Agency: Natural Resources

Line Item: Water Resources Conservation and Development Fund

Function

The Conservation and Development (C & D) Fund generally helps sponsors finance multipurpose dams and large water systems. Funding is secured by purchase agreements between the Board and sponsors or by board purchase of general obligation or revenue bonds. Interest rates vary from 0 percent to 7 percent depending on ability to pay.

Statutory Authority

Established in UCA 73-10-24, the C & D Fund was created in 1978 when the federal government sharply reduced its funding of western water projects.

Funding Detail

Funding comes to the account from:

• Appropriations made by the Legislature. Approximately $1,000,000 in General Funds has been appropriated annually in the past.
• Designated sales tax revenue (Sales Tax Distribution Chart). UCA 59-12-103(4) earmarks $17,500,000 from a 1/16 percent sales tax for water projects. The Conservation and Development Fund receives 41 percent, or $7,175,000. UCA 59-12-103(5) earmarks the remainder of the 1/16 percent sales tax above $17,500,000 for water projects.
• Repayments with interest.
• Interest from investments with the State Treasurer.

Some of the money from this fund is transferred out to other programs in Water Resources, including $3,800,000 to the Construction Fund for dam safety grants. The base appropriation typically is $1,043,200 General Funds.