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<br />In adkHtion to the sale of water asdiscussedabove,th'e Northern
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<br />.., Cot-orado' Watqr' Conservan'cy. D1'str1'ct is a,uthorizedund'erth.eCol1s.!'lrvancy
<br />. Distri'ctA:ct to levy a tax of 1/2' minonal1 real and person'al 'pi;'"Operty-
<br />"wtthi~.thet)i5tl'tct during the construction period, which can be increased
<br />to' ImiU after! the repayment period begins, . To date, the Board I1ftS
<br />levied only three-tenths of I-mill tax Which has been sufficient to meet
<br />all needs.
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<br />Irrigation Repayment Arrangements
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<br />Repayment of project costs allocated to irrigation is scheduled to
<br />be completed i~ 40 years, Power revenues wUI amortize with interest the
<br />project costs a~located to power and, in addition, win pay the remaining
<br />costs allocated! to irrigation which are not paid by the water users. Three
<br />contracts have ;been negotiated with the Northern Colorado Water Conserv-
<br />ancy District f~r repayment of irrigation costs. .
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<br />The first of these, executed July 5, 1938, obligates the Di$trict
<br />to pay one-half:of the construction cost of the project but not to exceed
<br />$25,000,000. :Payments will be made in 40 annual installments, the first
<br />20 of which wiU be $450,000 each, the third 10 will be. $500, 000 eacQ,
<br />and the fourth 1;0 will be $1, 100,000 each in order to liquidate the
<br />$25,000,000 obligation, The time at which these payments will begin
<br />will depend upo* the avaHabinty'of water.throughout the project system.
<br />At any time afte,r the construction of the project is completed or at any
<br />time when, in the opinion of the Secretary of the Interior, the project
<br />works have progressed to the point that the water supply to be furnished
<br />to the District c\m so be furnished, the Secretary may give written notice
<br />thereof to the District. If this notice is given before March 1 of any year,
<br />the first annual payment win become due on December 31 of the succeed-
<br />ingyear, othervy-ise the first installment will become due December 31 of
<br />the second succ4eding year. During the first period of operation and main-
<br />tenance, which ~s defined as the period ending December 31 two years prior
<br />to the initial ann~al repayment installment, any avaUable water may be . .
<br />rented to the wa~er users at a price not to exceed $1. 50 per acre-foot.
<br />The contract alsb provides for the District to operate and maintain certain
<br />of tJ;1e project wdrks direcUy allocable to irrigation, . for the Government
<br />to operate and m'aintain certain of the project works direcHy allocable to
<br />power generatiort, and for the Government and the District to share jointly
<br />the operation and maintenance costs of the remaining project workS.
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<br />A supplementaJ contract dated July 14, 1950, provides for the
<br />District to pay an additional $889, 000 to the United States, which amount
<br />represents the el3timated difference in cost between the present gravity
<br />system for supplying the NorthPoudre area and the pumping plant con-
<br />templated in the <l>riginal repayment contract.. This change in plan was
<br />requested by the pistrict to avoid the high operation costs of the pump-
<br />ing plant which w~re to be borne by the District and which were estimated
<br />to amount to apprbximately $60, 000 annually. . The $889,000 also will be
<br />paid in 40 annual installments of $22,225, under the same schedule as
<br />the original contract.
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