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<br />r.... <br />-:;") <br />I."\l <br />.-l <br /> <br />MC'IOOrtlndIJl:l <br />~'orUJn/Work Group <br />January 28,. 1983 <br />Page 2 <br /> <br />'....--' <br /> <br />c.) <br /> <br />Bused on the most recent inCormation avnilnble [r0:tl the <br />Bureau of Reclamation and the Department of Agriculture, this <br />can be achieved with implementation of the following units: <br /> <br />Agric:ulture <br /> <br />McElmo Creek, CO <br />Lower Gunnison, CO <br />Uinta Basin, UT <br />Upper Virgin River, UT <br />Palo Verde Valley, CA <br />nig SClndy, Wy <br />Moapa valley, NV <br /> <br />Reclamation <br /> <br />McElmo Creek, CO <br />Lower Gunnison, CO, SLage : <br />Uinta Basin, UT <br />Saline Water Use <br />(Glenwood & Big Sandy) <br /> <br />These units would need to be on line by the year 2010 in <br />order to achieve their full salt removal concurrently .....ith the <br />full impacts of Basin development. <br /> <br />The estimated costs of the individual projects are based <br />on data'obtained from the two federal agencies. The c:st of <br />the Bureau units is $733 million and the USDA estunates a <br />cost of $358 million for the agricultural units, for a total <br />'cost of $1.091 billion. <br /> <br />Proposed Cost Sharing <br /> <br />Rather than attempt to develop an annual estimate of <br />construction expenditures for the period 1984 through :010, <br />based on some hypothetical construction schedule, it ~;S <br />assumed that the total $1.091 billion would be expendej at a <br />uniform rate of $40.4 million per year over the 27 yea:: period. <br />Under the up-front money alternative, $10.1 million an~ually <br />would be required to meet the 25 percent non-federal s~are. <br />In accordance with P.L. 93-320, the non-federal share ^ould <br />be allocated between the Upper Colorado River Basin F~:1d and <br />the Lower Colorado River Basin Development Fund with 1:: per- <br />cent to be allocated to the Upper Basin Fund and 85 pe::cent <br />to the Lower Basin Fund. Using this split, the annual con- <br />tributions from the Upper Basin and Lower Basin Funds would <br />be $1.5 million and $8.6 million, rcspl.!ctive;.y. <br /> <br />The impact of the alternative requiring repayment with <br />interest was computed by using the federal planning in~erest <br />rate of 7 7/8 percent, which is somewhat lower than tr.e cur- <br />rent long-term federal interest costs, since we did nu~ have <br />firm data on the current long-term interest costs. Ev~n <br />using this somewhat lower interest rate, we found that, after <br />about 13 years, the annual repayment sum including int",rest <br />exceeded the amount of the annual up-front payment. ~::ese <br />higher repayments with interest then continued for the ~n- <br />suing 60 plus years, rather than terminating in the ye~r <br />