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Rev. 4 -8 -69 <br />CHAPTER VII <br />FINANCIAL PROGRAM <br />A. GENERAL <br />The Water Supply and Storage Company is applying for a loan and <br />grant under the provisions of the Small'Reclamation Projects Act of 1956 <br />(Public Law 984, 84th Congress), as amended, for the construction of the <br />previously described project. <br />The principal purpose of the project will be to provide irrigation <br />benefits. Other benefits will be for fish and wildlife enhancement and <br />for public recreation. <br />In view of the multi- purpose nature of the project, and the different <br />methods set by law for reimbursement or non - reimbursement of funds <br />advanced, according to the several types of benefits derived, it becomes <br />necessary to evaluate separately, in terms of dollars, the various <br />benefits to be received from the project and to allocate the costs of <br />the project in accordance with these benefits or the single purpose <br />alternative cost, whichever is less. <br />B. BENEFITS <br />As stated in Chapter VI, the direct benefits to.irrigation are <br />estimated at $64,000 annually. However, such benefits to the irrigation <br />function are contingent upon completion of the Grand River Ditch <br />improvements which will be completed three years after completion of <br />the Dam, Spillway and Outlet Works. Thus, the full irrigation benefits <br />were adjusted to reflect this buildup, with a value of $61,200 being used <br />in the analysis. The total present worth of benefits of this amount in <br />each of 100 successive future years, calculated at an annual interest <br />rate of 4 -5/8% is $1,308,900. <br />Also in Chapter VI, the combined sport fishing and wildlife benefits <br />and recreation benefits are given as $49,500 annually. The total present <br />worth for 100 years at 4 -5/8% is $1,058,600 for these benefits. These <br />benefits are expected to become available at the end of the second construc- <br />tion year. <br />C. COSTS <br />1. Project Capital Costs <br />In Chapter V the total project capital cost estimates were <br />presented. These may be restated as follows in order to subdivide <br />engineering costs and to introduce Bureau of Reclamation partici- <br />pation: <br />.. <br />