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Financing Corp Agenda Packet 2025_0604
Board of Directors General Manager Jeff Bender All TRUCKEE DONNERBrian C. Wright Christa Finn Public Utility District Executive Leadership Tony Laliotis rpFChad J. Reed Courtney Murrell Jared Carpenter Steve Randall FINANCE CORPORATION BOARD Mike Swanson MEETING Michael Salmon 11570 DONNER PASS ROAD, TRUCKEE Steven Poncelet 6:00 PM, Wednesday, June 4, 2025 Scott Crow AGENDA Jillian Steward Martina Rochefort 1. Call to Order 2. Roll Call 3. Changes to the agenda 4. Public Comment— This is time set aside for the public to address the Board on any matter not on the agenda. Testimony related to any agendized matter should be addressed at the time that that item is considered. (The public may comment on any subject that is not on the agenda. Each speaker will be limited to three minutes, but speaker time may be reduced at the discretion of the Board President if there are a large number of speakers on any given subject.) ACTION ITEMS 5. Consider Acceptance of the 2024 Annual Report and 2024 Audited Financial Statements to Comply with Continuing Disclosure Certificate Requirements of the 2015 Refunding Water Certificates of Participation. Acceptance of the 2024 Annual Disclosure Report and 2024 Audited Financial Statements to comport with Continuing Disclosure Certificate requirements of the 2015 Refunding Water Certificates of Participation 6. Consider Approval of Meeting Minutes Approval of Finance Corporation Meeting Minutes of January 15, 2025 ADJOURNMENT The agenda is available for review at the TDPUD Administrative Office and the District's internet website. Posted on Friday, May 30, 2025. Martina Rochefort, District Clerk a Mh SPECIAL HISIRICT Pi��L�F.. Q IrnnERSHIPFOON�RTIOH 11570 Donner Pass Road,Truckee,CA 96161 Phone-530-587-3896-www.tdpud.org Page 1 of 114 A copy of the agenda packet is available for public review, during normal business hours, at the District Administrative Office located at 11570 Donner Pass Road. Public participation is encouraged. The meeting location is accessible to people with disabilities. Every reasonable effort will be made to accommodate participation of the disabled in all of the Districts public meetings. If particular accommodations for the disabled are needed (i.e. disability-related aids, or other services), please contact the District Clerk at (530) 582-3923 or martinar@tdpud.org, at least 24 hours in advance of the meeting. Any person with a disability may submit a request for reasonable modification or accommodation to the above-described means for accessing and offering comment at the meeting to Martina Rochefort, District Clerk, or email at martinar@tdpud.org, who will swiftly resolve such a request. Page 2 of 114 AGENDA ITEM #5 r P, -I Public Utility District MEETING DATE: June 4, 2025 TO: Board of Directors FROM: Michael Salmon, Chief Financial Officer SUBJECT: Consider Acceptance of the 2024 Annual Report and 2024 Audited Financial Statements to Comply with Continuing Disclosure Certificate Requirements of the 2015 Refunding Water Certificates of Participation. APPROVED BY: Brian C. Wright, General Manager RECOMMENDATION: Acceptance of the 2024 Annual Disclosure Report and 2024 Audited Financial Statements to comport with Continuing Disclosure Certificate requirements of the 2015 Refunding Water Certificates of Participation BACKGROUND: The 2015 Refunding Water Certificates of Participation debt issuance agreement requires certain annual continuing disclosures. The Truckee Donner Public Utility District Financing Corporation board reviews and approves the annual disclosure report and accepts the most recent audited financial statements of the Truckee Donner Public Utility District. Post approval and acceptance, both the annual disclosure report and audited financial statements are filed with the debt trustee in accordance with the continuing disclosure requirements of the debt issuance agreement. ANALYSIS AND BODY: Provided are the 2024 annual disclosure report (attachment 1) and 2024 audited financial statements (attachment 2). GOALS AND OBJECTIVES: District Code 1.05.020 Objectives: 1. Responsibly serve the public. 6. Manage the District in an effective, efficient and fiscally responsible manner. District Code 1.05.030 Goals: 1. Manage for Financial Stability and Resiliency 3. Engage with our customers and communities in a welcoming and transparent way to identify opportunities. Page 1 of 2 Page 3 of 114 FISCAL IMPACT: There is no fiscal impact associated with this action. ATTACHMENTS: 1. 2024 Annual Report District Pipeline 2. 2024 ACFR Final Page 2 of 2 Page 4 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT CERTIFICATES OF PARTICIPATION (WATER SYSTEM IMPROVEMENT PROJECTS) SERIES 2015 - REFUNDED PORTION ANNUAL REPORT 12/31/2024 Page 5 of 114 CONTINUING DISCLOSURE CERTIFICATE: 4. Content of Annual Reports (a)The audited financial statements electronically forwarded to Bank of New York on 6/5/2025. (b)The principal amount of refunded Certificates outstanding was $8,690,000 as of December 31, 2024. (c) The Reserve is no longer required due to the 2015 refunding. (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 30 in the 2015 Refunding of the Official Statement. (ii) "TRUCKEE DONNER PUBLIC UTILITY DISTRICT - Historic Sales Revenue" on page 30 in the 2015 Refunding of the Official Statement. (iii) "TRUCKEE DONNER PUBLIC UTILITY DISTRICT - Largest Customers" on page 32 in the 2015 Refunding of the Official Statement. (iv) "TRUCKEE DONNER PUBLIC UTILITY DISTRICT - Historic Operating Results of Debt Service Coverage" on page 42 in the 2015 Refunding of the Official Statement. Page 6 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT Historic Water Production and Accounts Total Production Year Avg. Year Avg. (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 2,433 2.61% 641 -0.77% 11,801 3.19% 2008 2,304 -5.30% 656 2.34% 11,843 0.36% 2009 2,056 -10.76% 670 2.13% 11,900 0.48% 2010 1,786 -13.13% 695 3.73% 11,876 -0.20% 2011 1,727 -3.31% 709 2.01% 11,711 -1.39% 2012 1,857 7.53% 706 -0.42% 11,753 0.36% 2013 1,846 -0.58% 706 0.00% 11,809 0.48% 2014 1,682 -8.88% 699 -0.99% 11,915 0.90% 2015 1,381 -17.90% 704 0.72% 12,012 0.81% 2016 1,460 5.72% 706 0.28% 12,121 0.91% 2017 1,487 1.85% 706 0.00% 12,218 0.80% 2018 1,579 6.19% 709 0.42% 12,317 0.81% 2019 1,503 -4.81% 710 0.14% 12,416 0.80% 2020 1,713 13.97% 748 5.35% 12,505 0.72% 2021 1,715 0.12% 765 2.27% 12,635 1.04% 2022 1,556 -9.27% 772 0.87% 12,754 0.94% 2023 1,497 -3.79% 777 0.69% 12,845 0.71% 2024 1,550 3.54% 782 0.64% 12,907 0.48% Page 7 of 114 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 6,254,756 8.44% 825,109 21.62% 2005 6,609,311 5.67% 844,812 2.39% 2006 7,160,485 8.34% 991,941 17.42% 2007 7,875,829 9.99% 1,165,511 17.50% 2008 8,459,823 7.42% 1,179,157 1.17% 2009 8,577,396 1.39% 1,137,447 -3.54% 2010 8,973,220 4.61% 1,184,084 4.10% 2011 8,731,670 -2.69% 1,227,533 3.67% 2012 8,492,037 -2.74% 1,374,376 11.96% 2013 8,508,607 0.20% 1,338,298 -2.63% 2014 8,742,143 2.74% 1,328,800 -0.71% 2015 9,014,695 3.12% 1,230,259 -7.42% 2016 9,783,533 8.53% 1,407,446 14.40% 2017 10,383,019 6.13% 1,464,514 4.05% 2018 10,819,427 4.20% 1,558,775 6.44% 2019 11,190,154 3.43% 1,577,004 1.17% 2020 11,812,092 5.56% 1,691,596 7.27% 2021 13,155,186 11.37% 1,666,783 -1.47% 2022 14,277,674 8.53% 1,886,734 13.20% 2023 15,366,879 7.63% 1,900,664 0.74% 2024 16,909,424 10.04% 2,220,556 16.83% Page 8 of 114 TRUCKEE DONNER PUBLIC UTILTIY DISTRICT Largest Water Customers-Fiscal Year 2024 Customer Water Usage (1) Annual Payments TAHOE MOUNTAIN CLUB (Two golf courses and recreation facilities) 179,872,392 $224,275 COYOTE MOON GOLF COURSE 73,464,109 73,897 TAHOE DONNER ASSOCIATION (one golf course,F&B,and recreation facilites) 34,191,949 217,229 TRUCKEE DONNER RECREATION AND PARK DISTRICT 28,986,568 79,110 TAHOE TRUCKEE UNIFIED SCHOOL DISTRICT 16,749,309 54,679 TAHOE FOREST HOSPITAL 13,853,400 61,814 VILLAGE BASECAMP,LLC(Coachland Mobile Home Park) 12,916,561 32,045 DONNER MEMORIAL STATE PARKS&REC (campground and visitors center) 11,879,388 34,738 VILLAGE GREEN MOBILE HOME PARK 10,192,493 29,968 OREGON INVESTORS INC.(apartment community) 9,670,114 50,509 TOP TEN TOTAL 391,776,283 $858,264 TOTAL SYSTEM 1,381,955,755 $19,097,945 28.35% 4.49% Gallons Page 9 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT Historic Water Operating Results&Debt Service Coverage Fiscal Year Ending December 31 2020 2021 2022 2023 2024 Revenues Sales to Customers $ 13,536,058 $ 14,950,899 $ 16,257,163 $ 17,577,924 $ 19,097,945 Standby Fees 114,800 106,680 105,612 99,738 99,441 Investment Income(') 117,113 40,042 360,989 735,165 672,000 Facilites Fees(2) 814,776 865,892 679,180 480,925 458,315 Connection Fees(2)(3) 167,517 314,442 244,299 151,965 148,722 Other(4) 355,999 361,831 340,679 353,902 381,933 Total Revenues $ 15,106,262 $ 16,639,786 $ 17,987,922 $ 19,399,619 $ 20,858,356 Operating&Maintenance Expenses(7) Operations and Maintenance $ 5,821,270 $ 5,789,587 $ 6,280,455 $ 8,080,072 $ 8,398,541 Administration and General 3,036,681 3,145,900 3,072,381 3,824,902 4,198,757 Customer Services 740,606 800,994 783,839 975,497 1,159,242 Total Operations&Maintenance Expenses $ 9,598,556 $ 9,736,481 $ 10,136,675 $ 12,880,471 $ 13,756,540 Net Revenues $ 5,507,706 $ 6,903,305 $ 7,851,247 $ 6,519,148 $ 7,101,816 Parity Debt Service(5) 2006 Installment Purchase Agreement $ 2,721,471 $ 1,704,807 $ 1,033,938 $ 1,033,738 $ 1,032,538 DWR Proposition 55 Loan 306,481 153,241 - - - Water System COP,Series 2022A - - 271,406 953,750 952,250 Interest on Parity Debt Service Reserve Funds (4,166) (1,044) (6,793) (22,656) (24,418) Total Parity Debt Service $ 3,023,786 $ 1,857,004 $ 1,298,551 $ 1,964,832 $ 1,960,370 Parity Debt Service Coverage 1.82 3.72 6.05 3.32 3.62 Net Revenues Remaining for Subordinate Debt $ 2,483,920 $ 5,046,301 $ 6,552,696 $ 4,554,316 $ 5,141,446 Service Subordinate Debt Service(5)(6) $ - $ - $ - $ - $ - Water portion of Pension Obligation Bonds($> $ 361,860 $ 384,430 $ 193,430 $ - $ - Parity and Subordinate Debt Service Coverage 1.63 3.08 5.26 3.32 3.62 Balance Available for Capital Projects or Other $ 2,122,060 $ 4,661,871 $ 6,359,266 $ 4,554,316 $ 5,141,446 Purposes NOTES (1) Excludes interest component of Donner Lake Assessment,interest on parity debt service reserve funds(a DS offset)and unrealized gains/losses book-to-market adjustments(non-cash) (2) Appears as component of 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) Excludes Depreciation Expense(non-cash) (8) Water contribution towards Electric's Pension Obligation Sidefund debt service obligation Page 10 of 114 rr 1- TRUCKEE DONNER PUBLIC UT ITY IST T, TRUCKEE, CALIFORNI ANNUAL COMPR E FIN NCIA REPO T t FOR T L YEAR ENDED DECE BER 3 , 202 and 23 I i ON r i 4 •L �- � `. 9 e ' �-�'�'� ice-.-- � ��`q"• ,U r � PREP A BY THEE ACCOU NG AND ��. FINANCE ARTMENT 1, - TRUCKEE DONNER - Public Utility District TheMissionof the Truckee Donner Public is to provide reliable, high-quality utility and customer services while managing District resources in a safe, open, responsible, and environmentally sound manner at the lowest practical cost. M. 1 6; Truckee Donner Public Utility District's AL Safety — Safety is our way Safety is our first priority. We are committed to the health and safety of our employees, customers, and community through the continuous practice of prevention, education, and awareness. Communication — Send and receive Foster positive engagement by creating a strong communicative environment that includes; active listening, 1 n y, clear, concise, and timely transmission of e information, with empathy I ect. This also includes providing and receiving honest feedback. Integrity — Hon?(and ethica Highest quality service to the blic and employees, utilizing honesty and ethics as our base principles. Acco ntability — Own it A str erforming team wit he obligation and willingness to accept responsibility for our c ons aintaining a se of humility and inclusiveness. Time es Meet our goal d co itments A hig lye tive agency and spons ve organization meeting goals and expectations in a timely manne Mission and Values of District, as adopted by Board of Directors May 19, 2021 Page 12 Page • Table of Contents Introductory Section Letterof Transmittal...............................................................................................5 Organization Chart, Board of Directors and Appointed Officials......................................10 GFOA Certificate of Achievement for Excellence in Financial Reporting..........................11 Financial Section Report of Independent Auditors...............................................................................14 Management's Discussion and Analysis...................................................................17 Financial Statements............................................................................................23 Consolidated Statements of Net Position.......................................................24 Consolidated Statements of Revenues, Expenses and Changes in Net Position....26 Consolidated Statements of Cash Flows.......................................................27 Notes to Financial Statements ................................................................................29 Required Supplementary Information.......................................................................72 Cost Sharing Defined Benefit Pension Plans..................................................73 Schedule of Changes in Net OPEB Liability and Related Ratios.........................75 Supplementary Information.....................................................................................79 Consolidating Statement of Net Position........................................................80 Consolidating Statement of Revenues, Expenses and Changes in Net Position.....82 Consolidating Statement of Cash Flows .......................................................84 Statistical Section Statistical Section Objectives and Index....................................................................86 Financial Trends Consolidated Statements of Revenues, Expenses, and Changes in Net Position...88 Net Position by Component and Segment.......................................................89 Revenue Capacity Historical Customer Mix and Rates................................................................90 Average Residential Bill Comparison.............................................................91 Ten Largest Customers and Sales Mix..........................................................92 Debt Capacity DebtCoverage..........................................................................................93 Total Long-Term Debt per Customer and Ratios.............................................94 Demographic and Economic Information Population, Income, Labor Force and Unemployment.......................................95 Principal employers....................................................................................96 Operating Information Number of Employees, Customers, Demand Volumes, and Capital Assets ...........97 Capital Assets by Function..........................................................................98 Base Heating and Cooling Degree Days ........................................................99 Page 13 Page 13 of 114 INTRODUCTORY SECTION Y '� � - _ -`—�i. __-^ems. - - ■ ..�.` �rtx-,w�r.�"'�"'�• ly4�F�'+�w� r'�+�"�'"!�+w+ .. �, "�"�� y„� L+�`,: '�+�f' s J. TRUCKEE DONNER ,10. _.. t PUBLIC UTILITY DISTRICT F Photo by Tim Erskine ©Erskine Creative Photography Page 4 Page 14 of 114 TRUCKEE DONNER Public Utility District General Manager Brian C.Wright May 28, 2025 Executive Dear Board of Directors and Customers of the District, Leadership Team The staff of Truckee Donner Public Utility District(District)is pleased to submit to you the Annual Scott Crow Comprehensive Financial Report (Report)for the year ended December 31, 2024. The Report IT Director/CIO provides an assessment of the District's financial condition, informs readers about the District's Assistant General Manager services, gives details of infrastructure replacement projects, discusses current issues and provides financial and demographic trend information. We are proud to announce the 2023 Chad J.Reed Report was awarded a Certificate of Achievement of Excellence in Financial Reporting by the Water Utility Director Government Finance Officers Association (GFOA). This is the 4t" consecutive year for this Jared Carpenter award which is an excellent example of financial transparency for the District. We will be Director of Electric submitting this 2024 Report for award evaluation. Power Supply Mike Swanson The Report consists of management's representations of the finances and other information of Director of Electric and for the District. Consequently, management assumes full responsibility for the Engineering and completeness and reliability of all the information presented in this report. To provide a Operations reasonable basis for making these representations, management has established internal Steven Poncelet controls that are designed to protect the District's assets from loss, theft, or misuse and to PIO&Strategic Affairs compile sufficient reliable information to prepare the District's financial statements in conformity Director with Generally Accepted Accounting Principles (GAAP). The cost of internal controls should not outweigh their benefits. Therefore, the District's comprehensive framework of internal controls Michael Salmon has been designed to provide reasonable rather than absolute assurance that the financial Chief Financial Officer statements will be free from material misstatement. As management, we assert that to the best Jillian Steward of our knowledge and belief,this financial report is complete and reliable in all material aspects. Director of Human Resources and The District's financial statements have been audited by Moss Adams LLP, an independent firm Risk Management of licensed certified public accountants.The goal of the audit is to provide reasonable assurance Martina Rochefort that the financial statements of the District for the year ended December 31, 2024 are free of District Clerk/ material misstatement. The independent auditor concluded based upon the audit that there was Executive Assistant a reasonable basis for rendering an unmodified or clean opinion that the District's financial statements are fairly presented in conformity with GAAP. The independent auditor's report is Board of Directors presented as the first component of the financial section of this Report. Christa Finn Tony Laliotis GAAP requires that management provide a narrative introduction, overview, and analysis to Jeff Bender accompany the basic financial statements in the form of the Management's Discussion and Courtney Murrell Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be Steve Randall read in conjunction with it. The District's MD&A can be found in the finance section immediately following the report of the independent auditors. District Overview In 1927, the District was formed by and continues to operate under the State of California Public Utility District Act. The District provides electric and water utility services with a service territory of 45.5 square miles, beginning four miles from the northern border just beyond Alder Creek Road, south to Placer County, and 11 miles from just beyond the western shore of Donner Lake eastward to the rim of Boca Dam and the Hirschdale community. As of December 31, 2024, the District served 14,833 electric utility customer accounts and 13,719 water utility customer accounts. Page 1 5 06hiC SPECIAL DISTRICT 11570 Donner Pass Road,Truckee,CA 96161 1 (530)587-3896 1 tdpud.org 1204 ER pL LEADERSHIPFBUNBATIBN "'""`""`°"""' Page 15 of 114 The District's service territory is predominately within the town borders of the Town of Truckee (Truckee). Truckee's historical downtown flourished as a railroad station town and gateway to Lake Tahoe. Truckee is generally considered a resort town or bed base for resort and outdoor recreation activities. Truckee's stated current population of 17,500 varies widely throughout the seasons of the year due to tourism and seasonal residences. Winter months are busy with alpine skiing and other winter activities, summer is robust with hiking, biking, boating and other summer activities, while the shoulder seasons are less busy with primary residents predominately. While Truckee's downtown base elevation is 5,817 feet (1,773 meters), the District's service territory elevations range from 5,745 feet (1,751 meters) to 7,370 (2,246 meters). This wide range of elevation creates utility service challenges, explained in detail later in this letter. The District is governed by five elected at-large, Board members. Each elected Board member serves four- year staggered terms. The five-member Board of Directors serve as the governing body with respect to policy and fiduciary responsibility. The General Manager reports to the Board of Directors and all other District employees report up through or directly to the General Manager. An organization chart is provided after this letter to provide additional insights. The District's electric utility (Electric) sold 168 MWh of energy to customers in 2024, up 1.3% to 2023. Electric's system is a transmission-dependent, non-energy producing, distribution electric utility. Electric services 14,800 accounts across 233 miles of distribution lines; 135 miles of overhead pole lines and 98 miles of underground lines. For energy sources, Electric has aggressively pursued renewable power sources and currently has approximately 60% renewable power procurement. The winter months can be harsh, with extreme cold and an average snowfall of over 400 inches (over 700 inches in the 22/23 winter season!). The summer months consist of high daytime heat, cool nighttime temperatures, low humidity, nominal precipitation and high winds, creating high fire danger. Despite these challenging conditions, Electric has a long history of reliable power and in March 2023 was awarded RP3 Platinum Level by the American Public Power Association's Reliable Public Power Provider program which recognizes utilities that demonstrate high proficiency in reliability, safety, workforce development, and system improvement. In 2024, the District's water utility produced approximately 1.6 billion gallons of potable water for its customers—an 8% increase compared to 2023. The water system is supplied entirely by groundwater from wells, with a total production capacity of 10,250 gallons per minute, or 14.8 million gallons per day. Water service is provided to 13,700 customer accounts through a complex infrastructure that includes 13 active wells, 35 storage tanks with a combined capacity of 13.1 million gallons, 25 pumping stations, 46 pressure zones, and 239 miles of distribution pipeline. The system spans a service area with a significant elevation range of 1,625 feet (495 meters), creating unique operational challenges—particularly in the harsh environmental conditions of the Sierra Nevada's. Maintaining the reliability and quality of the water supply is a top priority. The District's wells draw from an extensively studied and tested aquifer that has been confirmed to meet both current and future water demand projections. Importantly, this aquifer has shown resilience to drought conditions, making it a dependable long-term water source. Water quality is rigorously monitored, with over 1000 tests conducted annually to ensure compliance with all federal and state maximum contaminant levels (MCLs). The system has continued to meet or exceeds all regulatory standards. The District remains committed to transparency and public education regarding water supply and quality. An annual Consumer Confidence Report (CCR) is published to provide customers with key information about their drinking water. Current and past CCRs are available on the District's website at www.tdpud.ora. Page 16 Page 16 of 114 In addition to core Electric and Water utilities,the District's blended component units include two Community Facilities Districts (CFD), Old Greenwood and Gray's Crossing. In order to finance various public improvements needed to develop property within the Town of Truckee, California, the District formed Community Facilities Districts (CFD), which issued Special Tax Bonds pursuant to the Mello-Roos Community Facilities Act of 1982, as amended. Accordingly, the Bonds are special obligations of the respective Community Facilities Districts and are payable solely from revenues derived from taxes levied on and collected from the owners of the taxable land within the respective Community Facilities Districts. These Special Tax Bonds are not general or special obligations of the District. The Board of Directors of the District is the legislative body of the Communities Facilities Districts and as such they approve the rates and method of apportionment of the special taxes. As improvements were completed, the infrastructure was donated in the form of a capital contribution to the Town of Truckee, the Truckee Sanitary District, Southwest Gas, and the District. Local Economic Conditions Truckee and the greater regional area known as Lake Tahoe, is a very popular summer and winter vacation destination, due in part to the proximity to the Bay Area region of Northern California. Truckee's location near Lake Tahoe causes Truckee to be a gateway bed base for the tourism economy, but also has a small- town local economy with its population of approximately 17,000 residents. The District's Electric customers are categorized between primary residential of 40% and secondary (second home) residential of 60%. With the start of pandemic impacts in March 2020, while the tourism business essentially stopped, Truckee experienced a large increase in second homes utilization, a combination of both the owner of the second homes and short-term rentals of the second homes. The pandemic-driven increase in utilization has only moderately decreased post pandemic. Truckee residential and commercial real estate development tapered in 2024 (and 2023) over the 2022 peaks. Truckee real estate as of February 2025 indicates a Median Listing Price of$1.2 million, down 6% year-over-year as compared to in 2023 down 7% (source realtor.com). The March 2024 Zillow Home Value Index for Truckee region of$1,005,000 is flat up 0% year-over-year as compared to in 2023 up 1%. As California and the nation continue policy decisions regarding net zero carbon emissions and the potential resulting electrification of the state and country, the District is well positioned for the short-term to meet these service needs and has included these potential impacts in the District's long-term planning. District in 2024 Financial Information and Policies The Total Net Position of the District was $141.6 million as of December 31, 2024, increasing $11.8 million or 9.1% compared to December 31, 2023. Operating income of$5.4 million accounts for 46% of the Total Net Position increase. The FY 2024 operating income of $5.4 million represents a margin of 9.8% of operating revenues,which compares to a FY 2023 margin of 6.1%. For 2024 compared to 2023, operating revenues increased 6.1% and operating expenses increased 2.0%. Total non-operating revenue and expenses net to revenue of$3.9 million and contributed assets of$2.5 million account for the remainder of the Total Net Position increase. Total Cash, Cash Equivalents, and Investments was $57.2 million as of December 31, 2024, increasing $4.8 million or 9.2% compared to December 31, 2023. The increase was primarily driven by operating income of $4.7 million and $0.7 million for electric and water utilities, respectively. Refer to Financial Section's Consolidated Statements of Cash Flows and Note 2 of Notes to Financial Statements for additional information regarding components of cash, cash equivalents, and investments. The Management's Discussion and Analysis in the Financial Section provides additional information on the FY 2024 financial results and financial condition of the District. Page 17 Page 17 of 114 The District reviewed numerous new GAAP accounting pronouncements and the adoption of GASB Statement No. 101, Compensated Absences impacted both 2024 and 2023. Refer to Financial Section, Note 1 & Note 17 of Notes to Financial Statements for additional information regarding all the key financial policies of the District and details on new accounting pronouncements. Budgetary Controls As a public agency, the Board and District embrace the fiduciary responsibility and stewardship of the District's financial resources. District staff works with the Board of Directors in workshop meetings and public hearing meetings to develop a biennial budget before Board adoption. The budget serves as a management tool to set appropriate service rates, allocate available resources, and includes a ten-year financial master plan. The legal level of budgetary control is maintained at the fund, department, and object account level. Key budgetary control is provided in District Code Title 3 Finance and Accounting, which includes extensive financial, budget, accounting, purchasing, reserves, investments, and other internal control policies. Board level budgetary controls include approval thresholds for expenditures and personnel additions, as well as Board semi-annual review of financial statements and monthly review of disbursements and reserve fund balances. Management budgetary controls include monthly financial statement and budget report review, as well as financial policies and procedures in accordance with aforementioned District Code. Long Term Financial Planning, Public Outreach and Initiatives 2024 was predominantly a strategic plan update and operating plan execution year for the District's adopted Budget which includes the Water and Electric 10-year Capital Improvement Plans. These plans provide valuable short- and long-term information to assist with resource planning in the FY 2024 and FY 2025 biennial budget cycle, which includes a 10-year Financial Master Plan and was approved in fall of 2023. A comprehensive cost of service analysis report and resulting revenue requirements and customer rate changes was completed in 2020 for Water (for through 2025) and in 2023 for Electric (for through 2025). In 2025, both Water and Electric are actively working on new comprehensive cost of service analysis reports and resulting revenue requirements and customer rates for 2026 and forward. The review of these analyses is held in open/noticed Board meetings, as well as, noticed Public Hearings. In May 2021, the District completed an extensive strategic planning process, which included significant community outreach. Community participation exceeded the District's expectations and provided valuable feedback for not only the strategic plan, but also perceptions and insights into the District as a whole as part of our community. An update to the strategic plan was completed in 2024. The District sincerely thanks the community for their valued engagement with the District. The Board adopted Strategic Plan includes the following four key initiatives: • Community Broadband • Service Reliability and Safety • Net Carbon Reduction • Local Watershed Stewardship More information on the strategic plan can be found on the District website (tdpud.org). Page 18 Page 18 of 114 The District conducts regular Board meetings, generally on the first and second Wednesdays of each month, which are noticed and open to the public. The dates of upcoming meetings and an archive of past meetings can be found on the District's website (tdpud.org). Closing Comments We would like to thank the many staff involved in preparing this Report, a true team effort. Further, we would like to thank all our valued employees for their service and dedication to the District and the community during these unique and challenging times. Respectfully submitted, Brian C. Wright Michael R. Salmon General Manager Chief Financial Officer Page 19 Page 19 of 114 Truckee Donner Public Utility District Organization Chart for 2024 Customers/Community Electric(14,800 accounts) Water(13,700 accounts) Board of Directors Elected Officials(5) r...................................... _ f...................................... Auditors Legal Counsel ......................................... ;........................................: General Manager Employee Full Time Equivalents(FTE) 1 FTE 83.25 Total FTE for 2024 Budget District Clerk Electric Information Operations Dist.Clerk,Contracts,Records 4 FTE Technology (including Engineering) (including SCADA and GIS) 25.25 FTE Human Resources 7 FTE HR,Payroll,Risk Mtgt. 3 FTE Water Administrative Services(CFO) Legislative and Regulatory Operations (Finance,Facilities,Fleet, Affairs,and Public (including Engineering) Conservation,and Customer Service) Information Officer 18 FTE 23 FTE 2 FTE List of Elected and Appointed Officials Elected Officials FY'2023(Term) FY'2024(Term) Appointed Officials Board President Jeff Bender(2020-2024) Jeff Bender(2020-2024) Treasurer Michael R.Salmon Board Vice President Tony Laliotis(2022-2026) Christa Finn(2022-2026) District Clerk Martina Rochefort Board of Director Christa Finn(2022-2026) Tony Laliotis(2022-2026) General Manager Brian Wright Board of Director Joe Aguera(2020-2024) Joe Aguera(2020-2024) Board of Director Kim Harris(2020-2024) Kim Harris(2020-2024) LTerms for directors run December of starting year through December of even years, four year terms. Page 10 Page 20 of 114 GFOA Certificate of Achievement for Excellence in Financial Reporting The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to Truckee Donner Public Utility District for its annual comprehensive financial report (ACFR)for the fiscal year ended December 31, 2023. This was the third year that the District has achieved this prestigious award. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government financial reports. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized annual comprehensive financial report, whose contents conform to program standards. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that this ACFR continues to meet the Certificate of Achievement Program's requirements and are submitting it to GFOA to determine its eligibility for certificate award. Govetument Finance Officers.association Certificate of Achievement for Excellence in Financial Reporting Presented to Truckee Donner Public Utility District California For its.annual Comprehensive I Financial Report For the Fiscal Year Ended I December 31,2023 I OA..&p.A.. P -u I Executive Director CEO I Page 11 Page 21 of 114 FINANCIAL SECTION The American Public Power Association's Reliable Public Power Provider program recognizes utilities that demonstrate high proficiency in reliability, safety, workforce development, and system improvement. Truckee Donner Public Utility District received the Platinum level RP3 award designation in March 2024. This designation will last for three years. RELIABLE RUB�iC ► ;2PROVIDER %`� PLATINUM AWARD RECIPIENT MARCH 2O24 American Public Power Association Page 112 Page 22 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT CONSOLIDATED FINANCIAL STATEMENTS Including Report of Independent Auditors December 31, 2024 and 2023 TABLE OF CONTENTS Report of Independent Auditors ..............................................................................................14 Management's Discussion and Analysis....................................................................................17 FinancialStatements.............................................................................................................23 Consolidated Statements of Net Position........................................................................24 Consolidated Statements of Revenues, Expenses and Changes in Net Position.....................26 Consolidated Statements of Cash Flows.........................................................................27 Notes to Financial Statements.................................................................................................29 Required Supplementary Information........................................................................................72 Cost Sharing Defined Benefit Pension Plans...................................................................73 Schedule of Changes in Net OPEB Liability and Related Ratios..........................................75 Supplementary Information.....................................................................................................79 Consolidating Statement of Net Position.........................................................................80 Consolidating Statement of Revenues, Expenses and Changes in Net Position.......................82 Consolidating Statement of Cash Flows...........................................................................84 Page 113 Page 23 of 114 MOSSADAMS Report of Independent Auditors The Board of Directors Truckee Donner Public Utility District Report on the Audit of the Financial Statements Opinion We have audited the consolidated financial statements of Truckee Donner Public Utility District(the 'District"). which comprise the consolidated statements of net position as of December 31. 2024 and 2023. and the related consolidated statements of revenues, expenses and changes in net position and cash flows for the years then ended. and the related notes to the consolidated financial statements. In our opinion. the accompanying consolidated financial statements present fairly. in all material respects. the financial position of the District as of December 31. 2024 and 2023. and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. Basisfor Opinion We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the District and to meet our other ethical responsibilities. in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Responsibilities of.Ilunuge►nen(for the Financial Staterents Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with accounting principles generally accepted in the United States of America. and for the design. implementation. and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement. whether due to fraud or error. In preparing the financial statements. management is required to evaluate whether there are conditions or events, considered in the aggregate. that raise substantial doubt about the District's ability to continue as a going concern for twelve months beyond the financial statement date. including any currently known information that may raise substantial doubt shortly thereafter. Page J 14 Page 24 of 114 Auditor's Responsibil i►ics for Cite Audit of die Firtarecial Slalerrtenls Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement. whether due to fraud or error. and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error. as fraud may involve collusion.forgery, intentional omissions. misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that. individually or in the aggregate, they would influence the judgment made by a reasonable user based on the consolidated financial statements. In performing an audit in accordance with GAAS,we: Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the consolidated financial statements. whether due to fraud or error. and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis. evidence regarding the amounts and disclosures in the consolidated financial statements. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. but not for the purpose of expressing an opinion on the effectiveness of the District's internal control.Accordingly. no such opinion is expressed. Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management. as well as evaluate the overall presentation of the consolidated financial statements. Conclude whether. in our judgment. there are conditions or events. considered in the aggregate. that raise substantial doubt about the District's ability to continue as a going concern for a reasonable period of hme. We are required to communicate with those charged with governance regarding,among other matters. the planned scope and timing of the audit. significant audit findings. and certain internal control-related matters that we identified during the audit. Page 15 Page 25 of 114 Other Matters Required Supplementary Injormution Accounting principles generally accepted in the United States of America require that the accompanying management's discussion and analysis.the schedules of proportionate share of net pension liability. schedules of employer contributions,schedules of the District's change in the net OPEB liability and related ratios.schedule of the District's OPEB contributions.and the schedule of investment returns be presented to supplement the basic financial statements. Such information is the responsibility of management and.although not a part of the basic financial statements. is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational,economic, or historical context.We have applied certain limited procedures to the required supplementary information in accordance mth auditing standards generally accepted in the United States of America. which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries.the basic financial statements,and other knowledge we obtained during our audit of the basic financial statements.We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementul-V Itilormution Our audit was conducted for the purpose of forming an opinion on the consolidated financial statements as a whole.The consolidating statements of net position.and the related consolidating statements of revenues, expenses and changes in net position and cash flows as of and for the year ended December 31. 2024.are presented for purposes of additional analysis and are not a required part of the consolidated financial statements. The information has been subfected to the auditing procedures applied in the audit of the consolidated financial statements and certain additional procedures,including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the consolidated financial statements or to the consolidated financial statements themselves.and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion,the information is fairly stated, in all material respects, in relation to the consolidated financial statements as a whole. Other Information Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other information,and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements.our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements. or the other information otherwise appears to be materially misstated. If, based on the work performed,we conclude that an uncorrected material misstatement of the other information exists.we are required to describe it in our report. ap Portland.Oregon May 28, 2025 Page 16 Page 26 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2024 and 2023 As financial management of the Truckee Donner Public Utility District (the District), we offer readers of these financial statements this narrative overview and analysis of the financial activities of the District for the years ended December 31, 2024 and 2023, with additional comparative data for 2022. This discussion and analysis are designed to assist the reader in focusing on the significant financial topics, provide an overview of the District's financial activity and identify changes in the District's financial position. We encourage readers to consider the information presented here in conjunction with that presented within the basic financial statements. The reader should take time to read and evaluate all sections of this report, including the footnotes and other supplementary information that is provided, in addition to this management discussion and analysis. OVERVIEW OF THE FINANCIAL STATEMENTS The financial statements of the District are designed to provide readers with a broad overview of the District's finances similar to a private-sector business. They have been prepared using the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America (GAAP). Under this basis of accounting, revenues are recognized in the period in which they are earned and expenses are recognized in the period in which they are incurred, regardless of the timing of related cash flows. These statements offer short-term and long-term financial information about the District's activities. The reporting entity consists of the primary government, which provides two utilities (electric utility and water utility), and the blended component units of two Community Facilities Districts (CFDs). Further details about the component units are provided in note 1(A)to the financial statements. The basic financial statements, presented on a comparative format for the years ended December 31, 2024 and 2023, consist of: • Consolidated Statement of Net Position: This statement presents information on all the District's assets, deferred outflows of resources and liabilities, and deferred inflows of resources and provides information about the nature and amounts of investments in resources (assets) and the obligations to District creditors (liabilities). It also provides the basis for computing rate of return, evaluating the capital structure of the District, and assessing the liquidity and financial flexibility of the District. These amounts are as of a point in time, the District's year ending December 31. • Consolidated Statements of Revenues, Expenses, and Changes in Net Position: This statement provides the revenues and expenses for each of the presented years. The statement provides a measurement of the District's operations over the presented years and can be used to determine whether the District has successfully recovered all its costs through its rates and other charges. • Consolidated Statement of Cash Flows: This statement provides relevant information about the District's cash receipts and cash payments during the reporting period.This statement reports cash receipts and cash payments resulting from operating, non-capital financing, capital and related financing, and investing activities. When used with related disclosures and information in the other financial statements, the statement of cash flows is an important indicator of the District's liquidity and financial condition. • Notes to the Financial Statements: The notes provide additional information that is essential to a full understanding of the data provided in the basic financial statements. This includes but is not limited to, significant accounting policies, significant financial statement balances and activities, material risks, commitments and obligations, and subsequent events, as applicable. The financial statements report also contains other supplementary information, the Report of Independent Auditors, and this Management Discussion and Analysis. Page 117 Page 27 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2024 and 2023 CONDENSED COMPARATIVE FINANCIAL INFORMATION Provided below are select condensed financial statements for December 31, 2024, 2023, and 2022. Increase CONSOLIDATED STATEMENT OF NET POSITION 2023 2022 (Decrease) 2024 (Restated) (Restated) 2024-2023 ASSETS AND DEFERRED OUTFLOWS OF RESOURCES Current assets $ 71,926,655 $ 64,901,779 $ 69,892,464 $ 7,024,876 Nan-current assets: Capital assets,net 155,187,643 148,670,662 137,597,746 6,516,981 Operating investments 2,938,555 3,804,247 3,678,068 (865,692) Designated investments 4,280,671 5,579,209 5,389,941 (1,298,538) Leases receivable,net of current portion 1,390,354 1,389,598 1,452,595 756 Other long-term assets - - 62,229 - Total Assets 235,723,878 224,345,495 218,073,043 11,378,383 Deferred outflows of resources 7,592,369 10,202,960 9,549,869 (2,610,591) TOTAL ASSETS AND DEFERRED OUTFLOWS OF RESOURCES $ 243,316,247 $234,548,455 $227,622,912 $ 8,767,792 LIABILITIES,DEFERRED INFLOWS OF RESOURCES AND NET POSITION Current liabilities $ 10,294,106 $ 10,148,544 $ 12,146,737 $ 145,562 Non-current Liabilities Long-term debt,net of current portion 58,233,888 61,433,844 64,463,000 (3,199,956) Subscription software liability,net of current portion 133,580 239,254 424,453 (105,674) Compensated absences,net of current portion 1,398,664 1,181,026 - 217,638 Net pension liability 18,001,154 18,145,067 16,783,065 (143,913) Net OPEB liability 4,754,833 5,969,987 4,389,294 (1,215,154) Unearned revenues 5,422,681 5,314,499 5,282,010 108,182 Total Liabilities 98,238,906 102,432,221 103,488,559 (4,193,315) Deferred inflows of resources 3,497,773 2,305,338 3,370,855 1,192,435 NET POSITION Net investment in capital assets 100,980,399 92,055,779 88,640,941 8,924,620 Restricted for debt service 6,419,793 6,129,427 6,676,481 290,366 Unrestricted 34,179,376 31,625,690 25,446,076 2,553,686 Total Net Position 141,579,568 129,810,896 120,763,498 11,768,672 TOTAL LIABILITIES,DEFERRED INFLOWS OF RESOURCES AND NET POSITION $ 243,316,247 $234,548,455 $ 227,622,912 $ 8,767,792 Increase CONSOLIDATED STATEMENTS OF REVENUES,EXPENSES AND 2023 (Decrease) CHANGES IN NET POSITION 2024 (Restated) 2022 2024-2023 Sales to consumers $ 53,489,217 $ 50,221,144 $ 46,272,358 $ 3,268,073 Other operating revenues 1,717,727 1,789,049 1,755,801 (71,322) Total Operating Revenues 55,206,944 52,010,193 48,028,159 3,196,751 Depreciation and amortization 8,486,970 8,004,903 7,712,381 482,067 Purchased power 13,164,111 14,068,454 16,823,869 (904,343) All other operating expenses 28,140,147 26,740,934 20,949,335 1,399,213 Total Operating expenses 49,791,228 48,814,291 45,485,585 976,937 Operating income 5,415,716 3,195,902 2,542,574 2,219,814 Non-operating special tax revenues 4,089,573 3,818,572 3,655,524 271,001 Nan-operating interest expense (3,005,955) (3,154,114) (2,727,946) 148,159 Non-operating other revenues 72,983 54,232 1,774,870 18,751 Nan-operating other expenses 2,725,988 2,764,444 (1,434,081) (38,456) Income before capital contributions 9,298,305 6,679,036 3,810,941 2,619,269 Capital contributions,net 2,470,367 2,368,362 3,221,872 102,005 Change in net position 11,768,672 9,047,398 7,032,813 2,721,274 Net Position,Beginning of Year 129,810,896 120,763,498 113,730,685 9,047,398 NET POSITION,END OF YEAR $ 141,579,568 $129,810,896 $ 120,763,498 $ 11,768,672 Page 18 Page 28 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2024 and 2023 ANALYSIS OF OVERALL FINANCIAL POSITION AND RESULTS OF OPERATIONS 2024 as compared to 2023: The District's overall financial position improved in 2024 by$11.8 million or 9.1% as measured by total net position. In 2024, the total net position increased $5.4 million from operating activities, $3.9 million from non-operating activities, and $2.5 million from capital, debt and monetary contribution activities. Operating income in 2024 of$5.4 million increased $2.2 million or 69.5% compared to $3.2 million in 2023. The components of operating income summarize as follows. Total operating revenues in 2024 of $55.2 million were $3.2 million or 6.1% greater than 2023, driven primarily by electric and water effective rate increases for 2024 of 12%and 8%, respectively. Total operating expenses in 2024 of $49.8 million were $1.0 million or 2.0% greater than 2023. The variance of can be summarized as follows: • $1.2 million or 2% increase for non-cash change in pension and other post-employment benefits liability valuation impact between years • ($0.9) million or-2% decrease in purchase power costs of 6% (less price volatility in 2024) • $0.2 million or 1% increase for rate of pay increases partially offset by position vacancies, net 1% increase • $0.5 million or 1% increase in non-cash depreciation expense of 6% Non-operating revenues and expenses, net revenues in 2024 of $3.9 million were $0.4 million or 11.5% above 2023 due primarily to $0.3 million increase in special tax revenues, $0.1 million increase in investment income, $0.1 million decrease in interest expense, and $0.1 million increase in CFD cost reimbursements. Capital and other contributions of$2.5 million were up $0.1 million or 4.3% compared to 2023, driven by an increase in construction activity and related project contributions to the District. The resulting change in Total Net Position in 2024 of$11.8 million was $2.7 million or 30% higher than the change in 2023. Year-end 2024 current assets of$71.9 million increased $7.0 million or 10.8% primarily due to less capital expenditures than anticipated due to timing of projects. Year-end 2024 total assets of $235.7 million increased $11.4 million or 5.1%, which includes a $6.5 million or 4% increase in net total capital assets. Year-end 2024 total liabilities of$98.2 million decreased$4.2 million or 4.1%primarily driven by a $3.2 million decrease in long-term debt (discussed further below) and a $1.2 million decrease in net OPEB liability. Deferred inflows increased $1.2 million and deferred outflows decreased $2.6 million, both changes driven by pension deferred inflow and outflow changes. 