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19 Audited Financial Report Fy22
AGENDA ITEM #19 Public Utility District m MEETING DATE: June 7, 2023 TO: Board of Directors FROM: Michael Salmon, Chief Financial Officer SUBJECT: Consideration of the Audited Financial Report for FY22 APPROVED BY: Brian C. Wright, General Manager RECOMMENDATION: Accept the Audited Financial Report for the fiscal year ending December 31, 2022. BACKGROUND: The District is required to have its financial records audited by independent auditors each year. The Board is responsible for hiring auditors and the auditors present their findings and report directly to the Board. In 2022, the Board extended the contract with the independent auditing firm Moss Adams, LLP to perform the District's audit for FY22, with an option to extend two years for FY23 and FY24 audits. Beginning in FY20, the District issues an Annual Comprehensive Financial Report (ACFR) in compliance with Governmental Financial Officers Association (GFOA) guidelines. The ACFR packages the standard financial statements with an expanded introductory section and supports the standard financials with a robust statistical informational disclosure section. Moss Adams does not audit nor make an opinion on the additional information in the Annual Report, but does review the information to ensure it does not conflict with the audited standard financial statements which are the core financial section of the ACFR. The District received GFOA's Certificate of Achievement for Excellence in Financial Reporting for the FY20 ACFR and the FY21 ACFR. ANALYSIS AND BODY: Moss Adams conducted the FY22 audit of the District's financial records and resulting financial statements. In November 2022, Moss Adams conducted initial assessments of the financial data and internal controls. In April and May 2023, Moss Adams conducted field work and testing of the financial statement balances and disclosures for the year 2022 and as of December 31, 2022. The result of the audit is reported in an opinion letter from Moss Adams. The opinion letter for 2022 from Moss Adams is an "unmodified" or "clean" opinion on the financial Page 1 of 2 Page 162 of 315 statements, which is the highest level of assurance an auditor can provide relative to the fairness and accuracy of the financial statements being presented. The opinion letter and accompanying financial statements are presented herein as an attachment. Moss Adams is scheduled to present these results to the Board at the June 7th meeting and will review the comments related to internal control matters identified in their communications letter, also attached. The FY22 ACFR will be submitted to GFOA for review and consideration for receiving a Certificate of Achievement for Excellence in Financial Reporting. GOALS AND OBJECTIVES: District Code 1 .05.020 Objectives: 1. Responsibly serve the public. 6. Manage the District in an effective, efficient and fiscally responsible manner. District Code 1 .05.030 Goals: 1. Manage for Financial Stability and Resiliency 3. Engage with our customers and communities in a welcoming and transparent way to identify opportunities. FISCAL IMPACT: There is no direct financial impact by means of accepting this report. ATTACHMENTS: 1. Moss Adams TDPUD 2022 Audit TCWG and ICRM Letter - Final 2. TDPUD 2022 ACFR Final Page 2 of 2 Page 163 of 315 X Communications with Those Charged with Governance and Internal Control Related Matters Truckee Donner Public Utility District December 31,2022 MOSSADAMS FF '.•- 164 of din MOSSADAMS Communications with Those Charged with Governance The Board of Directors Truckee Donner Public Utility District We have audited the consolidated financial statements of Truckee Donner Public Utility District(the District) as of and for the year ended December 31, 2022, and have issued our reports thereon dated May 30, 2023. Professional standards require that we provide you with the following information related to our audit. Our Responsibility under Auditing Standards Generally Accepted in the United States of America As stated in our engagement letter dated September 13, 2022, we are responsible for forming and expressing an opinion about whether the consolidated financial statements that have been prepared by management, with your oversight, are prepared, in all material respects, in accordance with accounting principles generally accepted in the United States of America. Our audit of the consolidated financial statements does not relieve you or management of your responsibilities. We conducted our audit in accordance with auditing standards generally accepted in the United States of America (U.S. GAAS)As part of an audit conducted in accordance with U.S. GAAS, we exercise professional judgment and maintain professional skepticism throughout the audit. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the District's internal control over financial reporting. Accordingly, we considered the District's internal control solely for the purposes of determining our audit procedures and not to provide assurance concerning such internal control. We are also responsible for communicating significant matters related to the consolidated financial statement audit that, in our professional judgment, are relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you. The supplementary information was subject to certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the consolidated financial statements or to the consolidated financial statements themselves. Other Information Included in the Annual Report Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the consolidated financial statements and our auditor's report thereon. Our opinion on the consolidated financial statements does not cover the other information, and we do not express an opinion or any form of assurance thereon. Our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the audited consolidated financial statements. We have read the information, and nothing came to our attention that caused us to believe that such information is materially inconsistent with the consolidated financial statements. 1 Page 165 of 315 Planned Scope and Timing of the Audit We performed the audit according to the planned scope and timing previously communicated to you in our engagement letter dated September 13, 2022. Significant Audit Findings and Issues Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the District are described in Note 1 to the consolidated financial statements. During the year ended December 31, 2022, the District adopted the following accounting standards: GASB Statement No. 87, Leases, addresses accounting and financial reporting for leases by governments. This Statement increases the usefulness of financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases by establishing a single model of lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Under this statement, a lessee is required to recognize a lease liability and intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information about leasing activities. This statement is effective for the District fiscal year ending December 31, 2022. The District has implemented this statement. See Notes 4 and 16 for the impact on the financial statements. GASB Statement No.91, "Conduit Debt Obligations."The objective of this statement is to better meet the information needs of the financial statement users by enhancing the comparability and consistency of the conduit debt obligation reporting and reporting of related transactions and other events by state and local government issuers. This Statement also is intended to improve the relevance, reliability, and understandability of information about conduit debt obligations, as well as related transactions and events. The requirements of this Statement will take effect for financial statements with the fiscal year that ends on or after December 31, 2022. The District has determined that this pronouncement has no changes in financial reporting of the District. 2 Page 166 of 315 GASB Statement No.92, "Omnibus 2020." The objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing practice issues that have been identified during implementation and application of certain GASB Statements. The requirements of this Statement will take effect for financial statements with the fiscal year that ends on or after June 30, 2022. The District has determined that this pronouncement has no changes in financial reporting of the District. GASB Statement No.93, "Replacement of Interbank Offered Rates."The objective of this Statement is to address those and other accounting and financial reporting implications that result from the replacement of an IBOR. The removal of LIBOR as an appropriate benchmark interest rate is effective for reporting periods ending after December 31, 2021. All other requirements of this Statement are effective for reporting periods beginning after June 30, 2022. The District has determined that this pronouncement has no changes in financial reporting of the District. No other new accounting policies were adopted and there were no other changes in the application of existing policies during 2022. We noted no transactions entered into by the District during the year for which there is a lack of authoritative guidance or consensus. There are no significant transactions that have been recognized in the consolidated financial statements in a different period than when the transaction occurred. Significant Accounting Estimates Accounting estimates are an integral part of the consolidated financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the consolidated financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the consolidated financial statements were: Unbilled revenue— Unbilled revenue is a measure of revenue earned through the end of the reporting period that has yet to be billed. This generally represents accounts with billing cycles that start in the reporting year and end in the subsequent year. We have evaluated the key factors and assumptions used to develop unbilled revenue in determining that it is reasonable in relation to the consolidated financial statements taken as a whole. Allowance for doubtful accounts—The allowance for doubtful accounts represents an estimate of the amount of accounts receivable that will not be collected. We have evaluated the key factors and assumptions used to develop the allowance in determining that it is reasonable in relation to the consolidated financial statements taken as a whole. Recovery periods for the cost of plant—This represents the depreciation of plant assets. Management's estimate of the recovery periods for the cost of plant is based on regulatory- prescribed depreciation recovery periods. We have evaluated the key factors and assumptions used to develop the recovery periods in determining that they are reasonable in relation to the consolidated financial statements taken as a whole. Other Post-Employment Benefit Obligations—This represents the amount of annual expenses recognized for post-employment benefits. The amount is actuarially determined with management input. We have evaluated the key factors and assumptions used to develop the annual expenses in determining that it is reasonable in relation to the consolidated financial statements taken as a whole. 3 Page 167 of 315 Pension Liability and Related Pension Expense—This represents the amount of annual expense recognized for pensions and the related pension asset or liability. The amount is actuarially determined, with CalPERS management input. We have evaluated the key factors and assumptions used to develop the annual expense in determining that it is reasonable in relation to the consolidated financial statements taken as a whole. Valuation of investments—This represents management's estimate of the fair value of investments based on current market rates and conditions. We evaluated the key factors and assumptions used to develop the valuation of investments and determined that they are reasonable in relation to the consolidated financial statements taken as a whole. Financial Statement Disclosures The disclosures in the consolidated financial statements are consistent, clear and understandable. Certain financial statement disclosures may be particularly sensitive because of their significance to financial statement users. We did not note any disclosures in the consolidated financial statements which we consider sensitive to potential users. Significant Unusual Transactions We encountered no significant unusual transactions during our audit of the District's consolidated financial statements. Significant Difficulties Encountered in Performing the Audit Professional standards require us to inform you of any significant difficulties encountered in performing the audit. No significant difficulties were encountered during our audit of the District's consolidated financial statements. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the consolidated financial statements or the auditor's report. No such disagreements arose during the course of our audit. 4 Page 168 of 315 Circumstances that Affect the Form and Content of the Auditor's Report There may be circumstances in which we would consider it necessary to include additional information in the auditor's report in accordance with auditing standards generally accepted in the United States of America. There were no circumstances that affected the form and content of the auditor's report. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all factual and judgmental misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. The misstatement detected as a result of audit procedures and corrected by management was not material to the financial statements as a whole. The corrected misstatements were as follows: 1. To reclassify work orders to plant assets in service that were in commercial operation at December 31, 2022 (Electric)—$901,569 2. To reclassify work orders to plant assets in service that were in commercial operation at December 31, 2022 (Water)—$3,510,579 We identified no passed audit adjustment during the course of our audit procedures. Management Representations We have requested certain representations from management that are included in the management representation letter dated May 30, 2022. Management Consultation with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to the District's consolidated financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Significant Audit Findings or Issues We are required to communicate to you other findings or issues arising from the audit that are, in our professional judgment, significant and relevant to your oversight of the financial reporting process. There were no such items identified. 5 Page 169 of 315 Communication of Internal Control Related Matters In planning and performing our audit of the consolidated financial statements of the District as of and for the year ended December 31, 2022 in accordance with auditing standards generally accepted in the United States of America, we considered the District's internal control over financial reporting (internal control)as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the consolidated financial statements, but not for the purpose of expressing an opinion on the effectiveness of the District's internal control. Accordingly, we do not express an opinion on the effectiveness of the District's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's consolidated financial statements will not be prevented, or detected and corrected, on a timely basis. Our consideration of internal control was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Our audit was also not designed to identify deficiencies in internal control that might be significant deficiencies. A significant deficiency is a deficiency, or combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. We consider the following deficiencies in the District's internal control to be significant deficiencies: Monitoring Open Work Orders During our testing of open work orders at December 31, 2022, we noted certain work orders totaling approximately$4.4 million that were in commercial operation at year end, but were improperly recorded as construction work in progress. This resulted in a reclassification adjustment at year end as described previously in this letter. We recommend that management continue to establish a policy for when work orders should be closed after the construction work is completed (generally 60-90 days) or expensed if the project costs after closing are insignificant to the wok order. User Access Review Through our review of the IT systems and related controls, we noted that no formal review of user access is currently completed and formally documented. As a best practice, we recommend that a periodic review of user access take place at least annually, and that such review be documented to note, at a minimum, when the review was performed, which reports were reviewed, who was involved in the review, and what conclusions were reached. Additionally, we noted that user access is set up by the accounting department with no additional review or support. As a best practice, we recommend that new user set up, and user terminations, are controlled and completed by the IT department, with the review completed by the appropriate business users to mitigate the risk inappropriate access, unauthorized changes in access and segregation of duties. 6 Page 170 of 315 Other Control Related Matters During the course of our audit, we became aware of matters that are opportunities for improving reporting in compliance with generally accepted accounting principles, and strengthening internal controls and operating effectiveness, which are summarized below: Review of SOC 1 Reports Through our review of the IT systems and related controls, we noted that a formal review of SOC 1 reports for key systems is not being performed. As a best practice, we recommend that an annual review of SOC 1 reports is performed, and that such review be documented to note, at a minimum, when the review was performed, who was involved in the review, and what conclusions were reached. Census Data Management Through our testing of census information as it relates to the Other Post Employment Benefits (OPEB) plan, we noted one employee had incorrect personal information included in the census that is submitted to the actuary. We noted that the census is manually created, and therefore, we recommend that management work with NISC to provide a system generated report that contains all employees' applicable information to be submitted to the actuary to mitigate the risk of manual information being incorrect. This information is intended solely for the use of the Board of Directors and management of the District and is not intended to be and should not be used by anyone other than these specified parties. Portland, Oregon May 30, 2023 7 Page 171 of 315 TRUCKEE DON ER PUBLIC UTILITY DISTRICT RUCKEE, CALIFORNIA ANNUAL COM REHENSIVE -�INANCIAL REPORT FOR THE ISCAL YEAR END D DE yMBER 31, 2022 and 2021 r r / J. A ' 7101 I } r-.• 4 ':f :$ I 1_ ass- r I � + r 1 r At �r 1 h { lop J #� x 1 ff + 5 r dr f� PREPARED BY THE 0 ACCOUNTING AND T' * r id, FINANOE DEPARTMENT �,+ r TRUCKEE DONNER Public Utility District look . .' Ar TheMissionof the Truckee Donner Public is to provide reliable, high quality utility and customer services while managing District resources in a safe, open, responsible, and environmentally sound manner at the lowest practical cost. Truckee Donner Public UtilityDistrict's VAL U EMS' Safety— Safety is our way Safety is our first priority. We are committed to the health and safety of our employees, customers, and community through the continuous practice of prevention, education, and awareness. Communication — Send and receive Foster positive engagement by creating a strong communicative environment that includes; active listening, cy, clear, concise, and timely transmission of information, with empathy d e ect. This also includes providing and receiving honest feedback. Integrity — Hone and ethica Highest quality service to the ublic and employees, utilizing honesty and ethics as our base principles. Acco ntability — Own it A str erforming team wit he obligation and willingness to accept responsibility for our cons aintaining a se of humility and inclusiveness. Timel es Meet our goals d commitments A hig ly e ctive agency and spons ve organ izatio meting goals and expectations in a tim ly.manner. ti ± Mission and Values of District, as adopted by Board of Directors May 19, 2021 Table of Contents Introductory Section Letter of Transmittal..............................................................................................5 Organization Chart, Board of Directors and Appointed Officials....................................10 GFOA Certificate of Achievement for Excellence in Financial Reporting.........................11 Financial Section Report of Independent Auditors .............................................................................14 Management's Discussion and Analysis..................................................................17 Financial Statements...........................................................................................22 Consolidated Statements of Net Position......................................................23 Consolidated Statements of Revenues, Expenses and Changes in Net Position...25 Consolidated Statements of Cash Flows.......................................................26 Notes to Financial Statements...............................................................................28 Required Supplementary Information......................................................................68 Cost Sharing Defined Benefit Pension Plans..................................................69 Schedule of Changes in Net OPEB Liability and Related Ratios.........................71 Supplementary Information....................................................................................75 Consolidating Statement of Net Position........................................................76 Consolidating Statement of Revenues, Expenses and Changes in Net Position.....78 Consolidating Statement of Cash Flows .......................................................80 Statistical Section Statistical Section Objectives and Index...................................................................83 Financial Trends Consolidated Statements of Revenues, Expenses, and Changes in Net Position....84 Net Position by Component and Segment........................................................85 Revenue Capacity Historical Customer Mix and Rates.................................................................86 Average Residential Bill Comparison...............................................................87 Ten Largest Customers and Sales Mix...........................................................88 Debt Capacity DebtCoverage .......................................................................................89 Total Long-Term Debt per Customer and Ratios..............................................90 Demographic and Economic Information Population, Income, Labor Force and Unemployment.........................................91 Principal employers......................................................................................92 Operating Information Number of employees, customers, demand volumes, and capital assets ................93 Capital Assets by Function...........................................................................94 Page 13 Page 174 of 315 INTRODUCTORY SECTION 74 Jl_.--...«r Now- r. r � TRUCKEE DONNER PUBLIC UTILITY DISTRICT Photo by Tim Erskine ©Erskine Creative Photography A. .__.�.