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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. It is the Utilities' goal to not have to rely on increasing rates to meet those increases <br /> but continue to look for ways to increase efficiencies and reduce costs,while providing excellent customer service. Elk River <br /> Municipal Utilities' mission is to provide safe,cost-effective,reliable,quality utilities in an environmentally and financially <br /> responsible manner. That will be a challenge in the coming years but it is a welcome challenge. <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 at 13069 Orono Parkway in Elk River,MN. <br /> 18 <br />