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A P P E N D IX C EXTRACTS OF N EVA DA LAW S PERTAINING TO TAX LEVIES (1) Article X, Section 2 of the Constitution of Nevada (adopted in 1936) provides as follows: “The total tax levy for all public purposes, including levies for bonds, within the state, or any subdivision thereof, shall not exceed five cents on one dollar of assessed valuation.” (2) Section 3 of Chapter 233, Nevada Statutes, 1947, provides a s : follow s: “So far as is legally possible within the lim itations of section 2 of article X of the consti­tution of Nevada, all bonds heretofore or hereafter issued by any city, town, county, school district or other political subdivision shall be payable as to both principal and interest from taxes fully sufficient for th at purpose to be levied on all taxable property within the boundaries of the issuing unit, and w ithout regard to any statutory or charter tax limitations now or hereafter existing, it shall be the duty of the governing body of such unit, or of such other body as may be charged with the duty of levying taxes therein, annually in due season to provide for the levy of taxes fully sufficient, after making due allowance for probable delinquencies, to assure the prom pt payment of all such principal and interest as they become due. In any year in which the total taxes levied by all overlapping units in any county in the state may exceed the lim itation of five cents on the dollar imposed by section 2 of article X aforesaid, and it shall become necessary by reason thereof to reduce the levies made by any or all such units, the reduction so made shall be in taxes levied by such unit or units for purposes other than the payment of their bonded indebtedness, and the taxes levied here­after for the paym ent of bonded indebtedness shall always enjoy a priority over taxes levied by each such unit for all other purposes where reduction is necessary in order to comply w ith the lim itations of said section 2 of article X.” (3) Section 16c of the Las Vegas Valley W ater D istrict Act (as amended by Chap. 130, Nevada Statutes, 1949, and Chap. 307, Nevada Statutes, 1951) provides in part as follow s: “In the event th at the total taxes requested to be levied in any one year by the district and the political subdivisions which overlap it should exceed fifty mills and reduction thereof shall become necessary by reason of the restriction contained in section 2 of article X of the constitution of Nevada, the board charged with the duty of making such reductions and allocations is hereby required to allocate to the district sufficient taxes to assure the payment to the district of money sufficient to make certain the prom pt paym ent of principal of and interest on any bond of the district which may have been issued w ith the pledge of the full faith, credit and resources of the district, and where bonds have [been] so issued, the district shall be regarded as a political subdivision of the State of Nevada for the purposes of chapter 233, Statutes of Nevada 1947, and the provisions of said chapter shall be applicable to said district.” A P P E N D IX D EXCERPTS FROM CONTRACT FOR SALE OF TH E LAS VEGAS W ATER FACILITIES OF TH E LAS VEGAS LAND AND W ATER COMPANY Section 8. As consideration for the conveyance to the D istrict of the properties referred to in Section 1 hereof and for the other agreements and covenants herein contained to be performed by F irst Parties, except the performance by F irst Parties of any work pursuant to Section 5 hereof, the D istrict shall pay to the F irst Parties, or to such party as F irst Parties shall designate, upon the sale date through the escrow provided for in Section 7 hereof, Two Million Five Hundred Thousand Dollars ($2,500,000.00) hereinafter called the “basic purchase price”, subject to the adjustm ents hereinafter stated. Section 9. There shall be added to the basic purchase price to be paid by the D istrict upon the sale date the following am ounts: (a) All payments made by F irst Parties, or any of them, at any time, and the cost of all material furnished by F irst Parties, or any of them, to contractors for work performed during the period, September 1, 1952, to and including the sale date under contracts executed by F irst Parties, or any of them, with contractors for the construction of all additions and betterm ents to and extensions of the w ater production, storage, transmission and distribution facilities mentioned in subparagraphs (b), (d) and (f) of said Section 1. F irst Parties, and each of them, hereby assign to the District, effective upon the sale date, all their rights under all contracts for the construction of such extensions, additions or betterm ents uncompleted on the sale date, and the D istrict hereby agrees to assume, effective upon the sale date, all obligations and liabilities accruing for work performed subsequent to said sale date under any such contracts which have not been completely performed by all parties thereto on or prior to the sale date. The parties hereto agree to execute and deliver such further instrum ents and documents to make effective said assignments by F irst Parties and the assumption of such obligations and liabilities by the D istrict as may be requested by any party hereto. (b) The actual cost of labor and material and other amounts expended by F irst Parties, or any of them, during the period, September 1, 1952, to and including the sale date for any of said additions and betterm ents to and extensions of the said w ater production, storage, transm ission and distribution facilities constructed by F irst Parties, or any of them, with their own forces. (c) The am ount charged to investment account by W ater Company, or any successor in ownership of its w ater distribution system, during the period, September 1, 1952, to and including the sale date for additions and betterm ents to or extensions of its distribution system above mentioned constructed by others under contracts made pursuant to Rule 9 of the Rules and Regulations of the W ater Company on file with the Public Service Commis­sion of the State of Nevada and conveyed by said others to the W ater Company, its successors or assigns. (d) If the ledger value on the sale date of the automotive equipment, shop equipment and m aterials and supplies transferred to the D istrict by the W ater Company on the sale date exceeds the ledger value of such property owned by the W ater Company on September 1, 1952, as stated in Section 1 (h) hereof, such excess shall be added to the basic purchase price. (e) The balance upon the sale date charged to Account 113—Accounts Receivable in the books of the W ater Company representing uncollected w ater accruals, which balance is hereby assigned to the D istrict effective upon the sale date. Section 10. T here shall be deducted from the basic purchase price to be paid by the D istrict upon the sale date the following am ounts: (a) The unrefunded amounts subject to refund as of the sale date under all contracts made by the W ater Company, or its successors in ownership for additions and betterm ents to and extensions of its said distribution system, pursuant to Rule 9 of the said Rules and Regulations of the W ater Company or its successor or similar rules contained in the Rules 1