ANNUAL REPORT. Las Vegas Valley Water District, Nevada

ANNUAL REPORT Financial Information and Operating Data Pursuant to Amended SEC 15c2-12 June 30, 2008

BOARD OF DIRECTORS Chip Maxfield, President Rory Reid, Vice President Susan Brager Tom Collins Chris Giunchigliani Lawrence Weekly Bruce L. Woodbury Patricia Mulroy Richard J. Wimmer Thomas A. Minwegen Kay Brothers Cary M. Casey DISTRICT ADMINISTRATION General Manager Deputy General Manager, Administration Deputy General Manager, LVVWD Eng/Ops Deputy General Manager, SNWA Eng/Ops Director of Finance BOND AND SPECIAL COUNSEL Swendseid & Stern a member in Sherman & Howard, L.L.C. 50 West Liberty Street, Suite 1000 Reno, Nevada 89501 (775) 323-1980 FINANCIAL ADVISORS Hobbs, Ong & Associates, Inc. Public Financial Management, Inc. 3900 Paradise Road, Suite 152 1201 Third Avenue, Suite 5320 Las Vegas, Nevada 89169 Seattle, Washington 98101 (702) 733-7223 (206) 264-8900

TABLE OF CONTENTS I. Securities Offerings Subject to Continuing Disclosure...1 Page II. Continuing Disclosure Undertaking...2 III. General Financial Information and Operating Data Applicable to the Las Vegas Valley Water District...3 The following document(s) have been submitted separately to the repositories and are incorporated herein by reference:!, Comprehensive Annual Financial Reports for the fiscal years ended June 30, 1996 through 2008.! Official Statements for the following bond issues: Date of Issuance Original Amount Principal Outstanding June 30, 2008 CUSIP Base REVENUE BONDS: Water Improvement and Refunding Bonds (2003A Bonds) 01/01/03 $168,685,000 139,480,000 517840 Refunding Bonds (2003B Bonds) 01/01/03 250,000,000 219,295,000 517840 Water Refunding Bonds (2005A Bonds) 05/04/05 302,425,000 277,845,000 517840 Refunding Bonds (2005B) 05/04/05 27,925,000 13,695,000 517840 Water Improvement Bonds (2006A Bonds) 06/15/06 151,555,000 151,555,000 517840 Adjustable Rate Water Improvement Bonds (2006B) 07/20/06 75,000,000 75,000,000 517840 Adjustable Rate Water Improvement Bonds (2006C) 07/20/06 75,000,000 75,000,000 517840 Improvement and Refunding Bonds (2008A) 02/19/08 190,760,000 190,760,000 517840 Improvement and Refunding Bonds (2008B) 02/19/08 171,720,000 171,720,000 517840 Appendix 1 includes the Official Statement cover page, the debt service schedule and the CUSIP numbers for each bond issue included in this Annual Report.

I. Securities Offerings Subject to Continuing Disclosure Pursuant to Amended SEC Rule 15c2-12 (the Rule ), the Las Vegas Valley Water District (the District ) is required to provide ongoing secondary market disclosure for municipal transactions effective on and after July 3, 1995. Annual information is provided and distributed to each Nationally Recognized Municipal Securities Information Repository ( NRMSIR ) recognized by the Securities and Exchange Commission ( SEC ) and to the state information depository ( SID ), if one exists. The following municipal securities transactions are included in this annual report: Date of Issuance Original Amount Principal Outstanding June 30, 2008 CUSIP Base REVENUE BONDS: Water Improvement and Refunding Bonds (2003A Bonds) 01/01/03 $168,685,000 139,480,000 517840 Refunding Bonds (2003B Bonds) 01/01/03 250,000,000 219,295,000 517840 Water Refunding Bonds (2005A Bonds) 05/04/05 302,425,000 277,845,000 517840 Refunding Bonds (2005B) 05/04/05 27,925,000 13,695,000 517840 Water Improvement Bonds (2006A Bonds) 06/15/06 151,555,000 151,555,000 517840 Adjustable Rate Water Improvement Bonds (2006B) 07/20/06 75,000,000 75,000,000 517840 Adjustable Rate Water Improvement Bonds (2006C) 07/20/06 75,000,000 75,000,000 517840 Improvement and Refunding Bonds (2008A) 02/19/08 190,760,000 190,760,000 517840 Improvement and Refunding Bonds (2008B) 02/19/08 171,720,000 171,720,000 517840 Appendix 1 includes the Official Statement cover page, the debt service schedule and the CUSIP numbers for each bond issue included in this Annual Report. Page 1

