Dixie Project legislation, 1963-1964

Page 80

10 < DIXIE PROJECT, UTAH ( 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 .Reimbursable: Irrigation ._ -._ _ . Power . . _ _ _ . „ _ _ _. . _ __ ___ -_ Municipal and industrial - ._ _ - _ _ Nonreimbursable: Recreation,- _ _ ___ Fish and wildlife enhancement __ _ Flood control _ _ Subtotal .- . . -__ Total Federal cost __ _.- -.- _._ ... _.. ___ . Highway relocation (paid bv State of Utah) --.__. Total project cost . . . . 1964 allocation $30,182, 000 6,573,000 2,474,000 39,229,000 1,808,000 1,494,000 142,000 3,444,000 42,673,000 11,904,000 44,577,000 Planning report allocation $31,411,000 7,675,000 2,609,000 41,695,000 745,000 2,016,000 167,000 2,928,000 44,623,000 44,623,000 1 Per May 1963 reanalysis. III. PLAN FOR 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. (b) 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.