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<br />400i
<br />52
<br />
<br />RUEDi D~ AND RESERVOIR, COLO.
<br />
<br />ited to amounts allocated to mWlieipal and industrial water supply.
<br />
<br />A summary of nonreimblll'Sltble and reimbursable costs follows:
<br />
<br />Amount
<br />
<br />Total project cost, Ruedi Dam and R~servoir____________________ ~12, 831, 000
<br />Assigned to FryinglJan-.ArkllDsus proJecL________________~______ i, 600, 000
<br />
<br />5,231,000
<br />
<br />Costs allocated to western-slope uses_____________________
<br />Less nonreimbursable allocations:
<br />Flood cOlllroL__________ _______________________
<br />Fish and wildlife______________________________
<br />
<br />llecreatioD_____________________________________
<br />
<br />$117,500
<br />1, 75i, 800
<br />55, 000
<br />
<br />1, 030, 300
<br />
<br />Reimbursable allocation to municipal and industrial water
<br />supplv________________________________________________
<br />Repayable int'erest during cODstructioD_________________________
<br />
<br />3, 300, 700
<br />169.400
<br />
<br />Total municipal and industrial water investmenL_________ 3,470,100
<br />
<br />Service for municipal ft7~d industrial water ~~pp]'y ,yj]~ be on. a
<br />deferred basis. A substantml demand for Illummpal ltnd mdustnal
<br />water will not occur until about 1975-approximately D years after
<br />Ruedi Reservoir will provide storage. Therefore, pro,"isions of the
<br />Water Supply Act. of lU58 (Pnblie Lltw 85-500) are apl'licable. This
<br />act provides 'that deferred 1.15e may extend not. in excess of 10 :years
<br />(interest free) and that allocatcd costs may not exceed 30 pcreent of
<br />the total east. of the storage works. In this ease the east of Rucdi Dam
<br />and Reservoir alloCltted to municipalltnd industrial water of $3,300,-
<br />700 comprises less thall 26 percent. of the. total project. cost.
<br />The rate uf interest under the 'Vater :;upply Aet of 1058 applicable
<br />to calculation of repayable interest during const.ruction and to amor-
<br />tization of the totltl investment ltfter the permissible deferred pe.riOlI
<br />is the computed average rate payable by the Treasury upon its out-
<br />standing murket.aule public obligations~ which are neit.her due nor
<br />callable for redemption for 15 years from date of isslIe. Fllrther, the
<br />appliCltble rate uf interest is computed ltS of the beginning of the
<br />fiscal year in which construction is initiated,
<br />As presently certified by the Secretltry of the Treasur.v, the interest
<br />rate to be used for fiscal yeltr 1060 is 2.600 percent. Since the bltse
<br />studies of interest during const.ruction for Ruedi Dam and R~servoi{"
<br />use UIl interest rate of 2Y2 percent, the repayable interest during ('...on-
<br />structioll associateu with municipal and indust.rial water supply is
<br />subject to upward adjustment. Revision of $160,400 at 2.5 percent
<br />intcrest to a rOllncleclmte of 2.7 percent yields $18:J,000 for acljusted
<br />interest during constrllction, The total municipal and industrial
<br />wltter ~supply investment th.en becomes $3,483,700, including the
<br />$3,300,100 of alloeated reservOIr eosts.
<br />Hepayment of this investment over a 50. year pel'iod with interest
<br />at 2.7 percent, plus allocated. annual operation, maintenance, and
<br />replacement costs, would reql1lre annuall'evenues as follows:
<br />
<br />Equivalent of investment, new revenues_____________________________ ~12j, 700
<br />Allocated Rnnual operation, maintenance, and rephH'€'lllenL__________ 2,300
<br />
<br />Totnl annual revenue________________________________________ 130,000
<br />
<br />Demand for storage water would increase in time in accordance
<br />with the rMe of urban growth '\1lcl the oil-shale industry, anel would
<br />va.ry inversely to annual precipitat.ion and st.reamtlows, In view of
<br />
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