THE METROPOLITAN ST. LOUIS SEWER DISTRICT EMPLOYEES’ PENSION PLAN FINANCIAL REPORT (Audited) Year Ended December 31, 2005

THE METROPOLITAN ST. LOUIS SEWER DISTRICT EMPLOYEES’ PENSION PLAN ______________________________________________________________FINANCIAL REPORT Page INDEPENDENT AUDITORS' REPORT

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MANAGEMENT’S DISCUSSION AND ANALYSIS

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FINANCIAL STATEMENTS Statements of Plan Net Assets Statements of Changes in Plan Net Assets Notes to Financial Statements

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REQUIRED SUPPLEMENTAL INFORMATION Schedule of Funding Progress Schedule of Employer Contributions in Accordance with GASB Statement No. 25 Additional Information Re: Required Schedules Note to Required Supplemental Information

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STATISTICAL SECTION (Unaudited) Performance and Net Asset Value Historical Trend Information: Revenues by Source Expenses by Type Member Count Graphs: Total Benefit Payments Employer Contributions Total Benefit Recipients Top Ten Investment Holdings Schedule of Investment Managers and Advisor Fees

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Hochschil , Bloom & Compa ny L P Certifi ed Public Accountants Consultants and Advisors

INDEPENDENT AUDITORS' REPORT

August 4, 2006

Board of Trustees THE METROPOLITAN ST. LOUIS SEWER DISTRICT

We have audited the accompanying statement of plan net assets of THE METROPOLITAN ST. LOUIS SEWER DISTRICT EMPLOYEES' PENSION PLAN (the Plan) as of December 31, 2005, and the related statement of changes in plan net assets for the year then ended. These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audit. The financial statements of the Plan as of December 31,2004 were audited by other auditors whose report dated September 2,2005, expressed an unqualified opinion on those statements. We conducted our audit in accordance with U.S. generally accepted auditing standard s. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstat ement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effecti veness of the Plan' internal control over financ ial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and discl osures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in a)l material respects, the plan net assets of the Plan as of December 31,2005, and the changes in plan net assets for the year then ended , in conformity with U.S. generally accepted accounting principles,

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