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#3 - Mr. Wm. Reinhardt November 15, 1950 With the new revenue act of 1950, providing for 43$ for this current year and 45$ for 1951, and with every indication that a new and higher income tax will probably replace the present one for next year, it would appear that the minimum rate that should be used in testing earnings for the future would be 45$. The 38$ computations have been included merely for comparison with the year 1949. The proposed water rates developed will yield an increase of approximately $90,000 of gross revenue for the year or an over-all increase of 42.5$. Such increase is viewed as not unreasonable, as the average billing for water service in Las Vegas will still remain low as compared to most other cities and exceedingly low when the high per-capita use of water is taken into consideration. The increase to a residential customer of average size will be from about $2.00 to $2.70 per month. While some of the increases on a percentage basis are materially higher for the commercial classifications, the dollar billing must still be looked upon as low, both from point of view as to the dollar amounts paid and from the standpoint volume of water used. of the »generous In submitting this report it is the desire to ex­press appreciation for the full support and cooperation re­ceived from the Company. Particular acknowledgment is made for the data furnished by the Omaha office through Mr. W. H. Hulsizer, General Manager of Properties. In this respect, the capital base figures and related items were made through his office. Likewise, Mr. W. H. Johnson in the Los Angeles office and Mr. A. M. Polger, local manager of the Las Vegas poruto petrhtei esst,u dyh.ave been most cooperative and helpful through­ceived froCml Mors.e Bceonnnteatctt haansd bMre.e nR emnawiinctka.ined and advice re­On my own staff, Mr. R. L. Bertolacci, an engineer of broad experience, has had the immediate responsibility of maesnsti stofi ngth ei n smtaukdiyn gas three fleexctteendd edi n antahilsy siresp oarntd. the develop­Respectfully submitted, (Signed) Roy A. Wehe Roy A • Wehe