Creating an Oasis: Part One

1. Creating an Oasis: A Brief Summary of Utah Foundation’s Reports on Water Development, Pricing and Consumption in Utah

2. Creating an Oasis: Part One The History of Water Development in Utah

3. Creating an Oasis: Water Development in Utah • The history of Utah’s 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

4. 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

5. 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

6. 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

7. 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

8. Creating an Oasis: Water Development in Utah

9. Creating an Oasis: Water Development in Utah

10. Creating an Oasis: Water Development in Utah

11. Creating an Oasis Part Two Water Consumption, Pricing and Conservation in Utah

12. Creating an Oasis: Water Consumption in Utah

13. Creating an Oasis: Water Consumption in Utah

14. Creating an Oasis: Elasticity of Consumption and Population Growth in Utah

15. Creating an Oasis: Concerns About Consumption and Pricing • Governor’s 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 state’s 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

16. Creating an Oasis: Water Pricing in Utah

17. Creating an Oasis: Water Funding Sources

18. 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

19. Creating an Oasis Conclusion

20. 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