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APPENDIX C E X T R A C T S O F N E V A D A L A W S P E R T A IN IN G T O T A X L E V IE S (1) A rticle X , Section 2 of the Constitution of N evada (adopted in 1936) provides as follow s: “ T h e 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, N evada Statutes, 1947, provides as fo llo w s : “ So far as is legally possible within the lim itations o f section 2 o f article X o f the consti­tution o f N evada, all bonds heretofore or hereafter issued by any city, tow n, 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 o f the issuing unit, and w ithout regard to any statutory o r charter tax lim itations now or hereafter existing, it shall be the duty o f the governing b od y o f such unit, or o f such other b od y as m ay be charged with the duty of levying taxes therein, annually in due season to provide for the levy o f taxes fully sufficient, after m aking due allow ance for probable delinquencies, to assure the prom pt paym ent o f all such principal and interest as they becom e due. In any year in w hich the total taxes levied by all overlapping units in any county in the state m ay exceed the limitation of five cents on the dollar im posed by section 2 o f article X aforesaid, and it shall becom e necessary by reason thereof to reduce the levies made by any or all such units, the reduction so m ade shall be in taxes levied b y such unit or units for purposes other than the paym ent o f their bonded indebtedness, and the taxes levied here­after fo r the paym ent o f 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 com ply w ith the lim itations of said section 2 of article X .” (3 ) Section 16c of the Las V egas V alley W a ter D istrict A ct (as amended by Chap. 130, N evada Statutes, 1949, and Chap. 307, N evada Statutes, 1951) provides in part as fo llo w s : “ In the event that the total taxes requested to be levied in any one year b y the district and the political subdivisions w hich overlap it should exceed fifty mills and reduction thereof shall becom e necessary by reason o f the restriction contained in section 2 of article X o f the constitution of N evada, the board charged w ith the duty o f m aking such reductions and allocations is hereby required to allocate to the district sufficient taxes to assure the paym ent to the district o f m oney sufficient to make certain the prom pt paym ent o f principal o f and interest on any bond o f the district w hich m ay 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 o f the State of N evada for the purposes o f chapter 233, Statutes o f N evada 1947, and the provisions o f said chapter shall be applicable to said district.” A P P E N D IX D E X C E R P T S F R O M C O N T R A C T F O R S A L E O F T H E L A S V E G A S W A T E R F A C IL IT IE S O F T H E L A S V E G A S L A N D A N D W A T E R C O M P A N Y Section 8. A s consideration for the conveyance to the D istrict o f the properties referred to in Section 1 hereof and for the other agreements and covenants herein contained to be perform ed by First Parties, except the perform ance by First Parties of any w ork pursuant to Section 5 hereof, the D istrict 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, T w o M illion Five H undred Thousand D ollars ($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 follow in g a m ou nts: (a) A ll paym ents made b y First Parties, or any of them, at any time, and the cost of all material furnished by First Parties, or any o f them, to contractors for w ork perform ed during the period, Septem ber 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 betterm ents to and extensions o f the water production, storage, transm ission and distribution facilities m entioned in subparagraphs .(b), (d ) and (f). of said Section 1. First Parties, and each o f 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 uncom pleted on the sale date, and the D istrict hereby agrees to assume, effective upon the sale date, all obligations and liabilities accruing for w ork perform ed subsequent to said sale date under any such contracts w hich have not been com pletely perform ed by all parties thereto on or prior to the sale date. T h e parties hereto agree to execute and deliver such further instruments and docum ents to make effective said assignments by First Parties and the assumption of such obligations and liabilities by the D istrict as m ay be requested by any party hereto. (b ) T h e actual cost o f labor and material and other amounts expended by First Parties, or any o f 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 ow n forces, (c ) T he am ount charged to investm ent account b y W ater Com pany, or any successor in ow nership o f its water distribution system, during the period, Septem ber 1, 1952, to a.nd including the sale date for additions and betterments to or extensions o f its distribution system above m entioned constructed by others under contracts made pursuant to Rule 9 o f the Rules and R egulations of the W ater Com pany on file w ith the Public Service Com m is­sion of the State of N evada and conveyed by -said others to the W ater Com pany, its successors or assigns. (d ) If the ledger value on the sale date of the autom otive equipment, shop equipment and materials and supplies transferred to the D istrict b y the W ater Com pany on the sale date exceeds the ledger value o f such property ow ned by the W ater Com pany on Septem ber 1, 1952, as stated in Section 1 (h ) hereof, such excess shall be added to the basic purchase price. (e) T h e balance upon the sale date charged to A ccou nt 113— A ccounts R eceivable in the books o f the W ater Com pany representing uncollected water accruals, w hich balance is hereby assigned to the D istrict effective upon the sale date. Section 10. There shall be deducted from the basic purchase price to be paid by the D istrict upon the sale date the follow in g a m ou nts: (a) T h e unrefunded amounts subject to refund as of the sale date under all contracts made by the W ater Com pany, or its successors in ownership for additions and betterments to and extensions of its said distribution system, pursuant to Rule 9 o f the said Rules and R egulations of the W ater Com pany or its successor or similar rules contained in the Rules 1