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Show 58 DIXIE PROJECT, UTAH We have restudied the project on the foregoing basis and find that full repays ment of all project costs within the time limits customarily imposed for each function as a matter of policy could be achieved using revenues from the Dixie project alone. We would not oppose authorization of the Dixie project as a financially self- contained unit. We believe the authorizing legislation should not preclude incorporation of the project into a regional water resource development plan on an equitable basis. These bills would not do so. A summary of our restudy of the project as a financially self- contained unit follows: I. COSTS Total cost of the project would be $ 44,577,000 as estimated in our May 1963 reanalysis ( planning report, $ 44,623,000). With assumption of $ 1,904,000 in highway relocation costs by the State of Utah, the net Federal cost would be $ 42,673,000. II. Allocation of costs 1964 allocation Planning report allocation Reimbursable: $ 30,182,000 6,573,000 2,474,000 $ 31,411,000 7,675,000 2,609,000 39,229,000 41,695,000 Nonreimbursable: 1,808,000 1,494,000 <. 142,000 745,000 2,016,000 167,000 3,' 444,000 2,928,000 42,673,000 1,904,000 44,623,000 i 44,577,000 44,623,000 1 Per May 1963 reanalysis. III. PLAN FOB REPAYMENT 1. Costs allocated to flood control would be nonreimbursable in accordance with reclamation law. Costs allocated to fish and wildlife enhancement and recreation are within the limits specified in the administration's proposed Federal Water Project Recreation Act ( H. R. 9032) and were assumed to be nonreimbursable. An amendment to the bill to produce that result, and otherwise to bring the bill into conformity with H. R. 9032 is proposed later in this report. 2. Costs allocated to commercial power would be repaid, with interest at the rate specified in the bill, within 41 years at; a firm energy power rate of 7.15 mills per kilowatt- hour. 3. Costs allocated to municipal and industrial water would be repaid, with interest at the rate specified in the bill, within 50 years, by selling such water at a rate of $ 22.21 per acre- foot. 4. The costs allocated to irrigation would be repaid as follows: ( a) Presently irrigated lands would be assessed construction charges for a 50- year period commencing the first year of project operation; this is estimated to produce $ 4,465,000. ( 6) Newly irrigated project lands would be assessed construction charges for a 50- year period commencing after a 10- year development period; revenues from this source are estimated at $ 13,425,000. ( c) An ad valorem tax of 5 mills would be assessed against all real and personal property within the conservancy district for 60 years; this is estimated to produce revenues of $ 5,635,000. ( d) Surplus revenues from the '-- sale of Dixie project commercial power would become available for application to irrigation repayment starting in the 41st year of project operations, after the costs allocated to power had been repaid; this is estimated to yield revenues of $ 5,648,000 over the remaining 19 years of the irrigation repayment period. |