HomeMy WebLinkAbout4 Audit Presentation Agenda Item #
TRUCKEE DONNER
Public Utility District 1
Memorandum
To: Board of Directors
From: Mary Chapman
Date: June 1, 2001
Subject: 2000 Audit Presentation
Attached is a copy of the draft audit report for 2000; Rick Blumenfeld of Arthur
Andersen LLC will attend the June 6th board meeting to review the results of the
audit with the Board.
RECOMMENDATION:
That the Board adopt the 2000 annual audit as prepared by the District's
auditors Arthur Andersen LLC subject to any changes requested by the
Board of Directors.
3605-Truckee.doc
04/26/01, 3:26 PM
Tentruire & Prelilninary
For Discussion Purposes Only
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
Financial Statements
As of December 31 , 2000 and 1999
Together with Report of
Independent Public Accountants
Date
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j 4-13-01 ' A i 4-1;-01 1 PM I Sacv notes smc j x x j
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I 4-24-Ot A 1 4-24-01 A,M, jStaevnoes I i i i x x j i
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.A=Same Day B=Two day C=One week
TenPa:ive Lt Preliminam
For Discuss;on Purposes Only
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Board of Directors of Truckee Donner Public Utility District:
We have audited the accompanying balance sheets of TRUCKEE DONNER PUBLIC UTILITY
DISTRICT (the District) as of December 31, 2000 and 1999, and the related statements of operations and
cash flows for the years then ended. These financial statements and the comb_mmglstatements referred to
below are the responsibility of the District's management. Our responsibilitgsto express an opinion on
these financial statements and combining'statements based on our audits.
We conducted our audits in accordance with auditing standarduenerally accepted in the United States.
Those standards require that we plan and perfoCnithe audits ttzabtain reasonableassurance about
whether the financial statements are free of mate�tsal misstatemeW-5m audit incffiBes examining, on a
test basis, evidence supporting,the amounts andtdrselosures r e�tnancial statements. An audit also
includes assessing the acco --AF-nciples us and significm"I estimates madam}management, as well
as evaluating the overall financra) tatement presentation. W believe that our audits provide a
reasonable basi9for our opmmon
In our oprnil inanei �' ""ents refen?�dsto-above present fairly, in all material respects, the
financial Isitio the Di f Decem�er 3 T 2000 and 1999, and the results of its operations and
r its cash flows foe yearsri d in conformity with accounring principles generally accepted in the
United States
Our audits were made for tl q&puipose of forming an opinion on the basic financial statements taken as a
whole. The d.t,'ivisional combining statements (Exhibits I and U) and the divisional statements (Exhibits III
and M a ted for purposes of additional analysis and are not a required part of the basic financial
statement -^ s information has been subjected to the auditing procedures applied in our audits of the
basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the
basic financial statements taken as a whole.
Sacramento. California
April 5, 2001
__....... .
Fuutcttiz�e �* Prc(i;n•'mrn/
For Discussion Purpose, Only
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
Balance Sheets
As of December 31, 2000 and 1999
2000 1999
Assets
Plant Serving Consumers (Note 2) S 30,443,251 $ 28,489,459
Restricted Funds (Note 3) 6,532,026 6,761,273
Current Assets:
General fund (Note 3) 844,250 670,346
Amounts due from consumers (including amounts not yet billed of
$854,661 and $771,283 for 2000 and 1999, respectively), less
reserves for uncollectible amounts of$31,918 and $17,035 for
2000 and 1999, respectively. 1,922,859 2,270,332
Materials and supplies 598,823 567,746
Prepaid expenses and other current assets 270,337 227,385
Total current assets 3,636,269 3,735,809
Unamortized Financing Costs 920,090 1,007,981
Total assets S 41,531,636 S 39,994,522
Consumers' Funds and Obligations
Consumers' Funds Reinvested in the District $ 19,042,793 $ 18,069.243
Borrowed Funds, less portion due next year(Note 4) 17,028,328 17,564,465
Current Obligations:
Amounts due for power purchases 455,086 443,690
Amounts due for other purchases 982,007 951,414
Deposits collected to ensure payment for services 216,521 222,743
Interest due to creditors 215,628 164,284
Standby fees billed and due next year 105,115 120,219
Amounts due to employees for payroll 329,081 307,964
Borrowed funds due next year (Note 4) 786,240 698,176
Total current obligations 3,089,678 2,908,490
Funds Received for Construction of Facilities 2.370,837 1,452,324
Total consumers'funds and oblications S 41,531,636 $ 39,994,522
The accompanying notes are an integral part of these financial statements.
