FLOOD05827 - Laserfiche WebLink

Home Browse Search

Column 14 - Annual Cost The annual cost is the anticipated total annual cost for the alterna- tive, sometimes r"ferred to as the total cost to society. It is the annual improvements cost in addition to the residual average annual flood damage cost. Secondary Benefits The secondary or auxiliary benefits are not easily measured in terms of dollars. Dollar values have not been assigned to these secondary bene- fits. The secondary benefits are numerous. A listing of types of such benefits is presented below: o Lowered groundwater table I I I I I I I I I I I I I I I I I I I damages to be incurred after improvements. Data prepared by the Corps of Engineers (March, 1977) was updated to 1979 based on bui lding cost indexes publ ished in Engineering News Record. Column 10 - Annual Improvement Cost The annual improvements cost is the total expected capital outlay for improvements. It is the summation of the annualized construction cost and right-of-way and O&M cost. Co I umn 11 -Annua I Net Benef it The annual net benefit is the difference between benefits of the average annual damage reduction and the annual cost of improvements. Column l2 - Present Worth of Net Benefits The present worth of the net benefits is the result of the continuous accumulation of the annual net benefit assuming a uniform flow and a 50- year compounding period with an interest rate of 6-7/8 per cent. Column 13 - Benefit Cost Ratio The benefit/cost ratio is the annual damage reduction divided by the annual improvement cost. The benefit/cost ratio shows the relative economic merit of each alternative. Evaluation of the secondary and intangible benefits is also an important consideration in the decision- making process. o Controlled rising groundwater table after urbanization Reduced street maintenance costs Reduced street construction costs Improved movement of traffic Improved pub 1 ic health environment Lower cost open space Lower cost park areas and more recreational opportunities Improved qual ity of streams Opportunities for lower building construction cost Opportunities for creating new water suppl ies Opportunities for lower insurance rates on private and Federal lands o o o o o o o o o o Intangible Benefits Natural resource planning organizations in recent years have begun to recognize the importance of the intangible components of resour~e util i- 65