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JAM ES M. M ONTGOM ERY C onsulting E ngineer 15 N orth Oakland Avenue P asad en a 1, C a lifo rn ia M a rch 1954 B oa rd of D ir e c to r s L as V egas V a lle y W ater D is tr ict P . O . B ox 1448 L as V e g a s, N evada G entlem en: The accom pan yin g re p o r t su m m a rizes the en gin eerin g data p ertin en t to the p ro p o s e d sale o f bonds in the am ount of $ 8 , 700, 000 b y the L as V egas V a lle y W ater D is tr ic t. T h ese bonds a re to fin an ce the a cq u isition of existin g p ro p e r tie s and the con stru ction of p ro p o s e d im p rov em en ts as outlined in S ection 6 .0 8 of this r e p o r t. A bond m atu rity sch edu le is in clu d ed as T able I on page 11. I have b een d ir e c tly con cern ed with the w ater supply p ro b le m of the L as V egas V a lle y sin ce 1941. At that tim e, the fir m of J . M . M on tgom ery & C om pany, of w hich I was M anaging P a rtn er and C hief E n gin eer, d esign ed and su p e rv ise d the con stru ction of the fa c ilitie s fo r tran sm ittin g p ow er and w ater fr o m Lake M ead to the B a s ic M agn esiu m P r o je c t of the D efen se P lant C orp o ra tio n . It is p ro p o s e d that the L as V ega s V a lle y W ater D is tr ic t shall use a p o rtio n of the ca p a city of ea ch of these fa c ilit ie s . Such use b y the W ater D is tr ic t w ill re su lt in a co n sid e ra b le saving in the c o s t of tran sp ortin g w ater fr o m Lake M ead to the h eart of the L as V egas V a lle y . A cop y of the agreem en t betw een B .M . I. and the W ater D is tr ic t fo r the use of these fa c ilitie s has b een attached to the re p o r t as A ppendix A . The anticipated re v en u es, exp en d itu res, debt s e r v ic e , r e s e r v e su rp lu s, and ra tio of debt s e r v ic e co v e ra g e fo r the y ea rs 1954 through 1990 are shown in T able XI on page 43. T able VII, on page 38, show s that in cre a sin g am ounts o f w ater fr o m Lake M ead w ill be u sed until 1973, after w hich in cre a sin g am ounts of ground w ater w ill be u sed . In this con n ection it has b een assu m ed that the W ater D is tr ic t w ill continue its p re se n t use of ground w ater through 1973 and that any red u ction in o v e r a ll use due to the o v e rd ra ft of the b a sin w ould be m ade b y u se rs with p e rm its iss u e d after the b a sin b e ca m e overd raw n .