upr000096 17

Reprint from Las y(^as;Sun — Thursday,October 1,1953 < 82 Per Cent Of Voters O K Issue, 5836 to 1874 A record 82 per cent of the registered property owners of the Las Vegas Valley Water District yesterday approved by a majority of more than 3 to 1 an $8,700,000 bond issue to secure Lake Mead water, and acquire the local water util­ity from the Union Pacific Railroad. Complete semi-official returns showed that' there,, were 5836 “yes” votes and 1874 “no” votes, with a total vote of 7710 out of a registration of 9361. Proceeds from sale of the bonds will be used to install a pipeline and pumping system that will deliver an initial sup­ply of 13,750,000 gallons of Lake Mead water daily to the Las Vegas valley. Acquisition of the local water utility will give the District control of the Union Pacific’s, artesian well system which now furnishes an average of 13,300,000 gallons daily to Las Vegas residents. The financing plan, approved at yesterday’s special election, provides for the issuance of gen­eral obligation bonds, for the payment of which the full faith, credit and resources of the Dis­trict will be pledged. However* water district officials point out that the state law under which the district (Operates provides that bond principal and interest must be paid from revenues, and that adequate water rates be fixed for this purpose. In order to meet principal and interest payments on bonded debt, defray operating costs and set up adequate reserves, it is estimated that annual revenue of approximately $1,300,000 Will be required, all of which will be derived from water consumers. To produce this sum monthly bills for city residents will aver­age $6.50.; The average per capita water consumption in Las Vegas is 330 gallons daily. During the hot slimmer months this jumps to over 600 gallons daily. District officers anticipate that the bonds will be set up to ma­ture over a 30-year period, com­mencing in 1955 and running to 1984. However, establishment of a definite bond maturity schedule, redemption provisions and other features will be .de­ferred pending completion of a comprehensive bond issue “pros­pectus” which will be compiled immediately for presentation to security underwriting firms in­terested in handling the bonds. Preparation of the bond pros­pectus will probably be under the direction of an independent fiscal consultant to be retained by the District forsthat purpose, in order to furnish Complete and accurate details concerning the economic background of thp area, assessed valuation in rela­tion to total bonded debt and all phases of the construction pro­gram. In addition to the City of Las Vegas, the Las Vegas Valley Water District, which comprises an area of approximately 307 square miles, includes the cities Of North Las Vegas and Hen­derson, site of the $150,000,000 Basic Magnesium plant built by the Government during World War II. The plant is now owned and operated by private indus­tries which are engaged chiefly in chemical manufacture and the production of titanium metal. Nellis Air Field, one of the larg­est jet airfields of the United States Air Force, is also located in the District. , The law firm of O-Melveny & Myers, nf Los Angeles, national­ly recognized bond counsellors, has represented the District in all of its contract negotiations and bond proceedings. Jambs M. Montgomery, consulting engi­neer of Pasadena, who designed and supervised installation of the Basic Magnesium line and waterworks, has-been in charge of the District’s engineering.