.00 11000.00 (316,068.41 ) PAYROLL 6/15/80 OT DT Standby Gross Net Black 553.60 432.10 Chapman 857.83 666.60 Connell 728.80 521 .81 Craig 312.84 974.60 734.97 Grow 943.20 663.01 Hossack 581 .60 438.63 Johnson 579.20 427.14 Jones 553.60 391 .92 Lopez 128.64 986.24 673.26 Lyson 528.00 393.88 Manetta 553.60 410.75 Marsh 641 .60 478.35 Mertens 579.20 473.31 Norton 911 .20 654.09 Pomponio 689.52 497.23 Reynolds 135.12 1035.92 684.71 Rully 772.00 576.79 Seymour 1470.84 986.08 Silva 943.20 696.65 Slattery 882.34 646.02 Straub 857.60 606.74 Tamietti 115.80 893.30 709.57 Waltrip 664.80 482.44 428.64 263.76 18181 .79 13246.05 Temporary & Part-Time Employees Chavez 136.24 114.94 McQuary 146.25 122.48 Painter 428.97 318.31 711 .46 555.73 428.64 263.76 18893.25 13801 .78 ( 13,801 .78) Bank Balance - July 2, 1980 $ 96,245.54 Bills for Board Approval - See attached (272,589.08) Bank Balance after payment of above (176,343.54) LAIF transfer to cover above bills - transfer to be made July 7, 1980 177,000.00 Bank Balance - July 2, 1980 $ 656.46 General Fund Balance in LAIF and Public Time Deposit is $305,704.86 after above transfer BILLS FOR BOARD APPROVAL: Description P Electric Water General Total Ace Hardware Miscellaneous hardware 10.59 35.72 46.31 Aetna Life & Casualty Life insurance, 7/80 73.72 73.72 Airsignal of California Monthly services, 7/80 13.92 13.92 Allied Automotive, Inc. Miscellaneous vehicle parts 24.76 24.76 American Water Works Association Office supplies 34.75 34.75 Anlab Analytical Laboratory Water analysis, 6/80 35.00 35.00 R. W. Beck and Associates Engineering services re substation 391.80 391.80 Blue Cross Health insurance, 7/80 2,934.36 2,934.36 Boss Manufacturing Company Leather gloves & hip boots 103.85 103.85 Builders Service Center Blinds for office & warehouse offices 587.44 587.44 Cal Western Life Pension plan premium, 7/80 2,745.45 2,745.45 California Municipal Utilities Association services for 7/1/80 - 6/30/81 570.00 570.00 Association State of California: Department Radio maintenance, 5/80 487.50 487.50 of General Services Camellia Valley Supply, Inc. Machine bolts 120.43 120.43 Clarke Stationers of Nevada, Inc. Office supplies, minute books 208.12 208.12 Credit Bureau Tahoe-Truckee Dues, 6/80 10.00 10.00 Crown Life Long term disability, 6/80 & 7/80 1,349.18 1,349.18 Davis Auto Parts Paint for vehicle 55.53 55.53 Delta Lines Freight charges 19.97 19.97 Dictaphone Maintenance renewal on machine 7/80 - 6/81 101.20 101.20 Digital Equipment Corporation Maintenance coverage on computer, 8/80 99.00 619.00 Registration for Merrilyn Marsh to class, 520.00 Introduction to Mini Computers Dow Jones & Company, Inc. Publication of 1.9 acre lease 167.16 167.16 Electronic Calculator Co. Maintenance agreement on calculators 7/1/80 345.00 345.00 to 6/30/81 Farmer Brothers Coffee Coffee 50.04 50.04 General Electric Supply Service sleeve, wrenches & copper connectors 735.06 735.06 General Pacific, Inc. Platform ladder 112.27 112.27 Graybar Electric Company Meter rings 136.74 136.74 Steven E. Grumer, Ltd. Legal services, 6/80 208.00 662.00 1,128.00 1,998.00 H & H Janitorial Supply Office supplies 37.18 37.18 High Country Answering Service Answering service, 7/80 53.75 53.75 International Business Machines Office supplies 242.01 242.01 Manny Lopez Cleaning supply 4.42 4.42 Los Angeles Times Publication of 1.9 acre lease 155.76 155.76 BILLS FOR BOARD APPROVAL: Description Electric Water General Total (Continued) Magi Chem Paint & degreaser 208.29 208.29 Gary Martin Install air conditioner in computer room 847.00 847.00 and warehouse rearrangement McDonough, Holland & Allen Legal services, 4/80 & 5/80 1,373.00 1,373.00 Mosler Safe Company Payment envelopes for drop box 48.38 48.38 County of Nevada Election expenses 943.25 4,054.61 Sewer assessment to residential lot on 3,111.36 Richards Boulevard Nevada Office Machines Maintenance agreement on calculators, 6/80 201.00 201.00 to 5/81 North Lake Tahoe Bonanza Publication of 1.9 acre lease 69.00 . 