Task force urges funding for 2 major water projects

The state should fund the last two great water projects foreseen in Utah, with the understanding that costs will eventually be repaid by the water users, according to a preliminary recommendation by a state task force.

The projects are the Lake Powell Pipeline to St. George with possibly a spur to the Cedar City area, and the long-planned Bear River Project, which will bring water from the Utah-Idaho border to Willard Bay for storage and use by communities in Weber, Davis and Salt Lake counties. It likely will require the construction of a reservoir, although its exact location has not been determined.

An exception to repayment by local water users could be for features that benefit all Utahns, such as recreation facilities and flood control, according to discussion Wednesday by members of the Water Delivery Financing Task Force.

The group was formed by then-Gov. Olene Walker in November 2004. At the time, members were told to report recommendations to the governor by July 2005, but the deadline slipped.

On Wednesday, task force members met in the East Building, Utah Capitol Complex, to talk about the fifth draft of their recommendations. While this may be their last formal gathering, the draft will go through refinements by e-mail and other discussions before it's forwarded to legislative groups in September.

The latest permutation, which may be changed before a final draft is submitted, makes these recommendations:

• Preliminary planning and engineering of projects should begin soon.

• While coordinating with water districts, the state should assume sponsorship of the projects. It should provided long-term construction financing through bonding or appropriations.

The money "should eventually be repaid to the state with interest by the users of the water," said Utah Treasurer Ed Alter, chairman of the task force. The loans would have flexible terms. Alter explained, for example, that the state might repay its debts in 20 years while water districts might take 30 or 40 years.

• Site and right-of-way acquisition should start while costs are relatively low and land is still available. One task force member said land could double in price quickly.

• The cap on sales tax revenues allocated to water development, currently at one-sixteenth of a cent, should be removed.

• An additional allocation should be given to the Utah Division of Water Resources of surplus each year after statutory requirements and Rainy Day funding are satisfied. Task force members discussed making this 25 percent of the surplus.