1. $4,ooo,ooo State Bonding Request for the Construction of Trunk Water Main Pipeline February 2014

2. City of Lake Elmo Request City of Lake Elmo Request $4 million dollars of state bonding funds to provide clean, potable water to homeowners $4 million dollars of state bonding funds to provide clean, potable water to homeowners in the I-94 corridor – 42% of project costs; in the I-94 corridor – 42% of project costs; The City of Lake Elmo will bond for $5.5 million The project provides the correct pressure and The project provides the correct pressure and clean hydraulics to serve taxpayers that are clean hydraulics to serve taxpayers that are currently on PFC adulterated wells and new growth mandated by the Met Council currently on PFC adulterated wells and new growth mandated by the Met Council

3. Regulatory Squeeze

4. Lake Elmo Mandated Growth Lake Elmo Mandated Growth

5. Lake Elmo PFC Water Adulteration Lake Elmo PFC Water Adulteration 30% of the Lake Elmo Water Aquifer is adulterated with PFCs and metabolites 30% of the Lake Elmo Water Aquifer is adulterated with PFCs and metabolites Well #3 hovers at the health standard for acceptable PFC levels and has tested above in the last 18 months Well #3 hovers at the health standard for acceptable PFC levels and has tested above in the last 18 months Drilling a well on the I-94 Corridor may pull contaminated water across the ground water divide. Drilling a well on the I-94 Corridor may pull contaminated water across the ground water divide. PFCs are persistent and bio-accumulative PFCs are persistent and bio-accumulative MDH has reported PFCS MAY cause significant health risks and suggested the transmission of untreated water from the northeast is prudent MDH has reported PFCS MAY cause significant health risks and suggested the transmission of untreated water from the northeast is prudent