2023 as compared to 2022: The District's overall financial position improved in 2023 by $9.0 million or 7.5% as measured by total net position. In 2023, the total net position increased $3.2 million from operating activities, $3.5 million from non-operating activities, and $2.3 million from capital, debt and monetary contribution activities. Operating income in 2023 of$3.2 million increased $0.7 million or 25.7% compared to $2.5 million in 2022. The components of operating income summarize as follows. Total operating revenues in 2023 of $52.0 million were $4.0 million or 8.3% greater than 2022, driven primarily by electric and water effective rate increases for 2023 of 6.5% and 8.0%, respectively, as well as the intense winter in Q1 2023 driving higher electric sales than 2022. Page 119 Page 29 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2024 and 2023 Total operating expenses in 2023 of$48.8 million were$3.3 million or 7.3% greater than 2022,with a purchased power costs decrease of $2.8 million (2022 was large increase due to natural gas prices impact) more than offset by costs increase of$6.1 million. The cost increase of$6.1 million referenced above can be summarized as follows: • $2.9 million increase for non-cash change in pension and other post-employment benefits liability valuation impact between years • $2.4 million increase for inflation and rate of pay increases • $0.8 million increase in wildfire defensible space ($491 k) and asphalt repairs ($307k) Non-operating revenues and expenses, net revenues in 2023 of $3.5 million were $2.2 million or 175% above 2022 due primarily to$3.5 million more investment income in 2023 over 2022 due primarily to market conditions, partially offset by$1.2 million in storm disaster(2021)financial aid from State of California funds received in 2022. Capital and other contributions of$2.4 million were down 27% compared to 2022, driven by a decline in construction activity and related project contributions to the District. The resulting change in Total Net Position in 2023 of$9.0 million was $2.0 million or 28.6% higher than the change in 2022. Year-end 2023 current assets of $64.9 million decreased $5.0 million or 7.1% primarily due to capital expenditures use of cash. Year-end 2023 total assets of$224.3 million increased$6.3 million or 2.9%, which includes an $11.1 million or 8% increase in net total capital assets. Year-end 2023 total liabilities of$102.4 million decreased $1.1 million or 1% primarily driven by a$3.0 million decrease in long- term debt (debt service payments, discussed further below), a $1.6 million increase in net OPEB liability (non-cash valuation change, a $1.4 million increase in net pension liability (non-cash valuation change), and a $1.3 million decrease in accounts payable. Deferred inflows decreased $1.0 million and deferred outflows increased $0.7 million, both changes driven primarily by pension deferred inflow and outflow changes. ANALYSIS OF ELECTRIC UTILITY Electric total net position as of December 31, 2024 was $91.0 million and increased $7.6 million or 9% compared to December 31, 2023. Electric's total net position increased $4.7 million from operating activities, increased $1.5 million from non-operating activities, and increased $1.4 million from capital, debt and monetary contributions. Key components of this$7.6 million change in total net position are as follows. Electric operating income of$4.7 million increased $1.8 million or 64% compared to $2.9 million in 2023. The components of operating income summarize as follows. Electric operating revenues of $37.7 million increased $1.7 million or 5% in 2024 compared to 2023. Electric's sales to customers increased 5.4% over 2023; comprised of a 7.9% effective rate increase, 0.8% customer growth, and a 3.3% kWh volume billed decrease. The 7.9% effective rate increase noted above is comprised of a 12.0% average rate increase partially offset by 4.1% power cost adjustment net credit to customers, the latter due to wholesale power costs below budget and associated rate ordinance expectations. Other Electric operating revenues were down 1% to 2023. Electric operating expenses of $32.9 million compared to 2023 reflect a decrease of$0.1 million or 0.5% driven primarily by power costs down $0.9 million or 6% due favorable market and natural gas prices in 2024 (other than January 2024), $0.2 million decrease in wildfire defensible space costs of due to work timing, $0.2 million decrease due to Integrated Resource Plan in 2023, partially offset by an increase of $0.7 million in pension and OPEB actuarially determined liability (non-cash expense charge change) and an increase of $0.5 million from inflation and rate of pay increases. Electric non-operating revenues (expenses) net of$1.5 million increased $0.3 million or 30% compared to $1.1 million in 2023. The increase is driven primarily by a $0.3 million increase in special tax revenues. Page 120 Page 30 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2024 and 2023 Electric contributions of$1.4 million decreased $0.1 million or 6% compared to $1.5 million in 2023. The decrease is driven primarily by timing of construction activity and related project's contributions to the District. Electric has no significant restrictions, commitments, or other limitations that would affect the availability of resources for future use; other than$7.0 million in restricted unspent long-term debt proceeds funds and $1.3 million in various other restricted funds. ANALYSIS OF WATER UTILITY Water total net position as of December 31, 2024 was $71.3 million and increased $1.6 million or 2% compared to December 31, 2023. Water's total net position increased $0.7 million from operating activities, decreased $0.1 million from non-operating activities, and increased $1.0 million from capital, debt and monetary contributions. Key components of this $1.6 million change in total net position are as follows. Water operating income of$0.7 million increased $0.4 million or 7% compared to $0.3 million in 2023. The components of operating income summarize as follows. Water operating revenues in 2024 of$19.6 million increased $1.5 million or 9%compared to 2023. Water's sales to customers increased 8.7% to 2023; comprised of an 8.0% average rate increase and 0.6% customer growth. Water gallons billed per account per day in 2024 decreased 8% compared to 2023 due primarily to winter 2023/2024 impact on summer 2024 water usage: with nominal impact on revenues (nor costs). Other water operating revenues were up $28,000 or 6%. Water operating expenses in 2024 of $18.9 million increased $1.0 million or 7% to 2023 driven primarily by $0.5 million increase in pension and OPEB actuarially determined liability (non-cash net expense charge), $0.2 million increase due to inflation and rate of pay increases, and $0.3 million increase in depreciation expense. Water non-operating revenues (expenses) net of($0.1) million decreased $0.25 million or 190% compared to$0.1 million in 2023. Notable variances to prior year include$0.28 million decrease in investment income due to decrease in investable funds and a $0.04 million decrease in interest expense. Water contributions of$1.0 million increased $0.2 million or 22% compared to $1.8 million in 2023. The increase is driven by timing of construction activity and related project's contributions to the District. Water has no significant restrictions, commitments, or other limitations that would affect the availability of resources for future use; other than $2.4 million in various restricted funds. CAPITAL ASSETS As of December 31, 2024, 2023, and 2022, the District had $155.2 million, $148.7 million, and $137.6 million, respectively, invested in a variety of capital assets, net of accumulated depreciation. The District's capital assets, net of accumulated depreciation, increased $6.5 million or 4.4% in 2024. In 2024, capital expenditures of$14.6 million outpaced depreciation and amortization expense of$8.5 million,with the year focused on capital execution of major projects ($7.8 million Electric and $6.8 million Water) in 2024, in accordance with the approved 10-year capital improvement plans for both electric and water utilities. In 2023, capital expenditures of$18.7 million outpaced depreciation and amortization expense of$8.0 million, with the year focused on execution of capital improvements plan (water utility primarily) and planning of certain projects. Electric utility capital expenditures in 2024 of $7.8 million included $1.9 million in distribution system modernization replacements, $1.1 million in transformers, $0.7 million in undergrounding projects, $0.7 million in facility improvements, $0.7 million in information technology, $0.5 million in system hardening, $0.4 million in fleet replacements, and $1.8 million in various other projects. Electric utility capital expenditures in 2023 of $5.1 million included $1.4 million in distribution system modernization replacements, $0.9 million in new UG pipeline project cost-share with water utility, $0.7 million in system hardening, and $2.1 million in various other projects. Electric depreciation and amortization expense in 2024 of$3.4 million increased $0.2 million or 6% compared to 2023. Page 121 Page 31 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2024 and 2023 Water utility capital expenditures in 2024 of $6.8 million included $0.6 million in new pipeline and pump station projects completion, $3.0 million of pipeline replacement, $0.6 million for new tank completion, $0.9 million for new tanks, $0.3 million in new meters, $0.3 million in fleet replacements, and $1.1 million in various other projects. Water utility capital expenditures in 2023 of $13.6 million included $5.6 million in new pipeline and pump station, $4.0 million of pipeline replacement, $2.4 million for new tank, $0.8 million in well and tank rehabilitations, and $0.8 million in various other projects. Water depreciation and amortization expense in 2024 of$5.1 million increased $0.3 million or 6% compared to 2023. See Note 4 to the Financial Statements for further information regarding capital assets. LONG-TERM DEBT Long-term debt includes revenue bonds and installment loans.At December 31, 2024, 2023, and 2022, the District had $61.3 million, $64.3 million, and $67.2 million, respectively, in long-term debt outstanding. In 2022, the District issued new electric and water debt with net project proceeds(for capital improvements) of$6.5 million and $15.9 million respectively. No new debt was issued in 2023 or 2024. See Note 6 to the Financial Statements for further information regarding long-term debt. ECONOMIC FACTORS AND NEXT YEARS BUDGETS AND RATES The District operates on a biennial budget cycle. The FY24 & FY25 Board approved budget includes an assumption for customer growth 0.5% per year, conservatively below recent 1% average for the District. Revenue projections for fiscal years 2024 and 2025 include average rate increases for Electric of 12% and 12% respectively and for Water 8% and 7% respectively. For 2024 and 2025, approved average rate increases are consistent with these budget expectations. Rates by rate class can be found on the District's website at www.tdpud.org. Expenditures for Electric and Water excluding debt service, for Budget year 2025 increased over Budget year 2024 by 3% and 6%, respectively, primarily due to estimated inflation impacts and expense projects timing variances between years. CONTACTING THE DISTRICT'S FINANCIAL MANAGEMENT The financial report is designed to provide readers with a general overview of the District's finances and to demonstrate the District's accountability for the money it receives. If you have questions about this report or need additional financial information, contact: Truckee Donner Public Utility District, Attn: Treasurer, 11570 Donner Pass Road, Truckee, CA 96161. Page 122 Page 32 of 114 FINANCIAL STATEMENTS Page 33 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT CONSOLIDATED STATEMENTS OF NET POSITION December 31, 2024 and 2023 ASSETS AND DEFERRED 2023 OUTFLOWS OF RESOURCES 2024 (Restated) CURRENT ASSETS Cash and cash equivalents Operating $ 15,024,540 $ 12,274,252 Designated 22,239,996 17,503,851 Restricted 12,675,995 13,170,687 Total cash and cash equivalents 49,940,531 42,948,790 Accounts receivable, net 3,908,603 3,955,770 Unbilled revenues 3,611,030 4,985,487 Special assessments receivable 10,046,812 9,043,613 Accrued interest receivable 318,612 291,527 Current portion of leases receivable 42,376 39,261 Materials and supplies 2,467,651 2,163,677 Prepaid expenses 1,442,635 1,333,239 Other 148,405 140,415 Total Current Assets 71,926,655 64,901,779 NON-CURRENT ASSETS Operating investments 2,938,555 3,804,247 Designated investments 4,280,671 5,579,209 Leases receivable, net of current portion 1,390,354 1,389,598 Capital Assets Utility plant 265,528,778 248,726,903 Accumulated depreciation and amortization (114,039,041) (106,687,507) Construction work in progress 3,697,906 6,631,266 Total Capital Assets 155,187,643 148,670,662 Total Non-Current Assets 163,797,223 159,443,716 TOTAL ASSETS 235,723,878 224,345,495 DEFERRED OUTFLOWS OF RESOURCES Pension 5,033,355 6,753,446 OPEB 2,211,850 3,069,548 Unamortized loss on refunding 347,164 379,966 Total Deferred Outflows of Resources 7,592,369 10,202,960 TOTAL ASSETS AND DEFERRED OUTFLOWS OF RESOURCES $ 243,316,247 $ 234,548,455 The accompanying notes are an integral part of these consolidated financial statements. Page 124 Page 34 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT CONSOLIDATED STATEMENTS OF NET POSITION December 31, 2024 and 2023 LIABILITIES, DEFERRED INFLOWS OF 2023 RESOURCES AND NET POSITION (Continued) 2024 (Restated) CURRENT LIABILITIES Other Liabilities Accounts payable $ 3,864,167 $ 4,265,707 Customer deposits 605,075 453,588 Subscription software liability, current portion 105,674 185,199 Compensated absences, current portion 788,824 835,192 Other 1,117,067 774,565 Total Other Liabilities 6,480,807 6,514,251 Current Liabilities Payable From Restricted Assets Current portion of long-term debt 3,121,100 2,905,300 Accrued interest payable 692,199 728,993 Total Current Liabilities Payable from Restricted Assets 3,813,299 3,634,293 Total Current Liabilities 10,294,106 10,148,544 NON-CURRENT LIABILITIES Long-term debt, net of discounts and premiums 58,233,888 61,433,844 Subscription software liability, net of current portion 133,580 239,254 Compensated absences, net of current portion 1,398,664 1,181,026 Net pension liability 18,001,154 18,145,067 Net OPEB liability 4,754,833 5,969,987 Unearned revenues 5,422,681 5,314,499 Total Non-Current Liabilities 87,944,800 92,283,677 Total Liabilities 98,238,906 102,432,221 DEFERRED INFLOWS OF RESOURCES Pension 200,229 538,069 OPEB 2,044,295 482,931 Leases receivable 1,253,249 1,284,338 Total Deferred Inflows of Resources 3,497,773 2,305,338 NET POSITION Net investment in capital assets 100,980,399 92,055,779 Restricted for debt service 6,419,793 6,129,427 Unrestricted 34,179,376 31,625,690 Total Net Position 141,579,568 129,810,896 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND NET POSITION $ 243,316,247 $ 234,548,455 The accompanying notes are an integral part of these consolidated financial statements. Page 125 Page 35 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT CONSOLIDATED STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION For the years ended December 31, 2024 and 2023 2023 2024 (Restated) OPERATING REVENUES Sales to customers $ 53,489,217 $ 50,221,144 Standby fees 115,480 116,041 Cap and trade proceeds 518,027 401,879 Other 1,084,220 1,271,129 Total Operating Revenues 55,206,944 52,010,193 OPERATING EXPENSES Purchased power 13,164,111 14,068,454 Operations and maintenance 15,651,928 15,596,569 Consumer services 3,188,986 2,751,310 Administration and general 9,299,233 8,393,055 Depreciation and amortization 8,486,970 8,004,903 Total Operating Expenses 49,791,228 48,814,291 Operating Income 5,415,716 3,195,902 NON-OPERATING REVENUE(EXPENSES) Special tax revenue 4,089,573 3,818,572 Investment income 2,807,224 2,728,794 Interest expense (3,005,955) (3,154,114) Amortization credit 46,053 46,053 Other non-operating revenues 54,705 23,967 Other non-operating expenses (127,289) (10,403) Gain on disposition of assets 18,278 30,265 Total Non-Operating Revenue, Net 3,882,589 3,483,134 Income Before Contributions 9,298,305 6,679,036 CAPITAL &OTHER CONTRIBUTIONS 2,470,367 2,368,362 CHANGE IN NET POSITION 11,768,672 9,047,398 Net Position - Beginning of Year 129,810,896 120,763,498 NET POSITION - END OF YEAR $ 141,579,568 $129,810,896 The accompanying notes are an integral part of these consolidated financial statements. Page 26 Page 36 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT CONSOLIDATED STATEMENTS OF CASH FLOWS For the years ended December 31, 2024 and 2023 2024 2023 CASH FLOWS FROM OPERATING ACTIVITIES Received from customers $ 56,743,600 $ 50,472,878 Paid to suppliers for goods and services (27,829,331) (30,927,961) Paid to employees for services (10,860,431) (10,146,823) Net cash provided by operating activities 18,053,838 9,398,094 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital expenditures for utility plant (14,550,193) (18,738,378) Net proceeds from disposal of assets 10,223 30,265 Capital contributions, connection and facility fees 1,459,823 1,531,255 Special assessments receipts - 3,408 Special tax receipts 3,221,518 3,224,680 Principal payments on subscription liability (185,199) (203,148) Interest payments on subscription liability (19,266) (8,667) Principal payments on long-term debt (2,915,590) (2,832,260) Interest payments on long-term debt (3,019,795) (3,077,853) Net cash used by capital and related financing activities (15,998,479) (20,070,698) CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from maturity of investments 2,500,000 - Interest income received 2,233,614 1,783,321 Net cash provided by investing activities 4,733,614 1,783,321 Net increase (decrease) in cash and cash equivalents 6,788,973 (8,889,283) CASH AND CASH EQUIVALENTS — Beginning of Year 43,160,991 52,050,274 CASH AND CASH EQUIVALENTS — END OF YEAR $ 49,949,964 $ 43,160,991 NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES Developer and customer added capital assets $ 910,996 $ 806,319 Recognition of prior period unearned revenues $ 3,941,517 $ 3,491,105 The accompanying notes are an integral part of these consolidated financial statements. Page 27 Page 37 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT CONSOLIDATED STATEMENTS OF CASH FLOWS For the years ended December 31, 2024 and 2023 (continued) 2023 2024 (Restated) RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES Operating income $ 5,415,716 $ 3,195,902 Non-cash items included in operating income Depreciation and amortization 8,486,970 8,004,900 Depreciation charged to other accounts 465,293 466,878 Pension GASB 68 valuation 1,238,338 1,123,719 OPEB GASB 75 valuation 1,203,908 165,569 Changes in assets and liabilities Accounts receivable and unbilled revenues 1,421,623 (1,699,857) Materials and supplies (303,974) (493,358) Prepaid expenses (109,396) (403,195) Accounts payable (401,540) (1,346,628) Customer deposits 149,993 202,387 Deferred inflow, leases amortization (31,089) (98,003) Leases receivable (3,871) 58,160 Other current liabilities and compensated absences 521,867 221,620 NET CASH PROVIDED BY OPERATING ACTIVITES $ 18,053,838 $ 9,398,094 RECONCILIATION OF CASH AND CASH EQUIVALENTS TO THE BALANCE SHEET Operating $ 15,024,540 $ 12,274,252 Designated 22,239,996 17,503,851 Restricted funds -current 12,675,995 13,170,688 Operating Investments - non-current 2,938,555 3,804,247 Designated Investments - non-current 4,280,671 5,579,209 Total Cash and Investments 57,159,757 52,332,247 Less: Long-term investments (7,219,226) (9,383,456) Mark to market adjustments 9,433 212,200 TOTAL CASH AND CASH EQUIVALENTS $ 49,949,964 $ 43,160,991 The accompanying notes are an integral part of these consolidated financial statements. Page 28 Page 38 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2024 and 2023 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 and management of the primary government has operational responsibility for each of the component units. These organizations are reported as if they are a part of the District's operations. The entities are legally separate, however, in the case of the Truckee Donner Public Utility District Financing Corporation,financial support has been pledged and financial and operational policies may be significantly influenced by the District. The following is a description of the District's blended component units: Truckee Donner Public Utility District Financing Corporation is a legal entity that was created to issue and administer Certificates of Participation on behalf of the District. (See note 6). Truckee Donner Public Utility District Community Facilities District No. 03-1 (Old Greenwood) is a legal entity created to issue special tax bonds to finance various public improvements needed to develop property located within Old Greenwood. (See note 10). Truckee Donner Public Utility District Community Facilities District No. 04-1 (Gray's Crossing) is a legal entity created to issue special tax bonds to finance various public improvements needed to develop property located within Gray's Crossing. (See note 10). Separate standalone financial statements are not available for the blended component units described above. Unless noted, disclosures relating to the component units are the same as for the District. B. ACCOUNTING POLICIES The financial statements of the District have been prepared in conformity with accounting principles generally accepted in the United States of America. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset used. Revenues, expenses, gains, losses, assets and liabilities, that are a result of exchange and exchange like transactions, are recognized when the exchange takes place. Page 129 Page 39 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2024 and 2023 NOTE 1 —ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. USE OF ESTIMATES Preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. D. CASH AND CASH EQUIVALENTS For the purpose of the accompanying statement of cash flows, the District considers all highly liquid instruments with original maturities of three months or less when purchased to be cash equivalents. E. INVESTMENTS The District pools cash and investments. The District's investment policy allows for investments in instruments permitted by the California Government Code and/or the investments permitted by the trust agreements on District financing. The District's investment policy contains provisions intended to limit the District's exposure to interest rate risk, credit risk, and concentration of credit risk. Investment income from pooled investments is allocated to all funds in the pool. Interest is allocated on the basis of month end cash amounts for each fund as a percentage of the total balance. The District categorizes the fair value measurements of its investments based on the hierarchy established by generally accepted accounting principles. The fair value hierarchy, which has three levels, is based on the valuation inputs used to measure an asset's fair value: Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. The District does not have any investments that are measured using Level 3 inputs. Changes in fair value that occur during a fiscal year are recognized as investment income (loss) reported for that fiscal year. Investment Income (loss) includes interest earnings, changes in fair value, and any realized gains or losses upon the sale of investments. F. DESIGNATED ASSETS The board has designated certain resources for future capital projects, replacements, and operational needs. G. RESTRICTED ASSETS Restricted assets are assets restricted by the covenants of long-term financial arrangements or other third- party legal restrictions. Restricted assets are used in accordance with their requirements and where both restricted and unrestricted resources are available for use, restricted resources are used first and then unrestricted as they are needed. Page 130 Page 40 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2024 and 2023 NOTE 1 —ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) H. ACCOUNTS RECEIVABLE AND ALLOWANCES FOR DOUBTFUL ACCOUNTS Accounts receivable are recorded at the invoiced amount and are reported net of allowances for doubtful accounts of$39,900 and $39,200 for 2024 and 2023, respectively. Receivables are considered past due after 30 days and routine collection efforts begin, while remaining consistent with regulatory mandates. District Code allows for the Treasurer to write off delinquent account balances up to 0.17% of the amounts billed. This write-off process occurs semi-annually. I. MATERIALS AND SUPPLIES Materials and supplies are recorded at average cost. J. DEBT PREMIUM, BOND ISSUANCE COSTS,AND DISCOUNTS Original issue and reacquired bond premiums and discounts relating to revenue bonds are amortized over the terms of the respective bond issues using the effective interest method. Debt issuance costs are expensed in the period incurred. K. SPECIAL ASSESSMENT RECEIVABLE Special assessment receivable represents special tax receivables related to community facilities districts. Refer to note 1T and note 10 for additional information. L. CAPITAL ASSETS Capital assets are generally defined by the District as assets with an initial, individual cost of more than $10,000 and an estimated useful life of at least two years. Capital assets of the District are stated at the lower of cost or the acquisition value at the time of contribution to the District. Major outlays for plant are capitalized as projects are constructed. Depreciation on capital assets is calculated using the straight-line method over the estimated useful lives of the assets, which are as follows: Distribution Plant Electric 23—35 years Water 15—40 years Computer software and hardware 3— 7 years Building and improvements 20—33 years Equipment and furniture 4— 10 years Page 131 Page 41 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2024 and 2023 NOTE 1 —ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) M. COMPENSATED ABSENCES Under terms of employment, employees are granted sick leave and vacations in varying amounts. Leave that is accrued and more likely than not to be used or paid-out has been valued as a compensated absences liability as of year-end. The valuation is measured with year-end rates of pay and includes salary-related payments that are directly and incrementally associated with the accrued leave. The liability is liquidated from general operating revenues of the District. N. REVENUE RECOGNITION Unbilled revenues, representing estimated consumer usage for the period between the last meter reading and the end of the period, are accrued in the period of consumption. Water customers without meters are billed on a flat-rate basis, and revenues are recorded as billed. Revenues from connection fees are recognized upon completion of the connection. Income that the District has earned through investing its excess cash is reflected within income from investments when earned. O. REVENUE AND EXPENSE CLASSIFICATION The District distinguishes operating revenues and expenses from non-operating items in the preparation of its financial statements. Operating revenues and expenses generally result from providing electric and water services in connection with the District's principal ongoing operations. The principal operating revenues are sales to customers. The District's operating expenses include power purchases, labor, materials, services, and other expenses related to the delivery of electric and water services. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses, or capital contributions and other. P. POWER PURCHASES AND TRANSMISSION In 1999,the District entered into an agreement with Sierra Pacific Power Company dba NV Energy(SPPC), whereby SPPC will provide transmission services to the District through December 31, 2027. The District uses this transmission service to import energy over SPPC's transmission system to serve District load. In addition, the District purchases scheduling services from Utah Municipal Power Systems (UAMPS)and the scheduling services are included in the monthly power billings from UAMPS. The purchase of transmission services from SPPC represented 3.3% and 7.6% of total purchased power costs in 2024 and 2023, respectively, including Energy Imbalance Market (EIM) cost and credits. Transmission services from SPPC, excluding EIM amounts, represented 5.2% and 5.3% of total purchased power costs in 2024 and 2023, respectively. In December of 2005, the District entered into an agreement with UAMPS. Subsequently, the District entered several pooling appendices for power capacity and energy that relate to various time periods from January 2008 through March 2028. Also in 2009, the District signed an agreement with UAMPS for approximately 5 MW of the Nebo natural gas generation plant capacity. In August 2012, the Horse Butte Wind project began commercial operation and the District owns approximately 15 MW of nameplate capacity that generates about 5 MW on average. The District has also invested in the Veyo Heat Recovery project that came online in mid-2016. The District receives about 1.7 MW of carbon-free generation from this resource. In September 2019 the District entered into 25-year Purchase Power Agreement with UAMPS for a 6MW share of the Red Mesa Solar Project. The Project was developed by UAMPS and the Navajo Tribal Utility Authority for use by UAMPS members and began providing power in April 2024. The Red Mesa Solar Project price for energy is among the lowest wholesale price paid by the District for any resource. It is estimated that a 6MW share equates to about 10 percent of total annual District energy requirements. Page 132 Page 42 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2024 and 2023 NOTE 1 —ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Q. POWER PURCHASES AND TRANSMISSION(CONTINUED) In August of 2007, the District entered into an agreement with Western Area Power Administration (WAPA) for the delivery of Stampede Dam Hydroelectric generation. In accordance with this agreement,the District is entitled to a portion of the power generated by Stampede Dam. This generation is dependent upon the amount of water that is made available to the generator. This agreement's term was extended in 2024, with a new effective through date of December 31, 2044. In 2024 and 2023, the UAMPS contract, along with its appendices, and the WAPA contract for Stampede Dam Hydroelectric generation comprised the majority of a diversified power portfolio that balanced risk and costs for the District. R. CAP AND TRADE PROGRAM PROCEEDS California Assembly Bill 32 (AB32) is an effort by the State of California to set a 2020 greenhouse gas (GHG) emissions reduction goal into law. AB32 requires California to lower greenhouse gas emissions to 1990 levels by 2020.Central to this initiative is the implementation of a cap and trade program,which covers major sources of GHG emissions in the State including power plants. The California Cap and Trade Program is designed to achieve cost-effective emissions reductions across the capped sectors. The program sets maximum statewide GHG emissions for all covered sectors each year ("cap"), and allows covered entities to sell off allowances ("trade"). An allowance is a tradable permit that allows the emission of one metric ton of CO2. The California carbon price is driven by allowance trading. The District is subject to AB32 and has excess allowances due to reducing carbon-based generation in its power portfolio. In 2024 and 2023, the District sold its excess allowances in the program auctions and the proceeds of $518,027 and $401,879 for the respective years were recorded as operating revenues. The auction proceeds are held in a restricted fund and are used to purchase qualified renewable power. (See note 2) S. INCOME TAXES As a government agency, the District is exempt from payment of federal and state income taxes. T. TAX REVENUES Beginning in 2004, the District levied ad valorem property tax on all the taxable property within the Old Greenwood District in an amount sufficient to pay the yearly principal and interest on the Special Assessment District Tax Bonds. (See notes 6 and 10). The District had revenues of$856,587 in 2024 and $838,125 in 2023. On January 28, 2014, refunding bonds were sold to a private investment firm and the proceeds were used to call the 2003 Old Greenwood bonds on March 1, 2014. The 2014 refunding bonds have the same rate and method of apportionment conditions on the Old Greenwood properties as the original 2003 bonds. Beginning in 2005, the District levied ad valorem property tax on all taxable property within the Gray's Crossing District in an amount sufficient to pay the yearly principal and interest on the Special Assessment District Tax Bonds. (See notes 6 and 10). The District had revenues of$3,232,986 in 2024 and $2,980,447 in 2023. 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 8). Page 133 Page 43 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2024 and 2023 NOTE 1 —ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) U. CONTRIBUTED CAPITAL ASSETS A portion of the District's capital assets have been obtained through amounts charged to developers for plant constructed by the District; direct contributions of capital assets from developers and other parties; as well as assessments of local property owners. These items are recognized within capital assets as construction is completed for plant constructed by the District based on the cost of the items,when received for contributed capital assets based on the actual or estimated fair value of the contributed items, or upon completion of the related project for development agreements.The District records amounts received within capital contributions when a legally enforceable claim is established. Until the District meets the criteria to record the amounts described above as capital contributions, any amounts received are recorded within unearned revenues on the Statement of Net Position. V. LEASES The District, as a lessee, recognizes a lease liability and an intangible right-to-use asset at the commencement of a lease, unless the lease is considered a short-term or transfers ownership of the underlying assets. Right-to-use lease assets are measured based on the net present value of the payments to be made over the term of the agreement, using District's incremental borrowing rate. Re-measurement of the lease liability occurs when there is a change in the lease term and/or other changes that are likely to have a significant impact on the lease liability. The incremental borrowing rate used in determining the present value of lease payments is based on U.S. Treasury rates, corresponding to the same term of lease contracts plus basis points (BSP), determined by the District's historical borrowing spread and similar entities in the utility industry. Amortization of the discount on the lease liability is reported as an outflow of resources. Payments are allocated first to the accrued interest liability and then to the lease liability. Variable lease payments based on the usage of the underlying assets are not included in the lease liability calculations and are recognized as outflows of resources in the periods in which the obligation for the payments is incurred. The District, as a lessor, recognizes a lease receivable and deferred inflows of resources at the commencement of the lease term. The lease receivable is measured using the present value of the lease payments expected to be received for the lease term, based on District's incremental borrowing rate, which approximates the discount rate the District charges the lessee. Leases with provisions for rent changes based on the consumer price index (CPI) or other market indexes, result in additional variable lease revenues that are not included in the measurement of the lease receivables. Deferred inflows of resources are measured at the value of the lease receivable in addition to any payments received at or before the commencement of the lease term related to future periods. Amortization of the discount on the lease receivable is reported as interest revenue for that period. Deferred inflows of resources are recognized as lease revenue on a straight-line basis over the term of the lease. Any initial direct costs are reported as an outflow of resources for that period. Re-measurement of lease receivable occurs when there are modifications, including but not limited to changes in the lease charges, lease term, and adding or removing an underlying asset to the lease agreements. In the case of partial or full lease termination, the District will reduce the carrying value of the lease receivable and the related deferred inflow of resources and include a gain or loss for the difference. Page 134 Page 44 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2024 and 2023 NOTE 1 —ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) W. LEASES(CONTINUED) Short-term leases are certain leases that, at the commencement of the lease term, have a maximum possible term under the lease contract of 12 months or less, including any options to extend, regardless of their probability of being exercised. Leases assessed by management as short-term, perpetual, or insignificant are recognized as outflows of resources (expenses) or inflows of resources (revenue) based on the payment provisions of the lease agreement. X. SUBSCRIPTION-BASED INFORMATION TECHNOL OG Y ARRANGEMENTS(SBITA) A SBITA is defined as a contractual agreement that conveys control of the right to use another party's (a SBITA vendor's) information technology (IT) software, alone or in combination with tangible capital assets (the underlying IT assets), as specified in the contract for a minimum contractual period of greater than one year, in an exchange or exchange-like transaction. The District uses various SBITA assets, such as software as a service. The related obligations are presented in amounts equal to the present value of subscription payments, payable during the remaining SBITA term. SBITA assets are reported with capital assets (see note 4) and SBITA liabilities are reported with liabilities on the statement of net position (see note 7). Y. PENSION For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions,and pension expense, information about the fiduciary net position of the District's California Public Employee's Retirement System (CaIPERS) plans (Plans) and the additions to/deductions from the Plans' fiduciary net position have been determined on the same basis as they are reported by CaIPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Z. DEFERRED OUTFLOWS OF RESOURCES AND DEFERRED INFLOWS OF RESOURCES Deferred Outflows of Resources: This separate financial statement element represents consumption of net assets that applies to future periods and so will not be recognized until that time. Deferred Inflows of Resources: This separate financial statement element represents an acquisition of net assets that applies to future periods and so will not be recognized as an inflow of resources until that time. Page 135 Page 45 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2024 and 2023 NOTE 1 —ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) AA. UNAMORTIZED LOSS ON BOND REFUNDING For current and advanced refunding results in defeasance of debt, the difference between the reacquisition price and the net carrying amount of the old debt (gain or loss) is deferred and amortized as a component of interest expense over the remaining life of the old debt or the new debt, whichever is shorter. These amounts are reported as deferred outflow on the statements of net position. BB. COMPARATIVE INFORMATION Comparative data for the prior year has been presented in certain sections of the accompanying financial statements in order to provide an understanding of changes in the District's financial position and operations. Certain amounts presented in the prior year have been reclassified to be consistent with the current year's presentation. CC.RECENT ACCOUNTING PRONOUNCEMENTS IMPLEMENTED BY THE DISTRICT GASB Statement No.94, "Public-Private and Public-Public Partnerships and Availability Payment Arrangements." The primary objective of this Statement is to improve financial reporting by addressing issues related to public-private and public-public partnership arrangements (PPPs). The requirements of this Statement are effective for fiscal years beginning after June 30, 2023, and all reporting periods thereafter. This statement is effective beginning with the District's fiscal year ending December 31, 2023. The District has implemented this statement and determined that this pronouncement has no changes in financial reporting of the District. GASB Statement No.96, "Subscription-Based Information Technology Arrangements."The purpose of this Statement is to provide guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITAs)for government end users (governments). The requirements of this Statement are effective for fiscal years beginning after June 30, 2023, and all reporting periods thereafter. This statement is effective beginning with the District's fiscal year ending December 31, 2023. The District implemented this statement in 2023. GASB Statement No.99, "Omnibus 2022." The primary objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve consistency of authoritative literature by addressing (1) practice issues that have been identified during implementation and application of certain GASB Statements and (2) accounting and financial reporting for guarantees. The requirements of this statement related to leases, PPPs and SBITAs are effective ethe the District's fiscal year ending December 31, 2024 and the requirements related to financial guarantees and the classification and reporting of derivative instrument within the scope of Statement 53 are effective for the District's fiscal year ending December 31, 2024, with earlier adoption encouraged. The District has implemented this statement and determined that this pronouncement has no changes in financial reporting of the District. GASB Statement No. 100, Accounting Changes and Error Corrections - An Amendment of GASB Statement No. 62. The primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. The requirements of this Statement are effective for fiscal years beginning after June 15, 2023, and all reporting periods thereafter. The District has implemented this statement. Page 136 Page 46 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2024 and 2023 NOTE 1 —ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) DD. RECENT ACCOUNTING PRONOUNCEMENTS IMPLEMENTED BY THE DISTRICT(CONTINUED) GASB Statement No. 101, Compensated Absences. The primary objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences by aligning the recognition and measurement guidance under a unified model and amending certain previously required disclosures. The requirements of this Statement are effective for fiscal years beginning after December 15, 2024, and all reporting periods thereafter. The District has implemented this statement. See Notes 1(M), 9, and 17 for more information. GASB Implementation Guide No. 2023-1, Implementation Guidance Update - 2023. This Implementation Guide amends Implementation Guide No. 2019-3, Leases, Question 4.16, and Implementation Guide No. 2021-1, Implementation Guidance Update-2021, Question 4.13. The requirements of this Statement are effective for fiscal years beginning after June 15, 2023, and all reporting periods thereafter. The District has implemented this Implementation Guidance. EE.ACCOUNTING PRONOUNCEMENTS TO BE IMPLEMENTED IN UPCOMING YEARS These statements are not effective until January 1, 2025 or later and may be applicable for the District. The District has not determined what impact, if any, these pronouncements will have on the financial statements. GASB Statement No. 102, Certain Risk Disclosures. The primary objective of this Statement is to provide users of government financial statements with essential information about risks related to a government's vulnerabilities due to certain concentrations or constraints.The requirements of this Statement are effective for fiscal years beginning after June 15, 2024, and all reporting periods thereafter. GASB Statement No. 103, Financial Reporting Model Improvements. The objective of this Statement is to improve key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision making and assessing a government's accountability. This Statement also addresses certain application issues. The requirements of this Statement are effective for fiscal years beginning after June 15, 2025, and all reporting periods thereafter. GASB Statement No. 104, Disclosure of Certain Capital Assets.The objective of this Statement is to provide users of government financial statements with essential information about certain types of capital assets. The requirements of this Statement are effective for fiscal years beginning after June 15, 2025, and all reporting periods thereafter. Page 137 Page 47 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2024 and 2023 NOTE 2—CASH, CASH EQUIVALENTS, AND INVESTMENTS Cash, cash equivalents and investments are recorded in accounts as either restricted or unrestricted as required by the District's certificates of participation indentures or other third-party legal restrictions. Restricted assets represent funds that are restricted by certificates of participation covenants or third-party contractual agreements. Assets that are allocated by resolution of the Board of Directors are considered to be Board designated assets. Board designated assets are a component of unrestricted assets as their use may be redirected at any time by approval of the Board. Upon Board approval, assets from board designated accounts may be used to pay for selected capital projects.Such accounts have been designated by the Board for the following purposes: Electric Capital Replacement Starting in 2009,the Board set aside funds designated for future electric infrastructure replacement. Electric Vehicle Reserve Beginning in 2009, the Board set aside funds designated for future electric utility vehicle replacements. Electric Rate Reserve In compliance with Board rules, the District created an electric rate stabilization fund in anticipation of future costs. In 2024, there was $2.36 million utilization of these funds to offset increased power costs in 2023 and January 2024 (cash flow in 2024) in lieu of directly all-at-once raising electric rates. Recovery of this utilization is planned over four years and included in the current rates approved (2024 and 2025). There was no utilization of this reserve in 2023. Water Vehicle Reserve Beginning in 2009, the Board set aside funds designated for future water utility vehicle replacements. Water Capital Replacement Starting in 2021, the Board set aside funds designated for future water infrastructure replacement. Prepaid Connection Fees In compliance with Board rules, the District has set aside prepaid connection fees to cover installation costs of water services. Debt Service and Operating Reserve Fund Starting in 2021, the Board combined this operating reserve designation into the operating classification, consistent with Board rules. Donner Lake Assessment District Surcharge Fund The District established a monthly water billing surcharge in the amount of $6.65 applicable to customers in the Donner Lake area to provide revenue to pay the remainder of the cost of reconstruction effective October 2006. Deferred Liabilities Reserve, Electric and Water Starting in 2017, the Board established a reserve to protect the District from volatility in pension, other post-employment benefits, and worker's compensation premiums. Page 138 Page 48 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2024 and 2023 NOTE 2—CASH, CASH EQUIVALENTS, AND INVESTMENTS (Continued) As of December 31, Board designated accounts at fair value consisted of the following: 2024 2023 Electric capital replacement fund $ 10,807,265 $ 10,376,743 Electric vehicle reserve 1,932,621 1,478,862 Electric rate reserve 5,996,205 5,149,487 Electric deferred liabilities reserve 2,267,444 2,169,608 Water vehicle reserve 728,607 451,654 Water capital replacement 4,356,899 3,059,078 Prepaid connection fees 88,057 83,354 Donner Lake Assessment District surcharge fund 223,320 200,448 Water deferred liabilities reserve 120,249 113,826 Totals $ 26,520,667 $ 23,083,060 Certain assets have been restricted by bond covenants or third-party contractual agreements for the following purposes: Certificates of Participation Prepayments to the Trustee from the District for upcoming debt payments and unspent debt project proceeds of$7,039,834 and $7,768,748 on December 31, 2024 and 2023, respectively. Special Tax Bonds The terms of the special tax bonds issued for the Mello-Roos Community Facilities Districts (CFD) require reserve funds as security for each principal and interest payment as they come due. Reserve funds are set aside as prescribed in the loan documents. These reserve funds are held by Bank of New York Mellon Trust Company. Facilities Fees The District charges facilities fees to applicants for new service to cover the costs of infrastructure needed to meet their systems demand. The use of such funds is restricted by California state law. AB32 Cap and Trade Auction Fund The District electric utility is identified as an "Electric Distribution Utility" under the Cap and Trade regulations and is therefore eligible to receive a direct allocation of allowances that can be sold in an auction. The proceeds from quarterly allowance auctions are held in this restricted fund and are used to purchase qualified renewable power. These funds are intended to mitigate the burden on the consumer without impacting a carbon price signal. Low Carbon Fuel Standard (LCFS) Credits Proceeds from credit sales are only allowed to be used towards efforts that promote and/or facilitate transportation electrification within the District's service territory. Other(Area Improvement Funds) The District received funds from the County of Nevada,which are to be used only for improvements to specific areas within the District's boundaries in Nevada County. These areas include various Nevada County assessment districts. Page 139 Page 49 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2024 and 2023 NOTE 2—CASH, CASH EQUIVALENTS, AND INVESTMENTS (Continued) As of December 31, restricted cash and cash equivalents and investments at fair value consisted of the following: 2024 2023 Certificates of Participation $ 7,356,094 $ 8,075,860 Special tax bonds 1,972,161 1,989,382 Facilities fees 2,560,379 2,383,760 AB 32 Cap and Trade Auction fund 481,113 445,980 Other(area improoement funds) 194,192 186,126 LCFS Credits 112,056 89,579 Total Restricted Cash and Cash Equivalents and Investments $ 12,675,995 $ 13,170,687 Cash and investments are comprised of the following cash and cash equivalents and investments as of December 31: 2024 2023 Cash and cash equivalents $ 49,940,531 $ 42,948,790 Investments—government bonds 7,219,226 9,383,456 Totals $ 57,159,757 $ 52,332,246 Cash equivalents substantially consist of deposits in the state pooled fund, Placer County pooled fund, money market funds and investments. Adjustments necessary to record investments at fair market value are recorded in the operating statement as increases or decreases in investment income. Market values may have changed significantly after year end. FAIR VALUE MEASUREMENT The District applies the provisions of Governmental Accounting Standards Board (GASB) Statement No. 72, Fair Value Measurement and Application, which requires governmental entities, to report certain investments at fair value on the Statements of Net Position. Investments are valued at fair value at December 31. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The District categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices for identical instruments in active markets. Level 2 inputs are quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model derived valuations in which all significant inputs are observable. Level 3 inputs are valuations derived from valuation techniques in which significant inputs are unobservable. Page 140 Page 50 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2024 and 2023 NOTE 2—CASH, CASH EQUIVALENTS, AND INVESTMENTS (Continued) FAIR VALUE MEASUREMENT(CONTINUED) The District classifies its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The District has the following fair value measurements as of December 31, 2024: • US Government bonds and agency securities are valued using observable inputs (Level 2 inputs). INVESTMENTS AUTHORIZED BY THE DISTRICT'S INVESTMENT POLICY The District adopted an investment policy in 2006 which allowed for investments in instruments permitted by the California Government Code and/or the investments permitted by the trust agreements on District financing, including investments in the local government investment fund pool administered by the State of California (LAIF), Placer County Treasurer's Investment Portfolio (PCTIP) pooled investment, Utah Public Treasurers' Investment Fund (UPTIF), and California Cooperative Liquid Assets Securities System (California CLASS). 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, 2024 and 2023 the District's deposits and investments at fair value were held as follows: 2024 2023 Cash on hand $ 2,400 $ 2,400 Deposits 2,484,475 1,310,250 LAIF 25,999,121 25,476,710 PCTIP 3,342,552 6,568,341 California CLASS 8,829,839 - UPTIF 8,566,240 8,807,962 Bank Certificates of Deposit - 1,407,518 Money Market Funds 715,903 783,127 U.S. Government Agency Securities 6,256,663 7,037,592 U.S. Government Bonds 962,564 938,346 Totals $ 57,159,757 $ 52,332,246 DISCLOSURES RELATING TO INTEREST RATE RISK Interest rate risk is the risk that changes in the market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment,the greater is the sensitivity of its fair value to changes in market interest rates. Information about the sensitivity of the fair values of the District's investments to market interest rate fluctuations is provided by the following table that shows the District's investments by maturity for 2024 and 2023: Maturity as of December 31, Investments and Deposits 2024 2023 LAIF 3 months or less 3 months or less PCTIP 3 months or less 3 months or less California CLASS 3 months or less UPTIF 3 months or less 3 months or less Federated U.S.Treasury Cash Reserve 3 months or less 3 months or less Morgan Stanley Treasury 3 months or less 3 months or less Fidelity Money Market Government Portfolio 57 3 months or less 3 months or less Dreyfus Treasury Securities 3 months or less 3 months or less Federal U.S Treasury Bonds 1.0 to 1.5 years 1.5 to 2.5 years Federal Agencies Bonds 1.0 to 1.5 years 1.5 to 2.5 years Bank Certificates of Deposit(FDIC Insured) 1.0 to 1.5 years 1.5 to 2.5 years Page 141 Page 51 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2024 and 2023 NOTE 2—CASH, CASH EQUIVALENTS, AND INVESTMENTS (Continued) 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, PCTIP, UPTIF, and California CLASS do not have a rating provided by a nationally recognized statistical rating organization. The Morgan Stanley Treasury is rated AAAm by S&P and Aaa- mf by Moody's. The Federated U.S. Treasury Cash Reserve is rated AAAm by S&P and Aaa-mf by Moody's. Federal Farm Credit Banks is rated AA+ by S&P and Aaa by Moody's. The Dreyfus Treasury Securities is rated Aaa-mf by Moody's and AAAm by S&P. The Fidelity Money Market is rated AAA-mf by Moody's and AAAm by S&P. CUSTODIAL CREDIT RISK Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The District's investment policy does not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits. However, the California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless waived by the government unit). The market value of pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. As of December 31, 2024 and 2023 bank deposits exceeded FDIC insurance coverage by$2,261,014 and $2,045,463 respectively. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker/dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the District's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for investments. With respect to investments, custodial credit risk generally applies only to direct investments in marketable securities. Custodial credit risk does not apply to a local government's indirect investment in securities using mutual funds or governmental investment pools (such as LAIF). DEPOSIT IN STATE INVESTMENT POOL The District is a voluntary participant in the Local Agency Investment Fund (LAIF). This investment fund has an equity interest in the State of California's(State's) Pooled Money Investment Account(PMIA). PMIA funds are on deposit with the State's Centralized Treasury System and are managed in compliance with the California Government Code according to a statement of investment policy which sets forth permitted investment vehicles, liquidity parameters, and maximum maturity of investments. The fair value of the District's investment in this pool is reported in the accompanying financial statements at amounts based upon the District's pro-rata share of the fair value provided by the LAIF for the entire LAIF portfolio (in relation to the amortized cost of the portfolio). The balance available for withdrawal is based on the accounting records maintained by the LAIF, which are recorded on an amortized cost basis. Page 142 Page 52 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2024 and 2023 NOTE 2—CASH, CASH EQUIVALENTS, AND INVESTMENTS (Continued) DEPOSIT IN PLACER COUNTY TREASURER INVESTMENT POOL The District is a voluntary participant in the Placer County Investment Portfolio (PCTIP). The District is eligible to participate in PCTIP because a portion of the District's service area is in Placer County. Investments are on deposit with the Placer County Treasurer and are managed in compliance with the California Government Code according to a statement of investment policy which sets forth permitted investment vehicles, liquidity parameters, and maximum maturity of investments. The fair value of the District's investment in this pool is reported in the accompanying financial statements at amounts based upon the District's pro-rata share of the fair value provided by Placer County Treasurer for the entire PCTIP (in relation to the amortized cost of the portfolio). The balance available for withdrawal is based on the accounting records maintained by the Placer County Treasurer, which are recorded on an amortized cost basis. DEPOSIT IN UTAH PUBLIC TREASURERS'INVESTMENT FUND The District is a voluntary participant in the Utah Public Treasurers' Investment Fund (UPTIF). The District is eligible to participate in UPTIF through its membership with Utah Associated Municipal Power Systems (UAMPS). Investments are on deposit with State of Utah public treasury and investments are restricted to those authorized by the Utah Money Management Act and rules of the Money Management Council of Utah. The fair value of the District's investments in this pool is reported in the accompanying financial statements at amounts based upon the District's pro-rata share of the fair value provided by UPTIF through UAMPS Member Retention Fund. DEPOSIT IN CALIFORNIA COOPERATIVE LIQUID ASSETS SECURITIES SYSTEM The District is a voluntary participant in the California Cooperative Liquid Assets Securities System (California CLASS). The District is eligible to participate through its membership in California CLASS, a Joint Powers Authority investment pool as set forth in Section 53601(p)of the California Government Code. California CLASS provides public agencies the opportunity to invest funds on a cooperative basis in rated pools that are managed in accordance with state law with the primary objectives of offering participants safety, daily and next-day liquidity, and optimized returns. The District participates in the Prime Fund of California Class which has an AAAm rating by S&P Global Ratings NOTE 3—TELECOMMUNICATION SERVICES In 1999, the District initiated a project to expand its basic service offerings to include internet access, cable television and voice delivered over fiber optic networks (the broadband project). The District completed the broadband design project and obtained the necessary regulatory approvals and franchises needed to construct and launch the broadband project. A local cable television service provider filed an objection in September 2004 with the Nevada County Local Agency Formation Commission (LAFCO), the entity responsible for providing regulatory approval for the broadband project. After denying the cable television provider's request for a reconsideration of their approval of the District's project, the cable television provider filed a lawsuit against LAFCO. The District was not named in the lawsuit. A ruling on the lawsuit was received in January 2006. LAFCO prevailed on all portions of the cable television provider's claim.The cable television provider filed an appeal; however, in June of 2007, the Court ruled in favor of LAFCO, upholding the initial ruling. Since 2009, the District has been exploring options to sell or lease the existing infrastructure to provide a return on investment in the project. Expenses incurred by the District to date on the broadband project total $2,834,079. In 2024 and 2023 there were no material expenditures for this project. In the year 2018, the District signed a Memorandum of Understanding with Plumas Sierra Telecommunications to offer services utilizing these four fibers from Reno to Sacramento in future years. Page 143 Page 53 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2024 and 2023 NOTE 4—CAPITAL ASSETS Capital assets consist of the following at December 31, 2024 and 2023: January 1, December 31, Plant Balances 2024 Additions Reductions 2024 Electric distribution $ 84,810,518 $ 5,969,542 $ (1,475,304) $ 89,304,756 Water distribution 142,310,579 16,203,360 (5,294,977) 153,218,962 General plant 21,605,806 1,565,135 (165,881) 23,005,060 Total 248,726,903 23,738,037 (6,936,162) 265,528,778 Accumulated Depreciation and Amortization Electric distribution (27,377,063) (2,937,875) 933,128 (29,381,810) Water distribution (64,952,166) (4,977,391) 510,252 (69,419,305) General plant (14,358,278) (1,028,942) 149,294 (15,237,926) Total (106,687,507) (8,944,208) 1,592,674 (114,039,041) Plant Sub-Total Electric distribution 57,433,455 3,031,667 (542,176) 59,922,946 Water distribution 77,358,413 11,225,969 (4,784,725) 83,799,657 General plant 7,247,528 536,193 (16,587) 7,767,134 Total 142,039,396 14,793,829 (5,343,488) 151,489,737 Construction work in progress 6,631,266 13,081,887 (16,015,247) 3,697,906 Totals $ 148,670,662 $ 27,875,716 $ (21,358,735) $155,187,643 January 1, December 31, Plant Balances 2023 Additions Reductions 2023 Electric distribution $ 80,851,918 $ 5,490,132 $ (1,531,532) $ 84,810,518 Water distribution 132,306,300 14,117,852 (4,113,573) 142,310,579 General plant 20,857,930 898,737 (150,861) 21,605,806 Total 234,016,148 20,506,721 (5,795,966) 248,726,903 Accumulated Depreciation and Amortization Electric distribution (25,615,227) (2,826,914) 1,065,078 (27,377,063) Water distribution (60,888,418) (4,666,745) 602,997 (64,952,166) General plant (13,519,645) (978,710) 140,077 (14,358,278) Total (100,023,290) (8,472,369) 1,808,152 (106,687,507) Plant Sub-Total Electric distribution 55,236,691 2,663,218 (466,454) 57,433,455 Water distribution 71,417,882 9,451,107 (3,510,576) 77,358,413 General plant 7,338,285 (79,973) (10,784) 7,247,528 Total 133,992,858 12,034,352 (3,987,814) 142,039,396 Construction work in progress 3,604,888 17,621,656 (14,595,278) 6,631,266 Totals $ 137,597,746 $ 29,656,008 $ (18,583,092) $148,670,662 General plant assets and accumulated depreciation include subscription-based information technology arrangements (SBITA) which require the District to record an intangible right-to-use subscription asset. SBITA asset additions in 2023 amounted to$627,600 and there were no additions of SBITA assets in 2024. The net SBITA assets as of December 31, 2024 are$281,003 with accumulated amortization of$346,597. The net SBITA assets as of December 31, 2023 are$420,433 with accumulated amortization of$207,167. In accordance with FERC guidelines for utility accounting, additional activity is reflected in the accumulated depreciation accounts for retirement costs related to upgrading capital investment projects and replacing electric distribution, metering and general assets. Accordingly, the retirement costs are reported as part of the change in accumulated depreciation. As of December 31, 2024 and 2023, the plant in service included land and land rights of$3,318,346 which are not being depreciated. A portion of the plant has been contributed to the District. When replacement is needed, the District replaces the contributed plant with District-financed plant. Page 144 Page 54 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2024 and 2023 NOTE 5— LEASES RECEIVABLE The District is reporting leases receivable of$1,432,730 (split between current amount$42,376 and non- current amount of$1,390,354)as of December 31, 2024. For 2024,the District reported lease revenue (as a component of other operating revenues) of $73,695 and interest income of $61,129 related to lease payments received. Comparatively, as of December 31, 2023, the District reported leases receivable of $1,428,859 (split between current amount of $39,261 and non-current amount of $1,389,598) and lease revenue (as a component of other operating revenues) of $45,476 and interest income of $90,647. The leases receivable are comprised of four cellular and or radio towers, each with five year initial terms, and include renewal increments of up to five, each with five year increments. The District is reasonably certain each of the lessees will renew respective lease for the available extensions. As of December 31, 2024, future minimum lease payments due to the District are as follows: Year Ending Amount 2025 $ 102,706 2026 105,273 2027 107,905 2028 110,603 2029 96,513 2030 - 2034 490,168 2035 -2039 450,340 2040 - 2044 509,519 2045 -2046 243,730 Total Lease Payments 2,216,757 Less Interest (784,027) Present value of leases receivable $ 1,432,730 Page 45 Page 55 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2024 and 2023 NOTE 6— LONG-TERM DEBT Long-term debt consisted of the following at December 31, 2024: January 1, December 31, Due within 2024 Additions Reductions 2024 one year Special Tax Bonds—Mello Roos, CFD Old Greenwood,4.18%,due serially to2032 $ 6,927,600 $ $ (570,300) $ 6,357,300 $ 611,100 Special Tax Bonds—Mello Roos, CFD Grays Crossing,3.25%to, 5.7%,due seriallyto 2035(net of unamortized discounts of $49,945) 11,405,368 (555,313) 10,850,055 620,000 Special Tax Bonds—Mello Roos, CFD Grays Crossing,3.50%to 5.50%,due seriallyto 2035(net of unamortized discounts of $5,519) 13,823,963 (709,482) 13,114,481 770,000 Certificates of Participation— Water,2.00%to 4.00%, due seriallyto 2035 (net premiums of $285,933) 9,682,951 (707,018) 8,975,933 710,000 Certificates of Participation Water,4.00%to 5%,due semiannually to 2052,secured by real and personal property. (net premiums of $1,285,708) 15,927,461 (286,753) 15,640,708 255,000 Certificates of Participation Electric,4.00%to 5%,due semiannually to 2052,secured by real and personal property. (net premiums of $231,511) 6,571,801 (155,290) 6,416,511 155,000 Totals $ 64,339,144 $ $ (2,984,156) $ 61,354,988 $ 3,121,100 Page 146 Page 56 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2024 and 2023 NOTE 6— LONG-TERM DEBT (Continued) Long-term debt consisted of the following at December 31, 2023: January 1, December 31, Due within 2023 Additions Reductions 2023 one year Special Tax Bonds—Mello Roos, CFD Old Greenwood,4.18%,due serially to 2032 $ 7,455,800 $ $ (528,200) $ 6,927,600 $ 570,300 Special Tax Bonds—Mello Roos, CFD Grays Crossing,3.25%to, 5.7%,due seriallyto 2035(net of unamortized discounts of $54,632) 11,925,681 (520,313) 11,405,368 560,000 Special Tax Bonds—Mello Roos, CFD Grays Crossing,3.50%to 5.50%,due seriallyto 2035(net of unamortized discounts of $6,037) 14,493,446 (669,483) 13,823,963 710,000 Certificates of Participation— Water,2.00%to 4.00%, due seriallyto 2035 (net premiums of $312,951) 10,364,969 (682,018) 9,682,951 680,000 Certificates of Participation Water,4.00%to 5%,due semiannually to 2052,secured by real and personal property. (net premiums of $1,332,461) 16,204,214 (276,753) 15,927,461 240,000 Certificates of Participation Electric,4.00%to 5%,due semiannually to 2052,secured by real and personal property. (net premiums of $241,801) 6,722,090 (150,289) 6,571,801 145,000 Totals $ 67,166,200 $ $ (2,827,056) $ 64,339,144 $ 2,905,300 Page 147 Page 57 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2024 and 2023 NOTE 6— LONG-TERM DEBT (Continued) During December 2003, the Old Greenwood Community Facilities District issued $12,445,000 of Special Tax Bonds, the net proceeds of which were utilized to finance various public improvements for property within Old Greenwood. (See note 10). The terms of the Special Tax Bonds call for debt service payments to be provided solely by taxes levied on and collected from the owners of the taxable land within Old Greenwood. The bonds are secured by land located within Old Greenwood. In January 2014, the original 2003 bonds issued for the Old Greenwood Community Facilities District were refunded (refinanced)by issuing 2014 bonds to a private investment firm at a lower rate, saving the property owners in Old Greenwood over $3 million over the term of the bonds. The 2014 bonds did not require a reserve fund. Therefore, the reserve fund of the 2003 bonds was utilized to reduce the principal. The 2014 bonds have similar terms and have the same rate and method of apportionment for the Old Greenwood parcel owners as the original 2003 bonds. During 2005 and 2004 respectively, the Gray's Crossing Community Facilities District issued $15,375,000 and $19,155,000 of Special Tax Bonds, the net proceeds of which were utilized to finance various public improvements for property within Gray's Crossing. (See note 10). The terms of the Special Tax Bonds call for debt service payments to be provided solely by taxes levied on and collected from the owners of the taxable land within Gray's Crossing. The bonds are secured by land located within Gray's Crossing. On October 12, 2006, through the Truckee Donner Public Utility District Financing Corporation on behalf of the District issued $26,570,000 of Certificates of Participation to refund 100% of the outstanding balance of Certificates issued in 1996, complete the funding of the Donner Lake Assessment District water system, and fund water system capital improvements.The refunding portion of the 2006 COP's,totaling$8,465,000, has an average interest rate of 4.10%. The refunded 1996 COP's had an average interest rate of 5.41%. The net proceeds of $7,500,557 (after payment of $63,733 in underwriting fees, insurance and other issuance costs)plus an additional$1,315,194 of reserve fund monies were used to prepay the outstanding debt service requirements on the 1996 COP's. The terms of the Certificates call for payments to be made only from the net revenues of the Water Division and the debt is secured by this revenue. These revenues are required to be at least equal to 125% of the debt service for each year. Donner Lake Assessment District property owners pay a monthly $6.65 water system upgrade surcharge through-out the 30-year term of the 2006 COP to reimburse the District for the$2.6 million cost incurred in excess of the 20-year tax assessment that ended in 2022. In 2015, a portion of the 2006 COP was refunded. Since a portion of the 2006 COP was used for advance refunding of previous COP, that portion could not be advance refunded at the time of the refunding. The new 2015 refunding did not require a reserve fund. The reserve fund was liquidated and applied towards reducing the debt principal. The estimated net present value savings were $1,600,000 or 10% over the remaining life of issuance. In 2016, the remaining portion of the 2006 COP was refunded. Due to the refunding an estimated net present value savings of$222,000 was achieved. In 2022, through the Truckee Donner Public Utility District Financing Corporation on behalf of the District, issued Water and Electric Certificates of Participation of $14,825,000 and $6,470,000, respectively, with average interest rate of 4.2% and 4.1% respectively. The purposes of the issuances were to fund capital improvement projects. Page 148 Page 58 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2024 and 2023 NOTE 6— LONG-TERM DEBT (Continued) Scheduled debt service payments by year by principal, interest, and total are: Year(s) Principal Interest Total 2025 $ 3,121,100 $ 2,890,674 $ 6,011,774 2026 3,340,600 2,740,540 6,081,140 2027 3,583,700 2,578,999 6,162,699 2028 3,840,200 2,405,400 6,245,600 2029 4,084,800 2,224,936 6,309,736 2030-2034 22,776,900 7,938,170 30,715,070 2035-2039 7,035,000 3,494,060 10,529,060 2040-2044 4,480,000 2,428,668 6,908,668 2045-2049 4,335,000 1,299,870 5,634,870 2050-2052 3,010,000 263,500 3,273,500 $ 59,607,300 $ 28,264,817 $ 87,872,117 Plus: Unamortized premiums 1,803,152 Less: Unamortized discounts (55,464) $ 61,354,988 Scheduled debt service payments by division are: CFD Gray's CFD Old Consolidated Year(s) Electric Water Crossing Greenwood Total 2025 $ 431,931 $ 1,990,588 $ 2,712,420 $ 876,835 $ 6,011,774 2026 429,181 1,984,438 2,771,730 895,791 6,081,140 2027 431,181 1,986,788 2,823,243 921,487 6,162,699 2028 432,681 1,987,188 2,882,368 943,363 6,245,600 2029 428,681 1,981,600 2,933,268 966,187 6,309,736 2030-2034 2,149,655 9,925,425 15,593,338 3,046,652 30,715,070 2035-2039 2,149,055 5,071,650 3,308,355 - 10,529,060 2040-2044 2,147,668 4,761,000 - - 6,908,668 2045-2049 874,620 4,760,250 - - 5,634,870 2050-2052 415,000 2,858,500 - - 3,273,500 Totals $ 9,889,653 $ 37,307,427 $ 33,024,722 $ 7,650,315 $ 87,872,117 Page 149 Page 59 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2024 and 2023 NOTE 7—SUBSCRIPTION-BASED INFORMATION TECHNOLOGY ARRANGEMENTS A summary of subscription-based information technology arrangements (SBITA) transactions for the year ending December 31, 2024 and 2023 respectively, are as follows: Subscription Liability: January 1, December 31, 2024 Additions Reductions 2024 Security Software $ 56,071 $ $ (27,441) $ 28,630 Microsoft Cloud Software 309,499 (113,260) 196,239 GIS Software 26,118 (26,118) - Call Center Software 32,765 (18,380) 14,385 Totals $ 424,453 $ $ (185,199) $ 239,254 January 1, December 31, 2023 Additions Reductions 2023 Security Software $ 112,243 $ - $ (56,172) $ 56,071 Microsoft Cloud Software 378,588 (69,089) 309,499 GIS Software 74,058 (47,940) 26,118 Call Center Software 62,711 (29,946) 32,765 Totals $ 627,600 $ $ (203,147) $ 424,453 The District has entered various SBITA contracts with subscription liability amounts indicated above. For all SBITA arrangements, the District has utilized an interest discount rate based on the estimated incremental borrowing rate of the District for similar asset types and terms. SBITA payment amounts vary by SBITA, some are annual and most are monthly. In 2024 and 2023, there were no variable payment outflows of resources not included in the subscription liability. Note 4 provides information on the related subscription intangible asset and accumulated amortization. The future subscription and interest subscription payments as of December 31, 2024 follows: For the Year Ended December 31 Principal Interest Total 2025 $ 105,674 $ 10,210 $ 115,884 2026 65,374 5,789 71,163 2027 68,206 2,957 71,163 $ 239,254 $ 18,956 $ 258,210 Page 150 Page 60 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2024 and 2023 NOTE 8— UNEARNED REVENUES Transactions that have not yet met revenue recognition requirements are recorded as a non-current liability and reflected in the accompanying Statement of Net Position. As of December 31, 2024 and 2023, 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, 2024 and 2023: January 1, December 31, 2024 Additions Reductions 2024 Unearned tax revenues $ 1,940,924 $ 2,148,662 $ (1,940,932) $ 2,148,654 Development agreement deposits 1,754,977 886,763 (787,172) 1,854,568 Connection fees and other deposits 1,618,598 1,014,274 (1,213,413) 1,419,459 Totals $ 5,314,499 $ 4,049,699 $ (3,941,517) $ 5,422,681 January 1, December 31, 2023 Additions Reductions 2023 Unearned tax revenues $ 1,877,646 $ 1,940,924 $ (1,877,646) $ 1,940,924 Development agreement deposits 1,759,533 770,354 (774,910) 1,754,977 Connection fees and other deposits 1,644,831 812,315 (838,548) 1,618,598 Totals $ 5,282,010 $ 3,523,593 $ (3,491,104) $ 5,314,499 NOTE 9—COMPENSATED ABSENCES January 1, December 31, Due within 2024 Additions* Reductions* 2024 one year Electric $ 966,587 $ 128,471 $ 1,095,058 $ 399,178 Water 1,049,631 42,799 1,092,430 389,646 Total $ 2,016,218 $ 171,270 $ $ 2,187,488 $ 788,824 January 1, December 31, Due within 2023 Additions* Reductions* 2023 one year Electric $ 955,661 $ 10,926 $ 966,587 $ 401,349 Water 923,454 126,177 1,049,631 433,843 Total $ 1,879,115 $ 137,103 $ $ 2,016,218 $ 835,192 The change in the compensated absences liability is presented as a net change. Page 51 Page 61 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2024 and 2023 NOTE 10—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 each of the CFD and as such they approve the rates and method of apportionment of the special taxes and management of the District has operational responsibility for each of the CFD. As improvements at each CFD were completed, the infrastructure was donated in the form of a capital contribution to the Town of Truckee,the Truckee Sanitary District, Southwest Gas, and the District. In December 2003, the Community Facilities District No. 03-1 (Old Greenwood) was formed and issued $12,445,000 in Special Tax Bonds (the 03-1 Bonds). In January 2014, the original 2003 bonds were refunded (refinanced)by issuing 2014 bonds to a private investment firm at a lower rate, saving the property owners in Old Greenwood over$3 million over the term of the bonds. The 2014 bonds have similar terms and have the same rate and method of apportionment for the Old Greenwood parcel owners as the original 2003 bonds. During 2024 and 2023 respectively, taxes of $864,116 and $849,076 were levied by Old Greenwood. Of these amounts, $432,058 and $424,538 relate to 2024 and 2023 respectively, and accordingly are included in tax revenues in the accompanying Statement of Revenues, Expenses, and Changes in Net Position. The remaining amount will be recognized in future periods and are included in unearned revenues on the accompanying Statement of Net Position. In September 2004, the Community Facilities District No. 04-1 (Gray's Crossing) was formed and issued $15,375,000 in Special Tax Bonds (the 04-1 Bonds). In 2005, an additional $19,155,000 (2005 Series) in Special Tax Bonds was issued for the Gray's Crossing CFD. During the county tax roll for 2024 and 2023, taxes of $3,433,207 and $3,032,772 respectively were levied by Gray's Crossing. Of this amount, $1,716,603 and $1,516,386 relate to 2024 and 2023 respectively, and accordingly, are included in tax revenues. The remaining levied amount through the county tax roll will be recognized in future periods and is included in unearned revenues on the accompanying Statement of Net Position. Due to consistently high tax levy payment delinquencies, the Gray's Crossing made unscheduled reserve fund draws to fund debt payments of $243,926 and $231,729, for 2024 and 2023 respectively. Gray's Crossing Reserve Fund balance as of year-end December 31 was $1,919,902 and $1,938,901 for 2024 and 2023 respectively. The official statements and continuing disclosures may be viewed on the web site of Electronic Municipal Market Access(EMMA)of the Municipal Securities Rulemaking Board (MSRB), http://emma.msrb.org/.The Committee on Uniform Securities Identification Procedures number(CUSIP)for these special tax bonds is CUSIP 897817. Page 152 Page 62 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2024 and 2023 NOTE 11 — EMPLOYEE BENEFIT PLANS A. PENSION PLANS Plan Description —All qualified permanent and probationary employees are eligible to participate in the District's Miscellaneous Employee Pension Plans, cost-sharing multiple employer defined benefit pension plans administered by the California Public Employees' Retirement System (CalPERS). Benefit provisions under the Plans are established by State statute and Local Government resolution. CAPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CaIPERS website. Benefits Provided—CalPERS provides service retirement and disability benefits,annual costs of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefits are Optional Settlement 2W Death Benefit. The cost-of-living adjustments for each plan are applied as specified by the Public Employees' Retirement Law. The 2.7% at 55 Miscellaneous Plan is closed to new entrants. The plans' provisions and benefits in effect on December 31, 2024 are summarized as follows: Miscellaneous Prior to On or after Hire Date January 1, 2013 January 1, 2013 Benefit Formula 2.7% @ 55 2% @ 62 Benefit Vesting Schedule 5 years service 5 years service Benefit Payments monthly for life monthly for life Retirement Age 50 and Up 52 and Up Monthly Benefits, as a %of eligible compensation 2.0% -2.7% 1.0% to 2.5% Required Employee Contributions Rates 8.00% 7.75% Required Employer Contributions Rates 15.17% 7.68% Contributions — Section 208149(c) of the California Public Employee's Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The District is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Contributions shown below are for the fiscal year ending June 30, 2024 and 2023, respectively. Page 153 Page 63 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2024 and 2023 NOTE 11 — EMPLOYEE BENEFIT PLANS (Continued) A. PENSION PLANS (CONTINUED) Miscellaneous Hire Date Prior to On or after January 1, 2013 January 1, 2013 Combined Total Benefit Formula 2.7% @ 55 2% @ 62 2024 Employer Contributions $ 304,403 $ 272,420 $ 576,823 2023 Employer Contributions 1,430,861 213,859 1,644,720 Fiscal Year End 6/30/2024 Total 1,735,264 486,279 2,221,543 2023 Employer Contributions 256,108 228,898 485,006 2022 Employer Contributions 1,440,517 213,456 1,653,973 Fiscal Year End 6/30/2023 Total $ 1,696,625 $ 442,354 $ 2,138,979 B. PENSION LIABILITIES, PENSION EXPENSES AND DEFERRED OUTFLOWS/INFLOWS OF RESOURCES RELATED TO PENSIONS As of December 31, 2024, the District reported net pension liabilities for its proportionate shares of the net pension liability as follows: Proportionate Share of Net Pension Liability Fiscal Year Ending June 30, 2024 June 30, 2023 $18,001,154 $18,145,067 The District's net pension liability is measured as a proportionate share of the net pension liability. The net pension liability is measured as of June 30, 2024, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2023 rolled forward to June 30, 2024 using standard update procedures. The District's proportion of the net pension liability was based on a projection of the District's long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The District's proportionate share of the net pension liability for the Plan for the measurement date of June 30, 2024 and June 30, 2023 is as follows: Percentage Share of Risk Pool Measurement Date June 30, 2024 June 30, 2023 Change Percentage of Plan NPL 0.37219% 0.36287% 0.00932% Page 154 Page 64 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2024 and 2023 NOTE 11 — EMPLOYEE BENEFIT PLANS (Continued) B. PENSION LIABILITIES, PENSION EXPENSES AND DEFERRED OUTFLOWS/INFLOWS OF RESOURCES RELATED TO PENSIONS(Continued) At December 31, 2024 and 2023 the District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: 2024 Deferred Outflows of Deferred Inflows of Resources Resources Changes in assumptions $ 462,667 $ - Differences between expected and actual experience 1,556,365 60,728 Net differences between projected and actual irnrestment earnings 1,036,304 - Differences between employer's contributions and 34,845 134,816 proportionate share of contributions Change in employer's proportion 82,555 4,685 Pension contributions made subsequent to the measurement 1,860,619 date Total $ 5,033,355 $ 200,229 2023 Deferred Outflows of Deferred Inflows of Resources Resources Changes in assumptions $ 1,095,499 $ - Differences between expected and actual experience 926,948 143,792 Net differences between projected and actual iniestment earnings 2,937,850 - Differences between employer's contributions and 19,855 394,277 proportionate share of contributions Change in employer's proportion 165,814 - Pension contributions made subsequent to the measurement 1,607,480 date Total $ 6,753,446 $ 538,069 Page 155 Page 65 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2024 and 2023 NOTE 11 — EMPLOYEE BENEFIT PLANS (Continued) B. PENSION LIABILITIES, PENSION EXPENSES AND DEFERRED OUTFLOWS/INFLOWS OF RESOURCES RELATED TO PENSIONS(Continued) For the December 31, 2024 and 2023 balances of deferred outflows and inflows of resources, $1,860,619 and $1,607,480 respectively, is reported as deferred outflows of resources related to contributions subsequent to the measurement date and will be recognized as a reduction of the net pension liability in the years ended December 31, 2025 and 2024 respectively. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows: Reporting Period Reporting Period December 31, 2024 December 31, 2023 Year Ended Year Ended December 31 Amounts December 31 Amounts 2025 $ 966,240 2024 $ 1,338,896 2026 2,333,178 2025 924,442 2027 28,219 2026 2,260,260 2028 (355,130) 2027 84,299 $ 2,972,507 $ 4,607,897 Actuarial Assumptions — The total pension liabilities in the June 30, 2024 actuarial valuations were determined using the following actuarial assumptions: Miscellaneous 2024 Valuation Date June 30, 2023 Measurement Date June 30, 2024 Actuarial Cost Method Entry-Age Normal Actuarial Assumptions: Discount Rate 6.90% Inflation 2.30% Salary Increase Varies by Entry Age and Service Mortality (1) Derived using CalPERS' Membership Data for all Funds (1) The mortality table used was developed based on CalPERS'specific data. The Table includes 15 years of mortality improvements using Society of Actuaries Scale MP-2016. For more details on this table, please refer to the 2021 experience study report. All underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2024 valuation were based on results of the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. Further details of the Experience Study can be found on the CaIPERS website. Page 156 Page 66 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2024 and 2023 NOTE 11 — EMPLOYEE BENEFIT PLANS (Continued) B. PENSION LIABILITIES, PENSION EXPENSES AND DEFERRED OUTFLOWS/INFLOWS OF RESOURCES RELATED TO PENSIONS (Continued) Discount Rate -The discount rate used to measure the total pension liability as of June 30, 2024 was 6.90%. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the current 6.90% discount rate used is adequate and the use of the municipal bond rate calculation is not necessary. The long term expected discount rate of 6.90% will be applied to all plans in the Public Employees Retirement Fund (PERF). The stress test results are presented in a detailed report that can be obtained from the CalPERS website. The long-term expected rate of return on pension plan investments was determined using a building- block method in which best-estimate ranges of expected future real rate of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds' asset classes, expected compound returns were calculated over the short-term (first 10 years) and the long term (11 + years) using a building-block approach. Using the expected nominal returns for both short-term and long-term,the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent. The table below reflects the long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. The target allocation shown below is based on a plan policy adopted by CaIPERS' Board effective November 13, 2013. Long-Term Assumed Expected Real Asset Rates of Asset Class Allocation Return Public Equity 42.0% 4.34% Global Equity-Cap-weighted 30.0% 4.54% Global Equity- Factor-weighted 12.0% 3.84% Private Equity 13.0% 7.28% Income 30.0% 1.44% Treasury 5.0% 0.27% Mortgage-backed Securities 5.0% 0.50% Investment Grade Corporates 10.0% 1.56% High Yield 5.0% 2.27% Emerging Market Debt 5.0% 2.48% Private Debt 5.0% 3.57% Real Assets 15.0% 3.21% Strategic Leverage -5.0% -0.59% Total 100.0% Page 57 Page 67 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2024 and 2023 NOTE 11 — EMPLOYEE BENEFIT PLANS (Continued) B. PENSION LIABILITIES, PENSION EXPENSES AND DEFERRED OUTFLOWS/INFLOWS OF RESOURCES RELATED TO PENSIONS (Continued) Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate-The following presents the District's proportionate share of the net pension liability for each Plan, calculated using the discount rate for each Plan, as well as what the District's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1% point lower or 1% point higher than the current rate; for current year and prior year measurement dates: Miscellaneous Measurement Date June 30, 2024 June 30, 2023 1%Decrease 5.90% 5.90% Net Pension Liability $28,046,332 $27,591,371 Current Discount Rate 6.90% 6.90% Net Pension Liability $18,001,154 $18,145,067 1%Increase 7.90% 7.90% Net Pension Liability $9,732,494 $10,369,949 Pension Plan Fiduciary Net Position— Detailed information about each pension plan's fiduciary net position is available in the separately issued CalPERS financial reports. C. PAYABLE TO THE PENSION PLAN At December 31, 2024 and 2023 respectively, the District did not report a payable for outstanding required contributions to the pension plan. D. DEFERRED COMPENSATION PLAN The District maintains two deferred compensation plans: a 401(a) and a 457 plan, (the Plans) for certain qualified employees. The District contributes a match of eligible PEPRA employee contributions with an effective match rate in 2024 and 2023 of 7.28% and 5.78%, respectively. The total amount of District match for 2024 and 2023 was $507,443 and $362,990, respectively. The District has no liability for losses under the Plans but does have the duty of due care that would be required of an ordinary prudent investor. The District has not reflected the Plans' assets and corresponding liabilities (if any) on the accompanying Statement of Net Position. E. OTHER POST EMPLOYMENT BENEFITS(OPEB) General Information — The District administers a single-employer defined-benefit post-employment healthcare plan and dependents are eligible to enroll. The District's retiree Benefits Plan (the Plan) recognizes benefit payments when due and payable in accordance with the benefit terms. The Plan's fiduciary net position has been determined on the same basis as is reported by the Plan in calculating the fiduciary net position (Net OPEB Liability), deferred outflows of resources and deferred inflows of resource and associated OPEB expense. Page 158 Page 68 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2024 and 2023 NOTE 11 — EMPLOYEE BENEFIT PLANS (Continued) E. OTHER POST EMPLOYMENT BENEFITS(OPEB) (Continued) Benefits Provided—Retirees are eligible for a District contribution towards premiums for the retiree health plan(s) if they have 10+ years of District service. The maximum District contribution is based on years of service. The Retiree is eligible for 50% of the following monthly maximums, with a minimum of 10 years of service, plus 5%for each year of service over 10 years: Monthly Maximum per person enrolled in the plan: not eligible for Medicare $600 eligible for Medicare $500 Employees Covered—At December 31, 2023 (the valuation date), the benefit terms covered the following employees: Category Count Active Employees 77 Inactive Employees, spouses, or beneficiaries currently receiving payment(s) (Retirees) 48 Inactive employees entitled to but not yet receiving benefit payment(s) - Total 125 Contributions — The District pays benefits as they come due and contributes additionally to the Trust annually. The District's annual contribution to the Trust as of December 31, 2024 and 2023 was $125,004 and $120,000, respectively. Net OPEB Liability — The District's net OPEB liability was measured as of December 31, 2023, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of December 31, 2023, with report date of December 31, 2024. Actuarial Assumptions The total OPEB Liability in the December 31, 2023 measurement was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified: Inflation: 2.30% Salary Increases: Base salary increases in year one: 2.80%.Additional merit-based increases based on CalPERS. Investment Rate of Return: 5.10% Healthcare cost trend rates: 6.80% in the first year, trending down to 4.04% over 51 years Mortality Rates: Based on CalPERS tables Page 159 Page 69 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2024 and 2023 NOTE 11 — EMPLOYEE BENEFIT PLANS (Continued) E. OTHER POST EMPLOYMENT BENEFITS(OPEB) (Continued) The discount rate used to measure the total OPEB liability was 6.24%, down from 6.25% in the prior valuation. The projection of cash flows used to determine the discount rate assumed that the District contribution will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan's fiduciary net position was projected to cover all future OPEB payments. Therefore, the discount rate was set equal to the long-term expected rate of return. Changes in the Net OPEB Liability—The changes in the net OPEB liability for the Plan are as follows: Increases (Decreases) Total OPEB Plan Fiduciary Net OPEB Liability Net Position Liability (a) (b) (c) = (a) -(b) Balance as of Report Date December 31, 2023 $ 9,168,737 $ 3,198,750 $ 5,969,987 Changes for the year: Service Cost 318,131 - 318,131 Interest 569,226 - 569,226 Changes of Benefit Terms 1,166,387 - 1,166,387 Differences between Expected and Actual Experience (1,796,719) - (1,796,719) Changes of Assumptions (130,113) (130,113) Contributions Employer- District's Contribution - 450,104 (450,104) Employer- Implicit Subsidy - 428,378 (428,378) Net Investment Income - 465,270 (465,270) Benefit Payments (330,104) (330,104) - Implicit Rate Subsidy Credit (428,378) (428,378) - Administrative Expenses - (1,686) 1,686 Net Changes (631,570) 583,584 (1,215,154) Balance as of Report Date December 31, 2024 $ 8,537,167 $ 3,782,334 $ 4,754,833 Page 160 Page 70 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2024 and 2023 NOTE 11 — EMPLOYEE BENEFIT PLANS (Continued) E. OTHER POST EMPLOYMENT BENEFITS(OPEB)(Continued) Increases (Decreases) Total OPEB Plan Fiduciary Net OPEB Liability Net Position Liability (a) (b) (c)= (a)-(b) Balance as of Report Date December 31, 2022 $ 8,150,440 $ 3,761,146 $ 4,389,294 Changes for the year: Service Cost 240,361 - 240,361 Interest 612,305 - 612,305 Differences between Expected and Actual Experience (5,797) - (5,797) Changes of Assumptions 1,007,593 1,007,593 Contributions Employer- District's Contribution - 475,962 (475,962) Employer- Implicit Subsidy - 475,203 (475,203) Net Investment Income - (675,758) 675,758 Benefit Payments (360,962) (360,962) - Implicit Rate Subsidy Credit (475,203) (475,203) - Administrative Expenses - (1,638) 1,638 Net Changes 1,018,297 (562,396) 1,580,693 Balance as of Report Date December 31, 2023 $ 9,168,737 $ 3,198,750 $ 5,969,987 Sensitivity of the net OPEB liability to changes in the discount rate -The net OPEB liability of the District, as well as what the District's net OPEB liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher is as follows: Valuation Report 12/31/2023 Measured as of Date 12/31/2022 12/31/2024 Reporting Date 12/31/2023 Net OPEB Net OPEB Rate Liability Rate Liability 5.24% $ 5,525,729 1% Rate Decrease 5.25% $ 6,796,812 6.24% $ 4,754,833 Current Rate 6.25% $ 5,969,987 7.24% $ 4,082,987 1% Rate Increase 7.25% $ 5,246,049 Page 161 Page 71 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2024 and 2023 NOTE 11 — EMPLOYEE BENEFIT PLANS (Continued) E. OTHER POST EMPLOYMENT BENEFITS(OPEB)(Continued) Sensitivity of the net OPEB liability to changes in the healthcare cost trend rates -The net OPEB liability of the District, as well as what the District's net OPEB liability would be if it were calculated using healthcare cost trend rates that are one percentage point lower or one percentage point higher than current healthcare cost trend rates is as follows: Valuation Report 12/31/2023 Measured as of Date 12/31/2022 12/31/2024 Reporting Date 12/31/2023 Rate Rate Over 51 years, Net OPEB Over 52 years, Net OPEB Rate decreasing to Liability Rate decreasing to Liability 5.80% 3.04% $ 4,587,325 1%Rate Decrease 5.50% 2.94% $ 5,453,750 6.80% 4.04% $ 4,754,833 Current Rate 6.50% 3.94% $ 5,969,987 7.80% 5.04% $ 4,948,518 1%Rate Increase 7.50% 4.94% $ 6,564,625 OPEB Plan Fiduciary Net Position —California Employers' Retiree Benefit Trust (CERBT) Fund issues a publicly available financial report for the overall OPEB plan's fiduciary net position which may be obtained from CalPERS at PO Box 942709, Sacramento, Ca. 94229-2709. OPEB Expense and Deferred Inflows and Outflows of Resources Related to OPEB —For the year ended December 31, 2024 and 2023, the District recognized an OPEB expense of$1,948,602 and $1,044,051 respectively. At December 31, 2024 and 2023, the District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the follow sources: 2024 Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual experience $ 483,885 $ 1,762,949 Changes of assumptions 830,371 281,346 Net Difference between Projected and Actual Earnings on OPEB Plan Investments 152,900 - District contributions made subsequent to the measurement date 744,694 - Total $ 2,211,850 $ 2,044,295 Page 62 Page 72 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2024 and 2023 NOTE 11 — EMPLOYEE BENEFIT PLANS (Continued) E. OTHER POST EMPLOYMENT BENEFITS(OPEB)(Continued) 2023 Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual experience $ 768,527 $ 231,830 Changes of assumptions 1,003,719 251,101 Net Difference between Projected and Actual Earnings on OPEB Plan Investments 418,820 - District contributions made subsequent to the measurement date 878,482 - Total $ 3,069,548 $ 482,931 The$744,694 and$878,482 reported as deferred outflows of resources related to contributions subsequent to the December 31, 2023 and 2022 respective measurement dates for reporting as of December 31, 2024 and 2023 respectively, will be recognized as a reduction of the net OPEB liability during the fiscal year ending December 31, 2025 and 2024 respectively. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: Reporting Period Reporting Period December 31, 2024 December 31, 2023 Year Ended Year Ended December 31 Amount December 31 Amount 2025 $ 117,484 2024 $ 356,044 2026 112,697 2025 415,436 2027 (57,964) 2026 410,649 2028 (215,083) 2027 239,988 2029 (148,859) 2028 82,869 thereafter (385,414) thereafter 203,149 $ (577,139) $ 1,708,135 NOTE 12—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 has not been material. Page 163 Page 73 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2024 and 2023 NOTE 13—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, 2024 and 2023. STATEMENTS OF NET POSITION December 31,2024 Gray's Old ASSETS AND DEFERRED OUTFLOWS OF RESOURCES Electric Water Crossing Greenwood Eliminations Grand Total Current assets $ 43,838,963 $ 15,722,431 $ 11,235,434 $ 1,129,827 $ - $ 71,926,655 Non-current assets: Investments 4,280,671 2,938,555 - - - 7,219,226 Leases receivable - 1,390,354 - - - 1,390,354 Capital assets,net 68,386,036 86,801,607 - - - 155,187,643 Total Non-current Assets 72,666,707 91,130,516 - - - 163,797,223 Total Assets 116,505,670 106,852,947 11,235,434 1,129,827 - 235,723,878 Deferred outflows of resources Pension 3,020,013 2,013,342 - - - 5,033,355 OPEB 1,327,110 894,740 - - - 2,211,850 Unamortized loss on refunding - 347,164 - - - 347,164 Total Deferred Outflows of Resources 4,347,123 3,245,246 - - - 7,592,369 TOTAL ASSETS AND DEFERRED OUTFLOWS $ 120,852,793 $110,098,193 $ 11,235,434 $ 1,129,827 $ - $243,316,247 OF RESOURCES LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND NET POSITION Current liabilities $ 5,403,373 $ 2,360,248 $ 1,830,806 $ 699,679 $ - $ 10,294,106 Non-current Liabilities Long-term debt,net of current portion 6,261,511 23,651,641 22,574,536 5,746,200 - 58,233,888 Subscription software liability,net of current portion 86,827 46,753 - - - 133,580 Compensated absences,net of current portion 695,880 702,784 - - - 1,398,664 Net pension liability 10,800,692 7,200,462 - - - - 18,001,154 OPEB liability 2,852,900 1,901,933 - - - 4,754,833 Unearned revenues 2,454,463 819,564 1,716,602 432,052 5,422,681 Total Non-current Liabilities 23,152,273 34,323,137 24,291,138 6,178,252 - 87,944,800 Total Liabilities 28,555,646 36,683,385 26,121,944 6,877,931 - 98,238,906 Deferred inflows of resources Pension 120,137 80,092 - - - 200,229 OPEB 1,226,577 817,718 - - - 2,044,295 Leases receivable - 1,253,249 - - - 1,253,249 Total Deferred Inflows of Resources 1,346,714 2,151,059 - - - 3,497,773 Net Position Net investment in capital assets 68,853,844 62,448,391 (23,964,536) (6,357,300) - 100,980,399 Restricted for debt service 1,265,651 2,234,335 2,919,807 - - 6,419,793 Unrestricted 20,830,938 6,581,023 6,158,219 609,196 34,179,376 Total Net Position 90,950,433 71,263,749 (14,886,510) (5,748,104) - 141,579,568 TOTAL LIABILITIES,DEFERRED INFLOWS $ 120,852,793 $110,098,193 $ 11,235,434 $ 1,129,827 $ - $243,316,247 OF RESOURCES AND NET POSITION Page 164 Page 74 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2024 and 2023 NOTE 13 — SEGMENT DISCLOSURE (Continued) December 31,2023(Restated) Gray's Old ASSETS AND DEFERRED OUTFLOWS OF RESOURCES Electric Water Crossing Greenwood Eliminations Grand Total Current assets $ 38,065,177 $ 15,338,201 $ 10,344,287 $ 1,154,114 $ - $ 64,901,779 Noncurrent assets: Investments 5,579,209 3,804,247 - - - 9,383,456 Leases receivable - 1,389,598 - - - 1,389,598 Capital assets,net 63,688,003 84,982,659 - - - 148,670,662 Total Noncurrent Assets 69,267,212 90,176,504 - - - 159,443,716 Total Assets 107,332,389 105,514,705 10,344,287 1,154,114 - 224,345,495 Deferred outflows of resources Pension 4,052,068 2,701,378 - - - 6,753,446 OPEB 1,841,729 1,227,819 - - - 3,069,548 Unamortized loss on refunding - 379,966 - - - 379,966 Total Deferred outflows of resources 5,893,797 4,309,163 - - - 10,202,960 TOTAL ASSETS AND DEFERRED OUTFLOWS OF RESOURCES $ 113,226,186 $109,823,868 $ 10,344,287 $ 1,154,114 $ - $234,548,455 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND NET POSITION Current liabilities $ 5,321,509 $ 2,426,363 $ 1,733,847 $ 666,825 $ - $ 10,148,544 Noncurrent Liabilities Long-term debt,net of current portion 6,426,801 24,690,412 23,959,331 6,357,300 - 61,433,844 Subscription software liability,net of current portion 155,515 83,739 - - - 239,254 Compensated absences,net of current portion 565,238 615,788 - - - 1,181,026 Net pension liability 10,887,040 7,258,027 - - - - 18,145,067 OPEB liability 3,581,992 2,387,995 - - - 5,969,987 Unearned revenues 2,349,081 1,024,494 1,516,386 424,538 5,314,499 Total Noncurrent Liabilities 23,965,667 36,060,455 25,475,717 6,781,838 92,283,677 Total Liabilities 29,287,176 38,486,818 27,209,564 7,448,663 102,432,221 Deferred inflows of resources Pension 322,841 215,228 - - - 538,069 OPEB 289,759 193,172 - - - 482,931 Leases receivable - 1,284,338 - - - 1,284,338 Total Deferred Inflows of Resources 612,600 1,692,738 2,305,338 Net Position Net investment in capital assets 63,576,397 60,636,313 (25,229,331) (6,927,600) - 92,055,779 Restricted for debt service 902,528 2,331,910 2,894,989 - - 6,129,427 Unrestricted 18,847,485 6,676,089 5,469,065 633,051 - 31,625,690 Total Net Position 83,326,410 69,644,312 (16,865,277) (6,294,549) 129,810,896 TOTAL LIABILITIES,DEFERRED INFLOWS $ 113,226,186 $109,823,868 $ 10,344,287 $ 1,154,114 $ $234,548,455 OF RESOURCES AND NET POSITION Page 165 Page 75 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2024 and 2023 NOTE 13—SEGMENT DISCLOSURE (Continued) STATEMENTS OF REVENUE, EXPENSES, AND CHANGES IN NET POSITION Year ended December 31,2024 Gray's Old Electric Water Crossing Greenwood Eliminations Grand Total Operating Revenues Sales to consumers $ 34,391,270 $ 19,097,947 $ $ $ - $ 53,489,217 Other operating revenues 3,269,872 481,374 (2,033,519) 1,717,727 Operating expenses (29,581,237) (13,756,540) 2,033,519 (41,304,258) Depreciation (3,358,962) (5,128,008) - (8,486,970) Non-operating revenues 1,475,636 (118,259) 1,978,767 546,445 3,882,589 Income before capital&other contributions 6,196,579 576,514 1,978,767 546,445 9,298,305 Capital contributions,net 1,427,444 1,042,923 2,470,367 CHANGE IN NET POSITION 7,624,023 1,619,437 1,978,767 546,445 11,768,672 Net Position,Beginning 83,326,410 69,644,312 (16,865,277) (6,294,549) 129,810,896 NET POSITION,ENDING $ 90,950,433 $ 71,263,749 $ (14,886,510) $ (5,748,104) $ $ 141,579,568 Year ended December 31,2023(Restated) Gray's Old Electric Water Crossing Greenwood Eliminations Grand Total Operating Revenues Sales to consumers $ 32,643,220 $ 17,577,924 $ $ $ - $ 50,221,144 Other operating revenues 3,315,788 453,640 (1,980,379) 1,789,049 Operating expenses (29,909,296) (12,880,471) 1,980,379 (40,809,388) Depreciation (3,178,198) (4,826,705) - (8,004,903) Non-operating revenues(expenses) 1,137,112 131,792 1,658,400 555,830 3,483,134 Income before capital&other contributions 4,008,626 456,180 1,658,400 555,830 6,679,036 Capital contributions,net 1,516,634 851,728 - - 2,368,362 CHANGE IN NET POSITION 5,525,260 1,307,908 1,658,400 555,830 9,047,398 Net Position,Beginning 77,801,150 68,336,404 (18,523,677) (6,850,379) 120,763,498 NET POSITION,ENDING $ 83,326,410 $ 69,644,312 $ (16,865,277) $ (6,294,549) $ $ 129,810,896 Page 166 Page 76 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2024 and 2023 NOTE 13—SEGMENT DISCLOSURE (Continued) STATEMENTS OF CASH FLOWS Year ended December 31,2024 Gray's Old Electric Water Crossing Greenwood Eliminations Grand Total NET CASH PROVIDED BY(USED IN) Operating activities $ 11,125,869 $ 6,927,969 $ - $ - $ $ 18,053,838 Capital and related financing activities (7,330,419) (8,368,164) (227,122) (72,774) (15,998,479) Investing activities 2,851,292 1,717,415 135,498 29,409 4,733,614 Net increase(decrease)in cash and cash equivalents 6,646,742 277,220 (91,624) (43,365) 6,788,973 Cash and Cash Equivalents,Beginning 29,105,793 11,601,673 2,150,330 303,195 43,160,991 CASH AND CASH EQUIVALENTS,ENDING $ 35,752,535 $ 11,878,893 $ 2,058,706 $ 259,830 $ $ 49,949,964 Year ended December 31,2023 Gray's Old Electric Water Crossing Greenwood Eliminations Grand Total NET CASH PROVIDED BY(USED IN) Operating activities $ 3,968,229 $ 5,429,865 $ - $ $ $ 9,398,094 Capital and related financing activities (4,792,900) (15,011,034) (246,817) (19,947) (20,070,698) Investing activities 886,221 768,464 100,862 27,774 1,783,321 Net increase(decrease)in cash and cash equivalents 61,550 (8,812,705) (145,955) 7,827 (8,889,283) Cash and Cash Equivalents,Beginning 29,044,243 20,414,378 2,296,285 295,368 52,050,274 CASH AND CASH EQUIVALENTS,ENDING $ 29,105,793 $ 11,601,673 $ 2,150,330 $ 303,195 $ $ 43,160,991 NOTE 14— MARTIS VALLEY GROUNDWATER MANAGEMENT EFFORTS The Martis Valley aquifer underlies about 35,000 acres in both Placer and Nevada counties, near the Town of Truckee. It is the main groundwater supply for numerous public and private entities. This area has seen significant growth in the last few decades with more planned for the future. Maintaining an adequate water supply and protecting water quality are critical for the region's future. The Truckee Donner Public Utility District (TDPUD), Northstar Community Services District (NCSD) and Placer County Water Agency (PCWA) are the three primary public water agencies with jurisdiction in the Martis Valley Groundwater Basin (MVGB). Together, the TDPUD, NCSD and PCWA (Partnership Agencies)partnered to submit a Groundwater Management Plan and to help develop a groundwater model for the Martis Valley basin. The Martis Valley Groundwater Management Plan (GMP) was prepared in 2013 to reflect current water resources planning in the region and to incorporate the latest information and understanding of the underlying groundwater basin. This collaborative effort provided the guidance necessary to align groundwater policy. In addition to the GMP, a computer model of the groundwater basin was developed by the Desert Research Institute, which incorporated available data and enhanced understanding of the groundwater basin. A climate change modeling component out to the end of the century was part of the overall Federal study effort. Page 167 Page 77 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2024 and 2023 NOTE 14—MARTIS VALLEY GROUNDWATER MANAGEMENT EFFORTS (Continued) Partner agencies each adopted the GMP in February 2012 and the model and associated report was completed in 2015. The total cost of the project was approximately $1,000,000, which includes federal funding of approximately$500,000 from the U.S. Bureau of Reclamation and $250,000 from the Lawrence Livermore National Laboratory; and contributions of $150,000 from TDPUD and $100,000 from the other members of the Partnership Agencies. In mid-2016, the California Sustainable Groundwater Management Act of 2014 (SGMA) took effect for which the District was the submitting agency of a SGMA Alternate Submittal in December, 2016 on behalf of the Town of Truckee, Placer County, Nevada County, PCWA, and Northstar CSD (Local SGMA Agencies). The SGMA Alternative Submittal was intended to comply with the new regulations. There was an adopted MOA amongst the six local agencies for this compliance project which covers the time period for preparation of the SGMA Alternative Submittal, possible conditional acceptance of the plan by DWR, and submittal of a first-year annual report. DWR had two years by statute to review the SGMA Alternative Submittal. In 2018, DWR was required to undergo groundwater basin prioritization which is the basis for compliance obligation for SGMA. The MVGB had previously been prioritized as medium priority. DWR's final Determination was to re-prioritize MVGB to low priority. This was a significant act that resulted in a direct reduction in regulatory burden and future regulatory costs that would be required for groundwater management. To ensure continued stewardship and management of the MVGB, the District and its local partners have agreed to return to the 2013 GMP framework which was never fully implemented due to SGMA. There was a kick-off meeting for the GMP in 2019 and the three local water agencies have hired a hydrogeologic consultant to prepare the first annual report as required by the GMP. The consultant's report was presented to the GMP Stakeholder Working Group at the annual meeting in the summer of 2020. Subsequent annual reports were presented to the GMP Stakeholder Working Group covering each water year through 2024. The GMP Partnership Agencies are in the process of completing a five-year update of the GMP, including a Stakeholder Working Group meeting and a public meeting, all expected to be completed by July, 2025. The groundwater basin management and stewardship efforts over the decades continue to document that the Martis Valley Groundwater Basin is operating well within the sustainable yield and is projected to remain well below the sustainable yield through the projected community buildout. NOTE 15—CLAIMS AND JUDGMENTS From time to time, the District 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 District's legal counsel that the likelihood is remote that any such claims or proceedings will have a material adverse effect on the District's financial position or results of operations. NOTE 16—RISK MANAGEMENT The District 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. Page 168 Page 78 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2024 and 2023 NOTE 17—CHANGE IN ACCOUNTING PRINCIPLE AND RESTATMENT For 2024,the District implemented Governmental Accounting Standards Board(GASB)Statement No. 101, Compensated Absences. GASB 101 updates the recognition and measurement of the liabilities related to compensated absences; including recognition of liabilities for leave that is expected to be paid, either as salaries for periods during which employees use leave, as well as for leave that will be paid out in cash or some other manner at the end of an employee's active service. GASB 101 also specifies salary-related payments that are directly and incrementally associated with compensated absences are to be included in the measurement. These changes were incorporated in the District's 2024 and 2023 financial statements. The implementation of GASB Statement No. 101 is a change in accounting principal and had the following net effect and restatement of Consolidated Statements of Net Position, Consolidated Statements of Revenues, Expenses, and Changes in Net Position, and Consolidated Statements of Cash Flows as reported December 31, 2023: CONSOLIDATED STATEMENTS OF NET POSITION 12/31/2023 Change in 12/31/2023 As Previously Accounting as Reported GASB 101 Restated CURRENT ASSETS $ 64,901,779 $ - $ 64,901,779 NON-CURRENT ASSETS 159,443,716 - 159,443,716 TOTAL ASSETS 224,345,495 - 224,345,495 DEFERRED OUTLOWS OF RESOURCES 10,202,960 - 10,202,960 TOTAL ASSETS AND DEFERRED OUTFLOWS OF RESOURCES $ 234,548,455 $ - $ 234,548,455 CURRENT LIABILITIES $ 10,190,434 $ (41,890) $ 10,148,544 NON-CURRENT LIABILIITES 91,102,651 1,181,026 92,283,677 TOTAL LIABILITIES 101,293,085 1,139,136 102,432,221 DEFERRED INFLOWS OF RESOURCES 2,305,338 - 2,305,338 NET POSITION 130,950,032 (1,139,136) 129,810,896 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND NET POSITION $ 234,548,455 $ - $ 234,548,455 Page 169 Page 79 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2024 and 2023 NOTE 17—CHANGE IN ACCOUNTING PRINCIPLE AND RESTATMENT (Continued) CONSOLIDATED STATEMENTS OF REVENUES,EXPENSES,AND CHANGES IN NET POSITION 2023 Change in 2023 As Previously Accounting as Reported GASB 101 Restated OPERATING REVENUES $ 52,010,193 $ - $ 52,010,193 OPERATING EXPENSES Administration and general 8,336,856 56,199 8,393,055 Other operating expenses 40,421,236 - 40,421,236 Total Operating Expenses 48,758,092 56,199 48,814,291 Operating Income 3,252,101 (56,199) 3,195,902 NON-OPERATING REVENUE&EXPENSES Total Non-operating re\enue, net 3,483,134 3,483,134 Income Before Contributions 6,735,235 (56,199) 6,679,036 CAPITAL&OTHER CONTRIBUTIONS 2,368,362 2,368,362 CHANGE IN NET POSITION 9,103,597 (56,199) 9,047,398 Net Position-Beginning of Year 121,846,435 (1,082,937) 120,763,498 NET POSITION-END OF YEAR $ 130,950,032 $ (1,139,136) $ 129,810,896 CONSOLIDATED STATEMENTS OF CASH FLOWS 12/31/2023 Change in 12/31/2023 As Previously Accounting as Reported GASB 101 Restated CASH FLOWS FROM OPERATING ACTIVITIES $ 9,398,094 $ $ 9,398,094 CASH FLOWS FROM CAPITAL AND RELATED FINANCING (20,070,698) (20,070,698) ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES 1,783,321 1,783,321 NET DECREASE IN CASH AND CASH EQUIVALENTS (8,889,283) (8,889,283) CASH AND CASH EQUIVALENTS-BEGINNING OF YEAR 52,050,274 52,050,274 CASH AND CASH EQUIVALENTS-END OF YEAR $ 43,160,991 $ $ 43,160,991 RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES Operating Income $ 3,252,101 $ (56,199) $ 3,195,902 Non-cash items included in operating income 9,761,066 - 9,761,066 Changes in assets and liabilities (3,615,073) 56,199 (3,558,874) NET CASH PROVIDED BY OPERATING ACTIVITIES $ 9,398,094 $ - $ 9,398,094 Page 70 Page 80 of 114 •- COMA • 1 10,01 r yj !