__._._ .....ten...... . .. �..2�. - Page 4 Page 175 of 315 TRUCKEE DONNER Public Utility District General Manager Brian C.Wright Executive May 30, 2023 Leadership Team Dear Board of Directors and Customers of the District, Joe Horvath Electric Utility Director) The staff of Truckee Donner Public Utility District(District)is pleased to submit to you the Annual AGM Comprehensive Financial Report (Report)for the year ended December 31, 2022. The Report Chad J.Reed provides an assessment of the District's financial condition, informs readers about the District's Water Utility Director services, gives details of infrastructure replacement projects, discusses current issues and Shanna Kuhlemier provides financial and demographic trend information. We are proud to announce the 2021 District Clerk Report was awarded a Certificate of Achievement of Excellence in Financial Reporting by the Government Finance Officers Association (GFOA). We deem the Report an excellent example Scott crow Chief Information of financial transparency for the District and will be submitting the 2022 Report for award Officer evaluation. Steven Poncelet The Report consists of management's representations of the finances and other information of PIO&Strategic Affairs and for the District. Consequently, management assumes full responsibility for the Director completeness and reliability of all the information presented in this report. To provide a Michael Salmon reasonable basis for making these representations, management has established internal Chief Financial officer controls that are designed to protect the District's assets from loss, theft or misuse and to compile sufficient reliable information to prepare the District's financial statements in conformity Director Jtor Steward with Generally Accepted Accounting Principles(GAAP). The cost of internal controls should not Resources Humanrces and outweigh their benefits. Therefore the District's comprehensive framework of internal controls Risk Management has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management,we assert that to the best Board of Directors of our knowledge and belief, this financial report is complete and reliable in all material aspects. Joseph Aguera Jeff Bender The District's financial statements have been audited by Moss Adams LLP, an independent firm Christa Finn of licensed certified public accountants.The goal of the audit is to provide reasonable assurance Kim Harris that the financial statements of the District for the year ended December 31, 2022 are free of Tony Laliotis material misstatement.The independent auditor concluded based upon the audit that there was a reasonable basis for rendering an unmodified or clean opinion that the District's financial statements are fairly presented in conformity with GAAP. The independent auditor's report is presented as the first component of the financial section of this Report. GAAP requires that management provide a narrative introduction, overview and analysis to accompany the basic financial statements in the form of the Management's Discussion and Analysis (MD&A).This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The District's MD&A can be found in the finance section immediately following the report of the independent auditors. District Overview In 1927, the District was formed by and continues to operate under the State of California Public Utility District Act. The District provides electric and water utility services with a service territory of 45.5 square miles, beginning four miles from the northern border just beyond Alder Creek Road, south to Placer County, and 11 miles from just beyond the western shore of Donner Lake eastward to the rim of Boca Dam and the Hirschdale community. As of December 31, 2022 the District served 14,648 electric utility customer accounts and 13,586 water utility customer accounts. Page 15 SPECIAL DISICT PUB�iC 11570 Donner Pass Road,Truckee,CA 96161 1 (530)587-3896 1 tdpud.org PGpE'=�R °L LEADERSHIP FOUNDATION A.—P""k'°"'"- Page 176 of 315 The District's service territory is predominately within the town borders of the Town the Truckee(Truckee). Truckee's historical downtown flourished as a railroad station town and gateway to Lake Tahoe. Truckee is generally considered a resort town or bed base for resort and outdoor recreation activities. Truckee's stated current population of 17,100 varies widely throughout the seasons of the year due to tourism and seasonal residences. Winter months are busy with alpine skiing and other winter activities vacationers, summer is robust with hiking, biking, boating and other summer activities, while the shoulder seasons are less busy with primary residents predominately. While Truckee's downtown base elevation is 5,817 feet (1,773 meters), the District's service territory elevations range from 5,745 feet (1,751 meters) to 7,370 (2,246 meters). This wide range of elevation creates utility service challenges, explained in detail later in this letter. The District is governed by five elected at-large, Board members. Each elected Board member serves four- year staggered terms. The five member Board of Directors serve as the governing body with respect to policy and fiduciary responsibility. The General Manager reports to the Board of Directors and all other District employees report up through or directly to the General Manager. An organization chart is provided after this letter to provide additional insights. The District's electric utility (Electric) sold 167 MWh of energy to customers in 2022, a record high MWh. Electric's system is a transmission-dependent, non-energy producing, distribution electric utility. Electric services the over 14,600 accounts across 233 miles of distribution lines; 135 miles of overhead pole lines and 98 miles of underground lines. For energy sources, Electric has aggressively pursued renewable power sources and currently has approximately 60% renewable power procurement. The winter months can be harsh, with extreme cold and an average snowfall of over 400 inches (over 700 inches this 22/23 winter season!). The summer months consist of high daytime heat, cool night time temperatures, low humidity, nominal precipitation and high winds; creating extreme fire danger. Despite these challenging conditions, Electric has a long history of reliable power and in March 2021 was awarded RP3 Diamond Level (highest level) by American Public Power Association's Reliable Public Power Provider program which recognizes utilities that demonstrate high proficiency in reliability, safety, workforce development, and system improvement. The District's water utility (Water) produced 1,556 million (that's 1.6 billion) gallons of water for customers in 2022. Water's system is a 100% wells sourced water system and potable water production capacity is 10,250 gallons per minute or 14.8 million gallons per day. Water services the over 13,500 accounts by a system of 13 active water wells, 32 active storage tanks (9.4mg), 25 pumping stations, 47 pressure zones, and 220 miles of pipeline. The harsh conditions discussed in the previous paragraph, as well as, the 1,625 feet (495 meters) elevation variance across the service territory present water service challenges. Water reliability of supply and quality are paramount to any potable water utility system. The Water system wells access an aquifer which has been extensively studied and tested; determining the aquifer adequate for current and forecasted demand, and further, is not meaningfully impacted by drought cycles. The Water system quality is routinely tested (over 700 tests performed annually)and is consistently below federal and state regulated maximum contaminant levels(MCL)for all regulated contaminants. The District consistently advises and educates customers on matters affecting their water supply and water quality. The District prepares an annual Consumer Confidence Report (CCR) that explains critical drinking water information. Current and prior CCRs are available on the District's website, www.tdr)ud.org. In addition to core Electric and Water utilities,the District's blended component units include two Community Facilities Districts (CFD), Old Greenwood and Gray's Crossing. 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. Page 16 Page 177 of 315 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. Local Economic Conditions Truckee and the greater regional area known as Lake Tahoe, is a very popular summer and winter vacation destination, due in part to the relatively close proximity to the Bay Area region of Northern California. Truckee's location near Lake Tahoe causes Truckee to be a gateway bedbase for the tourism economy, but also has a small town local economy with its population of approximately 17,000 residents. The District's Electric customers are categorized between primary residential of 40% and secondary (second home) residential of 60%. With the start of pandemic impacts in March 2020, while the tourism business essentially stopped, Truckee saw a mass influx of second homes utilization, a combination of both the owner of the second homes and short-term rentals of the second homes. In the continued pandemic, in 2021 the District realized a 2.7% increase in electricity usage over 2020 and an increase in 2022 compared to 2021 of 2.4%. The 2022 increase was due in part to a colder than average November and December, as well as, account growth of 1.3% Truckee residential and commercial real estate development has tapered over the last year's peaks. Truckee real estate as of March 2023 indicates a Median Sale Price of$1,225,000, down 7.5%year-over- year as compared to in 2021 up 24% year-over-year(source Redfin). The March 2023 Zillow Home Value Index for Truckee region of$979,700 is down 8.7%year-over-year and up 27% last year at this time. As California and the nation continue to drive toward net zero carbon emissions and the resulting electrification of the state and country, the District is well positioned for the short-term to meet these service needs and has included these impacts in the District's long-term planning. District in 2022 Financial Information and Policies The Total Net Position of the District was $121.8 million as of December 31, 2022, increasing $7.0 million or 6.1% compared to December 31, 2021. Operating income of$2.5 million accounts for 36% of the Total Net Position increase. The FY 2022 operating income of $2.5 million represents a margin of 5.3% of operating revenues, which compares to a FY 2021 margin of 2.1%. For 2022 compared to 2021, operating revenues increased 10.4% and operating expenses increased 6.9%, with a notable expense increase in purchased power (up $3.3 million or 24%). Total non-operating revenue and expenses net to revenue of $1.3 million and contributed assets of $3.2 million account for the remainder of the Total Net Position increase. Total Cash, Cash Equivalents, and Investments was $60.4 million as of December 31, 2022, increasing $20.2 million or 51% compared to December 31, 2021. The increase was primarily driven by long-term debt issuance for capital improvements of $22.9 million. Refer to Financial Section's Consolidated Statements of Cash Flows and Note 2 of Notes to Financial Statements for additional information regarding components of cash, cash equivalents, and investments. The Management's Discussion and Analysis in the Financial Section provides additional information on the FY 2022 financial results and financial condition of the District. The District reviewed numerous new GAAP accounting pronouncements and adoption of GASB Statement No. 87, Leases impacted 2022 and 2021 was restated to comport with No. 87. Refer to Financial Section, Note 1 of Notes to Financial Statements for additional information regarding all the key financial policies of the District and details on new accounting pronouncements. Page 17 Page 178 of 315 Budgetary Controls As a public agency, the Board and District embrace the fiduciary responsibility and stewardship of the District's financial resources. District staff works with the Board of Directors in workshop meetings and public hearing meetings to develop a biennial budget before Board adoption. The budget serves as a management tool to set appropriate service rates, allocate available resources, and includes a ten-year financial master plan. The legal level of budgetary control is maintained at the fund, department, and object account level. Key budgetary control is provided in District Code Title 3 Finance and Accounting, which includes extensive financial, budget, accounting, purchasing, reserves, investments, and other internal control policies. Board level budgetary controls include approval thresholds for expenditures and personnel additions, as well as, Board semi-annual review of financial statements and monthly review of disbursements and reserve fund balances. Management budgetary controls include monthly financial statement and budget report review, as well as, financial policies and procedures in accordance with aforementioned District Code. Long Term Financial Planning, Public Outreach and Initiatives 2022 was predominantly a strategic and operating plan execution year for the District's adopted Budget which includes the Water and Electric 10-year Capital Improvement Plans. These plans provide valuable short and long term information to assist with resource planning in the FY 2022 and FY 2023 biennial budget cycle, which includes a 10-year Financial Master Plan and was approved in fall of 2021. A comprehensive cost of service analysis report and resulting revenue requirements and customer rate changes was completed in 2020 for Water (for through 2025) and in 2021 for Electric (for through 2023). Electric has an active analysis underway in 2023 for addressing 2024 and 2025 rates. The review of these analyses is held in open/noticed Board meetings, as well as, noticed Public Hearings. In May 2021, the District completed an extensive strategic planning process, which included significant community outreach. Community participation exceeded the District's expectations and provided valuable feedback for not only the strategic plan, but also perceptions and insights into the District as a whole as part of our community. An update to the strategic plan is underway in 2023. The District sincerely thanks the community for their valued engagement with the District.The Board adopted 2021-2024 Strategic Plan includes the following four key initiatives: • Community Broadband • Utility Undergrounding • 100% Clean Renewable Energy • Local Clean Generation More information on the strategic plan can be found on the District website (tdpud.org). Page 18 Page 179 of 315 The District conducts regular Board meetings, generally on the first and second Wednesdays of each month, which are noticed and open to the public. The dates of upcoming meetings and an archive of past meetings can be found on the District's website (tdpud.org). Closing Comments We would like to thank the many staff involved in preparing this Report, a true team effort. And lastly, with the pandemic finally waning,we would like to thank all ourvalued employees for their service and dedication to the District and the community during these unique and challenging times. Respectfully submitted, Brian C.Wright Michael R. Salmon General Manager Chief Financial Officer Page 19 Page 180 of 315 Truckee Donner Public Utility District Organization Chart for 2022 Customers/Community Electric(14,600 customers) Water(13,600 customers) Board of Directors Elected Officials(5) Auditors I Legal Counsel ...................................r ....................................• General Manager Employee Full Time Equivalents(FTE) 1 FTE 81.5 Total FTE for 2022 Budget Electric District Clerk Information Operations Dist.Clerk,Contracts,Records 4 FTE Technology (including Engineering) (including SCADA and GIS) 25.5 FTE Human Resources 6 FTE HR,Payroll,Risk Mtgt. 3 FTE Water Administrative Services(CFO) Legislative and Regulatory Operations (Finance,Facilities,Fleet, Affairs,and Public (including Engineering) Cons enotion,and Customer Service) Information Officer 18 FTE 22 FTE 2 FTE List of Elected and Appointed Officials Elected Officials FY'2021(Term) FY'2022(Term) Appointed Officials-for both 2021 and 2022 Board President Christa Finn(2018-2022) Christa Finn(2018-2022) Treasurer Michael R.Salmon Board Vice President Tony Laliotis(2018-2022) Jeff Bender(2020-2024) District Clerk Shanna Kuhlemier Board of Director Jeff Bender(2020-2024) Tony Laliotis(2018-2022) General Manager Brian Wright Board of Director Joe Aguera(2020-2024) Joe Aguera(2020-2024) Board of Director Kim Harris(2020-2024) Kim Hams(2020-2024) Terms for directors run December of starting year through December of even years, four year terms. Page 10 Page 181 of 315 GFOA Certificate of Achievement for Excellence in Financial Reporting The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to Truckee Donner Public Utility District for its annual comprehensive financial report (ACFR)for the fiscal year ended December 31, 2021. This was the second year that the District has achieved this prestigious award. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government financial reports. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized annual comprehensive financial report, whose contents conform to program standards. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only.We believe that this ACFR continues to meet the Certificate of Achievement Program's requirements and are submitting it to GFOA to determine its eligibility for certificate award. Governmeut Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to Tmckee Donner Public Utility District California For its Annual CornprehenslVe Financial Report For the Fiscal Year Ended December 31,2021 Ap' Executive DirectovCEO Page 111 Page 182 of 315 FINANCIAL SECTION m A` � • AAdwwi The American Public Power Association's Reliable Public Power Provider program recognizes utilities that demonstrate high proficiency in reliability, safety, workforce development, and system improvement. Truckee Donner Public Utility District received the highest level RP3 award designation in March 2021 for three years. 3RELIABLE RUBIIC pala R' DIAMOND AWARD RECIPIENT MARCH 2O21 .rirK PR0716ER American PubticiR wrerAssociation Page 12 Page 183 of 315 TRUCKEE DONNER PUBLIC UTILITY DISTRICT CONSOLIDATED FINANCIAL STATEMENTS Including Report of Independent Auditors December 31, 2022 and 2021 TABLE OF CONTENTS Report of Independent Auditors ..............................................................................................14 Management's Discussion and Analysis....................................................................................17 FinancialStatements.............................................................................................................22 Consolidated Statements of Net Position........................................................................23 Consolidated Statements of Revenues, Expenses and Changes in Net Position.....................25 Consolidated Statements of Cash Flows.........................................................................26 Notes to Financial Statements.................................................................................................28 Required Supplementary Information........................................................................................68 Cost Sharing Defined Benefit Pension Plans...................................................................69 Schedule of Changes in Net OPEB Liability and Related Ratios..........................................71 Supplementary Information.....................................................................................................75 Consolidating Statement of Net Position.........................................................................76 Consolidating Statement of Revenues, Expenses and Changes in Net Position.......................78 Consolidating Statement of Cash Flows...........................................................................80 Page 113 Page 184 of 315 MOSSADAMS Report of Independent Auditors The Board of Directors Truckee Donner Public Utility District Report on the Audit of the Financial Statements Opinion We have audited the consolidated financial statements of Truckee Donner Public Utility District (the "District"), which comprise the consolidated statements of net position as of December 31, 2022 and 2021, 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 consolidated financial statements. In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of the District as of December 31, 2022 and 2021, 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. Basis for Opinion We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GARS). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the District and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Emphasis of Matter As discussed in Note 1 to the financial statements, the District recently adopted the provisions of Governmental Accounting Standards Board (GASB) No. 87, Leases, effective for periods ending after June 15, 2021. The adoption of this resulted in the restatement of previously reported amounts for the year ended December 31, 2021. Our opinion is not modified with respect to this matter. Responsibilities ofManagementfor the Financial Statements Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the District's ability to continue as a going concern within one year after the date that the financial statements are issued. Page 185 of 315 Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the consolidated financial statements. In performing an audit in accordance with GAAS, we: Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Obtain an understanding of internal control relevant to the audit 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 District's internal control. Accordingly, no such opinion is expressed. Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the District's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control—related matters that we identified during the audit. Page 186 of 315 Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the accompanying management's discussion and analysis, the schedules of proportionate share of net pension liability, schedules of employer contributions, schedules of the District's change in the net OPEB liability and related ratios, schedule of the District's OPEB contributions, and the schedule of investment returns be presented to supplement the basic financial statements. Such information is the responsibility of management and, 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 to 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. Supplementary Information Our audit was conducted for the purpose of forming an opinion on the consolidated financial statements that collectively comprise the District's consolidated financial statements. The accompanying consolidating statements of net position, and the related consolidating statements of revenues, expenses and changes in net position and cash flows as of and for the year ended December 31, 2022 are presented for purposes of additional analysis and are not a required part of the consolidated financial statements (collectively, the supplementary information). The supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the consolidated financial statements. The information has been subjected to the auditing procedures applied in the audit of the consolidated financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the consolidated financial statements or to the consolidated financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information, as described above, is fairly stated, in all material respects, in relation to the consolidated financial statements as a whole. Other Information Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Portland, Oregon May 30, 2023 Page 187 of 315 TRUCKEE DONNER PUBLIC UTILITY DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2022 and 2021 As financial management of the Truckee Donner Public Utility District (the 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, 2022 and 2021, with additional comparative data for 2020. This discussion and analysis is designed to assist the reader in focusing on the significant financial topics, 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. OVERVIEW OF THE 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-term and long-term financial information about the District's activities. The reporting entity consists of the primary government, which provides two utilities (electric utility and water utility), and the blended component units of two Community Facilities Districts. Further details about the component units are provided in note 1(A)to the financial statements. The basic financial statements, presented on a comparative format for the years ended December 31, 2022 and 2021, consist of: • Consolidated Statement of Net Position: This statement presents information on all of the District's assets, deferred outflows of resources and liabilities, and deferred inflows of resources 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. These amounts are as of a point in time, the District's year ending December 31. • Consolidated Statements of Revenues, Expenses, and Changes in Net Position: This statement provides the revenues and expenses for each of the presented years. The statement provides a measurement of the District's operations over the presented years and can be used to determine whether the District has successfully recovered all its costs through its rates and other charges. • Consolidated Statement of Cash Flows: This statement 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 is an important indicator of the District's liquidity and financial condition. • Notes to the Financial Statements: The notes 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. The financial statements report also contains other supplementary information, the independent auditor's opinion letter, and this Management Discussion and Analysis. Page 117 Page 188 of 315 TRUCKEE DONNER PUBLIC UTILITY DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2022 and 2021 CONDENSED COMPARATIVE FINANCIAL INFORMATION Provided below is select condensed financial statements for December 31, 2022, 2021, and 2020. CONSOLIDATED STATEMENT OF NET POSITION Increase 2021 (Decrease) 2022 (Restated) 2020 2022-2021 ASSETS AND DEFERRED OUTFLOWS OF RESOURCES Current assets $ 69,892,464 $ 45,918,615 $ 54,424,068 $ 23,973,849 Non-current assets: Capital assets,net 136,970,146 132,882,996 132,031,519 4,087,150 Operating investments 3,678,068 3,966,836 - (288,768) Designated investments 5,389,941 5,848,933 - (458,992) Restricted investments - - 1,674,293 Leases Receivable,net of current portion 1,452,595 1,514,594 - (61,999) Other long-term assets 62,229 124,461 186,693 (62,232) Total Assets 217,445,443 190,256,435 188,316,573 27,189,008 Deferred outflows of resources 9,549,869 5,655,327 6,255,727 3,894,542 TOTAL ASSETS AND DEFERRED OUTFLOWS OF RESOURCES $226,995,312 $195,911,762 $ 194,572,300 $ 31,083,550 LIABILITIES,DEFERRED INFLOWS OF RESOURCES AND NET POSITION Current liabilities $ 10,860,653 $ 8,931,512 $ 9,822,138 $ 1,929,141 Non-current Liabilities Long-term debt,net of current portion 64,463,000 44,261,709 50,401,520 20,201,291 Net pension liability 16,783,065 7,683,937 14,023,172 9,099,128 OPEB liability 4,389,294 5,273,457 5,975,587 (884,163) Unearned revenues 5,282,010 5,583,404 6,845,107 (301,394) Total Liabilities 101,778,022 71,734,019 87,067,524 30,044,003 Deferred inflows of resources 3,370,855 9,364,121 868,870 (5,993,266) NET POSITION Net investment in capital assets 88,640,941 86,889,607 79,111,738 1,751,334 Restricted for debt service 6,676,481 7,248,976 11,439,913 (572,495) Unrestricted 26,529,013 20,675,039 16,084,255 5,853,974 Total Net Position 121,846,435 114,813,622 106,635,906 7,032,813 TOTAL LIABILITIES,DEFERRED INFLOWS OF RESOURCES AND NET POSITION $226,995,312 $195,911,762 $ 194,572,300 $ 31,083,550 CONSOLIDATED STATEMENTS OF REVENUES,EXPENSES Increase AND CHANGES IN NET POSITION 2041 (Decrease) 2022 (Restated) 2020 2022-2021 Sales to consumers $ 46,272,358 $ 41,835,534 $ 38,988,024 $ 4,436,824 Other operating revenues 1,755,801 1,664,933 2,754,003 90,868 Total Operating Revenues 48,028,159 43,500,467 41,742,027 4,527,692 Operating expenses 45,485,585 42,565,285 38,847,181 2,920,300 Operating Income 2,542,574 935,182 2,894,846 1,607,392 Non-operating special tax revenues 3,655,524 3,431,174 3,375,327 224,350 Non-operating interest expense (2,727,946) (2,369,633) (2,530,616) (358,313) Non-operating other revenues 1,774,870 131,863 854,319 1,643,007 Non-operating other expenses (1,434,081) (302,544) (276,840) (1,131,537) Income before capital contributions 3,810,941 1,826,042 4,317,036 1,984,899 Capital contributions,net 3,221,872 6,351,674 2,043,795 (3,129,802) Change in net position 7,032,813 8,177,716 6,360,831 (1,144,903) Net Position,Beginning of Year 114,813,622 106,635,906 100,275,075 8,177,716 NET POSITION,END OF YEAR $121,846,435 $114,813,622 $ 106,635,906 $ 7,032,813 Page 18 Page 189 of 315 TRUCKEE DONNER PUBLIC UTILITY DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2022 and 2021 ANALYSIS OF OVERALL FINANCIAL POSITION AND RESULTS OF OPERATIONS 2022 as compared to 2021: The District's overall financial position improved in 2022 by $7.0 million or 6.1% as measured by total net position. In 2022, the total net position increased $2.5 million from operating activities, $1.3 million from non-operating activities, and $3.2 million from capital, debt and monetary contribution activities. Operating income in 2022 of$2.5 million increased $1.6 million or 172% compared to$0.9 million in 2021. The components of operating income summarize as follows. Total operating revenues in 2022 of $48.0 million were $4.5 million or 10.4% greater than 2021, driven primarily by electric and water effective rate increases for 2022 of 8.8% and 8.0%, respectively. Total operating expenses in 2022 of$45.5 million were$2.9 million or 6.9% greater than 2021, with the increase primarily driven by purchased power costs increase of $3.3 million. Demand or volume represents 2% of the power costs increase and the cost of wholesale power represents 98% of the increase driven most notably by natural gas (energy supply to electricity plants) price volatility. Non-operating revenues and expenses, net revenues in 2022 of$1.3 million were$0.4 million or 42%above 2021 due primarily to$1.2 million in 2021 storm disaster financial aid from State of California funds received in 2022. Capital and other contributions of $3.2 million were down 49% compared to 2021, driven by a decline in construction activity and related project contributions to the District. The resulting change in Total Net Position in 2022 of$7.0 million was $1.1 million or 14% lower than the change in 2021. Year-end 2022 current assets of $69.9 million increased $24.0 million or 52% primarily due to $22.4 million of cash funds in new debt issuance proceeds. Year-end 2022 total assets of$217.4 million increased $27.2 million or 14%, which includes a $4.1 million increase in net total capital assets. Year-end 2022 total liabilities of$101.8 million increased $30.0 million or 42% primarily driven by a $20.2 million increase in long-term debt (discussed further below) and a $9.1 million increase in net pension liability. Deferred inflows decreased$6.0 million and deferred outflows increased$3.9 million, both changes driven primarily by pension deferred inflow and outflow changes. 2021 as compared to 2020: The District's overall financial position improved in 2021 by $8.2 million or 7.7% as measured by total net position. In 2021, the total net position increased $0.9 million from operating activities, $0.9 million from non-operating activities, and $6.4 million from capital, debt and monetary contribution activities. Operating income in 2021 of$0.9 million decreased $2.0 million or 68% compared to $2.9 million in 2020. The components of operating income summarize as follows. Total operating revenues in 2021 of $43.5 million were $1.7 million or 4.2% greater than 2020, driven primarily by electric and water average rate increases for 2021 of 2.8% and 8.9%, respectively. Total operating expenses in 2021 of$42.6 million were $3.7 million or 9.6% greater than 2020, with the increase primarily driven by purchased power costs increase of $2.3 million (cost and demand factors) and electric infrastructure storm damage and related power restoration efforts for an increase of$1.5 million (severe storm damage December 2021, with $1.2 million in disaster relief funds received in 2022 as previously mentioned). Non-operating revenues and expenses, net revenues in 2021 of$0.9 million were$0.5 million or 37% below 2020 due primarily to the decline in investment income. Capital and other contributions in 2021 of $6.3 million were up 211%to 2020, driven by an increase construction activity and related projects contributions to the District. The resulting Change in Net Position in 2021 of$8.2 million was$1.8 million or 29% higher than the change in 2020. Page 119 Page 190 of 315 TRUCKEE DONNER PUBLIC UTILITY DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2022 and 2021 ANALYSIS OF ELECTRIC UTILITY Electric total net position as of December 31, 2022 was $78.4 million and increased $2.2 million or 3% compared to December 31, 2021. Electric's total net position increased $0.5 million from operating activities, increased $0.3 million from non-operating activities, and increased $1.4 million from capital, debt and monetary contributions. Key components of this$2.2 million change in total net position are as follows. Electric operating income of$0.5 million increased $0.7 million or 349%compared to($0.2)million in 2021. The components of operating income summarize as follows. Electric operating revenues of$33.1 million increased $3.2 million or 11% in 2022 compared to 2021. Electric's sales to customers increased 12% to 2021; comprised of a 9% effective rate increase, 1% customer growth, and 2% demand growth. Other Electric operating revenues were up 4% due primarily to an increase various ancillary billings mostly offset by a decline in cap and trade prices. Electric operating expenses of $32.6 million compared to 2021 reflect an increase of $2.5 million or 2.8% driven primarily by increased purchased power costs of $3.3 million or 24% and less electric infrastructure storm damage and related power system restoration in 2022 of$1.1 million. Electric non-operating revenues (expenses) net of $0.3 million increased $0.4 million or 264% compared to($0.2)million in 2021. The increase is driven by$1.3 million in financial aid received in 2022($1.2 million for the 2021 storm disaster and $0.1 million for pandemic-driven customer payment arrearages), partially offset by an $0.8 million unrealized decrease in investments market valuation charge (rapid increase in market interest rates impact on market valuation of long-term investment holdings). Electric contributions of$1.4 million decreased $3.1 million or 47% compared to$4.5 million in 2021. The decrease is driven by decline in construction activity and related project's contributions to the District. Electric has no significant restrictions, commitments, or other limitations that would affect the availability of resources for future use; other than $6.5 million in restricted unspent long-term debt proceeds funds and $1.0 million in other restricted funds. ANALYSIS OF WATER UTILITY Water total net position as of December 31, 2022 was $68.8 million and increased $3.0 million or 5% compared to December 31, 2021. Water's total net position increased$2.1 million from operating activities, decreased $1.0 million from non-operating activities, and increased $1.8 million from capital, debt and monetary contributions. Key components of this$2.9 million change in total net position are as follows. Water operating income of$2.0 million increased $0.9 million or 80% compared to$1.1 million in 2021. The components of operating income summarize as follows. Water operating revenues in 2022 of $16.7 million increased $1.3 million or 8% compared to 2021. Water's sales to customers increased 9%to 2021; comprised of an 8%average rate increase and 1% customer growth. Water gallons billed in 2022 decreased 8% compared to 2021 due primarily to drought related water use regulatory restrictions, with nominal impact on revenues (nor costs). Other water operating revenues were flat year to year. Water operating expenses in 2022 of$14.7 million increased $0.4 million or 3%to 2021 driven primarily by personnel rate of pay increases and inflation. Water non-operating revenues(expenses) net of($0.9)million decreased $0.4 million or 74%compared to ($0.5) million in 2021. Notable variances to prior year include $0.5 million for unrealized investments market valuation charge, $0.3 million increase in interest expense, and $0.3 million in grant revenues. Water contributions of $1.8 million decreased $0.1 million or 4% compared to $1.9 million in 2021. The decrease is driven by decline in construction activity and related project's contributions to the District. Water has no significant restrictions, commitments, or other limitations that would affect the availability of resources for future use; other than $11.9 million in restricted unspent long-term debt proceeds funds and $3.1 million in other restricted funds. Page 120 Page 191 of 315 TRUCKEE DONNER PUBLIC UTILITY DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2022 and 2021 CAPITAL ASSETS As of December 31, 2022, 2021, and 2020, the District had $137.0 million, $132.9 million, and $132.0 million, respectively, invested in a variety of capital assets, net of accumulated depreciation. The District's capital assets, net of accumulated depreciation, increased $4.1 million or 3.1% in 2022. In 2022, capital expenditures of $11.0 million outpaced depreciation expense of $7.7 million, with the year focused on capital execution of major projects(water utility primarily)in 2022, in accordance with the approved 10-year capital improvement plans for both electric and water utilities. In 2021, depreciation expense of$7.9 million outpaced capital expenditures of$6.4 million,with the year focused on capital planning and certain projects. Electric utility capital expenditures in 2022 of$2.7 million included $1.0 million in pole replacements, $0.9 million in distribution system modernization replacements,$0.5 million in system hardening,and$0.3 million in various other projects. Electric utility capital expenditures in 2021 of$3.7 million included $1.1 million for Truckee substation modernization rebuild, $0.7 million in pole replacements, $0.7 million in vehicle replacements, $0.7 million in distribution system modernization replacements, and $0.5 million in various other projects. Electric depreciation expense in 2022 of$3.2 million decreased$0.2 million or 6%compared to 2021. Water utility capital expenditures in 2022 of$8.3 million included $2.2 million of pipeline replacement, $1.2 million in new pipeline and pump station, $1.1 million for new tank, $1.1 million in tanks rehabilitation, $0.5 million in SCADA upgrades, and $2.2 million in various other projects. Water utility capital expenditures in 2021 of $2.6 million included $1.2 million of pipeline replacement, $0.7 million in wells, tanks and pump station improvements, $0.6 million in SCADA upgrades, and $0.1 million in various other projects. Water depreciation expense in 2022 of$4.5 million decreased $0.0 million or 0% compared to 2021. See Note 4 to the Financial Statements for further information regarding capital assets. LONG-TERM DEBT Long-term debt includes revenue bonds and installment loans. At December 31, 2022, 2021, and 2020, the District had $67.2 million, $47.0 million, and $55.0 million, respectively, in long-term debt outstanding. In 2022, the District issued new electric and water debt with net project proceeds of$6.5 million and $15.9 million respectively. No new debt was issued in 2021 or 2020. See Note 6 to the Financial Statements for further information regarding long-term debt. ECONOMIC FACTORS AND NEXT YEARS BUDGETS AND RATES The District operates on a biennial budget cycle. The FY22 & FY23 Board approved budget includes an assumption for customer growth 0.5% per year, conservatively below recent 1% average for the District. Revenue projections for fiscal year 2022 and 2023 include average rate increases for Electric of 8.5% and 6.5% respectively and for Water 9% and 8% respectively. For 2022, approved average rate increases are consistent with budget. Rates by rate class can be found on the District's website at www.tdr)ud.org. Expenditures for Electric and Water excluding debt service, for Budget year 2022 increased over Budget year 2021 by 12%and 14%, respectively;in part due to estimated inflation impacts. Overall,the pandemic's impact financially on the District has not been material,with certain cost increases and an increase in unpaid billings, more than offset by an increase in energy demands due to increased occupancies. 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, Attn: Treasurer, 11570 Donner Pass Road, Truckee, CA 96161. Page 121 Page 192 of 315 FINANCIAL STATEMENTS Page 193 of 315 TRUCKEE DONNER PUBLIC UTILITY DISTRICT CONSOLIDATED STATEMENTS OF NET POSITION December 31, 2022 and 2021 ASSETS AND DEFERRED 2021 OUTFLOWS OF RESOURCES 2022 (Restated) CURRENT ASSETS Cash and cash equivalents Operating $ 10,019,255 $ 7,557,344 Designated 16,664,262 15,943,781 Restricted 24,620,177 6,808,321 Total cash and cash equivalents 51,303,694 30,309,446 Accounts receivable, net 3,489,204 2,311,007 Unbilled revenues 3,752,196 3,471,176 Special assessments receivable 8,376,288 7,742,235 Accrued interest receivable 202,649 29,064 Current portion of leases receivable 34,423 22,111 Materials and supplies 1,670,319 1,005,433 Prepaid expenses 930,044 892,054 Other 133,647 136,089 Total Current Assets 69,892,464 45,918,615 NON-CURRENT ASSETS Operating investments 3,678,068 3,966,836 Designated investments 5,389,941 5,848,933 Broadband maintenance prepaid 62,229 124,461 Leases receivable, net of current portion 1,452,595 1,514,594 Capital Assets Utility plant 233,388,548 219,900,995 Accumulated depreciation (100,023,290) (92,750,899) Construction work in progress 3,604,888 5,732,900 Total Capital Assets 136,970,146 132,882,996 Total Non-Current Assets 147,552,979 144,337,820 TOTAL ASSETS 217,445,443 190,256,435 DEFERRED OUTFLOWS OF RESOURCES Pension 6,963,293 2,699,378 OPEB 2,173,808 2,496,749 Unamortized loss on refunding 412,768 459,200 Total Deferred Outflows of Resources 9,549,869 5,655,327 TOTAL ASSETS AND DEFERRED OUTFLOWS OF RESOURCES $ 226,995,312 $ 195,911,762 The accompanying notes are an integral part of these consolidated financial statements. Page 123 Page 194 of 315 TRUCKEE DONNER PUBLIC UTILITY DISTRICT CONSOLIDATED STATEMENTS OF NET POSITION December 31, 2022 and 2021 LIABILITIES, DEFERRED INFLOWS OF 2021 RESOURCES AND NET POSITION (Continued) 2022 (Restated) CURRENT LIABILITIES Other Liabilities Accounts payable $ 5,612,334 $ 3,659,615 Customer deposits 252,694 318,905 Other 1,528,802 1,570,523 Total Other Liabilities 7,393,830 5,549,043 Current Liabilities Payable From Restricted Assets Current portion of long-term debt 2,703,200 2,716,250 Accrued interest payable 763,623 666,219 Total Current Liabilities Payable from Restricted Assets 3,466,823 3,382,469 Total Current Liabilities 10,860,653 8,931,512 NON-CURRENT LIABILITIES Long-term debt, net of discounts and premiums 64,463,000 44,261,709 Net pension liability 16,783,065 7,683,937 Net OPEB liability 4,389,294 5,273,457 Unearned revenues 5,282,010 5,583,404 Total Non-Current Liabilities 90,917,369 62,802,507 Total Liabilities 101,778,022 71,734,019 DEFERRED INFLOWS OF RESOURCES Pension 986,199 7,196,801 OPEB 1,002,315 630,615 Leases receivable 1,382,341 1,536,705 Total Deferred Inflows of Resources 3,370,855 9,364,121 NET POSITION Net investment in capital assets 88,640,941 86,889,607 Restricted 6,676,481 7,248,976 Unrestricted 26,529,013 20,675,039 Total Net Position 121,846,435 114,813,622 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND NET POSITION $ 226,995,312 $ 195,911,762 The accompanying notes are an integral part of these consolidated financial statements. Page 124 Page 195 of 315 TRUCKEE DONNER PUBLIC UTILITY DISTRICT CONSOLIDATED STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION For the year ended December 31, 2022 and 2021 2021 2022 (Restated) OPERATING REVENUES Sales to customers $ 46,272,358 $ 41,835,534 Standby fees 122,811 124,130 Cap and trade proceeds 514,604 847,185 Other 1,118,386 693,618 Total Operating Revenues 48,028,159 43,500,467 OPERATING EXPENSES Purchased power 16,823,869 13,560,417 Operations and maintenance 12,037,231 12,464,186 Consumer services 2,370,280 2,255,853 Administration and general 6,541,824 6,366,879 Depreciation 7,712,381 7,917,950 Total Operating Expenses 45,485,585 42,565,285 Operating Income 2,542,574 935,182 NON-OPERATING REVENUE(EXPENSES) Special tax revenue 3,655,524 3,431,174 Investment income, net loss (747,522) (185,269) Interest expense (2,727,946) (2,369,633) Amortization credit (expense) 3,901 (38,250) Other non-operating revenues 1,726,783 83,524 Other non-operating expenses (690,460) (79,025) Gain on disposition of assets 48,087 48,339 Total Non-Operating Revenue 1,268,367 890,860 Income Before Contributions 3,810,941 1,826,042 CAPITAL &OTHER CONTRIBUTIONS 3,221,872 6,351,674 CHANGE IN NET POSITION 7,032,813 8,177,716 Net Position - Beginning of Year 114,813,622 106,635,906 NET POSITION -END OF YEAR $ 121,846,435 $114,813,622 The accompanying notes are an integral part of these consolidated financial statements. Page 125 Page 196 of 315 TRUCKEE DONNER PUBLIC UTILITY DISTRICT CONSOLIDATED STATEMENTS OF CASH FLOWS For the year ended December 31, 2022 and 2021 2021 2022 (Restated) CASH FLOWS FROM OPERATING ACTIVITIES Received from customers $ 47,915,665 $ 42,977,071 Paid to suppliers for goods and services (29,964,615) (24,523,068) Paid to employees for services (9,293,838) (8,391,748) Net cash provided by operating activities 8,657,212 10,062,255 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Federal and state financial assistance received 1,694,828 -0- Federal and state financial assistance distributed to customers (192,196) -0- Principal payments on long-term debt (551,751) (1,051,191) Interest payments on long-term debt (6,657) (32,555) Net cash provided (used) by noncapital financing activities 944,224 (1,083,746) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital expenditures for utility plant (10,977,073) (6,367,297) Net proceeds (costs)from disposal of assets 25,025 (176,588) Capital contributions, connection and facility fees 1,649,786 2,158,390 Special assessments receipts 2,399 773,116 Special tax receipts 3,171,904 3,139,260 Restricted Grant Funds Received - 300,000 Proceeds from issuance of new debt 22,456,685 - Principal payments on long-term debt (2,191,518) (6,952,207) Interest payments on long-term debt (2,573,491) (2,386,538) Net cash provided (used) by capital and related financing activities 11,563,717 (9,511,864) CASH FLOWS FROM INVESTING ACTIVITIES Purchases of investments - (10,014,679) Proceeds from maturity of investments - 1,698,882 Interest income received 535,666 215,119 Net cash provided (used) by investing activities 535,666 (8,100,678) Net increase (decrease) in cash and cash equivalents 21,700,819 (8,364,033) CASH AND CASH EQUIVALENTS —Beginning of Year 30,349,455 38,983,488 CASH AND CASH EQUIVALENTS —END OF YEAR $ 52,050,274 $ 30,349,455 NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES Developer and customer added capital assets $ 1,088,519 $ 2,610,655 Recognition of prior period unearned revenues $ 4,032,073 $ 6,081,722 The accompanying notes are an integral part of these consolidated financial statements. Page 126 Page 197 of 315 TRUCKEE DONNER PUBLIC UTILITY DISTRICT CONSOLIDATED STATEMENTS OF CASH FLOWS For the year ended December 31, 2022 and 2021 (continued) 2021 2022 (Restated) RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES Operating income $ 2,542,574 $ 935,182 Noncash items included in operating income Depreciation and amortization 7,712,381 7,917,950 Depreciation charged to other accounts 289,124 433,451 Changes in assets and liabilities Accounts receivable (1,459,216) (401,434) Materials and supplies (664,886) (98,885) Prepaid expenses (37,990) (220,230) Accounts payable 1,982,515 711,009 Customer deposits (56,377) (121,961) Deferred Pension Contributions - GASB 68 (1,564,911) 457,518 Deferred inflow, leases amortization (154,364) - Leases receivable 49,686 - Other current liabilites 18,676 449,655 NET CASH PROVIDED BY OPERATING ACTIVITES $ 8,657,212 $ 10,062,255 RECONCILIATION OF CASH AND CASH EQUIVALENTS TO THE BALANCE SHEET Operating $ 10,019,255 $ 7,557,344 Designated 16,664,262 15,943,781 Restricted funds -current 24,620,177 6,808,321 Operating Investments - non-current 3,678,068 3,966,836 Designated Investments - non-current 5,389,941 5,848,933 Total Cash and Investments 60,371,703 40,125,215 Less: Long-term investments (9,068,009) (10,014,679) Mark to market adjustments 746,580 238,919 TOTAL CASH AND CASH EQUIVALENTS $ 52,050,274 $ 30,349,455 The accompanying notes are an integral part of these consolidated financial statements. Page 127 Page 198 of 315 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2022 and 2021 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. Page 128 Page 199 of 315 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2022 and 2021 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. CASH AND CASH EQUIVALENTS For the purpose of the accompanying statement of cash flows, the District considers all highly liquid instruments with original maturities of three months or less when purchased to be cash equivalents. E. INVESTMENTS The District pools cash and investments. The District's investment policy allows for investments in instruments permitted by the California Government Code and/or the investments permitted by the trust agreements on District financing. 