HomeMy WebLinkAbout5 Annual Reports Financial Statements Agenda Item # 5
Truckee Donner Public Utility
Financing Corporation
ACTION
To: Board of Directors
From: Bob Mescher
Date: December 15, 2010
Subject: Consideration of Accepting the Annual Reports and Financial
Statements
1. WHY THIS MATTER IS BEFORE THE BOARD
The Truckee Donner Public Utility Financing Corporation is required to hold an annual
meeting. Review of Annual Reports and Annual Financial Statements are solely within
the purview of the Financing Corporation Board.
2. HISTORY
The Financing Corporation Board reviews and approves the annual reports. Also
provided is a copy of the most recent audited financial statements of the Truckee
Donner Public Utility District.
The annual reports are prepared according to the requirements of each bond's
continuing disclosure statement. They include the annual reports for the 2003 A/B
Certificates of Participation and the 2006 Certificates of Participation.
3. NEW INFORMATION
Attached are the following annual reports:
• Certificates of Participation Series 2003A and 2003B reports as of December
311 2009 (Attachment 1)
• Certificates of Participation (Water System Improvements) Series 2006 as of
December 31, 2009 (Attachment 2)
• Truckee Donner Public Utility District annual audited financial statements
(Attachment 3)
4. FISCAL IMPACT
There is no fiscal impact associated with this action.
5. RECOMMENDATION
Approve the annual reports and financial statements.
. r
Mary Cha an Michael D. Holley
Treasurer Secretary
Attachment 1
ATTACHMENT 1
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
REFUNDING CERTIFICATES OF PARTICIPATION SERIERS 2003A AND 2003B
ANNUAL REPORT 12/31/2009
I
I
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
History of Electric Service Charges
March March March January January January
2005 2006 2007 2008 2009 2010
Domestic Electric Rates: no change no change
Permanent Residents
Customer Charge: per month $5.84 $6.13 $6.13 $6.56 $6.76 $6.76
Energy Charge per kilowatt-hour $0.11400 $0.12000 $0.12000 $0.12800 $0.13200 $0.13200
Domestic Electric Rates:
Non-Permanent Residents
Customer Charge: per month $5.84 $6.13 $6.13 $6.56 $6.76 $6.76
Energy Charge per kilowatt-hour $0.13000 $0.13700 $0.13700 $0.14700 $0.15100 $0.15100
Small Commercial Rates:
Commercial Customers with monthly
demand less than 50 kilowatts
Customer Charge: per month $11.32 $11.89 $11.89 $12.72 $13.10 $13.10
Energy Charge per kilowatt-hour $0.13700 $0.14400 $0.14400 $0.15400 $0.15900 $0.15900
Medium Commercial Rates:
Commercial Customers with monthly
demand greater than 50kW and less than
200kW
Customer Charge: per month $113.04 $118.69 $118.69 $127.00 $130.81 $130.81
Energy Charge per kilowatt-hour $0.08110 $0.08520 $0.08520 $0.09100 $0.09400 $0.09400
Demand Charge per kilowatt of demand $11.11 $11.67 $11.67 $12.49 $12.86 $12.86
Large Commercial Rates:
Commercial Customers with monthly
demand greater than 200kW
Customer Charge: per month $495.83 $520.62 $520.62 $557.06 $573.78 $573.78
Energy Charge per kilowatt-hour $0.08350 $0.08770 $0.08770 $0.09400 $0.09700 $0.09700
Demand Charge per kilowatt of demand $10.62 $11.15 $11.15 $11.93 $12.29 $12.29
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
Electric System Connection Charges and Facilities Fees
For 200 amp Service as of April 7, 2008
Unchanged as of May 31, 2010
Connection Facilities
Size and Type of Service Charge Fees
Three Wire Overhead
-Temporary Actual Cost
- Permanent connection to structure $1,248 $1,298
-Temporary connection to pole and transfer to structure $1,534
Three Wire Underground (overhead transformer)
i - Permanent connection to structure $1,248 $1,298
-Temporary connection to pole and transfer to structure $1,534
i
i Three Wire Underground (padmount transformer)
- Permanent connection to structure $1,248 $1,298
-Temporary connection to pole and transfer to structure $1,534
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
Electric System Customers, Sales, Revenues and Demand
2005 2006 2007 2008 2009
Number of Customers:
Residential 11,082 11,342 11,483 11,627 11,621
Commercial and Other ' 1,602 1,696 1,514 1,528 1,533
Total Customers 12,684 13,038 12,997 13,155 13,154
Kilowatt-Hour(kWh) Sales:
Residential 70,072,056 72,400,532 74,009,589 75,203,263 75,927,237
Commercial and Other 66,266,816 71,868,598 73,081,212 73,101,332 70,948,129
Total kWh Sales 136,338,872 144,269,130 147,090,801 148,304,595 146,875,366
Revenues from Sale of Energy:
Residential $9,171,600 $9,914,315 $10,264,846 $11,183,675 $11,644,885
Commercial and Other 8,369,493 9,352,463 9,655,434 10,413,720 10,511,007
Total Revenues from Sale of Energy $17,541,093 $19,266,778 $19,920,280 $21,597,395 $22,155,892
Peak Demand (kW) 32,179 35,928 36,047 35,099 35,934
1) Removed inactive accounts from the 2007 customer counts.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
Electric System Largest Electric Customers -2009
12 Months
Customer Type of Business KWh Sold Electrical Billings
District Water Department(1)(2) Water Utility 10,084,194 $1,485,825
Tahoe Truckee Sanitation Agency(2) Sewer Plant 7,858,124 946,686
Tahoe Forest Hospital (2) Hospital 5,379,863 693,136
Tahoe Truckee Unified School District(2) Education 2,842,812 419,403
Teichert&Son Private/Commercial 2,094,300 382,817
(1) Represents pumping charges incurred by District water system
(2) Denotes customers with multiple meters and service locations. The kWh sold and electrical billings are a sum of all
customer's meter locations
i
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
Electric System-Summary of Historical Net Revenues and Selected Balance S heet Information
2005 2006 2007 2008 2009
Revenues(l)
Sales to Customers $16,317,909 $18,287,011 $18,396,992 $20,104,157 $20,552,874
Interdivisional Sales(2) 1,329,356 1,369,321 1,489,756 1,500,671 1,478,459
Standby Charges 22,540 23,930 23,310 20,860 26,990
Facilities Fees(3) 481,723 454,891 513,901 287,370 110,459
Other(4) 426,454 462,140 1,190,186 1,225,541 1,201,106
Income from Investments 266,750 615,988 734,430 358,637 71,971
Total Revenues $18,844,732 $21,213,281 $22,348,575 $23,497,236 $23,441,859
Rate Stabilization Fund Transfer(5) 0 0 0 0 0
Total Adjusted Revenues $18,844,732 $21,213,281 $22,348,575 $23,497,236 $23,441,859
Operations and Maintenance Costs(6)
Power Purchases $8,279,662 $8,328,528 $9,403,712 $10,627,405 $10,087,650
Operations and Maintenance 2,231,024 2,636,335 3,156,772 3,260,176 3,477,688
Administrative and General 1,937,050 2,038,521 2,136,294 2,626,971 2,781,746
Consumer Services(7) 548,978 552,257 716,745 1,256,241 1,243,074
Interest Expense(8) 56,674 51,013 36,924 24,338 22,150
Total Operation and Maintenance Costs $13,053,388 $13,606,654 $15,450,447 $17,795,132 $17,612,308
Adjusted Net Revenues/Funds Available for
Debt Service $5,791,344 $7,606,626 $6,898,129 $5,702,103 -$5,829,552
Debt Service(9) 3,443,550 3,432,013 3,425,875 3,418,650 3,415,413
Debt Service Coverage(10) 1.68 2.22 2.01 1.67 1.71
i
Selected Balance S heet Information
Fund Balances(December 31):
General Fund $6,615,006 $7,852,077 $7,073,595 $6,374,547 $7,362,194
Rate Stabilization Fund Balance 452,512 753,020 1,148,106 1,550,631 1,935,322
Total Fund Balances $7,067,518 $8,605,097 $8,221,701 $7,925,178 $9,297,516
Net Plant in Service $18,099,649 $22,395,013 $27,371,225 $33,444,016 $35,300,034
Construction Work in Progress 2,714,371 5,760,806 5,650,055 3,309,758 3,360,837
Net Electric Utility Plant $20,814,020 $28,155,819 $33,021,280 $36,753,774 $38,660,871
(1) Excludes Connection Charges. See"Rates and Charges"above.
(2) Represents pumping charges to District water system and interdepartmental rent charged to the water department for use of the District
Administrative Building which was financed by the Electric System.
(3) Facilities Fees are charged to appl icants for new service to cover the costs of infrastructure needed to m eet the additional system demand.
See"Rates and Charges"above.
(4) Represents service transfer charges,late payment fees,building room rentals,WAPPA credit and miscellaneous receipts.
(5) The Rate Stabilization Fund is used to mitigate rate increases. Pursuant to the Installment Purchase Agreement,Adjusted Revenues for
coverage purposes include the amounts the District has authorized to be deposited in the Revenue Fund from the Rate Stabilization Fund
pay Operation and Maintenance Costs and/or Debt Service. See"SECURITY AND SOURCES OF PAYMENT FOR THE 2003
CERTIFICATES--Defined Terms"and"--Rate Covenant"herein.
(6) Excludes depreciation and amortization.
(7) Includes all customer service,billing activity and customer information expenses.
(8) Excludes interest on the 2003A/B Certificates which are shown in the debt service below.
(9) Represents Debt Service on the District's 2003 A/B Electric Certificates of Participation for the Purchased Power Contract buy-out with IDACORP
Energy L.P.
(10) Adjusted Net Revenues divided by Debt Service.
Attachment 2
ATTACHMENT 2
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
CERTIFICATES OF PARTICIPATION
(WATER SYSTEM IMPROVEMENT PROJECTS)
SERIES 2006
ANNUAL REPORT 12/31/2009
CONTINUING DISCLOSURE CERTIFICATE: 4. Content of Annual Reports
(a)The audited financial statements were electronically forwarded to
Bank of New York on 05/18/2010.
(b)The principal amount of the Certificates outstanding was $24,435,000
as of December 31, 2009.
(c) The balance in the Reserve Fund as of December 31, 2009 was
$204,514.
The Reserve Requirement from the Installment Purchase Agreement
is: "The term "Reserve Requirement" means initially, $1,901,088.76,
and thereafter the lesser of(i) $1,901,088.76 or(ii)the maximum
principal of and interest with respect to the Certificates due in the then
current or any future Fiscal Year." The maximum payment due in any
year is $1,901,088.76.
(d) Updated tables from "THE WATER SYSTEM OF THE DISTRICT"
IN THE Official Statement are attached:
(i) "TRUCKEE DONNER PUBLIC UTILITY DISTRICT -
Historic Water Production and Accounts" on page 19 of the
Official Statement.
(ii) "TRUCKEE DONNER PUBLIC UTILITY DISTRICT -
Historic Sales Revenue" on page 19 of the Official
Statement.
(iii) "TRUCKEE DONNER PUBLIC UTILITY DISTRICT-
Largest Customers" on page 20 of the Official Statement.
(iv) "TRUCKEE DONNER PUBLIC UTILITY DISTRICT -
Historic Operating Results of Debt Service Coverage" on
page 26 of the Official Statement.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
Historic Water Production and Accounts
Total
Production
(Million %Increase/ Commercial %Increase/ Residential %Increase/
Year Gallons) (Decrease) Accounts (Decrease) Accounts (Decrease)
2001 1,736 481 8,130
2002 2,198 26.61% 548 13.93% 10,268 26.30%
2003 2,208 0.45% 563 2.74% 10,491 2.17%
2004 2,424 9.78% 582 3.37% 10,739 2.36%
2005 2,206 -8.99% 605 3.95% 11,146 3.79%
2006 2,371 7.48% 646 6.78% 11,436 2.60%
2007 25433 2.61% 641 -0.77% 1101 3.19%
2008 2,304 -5.30% 656 2.34% 11,843 0.36%
2009 .25056 -10.74% 670 2.13% 11,900 0.48%
TRUCKEE DONNER PUBLIC UTILTIY DISTRICT
Historic Water Sales Revenues
%Increase/ %Increase/
Year Residential (Decrease) Commercial (Decrease)
2001 $3,944,222 $476,195
2002 5,013,242 27.10% 647,822 36.04%
2003 5,768,092 15.06% 678,423 4.72%
2004 6,2549756 8.44% 8255109 21.62%
2005 60%311 5.67% 844,812 2.39%
2006 7,160,485 8.34% 991,941 17.42%
2007 7,875,829 9.99% 15165,511 17.50%
2008 8,45%823 7.42% 1,179,157 1.17%
2009 8,5771396 1.39% 1,137,447 -3.54%
TRUCKEE DONNER PUBLIC UTILTIY DISTRICT
Largest Water Customers-Fiscal Year 2009
Customer Water Usage (1) Annual Payments
Tahoe Mountain Club Company 9851635158 $605946
Coyote Moon Golf course 781596,240 49,125
Tahoe Club Company LLC 655731,932 515751
Tahoe Donner Association 4515915475 143,774
Truckee Tahoe Unified School District 21,475,032 41,196
Truckee Donner Recreation 16,977,329 315849
Tahoe Forest Hospital 1316775927 34,128
Bob Gales/Coachland(mobile home park) 12,56000 27,653
Donner Creek Mobile Home Park 10,9475520 165455
Donner Memorial State Park 7,70%000 12,484
TOP TEN TOTAL 371,429,613 $469,360
TOTAL SYSTEM 21056,474,833 $9,748,317
18.06% 4.81%
�1� Gallons
k
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
Historic Water Operating Results&Debt Service Coverage
Fiscal Year Ending December 31
Revenues 2005 2006 2007 2008 2009
Sales to Customers $7,563,132 $8,247,123 $9,042,900 $9,658,482 $9,748,317
Standby Fees 183,119 63,040 154,320 162,400 171,200
Investment Income(1) 258,352 451,305 606,805 372,799 85,231
Facilites Fees(2) 1,308,200 1,133,360 1,309,385 560,485 283,408
Connection Fees(2)(3) 405,987 314,528 369,978 266,474 143,453
Meter Surcharge 0 0 0 0 799,434
Other(4) 417,541 469,642 573,659 611,206 654,790
Total Revenues $10,136,331 $10,678,998 $12,057,046 $11,631,847 $11,885,834
Operating&Maintenance Expenses
Operations and Maintenance $4,229,691 $4,289,245 $4,741,889 $4,369,205 $4,483,118
Administration and General 1,525,485 1,558,078 1,520,582 1,581,950 1,706,210
Customer Services 297,517 322,608 389,410 428,740 487,419
Total Operations&Maintenance Expenses $6,052,693 $6,169,931 $6,651,881 $6,379,895 $6,676,747
Net Revenues $4,083,638 $4,509,067 $5,405,165 $5,251,952 $5,209,087
Parity Debt Service(5)
2006 Installment Purchase Agreement $0 $173,904 $1,898,460 $1,896,089 $1,896,289
1996 Installment Purchase Agreement 800,402 677,440 0 0 0
DWR Proposition 55 Loan 306,422 306,422 306,481 306,481 $306,481
Interest on Parity Debt Service Reserve Funds (32,362) (56,547) (85,081) (80,289) (70,714)
Total Parity Debt Service $1,074,462 $1,101,219 $2,119,860 $2,122,281 $2,132,056
Parity Debt Service Coverage 3.80 4.09 2.55 2.47 2.44
Net Revenues Remaining for Subordinate Debt $3,009,176 $3,407,848 $3,285,305 $3,129,671 $3,077,031
Service
Subordinate Debt Service(5)(6) $435,280 $409,044 $400,909 $386,516 $355,737
Parity and Subordinate Debt Service Coverage(7) 2.70 2.99 2.14 2.09 2.09
Balance Available for Capital Projects or Other $2,573,896 $2,998,804 $2,884,396 $2,743,155 $2,721,294
Purposes
NOTES
(1) Excludes interest component of Donner Lake Assessment and interest on parity debt service reserve funds.
