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<br />" <br /> <br />. <br />Dallas Project <br />Page 2 <br /> <br /><~ <br />,- ',,~ ; <br />f,)t";" <br />'i.:~., <br />Presentation <br /> <br />@ <br /> <br />to borrow $3.9 million but as soon as the project was completed this amount would <br /> <br />be included in the project costs at a lower interest rate and a longer period of <br /> <br />time to pay it back. The plans were made, the money borrowed, the system built, <br /> <br />300 miles of it, all depending upon the dam being constructed. Now we are advised <br /> <br />no new construction and perhaps no pro,iect at all. We are being forced to raise <br /> <br />our water rates, increase our tap fees, and even ask for an increase in our mill <br /> <br />levy. <br /> <br />Our water supply is for 10 years, three of which have passed. It will take <br /> <br />~. <br /> <br />five years to build the project. We are fast running out of time and we are being <br /> <br />faced with the possibility of having,:D miles of empty pipelines and several thousand <br /> <br />irate people. <br /> <br />Rising costs are gradually reducing our benefit-cost ratio. The estimates <br /> <br />of the project costs have risen from $28 million 15 years ago to $55 million now. <br /> <br />Fortunately, M & I water is much more valuable than water for irrigation. This <br /> <br />figure of $55 million places a maximum cost of $48/acre foot on stored water which <br /> <br />also seems excessive as compared to $4 to $10 for irrigation water. However, when <br /> <br />we compute costs for municipalities and water systems, we drop the cost per acre <br /> <br />foot and use cost per thousand gallons. $48/acre feet reduces to l5e/lOOO gallons <br /> <br />and even $lOO/acre foot reduces to approximately 30e/lOOO gallons. So, from Tri- <br /> <br />County's viewpoint it is imperative that construction not be delayed any longero <br /> <br />This project can insure a future water supply for several thousand families as well <br /> <br />as four towns (who are also encountering future water problems)o <br /> <br />Other factors which have influenced us are: <br /> <br />1. Central Arizona Project recently signed a repayment contract for M & I <br /> <br />water at S55/acre foot. Who can put a price on water for the year 2000? What seems <br /> <br />exorbitant today may be peanuts in 25 yearso <br /> <br />2. If we do not put our water to beneficial use when we have the opportunity, <br />