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provide mutual aid with labor and/or equipment assisting Connexus Energy, Princeton Public <br />Utilities, Wadena Electric & Water, and Rochester Public Utilities. <br />In June of 2010, Elk River Municipal Utilities (ERMU) was able to provide another payment <br />option fox customers -credit cazds! Additionally, customers are now able to make a payment by <br />phone or online using their credit or debit cazds, and even make a payment from a checking or <br />savings account. After receiving many requests for credit card options, ERMU is excited to now <br />be offering it to our customers. Elk River Municipal Utilities will continue to respond to needs <br />of our customers as part of our ongoing commitment to provide excellent customer service. <br />The year of 2010 saw a decrease in water usage, mostly due to weather. However, the Water <br />Department remained fiscally strong by "tightening the belt" and reducing expenses. ERMU <br />was able to commit to no water rate increase for 2010 or 2011 ! The water department, while <br />operating short staffed, was able to do more with less and accomplish their maintenance goals <br />while making a huge push to continue progress in the meter change-out program. And although <br />this accomplishment is recognized and celebrated, operating short staffed is not maintainable <br />long term while not compromising service or reliability. So moving into 2011, the Water <br />Department will be adding the appropriate staffing to position themselves to provide the level of <br />services required. <br />The Technical Services Department and Administrative Department underwent the complex and <br />challenging project of bringing the meter reading services in-house. By bringing these services <br />in-house, ERMU has seen instant significant savings in meter reading costs and improved <br />efficiencies through control and staff accountability for the meter reading processes. This <br />transition was partnered with implementation of new meter reading technology. The transition <br />continues into 2011, but the process has gone incredibly smooth and we are very optimistic that <br />ERMU will continue to see a positive trend in meter reading efficiency. <br />Overall, I am very proud of what we have accomplished during 2010 for our customers and the <br />residents of Elk River. We have continued to explore and implement ways to reduce expenses, <br />control the growth of rates, and provide safe, reliable utility services. In the following pages are <br />some of the 2010 highlights, accomplishments, and key statistics by departments as well as our <br />goals for 2011. <br />t <br />Troy Adams, P.E. <br />Director of Operations <br />Page 2 of 7 <br />