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Committee clarifies law so water districts can set aside and invest maintenance funds; removes 10% cap
Summary
Lawmakers approved statutory language clarifying that irrigation, water conservancy and watershed districts may set aside funds for major maintenance and invest them using State Treasurer investment pools.
A drafting change intended to clarify local districts’ authority to save for major maintenance passed the committee after several technical and policy amendments.
The bill draft would add parallel language for water conservancy districts, irrigation districts and watershed improvement districts to permit the districts to include an amount in their annual assessments for major maintenance projects and to hold these funds in a separate major‑maintenance account. Early drafting included a 10% limit on the annual amount that could be set aside; committee members removed that limit after members asked for flexibility, particularly for small districts.
The State Treasurer’s Office recommended clarifying where districts may invest the accounts. Deputy State Treasurer Dawn Williams and staff explained the distinctions among the State Treasurer’s WildStar pools: WildStar 1 (short‑term, monthly distribution), WildStar 2 (longer‑term fixed income, quarterly distributions) and WildStar 3 (equities, $5 million initial deposit and five‑year minimum). Committee members accepted language that permits districts to invest funds through the State Treasurer’s permitted local government pools — allowing districts to choose the pool that fits their timeframe and liquidity needs rather than limiting them to a single WildStar vehicle.
The committee also approved conforming changes that apply the same authority to all three district types. The bill passed committee sponsorship by roll call and will be carried forward for session consideration.
Why it matters: Local irrigation and water districts have struggled to set aside systematic funding to replace aging dams, headworks and conveyances. The change is intended to let districts hold and prudently invest money for predictable long‑term maintenance without legal uncertainty.
Next steps: Rules and contract mechanics for investing through the Treasurer’s funds will be implemented administratively; committees and the Treasurer’s Office noted this is largely a clarification of existing practice, not a new grant or program.
