Rate Incease effective April 30, 2009

Dear Valued Customer,

It has always been our pleasure to be your water service provider. Our goal has been to provide you with safe and reliable service while maintaining acceptable operating standards. During this ever-increasing time of inflation, we have tried to absorb as many increases as we can without passing them on to you, our customer. Unfortunately, as operating expenses escalate and revenues decrease, meeting our monthly obligations requires us to adjust our rate structure at this time.

Effective with the April 30, 2009 billing, the following rates will apply.

• Step 1 (base rate) will be $16.80 for the first 2000 gallons of water used. (0-2000 gallons)
• Step 2 will be $6.50 per 1,000 for the next 3,000 gallons of water used. (2001-5000 gallons)
• Step 3 will be $4.70 per 1,000 for the next 3,000 gallons of water used. (5001-8000 gallons)
• Step 4 will be $4.00 per 1,000 for the next 2,000 gallons of water used. (8001-10,000 gallons)
• Step 5 will be $3.45 per 1,000 for anything over 10,000 gallons of water used.

With future conditions still uncertain, we will continue to explore ways of improving day0to-day business operations. We encourage you to call our office if you have any questions or concerns regarding the implementation of this rate change.

Sincerely,

Mark Bohlin

General Manager