Board Meeting 03/15/1984

• Board Meeting Date: 3/15/1984
• Description: Minutes, Agenda, Memorandums March 15, 1984
• Board Meetings - Doc Type: Meeting

III
Senator Fred Anderson
April 4, 1980
Page two
federal Water Supply Act of 1958 , annual interest charges of
3 .046 percent were deferred for a period of 10 years . This grace
period expired in 1979 and interest is now accruing at better
than $300 ,000 per year.
Proposal
I recommend that the General Assembly authorize the expen-
diture of monies from the Board's construction fund for the purpose
of entering into a contract with the United States to repay the
$9 .2 million construction cost, plus interest, which is allocated
to regulatory capacity (I suggest a $10 million authorization to
cover the accumulation of interest) . By assuming this reimbursable
cost, the State would obtain the right to market all or any portion
of the yield of the regulatory capacity of Ruedi Reservoir at such
prices as it may choose. In turn, the revenues so generated, minus
allocable operation and maintenance costs , would be deposited in
the Board's construction fund for use in the construction of new
projects .
This proposal is advanced with three considerations in mind:
(1) That a portion of the regulatory capacity should be
devoted to maintaining a reasonable recreation pool for the reser-
voir, which means that the marketable yield of the regulatory
capacity is likely to be less than 48 ,000 acre-feet,
(2) That the interests of the Colorado River Water Conserva-
tion District in this matter should be taken into account, and
(3) That there should be ample opportunity for input from
all interested parties into decisions about the sale of water from
the reservoir.
Discussion
The proposal to assume the repayment of the reimbursable
costs of Ruedi Reservoir has two major advantages :
(1) It is an investment which, in my considered opinion, is
likely to earn a good rate of return in the form of revenues from •