HomeMy WebLinkAbout14 Donner Lake Water System Agenda Item # J
Public Utility District]
Memorandum
To: Board of Dirctors
From: Peter Holzmeister
Date: April 26, 2002
Subject: Temporary internal loan to finance Donner Lake water system
We have just about completed the audit for the 2001 finance statements. The auditors
recognized the fact that during 2001 as we reconstructed the Donner Lake water system
we used local funds on a temporary basis. We have reported this to the Board on a
couple of occasions. The result is that on December 31, 2001, the official date of the
audit, the water General Fund had incurred a loan in the amount of$999,516.8. Since
December 31, 2001 this loan has, for the most part, been repaid, because we have
received funds related to Donner Lake. But as of December 32, that was the loan
balance.
To satisfy the auditors, it is recommended that the District formally recognize the loan
and disclose it on our books. That is the purpose of the attached resolution.
RECOMMENDATION: I recommend that the Board adopt the Resolution Ratifying the
Temporary Use of District Funds to Finance Donner lake Water System Expenditures
r
KEE DONNER
UPublic Utility District
Resolution No. 2002-96
RATIFYING THE TEMPORARY USE OF DISTRICT FUNDS TO FINANCE DONNER
LAKE WATER SYSTEM EXPENDITURES
WHEREAS the District acquired the Donner Lake water system and began to reconstruct it during 2001;
and
WHEREAS the seriously deteriorated condition of the water system necessitated that work begin
immediately on system reconstruction, and
WHEREAS the District did not have time to arrange for complete financing of the work that was performed
on the Donner Lake system prior to work commencing and the District therefore borrowed available cash
on a temporary basis from its General Fund and various restricted funds; and
WHEREAS the District wishes to formally recognize and ratify the loan of funds from the General Fund
and restricted funds and to have that loan reflected in its annual audit report;
NOW, THEREFORE, BE IT RESOLVED that the Board of Directors adopts the above recitals as its findings,
and
Be it further resolved that the Board authorizes a loan in the amount of$560,627 from the Electric Building
Fund to the Electric General Fund and in the amount of$999,516.81 from the Electric General Fund to the
Water General Fund. These two loans will pay the LAIF interest rate on the amounts borrowed for the periods
that the temporary loans exist; and
Be it further resolved that all excess funds including loan proceeds will be used to pay these temporary
loans off; and
Be it further resolved that staff will report to the Board each month in the Treasurer's Report the status of
the loans until such temporary loans are paid in full.
PASSED AND ADOPTED by the Board of Directors at a meeting duly called and held with the District on the
3rd day of April, 2002 by the following roll call vote:
AYES:
NOES:
ABSENT:
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
By
Nelson Van Gundy, President
ATTEST:
Peter L. Holzmeister, District Clerk