(2) Appears as contributed capital in the Financial Statement of the District.
(3) Historically,connection fees were recognized in the year in which the connection to the Water System was
effected rather than the year in which the connection fee was allocated.
(4) Includes interdepartmental sales.
(5) Debt service presented on an accrual basis.
(6) Represents payments on Capital Leases. The DWR Loan,which is secured by,and has historically been paid
entirely from,the Donner Lake Assessments,is excluded form subordinate debt service.
(7) Subordinate Debt Service,Parity and Subordinate Debt Service Coverage,and Balance Available for Capital
Projects have been amended for 2006.
Attachment 3
ATTACHMENT 3
TRUCKEE DONNER
PUBLIC UTILITY DISTRICT
FINANCIAL STATEMENTS
Including Independent Auditors' Report
Years Ended December 31, 2009 and 2008
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
FINANCIAL STATEMENTS
December 31, 2009 and 2008
TABLE OF CONTENTS
IndependentAuditors' Report........................................................................................................................ 1
Management's Discussion and Analysis...................................................................................................... 2
FinancialStatements.................................................................................................................................... 8
ConsolidatedBalance Sheets.................................................................................................................. 9
Consolidated Statements of Revenue, Expenses, and Changes in Net Assets.................................... 12
Consolidated Statements of Cash Flows............................................................................................... 13
Notesto Financial Statements..................................................................................................................... 15
SupplementalInformation...........................................................................................................................44
ConsolidatingBalance Sheets...............................................................................................................45
Consolidating Statement of Revenues, Expenses, and Changes in Net Assets...................................48
Consolidating Statements of Cash Flows..................................................................................... ........49
BAKER
I ,,. Y
Baiker'fil.ly i"i.rchow.l ouse,LLP
TLn Terrace CC,PO Box 1398
Madison.`VI 5 3i'07-�398
tel 608 249 6622
fax 608 249 8?32
bakertilly.com
INDEPENDENT AUDITORS'REPORT
The Board of Directors
Truckee Donner Public Utility District
Truckee, California
We have audited the accompanying balance sheet of the Truckee Donner Public Utility District as of December
31, 2009 and 2008, and the related statements of revenues, expenses, and changes in net assets and cash
flows for the year then ended, as noted in the table of contents. These financial statements are the
responsibility of the Truckee Donner Public Utility District's management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in the United States of
America. Those standards require that we plan and perform the audits to obtain reasonable assurance about
whether the financial statements are free of material misstatement.An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements.An audit also includes
assessing the accounting principles used and significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial
position of the Truckee Donner Public Utility District at December 31, 2009 and 2008, and the results of its
operations and its cash flows for the years then ended in conformity with accounting principles generally
accepted in the United States of America.
The management's discussion and analysis and schedule of funding progress (included in note 9)are not a
required part of the basic financial statements, but are supplementary information required by accounting
principles generally accepted in the United States of America.We have applied certain limited procedures,
which consisted principally of inquiries of management regarding the methods of measurement and
presentation of the required supplementary information. However,we did not audit the information and express
no opinion on it.
Our audits were conducted for the purpose of forming an opinion on the financial statements taken as a whole.
The consolidating statements as identified in the table of contents are presented for purposes of additional
analysis and are not a required part of the financial statements. The consolidating statements have been
subjected to the auditing procedures applied in the audit of the financial statements and, in our opinion, are
fairly stated, in all material respects, in relation to the financial statements taken as a whole.
1
Madison, Wisconsin
May 5, 2010
Page 1
BAKER T11,LY
INTERNATIONAL
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2009 and 2008
MANAGEMENT'S DISCUSSION AND ANALYSIS
As financial management of the Truckee Donner Public Utility District, we offer readers of these financial
statements this narrative overview and analysis of the financial activities of the District for the years
ended December 31, 2009 and 2008. This discussion and analysis is designed to assist the reader in
focusing on the significant financial issues, provide an overview of the District's financial activity and
identify changes in the District's financial position.
We encourage readers to consider the information presented here in conjunction with that presented
within the basic financial statements. The reader should take time to read and evaluate all sections of this
report, including the footnotes and other supplementary information that is provided, in addition to this
management discussion and analysis.
FINANCIAL HIGHLIGHTS
The District's net capital assets increased $10.3 million (10%) from $108.0 million at December 31, 2008
to $118.3 million at December 31, 2009, primarily due to $3 million of electrical underground conduit and
devices, and $5 million of water transmission and distribution lines and $2 million in water meters and
automated meter reading devices (AMR's). The AMR's are being installed to enable volumetric billing in
compliance with California Assembly Bill 2572, instead of flat-rate billing.
The District's total net assets increased by $12.9 million (25%) from $50.9 million at December 31, 2008
to $63.8 million at December 31, 2009. The increase was primarily due to an increase of$10 million in
capital assets and$5 million in unrestricted assets, less a decrease of$2 million in restricted assets.
Operating revenues increased $1.3 million (4%)from$31.5 million for the year ended December 31, 2008
to $32.8 million for the year ended December 31, 2009, primarily due to a 3% electric rate increase
beginning January 2009 and a water meter surcharge beginning January 2009.
Operating expenses of the District increased by$0.3 million (1%) from $26.6 million during 2008 to$26.9
million during 2009, due primarily to increased public benefit and conservation programs and a labor shift
from capital projects to operations and maintenance, that were partially offset by lower purchased power
costs.
Non-operating revenues decreased $1.7 million from 2008, primarily from decreased investment rates.
Non-operating expenses decreased $0.2 million primarily due to interest on lower debt balances. No new
debt was issued in 2008 or 2009.
OVERVIEW OF THE FINANCIAL STATEMENTS
This report includes Management's Discussion and Analysis, the Independent Auditors' Report, the Basic
Financial Statements, (which includes the notes to the financial statements), and Supplementary
I nformation.
See accompanying auditors' report.
Page 2
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2009 and 2008
REQUIRED FINANCIAL STATEMENTS
The financial statements of the District are designed to provide readers with a broad overview of the
District's finances similar to a private-sector business. They have been prepared using the accrual basis
of accounting in accordance with accounting principles generally accepted in the United States of
America (GAAP). Under this basis of accounting, revenues are recognized in the period in which they are
earned and expenses are recognized in the period in which they are incurred, regardless of the timing of
related cash flows. These statements offer short- and long-term financial information about the District's
activities.
The reporting entity consists of the primary government, which has two departments (electric operations
and water operations), and the blended component units. Further details about the component units are
provided in note 1(A).
The Balance Sheet presents information on all of the District's assets and liabilities, and provides
information about the nature and amounts of investments in resources (assets) and the obligations to
District creditors (liabilities). It also provides the basis for computing rate of return, evaluating the capital
structure of the District and assessing the liquidity and financial flexibility of the District.
All of the current year's revenues and expenses are reported in the Statement of Revenues, Expenses,
and Changes in Net Assets. This statement provides a measurement of the District's operations over
the past year and can be used to determine whether the District has successfully recovered all its costs
through its rates and other charges.
The Statement of Cash Flows provides relevant information about the District's cash receipts and cash
payments during the reporting period. This statement reports cash receipts and cash payments resulting
from operating, non-capital financing, capital and related financing and investing activities. When used
with related disclosures and information in the other financial statements, the statement of cash flows
should provide insight into(a) the District's ability to generate future net cash flows, (b)the District's ability
to meet its obligations as they come due, (c)the District's needs for external financing, (d)the reasons for
differences between operating income and associated cash receipts and payments and (e) the effects on
the District's financial position of both its cash and its non-cash investing, capital and financing
transactions during the period. The changes in cash balances are an important indicator of the District's
liquidity and financial condition.
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.
See accompanying auditors' report.
Page 3
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2009 and 2008
DISTRICT HIGHLIGHTS
The condensed financial statements at December 31, 2009, 2008, and 2007 are presented below.
CONDENSED BALANCE SHEETS
Increase
(Decrease)
ASSETS 2009 2008 2007 2009-2008
Current assets $ 30,304,226 $ 30,887,344 $ 32,781,065 $ (583,118)
Non-current assets:
Capital assets,net 118,270,925 107,980,140 96,185,152 10,290,785
Restricted assets 14,047,936 16,653,120 17,722,779 (2,605,184)
Other long-term assets 10,321,541 11,102,644 11,826,457 (781,103)
TOTAL ASSETS $172,944,628 $166,623,248 $158,515,453 $ 6,321,380
LIABILITIES AND NET ASSETS
Current liabilities $ 10,907,411 $ 10,339,890 $ 8,977,267 $ 567,521
Non-current Liabilities
Long-term debt, net of current
portion 93,996,886 99,033,677 103,823,708 (5,036,791)
Unearned revenues 4,216,188 6,300,993 11,080,054 (2,084,805)
Total Liabilities 109,120,485 115,674,560 123,881,029 (6,554,075)
Net Assets
Invested in capital assets, net
of related debt 37,247,841 27,386,977 16,526,277 9,860,864
Restricted for debt service 16,061,200 18,306,875 19,318,592 (2,245,675)
Unrestricted 10,515,102 5,254,836 (1,210,445) 5,260,266
Total Net Assets 63,824,143 50,948,688 34,634,424 12,875,455
TOTAL LIABILITIES
AND NET ASSETS $172,944,628 $166,623,248 $158,515,453 $ 6,321,380
In 2009, the District's net capital assets increased $10.3 million, primarily due to $3 million of electrical
underground conduit and devices, and $5 million of water transmission and distribution lines and $2
million in water meters and automated meter reading devices (AMR's). Non-current restricted assets
decreased $2.6 million, primarily due to decreased facilities fees. The District's total net assets increased
by$12.9 million, primarily due to an increase of$10 million in capital assets and $5 million in unrestricted
assets, less a decrease of$2 million in restricted assets.
Net assets invested in capital assets, net of related debt, consist of capital assets, net of accumulated
depreciation, reduced by the amount of outstanding indebtedness attributable to the acquisition,
construction or improvement of those assets. When there are significant unspent bond proceeds, the
portion of related debt is not to be included in the calculation of this item. Instead, that portion of the debt
is included in the net assets restricted for capital projects component as an offset to the related unspent
bond proceeds.
Net assets restricted for debt service represents amounts restricted for payments related to outstanding
revenue bonds.
See accompanying auditors' report.
Page 4
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2009 and 2008
The District had income before capital contributions of$4.2 million, $4.7 million, and $4.9 million for the
years ended December 31, 2009, 2008 and 2007, respectively. Changes in the District's net assets can
be determined by reviewing the following Condensed Revenues, Expenses, and Changes in Net Assets
for the years ended December 31, 2009, 2008, and 2007.
CONDENSED REVENUES, EXPENSES,AND CHANGES IN NET ASSETS
Increase
(Decrease)
2009 2008 2007 2009-2008
Sales to consumers $ 30,301,191 $ 29,762,640 $ 27,439,892 $ 538,551
Other operating revenues 2,503,380 1,744,700 1,676,574 758,680
Total Operating Revenues 32,804,571 31,507,340 29,116,466 1,297,231
Operating expenses 26,924,724 26,575,244 24,118,158 349,480
Operating Income(Loss) 5,879,847 4,932,096 4,998,308 947,751
Non-operating revenues(expenses) (1,713,890) (222,234) (77,568) (1,491,656)
Income(loss)before
capital contributions 4,165,957 4.709,862 4,920,740 (543,905)
Capital contributions, net 8,709,498 11,604,402 10,986,108 (2,894,904)
Change in net assets 12,875,455 16,314,264 15,906,848 (3,438,809)
NETASSETS, Beginning of Year 50,948,688 34,634,424 18,727,576 16,314,264
NET ASSETS,END OF YEAR $ 63,824,143 $ 50,948,688 $ 34,634,424 $ 12,875,455
Total Operating revenues were$32.8 million in'2009, $31.5 million in 2008 and$29.1 million in 2007. The
increases in sales to consumers of$0.5 million (2%) in 2009 and $2.3 million (8%)in 2008 were primarily
due to customer growth, and rate increases to fund increased operating costs and reserves. Other
operating revenues in 2009 include$0.8 million water meter surcharges. (See note 2, Reserve for Future
Water Meters.)