II. Continuing Disclosure Undertaking The Las Vegas Valley Water District (the District ) has covenanted to provide ongoing disclosure of certain annual financial information and operating data with respect to the District of the type specified in the respective original offering documents of the municipal securities transactions subject to the Rule. This Annual Report provides financial information and operating data for the period ended June 30, 2008. The District has also covenanted to provide the District s annual financial statements, prepared in accordance with generally accepted accounting principles, audited by a firm of certified public accountants or the legislative auditor as required by the laws of the State of Nevada. In addition, the District covenants to provide or cause to be provided, in a timely manner, to the MSRB and to any SID, notice of the occurrence of any of the following events with respect to the Bonds if any such event is material: (1) principal and interest payment delinquencies; (2) non-payment related defaults; (3) unscheduled draws on debt service reserves, reflecting financial difficulties; (4) unscheduled draws on credit enhancements, reflecting financial difficulties; (5) substitution of credit or liquidity providers, or their failure to perform; (6) adverse tax opinions or events affecting the tax exempt status of the Bonds; (7) modifications to rights of Bondholders; (8) bond calls; (9) defeasances; (10) release, substitution or sale of property securing repayment of the Bonds; or (11) rating changes. Nationally Recognized Municipal Securities Repositories The annual financial information covered by the continuing disclosure undertaking(s) for all municipal securities transactions subject to the Rule will be provided to the following repositories annually within 9 months of the end of the fiscal year: Bloomberg Municipal Repository 100 Business Park Drive Skillman, NJ 08558 Interactive Data Pricing and Reference Data, Inc. Attention: NRMSIR 100 William Street, 15 th Floor New York, NY 10038 Standard & Poor s Securities Evaluations, Inc. 55 Water Street, 45 th Floor New York, NY 10041 DPC Data Inc. One Executive Drive Fort Lee, NJ 07024 Page 2

III. General Financial Information and Operating Data NET PLEDGED REVENUES Las Vegas Valley Water District Fiscal Year Ended June 30 2004 (Actual) 2005 (Actual) 2006 (Actual) 2007 (Actual) 2008 (Actual) REVENUES: Total Operating Revenues 1/2/ $ 335,377,436 $ 351,730,572 $ 449,148,467 $ 377,460,151 $ 355,208,388 Facilities Connection Charges 13,881,161 14,486,508 17,066,958 11,242,682 7,856,260 Investment Earnings 3/ 2,790,182 5,089,212 2,295,079 7,580,944 3,871,170 Total Revenues: 352,048,779 371,306,292 468,510,504 396,283,777 366,935,818 OPERATING EXPENSES: Total Operating Expenses 1/4/ 287,842,126 311,851,835 418,824,391 347,731,672 312,112,789 Net Pledged Revenues: 5/ 64,206,653 59,454,457 49,686,113 48,552,105 54,823,029 Annual Debt Service Payable on Superior Lien Obligations: 6/ $ 46,624,051 $ 48,546,901 $ 47,271,947 $ 51,910,083 $ 52,134,194 Coverage 1.38x 1.22 x 1.05 x 0.94 x 1.05 x 1/ Includes SNWA charges (Regional Connection Fees, Regional Commodity Fees and surcharges) that are paid to SNWA as operating expenses. In 2007, SNWA charges decreased by $47 million and payments to SNWA decreased similarly. 2/ In 2006, total operating revenues increased by $97 million primarily due to non-recurring income of $55 million from the sale of recharged water to the SNWA and an additional $34 million in regional connection and commodity fees and surcharges. 3/ Includes only realized investment earnings; does not include unrealized gains or losses. The presentation in this table has been changed from presentations shown in the Official statements for the District bond issues prior to 2004 in order to show realized investment earnings only. 4/ Excludes depreciation expense. 5/ In fiscal year 2006, although operating expenses increased by $107 million, $79 million did not affect Net Pledged Revenues because it was offset by related operating revenues. The $79 million consists of recharged water inventory expense of $45 million and $34 million in SNWA charges (see footnote 2 above). The lower amount of Net Pledged Revenues remaining in fiscal year 2006 was primarily due to personnel costs, maintenance and servicing costs, and consulting and contracting services on software systems primarily related to early operational and support issues with a new customer and information and billing system and to security systems. The lower amount of Net Pledged Revenues in 2007 resulted primarily from Facilities Connection Charges being less than expected due to a slowdown in residential construction. Also, a 10% water rate increase did not become effective until January 2007 (halfway through the fiscal year). 6/ Includes debt service on the Outstanding Superior Bonds payable from the Net Pledged Revenues. Debt service payable on the Parity Bonds and other District obligations is excluded. SOURCE: Derived from the District's audited financial statements for the years ended June 30, 2004 through 2008. Page 3

