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. . . .~ 'r'" .~ ~'l.j i BASALT PROJECT AGRICULTURAL ECONOMY AND FINANCIAL ANALYSES Construction cost Interest during construction Total net investment Annual operation and maintenance Replacement storage cost assigned from Colorado River Storage project Total Total cost $17,545,000 877,000 18, 1~22, 000 Average annual equivalent cost $503,000 49,000 52,000 604,000 Benefit-cost ratio Average annual benefits in the amount of $1,414,400 would compare with annual equivalent costs in a ratio of 2.34:1. If only direct benefits averaging $683,800 were compared with the costs, the ratio would be 1.13:1. Cost Allocations All reimbursable costs of the Basalt project inclucJ.ing construction costs of $17,545,000 and annual operation, maintenance, and replacement costs of $49,000 have been considered allocable to irrigation for this reconnaissance report. In future studies when fish and wildlife, recrea- tion, and other benefits are evaluated, it may be found that a portion of the project costs would be allocated to these other uses. Repayment The annual payment capacity Of the irrigators is estimated at $126,000. After subtracting the estimated operation, maintenance, and replacement costs of $49,000, a balance of about $77,000 or approximately $1.31 per acre-foot would be available for repayment of project costs. The payments by the irrigators would be collected by a water conservancy district that would be formed by the local residents to administer the project. In addition, it is estimated that about $1,000 would be collected each year from ad valorem taxes levied by the water conservancy district. Thus a total of about $78,000 would be available annually from local sources to pay toward construction costs. At this rate $3,900.000 or about 22 percent of the construction costs would be returned to the Fed- eral Government over a 50-year period. The remaining $13,645,000 would be repaid from the Upper Colorado River Basin Fund. 38