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<br />. <br /> <br />. <br /> <br />. <br />* <br /> <br />~Cb: <br /> <br />Economic and Financial Analyses <br /> <br />with highway improvement. The rema~n~ng one-half of the separable <br />capital costs, including project costs and associated interest during <br />construction, for recreation and local fish and wildlife enhancement <br />are to be financed or repaid with interest by a non-Federal operating <br />agency. The full allocation to irrigation, except for interest during <br />construction, is reimbursable ~ithout interest. Table 32 presents <br />the reimbursable and nonreimbursable allocations. <br /> <br />Recreation and Fish-wildlife Reimbursement <br /> <br />The repayable interest during construction of $54,400 associated <br />with one~half of the separable recreation and fish and wildlife costs <br />reflects an adjustment from the interest rate of 3-1/8 percent used <br />in project evaluation to the precise rate of 3.225 percent as certified <br />by the Secretary of the Treasury for use in fiscal year 1967. It is <br />anticipated that the actual interest rate applicable to these reimburs- <br />able costs will be the rate specified for use in the fiscal year in <br />which construction of the Narrows Unit is initiated. <br /> <br />Provisions of the Federal Water Projects Recreation Act, Public <br />Law 89-72, permit considerable latitude in the financing or repayment <br />of the reimbursable recreation and fish and wildlife enhancement costs <br />by the non-Fede~al operating agency, which is expected to be the <br />Colorado Game, Fish and Parks Department. These reimbursable costs <br />total $1,144,200, including $1,174,200 for initial recreation and <br />fish and wildlife development and $570,000, or one-half of the undis- <br />counted future recreation facilities costs totaling $1,140,000. <br />Public Law 89-12 provides that the reimbursable obligation may be <br />met by any one or a combination of the following means: (a) the <br />contribution Df state-ac~uired Dr state-DW11ed lands that may be re- <br />~uired for any part of the tDtal lands Dr rights-of-way needed fDr <br />the Narrows Unit, (b) state construction of any of the facilities or <br />habitat re~uired on recreation and fish and wildlife enhancement and <br />mitigatory lands, and, (c) execution of a repayment contract to amortize <br />~ith interest all or any remaining balance of the cost sharing obliga- <br />tion within a 50-year period. <br /> <br />Under the last methOd, the repayrr~nt obligation may be based <br />upon proceeds from user fees, a schedule of which would be contained <br />in the contract and be subject to review for ade~uacy at 5-year <br />intervals. <br /> <br />99 <br />