0 North Supply Company Triplex wire 1,987.50 1,987.50 Osburn's Garage Vehicle repairs & tow charges 1,217.49 1,217.49 Output Subscription to Output magazine 9.97 9.97 Pacific Telephone Monthly telephone charges, 6/80 469.70 829.45 Monthly telemetry charges, 6/80 359.75 Pitney Bowes Postage meter lease, 8/1/80 to 10/31/80 47.70 47.70 Public Employer Personnel Retainer for 5/80 950.00 950.00 Consultants Record Supply Company Water boxes & lids, couplings, galvanized 2,800.72 2,800.72 pipe, tapping saddles 8600 Red Star Industrial Service Linen service, 6/80 86.00 75. 448 29 Rockwell International Backflow preventer 475.48 . Roder Equipment Company Safety vests 29.17 29.17 RTE Corporation 7 - 15KVA transformers 3,887.02 3,887.02 3 - 25KVA transformers Sacramento Bee Publication of 1.9 acre lease 89.46 89.46 Safety Line, Inc. Hydraulic cutter & protective bag 539.66 539.66 Sandel-Avery Engineering Engineering services, 6/80 1,996.47 1,996.47 Sears, Roebuck and Co. Office supplies 67.73 67.73 Sha-Neva, Inc. Fill for southside area 77.98 77.98 Sierra Masonry Cement 12.72 12.72 Sierra Pacific Power Company Purchased power, 5/80 173,239.55 198,880.56 Refund error 25,641.01 Sierra Sun Publication of Temporary helper in 81.00 81.00 water department, advertisement for bid, invitation to bid for a backhoe loader J n BILLS FOR BOARD APPROVAL: Description 0 (Continued) Electric Water General Total State Compensation Insurance Fund To increase deposit requirements for workmen's compensation insurance 475.00 475.00 Stice & Wells Insurance Agency Umbrella excess liability policy Package policy liability audit 8,788.00 12,632.00 Stone & Youngberg Consulting services re Water Revenue 3,844.00 Bond Election 1,050.00 1,050.00 Sun Printing Office supplies Tahoe City Lumber Co. Overhead shelf storage 84.28 84.28 Warehouse office rearrangement 629.89 1,074.15 Tahoe-Truckee Sanitation Agency Water analysis, 5/80 444.26 Tahoe Truckee Supply Pipe cement & brush 68.31 68.31 Truckee Disposal Garbage service, 5/80 4.01 4.01 Truckee Heating & Sheet Metal, Inc. Stove pipe for furnace 89.00 89.00 J. S. Truckee Rents Power stud rental 16.33 16.33 Truckee-Tahoe Lumber Miscellaneous hardware 25.76 25.76 Truckee Taylor's Tires Tire repairs on vehicles & backhoe 132.25 132.25 USDA - REA Principal & interest due on REA loan 14,969.18 86.28 48.11 134.39 Utility Body Company Tool compartments - Unit 18 14,969.18 U S Rentals Forklift rental 1,315.28 1,315.28 Wedco, Inc. Arrestor cutout combinations & reflective 1,522.36 102.60 102.60 Phil Willard Enterprises numbers 1,522.36 p Janitorial service, 6/80 Wood Systems, Inc. Cassette recorder, PA system, microphones 173.00 173.00 & maintenance agreement 6/15/80 to 3,284.14 3,284.14 6/14/81 224,696.02 13,647.88 34,245.18 272,589.08 -_ -\ k'i siCi i i E ti'cvi'.a t P.U.L). _ June 30, 1980 To: Truckee/Donner P.U:D. From: Barry S. Garman d Subject: Board Vacancy Z. I am a registered voter in Nevada County. 2. I live full-time in Truckee. (Tahoe Donner) 3. Experience: A. I am a commissioned officer in the Army Corps of Engineers. My work history includes dams, airfields, power stations and pipelines. B. Beyond my military history I have a degree in Finance from C.S.U. Northridge with' a minor in Accounting. C. As an active member of the business community, I am aware of the needs of the populace. My business interests are concentrated in food, beverage and real property. 4. Purpose: A. I feel that I can actually serve the community which I dearly care for. Truckee has provided a wonderful en- vironment for me and if I can repay it in some way the satisfaction would be twp-fold. B. As Truckee grows so do the problems. We who have the ex- perience should donate our time to make sure that those problems are solved in the best interests of the population and environment. Sincerely submitted for your examination, Barry' S. Garman 127 C E I V E D ;UN IJ June 28, 1980 TIZU""i<u: DOIqNf:Pz P.U.D. By- C C'P I E S T 0: A. Milton Seymour District Clerk P-0- Box 309 Truckee, California 95734 Al Dear Mr. Seymour and Members of the Board: This letter is in response to your request for resumes for position of board member. I will be brief for I feel the board members already know me from my past attendance at board meetings, and having run for the now vacant position on the board. My educational qualifications are an A.A. degree from West Valley College, Saratoga, California. My curriculum for the degree included many business management courses and some courses in accounting and