Total operating expenses were $26.9 million in 2009, $26.6 million in 2008 and $24.1 million in 2007.
The increases of$0.3 million (1%) in 2009 and $2.5 million (10%) in 2008 operating expenses were due
to increased public benefit and conservation programs, labor costs, depreciation, and other
miscellaneous costs. Purchased power costs also increased in 2008, but decreased in 2009.
Net non-operating revenues, less non-operating expenses, decreased $1.5 million and $0.1 million in
2009 and 2008 respectively. Non-operating revenues decreased in both .years primarily from lower
interest rates on investments, but were partially offset by decreased non-operating expenses due to
interest on lower debt balances. No new debt has been issued since 2006.
Capital contributions decreased to a net inflow of $8.7 million in 2009 due to less new construction and
development, but in 2008 contributions increased to a net inflow of$11.6 million as older projects were
completed.
See accompanying auditors' report.
Page 5
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2009 and 2008
CAPITAL ASSETS
As of December 31, 2009, 2008 and 2007, the District had $118.3 million, $108.0 million, and $96.2
million, respectively, invested in a variety of capital assets, net of accumulated depreciation. A summary
of capital assets is reflected in the following schedule.
CAPITAL ASSETS
2009 2008 2007
Electric distribution facilities $ 41,569,466 $ 38,449,374 $ 31,540,474
Water distribution facilities 84,674,907 79,076,388 71,356,454
General plant 10,402,163 10,257,397 9,451,222
Sub-totals 136,646,536 127,783,159 112,348,150
Less: Accumulated depreciation (34,688,094) (30,458,108) (27,491,932)
Net of accumulated depreciation 101,958,442 97,325,051 84,856,218
Construction work in progress 16,023,820 10,224,989 10,898,834
Land held for future use 288,663 430,100 430,100
TOTALS $118,270,925 $107,980,140 $ 96,185,152
Net capital assets (additions, less retirements and depreciation) at December 31, 2009 increased $10.3
million (10%) from December 31, 2008 and net capital assets at December 31, 2008 increased $11.8
million (12%)from December 31, 2007 because of increased electric and water distribution assets.
LONG-TERM DEBT
Long-term debt includes revenue bonds and notes payable. At December 31, 2009, 2008 and 2007, the
District had $99.0 million, $103.8 million, and $108.5 million, respectively, in long-term debt outstanding,
including current maturities. No new debt has been issued since 2006.
CONTACTING THE DISTRICT'S FINANCIAL MANAGEMENT
The financial report is designed to provide readers with a general overview of the District's finances and
to demonstrate the District's accountability for the money it receives. If you have questions about this
report or need additional financial information, contact:
Truckee Donner Public Utility District
Accounting &Finance Department
P.O. Box 309
Truckee, CA 96160
See accompanying auditors' report.
Page 6
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
CONSOLIDATED BALANCE SHEETS
December 31, 2009 and 2008
LIABILITIES AND NET ASSETS
2009 2008
CURRENT LIABILITIES
Other Liabilities
Accounts payable $ 3,541,736 $ 3,088,260
Customer deposits 268,738 256,863
Other 741,167 774,807
Total Other Liabilities 4,551,641 4,119,930
Current Liabilities Payable From Restricted Assets
Current portion of long-term debt 4,986,927 4,782,147
Accrued interest payable 1,368,843 1,437,813
Total Current Liabilities Payable from Restricted Assets 6,355,770 6,219,960
Total Current Liabilities 10,907,411 10,339,890
NON-CURRENT LIABILITIES
Long term debt, net of discounts, premiums and losses 91,889,452 96,604,153
Installment loans 2,107,434 2,429,524
Unearned revenues 4,216,188 6,300,993
Total Non-Current Liabilities 98,213,074 105,334,670
Total Liabilities 109,120,485 115,674,560
NET ASSETS
Invested in capital assets, net of related debt 37,247,841 27,386,977
Restricted for debt seance 16,061,200 18,306,875
Unrestricted 10,515,102 5,254,836
Total Net Assets 63,824,143 50,948,688
TOTAL LIABILITIES AND NET ASSETS $ 172,944,628 $ 166,623,248
The accompanying notes are an integral part of these consolidated financial statements.
Page 10
THIS PAGE IS INTENTIONALLY LEFT BLANK
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
CONSOLIDATED STATEMENTS OF REVENUE, EXPENSES,AND CHANGES IN NET ASSETS
For the Years Ended December 31, 2009 and 2008
2009 2008
OPERATING REVENUES
Sales to customers $ 30,301,191 $ 29,762,640
Water meter surcharge 799,434 -
Standby fees 198,190 183,430
Other 1,505,756 1,661,270
Total Operating Revenues 32,804,571 31,507,340
OPERATING EXPENSES
Purchased power 10,087,650 10,627,405
Operations and maintenance 6,480,863 6,127,286
Consumer services 1,730,493 1,684,981
Administration and general 4,139,300 3,934,868
Depreciation 4,486,418 4,200,704
Total Operating Expenses 26,924,724 26,575,244
Operating Income 5,879,847 4,932,096
NON-OPERATING REVENUE(EXPENSES)
Special tax revenue 2,970,794 2,797,432
Investment income 563,218 2,041,779
Interest expense (4,847,973) (5,034,556)
Amortization (111,978) (120,129)
Gain(loss)on disposition of assets (287,951) 93,240
Total Non-Operating Expenses (1,713,890) (222,234)
Income Before Contributions 4,165,957 4,709,862
CAPITAL CONTRIBUTIONS 8,709,498 11,604,402
CHANGE IN NET ASSETS 12,875,455 16,314,264
NET ASSETS-Beginning of Year 50,948,688 34,634,424
NET ASSETS -END OF YEAR $ 63,824,143 $ 50,948,688
The accompanying notes are an integral part of these consolidated financial statements.
Page 12
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Years Ended December 31, 2009 and 2008
2009 2008
CASH FLOWS FROM OPERATING ACTIVITIES
Received from customers $ 32,793,581 $ 31,690,883
Paid to suppliers for goods and services (16,349,381) (17,285,915)
Paid to employees for services (5,677,241) (4,629,355)
Net Cash Flows from Operating Activities 10,766,959 9,775,613
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Principal payments on long-term debt (2,685,000) (2,570,000)
Interest payments on long-term debt (730,413) (848,650)
Net Cash Flows from Noncapital Financing Activities (3,415,413) (3,418,650)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Capital expenditures for utility plant (8,561,557) (8,326,171)
Proceeds from sale of land 141,437 79,638
Capital contributions, connection and facility fees (27,999) 73,779
Special assessments receipts 555,515 539,609
Special tax receipts 2,736,677 2,751,980
Principal payments on long-term debt (2,132,466) (2,068,192)
Interest payments on long-term debt (4,149,702) (4,197,798)
Cash Flows From Capital and Related Financing Activities (11,438,095) (11,147,155)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest income received 1,088,820 1,604,084
Cash Flows from Investing Activities 1,088,820 1,604,084
Net Change in Cash and Cash Equivalents (2,997,729) (3,186,108)
CASH AND CASH EQUNALENTS—Beginning of Year 35,125.984 38,312,092
CASH AND CASH EQUIVALENTS—END OF YEAR $ 32,128,255 $ 35,125,984
NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES
Developer and customer added capital assets $ 6,513,918 $ 6,769,297
Recognition of prior period unearned revenues $ 4,308,895 $ 7,737,156
Disposal of land in the water utility; proceeds recorded in prior year $ 250,000 $ -
The accompanying notes are an integral part of these consolidated financial statements.
Page 13
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Years Ended December 31, 2009 and 2008
2009 2008
RECONCILIATION OF OPERATING INCOME TO NET CASH
FLOWS FROM OPERATING ACTIVITIES
Operating income $ 5,879,847 $ 4,932,096
Noncash items included in operating income
Depreciation and amortization 4,486,418 4,200,704
Amortization of deferred expenses 62,235 (5,184)
Depreciation charged to other accounts 205,555 154,139
Changes in assets and liabilities
Accounts receivable and unbilled revenues 61,452 179,775
Materials and supplies 19,999 16,399
Prepaid expenses and other current assets (43,587) 46,506
Accounts payable 204,518 83,693
Customer deposits (72,442) 3,768
Accrued payroll (37,036) 163,717
NET CASH FLOWS FROM OPERATING ACTIVITIES $ 10,766,959 $ 9,775,613
RECONCILIATION OF CASH AND CASH EQUIVALENTS
TO THE BALANCE SHEET
Operating $ 7,547,018 $ 5,929,166
Designated 8,079,142 8,112,362
Restricted bond funds-current 6,191,366 8,528,339
Restricted bond funds-non-current 14,047,936 16,653,120
Total Cash and Investments 35,865,462 39,222,987
Less: Long-term investments (3,594,876) (3,594,876)
Mark to market adjustment (142,331) (502,127)
TOTAL CASH AND CASH EQUIVALENTS
$ 32,128,255 $ 35,125,984
The accompanying notes are an integral part of these consolidated financial statements.
Page 14
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2009 and 2008
NOTES TO FINANCIAL STATEMENTS
NOTE 1 --ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. ORGANIZATION
The Truckee Donner Public Utility District (the District) was formed and operates under the State of
California Public Utility District Act. The District is governed by a board of directors which consists of five
elected members. The District provides electric and water service to portions of Nevada and Placer
Counties described as Truckee. The electric and water service operations are separately maintained and
operated. These financial statements reflect the combined electric and water operations of the District. All
significant transactions between electric and water operations have been eliminated. These eliminations
include power purchases and rent for shared facilities.
The District's blended component units consist of organizations whose respective governing boards are
comprised entirely of the members of the District's Board of Directors. These organizations are reported
as if they are a part of the District's operations. The entities are legally separate, however, in the case of
the Truckee Donner Public Utility District Financing Corporation, financial support has been pledged and
financial and operational policies may be significantly influenced by the District. The following is a
description of the District's blended component units:
Truckee Donner Public Utility District Financing Corporation: legal entity 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):
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):
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 Truckee Donner Public Utility District (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 resulting from exchange and exchange like transactions are
recognized when the exchange takes place.
The District follows all pronouncements of the Governmental Accounting Standards Board, and has
elected not to follow Financial Accounting Standards Board pronouncements issued after November 30,
1989.
.Page 15
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2009 and 2008
NOTE 1 —ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued)
C. USE OF ESTIMATES
Preparation of financial statements in conformity with accounting principles generally accepted in the
United States of America requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
D. DESIGNATED ASSETS
The board has designated certain resources for future capital projects, replacements and operational
needs.
E. RESTRICTED ASSETS
Restricted assets are assets restricted by the covenants of long-term financial arrangements or other third
party legal restrictions. Restricted assets are used in accordance with their requirements and where both
restricted and unrestricted resources are available for use, restricted resources are used first and then
unrestricted as they are needed.
F. ACCOUNTS RECEIVABLE AND ALLOWANCES FOR DOUBTFUL ACCOUNTS
Accounts receivable are recorded at the invoiced amount and are reported net of allowances of$83,141
and $37,867 for 2009 and 2008, respectively.
G. MATERIALS AND SUPPLIES
Materials and supplies are recorded at average cost.
H. UNAMORTIZED FINANCING COSTS
Certain costs related to borrowing funds are amortized over the term of the related borrowings using the
effective interest method.
1. SPECIAL ASSESSMENT RECEIVABLE
Special assessments represent amounts due from property owners within the Donner Lake Assessment
District for improvements made by the District pursuant to an agreement with the property owners to
improve their water quality as discussed in Note 8.
J. DEFERRED CHARGES
In 2003, the District entered into a broadband dark fiber maintenance agreement with Sierra Pacific
Communications (SPC) which is included in other deferred charges on the accompanying balance
sheets. 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.
Page 16
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2009 and 2008
NOTE 1 —ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
K. CAPITAL ASSETS
Capital assets are generally defined by the District as assets with an initial, individual cost of more than
$2,500 and an estimated useful life in excess of one year.
Capital assets of the District are stated at the lower of cost or the fair market value at the time of
contribution to the District. Major outlays for plant are capitalized as projects are constructed.
Depreciation on capital assets is calculated using the straight-line method over the estimated useful lives
of the assets, which are as follows:
Distribution Plant
Electric 23—35 years
Water 15—40 years
Computer software and hardware 3— 5 years
Building and improvements 20—33 years
Equipment and furniture 5—10 years
It is the District's policy to capitalize interest paid on debt incurred for significant construction projects
while those projects are under construction, less any interest earned on related unspent debt proceeds.
No new debt was issued in 2008 and 2009; no interest was capitalized in 2008 or in 2009.
L. COMPENSATED ABSENCES
Under terms of employment, employees are granted sick leave and vacations in varying amounts. Only
benefits considered to be vested are disclosed in these statements. Vested vacation and sick leave pay
is accrued when earned in the financial statements. The liability is liquidated from general operating
revenues of the utility.
M. REVENUE RECOGNITION
Revenues are recorded as meters are read on a cycle basis throughout each month for electric
customers and water customers with meters. 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. Also, the District records estimated revenues earned, but not billed to customers, as of the end
of the year. 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.
N. REVENUE AND EXPENSE CLASSIFICATION
The District distinguishes operating revenues and expenses from non-operating items in the preparation
of its financial statements. Operating revenues and expenses generally result from providing water and
electric 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 water and electric services.All revenues
and expenses not meeting this definition are reported as non-operating revenues and expenses, or
capital contributions.
Page 17
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2009 and 2008
NOTE 1 —ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
O. POWER PURCHASES AND TRANSMISSION
In 1999, the District entered into an agreement with Sierra Pacific Power Company (SPPC), whereby
SPPC will provide transmission services to the District through December 31, 2027. In addition, the
District purchases scheduling services from Northern California Power Agency. These purchases of
services represented 9.3%and 7.7%of total purchased power costs in 2009 and 2008, respectively.
Beginning January 1, 2005, the District entered into a membership agreement with the Western Area
Power Administration (WAPA). In accordance with this agreement, the District is entitled to an allocation
of power generated by the WAPA system. Because delivery of this power to the District is difficult, the
District has assigned this power to its third party power scheduler. The scheduler then uses the value of
this power to offset power purchases from UAMPS or other deliverable power purchases.
