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<br />. <br /> <br />c' <br /> <br />. <br /> <br />. <br /> <br />" <br /> <br />DAEN-CWP-A <br />SUBJECT: Fountain Creek, Pueblo, Colorado - Phase I General <br />Design Memorandum <br /> <br />". <br /> <br />". <br /> <br />5. Total project cost, based on October 1981 price levels, is estimated at <br />$7,100,000. The State of Colorado supports the proposed project but does not <br />concur in the financial participation requirements required by the President's <br />1978 proposed cost-sharing policy. Average annual benefits are $761,700 and <br />annual charges are $613,500, including non-Federal operation and maintenance <br />costs. Based on a 7-5/8 percent interest rate and a 100-year period for <br />economic analysis, the benefit-cost ratio is 1.2 to 1. <br /> <br />6. General legislation authorizing implementation of water resource projects, <br />the most recent being the Water Resources Development Act of 1976, generally <br />contained local cooperation requirements established by enactment of various <br />laws. The reporting officer's report contains information based upon <br />application of these traditional requirements. The Administration is <br />reviewing project cost sharing and financing across the entire spectrum of <br />water resource development functions and has submitted proposed legislation to <br />Congress for navigation projects. The basic principle governing the <br />development of specific cost sharing policies is that whenever possible the <br />cost of services produced by water projects should be paid for by their direct <br />beneficiaries. It also is recognized that the Federal Government can no <br />longer bear the major portion of the financing of water projects. New sources <br />of project financing, both public and private, will have to be found. While <br />specific policies applicable for the Fountain Creek project have not yet been <br />established, non-Federal interests can expect that, under the Administration's <br />financing and cost sharing principles, the level of their financial <br />participation will need to be significantly greater than in the past. <br />Accordingly, I generally concur with the Board, except I recommend <br />authorization to construct and to otherwise implement the project subject to <br />cost sharing and financing arrangements which are satisfactory to the <br />President and Congress. <br /> <br />;{~.:"" <br /> <br />Chief of Engineers <br /> <br />USA <br /> <br />2 <br /> <br />r <br /> <br />.' <br />