After lawmakers received a letter from economists from several Utah universities, a Legislative committee tabled its discussion concerning whether to earmark 15 percent of Utah’s future sales tax revenue to fund water projects like the Lake Powell Pipeline.
Signed by economists from the University of Utah, Utah State, Southern Utah and the Utah State Tax Commission, the letter warns that water users could be hit with massive cost increases if Washington County fails to grow as much as officials hope. The economists estimate the local water district’s revenues would have to increase by 370 percent each year for the next 50 years in order to fund the project.
The Washington County Water Conservancy District generates only about $10 million in net annual revenues today, but is asking to borrow nearly $1 billion, the letter argues — something that the economists figure would require annual payments of $47 million. But the analysis fails to accurately represent the water district’s plan to pay for the project, argued water district officials. The Spectrum
