<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 />
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