Tentative & PreLminory
For Discussion Purposes Only
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
Statements of Operations
For the Years Ended December 31, 2000 and 1999
2000 1999
Revenues:
Sales to consumers $13,240,137 $12,505,970
Consumer electric refund (880,924) (933,212)
Standby fees 220,598 239,985
Income from investments 498,825 448,058
Other 432,762 358,386
13,511,398 12,619,187
Expenses:
Power purchases (Note 1) 4,686,883 4,385,928
Operations and maintenance 2,829,925 2,334,320
Administrative and general 1,916,580 1,738,911
Consumer services 648,127 444,437
Interest 986,105 998,010
Use and deterioration of plant 1,470,228 1,572,182
12,537,848 11,473,788
Revenues In Excess of Expenses 973,550 1,145,399
Consumers'funds, December 31, 1999 18,069,243 16,923,844
Consumers'funds, December 31, 2000 $19,042,793 $18,069,243
The accompanying notes are an integral part of these financial statements.
Tentative �:r Preliminant
For Discussion Purposes Orrly
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
Statements of Cash Flows
For the Years Ended December 31, 2000 and 1999
2000 1999
Cash Flows From Operating Activities:
Revenues in excess of expenses S 973,550 S 1,145,399
Adjustments for operating items that did not use cash-
Use and deterioration of plant 1,448,832 1,572,182
Changes in operating assets and liabilities-
Amounts due from consumers, materials and supplies,
prepaid expenses and other assets 361,335 (472,820)
Amounts due for power purchases, other purchases,
deposits and.standby fees 72,007 560,660
Amounts due to employees for payroll 21,117 45,736
Net cash provided by operating activities 2,876,841 2,851,157
Cash Flows From Plant and Related Borrowing Activities:
Acquisition and construction of plant, net (3,402,624) (2,703,596)
Principal payments on borrowed funds (717,210) (657,566)
Cash from borrowing new funds 269,137 0
Change in funds received for construction of facilities 918,513 80,176
Net cash used in plant and related borrowing activities (2,932,184) (3,280,986)
Net decrease in cash and cash equivalents (55,343) (429,829)
Cash and Cash Equivalents, beginning of year 7,431,619 7,861,448
Cash and Cash Equivalents, end of year S 7,376,276 S 7,431,619
Supplemental Disclosure:
Cash paid for interest $ 989,626 $ 1,002,205
The accompanying notes are an integral part of these financial statements.
Tentative & Preliminary
For DiNcusciort Purpot es 01111'
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
Notes to Financial Statements
1. Summary of Significant Accounting Policies
a. Orcanization
The Truckee Donner Public Utility District(the District)was formed and operates under the State of
California Public Utility District Act. The District provides electric and water service to portions of
Nevada and Placer counties described as Truckee and Donner Lake. The electric and water service
operations are maintained and operated separately. 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, rent for shared
facilities and interest costs.
b. Basis of Accounting and Revenue Recognition
Governmental Accounting Standards Board (GASB) Statement No. 20 requires that governments'
proprietary activities apply all GASB pronouncements as well as the pronouncements of the Financial
Accounting Standards Board (FASB) and its predecessors issued on or before November 30, 1989,
unless those pronouncements conflict with or contradict GASB pronouncements. As allowed by
GASB Statement No. 20, the District has elected not to implement FASB Statements and
Interpretations issued after November 30, 1989.
c. Use of Estimates in the Preparation of Financial Statements
The preparation of financial statements in conformity with generally accepted accounting principles
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. Plant Serving Consumers
Plant is recorded at the amounts paid when purchased. New plant is recorded as an asset.
Maintenance and repair costs are expenses of operations. Consumer contributions are applied to
reduce the cost.
Depreciation (use and deterioration of plant) is calculated using the straight-line method over the
estimated useful lives of the assets. Average rates are used for asset groups. Gain or loss is
recorded on the sale or disposal of an asset.
........._. :..
