C I R P A C P R E S E N T A T I O N B Y R O N T H O M P S O N J U N E 1 6,

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1 WATER UPDATE C I R P A C P R E S E N T A T I O N B Y R O N T H O M P S O N J U N E 1 6,

2 W A T E R S U P P L Y, C O N S E R V A T I O N A N D D E V E L O P M E N T

3 CURRENT WATER CONDITIONS 102%* seasonal precipitation accumulation (Oct May) 64% soil moisture 50% reservoir storage 45% water availability index for the Virgin River *Percent of average Source: NRCS Utah Climate and Water Report, June 2016

4 CURRENT POTABLE WATER SUPPLY 23% increase 13,670 Acre Feet: Local Water Resources in Development 59,170 Acre Feet: Washington County s Current Supply

5 CONSERVATION Washington County has already achieved Governor Herbert s goal to reduce use 25% by Water Conservation Plan Multi-million dollar annual investment 23 current measures designed to yield additional use reductions

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7 WATER DEVELOPMENT LOCAL RESOURCES 23% increase to local water supply Ash Creek Pipeline 2,840 af Arsenic Treatment (Gunlock Wells) 5,000 af Well Development 2,830 af Groundwater Recharge 3,000 af

8 CURRENT LOCAL PROJECTS Sand Hollow Regional Pipeline Ash Creek Pipeline and Toquer Reservoir Warner Valley Reservoir Well development

9 SAND HOLLOW REGIONAL PIPELINE Estimated $14.5 million 11.5-mile culinary water transmission line Benefits: Augments local supplies by allowing the district to tap into its developed groundwater from wells near Sand Hollow to meet increased demand Frees up capacity in the existing regional pipeline Improves system efficiency and security, especially when surface sources are low during times of drought

10 ASH CREEK PIPELINE AND TOQUER RESERVOIR Estimated $34.2 million 17-mile pipeline and a 3,640-acre-foot reservoir Benefits: Increases water availability by approximately 3,000 acre feet annually through collecting and storing water, including aquifer recharge Stores water that is currently lost through ditch, reservoir seepage and runoff to be used for irrigation and other municipal purposes Allows for high quality water from Toquerville Springs to be transferred from irrigation to culinary use

11 WARNER VALLEY RESERVOIR Estimated $96.9 million Proposed 55,000 acre foot reservoir Benefits: Allows the district to capture and store Virgin River water rights that are currently flowing downstream Stores water produced by the St. George water reuse plant during the winter months and excess Santa Clara project water Provides irrigation water to southern developments in Washington and St. George cities Conserves treated culinary water Improves water quality Provides drought protection Maintains a more consistent pressurized system Allows for more efficient irrigation methods Creates potential recreational opportunities for visitors

12 WELL DEVELOPMENT 12 new wells Estimated cost $21.7 million

13 WATER TREATMENT PLANT PLANNING FOR FUTURE EXPANSION Estimated $67.3 million Expanding from a 60 to an 80 million gallon per day plant; adding ozone treatment

14 acre feet WATER DEVELOPMENT REGIONAL RESOURCES 180, , , , ,000 Lake Powell Pipeline Lake Powell Pipeline will more than double Washington County s potable water supply 80,000 60,000 40,000 20,000 Local Future Current Water Supply 0

15 CONSERVATION AND NEW RESOURCE DEVELOPMENT Equally important Essential to Washington County s future

16 P L A N N I N G F O R T H E F U T U R E

17 WASHINGTON COUNTY ECONOMIC INDICATORS Personal Income $4.5 billion 5.9% Gross Metropolitan Product $4.4 billion 5% Taxable Retail Sales $205 million 8.6% Population 155, % Employment 63, % Percent increase vs 1 year prior Transient Room Tax (tourism) $5 million 17.7% Primary Residential Properties 44, %

18 POPULATION GROWTH Washington County is projected to see an increase in population of 416,000 residents between 2015 and 2060, a 252% growth rate. 138, , , , , , Source: US Census and Governor s Office of Management and Budget

