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Show DIXIE PROJECT, UTAH 93 The costs allocated to power and municipal and industrial water supply, including interest during construction, would be returned with interest. The investment costs allocated to power would be repaid in 41 years and the cost allocated to municipal and industrial water supply would be repaid in 50 years. Such repayment would require rates of 7.15 mills per kilowatt- hour for firm energy and $ 22.21 per acre- foot for municipal and industrial water as compared with rates of 6.9 mills per kilowatt- hour and $ 22.12 per acre- foot as presented in our planning report. Local and State interests have indicated their acceptance of such rates. The costs allocated to irrigation would be reimbursable without interest within a 50- year period plus a 10- year development period. The project revenues obtained from the sale of irrigation water for new lands would amount to $ 268,500 per year and from servicing presently irrigated lands would amount to $ 89,300 annually. In addition, ad valorem taxes varying from $ 64,500 to $ 117,000 annually would be applied to repay the irrigation costs. Surplus revenues from the sale of power and municipal and industrial water, following repayment of the investment costs, would be used to assist in the repayment of irrigation costs within the overall 60- year payout period. The Washington County Water Conservancy District has been formed as the agency empowered to contract with the United States and to assume responsibility for operation and maintenance of the project. The city of St. George has indicated its willingness to contract for the municipal and industrial water supply and for the electric energy produced by the project. Attached to this statement is a tabulation indicating how repayment of reimbursable costs would be accomplished with the Dixie project operating as an independent development. The annual benefits have been computed to total $ 3,992,800 including irrigation benefits of $ 3,259,100 and power benefits of $ 342,000. Benefits due to municipal and industrial water would total $ 166,300 annually and flood control, fish and wildlife, and recreation would result in $ 7,200, $ 78,000, and $ 140,200 worth of benefits annually. A comparision of the benefits with the costs indicates that the project is economically justified, as the benefit- cdst ratio' is 2.2 to 1. The benefit- cost ratio computed under former policies and procedures as shown in our planning report, which was prepared in 1961, is 2.1 tol. The Dixie project is a worthy and urgently needed water resource proposal. The support for the project, at the State and local level, is overwhelmingly favorable as evidenced not only by statements made at previous hearings but also by concrete evidence of willingness to provide repayment and other funds as required to make the project financially feasible. 36- 351-' 64 7 |