Tentative & Preliminary
For Di.scussirra Purposes Dnic
e. Investments
During 1999, the District implemented GASB Statement No. 31. "Accounting and Financial Reporting
for Certain Investments and for External Investment Pools." This standard establishes fair value
standards for investments. In fiscal 2000, the difference between cost and fair market value was
578,815. In 1999, the difference between cost and fair market value was immaterial.
f. Materials and Supplies
Materials and supplies are recorded at the amounts paid when purchased.
g. Unamortized Financing Costs
The costs relating to borrowing funds are amortized over the lives of the related borrowings using the
effective interest method.
h. Funds Received for Construction of Facilities
The District receives fees for assistance with construction. The District records these fees as
liabilities until they are used for construction costs or refunded if required by law.
I. Revenues
Revenues are recorded as meters are read on a cycle basis throughout each month for electric and
commercial water. Income that the District has earned through investing its cash not needed currently
is reflected as revenue when the District has earned it. Prior to December 31, 2000, the District had
authorized an 11% credit on all consumer electric bills; however,effective January 1,2001, this credit
has been discontinued.
j. Power Purchases
The District purchases all of its power from third party sources. In 2000 and 1999, Idaho Power
supplied almost 100% of power purchased. The contract to purchase power from Idaho Power was
entered into in July 1997, Subsequently, the Board of Directors have approved three amendments
that extend the contract through December 2009. The District is contracted to purchase power at a
fixed price beginning January 2001 though December 2009. Between 2002 and 2009, the District's
purchase power contracts contain minimum purchase obligations of 25 megawatts (MW) per day at a
price of$721MW. At this time, the District has projected a large surplus during their non-peak season
and intends to put their excess power on the market to offset rising power costs during peak times.
However, the possibility exists that the District will be unable to use or sell the total 25MW per day to
which it is committed. Beginning in 2001, the District will consider whether they will raise electric rates
to cover the increasing price of wholesale power. Purchased power contracts are filed with the
Federal Energy Regulatory Commission (FERC).
2
Tentative & Preliminary
For Discussion Purposes Dnly-
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 and dispatch services from Northern California Power Agency. These
purchases represented 14% of total purchased power costs in 2000 and 1999.
k. Income Taxes
The District is exempt from payment of federal and state income taxes.
I. Recent Accounting Pronouncement
In June 1999, GASB issued Statement No. 34, "Basic Financial Statements -and Management's
Discussion and Analysis -for State and Local Governments." This statement establishes accounting
and financial reporting standards for general purpose external financial reports for governmental
entities. The anticipated results of thi§ statement will be the inclusion of a Management's Discussion
and Analysis section and certain formatting changes to the basic structure of the financial statements.
GASB Statement No. 34 is effective for the District beginning in fiscal year 2003. Given that this
statement primarily impacts financial statement disclosures, the District does not anticipate a material
impact to the financial position or operations of the District as a result of implementing this standard.
2. Plant Serving Consumers
Plant consisted of the following at December 31, 2000 and 1999:
2000 1999
Electric distribution facilities S 12,429,894 S 11,372,497
Water distribution facilities 19,538,246 19,224,264
General plant 8,409,304 7,687,178
40,377,444 38,283,939
Less: accumulated depreciation (13,460,425) (12,011,593)
26,917,019 26,272,346
Construction work in progress 3,526,232 2,217,113
S 30,443,251 $ 28,489,459
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. Future rate increases may be necessary to pay
for these replacements. Generally accepted accounting principles applicable to utilities do not allow
contributed plant assets to be depreciated by the District.
3
Tew ative & Prefittrinaa7-
For Di%cu.ssion Purpazvec Only'
3. General and Restricted Funds
The District maintains funds pursuant to rules of the Board and commitments made when borrowing
funds. A description of general and restricted funds follows:
a. General Funds
General funds are derived from the operations of the District and are unrestricted. The 1996
Certificates of Participation require the water general fund to be classified as a restricted fund. At
December 31, 2000 and 1999, the water general fund balance was zero.
b. Facilities Fees
The District charges facilities fees to applicants for new service to cover the costs of infrastructure
needed to meet their systems demand. These fees are held as restricted funds as required by Board
rules.
c. 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 are due. A reserve fund is set aside for the highest
annual principal and interest payment over the life of the borrowed amount. All of these reserve funds
are held by BNY Western Trust Company(see Note 4).
