Davis County leaders are concerned there won't be enough water for the county's booming population.

In a legislative audit of the Davis and Weber Counties Canal Company released this week, county leaders expressed their fears that the water supply won't keep up with the demand.

Their concerns are unwarranted, said Ivan Ray, D&W general manager.

"There should be no worry," Ray said. "We have enough water."

But auditors did recommend the company change its accounting practices and charge more for hooking up new users.

Legislators asked the Office of the Legislative Auditor General to investigate the company after several Davis County cities who purchase water from the company complained about management practices and alleged mismanagement of state funds. The audit found no illegal activity.

Attempts to reach city leaders were unsuccessful Thursday.

The audit found D&W has undercharged cities for water hook-up services for years, causing a shortage in revenue to pay to build infrastructure. Ray said original contracts with the cities, some signed as early as 1990, called for a $200 fee per hookup.

That figure is too low, the audit found. Auditors recommended cities pay $245 per hookup. The water company collected $2 million in user fees last year, and expenses exceeded revenue by nearly $400,000, the audit states.

Ray said he has asked the cities to agree to pay more for years now, but they haven't budged.

"It was difficult approaching the cities to have them come into an agreement," Ray said. "Second-driest state in the nation, and people don't feel like they should pay more for water."

Until the county population builds up, D&W won't make much profit, Ray said. For now, it is building the infrastructure to prepare for growth.

D&W provides canal irrigation water to several Davis County communities and secondary water to approximately 10,000 residences in Clinton, West Point, Kaysville and Layton, Ray said.

Auditors recommended that D&W change its accounting system from cash to accrual accounting. Other recommendations included keeping various company funds separate to provide a clear picture of the company's financial status.

D&W Company coffers took a big hit after a 1999 canal break in Riverdale damaged 60 homes. D&W spent nearly $500,000 to Weber Basin Water Conservancy District to provide irrigation water, $2 million to repair the broken hillside and $4 million to upgrade the failed canal.

The company also coughed up $5.3 million to settle an $8.3 million lawsuit filed by Riverdale homeowners. D&W's insurance paid for $3 million of the settlement.

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E-mail: ldethman@desnews.com