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Carl grown Consulting, LLC <br /> February 5, 2007 <br /> Tirenna Mann,Treasurer <br /> City of Bonne Terre <br /> #1A Northwood Drive <br /> Bonne Terre, MO 63628 <br /> Subject: Sewer User Charge Analysis <br /> Dear Ms. Mann: <br /> This letter will augment the letter I sent to you dated December 21, 2006. Following issuance of <br /> that letter and the rate study,you informed me that several financial criteria were different than <br /> what I had modeled. Therefore, the analysis and my proposed rates had to be revised. Other <br /> than adjustment to rates different from what I recommended on December 21, my <br /> recommendations remain the same. <br /> Rates to most users will need to be increased 22 percent as compared to the rates in effect at the <br /> end of the test year period. However, the city adopted an 11 percent rate increase late last year. <br /> Therefore, most rates need to go up 11 percent as compared to the rates now in effect. Future <br /> rates will need to go up on average 5.5 percent each year for the next io years. <br /> Please review the enclosed rate study and let me know if you see anything significant that should <br /> be changed. <br /> I look forward to the meeting on the 13th. <br /> Best regards, <br /> Carl Brown Consulting, LLC <br /> CO`- <br /> Carl E. Brown <br /> President <br /> Enclosure: Revised rate analysis <br /> 1014 Carousel Drive,Jefferson City,Missouri 65101 www.carlbrownconsulting.com <br /> caribrown @corlbrownconsulting.com (573)619-3411 <br />