Salt Lake City Task Force Recommends Sources for Water Funds

Oct. 23, 2002
A state task force charged with recommending alternative funding sources for water development and treatment has whittled down the list.

Here are a few options you will not find on the list:

* A tax on toilets.

* A tax on soft drinks.

* A surcharge on water rights.

* A state-sponsored lottery.

The task force (composed of four lawmakers and three representatives from Gov. Mike Leavitt's Cabinet) nixed those alternatives outright.

Instead, when the task force meets again next month, it will consider a combination of the following taxes or surcharges on:

* Excessive water use during summer.

* Water and sewer bills.

* Boats and personal water-craft.

* Admissions to state water parks and golf courses.

* Waterfowl hunting and fishing licenses.

* Metered water sales.

* Statewide property tax for water development.

Revenue from the new taxes and surcharges will be used to pay for an estimated $5 billion in dams, pipelines, water treatment plants and sewage treatment plants needed during the next 20 years to meet the demands of Utah's ever-growing population.

The task force was established this summer after the governor tried to shift about $18.5 million from the state water development budget to education. That money comes from a 0.0625 percent sales tax.

In shifting the money to education the governor argued that taxpayers should not be subsidizing water projects. Leavitt also called for increased water conservation.

The Legislature, which traditionally has supported large water development projects, compromised by cutting $2 million in water subsidies and promising to find water funding alternatives to propose to the 2003 Legislature.

Erica Thoen, researcher for the environmental group Utah Rivers, said her organization would be watching the process carefully.

"We're still excited the governor is looking at this issue and applaud any effort to remove subsidies for water," Thoen said.

Environmentalists believe the task force should focus its efforts on revenue sources, such as water-use taxes, that encourage conservation. Property taxes, they argue, do not encourage conservation.

While hopeful that the task force will find good alternatives to the sales tax, Thoen and some local water managers expressed concern that lawmakers are not taking Leavitt's conservation message to heart.

"It would be helpful if the Legislature could provide a little more leadership in this area," said David Ovard, manager of the Jordan Valley Water Conservancy District, Utah's largest water wholesale agency.

Ovard figured the state could save $1 billion over the next few decades if Leavitt's 25 percent conservation goal is realized.

Chaired by Rep. David Ure, R-Kamas, the task force will reconvene Nov. 15 to review the fiscal implications of proposals for alternative funding sources for water.

Source: Salt Lake Tribune

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