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COOPERS & LYBRAND <br />CERTIFIED PUBLIC ACCOUNTANTS <br />2200 AMERICAN NATIONAL BANK BUILDING. <br />P. O. BOX 4157 <br />A.MEMBER FIRM OF. <br />SOUTH BEND, INDIANA 46624 <br />(2191 234-4021 <br />COOPERS & LYBRAND (INTERNATIONAL) - <br />407 ST-JOSEPH VALLEY.BANK BUILDING <br />121 WEST FRANKLIN STREET <br />ELKHART,- INDIANA 46514 <br />(219) 294 -7441 <br />. P. 0. BOX. 605' <br />.NILES, MICHIGAN 49120 <br />(616) 683 -5720 <br />August 5, 1980 <br />Mayor Roger 0. Parent <br />City of South Bend <br />County City Building <br />South Bend, Indiana 46601 <br />Dear Mayor Parent: <br />The City of South Bend has contracted with Coopers <br />& Lybrand to perform 'a cost of service and rate study for the <br />South Bend Waterworks and a rate study for the South Bend <br />Wastewater Treatment Department. We have performed a <br />preliminary survey of the financial condition of the municipal <br />Utilities in order to determine the adequacy of the present <br />rates .to provide services. The results of our preliminary <br />survey are indicated below. <br />The Waterworks has been operating at a loss since <br />1976 and Wastewater Treatment has been operating at a loss <br />since-1977.. The result has been a'severe cash requirement. <br />Consequently, the General Funds have shown the following <br />decreasing balances: Waterworks Wastewater <br />1977 $ 1,692 $1,149,8o6 <br />1979 253,002 7863932 <br />July, 1980 5535589 224,015 <br />9883475 184,7o8 <br />It is not anticipated that there will be any improve- <br />ments in the cash balances by the end of 1980. Because of the <br />large deficit balance in the Waterworks and no offsetting funds, <br />there is effectively a borrowing from the meter deposit fund <br />which appears to be improper. <br />