electronics. I have taken a speed reading course which I feel would help me be a more informed decision maker, because I could read more about the subject. I think my best qualification is my personal commitment to give the best possible service at the lowest possible cost to the rate payer. Sincerely, L. Martin Duffy AaTHUR ANDERSEN 8c Co. SPEAR STREET TOWER, SUITE 3500 ONE MARX E T PLAZA SAN FRANCISCO, CALIFORNIA 94105 (415) 546-8200 March 28, 1980 The Board of Directors Truckee-Donner Public Utility District We, as independent public accountants , have examined the financial statements of Truckee-Donner Public Utility District for the year ended December 31 , 1979, and have issued our report thereon dated March 28, 1980, which was qualified subject to the effect of any adjustments that might have been required had the outcome of a legal action which seeks damages in excess of $100 million from various defendants , including the District, and an uncertainty as to whether or not the District has met and fulfilled the requirements of certain covenants resulting from the issuance of notes payable been known. Our examination was made in accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances . In connection with our examination, we performed the auditing procedures specified in REA Bulletin 185-1; 465-1 , as amended, that apply to material amounts in the financial statements. The following comments are presented in accordance with r the requirements of REA Bulletin 185-1 ; 465-1, as amended: 1 . As a part of our examination, referred to above, we made a study and evaluation of the District ' s system of internal accounting control to the extent that we considered necessary to evaluate the system as required by generally accepted auditing standards . Under these standards , the purposes of such evaluation are to establish a basis for reliance on the system of internal accounting control in determining the nature, timing, and extent of other auditing procedures that are necessary for expressing an opinion on the financial statements and to assist us in planning and performing our exami- nation of the financial statements . ARTHUR ANDEnsEN Sc CO. -2- The objective of internal accounting control is to provide reasonable, but not absolute, assurance �► as to the safeguarding of assets against loss from unauthorized use or disposition, and the reliability of financial records for preparing financial state- ments and maintaining accountability for assets . The concept of reasonable assurance recognizes that the cost of a system of internal accounting control should not exceed the benefits derived and also recognizes that the evaluation of these factors necessarily requires estimates and judgments by management. There are inherent limitations that should be recognized in considering the potential effectiveness of any system of internal accounting control . In the per- formance of most control procedures, errors can result from misunderstanding of instructions , mistakes of judgment, carelessness or other personal factors. Control procedures whose effectiveness depends on -segregation of duties can be circumvented by collusion. Similarly, control procedures can be circumvented intentionally by management either with respect to the execution and recording of transactions or with respect to the estimates and judgments required in the preparation of financial statements. Further, projection of any evaluation of internal accounting control to future periods is subject to the risk that the procedures may become inadequate because of changes in conditions , and that the degree of compli- ance with the procedures may deteriorate. Our examination of the financial statements made in accordance with generally accepted auditing standards, including the study and evaluation of the District ' s system of internal accounting control for the year ended December 31, 1979, that was made for the purposes set forth above, would not necessarily disclose all weaknesses in the system because it was based on selective tests of accounting records and related data. However, such study and evaluation disclosed no conditions that we believe to be material weaknesses . The foregoing conditions were considered in determining the nature, timing