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Show Table 7. Revenue potential from irrigation water user fees { Weber County). Total Tax Rate Per Cost Per Company Stockholders Amount Cost per Acre Foot Revenue3 Stockholder Used ( acre foot) Acre Foot ( Dollar) ( Dollar) ( Dollar) Bambrough 24 1,356 1.56 0.54 366.12 15.25 Co- op Farm 7 2,262.6 2.12 0.74 837.16 119.59 Crooked Creek 7 270 0.14 0.05 6.75 0.96 Davis and Weber Co. Canal 1,700 65,143 1.20 0.42 13,680.03 8.05 Dinsdale Water 102 698.6 3.15 1.10 384.23 3.77 Davis Ditch Water 15 654.6 0.81 0.28 91.64 6.11 Eden 31 8,292 0.59 0.21 870.66 28.08 Evertsen 13 604.2 0.33 0.11 33.23 2.56 Felt, Peterson and Slater 9 952.6 0.46 0.16 76.21 8.47 Glen wood Ditch 78 388.88 0.77 0.27 52.50 0.67 Hooper 545 3,654 1.85 0.65 1,187.55 2.18 Huntsville 300 7,617 0.75 0.26 990.21 3.30 Huntsville So. Bench 25 883.8 6.50 2.27 1,003.11 40.12 Liberty 57 3,359.2 0.45 0.16 268.74 4.71 Marriot 63 2,312 0.57 0.20 231.20 3.67 Mound Fort No. 6 6 373 0.57 0.20 37.30 6.22 North Ogden Irr. 245 8,822.8 1.56 0.54 2,382.16 9.72 Old Wilson 47 926 0.41 0.14 64.82 1.38 Perry 30 1,507.8 0.62 0.22 165.86 5.53 Pioneer Irr. Canal 10 627 0.32 0.11 34.48 3.45 Riverdale Bench 60 2,285 0.90 0.31 354.17 5.90 Shupe & Middleton 16 325.37 0.94 0.33 53.69 3.35 South Weber 23 1,704 0.56 0.19 161.88 7.04 Uintah Central Canal 44 1,009 1.30 0.45 227.02 5.16 Warren 125 19,340 1.01 0.35 3,384.50 27.08 Weber Canal Water 115 242 8.80 3.08 372.68 3.24 Western 310 10,889 1.54 0.54 2,940.03 9.48 Wilson 250 15,642 1.73 0.60 4,692.60 18.77 Total Revenue = $ 34,950.53 * T. R. = fn-^ 3. e = 1 8fi 2p The cost of present diversions relate to distributing water costs for municipal and industrial use through existing facilities for transport. Operation and maintenance costs only are considered. The costs for groundwater include the cost of pumping and the cost required to boost to line pressue. The cost of new diversions include the costs of constructing and maintaining new facilities for transporting water to the point of use. Capital costs are included with the 0 and M costs. Cost of pumping and boosting to line pressure is included in the groundwater costs. In order to estimate the total revenue that can be raised by charging fees for industrial water use, it is necessary to establish appropriate values for price and elasticity of demand for Equation 3. Data drawn from King et al. ( 1972) indicate an average supply cost for water to industrial users of $ 23.80 per ac ft for present diversions and $ 42 per ac ft for new diversions ( Table 11). Using these costs as estimates of price ( p) and the arbitrarily selected values of e = 0.2, 0.5, and 0.8, as given in Table 12, Equation 3 assuming monopoly conditions yields corresponding fees of $ 119.00, $ 47.60, and $ 29.75 per ac ft for present diversions and $ 210.00, $ 84.00, and $ 52.50 per ac ft for new diversions, as indicated in Table 13. Assuming that neither the M and I distribution costs ( or prices) for both present diversions and new diversions nor the inelasticity of demand for water change, the additional revenues from future water use are shown in Tables 14 through 17. To obtain total revenue for a given year, after 1970 total revenue for 1970 is added to the additional revenue for that year. Two fee alternatives that would raise half this maximum may be calculated if desired. An upper fee and a lower fee both yield half the maximum revenue. Municipal Water User Fees It is assumed that most municipal water supply utilities, because they are monopolies, have set prices above the paraeto optimum; and the monopoly revenue formula ( Equation 3) is appropriate. By using this formula, the revenue projections are twice as large as they would be under competitive conditions. 39 |