19 WATER AND POPULATION 252% 23% Projected population growth Increase in local reliable water supply

20 POTABLE WATER DEMAND AND SUPPLY 2015 Demand: 48,599 af Supply: 59,170 af Ratio: 82.1% 2030 Demand: 75,109 af Supply: 72,840 af Ratio: 103.1% 2060 Demand: 149,873 af Supply: 72,840 af Ratio: 205.8% Additional Water Supply Under Development Washington County Current Water Supply

21 WATER BUFFER Washington County is currently well under its 15-year buffer for renewable water supply. 15 Year Buffer Additional Water Supply Under Development Washington County Current Water Supply

22 SUMMARY OF WATER SUPPLY AND DEMAND TOTAL WITH CONSERVATION Wastewater Reuse Expansion

23 L A K E P O W E L L P I P E L I N E U P D A T E

24 PROJECT DETAILS 180, , , , ,000 80,000 60,000 40,000 20,000 Lake Powell Pipeline Local Future Current Water Supply Project of the State of Utah Approximately 140-mile pipeline from Lake Powell to Sand Hollow Reservoir Would deliver up to 82,249 acre feet of water a year to Washington County 0

25 CURRENT STATUS AND NEXT STEPS Federal license application filed in 2016 Record of decision expected in 2018 Next steps, if federal permits are issued: Final design, based on federal approvals Cost estimates, based on final design Financing terms, as approved by stated legislature for state project District will prepare a repayment plan If state and district decide to construct the project: Construction will commence (2020 target date) Water deliveries begin (2025 target date)

26 WHY THE PIPELINE? Population and economic growth will require additional supplies Diversifies our existing water supply 100% of current supply from the Virgin River basin More reliable source Water is legally ours Improves water quality Highest yield Lowest cost

27 ECONOMIC RETURN OF THE PIPELINE Washington County Core Metrics (2015) Core Metrics Per Acre Foot Demanded (48,599 af) Additional Economic Potential With Lake Powell Pipeline (82,249 af) Population [1] 151, ,209 Households [2] 50, ,023 Employment [3] 56, ,301 Businesses [4] 4, ,357 Personal Income [5] $4.5B $92,730 $7.6B Wages and Salaries [5] $1.9B $39,173 $3.2B Gross Regional Product [6] $4.4B $91,072 $7.4B Notes: [1] US Census Bureau [2] Population divided by 2.99 persons per household. People per household as reported [3] Bureau of Labor Statistics - State and Area Employment, Hours and Earnings (St. George MSA) [4] Bureau of Labor Statistics, Quarterly Census of Employment and Wages [5] Bureau of Economic Analysis, Personal Income and Employment by Major Component [6] Bureau of Economic Analysis, Local Area Gross Domestic Product Estimates [7] Baseline estimates. Notes that the effects of conservation, advancements in construction technology and economic diversification have the potential to significantly increase the simple calculations provided.

28 Billions Billions WASHINGTON COUNTY TAX ANNUAL COLLECTIONS, ALL SOURCES $1.6 $1.4 $1.2 Sales tax revenue supported by the Lake Powell Pipeline are estimated to generate more than $11 billion between 2026 and 2060, 78% of which would inure to the state. $1.4 $1.2 $1.0 Personal income taxes supported by the Lake Powell Pipeline are estimated to generate nearly $8.6 billion between 2026 and $1.0 $0.8 $0.8 $0.6 With Lake Powell Pipeline $0.6 $0.4 With Lake Powell Pipeline $0.4 $0.2 $0.2 $ $

29 In billions PUT ANOTHER WAY The state is expected to generate $19.2 billion in incremental sales tax revenue and income tax payments between 2026 and 2060 from the Lake Powell Pipeline, an approximately $1.4 billion project Cost Benefit

30 CONSIDERED ALTERNATIVES Mandated, restrictive conservation measures Agricultural transfers Reverse osmosis treatment Water reuse facilities These alternatives, alone or in any combination, would be more costly and produce less water with lower reliability than the Lake Powell Pipeline.

