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<br />3743 <br /> <br />52 <br /> <br />RUEm DAM AND RESERVOIR, COLO. <br /> <br />;' <br /> <br />ited to amounts allocated to municipal and industrial "ater supply. <br />A summary of uonreimbursable and reimbursable costs rollows: <br /> <br />Total project cost, Ruedi Dam and Reservoir ------------------ <br />Assigned to Fryingpan-Arkansas projecL_______________________ <br /> <br />Amount <br />$12,831,000 <br />1,600,000 <br /> <br />5,231,000 <br /> <br />Costs allocated to western-slope uses___________~_________ <br />Les8 nonreimbursable allocations: <br />Fll)od controL____ _ _________ ___________________ <br />F!sb and wildlife______________________________ <br /> <br />RecreatioD____________ _________________________ <br /> <br />$111,500 <br />1,757,800 <br />55,000 <br /> <br />1,930,300 <br /> <br />Reimbursable allocation to municipal and industrial water <br />supply________________________________________________ <br />Repa~rltble interest during constructioIL________________________ <br /> <br />3,300,700 <br />169,400 <br /> <br />Total municipal and industrial wa ter invps.lmenL_________ 3, 4iO, 100 <br /> <br />Sen;ce for munici!)ul und indust.rial water supply will be on a <br />deferred basis. A su )stllntial demand for municipal and industrial <br />water win not OCCllr until about 197fJ-:lpproximateJy D yenl's after <br />Ruedi Reservoir will proville storage. Therefore, provisiolls of the <br />'Yater Supply Act of 1058 (Public Law 85-500) are applicahle. This <br />nct. prorides that deferred use may extend not. in excess of 10 years <br />(interest free) and that allocated costs may not exceed 30 perceut of <br />the total cost of the storage works. In this case the cost of Ruedi Dam <br />and Reseryoir allocated to municipal and indust.rial water of $:3,300,- <br />700 comprises less than ~6 percent ofthe total project cost. <br />The rate of intel'est uuder the Watel' Supply Act of 1058 applicable <br />to ('.alr'.1I1at.ion of repayable interest during construction and to amor- <br />tization of t.he total investment aft.er the permissible deferred period <br />is the computed tlye-rage ra.te paya.ble by the Treasury upon its out- <br />standing nUlI'ket.able public obligations, which are neither due nor <br />ca.llable for redelllpt.ion for 1[; ye<H.s from date of issue. Further, the <br />applicable rate of interest is computed as of the beginning of the <br />fiscal ;yea.r in 'Which constTtwtion is initiated, <br />As presently certified by the Secr'etar)' of the Treasury, the interest, <br />rate to be used for fiscal year 1960 is ~.G99 percent. Since the base <br />studies of interest during construction for Ruedi Dam an(l Re:;ervoir <br />use nn interest rnte of 2~6 pe.ref'.nt, t.he repayable interest during con- <br />struction associated with municipal and industrial water supply is <br />subject to upward adjustment. Hevision of $160,400 at ~.5 percent <br />interest to a rounded rate of 2.7 percent ~'ields $18:3.000 for adj nsted <br />interest during construction. Tlw total municipal anu inuustrial <br />water supply investmeut then becomes $3,483,700, ine.luding the <br />$3,300,700 or allocated reservoir costs. <br />Repayment of this inves/ment over a 50-year period with int.erest <br />at 2.7 percent, plus ano~ated annual operat.ion, maint.enance llnd <br />replacement. costs, would require nllnunl revenues as follows: ' <br /> <br />Equivalent of investment, new revenues_____________________________ $12j, JOO <br />Allocated annual operation. IllRlntenRnce, amI replllcem~Dt ___________ 2,300 <br /> <br />'rotal nnnnnl revenue________________________________________ 130,000 <br /> <br />Demand for storage water would increase in time in accordance <br />"ith the rnte of urban growth and ,the oil-shale indnstry, and "o\ud <br />vary mversely to annllal preclplt,at.lOn and ~treamflows. In view of <br />