OCR Text |
Show SUMMARY OF FINDINGS Because the purpose of this analysis was to examine the impact to rates of phasing out ad valorem taxes, and because it is assumed that irrigation water rates can not be altered, the financial impact of phasing out ad valorem taxes is assumed to be entirely absorbed by the petitioners of M& I project water ( and ultimately their consumers) through rate increases. It is recognized that this assumption will result in a financial impact that is concentrated on M& I water users in Salt Lake County and, to a lesser extent, Utah County. All rate impacts are expressed in nominal dollars. Figure ES- 11 shows the rate impact to M& I customers of CUWCD. At present, the impacted agencies are SLCWCD, MWDSLC, and the City of Qrem. Figure ES- 11 Rate Impact to CUWCD M& I Customers Arising From Phase- Out of Ad Valorem Taxes 400 2009 2010 2011 2012 2013 2014 YEAR 2015 2016 2017 2018 5- YEAR PHASE- OUT 10- YEAR PHASE- OUT Figure ES- 12 shows the rate impact to wholesale customers of SLCWCD and MWDSLC. These customers would feel the effect of the phase out of not only SLCWCD and MWDSLC's ad valorem tax collections, but also the phase out of collections from CUWCD since CUWCD supplies both SLCWCD and MWDSLC. The rate impacts to the wholesale customers of these two agencies are similar. The rate impacts would be lower than those felt by CUWCD customers because it is assumed that the increased cost from CUWCD purchases will be spread evenly across all of SLCWCD and MWDSLC's customers and will be dampened by smaller cost increases in other current water sources. ES- 35 Executive Summary |