� y •'�J . r ° p y wAI rr. v Sty. - Y p'M JL ' :- Y Ar REQUIRED SUPPLEMENTARY INFORMATION Page 82 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT REQUIRED SUPPLEMENTARY INFORMATION December 31, 2024 and 2023 COST SHARING DEFINED BENEFIT PENSION PLANS Schedule of the District's Proportionate Share of the Net Pension Liability Cost Sharing Defined Benefit Plans As of June 30 Last Ten Years 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Portion of Net Pension Liability 0.37219% 0.36287°% 0.35867% 0.40467% 0.33245°% 0.32145% 0.31157% 0.30379°% 0.29837°% 0.29209% Proportionate Share of the Net Pension Liability $ 18,001,154 $ 18,145,067 $ 16,783,065 $ 7,683,937 $ 14,023,172 $ 12,872,646 $ 11,742,137 $ 11,975,655 $ 10,250,329 $ 8,013,400 Covered Payroll $ 9,889,930 $ 9,853,784 $ 7,872,221 $ 7,762,131 $ 7,619,022 $ 7,602,120 $ 7,375,933 $ 7,108,563 $ 6,670,248 $ 6,162,431 Proportionate Share of the Net Pension Liability as a Percentage of Covered Payroll 182.01% 184.14% 213.19% 98.99% 184.05% 169.33% 159.20% 168.47% 153.67% 130.04% Proportionate Share of Plan's Fiduciary Net Position $ 56,440,440 $ 51,700,409 $ 49,619,385 $ 53,485,582 $ 43,589,560 $ 40,367,745 $ 29,308,590 $ 27,244,095 $ 30,950,578 $ 30,725,516 Plan Fiduciary Net Position as a percentage of the Total Pension Liability 75.82% 74.02% 74.73% 87.44% 75.66% 75.82% 75.26% 73.31% 75.12% 79.31% Page 173 Page 83 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT REQUIRED SUPPLEMENTARY INFORMATION December 31, 2024 and 2023 COST SHARING DEFINED BENEFIT PENSION PLANS-CONTINUED Schedule of Contributions Cost Sharing Defined Benefit Plans December 31 Last Ten Years 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Contractually Required Contribution(Actuarially Determined) $ 2,437,394 $ 2,129,727 $ 2,080,863 $ 1,844,808 $ 1,746,709 $ 1,872,297 $ 1,890,102 $ 1,670,256 $ 1,478,700 $ 1,312,540 Contributions in Relation to the Actuarially Determined Contributions 2,437,394 2,129,727 2,080,863 1,844,808 1,746,709 1,872,297 1,890,102 1,670,256 1,478,700 1,312,540 Contribution deficiency (excess) - - - - - - - - - - Covered Payroll $ 10,376,230 $ 10,063,947 $ 8,871,369 $ 7,704,033 $ 7,889,154 $ 7,494,347 $ 7,358,842 $ 6,940,748 $ 6,663,230 $ 6,074,329 Contributions as a percentage of covered-employee payroll 23% 21% 23% 24% 22% 25% 26% 24% 22% 22 Page 174 Page 84 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT REQUIRED SUPPLEMENTARY INFORMATION December 31, 2024 and 2023 Schedule of Changes in The District's Net OPEB Liability and Related Ratios Measurement Date: December3l, 2023 2022 2021 2020 2019 2018 2017 Report Date: December3l, 2024 2023 2022 2021 2020 2019 2018 Total OPEB Liability Seance Cost $ 318,131 $ 240,361 $ 201,835 $ 206,271 $ 168,811 $ 178,856 $ 170,473 Interest 569,226 612,305 629,595 621,983 476,373 457,563 448,374 Changes in Benefit Terms 1,166,387 - - - - - - Differences Between Expected and Actual Experience (1,796,719) (5,797) (271,987) (28,016) 1,814,336 (29,828) - Changes of Assumptions (130,113) 1,007,593 (73,387) (187,044) 306,886 (233,084) - Benefit Payments (330,104) (360,962) (268,688) (281,328) (276,678) (244,700) (214,280) Implicit Rate Subsidy Credit (428,378) (475,203) (545,407) (546,439) (270,562) (270,061) (254,930) Net Change in Total OPEB Liability $ (631,570) $ 1,018,297 $ (328,039) $ (214,573) $ 2,219,166 $ (141,254) $ 149,637 TotalOPEBLiability-BeginningofYear 9,168,737 8,150,440 8,478,479 8,693,052 6,473,886 6,615,140 6,465,503 TotalOPEBLiability-End of Year(a) $ 8,537,167 $ 9,168,737 $ 8,150,440 $ 8,478,479 $ 8,693,052 $ 6,473,886 $ 6,615,140 Plan Fiduciary Net Position Net Investment Income $ 465,270 $ (675,758) $ 444,083 $ 378,904 $ 473,144 $ (110,318) $ 167,459 Contributions Employer-District's Contribution 450,104 475,962 381,988 391,334 376,674 294,698 256,280 Employer-Implicit Subsidy 428,378 475,203 545,407 546,439 270,562 270,061 254,930 Benefit Payments,Including Refunds of Employee Contributions (330,104) (360,962) (268,688) (281,328) (276,678) (244,700) (214,280) Implicit Rate Subsidy Fulfilled (428,378) (475,203) (545,407) (546,439) (270,562) (270,061) (254,930) Administrative Expense (1,686) (1,638) (1,259) (1,353) (1,209) (557) (519) Net Change in Plan Fiduciary Net Position $ 583,584 $ (562,396) $ 556,124 $ 487,557 $ 571,931 $ (60,877) $ 208,940 Plan Fiduciary Net Position-Beginning of Year 3,198,750 3,761,146 3,205,022 2,717,465 2,145,534 2,206,411 1,997,471 Plan Fiduciary Net Position-End of Year(b) $ 3,782,334 $ 3,198,750 $ 3,761,146 $ 3,205,022 $ 2,717,465 $ 2,145,534 $ 2,206,411 District's Net OPEB liability-End of Year=(a)-(b) $ 4,754,833 $ 5,969,987 $ 4,389,294 $ 5,273,457 $ 5,975,587 $ 4,328,352 $ 4,408,729 Plan Fiduciary Net Position as a Percentage of the Total OPEB Liability 44.3% 34.9% 46.1% 37.8% 31.3% 33.1% 33.4% Covered-Employee Payroll $ 10,421,826 $ 10,096,644 $ 8,951,059 $ 7,703,827 $ 7,871,959 $ 7,641,365 $ 7,605,535 District's Net OPEB Liability as a Percentage of Covered-Employee Payroll 45.62% 59.13% 49.04% 68.45% 75.91% 56.64% 57.97% Notesto Schedule:The District adopted GASB 75 for the fiscal Year Ending December 31,2018 Page 175 Page 85 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT REQUIRED SUPPLEMENTARY INFORMATION December 31, 2024 and 2023 Other Post Employment Benefits-Schedule of Investment Returns Measurement Date: December 31, 2023 2022 2021 2020 2019 2018 2017 Report Date: December 31, 2024 2023 2022 2021 2020 2019 2018 Annual Money-Weighted Rate of Return,Net of Investment Expense 14.28% -17.70% 13.62% 13.67% 21.56% -4.94% 8.30 The annual money-weighted rate of return,net of investment expenses,is the net investment income for the year divided by the average net positon for the year(less investment expenses). Notes to Schedule:The District adopted GASB 75 for the fiscal Year Ending December 31,2018 Other Post Employment Benefits-Schedule of Contributions Measurement Date: December 31, 2023 2022 2021 2020 2019 2018 2017 Report Date: December 31, 2024 2023 2022 2021 2020 2019 2018 Actuarially Determined Contribution $ 962,408 $ 836,165 $ 814,095 $ 827,767 $ 532,225 $ 614,761 $ 569,210 Less:Actual Contributions 744,694 951,165 927,395 937,773 647,236 564,759 511,210 Contribution Deficiency(Excess) $ 217,714 $ (115,000) $ (113,300) $ (110,006) $ (115,011) $ 50,002 $ 58,000 Covered-Employee Payroll $10,421,826 $10,096,644 $ 8,951,059 $ 7,703,827 $ 7,871,959 $ 7,641,365 $ 7,605,535 Contributions as a Percentage of Covered-Employee Payroll 7.15% 9.42% 10.36% 12.17% 8.22% 7.63% 6.72 Notes to Schedule:The District adopted GASB 75 for the fiscal Year Ending December 31,2018 Page 176 Page 86 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT REQUIRED SUPPLEMENTARY INFORMATION December 31, 2024 and 2023 Other Post Employment Benefits -Actuarial Assumptions Actuarial methods and assumptions used to set the actuarially determined contributions for fiscal year 2024 were from the December 21, 2023 valuation. Methods and assumptions used to determine contributions: Assumptions and Methods Actuarial Cost Method Entry age normal, level percent of pay Amortization Method Closed period, level percent of pay Amortization Period 12 years Inflation 2.30% Assumed Payroll Growth Year 1 2.80% Healthcare Trend Rates 6.80%, trending down to 4.04% over 51 years Rate of Return on Assets 5.10% / 6.30% (1-5 years / 6+ years) Discount Rate used to measure total OPEB liability 6.24% Mortality Rate CalPERS Rates utilizing the decrement table Mort and Disb Rates—PA Misc from the CalPERS OPEB assumption model revised November 17, 2021. Retirement Rates Rates based on CaIPERS assumption model revised November 17, 2021. Page 177 Page 87 of 114 `Y s ' It j,� L � Sys y�?♦, j� � rj ,I'�jr ��� 41 YV � 1• -�� . tic �� ft 1 1� �'W` �;.� 1' '�_. :r!'�4;• � t _"Q �L- L �-, �-, ',. ��♦ s� -,.5. Syr >< P� r'r ..r. '!,,r - CC - >��� � - � '� r9d.�.'f � �;j '!",t �~ r= ��.'�..�r� s° � ,�- �•ky�„�.. �� � �rld '�p�. `�k! ��/i �f+�� -� ��f ;F * b t`/ i ;z�'- ,: . �, �,i�rd j�3�(.,�yr��[ i*' .F b �I. ei..�• W? ,�'9 '� •sue. �,: r 74 zz Aw .1 fdm k ¢ NN 7 CI fir`+ Oil, Photo: Spring Conservation Garden clean-up day y_ Page 88of 114 SUPPLEMENTARY INFORMATION Page 89 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT SUPPLEMENTARY INFORMATION December 31, 2024 CONSOLIDATING STATEMENT OF NET POSITION —PAGE 1 OF 2 As of December 31,2024 Component Units Electric Operations Water Operations Gray's Crossing Old Greenwood Eliminations Totals ASSETS AND DEFERRED OUTFLOWS OF RESOURCES CURRENT ASSETS Cash and cash equivalents Operating $ 10,674,399 $ 4,003,765 $ 86,546 $ 259,830 $ $ 15,024,540 Designated 16,722,865 5,517,131 - - 22,239,996 Restricted 8,340,840 2,362,995 1,972,160 12,675,995 Total cash and cash equivalents 35,738,104 11,883,891 2,058,706 259,830 49,940,531 Accounts receivable,net 2,942,896 965,707 - - 3,908,603 Unbilled revenues 2,181,157 1,429,873 - - 3,611,030 Special assessments receivable - 4,798 9,172,407 869,607 10,046,812 Accrued interest receivable 232,997 80,904 4,321 390 318,612 Leases receivable current portion - 42,376 - - 42,376 Materials and supplies 2,102,117 365,534 2,467,651 Repaid expenses 569,687 872,948 1,442,635 Other 72,005 76,400 - 148,405 Total Current Assets 43,838,963 15,722,431 11,235,434 1,129,827 71,926,655 NON-CURRENT ASSETS Operating Investments - 2,938,555 - - 2,938,555 Designated Investments 4,280,671 - 4,280,671 Leases receivable,net of current portion - 1,390,354 1,390,354 Capital Assets Utility plant 106,740,154 158,788,624 265,528,778 Accumulated depreciation and amortization (41,319,399) (72,719,642) (114,039,041) Construction w ork in progress 2,965,281 732,625 3,697,906 Total capital assets 68,386,036 86,801,607 155,187,643 Total Non-Current Assets 72,666,707 91,130,516 163,797,223 TOTAL ASSETS 116,505,670 106,852,947 11,235,434 1,129,827 235,723,878 DEFERRED OUTFLOWS OF RESOURCES Pension 3,020,013 2,013,342 - - 5,033,355 OPEB 1,327,110 884,740 2,211,850 Unamortized loss on refunding - 347,164 347,164 Total deferred outflows of resources 4,347,123 3,245,246 - - 7,592,369 TOTAL ASSETS AND DEFERRED OUTFLOWS OF RESOURCES $ 120,852,793 $ 110,098,193 $ 11,235,434 $ 1,129,827 $ $ 243,316,247 Page 180 Page 90 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT SUPPLEMENTARY INFORMATION December 31, 2024 CONSOLIDATING STATEMENT OF NET POSITION -PAGE 2 OF 2 As of December 31,2024 Component Units Electric Operations Water Operations Gray's Crossing Old Greenwood Eliminations Totals NET POSITION AND LIABILITIES CURRENT LIABILITIES Other liabilities Accounts payable $ 3,171,505 $ 692,662 $ $ $ $ 3,864,167 Customer deposits 463,372 141,703 605,075 Subscription software liability,current portion 68,688 36,986 105,674 Compensated absences,current portion 399,178 389,646 788,824 Other 1,111,014 6,053 1,117,067 Total other liabilities 5,213,757 1,267,050 6,480,807 Current liabilities payable from restricted assets: Current portion of long-term debt 155,000 965,000 1,390,000 611,100 3,121,100 Accrued interest payable 34,616 128,198 440,806 88,579 692,199 Total Current Liabilities Payable from Restricted Assets 189,616 1,093,198 1,830,806 699,679 3,813,299 Total Current Liabilities 5,403,373 2,360,248 1,830,806 699,679 10,294,106 NON-CURRENT LIABILITIES Long-term debt,net of discounts and premiums 6,261,511 23,651,641 22,574,536 5,746,200 58,233,888 Subsrciption software liability,net of current portion 86,827 46,753 - - 133,580 Compensated absences,net of current portion 695,880 702,784 1,398,664 Net pension liability 10,800,692 7,200,462 18,001,154 OPEB liability 2,852,900 1,901,933 - - 4,754,833 Unearned revenues 2,454,463 819,564 1,716,602 432,052 5,422,681 Total non-current liabilities 23,152,273 34,323,137 24,291,138 6,178,252 87,944,800 Total Liabilities 28,555,646 36,683,385 26,121,944 6,877,931 98,238,906 DEFERRED INFLOWS OF RESOURCES Pension 120,137 80,092 - - 200,229 OPEB 1,226,577 817,718 2,044,295 Leases receivable - 1,253,249 1,253,249 Total deferred inflows of resources 1,346,714 2,151,059 3,497,773 NET POSITION Net investment in capital assets 68,853,844 62,448,391 (23,964,536) (6,357,300) 100,980,399 Restricted for debt service 1,265,651 2,234,335 2,919,807 - 6,419,793 Unrestricted 20,830,938 6,581,023 6,158,219 609,196 34,179,376 Total Net Position 90,950,433 71,263,749 (14,886,510) (5,748,104) 141,579,568 TOTAL LIABILITIES,DEFERRED INFLOWS OF RESOURCES AND NET POSITION $ 120,852,793 $ 110,098,193 $ 11,235,434 $ 1,129,827 $ $ 243,316,247 Page 181 Page 91 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT SUPPLEMENTARY INFORMATION December 31, 2024 CONSOLIDATING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION For the Year Ended December 31,2024 Component Units Electric Operations Water Operations Gray's Crossing Old Greenwood Eliminations Totals OPERATING REVENUES Sales to customers $ 34,391,270 19,097,947 $ $ $ $ 53,489,217 Interdepartmental sales 1,448,619 3,500 (1,452,119) - Standby fees 16,039 99'"1 115,480 Cap and trade proceeds 518,027 - 518,027 Other 1,287,187 378,433 (581,400) 1,084,220 Total Operating Revenues 37,661,142 19,579,321 (2,033,519) 55,206,944 OPERATING EXPENSES Purchased power 13,164,111 - 13,164,111 Operations and maintenance 8,705,506 8,398,541 (1,452,119) 15,651,928 Consumer services 2,029,744 1,159,242 3,188,986 Administration and general 5,681,876 4,198,757 (581,400) 9,299,233 Depreciation and amortization 3,358,962 5,128,008 8,486,970 Total Operating Expenses 32,940,199 18,884,548 (2,033,519) 49,791,228 Operating Income 4,720,943 694,773 5,415,716 NON-OPERATING REVENUE(EXPENSES) Special tax revenue - - 3,232,986 856,587 4,089,573 Investment income(loss) 1,749,236 894,432 133,757 29,799 2,807,224 Interest expense (291,507) (1,064,320) (1,368,500) (281,628) (3,005,955) Amortization credit(expense) 10,289 40,969 (5,205) - 46,053 Other non-operating revenues - - 48,766 5,939 54,705 Other non-operating expenses - - (63,037) (64,252) (127,289) Gain on disposition of assets 7,618 10,660 18,278 Total Non-Operating Revenue(E(penses) 1,475,636 (118,259) 1,978,767 546,445 3,882,589 Income Before Contributions 6,196,579 576,514 1,978,767 546,445 9,298,305 CAPITAL CONTRIBUTIONS 1,427,444 1,042,923 - - 2,470,367 CHANGE IN NET POSITION 7,624,023 1,619,437 1,978,767 546,445 11,768,672 NET POSITION-Beginning of Year 83,326,410 69,644,312 (16,865,277) (6,294,549) 129,810,896 NET POSITION-END OF YEAR $ 90,950,433 $ 71,263,749 $ (14,886,510) $ (5,748,104) $ $ 141,579,568 Page 182 Page 92 of 114 THIS PAGE IS INTENTIONALLY LEFT BLANK Page 93 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT SUPPLEMENTARY INFORMATION December 31, 2024 CONSOLIDATING STATEMENT OF CASH FLOWS—PAGE 1 OF 2 For the Year Ended December 31,2024 Component Units Electric Operations Water Operations Gray's Crossing Old Greenwood Eliminations Total CASH FLOWS FROM OPERATING ACTIVITIES Received from customers $ 39,229,963 $ 19,547,156 $ $ $ (2,033,519) $ 56,743,600 Paid to suppliers for goods and services (21,146,067) (8,716,783) 2,033,519 (27,829,331) Paid to employees for services (6,958,027) (3,902,404) - (10,860,431) Net cash provided by operating activities 11,125,869 6,927,969 18,053,838 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital expenditures for utility plant (7,787,320) (6,762,873) (14,550,193) Net proceeds from disposal of assets 7,618 2,605 10,223 Capital contributions,connection and facility fees 1,011,368 448,455 1,459,823 Special tax receipts - - 2,434,418 787,100 3,221,518 Principal payments on subscription liability (120,379) (64,820) - - (185,199) Interest payments on subscription liability (12,523) (6,743) (19,266) Principal payments on long-term debt (155,290) (920,000) (1,270,000) (570,300) (2,915,590) Interest payments on long-term debt (273,893) (1,064,788) (1,391,540) (289,574) (3,019,795) Net cash used by capital and related financing activities (7,330,419) (8,368,164) (227,122) (72,774) (15,998,479) CASH FLOWS FROM INVESTING ACTIVITIES Purchases of investments Maturity of non-cash investment 1,500,000 1,000,000 - - 2,500,000 Interest income received 1,351,292 717,415 135,498 29,409 2,233,614 Net cash provided by investing activities 2,851,292 1,717,415 135,498 29,409 4,733,614 Net increase(decrease)in cash and cash equivalents 6,646,742 277,220 (91,624) (43,365) 6,788,973 CASH AND CASH EQUIVALENTS—Beginning of Year 29,105,793 11,601,673 2,150,330 303,195 43,160,991 CASH AND CASH EQUIVALENTS—END OF YEAR $ 35,752,535 $ 11,878,893 $ 2,058,706 $ 259,830 $ $ 49,949,964 Page 84 Page 94 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT SUPPLEMENTARY INFORMATION December 31, 2024 CONSOLIDATING STATEMENT OF CASH FLOWS—PAGE 2 OF 2 For the Year Ended December 31,2024 Component Units Electric Operations Water Operations Gray's Crossing Old Greenwood Eliminations Total RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES Operating income $ 4,720,943 $ 694,773 $ $ $ $ 5,415,716 Noncash items included in operating income Depreciation and amortization 3,358,962 5,128,008 8,486,970 Depreciation charged to other accounts 251,783 213,510 465,293 Pension GASB 68 valuation 743,003 495,335 1,238,338 OPEB GASB 75 valuation 722,345 481,563 1,203,908 Accounts receivable 1,460,502 (38,879) 1,421,623 Materials and supplies (311,896) 7,922 (303,974) Repaid expenses (79,167) (30,229) (109,396) Accounts payable (327,299) (74,241) (401,540) Customer deposits 108,319 41,674 149,993 Deferred pension contributions - - - Deferred inflow,leases amortization (31,089) (31,089) Leases receivable - (3,871) (3,871) Other current liabilities 478,374 43,493 521,867 NET CASH PROVIDED BY OPERATING ACTIVITIES $ 11,125,869 $ 6,927,969 $ $ $ $ 18,053,838 RECONCILIATION OF CASH AND CASH EQUIVALENTS TO THE BALANCE SHEET Operating 10,674,399 4,003,765 86,546 259,830 $ $ 15,024,540 Designated 16,722,865 5,517,131 - - 22,239,996 Restricted bond funds-current 8,340,840 2,362,995 1,972,160 12,675,995 Operating investments-non-current 2,938,555 - 2,938,555 Designated investments-non-current 4,280,671 4,280,671 Total Cash and Investments 40,018,775 14,822,446 2,058,706 259,830 57,159,757 Less: Long-term investments (4,280,671) (2,938,555) - - (7,219,226) Mark to market adjustment 14,431 (4,998) - 9,433 TOTAL CASH AND CASH EQUIVALENTS $ 35,752,535 $ 11,878,893 $ 2,058,706 $ 259,830 $ $ 49,949,964 Page 85 Page 95 of 114 STATISTICAL SECTION A ik fk i s �+ Photo: Inside the Joseph R. Aguera Pumpstation 2024 Page 86 Page 96 of 114 STATISTICAL SECTION INTRODUCTION AND CONTENTS INDEX This part of the District's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the District's overall financial health. Contents Page Range Financial Trends 88- 89 Information trends to help the reader understand how the District's financial performance and condition have changed over time. Revenue Capacity 90- 92 Information trends to help the reader understand the District's revenue sources. Debt Capacity 93 - 94 Current and past trends regarding the level of debt existing and the Debt capacity of the District. Demographic and Economic Information 95- 96 These schedules help the reader understand the environment within which the District's financial activities occur. Operating Information 97- 99 Service and infrastructure information to help the reader understand the District's customers and operational impacts on financial information. Page 87 Page 97 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT CONSOLIDATED STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION 10-Years Ended December 31, 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 OPERATING REVENUES Sales to customers $ 53,489,218 $ 50,221,144 $ 46,272,358 $ 41,835,534 $ 38,988,024 $ 37,029,653 $ 35,486,412 $ 34,462,146 $ 33,026,587 $ 30,818,856 Standby fees 115,480 116,041 122,811 124,130 133,470 137,580 143,320 154,970 160,670 169,010 Cap and trade proceeds 518,027 401,879 514,604 847,185 1,444,498 1,503,495 1,186,320 1,140,372 1,172,306 965,402 Other 1,084,220 1,271,129 1,118,386 693,618 1,176,035 662,843 868,965 2,577,865 1,244,146 1,023,729 Total Operating Revenues 55,206,945 52,010,193 48,028,159 43,500,467 41,742,027 39,333,571 37,685,017 38,335,353 35,603,709 32,976,997 OPERATING EXPENSES Purchased power 13,164,111 14,068,454 16,823,869 13,560,417 11,285,537 10,754,898 11,001,858 11,327,300 11,511,308 11,348,241 Operations and maintenance 15,651,928 15,596,569 12,037,231 12,464,186 11,340,451 9,768,460 9,056,263 10,241,955 6,951,273 6,804,271 Consumer services 3,188,986 2,751,310 2,370,280 2,255,853 2,080,714 2,667,957 2,152,817 2,593,005 2,130,422 2,159,522 Administration and general 9,299,233 8,393,055 6,541,824 6,366,879 6,165,611 5,772,396 5,002,288 5,008,231 4,331,827 4,054,439 Pension expense(1) 1,220,591 565,373 OPEB expense(1) 719,218 Depreciation 8,486,970 8,004,903 7,712,381 7,917,950 7,974,868 7,420,251 6,878,860 6,531,640 6,237,033 5,960,520 Total Operating Expenses 49,791,228 48,814,291 45,485,585 42,565,285 38,847,181 36,383,962 34,092,086 35,702,131 33,101,672 30,892,366 Operating Income 5,415,717 3,195,902 2,542,574 935,182 2,894,846 2,949,609 3,592,931 2,633,222 2,502,037 2,084,631 NON-OPERATING REVENUE(EXPENSES) Special tax revenue 4,089,573 3,818,572 3,655,524 3,431,174 3,375,327 3,352,289 3,268,849 3,342,077 3,290,186 3,306,080 Investment income 2,807,224 2,728,794 (747,522) (185,269) 573,668 1,038,582 694,432 420,490 390,310 393,002 Interest expense (3,005,955) (3,154,114) (2,727,946) (2,369,633) (2,530,616) (2,647,817) (2,753,906) (2,868,084) (3,060,079) (3,141,758) Amortization 46,053 46,053 3,901 (38,250) (38,250) (38,250) (38,250) (38,250) (17,804) 10,150 Other non-operating revenues 54,705 23,967 1,726,783 83,524 41,766 48,096 21,332 42,057 63,008 34,126 Other non-operating expenses (127,289) (10,403) (690,460) (79,025) (238,590) (38,160) (31,691) (26,377) (150,000) (251,753) Gain(loss)on disposition of assets 18,278 30,265 48,087 48,339 238,885 13,748 1,284 7,538 (1,514) 30,990 Total Non-Operating Revenue,Net 3,882,589 3,483,134 1,268,367 890,860 1,422,190 1,728,488 1,162,050 879,451 514,107 380,837 Income Before Contributions 9,298,306 6,679,036 3,810,941 1,826,042 4,317,036 4,678,097 4,754,981 3,512,673 3,016,144 2,465,468 CAPITAL&OTHER CONTRIBUTIONS 2,470,367 2,368,362 3,221,872 6,351,674 2,043,795 4,683,099 4,652,720 2,096,828 1,699,110 1,430,510 CHANGE IN NET POSITION 11,768,673 9,047,398 7,032,813 8,177,716 6,360,831 9,361,196 9,407,701 5,609,501 4,715,254 3,895,978 Net Position-Beginning of Year,before adjustment 129,810,896 121,846,435 114,813,622 106,635,906 100,275,075 90,913,879 84,857,643 79,248,142 74,532,888 70,636,910 Less: Restatement for change in - (1,082,937) - - - (3,351,465) - - accounting principal(2)(3) Net Position-Beginning of Year,as adjusted 129,810,896 120,763,498 114,813,622 106,635,906 100,275,075 90,913,879 81,506,178 79,248,142 74,532,888 70,636,910 NET POSITION-END OF YEAR $141,579,569 $129,810,896 $121,846,435 $114,813,622 $106,635,906 $100,275,075 $ 90,913,879 $ 84,857,643 $ 79,248,142 $ 74,532,888 (1)Pension and OPEB costs separately stated in 2015 and 2016. For all other years,these costs are included Operations and maintenance,Consumer services,and Administration and general categories,as applicable. (2)In 2018,the District adopted GASB Statement No 75,Accounting and Financial Reporting for Postemployment Benefits other than Pensions. The beginning of year net position was adjusted for this change. (3)In 2023,the District adopted GASB Statement No 101,Compensated Absences. The beginning of year net position was adjusted for this change. Page 188 Page 98 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NET POSITION BY COMPONENT AND SEGMENT 10-Years as of December 31, 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 NET POSITION by COMPONENT,as of December 31, Net investment in capital assets $100,980,399 $ 92,055,779 $ 88,640,941 $ 86,889,607 $ 79,111,738 $ 74,841,974 $ 66,843,642 $ 55,267,086 $ 52,052,148 $ 47,043,317 Restricted 6,419,793 6,129,427 6,896,168 7,248,976 11,439,913 11,052,666 9,742,741 9,288,950 8,773,009 8,569,701 Unrestricted 34,179,377 31,625,690 26,309,326 20,675,039 16,084,255 14,380,435 14,327,496 20,301,607 18,422,985 18,919,870 Net Position,Total $141,579,569 $129,810,896 $121,846,435 $114,813,622 $106,635,906 $100,275,075 $ 90,913,879 $ 84,857,643 $ 79,248,142 $ 74,532,888 CHANGE IN NET POSITION to PRIOR YEAR,Amount Net investment in capital assets $ 8,924,620 $ 3,414,838 $ 1,751,334 $ 7,777,869 $ 4,269,764 $ 7,998,332 $ 11,576,556 $ 3,214,938 $ 5,008,831 $ 7,381,579 Restricted 290,366 (766,741) (352,808) (4,190,937) 387,247 1,309,925 453,791 515,941 203,308 (1,951,960) Unrestricted 2,553,686 5,316,364 5,634,287 4,590,784 1,703,820 52,939 (5,974,111) 1,878,622 (496,885) (1,533,641) Total Change in Net Position from Prior Year $ 11,768,672 $ 7,964,461 $ 7,032,813 $ 8,177,716 $ 6,360,831 $ 9,361,196 $ 6,056,236 $ 5,609,501 $ 4,715,254 $ 3,895,978 CHANGE IN NET POSITION to PRIOR YEAR,Percentage Net investment in capital assets 9.7% 3.9% 2.0% 9.8% 5.7% 12.0% 20.9% 6.2% 10.6% 18.6% Restricted 4.7% -11.1% -4.9% -36.6% 3.5% 13.4% 4.9% 5.9% 2.4% -18.6% Unrestricted 8.1% 20.2% 27.3% 28.5% 11.8% 0.4% -29.4% 10.2% -2.6% -7.5% Total Change in Net Position from Prior Year 9.1% 6.5% 6.1% 7.7% 6.3% 10.3% 7.1% 7.1% 6.3% 5.5% For more information on the change in Net Position;refer to prior page for 10 Years of CONSOLIDATED STATEMENTS OF REVENUES,EXPENSES AND CHANGES IN NET POSITION NET POSITION,BY COMPONENT,BY SEGMENT,as of December 31 Net investment in capital assets Electric Operations $ 68,853,844 $ 63,576,397 $ 60,810,337 $ 61,480,384 $ 59,467,730 $ 56,177,123 $ 50,048,040 $ 43,501,844 $ 42,500,995 $ 41,484,835 Water Operations 62,448,391 60,636,313 61,705,531 60,813,445 56,437,825 56,721,963 56,123,709 52,216,044 50,920,550 47,786,674 Gray's Crossing CFD (23,964,536) (25,229,331) (26,419,127) (27,463,922) (28,408,717) (29,263,512) (30,163,307) (30,948,102) (31,557,897) (32,137,692) Old Greenwood CFD (6,357,300) (6,927,600) (7,455,800) (7,940,300) (8,385,100) (8,793,600) (9,164,800) (9,502,700) (9,811,500) (10,090,500) Net investment in capital assets,total $100,980,399 $ 92,055,779 $ 88,640,941 $ 86,889,607 $ 79,111,738 $ 74,841,974 $ 66,843,642 $ 55,267,086 $ 52,052,148 $ 47,043,317 Restricted Electric Operations $ 1,265,651 $ 902,528 $ 872,435 $ 1,068,491 $ 2,354,515 $ 2,455,342 $ 1,777,693 $ 1,842,553 $ 1,316,355 $ 944,929 Water Operations 2,234,335 2,331,910 2,932,265 3,351,806 6,273,747 5,803,021 5,114,785 4,576,780 4,695,114 4,817,195 Gray's Crossing CFD 2,919,807 2,894,989 3,091,468 2,828,679 2,811,651 2,794,303 2,850,263 2,869,617 2,761,540 2,807,577 Old Greenwood CFD - - - - - - - - - - Restricted,total $ 6,419,793 $ 6,129,427 $ 6,896,168 $ 7,248,976 $ 11,439,913 $ 11,052,666 $ 9,742,741 $ 9,288,950 $ 8,773,009 $ 8,569,701 Unrestricted Electric Operations $ 20,830,939 $ 18,847,485 $ 16,701,721 $ 13,651,321 $ 10,294,409 $ 8,653,888 $ 8,594,312 $ 10,762,466 $ 7,920,940 $ 5,912,854 Water Operations 6,581,023 6,676,089 4,198,202 1,687,142 600,254 519,901 734,026 4,682,775 5,875,984 8,770,727 Gray's Crossing CFD 6,158,219 5,469,065 4,803,982 4,749,096 4,635,070 4,670,778 4,442,898 4,256,091 3,976,683 3,561,565 Old Greenwood CFD 609,196 633,051 605,421 587,480 554,522 535,868 556,260 600,275 649,378 674,724 Unrestricted,total $ 34,179,377 $ 31,625,690 $ 26,309,326 $ 20,675,039 $ 16,084,255 $ 14,380,435 $ 14,327,496 $ 20,301,607 $ 18,422,985 $ 18,919,870 Page 89 Page 99 of 114 Truckee Donner Public Utility District Electric and Water-Account Type Mix and Rates Last 11 Years Electric Utility Average Number of Accounts Typical Residential Average Monthly Bill Average Residential Residential Non- Rate Year Primary Secondary Residential Total Residential i Primary Secondary Primary Secondary Increase Non-Residential @ 500 KwH @ 500 KwH @ 785 KwH @ 420 KwH Prim.I Secon. (1) (1) (2) Mix (3) (3) (4) (4) (5) 2024 5,189 7,929 1,680 14,798 89%111% $110.67 $122.12 $158.09 $106.98 12.0%112.0% 2023 5,160 7,868 1,654 14,682 89%111% $98.83 $109.03 $141.18 $95.51 6.5%16.7% 2022 5,129 7,812 1,661 14,602 89%111% $92.18 $102.48 $132.56 $89.50 8.3%19.0% 2021 4,971 7,789 1,656 14,416 89%111% $84.70 $94.20 $122.41 $82.10 2.0%13.0% 2020 4,898 7,659 1,619 14,176 89%111% $82.33 $91.83 $120.04 $79.73 1.8%12.7% 2019 4,810 7,565 1,585 13,960 89%111% $80.25 $89.75 $117.96 $77.65 2.4%13.7% 2018 4,798 7,462 1,558 13,818 89%111% $77.50 $87.00 $115.20 $74.89 1.9%13.0% 2017 4,784 7,389 1,535 13,708 89%111% $75.35 $84.85 $113.05 $72.74 1.7%12.6% 2016 4,738 7,303 1,527 13,568 89%111% $73.51 $83.01 $111.21 $70.90 0.0%10.0% 2015 4,642 7,235 1,512 13,389 89%111% $73.51 $83.01 $111.21 $70.90 0.0%10.0% 2014 4,646 7,157 1,517 13,320 89%111% $73.51 $83.01 $111.21 $70.90 0.0%10.0% (A) Syr CAGR 1.5% 0.9% 1.2% 1.2% N/A 6.6% 6.4% 6.0% 6.6% N/A 10yrCAGR 1.1% 1.0% 1.0% 1.1% N/A 4.2% 3.9% 3.6% 4.2% N/A Water Utility Average Number of Accounts Typical Residential Average Monthly Bill-5000 Gallons of Use column Non- Excluding Including column column Annual Year Residential not used Residential Total Residential I PumpZone PumpZone not used not used Increase Non-Residential Charge Charge(PZC) Including (6) (2) Mix (7) (7) PZC 2024 12,907 782 13,689 94%16% $102.59 $110.53 9.7% 2023 12,845 764 13,609 94%16% $94.96 $100.76 6.3% 2022 12,754 772 13,526 94%16% $87.95 $94.80 9.0% 2021 12,635 765 13,400 94%16% $80.69 $86.97 10.7% 2020 12,505 748 13,253 94%16% $73.56 $78.58 3.3% 2019 12,261 865 13,126 93%17% $71.44 $76.05 3.5% 2018 12,317 709 13,026 95%15% $69.32 $73.51 3.4% 2017 12,218 706 12,924 95%15% $67.30 $71.07 5.3% 2016 12,121 706 12,827 94%16% $64.12 $67.47 5.8% 2015 12,012 704 12,716 94%16% $60.78 $63.75 4.8% 2014 11,915 699 12,614 94%16% $58.40 $60.84 3.0% (A) 5yrCAGR 1.0% -2.0% 0.8% N/A 7.5% 7.8% N/A 10yr CAGR 0.8% 1.1% 0.8% N/A 5.8% 6.2% N/A Source: Truckee Donner Public Utility District records Notes: (1) Two main residential rate categories;Primary(P)and Secondary(S);with mix currently 40%P and 60%S from 10 years ago 39%P and 61%S. Also see(6). (2) Non-Residential account type includes commercial businesses and governmental agencies. Commercial average monthly bills are not presented,as commercial accounts monthly bills vary widely by account based on meter size and usage. (3) Average for Primary and Secondary residential,at same KwH usage. Amounts for(3)and(4)include Public Benefit and Solar California mandates. (4) Average for Primary and Secondary residential,at 3 year average KwH usage for the account type P and S. Also see 2nd half of note(3). (5) Average annual rate increase for P I S based on(4)usage averages. (6) The average number of accounts is annual average for the year,the number of accounts each month varies. (7) Residential average includes Monthly Service Fee,Usage Fee based on Volume,and Pump Zone charge based on elevation zone. Pump Zone 1 charge is zero. Accounts are in 1 of 7 pump zones of District,based on elevation. The Including Pump Zone average is weighted average based on number of accounts per zone. (A) Compounded Annual Growth Rate(CAGR)metrics for 2024 compared to respective number of years(yr)prior Page 90 Page 100 of 114 Truckee Donner Public Utility District (TDPUD) Electric and Water Utilities - FY 2024 Regional Average Monthly Residential Bill Comparison Electric-Typical Monthly Bill* Water-Typical Monthly Bill SDG&E* $220.93 Alpine Springs CWD $132.27 PG&E* i $218.58 SCE* $194.27 Olympic Valley PSD $129.69 Liberty 1 $170.26 Pasadena* 1 $14 .14 LADWP* $130.78 Tahoe City PUD $112.32 Plumas-Sierra* $122.65 Donner Summit PUD $112.30 TDPUD Secondary(2) $122.12 Modesto ID* $119.42 TDPUD Blended(3) $117.54 TDPUD Inc Pump(5) $110.53 Azusa* $111.39 TDPUD Primary(1) $110.67 Northstar CSD $105.02 SMUD* $109.64 Lompoc* $109.40 TDPUD Exc Pump(4) $102.59 Redding $107.55 Lodi* $107.40 San Francisco PUC $97.88 Palo Alto* $106.55 Merced ID* 11 $106.16 North Tahoe PUD $88.31 Riverside* $103.54 Imperial ID* $98.68 South Tahoe PUD $73.72 Anaheim $97.10 Nevada Irrigation District $63.26 Roseville* $94 91 Turlock ID* $85.11 Santa Clara* $82.88 Sacramento SWD $57.21 7 $0 $50 $100 $150 $200 $250 $0 $20 $40 $60 $80 $100 $120 $140 TDPUD compiled this information from a review of each respective District's website for applicable ordinances/rates information.Monthly bills assume a typical customer consumption of 500 kWh per month in electricity and 5,000 gallons per month in water (1)Primary residence accounts 40% (4)Excluding Pump Zone charge (2)Second home residence accounts 60% (5)Including Pump Zone charge,the weighted average (3)Weighted average of(1)and(2) of the 7 pump zones. Note-Second homes average KwH usage is historically 54%of Primary homes KwH average usage Pump zone charges are based on water elevation zones of Weighted average for utilities with Summer and Winter rates service territory. Page 191 Page 101 of 114 Truckee Donner Public Utility District Ten Largest Customers and Sales Mix Current Year and Nine Years Ago Electric Utility 2024 2015 Customer %of Total Customer %of Total Customer(1)(2) Revenue Rank Revenue Revenue Rank Revenue Tahoe Forest Hospital $ 1,444,615 1 4.0% $ 804,227 2 3.9% Tahoe Truckee Sanitation Agency 1,227,713 2 3.4% 843,167 1 4.1% Private Company,A 849,630 3 2.4% 0.0% Tahoe Truckee Unified School District 673,108 4 1.9% 375,778 4 1.8% Private Company, B 447,898 5 1.3% 0.0% Private Company, C 402,194 6 1.1% 377,185 3 1.8% Private Company, D 390,836 7 1.1% 220,472 7 1.1% Private Company, E 367,443 8 1.0% 276,757 5 1.3% Truckee Donner Recreation and Park District 324,800 9 0.9% 0.0% Town of Truckee 313,933 10 0.9% 211,539 8 1.0% Private Company, F 245,632 6 Private Company, G 200,374 9 Private Company, H 157,776 10 Total,Top 10 Customers $ 6,4429170 18.0% $ 3,7129907 18.1% Total Sales to Customers $ 35,725,877 100.0% $ 20,505,263 100.0% Residential $ 20,389,025 57.1% $ 11,689,253 57.0% Sales Mix Commercial $ 10,554,060 29.5% $ 5,867,460 28.6% Public Authorities $ 4,782,792 13.4% $ 2,948,550 14.4% Water Utility 2024 2015 Customer %of Total Customer %of Total Customer(1) Revenue Rank Revenue Revenue Rank Revenue Private Company, D $ 230,601 1 1.2% $ 78,605 2 0.8% Private Company, E 226,586 2 1.2% 137,430 1 1.3% Truckee Donner Recreation and Park District 79,110 3 0.4% 47,749 3 0.5% Private Company, 1 73,897 4 0.4% 42,824 4 0.4% Tahoe Forest Hospital 64,348 5 0.3% 36,434 6 0.4% Tahoe Truckee Unified School District 56,057 6 0.3% 38,425 5 0.4% Private Company, J 55,115 7 0.3% 30,083 8 0.3% Town of Truckee 51,797 8 0.3% 0.0% Private Company, K 50,509 9 0.3% 32,364 7 0.3% Private Company, L 41,831 10 0.2% 24,414 10 0.2% Private Company, M 25,641 9 0.2% Total,Top 10 Customers $ 929,851 4.9% $ 4939969 4.8% Total Sales to Customers $ 19,1299720 100.0% $ 10,3139593 100.0% Residential Potable $ 16,909,336 88.4% $ 9,076,203 88.0% Sales Mix Non-Residential Potable $ 1,968,064 10.3% $ 1,090,140 10.6% Non-potable $ 252,320 1.3% $ 147,250 1.4% (1)To preserve confidentiality, private company customer names are not disclosed. (2) Electric Utility table excludes internal customer,Water Utility,with Revenue of$1.5 million in 2024 and 1.1 million in 2015.The Electric Utility revenue from Water Utility is eliminated on a Consolidated Financial Statement basis. Source: Truckee Donner Public Utility District Customer Service Department Page 192 Page 102 of 114 Truckee Donner Public Utility District Debt Coverage Last 10 Years Dollars in Thousands except for Coverage Ratio Electric Utility A B A -B= C D CID Total Total Net Revenues Debt Year Revenues Expenses Available For Service Coverage (1) (2) Debt Service Requirement(3) Ratio 2024 40,064 29,581 10,483 429 24.42 2023 37,991 29,911 8,079 431 18.74 2022 33,539 29,439 4,101 655 6.26 2021 30,916 26,720 4,197 1,072 3.92 2020 30,409 23,010 7,399 1,058 6.99 2019 29,258 21,093 8,165 1,000 8.16 2018 27,782 20,237 7,545 1,429 5.28 2017 28,336 22,108 6,228 468 13.32 2016 25,628 20,223 5,405 1,000 5.40 2015 24,322 18,944 5,378 895 6.01 Water Utility A B A -B= C D CID Total Total Net Revenues Debt Year Revenues Expenses Available For Service Coverage (1) (2) Debt Service Requirement(3) Ratio 2024 20,831 13,757 7,074 1,984 3.56 2023 19,377 12,822 6,555 1,987 3.27 2022 17,986 10,137 7,849 1,305 6.01 2021 16,981 9,736 7,245 2,046 3.54 2020 15,107 9,599 5,508 2,024 2.72 2019 14,419 9,552 4,867 2,018 2.41 2018 13,769 8,662 5,107 2,016 2.53 2017 12,909 8,775 4,134 2,341 1.77 2016 12,908 8,171 4,737 2,389 1.98 2015 11,401 7,461 3,940 2,431 1.62 (1) Includes interest income, facilities fees, and connection fees; Water excludes Donner Lake Assessment District special tax (assessment) revenues (2) Excludes depreciation, interest and amortization expense (3) Includes principal and interest of bond (certificates of participation, and other types)debt, parity and subordinate; Water excludes Donner Lake Assessment District SRF loan debt; includes credit offset for interest on parity debt reserve funds; excludes refunding activities. Page 193 Page 103 of 114 Truckee Donner Public Utility District Total Long-Term Debt per Account and Ratios Last 10 Years As of year ended December31, 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Electric Utility Total Debt($000s) (1) $6,416 $6,572 $6,722 $552 $ 1,603 $2,604 $3,524 $4,804 $5,218 $5,662 Number of Accounts 14,798 14,682 14,602 14,416 14,176 13,960 13,818 13,708 13,568 13,389 Debt per Account $434 $448 $460 $38 $ 113 $ 187 $255 $350 $385 $423 Debt to Total Revenue 19% 20% 20% 2% 5% 9% 13% 17% 20% 23% Debt to Net Capital 10% 10% 11% 1% ° ° ° ° ° ° Assets 3/° 4/° 7/° 10/° 11/° 12/° Water Utility Total Debt($000s) (2) $24,617 $25,610 $26,569 $ 11,022 $ 16,579 $ 18,845 $21,058 $23,217 $25,631 $27,857 Number of Accounts 13,689 13,609 13,526 13,400 13,253 13,126 13,026 12,924 12,827 12,716 Debt per Account $ 1,798 $ 1,882 $ 1,964 $823 $ 1,251 $ 1,436 $ 1,617 $ 1,796 $ 1,998 $2,191 Debt to Total Revenue(2) 131% 136% 141% 62% 104% 124% 145% 169% 187% 228% Debt to Net Capital 29% 30% 35% 15% 23% 25% 27% 31% 34% 37% Assets Grey's Crosssing CFD Total Debt($000s) (3) $23,965 $25,229 $26,419 $27,464 $28,409 $29,263 $30,163 $30,948 $31,558 $32,138 Number of Parcels (5) 425 425 426 407 407 408 413 413 415 415 Debt per Parcel $56,387 $59,363 $62,017 $67,479 $69,800 $71,724 $73,035 $74,935 $76,043 $77,440 Old Greenwood CFD Total Debt($000s) (4) $6,357 $6,928 $7,456 $7,940 $8,385 $8,794 $9,165 $9,503 $9,811 $ 10,091 Number of Parcels (5) 1,262 1,262 1,262 1,254 1,254 1,238 1,238 1,231 1,231 1,231 Debt per Parcel $5,037 $5,489 $5,908 $6,332 $6,687 $7,103 $7,403 $7,719 $7,970 $8,197 ($000s) Total Utility Debt $31,033 $32,182 $33,291 $ 11,574 $ 18,182 $21,449 $24,582 $28,021 $30,849 $33,520 Total CFD Debt $30,322 $32,157 $33,875 $35,404 $36,794 $38,057 $39,328 $40,451 $41,369 $42,228 Total Debt, Consolidated Lfil 355 LfL4 339 LE 666 L46 778 LfL4 776 L5L9 506 L63 110 L68 472 LZ2 218 LZ5 448 (1)Electric Total Debt includes Pension Obligation Bonds, Installment Loan, and Certificates of Participation debt. (2)Water Total Debt includes Certificates of Participation debt, CA Dept. of Water Resources loan, Installment loans, and Donner Lake Assessment District(DLAD)related State RevoNing Fund (SRF)loan. Total Revenue for this report's Water Debt to Total Revenue includes DLAD tax assessment proceeds which applies the DLAD's SRF loan debt service of$800,852 for each year presented. (3)Grey's Crossing Community Facilities District (CFD)Debt is Special Tax Bonds-Mello Roos. (4)Old Greenwood Community Facilities District (CFD)Debt is Special Tax Bonds-Mello Roos. (5)Number of parcels subject to CFD Special Tax Mello Roos Bonds varies by year due to full pre-payments and parcel splits, and represents special tax assessment parcels. Page 194 Page 104 of 114 Truckee Donner Public Utility District Demographic and Economic Information Last 11 Years Town of Truckee(1) Per Capita TTUSD Labor Personal Personal School Year Force Unemployment Population Income Income Enrollment (2) (2) (3) (4) (5) (6) 2024 9,600 5.5% 16,778 $73,455 $1,232,427,990 4,135 2023 9,500 4.1% 16,702 $63,792 $1,065,453,984 4,176 2022 9,420 3.6% 16,693 $59,141 $987,240,713 4,165 2021 9,220 5.9% 16,213 $51,955 $842,346,415 4,159 2020 9,160 5.8% 16,735 $46,295 $774,746,825 4,193 2019 9,880 1.3% 16,434 $46,280 $760,565,520 4,168 2018 10,370 2.6% 16,309 $45,706 $745,419,154 4,133 2017 10,490 3.0% 16,277 $43,898 $714,527,746 4,153 2016 10,110 3.9% 16,231 $42,439 $688,827,409 4,010 2015 10,070 5.3% 16,184 $40,414 $654,060,176 3,978 2014 10,010 6.4% 16,191 $37,117 $600,961,347 3,950 (A) : 5yrCAGR -0.6% 33.4% 0.4% 9.7% 10.1% -0.2% 10yr CAGR -0.4% -1.5% 0.4% 7.1% 7.4% 0.5% Sources and Legend: (1) The Town of Truckee boundaries comprise approximately 95%of the District's service territory. (2) California Employment Development Department (3) California Department of Finance Projections for Town of Truckee (4) United States Census Data adjusted for inflation and Town of Truckee (5) Personal Income calculated as Population (3)multiplied by Per Capital Income(4) (6) California Ed-Data Partnership; Tahoe-Truckee Unified School District(TTUSD), Census Day Enrollment for school district's fiscal year (A) Compounded Annual Growth Rate (CAGR) metrics for 2024 compared to respective number of years(yr)prior Page 195 Page 105 of 114 Truckee Donner Public Utility District Principal Employers Current Year and Five Years Ago 2024 2019 Percent Percent Number of of Total Number of of Total Employer Name Employees Employment Employees Employment Tahoe Forest Hospital District 838 8.7% 577 5.8% Tahoe-Truckee Unified School District* 633 6.6% 238 2.4% Town of Truckee 157 1.6% 128 1.3% Safeway* 132 1.4% 150 1.5% Mountain Hardware & Truckee Rents 106 1.1% Tahoe Donner Association 100 1.0% Truckee Donner Public Utility District 83 0.9% 70 0.7% Truckee Fire Protection District 58 0.6% Truckee-Donner Recreation & Park District 54 0.6% 31 0.3% Save Mart 42 0.4% 42 0.4% Mark Tanner Construction 65 0.7% Northstar Lodge (Welk Resorts) 180 1.8% Bar of America 22 0.2% Top 10 Employers, total 2,203 22.9% 1,503 15.2% Labor Force 9,600 100.0% 9,880 100.0% Sources and Comments: Source of Top 10 Employers is Town of Truckee's 2023/24 and 2018/19 Annual Comprehensive Financial Reports, and 2019 was the first year information provided and is based on direct inquiries to employers. Other than above from Town of Truckee, specific employer information is not publicly available to the District. Labor Force is from prior page. * Includes full & part-time employees Page 196 Page 106 of 114 Truckee Donner Public Utility District Operating Information Last 11 Years Electric Utility Water Utility Water IRS Number of KwH Capital Number of Production Capital Year W-2s FTEs Accounts Billed Assets, Net Accounts in Millions Assets, Net (1) (2) (Average) (000s) ($000s) (3) (Average) of Gallons ($000s) (3) 2024 92 83 14,798 168,497 $68,386 13,689 1,614 $86,802 2023 90 80 14,682 166,385 $63,688 13,609 1,497 $84,983 2022 89 77 14,602 167,155 $60,988 13,526 1,556 $75,982 2021 90 70 14,416 163,176 $61,493 13,400 1,715 $71,390 2020 82 68 14,176 159,134 $59,493 13,253 1,713 $72,539 2019 89 73 13,960 156,714 $58,756 13,126 1,503 $75,056 2018 86 72 13,818 151,944 $53,535 13,026 1,579 $76,638 2017 77 74 13,708 156,562 $48,258 12,924 1,487 $74,857 2016 78 72 13,568 151,527 $47,660 12,827 1,460 $75,942 2015 83 73 13,389 140,819 $47,079 12,716 1,381 $75,338 2014 78 71 13,320 142,584 $43,384 12,614 1,682 $75,938 (A) : 5yr CAGR 0.7% 2.6% 1.2% 1.5% 3.1% 0.8% 1.4% 3.0% 10yrCAGR 1.7% 1.6% 1.1% 1.7% 4.7% 0.8% -0.4% 1.3% Sources and Legend: (1) Number of Internal Revenue Service payroll W-2 forms issued for calendar/tax year (2) Full Time Equivalents (FTEs)calculated as payroll paid hours (work regular and overtime, vacation, sick, other)for year divided by 2080 (3) Capital Assets, Net as of year end is comprised of Gross Fixed Assets, less Accumulated Depreciation, plus Construction Work in Progress, presented as dollars in thousands ($000s) (A) Compounded Annual Growth Rate (CAGR) metrics for 2024 compared to respective number of years(yr) prior Page 197 Page 107 of 114 Truckee Donner Public Utility District Capital Assets by Function Last 10 Years Balance as of December 31, 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Plant Balances Electric distribution $ 89,304,756 $ 84,810,518 $ 80,851,917 $ 76,021,243 $ 71,894,379 $ 67,692,719 $ 64,204,691 $ 60,416,920 $ 58,345,690 $ 54,721,615 Water distribution 153,218,962 142,310,579 132,306,303 124,052,449 121,483,082 120,131,130 116,378,593 112,596,747 108,860,825 107,005,578 General plant 23,005,060 21,605,806 20,857,928 19,827,303 19,316,644 18,450,143 16,513,295 15,782,620 15,062,278 13,887,881 Total 265,528,778 248,726,903 234,016,148 219,900,995 212,694,105 206,273,992 197,096,579 188,796,288 182,268,793 175,615,074 Accumulated Depreciation and Amortization Electric distribution (29,381,810) (27,377,063) (25,615,227) (23,396,600) (21,385,441) (19,454,296) (19,488,505) (18,789,114) (17,045,716) (15,975,929) Water distribution (69,419,305) (64,952,166) (60,888,418) (56,654,194) (52,339,068) (48,269,854) (44,232,073) (40,260,086) (37,643,873) (34,248,569) General plant (15,237,926) (14,358,278) (13,519,645) (12,700,105) (11,522,788) (10,851,669) (10,372,265) (9,514,034) (8,683,151) (7,817,950) Total (114,039,041) (106,687,507) (100,023,290) (92,750,899) (85,247,297) (78,575,819) (74,092,843) (68,563,235) (63,372,739) (58,042,448) Plant Sub-Total Electric distribution 59,922,946 57,433,455 55,236,690 52,624,643 50,508,938 48,238,423 44,716,186 41,627,806 41,299,974 38,745,686 Water distribution 83,799,657 77,358,413 71,417,885 67,398,255 69,144,014 71,861,276 72,146,520 72,336,661 71,216,952 72,757,009 General plant 7,767,134 7,247,528 7,338,283 7,127,198 7,793,856 7,598,474 6,141,030 6,268,586 6,379,127 6,069,931 Total 151,489,737 142,039,396 133,992,858 127,150,096 127,446,808 127,698,173 123,003,736 120,233,053 118,896,054 117,572,626 Construction work in progress 3,697,906 6,631,266 3,604,888 5,732,900 4,584,711 6,114,079 7,169,814 2,881,021 4,706,276 4,844,042 TOTALS $ 155,187,643 $ 148,670,662 $ 137,597,746 $ 132,882,996 $ 132,031,519 $133,812,252 $ 130,173,550 $ 123,114,074 $ 123,602,330 $ 122,416,668 Change to Prior Year 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Change in Plant Electric distribution $ 4,494,238 $ 3,958,601 $ 4,830,674 $ 4,126,864 $ 7,689,688 $ 7,275,799 $ 3,787,771 $ 2,071,230 $ 3,624,075 $ 3,196,752 Water distribution 10,908,383 10,004,276 8,253,854 2,569,367 5,104,489 7,534,383 3,781,846 3,735,922 1,855,247 3,956,456 General plant 1,399,254 747,878 1,030,625 510,659 2,803,349 2,667,523 730,675 720,342 1,174,397 1,071,246 Total 16,801,875 14,710,755 14,115,153 7,206,890 15,597,526 17,477,704 8,300,291 6,527,495 6,653,719 8,224,454 Change in Accumulated Depreciation and Amortization Electric distribution (2,004,747) (1,761,836) (2,218,627) (2,011,159) (1,896,936) (665,182) (699,391) (1,743,399) (1,069,787) (1,133,424) Water distribution (4,467,139) (4,063,748) (4,234,224) (4,315,126) (8,106,995) (8,009,768) (3,971,987) (2,616,213) (3,395,304) (1,786,422) General plant (879,648) (838,633) (819,540) (1,177,317) (1,150,523) (1,337,635) (858,231) (830,884) (865,200) (646,854) Total (7,351,534) (6,664,217) (7,272,391) (7,503,602) (11,154,454) (10,012,584) (5,529,608) (5,190,496) (5,330,291) (3,566,701) Change in Plant Sub-Total Electric distribution 2,489,491 2,196,765 2,612,047 2,115,705 5,792,752 6,610,617 3,088,380 327,831 2,554,288 2,063,328 Water distribution 6,441,244 5,940,528 4,019,630 (1,745,759) (3,002,506) (475,385) (190,141) 1,119,709 (1,540,057) 2,170,034 General plant 519,606 (90,755) 211,085 (666,658) 1,652,826 1,329,888 (127,556) (110,542) 309,197 424,392 Total 9,450,341 8,046,538 6,842,762 (296,712) 4,443,072 7,465,120 2,770,683 1,336,999 1,323,428 4,657,753 Change in Construction work in progress (2,933,360) 3,026,378 (2,128,012) 1,148,189 (2,585,103) 3,233,058 4,288,793 (1,825,255) (137,766) (1,563,547) Change in Total Capital Assets $ 6,516,981 $ 11,072,916 $ 4,714,750 $ 851,477 $ 1,857,969 $ 10,698,178 $ 7,059,475 $ (488,256) $ 1,185,662 $ 3,094,206 Capital Expenditures from Cash Flow Statements 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Electric (7,787,320) (5,126,471) (2,684,787) (3,712,667) (3,754,601) (7,832,201) (7,397,001) (3,042,889) (3,086,341) (5,934,322) Water (6,762,873) (13,611,907) (8,292,286) (2,654,630) (2,553,607) (1,757,297) (4,212,526) (2,339,061) (4,334,811) (3,080,670) Total (14,550,193) (18,738,378) (10,977,073) (6,367,297) (6,308,208) (9,589,498) (11,609,527) (5,381,950) (7,421,152) (9,014,992) Page 98 Page 108 of 114 Truckee Donner Public Utility District Base, Heating and Cooling Degree Days Electricity Imports by Year Separated into estimated load components 75% 75 9/675% 74% 77% 74% 76% 0 L 7 100,000 O �cc u f6� QI Q1 i O 7 rp 50,000- C 22% 2I% 23? 20% 21"!' 21% 20% 18 a 3% 3% 3% 3% 4% 6% 5% 3 9 5 0 2016 2017 2018 2019 2020 2021 2022 2023 2024 ■ Cooling Loads ■ Heating Loads■ Base Loads Degree Days Below history plot of all days last five years, provides the basis for degree day estimated balance point of 52 degrees. Weather Sensitivity in TDPUD Loads Analyzing System Balance Point(Data spans 2016-YTD 2025) 700 lot 14 600 j� .; Yr� ♦ + Balance Point=52 Deg r E ••' 1s'i jk _. Ln fu • • . fir• �:�, :• ?.,• ••, •�+. '" '�• ,�'i�i 400 ' e;��r ♦ V f• Qj T 0 300 0 20 40 60 Mean Daily Drybulb Temp [F] Page 199 Page 109 of 114 TRUCKEE DONNER Public Utilit District • . • . • It r F ;,� � � -mot`-'='► "�`;k, 9 � � � , t, i; TRUCKEE DONNER Public Utility District PUBLIC UTILITY DISTRICT STs 11.7 1.. - � N it F"A.,F (R,G k \0 4� r AGENDA ITEM #6 Public Utility District m MEETING DATE: June 4, 2025 TO: Board of Directors FROM: Martina Rochefort, District Clerk/Executive Assistant SUBJECT: Consider Approval of Meeting Minutes APPROVED BY: Brian C. Wright, General Manager RECOMMENDATION: Approval of Finance Corporation Meeting Minutes of January 15, 2025 BACKGROUND: ANALYSIS AND BODY: GOALS AND OBJECTIVES: District Code 1 .05.020 Objectives: 1. Responsibly serve the public. 6. Manage the District in an effective, efficient and fiscally responsible manner. FISCAL IMPACT: There is no fiscal impact associated with this item. ATTACHMENTS: 1. 2025-01-15 Finance Corporation Minutes DRAFT Page 1 of 1 Page 112 of 114 TRUCKEE DONNER PUBLIC UTILITY DISTRICT FINANCE CORPORATION BOARD MEETING MINUTES TDPUD BOARD ROOM, 11570 DONNER PASS ROAD, TRUCKEE, CA 6:00 PM, WEDNESDAY, JANUARY 15, 2024 1. Call to Order Meeting was called to order at 6:56 pm. 2. Roll Call Directors Present: Finn, Laliotis, Murrell, and President Bender Directors Absent: Randall Employees Present: Brian Wright, Mike Salmon, Chad Reed, Jared Carpenter, Jillian Steward, Steven Poncelet, Steven Gross, Neil Kaufman, Scott Crow, Xander Thomassian, Allison McEneaney, Sarah Kraker 3. Changes to the agenda No changes were made to the agenda. 4. Public Comment No public comment was received. ACTION ITEMS 5. Elect a President and a Vice President who are serving on the Truckee Donner Public Utility District as officers for the TDPUD Finance Corporation Brian Wright, General Manager, summarized the item. There were no public comments. President Bender nominated Christa Finn as President and Director Laliotis as Vice President of the TDPUD Finance Corporation. ACTION: President Bender moved to select Vice President Finn as President and Director Laliotis as Vice President of the TDPUD Finance Corporation for the next twelve (12) months, seconded by Director Laliotis. The motion passed (4-0, Absent: Randall) by roll call vote. ADJOURNMENT Meeting adjourned at 7:00 p.m. 1 Page 113 of 114 Truckee Donner Public Utility District January 15, 2025 Finance Corporation FINANCE CORPORATION BOARD TRUCKEE DONNER PUBLIC UTILITY DISTRICT Christa Finn, President Respectfully Submitted, Brian Wright, General Manager 2 Page 114 of 114