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. Investment income from pooled investments is allocated to all funds in the pool. Interest is allocated on the basis of month end cash amounts for each fund as a percentage of the total balance. The District categorizes the fair value measurements of its investments based on the hierarchy established by generally accepted accounting principles. The fair value hierarchy, which has three levels, is based on the valuation inputs used to measure an assets fairvalue: Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. The District does not have any investments that are measured using Level 3 inputs. Changes in fair value that occur during a fiscal year are recognized as investment income (loss) reported for that fiscal year. Investment Income (loss) includes interest earnings, changes in fair value, and any realized gains or losses upon the sale of investments. F. DESIGNATED ASSETS The board has designated certain resources for future capital projects, replacements, and operational needs. G. 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. H. ACCOUNTS RECEIVABLEAND ALLOWANCES FOR DOUBTFUL ACCOUNTS Accounts receivable are recorded at the invoiced amount and are reported net of allowances for doubtful accounts of$62,800 and $67,800 for 2022 and 2021, respectively. Receivables are considered past due after 30 days and routine collection efforts begin, while remaining consistent with regulatory mandates. District Code allows for the Treasurer to write off delinquent account balances up to 0.17% of the amounts billed. This write off process occurs semi-annually. Page 129 Page 200 of 315 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2022 and 2021 NOTE 1 —ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) I. MATERIALS AND SUPPLIES Materials and supplies are recorded at average cost. J. DEBT PREMIUM, BOND ISSUANCE COSTS, AND DISCOUNTS Original issue and reacquired bond premiums and discounts relating to revenue bonds are amortized over the terms of the respective bond issues using the effective interest method. Debt issuance costs are expensed in the period incurred. K. SPECIAL ASSESSMENT RECEIVABLE Special assessment receivable represents special tax receivables related to community facilities districts (see notes 1T and note 7) and 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. L. AMORTIZED EXPENSES In 2003, the District entered into a broadband dark fiber maintenance agreement with Sierra Pacific Communications (SPC) which is included in the line item "Broadband Maintenance Prepaid" in 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 3). M. 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 acquisition 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 N. 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. Page 130 Page 201 of 315 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2022 and 2021 NOTE 1 —ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) O. REVENUE RECOGNITION 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. P. 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 and other. Q. 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. The District uses this transmission service to import energy over SPPC's transmission system to serve District load. In addition,the District purchases scheduling services from Utah Municipal Power Systems(UAMPS)and the scheduling services are included in the monthly power billings from UAMPS. The purchase of transmission services from SPPC represented 7.9% and 9.0% of total purchased power costs in 2022 and 2021, respectively. In December of 2005, the District entered into an agreement with UAMPS. Subsequently, the District entered into several 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 August 2012, the Horse Butte Wind project began commercial operation and the District owns approximately 15 MW of nameplate capacity that generates about 5 MW on average. The District has also invested in the Veyo Heat Recovery project that came on line in mid-2016. The District receives about 1.7 MW of carbon-free generation from this resource. In September 2019 the District entered into 25-year Purchase Power Agreement with UAMPS for a 6MW share of the Red Mesa Solar Project. The Project was developed by UAMPS and the Navajo Tribal Utility Authority for use by UAMPS members and began providing power in April 2023. The Red Mesa Solar Project price for energy is among the lowest wholesale price paid by the District for any resource. It is estimated that a 6MW share equates to about 10 percent of total annual District energy requirements. In August of 2007, the District entered into an agreement with Western Area Power Administration (WAPA) for the delivery of Stampede Dam Hydroelectric generation. In accordance with this agreement,the District is entitled to a portion of the power generated by Stampede Dam. This generation is dependent upon the amount of water that is made available to the generator. This agreement is effective through 2024. In 2021 and 2020, the UAMPS contract, along with its appendices, and the WAPA contract for Stampede Dam Hydroelectric generation comprised the majority of a diversified power portfolio that balanced risk and costs for the District. Page 131 Page 202 of 315 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2022 and 2021 NOTE 1 —ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) R. CAP AND TRADE PROGRAM PROCEEDS 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. AB32 requires California to lower greenhouse gas emissions to 1990 levels by 2020. 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 California Cap and Trade Program is designed to achieve cost-effective emissions reductions across the capped sectors. The program sets maximum statewide GHG emissions for all covered sectors each year ("cap"), and allows covered entities to sell off allowances ("trade"). An allowance is a tradable permit that allows the emission of one metric ton of CO2. The California carbon price is driven by allowance trading. The District is subject to AB32 and has excess allowances due to reducing carbon-based generation in its power portfolio. In 2022 and 2021, the District sold its excess allowances in the program auctions and the proceeds were recorded as$514,604 and $847,185 operating revenue for the respective years. The auction proceeds are held in a restricted fund and are used to purchase qualified renewable power. (See note 2) S. INCOME TAXES As a government agency, the District is exempt from payment of federal and state income taxes. T. 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$818,991 in 2022 and $800,595 in 2021. On January 28, 2014, refunding bonds were sold to a private investment firm and the proceeds were used to call the 2003 Old Greenwood bonds on March 1, 2014. The 2014 refunding bonds have the same rate and method of apportionment conditions on the Old Greenwood properties as the original 2003 bonds. 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 had revenues of$2,836,533 in 2022 and $2,630,579 in 2021. 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). U. 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. Page 132 Page 203 of 315 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2022 and 2021 NOTE 1 —ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) V. LEASES The incremental borrowing rate used in determining the present value of lease payments is based on US Treasury rates, corresponding to the same term of lease contracts plus basis points(BSP), determined by District's historical borrowing spread and similar entities in the utility industry The District, as a lessee, recognizes a lease liability and an intangible right-to-use asset at the commencement of a lease, unless the lease is considered a short-term or transfers ownership of the underlying assets. Right-to-use lease assets are measured based on the net present value of the payments to be made over the term of the agreement, using District's incremental borrowing rate. Re-measurement of the lease liability occurs when there is a change in the lease term and/or other changes that are likely to have a significant impact on the lease liability. Amortization of the discount on the lease liability is reported as an outflow of resources. Payments are allocated first to the accrued interest liability and then to the lease liability. Variable lease payments based on the usage of the underlying assets are not included in the lease liability calculations and are recognized as outflows of resources in the periods in which the obligation for the payments is incurred. The District, as a lessor, recognizes a lease receivable and deferred inflows of resources at the commencement of the lease term. The lease receivable is measured using the present value of the lease payments expected to be received for the lease term, based on District's incremental borrowing rate, which approximates the discount rate the District charges the lessee. Leases with provisions for rent changes based on the consumer price index (CPI) or other market indexes, result in additional variable lease revenues that are not included in the measurement of the lease receivables. Deferred inflows of resources are measured at the value of the lease receivable in addition to any payments received at or before the commencement of the lease term related to future periods. Amortization of the discount on the lease receivable is reported as interest revenue for that period. Deferred inflows of resources are recognized as lease revenue on a straight-line basis over the term of the lease. Any initial direct costs are reported as an outflow of resources for that period. Re-measurement of lease receivable occurs when there are modifications, including but not limited to changes in the lease charges, lease term, and adding or removing an underlying asset to the lease agreements. In the case of partial or full lease termination, the District will reduce the carrying value of the lease receivable and the related deferred inflow of resources and include a gain or loss for the difference. Short-term leases are certain leases that, at the commencement of the lease term, have a maximum possible term under the lease contract of 12 months or less, including any options to extend, regardless of their probability of being exercised. Leases assessed by management as short-term, perpetual, or insignificant are recognized as outflows of resources (expenses) or inflows of resources (revenue) based on the payment provisions of the lease agreement. Page 133 Page 204 of 315 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2022 and 2021 NOTE 1 —ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) W. OTHER—PENSION SIDEFUND As a result of implementing GASB Statement No. 68, the pension side-fund payoff that occurred in 2011 and which had been reported in the financial statements as an asset was written off due to the District's participation in CalPERS cost-sharing multi-employer retirement benefit plan. However, the liability for the payoff remained until paid in full in 2022. The intercompany fund transfers for the principal portion of the debt service between the electric and water utility is included as"other." X. PENSION For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions,and pension expense, information about the fiduciary net position of the District's California Public Employee's Retirement System (CaIPERS) plans (Plans) and the additions to/deductions from the Plans' fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Y. DEFERRED OUTFLOWS OF RESOURCES AND DEFERRED INFLOWS OF RESOURCES Deferred Outflows of Resources: This separate financial statement element represents consumption of net position or fund balance that applies to future period(s) and so will not be recognized until that time. Deferred Inflows of Resources: This separate financial statement element represents an acquisition of net position or fund balance that applies to future period(s) and so will not be recognized as an inflow of resources until that time. Z. UNAMORTIZED LOSS ON BOND REFUNDING For current and advanced refunding results in defeasance of debt,the difference between the reacquisition price and the net carrying amount of the old debt (Gain or loss) is deferred and amortized as a component of interest expense over the remaining life of the old debt or the new debt, whichever is shorter. These amounts are reported as deferred outflow on the statements of net position. AA. COMPARATIVE INFORMATION Comparative data for the prior year has been presented in certain sections of the accompanying financial statements in order to provide an understanding of changes in the District's financial position and operations. Certain amounts presented in the prior year have been reclassified in order to be consistent with the current year's presentation. BB.RECENT ACCOUNTING PRONOUNCEMENTS IMPLEMENTED BY THE DISTRICT GASB Statement No. 87, Leases, addresses accounting and financial reporting for leases by governments. This Statement increases the usefulness of financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases by establishing a single model of lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Under this statement, a lessee is required to recognize a lease liability and intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information about leasing activities. This statement is effective for the District fiscal year ending December 31, 2022. The District has implemented this statement. See Notes 4 and 16 for the impact on the financial statements. Page 134 Page 205 of 315 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2022 and 2021 NOTE 1 —ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) BB. RECENT ACCOUNTING PRONOUNCEMENTS IMPLEMENTED BY THE DISTRICT(Continued) GASB Statement No.91, "Conduit Debt Obligations." The objective of this statement is to better meet the information needs of the financial statement users by enhancing the comparability and consistency of the conduit debt obligation reporting and reporting of related transactions and other events by state and local government issuers. This Statement also is intended to improve the relevance, reliability, and understandability of information about conduit debt obligations, as well as related transactions and events. The requirements of this Statement will take effect for financial statements with the fiscal year that ends on or after December 31, 2022. The District has determined that this pronouncement has no changes in financial reporting of the District. GASB Statement No.92, "Omnibus 2020." The objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing practice issues that have been identified during implementation and application of certain GASB Statements. The requirements of this Statement will take effect for financial statements with the fiscal year that ends on or after June 30, 2022. The District has determined that this pronouncement has no changes in financial reporting of the District. GASB Statement No.93, "Replacement of Interbank Offered Rates." The objective of this Statement is to address those and other accounting and financial reporting implications that result from the replacement of an IBOR.The removal of LIBOR as an appropriate benchmark interest rate is effective for reporting periods ending after December 31, 2021.All other requirements of this Statement are effective for reporting periods beginning after June 30, 2022. The District has determined that this pronouncement has no changes in financial reporting of the District. GASB issued Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans-an Amendment of GASB Statements No. 14 and No. 84, and a Supersession of GASB Statement No. 32. The primary objectives of this Statement are to(1)increase consistency and comparability related to the reporting of fiduciary component units in circumstances in which a partial component unit does not have a governing board and the primary government performs the duties that a governing board typically would perform; (2) mitigate costs associated with the reporting of certain defined contribution pension plans, defined contribution other post- employment benefit (OPEB) plans, and employee benefit plans other than pension plans or OPEB plans (other employee benefit plans) as fiduciary component units in fiduciary fund financial statements; and (3) enhance the relevance, consistency, and comparability of the accounting and financial reporting for Internal Revenue Code(I RC)Section 457 deferred compensation plans(Section 457 plans)that meet the definition of a pension plan and for benefits provided through those plans. There was no significant financial impact to the District as a result of implementation. CC.ACCOUNTING PRONOUNCEMENTS TO BE IMPLEMENTED IN UPCOMING YEARS These statements are not effective until January 1, 2023 or later and may be applicable for the District. The District has not determined what impact, if any, this pronouncement will have on the financial statements. GASB Statement No.94, "Public-Private and Public-Public Partnerships and Availability Payment Arrangements." The primary objective of this Statement is to improve financial reporting by addressing issues related to public-private and public-public partnership arrangements (PPPs). The requirements of this Statement are effective for fiscal years beginning after June 30, 2023, and all reporting periods thereafter. Page 135 Page 206 of 315 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2022 and 2021 NOTE 1 —ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) CC.ACCOUNTING PRONOUNCEMENTS TO BE IMPLEMENTED IN UPCOMING YEARS(CONTINUED) GASB Statement No.96, "Subscription-Based Information Technology Arrangements." The purpose of this Statement is to provide guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITAs) for government end users (governments). The requirements of this Statement are effective for fiscal years beginning after June 30, 2023, and all reporting periods thereafter. GASB Statement No. 100, Accounting Changes and Error Corrections - An Amendment of GASB Statement No. 62.The primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. The requirements of this Statement are effective for fiscal years beginning after June 15, 2023, and all reporting periods thereafter. GASB Statement No. 101, Compensated Absences. The primary objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences by aligning the recognition and measurement guidance under a unified model and amending certain previously required disclosures. The requirements of this Statement are effective for fiscal years beginning after December 15, 2023, and all reporting periods thereafter. 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 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 created an electric rate stabilization fund in anticipation of future costs. During both 2022 and 2021, there was no utilization of these funds to offset increased power costs in lieu of raising electric rates. Water Vehicle Reserve Beginning in 2009, the Board set aside funds designated for future water utility vehicle replacements. Water Capital Replacement Starting in 2021, the Board set aside funds designated for future water infrastructure replacement. Prepaid Connection Fees In compliance with Board rules, the District has set aside prepaid connection fees to cover installation costs of water services. Debt Service and Operating Reserve Fund Starting in 2021, the Board combined this operating reserve designation into the operating classification, consistent with Board rules. Page 136 Page 207 of 315 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2022 and 2021 NOTE 2—CASH, CASH EQUIVALENTS, AND INVESTMENTS (Continued) 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. Deferred Liabilities Reserve Starting in 2017, the Board established a reserve to protect the District from volatility in pension, other post-employment benefits, and worker's compensation premiums. As of December 31, Board designated accounts at fair value consisted of the following: 2022 2021 Electric capital replacement fund $ 10,817,633 $ 11,181,652 Electric vehicle reserve 770,416 259,508 Electric rate reserve 6,588,607 6,409,163 Electric deferred liabilites reserve 2,107,871 2,094,398 Water vehicle reserve 382,735 484,446 Water capital replacement 1,021,821 1,015,747 Prepaid connection fees 79,292 78,093 Donner Lake Assessment District surcharge fund 177,548 163,065 Water deferred liabilites reserve 108,280 106,642 Totals $ 22,054,203 $ 21,792,714 Certain assets have been restricted by bond covenants or third party contractual agreements for the following purposes: Certificates of Participation Prepayments to the Trustee from the District for upcoming debt payments and in 2022, unspent debt project proceeds of$6,544,562 for electric operations and $11,879,665 for water operations. Special Tax Bonds: Gray's Crossing The terms of the special tax bonds issued for the Mello-Roos Community Facilities Districts (CFD) 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. 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. Donner Lake Special Assessment District Improvement and Reserve 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. The reserve fund was fully funded as of December 31, 2016. Grant Funds The District water utility received a $300,000 grant for capital improvement project in 2021, with $47,071 expended in 2021. The remaining cash funds balance of$252,929 was expended in 2022. Page 137 Page 208 of 315 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2022 and 2021 NOTE 2—CASH, CASH EQUIVALENTS, AND INVESTMENTS (Continued) AB32 Cap and Trade Auction Fund 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 from quarterly allowance auctions are held in this restricted fund and are used to purchase qualified renewable power. These funds are intended to mitigate the burden on the consumer without impacting a carbon price signal. Low Carbon Fuel Standard (LCFS) Credits Proceeds from credit sales are only allowed to be used towards efforts that promote and/or facilitate transportation electrification within the District's service territory. 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. As of December 31, restricted cash and cash equivalents and investments at fair value consisted of the following: 2022 2021 Certificates of Participation $ 18,769,692 $ 137,917 Special tax bonds 2,207,543 2,326,530 Facilities fees 2,816,870 2,282,930 Donner Lake Special Assessment District improvement 120,950 691,416 Grant Funds - 252,929 AB 32 Cap and Trade Auction fund 579,554 1,059,951 Other(area improvement funds) 57,519 56,648 LCFS Credits 68,049 - Total Restricted Cash and Cash Equivalents and Investments $ 24,620,177 $ 6,808,321 Cash and investments are comprised of the following cash and cash equivalents and investments as of December 31: 2022 2021 Cash and cash equivalents $ 51,303,694 $ 30,309,446 In\,estments—government bonds 9,068,009 9,815,769 Totals $ 60,371,703 $ 40,125,215 Cash and cash equivalents and investments were $60,371,703 and $40,125,215 at December 31, 2022 and 2021, respectively. Cash equivalents substantially consist of deposits in the state pooled fund, Placer County pooled fund, money market funds and investments. Adjustments necessary to record investments at fair market value are recorded in the operating statement as increases or decreases in investment income. Market values may have changed significantly after year end. Page 138 Page 209 of 315 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2022 and 2021 NOTE 2—CASH, CASH EQUIVALENTS, AND INVESTMENTS (Continued) FAIR VALUE MEASUREMENT The District applies the provisions of Governmental Accounting Standards Board (GASB) Statement No. 72, Fair Value Measurement and Application, which requires governmental entities, to report certain investments at fair value on the Statements of Net Position. Investments are valued at fair value at December 31. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The District categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices for identical instruments in active markets. Level 2 inputs are quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model derived valuations in which all significant inputs are observable. Level 3 inputs are valuations derived from valuation techniques in which significant inputs are unobservable. The District classifies its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The District has the following fair value measurements as of December 31, 2022: • US Government bonds and agency securities are valued using observable inputs (Level 2 inputs). 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), Placer County Treasurer's Investment Portfolio (PCTIP) pooled investment and Utah Public Treasurers' Investment Fund (UPTIF). 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, 2022 and 2021 the District's deposits and investments at fair value were held as follows: 2022 2021 Cash on hand $ 2,400 $ 2,400 Deposits 3,560,270 2,975,548 LAIF 31,647,797 11,092,822 PCTIP 6,279,910 6,398,125 U PTIF 8,797,711 8,834,171 Bank Certificates of Deposit 1,378,504 1,492,177 Money Market Funds 1,015,606 1,006,381 U.S. Government Agency Securities 6,814,789 7,376,745 U.S. Government Bonds 874,716 946,846 Totals 60,371,703 40,125,215 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 2022 and 2021: Page 139 Page 210 of 315 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2022 and 2021 NOTE 2—CASH, CASH EQUIVALENTS, AND INVESTMENTS (Continued) Maturity as of December 31, Investments and Deposits 2022 2021 LAIF 3 months or less 3 months or less PCTIP 3 months or less 3 months or less UPTIF 3 months or less 3 months or less Federated U.S. Treasury Cash Reserve 3 months or less 3 months or less Morgan Stanley Treasury 3 months or less 3 months or less Fidelity Money Market Government Portfolio 57 3 months or less 3 months or less Dreyfus Treasury Securities 3 months or less 3 months or less Federal U.S Treasury Bonds 1.5 to 3.5 years 2.5 to 4.5 years Federal Agencies Bonds 1.5 to 3.5 years 2.5 to 4.5 years Bank Certificates of Deposit (FDIC Insured) 1.5 to 3.5 years 2.5 to 4.5 years 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. LAIF, PCTIF and UPTIF do not have a rating provided by a nationally recognized statistical rating organization. The Morgan Stanley Treasury is rated AAAm by S&P and Aaa-mf 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. The Dreyfus Treasury Securities is rated Aaa-mf by Moody's and AAAm by S&P.The Fidelity Money Market 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. As of December 31, 2022 and 2021 bank deposits exceeded FDIC insurance coverage by$3,285,418 and $2,817,038, respectively. 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). Page 140 Page 211 of 315 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2022 and 2021 NOTE 2—CASH, CASH EQUIVALENTS, AND INVESTMENTS (Continued) DEPOSIT 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. DEPOSIT IN PLACER COUNTY TREASURER INVESTMENT POOL The District is a voluntary participant in the Placer County Investment Portfolio (PCTIP). The District is eligible to participate in PCTIP because a portion of the District's service area is in Placer County. Investments are on deposit with the Placer County Treasurer 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 Placer County Treasurer for the entire PCTIP (in relation to the amortized cost of the portfolio). The balance available for withdrawal is based on the accounting records maintained by the Placer County Treasurer, which are recorded on an amortized cost basis. DEPOSIT IN UTAH PUBLIC TREASURERS'INVESTMENT FUND The District is a voluntary participant in the Utah Public Treasurers' Investment Fund (UPTIF). The District is eligible to participate in (UPTIF)through its membership with Utah Associated Municipal Power Systems (UAMPS). Investments are on deposit with State of Utah public treasury and investments are restricted to those authorized by the Utah Money Management Act and rules of the Money Management Council of Utah. The fair value of the District's investments 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 UPTIF through UAMPS Member Retention Fund. NOTE 3—TELECOMMUNICATION SERVICES In 1999, the District initiated a project to expand its basic service offerings to include internet access, cable television and voice delivered over fiber optic networks (the broadband project). The District completed the broadband design project and obtained the necessary regulatory approvals and franchises needed to construct and launch the broadband 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. Expenses incurred by the District to date on the broadband project total $2,834,079. In 2022 and 2021 there were no material expenditures for this project. In 2018, The District signed a Memorandum of Understanding with Plumas Sierra Telecommunications to offer services utilizing these four fibers from Reno to Sacramento in future years. Page 141 Page 212 of 315 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2022 and 2021 NOTE 4—CAPITAL ASSETS Capital assets consist of the following at December 31, 2022 and 2021: January 1, December 31, Plant Balances 2022 Additions Reductions 2022 Electric distribution $ 76,021,243 $ 5,114,993 $ (284,318) $ 80,851,918 Water distribution 124,052,449 8,490,899 (237,048) 132,306,300 General plant 19,827,303 587,711 (184,684) 20,230,330 Total 219,900,995 14,193,603 (706,050) 233,388,548 Accumulated Depreciation Electric distribution (23,396,600) (2,987,284) 768,657 (25,615,227) Water distribution (56,654,194) (4,491,411) 257,187 (60,888,418) General plant (12,700,105) (986,905) 167,365 (13,519,645) Total (92,750,899) (8,465,600) 1,193,209 (100,023,290) Plant Sub-Total Electric distribution 52,624,643 2,127,709 484,339 55,236,691 Water distribution 67,398,255 3,999,488 20,139 71,417,882 General plant 7,127,198 (399,194) (17,319) 6,710,685 Total 127,150,096 5,728,003 487,159 133,365,258 Construction work in progress 5,732,900 7,255,889 (9,383,901) 3,604,888 Totals $ 132,882,996 $ 12,983,892 $ (8,896,742) $ 136,970,146 January 1, December 31, Plant Balances 2021 Additions Reductions 2021 Electric distribution $ 71,894,379 $ 4,518,836 $ (391,972) $ 76,021,243 Water distribution 121,483,082 2,584,186 (14,819) 124,052,449 General plant 19,316,644 726,741 (216,082) 19,827,303 Total 212,694,105 7,829,763 (622,873) 219,900,995 Accumulated Depreciation Electric distribution (21,385,441) (2,943,724) 932,565 (23,396,600) Water distribution (52,339,068) (4,323,187) 8,061 (56,654,194) General plant (11,522,788) (1,379,630) 202,313 (12,700,105) Total (85,247,297) (8,646,541) 1,142,939 (92,750,899) Plant Sub-Total Electric distribution 50,508,938 1,575,112 540,593 52,624,643 Water distribution 69,144,014 (1,739,001) (6,758) 67,398,255 General plant 7,793,856 (652,889) (13,769) 7,127,198 Total 127,446,808 (816,778) 520,066 127,150,096 Construction work in progress 4,584,711 6,427,636 (5,279,447) 5,732,900 Totals $ 132,031,519 $ 5,610,858 $ (4,759,381) $ 132,882,996 In accordance with FERC guidelines for utility accounting, additional activity is reflected in the accumulated depreciation accounts for retirement costs related to upgrading capital investment projects and replacing electric distribution, metering and general assets. Accordingly, the retirement costs are reported as part of the change in accumulated depreciation. As of December 31, 2022 and 2021, the plant in service included land and land rights of$3,318,346 which are 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. Page 142 Page 213 of 315 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2022 and 2021 NOTE 5—LEASES RECEIVABLE The District is reporting leases receivable of$1,487,018 (split between current amount$34,423 and non- current amount of$1,452,595) as of December 31, 2022. For 2022, the District reported lease revenue of $154,365 and interest income of$129,134 related to lease payments received. The leases receivable are comprised of four cellular and or radio towers, each with five year initial terms, and include renewal increments of up to five, each with five year increments. The District is reasonably certain each of the lessees will renew respective lease for the available extensions. As of December 31, 2022, future minimum lease payments due to the District are as follows: Year Ending Amount 2023 $ 97,196 2024 101,188 2025 103,717 2026 106,310 2027 108,968 2028 -2032 516,576 2033 -2037 453,565 2038 -2042 489,320 2043 -2047 373,191 Total Lease Payments 2,350,031 Less Interest (863,013) Present value of leases receivable $ 1,487,018 Page 43 Page 214 of 315 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2022 and 2021 NOTE 6—LONG-TERM DEBT Long-term debt consisted of the following at December 31, 2022: January 1, December 31, Due within 2022 Additions Reductions 2022 one year Pension Obligation Bonds Electric,2.47% due semi-annually Refinanced in 2016 $ 539,000 $ $ (539,000) $ - $ Special Tax Bonds—Mello Roos, CFD Old Greenwood,4.18%,due seriallyto 2032 7,940,300 (484,500) 7,455,800 528,200 Special Tax Bonds—Mello Roos, CFD Grays Crossing,3.25%to, 5.7%,due seriallyto 2035(net of unamortized discounts of $59,319) 12,385,994 (460,313) 11,925,681 505,000 Special Tax Bonds—Mello Roos, CFD Grays Crossing,3.50%to 5.50%,due seriallyto 2035(net of unamortized discounts of $6,554) 15,077,928 (584,482) 14,493,446 645,000 Certificates of Participation— Water,2.00%to 4.00%, due seriallyto 2035 (net premiums of $339,969) 11,021,987 (657,018) 10,364,969 655,000 Certificates of Participation Water,4.00%to 5%,due semiannuallyto 2052,secured by real and personal property. (net premiums of $1,379,214) 16,227,590 (23,376) 16,204,214 230,000 Certificates of Participation Electric,4.00%to 5%,due semiannuallyto 2052,secured by real and personal property. (net premiums of $252,090) 6,727,235 (5,145) 6,722,090 140,000 Installment loan,4.58% due seriallyto 2022 12,750 - (12,750) - - Totals $ 46,977,959 $ 22,954,825 $ (2,766,584) $ 67,166,200 $ 2,703,200 Page 144 Page 215 of 315 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2022 and 2021 NOTE 6—LONG-TERM DEBT (Continued) Long-term debt consisted of the following at December 31, 2021: January 1, December 31, Due within 2021 Additions Reductions 2021 one year Pension Obligation Bonds Electric,2.47% due semi-annually Refinanced in 2016 $ 1,578,000 $ $ (1,039,000) $ 539,000 $ 539,000 State Revolving Fund Loan— Water,2.34%,due semi-annually beginning in 2006 to 2026. 4,110,535 (4,110,535) - - Special Tax Bonds—Mello Roos, CFD Old Greenwood,4.18%,due seriallyto 2032 8,385,100 (444,800) 7,940,300 484,500 Special Tax Bonds—Mello Roos, CFD Grays Crossing,3.25%to, 5.7%,due seriallyto 2035(net of unamortized discounts of $64,006) 12,801,307 (415,313) 12,385,994 465,000 Special Tax Bonds—Mello Roos, CFD Grays Crossing,3.50%to 5.50%,due seriallyto 2035(net of unamortized discounts of $7,072) 15,607,410 (529,482) 15,077,928 585,000 Certificates of Participation— Water,1.54% due seriallyto 2021 refinanced in 2016 664,000 (664,000) Certificates of Participation— Water,2.00%to 4.00%, due seriallyto 2035 (net premiums of $366,987) 11,654,005 (632,018) 11,021,987 630,000 Department of Water Resources, 3.18%,due semiannuallyto 2021,secured by real and personal property. 150,854 (150,854) - - Installment loan,4.58% due seriallyto 2022 24,942 (12,192) 12,750 12,750 Totals $ 54,976,153 $ $ (7,998,194) $ 46,977,959 $ 2,716,250 Page 145 Page 216 of 315 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2022 and 2021 NOTE 6— LONG-TERM DEBT (Continued) 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 were $400,426 and commenced 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. In July 2021,the District paid-off in full the State Revolving Fund Loan balance of$3,401,747, post-scheduled debt service payment paid July 1, 2021, saving $202,088 in future interest costs. (See note 8). 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. In January 2014, the original 2003 bonds issued for the Old Greenwood Community Facilities District were refunded (refinanced)by issuing 2014 bonds to a private investment firm at a lower rate, saving the property owners in Old Greenwood over $3 million over the term of the bonds. The 2014 bonds did not require a reserve fund. Therefore the reserve fund of the 2003 bonds was utilized to reduce the principal. The 2014 bonds have similar terms and have the same rate and method of apportionment for the Old Greenwood parcel owners as the original 2003 bonds. 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, through the Truckee Donner Public Utility District Financing Corporation on behalf of the District 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. In 2015, a portion of the 2006 COP was refunded. Since a portion of the 2006 COP was used for advance refunding of previous COP, that portion could not be advance refunded at the time of the refunding. The new 2015 refunding did not require a reserve fund. The reserve fund was liquidated and applied towards reducing the debt principal. The estimated net present value savings were $1,600,000 or 10% over the remaining life of issuance. In 2016, the remaining portion of the 2006 COP was refunded. Due to the refunding an estimated net present value savings of$222,000 was achieved. 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 Page 146 Page 217 of 315 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2022 and 2021 NOTE 6—LONG-TERM DEBT (Continued) the net revenues of the Water Division, which are required to be sufficient to pay the debt service for each year. In June 2011, the District refunded (refinanced) an existing $7.8 million pension side fund obligation for its participation in CalPERS. 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%reduced the District's annual pension costs by almost $100,000 through 2022. In 2016, the District refunded the pension side fund again earning the District annual savings of$30,000 or$164,000 in total. In June 2022, through the Truckee Donner Public Utility District Financing Corporation on behalf of the District issued Water and Electric Certificates of Participation of$14,825,000 and $6,470,000, respectively, with average interest rate of 4.2% and 4.1% respectively. The purposes of the issuances were to fund capital improvement projects. 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 2022 or 2021. Scheduled payments on debt are: Principal Interest Total 2023 $ 2,703,200 $ 3,161,914 $ 5,865,114 2024 2,905,300 $ 3,032,558 5,937,858 2025 3,126,100 $ 2,893,149 6,019,249 2026 3,340,600 $ 2,742,755 6,083,355 2027 3,588,700 $ 2,581,214 6,169,914 2028-2032 21,941,900 $ 10,085,551 32,027,451 2033-2037 14,295,000 $ 4,758,030 19,053,030 2038-2042 4,100,000 $ 2,811,555 6,911,555 2043-2047 5,135,000 $ 1,773,595 6,908,595 2048-2052 4,125,000 $ 638,750 4,763,750 $ 65,260,800 $ 34,479,071 $ 99,739,871 Plus: Unamortized premiums 1,971,273 Less: Unamortized discounts (65,873) $ 67,166,200 Scheduled debt service payments by division are: CFD Gray's CFD Old Consolidated Electric Water Crossing Greenwood Total 2023 431,181 1,987,488 2,606,593 839,852 $ 5,865,114 2024 429,181 1,984,788 2,664,015 859,874 $ 5,937,858 2025 431,931 1,990,588 2,719,895 876,835 $ 6,019,249 2026 429,181 1,984,438 2,773,945 895,791 $ 6,083,355 2027 431,181 1,986,788 2,830,458 921,487 $ 6,169,914 2028-2032 2,149,905 9,921,338 15,000,005 4,956,203 $ 32,027,451 2033-2037 2,149,405 7,138,425 9,765,200 - $ 19,053,030 2038-2042 2,150,705 4,760,850 - $ 6,911,555 2043-2047 2,147,345 4,761,250 $ 6,908,595 2048-2052 - 4,763,750 $ 4,763,750 Page 47 Page 218 of 315 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2022 and 2021 NOTE 7—UNEARNED REVENUES Transactions that have not yet met revenue recognition requirements are recorded as a non-current liability and reflected in the accompanying Statement of Net Position. As of December 31, 2022 and 2021, 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, 2022 and 2021: January 1, December 31, 2022 Additions Reductions 2022 Unearned tax revenues $ 1,733,269 $ 1,061,423 $ (917,046) $ 1,877,646 Development agreement deposits 2,319,232 824,667 (1,384,366) 1,759,533 Connection fees and other deposits 1,530,903 1,844,589 (1,730,661) 1,644,831 Totals $ 5,583,404 $ 3,730,679 $ (4,032,073) $ 5,282,010 January 1, December 31, 2021 Additions Reductions 2021 Unearned tax revenues $ 1,697,903 $ 1,733,270 $ (1,697,904) $ 1,733,269 Development agreement deposits 3,884,919 1,163,064 (2,728,751) 2,319,232 Connection fees and other deposits 1,262,285 1,923,685 (1,655,067) 1,530,903 Totals $ 6,845,107 $ 4,820,019 $ (6,081,722) $ 5,583,404 NOTE 8—COMMUNITY FACILITIES DISTRICTS 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). In January 2014, the original 2003 bonds were refunded (refinanced)by issuing 2014 bonds to a private investment firm at a lower rate, saving the property owners in Old Greenwood over$3 million over the term of the bonds. The 2014 bonds have similar terms and have the same rate and method of apportionment for the Old Greenwood parcel owners as the original 2003 bonds. During 2022 and 2021 respectively, taxes of $827,172 and $810,794 were levied by Old Greenwood. Of these amounts, $413,586 and$405,397 relate to 2022 and 2021 respectively, 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 future periods and are included in unearned revenues on the accompanying Statement of Net Position. Page 148 Page 219 of 315 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2022 and 2021 NOTE 8—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 the county tax roll for 2022 and 2021, taxes of $2,933,656 and $2,655,730 respectively were levied by Gray's Crossing. Of this amount, $1,466,828 and $1,327,865 relate to 2022 and 2021 respectively, and accordingly, are included in tax revenues. The remaining levied amount through the county tax roll will be recognized in future periods and is included in unearned revenues on the accompanying Statement of Net Position. Due to consistently high tax levy payment delinquencies, the Gray's Crossing made unscheduled reserve fund draws to fund debt payments of $167,960 and $214,815, for 2022 and 2021 respectively. Gray's Crossing Reserve Fund balance as of year-end December 31 was $2,159,182 and $2,322,811, for 2022 and 2021 respectively. 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 9—DONNER LAKE WATER COMPANY ACQUISITION 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 (SRF) 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. The reserve fund was fully funded as of December 31, 2016. As of December 31, 2021 and 2020,the assessment receivable from the property owners was$10,605 and $783,721, respectively. 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. In July 2021, the District paid-off in full the State Revolving Fund Loan balance of $3,401,747, post- scheduled debt service payment paid July 1, 2021, saving $202,088 in future interest costs. Donner Lake Assessment District long-term invested funds which matured in 2021 were utilized to make the payment. The previously invested funds utilized were intended for scheduled debt service through 2026, as the 20- year special tax assessment ended with the 2021/2022 property tax year. Page 149 Page 220 of 315 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2022 and 2021 NOTE 10— EMPLOYEE BENEFIT PLANS A. PENSION PLANS Plan Description —All qualified permanent and probationary employees are eligible to participate in the District's Miscellaneous Employee Pension Plans, cost-sharing multiple employer defined benefit pension plans administered by the California Public Employees' Retirement System (CaIPERS). Benefit provisions under the Plans are established by State statute and Local Government resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website. Benefits Provided—CalPERS provides service retirement and disability benefits,annual costs of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefits is Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees' Retirement Law. The 2.7% at 55 Miscellaneous Plan is closed to new entrants. The plans' provisions and benefits in effect at December 31, 2022 are summarized as follows: Miscellaneous Prior to On or after Hire Date January 1, 2013 January 1, 2013 Benefit Formula 2.7%@ 55 2%@ 62 Benefit Vesting Schedule 5 years service 5 years service Benefit Payments monthly for life monthly for life Retirement Age 50 and Up 52 and Up Monthly Benefits, as a%of eligible compensation 2.0%-2.7% 1.0%to 2.5% Required Employee Contributions Rates 8.00% 6.75% Required Employer Contributions Rates 13.35% 7.59% Contributions— Section 208149(c) of the California Public Employee's Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The District is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Contributions shown below are for the fiscal year ending June 30, 2022 and 2021, respectively. Miscellaneous Hire Date Prior to On or after January 1, 2013 January 1, 2013 Combined Total Benefit Formula 2.7% @ 55 2%@ 62 2022 Employer Contributions $ 249,427 $ 177,464 $ 426,891 2021 Employer Contributions 1,280,155 154,157 1,434,312 Fiscal Year End 6/30/2022 Total 1,529,582 331,621 1,861,203 2021 Employer Contributions 279,138 135,682 414,820 2020 Employer Contributions 1,209,423 125,969 1,335,392 Fiscal Year End 6/30/2021 Total $ 1,488,561 $ 261,651 $ 1,750,212 Page 50 Page 221 of 315 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2022 and 2021 NOTE 10— EMPLOYEE BENEFIT PLANS (Continued) B. PENSION LIABILITIES, PENSION EXPENSES AND DEFERRED OUTFLOWS/INFLOWS OF RESOURCES RELATED TO PENSIONS As of December 31, 2022, the District reported net pension liabilities for its proportionate shares of the net pension liability as follows: Proportionate Share of Net Pension Liability Fiscal Year Ending June 30, 2022 June 30, 2021 $16,783,065 $7,683,937 The District's net pension liability is measured as a proportionate share of the net pension liability. The net pension liability is measured as of June 30, 2022, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2021 rolled forward to June 30, 2022 using standard update procedures. The District's proportion of the net pension liability was based on a projection of the District's long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The District's proportionate share of the net pension liability for the Plan for the measurement date of June 30, 2022 and June 30, 2021 is as follows: Percentage Share of Risk Pool Measurement Date June 30, 2022 June 30, 2021 Change Percentage of Plan NPL 0.35867% 0.40467% -0.04600% At December 31, 2022 and 2021 the District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: 2022 Deferred Outflows of Deferred Inflows of Resources Resources Changes in assumptions $ 1,719,776 - Differences between expected and actual experience 337,037 $ 225,733 Net differences between projected and actual investment earnings 3,074,212 - Differences between employer's contributions and - 760,466 proportionate share of contributions Change in employer's proportion 178,274 - Pension contributions made subsequent to the measurement 1,653,994 date Total $ 6,963,293 $ 986,199 Page 151 Page 222 of 315 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2022 and 2021 NOTE 10— EMPLOYEE BENEFIT PLANS (Continued) B. PENSION LIABILITIES, PENSION EXPENSES AND DEFERRED OUTFLOWS/INFLOWS OF RESOURCES RELATED TO PENSIONS (Continued) 2021 Deferred Outflows of Deferred Inflows of Resources Resources Differences between expected and actual experience $ 861,671 - Differences between projected and actual in\festment earnings - $ 6,707,671 Differences between employer's contributions and - 489,130 proportionate share of contributions Change in employer's proportion 403,396 - Pension contributions made subsequent to the measurement 1,434,311 - date Total $ 2,699,378 $ 7,196,801 For the December 31, 2022 balances of deferred outflows and inflows of resources, $1,653,994 is reported as deferred outflows of resources related to contributions subsequent to the measurement date and will be recognized as a reduction of the net pension liability in the year ended December 31, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows: Year Ended December 31 Amounts 2023 $ 1,052,639 2024 899,408 2025 490,760 2026 1,880,293 $ 4,323,100 Page 152 Page 223 of 315 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2022 and 2021 NOTE 10— EMPLOYEE BENEFIT PLANS (Continued) B. PENSION LIABILITIES, PENSION EXPENSES AND DEFERRED OUTFLOWS/INFLOWS OF RESOURCES RELATED TO PENSIONS (Continued) Actuarial Assumptions —The total pension liabilities in the June 30, 2022 actuarial valuations were determined using the following actuarial assumptions: Miscellaneous 2022 Valuation Date June 30, 2021 Measurement Date June 30, 2022 Actuarial Cost Method Entry-Age Normal Actuarial Assumptions: Discount Rate 6.90% Inflation 2.30% Salary Increase Varies by Entry Age and Service Mortality(1) Derived using CalPERS membership data for all funds (1) The mortality table used was developed based on CalPERS'specific data. The Table includes 15 years of mortality improvements using Society of Actuaries Scale MP-2016. For more details on this table, please refer to the 2021 experience study report. All underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2021 valuation were based on results of a December 2017 CalPERS Experience Study and Review of Actuarial Assumptions. Further details of the Experience Study can be found on the CalPERS website. Discount Rate-The discount rate used to measure the total pension liability as of June 30, 2022 was 6.90%. