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Show Questions and Answers Concerning Con-cerning Deer Creek Project Why does Deer Creek Project concern con-cern me? Water is the life blood of our prosperity. pros-perity. Deer Creek project proposes to assure us a constant supply. It is the only present feasible method by which such water can be obtained. Haven't we sufficient water in Utah valley? No. During 19j4 and similar drought years whole fields of crops were 'laid waste because there was no water for them. Lawns burned out and householders were ordered to cut their uses of water. Local Industries In-dustries were hampered, and others absolutely discouraged from entering enter-ing this city because of our uncertain uncer-tain water supply. Will the Deer Creek project assure is of a steady water supply and remedy these deficiencies? Yes: every skilled engineer who has carefully investigated the project proj-ect has assured us of its absolute feasibility. Just what is the Deer Creek Project? Proj-ect? The Deer Creek project is a plan to conserve the water resources of the Weber, Duchesne and Provo rivers, and utilize the water so conserved con-served for irrigation, culinary, and industrial purposes. How much will the project cost us? The estimated cost is $68 an acre foot if the large project which includes in-cludes the Duchesne tunnel is built. If the project is built without the tunnel the estimate is $70 to $72 per acre foot. The subscription contract provides that the Pleasant Grove-Lindon Grove-Lindon district shall oblige itself as a primary liability in the sum of $38,000. This does not mean, however, that the district will be required re-quired to pay the full $38,000. $38,000 bearing interest at 2 per cent it could hold these bonds in its vault, clip the interest coupons each year and form these coupons make its annual payments pay-ments for it 500 acre feet of water. At the end of 40 years it would have its water right paid in full and would still have the $38,000 in bonds in its vaults as its own property. Are there any "strings" on this amount, or any further cost? In addition to its primary liability, liabili-ty, the Pleasant Grove-Lindon district dis-trict will have a contingent liability which it would be required to pay only in the event that some other subscriber should , default, the Pleasant Grove-Lindbtt' district, together to-gether with other non-defaulting i subscribers, would be required to pay ! an additional amount to make up the amount owing by the defaulting subscriber. Subscribers in the project, proj-ect, including Pleasant Grove-Lindon can only be required to make up this default to the exterit of 35 per cent of their primary liability, or in t the case of Pleasant Grove-Lindon I not to exceed $13,300. In the event Pleasant Grove-Lindon is required to pay anything on this contingent liability it would receive its porpor-tionate porpor-tionate share of the water right of the defaulting subscriber, so it would not actually be paying pay-ing something for nothing, but would receive full value for what it might pay out on this contingent liability. In addition to this, the defaulting de-faulting subscriber, if an irrigation company, may have its mortgage foreclosed to help pay off its indebtedness. indebt-edness. In the event the foreclosure of the mortgage on the company's canal system and water rights broueht in enoueh monev to cav the i capacity in which water stored In wet years can be used in dry years. . . On the whole, have these reclamation recla-mation projects proven successful? Yes. Recently the government announced several had after a few years of operation more than 10 times repaid their cost. HERE'S THE QUESTION "Shall the Metropolitan Water Dist. of PI. Grove-Lindon enter into a contract con-tract with the Provo River Water Users Association for the purchase of 500 shares of stock in said As- I sociation and incur a principal In- I debtedness therefor in the sum of $38,000, and a contingent liability of $13,300?" AND HERE'S THE ANSWER "Y E S" O That is the maximum requirement on the primary liability. The district, dis-trict, under the contract, will pay only its proportionate share of what the project actually costs to build, not exceeding $38,000 as a primary liability. The government is not building the project to make a profit; prof-it; it only expects subscribers to pay the actual cost, no matter how much less that may be than the price mentioned in the contract. Besides we do not have to pay any interest, for the federal government is lending us all of it to be repaid in 40 years beginning one year after the project is in operation which will likely be in 4 or 5 years. Really, all we pay is 2 per cent of the principal princi-pal each year for 40 years and the ' project is ours. To put it another way, the federal government will build the project for us free of charge providing we will pay 2 per cent interest on the amount it cost the government to build it for 40 years. Or still another way to look at it if Pleasant Grove-Lindon Grove-Lindon had bonds amounting to default, then of course the contingent contin-gent liability of Pleasant Grove-Lindon and other subscribers would not be called upon at all. The subscribers sub-scribers to the project are generally regarded as being sound financially. The government would not take them unless it felt that they are sound, so there is very little likihood that the contingent liability will ever be invoked. ' As an individual wateruser, how will addition of this Deer Creek water effect my water rates? Probably not at all. In Salt Lake City a recent report by independent auditors and engineers showed Salt Lake City could purchase Deer Creek water and in addition buy a $5,000,000 aqueduct to carry . it to Salt Lake City without raising the water rate, levying a property tax, or borrowing. Such being the case in Salt Lake City, clearly no increase in water rates would be necessary in Pleasant Grove or Lindon where an equeduct is not required to deliver water. Suppose we do not need all this water immediately, can we store it or lease it? Yes. Holdover storage provisions have been provided in the contract for holdover storage In the reservoir and we can also lease the water to farmers or other cities which wish more until such time as we need it. Besides bringing us an assured water supply what other benefits does Deer Creek mean for Pleasant Grove-Lindon? Deer Creek's benefits to PI. Grove-Lindon Grove-Lindon will be many; this list is by no means complete, but serves to indicate in-dicate some of its advantages, immediate im-mediate and longtime. 1. The project will bring more in-'duties in-'duties to our district. A big aluminum Co. recently wished to locate lo-cate in Utah valley, but uncertain water facilities among other things caused it to postpone the move. 2. The project will employ thousands thous-ands of people during construction. i The project will take four or five ' years to build and will cost an estimated esti-mated $7,000,000. This docs not include in-clude the proposed aqueduct estimated esti-mated to cost $5,000,000. 3. Heavy construction orders will be placed in Utah county, bringing much money to local hv.sine.ss supply houses. 4. The project will stabilize Utah valley's farm Industry by assuring water at the strategic times to users. 5. Use of these waters under irrigation ir-rigation law will give Pleasant Grove-Lindon and other users a first claim against all comers. 6. The dam will provide wonderful wonder-ful new recreational possibilities. A lake formed above the dam means the joys of yachting, boating, fishing fish-ing and water sports will give an assured as-sured sporting center and splendid tourist attraction. 7. Never again perhaps will financing fi-nancing be possible without interest a decided boon. For Instance Boulder dam project users rli;nt now must pay 4 per cent annually on their nunc Investment. Once the principal Is paid off who owns the dam? The participating water users will, with only maintenance casta to be met each year. What Is the total capacity of the dam and what will be Its annual yield? Its total capacity will bn l.r0.000 acre feet, and the annual yield, 100,-000 100,-000 acre feet. Tills project 1 unl-qun unl-qun in that It Is a holdover reKcrvoIr carrying over 60,000 excenn acre feet |