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V * U W E. E. Bennett Los Angeles, Calif. Dear Ed: Las Vegas, December Nevada 27, 19*4-8 I transmit herewith a suggested analysis of the water district act to be discussed at a meeting in your office on January *4-, 19*4-9* The act itself is quite ’’meaty and it was therefore not possible to condense the verbiage to any degree. ' X did however make certain notations as to other statutes involved where there is a reference in the act to a method ’’now provided by law". Sec. 18 authorizes the board of directors to obtain from Clark County an advance of funds to pay the preliminary organization, administration, and engineering, costs thereof. so advanced could then be used by the district for the purpose of "engineering and other investigations necessary for a comprehensive program of district development and to determine the cost of this development". It is my understanding that the board of directors has requested an advance from the County- Commissioners of $10,000.00 for the purpose of a survey and for organizational expenses. I further understand that the County Commissioners are favorably disposed to such an advance and that the same will be made under the provisions of Sec. 301*4- N.C.L. Supp. 19*4-1. I do not believe it is necessary to conduct a special election to authorize a bond issue and therefore no expense would be incurred by the district,, other than nominal incidental expenses in negotiating with bond purchasers. Sec. 16 authorizes the district to issue negotiable bonds uayable out of revenue-upon adopting a resolution for that purpose. However, it is questionable if a purchaser of such bonds could be found until such time as the district acquired facilities from which revenue would be produced. It is^equally questionable If the district could acquire such facilities, by eminent domain or otherwise, without the ability to pay for the same out of money raised through its revenue bonds. In other words, there is an apparent dilemma presented to the District unless a bond purchaser can be located to purchase the bonds on the reliance that the district will function as intended by the act and will acquire revenue producing . ? ; facilities for the payment of the bonds. Although subdivision 11 of Sec. 1 provides for a tax, it would seem that this is intended to relate to Sec. 18 of the act which brings into operation Sec. 3 0 1 *4-, 3015? uud 3016 N.C.L. Under Sec. 3016, Answering the first point raised by Mr. Reinhardt emergency as provided in Sec. 301*4- N.C.L. Supp. 19*4-1 S-nd to secure an emergency loan as provided therein. SSuucchh ffunds