J. Building Fund
In compliance with Board rules, the District maintains a building fund to help pay for the interest and
principal of the borrowed funds used for the District office complex. During 1996, the Board of
Directors authorized a loan from the restricted electric and water building funds to the water general
fund to fund the construction of a water pipeline. The original loan amounts were $622,284 and
5500,000 from the restricted electric and water building funds, respectively. During 2000 and 1999,
the water general fund paid off the entire balance owed to the electric building fund and water building
fund, respectively..
e. Storm Damage Fund
The District maintains a restricted fund to provide for storm damages that may occur in the future.
f. Electric Rate Reserve
In compliance with Board rules, the District has created an electric rate stabilization fund in
anticipation of future costs. The Board can make transfers from this fund to the electric general fund
when demands on the electric general fund exceed the fund balance in lieu of increasing electric
rates.
a
Tentative & Prelirninarr
For Discussion Purpusc<c Onlc
g. Certificates of Participation: Water
The terms of the Water Division's Certificates of Participation require several restricted funds. These
funds are to provide for payment of principal and interest if no other monies of the District are
available. A reserve fund is set aside for principal and interest payments as they become due. All
revenues received by the District's water operations and not used for normal operations must be
restricted.
The Water Division's Certificates of Participation debt funds are held by US Trust, with the exception
of the general revenue fund, which is held by the District (see Note 4).
In. Department of Water Resources (DWR} Prop 55 Reserve Fund
Regulations relating to the California Safe Drinking Water Bond Law of 1986 construction loan require
the accumulation of a reserve fund as security for each principal and interest ,payment as they are
cue. Annuat payments into the fund are required for each of the first ten years beginning April 1,
1996. The total reserve fund will equal two semi-annual payments. These funds will be set aside for
the life of the borrowed amount. All of the reserve funds are held by the State of California Local
Agency Investment Fund.
i. Reserve for Future Meters
Prior to 1992, connection fees charged to applicants for water service included an amount which was
applied to a restricted fund to offset the cost of future metering. As meters are installed, restricted
funds are transferred to the general fund to repay the general fund for meter costs. During 1996, the
Board of Directors authorized a loan from the restricted reserve for future meters fund to the water
general fund to fund the construction of a water pipeline. The original loan amount was $300,000.
During 1999, the water general fund paid off the entire balance owed to the restricted reserve for
future meters fund.
During the year, the water department's reserve for future meters fund loaned funds to the water
department's general fund. At December 31, 2000, the amount outstanding under the loan was
$567,468.
j. Tahoe Donner Water System Fund
In compliance with Board rules, the District maintains a restricted fund for Tahoe Donner Water
System improvements. In October 1999, the Board of Directors authorized this fund to reimburse the
water general fund $500,016 for improvements paid by the general fund.
k. Preoaid Connection Fees
In compliance with Board rules, the District has set aside funds received as prepaid connection fees.
The funds will be used to cover the cost of the installation of water services.
5
Tentative & Prelirninary
For Diseu,"ion Purposes Onh.
I. Other(Area Improvement Fundsl
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.
At December 31, 2000 and 1999, the balances of the general and restricted funds were as follows:
2000 1999
Electric general fund S 844,250 S 670,346
Restricted funds:
Electric-
Facilities fees 170,265 536,039
Certificates of Participation 294,412 294,604
Building fund 1,338,414 667,494
Storm damage fund 289,604 269,208
Electric rate reserve 641,790 596,584
Restricted funds—electric 2,734,485 2,363,929
Water-
Facilities fees 1,429,812 1,513,135
Certificates of Participation 921,767 962,521
DWR-Prop 55 reserve fund 157,067 123,526
Building fund 495,448 522,649
Reserve for future meters 462,350 966,462
Tahoe Donner water system fund 112,554 104,659
Prepaid connection fees 75,888 71,761
Other(area improvement funds) 142,655 132,631
Restricted funds—water 3,797,541 4,397,344
Total restricted funds 6,532,026 6,761,273
Total general and restricted funds S 7,376,276 S 7,431,619
The District's investments are categorized to provide an indication of the level of custodial risk assumed
by the District at December 31, 2000. Category 1 includes investments that are insured or registered, or
for which the securities are held by the District or its agent in the District's name. Category 2 includes
uninsured and unregistered investments for which the securities are held by brokers or dealers, or by
their trust department or agent, in the District's name. Category 3 includes uninsured and unregistered
investments for which the securities are held by brokers or dealers, or by their trust department or
agent, but not in the District's name. At December 31, 2000, the District did not hold investments which
would be included in Category 2 or 3. Cash and investments are considered risk category one under
the guidelines of GASB Statement No. 3.
