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<br />._ J <br /> <br />Even more vital >laS their sponsorship of the concept of "Voluntary <br />Participation". They agreed to ur.der>lrite the obligation for lar:d <br />>lhich >las >lithheld from these irrigation districts. This made it <br />possible to form these districts without including kno>ln objectors. <br />This is an unusual approach in forming a special assessment district. <br />I suspect it is the one most important contribution to the rapid <br />progress >lhich has been rr8de in winning acceptance by the >later users. <br /> <br />4. Pl'oblem of financinil; the "Development Period". <br />Reclamation la;; p"ovid.es a developrrent period up to 10 years long. <br />During these years no construction payments need be made. HO>lever, <br />costs of operation and maintenance of the irrigation system, no <br />matter >lhat they be, must be paid even during the development period. <br />The operation and maintenance costs ~ay amount to more than t>lo-thirds <br />the normal >later bill and these are costs that cannot be exactly forecast <br />for future years. <br /> <br />In considering the change-over to irrigation most farmers <br />feel they need to kno>l exactly what the >later bill >lill be during this <br />10-year peried. This is the time when land is leveled, farm ditches <br />are built and livestock herds are established. It is the most propitious <br />time for financial help from the Conservancy District. For these reasons <br />the Board of Directors has approved an arrangement whereby the >later bill <br />for each of the 10 years of the development period is stated in specific <br />dollar terms in the repayment contract. These annual charges are computed <br />by means of a "lO-percent-formula" so that the cost per acre increases <br />by 10 percent increments each year, reaching its full amount after 10 <br />years. This will leave a deficiency in payments for operation and <br />maintenance at the end of the development pericd and the Conservancy <br />District has agreed to make up this deficiency. <br /> <br />There are several advantages to ~his arrangement. First, <br />it allm;s farmel's to develop their lands over a peried of years <br />>lithout extensive use of credit, if they >lish to do it this >lay. <br />Second, it furnishes a cash incentive for rapid land development to <br />take advantage of 10>1 rates for water in the early years. Third, the <br />>later user can calculate his future costs >lith greater confidence and <br />precision. <br /> <br />5. Problem of ne~otiatinil; repayment contracts. These are, <br />like all contracts--especially all contracts involving the United States <br />Government--impressive appearing doc~ents. Fe>l people have the patience <br />and perseverence to study them thoroughly unless they are professionally <br />in the business of working with them. The Conservancy District has been <br />able to hire its o>ln experts so as to keep these negotiations from <br />appearing one-sided. I can assure you they l~ve done a complete job of <br />analyzing the first of these proposed contracts. This is a good arra.nge- <br />ment for both the Government and tbe water-user and better contracts <br />>lill be tbe final result, I am sure. <br /> <br />E-4 <br /> <br />~ <br />