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<br />. <br /> <br />. <br /> <br />. <br /> <br />EXISTING FACILffiES - FLORIDA PRO.JECT (CONTINUED) <br /> <br />9 <br /> <br />Q. Source of assistance - Upper Colorado River Basin Fund Power Revenues <br /> <br />R. Policies and repayment contracts <br /> <br />RECLAMA nON'S SMALL TRACT POLICY <br /> <br />Current Reclamation policy states that water service to owners of small tracts of 2 <br />acres or less and to owners of tracts between 2 and 10 acres that would produce less <br />than $5,000 of gross annual sales offarm commodities is categorized as <br />noncommercial irrigation use and will be treated the same as M&I service for <br />repayment purposes where it is determined to be legally permissible. A "rollover" <br />provision will be included in new and renewed repayment contracts to permit <br />reallocation of costs from interest-free irrigation to interest-bearing M&I as <br />subdivision occurs and water use changes from commercial irrigation to <br />noncommercial irrigation (equivalent to M&I). <br /> <br />Reclamation's repayment contracts since 1975 (Animas-La Plata and Dolores) have <br />provisions for account charges, ad valorem taxes, M&I water conversions, and small <br />tract policies. These provisions either discourage subdividing or at least recover more <br />revenue for the United States as subdivision occurs. However, Reclamation's <br />repayment contracts prior to 1975 (Hammond, Florida, and Pine River) did not <br />contain such provisions. While these are desirable provisions to the United States, the <br />most expeditious way to incorporate this policy is to have each District voluntarily <br />amend its repayment contract to include this language. Reclamation would require <br />such provisions if the contracts are amended for a supplemental benefit or some other <br />such reason in the future. <br /> <br />S. <br /> <br />Repayment Contracts <br /> <br />A copy of the repayment contract and the contract between the Southern Ute Indian <br />Tribe and the United States are included at the end of this section. <br /> <br />T. District Procedures <br /> <br />The Districts procedures for reallocation and transfer of water allotments are attached. <br /> <br />lI<.. 1/10/97 - PR~UMIH"'RY - SU8.JECT To REVISION - FOR DISCUSSION PURPOSES ONLY. * <br />