Scheduled on the agenda for Tuesday’s Turlock Irrigation District Board of Directors meeting is a presentation of the proposed 2015 budget by TID General Manager Casey Hashimoto.
Within the TID budget, electrical and water operating revenues for 2015 are slightly higher; in 2014, $52 million net cash was available, in 2014 just $48 million will be available.
TID states that growth remains relatively flat due to the unpredictability in the wholesale market.
Challenges posed to TID, in terms of power supply, include: volatility in the forward market price, hydro conditions/river requirements, output uncertainty and regulatory issues for the Tuolumne Wind Project, and an evolving environmental frontier for renewable resources and greenhouse gas.
Major contributors to the overall proposed budget for Operations and Maintenance (O&M) include service reliability, power plant overhauls, contractual wage increases and the CIS Replacement Project.
It is noted, however, that the District will hold its current number of full time employees, 454, in 2015.
The O&M budget, according to the plan, will increase by 2 percent in comparison to the 2014 plan for the General Manager’s Administration. The District notes, however, that the proposed Capital budget indicates $2.2 million allocated for the Don Pedro Relicensing and $989,000 for the La Grange Licensing, listing them as major 2015 expenses.
It is anticipated that labor costs will increase by approximately 10 percent in 2015, insurance expenses by $64,000 and audit fees by $10,000.
The CIS Replacement Project is estimated at $1 million. Other large expenditures in the FSA capital budget show $718,000 allocated for the network infrastructure and $250,000 for PC/Work Stations. O&M costs are projected at $13.4 million; in 2014, the costs were $12.6 million.
The proposed budget for the Financial Services Administration was reviewed by Joe Malaski, Assistant General Manager of Financial Services and CFO of TID.
On Tuesday, the Board will hear budget presentation, but will not be voting to approve the budget at this time.