31 PROJECT FINANCING SPECIFIED IN THE DEVELOPMENT ACT Financed through the state of Utah The districts will repay the state gradually as growth occurs and as water is used 70% of the project would be paid within years after the project is finished The remaining 30% would be paid within 90 years after the project is finished Multi-generational funding model used by the Bureau of Reclamation to ensure future water users share project costs

32 HOW WILL WE PAY FOR THE LAKE POWELL PIPELINE? Water rates Property taxes Impact fees

33 DISTRICT REPAYMENT PLAN Because information essential to formulate repayment terms will not be available until 2018 or later, a repayment plan for the Lake Powell Pipeline cannot be determined at this time. A definitive repayment plan requires: Project route and design features that would be determined after completion of National Environmental Policy Act (NEPA) review Approved final design Cost estimates based on the final design Financing terms approved by the state and accepted by the districts An official decision will not be made to build the Lake Powell Pipeline project until multiple opportunities for public review and feedback on the costs, financing terms and repayment plan options.

34 Conservation Water Resource Development T H E R E I S N OT A S I LV E R B U L L E T S O L U T I O N TO WA S H I N G TO N C O U N T Y S WAT E R C H A L L E N G E S Planning and Innovation

35 N AT I O N A L W AT E R I S S U E S

36 IN THE NEWS WATER RIGHTS Could Draining Lake Powell Save Lake Mead? KNPR, May 25, 2016 Glen Canyon Institute, an environmental advocacy group, wants to eliminate the dam and restore Glen Canyon and now it has a pragmatic proposal to do it The plan would open the gates at Glen Canyon Dam, draining Lake Powell and allowing its water to flow down river to Lake Mead.

37 IN THE NEWS WATER MANAGEMENT States consider more cuts on Colorado River to prop up Lake Mead Las Vegas Review Journal, April 26, 2016 Top water officials in Nevada, Arizona and California have negotiated a deal to cut their use of the Colorado River and slow the decline of Lake Mead Negotiators from Arizona and California are now shopping the plan to various water users and policymakers in their states, where the proposed cuts are likely to be painful and in some cases unprecedented. Arizona would shoulder most of the reductions, but the tentative deal marks the first time California has agreed to share the pain if the drought worsens.

38 IN THE NEWS NEW INFRASTRUCTURE Lake Mead hits new record low Las Vegas Review Journal, May 18, 2016 Record-low water levels present more of an access problem than a supply problem for the Las Vegas Valley to keep that water flowing from the shrinking lake, the agency [Southern Nevada Water Authority] is spending almost $1.5 billion on a new deep-water intake and pumping station.

39 F U N FAC T How Flint, Michigan s tap water became toxic CNN, January 13, 2016 Washington County Water Conservancy District conducts approximately 4,400 water quality tests annually You can't put a dollar amount of the devastation to our community, our kids, and it was completely avoidable. - Dayne Walling, former mayor of Flint

40 IN THE NEWS AGING INFRASTRUCTURE America s Water Crisis Goes Beyond Flint, Michigan CNBC, March 24, 2016 The focus should not necessarily be on water quality in the United States, which is fairly high, but rather with the infrastructure that is delivering the water The infrastructure conveying the water is in serious need of investment right now. If we continue on the path that we are on now, and if we don't increase investment in these areas, we're putting at risk by the year 2020 over $400 billion in U.S. GDP, 700,000 jobs would be endangered, and over half a trillion dollars in personal income would be at risk."-casey Dinges, senior managing director, American Society of Civil Engineers

41 L E G I S L AT I V E R E P O R T

42 WATER-RELATED BILLS SB 281: Water Infrastructure Funding passed in 2015 Money in the restricted account is to be used for: the development of the state's undeveloped share of the Bear and Colorado Rivers, pursuant to existing interstate compacts governing both rivers as described in Bear River Development Act and Lake Powell Pipeline Development Act; and repair, replacement, or improvement of federal water projects SB 80: Infrastructure Funding Amendments passed in 2016 Restores 1/16% sales tax revenues to water development Fully funded by 2021

43 Q & A Visit wcwcd.org for more information