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<br />I <br /> <br />I <br /> <br />represents and 1,575 total non-city or rural taps on our system. How- <br />ever, as you mentioned, all these systems are increasing at a rate <br />in the 20 to 30% a year class. <br /> <br />Our city problem is not as severe as those of the rural areas. All <br />of the contracts include the possibility of terminating the rural <br />water in the event the city needs increase. We own the plant and all <br />the contracts include that provision. However, it is easier to <br />underwrite Frontier and come to a meeting to pass our problems on to <br />you than it is to shut off 1,500 customers in our rural areas. <br /> <br />Mr. Vandemoer: I am a little confused. Is this a multipurFose - in <br />other words, is there much irrigation water in this project? At <br />$35 per acre-foot, I would assume you are just about out of the irri- <br />gation business on this type of water, right? <br /> <br />Mr. Sparks: The allocation for irrigation has been reduced. Munici- <br />pal and industrial allocation is now 57,000 acre-feet and irrigation <br />9,000, a little over 6 to I, on municipal and industrial. <br /> <br />Mr. Vandemoer: Well now, when you talk $35 an acre-foot, would indus- <br />trial go higher and irrigation lower? <br /> <br />Mr. Sparks: No, the irrigation water is based upon the farmers ability <br />to pay. That will be priced based upon the farm budget. Irrigation <br />also is entitled to assistance from the power revenues of the Storage <br />Project Act. The M & I water is not entitled to any kind of assis- <br />tance. It has to pay its own way plus interest. <br /> <br />Mr. Austin: One thing by coincidence, we are now selling Tri-County <br />their treated water at $50 an acre-foot, eighteen cents a thousand. <br />So it is not a price that is completely unfamiliar. I thank you for <br />your time. <br /> <br />Mr. Stapleton: Thank you, Mr. Austin. We will not conclude the <br />Dallas Creek presentation' as there may be some questions. <br /> <br />We welcome you, Governor Love, to this meeting. As you can tell, we <br />are in full representation here today. The purpose, as you know, of <br />the meeting is to have presentations from each of the nine projects. <br />We have had a summary of the projects by the staff of the board. <br />We will be considering those plus the presentations today and we <br />will be forwarding to you our recommendations by tomorrow for the <br />priorities as we see them based upon staff recommendations and <br /> <br />-26- <br />