and extent of audit tests to be applied in our examination of the financial statements , ARTHUR Aw DEnsEN 8c Co- -S- and this report of such conditions does not modify our report dated March 28, 1980, on such financial state- ments . The following comments are based upon our review and tests of the system of internal accounting control referred to above: a. The accounting records were in satisfactory condition; accounting and reporting pro- cedures were operating with reasonable effec- tiveness and our tests indicated that the methods used were adequate to accumulate costs of material, transportation, labor and overhead, and to provide for a reasonable distribution thereof to construction, retire- ment, and maintenance or other expense accounts . b. The controls over materials and supplies were operating with reasonable effectiveness and there were no significant discrepancies among the physical inventory, the perpetual inventory records, and the general ledger balances . C . During the course of our examination, we made a number of suggestions for improving the District ' s procedures and for strengthening its existing system of internal accounting control . These suggestions, however, did not relate to conditions that we believe to be material weaknesses. 2 . Although the scope of the examination referred to in the above paragraph was not designed for the specific purpose of disclosing any event of default, in making our examination, we noted no instances where the District had not complied with and/or obtained a waiver from the provisions of the documents evidencing its loans from various parties , except for the note payable to the United States of America, Farmers Home Administration. See Note 4 of the notes to the December 31 , 1979 financial statements for a discussion of the uncertainty as to whether the District met the requirements of the Farmers Home Administration indenture. ARTHUR ANDERSEN & CO- -4- 3 . As a part of our examination, we reviewed a copy of the December 31 , 1979 Financial and Statistical Report (Form 7) for Truckee-Donner Public Utility District , on file at the District. The financial statements included therein are presented for electric operations only. The District does not maintain separate complete financial records which clearly delineate between the electric and water services. We were advised by the District that the financial statements included in the Form 7 are in agreement, in all material respects , with the District ' s accounting records , to the extent practical . 4. The District does not utilize or is not a party to any management, operations or billing service contracts in any of its operations. 5. All of the District ' s cash deposits at December 31 , 1979 , were in institutions whose accounts were insured by an agency of the federal government to the extent provided by statutes. 6 . We were advised by the District that insurance certifica- tions (REA Form 55) were furnished to REA during the year ended December 31 , 1979 , reflecting information contained in the policies maintained by the District . 7 . The District is organized as a nonprofit organization under the California Public Utility District Act and, /^ as such, is a tax-exempt organization and is not required to file federal or state income tax returns . 8. As the result of our examination, the following adjusting journal entries were recorded on the District ' s books . The following reclassification journal entries were made for statement purposes only and were not recorded in the District ' s books: Adjusting Journal Entries Account Title Debit Credit Outside services $12,000 Accrued audit fees $12 ,000 To record 1979 audit fees. ARTHUR ANDERSEN $c CO. -5- Account Title Debit Credit �., Construction work in process 8,367 Accounts payable 8,367 To record final payment due on a completed project. Construction work in process $20 ,076 Accounts payable $20,076 To record late invoice received from outside contractor. Reclassification Journal Entries Account Title Debit Credit Long-term debt $47 ,327 Current maturities of long-term debt $47 ,327 To reclassify 1980 maturities of long-term debt. Accounts payable 11 ,613 r^ Accrued interest 11,613 To reclassify interest accrued from accounts