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<br />-. 7-~ <br />DjJ- JJ <br /> <br />For thoso re~sons it is inpractic~ble to ne~sure the north or valuo <br />of a dovolopuont suoh ~s tho Fryingpan-".rkans~s Projoot sololy in terns <br />of cost and ropaynent. The bonefit-cost ~nalysis Llore adequately evalu,," <br />ates the true effects. On the cost side it includes prinoipal, interest <br />during construction, interost on the total invesujent, and oxpenses such <br />as operation, naintenance, and replaeenont-all of y.hich are presented <br />as an annual cost. The bone,,"its include all r:easur~ble effects including <br />those stec_L::ing frcr.. invostnonts which are non,-reinbursable by law. \111en <br />~nnu~l benefits equal or exceod the total ~~u~l C0StS, the invostuent is <br />justified. <br /> <br />.'cs shovm in t,,-o:Le Ifl.. pap .5 of HoDo 187, the annual benefits exceed <br />tho annual costs in t.ho l'ati~' of 1048 to 1,,00, Tho direct benefits alone <br />excood the tot~l ~nnll:!.J. costs in the ro.tio of 100.5 to 1.00. The follow- <br />ing tabulation prosonts tho dorivation and couparison ef costs and revenues <br />covoring a 69-year period based upon thG dC1.ta u30d in tho Socrotary's <br />'Roport, pages 3-1'3, H.,D'J lR7" Thu ,,-vorago annuC1.l unpaid intorest over the <br />69-year lcoriod is ~2;270;:)OO fo-~ all fUllc"j.ons rcgardless of y;hothur the <br />investDunt is nenreintursablo er non-int'''I'cst bearing by Ian. This <br />intGrGst cost is nore '"h:m supported by benefits. <br /> <br />(a) <br />(b) <br />(c) <br />(d) <br />(e) <br />(f) <br />(g) <br />(h) <br />(i) <br /> <br />Total cost of project, inoluding interest <br />during construction. . . . . . . . . . . . . . ~179,492,OOO <br />;,nnual anortization in 69 YGars Ylith <br />interost at 2~% (factor: .030.56206)... <br />Total cost in 69 years, principal plus <br />intorost plus interust during oonstruction. . . <br />Total intorest cost (c) - (a) . . . . . <br />Total not project revenues, 69 years. . . . . . . <br />Less princip~l cost of project .. . . . . . <br />Interost pa;ynent~ 69 years (d) - (f). . . . . . . <br />Total unpaid interest, 69 yoars (d) - (g) . . . . <br />~verage annual interest (69 ycars) paid ~ tax- <br />payers in lieu of benefits r8coived by taxpayors <br /> <br />. . <br /> <br />.5,4IJ6,000 <br /> <br />378,.510,000 <br />199,018,000 <br />21.5,288,000 <br />172,898,000 <br />42,390,000 <br />1.56,628,000 <br /> <br />11 <br />~ j <br /> <br />2,270,000 <br /> <br />14. (b) Question - How c.1Uch interest on tho national dobt occasioned <br />by tho proposGd project ";[ould bo borne by tho lhtion IS taxpayors, ~ssUl:d.ng <br />ropa~"ent of the oonstruction cost os r8visod (inoluding interest during <br />oonstruction) in accordanco yli th the rC)?aynollt plan and ,:letllOd of finano- <br />ing presonted ~nd reco!JT.lGndGd in the plOlnning report of the Buroau of <br />Reolanation (dated JanUilT".{ 19.50), involving tho diversion and USG of the <br />interost oouponent of powor and nunicipol water supply rcvenuos for repay- <br />Dcnt of a substantial part of tho irrieation invostnent, and assuning a <br />reosonablo poriod of construction? <br /> <br />I <br />l <br />I <br />I <br />I <br /> <br />,~nswor - Tho cost and repayncmt estina tos oontained in the Substanti... <br />ating Report of January 19.50 wore roviscd by Seoretary ;lcKay's Report dated <br />April 30, 19.53; therofere, no analysis need bo ;:,ado of tho superseded repay- <br />ncnt pIon. <br /> <br />- 20 - <br />