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Show 100 DIXIE PROJECT, UTAH cost would be for the next alternate, just as we did the Canadian River. We admit this is fairly high cost water, but the alternate that they would have had to go to if they did not get it from that source would be even more costly; in this case we took into account where the city would have to go if they did not get it from the project and what those costs would be in arriving at this $ 22.21 figure, exactly as we did before. Mr. ROGERS. Do you know what they are paying for raw water now ? Mr. DOMINY. I am told that their water bill runs about this now, but I do not know whether that is raw or treated. The mayor is here. He will testify later. I am sure he will be glad to give you some additional information. One other thing of interest to the committee here is the Conservancy District Act that applies to this project is a special act and permits a 5- mill levy. This is a much heavier assessment than is usually allowed in legislation covering services and authorizations, and the conservancy district has been formed. It is ready to do business with us as soon as the project is authorized. The annual benefits to this project are such that the benefit- cost ratio is extremely good. This project measures out under the established allocation process at 2.2 to 1. In summary, gentlemen, here is a good multiple- purpose project in an area that is exporting one thing that no country can afford to export, and that is its trained young people, for lack of opportunity. This area, if it is going to expand, has to put its water to work. This project will permit these people, in cooperation with the Federal Government, to develop a potential of land and water that is laying there not fully used. I strongly recommend it to the committee. Mr. ROGERS. Mr. Dominy, with regard to the irrigation, the $ 30 million allocated to irrigation, have you made a breakdown as to the per acre investment ? Mr. DOMINY. Yes; that is a little over $ 1,400 per acre. Mr. ROGERS. HOW is that paid back ? What is your schedule of payback ? Does it run much larger later on ? Mr. DOMINY. No, sir; well, at least we have not written the final contract. Mr. ROGERS. I understand. .'-.:.' Mr. DOMINY. We have not proposed to stagger the payments. We have had some problems when we do this. Sometimes we get away with it, but as soon as the first increment of increase comes around we find problems. I admit that this is a high cost project and it is a high cost project to the farmer. Under this proposed schedule of payment, the new lands are going to pay about $ 22 an acre for both construction and O. & M. assessments; that is, combined. Mr. ROGERS. $ 22 a year. ..:.;, Mr. DOMINY. $ 22 an acre per year. That is going to figure out at about $ 10 an acre- foot. This is a real rugged payment and the existing irrigated lands for supplemental supply will be charged about $ 10 an acre above what they are already paying for amortizing their distribution systems and their existing O. & M., et cetera. |