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⚠️ Este contenido ha sido traducido automáticamente. El texto original en inglés es la versión oficial. La traducción puede contener errores.
Findings and Recommendations 12 findings
F1
There has been a significant turnover in the NID management team over the past four years.
No recommendations for this finding
F2
The general manager, assistant general manager, finance manager and chief engineer have replaced long-term predecessors who have retired.
No recommendations for this finding
F3
There is a new human resources manager and a new maintenance manager.
No recommendations for this finding
F4
The new NID management team members bring with them relevant prior experience and expertise.
Related Recommendations (1)
R1
NID Board of Directors should take full advantage of the expertise and experience of the NID management team.
F5
The 2007-2009 budget was well presented to the public.
No recommendations for this finding
F6
The Jury observed a pattern of lack of sensitivity to public and other director comment on the part of one board member. Conclusions
Related Recommendations (1)
R2
NID Board of Directors should take steps to assure that all of its members demonstrate sensitivity towards and respect for each other and for members of the public appearing before them. 3 | P ag e Funding of Capital Improvements: Up to now, use long-term debt has been effective, but future caution is warranted.
F7
A reduced water supply will reduce NID’s revenue generated from hydroelectric operations, as well as the amount of water available for sale. Conclusions
No recommendations for this finding
F8
The property to receive a TSL must be capable of connecting to an existing water main and be located where NID facilities will logically require a mainline fronting the property in the future. 7 | P ag e
No recommendations for this finding
F9
NID, through the Placer County Water Agency and the City of Lincoln, currently causes treated water to be delivered to approximately 3500 homes in a portion of the City of Lincoln lying within the NID exterior boundaries.
No recommendations for this finding
F10
NID has approved a Memorandum of Understanding covering the feasibility, planning and eventual construction of a water treatment plant near Lincoln to supply NID raw water which will be treated and sold to residents within the NID boundaries (10,000 to 20,000 homes estimated).
No recommendations for this finding
F11
The Lincoln water treatment plant, if constructed, would be paid for by Lincoln and NID (currently estimated at 80% Lincoln, and 20% NID), owned, and operated by NID.
No recommendations for this finding
F12
The NID Board approved absorbing the cost of the installation of a treated water line adjacent to the route of the pending Lower Cascade Canal/Banner Cascade Pipeline Project. Conclusions
No recommendations for this finding
Additional Recommendations 2
These recommendations are not explicitly linked to specific findings.
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R3The current Depreciation Reserve for equipment replacement and the Maintenance Reserve for unbudgeted emergency repairs should be replaced with a reserve for maintenance, repairs, and replacement of Water Division assets. Operating Deficits: Operating the Water Division at a loss, year after year, is unwise.
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R4The NID rate schedule should produce revenue sufficient to achieve a balanced budget for the Water Division without the need to use reserves to avoid a deficit.
Conclusions 41
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CL1 Page 3Turnover in NID management has provided NID with an opportunity to effect positive change of the organization.
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CL2 Page 3The New NID management team has demonstrated competence and the ability to work together as a team.
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CL3 Page 3One director undermines the stature of the Board of Directors showing lack of respect for public and other director input.
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CL4 Page 4The use of debt to finance capital improvements and the investment of surplus cash has been a successful strategy for generating revenue.
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CL5 Page 4Care needs to be shown regarding the timing and amount of future long-term debt incurred to support capital improvements.
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CL6 Page 4The increased use of debt to fund capital improvements (for example, the Lower Cascade Canal/Banner Cascade Pipeline Project, and the Lincoln Water Treatment Project) can be expected to significantly absorb property tax revenue to service such debt, impacting the revenue available for operations and maintenance. 4 | P ag e
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CL7 Page 5The maintenance of reserves by NID reflects prudent financial management.
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CL8 Page 5Except for the Depreciation Reserve (which covers the replacement of equipment costing more than $50,000), and the Rate Augmentation Fund (as modified retroactive to 5 | P ag e January 1, 2006), the NID Water Division has no reserve for maintenance, repairs or replacement.
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CL9 Page 6Some NID discretionary reserves would appear (by reason of their inactivity) to be no longer necessary; others like the Treated Water Capacity Reserve, would appear to be unnecessarily restrictive in their use.
