Agency: Natural Resources

Line Item: Water Resources Revolving Construction Fund

Function

The fund may pay for construction, engineering, investigation, and inspection of water projects to conserve the water resources of the state for the best interests of the citizens. This fund is used to build smaller projects for incorporated entities such as private irrigation and water companies. Project sponsors receiving financial assistance enter into installment purchase contracts with the board, deeding water rights and irrigation facilities as security.

Statutory Authority

Established in UCA 73-10-8, the Revolving Construction Fund was created by the 1947 Legislature to help finance projects the board determines will conserve the water resources of the state for the best interests of the citizens.

Funding Detail

Funding comes to the account from:

• Repayments.
• Revenue from the 500,000 acres of land selected for the establishment of reservoirs at the time of statehood.
• Charges assessed to water users.
• Interest from investments with the State Treasurer.
• Other appropriations made by the Legislature. The Division transfers in $3,800,000 annually from the Conservation and Development Fund for grants for state-mandated dam safety improvements.

This budget typically consists of $539,100 from the General Fund and a transfer of $3,800,000 from the Conservation and Development Fund. Monies already in a loan fund do not require an additional appropriation before they can be used. Therefore, unless the Legislature takes other action, the Appropriations Act will show General Fund and C&D financing only.