IID eyes $11.9 million in budget cutbacks
EL CENTRO — The Imperial Irrigation District is looking into ways to shave $11.9 million from its 2020 budget to make up for the increased expenditures caused by COVID-19.
IID Chief Financial Officer Belen Valenzuela on Tuesday outlined the ways the district can offset the losses through project deferrals and salary reductions for positions that are currently vacant.
The $11.9 million negative cash flow is the result of $9.7 million in delinquencies in utility bill payments and the unplanned expenditures. These are $1.27 million for the energy department, $280,000 for the water department and $619,000 for support services.
The IID Board of Directors at its June 16 meeting will decide whether to take the district’s suggestions as part of an $11 million budget adjustment.
Cuts would include decreases of $4.2 million for capital expenditures for energy, $1.9 million for water expenditures, $128,000 for support operations and maintenance, and $595,000 in the travel and training budget. Another $2 million in salary reductions for positions not currently filled is included in the $11 million.
The travel and training reduction amounts are broken down by departments with energy taking the biggest hit at $450,000. Travel and training for the water department had a reduction of $100,000, while finance cancellations would be $30,000. Human Resources would lose $15,000 for travel and training.
IID Board President Norma Sierra Galindo wanted to know if there would be any reductions of current employees. General Manager Henry Martinez those being considered are idle positions.
She also verified that if the IID needed to hire people the district could still do so. Martinez told her the reduction would not be a hiring freeze.
“We took the easy step now,” he said. “The harder one will be the next phase when we start looking deeper on what we need.”
One position that was cut came from the legal department, the board was told.
Project deferrals to cover the COVID-19 expenses for the energy department included line upgrades, the Northgate substation and various Coachella Valley system upgrades totaled $6.57 million, while the water project deferrals of $2.6 million included the Sumac Pump System and the Westside Main Canal liner.
IID Director Alex Cardenas wanted to be assured that those contractors, where negotiations had been completed, would not be affected. Martinez said they would not be.
The potential project deferrals to cover support services were building upgrades and facilities operations, and maintenance and information technology projects totaling $2.52 million.