ASSESSED VALUATION Fiscal Year Ended Virgin Valley June 30 Clark County 1/ Water District Las Vegas Valley Water District LVVWD Percent Change 2/ 2004 $ 44,679,769,201 $ 371,433,066 $ 44,308,336,135 -- 2005 50,157,588,051 392,487,159 49,765,100,892 12.32 2006 64,498,993,015 453,418,961 64,045,574,054 28.70 2007 89,520,974,828 596,689,202 88,924,285,626 38.85 2008 106,134,241,089 852,041,725 105,282,199,364 18.40 2009 111,906,539,236 939,674,716 110,966,864,520 5.40 1/ Excludes assessed valuation of the Boulder City Redevelopment Agency, the Las Vegas Redevelopment Agency, the North Las Vegas Redevelopment Agency, the Henderson Redevelopment Agency, the Mesquite Redevelopment Agency and the Clark County Redevelopment Agency in the following amounts:2004 - $539,338,873; 2005 - $645,881,691; 2006- $1,083,494,385; 2007 - $2,101,460,109; 2008 - $3,078,678,754 and 2009 - $3,883,661,314. 2/ Due to the effect of the Abatement Act, increases in assessed value occurring after fiscal year 2005 would not produce a corresponding increase in tax revenues (if any were levied), even if the tax levy rate were constant. SOURCE: Property Tax Rates for Nevada Local Governments - State of Nevada - Department of Taxation. Page 4

TAX LEVIES, COLLECTIONS AND DELINQUENCIES Clark County, Nevada Fiscal Year Ended June 30 Net Levy Roll Current Tax Collected Percent of Current Year Levy Collected Delinquent Tax Collected Total Cumulative Taxes Collected Total Taxes Collected as a % of Net Levy Roll / 2002 $ 965,056,788 $ 949,315,930 98.37 $ 15,736,124 $ 965,052,054 99.99 2003 1,132,942,981 1,118,892,620 98.76 14,046,449 1,132,939,069 99.99 2004 1,262,311,488 1,251,864,740 99.17 10,376,522 1,262,241,262 99.99 2005 1,449,282,876 1,439,911,686 99.35 9,314,007 1,449,225,693 99.99 2006 1,639,734,832 1,632,191,297 99.55 7,026,069 1,639,217,366 99.97 2007 1,928,296,173 1,909,964,723 99.05 13,369,666 1,923,334,389 99.74 2008 2,181,692,799 2,144,481,519 98.29 -- 1/ 2,144,481,519 98.29 1/ Still in the process of being collected. SOURCE: Clark County Treasurer s Office. Page 5

Taxpayer PRINCIPAL PROPERTY OWNING TAXPAYERS IN THE DISTRICT Secured and Unsecured Tax Roll Clark County, Nevada (Fiscal Year 2007-08) Type of Business Assessed Value 1/ % of Total Assessed Value 2/ 1. MGM Mirage Hotels/Casinos 4,826,431,465 4.58% 2. Harrah's Entertainment Incorporated Hotels/Casinos 2,201,567,090 2.09 3. General Growth Properties Developers 1,765,682,919 1.68 4. Nevada Power Company Utility 922,953,019 0.88 5. Venetian Resort Hotel & Casino Hotels/Casinos 833,668,330 0.79 6. Station Casinos Inc. Hotels/Casinos 770,062,834 0.73 7. Wynn Las Vegas LLC Hotels/Casinos 757,489,249 0.72 8. Boyd Gaming Corporation Hotels/Casinos 755,430,384 0.72 9. Focus Property Group Developers 698,393,692 0.66 10. Olympia Group LLC Developers 518,974,130 0.49 TOTAL 105,282,199,364 $ 14,050,653,112 13.35% 1/ Subject to revision. 2/ Based on the total fiscal year 2007-08 assessed valuation for the District of $105,282,199,364. SOURCE: Clark County Assessor's Office. Page 6

