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upr000153-021
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    University of Nevada, Las Vegas. Libraries

    To: Mr. W. H. Rulsiser 9-3 0 .24.9 2 - rat* in the City has been at the Unit, #5*00, for upward of 10 years. It should be understood the back country furnishes Insignificant support to the City by agriculture or stock rais­ing or other industry: the community is dependent upon the tour­ist business which assumes a commanding place in the local develop­ment because of prominence given to gambling - Nevada is the only state in the Union which legalises gambling. The population of the Valley which approximated ,5000 In 1930 increased to 10,000 in 19^0, to 26,000 in 19^9 is estimated will reach 80,000 by 1970. During the past five years the assessed valuation has increased about 30 percent. The growth of the community entails services beyond its financial capacity. The necessity for adequate water supply as contemplated by the District which would include the purchase of existing facilities and the construction of pipe lines and pumping equipment to supply water from Lake Mead,would require an expenditure variously estimated at between 10 and 15 millions dollars that cannot be financed under existing conditions. The amendment to the Water District Act in 19^9 provided for the issuance of general obligation bonds which would constitute a first lien on any revenue of the District, if such Issue is ap­proved by the electorate. Securing water from the Lake seems an impossibility except the cost be financed by the Federal Government: nor does it appear that funds can be found for the purchase of the LVL&W and LA&SL facilities, our continued ownership of which is, I be­lieve, an increasing liability. In considering the sale of our Companies' facilities, it should be understood the existing water supply is not un­limited: it would appear that water is being withdrawn at a rate.largely in excess of that at which the underground reser­voir can be replenished; that additional wells and woiks, the construction of which it is understood the Public Utilities Commission may request, would not Improve the situation with re­spect to recurring annual water shortages during the Bummer, since the peak of miter production has probably bean passed and that only a diminishing supply is now available: that shortages of supply are occasioned by consumers wasteful and extravagant use which we have been unable to effectively prevent or curtail, but which perhaps might be satisfactorily controlled if the ser­vice was furnished by the District: that the value of the physical properties of the Companies is dependent «q»cn the water right - the right to take water from the underground sources -