In December of 2005, the District entered into an agreement with the Utah Associated Municipal Power
System (UAMPS). Subsequently, the District entered into many pooling appendices for power capacity
and energy that relate to various time periods from January 2008 through March 2012. Also in 2009, the
District signed an agreement with UAMPS for approximately 5 MW of the Nebo natural gas generation
plant capacity.
In 2008 and 2009, the UAMPS contract, along with its appendices, and the WAPA contract comprised the
majority of a diversified power portfolio that balanced risk and cost for the District.
P. INCOME TAXES
As a government agency, the District is exempt from payment of federal and state income taxes.
Q. TAX REVENUES
Beginning in 2004, the District levied ad valorem property tax on all the taxable property within the Old
Greenwood District in an amount sufficient to pay the yearly principal and interest on the Special
Assessment District Tax Bonds (see note 5). The District had revenues of $861,086 in 2009 and
$782,555 in 2008.
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 note 5). The District levied ad valorem taxes of$2,109,708 in 2009
and$2,014,877 in 2008.
Taxes are assessed based on the county tax year ending June 30, resulting in unearned revenues for
each of the community facility districts. (see note 6).
Page 18
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2009 and 2008
NOTE 1 —ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
R. CONTRIBUTED CAPITAL ASSETS
A portion of the District's capital assets have been obtained through amounts charged to developers for
plant constructed by the District; direct contributions of capital assets from developers and other parties;
as well as assessments of local property owners. These items are recognized within capital assets as
construction is completed for plant constructed by the District based on the cost of the items, when
received for contributed capital assets based on the actual or estimated fair value of the contributed
items, or upon completion of the related project for development agreements. The District records
amounts received within capital contributions when a legally enforceable claim is established. Until the
District meets the criteria to record the amounts described above as capital contributions, any amounts
received are recorded within unearned revenues on the balance sheet.
S. RECENT ACCOUNTING PRONOUNCEMENTS IMPLEMENTED BY THE DISTRICT
In November 2006, the GASB issued Statement No. 49, Accounting and Financial Reporting for Pollution
Remediation Obligations. This statement addresses accounting and financial reporting standards for
pollution (including contamination) remediation obligations,which are obligations to address the current or
potential detrimental effects of existing pollution by participating in pollution remediation activities such as
site assessments and cleanups. For recognized pollution remediation liabilities and recoveries, this
Statement requires governments to disclose the nature and source of pollution remediation obligations,
the amount of the estimated liability (if not apparent from the financial statements), the methods and
assumptions used for the estimate, the potential for changes in estimates, and estimated recoveries that
reduce the measurement of the liability. Governments are also required to disclose a general description
of the nature of pollution remediation activities for liabilities that are not reasonably estimable. The
adoption of Statement No. 49 was effective for the District beginning fiscal year 2008.
In May 2007, the GASB issued Statement No. 50, Pension Disclosure - an amendment of GASB
Statements N. 25 and No. 27. This Statement amends statement 25 to require defined benefit pension
plans and defined contribution plans to disclose in the notes to financial statements the methods and
assumptions used to determine the fair value of investments, if the fair value is based on other than
quoted market prices. This Statement amends Statement 27 to require cost-sharing employers to include,
in the note disclosure of the required contribution rates of the employer in dollars and the percentage of
that amount contributed for the current year and each of the two preceding years, how the contractually
required contribution rate is determined, or that the cost-sharing plan is financed on a pay-as-you-go
basis. This Statement also amends Statement 27 to require that, if a cost-sharing plan does not issue a
publicly available stand-alone plan financial report, prepared in accordance with the requirements of
Statement 25, as amended, and the plan is not included in the financial report of another entity, each
employer in that plan should present as. RSI the schedules of funding progress and employer
contributions for the plan (and notes to these schedules).The adoption of Statement No. 50 was effective
for the District beginning fiscal year 2008. See note 9.
In March of 2009, GASB issued Statement No. 55, The hierarchy of Generally Accepted Accounting
Principles for State and Local Governments. This Statement is to incorporate the hierarchy of generally
accepted accounting principles (GAAP) for state and local governments into the Governmental
Accounting Standards Board's (GASB) authoritative literature. This Statement will make it easier for
preparers of state and local government financial statements to identify and apply all relevant guidance.
This Statement has been implemented in fiscal year 2009.
Page 19
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2009 and 2008
NOTE 1 —ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued)
In March of 2009, GASB issued Statement No. 56, Codification of Accounting and Financial Reporting
Guidance Contained in the AICPA Statements on Auditing Standards. This Statement addresses three
issues not included in the authoritative literature that establishes accounting principles — related party
transactions, going concern considerations, and subsequent events. The requirements in this Statement
will improve financial reporting by contributing to the GASB's efforts to codify all sources of generally
accepted accounting principles for state and local governments so that they derive from a single source.
This Statement has been implemented in fiscal year 2009.
T. ACCOUNTING PRONOUNCEMENTS TO BE IMPLEMENTED IN UPCOMING YEARS
In June of 2007, GASB issued Statement No. 51, Accounting and Financial Reporting for Intangible
Assets. This Statement is effective for financial statements for periods beginning after June 15, 2009.
Governments possess many different types of assets that may be considered intangible assets, including
easements, water rights, timber rights, patents, trademarks, and computer software. The objective of this
Statement is to establish accounting and financial reporting requirements for intangible assets to enhance
the comparability of the accounting and financial reporting of such assets among state and local
governments. This Statement requires that an intangible asset be recognized in the statement of net
assets only if it is considered identifiable. Additionally, this Statement establishes a specified-conditions
approach to recognizing intangible assets that are internally generated. This Statement also establishes
guidance specific to intangible assets related to amortization. The District has elected not to early
implement GASB No. 51 and has not determined its effect on the District's financial statements.
In June of 2008, GASB issued Statement No. 53, Accounting and Financial Reporting for Derivative
Instruments. This Statement addresses the recognition, measurement, and disclosure of information
regarding derivative instruments entered into by state and local governments. Derivative instruments are
often complex financial arrangements used by governments to manage specific risks or to make
investments. Common types of derivative instruments used by governments include interest rate and
commodity swaps, interest rate locks, options (caps, floors, and collars), swaptions, forward contracts,
and futures contracts. Governments enter into derivative instruments as investments; as hedges of
identified financial risks associated with assets or liabilities, or expected transactions (that is, hedgeable
items); or to lower the costs for borrowings. Governments often enter into derivative instruments with the
intention of effectively fixing cash flows or synthetically fixing prices. Governments also enter into
derivative instruments to offset the changes in fair value of hedgeable items. A key provision in this
Statement is that derivative instruments covered in its scope, with the exception of synthetic guaranteed
investment contracts (SGICs) that are fully benefit-responsive, are reported at fair value. The objectives,
terms, and risks of hedging derivative instruments are required disclosures. Disclosures also include a
summary of derivative instrument activity that provides an indication of the location of fair value amounts
reported on the financial statements. The disclosures for investment derivative instruments are similar to
the disclosures of other investments. The requirements of this Statement are effective for financial
statements for periods beginning after June 15, 2009. The District has elected not to early implement
GASB No. 53 and has not determined its effect on the District's financial statements.
Page 20
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2009 and 2008
NOTE 1 —ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
In December 2009, GASB issued Statement No. 57, OPEB Measurements by Agent Employers and
Agent Multiple — Employer Plans. This Statement addresses issues related to the use of the alternative
measurement method and the frequency and timing of measurements by employers that participate in
agent multiple-employer Other Post-Employment Benefit(OPEB) plans. The Statement amends previous
GASB statements on OPEB plans, and will improve the consistency of reporting for OPEB plans. The
requirements of this Statement are effective for financial statements for periods beginning after June 15,
2011. The District has elected not to early implement GASB No. 57 and has not determined its effect on
the District's financial statements.
NOTE 2--CASH AND INVESTMENTS
Cash 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 designated accounts
may be used to fund capital projects. Such accounts have been designated by the Board for the following
purposes:
Building Fund
In compliance with Board rules, the District maintained a building fund to help pay for the interest
and principal of any borrowed funds used for the District office complex or to pay for capital
improvements to the building. In 2009, the Board adopted a resolution to consolidate the Building
Fund into the Electric Capital Replacement Fund.
Electric Capital Replacement
Starting in 2009, the Board has set aside funds designated for future electric infrastructure
replacement.
Electric Vehicle Reserve
Beginning in 2009, the Board set aside funds designated for future electric utility vehicle
replacements.
Storm Damage Fund
The District maintained a designated fund to provide for future storm damage to the electric
system. In 2009, the Board adopted a resolution to consolidate the Storm Damage Fund with the
Electric Operating Cash Reserves.
Electric Rate Reserve
In compliance with Board rules, the District has created an electric rate stabilization fund in
anticipation of future costs. During both 2009 and 2008, there was no utilization of these funds to
offset increased power costs in lieu of raising electric rates.
Page 21
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2009 and 2008
NOTE 2—CASH AND INVESTMENTS (Continued)
Reserve for Future Meters
Prior to 1992, connection fees charged to applicants for water service included an amount, which
was maintained in a designated fund, to offset the cost of future metering. In 2008, the Board
adopted an ordinance to charge a $5 monthly surcharge to all customers of treated water
beginning January 2009 through December 2013. Water meters and automated meter reading
devices are being installed, and customers will be billed volumetrically in accordance with
California Assembly Bill 2572. As meters are installed, these funds are used to pay for related
costs.
Water Capital Replacement
Starting in 2006, the Board has set aside a portion of water revenues designated for future water
infrastructure replacement.
Water Vehicle Reserve
Beginning in 2009, the Board set aside funds designated for future water utility vehicle
replacements.
Prepaid Connection Fees
In compliance with Board rules, the District has set aside prepaid connection fees to cover
installation costs of water services.
Land Sale Trust Fund
The District's Board has set aside certain funds from the sale of surplus properties to pay for
future capital improvement projects. In 2009, the Board adopted a resolution to consolidate the
Land Sales Trust Fund into the Water Capital Replacement Fund.
Debt Service Coverage Fund
Effective 2007, the Board has set aside a portion of the water rates to improve the cash-to-debt-
service ratio.
Donner Lake Assessment District Surcharge Fund
The District established a monthly billing surcharge in the amount of $6.65 applicable to
customers in the Donner Lake area to provide revenue to pay the remainder of the cost of
reconstruction effective October 2006.
Glenshire Lease Proceeds
Beginning 2009, the District receives funds for a parcel leased in Glenshire.All net proceeds from
the lease are designated to be applied to the debt associated with the acquisition of the Glenshire
Mutual Water Company,together with the restricted fund"Glenshire Escrow Accounts."
Page 22
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2009 and 2008
NOTE 2—CASH AND INVESTMENTS(Continued)
As of December 31, board designated accounts consisted of the following:
2009 2008
Building fund $ - $ 234,117
Electric capital replacement fund 237,743 -
Electric vehicle reserve 165,658 -
Storm damage fund - 286,116
Electric rate reserve 1,935,323 1,550,631
Reserve for future meters 160,970 594,173
Water capital replacement fund 3,995,320 459,485
Water vehicle reserve 144,314 -
Prepaid connection fees 81,844 80,382
Land sale trust fund - 4,102,925
Debt service coverage fund 1,334,114 790,515
Donner Lake Assessment District surcharge fund 23,006 14,018
Glenshire lease proceeds 850 -
Totals $ 8,079,142 $ 8,112,362
Certain assets have been restricted by bond covenants or third party contractual agreements for the
following purposes:
Certificates of Participation: Electric
The terms of the Electric Division's Certificates of Participation require a reserve fund as security
for each principal and interest payment as they come due. A reserve fund is set aside as
prescribed in the loan documents. These reserve funds are held by Bank of New York Mellon
Trust Company.
Certificates of Participation:Water
The terms of the Water Division's Certificates of Participation require a reserve fund as security
for each principal and interest payment as they come due. A reserve fund is set aside as
prescribed in the loan documents. These reserve funds are held by Bank of New York Mellon
Trust Company.
Special Tax Bonds: Gray's Crossing and Old Greenwood
The terms of the special tax bonds issued for the Mello-Roos Community Facilities Districts
require reserve funds as security for each principal and interest payment as they come due.
Reserve funds are set aside as prescribed in the loan documents. These reserve funds are held
by Bank of New York Mellon Trust Company.
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.
Page 23
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2009 and 2008
NOTE 2—CASH AND INVESTMENTS (Continued)
Department of Water Resources (DWR) Prop 55 Reserve Fund
Regulations relating to the Department of Water Resources loan require the accumulation of a
reserve fund as security for each principal and interest payment as they come due. Annual
payments into the fund were required for each of the first ten years beginning April 1, 1996. The
total reserve fund equals two semi-annual payments and was fully funded during 2006. These
funds will be set aside for the life of the borrowed amount. All of the reserve funds are invested in
the State of California Local Agency Investment Fund.
Glenshire Escrow Accounts
The District received cash as part of its acquisition of the Glenshire water system and from a
monthly surcharge paid by residents. The terms of the acquisition agreement specify that the
cash be utilized for the construction of improvements to the Glenshire water system. The funds
are being used to pay the debt service costs related to improvements.
Donner Lake Special Assessment District Improvement Fund
The District established the Donner Lake Special Assessment District(DLAD) Improvement Fund
to account for all funds received from the Special Assessment Receivable, which will be used to
pay the debt service costs related to the Donner Lake Water System project. The DLAD
Improvement Fund also has a reserve fund as required by the California—Safe Drinking Water—
State Revolving Fund (SRF). This fund is required to set aside $40,043 semi-annually for ten
years beginning in 2006.
2006 COP Water System Project Fund
During 2006, the District issued $26.6 million in water Certificates of Participation (COP's) (see
note 5), the proceeds of which are to be used in part for future water system replacement. The
District established the Water System Project Fund to account for the unspent bond proceeds.
The District is allowed to draw upon such funds as valid construction costs are incurred.
Solar Initiative Fund
The California Solar Initiative Senate Bill 1 (SB-1) was enacted in 2006, mandating that all
publicly-owned electric utilities within the State of California, prepare, adopt and implement a
solar rebate program by January 2008 to encourage its customers to install solar energy systems.