DISTRICT CUSTOMER AND CONSUMPTION INFORMATION Year Ended June 30, 2008 Number of Active Customers Annual Consumption Per Billing (1,000 gal) Annual Revenue Produced 1/ Description Residential - single service 308,863 48,909,391 $ 124,825,553 Residential - duplex/triplex/fourplex 2,849 887,815 2,060,691 Apartments/Condos/Townhouses 4,292 14,900,298 42,535,742 Residential, other 290 1,270,669 2,749,586 Hotels 231 9,669,831 29,419,355 Motels 308 1,283,997 3,778,428 Community Facilities 1,104 2,364,850 7,067,250 Schools 446 1,130,389 3,076,368 Fireline 4,396 1,043,270 7,844,176 Irrigation 5,779 15,345,791 44,340,944 Commercial/Business 7,862 8,697,458 24,166,379 Recreational 2/ 119 (208,413) (120,127) Industrial 1,232 1,292,479 3,748,781 Construction Water 3,698 3,146,087 7,927,607 Other 199 849,452 1,969,177 TOTAL 341,668 110,583,364 $ 305,389,910 1/ Includes $13,694,038 Regional Commodity and Surcharges, excluding recharged water sales. 2/ Negative amounts due to reclassifications from Recreational to Irrigation and refunds. SOURCE: Las Vegas Valley Water District. Page 7

Fiscal Year Ended June 30 LAS VEGAS VALLEY WATER DISTRICT ANNUAL TREATED WATER DELIVERED BY THE SOUTHERN NEVADA WATER SYSTEM 1/ (Acre Feet) Las Vegas Valley Water District Boulder City Henderson Nellis Air Force Base North Las Vegas Total Deliveries 1995 7,078 28,310 234,950 2,913 32,642 305,893 1996 8,046 34,617 253,915 3,265 33,282 333,125 1997 7,970 34,985 261,433 3,042 35,675 343,105 1998 7,520 38,537 269,827 2,584 29,242 347,710 1999 8,207 46,472 289,545 2,333 35,563 382,120 2000 9,719 52,344 316,547 2,382 37,731 418,723 2001 10,251 56,598 323,184 1,596 38,799 430,428 2002 11,519 62,970 315,467 2,226 39,318 431,500 2003 13,068 66,507 314,447 2,465 43,079 439,566 2004 11,939 62,716 334,580 1,837 45,180 456,252 2005 2/ 10,367 62,473 298,260 1,938 43,096 416,134 2006 10,887 66,451 328,012 2,022 49,527 456,899 2007 11,239 69,738 344,200 2,682 55,436 483,295 2008 11,345 66,897 328,435 2,664 53,987 463,329 1/ Amounts may not total due to rounding. 2/ Reduction in water deliveries is due, in part, to the public's response to drought restrictions and retail prices. SOURCE: Southern Nevada Water Authority. Page 8