payable. Operating revenues 89,354 Operating expenses 89 ,354 To record elimination of inter- departmental sales . This report is submitted pursuant to the reporting requirements of PEA Bulletin 185-1; 465-1 , Part IV, Section VII , as amended, and is to be used for no other purpose. Very truly yours, 3p AR-rmun ANDERSEN 8c Co. SAW FRAWCISCO, CALIFORNIA To the Board of Directors of Truckee-Donner Public Utility District : We have examined the balance sheets of Truckee-Donner Public Utility District ( a political subdivision of the State of California) as of December 31 , 1979 and 1978, and the related statements of net revenue and funds provided for additions to utility plant for the years then ended. Our examinations were made in accordance with generally accepted auditing standards and , accordingly , included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances . As discussed further in Note 5 to the accompanying financial statements , the District is a party in a legal action which r seeks damages in excess of $ 100 million from various defendants , including the District . The ultimate outcome of this legal action and the effect upon the District , if any, cannot be determined at this time . As discussed in Note 4 to the accompanying financial statements , the District is required to meet certain covenants which result from the issuance of a promissory note payable to the United States of America , Farmers ' Home Administration . During 1979 and 1978, it was uncertain whether the District met and fulfilled the requirements of these covenants . 71 - 2- In our opinion , subject to the effect of any adjustments that might have been required had the outcome of the matters referred to in the preceding paragraphs been known , the financial statements referred to above present fairly the financial position of Truckee- Donner Public Utility District as of December 31 , 1979 and 1978, and the results of its operations and funds provided for additions to its utility plant for the years then ended , in conformity with generally accepted accounting principles applied on a consistent basis . Our examinations have been made primarily for the purpose of forming the opinion stated in the preceding paragraph . The data contained in the combining statement of departmental operations , although not considered necessary for a fair presentation of financial position , results of operations and changes in financial Position, are presented as supplementary information and have been subjected to the audit procedures applied in the examinations of the /.� basic financial statements . In our opinion , subject to the effect of any adjustments that might have been required had the outcome of the r legal action discussed above been known , these data contained in the combining statements of departmental operations are fairly stated in all material respects in relation to the basic financial statements taken as a whole . March 28, 1980 r _s V-5 .IC UTILITY DISTRICT :MBER 31 , 1979 AND 1978 CONSUMERS ' EQUITY AND LIABILITIES 1979 1978 CAPITALIZATION : Consumers ' equity employed in the business- $2 ,222,131 $ 1 .893.965 Balance , beginning of year 335,400 328, 166 Net revenue for the year ---------- ---------- Total consumers ' equity $2,557 ,531 $2, 222, 131 ---------- ---- ------ Long-term debt (Note 4 ) - REA bonds $ 310,574 $ 329, 574 Note payable to Sierra Pacific Power 26,457 43,064 Company Promissory note - United States of America , Farmers ' Home Administration 212, 746 214, 041 Sewer assessments payable 12,671 14,041 Equipment notes payable 671 ----- Total long-term debt $ 600,039 $ 645, 159 ---------- ---------- Total capitalization $3, 157 ,570 $2,867 ,290 ---------- ---------- CURRENT LIABILITIES (Note 4 ) : Accounts payable $ 762,747 $ 484, 270 Deferred income - standby fees 55,423 51 , 156 Consumer deposits , 318 33,672 22 Accrued interest , 18 7 , 2 Accrued liabilities 37,652 35, 948 Current maturities of long-term debt 47,327 46,938 i ---------- ---------- 3 $ 968,520 $ 658,986 ---------- ---------- 3 CONTINGENCIES (Note 5 ) D CONSTRUCTION ADVANCES (Note 3 ) $ 379,609 $ 294,455 ---------- ---------- 1 $4, 505 ,699 $ 3,820,731 itegral part of these balance sheets . TRUCKEE-DONNER PUB BALANCE SHEETS -- DEC ASSETS 1979 1978 UTILITY PLANT , .at cost (Note 1 ) : Plant in service- $2, 236, 721 $2,213,932 Electric 951 ,018 880,49E Water 509, 390 465, 721 General ---------- ---------7 $ 3 ,697 ,129 $ 3,560,15. 