In 2007, the Board adopted a rebate program effective January 2008, targeting $177,400
annually over ten years to be used as rebates for the installation of solar electricity systems and
to raise these funds through a customer surcharge.
Other(Area Improvement Funds)
The District receives funds from the County of Nevada, which are to be used only for
improvements to specific areas within the District's boundaries in Nevada County. These areas
include various Nevada County assessment districts.
When both restricted and unrestricted resources are available for use, it is the District's policy to use
restricted resources first, then unrestricted resources as they are needed.
Page 24
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2009 and 2008
NOTE 2—CASH AND INVESTMENTS (Continued)
As of December 31, restricted cash and cash equivalents and investments consisted of the following:
2009 2008
Certificates of Participation $ 7,359,026 $ 7,542,305
Special tax bonds 4,632,812 4,539,397
Facilities fees 2,414,716 4,450,889
DWR-Prop 55 reserve fund 312,202 311,871
Glenshire escrow accounts 164,533 172,391
Donner Lake Special Assessment District improvement 2,194,744 2,376,869
Donner Lake Special Assessment District reserve fund 320,341 242,543
2006 COP Water System Project fund 2,573,785 5,329,109
Solar Initiative 98,625 36,728
Other(area improvement funds) 168,518 179,357
Total Restricted Cash and Cash
Equivalents and Investments $ 20,239,302 $ 25,181,459
Cash and investments are comprised of the following cash and cash equivalents and investments as of
December 31:
2009 2008
Cash and cash equivalents $ 32,128,255 $ 35,125,984
Mark to market adjustment 142,331 502,127
Investments—govemment bonds 3,594,876 3,594,876
Totals $ 35,865,462 $ 39,222,987
Cash and cash equivalents of $32,128,255 and $35,125,984 at December 31, 2009 and 2008,
respectively, consist primarily of investments in the state pooled fund, money market funds and a
guaranteed investment contract. For purposes of the statements of cash flows, the District considers all
highly liquid instruments with original maturities of three months or less to be cash equivalents.
Adjustments necessary to record investments at market value are recorded in the operating statement as
increases or decreases in investment income. Market values may have changed significantly after year
end.
Page 25
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2009 and 2008
NOTE 2—CASH AND INVESTMENTS (Continued)
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 pool administered by the State of
California ("LAIF"). The District's investment policy contains provisions intended to limit the District's
exposure to interest rate risk,credit risk, and concentration of credit risk.At December 31, 2009 and 2008
the District's deposits and investments were held as follows:
2009 2008
Cash on hand $ 1,200 $ 1,200
Deposits 198,696 270,616
LAIF 21,821,379 22,456,467
Money Market Funds 7,675,526 8,093,117
Guaranteed Investment Contract 2,573,785 4,806,711
Government Bonds 3,594,876 3,594,876
Totals $ 35,865,462 $ 39,222,987
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 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 2009 and 2008:
Investment Maturity
LAIF 3 months or less
Federated U.S.Treasury Cash Reserve 3 months or less
Fidelity Institutional Prime 3 months or less
Fidelity Money Market 3 months or less
FSA Capital Management—Investment Contract 3 months or less
Federal Home Loan Mortgage 09/15/2011
Federal Farm Credit Banks 03/02/2021
DISCLOSURES RELATING TO CREDIT RISK
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of
the investment. This is measured by the assignment of a rating by a nationally recognized statistical
rating organization. LAIF does not have a rating provided by a nationally recognized statistical rating
organization. The Fidelity Money Market is also not rated. The Fidelity Institutional Prime and the
Federated U.S. Treasury Cash Reserve are rated AAAm by S&P and Aaa by Moody's. FSA Capital
Management is rated A+ by S&P and A3 by Moody's. Federal Home Loan Mortgage and Federated Farm
Credit Banks are rated AAA by S&P and Aaa by Moody's.
Page 26
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2009 and 2008
NOTE 2—CASH AND INVESTMENTS(Continued)
DISCLOSURES RELATING TO CONCENTRATION OF CREDIT RISK
Concentration of credit risk is the risk of loss attributed to the magnitude of investments in a single issuer.
The District's investment policy requires diversification, but does not include specific limitations by issuer.
As of December 31, 2009 and 2008 the portfolio included the following investment requiring disclosure:
2009 2008
Federal Home Loan Mortgage 5.3% 4.8%
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 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 deposits, other than the following for deposits: 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, 2009 and 2008 all deposits were fully insured or collateralized.
The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g.,
broker/dealer) to a transaction, a government will not be able to recover the value of its investment or
collateral securities that are in the possession of another party. The California Government Code and the
District's investment policy do not contain legal or policy requirements that would limit the exposure to
custodial credit risk for investments. With respect to investments, custodial credit risk generally applies
only to direct investments in marketable securities. Custodial credit risk does not apply to a local
government's indirect investment in securities through the use of mutual funds or governmental
investment pools (such as LAIF.
INVESTMENT IN STATE INVESTMENT POOL
The District is a voluntary participant in the Local Agency Investment Fund (LAIF)that is regulated by the
California Government Code under the oversight of the Treasurer of the State of California. The fair
value of the District's investment in this pool is reported in the accompanying financial statements at
amounts based upon the District's pro-rata share of the fair value provided by the LAIF for the entire LAIF
portfolio (in relation to the amortized cost of the portfolio). The balance available for withdrawal is based
on the accounting records maintained by the LAIF,which are recorded on an amortized cost basis.
Page 27
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2009 and 2008
NOTE 3—CAPITAL ASSETS
Capital assets consist of the following at December 31, 2009 and 2008:
January 1, December 31,
2009 Additions Reductions 2009
Electric distribution facilities $ 38,449,373 $ 3,262,555 $ (142,461) $ 41,569,467
Water distribution facilities 79,076,388 5,913,673 (315,155) 84,674,906
General plant 10,257,398 313,790 (169,025) 10,402,163
127,783,159 9,490,018 (626,641) 136,646,536
Less:Accumulated depreciation (30,458,108) (4,856,627) 626,641 (34,688,094)
Construction work in progress 10,224,989 11,289,105 (5,490,274) 16,023,820
Land held for future use 430,100 - (141,437) 288,663
Totals $107,980,140 $ 15,922,496 $ (5,631,711) $118,270,925
January 1, December 31,
2008 Additions Reductions 2008
Electric distribution facilities $ 31,540,474 $ 7,051,918 $ (143,019) $ 38,449,373
Water distribution facilities 71,356,454 8,616,430 (896,496) 79,076,388
General plant 9,451,122 1,132,065 (325,789) 10,257,398
112,348,050 16,800,413 (1,365,304) 127,783,159
Less:Accumulated depreciation (27,491,932) (4,331,480) 1,365,304 (30,458,108)
Construction work in progress 10,898,934 10,964,738 (11,638,683) 10,224,989
Land held for future use 430,100 - - 430,100
Totals $ 96,185,152 $ 23,433,671 $ (11,638,683) $107,980,140
As of December 31, 2009 and 2008, the plant in service included land, $1,770,457 and $1,940,523
respectively, which is not being depreciated.
A portion of the plant has been contributed to the District. When replacement is needed, the District
replaces the contributed plant with District-financed plant.
At the end of 2009, there were open contracts with seven contractors totaling $6.8 million. All completed
work was paid or accrued, and recorded in construction work in progress.
At the end of 2008, there were open contracts with one contractor totaling $3.1 million. All completed
work was paid or accrued, and recorded in construction work in progress.
Page 28
TRUCKEE DONNER PUBLIC UTILITY DISTRICT :
NOTES TO FINANCIAL STATEMENTS
December 31, 2009 and 2008
NOTE 4—TELECOMMUNICATION SERVICES
In 1999, the District initiated a project to expand their basic service offerings to include internet access,
cable television and voice delivered over fiber optic networks (the broadband project), The District has
completed the broadband design project and obtained the necessary regulatory approvals and franchises
needed to construct and launch the broadband project. Expenses incurred by the District to date on the
broadband project total $2,834,079 of which $496,990 is included in capital assets on the accompanying
balance sheet. During 2009 and 2008, expenditures for this project totaled $5,000 and $26,976,
respectively, mainly related to legal and consulting services.
A local cable television service provider, filed an objection in September 2004 with the 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. As of late 2009, the
District's Board has decided to lease the existing infrastructure to provide a rate of return for District
Ratepayers.
Page 29
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2009 and 2008
NOTE 5--LONG-TERM DEBT
Long-term debt consisted of the following at December 31, 2009:
January 1, December 31, Due within
.2009 Additions Reductions 2009 one year
Certificates of Participation—
Electric,2.5%to 5.75%,
due serially to 2013(net of
unamortized premiums of
$89,844). $ 14,969,898 $ - $ (2,740,054) $ 12,229,844 $ 2,805,000
State Revolving Fund Loan—
Water,2.34%,due semi-annually
beginning in 2006 to 2026. 11,179,438 - (542,408) 10,637,030 555,175
Special Tax Bonds—Mello
Roos,2.25%to 5.7%,due
serially to 2013(net of
unamortized discounts of
$115,796). 12,117,345 - (98,141) 12,019,204 90,000
Special Tax Bonds—Mello
Roos,3.25%to 5.7%,
due serially to 2035(net of
unamortized discounts-of
$280,169). 15,029,682 - (34,851) 14,994,831 70,000
Special Tax Bonds—Mello
Roos,3.50%to 5.50%,
due serially to 2035(net of
unamortized discounts of
$190,745). 18,833,763 - (89,508) 18,744,255 125,000
Certificates of Participation—
Water,4.00%to 5.00%,
due serially to 2036(net of
unamortized discounts of
$115,260, premiums of
$516,353 and arbitrage of 25,763,315 - (766,993) 24,996,322 805,000
$160,230).
Department of Water Resources,
3.18%,due semiannually to
2021,secured by real
and personal property. 3,141,498 - (208,378) 2,933,120 214,981
Installment loans, 5.4%to 6.23%,
various payment terms and
due dates, secured by
equipment. 2,780,886 - (351,679) 2,429,207 321,771
Totals $103,815,825 $ - $ (4,832,012) $ 98,983,813 $ 4,986,927
Page 30
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2009 and 2008
NOTE 5—LONG-TERM DEBT(Continued)
Long-term debt consisted of the following at December 31, 2008:
January 1, December 31, Due within
2008 Additions Reductions 2008 one year
Certificates of Participation—
Electric,2.5%to 5.75%,
due serially to 2013(net of
unamortized premiums of
$144,898). $ 17,604,878 $ - $ (2,634,980) $ 14,969,898 $ 2,685,000
State Revolving Fund Loan—
Water,2.34%,due semi-annually
beginning in 2006 to 2026. 11,709,373 - (529,935) 11,179,438 542,408
Special Tax Bonds—Mello
Roos,2.25%to 5.7%,due
serially to 2013(net of
unamortized discounts of
$122,655). 12,165,466 - (48,121) 12,117,345 70,000
Special Tax Bonds—Mello
Roos,3,25%to 5.7%,
due serially to 2035(net of
unamortized discounts of
$295,318). 15,049,507 - (19,825) 15,029,682 50,000
Special Tax Bonds—Mello
Roos,3.50%to 5.50%,due
due serially to 2035(net of
unamortized discounts of
$201,237). 18,893,239 - (59,476) 18,833,763 100,000
Certificates of Participation—
Water,4.00%to 5.00%,
due serially to 2036(net of
unamortized discounts of
$123,542 and premiums of
$553,457) 26,483,591 - (720,276) 25,763,315 775,000
Department of Water Resources,
3.18%,due semiannually to
2021, secured by real
and personal property. 3,343,263 - (201,765) 3,141,498 208,378
Installment loans, 5.4%to 6.23%,
various payment temps and
due dates,secured by
equipment. 3,212,377 - (431,491) 2,780,886 351,361
Totals $108,461,694 $ - $ (4,645,869) $103,815,825 $ 4,782,147
Page 31
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2009 and 2008
NOTE 5—LONG-TERM DEBT(Continued)
On April 3, 2003,the District issued $26,265,000 of Certificates of Participation,the net proceeds of which
were utilized to pay the amounts due to IDACORP for the purchase power contract settlement fees, as
well as to cover the associated costs of issuance. The terms of the new Certificates call for debt service
payments to be made only from the net revenues of the Electric Division. These revenues are required to
be at least equal to 120%of the debt service for each year.
During April 2004, the District obtained financing in the form of a State Revolving Fund Loan, the
proceeds of which were utilized in the replacement of the Donner Lake water system. The District
submitted expenditures to the State for reimbursement of $12,732,965. The semi-annual principal and
interest payments are $400,426 and commenced in 2006. The District is also required to fund a reserve
account by making semi-annual reserve payments in the amount of $40,043 for a 10-year period
beginning in 2006. In 2004, the remaining balance of $12,227,122 was used to pay off the temporary
lines of credit obtained in 2001 and 2002 to fund the Donner Lake project. See note 8 for additional
information.
During December 2003, the Old Greenwood Community Facilities District issued $12,445,000 of Special
Tax Bonds, the net proceeds of which were utilized to finance various public improvements for property
within Old Greenwood. The terms of the Special Tax Bonds call for debt service payments to be provided
solely by taxes levied on and collected from the owners of the taxable land within Old Greenwood. The
bonds are secured by land located within Old Greenwood.
During 2005 and 2004 respectively, the Gray's Crossing Community Facilities District issued$15,375,000
and $19,155,000 of Special Tax Bonds, the net proceeds of which were utilized to finance various public
improvements for property within Gray's Crossing (see note 7). The terms of the Special Tax Bonds call
for debt service payments to be provided solely by taxes levied on and collected from the owners of the
taxable land within Gray's Crossing. The bonds are secured by land located within Gray's Crossing.
During 1996, Truckee Donner Public Utility District Financing Corporation issued $10,905,000 of
Certificates of Participation to refund 100% of the outstanding balance of Certificates issued in 1991. The
1991 Certificates were used to finance the repair and construction of various water system improvements
for the District. The terms of the new 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 110% of the debt service for each year.
