NID Board seeks cuts of $2.4 million from next year's budget
Font size:
Dave Carter
Responding to reduced revenues and current economic conditions, the Nevada Irrigation District Board of Directors on Wednesday (Nov. 18) authorized staff to prepare a 2010 budget that includes significant reductions.
Board members indicated the district would cut $2.4 million from its Water Division budget, in large part by delaying several studies and water projects; and that 13.5 vacant employment positions would remain unfilled, saving another $1 million.
The board also approved a 2009/10 employment agreement that carries no cost of living wage increases for the district’s work force.
The spending reductions are seen as a way to lessen the need for water rate increases. Directors indicated some support for an average 2010 water rate increase of 2.65 percent, which is half of the level approved earlier this year.
Last February, the board approved a five-year plan that includes average 5.4 percent annual rate increases.
The smaller increases would amount to about 75 cents monthly for a typical treated water user. An irrigation water customer using 1 miner’s inch of water would see an increase of about $10 for the entire six-month irrigation season.
Studies have shown that rates currently paid by treated water customers and irrigation water customers do not cover NID’s costs in providing water service. In recent years, the district has supplemented rates with property tax revenues and reserve funds.
Board members agreed that rate increases can be difficult for customers in a tough economic climate but noted the the district must keep up with increasing costs in providing safe and reliable water service.
Compounding the problem are lagging water sales revenues this year, brought on by cooler summer temperatures and less water use by treated water customers, all of whom are metered. As of Sept. 30, total sales were at about 79 percent of recent totals.
NID Finance Manager Marie Owens said next year’s water sales are estimated at about $15 million and that, even with the spending reductions, NID will need to withdraw $5 million in reserve funds to balance the Water Division budget.
Owens was authorized to prepare a 2010 Water Division operating budget of $22.08 million, which, including a three percent contingency, is down 12.25 percent from this year. Directors will consider the 2010 budget at their next meeting on Dec. 9.
“It’s been a tough process,” said NID General Manager Ron Nelson, regarding the budget reductions. “We’re doing our best to keep the district moving forward, while recognizing the economic realities out there.”
Add to:
del.icio.us |
Digg
del.icio.us |
Digg
Email to a friend
Print version
Plain text