Arlington East Mutual Water Association

Part V, line 35

“| Explanation:| Arlington east mutual water association maintains a money market account at a local bank in addition to our checking account. the function of this account is having funds available in case of a catastrophic failure of the system. i.e.- earthquake damage reduction of water table and to have funds available for the replacement of the main lines to the residences due to aging system. it was deemed by the board to be fiscally responsible to the members to keep these funds in a money market account instead of the general checking account. Any funds collected by the Assocation in excess of operating expenses are transferred to the money market account when the checking account has a surplus in excess over the regular and necessary expenses for the operation of the utility.|”