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Show DIXIE PROJECT, UTAH 85 Mr. HOLUM. We would hope very much that the dream of the Pacific Southwest regional development plan will be realized in a very short period of time. In the meantime the people of " Utah, the people of the area and the people of the State have made it possible to move ahead on this project, as an individual, self- supporting project and I think that provision merits consideration by Congress. Mr. CHENUWETH. This project has been pending a long time? Mr. HOLUM. Yes, it has. Mr. CHENOWETH. At first I understand it was not a feasible contract, is that correct ? Mr. HOLUM. I am sorry Mr. CHENOWETH. It was not a feasible project in the beginning? Mr. HOLUM. When we presented the project to the Senate committee a little over a year ago, it required financial asistance from some source outside of the project to the amount of slightly over $ 3 million. The local people have now agreed to increase water and power rates in the State of Utah and have agreed to make financial contribution in the amount of $ 1.9 million, so we now have a project that meets all of the requirements. Mr, CHENOWETH. There is a great deal of enthusiasm on the part of the local people for this project. Mr. HOLUM. I think it is fair to say the local enthusiasm is unique. The conservancy district has agreed to an ad valorem tax in the amount of 5 mills. It would meet the local interest in many ways and particularly in the pocketbook. Mr. CHENOWETH. I understand that the financial problem has been worked out ? That the local contribution will be sufficient to make this a feasible project? Mr. HOLUM. Yes. ••:;•>: Mr. CHENOWETH. SO you can go ahead with construction? Mr. HOLUM. Yes. Mr. SOGERS. Would the gentleman yield to me? Mr. CHENOWETH. Yes. Mr. ROGERS. Mr. Holum, did you say $ 22 an acre- foot for municipal and industrial water ? Mr. HOLUM. $ 22.21. Mr. ROGERS. That comes out to around 7 cents a thousand gallons. Mr. HOLUM. Yes. Mr. ROGERS. IS that at the reservoir or at the city gate ? Mr. HOLUM. It is in the project. The city has to refine it, purify it, and get it to the city. Mr. ROGERS. What are they paying for water out there, now? Mr. HOLUM. We will supply that information, Mr. Chairman. Mr. CHENOWETH. I believe that is all, Mr. Chairman. Thank you very much. Mr. ROGERS. Mr. Haley Mr. HALEY. Mr. Secretary, page 2 of your statement, you say several developments have occurred out there recently that make this project financially feasible. What are those developments? Mr. HOLUM. Well, the developments, Congressman, are four; first, is the offer of the State of Utah to contribute the $ 1,900,000 required for highway relocation; second, is the slight increase in municipal and industrial water rates; third, is the increase in power rates; and fourth, |
