1. The Property Tax and Water Finance in Utah

2. Figure 1 Water Use in Utah by Category during 1995 Total Withdrawls: 4,459 mgd or 5 million acre-feet

3. Practical Economics of Water About 75% of Utah’s water is used to irrigate crops Crop production is 0.4% of Utah’s GSP Utah uses 75% of its water to produce 0.4% of GSP Water will not be a binding constraint to economic growth during the next 50 years

4. Figure 2 Water Use in the Greater Wasatch Counties by Category during 1995

5. Figure 3 M&I Water Use (1995) and Rates (1990) Dollars per 1,000 Gallons

6. Economic Theory and Water Increasing returns Public goods Second best

7. Figure 4 Property Tax Revenue by Type of Government during 1999 Total Property Tax: $1.35 Billion

8. Figure 5 Flow Chart of Water Delivery in the Salt Lake Valley

9. Figure 6 Sources of Revenue in the Wholesale Water System during 1999 Total Revenue: $149 Million

10. Figure 7 Property Tax Revenue during 1999 in the Five Largest Wholesale Water Districts

11. Distribution of Revenue Sources during 1999 in the Five Largest Wholesale Water Districts

12. Figure 8 Distribution of Property Tax for Water between Wholesale and Retail Water Utilities during 1999 Total Property Tax for Water: $58 million

13. Figure 9 Sources of Revenue in the Retail Water System during 1999 Total Revenue: $241 million

14. Figure 10 Property Taxes per Customer in the Five Largest Retail Water Systems during 1999

15. Sources of Revenue for the Water System Total Revenue: $390 Million

16. Distribution of Revenue Sources for Water Systems in Utah and California during 1999

17. 7 Year Average of Charges as a Percent of Expenditures for Water Utilities in Western States 1993 to 1999

18. Charges as a Percent of Expenditures for Water Utilities in Utah from 1993 to 1999

19. Issues with Removing the Property Tax for Water Financial solvency of Central, Washington, Metro, and others Transitional funding for all water districts Increased debtservice cost and less ability to issue debt Legal exposure from tax covenant in revenue bonds