PROPRIETY ENTERPRISE FUND BUDGET SUMMARY AND COMPARISON - BUDGETARY BASIS Operating Revenue 2007 Budget 2007 Actual 2008 Budget 2008 Actual 2009 Budget Water Sales $ 252,858,820 $ 268,622,298 $ 287,352,526 $ 291,695,857 $ 359,000,000 Recharged Water Sales 1/ 0 7,223,446 5,348,442 5,521,199 0 Regional Connection/Other SNWA Fees 139,425,452 96,947,785 127,565,699 54,217,649 88,308,131 Inspection/Application Fees 11,512,999 4,439,131 6,290,143 2,001,343 4,091,893 Other Revenues 2/ 5,308,400 227,491 5,985,200 1,769,340 5,959,211 Total Operating Revenue 409,105,671 377,460,151 432,542,010 355,205,388 457,359,235 Operating Expenses Purchased Water 76,837,222 86,757,838 82,218,920 84,433,787 86,007,665 Purchased Energy 18,311,100 17,357,409 17,121,000 15,297,584 17,359,000 SNWA 3/ 140,675,452 98,144,211 128,876,140 55,419,987 89,558,131 Operation & Maintenance 137,479,885 145,472,214 170,388,881 156,961,431 173,040,109 Total Operating Expenses 373,303,659 347,731,672 398,604,941 312,112,789 365,964,905 Operating Income Before Depreciation Expense 35,802,012 29,728,479 33,937,069 43,092,599 91,394,330 Depreciation Expense (50,000,000) (69,700,030) (62,000,000) (79,632,209) (80,000,000) Total Operating Income (14,197,988) (39,971,551) (28,062,931) (36,539,610) 11,394,330 Non-operating Income (Expense) Interest Expense (26,950,223) (33,906,908) (33,046,097) (35,326,780) (44,800,320) Investment Revenue/Unrestricted 2,325,000 7,622,213 2,150,000 3,962,864 2,000,000 Investment Revenue/Restricted 1,000,000 4,401,968 1,000,000 1,580,550 1,450,000 Gain/Loss on Disposition of Property and Equipment, Net 50,000 0 (100,000) 0 (100,000) Other 200,000 (225,958) 100,000 423,351 100,000 Total Non-operating Income (Expense) (23,375,223) (22,108,685) (29,896,097) (29,360,015) (41,350,320) Income/(Loss) Before Capital Contributions (37,573,211) (62,080,236) (57,959,028) (65,899,625) (29,955,990) Capital Contributions 90,000,000 91,899,145 85,000,000 60,376,391 65,000,000 Other Contributions 0 199,000 0 126,353 0 Net Income - Available for Asset Addition and Replacement and for Debt Retirement $52,426,789 $ 30,017,909 $27,040,972 $ (5,396,881) $35,044,010 1/ Represents the sale of recharge water and reclaimed water, primarily to golf courses. In prior years, this amount was included in the "Water Sales" category. 2 / Includes late fees, other miscellaneous charges associated with water bills and Las Vegas Springs Preserve. 3/ Water purchased from SNWA and other expenses paid under an operations agreement. SOURCE: Las Vegas Valley Water District. Page 9

SUMMARY OF OPERATING REVENUES, EXPENSES AND CHANGES IN FUND EQUITY 2004 (Actual- 2005 2006 2007 2008 Fiscal Year Ending June 30 Restated) (Actual) (Actual) (Actual) (Actual) OPERATING REVENUES Water Sales $ 229,635,243 $ 239,726,962 $ 249,171,415 $ 268,622,298 $ 291,695,857 Recharged Water Sales 1/ 0 0 56,831,464 7,223,446 5,521,199 Regional Connection Fees 95,750,697 102,141,857 133,415,890 96,947,785 54,217,649 Inspection/Application Fees 9,970,151 9,844,628 9,713,002 4,439,131 2,001,343 Other Revenues 21,345 17,125 16,696 227,491 1,769,340 TOTAL REVENUES 335,377,436 351,730,572 449,148,467 377,460,151 355,205,388 OPERATING EXPENSES Purchased Water 2/ 64,093,204 69,290,300 120,403,765 86,757,838 84,433,787 Purchased Energy 12,625,557 14,010,607 21,490,436 17,357,409 15,297,584 SNWA 2/ 104,552,787 110,616,367 144,926,640 98,144,211 55,419,987 Operation & Maintenance 106,570,578 117,934,561 132,003,551 145,472,214 156,961,431 TOTAL OPERATING EXPENSES 287,842,126 311,851,835 418,824,392 347,731,672 312,112,789 OPERATING INCOME BEFORE DEPRECIATION EXPENSE 47,535,310 39,878,737 30,324,075 29,728,479 43,092,599 Depreciation Expense (44,566,677) (48,471,178) (57,838,741) (69,700,030) (79,632,209) OPERATING INCOME (LOSS) 2,968,633 (8,592,441) (27,514,666) (39,971,551) (36,539,610) NON-OPERATING INCOME (EXPENSE) Interest Expense (24,807,878) (24,516,679) (23,537,538) (33,906,908) (35,326,780) Interest Income - Unrestricted (3,081,458) 6,446,924 2,008,037 7,622,213 3,962,864 Interest Income - Restricted 1,047,738 94,642 1,159,331 4,401,968 1,580,550 Gain/Loss on Disposition of Property and Equipment, Net (2,706,607) 27,858 (391,099) 0 0 Other 49,804 151,207 280,767 (225,958) 423,351 TOTAL NON-OPERATING INCOME (EXPENSE) (29,498,401) (17,796,048) (20,480,502) (22,108,685) (29,360,015) INCOME/(LOSS) BEFORE CAPITAL CONTRIBUTIONS (26,529,768) (26,388,489) (47,995,168) (62,080,236) (65,899,625) Capital Contributions 70,244,909 100,022,381 101,278,879 91,899,145 60,376,391 Other Contributions 0 0 0 199,000 126,353 NET INCOME - Available for Asset Addition and Replacement for Debt Retirement 43,715,141 73,633,892 53,283,711 30,017,909 (5,396,881) FUND EQUITY - Beginning of Year as Previously Reported 936,311,416 976,993,946 1,061,556,773 1,114,840,486 1,144,858,395 Adjustment 3/ 7,896,324 10,928,935 0 0 0 FUND EQUITY - Beginning of Year as Restated 944,207,740 987,922,881 1,061,556,773 1,114,840,486 1,144,858,395 FUND EQUITY - End of Year $ 987,922,881 $1,061,556,773 $1,114,840,484 $1,144,858,395 $ 1,139,461,514 Footnotes on following page. Page 10

