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Jan. 17, 1951. HFC e s t i m a t e d c o s t s o f o p e r a t i n g t h e w a t e r u t i l i t y in l a s (1) Undisr Water District (2) Under the Land and Water Company. ( ! ) Under the Water District (assuming utility purchased for Operating Distribution system, annual expense, est. Operating the wells and reservoirs, etc,, annually Bond burden on $1,500,000 bonds © 5$$ Annual depreciation as computed by HFC Additional office expense, Manager and office Additional equipment, motive and repair, etc total. $ This annual expense would require a 50$ increase in the flat rates for water now collected. (2) Under the Land and Water Company hereafter Operation of wells etc by U.P.RR $ Operation of distribution system by L&W Co. Taxes on RR property — 1.75$ on $800,000 Taxes on L&W Co, property- same on $ 800,000 Depreciation on RR property 4$ on $700,000 Depreciation on L&W Co property- 3$ on $700,000 Interest on capital invested of $2,000,000 @ 6% Pro-rating expense of rate hearing ft This annual expense, if allowed by the Public Service Commission, would justify a $0$ raise in the present water rate schedule. VEGAS 11,500,000,) 1 80,000 . 3 0 ,0 0 0 78,750 55,500 15,000 20,000 279,250 30,000 85,000 14,000 14,000 28,000 21,000 120,000 2,000 314^000