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CL10 Page 6Continually operating the NID Water Division at a loss is not in the long-term best interest of NID or its customers. 6 | P ag e
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CL11 Page 7Relying on reserves to cover operating deficits in the Water Division is not financially prudent, especially in light of expected increased debt service charges.
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CL12 Page 8The growth of Nevada and Placer Counties reflects a change from agricultural prominence to increasing domestic need for treated water.
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CL13 Page 8In Western Nevada County, NID is the sole supplier of raw water.
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CL14 Page 8NID is the only viable source of treated water in unincorporated Western Nevada County for residents currently dependent on well or ditch water.
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CL15 Page 8The NID Board of Directors is commended for its adoption of the NID Strategic Plan 2005-2006 “Expansion of Water Service Area within NID,” as approved in principal on August 27, 2006; as well as its ongoing efforts to bring treated water to residential areas currently without treated water.
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CL16 Page 9NID’s increase in both treated and raw water rates over the past ten years has, at best, produced only nominal increases in revenue and has not been sufficient to cover projected Water Division operating deficits.
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CL17 Page 9To rely on the Rate Augmentation Fund to cover Water Division operating deficits will not support operations indefinitely.
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CL18 Page 9The current NID rate structure does not lend itself to easy use or public understanding.
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CL19 Page 9NID has consistently avoided raising rates sufficient to assure that the Water Division at least broke even financially.
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CL20 Page 9The current NID rate structure is inequitable with the treated water customers paying a disproportionate share of Water Division operating expenses.
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CL21 Page 9The current NID rate schedules do not generate income sufficient to produce a balanced budget for Water Division operations.
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CL22 Page 3Turnover in NID management has provided NID with an opportunity to effect positive change of the organization.
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CL23 Page 3The New NID management team has demonstrated competence and the ability to work together as a team.
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CL24 Page 3One director undermines the stature of the Board of Directors showing lack of respect for public and other director input.
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CL25 Page 4The use of debt to finance capital improvements and the investment of surplus cash has been a successful strategy for generating revenue.
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CL26 Page 4Care needs to be shown regarding the timing and amount of future long-term debt incurred to support capital improvements.
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CL27 Page 4The increased use of debt to fund capital improvements (for example, the Lower Cascade Canal/Banner Cascade Pipeline Project, and the Lincoln Water Treatment Project) can be expected to significantly absorb property tax revenue to service such debt, impacting the revenue available for operations and maintenance.
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CL28 Page 27The maintenance ofreserves by NID reflects prudent financial management.
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CL29 Page 5Except for the Depreciation Reserve (which covers the replacement of equipment costing more than $50,000), and the Rate Augmentation Fund (as modified retroactive to January 1, 2006), the NID Water Division has no reserve for maintenance, repairs or replacement.
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CL30 Page 6Some NID discretionary reserves would appear (by reason of their inactivity) to be no longer necessary; others like the Treated Water Capacity Reserve, would appear to be unnecessarily restrictive in their USe.
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CL31 Page 6Continually operating the NID Water Division at a loss is not in the long-term best interest of NID or its customers.
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CL32 Page 7Relying on reserves to cover operating deficits in the Water Division is not financially prudent, especially in light of expected increased debt service charges.
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CL33 Page 8The growth of Nevada and Placer Counties reflects a change from agricultural prominence to increasing domestic need for treated water.
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CL34 Page 30In Westem Nevada County, NID is the sole supplier of raw water.
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CL35 Page 8NID is the only viable source of treated water in unincorporated Westem Nevada County for residents currently dependent on well or ditch water.
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CL36 Page 8The NID Board of Directors is commended for its adoption of the NID Strategic Plan 2005-2006 "Expansion of Water Service Area within NID," as approved in principal on August 27, 2006; as well as its ongoing efforts to bring treated water to residential areas currently without treated water.
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CL37 Page 31NID's increase in both treated and raw water rates over the past ten years has, at best, produced only nominal increases in revenue and has not been sufficient to cover projected Water Division operating deficits.
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CL38 Page 9To rely on the Rate Augmentation Fund to cover Water Division operating deficits will not support operations indefinitely.
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CL39 Page 9NID has consistently avoided raising rates sufficient to assure that the Water Division at least broke even financially.
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CL40 Page 9The current NID rate structure is inequitable with the treated water customers paying a disproportionate share of Water Division operating expenses.
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CL41 Page 9The current NID rate schedules do not generate income sufficient to produce a balanced budget for Water Division operations. 8