Cliff Buchan
News Editor

Like home and business owners, those in charge of the checkbook at ISD 831 are bracing for big increases in energy costs this winter.

But school district officials are not panicking, said Larry Martini, director of business affairs. While the cost of natural gas, diesel fuel and electricity are expected to dramatically increase, the hit on Forest Lakeís budget wonít be as extreme as it could have been, Martini said.

Still, he said, the district is bracing for a $500,000 budget swing because of the anticipated greater costs for energy to heat and light buildings and run district vehicles, including the bus fleet.

ìWe anticipate that energy costs for the school district is a $500,000 issue,î he said.

The added costs will be on top of the estimated $300,000 the district will spend for diesel fuel, $500,000 for natural gas and $600,000 for electricity in this school year.

Proactive steps

Martini said proactive steps by the school district will go far in softening the blow of the growing costs of energy.

A big factor, he said, was the districtís ability to plan for conservation efforts that will save energy costs.

The district has invested just under $300,000 in a lighting retrofitting plan that has replaced old light fixtures that were inefficient. All district buildings were upgrades and the cost savings of the more efficient light fixtures is $70,000 a year.

Without that improvement, Martini said he shudders to think about the impact the higher energy costs would have on the budget for this year.

Along with the change out of antiquated light fixtures, the district continues to stress conservation education for employees.

Simple things like shutting off lights when not in a room, not using air-conditioning at all times and turning thermostats down a notch or two will all help in the long run, he said.

ìThose are the biggest things that we can do,î Martini said. ìWe can do even more of that.î

Along with conservation, price hedging is also of big help, Martini said.

Under a statewide agreement, the district is able to purchase natural gas by committing to purchase specific quantities. This enables the district to buy natural gas at summer rates for later consumption.

By locking in a summer rate, the district is saving money. After getting hit hard by unexpected energy price hikes in 2001, Martini said the district was quick to embrace the price hedging strategy three years ago.

ìIt was critical after coming off 2001,î Martini said.

Although such steps have been taken to meet the challenge at hand, the ever rising cost for fuel and lights remains disconcerting, he said. ìIt is a concern,î he said of the growing cost of energy.

Because of conservation measures, Martini said officials here are not in a state of panic over the projected increases. The $500,000 projected drain on the budget is difficult, Martini said, but not as bad as what some school districts must experience.

In Forest Lake, the general fund reserve will likely be tapped to cover the budget overages the district is now expecting, Martini said.

Martini will further explain the budget implication to the school board in November when more information is available.

For now, Martini said, ISD 831 officials say their biggest hope is that there are no future interruptions of fuel supply.

With the Gulf of Mexico hurricanes causing problems for refineries, the ripple effect has meant short supplies and higher costs in the Northern Plains, Martini said.

If supplies of fuel continue to flow on schedule, the problem should be manageable here, he said.

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Forest Lake Times
P.O. Box 218
880 SW 15 St.
Forest Lake, MN 55025
651-464-4601
Fax 651-464-4605