Budget & Rate Information
Padre Dam understands rates are important to our customers and we remain prudent when preparing our budget and rates. Padre Dam’s Board, management and staff have created a work environment that clearly establishes the accountability of management and labor to each other, and to our customers. The result is a continuous focus on reducing costs that has saved customers millions of dollars.
Padre Dam works hard each year to find additional ways to cut costs. Read more about what
Padre Dam has already done to reduce costs
Deficit Elimination Plan
Padre Dam’s Board of Directors adopted a Deficit Elimination Plan in July 2011 in response to a 34% loss in water sales compared to budget and a projected $3.5 million net loss for retail water this fiscal year. The projected loss would deplete the retail water fund balance and so required quick and decisive action. The primary factors behind the loss in water sales include extraordinary conservation and the economic recession. The Plan calls for spending reductions over the next two fiscal years.
Components of the Deficit Elimination Plan:
$1.4 million achieved through a 19% workforce reduction (26 position layoffs / attrition)
$1.2 million in operating expense reductions
$12 million in capital improvement deferrals
$270,400 in capital equipment deferrals
The Deficit Elimination Plan will help Padre Dam move towards the “new normal”. Water sales are expected to remain low due to changed customer behavior and legislation requiring conservation. Padre Dam believes the Deficit Elimination Plan will help achieve financial stability for the District while remaining true to its values in providing quality service to customers. No critical services are being placed at risk.
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