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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 potential <br /> increased cost in the coming years.It is the Utilities' goal to not have to rely on increasing rates to meet those increases but continue <br /> to look for ways to increase efficiencies and reduce costs,while providing excellent customer service. Elk River Municipal Utilities' <br /> mission is to provide safe,cost-effective,reliable,quality utilities in an environmentally and financially responsible manner. We have <br /> met that mission in our customer service delivery and our successful financial results,and will continue to strive to meet that mission <br /> in the future. <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 Utilities' <br /> finances and to demonstrate the Utilities' accountability for the money it receives. Questions concerning any of the information <br /> provided in this report or requests for additional financial information should be addressed to Theresa Slominski,Elk River Municipal <br /> Utilities,PO Box 430,Elk River,Minnesota 55330-0430 or at 13069 Orono Parkway in Elk River,MN. <br /> 71 <br />