1/ Represents the sale of recharge water and reclaimed water, primarily to golf courses. In prior years, this amount was included in the "Water Sales" category. 2/ Water purchased from SNWA and other expenses paid under the Operations Agreement. 3/ The fiscal year 2004 basic financial statements have been restated for the effect of previously omitted assets and fund equity from capital contributions consisting of $3.0 million from fiscal year 2004 and $7.9 million from prior fiscal years. See Note 1 to the Basic Financial Statements for a description of the restatement. SOURCE: Derived from the District's basic financial statements for the years ended June 30, 2004 through 2008. Page 11

OUTSTANDING INDEBTEDNESS Las Vegas Valley Water District As of June 30, 2008 Dated Date GENERAL OBLIGATION LVVWD REVENUE SUPPORTED BONDS 1/ Original Amount Outstanding Parity Lien Obligations Water Improvement and Refunding Bonds (2003A Bonds) 01/01/03 168,685,000 139,480,000 Water Refunding Bonds (2005A Bonds) 05/04/05 302,425,000 277,845,000 Water Improvement Bonds (2006A Bonds) 06/15/06 151,555,000 151,555,000 Improvement and Refunding Bonds (2008A) 02/19/08 190,760,000 190,760,000 Total Superior Lien Obligations 759,640,000 Subordinate Lien Obligations Adjustable Rate Water Improvement Bonds (2006B Bonds) 07/20/06 75,000,000 75,000,000 Adjustable Rate Water Improvement Bonds (2006B Bonds) 07/20/06 75,000,000 75,000,000 Total Parity Lien Obligations 150,000,000 GENERAL OBLIGATION SNWA REVENUE SUPPORTED BONDS 2/ MBRA Parity Obligations Refunding Bonds, Series (2003B) 01/01/03 250,000,000 219,295,000 Refunding Bonds (2005B) 05/04/05 27,925,000 13,695,000 Refunding Bonds (2008B) 01/29/08 171,720,000 171,720,000 TOTAL 404,710,000 MBRA Subordinate Obligations Water Commercial Paper Notes 2/ 02/19/04 400,000,000 400,000,000 GRAND TOTAL $1,714,350,000 1/ District general obligation bonds additionally secured by Net Pledged Revenues. If such revenues are not sufficient, the District is statutorily authorized to levy an ad valorem tax to pay the difference between such revenues and debt service requirements of the respective bonds. 2/ District general obligation bonds additionally secured by the Master Bond Repayment Agreement Revenues (the MBRA ) received by the District from the SNWA pursuant to the MBRA. If such revenues are not sufficient, the District is statutorily authorized to levy an ad valorem tax to pay the difference between such revenues and debt service requirements of the respective bonds. The Commercial Paper Notes are payable from the MBRA Revenues, but are payable after the other bonds in this category. SOURCE: Compiled by Hobbs, Ong & Associates, Inc. Page 12

District Debt Service Requirements The following tables illustrates the annual debt service requirements for all of the District's outstanding general obligation bonds and other obligations. [Remainder of page intentionally left blank] Page 13