6
Tentative & Prelhninm•r
For Discussion Purposes OnlY
2000 1999
Cash and cash equivalents:
Cash S (58,754) S 161,059
State of California Local Agency Investment Fund,
at market value 6,218,851 6,013,435
BNY Western Trust Company Investment Fund,
at cost which approximates market value 294,412 294,604
US Trust Company Investment Fund,
at cost which approximates market value 921,767 962,521
$ 7,376.276 $ 7,431,619
4. Borrowed Funds:
Long-term debt consisted of the following at December 31, 2000 and 1999:
2000 1999
Certificates of Participation—Electric, interest rates of
2.75% to 5.375%, annual principal payments of
$125,000 beginning in 1994 increasing each year to
$250,000 when finally due in 2012. S 2,335,000 S 2,475,000
Certificates of Participation—Water, interest rates of
5.25% to 5.4%, annual principal payments of$235,000
beginning in 1999 increasing each year to$745,000
when finally due in 2021. 9,965,000 10,220,000
Department of Water Resources, interest rate of 3.18%s,
semiannual interest payments due through 2021, and
semiannual principal payments of$153,094 beginning
in 1996 and continuing through 2021. 1 4,591,134 4,747,818
Installment loans, interest rates ranging from 5.4% to
6.23%, various payment terms and due dates, secured
by equipment. 986,274 889,316
17,877,408 18,332,134
Less: borrowed funds due next year (786,240) (698,176)
Less: unamortized cost of borrowed funds (62,840) (69,493)
$17,028,328 $17,564,465
7
Tentative & Prelirninarr
For Di,%cu_s_sion PurPaces Oniy.
During 1993, Truckee Donner Public Utility District Financing Corporation issued 53,245,000 of
Certificates of Participation to refinance the construction loan of a new office and warehouse facility for the
District. The District signed agreements with the financing corporation so that ownership of the property is
held by the financing corporation as collateral. The District is required to make payments equal to the
debt service on the Certificates. Upon final payment of the Certificates, ownership of the property will
revert to the District. The terms of the new Certificates call for lease payments to be made only from the
net revenues of the Electric Division. These revenues are required to be at least equal to 110% of the
debt service for each year. The outstanding balance on these Certificates was $2,335,000 and
52,475,000 at December 31, 2000 and 1999, respectively.
During 1996, Truckee Donner Public Utility District Financing Corporation issued $10,905,000 of
Certificates of Participation to refund Certificates issued in 1991. The 1991 Certificates were 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. These
revenues are required to be at least equal to 110% of the debt service for each year. The outstanding
balance on these Certificates was 59,965,000 and $10,220,000 at December 31, 2000 and 1999,
respectively.
Scheduled principal payments on borrowed funds are:
2001 S 786,240
2002 767,451
2003 721,257
2004 766,394
Thereafter 14,836,066
S 17,877.408
5. Emoloeee Benefit Plans
a. Pension Plan
The District contributes to its own pension plan for almost all District employees who have at least one
year of service. The District's payroll for employees covered by the plan for the years ended
December 31, 2000 and 1999,was $1,428,216 and $1,513,547, respectively.
The plan provides specific benefits to employees at retirement. Benefits vest to participants at the rate
of 10% per year of service for the first four years and 20% for years five through seven. Employees
who retire at or after age 65 with ten years of credited service are entitled to receive monthly benefits
equal to a set percentage of the individual's average monthly compensation. Employees who retire
with 20 years of service will receive 40% of their average monthly compensation. Benefits are reduced
pro rate for less than 20 years of credited service, and increased by 0.5% of average monthly
compensation for each year of service in excess of 20 years. The plan also provides for death,
disability and early retirement benefits.
8
Tentative & Preliminai-r
Far Di+custion Purpouts Only
During the years ended December 31, 2000 and 1999, $344,012 and $180.680, respectively, was
paid to former participants. There were no Participants receiving benefits as of December 31, 2000.
The plan requires the District to make adequate contributions so that enough funds are available to
pay benefits to employees when due. The actuarial valuations for the plan indicated that contributions
of$0 and $25,176 were necessary for 2000 and 1999, respectively, to increase the plan's
accumulated assets to an amount sufficient to provide for the normal cost of the plan.
The District follows GASB Statement No. 27, "Accounting for Pensions by State and Local
Governmental Employers." The required contributions as of December 31, 2000 and 1999 were
computed as part of an actuarial valuation. Significant actuarial assumptions include:
• A rate of return on the investment of present and future assets of 7%for 2000 and 1999.
