Representatives of 86 shares were in attendance

With the existing 152 shares, 86 shares would comprise 56%.

Meeting was called to order at 7:50pm

Agenda item #1 - Minutes

Max Gregoric reviewed the minutes from last year and a motion was made to accept minutes from last year as read, and seconded. Motion carried.

Agenda item #2 – Water Report

Rob Snyder read the report of water used. Total usage in 2010 was 11,498,870 gallons. This was down from 12,591,889 gallons in 2009 indicating that conservation efforts may be paying off.

Agenda item #3 – System Report

Dave Brooks reported repairs that have been made to the system including:

· repairs to the main line by the Rockville Bridge

· Numerous hydrants have been rebuilt or repaired.

· Numerous meters were replaced and back flow protection added

· There is plan to flush the system by the fire hydrants on the 20^th of March. The “phone tree” brown water warning system will be utilized.

Agenda item #4 – Backflow Prevention

Agenda item #5 – Financial Statement

Karen Crawford read the financial report for the year 2010.

· Checkbook balance started $8000.00 and ended at $10,000.00.

· The CD final payment was made.

· Current bank account total equals $55,463.66.

· $10,000 was spent on water from Springdale

· $12,000 was spent on supplies

· Total dept equals $125,000.

· Largest loan will retire in 2039

Jeff Ballard moved to approve the financial statement and Barry Shochat seconded. Motion carried.

Agenda item #5 – Rate Increase

New water rates will begin April 1^st 2011.

Drinking Water Rates

Gallons used Cost

--------------------------------------------

0 – 5000 $15.00/ base rate

5000 – 15000 $2.50/ thousand gallons

15000 – 30000 $3.50/ thousand gallons

30000 – 50000 $6.00/ thousand gallons

Over 50000 $9.00/ thousand gallons

Agenda item #6 – Expired Board Terms

Jeff Ballard nominated Steve Cox for the Board and all present voted in favor.

Agenda item #8 – Adjourn

Motion to adjourn was moved and seconded. Meeting adjourned at 8:45pm

Draft Annual Shareholders Meeting February 23rd 2011