The

The Los Alamos community budget estimates reflect support of expanding community affairs within Los Alamos County, N. Mex. The budget represents the needs of two communities of approximately 15,000 people comprised of atomic energy project connected personnel, their families, a minimum of nonproject connected citizens necessary in support of not only the Los Alamos community proper, but also the expanding Barranca Mesa and White Rock areas. increase in support required to maintain an adequate community standard of living will require an increase of $500,000 in fiscal year 1964 over the present fiscal year 1963 community budget of $6,779,000. The major reasons for an increase to a $7,279,000 budget are as follows: increased school plant and enrollment, increased support for the Barranca Mesa and White Rock areas, increases in maintenance costs which reflect in part merit and wage increases of the operating contractor, and increases in hospital costs offset in most part by increased medical center revenues.

Detailed justifications by category follow:

Municipal costs, $2,655,000. Of the total increase of $136,000 in this category, over the fiscal year 1963 level, $120,000 represents added school costs due to: (a) additional instructors needed to meet increasing enrollment; and (b) normal salary and merit wage increases for school teachers and related school administrative and support personnel. The remaining $16,000 increase for other municipal costs reflects increasing support required for the newly developed areas, conservation of health, ground erosion control, and municipal administration.

Utilities, $1,087,000.-The increase of $52,000 in this category over the fiscal year 1963 level reflects: (a) added services required to meet the needs of new housing construction; and (b) costs of merit and wage increases for the operating contractor personnel. This increase is more than offset by an increase of $75,000 in related revenues.

Real estate operations, $2,602,000.--The total increase of $264,000 in community requirements in fiscal year 1964 over the fiscal year 1963 level is for (a) heavier programed maintenance work on community homes and (b) normal salary and merit wage increases reflecting long-range contracts agreed upon with the operating unions in that area. Major refurbishing and repair is necessary to

maintain the housing units in a state of reasonable living conditions. The recent severe winter coupled with the aging of the structures has produced structural damage throughout the community.

Hospital, $935,000.-The $48,000 increase requested for this program in fiscal year 1964 over the fiscal year 1963 level reflects anticipated heavier usage of the medical facilities as the age of the residents at the community increases and the population continues to grow. The additional funds required are for additional support requirements among the various staff organizations of the hospital as well as for normal salary and merit wage increases. Most of the increase is offset by anticipated returns of $40,000 over the fiscal year 1963 revenue level. Summary of Oak Ridge community estimates

The estimated fiscal year 1964 assistance payment of $1,284,000 provides for continuation of essentially the current level of services. The entire payment is made to the city of Oak Ridge.

Summary of Richland community estimates

The increase in fiscal year 1964 is primarily due to the provision of $450,000 for individual heating plants in or adjacent to community facilities, schools, hospital, and miscellaneous city facilities transferred under Public Law 221, which are now heated from the central steam plant located in the Richland administration area.

Transfer of these facilities was accomplished with the understanding that the AEC would continue to furnish steam for heat, or in the event of the discontinuance of steam service, would provide independent heating arrangements for the facilities affected. Construction of a new Federal office building in Richland beginning in fiscal year 1964 will result in removal of the existing steam plant, and will, therefore necessitate the construction of individual heating units for the facilities transferred.

PLANT AND CAPITAL EQUIPMENT

COMMUNITY PROGRAM-PLANT AND CAPITAL EQUIPMENT OBLIGATIONS

1. Project 64-j-1-Water distribution system, phase II, White Rock, Los Alamos, N. Mex., $625,000

This project provides for (a) waterlines for an additional 300 lots in the nonGovernment-owned communities being privately developed in or near White Rock, N. Mex., and (b) a million gallon water storage facility with appropriate master waterline necessary to meet domestic and fire safety needs. The water storage and master line is also being designed as an integral part of the technical area water distribution system. Present waterlines have been designed to meet the needs of the first increment of home construction at White Rock. Further home development in the area will require the extension of the present system. Under the existing contract between the Atomic Energy Commission and the private developer, AEC is responsible for an adequate water distribution system to provide for a total of 209 homes at White Rock which the developer must complete by June 30, 1963. At that time, the present developer may wish to exercise his option to continue building homes through a second increment of the project, or in the event that he does not exercise such option, AEC may go out for new bids to continue development of the area. In either event, AEC must have authorization to provide necessary water distribution lines at the time that negotiations are carried out to cover further increments of home development. Similar water requirements may be generated at new residential sites such as "Pajarito Acres" adjacent to the present White Rock development.

2. Project 64-j-2—Classroom additions, Barranca Mesa Elementary School, Los Alamos, N. Mex., $224,000

This project provides for the construction of a six-classroom wing plus an additional kindergarten room for the Barranca Mesa Elementary School which will be necessary based upon school enrollment projections through fiscal year 1965. The school presently has a classroom capacity for approximately 180 to 200 students. By fiscal year 1965 there will be a requirement for 342 students, assuming 285 homes with an average of 1.2 elementary students per family.

