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-Editorial
The Imperial Irrigation District (IID) Board of Directors approved its biennial budget for 2025 and 2026 during a meeting on November 5. This budget, which covers the Power, Water, and Support Services departments, was finalized following extensive public workshops held in El Centro.
The biennial budget outlined a comprehensive financial and staffing plan to ensure the operational efficiency of the Power and Water departments, supported by a structured capital investment strategy. The budget includes $812,974,300 in operating and capital expenses for the Power Department in 2025, increasing to $899,162,700 in 2026. For the Water Department, expenditures were set at $320,276,200 in 2025 and $342,225,100 in 2026. This plan, valued at approximately $1.1 billion in 2025 and nearly $1.2 billion in 2026, represents a 2% increase over the amended budget for 2024 and a 10% increase between the two proposed years.
The approved budget maintains IID’s commitment to stable employment, with a projected workforce of 1,448 positions in 2025 and a slight increase to 1,450 positions in 2026. New staffing includes positions in Public Affairs and Water Administration in 2025 and additional Water Engineering roles in 2026 to support expanding water management needs. The budget aims to enhance operational efficiency across departments while addressing local workforce demands.
Support Services were also included in the biennial budget, with planned capital investments of $31 million in 2025 and $19 million in 2026. These investments are part of IID’s efforts to modernize its infrastructure, including essential facility upgrades, software improvements, and maintenance of a robust vehicle fleet. Notably, this budget includes new borrowing plans to finance these Support Services projects, reflecting IID’s strategic focus on sustaining critical support functions across departments.
The Power Department represents the bulk of IID’s budget, with significant allocations toward maintaining and expanding electricity generation and transmission capacities. For 2025, the budget includes a 14% decrease in capital spending from 2024, attributed to the completion of several major infrastructure projects. However, in 2026, capital expenses for the Power Department are expected to rise by 25% to support new generation and transmission initiatives.
Fuel and purchased power costs are projected to grow, with a 2% increase in 2025 and a more substantial 9% rise in 2026. Additionally, IID has incorporated funds for public benefit programs aimed at enhancing energy efficiency and supporting community development, aligning with its mission to benefit the local populace.
For the Water Department, the budget reflects an 8% increase in operating and maintenance (O&M) costs over the previous year’s amended budget. Rising expenses for purchased services, materials, and essential utilities have been factored into this allocation. The budget also designates funds for water conservation initiatives, including investments in the Joint Powers Authority (JPA) and on-farm water-saving programs, underscoring IID’s focus on sustainability amid regional water scarcity concerns.
Capital expenses for the Water Department are projected to rise substantially, with a 59% increase in 2025 and a further 39% in 2026. These funds are earmarked for vital projects, including upgrades to the Imperial Dam, customer-specific water projects, and extensive system conservation improvements. These investments reflect IID’s ongoing commitment to improving water infrastructure resilience in the face of climate and resource challenges.
A notable aspect of the approved budget is the absence of rate increases for both Power and Water services. The budget achieves a balanced financial plan by utilizing reserves strategically, especially in the Water Department, where funds from water transfer reserves are planned to offset expenditures. The Power Department is projected to maintain a balanced budget across both years with sufficient unrestricted cash on hand, with 147 days of operating cash projected.
To support ongoing capital improvements, IID approved new borrowing for both the Support Services and Power departments. These borrowings amount to $18 million for Power capital projects in 2025, rising to $23 million in 2026. Support Services capital projects will be financed through $31 million in new borrowings in 2025 and $19 million in 2026, as outlined in Section E of the proposed budget.
The board expressed confidence in the fiscal plan’s ability to sustain IID’s core mission while addressing pressing infrastructure needs. Board members highlighted the district’s responsibility to balance service quality with fiscal prudence, acknowledging the unique challenges faced by both the Power and Water departments in adapting to evolving regional demands.
