Creating an Oasis: A Brief Summary of Utah Foundation

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Creating an Oasis A Brief Summary of Utah
Foundations Reports on Water Development,
Pricing and Consumption in Utah
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Creating an Oasis Part One

• The History of Water Development in Utah

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Creating an Oasis Water Development in Utah

• The history of Utahs water develop is unique
  because
• The first in time, first in right doctrine of
  western water development was not strictly
  adhered to
• Water development was meant for the common good
• Water development was managed first by the LDS
  church and this created the precedent for future
  government management

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Creating an Oasis Water Development in Utah

• The period of 1870-1900 saw the growth in efforts
  to develop water for profit
• The 1880 act allowing holders of water rights to
  sell the land and water separate of each other
• The 1894 enabling act for the state of Utah
• The Utah constitution and article XVII

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Creating an Oasis Water Development in Utah

• Water development as a public endeavor
• The Reclamation Act of 1902
• Arid Land Reclamation Fund Commission
• Utah water legislation in 1903
• Metropolitan Water District Act and the Water
  Conservancy District Act
• Deer Creek Reservoir, the people and the Bureau
  of Reclamation

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Creating an Oasis Water Development in Utah

• Where we are today
• Our history has been one of government and public
  institution involvement from the beginning
• This attitude has reinforced the idea that water
  in Utah is a public good, one that all citizens
  must have access to, for as low a cost as
  possible
• It has also reinforced the use of property and
  sales tax funds within the general operating
  revenues of the water districts

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Creating an Oasis Water Development in Utah

• Property Taxes account for a significant portion
  of water districts revenue
• Financing for water development projects relies
  mainly on Revenue Bonds. Revenue Bonds are backed
  by water sales revenue only

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Creating an Oasis Water Development in Utah
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Creating an Oasis Water Development in Utah
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Creating an Oasis Water Development in Utah
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Creating an Oasis Part Two

• Water Consumption, Pricing and Conservation in
  Utah

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Creating an Oasis Water Consumption in Utah
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Creating an Oasis Water Consumption in Utah
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Creating an Oasis Elasticity of Consumption and
Population Growth in Utah
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Creating an Oasis Concerns About Consumption and
Pricing

• Governors Council of Economic Advisors
• Utah currently has high per capita water use and
  low water rates
• Based on present demand and pricing practices,
  population and economic growth will continue to
  put pressure on the states water supply
• The most accessible and least costly sources of
  water have already been developed
• Federal funds for new water development are
  dwindling will continue to decline, if not
  disappear
• Future water development will almost assuredly be
  funded from state and local revenue sources

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Creating an Oasis Water Pricing in Utah
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Creating an Oasis Water Funding Sources
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Creating an Oasis Property Tax Revenue

• Utah is unique in the West, as property tax
  revenue to water districts go into the general
  operating funds of the districts
• In other states, if a property tax is levied, it
  is reserved for development purposes
• California and Denver, Colorado

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Creating an Oasis

• Conclusion

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Creating an Oasis

• Utah water development has a unique history
• Because of that history, water is paid for from a
  variety of sources, including billing and
  property taxes
• Water prices in Utah are some of the lowest in
  the West and Utah is the second highest per
  capita consumer
• Water prices are moderately inelastic, if quality
  is not an issue, then consumers do not usually
  respond to price increases in the short run
• If pricing was successful in causing consumers to
  conserve water, residential water accounts for
  only 7.8 percent of the total water used in the
  state, and could only have a nominal effect on
  overall water use