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Members of the City Council <br /> City of St. Anthony, Minnesota <br /> Financial Condition, continued <br /> The water filtration plant is currently in its fourth year of operation. The <br /> original agreement was for a period of 10 years, at which time the City is respon- <br /> sible for all operating costs associated with the filtration plant. Utility rate <br /> determination will be critical when the current grant reimbursement program expires. <br /> Utility rates should be reviewed on an annual basis to determine their adequacy <br /> and provide for a smooth transition when the City assumes responsibility for costs <br /> of the filtration plant. At that time, water operations may not be 'sufficient to <br /> subsidize the sewer portion of the utility operations. <br /> This report is intended solely for the information and use of the City Council , <br /> management and others within the organization. <br /> If the Council wishes, I would be pleased to meet and discuss any of the observa- <br /> tions, comments, or recommendations mentioned or other matters pertaining to the <br /> audit with the Council or management at your convenience. If the City desires, <br /> I am available to assist with the implementation of any of the recommendations. <br /> I wish to express my appreciation for the courtesies and cooperation extended by <br /> the City Manager, Finance Director and City personnel during the engagement. <br /> Stuart 7 onniwell <br /> Certified Public Accountant <br />