On October 12, 2006, Truckee Donner Public Utility District Financing Corporation issued $26,570,000 of
Certificates of Participation to refund 100% of the outstanding balance of the Certificates issued in 1996,
complete the funding of the Donner Lake Assessment District water system, and fund water system
capital improvements The refunding portion of the 2006 COP's, totaling $8,465,000, has an average
interest rate of 4.10%. The refunded 1996 COP's had an average interest rate of 5.41%. The net
proceeds of $7,500,557 (after payment of $63,733 in underwriting fees, insurance and other issuance
costs) plus an additional $1,315,194 of reserve fund monies were used to prepay the outstanding debt
service requirements on the 1996 COP's. The terms of the Certificates call for payments to be made only
from the net revenues of the Water Division and the debt is secured by this revenue. These revenues are
required to be at least equal to 125% of the debt service for each year.
Under the Safe Drinking Water Bond Law of 1986, the Department of Water Resources provided a
$5,000,000 loan to the District in 1993. The loan was to finance capital improvements to the public water
supply and to reduce water quality hazards. The terms of the loan call for payments to be made only from
the net revenues of the Water Division, which are required to be sufficient to pay the debt service for each
year.
Page 32
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2009 and 2008
NOTE 5—LONG-TERM DEBT(Continued)
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 2008 or in 2009.
Scheduled payments on debt are:
Principal Interest Total
2010 $ 4,986,927 $ 4,713,351 $ 9,700,278
2011 5,196,145 4,482,163 9,678,308
2012 5,511,978 4,224,494 9,736,472
2013 5,830,419 3,950,567 9,780,986
2014 2,657,143 3,759,463 6,416,606
2015-2019 15,255,859 17,839,765 33,095,624
2020-2024 16,028,870 13,070,053 29,098,923
2025-2029 16,522,015 10,007,574 26,529,589
2030-2034 21,585,000 4,929,450 26,514,450
2035-2039 5,345,000 323,110 5,668,110
98,919,356 $ 67,299,990 $166,219,346
Plus: Unamortized premiums 606,197
Arbitrage rebate 160,230
Less: Unamortized discounts (701,970)
Total carrying value $ 98,983,813
NOTE 6—UNEARNED REVENUES
For transactions that have not yet met revenue recognition requirements, revenues are unearned and
reflected in the accompanying balance sheets. As of December 31, 2009 and 2008, 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, 2009 and 2008:
January 1, December 31,
2009 Additions Reductions 2009
Unearned tax revenues $ 1,417,851 $ 1,556,627 $ (1,417,851) $ 1,556,627
Development agreement deposits 3,517,552 337,184 (2,278,563) 1,576,173
Connection fees and other deposits 1,365,590 330,279 (612,481) 1,083,388
Totals $ 6,300,993 $ 2,224,090 $ (4,308,895) $ 4,216,188
January 1, December 31,
2008 Additions Reductions 2008
Unearned tax revenues $ 1,435,589 $ 1,417,851 $ (1,435,589) $ 1,417,851
Development agreement deposits 7,631,126 903,291 (5,016,865) 3,517,552
Connection fees and other deposits 2,013,339 636,953 (1,284,702) 1,365,590
Totals $ 11,080,054 $ 2,958,095 $ (7,737,156) $ 6,300,993
Page 33
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2009 and 2008
NOTE 7—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). During 2009 and 2008 respectively, taxes of
$873,327 and $809,583 were levied by Old Greenwood. Of these amounts, $436,664 and $404,792
relate to 2009 and 2008, and accordingly, are included in tax revenues in the accompanying statement of
revenues, expenses and changes in net assets. The remaining amount will be recognized in 2010 and
2009 and are included in unearned revenues on the accompanying balance sheets.
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 2009 and 2008, taxes of$2,239,928
and $2,026,120 respectively were levied by Gray's Crossing. Of this amount, $1,119,964 and$1,013,060
relate to 2009 and 2008, and accordingly, are included in tax revenues in the accompanying statement of
revenues, expenses and changes in net assets. The remaining amount will be recognized in 2010 and
2009 and is included in unearned revenues on the accompanying balance sheets.
NOTE 8—DONNER LAKE WATER COMPANY PURCHASE
In 2001, the District took ownership of Donner Lake Water Company by initiating an eminent domain
lawsuit. As a part of the takeover, the District agreed to replace the entire water system, which was
estimated to cost approximately $15,600,000 and was completed in 2006. The District agreed to initially
finance the replacement through obtaining third party financing and the Donner Lake property owners
agreed to reimburse the District for the full costs of the replacement. Therefore, an assessment has been
placed on each Donner Lake homeowner's property for a pro-rats share of the $13,000,000 payable
immediately, or, for those not paying the assessment in full, over 20 years at approximately a 3.1%
interest rate. One twentieth of the assessment, plus interest, is added to each property owner's annual
property tax bill, if they have not previously paid the assessment in full, and is collected by Nevada and
Placer Counties on behalf of the District. The Donner Lake homeowner's property values secure the
$13,000,000 assessment.
Project costs incurred in excess of the assessment are being collected through surcharges to each
property owners bill until all costs are recovered. As of December 31, 2009 and 2008, the amount
outstanding from the property owners was $8,022,123 and $8,557,638 respectively, of which $588,403
and $573,523 is due in the next year. These amounts are shown as Special Assessments Receivable in
the Balance Sheet. Per Board resolution, all funds received from property owners are set aside in the
Donner Lake Special Assessment District Improvement Fund until such time as the funds will be used to
fund the debt service on the District's initial third party debt.
Page 34
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31,2009 and 2008
NOTE 8—DONNER LAKE WATER COMPANY PURCHASE (Continued)
During April 2004, the District obtained financing in the form of a State Revolving Fund Loan for
$12,732,965 at a rate of 2.34%. The semi-annual principal and interest payments are $400,426. The
District is also required to fund a reserve account by making semi-annual reserve payments in the
amount of$40,043 for a 10-year period. Prior to obtaining the State Revolving Fund Loan, the District had
third party bridge financing in the form of two lines of credit totaling $10,000,000. Both lines of credit were
extinguished with funds received through the State Revolving Fund Loan.
NOTE 9—EMPLOYEE BENEFIT PLANS
A. CALPERS MI SCELLANEOUS 2%AT 60 RISK POOL PENSION PLAN
The District and bargaining unit employees elected to participate in the Public Agency portion of California
Public Employees' Retirement System (CaIPERS), effective August 21, 2004. The "CaIPERS
Miscellaneous 2% at 60 Risk Pool" is a cost-sharing multi-employer defined benefit plan administered by
CaIPERS, which acts as a common investment and administrative agent for participating public
employers within the state of California. State statutes within the Public Employees' Retirement Law
establish a menu of benefit provisions, as well as other requirements. The District selects optional benefit
provisions from the benefit menu by contract with CaIPERS and adopts those benefits through local
ordinance or resolution. The CaIPERS plan also provides for death and disability benefits. CaIPERS
issues a separate comprehensive annual financial report. Copies of the CaIPERS' comprehensive annual
financial report may be obtained from:
California Public Employees' Retirement System
400 Q Street
P.O. Box 942701
Sacramento, CA 94229-2701
Tel. 888-225-7377
hftp://www.calpers.ca.gov
Active plan participants are required to contribute 7% of their annual covered salary, of which the District
pays 4% on behalf of the participants. The District is required to contribute the actuarially determined
remaining amounts necessary to fund the benefits for its participants. The required employer contribution
rate for fiscal years ending June 30, 2009 and 2008 was 18.106% and 16.120% of eligible participant
payroll. The contribution requirements of the plan participants are established by State statute and the
employer contributions rate is established and may be amended by CaIPERS.
At the time of joining the CaIPERS Miscellaneous 2% at 60 Risk Pool, an employer side fund was created
to account for the difference between the funded status of the pool and the funded status of the District's
plan. The side fund is credited, on an annual basis, with the actuarial assumption of a 7.75% investment
return and the side fund balance is amortized on a closed basis, ending in 2017.
Page 35
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2009 and 2008
NOTE 9—EMPLOYEE BENEFIT PLANS(Continued)
The District's annual pension cost (APC) for the years ended December 31, 2009, 2008, and 2007
respectively, was $1,291,312, $1,147,487, and $1,056,022, and was equal to the District's annual
required contributions (ARC) as determined by the June 30, 2008, 2007 and 2006 actuarial valuations
using the entry age normal actuarial cost method with the contributions determined as a percent of
payroll. The actuarial methods and assumptions used are those adopted by the CaIPERS Board of
Administration. Significant actuarial assumptions and methods include:
Actuarial Cost Method Entry Age Actuarial Cost Method
Amortization Method Level Percent of Payroll
Average Remaining Period 4 Years as of the Valuation Date
Asset Valuation Method 15 Year Smoothed Market
Investment Rate of Return 7.75%(net of administrative expenses)
Projected Salary Increases 3.25%- 14.45%
Inflation 3%
Payroll Growth 3.25%
The plan's unfunded actuarial accrued liability is being amortized as a level percentage of projected
payrolls on an open basis over a period not to exceed 30 years.
Retirement plans like the District's with less than 100 active members are required to participate in a risk
pool. Therefore, the funding progress for the District for the June 30, 2008 valuation date is for the entire
pool, not just the District employees. The following is a funding schedule for the CalPERS Plan:
Schedule of Funding Progress(Unaudited,Required Supplementary Information)
Accrued Actuarial Unfunded Funded Annual
Valuation Liabilities Value of Liabilities Ratio Covered UL asa%
Date (AL) Assets(AVA) (UL) (AVA/AL) Payroll of Payroll
06/30/2005 $ 484,351,523 $ 459,996,995 $ 24,354,528 95.0% $ 174,127;476 14.0%
06/30/2006 $478,122,215 $ 454,602,459 $ 23,519,756 95.1% $ 170,458,082 13.8%
06/30/2007 $ 498,934,859 $ 479,520,670 $ 19,414,189 96.1% $ 171,052,819 11.3%
06/30/2008 $ 532,483,463 $ 513,147,099 $ 19,336,364 96.4% $ 183,387,608 10.5%
As of July 1, 2009, the District contribution rate changed to 17.418%.
B. DEFERRED COMPENSATION PLAN
The District maintains two deferred compensation plans: a 401(a) and a 457 plan, (the Plans) for certain
employees. The District has no liability for losses under the Plans, but does have the duty of due care that
would be required of an ordinary prudent investor. The District has not reflected the Plans' assets and
corresponding liabilities(if any) on the accompanying balance sheets.
C. OTHER POST EMPLOYMENT BENEFITS(OPEB)
The District administers a single-employer defined benefit healthcare plan (The Retiree Health Plan).
Contribution requirements and benefit provisions are established through collective bargaining
agreements and may be amended only through negotiations between the District and the Union. The plan
provides health insurance contributions for eligible retirees and their spouses through the District's group
health insurance plan, which covers both active and retired members. Health insurance includes medical
insurance, dental insurance, and prescriptions. The Retiree Health Plan does not issue a publicly
available financial report.
Page 36
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2009 and 2008
NOTE 9—EMPLOYEE BENEFIT PLANS(Continued)
The District began providing post employment health care on January 1, 2000 to all employees, and
qualified dependents, that retire from the District on or after attaining age 60 with service of at least 20
years. As of December 31, 2009, there were nine active plan participants. The monthly amount paid by
the District is capped at $475 for each participant or $375 for each participant eligible for Medicare. For
participants with less than 20 years of service, the benefit is reduced by 5% for each year. For
participants who retired prior to age 60, the benefit is reduced by 2%for each year. Expenditures for post
employment health care benefits are recognized when premiums are paid.
On November 7, 2007, the Board approved a participation agreement with CalPERS to be the plan
administrator for the District's other post employment benefit (OPEB) trust. The participation agreement
was submitted to CaIPERS on November 8, 2007, and became effective on January 15, 2008. At that
time, accumulated deposits from the prior year, plus accrued interest, were transferred to the California
Employers' Retiree Benefit Trust Program(CERBT).
The funds of the Retiree Health Plan are invested in CERBT, which is a tax qualified trust organized
under Internal Revenue Code(IRC) Section 115. Participation in the trust is limited to those agencies who
qualify as"government' entities under that IRC section. The CERBT is an irrevocable trust established for
the purpose of receiving employer contributions to prefund health and other postemployment benefits for
retirees and their beneficiaries. The CERBT administrative costs are financed through investment
earnings. Copies of the CaIPERS' comprehensive annual financial report, that includes CERBT
investment performance, may be obtained from:
California Public Employees' Retirement System
400 Q Street
P.O. Box 942701
Sacramento, CA 94229-2701
Tel. 888-225-7377
http://www.calpers.ca.gov
The District's annual OPEB expense is calculated based on the ARC, an amount actuarially determined in
accordance within the parameters of GASB Statement No. 45. The ARC represents a level of funding
that, if paid on an ongoing basis, is projected to cover the normal cost each year. The plan's unfunded
actuarial accrued liability is being amortized as a level percentage of projected payrolls on an open basis,
over a period not to exceed 30 years, using the entry age normal cost method.
The following table shows the components of the District's annual OPEB cost, the amount actually
contributed to the plan, and changes in the net OPEB obligation to the Retiree Health Plan:
Annual %of Change in OPEB Net OPEB
Fiscal Required Interest Annual Annual Net OPEB Obligation Obligation
Year Contribution and OPEB Actual OPEB Cost Obligation (Asset) (Asset)
Ended (ARC) Adjustments Cost Contribution Contributed (Asset) January 1 December 31
12/31/2007 $ 252,900 $ - $ 252,900 $ 54,100 21.4% $ 198,800 $ - $ 198,800
12131/2008 $ 174,800 $ (92,100) $ 82,700 $ 379,604 459.0% $(296,904) $ 198,800 $ (98,104)
12/31/2009 $ 203,500 $ - $ 203,500 $ 202,680 99.6% $ 820 $ (98,104) $ (97,284)
Page 37
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2009 and 2008
NOTE 9—EMPLOYEE BENEFIT PLANS(Continued)
Actuarial valuations of an ongoing plan are required at least once every two years and involve estimates
for the value of reported amounts and assumptions about the probability of occurrence of events far into
the future. Examples include assumptions about future employment, mortality, and the healthcare cost
trend. Amounts determined regarding the funded status of the plan and annual required contributions of
the employer are subject to continual revision as actual results are compared with past expectations and
new estimates are made about the future.
