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TKiim*.i 1G ‘ LIed C O P Y C O P Y Omaha - August J , 1952 PWC - New York BCC - WR Los Angs WHH Omaha (By Mail) No. 378. (l) & (2). General obligation bonds was intended to refer to a type of issue that would carry with it authority of the District to levy taxes if necessary to make up any deficiency in the revenues to cover operating expenses, interest and principal on the bonds. They do not constitute a direct lien on property in the District. (3) I understand the Lps Vegas Valley Weter Dis­trict would not be subject to Public Service Commission con­trol in matter of rates and would be in position to increase rates and install meters to produce sufficient revenue to cover its operating expenses and service the bonds, but in any event the District would be in position to levy taxes if nec­essary to pay interest and principal on general obligation bonds. (4) Bonds covering purchase price of our facili­ties would be part of a larger issue sufficient to also pro­vide funds for the construction of a pipe line from Henderson to Las Vegas to bring in additional water which the District is in position to obtain from Henderson. The total amount of the bond issue required has not yet been determined but our information is that it will be in the neighborhood of $7,500,000. (5) We have no opinion fronj any bond expert with respect to type of bond, security, interest rate, etc. that f o r m 2 i 9 1 - b —T h i n U N I O N P A C I F I C R A I L R O A D C O M P A N Y TELEGRAM 0 S1Z-46-5QOM