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ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES <br />The increased emphasis toward renewable energy and away from coal-based energy, the challenge to reduce energy and water <br />consumption while still maintaining the existing infrastructure, and the smart grid developments are all factors that point to <br />potential increased cost in the coming years. We don't want to have to rely on increasing rates to meet those increases and <br />continue to look for ways to increase efficiencies and reduce costs. Our mission is to provide safe, cost-effective, reliable utilities, <br />and that will be a challenge in [he coming years but it is a challenge we are ready to embrace. <br />CONTACTING THE UTILITIES FINANCIAL MANAGER <br />This financial report is designed to provide our citizens, customers, investors and creditors with a general overview of the <br />Utilities' finances and to demonstrate the Utilities' accountability for the money it receives. Questions concerning any of the <br />information provided in this report or requests for additional financial information should be addressed to Theresa Slominski, Elk <br />River Municipal Utilities, PO Box 430, Elk River, Minnesota 55330-0430 or stop by at 13069 Orono Parkway in Elk River, MN. <br />-18- <br />