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WATER COSTS <br />Water Fund expenditures are comprised of two primary operating functions: <br />Production <br />$776,963 <br />Distribution <br />$652,178 <br />ADJUSTMENT TO DISTRIBUTION FEE <br />The current recommendation includes: <br />•Continuing the phase-in of the a <br />quarterly fee to support distribution <br />system costs <br />•Quarterly Water Distribution fee will <br />increase by $3.35