SOUTH HUNTINGTON WATER DISTRICT, TOWN OF HUNTINGTON

ANNUAL FINANCIAL REPORT ISSUED IN CONJUNCTION WITH NEW YORK STATE PUBLIC NOTICE REPORTING REQUIREMENTS

COLLECTIONS, EXPEDITURES PAID AND CASH BALANCES

Year Ended December 31, 2010

Cash Balances at January 1, 2010

$          7,494,619

Cash Collections

Real Property Taxes

 $            3,305,845

Water Sales and Other Charges

3,094,903

Interest and Earnings on Investments

82,219

Rental of Real Property

442,578

Litigation Settlement for MTBE Contamination

2,356,678

Other Revenue

669,408

Proceeds of Obligations

4,140,000

Total Cash Collections

$        14,091,631

Expenditures Paid

Personal Services

 $            1,296,674

Equipment & Capital Outlay

39,906

Contractual Expenditures

2,752,258

Employee Benefits

637,229

Debt Service - Principal and Interest

2,600,142

Capital Outlay

2,319,052

Total Expenditures Paid

$          9,645,261

Cash Balances at December 31, 2010

$        11,940,989

1) Amounts reported for cash balances, cash collections and

    expenditures paid are unaudited.

2) Amounts reported for cash collections and expenditures paid do not include

    transactions recorded in capital accounts maintained by the Town of Huntington.

SOUTH HUNTINGTON WATER DISTRICT

OUTSTANDING INDEBTEDNESS

December 31, 2010

Bonds Payable

$           20,492,035