3. Project 64-j-3—Additional water well, Los Alamos, N. Mex., $194,000

This project provides for the development of a new 720,000-gallon-per-day water well for both community and laboratory requirements at Los Alamos. The current firm yield of potable water from Los Alamos community well fields is 6,160,000 gallons per day as opposed to peak summer demands of almost 6,800,000 gallons per day. Although it is anticipated the 6,800,000-gallon demand will increase in the future, this project is sized to the present pumping capacity.

The capacity of the present well field to meet peak demands may be further reduced by the fact that an existing well is only producing at one-half designed capacity due to heavy sanding and it appears the well may have to be abandoned. 4. Project 64-k-General plant projects, $774,000

This project provides for Los Alamos community capital improvements of a minor nature essential to the administration of the town. These items include improvements, extensions, additions, alterations, and/or new construction of minor structures, buildings, streets and roads, utility systems, and other similar work. A large portion of the items included is capital improvements for services usually provided by the average city or county government. Because of the ter

rain of Los Alamos, the site's remoteness, and its unusually severe climatic conditions caused by its location high in a mountainous region, replacement and rehabilitation constitutes a large part of the work performed.

5. Project 63-CDP-Community disposal project, Los Alamos, N. Mex., $4,329,000 This project provides for a number of community disposal construction subprojects authorized by the 1962 amendment to the Atomic Energy Community Act of 1955. Items included are new school facilities, a new fire station, development of additional lots for private homebuilding, road and street improvements, a Los Alamos County court and administrative facility, as well as rehabilitation of the community utility systems. To carry out the provisions and purposes of the Disposal Act, and to assure that the local government is not placed in the position of having immediate requirements for capital improvements, it is necessary that the Federal Government construct, modify, and expand certain of the municipal installations and utilities within Los Alamos County. Regardless of whether the community is disposed of, all of the items proposed, except the county court and administrative facility, would be undertaken by the AEC in the normal course of events as line item projects in the regular budget process. The phasing of obligations between fiscal year 1964 and later years reflects a careful review of proposed work with close regard toward master plans for the disposal of the community. The subproject estimates are as follows:

Section B-Obligations for capital equipment not related to construction

The slight increase requested over the fiscal year 1963 level reflects additional hospital equipment required. Of the $91,000 requested, $41,000 is for school equipment needs, $42,000 for medical center requirements, and $8,000 for miscellaneous community support items. The equipment required in fiscal year 1964 consists of such items as sirens for emergency vehicles, mowers, card catalogs for the library, an accounting machine, medical furniture for patient use at the hospital, an operating table, recovery room stretchers, and related hospital items,

Mr. EVINS. We note that you are requesting this amount of money for an increase of $1,046,000. We thought with the sale of Oak Ridge, turning it into a private community, and cutting down on the community programs, that this operating cost would be reduced.

It has increased over $1 million, and will you tell us why there is this increase?

22-502-63-pt. 6- -25

General BETTS. You will recall, sir, that the disposal legislation made provision for making contributions to the communities for some 10 years after the date of the disposal legislation, to make up for the lack of a tax structure which a normal industrial activity in a community might contribute to the community.

DISPOSAL OF COMMUNITY FACILITIES AT LOS ALAMOS

That is the source of some of this cost, and, of course, in the community of Los Alamos, our disposal legislation has only reached the planning and platting stage in the early part of that activity, and we have not disposed of any part of the Los Alamos community as yet. Mr. EVINS. The committee notes that $7,279,000 is included or an increase of a half a million dollars.

Public Law 84-221 provides, as you have indicated, for the disposal of this community. What progress is being made toward terminating Government ownership and management?

General BETTS. We have made some considerable progress in getting underway with a community disposal effort. The plotting of the community is well underway.

We have established a planning committee at the community level which meets as frequently as once a month, to work out the problems and bring the new county government into the activities that are going forward.

Mr. EVINS. Why is the new county building to be built at a cost of $750,000, charged against the Federal Government?

General BETTS. Our problem here is that we want to leave the community in an operating condition. The kind of activities that have been related to what would be county government have in a large measure been carried out within the AEC management structure or in some measure in a World War II constructed building that is totally inadequate for the purpose.

ASSISTANCE PAYMENTS TO OAK RIDGE, TENN.

Mr. EVINS. The $1,284,000 assistance payments to the city of Oak Ridge, how much does this amount represent of the total cost of the city government?

Mr. CORSO. This has been worked out with our local office and the city government, and I believe this represents about one-fourth of the total cost of the operation of the city of Oak Ridge for this year, sir.

Mr. EVINS. What other Federal funds, if any, does the city receive? Mr. CORSO. No other Federal funds.

Federal assistance for schools is included in our assistance payments to the municipality.

Mr. EVINS. When will this assistance be reduced?

Mr. CORSO. The law provides for the assistance payments to continue for a period of 10 years after takeover, the amount of the assistance payments being in accordance with certain criteria which are also specified in the law, particularly with respect to the level of municipal services so as not to impair the operations of the Atomic Energy Commission there.