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APPENDIX C EXTRACTS OF NEVADA LAWS 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 as follows: “So far as is legally possible within the limitations 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 that purpose to be levied on all taxable property within the boundaries of the issuing unit, and without 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 prompt 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 limitation 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 byjsuch unit or units for purposes other than the payment of their bonded indebtedness, and the taxes levied here­after for the paymenFof Bonded indebtedness shall always enjoy a priority over taxes levied by each such unit for all other purposes wherTTediiction Is* necessary in order to comply with the limitations of said section 2 of article X .” (3) Section 16c of the Las Vegas Valley Water District Act (as amended by Chap. 130, Nevada Statutes, 1949, and Chap. 307, Nevada Statutes, 1951) provides in part as follows: “In the event that 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 prompt payment of principal of and inferesFbtTanyTjond of the district which may have been issued with the pledge of the full faith'crediFand resources of the”district, and where bonds have [been] so issued, the district sh^lTFe 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 PPEN D IX D EXCERPTS FROM CONTRACT FOR SALE OF THE LAS VEGAS WATER FACILITIES OF THE LAS VEGAS LAND AND WATER COMPANY Section 8. As consideration for the conveyance to the District of the properties referred to in Section 1 hereof and for the other agreements and covenants herein contained to be performed by First Parties, except the performance by First Parties of any work pursuant to Section 5 hereof, the District shall pay to the First Parties, or to such party as First 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 adjustments hereinafter stated. Section 9. There shall be added to the basic purchase price to be paid by the District upon the sale date the following amounts: (a) All payments made by First Parties, or any of them, at any time, and the cost of all material furnished by First 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 First Parties, or any of them, with contractors for the construction of all additions and betterments to and extensions of the water production, storage, transmission and distribution facilities mentioned in subparagraphs (b), (d) and (f) of said Section 1. First 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 betterments uncompleted on the sale date, and the District 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 instruments and documents to make effective said assignments by First Parties and the assumption of such obligations and liabilities by the District as may be requested by any party hereto. (b) The actual cost of labor and material and other amounts expended by First Parties, or any of them, during the period, September 1, 1952, to and including the sale date for any of said additions and betterments to and extensions of the said water production, storage, transmission and distribution facilities constructed by First Parties, or any of them, with their own forces. (c) The amount charged to investment account by Water Company, or any successor in ownership of its water distribution system, during the period, September 1, 1952, to and including the sale date for additions and betterments 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 Water Company on file with the Public Service Commis­sion of the State of Nevada and conveyed by said others to the Water Company, its successors or assigns. (d) If the ledger value on the sale date of the automotive equipment, shop equipment and materials and supplies transferred to the District by the Water Company on the sale date exceeds the ledger value of such property owned by the Water 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 Water Company representing uncollected water accruals, which balance is hereby assigned to the District effective upon the sale date. Section 10. There shall be deducted from the basic purchase price to be paid by the District upon the sale date the following amounts: (a) The unrefunded amounts subject to refund as of the sale date under all contracts made by the Water Company, or its successors in ownership for additions and betterments to and extensions of its Said distribution system, pursuant to Rule 9 of the said Rules and Regulations of the Water Company or its successor or similar rules contained in the Rules 1