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% to 7% depending on ability to pay.
During the 2015 General Session, the Legislature appropriated for Fiscal Year 2016, $0 from all sources for Water Resources Conservation and Development Fund. This is a 0 percent change from Fiscal Year 2015 revised estimated amounts from all sources.
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 to this account comes from:
- Appropriations made from the General Fund;
- Designated sales tax revenue (Sales Tax Distribution Chart);
- Repayments with interest; and,
- Interest from investments with the State Treasurer.
UCA 59-12-103(4) earmarks $17,500,000 from a 1/16% sales tax for water projects. The Conservation and Development Fund receives 41%, or $7,175,000. UCA 59-12-103(5) earmarks the remainder of the 1/16% sales tax above $17,500,000 for water projects, specifically preconstruction costs of the Lake Powell Pipeline and Bear River Development projects.
Some of the money from this fund is transferred to other programs in Water Resources, including $3,800,000 to the Construction Fund for dam safety grants. Until 2008, the Legislature provided an ongoing appropriation of $1,043,200 from the General Fund, but this funding was eliminated as a result of budget reductions.
COBI contains unaudited data as presented to the Legislature by state agencies at the time of publication. For audited financial data see the State of Utah's Comprehensive Annual Financial Reports.