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the current 6.90% discount rate used is adequate and the use of the municipal bond rate calculation is not necessary. The long term expected discount rate of 6.90% will be applied to all plans in the Public Employees Retirement Fund (PERF). The stress test results are presented in a detailed report that can be obtained from the CaIPERS website. The long-term expected rate of return on pension plan investments was determined using a building- block method in which best-estimate ranges of expected future real rate of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds' asset classes, expected compound returns were calculated over the short-term (first 10 years) and the long term (11 + years) using a building-block approach. Using the expected nominal returns for both short-term and long-term,the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent. Page 153 Page 224 of 315 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2022 and 2021 NOTE 10— EMPLOYEE BENEFIT PLANS (Continued) B. PENSION LIABILITIES, PENSION EXPENSES AND DEFERRED OUTFLOWS/INFLOWS OF RESOURCES RELATED TO PENSIONS (Continued) The table below reflects the long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. The target allocation shown below is based on a plan adopted by CaIPERS' Board effective on July 1, 2018. Assumed Asset Real Return Real Return Asset Class Allocation Years 1-10 Years 11+ Public Equity 50.0% 4.80% 5.98% Fixed Income 28.0% 1.00% 2.62% Inflation Assets 0.0% 0.77% 1.81% Private Equity 8.0% 6.30% 7.23% Real Assets 13.0% 3.75% 4.93% Liquidity 1.0% 0.00% -0.92% Total 100.0% Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate-The following presents the District's proportionate share of the net pension liability for each Plan, calculated using the discount rate for each Plan, as well as what the District's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1% point lower or 1% point higher than the current rate: Miscellaneous Measurement Date June 30, 2022 1%Decrease 5.90% Net Pension Liability $25,834,916 Current Discount Rate 6.90% Net Pension Liability $16,783,065 1%1 ncrea se 7.90% Net Pension Liability $9,335,638 Pension Plan Fiduciary Net Position— Detailed information about each pension plan's fiduciary net position is available in the separately issued CalPERS financial reports. Page 54 Page 225 of 315 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2022 and 2021 NOTE 10— EMPLOYEE BENEFIT PLANS (Continued) C. PAYABLE TO THE PENSION PLAN At December 31, 2022 and 2021 respectively the District did not report a payable for outstanding required contributions to the pension plan. D. DEFERRED COMPENSATION PLAN The District maintains two deferred compensation plans: a 401(a) and a 457 plan, (the Plans) for certain qualified employees. The District currently matches 6.78% of eligible employee contributions. In 2022 the total match was$327,704 compared to $233,369 in 2021. 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. E. OTHER POST EMPLOYMENT BENEFITS(OPEB) General Information - As discussed in Note 1, beginning with the year ended December 31, 2018, the District adopted the provisions of GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. The District administers a single-employer defined-benefit post-employment healthcare plan and dependents are eligible to enroll. The District's retiree Benefits Plan (the Plan) recognizes benefit payments when due and payable in accordance with the benefit terms. The Plan's fiduciary net position has been determined on the same basis as is reported by the Plan in calculating the fiduciary net position (Net OPEB Liability), deferred outflows of resources and deferred inflows of resource and associated OPEB expense. Benefits Provided—Retirees are eligible for a District contribution towards premiums for the retiree health plan(s) if they have 10+ years of District service. The maximum District contribution is based on years of service. The Retiree is eligible for 50%of the following maximums, with a minimum of 10 years of service, plus 5% for each year of service over 10 years: $475 per person enrolled in the plan, if not eligible for Medicare, and $375 per person enrolled, if eligible for Medicare. Employees Covered—At December 31, 2021 (the valuation date),the benefit terms covered the following employees: Category Count Active Employees 80 Inactive Empoloyes, spouses, or beneficiaries currently receiving payment(s) 73 Inactive employees entitled to but not yet receiving benefit payment(s) - Total 153 Contributions — The District pays benefits as they come due and contributes additionally to the Trust annually. The District's annual contribution to the Trust as of December 31, 2022 and 2021 was$115,000 and $113,300, respectively. Page 155 Page 226 of 315 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2022 and 2021 NOTE 10— EMPLOYEE BENEFIT PLANS (Continued) E. OTHER POST EMPLOYMENT BENEFITS(OPEB)(Continued) Net OPEB Liability—The District's net OPEB liability was measured as of December 31, 2021, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of December 31, 2021. Actuarial Assumptions The total OPEB Liability in the December 31, 2021 measurement was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified: Inflation: 7.25% Salary Increases: Base salary increases in year one: 2.750%. Additional merit-based increases based on CalPERS. Investment Rate of Return: 5.85% Healthcare cost trend rates: 7.00% in the first year, trending down to 3.94% over 55 years Mortality Rates: Based on CaIPERS tables The discount rate used to measure the total OPEB liability was 7.68%. The projection of cash flows used to determine the discount rate assumed that the District contribution will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions,the OPEB plan's fiduciary net position was projected to cover all future OPEB payments. Therefore, the discount rate was set equal to the long-term expected rate of return. Page 156 Page 227 of 315 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2022 and 2021 NOTE 10— EMPLOYEE BENEFIT PLANS (Continued) E. OTHER POST EMPLOYMENT BENEFITS(OPEB)(Continued) Changes in the Net OPEB Liability—The changes in the net OPEB liability for the Plan are as follows: Increases (Decreases) Total OPEB Plan Fiduciary Net OPEB Liability Net Position Liability (a) (b) (c) = (a)-(b) Balance as of Report Date December 31, 2021 $ 8,478,479 $ 3,205,022 $ 5,273,457 Changes for the year: Service Cost 201,835 - 201,835 Interest 629,595 - 629,595 Differences between Expected and Actual Experience (271,987) - (271,987) Changes of Assumptions (73,387) (73,387) Contributions - Employer- District's Contribution - 381,988 (381,988) Employer- Implicit Subsidy - 545,407 (545,407) Net Investment Income - 444,083 (444,083) Benefit Payments (268,688) (268,688) - Implicity Rate Subsidy Credit (545,407) (545,407) - Administrative Expenses - (1,259) 1,259 Net Changes (328,039) 556,124 (884,163) Balance as of Report Date December 31, 2022 $ 8,150,440 $ 3,761,146 $ 4,389,294 Page 157 Page 228 of 315 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2022 and 2021 NOTE 10— EMPLOYEE BENEFIT PLANS (Continued) E. OTHER POST EMPLOYMENT BENEFITS(OPEB)(Continued) Increases (Decreases) Total OPEB Plan Fiduciary Net OPEB Liability Net Position Liability (a) (b) (c)= (a)-(b) Balance as of Report Date December 31, 2020 $ 8,693,052 $ 2,717,465 $ 5,975,587 Changes for the year: Service Cost 206,271 - 206,271 Interest 621,983 - 621,983 Differences between Expected and Actual Experience (28,016) - (28,016) Changes of Assumptions (187,044) (187,044) Contributions - Employer- District's Contribution - 391,334 (391,334) Employer- Implicit Subsidy - 546,439 (546,439) Net Investment Income - 378,904 (378,904) Benefit Payments (281,328) (281,328) - Implicity Rate Subsidy Credit (546,439) (546,439) - Administrative Expenses - (1,353) 1,353 Net Changes (214,573) 487,557 (702,130) Balance as of Report Date December 31, 2021 $ 8,478,479 $ 3,205,022 $ 5,273,457 Sensitivity of the net OPEB liability to changes in the discount rate -The net OPEB liability of the District, as well as what the District's net OPEB liability would be if it were calculated using a discount rate that is one percentage point lower(6.61%) or one percentage point higher(8.61%) is as follows: 1%Decrease Current Rate 1%Increase 6.68% 7.68% 8.68% Net OPEB Liability $ 5,059,401 $ 4,389,294 $ 3,799,346 Sensitivity of the net OPEB liability to changes in the healthcare cost trend rates -The net OPEB liability of the District, as well as what the District's net OPEB liability would be if it were calculated using healthcare cost trend rates that are one percentage point lower(6.00%) or one percentage point higher (8.00%)than current healthcare cost trend rates is as follows: 1%Decrease Current Rate 1%Increase 6.00% 7.00% 8.00% Decreasing to Decreasing to Decreasing to 2.94% 3.94% 4.94% Net OPEB Liability $ 4,017,695 $ 4,389,294 $ 4,812,910 Page 158 Page 229 of 315 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2022 and 2021 NOTE 10— EMPLOYEE BENEFIT PLANS (Continued) E. OTHER POST EMPLOYMENT BENEFITS(OPEB)(Continued) OPEB Plan Fiduciary Net Position—CERBT issues a publicly available financial report for the overall OPEB plan's fiduciary net position which may be obtained from CaIPERS at PO Box 942709, Sacramento, Ca. 94229-2709. OPEB Expense and Deferred Inflows and Outflows of Resources Related to OPEB—For the year ended December 31, 2022, the District recognized an OPEB expense of$761,643. At December 31, 2022 and 2021, the District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the follow sources: 2022 Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual experience $ 1,053,169 $ 269,815 Changes of assumptions 169,474 334,905 Net Difference between Projected and Actual Earnings on OPEB Plan Inestments - 397,595 District contributions made subsequent to the measurement date 951,165 - Total $ 2,173,808 $ 1,002,315 2021 Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual experience $ 1,337,811 $ 40,876 Changes of assumptions 215,278 345,322 Net Difference between Projected and Actual Earnings on OPEB Plan Investments - 244,417 District contributions made subsequent to the measurement date 943,660 - Total $ 2,496,749 $ 630,615 Page 159 Page 230 of 315 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2022 and 2021 NOTE 10— EMPLOYEE BENEFIT PLANS (Continued) E. OTHER POST EMPLOYMENT BENEFITS(OPEB)(Continued) The $951,165 reported as deferred outflows of resources related to contributions subsequent to the December 31, 2021 measurement date will be recognized as a reduction of the net OPEB liability during the fiscal year ending December 31, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: Year Ended December 31 Amount 2023 $ 105,501 2024 49,653 2025 109,045 2026 104,258 2027 (66,401) thereafter (81,728) $ 220,328 NOTE 11 —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 160 Page 231 of 315 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2022 and 2021 NOTE 12—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, 2022 and 2021. STATEMENTS OF NET POSITION December 31,2022 Gray's Old ASSETS AND DEFERRED OUTFLOWS OF RESOURCES Electric Water Crossing Greenwood Eliminations Grand Total Current assets $ 35,754,685 $ 23,169,847 $ 9,845,040 $ 1,122,892 $ $ 69,892,464 Non-current assets: Investments 5,389,941 3,678,068 - - - 9,068,009 Broadband maintenance prepaid 62,229 - - - - 62,229 Leases receivable - 1,452,595 - - - 1,452,595 Capital assets,net 60,987,865 75,982,281 136,970,146 Total Non-current Assets 66,440,035 81,112,944 147,552,979 Total Assets 102,194,720 104,282,791 9,845,040 1,122,892 217,445,443 Deferred outflows of resources Pension 4,177,976 2,785,317 - - - 6,963,293 OPEB 1,304,285 869,523 - - - 2,173,808 Unamortized loss on refunding - 412,768 - - - 412,768 Unamortized redemption premium on refunding Total Deferred Outflows of Resources 5,482,261 4,067,608 9,549,869 TOTAL ASSETS AND DEFERRED OUTFLOWS $107,676,981 $108,350,399 $ 9,845,040 $ 1,122,892 $ $ 226,995,312 OF RESOURCES LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND NET POSITION Current liabilities $ 6,469,714 $ 2,123,325 $ 1,635,529 $ 632,085 $ $ 10,860,653 Non-current Liabilities Long-term debt,net of current portion 6,582,090 25,684,183 25,269,127 6,927,600 - 64,463,000 Net pension liability 10,069,839 6,713,226 - - - 16,783,065 OPEB liability 2,633,576 1,755,718 - - - 4,389,294 Unearned revenues 2,344,161 1,060,202 1,464,061 413,586 5,282,010 Total Non-current Liabilities 21,629,666 35,213,329 26,733,188 7,341,186 90,917,369 Total Liabilities 28,099,380 37,336,654 28,368,717 7,973,271 101,778,022 Deferred inflows of resources Pension 591,719 394,480 - - - 986,199 OPEB 601,389 400,926 - - - 1,002,315 Leases receivable 1,382,341 1,382,341 Total Deferred Inflows of Resources 1,193,108 2,177,747 3,370,855 Net Position Net imestment in capital assets 60,810,337 61,705,531 (26,419,127) (7,455,800) - 88,640,941 Restricted 866,708 2,917,476 2,892,297 - - 6,676,481 Unrestricted 16,707,448 4,212,991 5,003,153 605,421 26,529,013 Total Net Position 78,384,493 68,835,998 (18,523,677) (6,850,379) 121,846,435 TOTAL LIABILITIES,DEFERRED INFLOWS $107,6761981 $10813501399 $ 918451040 $ 111221892 $ $ 226,995,312 OF RESOURCES AND NET POSITION Page 161 Page 232 of 315 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2022 and 2021 NOTE 12—SEGMENT DISCLOSURE (Continued) December 31,2021(Restated) Gray's Old ASSETS AND DEFERRED OUTFLOWS OF RESOURCES Electric Water Crossing Greenwood Eliminations Grand Total Current assets $ 26,296,193 $ 9,108,757 $ 9,410,145 $ 1,103,520 $ $ 45,918,615 Non-current assets: Investments 5,848,933 3,966,836 - - - 9,815,769 Broadband maintenance prepaid 124,461 - - - - 124,461 Leases receivable - 1,514,594 - - - 1,514,594 Capital asssets,net 61,493,134 71,389,862 132,882,996 Total Non-current Assets 67,466,528 76,871,292 144,337,820 Total Assets 93,762,721 85,980,049 9,410,145 1,103,520 190,256,435 Deferred outflows of resources Pension 1,619,627 1,079,751 - - - 2,699,378 OPEB 1,498,049 998,700 - - - 2,496,749 Unamortized loss on refunding - 445,570 - - - 445,570 Unamortized redemption premium on refunding 13,630 13,630 Total Deferred outflows of resources 3,131,306 2,524,021 5,655,327 TOTAL ASSETS AND DEFERRED OUTFLOWS OF RESOURCES $ 96,894,027 $ 88,504,070 $ 9,410,145 $ 1,103,520 $ $ 195,911,762 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND NET POSITION Current liabilities $ 5,534,813 $ 1,247,059 $ 1,554,505 $ 595,135 $ $ 8,931,512 Non-current Liabilities Long-term debt,net of current portion - 10,391,987 26,413,922 7,455,800 - 44,261,709 Net pension liability 4,610,362 3,073,575 - - - 7,683,937 OPEB liability 3,164,074 2,109,383 - - - 5,273,457 Unearned revenues 2,688,132 1,162,002 1,327,865 405,405 5,583,404 Total Noncurrent Liabilities 10,462,568 16,736,947 27,741,787 7,861,205 62,802,507 Total Liabilities 15,997,381 17,984,006 29,296,292 8,456,340 71,734,019 Deferred inflows of resources Pension 4,318,081 2,878,720 - - - 7,196,801 OPEB 378,369 252,246 - - - 630,615 Leases receivable 1,536,705 1,536,705 Total Deferred Inflows of Resources 4,696,450 4,667,671 9,364,121 Net Position Net in%slmenl in capital assets 61,480,384 60,813,445 (27,463,922) (7,940,300) - 86,889,607 Restricted 1,068,491 3,351,806 2,828,679 - - 7,248,976 Unrestricted 13,651,321 1,687,142 4,749,096 587,480 20,675,039 Total Net Position 76,200,196 65,852,393 (19,886,147) (7,352,820) 114,813,622 TOTAL LIABILITIES,DEFERRED INFLOWS $ 96,894,027 $ 88,504,070 $ 9,410,145 $ 1,103,520 $ $ 195,911,762 OF RESOURCES AND NET POSITION Page 162 Page 233 of 315 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2022 and 2021 NOTE 12—SEGMENT DISCLOSURE (Continued) STATEMENTS OF REVENUE, EXPENSES, AND CHANGES IN NET POSITION Year ended December 31,2022 Gray's Old Electric Water Crossing Greenwood Eliminations Grand Total Operating Revenues Sales to consumers $ 30,015,195 $ 16,257,163 $ - $ - $ - $ 46,272,358 Other operating revenues 3,111,629 446,291 - - (1,802,119) 1,755,801 Operating expenses (29,438,648) (10,136,675) - - 1,802,119 (37,773,204) Depreciation (3,172,350) (4,540,031) - - - (7,712,381) Non-operating revenues(expenses) 269,430 (865,974) 1,362,470 502,441 1,268,367 Income(loss)before capital&other contributions 785,256 1,160,774 1,362,470 502,441 - 3,810,941 Capital contributions,net 1,399,041 1,822,831 3,221,872 CHANGE IN NET POSITION 2,184,297 2,983,605 1,362,470 502,441 - 7,032,813 Net Position,Beginning 76,200,196 65,852,393 (19,886,147) (7,352,820) 114,813,622 NET POSITION,ENDING $ 78,384,493 $ 68,835,998 $ (18,523,677) $ (6,850,379) $ $ 121,846,435 Year ended December 31,2021(Restated) Gray's Old Electric Water Crossing Greenwood Eliminations Grand Total Operating Revenues Sales to consumers $ 26,884,635 $ 14,950,899 $ - $ - $ - $ 41,835,534 Other operating revenues 3,005,500 468,511 - - (1,809,078) 1,664,933 Operating expenses (26,719,932) (9,736,481) - - 1,809,078 (34,647,335) Depreciation (3,377,198) (4,540,752) - - - (7,917,950) Non-operating revenues(expenses) (163,835) (498,912) 1,075,849 477,758 890,860 Income(loss)before capital&other contributions (370,830) 643,265 1,075,849 477,758 - 1,826,042 Capital contributions,net 4,454,372 1,897,302 6,351,674 CHANGE IN NET POSITION 4,083,542 2,540,567 1,075,849 477,758 - 8,177,716 Net Position,Beginning 72,116,654 63,311,826 (20,961,996) (7,830,578) 106,635,906 NET POSITION,ENDING $ 76,200,196 $ 65,852,393 $ (19,886,147) $ (7,352,820) $ $ 114,813,622 Page 163 Page 234 of 315 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2022 and 2021 NOTE 12—SEGMENT DISCLOSURE (Continued) STATEMENTS OF CASH FLOWS Year ended December 31,2022 Gray's Old Electric Water Crossing Greenwood Eliminations Grand Total NET CASH PROVIDED BY(USED IN) Operating activties $ 2,653,554 $ 6,003,658 $ - $ - $ - $ 8,657,212 Noncapital financing activities 601,572 342,652 - - - 944,224 Capital and related financing activities 4,522,899 7,248,838 (209,280) 1,260 - 11,563,717 Investing activities 232,803 280,468 16,683 5,712 535,666 Net increase(decrease)in cash and cash equivalents 8,010,828 13,875,616 (192,597) 6,972 - 21,700,819 Cash and Cash Equivalents,Beginning 21,033,415 6,538,762 2,488,882 288,396 30,349,455 CASH AND CASH EQUIVALENTS,ENDING $ 29,044,243 $ 20,414,378 $ 2,296,285 $ 295,368 $ $ 52,050,274 Year ended December 31,2021(Restated) Gray's Old Electric Water Crossing Greenwood Eliminations Grand Total NET CASH PROVIDED BY(USED IN) Operating activities $ 4,785,383 $ 5,330,195 $ - $ (53,323) $ - $ 10,062,255 Noncapital financing activities (1,083,746) - - - - (1,083,746) Capital and related financing activities (2,794,077) (6,547,152) (196,628) 25,993 - (9,511,864) Investing activities (5,910,410) (2,209,332) 15,233 3,831 (8,100,678) Net increase(decrease)in cash and cash equivalents (5,002,850) (3,426,289) (181,395) (23,499) - (8,634,033) Cash and Cash Equivalents,Beginning 26,036,265 9,965,051 2,670,277 311,895 38,983,488 CASH AND CASH EQUIVALENTS,ENDING $ 21,033,415 $ 6,538,762 $ 2,488,882 $ 288,396 $ $ 30,349,455 Page 164 Page 235 of 315 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2022 and 2021 NOTE 13— MARTIS VALLEY GROUNDWATER MANAGEMENT EFFORTS The Martis Valley aquifer underlies about 35,000 acres in both Placer and Nevada counties, near the Town of Truckee. It is the main groundwater 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 with jurisdiction in the Martis Valley Groundwater Basin (MVGB). Together, the TDPUD, NCSD and PCWA (Partnership Agencies)partnered to submit a Groundwater Management Plan and to help develop a groundwater model for the Martis Valley basin. The Martis Valley Groundwater Management Plan (GMP) was prepared in 2013 to reflect current water resources planning in the region and to incorporate the latest information and understanding of the underlying groundwater basin. This collaborative effort provided the guidance necessary to align groundwater policy. In addition to the GMP, a computer model of the groundwater basin was developed by the Desert Research Institute, which incorporated available data and enhanced understanding of the groundwater basin. A climate change modeling component out to the end of the century was part of the overall Federal study effort. Partner agencies each adopted the GMP in February 2012 and the model and associated report was completed in 2015. The total cost of the project was 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. In mid-2016, the California Sustainable Groundwater Management Act of 2014 (SGMA) took effect for which the District was the submitting agency of a SGMA Alternate Submittal in December, 2016 on behalf of the Town of Truckee, Placer County, Nevada County, PCWA, and Northstar CSD (Local SGMA Agencies). The SGMA Alternative Submittal was intended to comply with the new regulations. There was an adopted MOA amongst the six local agencies for this compliance project which covers the time period for preparation of the SGMA Alternative Submittal, possible conditional acceptance of the plan by DWR, and submittal of a first-year annual report. DWR had two years by statute to review the SGMA Alternative Submittal. In 2018, DWR was required to undergo groundwater basin prioritization which is the basis for compliance obligation for SGMA. The MVGB had previously been prioritized as medium priority. DWR's final Determination was to re-prioritize MVGB to low priority. This was a significant act that resulted in a direct reduction in regulatory burden and future regulatory costs that would be required for groundwater management. To ensure continued stewardship and management of the MVGB, the District and its local partners have agreed to return to the 2013 GMP framework which was never fully implemented due to SGMA. There was a kick-off meeting for the GMP in 2019 and the three local water agencies have hired a hydrogeologic consultant to prepare the first annual report as required by the GMP. The consultant's report was presented to the GMP Stakeholder Working Group at the annual meeting in the summer of 2020. NOTE 14— 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. Page 165 Page 236 of 315 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2022 and 2021 NOTE 15— 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 16—CHANGE IN ACCOUNTING PRINCIPLE AND RESTATMENT For 2022, the District implemented Governmental Accounting Standards Board (GASB)Statement No. 87, Leases. GASB 87 enhances the relevance and consistency of information of the District's leasing activities. It establishes requirements for lease accounting based on the principle that leases are financings of the right to use an underlying asset. A lessor is required to recognize a lease receivable and a deferred inflow of resources, expect for certain regulated leases. These changes were incorporated in the District's 2022 and 2021 financial statements. The implementation of GASB Statement No. 87 had the following net effect and the following restatement of the Statement of Net Position items as reported December 31, 2021: CONSOLIDATED STATEMENT OF NET POSITION 2021 Balance 2021 as Previously (Restated) Reported ASSETS AND DEFERRED OUTFLOWS OF RESOURCES Current assets Current portion of leases receivable $ 22,111 $ - Othercurrentassets 45,896,504 45,896,504 Total current assets 45,918,615 45,896,504 Noncurrent assets: Leases receivable,net of current portion 1,514,594 - Other long-term assets 142,823,226 142,823,226 Total non-current assets 144,337,820 142,823,226 Total Assets 190,256,435 188,719,730 Deferred outflows of resources 5,655,327 5,655,327 TOTAL ASSETS AND DEFERRED OUTFLOWS OF RESOURCES $195,911,762 $194,375,057 LIABILITIES,DEFERRED INFLOWS OF RESOURCES AND NET POSITION Current liabilities $ 8,931,512 $ 8,931,512 Noncurrent Liabilities 62,802,507 62,802,507 Total Liabilities 71,734,019 71,734,019 Deferred inflows of resources Leases receivable 1,536,705 - Other deferred inflows 7,827,416 7,827,416 Total deferred inflows of resources 9,364,121 7,827,416 NET POSITION Net investment in capital assets 86,889,607 86,889,607 Restricted for debt service 7,248,976 7,248,976 Unrestricted 20,675,039 20,675,039 Total Net Position 114,813,622 114,813,622 TOTAL LIABILITIES,DEFERRED INFLOWS OF RESOURCES AND NET POSITION $195,911,762 $194,375,057 Page 66 Page 237 of 315 E any -w sw'r PIP 1 i .