Mr. TURPIN. This is an amount to cover the sites and expenses of ny new projects that may be approved by the Public Works Commites. There are pending before the Public Works Committees now rojects for which the sites and expenses would total $16,176,000. Mr. YATES. Those have not yet been approved? Mr. TURPIN. No, sir. Mr. THOMAS. Mr. Yates, may I ask one question? Mr. YATES. Yes. Mr. THOMAS. What is your carryover in this account? Mr. TURPIN. The carryover, Mr. Chairman, from 1961 to 1962, is stimated at almost $17 million, but that really reflects the superision expense and so forth on buildings that are or will be put under onstruction; $6.1 million of that amount will be obligated during 962 and the remainder later, as construction progresses. Mr. THOMAS. For all practical purposes will you go into 1962 with ny unobligated funds? Mr. TURPIN. We will not have any carryover available for new projects. Any carryover balance has to be used for projects under construction. Mr. THOMAS. We thought we were giving you a little cushion. Will you have any unobligated funds you can carry into 1962 for ites and expenses? Mr. TURPIN. No, sir. We expect to have a small unobligated or uncommitted balance of about $3 million. Mr. THOMAS. The answer is $3 million, then? Mr. TURPIN. Yes, sir, but Mr. THOMAS. How do you arrive at this $3 million? Mr. TURPIN. Some part of that $3 million we anticipate will be needed for settlements on sites that will exceed the amounts deposited with condemnation proceedings. Mr. THOMAS. How do you arrive at this $5 million? Mr. TURPIN. That is just an amount in the budget for 1962 toward he site and expenses requirements for projects yet to be approved by the Public Works Committees. Mr. THOMAS. In the program you are submitting to the Public Works Committee for 1962, what amount will be needed for sites and planning? Mr. TURPIN. For those projects that are before the Public Works Committees now that have not been acted on, $16,176,000. Mr. THOMAS. Suppose they were to approve them? Mr. TURPIN. Then we could only do those that could be accomplished with the $5 million. Mr. THOMAS. Off the record. (Discussion off the record.) Mr. THOMAS. You are tying yourself down a little closer than $5 million, are you not? Mr. TURPIN. It would mean we could only do a selected number of those projects, yes, sir. Mr. THOMAS. Off the record. (Discussion off the record.) 1 Includes capital outlay as follows: 1960, $924,000; 1961, $1,737,000; 1962, $1,994,000. Mr. YATES. We will turn now to "Payments, public buildings purchase contracts." Miss Reporter, will you put pages I-108 through 110 in the record at this point. (The pages follow:) PAYMENTS, PUBLIC BUILDINGS PURCHASE CONTRACTS Summary reconciliation of 1962 estimate to 1961 funds 1961 Appropriation in annual act_. Principal and interest payments on 1 addi- $4,000,000 $791, 600 Provide for full-year tax payments on 20 408, 400 1962 estimate____. 1,200,000 5,200,000 GENERAL STATEMENT "Purchase contracts were executed to construct and acquire 29 specific buildings costing $52.9 million through lease-purchase arrangements under the Public Buildings Purchase Contract Act of 1954. Twenty-seven buildings have been completed, one will be completed during 1961, and the last one is scheduled for completion early in 1962. Nine of the completed buildings were acquired by outright purchase from "Construction, public building projects," pursuant to authority provided in Public Law 86-255 (73 Stat. 507). The estimate for 1962 provides for payments to contractors and taxing authorities on all 20 projects remaining under purchase contract." (From the Budget for 1962.) APPROPRIATION LANGUAGE For payments of principal, interest, taxes, and any other obligations under contracts entered into pursuant to the Public Buildings Purchase Contract Act of 1954 (40 U.S.C. 356), [$4,000,000] $5,200,000. JUSTIFICATION Payments to contractors and tax authorities.-Upon completion of buildings and acceptance by the Government, equal quarterly payments in arrears are made to contractors for amortization of principal with interest over 10- or 25-year contract periods. In addition, real estate taxes during construction and until title of the property is vested in the United States are paid directly to taxing authorities. The estimate of $5,200,000 for 1962 includes $4.021,000 for payment of principal and interest for the full year on 19 of the 20 projects still under lease-purchase, the remaining project, Sacramento, Calif., being for part year only, and $1,179,000 for taxes. Taxes are based on actual or published tax assessment and levy data adjusted to reflect known local customs and practices, or legal precedents. Details by projects are set forth on the following page. |