(The following letter was sent to Frank A. Tauches, Jr., Chairman, Water Authority of Western Nassau County.)

Thank you for placing the "Report of Examination," for the Water Authority of Western Nassau County (WAWNC) as prepared by the Office of the New York State Comptroller on the agenda for the March 30 regular meeting of the board of directors of the WAWNC. I look forward to an open discussion of the subject matter.

At the Feb. 25 meeting of the WAWNC, the treasurer provided the public and the board of directors with cash balances at the end of business Feb. 23. The report identified $10,728,916.46 as "cash on hand." You have managed to accrue a considerable sum of money. I have asked, on numerous occasions, for the board to openly and publicly discuss the question of excess, surplus money since June, 1997. While I realize that some of that money is designated for specific reasons (i.e.: Rate Stabilization Fund, Arbitrage Refund Account, Construction Fund and Debt Service Fund)-there is approximately $5,000,000 in reserve, doing nothing, but collecting interest. This money could be used to substantially reduce our current water rates.

You provide water, we depend on you to charge us properly. Clearly, you are not a savings or lending institution and should not be squirreling money away in order to make some "grand" purchase. The ex-customers of Jamaica Water Supply Company deserve to know if the board of directors, under your leadership, plans to acquire property, land or to make any other large purchase.

By copy of this letter, I respectfully ask that each member of the board seriously evaluate a reduction in our water rates before agreeing to alternate spending, considering your predecessor's behavior. Give us a break and reduce our rates.

Marietta A. DiCamillo