2 ,026,836 1 ,896,681 Less - Accumulated depreciation ---------- --------- Net plant in service $ 1 ,670 ,293 $ 1 ,663,46 40 227 , 20 Construction work in progress 2 610,,740 3,30 Electric acquisition adjustments _________ Net utility plant $ 2 ,283 ,570 $ 1 ,893,96 RESTRICTED FUNDS (Note 3) $ 673 ,605 $ 496,12 --- _---_-___ CURRENT ASSETS : $ 9009971 $ 728, 1 ": Cash Accounts receivable - consumer , less bad debt reserves of $61,600 in 1979 271 ,410 258,4i and $47 ,100 in 1978 Account receivable - purchased power 6,054 102,4 refund (Note 2) Accounts receivable - standby fees and other, less bad debt reserves of $ 13,600 in 1979 164 ,742 138,3 and 1978 161 ,944 168,8 Inventory, at average cost Interest receivable , prepaid insurance 43,403 34,4 and other -__--__- $ 1 , 548 ,524 $ 1 ,430,6 ---------- -------- $4, 505,699 $ 3 ,820,7 The accompanying notes are an i TRUCKEE-DONNER PUBLIC UTILITY DISTRICT STATEMENTS OF NET REVENUE �. FOR THE YEARS ENDED DECEMBER 31 , 1979 AND 1978 1979 1978 OPERATING REVENUES : Electric $2, 630, 562 $2, 299, 267 Water 364,609 298,065 ---------- ---------- $ 2 ,995, 171 $ 2 ,597 ,332 ---------- ---------- OPERATING EXPENSES : Purchased power (Note 2 ) $1 , 959, 601 $1 ,469, 942 Transmission 68, 177 59 ,593 Distribution 159, 572 165, 397 Consumer accounts 153,499 131 ,863 Administrative and general (Note 6 ) 283, 094 342,894 Depreciation 128 , 116 119 ,703 ---------- ---------- $ 2,752 ,059 $ 2 ,289 ,392 ---------- ---------- Net operating revenue $ 243 , 112 $ 307 ,940 OTHER INCOME : Interest income 129, 624 60,817 Other , net 17 ,390 (4 , 783 ) E ---------- ---------- Net revenue before interest expense $ 390, 126 $ 363, 974 INTEREST EXPENSE 54,726 35 ,808 ---------- ---------- Net revenue $ 335 ,400 $ 328, 166 ---------- ---------- ---------- ---------- The accompanying notes are an integral part of these statements . �l TRUCKEE-DONNER PUBLIC UTILITY DISTRICT STATEMENTS OF FUNDS PROVIDED FOR ADDITIONS TO UTILITY PLANT FOR THE YEARS ENDED DECEMBER 31 , 1979 AND 1978 1979 1978 FUNDS PROVIDED INTERNALLY : Operations- Net revenue $ 335,400 $ 328, 166 Depreciation expense not requiring a current use of funds 128, 116 119 , 703 Other 14 ,710 16 ,252 --------- --------- Funds provided by operations $ 478,226 $ 464, 121 Add (deduct) - Reductions in long- term debt (44, 732) (90, 347 ) Additions to restricted funds (177 ,481 ) (127 ,654 )) --------- --------- Net funds provided internally $ 256 ,013 $ 246 , 120 --------- --------- FUNDS PROVIDED FROM EXTERNAL SOURCES : �., Construction and maintenance funds contributed to the District $ - $ 47 ,600 Advances utilized for construction 85, 154 51 , 174 Increase in long-term debt - 251 ,801 --------- --------- Net funds from external sources $ 85, 154 $ 350, 575 --------- --------- FUNDS PROVIDED (USED) FROM NET CHANGE IN WORKING CAPITAL (Note 7 ) $ 191, 650 $ (216, 235 ) --------- --------- Funds provided for additions to utility plant $ 532, 817 $ 380, 460 The accompanying notes are an integral part of these statements . TRUCKEE-DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1979 AND 1978 1 . Summary of Significant Accounting Policies_ Organization -- The Truckee-Donner Public Utility District (the District) was formed and operates under the State of California Public Utility District Act to provide electric and water service to a portion of Nevada County described as Truckee and Donner Lake. The District is exempt from payment of federal and state income taxes . Depreciation -- The District provides for depreciation on the historical cost of utility properties on a straight-line basis at rates in accordance with the Rural Electrification Administration Bulletin 181- 1. The average annual composite rates were 3. 60% and 3. 