upr000062 216

10 ft: Ttm reduction m annual depreciation charges correeponds to the apjarasdsiete rates used In setting depreciation op for the distributing company and are the rates used by OMlsa in eoaputing the accrued depreciation. In ay opinion the 1*# and 1*0$ rates mm too low* Katas ppedleated on lives ranging fra 60 to 78 years will be sufficiently low In say opinion, However* If the rates are increased, the deduct 1cm fern depreciation will be increased* It Is under that the inclusion of an ad valorem tar cm the water production properties will be challenged inasmuch as there Is no special esaesmasnt made against these properties and no taxes paid as such* there Is no question but what such taxes sre proper to claim* but if such results in additional tea payments if this Company, there probably would be no advantage la pressing that position. A property tax of #4308 is paid the City of Las Vegas* which Is understood to arise iron an assessisents on the 1850 acres of lead* At the present time this payment is not charged for la the water billing to fcha XffLSHCo* Xa the estimates trade* this amount has been reduced la tbs relation of 400 acres to the I860 acres* or to $1861* and included in the cost of water. Tbs other items probably need no cessment* Other Expenses * XHtmMeMMaMMMIMIliieeHMMeeSHiMniSNie The Item of $25*000 for operation end maintenance likely doea not need to be dlaeueeed at this time* It la planned to have a break-down of this figure for support*