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<br />."''J <br /> <br />. <br /> <br />. <br /> <br />" <br />r <br />... <br /> <br />CHAPTER VI II <br /> <br />FINANCIAL PROGRAM <br /> <br />The purpose of this chapter is to demonstrate the financial <br /> <br />feasibility of the proposal. The Board should be consulted re- <br /> <br />garding appropriate procedures for this determination. A brief <br /> <br />outline of elements that may become necessary to this demonstra- <br /> <br />tion follows: <br /> <br />A. Make an allocation of project costs to each of the <br /> <br />project purposes, such as, irrigation, M & I water, <br /> <br />etc;, and explain its development. <br /> <br />B. Develop an analysis showing how the costs allocated <br /> <br />to each purpose will be distributed to each source <br /> <br />of the project construction. <br /> <br />C. Explain how the revenueS will be derived to pay the <br /> <br />reimbursable project costs allocated to each purpose. <br /> <br />Show that the water rates, etc., will not exceed the <br /> <br />values developed in Chapter VII. <br /> <br />D. Include a payout schedule showing each major item of <br /> <br />income and e~pense, principal and interest payment <br /> <br />. <br />on construction fund and for each year of the repayment <br /> <br />period. Explain the source of the data shown in each <br /> <br />column of the schedule. The emergency operating reserve <br /> <br />shown should be accumulated preferably in equal annual <br /> <br />amounts, over the first 10 years of the repayment per- <br /> <br />iod. The total amount of the reserve is dependent upon <br /> <br />the amount of the annual OM & R costs, exclusive of <br /> <br />water costs. <br />