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SECTION VIII: REVENUES 8 .0 1 . E stim ated R even ues. It is the obligation of the B oa rd of D ir e c to r s of the L as V egas V alley Water D is tr ict to fix w ater ra tes that w ill p ro v id e su fficien t in com e to m eet operation expenditures and debt s e r v ic e req u irem en ts (S ection l6d of the leg isla tiv e act creatin g the W ater D is tr ic t). In ord er to do this, as shown in T able XI, it would be n e c e s s a r y fo r the water ra tes to average $75 p er cu stom er p er year ($6. 25 p er month) at fir s t; and then red u ction s could be m ade to a p p ro x i­m a tely $50 p er s e r v ic e p er year ($4. 17 per month) b y 1978. The p resen t g r o s s incom e of the L as V egas Land and W ater C o m ­pany a v era g es app roxim ately $32 per s e rv ic e con n ection p er y e a r. An in c r e a s e in w ater ra tes to p rovid e an annual in com e of $75 p er s e r v ic e con n ection is not un reasonable, since it com p ares fa v o ra b ly with B e v e r ly H ills at $78, L o s A n geles at $56, San D iego at $80, and San F r a n c is c o at $78. T able XI show s that the anticipated w ater reven u es, after d ed u c­ting operatin g c o s ts , are exp ected to p rovid e debt s e r v ic e co v e ra g e of at le a s t 1.5 tim e s, with the average ra tio being 1. 7. One excep tion w as the year 1990 when the debt s e rv ic e ra tio is exp ected to be 0 .9 9 . The ra tio in the la st year was p u rp osely kept low , b eca u se it is t e W ater D is tr ic t 's intention to build up a contingency r e s e r v e in the e a r ly y e a r s , m aintain it through out the life of the bonds, and e ra se it in 1990. In Table XI, this r e s e r v e was m aintained at $525, 000 tor the life of the bon d s. -4 2 -