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as
understood by the employer and plan members) and include the types of benefits provided at the time of
each valuation and historical pattern of sharing benefit costs between the employer and plan members to
that point. The methods and assumptions used include techniques that are designed to reduce short-term
volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term
perspective of calculations.
Significant actuarial assumptions include:
Actuarial Cost Method Entry Age Normal Cost Method
Discount Rate 7.75%
Health Care Cost Trend 5%-10%annual increase
The following is a funding schedule for the Retiree Health Plan:
Schedule of Funding Progress(Unaudited,Required Supplementary Information)
Accrued Actuarial Unfunded Funded Annual
Valuation Liabilities Value of Liabilities Ratio Covered UL as a%
Date* (AL) Assets(AVA) (UL) (AVA/AL) Payroll of Payroll
01/01/2006 $ 2,328,500 $ - $ 2,328,500 0.0% $ 5,542,800 42.0%
01/01/2007 $ 1,369,600 $ 198,800 $ 1,170,800 14.5% $ 4,925,600 23.8%
01/01/2009 $ 1,748,000 $ 230,900 $ 1,517,100 13.2% $ 5,276,400 28.8%
*Valuations are required only once every two years
NOTE 10—SELF FUNDED INSURANCE
The District has a self-funded vision insurance program and claims were processed by and on behalf of
the District. The District did not maintain a claim liability, rather claims were expensed as paid. The
amount of claims paid for each of the past three years have not been material.
Page 38
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2009 and 2008
NOTE 11 —SEGMENT DISCLOSURE
The District has issued revenue bonds to finance electric and water distribution facilities. The District also
issued special tax bonds secured by tax revenues from Mello-Roos Community Facilities Districts. Each
project has an external requirement to be reported separately, and investors in the revenue bonds and
special tax bonds rely solely on the revenue generated by the individual projects for repayment. Summary
financial information for each project is presented on the following pages for the years ending December
31, 2009 and 2008.
BALANCE SHEETS
December 31,2009
Gray's Old
ASSETS Electric Water Crossing Greenwood
Current assets $ 14,110,031 $ 12,350,828 $ 2,730,634 $ 1,112,733
Non-current assets:
Capital assets, net 38,660,870 79,610,055 - -
Restricted assets 2,747,000 6,668,123 3,349,192 1,283,621
Other long-term assets 995,654 8,722,348 409,759 193,780
Total Noncurrent Assets 42,403,524 95,000,526 3,758,951 1,477,401
TOTAL ASSETS $ 56,513,555 $107,351,354 $ 6,489,585 $ 2,590,134
LIABILITIES AND NET ASSETS
Current liabilities $ 5,724,365 $ 4,045,457 $ 809,180 $ 328,409
Non-current Liabilities
Long-term debt,net of current
portion 9,701,246 38,822,350 33,544,086 11,929,204
Unearned revenues 1,937,804 721,758 1,119,962 436,664
Total Liabilities 17,363,415 43,589,565 35,473,228 12,694,277
Net Assets
Invested in capital assets, net
of related debt 38,607,672 43,794,920 (33,329,327) (11,825,424)
Restricted for debt service 5,647,276 6,718,697 2,686,909 1,008,318
Unrestricted (5,104,808) 13,248,172 1,658,775 712,963
Total Net Assets 39,150,140 63,761,789 (28,983,643) (10,104,143)
TOTAL LIABILITIES
AND NET ASSETS $ 56,513,555 $107,351,354 $ 6,489,585 $ 2,590,134
Page 39
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2009 and 2008
NOTE 11 —SEGMENT DISCLOSURE (Continued)
December 31,2008
Gray's Old
ASSETS Electric Water Crossing Greenwood
Current assets $ 13,160,526 $ 14,174,558 $ 2,532,255 $ 1,020,005
Non-current assets:
Capital assets, net 36,753,775 71,226,365 - -
Restricted assets 3,600,730 8,512,994 3,265,105 1,274,291
Other long-term assets 1,134,127 9,334,330 428,929 205,258
Total Noncurrent Assets 41,488,632 89,073,689 3,694,034 1,479,549
TOTAL ASSETS $ 54,649,158 $103,248,247 $ 6,226,289 $ 2,499,554
LIABILITIES AND NET ASSETS
Current liabilities $ 5,403,204 $ 3,861,392 $ 766,080 $ 309,214
Non-current Liabilities
Long-term debt, net of current
portion 12,649,144 40,623,744 33,713,444 12,047,345
Unearned revenues 3,716,131 1,167,010 1,013,060 404,792
Total Liabilities 21,768,479 45,652,146 35,492,584 12,761,351
Net Assets
Invested in capital assets, net
of related debt 36,693,536 36,040,043 (33,434,515) (11,912,087)
Restricted for debt service 6,318,659 8,327,201 2,655,257 1,005,758
Unrestricted (10,131,516) 13,228,857 1,512,963 644,532
Total Net Assets 32,880,679 57,596,101 (29,266,295) (10,261,797)
TOTAL LIABILITIES
AND NET ASSETS $ 54,649,158 $103,248,247 $ 6,226,289 $ 2,499,554
Page 40
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2009 and 2008
NOTE 11 —SEGMENT DISCLOSURE(Continued)
STATEMENTS OF REVENUE, EXPENSES, AND CHANGES IN NET ASSETS
Year ended December 31,2009
Gray's Old
Electric Water Crossing Greenwood
Operating Revenues
Sales to consumers $ 20,552,874 $ 9,748,317 $ - $ -
Other operating revenues 2,706,555 1,625,424 -
Operating expenses (17,590,158) (6,676,747) - -
Depreciation (1,597,405) (2,889,013) - -
Non-operating revenues(expenses) (642,237) (1,511,959) 282,652 157,654
Income(loss)before
capital contributions 3,429,629 296,022 282,652 157,654
Capital contributions, net 2,839,832 5,869,666 - -
CHANGE IN NET ASSETS 6,269,461 6,165,688 282,652 157,654
NETASSETS, BEGINNING 32,880,679 57,596,101 (29,266,295) (10,261,797)
NET ASSETS,ENDING $ 39,150,140 $ 63,761,789 $ (28,983,643) $ (10,104,143)
Year ended December 31,2008
Gray's Old
Electric Water Crossing Greenwood
Operating Revenues
Sales to consumers $ 20,104,157 $ 9,658,483 $ - $ -
Other operating revenues 2,747,242 773,606 - -
Operating expenses (17,770,793) (6,379,895) - -
Depreciation (1,643,965) (2,556,739) - -
Non-operating revenues(expenses) (467,933) (86,571) 225,741 106,529
Income(loss)before
capital contributions 2,968,708 1,408,884 225,741 106,529
Capital contributions, net 6,405,794 5,198,608 - -
CHANGE IN NET ASSETS 9,374,502 6,607,492 225,741 106,529
NETASSETS, BEGINNING 23,506,177 50,988,609 (29,492,036) (10,368,326)
NET ASSETS,ENDING $ 32,880,679 $ 57,596,101 $ (29,266,295) $ (10,261,797)
Page 41
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2009 and 2008
NOTE 11 —SEGMENT DISCLOSURE(Continued)
STATEMENTS OF CASH FLOWS
Year ended December 31,2009
Gray's Old
Electric Water Crossing Greenwood
NET CASH PROVIDED BY(USED IN)
Operating activities $ 6,189,094 $ 4,577,865 $ - $
Noncapital financing activities (3,415,413) - - -
Capital and related financing activities (2,650,738) (8,703,150) (72,049) (12,158)
Investing activities 151,022 827,498 72,328 37,972
Net increase(decrease)in cash and
cash equivalents 273,965 (3,297,787) 279 25,814
Cash and Cash Equivalents, Beginning 13,084,108 16,899,652 3,688,614 1,453,610
CASH AND CASH
EQUIVALENTS,ENDING $ 13,358,073 $ 13,601,865 $ 3,688,893 $ 1,479,424
Year ended December 31,2008
Gray's Old
Electric Water Crossing Greenwood
NET CASH PROVIDED BY(USED IN)
Operating activities $ 5,566,824 $ 4,208,789 $ - $
Noncapital financing activities (3,418,650) - -
Capital and related financing activities (3,333,622) (7,834,164) 30,683 (10,052)
Investing activities 355,939 1,094,945 100,190 53,010
Net increase (decrease)in cash and
cash equivalents (829,509) (2,530,430) 130,873 42,958
Cash and Cash Equivalents, Beginning 13,913,617 19,430,082 3,557,741 1,410,652
CASH AND CASH
EQUIVALENTS,ENDING $ 13,084,108 $ 16,899,652 $ 3,688,614 $ 1,453,610
Page 42
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2009 and 2008
NOTE 12—CLAIMS AND JUDGMENTS
From time to time, the utility is party to various pending claims and legal proceedings. Although the
outcome of such matters cannot be forecasted with certainty, it is the opinion of management and the
utility's legal counsel that the likelihood is remote that any such claims or proceedings will have a material
adverse effect on the utility's financial position or results of operations.
NOTE 13—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 14—SUBSEQUENT EVENTS
WATER RATE INCREASE
On November 18, 2009, the Board of Directors approved a restructuring of water rates with an overall
average increase of 1.75%, effective on bills issued on or after January 15, 2010, and approved an
additional 1.75% increase effective on bills issued on or after January 15,2011.
WATER CONTRACT DISPUTE SETTLEMENT
In 2009, the District was in mediation with another party regarding a 2008 contract and the work
performed for the Water Utility. A settlement was reached in April 2010 and the settlement payment was
accrued as of December 31, 2009.
ELECTRIC CONTRACT DISPUTE SETTLEMENT
In 2009, the District was in mediation with another party regarding a 2007 contract and the work
performed for the Electric Utility. A settlement was reached in April 2010 and the settlement payment was
accrued as of December 31, 2009.
