Lake Elizabeth Mutual Water Company

14960 Elizabeth Lake Road. Elizabeth Lake, Ca 93532

Email lakeelizabethwater@verizon.net

Phone 661-724-1806

Fax 661-724-1281

Hours 6 am to 12 pm - 1 pm to 3 pm

WATER SERVICE RATES FOR 2010

Water meters are read monthly

STANDBY METER(S) "0" usage = $12.10

1 cubic foot to 500 cubic feet = $19.97

501 to 2500 cubic feet = $3.88 for each 100 cubic feet

2501 to 7000 cubic feet = $3.91 for each 100 cubic feet

7001 cubic feet and above = $3.95 for each 100 cubic feet

$20.00 Late Charge on unpaid balances over $48.00

LETTER MAILED TO SHAREHOLDERS. 8/01/2008 WATER RATE INCREASE

ANNUAL SHARE ASSESSMENT CHARGE

Assessment period is May 1 to April 30 of each year

$55.00 per share per year charge,
minimum 2 shares = $110.00 minimum assessment

10% annual late fee on any unpaid balance at billing cycle

Lake Elizabeth Mutual Water Co. The Annual Assessment – What is it? We get calls from shareholders about Mutual water companies And public water companies concerning assessments. The Corporations Code for Mutual water companies states that “Any corporation organized for or engaged in the business of selling, distributing, supplying or delivering water for irrigation or domestic use, and not a public utility, may levy assessments upon its shares”. Also, Barclay’s California Code and Regulations state, “A proviso (By-laws) directing the board of directors to establish a rate which will result in the accumulation and maintenance of a fund for the repair and replacement of the water supply, distribution and fire protection system...Unimproved lots included within the area to be served must bear a proportionate share of the cost of repair and replacement of the water supply, distribution and fire protection system, as well as a proportionate share of the cost of maintaining the repair and replacement fund”. Publicly owned systems receive 60% of their financing needs from tax-exempt bond markets, whereas Mutual systems rely primarily (40-50%) on retained earning or on the revenues that user charges raise after operating taxes have been subtracted. This reflects the higher cost Mutual face in raising capital

WATER SERVICE CONNECTION FEES