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0: c.= ~ - ~ ~- BUREAU OF RECLAMATION REPORT In the report, Colorado River Storage Project ~ Participating Projects, a 50-year repayment period for irrigation construction costs is outlined for participating projects. In this period, at the estimated rate of payment, the La Barge project fanners could pay $416,500 toward construction costs. The remaining $1,059,500 of the reimbursable cost could be paid from the Upper Colorado River Account that would be estab- lished from revenues of the storage project to assist irrigators in pay- ing costs of participating projects. A development period of from 5 to 10 years after the first delivery of project water would be desirable before water users were assessed proj- ect construction costs. This period would permit the farmers to prepare the lands for irrigation and organize the fanning operations 50 that they could begin to realize benefits of "the development at the time assessments were started. Repayment Organization A contracting entity, preferably of the conservancy district type, would be necessary for the purpose of contracting with the United states for payment of project costs. The district would be needed at the time settlement began. Comparison of Benefits and Costs Benefit s from the La Barge project attributable to Federal expendi- tures would compare with the attendant Federal costs in a ratio of 1.3 to 1. For the comparison both benefits and costs were computed as average annual equivalents over a lOO-year period beginning with the first year of full project operation. The benefits were based on average prices for the period 1939-1944. Operation, maintenance, and replacement costs were also based on the 1939-1944 prices while construction costs were based on higher prices prevailing in December 1949. Future variations in these price levels might result in a different benefit-cost ratio than is presently indicated as the actual ratio would depend on the relationship between prices at the time of construction and average prices prevailing throughout the useful life of the project. The net value of, benefits from Federal expenditures is estimated at $109,400 annually. This incltrles the direct benefits to farmers that would result from increased crop and livestock production and the indirect benefits that would result from processing of the additional agricultural products and from increased local sales of goods and services. An allow- ance was made for a $4,600 loss in fish and wildlife values, the estimated loss pending a definite estimate by the Fish and Wildlife Service. 9