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THE CIVIC FEDERATION APPLAUDS AND SUPPORTS THE METROPOLITAN WATER RECLAMATION DISTRICT FOR THEIR FISCAL RESPONSIBILITY TO THE TAXPAYERS OF COOK COUNTY!!!!!!!

December 7. 2005

The Honorable Terrence J.O'Brien
President, Board of Commissioners
The Metropolitan Water Reclamation District
100 East Erie Street
Chicago , Illinois 60611

Dear President O'Brien:

The Civic Federation is pleased to offer our support for the Metropolitan Water Reclamation District's proposed $1 billion budget for FY2006, which we believe offers a responsible approach to the District's finances for the coming year.

Given the realities of rising pension health care, and personnel costs, the District's proposed budget demonstrates a number of fiscally responsible decisions that show a high regard for the prudent use of taxpayer dollars.

As we note in our analysis, the District has taken an active approach to balancing its budget through internal efficiencies. The Civic Federation strongly approves the District's $4.4 million reduction of its property tax levy, from $410.7 million to $406.3 million. We encourage other units of local government, such as the Chicago Public Schools and City Colleges , to follow your example and refrain from pursing a reflexive policy of annual increases in property taxes to the maximum amount allowed under law.

The Civic Federation also supports the District's move to reduce employee headcount by 37 positions. Personnel costs are the greatest drivers of increased spending in most public budgets, and we applaud the District's move to reduce employee headcount by 37 positions. Personnel costs are the greatest drivers of increased spending in most public budgets, and we applaud the District's strategic decision to create efficiencies in that area. We also approve the District's fiscally prudent plant to gradually increase employee contributions toward the cost of health insurance premiums.

We encourage the District to consider working with other governments to create joint purchasing agreements for electricity, fuel, and other commodities. As you know, we have long championed such cost-saving agreements.

Again, we commend your financial management team for their hard work and thoughtful fiscal planning. Attached please find a copy of our full analysis, which will be available on our website at www.civicfed.org. I look forward to restudying in favor of this budget at tomorrow's public hearing.

Sincerely,

Laurence Msall
President

Paid for and authorized by the Friends of Terrence J. O'Brien.
A copy of our report is (or will be) available from the Cook County Clerk
69 W Washington Street, Chicago, Il 60606. And the Illinois State Board of Elections,
Contributions are not tax-deductible.