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<br />Oj173'1 <br /> <br />year with interest at 2-1/2 percent on the unpaid balance. Follovring <br />repayment of municipal water investment the'net revenues .vould be <br />applied on the irrigation d'lbt for 10 years, paying a total of - <br />~3,774,OOO. The irrigation debt borne by the irrigators, $44,784,000, <br />Hould be repaid vn.thout interest in a period of 72 years. <br /> <br />4.(b) Question - "hat arc the present prospects that the cities mxl <br />~ will provide their ovm facilities? <br /> <br />Ans"ler - It is impossible at prosent to d "termino nhethGl' or not <br />tho cities and tovms of the Arkansas Valley can provide the required fa- <br />cilities by private financing. Facters motivating in favor of private <br />financing are that such faciliti<::s could possibly be constructed at loner <br />cost by privato enterprise and, probably moro important, tho cities and <br />t01"iTIS rmuld enjoy more freedom frem Government restrictions ii' thCV arc <br />able to privately finance and construct the required facilities. On <br />the other hand there arc certain inherent legal problems pertaining to <br />organization ~~d financing which could be extremely dii'ficult of solu- <br />tion. This question is discussed at greater length in a lett8r from <br />Mr. Charles J. Beise, attorney fer the Hater Dcvelopl'lCnt Association of <br />Southeastern Colorado. A copy of this lotter is attached as a.xhibit A. <br /> <br />Attention is called to the reeemmendation included in the Project <br />Planning Report - paragraph F, page 41, H.D. 187 - It is recommended <br />that "F. Allor any part of the specii'ic municipal vlater supply <br />systems described in this report be constructed by the Secretary of the <br />Interior, only after satisfactory cvidence is prescnted to the Secre- <br />tary of the Interior that it would be infeasible for the cornnunities <br />involved to construct or to finance the constructicn of such werk them- <br />selves, singly or jointly. II <br /> <br />4. (c) Question - Assuming elimination of municipal '"',':Iter supply <br />features of project, furnish detailed information on costs and finan- <br />cial aspects in parallel vlit, , quc,stions 1, 2 and 3. <br /> <br />,tnswer - The projoct construction costs, vlithout, the specii'ic <br />mtmicipal water supply facilities, arc segrogated into the rJnjor projoct <br />purposes in table 6. This table also shows the allocation of construc- <br />tion costs, annual operation, r.uintcnonce and replacemont costs, and <br />interest dl~ing construction to the several project purposes. <br /> <br />,\ detailed on<Jlysis of the project repc.yment is ]I esented in t "blc <br />'I J Financial Study No.2. This table also shows the source Clnd ar"ount <br />of armual irrigation and municipal wa'cer revenues. The source and amount <br />of power rcvenues arc the S3Jl!C as shmm on t"ble SA, Power "ystcn ;lVorage <br />Rate and Repayment Study No. I-A. <br /> <br />- 4 - <br />