54% in 1979 and 1978, respectively. Retirements of utility plant and the related costs of removal and salvage are charged to accumulated depreciation . The costs of replacement of property units are charged to plant . Repair and maintenance costs are charged to expense. Revenues -- Revenues consist of billings to consumers as meters are read on a cycle basis throughout each month . Services provided to municipal entities without charge are not reflected in operating revenues . _6-3 - 2- Pension Plan -- The District maintains a noncontributory, defined benefit pension plan covering substantially all employees who have at least one year of service. It is the District ' s policy to fund pension costs as accrued , and contributions for 1979 and 1978 amounted to $27 ,312 and $21 , 741 , respectively. At December 31 , 1979, the value of the plan ' s assets exceeded the actuarially computed present value of vested benefits . 2. Purchased Power Refund On January 4, 1979, the District received a cash refund in the amount of $102 ,415, including interest , from its wholesale electrical power supplier. This resulted from refunds , ordered by the Federal Energy Regulatory Commission ( formerly the Federal Power Commission) , which the supplier had received from its suppliers and from audits of its fuel clause billings . The refund to the District covered purchases during the period 1971- 1978. The 1978 financial statements have ' reflected the refund ( $102, 415 ) in the balance sheet as an account receivable - purchased power refund and in the statement of net revenue as a reduction of purchased power expense. 3. Restricted Funds The District has collected and restrictively deposited funds for future uses as follows : S5- - 3- Restricted Construction Funds Advances Dart Industries Water Agreement - the District has collected $40 per lot for future water source and storage facilities in the developers ' project $196,300 $196 ,300 REA loan proceeds - placed in trust to be used for future electric construction projects 40, 675 - Dart Industries water services settlement - the District has collected funds for anticipated future repairs of water lines constructed by Dart Industries 86 ,410 86 ,361 Facilities fees collected from customers for future procurement of source and storage 49, 120 50, 202 Portion of connection fees collected from customers for the future purchase of water meters 46,375 46 ,746 - ------- -------- $418 ,880 $379 ,609 Other restricted funds- Loan principal and interest fund - in accordance with loan agree- ments , principal and interest payments are to be placed on deposit until payment is due- REA 38 ,769 - Sierra Pacific Power Company 34, 067 - Promissory note proceeds - placed in trust to be used for specific water construction projects 25 ,656 - f Purchased power refund proceeds restricted by the District to be used for future construction projects 112 ,704 - Consumer deposits 43, 529 - -------- -------- $673 ,605 $379 ,609 -------- -------- -------- -------- -4- 4. Long-Term Debt REA bonds , secured by pledge of all assets , are as follows : 1979 1978 First series 2% bonds , payable in annual amounts varying from $13, 000 to $14,000, in accordance with sinking fund requirements , balance of $14,000 due July , 1994 $198,000 $211 ,000 Second series 2% bonds , payable in annual amounts varying from $ 3,000 to $5, 000, in accordance with sinking fund requirements , balance of $6, 000 due May , 2002 88, 000 91 ,000 Third series 2% bonds , net of undrawn funds of $65,426, payable in annual amounts varying from $ 3 ,000 to $6, 000, in accordance with sinking fund requirements , balance of $8, 000 due May , 2004 43, 574 46, 574 Less - Current maturities (19 ,000 ) (19 ,000 ) -------- -------- Total REA bonds $310 , 574 $329,574 -------- -------- -------- -------- The note payable to Sierra Pacific Power Company is due in semiannual installments of $9, 213, including interest , at a rate of 4.68%, with final payment due in March , 1983. The net revenues ( as defined) of the Donner Lake Electric System are pledged as security. The promissory note payable to the United States of America , Farmers ' Nome Administration is due in 39 annual installments of principal and interest of $ 14, 800. The interest rate is 5% per annum. The net revenues ( as defined ) of the District' s water system are pledged as security. The Indenture , 57 - 5- which secures the promissory note , requires the District to establish and maintain rates and charges to produce net revenues (as defined ) equal to not less than 1 . 