• Salaries are assumed to increase at a rate of 2.5% for 2000 and 1999,
• Prior to retirement age, no employee turnover is assumed.
b. Funding Status
The amounts shown as unfunded actuarial accrued liability (UAAL) are a standardized disclosure
measure of the present value of pension benefits estimated to be payable in the future as a result of
employee service to date. The UAAL is adjusted for the effect of projected salary increases. The
measures are intended to help users assess the funding status of the Plan on a going concern basis,
assess progress made in accumulating sufficient assets to pay benefits when due, and make
comparisons among plans. The measures are the actuarial present value of credited projected
benefits and are independent of the funding methods used to determine annual required contributions
to the Plans. The following is a funding schedule for the Truckee Donner Public Utility District Defined
Benefit Plan:
Actuarial Actuarial Value Actuarial Accrued Funded
Valuation Date of Assets Liability(AAL) (Unfunded)AAL Funded Ratio
12/31/98 $ 1,813,936 $ 1,542,564 $ 271,372 118%
12/31/99 $ 1,887,629 $ 1,668,362 $ 219,267 113%
12/31/00 $ 1,429,265 $ 1,660,872 $ (231,607) 86%
9
Tentative & Preliminary
For Discussion Purposes On!}'
c. Deferred Compensation Plan
The District maintains a deferred compensation plan (the Plan)for certain of its employees. The
amount deferred and held in trust aggregated $2,570,494 and $2,524,546 at December 31, 2000 and
1999, respectively. Prior to 1997, all amounts of compensation deferred under the Plan, all property
and rights purchased with those amounts, and all income attributable to those amounts, property or
rights were (until paid or made available to the employee or other beneficiary) solely the property and
rights of the District(without being restricted to the provisions of benefits under the Plan), subject only
to the claims of the District's general creditors. During 1997, due to changes in the laws governing
deferred compensation plans,the District placed the Plan's assets and income into a trust for the
exclusive benefit of the participants and their beneficiaries. The District has no liability for losses
under the Plan but does have the duty of due care that would be required of an ordinary prudent
investor. In accordance with GASB Statement No. 32, the District has removed the Plan's assets and
corresponding liability from the balance sheet.
d. 401(a) Plans
During the year, the Board of Directors approved a 401(a)defined contribution plan for District
management(effective August 1,2000)and bargaining unit employees (effective January 1, 2000).
Contributions are made by the District on the employees'behalf and employees are immediately
vested in the Plan. The District will contribute 10% of earnings on behalf of management and exempt
employees as part of the management 401(a)plan, and 3%of earnings for employees in the
bargaining unit, increasing to 4%in 2001 and 5% in 2002. At December 31, 2000,the Plan assets
were $36,432 and $57,486 for the management and bargaining unit, respectively.
The District has no liability for losses under the Plan but does have the duty of due care that would be
required of an ordinary prudent investor. In accordance with GASB Statement No. 32, the District has
not booked the Plans'assets and corresponding liability(if any)on the balance sheet.
6. Contingencies
The District is one of a group of approximately 50 utilities involved in a matter relating to the disposal of
small amounts of PCB wastes at two sites. The clean up of the two sites is under the federal EPA
Superfund Program. Based upon information currently available, it is likely that the District will have to
contribute to the cost of the clean up of these sites. The actual amount of the District's potential liability
can not be determined until accurate estimates of clean up costs are received. It is possible that the
District's share of such costs could exceed $25,000. Management believes that the ultimate resolution of
this matter will not have a material effect upon the financial position of the District.
