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SCID unveils budget for 2002
By Eric Dolson

Squaw Creek Irrigation District will mine topsoil and sand as the new "Watson II" reservoir is built.

SCID hopes to use a portion of the proceeds to pay off legal bills of $119,000 accrued fighting the Cyrus family over water rights.

SCID received conditional approval from Deschutes County to build the new reservoir and sell the material, according to SCID General Manager Marc Thalacker.

Thalacker was addressing membership at the SCID annual meeting on Tuesday, January 15, where he presented the 2002 SCID budgets.

SCID maintains three budgets: an operating budget, the capital reserves budget, and the reimbursements budget.

The operating budget listed income of $144,500 versus expenses of $160,775, for a deficit of $16,274.

Operating revenue comes from water delivery, as well as account and service fees. Major operating expenses include salaries, taxes, costs associated with water delivery and office expenses.

The capital reserves budget for 2002 lists income of $200,000, and expenses of $179,320, for a surplus of $20,680. Income includes sale of material from building the Watson II reservoir.

Capital expenses will include the $119,000 in legal expenses accrued from fighting the Cyruses, as well as $20,000 for equipment purchases, and $15,000 for cleaning irrigation ponds.

The reimbursement budget for 2002 has an income of $295,684. About $275,000 comes from a grant for the Fryrear pipeline.

Reimbursement budget expenses total $291,884, with $275,000 scheduled to be spent on the Fryrear pipeline.

The district is waiting to hear the judge's decision in the court fight with the Cyrus family over whether SCID "converted" or took Cyrus water for others' use when SCID refused to deliver water during a dispute over fees in the 1990s.

If the judge rules in favor of the Cyruses, SCID will have to pay Cyrus legal fees, believed to be more than $125,000 at this point.

If the judge rules in favor of SCID, the case will be over, pending any appeal filed by either party.

The board also decided to establish a letter of credit if additional revenues are needed. According to board member and Secretary/Treasurer David Keith, this option was selected because interest rates are so low -- and the money may not be needed if there is adequate snow pack.

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