2 times the aggregate amount of the principal and interest due within the next 12 l months . In addition , it requires the District to establish separate special accounting funds . During 1979 and 1978, it was uncertain whether the District met the requirements of the Indenture as outlined above . As a result of this uncertainty , the District may not have fulfilled the covenants of the Indenture. In the event of a default , the holder of not less than 66- 2/3% of the aggregate principal amount shall be entitled, upon notice in writing to the District , to declare the principal of all the notes ($251 ,800 ) due and payable immediately. The sewer assessments are payable over a 20-year period , plus interest at 7%, to Nevada County , California . Final payment is due in 1990. The equipment notes payable to banks are secured by computer equipment and a truck. They are due in monthly installments , including interest at 7%, of $830 through September, 1980, and $356 thereafter through March , 1981 . 61 -6- 5. Contingencies - Dart Industries Water Agreement and Related Lawsuits In 1970, an agreement was signed between the District and Dart Industries for the purpose of providing water service to a Dart subdivision . The agreement required Dart to construct water source and storage facilities at Donner Lake . In December, 1975, subsequent to completion of the facilities , ownership was transferred to the District for future maintenance and operation. The Attorney General of the State of California has filed suit against the District and Dart to restrain them from using Donner Lake as a water source. Since this action claims no monetary damages , the District has no liability resulting from this action. Subsequent to the acceptance of the water system, a citizens ' group has filed suit to have the District rescind its action of acceptance of the water system or to refer the matter to a vote of the District ' s residents . This ,�-.. action also claims no monetary damages to the District . r In a separate action related to the Dart subdivision , a homeowners ' group filed suit against Dart , claiming amounts in excess of $100 million , and Dart has , in turn , filed suit against the District and others , seeking indemnity for all such claims . The outcome and potential impact on the District cannot presently be determined. - 7- 6� 6. Legal Fees The District recorded $ 118, 117 for legal fees during 1978. This amount was included in administrative and general expenses in the statements of net revenue. 7 . Changes in Net Working Capital The changes in accounts classified as current assets and current liabilities are as follows : Year Ended December 31 ---------------------- 1979 1978 Working capital increase (decrease) in- Cash $ 172,841 $ 78, 431 Receivables (56 ,988 ) 218,642 Inventory (6, 934) (22, 123) Other current assets 8,965 22 ,850 Accounts payable (278,477 ) (143, 499 ) Deferred income (4,267 ) Consumer deposits (10, 051 ) (4, 390 ) Other current liabilities (16,739 ) 69 ,618 --------- --------- $ (191 ,650 ) $ 216 ,235 8. Reclassifications Certain amounts in the December 31 , 1978 financial statements have been reclassified to conform with the presentation used in the December 31, 1979 financial statements . These reclassifications did not change previously reported net revenue. TRUCKEE-DONNER PUBLIC UTILITY DISTRICT i COMBINING STATEMENT OF DEPARTMENTAL OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 1979 Electric Water ----------------------- ------------------- Donner Tahoe Total Eliminations Truckee Lake Truckee Donner OPERATING REVENUE $2,995,171 $ 89,354 $2,142,895 $577,021 $236,486 $128,123 ---------- -------- ---------- -------- --------OPERATING EXPENSES: ------ Purchased power $1,959,601 $ - $1,649,852 $309,749 $ - $ - Transmission 68,177 (78,633) - - 76,002 70,808 Distribution 159,572 (1,273) 107,010 56,378 4,588 (7,131) Consumer accounts 153,499 - 89,202 41,414 15,797 7,086 Administrative and general 283,094 (1,803) 127,168 62,691 62,571 32,467 Depreciation 128,116 - 80,613 15,652 31,265 586 Other - (7,645) 7,645 - - - $2,752,059 $(89,354) $2,061,490 $485,884 $190,223 $103,816 ---------- -------- ---------- -------- -------- -------- Net operating revenue $ 243,112 $ - $ 81,405 $ 91,137 $ 46,263 $ 24,301