The Department of Natural Resources, in conjunction with LRB Public Finance Advisors, has issued its report to the Legislature. The study looked at how other western states handle water development funding. and found that Utah is not alone in how it funds water operations and infrastructure. The study notes several benefits of using property tax revenue for water development, including stability in revenue collections, lower costs of developing and delivering water, and increased public confidence.
The study's conclusions are summarized as follows:
This report concludes that Utah’s water purveyors utilize commonly used best practices to
deliver affordable water and have dependable revenues. Utahns enjoy some of the lowest
costs of water in the Comparable States. To change how water is funded would require
thoughtful implementation as to not threaten the stable financial operations established by
Utah’s water industry. Managing risk in revenue collections is a real consideration in
establishing rates. Increasing water conservation measures will prepare the State for
tomorrow’s needs.
Balancing water conservation and revenue streams is a delicate matter that will require
constant attention. Tiered rates economically motivate water conservation. Securing stable
revenue streams through base rates and property taxes helps lower the costs of water.
Seeking this balance to maintain reliable revenues and encourage water conservation.
Coupled with continued secondary water management to increase water conservation are
effective efforts to maintain a resilient water supply for Utah today and into the future
The study's ultimate recommendation was "To balance water conservation and revenues, continue to utilize property taxes and base
rates and implement a more aggressive tiered rate."
To read the full report, click here.
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