SUBJECT:

"Proposed" U.S. Postal Service Rate Increase

On June 30, 1997, the U.S. Postal Service Board of Governors voted to file
a request for a one-cent increase in the First-Class stamp and adjustments
averaging 4.5 percent across all categories of domestic mail. It is
expected that these increases will go into effect in May, 1998.

This is the smallest increase the U.S. Postal Service has ever requested.
It is less than half the rate of inflation after nearly three and a half
years of steady stamp prices and the second longest period of rate
stability in the twenty-six year history of the Postal Service. This
request is considered as "just enough" to help maintain universal service
for the nation, offset higher costs over the next two years, and continue
to improve service performance across all categories of mail.

The highlights of this proposal are as follows:

                 CURRENT     PROPOSED
First Class - 1 oz.           $ .32         $ .33
First Class - Additional oz.        $ .23         $ .23
Nonstandard Surcharge         $ .11          $ .16
Postcard               $ .20          $ .21
Express Mail             $ 10.75        $ 11.25
Priority Mail             $ 3.00        $ 3.20
Certified Fee             $ 1.35        $ 1.55
Return Receipt            $ 1.10        $ 1.50
Registered Mail (minimum value)    $ 4.95        $ 7.30
Insurance (minimum value)      $ .75          $ .90
Library Rate             $ 1.12         $ 1.44
Book Rate              $ 1.24         $ 1.24

Mail Services will continue to monitor this USPS request and keep you
informed of its status.

Our staff is always available to answer any questions regarding your
mailing needs or assist you in making a decision on the most cost effective
program for your department. Please call us on x-41164.

Pat Procopio Manager Mail Services