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<br />. <br /> <br />. <br /> <br />. <br /> <br />lr." (' <br />, ~ . ~ .., <br />..,v_ <br /> <br />Economic and Financial Analyses <br /> <br />>'i th highway improvement. The remlunl.ng one -half of the separable <br />capital costs, including project costs and associated interest during <br />construction, for recreation and local fish ani wildlife enhancement <br />are to be financed or repaid >'ith interest by a non-Federal operating <br />agency. The full allocation to irrigation, except for interest during <br />construction, is reimbursable without interest. Table 32 presents <br />the reimbursable and nonreimbursable allocations. <br /> <br />Recreation and Fish->'ildlife Reimbursement <br /> <br />The repayable interest during construction of $51,300 associated <br />>'ith one-half of the separable recreation and fish and >'ildlife costs <br />reflects an adjustment from the interest rate of 3-1/8 percent used <br />in project evaluation to the precise rate of 3.225 percent as certified <br />by the Secretary of the Treasury for use in fiscal year 1967. It is <br />anticipated that the actual interest rate applicable to these reimburs- <br />able costs >'ill be the rate specified for use in the fiscal year in <br />which construction of the Narrows Unit is initiated. <br /> <br />Provisions of the National Water Recreation Act, Public Law 89-72, <br />permit considerable latitude in the financing or repayment of the <br />reimbursable recreation and fish and wildlife enhancement costs by <br />the non-Federal operating agency, which is expected to be the Colorado <br />Game, Fish and Parks Department. These reimbursable costs total <br />$1,862,200, including $1,292,200 for initial recreation and fish and <br />wildlife development and $570,000, or one-half of the undiscounted <br />future recreation facilities costs totaling $1,140,000. Public Law <br />89-72 provides that the reimbursable obligation may be met by anyone <br />or a combination of the follo>'ing means: (a) the contribution of <br />state-acquired or state-owned lands that may be required for any part <br />of the total lands or rights-of-way needed for the Narrows Unit, <br />(b) state construction of any of the facilities or habitat required <br />on recreation and fish and wildlife enhancement and mitigatory lands, <br />and, (c) execution of a repayment contract to amortize with interest <br />all or any remaining balance of the cost sharing obligation within <br />a 50-year period. <br /> <br />Under the last method, the repayment obligation may be based <br />upon proceeds from user fees, a schedule of which would be contained <br />in the contract and be subject to review for adequacy at 5-year <br />in tervals . <br /> <br />99 <br />