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Show DIXIE PROJECT, UTAH 59 ( e) After repayment of costs allocated to municipal and industrial water in the 50th year of project operation, revenues would also become available from that source to provide financial assistance the remainder of the repayment period for irrigation; these revenues are expected to total $ 1,059,- 000 over the 10- year period that they would be available. Total project- generated revenues from all sources which could be applied to repayment of the irrigation allocation under the foregoing analysis would be $ 30,232,000, which is $ 50,000 more than the allocation to irrigation of $ 30,182,000. IV. BENEFITS AND COSTS Our restudy of the project as a financially self- contained unit evaluated total annual benefits at $ 3,992,800 compared to the former evaluation of $ 3,313,200. Annual operation and maintenance costs are now estimated at $ 319,600 compared to the previous estimate of $ 297,000. Listed below are the revised benefits by functions compared with those presented in the Department's planning report. Revised annual benefits Planning report annual benefits Irrigation: $ 1, 547,500 1, 711,600 342,000 130,800 35,500 7,200 78,000 140,200 $ 903,400 1, 564,100 342,000 Municipal and industrial water: 111, 400 35,500 6,800 78,000 272,000 3,992,800 2,281,200 3,313,200 1, 749,100 Using total benefits and an interest rate of 3 percent, the revised benefit- cost ratio for the Dixie project would be 2.2 to 1 over a 100- year period of analysis. All the bills pending before your committee contain language in section 1 to incorporate into the act by reference an agreement made among local water users' organizations under which Cedar City, Utah, would be entitled to use certain waters impounded in Kolob Reservoir after completion of the Dixie project. We have no objection to this provision as it appears in any of the biUs. We recommend that the language authorizing development of the project for recreation purposes, and making the costs associated with recreation and fish and wildlife enhancement nonreimbursable be changed to conform with that of the proposed Federal Water Project Recreation Act. To accomplish this, section 6 should be deleted in its entirety and the following substituted: " SEC. 6. The Secretary is authorized in connection with the project to construct, operate, and maintain or otherwise provide for the basic public outdoor recreation facilities, to acquire or otherwise to include within the project area such adjacent lands or interests therein as are necessary for present or future public recreation use, to allocate water and reservoir capacity to recreation, and to provide for the public use and enjoyment of project lands, facilities and water areas in a manner coordinated with other project purposes. The Secretary is authorized to enter into agreements with Federal agencies or State or local public bodies for the operation, maintenance, and additional development of project lands or facilities, or to dispose of project lands or facilities to Federal agencies, or State or local public bodies by lease, transfer, conveyance or exchange, upon such terms and conditions as will best promote the development and operation of such lands or facilities in the public interest for recreation purposes. The costs of the aforesaid undertakings, and the costs of the project allocated to fish and wildlife enhancement, including costs of investigation, planning, Federal operation and maintenance, and an appropriate share of joint costs of the project, shall be nonreimbursable. Nothing herein shall limit the authority of the Secretary granted by existing provisions of law relating to recreation development of water resource projects, or disposition of public lands for recreational purposes." |