Fiscal Year Ending June 30 LAS VEGAS VALLEY WATER DISTRICT ANNUAL DEBT SERVICE REQUIREMENTS As of June 30, 2008 General Obligation General Obligation LVVWD Revenue SNWA Revenue Supported Bonds 1/ Supported Bonds 2/ 2006B Bonds 2006C Bonds Principal Interest Principal Interest Principal Interest 3/ Principal Interest 3/ 2009 $ 16,740,000 $ 28,239,219 $ 13,715,000 $ 11,933,313 $ 1,285,000 $ 3,750,000 $ 1,285,000 $ 3,750,000 $ 80,697,531 2010 17,240,000 27,402,219 14,410,000 11,229,988 1,350,000 3,685,750 1,350,000 3,685,750 80,353,706 2011 18,115,000 26,540,219 7,790,000 10,490,988 1,415,000 3,618,250 1,415,000 3,618,250 73,002,706 2012 17,195,000 25,626,031 8,195,000 10,082,013 1,485,000 3,547,500 1,485,000 3,547,500 71,163,044 2013 18,065,000 24,757,406 8,625,000 9,651,775 1,560,000 3,473,250 1,560,000 3,473,250 71,165,681 2014 18,995,000 23,844,819 9,080,000 9,198,963 1,640,000 3,395,250 1,640,000 3,395,250 71,189,281 2015 19,970,000 22,885,231 9,555,000 8,722,263 1,720,000 3,313,250 1,720,000 3,313,250 71,198,994 2016 20,985,000 21,876,381 10,060,000 8,220,625 1,805,000 3,227,250 1,805,000 3,227,250 71,206,506 2017 22,070,000 20,816,244 10,585,000 7,692,475 1,900,000 3,137,000 1,900,000 3,137,000 71,237,719 2018 23,205,000 19,701,281 11,140,000 7,136,763 1,990,000 3,042,000 1,990,000 3,042,000 71,247,044 2019 24,400,000 18,528,969 11,725,000 6,551,913 2,090,000 2,942,500 2,090,000 2,942,500 71,270,881 2020 25,660,000 17,296,269 12,340,000 5,936,350 2,195,000 2,838,000 2,195,000 2,838,000 71,298,619 2021 26,975,000 15,999,906 12,990,000 5,288,500 2,305,000 2,728,250 2,305,000 2,728,250 71,319,906 2022 28,375,000 14,637,094 13,640,000 4,639,000 2,420,000 2,613,000 2,420,000 2,613,000 71,357,094 2023 29,705,000 13,335,081 14,320,000 3,957,000 2,545,000 2,492,000 2,545,000 2,492,000 71,391,081 2024 31,110,000 11,964,300 15,040,000 3,241,000 2,670,000 2,364,750 2,670,000 2,364,750 71,424,800 2025 32,700,000 10,408,800 15,790,000 2,489,000 2,805,000 2,231,250 2,805,000 2,231,250 71,460,300 2026 34,380,000 8,773,800 16,580,000 1,699,500 2,945,000 2,091,000 2,945,000 2,091,000 71,505,300 2027 27,005,000 7,054,800 17,410,000 870,500 3,090,000 1,943,750 3,090,000 1,943,750 62,407,800 2028 14,535,000 5,704,550 0 0 3,245,000 1,789,250 3,245,000 1,789,250 30,308,050 2029 15,265,000 4,977,800 0 0 3,410,000 1,627,000 3,410,000 1,627,000 30,316,800 2030 16,005,000 4,231,825 0 0 3,580,000 1,456,500 3,580,000 1,456,500 30,309,825 2031 16,790,000 3,449,663 0 0 3,755,000 1,277,500 3,755,000 1,277,500 30,304,663 2032 17,610,000 2,629,113 0 0 3,945,000 1,089,750 3,945,000 1,089,750 30,308,613 2033 8,315,000 1,768,463 0 0 4,140,000 892,500 4,140,000 892,500 20,148,463 2034 8,715,000 1,373,500 0 0 4,350,000 685,500 4,350,000 685,500 20,159,500 2035 9,150,000 937,750 0 0 4,565,000 468,000 4,565,000 468,000 20,153,750 2036 9,605,000 480,250 0 0 4,795,000 239,750 4,795,000 239,750 20,154,750 2037 0 0 0 0 0 0 0 0 0 2038 0 0 0 0 0 0 0 0 0 Total $568,880,000 $385,240,981 $232,990,000 $129,031,925 $75,000,000 $65,959,750 $75,000,000 $65,959,750 $1,598,062,406 Continued on the following page. Totals may not agree due to rounding. Page 14 SubTotal