� 12 ) /7 1y} -i� 1 ''C REQUIRED SUPPLEMENTARY INFORMATION Page 239 of 315 TRUCKEE DONNER PUBLIC UTILITY DISTRICT REQUIRED SUPPLEMENTARY INFORMATION December 31, 2022 and 2021 COST SHARING DEFINED BENEFIT PENSION PLANS Schedule of the District's Proportionate Share of the Net Pension Liability Cost Sharing Defined Benefit Plans As of June 30 Last Ten Years' 2022 2021 2020 2019 2018 2017 2016 2015 2014 Portion of Net Pension Liability 0.35867% 0.40467% 0.33245% 0.32145% 0.31157% 0.30379% 0.29837% 0.29209% 0.09982% Proportionate Share of The Net Pension Liability $ 16,783,065 $ 7,683,937 $ 14,023,172 $ 12,872,646 $ 11,742,137 $ 11,975,655 $ 10,250,329 $ 8,013,400 $ 6,210,985 Covered Payroll $ 7,872,221 $ 7,762,131 $ 7,619,022 $ 7,602,120 $ 7,375,933 $ 7,108,563 $ 6,670,248 $ 6,162,431 $ 6,278,545 Proportionate Share of the Net Pension Liability as Percentage of Covered Payroll 213.19% 98.99% 184.05% 169.33% 159.20% 168.47% 153.67% 130.04% 98.92% Proportionate Share of Plan's Fidicuiary Net Position $ 49,619,385 $ 53,485,582 $ 43,589,560 $ 40,367,745 $ 29,308,590 $ 27,244,095 $ 30,950,578 $ 30,725,516 $ 30,386,101 Plan Fiduciary Net Position as a percentage of the Total Pension Liability 74.73% 87.44% 75.66% 75.82% 75.26% 73.31% 75.12% 79.31% 89.17% Fiscal year 2014 was the 1st year of implementation,therefore only nine years are shown Page 169 Page 240 of 315 TRUCKEE DONNER PUBLIC UTILITY DISTRICT REQUIRED SUPPLEMENTARY INFORMATION December 31, 2022 and 2021 COST SHARING DEFINED BENEFIT PENSION PLANS-CONTINUED Schedule of Contributions Cost Sharing Defined Benefit Plans December 31 Last Ten Years' 2022 2021 2020 2019 2018 2017 2016 2015 2014 Contractually Required Contribution(Actuarially Determined) $ 2,080,863 $ 1,844,808 $ 1,746,709 $ 1,872,297 $ 1,890,102 $ 1,670,256 $ 1,478,700 $ 1,312,540 $ 938,637 Contributions in Relation to the Actuarially Determined Contributions 2,080,863 1,844,808 1,746,709 1,872,297 1,890,102 1,670,256 1,478,700 1,312,540 938,637 Contribution deficiency(excess) - - - - - - - - - Co\ered Payroll $ 8,871,369 $ 7,704,033 $ 7,889,154 $ 7,494,347 $ 7,358,842 $ 6,940,748 $ 6,663,230 $ 6,074,329 $ 5,907,091 Contributions as a percentage of covered-employee payroll 23% 24% 22% 25% 26% 24% 22% 22% 16 Fiscal year 2014 was the 1st year of implementation,therefore only nine years are shown Page 170 Page 241 of 315 TRUCKEE DONNER PUBLIC UTILITY DISTRICT REQUIRED SUPPLEMENTARY INFORMATION December 31, 2022 and 2021 Schedule of Changes in The District's Net OPEB Liability and Related Ratios Measurement Date: December 31, 2021 2020 2019 2018 2017 Report Date: December 31, 2022 2021 2020 2019 2018 Total OPEB Liability Service Cost $ 201,835 $ 206,271 $ 168,811 $ 178,856 $ 170,473 Interest 629,595 621,983 476,373 457,563 448,374 Changes in Benefit Terms 0 0 0 0 0 Differences Between Expected and Actual Experience (271,987) (28,016) 1,814,336 (29,828) 0 Changes of Assumptions (73,387) (187,044) 306,886 (233,084) 0 Benefit Payments (268,688) (281,328) (276,678) (244,700) (214,280) Implicit Rate Subsidy Credit (545,407) (546,439) (270,562) (270,061) (254,930) Net Change in Total OPEB Liability $ (328,039) $ (214,573) $ 2,219,166 $ (141,254) $ 149,637 Total OPEB Liability-Beginning of Year 8,478,479 8,693,052 6,473,886 6,615,140 6,465,503 Total OPEB Liability-End of Year(a) $ 8,150,440 $ 8,478,479 $ 8,693,052 $ 6,473,886 $ 6,615,140 Plan Fiduciary Net Position Net Investment Income $ 444,083 $ 378,904 $ 473,144 $ (110,318) $ 167,459 Contributions Employer-District's Contribution 381,988 391,334 376,674 294,698 256,280 Employer-Implicity Subsidy 545,407 546,439 270,562 270,061 254,930 Benefit Payments, Including Refunds of Employee Contributions (268,688) (281,328) (276,678) (244,700) (214,280) Implicit Rate Subsidy Fulfilled (545,407) (546,439) (270,562) (270,061) (254,930) Administrative Expense (1,259) (1,353) (1,209) (557) (519) Net Change in Plan Fiduciary Net Position $ 556,124 $ 487,557 $ 571,931 $ (60,877) $ 208,940 Plan Fiduciary Net Position-Beginning of Year 3,205,022 2,717,465 2,145,534 2,206,411 1,997,471 Plan Fiduciary Net Position-End of Year(b) $ 3,761,146 $ 3,205,022 $ 2,717,465 $ 2,145,534 $ 2,206,411 District's Net OPEB liability-End of Year=(a)-(b) $ 4,389,294 $ 5,273,457 $ 5,975,587 $ 4,328,352 $ 4,408,729 Plan Fiduciary Net Position as a Percentage of the Total OPEB Liability 46.1% 37.8% 31.3% 33.1% 33.4% Covered Employee Payroll $ 7,331,605 $ 7,149,490 $ 7,604,103 $ 7,400,587 $ 7,202,518 District's Net OPEB Liability as a Percentage of Covered-Employee Payroll 59.87% 73.76% 78.58% 58.49% 61.21% Notes to Schedule:The District adopted GASB 75 for the fiscal Year Ending December 31,2018 Page 171 Page 242 of 315 TRUCKEE DONNER PUBLIC UTILITY DISTRICT REQUIRED SUPPLEMENTARY INFORMATION December 31, 2022 and 2021 Other Post Employment Benefits-Schedule of Investment Returns Measurement Date: December 31, 2021 2020 2019 2018 2017 Report Date: December 31, 2022 2021 2020 2019 2018 Annual Money-Weighted Rate of Return, Net of Investment Expense 13.62% 13.67% 21.56% -4.94% 8.30% The annual money-weighted rate of return,net of investment expenses, is the net investment income for the year divided by the average net positon for the year(less investment expenses). Notes to Schedule:The District adopted GASB 75 for the fiscal Year Ending December 31,2018 Other Post Employment Benefits-Schedule of Contributions Measurement Date: December 31, 2021 2020 2019 2018 2017 Report Date: December 31, 2022 2021 2020 2019 2018 Actuarially Determined Contribution $ 814,095 $ 827,767 $ 532,225 $ 614,761 $ 569,210 Less:Actual Contributions 927,395 937,773 647,236 564,759 511,210 Contribution Deficiency(Excess) $ (113,300) $ (110,006) $ (115,011) $ 50,002 $ 58,000 Covered-Employee Payroll $ 7,331,605 $ 7,149,490 $ 7,604,103 $ 7,400,587 $ 7,202,518 Contributions as a Percentage of Covered-Employee Payroll 12.65% 13.12% 8.51% 7.63% 7.10% Notes to Schedule:The District adopted GASB 75 for the fiscal Year Ending December 31,2018 Page 172 Page 243 of 315 TRUCKEE DONNER PUBLIC UTILITY DISTRICT REQUIRED SUPPLEMENTARY INFORMATION December 31, 2022 and 2021 Other Post Employment Benefits -Actuarial Assumptions Actuarial methods and assumptions used to set the actuarially determined contributions for fiscal year 2022 were from the December 21, 2021 valuation. Methods and assumptions used to determine contributions: Assumptions and Methods Actuarial Cost Method Entry age normal, level percent of pay Amortization Method Closed period, level percent of pay Amortization Period 20 years Inflation 7.25% Assumed Payroll Growth Year 1 2.750% Healthcare Trend Rates 7.00%, trending down to 3.94% over 55 years Rate of Return on Assets 5.85% Discount Rate used to measure total OPEB liability 7.68% Mortality Rate CalPERS Rates utilizing the decrement table Mort and Disb Rates—PA Misc from the CalPERS OPEB assumption model revised May 14, 2018. Retirement Rates CalPERS Rates based on CalPERS assumption model revised May 14, 2018 for the periods 1997 through 2017. Page 173 Page 244 of 315 •3 �� ems,�����_`i; r � ��. r�4� ��'� . � �;d aw E�_'[�� sS+ �rA ,�,.�e�.� .'fit } �,�• Lt ,1` � e .f�}b i'� C ',3:�..+> �"r' �_ ���������� � �4�r '�,, i Y l _ y� �' ''���,<t•r�}�� :.� ' ` - ,fig / . r r��� _. `. � `k 'lkja ?b i�. 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Ln } ,,1 � a� 'M- F,t''A:µ,�� I,i?r, �yY,�'d�. ,f'S;+i�V � n .�° { - .,. - ,-.r '/rt-., � LY;..;+ ly. ti. ��.,I C �1 Y,y t .�;7 ,V: w;7 S .,,�.,��E`� -rt�r�:.� �,•- I • SUPPLEMENTARY INFORMATION Page 246 of 315 TRUCKEE DONNER PUBLIC UTILITY DISTRICT SUPPLEMENTARY INFORMATION December 31, 2022 CONSOLIDATING STATEMENT OF NET POSITION— PAGE 1 OF 2 As of December 31,2022 Component Units 9ectric Operations Water Operations Gray's Crossing Old Greenwood Eliminations Totals ASSETS AND DEFERRED OUTFLOWS OF RESOURCES CURRENT ASSETS Cash and cash equivalents Operating $ 6,277,013 $ 3,358,132 $ 88,742 $ 295,368 $ $ 10,019,255 Designated 14,894,586 1,769,676 - - 16,664,262 Restricted 7,454,130 14,958,504 2,207,543 24,620,177 Total cash and cash equivalents 28,625,729 20,086,312 2,296,285 295,368 51,303,694 Accounts receivable,net 2,476,011 1,013,193 - - 3,489,204 Unbilled revenues 2,646,525 1,105,671 - - 3,752,196 Special assessments receivable - 8,206 7,540,558 827,524 8,376,288 Accrued interest receivable 91,265 103,187 8,197 - 202,649 Leases receivable current portion - 34,423 - 34,423 Materials and supplies 1,368,018 302,301 1,670,319 Repaid expenses 482,511 447,533 930,044 Other 64,626 69,021 - 133,647 Total Current Assets 35,754,685 23,169,847 9,845,040 1,122,892 69,892,464 NON-CURRENT ASSETS Operating Investments - 3,678,068 - - 3,678,068 Designated Investments 5,389,941 - 5,389,941 Broadband maintenance prepaid 62,229 - 62,229 Leases receivable,net of current portion - 1,452,595 1,452,595 Capital Assets Utility plant 96,213,259 137,175,289 233,388,548 Accumulated depreciation (36,327,291) (63,695,999) (100,023,290) Construction work in progress 1,101,897 2,502,991 3,604,888 Total capital assets 60,987,865 75,982,281 136,970,146 Total Non-Current Assets 66,440,035 81,112,944 147,552,979 TOTAL ASSETS 102,194,720 104,282,791 9,845,040 1,122,892 217,445,443 DEFERRED OUTFLOWS OF RESOURCES Pension 4,177,976 2,785,317 - - 6,963,293 OPE B 1,304,285 869,523 2,173,808 Unamortized loss on refunding - 412,768 412,768 Total deferred outflows of resources 5,482,261 4,067,608 - 9,549,869 TOTAL ASSETS AND DEFERRED OUTFLOWS OF RESOURCES $ 107,676,981 $ 108,350,399 $ 9,845,040 $ 1,122,892 $ $ 226,995,312 Page 176 Page 247 of 315 TRUCKEE DONNER PUBLIC UTILITY DISTRICT SUPPLEMENTARY INFORMATION December 31, 2022 CONSOLIDATING STATEMENT OF NET POSITION— PAGE 2 OF 2 As of Decem be 31,2022 Component Units Bectric Operations Water Operations Gray's Crossing Old Greenwood Dirrinations Totals NET POSITION AND LIABILITIES CURRENT LIABILITIES Other liabilities Accounts payable $ 4,995,183 $ 617,151 $ $ $ $ 5,612,334 Customer deposits 199,180 53,514 252,694 Other 1,098,953 429,849 1,528,802 Total other liabilities 6,293,316 1,100,514 7,393,830 Current liabilities payable from restricted assets: Current portion of long-term debt 140,000 885,000 1,150,000 528,200 2,703,200 Accrued interest payable 36,398 137,811 485,529 103,885 763,623 Total Current Liabilities Payable from Restricted Assets 176,398 1,022,811 1,635,529 632,085 3,466,823 Total Current Liabilities 6,469,714 2,123,325 1,635,529 632,085 10,860,653 NON-CURRENT LIABILITIES Long-term debt,net of discounts and premiums 6,582,090 25,684,183 25,269,127 6,927,600 64,463,000 Net pension liability 10,069,839 6,713,226 - - 16,783,065 OPEB liability 2,633,576 1,755,718 - - 4,389,294 Unearned revenues 2,344,161 1,060,202 1,464,061 413,586 5,282,010 Total non-current liabilities 21,629,666 35,213,329 26,733,188 7,341,186 90,917,369 Total Liabilities 28,099,380 37,336,654 28,368,717 7,973,271 101,778,022 DEFERRED INFLOWS OF RESOURCES Pension 591,719 394,480 - - 986,199 OPE3 601,389 400,926 1,002,315 Leases receivable - 1,382,341 1,382,341 Total deferred inflows of resources 1,193,108 2,177,747 3,370,855 NET POSITION Net investment in capital assets 60,810,337 61,705,531 (26,419,127) (7,455,800) 88,640,941 Restricted 866,708 2,917,476 2,892,297 - 6,676,481 Unrestricted 16,707,448 4,212,991 5,003,153 605,421 26,529,013 Total Net Position 78,384,493 68,835,998 (18,523,677) (6,850,379) 121,846,435 TOTAL LIABILITIES,DEFERRED INFLOWS OF RESOURCES AND NET POSITION $ 107,676,981 $ 108,350,399 $ 9,845,040 $ 1,122,892 $ $ 226,995,312 Page 177 Page 248 of 315 TRUCKEE DONNER PUBLIC UTILITY DISTRICT SUPPLEMENTARY INFORMATION December 31, 2022 CONSOLIDATING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION For the Year Ended December 31,2022 Component Units Electric Operations Water Operations Gray's Crossing Old Greenw ood Biminations Totals OPERATING REVENUES Sales to customers $ 30,015,195 16,257,163 $ $ $ $ 46,272,358 Interdepartmental sales 1,308,495 2,800 (1,311,295) - Standby fees 17,199 105,612 122,811 Cap and trade proceeds 514,604 - 514,604 Other 1,271,331 337,879 (490,824) 1,118,386 Total Operating Revenues 33,126,824 16,703,454 (1,802,119) 48,028,159 OPERATING EXPENSES Purchased power 16,823,869 - 16,823,869 Operations and maintenance 7,068,071 6,280,455 (1,311,295) 12,037,231 Consumer services 1,586,441 783,839 2,370,280 Administration and general 3,960,267 3,072,381 (490,824) 6,541,824 Depreciation 3,172,350 4,540,031 7,712,381 Total Operating Expenses 32,610,998 14,676,706 (1,802,119) 45,485,585 Operating Income 515,826 2,026,748 2,542,574 NON-OPERATING REVENUE(EXPENSES) Special tax revenue - - 2,836,533 818,991 3,655,524 Investment income(loss) (537,645) (235,711) 20,436 5,398 (747,522) Interest expense (145,586) (762,663) (1,494,543) (325,154) (2,727,946) Amortization credit(expense) (8,486) 17,592 (5,205) - 3,901 Other non-operating revenues 1,273,115 421,713 22,115 9,840 1,726,783 Other non-operating expenses (317,386) (349,574) (16,866) (6,634) (690,460) Gain on disposition of assets 5,418 42,669 48,087 Total Non-Operating Revenue(Expenses) 269,430 (865,974) 1,362,470 502,441 1,268,367 Income Before Contributions 785,256 1,160,774 1,362,470 502,441 3,810,941 CAPITAL&OTHER CONTRIBUTIONS,net Capital Contributions 1,205,611 2,016,261 - - 3,221,872 Intercompany Debt Service-Pension Sidefund 193,430 (193,430) - Total Capital and Other Contributions,net 1,399,041 1,822,831 - 3,221,872 CHANGE IN NET POSITION 2,184,297 2,983,605 1,362,470 502,441 7,032,813 NET POSITION-Beginning of Year 76,200,196 65,852,393 (19,886,147) (7,352,820) 114,813,622 NET POSITION-END OF YEAR $ 78,384,493 $ 68,835,998 $ (18,523,677) $ (6,850,379) $ $ 121,846,435 Page 178 Page 249 of 315 THIS PAGE IS INTENTIONALLY LEFT BLANK Page 250 of 315 TRUCKEE DONNER PUBLIC UTILITY DISTRICT SUPPLEMENTARY INFORMATION December 31, 2022 CONSOLIDATING STATEMENT OF CASH FLOWS— PAGE 1 OF 2 For the Year Ended December 31,2022 Component Units Electric Operations Water Operations Gray's Crossing Old Greenwood Eliminations Total CASH FLOWS FROM OPERATING ACTIVITIES Received from customers $ 33,275,099 $ 16,442,685 $ $ $ (1,802,119) $ 47,915,665 Paid to suppliers for goods and services (24,670,349) (7,096,385) 1,802,119 (29,964,615) Paid to employees for services (5,951,196) (3,342,642) - (9,293,838) Net cash provided by operating activities 2,653,554 6,003,658 8,657,212 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Federal and state financial assistance received 1,273,115 421,713 1,694,828 Federal and state financial assistance distributed to customers (113,135) (79,061) (192,196) Principal payments on long-term debt (551,751) (551,751) Interest payments on long-term debt (6,657) - (6,657) Net cash provided by noncapital financing activities 601,572 342,652 944,224 CASH FLOWS FROM CAPITAL AND RELATE) FINANCING ACTIVITIES Capital expenditures for utility plant (2,684,787) (8,292,286) (10,977,073) Net proceeds(costs)from disposal of assets (17,644) 42,669 25,025 Capital contributions,connection and facility fees 805,464 844,322 1,649,786 Special assessments receipts - 2,399 2,399 Special tax receipts - - 2,354,239 817,665 3,171,904 Proceeds from issuance of new debt 6,522,984 15,933,701 - - 22,456,685 Principal payments on long-term debt - (657,018) (1,050,000) (484,500) (2,191,518) Interest payments on long-term debt (103,118) (624,949) (1,513,519) (331,905) (2,573,491) Net cash provided(used)by capital and related financing activities 4,522,899 7,248,838 (209,280) 1,260 11,563,717 CASH FLOWS FROM INVESTING ACTIVITIES Interest income received 232,803 280,468 16,683 5,712 535,666 Net cash provided by investing activities 232,803 280,468 16,683 5,712 535,666 Net increase(decrease)in cash and cash equivalents 8,010,828 13,875,616 (192,597) 6,972 21,700,819 CASH AND CASH EQUIVALENTS—Beginning of Year 21,033,415 6,538,762 2,488,882 288,396 30,349,455 CASH AND CASH EQUIVALENTS—END OF YEAR $ 29,044,243 $ 20,414,378 $ 2,296,285 $ 295,368 $ $ 52,050,274 Page 180 Page 251 of 315 TRUCKEE DONNER PUBLIC UTILITY DISTRICT SUPPLEMENTARY INFORMATION December 31, 2022 CONSOLIDATING STATEMENT OF CASH FLOWS— PAGE 2 OF 2 For the Year Ended December 31,2022 Component Units Bectric Operations Water Operations Gray's Crossing Old Greenwood Biminations Total RECONCILIATION OF OPERATING INCOMETO NET CASH PROVIDED BY OPERATING ACTIVITIES Operating income $ 515,826 $ 2,026,748 $ $ $ $ 2,542,574 Noncash items included in operating income Depreciation and amortization 3,172,350 4,540,031 7,712,381 Depreciation charged to other accounts 96,944 192,180 289,124 Intercompany transfer 193,430 (193,430) - Accounts receivable (1,154,418) (304,798) (1,459,216) Materials and supplies (587,584) (77,302) (664,886) Repaid expenses (17,120) (20,870) (37,990) Accounts payable 1,489,869 492,646 1,982,515 Customer deposits (55,862) (515) (56,377) Deferred Pension Contributions-GASB 68 (938,948) (625,963) (1,564,911) Deferred inflow,leases amortization (154,364) (154,364) Leases receivable 49,686 49,686 Other current liabilities (60,933) 79,609 18,676 NET CASH PROVIDED BY OPERATING ACTIVITIES $ 2,653,554 $ 6,003,658 $ $ $ $ 8,657,212 RECONCILIATION OF CASH AND CASH EQUIVALENTS TO THE BALANCE SHEET Operating 6,277,013 3,358,132 88,742 295,368 $ $ 10,019,255 Designated 14,894,586 1,769,676 - - 16,664,262 Restricted bond funds-current 7,454,130 14,958,504 2,207,543 24,620,177 Operating investments-non-current - 3,678,068 - 3,678,068 Designated investments-non-current 5,389,941 - - - 5,389,941 Total Cash and Investments 34,015,670 23,764,380 2,296,285 295,368 60,371,703 Less: Long-term investments (5,389,941) (3,678,068) - - (9,068,009) Mark to market adjustment 418,514 328,066 746,580 TOTAL CASH AND CASH EQUIVALENTS $ 29,044,243 $ 20,414,378 $ 2,296,285 $ 295,368 $ $ 52,050,274 Page 181 Page 252 of 315 SECTIONSTATISTICAL Photo: International Women's Day i � 11,� L. . .�� � --1��, � � �� f ' � -• -y�F����+�f�, .._... 'i � � y4, Page Page of STATISTICAL SECTION INTRODUCTION AND CONTENTS INDEX This part of the District's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the District's overall financial health. Contents Page Range Financial Trends 84 - 85 Information trends to help the reader understand how the District's financial performance and condition have changed over time. Revenue Capacity 86 - 88 Information trends to help the reader understand the District's revenue sources. Debt Capacity 89 - 90 Current and past trends regarding the level of debt existing and the Debt capacity of the District. Demographic and Economic Information 91 - 92 These schedules help the reader understand the environment within which the District's financial activities occur. Operating Information 93 - 94 Service and infrastructure information to help the reader understand the District's customers and operational impacts on financial information. Page 83 Page 254 of 315 TRUCKEE DONNER PUBLIC UTILITY DISTRICT CONSOLIDATED STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION 10-Years Ended December 31, 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 OPERATING REVENUES Sales to customers $ 46,272,358 $ 41,835,534 $ 38,988,024 $ 37,029,653 $ 35,486,412 $ 34,462,146 $ 33,026,587 $ 30,818,856 $ 30,331,953 $ 30,810,370 Water meter surcharge (1) - - - - - - - 703,982 Standby fees 122,811 124,130 133,470 137,580 143,320 154,970 160,670 169,010 174,250 182,580 Cap and trade proceeds 514,604 847,185 1,444,498 1,503,495 1,186,320 1,140,372 1,172,306 965,402 836,193 620,403 Other 1,118,386 693,618 1,176,035 662,843 868,965 2,577,865 1,244,146 1,023,729 1,286,200 1,345,476 Total Operating Revenues 48,028,159 43,500,467 41,742,027 39,333,571 37,685,017 38,335,353 35,603,709 32,976,997 32,628,596 33,662,811 OPERATING EXPENSES Purchased power 16,823,869 13,560,417 11,285,537 10,754,898 11,001,858 11,327,300 11,511,308 11,348,241 11,414,498 12,306,311 Operations and maintenance 12,037,231 12,464,186 11,340,451 9,768,460 9,056,263 10,241,955 6,951,273 6,804,271 6,762,174 7,190,676 Consumerser\Aces 2,370,280 2,255,853 2,080,714 2,667,957 2,152,817 2,593,005 2,130,422 2,159,522 2,318,900 2,563,012 Administration and general 6,541,824 6,366,879 6,165,611 5,772,396 5,002,288 5,008,231 4,331,827 4,054,439 3,976,027 3,798,842 Pension expense(2) 1,220,591 565,373 806,399 OPEB expense(2) 719,218 Depreciation 7,712,381 7,917,950 7,974,868 7,420,251 6,878,860 6,531,640 6,237,033 5,960,520 5,601,301 5,427,377 Total Operating Expenses 45,485,585 42,565,285 38,847,181 36,383,962 34,092,086 35,702,131 33,101,672 30,892,366 30,879,299 31,286,218 Operating Income 2,542,574 935,182 2,894,846 2,949,609 3,592,931 2,633,222 2,502,037 2,084,631 1,749,297 2,376,593 NON-OPERATING REVENUE(EXPENSES) Special tax re\enue 3,655,524 3,431,174 3,375,327 3,352,289 3,268,849 3,342,077 3,290,186 3,306,080 3,356,052 3,407,806 Investment income (747,522) (185,269) 573,668 1,038,582 694,432 420,490 390,310 393,002 510,962 110,423 Interest expense (2,727,946) (2,369,633) (2,530,616) (2,647,817) (2,753,906) (2,868,084) (3,060,079) (3,141,758) (3,568,730) (3,834,332) Amortization 3,901 (38,250) (38,250) (38,250) (38,250) (38,250) (17,804) 10,150 26,297 25,092 Other non-operating revenues 1,726,783 83,524 41,766 48,096 21,332 42,057 63,008 34,126 60,066 58,063 Other non-operating expenses (690,460) (79,025) (238,590) (38,160) (31,691) (26,377) (150,000) (251,753) (344,353) (75,062) Gain(loss)on disposition of assets 48,087 48,339 238,885 13,748 1,284 7,538 (1,514) 30,990 (93,925) 4,892 Total Non-Operating Revenue(Expenses) 1,268,367 890,860 1,422,190 1,728,488 1,162,050 879,451 514,107 380,837 (53,631) (303,118) Income Before Contributions 3,810,941 1,826,042 4,317,036 4,678,097 4,754,981 3,512,673 3,016,144 2,465,468 1,695,666 2,073,475 CAPITAL&OTHER CONTRIBUTIONS 3,221,872 6,351,674 2,043,795 4,683,099 4,652,720 2,096,828 1,699,110 1,430,510 994,056 824,714 CHANGE IN NET POSITION 7,032,813 8,177,716 6,360,831 9,361,196 9,407,701 5,609,501 4,715,254 3,895,978 2,689,722 2,898,189 Net Position-Beginning of Year,before adjustment 114,813,622 106,635,906 100,275,075 90,913,879 84,857,643 79,248,142 74,532,888 70,636,910 82,235,941 79,337,752 Less: Restatement for change in - - - (3,351,465) - - (14,288,753) - accounting principal(3)(4)(5) Net Position-Beginning of Year,as adjusted 114,813,622 106,635,906 100,275,075 90,913,879 81,506,178 79,248,142 74,532,888 70,636,910 67,947,188 79,337,752 NET POSITION-END OF YEAR $121,846,435 $114,813,622 $106,635,906 $100,275,075 $ 90,913,879 $ 84,857,643 $ 79,248,142 $ 74,532,888 $ 70,636,910 $ 82,235,941 (1)District implemented a water meter surcharge of$5 per month per customer,effective 2009 through 2013,to fund cost of regulatory California Assemply Bill 2572 mandate which required all water meters be replaced. (2)Pension and OPEB costs seperately stated in 2015 and 2016. For all other years,these costs are included Operations and maintenance,Consumer ser\Aces,and Administration and general categories,as applicable. (3)In 2018,the District adopted GASB Statement No 75,Accounting and Financial Reporting for Postemployment Benefits other than Pensions. The beginning of year net position was adjusted for this change. (4)In 2014,the District adopted GASB Statement No 68,Accounting and Financial Reporting for Pensions. The beginning of year net position was adjusted for this change. Page 184 Page 255 of 315 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NET POSITION BY COMPONENT AND SEGMENT 10-Years as of December 31, 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 NET POSITION by COMPONENT,as of December 31, Net invwstment in capital assets $ 88,640,941 $ 86,889,607 $ 79,111,738 $ 74,841,974 $ 66,843,642 $ 55,267,086 $ 52,052,148 $ 47,043,317 $ 39,661,738 $ 42,944,031 Restricted 6,676,481 7,248,976 11,439,913 11,052,666 9,742,741 9,288,950 8,773,009 8,569,701 10,521,661 11,096,122 Unrestricted 26,529,013 20,675,039 16,084,255 14,380,435 14,327,496 20,301,607 18,422,985 18,919,870 20,453,511 28,195,788 Net Position,Total $ 121,846,435 $114,813,622 $106,635,906 $100,275,075 $ 90,913,879 $ 84,857,643 $ 79,248,142 $ 74,532,888 $ 70,636,910 $ 82,235,941 CHANGE IN NET POSITION to PRIOR YEAR,Amount Net investment in capital assets $ 1,751,334 $ 7,777,869 $ 4,269,764 $ 7,998,332 $ 11,576,556 $ 3,214,938 $ 5,008,831 $ 7,381,579 $ (3,282,293) $ 2,458,926 Restricted (572,495) (4,190,937) 387,247 1,309,925 453,791 515,941 203,308 (1,951,960) (574,461) (3,571,807) Unrestricted 5,853,974 4,590,784 1,703,820 52,939 (5,974,111) 1,878,622 (496,885) (1,533,641) (7,742,277) 4,011,070 Total Change in Net Position from Prior Year $ 7,032,813 $ 8,177,716 $ 6,360,831 $ 9,361,196 $ 6,056,236 $ 5,609,501 $ 4,715,254 $ 3,895,978 $(11,599,031) $ 2,898,189 CHANGE IN NET POSITION to PRIOR YEAR,Percentage Net investment in capital assets 2.0% 9.8% 5.7% 12.0% 20.9% 6.2% 10.6% 18.6% -7.6% 6.1 Restricted -7.9% -36.6% 3.5% 13.4% 4.9% 5.9% 2.4% -18.6% 5.2% -24.4% Unrestricted 28.3% 28.5% 11.8% 0.4% -29.4% 10.2% -2.6% -7.5% -27.5% 16.6% Total Change in Net Position from Prior Year 6.1% 7.7% 6.3% 10.3% 7.1% 7.1% 6.3% 5.5% -14.1% 3.7 For more information on the change in Net Position;refer to next page for 10 Years of CONSOLIDATED STATEMENTS OF REVENUES,EXPENSES AND CHANGES IN NET POSITION NET POSITION,BY COMPONENT,BY SEGMENT,as of December 31 Net investment in capital assets Electric Operations $ 60,810,337 $ 61,480,384 $ 59,467,730 $ 56,177,123 $ 50,048,040 $ 43,501,844 $ 42,500,995 $ 41,484,835 $ 37,197,945 $ 42,526,857 Water Operations 61,705,531 60,813,445 56,437,825 56,721,963 56,123,709 52,216,044 50,920,550 47,786,674 45,415,680 45,039,457 Gray's Crossing CFD (26,419,127) (27,463,922) (28,408,717) (29,263,512) (30,163,307) (30,948,102) (31,557,897) (32,137,692) (32,607,487) (33,012,283) Old Greenwood CFD (7,455,800) (7,940,300) (8,385,100) (8,793,600) (9,164,800) (9,502,700) (9,811,500) (10,090,500) (10,344,400) (11,610,000) Net investment in capital assets,total $ 88,640,941 $ 86,889,607 $ 79,111,738 $ 74,841,974 $ 66,843,642 $ 55,267,086 $ 52,052,148 $ 47,043,317 $ 39,661,738 $ 42,944,031 Restricted Electric Operations $ 866,708 $ 1,068,491 $ 2,354,515 $ 2,455,342 $ 1,777,693 $ 1,842,553 $ 1,316,355 $ 944,929 $ 1,109,740 $ 1,161,905 Water Operations 2,917,476 3,351,806 6,273,747 5,803,021 5,114,785 4,576,780 4,695,114 4,817,195 6,659,078 6,172,282 Gray's Crossing CFD 2,892,297 2,828,679 2,811,651 2,794,303 2,850,263 2,869,617 2,761,540 2,807,577 2,752,843 2,746,567 Old Greenwood CFD - - - - - - - - - 1,015,368 Restricted,total $ 6,676,481 $ 7,248,976 $ 11,439,913 $ 11,052,666 $ 9,742,741 $ 9,288,950 $ 8,773,009 $ 8,569,701 $ 10,521,661 $ 11,096,122 Unresticted Electric Operations $ 16,707,448 $ 13,651,321 $ 10,294,409 $ 8,653,888 $ 8,594,312 $ 10,762,466 $ 7,920,940 $ 5,912,854 $ 6,528,260 $ 9,954,448 Water Operations 4,212,991 1,687,142 600,254 519,901 734,026 4,682,775 5,875,984 8,770,727 10,054,081 14,481,503 Gray's Crossing CFD 5,003,153 4,749,096 4,635,070 4,670,778 4,442,898 4,256,091 3,976,683 3,561,565 3,193,320 2,827,987 Old Greenwood CFD 605,421 587,480 554,522 535,868 556,260 600,275 649,378 674,724 677,850 931,850 Unresticted,total $ 26,529,013 $ 20,675,039 $ 16,084,255 $ 14,380,435 $ 14,327,496 $ 20,301,607 $ 18,422,985 $ 18,919,870 $ 20,453,511 $ 28,195,788 Page 85 Page 256 of 315 Truckee Donner Public Utility District Electric and Water-Account Type Mix and Rates Last 11 Years Electric Utility Average Number of Accounts Typical Residential Average Monthly Bill Average Residential Residential Non- Rate Year Primary Secondary Residential Total Residential I Primary Secondary Primary Secondary Increase Non-Residential @ 500 KwH @ 500 KwH @ 785 KwH @ 420 KwH Prim.I Secon. (1) (1) (2) Mix (3) (3) (4) (4) (5) 2022 5,129 7,812 1,661 14,602 89%1 11% $92.18 $102.48 $132.56 $89.50 8.3%1 9.0% 2021 4,971 7,789 1,656 14,416 89%111% $84.70 $94.20 $122.41 $82.10 2.0%13.0% 2020 4,898 7,659 1,619 14,176 89%1 11% $82.33 $91.83 $120.04 $79.73 1.8%1 2.7% 2019 4,810 7,565 1,585 13,960 89%1 11% $80.25 $89.75 $117.96 $77.65 2.4%1 3.7% 2018 4,798 7,462 1,558 13,818 89%1 11% $77.50 $87.00 $115.20 $74.89 1.9%1 3.0% 2017 4,784 7,389 1,535 13,708 89%1 11% $75.35 $84.85 $113.05 $72.74 1.7%1 2.6% 2016 4,738 7,303 1,527 13,568 89%1 11% $73.51 $83.01 $111.21 $70.90 0.0%1 0.0% 2015 4,642 7,235 1,512 13,389 89%1 11% $73.51 $83.01 $111.21 $70.90 0.0%1 0.0% 2014 4,646 7,157 1,517 13,320 89%1 11% $73.51 $83.01 $111.21 $70.90 0.0%1 0.0% 2013 4,611 7,116 1,517 13,244 89%1 11% $73.51 $83.01 $111.21 $70.90 0.0%1 0.0% 2012 4,611 7,060 1,520 13,191 88%1 12% $73.51 $83.01 $111.21 $70.90 0.0%1 0.0% (A): 5yr CAGR 1.4% 1.1% 1.6% 1.3% N/A 4.1% 3.8% 3.2% 4.2% N/A 10yr CAGR 1.1% 1.0% 0.9% 1.0% N/A 2.3% 2.1% 1.8% 2.4% N/A Water Utility Average Number of Accounts Typical Residential Average Monthly Bill-5000 Gallons of Use column Non- Excluding Including column column Annual Year Residential not used Residential Total Residential I PumpZone PumpZone not used not used Increase Non-Residential Charge Charge(PZC) Including (6) (2) Mix (7) (7) PZC 2022 12,754 772 13,526 94%16% $87.95 $94.80 9.0 2021 12,635 765 13,400 94%16% $80.69 $86.97 10.7 2020 12,505 748 13,253 94%16% $73.56 $78.58 3.3 2019 12,261 865 13,126 93%1 7% $71.44 $76.05 3.5 2018 12,317 709 13,026 95%1 5% $69.32 $73.51 3.4 2017 12,218 706 12,924 95%1 5% $67.30 $71.07 5.3 2016 12,121 706 12,827 94%16% $64.12 $67.47 5.8 2015 12,012 704 12,716 94%16% $60.78 $63.75 4.8 2014 11,915 699 12,614 94%16% $58.40 $60.84 3.0% 2013 11,809 706 12,515 94%16% $56.95 $59.04 0.0% 2012 11,753 706 12,459 94%16% $56.95 $59.04 0.0 (A): 5yr CAGR 0.9% 1.8% 0.9% N/A 5.5% 5.9% N/A 10yr CAGR 0.8% 0.9% 0.8% N/A 4.4% 4.8% N/A Source: Truckee Donner Public Utility District records Notes: (1) Two main residential rate categories;Primary(P)and Secondary(S);with mix currently 40%P and 60%S from 10 years ago 40%P and 60%S. Also see(6). (2) Non-Residential account type includes commerical businesses and govermental agencies. Commercial average monthly bills are not presented,as commerical accounts monthly bills vary widely by account based on meter size and usage. (3) Average for Primary and Secondary residential,at same KwH usage. Amounts for(3)and(4)include Public Benefit and Solar California mandates. (4) Average for Primary and Secondary residential,at 3 year average KwH usage for the account type P and S. Also see 2nd half of note(3). (5) Average annual rate increase for P I S based on(4)usage averages. (6) The average number of accounts is annual average for the year,the number of accounts each month varies. (7) Residential average includes Monthly Serice Fee,Usage Fee based on Volume,and Pump Zone charge based on elevation zone. Pump Zone 1 Page 186 charge is zero. Accounts are in 1 of 7 pump zones of Distict,based on elevation. The Including Pump Zone average is weighted average based on number of accounts per zone. (A) Compounded Annual Growth Rate(CAGR)metrics for 2022 compared to respective number of years(yr)prior Page 257 of 315 Truckee Donner Public Utility District (TDPUD) Electric and Water Utilities - FY 2022 Regional Average Monthly Residential Bill Comparison Electric-Typical Monthly Bill* Water-Typical Monthly Bill SDG&E* $220.23 PG&E* 10 $154.56 Olympic Valley PSD $118.77 SCE* ME $154.30 Tahoe City PU D $103.83 LADWP* $122.10 Pasadena* $111.84 Donner Summit PUD $98.60 SMUD* $108.74 Plumas-Sierra $103.04 North star CSD $97.40 TDPUD Secondary(2) $102.48 Liberty $100.47 TDPUD Inc Pump(5) $94.80 TDPUD Bien ded(3) $98.51 Modesto ID* f$82.53 96.60 Alpine Springs CWD $90.22 Redding 96.55 Lodi* 3.72 TDPUD Exc Pump(4) $87.95 Riverside* .19 TDPUD Pr imary(1) .18 Anaheim 10 San Francisco PUC $86.53 Azusa* 06 North Tahoe PUD $79.76 Imperial ID* Palo Alto Lompoc* Nevada Irrigation District $63.26 Turlock ID*Roseville* South Tahoe PUD $61.72 Merced I D* $80.91 Sacramento SWD $53.91 Santa Clara $66.47 $0 $50 $100 $150 $200 $250 $0 $20 $40 $60 $80 $100 $120 $140 TDPUD compiled this information from a review of each respective District's website for applicable ordinances/rates information.Monthly bills assume a typical customer consumption of 500 kWh per month in electricity and 5,000 gallons per month in water (1)Primary residence accounts 39% (4)Excluding Pump Zone charge (2)Second home residence accounts 61% (5)Including Pump Zone charge,the weighted average (3)Weighted average of(1)and(2) of the 7 pump zones. Note-Second homes average KwH usage is historically 54%of Primary homes KwH average usage Pump zone charges are based on water elevation zones of *Weighted average for utilities with Summer and Winter rates service territory. Page 87 Page 258 of 315 Truckee Donner Public Utility District Ten Largest Customers and Sales Mix Current Year and Nine Years Ago Electric Utility 2022 2013 Customer %of Total Customer %of Total Customer(1)(2) Revenue Rank Revenue Revenue Rank Revenue Tahoe Forest Hospital $ 1,190,176 1 4.0% $ 899,655 2 4.3% Tahoe Truckee Sanitation Agency 1,101,482 2 3.7% 942,723 1 4.5% Private Company,A 633,800 3 2.1% 0.0% Tahoe Truckee Unified School District 537,819 4 1.8% 375,970 3 1.8% Union Pacific Railroad 454,661 5 1.5% 0.0% Private Company, B 422,272 6 1.4% 278,134 5 1.3% Private Company, C 358,850 7 1.2% 246,696 6 1.2% Private Company, D 300,538 8 1.0% 286,875 4 1.4% Town of Truckee 256,397 9 0.9% 181,724 10 0.9% Truckee Donner Recreation and Park District 253,672 10 0.8% 0.0% Private Company, E 242,796 7 Private Company, F 199,590 8 Private Company, G 196,232 9 Total,Top 10 Customers $ 5,509,668 18.4% $ 3,850,396 18.4% Total Sales to Customers $ 30,015,195 100.0% $ 20,939,839 100.0% Residential $ 17,225,805 57.4% $ 11,941,730 57.0% Sales Mix Commercial $ 8,727,227 29.1% $ 5,864,411 28.0% Public Authorities $ 4,062,163 13.5% $ 3,133,698 15.0% Water Utility 2022 2013 Customer %of Total Customer %of Total Customer(1) Revenue Rank Revenue Revenue Rank Revenue Private Company, C $ 222,993 1 1.4% $ 108,875 2 1.1% Private Company, D 200,944 2 1.2% 137,142 1 1.4% Private Company, H 61,434 3 0.4% 49,304 4 0.5% Truckee Donner Recreaton and Park District 61,295 4 0.4% 61,308 3 0.6% Tahoe Forest Hospital 55,003 5 0.3% 41,412 6 0.4% Tahoe Truckee Unified School District 51,161 6 0.3% 44,272 5 0.4% Private Company, 1 45,647 7 0.3% 29,638 9 0.3% Private Company, J 40,331 8 0.2% 29,822 8 0.3% Town of Truckee 39,845 9 0.2% 26,189 10 0.3% Private Company, K 34,909 10 0.2% 0.0% Private Company, L 34,747 7 Total,Top 10 Customers $ 813,561 5.0% $ 562,710 5.7% Total Sales to Customers $ 16,257,163 100.0% $ 9,870,531 100.0% Residential Potable $ 14,361,246 88.3% $ 8,531,468 86.4% Sales Mix Non-Residential Potable $ 1,677,894 10.3% $ 1,184,313 12.0% Nonpotable $ 218,023 1.3% $ 154,750 1.6% (1)To preserve confidentiality, private company customer names are not disclosed. (2)Electric Utility table excludes internal customer,Water Utility,with Revenue of$1.3 million in 2022 and 1.2 million in 2013 The Electric Utility revenue from Water Utility is eliminated on a Consolidated Financial Statement basis. Source: Truckee Donner Public Utility District Customer Service Department Page 88 Page 259 of 315 Truckee Donner Public Utility District Debt Coverage Last 10 Years Dollars in Thousands except for Coverage Ratio Electric Utility A B A -B = C D CID Total Total Net Revenues Debt Year Revenues Expenses Available For Service Coverage (1) (2) Debt Service Requirement(3) Ratio 2022 33,473 29,439 4,034 558 7.22 2021 30,918 26,720 4,198 1,108 3.79 2020 30,409 23,010 7,399 1,058 6.99 2019 29,258 21,093 8,165 1,000 8.16 2018 27,782 20,237 7,545 1,429 5.28 2017 28,336 22,108 6,228 468 13.32 2016 25,628 20,223 5,405 1,000 5.40 2015 24,322 18,944 5,378 895 6.01 2014 23,611 19,495 4,116 863 4.77 2013 23,859 20,107 3,753 4,118 0.91 Water Utility A B A -B = C D CID Total Total Net Revenues Debt Year Revenues Expenses Available For Service Coverage (1) (2) Debt Service Requirement(3) Ratio 2022 17,985 10,137 7,849 1,305 6.01 2021 16,981 9,736 7,245 2,046 3.54 2020 15,107 9,599 5,508 2,024 2.72 2019 14,419 9,552 4,867 2,018 2.41 2018 13,769 8,662 5,107 2,016 2.53 2017 12,909 8,775 4,134 2,341 1.77 2016 12,908 8,171 4,737 2,389 1.98 2015 11,401 7,461 3,940 2,431 1.62 2014 11,328 7,437 3,891 2,517 1.55 2013 11,426 7,363 4,063 2,512 1.62 (1) Includes interest income, facilities fees, and connection fees; Water excludes Donner Lake Assessment District special tax (assessment)revenues (2) Excludes depreciation, interest and amortization expense (3) Includes principal and interest of bond (certficates of participation, and other types)debt, parity and subordinate; Water excludes Donner Lake Assessment District SRF loan debt; includes credit offset for interest on parity debt reserve funds; exlcudes refunding activities. Page 89 Page 260 of 315 Truckee Donner Public Utility District Total Long-Term Debt per Account and Ratios Last 10 Years as of year ended December31, 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Electric Utility Total Debt($000s) (1) $6,722 $552 $ 1,603 $2,604 $3,524 $4,803 $5,218 $5,662 $6,265 $6,808 Number of Accounts 14,602 14,416 14,176 13,960 13,818 13,708 13,568 13,389 13,320 13,244 Debt per Account $460 $38 $ 113 $ 187 $255 $350 $385 $423 $470 $514 Debt to Total Revenue 20% 2% 5% 9% 13% 17% 20% 23% 27% 29% Debt to Net Capital 11% 1% 3% 4% 7% ° ° ° ° Assets 10/° 11/° 12/° 14/° 16/° Water Utility Total Debt($000s) (2) $26,569 $ 11,022 $ 16,579 $ 18,846 $21,059 $23,217 $25,631 $27,857 $31,118 $33,208 Number of Accounts 13,526 13,400 13,253 13,126 13,026 12,924 12,827 12,716 12,614 12,515 Debt per Account $ 1,964 $823 $ 1,251 $ 1,436 $ 1,617 $ 1,796 $ 1,998 $2,191 $2,467 $2,653 Debt to Total Revenue(2) 141% 62% 104% 124% 145% 169% 187% 228% 257% 272% Debt to Net Capital 37% 15% 23% 25% 27% 31% 34% 37% 41% 43% Assets Grey's Crosssing CFD Total Debt($000s) (3) $26,419 $27,464 $28,409 $29,264 $30,163 $30,948 $31,558 $32,138 $32,607 $33,012 Number of Parcels (5) 426 407 407 408 413 413 415 415 416 416 Debt per Parcel $62,017 $67,479 $69,800 $71,724 $73,035 $74,935 $76,043 $77,440 $78,383 $79,356 Old Greenwood CFD Total Debt($000s) (4) $7,456 $7,940 $8,385 $8,794 $9,165 $9,503 $9,812 $ 10,091 $ 10,344 $ 11,610 Number of Parcels (5) 1,262 1,254 1,254 1,238 1,238 1,231 1,231 1,231 1,231 1,231 Debt per Parcel $5,908 $6,332 $6,687 $7,103 $7,403 $7,719 $7,970 $8,197 $8,403 $9,431 ($000s) Total Utility Debt $33,291 $ 11,574 $ 18,182 $21,449 $24,582 $28,021 $30,849 $33,520 $37,382 $40,016 Total CFD Debt $33,875 $35,404 $36,794 $38,057 $39,328 $40,451 $41,369 $42,228 $42,952 $44,622 Total Debt, Consolidated La 666 46 978 54 976 59 506 La3 110 LE 472 LZ2 218 LZ5 448 80 334 LM 338 (1)Electric Total Debt includes Pension Obligation Bonds, Installment Loan, and Certificates of Participation debt. (2)Water Total Debt includes Certificates of Participation debt, CA Dept. of Water Resources loan, Installment loans, and Donner Lake Assessment District (DLAD)related State Revolving Fund (SRF)loan. Total Revenue for this report's Water Debt to Total Revenue includes DLAD tax assessment proceeds which applies the DLAD's SRF loan debt service of$800,852 for each year presented. (3)Grey's Crossing Community Facilities District(CFD)Debt is Special Tax Bonds-Mello Roos. (4)Old Greenwood Community Facilities District(CFD)Debt is Special Tax Bonds-Mello Roos. (5)Number of parcels subject to CFD Special Tax Mello Roos Bonds varies by year due to full pre-payments and parcel splits, and represents special tax assessment parcels. Old Greenwood number of parcels for 2011-2014 has been estimated. Page 190 Page 261 of 315 Truckee Donner Public Utility District Demographic and Economic Information Last 11 Years Town of Truckee(1) Per Capita TTUSD Labor Personal Personal School Year Force Unemployment Population Income Income Enrollment (2) (2) (3) (4) (5) (6) 2022 9,420 3.6% 16,676 $59,141 $986,235,316 4,165 2021 9,270 4.0% 16,693 $51,955 $867,284,815 4,159 2020 9,190 3.2% 16,735 $46,295 $774,746,825 4,193 2019 9,860 1.3% 16,434 $46,280 $760,565,520 4,168 2018 10,370 2.6% 16,309 $45,706 $745,419,154 4,133 2017 10,490 3.0% 16,277 $43,898 $714,527,746 4,153 2016 10,110 3.9% 16,231 $42,439 $688,827,409 4,010 2015 10,700 5.3% 16,184 $40,414 $654,060,176 3,978 2014 10,010 6.4% 16,191 $37,117 $600,961,347 3,950 2013 10,040 7.9% 16,132 $37,058 $597,819,656 3,917 2012 10,060 9.6% 16,100 $35,891 $577,845,100 3,838 (A) : 5yr CAGR -2.1% 3.7% 0.5% 6.1% 6.7% 0.1% 10yr CAGR -0.7% -9.3% 0.4% 5.1% 5.5% 0.8% Sources and Legend: (1) The Town of Truckee boundaries comprise approximately 95% of the District's service territory. (2) California Employment Development Department (3) California Department of Finance Projections for Town of Truckee (4) United States Census Data adjusted for inflation and Town of Truckee (5) Personal Income calculated as Population (3) multiplied by Per Capital Income(4) (6) California Ed-Data Partnership; Tahoe-Truckee Unified School District(TTUSD), Census Day Enrollment for school district's fiscal year (A) Compounded Annual Growth Rate(CAGR) metrics for 2022 compared to respective number of years(yr) prior Page 191 Page 262 of 315 Truckee Donner Public Utility District Principal Employers Prior Year and Two Years Ago 2021** 2019 Percent Percent Number of of Total Number of of Total Employer Name Employees Employment Employees Employment Tahoe Forest Hospital District 1,002 10.8% 577 5.9% Tahoe-Truckee Unified School District 309 3.3% 238 2.4% Safeway 154 1.7% 150 1.5% Tahoe Donner Association 144 1.6% Northstar Lodge (Welk Resorts) 180 1.8% Town of Truckee 130 1.4% 128 1.3% Paradigm8/Tahoe Mountain Club 125 1.3% Mountain Hardware &Truckee Rents 91 1.0% New Moon Natural Foods 82 0.9% Truckee Donner Public Utility District 74 0.8% 70 0.7% Mark Tanner Construction 65 0.7% Truckee-Donner Recreation & Park District 51 0.6% 31 0.3% Save Mart 42 0.4% Bar of America 22 0.2% Top 10 Employers, total 2,162 23.3% 1,503 15.2% Labor Force 9,270 100.0% 9,860 100.0% Sources and Comments: Source of Top 10 employers is Town of Truckee's 2021 and 2019 Comprehensive Annual Financial Reports, and 2019 was the first year information provided and is based on direct inquiries to employers. Other than above from Town of Truckee, specific employer information is not publicly available to the District. Labor Force is from prior page. **2022 data not available Page 192 Page 263 of 315 Truckee Donner Public Utility District Operating Information Last 11 Years Electric Utility Water Utility Water IRS Number of KwH Capital Number of Production Capital Year W-2s FTEs Accounts Billed Assets, Net Accounts in Millions Assets, Net (1) (2) (Average) (000s) ($000s) (3) (Average) of Gallons ($000s) (3) 2022 89 77 14,602 167,155 $60,988 13,526 1,556 $75,982 2021 90 70 14,416 163,176 $61,493 13,400 1,715 $71,390 2020 82 68 14,176 159,134 $59,493 13,253 1,713 $72,539 2019 89 73 13,960 156,714 $58,756 13,126 1,503 $75,056 2018 86 72 13,818 151,944 $53,535 13,026 1,579 $76,638 2017 77 74 13,708 156,562 $48,258 12,924 1,487 $74,857 2016 78 72 13,568 151,527 $47,660 12,827 1,460 $75,942 2015 83 73 13,389 140,819 $47,079 12,716 1,381 $75,338 2014 78 71 13,320 142,584 $43,384 12,614 1,682 $75,938 2013 75 69 13,244 147,389 $42,536 12,515 1,846 $77,378 2012 78 66 13,191 146,014 $41,434 12,459 1,857 $78,317 (A) : 5yr CAGR 2.9% 0.8% 1.3% 1.3% 4.8% 0.9% 0.9% 0.3% 10yr CAGR 1.3% 1.5% 1.0% 1.4% 3.9% 0.8% -1.8% -0.3% Sources and Legend: (1) Number of Internal Revenue Service payroll W-2 forms issued for calendar/tax year (2) Full Time Equivalents (FTEs)calculated as payroll paid hours (work regular and overtime, vacation, sick, other)for year divided by 2080 (3) Capital Assets, Net as of year end is comprised of Gross Fixed Assets, less Accumulated Depreciation, plus Construction Work in Progress, presented as dollars in thousands($000s) (A) Compounded Annual Growth Rate(CAGR) metrics for 2022 compared to respective number of years(yr)prior Page 193 Page 264 of 315 Truckee Donner Public Utility District Capital Assets by Function Last 10 Years Balance as of December 31, 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Plant Balances Electric distribution $ 80,851,918 $ 76,021,243 $ 71,894,379 $ 67,692,719 $ 64,204,691 $ 60,416,921 $ 58,345,690 $ 54,721,615 $ 51,524,863 $ 49,307,043 Water distribution 132,306,300 124,052,449 121,483,082 120,131,130 116,378,593 112,596,747 108,860,825 107,005,578 103,049,122 101,559,249 General plant 20,230,330 19,827,303 19,316,644 18,450,143 16,513,295 15,782,620 15,062,278 13,887,881 12,816,635 12,613,090 Total 233,388,548 219,900,995 212,694,105 206,273,992 197,096,579 188,796,288 182,268,793 175,615,074 167,390,620 163,479,382 Accumulated Depreciation Electric distribution (25,615,227) (23,396,600) (21,385,441) (19,454,296) (19,488,505) (18,789,115) (17,045,715) (15,975,929) (14,842,504) (13,605,356) Water distribution (60,888,418) (56,654,194) (52,339,068) (48,269,854) (44,232,073) (40,260,086) (37,643,873) (34,248,569) (32,462,147) (29,301,292) General plant (13,519,645) (12,700,105) (11,522,788) (10,851,669) (10,372,265) (9,514,034) (8,683,151) (7,817,950) (7,171,096) (7,108,863) Total (100,023,290) (92,750,899) (85,247,297) (78,575,819) (74,092,843) (68,563,235) (63,372,739) (58,042,448) (54,475,747) (50,015,511) Plant Sub-Total Electric distribution 55,236,691 52,624,643 50,508,938 48,238,423 44,716,186 41,627,806 41,299,975 38,745,686 36,682,359 35,701,687 Water distribution 71,417,882 67,398,255 69,144,014 71,861,276 72,146,520 72,336,661 71,216,952 72,757,009 70,586,975 72,257,957 General plant 6,710,685 7,127,198 7,793,856 7,598,474 6,141,030 6,268,586 6,379,127 6,069,931 5,645,539 5,504,227 Total 133,365,258 127,150,096 127,446,808 127,698,173 123,003,736 120,233,053 118,896,054 117,572,626 112,914,873 113,463,871 Construction work in progress 3,604,888 5,732,900 4,584,711 6,114,079 7,169,814 2,881,021 4,706,276 4,844,042 6,407,589 6,449,688 TOTALS $ 136,970,146 $ 132,882,996 $ 132,031,519 $ 133,812,252 $ 130,173,550 $123,114,074 $ 123,602,330 $ 122,416,668 $ 119,322,462 $ 119,913,559 Change to Prior Year 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Change in Plant Electric distribution $ 4,830,675 $ 4,126,864 $ 7,689,688 $ 7,275,798 $ 3,787,770 $ 2,071,231 $ 3,624,075 $ 3,196,752 $ 2,217,820 $ 1,022,403 Water distribution 8,253,851 2,569,367 5,104,489 $ 7,534,383 3,781,846 3,735,922 1,855,247 3,956,456 1,489,873 548,453 General plant 403,027 510,659 2,803,349 $ 2,667,523 730,675 720,342 1,174,397 1,071,246 203,545 650,384 Total 13,487,553 7,206,890 15,597,526 $ 17,477,704 8,300,291 6,527,495 6,653,719 8,224,454 3,911,238 2,221,240 Change in Accumulated Depreciation Electric distribution (2,218,627) (2,011,159) (1,896,936) (665,181) (699,390) (1,743,400) (1,069,786) (1,133,425) (1,237,148) (707,901) Water distribution (4,234,224) (4,315,126) (8,106,995) (8,009,768) (3,971,987) (2,616,213) (3,395,304) (1,786,422) (3,160,855) (3,041,514) General plant (819,540) (1,177,317) (1,150,523) (1,337,635) (858,231) (830,883) (865,201) (646,854) (62,233) (164,092) Total (7,272,391) (7,503,602) (11,154,454) (10,012,584) (5,529,608) (5,190,496) (5,330,291) (3,566,701) (4,460,236) (3,913,507) Change in Plant Sub-Total Electric distribution 2,612,048 2,115,705 5,792,752 6,610,617 3,088,380 327,831 2,554,289 2,063,327 980,672 314,502 Water distribution 4,019,627 (1,745,759) (3,002,506) (475,385) (190,141) 1,119,709 (1,540,057) 2,170,034 (1,670,982) (2,493,061) General plant (416,513) (666,658) 1,652,826 1,329,888 (127,556) (110,541) 309,196 424,392 141,312 486,292 Total 6,215,162 (296,712) 4,443,072 7,465,120 2,770,683 1,336,999 1,323,428 4,657,753 (548,998) (1,692,267) Change in Construction work in progress (2,128,012) 1,148,189 (2,585,103) 3,233,058 4,288,793 (1,825,255) (137,766) (1,563,547) (42,099) 1,855,222 Change in Total Capital Assets $ 4,087,150 $ 851,477 $ 1,857,969 $ 10,698,178 $ 7,059,475 $ (488,256) $ 1,185,662 $ 3,094,206 $ (591,097) $ 162,955 Page 194 Page 265 of 315 END OF REPORT THANK YOU FOR READING TRUCKEE DONNER Public Utility District Truckee Donner Public Utility District 11570 Donner Pass Road Truckee, CA 96161 Phone (530) 587-3896 Website TDPUD.ORG Winter 2022 Snow Removal j, r r Page 195 Page 266 of 315 000" TRUCKEE DONNER Public Utility 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