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<br />J <br /> <br />'. to meet the needs of a project "ith a diversion point near Fort Peek, <br />Montana--the old Crosby-Kohall Unit and associated "orks. With the <br />adoption of the Garrison Diversion Unit plan, a special committee <br />reviewed the conservancy district law in 1954, and the legislature <br />passed, in its 1955 session, the Garrison Diversion Conservancy District <br />law with which We are dealing today. The District "~s activated in <br />July 1955 with 22 counties included, and has since been enlarged to <br />include 25 counties. These are the counties which stand to benefit <br />directly from the Unit as presented in the 1957 Bureau feasibility <br />report. <br /> <br />Three of the principal reasons for enacting the legislation <br /> <br />were: <br /> <br />1. To provide ill the North Dakota law for a legal entity <br />that could contract for a portion of costs of construction and opera- <br />tion of works in such a manner as to assure needed assistance to \~ter- <br />user groups. <br /> <br />2. To provide a means of taxing those living off the project <br />who would or could profit from the development; thus strengthening <br />financial feasibility of Lhe proposal. <br /> <br />3. To provide an official body representing all types of <br /> <br />......&._..... "__'~_ -C\__~ ___~_...._.___ -'._ .,","_ :__-'- __,__ ". _...' <br />..-......... ....~.......... ........... .................uv....~~....'- ...~... 1:'.1. v....",;......... .t:'..I..UU.l...L.L.,l..l.5 u.uu. u!-'<:;:.Lu......L\...Il.... <br /> <br />Stated another way, the Conservancy District provides an <br />organization through which the people in the affected counties can <br />assist in the planning work for the Unit; can demonstrate their interest <br />in the job by paying a s~all (one-tenth mill) tax levy while the work <br />is getting started; can, through a larger levy, contract with the <br />United States to repay part of the construction cost of the Unit; and <br />can assist the farmer by helping to pay operation nnd maintenance costs <br />while he is converting to irrigation. <br /> <br />The essence of the Conservancy District is its capacity to <br />levy an ad valorem tax on property in the District. In this particular <br />District the limit is one mill. This tax is a recognition of so~ething <br />We all know--that the beneficial effect of a water resource developwent, <br />especially an irrigation development, extends far beyond the boundaries <br />of the farms served. The grocer, ,the doctor, the lumber dealer benefit <br />from the increased farm production and the population growth that goes <br />with it. The food processor, the railroad, the ~achinery manufacturer-- <br />these all do more business because of the irrigation development. We <br />. have ample proof, statistically, of the far-reaching effect of irriga- <br />tion; but even without statistics we can observe the effect when we go <br />into an irrigated oasis from an area of non-irrigation farming. These <br />benefits are real, tangible benefits. I dislike hearing them referred <br />to as secondary or indirect. They make a noise in the cash register. <br /> <br />E-2 <br /> <br />~ T <br />