Imperial Valley press., 1938-03-08

Referring to your letter dated
Nov. 20, 1897, it is believed mad
ViSable to furnish estimates of the
probable maximum construction Ii
ability of the Imperial Irrigation
District under the All American
Canal contract, exclusive of the
Coachella branch at this time.
THE actual cost of the project
to September 80, 1887, including
Washington and Denver office costs
chargeable to the project, was $17,-
! 1853, ABS AS of the same date the
estimated cost to complete work
then under contract was approx
imately $5,718000. The work then
under contract, however, did not
include all work necessary to COM
plete the canal exclusive of the
Coachella branch. Since that date
additional work has been adver-
tised and there is considerable more
yet to be advertised. A close esti-
mate of this additional work can
not be furnished at this time
II regret being unable to furnish
you more definite information but
trust that this may be of some
value to you
In Table are given the con-
struction repayments to the United
States and payments on account
Of Laguna dam contract from 1888
to l945 by years and subsequent
changes. In 1888 and 1899 the total
fixed charges will be less than
100000, but from 1910 to 1914 they
will be between 100000 and $400,-
600 per year; subsequently, the
construction repayments will be
between $500000 and 100000 until
1855, and then between $750,0
and 100000 until the last payment
is made in 1878 These ranges in
payments arise from the aSsump-
ton Of minimum and maximum
construction costs. The probable
amounts will be roughly the average
of the values given.
Reduction BY Application
of Power Revenues
Under the terms of the All-Am-
erican Canal contract, the district
is obligated to apply surplus power
revenues on its obligation to the
United States. In Table 9 there is
given an estimate of the extent
of such reductions and the bal
ances due the United States under
that contract. AS in the case ol
the preceding table, minima and
maXima values are given corre-
spending to construction costs OF
S25 ,OOO. 900 and $30,O00000 for All
American Canal and appurtenanl
works chargeable to Imperial lrrl-
cation District, itself.
From 1898 to l945, the net amount
to be paid the United States OUT
of assessments or water VIII vary
between $4,000 and $224000 or be-
tween $4,000 and S274,000, depend
inc on the construction cost con-
sidered: thereafter, until 1853, Sucn
payments to the United States VIII
be between about $250,0OO and 35o'-
600. depending upon the total con-
strlction cost finally assessed
against Imperial Irrigation District;
subseouent to 1855, the annual
charges on account of All American
Canal increase so percent, and the
net payment to the United STATES
will then be at least quarter or
a million dollars more than curing
the ten-year period from l94o 10
1856
ITO be Continued)
Estimated Assessments
REQUIRED for Debt Service
For reasons set forth elsewhere
in this report it is believed that
neither power revenues nor water
tolls will provide any FUNDS LOT
service of the refunding bonds ana
warrants of Imperial 1rrigation
District. On the contrary, net pow
or revenues will probably not cover
more than about one-half OF the
construction repayments due tne
United States on account OF All
American canal, and water toils
NAV easily be insufficient to meeV
irrigation operation and mainteh-
ance expenses. 80
The net amount of money 10 De
raised by assessments for anhua,
service of all debts OF lmperiai
irrigation District is shown graph
ically on Diagram P. The require
ments in the past and estimates
for the future are both depicteo'
The amount to be raised by assess
ments on lands in the district loi
service of the refunding bonds anu
warrants and for payments oil the
balance due under the All Ameri-
can canal contract, not met by
power revenues, are also given in