Cottonwood Mutual Water Company

Overview

The Cottonwood Mutual Water Company is a nonprofit organization, classified as a 501(c)(12) entity. These entities are typically associated with organizations that have a mutually beneficial nature, such as benevolent life insurance associations, irrigation companies, and telephone companies. Donations to this organization are not tax-deductible[2].

Purpose and Operations

Located in Morgan County, Utah, Cottonwood Mutual Water Company serves approximately 2,553 residents. It provides water to a mix of residential, commercial, industrial, and institutional customers. As of 2020, the company had 740 residential connections, 19 commercial, one industrial, and 12 institutional connections[1]. The company is responsible for managing water resources to meet the increasing demands due to residential growth in the area.

Water Resources

Cottonwood Mutual Water Company relies on groundwater from five active wells for its water supply. The maximum safe yield from these wells is approximately 1,375 acre-feet annually, though the company is entitled to withdraw about 690.91 acre-feet annually under current rights. In recent years, the company has been withdrawing on average around 308.80 acre-feet annually between 2016 and 2019. To accommodate future growth, the company has developed additional infrastructure, including a new 1.0 million-gallon water tank and has plans to develop three more wells[1].

Water Conservation Efforts

The company has implemented conservation measures and rate structures to promote water efficiency. It aims to reduce per capita water use significantly, focusing on education and tiered rates to incentivize savings. The goal is to reduce the per capita water use rate from 114.6 gallons per capita per day (GPCD) to 85.95 GPCD by implementing progressive rate structures[1].

Financial Overview

Cottonwood Mutual Water Company generates most of its revenue from program services, which comprised about 99.9% of its total revenue in some fiscal years. The company also earns income from investments and rental properties. It does not rely on donations or fundraisings. Expenses primarily include operational costs and executive compensation, with no professional fundraising fees being reported[2].

Drinking Water Quality Compliance

The company complies with federal and state regulations by monitoring drinking water quality regularly. These monitoring efforts are in line with the requirements for ensuring safe drinking water for its customers[3].

Environmental Focus

The organization is involved in water resource, wetlands conservation, and management activities as part of its environmental quality protection efforts. Its classification under NTEE for environmental quality, protection, and beautification reflects this role[2].