Page 43
E
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SUPPLEMENTAL INFORMATION
i
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
SUPPLEMENTAL INFORMATION
December 31, 2009
CONSOLIDATING BALANCE SHEETS
As of December 31,2009 Component Units
Electric Water Gray's
Operations Operations Crossing Old Greenwood Eliminations Totals
ASSETS
CURRENT ASSETS
Funds
Operating $ 5,052,777 $ 1,958,737 $ 339,701 $ 195,803 $ - $ 7,547,018
Designated 2,338,724 5,740,418 - - - 8,079,142
Restricted 3,238,625 2,952,741 - - - 6,191,366
Total Funds 10,630,126 10,651,896 339,701 195,803 - 21,817,526
Accounts receivable,net 887,876 625,416 2,388,295 915,026 - 4,816,613
I Unbilled revenues 1,858,276 694,429 - - - 2,552,705
Accrued interest receivable 12,374 107,923 2,638 1,904 - 124,839
Materials and supplies 524,447 135,325 - - - 659,772
Prepaid expenses 180,470 120,470 - - - 300,940
Other 16,462 15,369 - - - 31,831
Total Current Assets 14,110,031 12,350,828 2,730,634 1,112,733 - 30,304,226
NON-CURRENT ASSETS
Other Non-Current Assets
Restricted funds 2,747,000 6,668,123 3,349.192 1,283,621 - 14,047,936
Special assessments receivable - 8,022,123 - - - 8,022,123
Deferred charges
Unamortized debt issue costs 124,409 700,225 409,759 193,780 - 1,428,173
Other 871,245 - - - - 871,245
Total Other Non-Current Assets 3,742,654 15,390,471 3,758,951 1,477,401 - 24,369,477
CAPITAL ASSETS
Utility plant 49,413,568 87,232,968 - - - 136,646,536
Accumulated depreciation (14,113,535) (20,574,559) - - - (34,688,094)
Construction work in progress 3,360,837 12,662,983 - - - 16,023,820
t
Land held for future use - 288,663 - - 288,663
° Total Utility Plant 38,660,870 79,610,055 - - - 118,270,925
TOTAL ASSETS $ 56,513,555 $ 107,351,354 $ 6,489,585 $ 2,590,134 $ - $ 172,944,628
' Page 45
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
SUPPLEMENTAL INFORMATION
December 31, 2009
Component Units
Electric Water Gray's
Operations Operations Crossing Old Greenwood Eliminations Totals
LIABILITIES AND NET ASSETS
CURRENT LIABILITIES
Other liabilities
Accounts payable $ 1,851,919 $ 1,689,817 $ - $ - $ - $ 3,541,736
Customer deposits 214,280 54,458 - - - 268,738
Other 427,055 314,112 - - - 741,167
Total other liabilities 2,493,254 2,058,387 - - - 4,551,641
Current liabilities payable from restricted assets:
Current portion of long-term debt 2,892,762 1,809,165 195,000 90,000 = 4,986,927
Accrued interest payable 338,349 177,905 614,180 238,409 1,368,843
Total Current Liabilities Payable from Restricted Assets 3,231,111 1,987,070 809,180 328,409 - 6,355,770
Total Current Liabilities 5,
724,365 4,045,457 809,180 328,409 - 10,907,411
4
NON-CURRENT LIABILITIES
Long-term debt,net of discounts, premiums and losses 9,424,845 36,991,317 33,544,086 11,929,204 - 91,889,452
I Installment loans 276,401 1,831,033 - - - 2,107,434
Uneamed revenues 1,937,804 721,758 1,119,962 436,664 - 4,216,188
Total non-current liabilities 11,639,050 39,544,108 34,664,048 12,365,868 - 98,213,074
Total Liabilities 17,363,415 43,589,565 35,473,228 12,694,277 - 109,120,485
NET ASSETS
Invested in capital assets, net of related debt 38,607,672 43,794,920 (33,329,327) (11,825,424) - 37,247,841
Restricted for debt service 5,647,276 6,718,697 2,686,909 1,008,318 - 16,061,200
Unrestricted (5,104,808) 13,248,172 1,658,775 712,963 - 10,515,102
Total Net Assets 39,150,140 63,761,789 (28,983,643) (10,104,143) - 63,824,143
I TOTAL LIABILITIES AND NET ASSETS $ 56,513,555 $ 107,351,354 $ 6,489,585 $ 2,590,134 $ - $ 172,944,628
r
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TRUCKEE DONNER PUBLIC UTILITY DISTRICT
SUPPLEMENTAL INFORMATION
December 31, 2009
STATEMENTS OF REVENUES,EXPENSES AND CHANGES IN NET ASSETS
For the Year Ended December 31,2009 Component Units
Electric Water Gray's
Operations Operations Crossing Old Greenwood Eliminations Totals
OPERATING REVENUES
Sales to customers $ 20,552,874 $ 9,748,317 $ - $ - $ - $ 30,301,191
Water meter surcharge - 799,434 - - - 799,434
Interdepartmental sales 1,478,459 1,484 - - (1,479,943) -
Standby fees 26,990 171,200 - - - 198,190
Other 1,201,106 653,306 - - (348,656) 1,505,756
Total Operating Revenues 23,
259,429 11,373,741 - - (1,828,599) 32,804,571
OPERATING EXPENSES
Purchased power 10,087,650 - - - - 10,087,650
Operations and maintenance 3,477,688 4,483,118 - - (1,479,943) 6,480,863
Consumer services 1,243,074 487,419 - - - 1,730,493
Administration and general 2,781,746 1,706,210 - - (348,656) 4,139,300
Depreciation 1,597,405 2,889,013 - - - 4,486,418
Total Operating Expenses 19,187,563 9,5
65,760 760 - - (1,828,599) 26,924,724
Operating Income 4,071,866 1,807,981 - - - 5,879,847
NON-OPERATING REVENUE(EXPENSES) - - -
Special tax revenue 2,109,708 861,086 2,970,794
Investment income 71,971 395,408 64,096 31,743 - 563,218
Interest expense (692,150) (1,592,645) (1,846,340) (716,838) - (4,847,973)
Amortization (21,184) (27,645) (44,812) (18,337) - (111,978)
Gain(loss)on disposition of assets (874) (287,077) - - - (287,951)
Total Non-Operating Expenses (642,237) (1,511,959) 282,652 157,654 - (1,713,890)
Income Before Contributions 3,429,629 296,022 282,652 157,654 - 4,165,957
CAPITAL CONTRIBUTIONS,net 2,839,832 5,869,666 - - - 8,709,498
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CHANGE IN NET ASSETS 6,269,461 6,165,688 282,652 157,654 - 12,875,455
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NET ASSETS-Beginning of Year 32,880,679 57,596,101 (29,266,295) (10,261,797) - 50,948,688
NET ASSETS-END OF YEAR $ 39,150,140 $ 63,761,789 $ (28,983,643) $ (10,104,143) $ - $ 63,824,143
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TRUCKEE DONNER PUBLIC UTILITY DISTRICT
SUPPLEMENTAL INFORMATION
December 31, 2009
STATEMENTS OF CASH FLOWS
For the Year Ended December 31,2009 Component Units
Electric Water Gray's
Operations Operations Crossing Old Greenwood Eliminations Total
CASH FLOWS FROM OPERATING ACTIVITIES
Received from customers $ 23,368,982 $ 11,253,198 $ - $ - $ (1,828,599) $ 32,793,681
Paid to suppliers for goods and services (13,506,846) (4,671,134) - - 1,828,599 (16,349,381)
Paid to employees for services (3,673,042) (2,004,199) - - - (5,677,241)
Net Cash Flows from Operating Activities 6,189,094 4,577,865 - - - 10,766,969
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Principal payments on long-term debt (2,685,000) - - - - (2,685,000)
Interest payments on long-term debt (730,413) - - - - (730,413)
Net Cash Flows from Noncapital Financing Activities (3,415,413) - - - - (3,415,413)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Capital expenditures for utility plant (2,386,393) (6,175,164) - - - (8,561,557)
Proceeds from sale of land - 141,437 - - - 141,437
Capital contributions,connection and facility fees (125,675) 97,676 - - - (27,999)
Special assessments receipts - 555,515 - - - 555,515
Special tax receipts - - 1,926,192 810,485 - 2,736,677
Principal payments on long-term debt (116,071) (1,761,395) (150,000) (105,000) - (2,132,466)
Interest payments on long-term debt (22,599) (1,561,219) (1,848,241) (717,643) - (4,149,702)
Cash Flows From Capital and Related Financing Activities (2,650,738) (8,703,150) (72,049) (12,158) - (11,438,095)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest income received 151,022 827,498 72,328 37,972 - 1,088,820
Cash Flows from Investing Activities 151,022 827,498 72,328 37,972 - 1,088,820
Net Change In Cash and Cash Equivalents 273,965 (3,297,787) 279 25,814 - (2,997,729)
CASH AND CASH EQUIVALENTS--Beginning of Year 13,084,108 16,899,652 3,688,614 1,453,610 - 35,125,984
CASH AND CASH EQUIVALENTS—END OF YEAR $ 13,358,073 $ 13,601,865 $ 3,688,893 $ 1,479,424 $ - $ 32,128,255
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NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES
During 2009:$1,187,180 and$5,326,738 of capital assets were contributed to the electric and water utilities,respectively,by customers and developers.
t $2,131,414 and$759,630 of prior period unearned revenues were recognized by the electric and water utilities,respectively.
$1,013,059 and$404,792 of prior period unearned revenues were recognized by the component units,Gray's Crossing and Old Greenwood,respectively. Page 49
$250,000 disposal of land in the water utility was recorded in 2009;proceeds were recorded in a prior year.
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TRUCKEE DONNER PUBLIC UTILITY DISTRICT
SUPPLEMENTAL INFORMATION
December 31,2009
Component Units
Electric Water Gray's
Operations Operations Crossing Old Greenwood Eliminations Total
RECONCILIATION OF OPERATING INCOME TO NET CASH
FLOWS FROM OPERATING ACTIVITIES
Operating income $ 4,071,866 $ 1,807,981 $ - $ - $ - $ 5,879,847
Noncash items included in operating income
Depreciation and amortization 1,597,405 2,889,013 - - - 4,486,418
Amortization of deferred expenses 62,235 - - - - 62,235
Depreciation charged to other accounts 125,707 79,848 - - - 205,555
Changes in assets and liabilities
Accounts receivable and unbilled revenues 102,079 (40,627) - - - 61,452
Materials and supplies 9,215 10,784 - - - 19,999
Prepaid expenses and other current assets (12,154) (31,433) - - - (43,587)
Accounts payable 240,971 (36,453) - - - 204,518
Customer deposits 7,474 (79,916) - - - (72,442)
Other current liabilities (15,704) (21,332) - - - (37,036)
NET CASH FLOWS FROM OPERATING ACTIVITIES $ 6,189,094 $ 4,577,865 $ - $ - $ - $ 10,766,959
RECONCILIATION OF CASH AND CASH EQUIVALENTS
TO THE BALANCE SHEET
Operating $ 5,052,777 $ 1,958,737 $ 339,701 $ 195,803 $ - $ 7,547,018
Designated 2,338,724 5,740,418 - - - 8,079,142
Restricted bond funds-current 3,238,625 2,952,741 - - - 6,191,366
Restricted bond funds-non-current 2,747,000 6,668,123 3,349,192 1,283,621 - 14,047,936
Total Cash and Investments 13,377,126 17,320,019 3,688,893 1,479,424 - 35,865,462
Less: Long-term investments - (3,594,876) - - - (3,594,876)
Mark to market adjustment (19,053) (123,278) - - - (142,331)
TOTAL CASH AND CASH EQUIVALENTS $ 13,358,073 $ 13,601,865 $ 3,688,893 $ 1,479,424 $ - $ 32,128,255
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2010111 Budget Worksheet
Community Facilities District No.04-1(Gray's Crossing)
Fund Number 617
PRINCIPAL r INTEREST
Principal-Series 2004 $70,000.00 $95,000.00
Interest-Series 2004 866,642.50 863,737.50
Principal-Series 2005 125,000.00 150,000.D0
Interest-Series 2005 975,895.50 970,897.50
TOTAL $2,037,638.00 $2,079,635.00
ADMINISTRATION COSTS
Agency Administration $0.00 $0.00
Finance Manager 0.00 0.00
Accounting Staff 4,500.00 6,180.00
Agency Auditor Fees 1,5D0.00 1,500.00
Attorney Fees 0.00 0.00
Office Expenses,Paid by Agency 30.00 30.00
Other Expenses,Paid by Agency 0.00 0.00
Total Agency Staff and Expenses $6,030.00 $7,710.00
County Auditor and Assessor Fees 308.00 280.18
Registrar/Transfer/Paying Agent Fees 4,500.00 5,000.00
Consulting Services(1) 12,367.49 13,433.12
Delinquency Management Allowance 1,859.14 10,364.35
Delinquency Management Fees 1,840.86 2,090.05
TOTAL $26,905.49 $38,877.70
Total Principal,Interest and Admin Costs $2,064,443.49 $2,118,512.70
ADJUSTMENTS APPLIED TO LEVY
Reserve Fund Credit $0.00 $0.00
Special Tax Fund Credit 0.00 0.00
Replenishment/(Credit) 0.00 0.00
Reserve for Future Delinquencies 175,486.93 211,851.27
Capitalized Interest Credit 0.00 0.00
Miscellaneous/Adjustment Credit 0.00 0.00
TOTAL $176,486.93 $211,851.27
TOTAL
Total Charge $2,239,930.42 $2,330,363.97
Applied Charge $2,239,927.70 $2,330,363.80
Difference(due to rounding)(2) $2.72 $0.17
:REJECT SUMMARY
Handbilled Parcels: 0 0
Handbilled Charge: $0.00 $0.00
Rejected Parcels: 0 0
Rejected Charge: $0.00 $0.00
Re-applied Parcels: 0 0
Re-applied Charge: $0.00 $0.00
Difference(due to parcel changes): $0.00 $0.00
ADDITIONAL INFORMATION
Number of Active Parcels 0 0
Number of Parcels Levied 416 416
Max Tax-Developed Parcel 1,463,150.49 1,530,366.98
Max Tax-Undeveloped 6,091,742.16 6,342,364.20
Max Tax-Golf 0.00 1.00
Remaining Special Tax-After Max Tax Developed 776,777 674,916.68
Undeveloped Taxable Acreage 0 0.00
Total Golf1 Acreage 0 1.00
Total Golf2 Acreage 0 62.21
Admin Costs as a percent of Annual Levy 1.20% 1.67%
2010
(1)Consulting services include,but are not limited to:District Administration Fees,Arbitrage
Rebate Calculation Fees and Municipal Disclosure Fees.
(2)The Difference is used to ensure that each parcel's levy amount is divisible by two,as
required by the County Auditor-Controller.
LEVY APPROVED BY:
2010111 Budget Worksheet
Community Facilities District No.03-1 (Old Greenwood)
Fund Number 608
PRINCIPAL s INTEREST
Principal $90,000.00 $110,000.00
Interest 715,227.50 709,770.00
TOTAL $805,227.50 $819,770.00
ADMINISTRATION C
Agency Administration $4,000.00 $4,120.00
Agency Auditor Fees 1,500.00 1,500.00
Attorney Fees 0.00 0.00
Office Expenses, Paid by Agency 30.00 30.00
Total Agency Staff and Expenses $5,530.00 $5,650.00
County Auditor and Assessor Fees 190.00 175.60
Registrar/Transfer/Paying Agent Fees 3,000.00 3,000.00
Consulting Services(1) 11,221.72 10,259.92
Delinquency Management Allowance 1,625.00 3,625.00
Delinquency Management Fees 375.00 375.00
TOTAL $21,941.72 $23,086.52
Total Principal, Interest and Admin Costs $827,169.22 $842,855.52
ADJUSTMENTS i TO LEVY
Reserve Fund Credit $0.00 $0.00
Special Tax Fund Credit 0.00 0.00
Replenishment/(Credit) 0.00 0.00
Reserve For Future Delinquencies 46,159.42 84,285.55
Capitalized Interest Credit 0.00 0.00
Miscellaneous/Adjustment Credit 0.00 0.00
TOTAL $46,159.42 $84,285.55
TOTAL =
Total Charge $873,328.64 $927,141.07
Applied Charge $873,327.38 $927,139.44
Difference(due to rounding)(2) $1.26 $1.63
ADDITIONAL INFO-. s
Number of Active Parcels 180 180
Number of Parcels Levied 180 180
Admin Costs as a percent of Annual Le 2.51% 2.49%
2010
(1) Consulting services include, but are not limited to:District Administration Fees,Arbitrage
Rebate Calculation Fees and Municipal Disclosure Fees.
(2) The Difference is used to ensure that each parcel's levy amount is divisible by two, as
required by the County Auditor-Controller.
LEVYAPPROVED BY.
THIS PAGE IS INTENTIONALLY LEFT BLANK
FINANCIAL STATEMENTS
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
CONSOLIDATED BALANCE SHEETS
December 31, 2009 and 2008
ASSETS
2009 2008
CURRENT ASSETS
Funds
Operating $ 7,547,018 $ 5,929,166
Designated 8,079,142 8,112,362
Restricted 6,191,366 8,528,339
Total Funds 21,817,526 22,569,867
Accounts receivable, net 4,816,613 4,640,756
Unbilled revenues 2,552,705 2,417,122
Accrued interest receivable 124,839 293,506
Materials and supplies 659,772 679.771
Prepaid expenses 300,940 257,353
Other 31,831 28,969
Total Current Assets 30,304,226 30,887,344
NON-CURRENT ASSETS
Other Non-Current Assets
Restricted funds 14,047,936 16,653,120
Special assessments receivable 8,022,123 8,577,638
Deferred charges
Unamortized debt expense 1,428,173 1,591,526
Other 871,245 933,480
Total Other Non-Current Assets 24,369,477 27,755,764
CAPITAL ASSETS
Utility plant 136,646,536 127,783,159
Accumulated depreciation (34,688,094) (30,458,108)
Construction work in progress 16,023,820 10,224,989
Land held for future use 288,663 430,100
Total Utility Plant 118,270,925 107,980,140
TOTAL ASSETS $ 172,944,628 $ 166,623,248
The accompanying notes are an integral part of these consolidated financial statements.
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