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COOPERS & LYBRAN D <br />CERTIFIED PUBLIC ACCOUNTANTS <br />** 2200 AMERICAN NATIONAL BANK BUILDING <br />P. o. BOX 4157 <br />SOUTH BEND, INDIANA 46624 <br />A MEMBER FIRM OF - - (219) 234 -4021 <br />COOPERS & LYBRAND (INTERNATIONAL) 407ST.JOSEPH VALLEY BANK BUILDING <br />121 WEST FRANKLIN STREET <br />ELKHART, INDIANA 46514 <br />(219) 294 -7441 <br />P. O. 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 />1978 253,002 786,932 <br />1979 5535589 2245015 <br />July, 198o 988,475 184,7o8 <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 />