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090833 1 (1980-05-28)

handle is hein.gao/gaobacucg0001 and id is 1 raw text is: UNITED STATES GENERAL. ACCOUNTING OFFICE 19 aWEGIONAL OFFICE SUITE 300-D, 240 W, 2TII AVENUE DENVER, COI.nRADo 80211 .. lMAY 218 1980 Mr. Joe D1. Hall,, Regional Director K' Lower missouri Region water and Power Resources Service Daaver Federal Center, Building 20 Ianver, Colorado 80225 Dear Hr. f)all: During our recent rviuw of ater and Power Resources Service water marketiug policier, ve identified two problems which warrant your attention. lie found that --some irrigation revenues collected to reimburse project operations and maintenance expenses froui sort-term contracts werc. octually credited1 to capital repayment and --none of the revenues derived from some short-term municipal and industrial water service contracts were used to reimburse operations and maintenance costs, le believe that the Congress intended project beneficiaries to. pay a fair share of project operating costs and that bnth of the above actions caused an increased chare of project operations and main- tenance costs to be shifted from project beneficiaries to United States taxpayers, The Water and Power Resources Service collected short-vcrm contract revenues frou irrigatoru on Donny and U1nconda Reservoirs to pay for operations and maintenance expenses, However, despite notification to the Commissioner stating that part of 'the pree included an operations and mnintennnce charge, all revenues from the irrigation contracts were credited to capital repayment. As a result of crediting all short term revenues to capital ropaymenl, the taxpayers were foiced to pay for virtually all project operations i and maintenance costs. le do not believe that Lhe Cogress intiended the taxpayers to pay for irrigators' operations and uin~tcnance expensEs. BEST DOCUMENT AVAILABLF L 0

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