10
Exhibit I
Tentative a preliminary
For Discussion Purposes Only
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
Divisional Combining Balance Sheets
As of December 31.2000 and 1999
2000
Electric
-
Oeprations_ Water Operations Eliminations Total _19911Tolal___
M IBItAt
Plant Serving Consumers $14.588.566 $ 15,854885 $30,443,251 $28.480.459
Restricted Funds 2.734,484 3,797,542 6.532,026 6.761.273
Current Assets:
General fund 844.250 0 844,250 670,346
Amounts due 6om consumers 1,475,935 446.024 1.921.859 2,270,332
Materials and supp les 457,299 141,524 598,823 567,746
Prepaid expenses and other current assets 168,959 101,378 270,337 227.385
Total current assets 2,948,443 689,826 3,636,269 3,735800
Unamortized Financing Costs 109.902 YWJ28 _-_920,090 1007,981
Total assets $20,489,455 $21,062,181 $41 531,836 $39,994,522
Consumers_Fyww(s and Odigatbns
Consumers'Furls Reinvested In the District $ 14,671,296 $ 4,471,497 $ 19042.793 S 18,060.243
Borrowed Funds,less portion due next year 2.798,248 14,230,060 17.028.328 17 564,465
Current Obligations:
Amounts due for power quchas¢g 455.006 0 455,086 443,690
Amounts due for other purchases 580,160 40/,857 982.007 95t,414
Deposits"acted to ensure payment for services 193,688 22,653 210,521 222,743
Interest due to creditors 57,254 168,374 215.620 164,284
Standby fees billed and due next year 13.875 91.240 105,115 120,219
Amounts due to employees for payroll 304,120 24061 329.081 307,964
Borrowed funds due next year 454,082 332,158 _766.240 698,176
Total current obligations 2,058,435 1.031,243 3,089878 2,908.490
Funds Received for Construction of Faciilies 1041,476 1,329.361 2,370,837 1.452,324
Total consumers'funds and obligations $20,469,455 $21.062.181 $41,531.636 $39,994.522
Exhibit 11
tentative 8 Prop rtlnaq
For Discussion Purposes Only
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
Divisional Combining Statements of Operations
I'm the Years Ended December 31,20M and 1999
2000
Electric
_Opera�rotions_ Eliminations Total-1999 Total_
Revenues:
Sales to consumers $ 9,334.548 $ 3.905,589 $ 13.240,137 $ 12,505,970
Consumer electric refund (931,032) 0 5Q108 (880.924) (933,212)
Interdivislonai sales 787,366 898 (788,264) 0 0
Standby lees 28,057 191,641 220,598 239.985
Income be...investments 239,045 308,572 (46,792) 498,825 448.058
Other 258,500 174.262 432,762 358,386
9,717,384 4,578,962 (784948) 13,511,398 12,619,187
Expenses:
Power Purchases 4,683,112 547.097 (543,326) 4,686.883 4.385,928
Operations and maintenance 1,400.439 1,369,488 2,829,925 2,334,320
Administrative and general 1.334.514 776,896 (194,830) 1.916.680 1,738,911
Consumer services 504,916 143,211 648,127 444,437
Interest 184,074 848,823 (46,762) 986.105 908010
Use and deterioration of plant 765,322 684,908 1,470,228 1,572,182
8,952,377 4,370419 (784,948) 12,537,848 11.473.788
Revenues in Excess of Expenses 765.007 208,543 973,550 1.145,399
Consumers'funds.December 31,1999 13,808,289 4.262,954 18,069.243 16.923,844
Consumers'Ponds,December 31.2000 $ 14,571.296 $ 4,471.491 $ 19,042,793 $ 18 069,243
Exhibit III
Tentative & Preliminary
ion Purposes Only
For Discuss p y
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
Comparative Statements of Electric Operations
For the Years Ended December 31, 2000 and 1999
2000 1999
Revenues:
Sales to consumers $ 9,334,548 $ 9,069,361
Consumer electric refund (931,032) (991,001)
Interdivisional sales 787,366 799,165
Standby fees 28,957 31,259
Income from investments 239,045 224,115
Other 258,500 224,398
9,717,384 9,357,297
Expenses:
Power purchases 4,683,112 4,385,928
Operations and maintenance 1,460,439 1,218,950
Administrative and general 1,334,514 1,266,990
Consumer services 504,916 351,095
Interest 184,074 215,729
Use and deterioration of plant 785,322 893,275
8,952,337 8,331,967
Revenues in Excess of Expenses $ 765,007 $ 1,025,330
Exhibit IV
Tentative & Preliminary
For Discussion Purposes Only
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
Comparative Statements of Water Operations
For the Years Ended December 31, 2000 and 1999
2000 1999
Revenues:
Sales to consumers $ 3,905,589 $ 3,436,609
Interdivisional sales 898 876
Standby fees 191,641 208,726
Income from investments 306,572 284,174
Other 174,262 133,988
4,578,962 4,064,373
Expenses:
Power purchases 547,097 520,216
Operations and maintenance 1,369,486 1,115,370
Administrative and general 776,896 693,957
Consumer services 143,211 93,342
Interest 848,823 842,512
Use and deterioration of plant 684,906 678,907
4,370,419 3,944,304
Revenues in Excess of Expenses $ 208,543 S 120,069