LAS VEGAS VALLEY WATER DISTRICT ANNUAL DEBT SERVICE REQUIREMENTS As of June 30, 2008 Fiscal Year Ending June 30 2008A Bonds 2008B Bonds Sub-Total From Prior Page Principal Interest Principal Interest Grand Total 2009 $ 80,697,531 $ 5,955,000 $ 9,061,100 $ 1,695,000 $ 8,341,356 $ 105,749,988 2010 80,353,706 6,120,000 9,240,250 1,760,000 8,282,031 105,755,988 2011 73,002,706 6,425,000 8,934,250 9,275,000 8,220,431 105,857,388 2012 71,163,044 6,740,000 8,613,000 9,725,000 7,756,681 103,997,725 2013 71,165,681 7,125,000 8,276,000 10,215,000 7,270,431 104,052,113 2014 71,189,281 4,095,000 7,919,750 11,080,000 6,759,681 101,043,713 2015 71,198,994 4,300,000 7,715,000 11,635,000 6,205,681 101,054,675 2016 71,206,506 3,620,000 7,500,000 10,445,000 5,623,931 98,395,438 2017 71,237,719 3,800,000 7,319,000 8,420,000 5,101,681 95,878,400 2018 71,247,044 3,990,000 7,129,000 8,835,000 4,680,681 95,881,725 2019 71,270,881 4,190,000 6,929,500 9,285,000 4,238,931 95,914,313 2020 71,298,619 4,400,000 6,720,000 9,760,000 3,774,681 95,953,300 2021 71,319,906 4,620,000 6,500,000 10,255,000 3,286,681 95,981,588 2022 71,357,094 4,850,000 6,269,000 10,780,000 2,773,931 96,030,025 2023 71,391,081 5,095,000 6,026,500 11,330,000 2,234,931 96,077,513 2024 71,424,800 5,350,000 5,771,750 11,825,000 1,753,406 96,124,956 2025 71,460,300 5,615,000 5,504,250 12,385,000 1,206,500 96,171,050 2026 71,505,300 5,900,000 5,223,500 13,015,000 618,213 96,262,013 2027 62,407,800 6,195,000 4,928,500 0 0 73,531,300 2028 30,308,050 6,500,000 4,618,750 0 0 41,426,800 2029 30,316,800 6,830,000 4,293,750 0 0 41,440,550 2030 30,309,825 7,170,000 3,952,250 0 0 41,432,075 2031 30,304,663 7,525,000 3,593,750 0 0 41,423,413 2032 30,308,613 7,905,000 3,217,500 0 0 41,431,113 2033 20,148,463 8,300,000 2,822,250 0 0 31,270,713 2034 20,159,500 8,715,000 2,407,250 0 0 31,281,750 2035 20,153,750 9,150,000 1,971,500 0 0 31,275,250 2036 20,154,750 9,605,000 1,514,000 0 0 31,273,750 2037 0 10,085,000 1,033,750 0 0 11,118,750 2038 0 10,590,000 529,500 0 0 11,119,500 Total $1,598,062,406 $190,760,000 $165,534,600 $171,720,000 $88,129,863 $2,214,206,869 Footnotes on the following page. Totals may not agree due to rounding Page 15

1/ 2/ Includes District general obligation bonds, Series 2003A, 2005A and 2006A, additionally secured by Net Pledged Revenues. If such Net Pledged Revenues are not sufficient, the District may levy an ad valorem tax to pay the difference between such revenues and debt service requirements of the respective bonds. Includes District general obligation bonds, Series 2003B and 2005, additionally secured by SNWA Pledged Revenues. If such revenues are not sufficient, the District is statutorily authorized to levy an ad valorem tax to pay the difference between such revenues and debt service requirements of the respective bonds. The debt service schedule excludes the debt service payable on the District's 2004 Commercial Paper Notes, currently outstanding in the principal amount of $400,000,000. 3/ Assumes interest at a constant rate of 5.0% on each series of the 2006B,C Bonds. The actual interest rates on each series of Series 2006B,C Bonds will vary. SOURCE: Compiled by Hobbs, Ong & Associates, Inc. Page 16