Newsletter - As of Of 12/31/2006

During the past year we continued to grow at a fast pace. Membership grew from 30,544 members as of 12/31/05 to 32,411 members as of 12/31/2006, an increase of 1,867 members.

Last year we began building a 2 million gallon per day reverse osmosis treatment plant in Cameron Co. This plant is a joint project with the East Rio Hondo WSC and the City of Primera. During 2007, we should complete the construction of two – 3 million gallon per day reverse osmosis treatment plants, both in Hidalgo Co. Also, construction is almost complete on the Willacy Co. Empowerment Zone Project. Construction should begin on the Hidalgo Co. Empowerment Zone Project Phase I sometime this summer.

Last year we purchased a tract of land that will be the site for the North Weslaco wastewater project. This project will be funded by U.S.D.A. and involves constructing a new wastewater treatment plant and a collection system that will serve the area north of Weslaco. This project will connect about 1,000 new customers and will bring in additional revenues for the Wastewater Department.

We continue to oppose the BFI landfill expansion located ¼ mile from our main water treatment plant and reservoir. We won our jury trial in District Court in 2002, but we still have to go through the appeals process at the Appeals court in Corpus Christi.

Beginning in March 2007, we will increase the monthly wastewater rates by $4.30 per month. The monthly minimum rate will be $11.00 and the monthly maximum rate will be $27.00.

At this year’s annual meeting, there will be an election held for the terms of three board members. The nominating committee met on 12/12/06 and nominated the following persons;
District 1 – Leonard Camarillo
District 2 – Manuel B. Garcia
District 3 – Steve D. Krenek

As usual, at this year’s annual meeting, we will have a drawing to give away a 2003 Ford Ranger pick-up truck. Everyone who returns a proxy card or is in attendance at the meeting will be eligible for the drawing, except for board members and employees of the Corporation.

The Board of Directors, management staff and employees appreciate your past support and we look forward to serving you this coming year.

Thank-you

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