Roger Fraser

Pursuant to your request I am providing a status report regarding important issues facing the city. BUDGET Not Responsive Not Responsive Not Responsive | ESSE GEG GSES GEOG GGE GEG a a a a a a a a a a a a i BLIGHT P.O. BOX 30716 « LANSING, MIGHIGAN 48909 « (517) 373-3200 xxxEND_PAGE:executiveofficeemails20_b1839_4479_4483_1 WATER - EM signed a resolution to enter into and sign a contract with KWA. - Water theft is a significant issue and administration plans to address it in the next 90 days. - Water rates have been raised 118% over the past 2 years and is an issue with residents - Effective 7/1/13 EM will eliminate the “readiness to serve charge” ($53) for any water customer who meets the state poverty exemption requirements. - DWSD attempting to cancel current contract with Flint and institute increased charges to the city during construction of KWA. | Not Responsive | nas Ot ROsponsive ORES LAWSUIT Not Responsive ren PS PPP a xxxEND_PAGE:executiveofficeemails20_b1839_4479_4483_2 Not Responsive xxxEND_PAGE:executiveofficeemails20_b1839_4479_4483_3 Not Responsive xxxEND_PAGE:executiveofficeemails20_b1839_4479_4483_4 | $8.0 million in Deficit elimination bonds provided by States ' $7.3 i enna Se Sant as nanny $(0.7) $ — S899, So $(11.9) SOY “. | FY 2012 $(19.2) “ending deticit $(27.2) 2008 2009 2010 2011 2012 2013 urplus / (Deficit) -~s-“Unassigned GF balance = =» Unassigned Fund balance (less deficit elimination bonds) S in millions Actual Budget General Fund 2008 2009 2010 2011 2012 2013 Total Revenues S 66.8 S$ 63.9 S$ 572 $ 67.2 S$ 515 $ 57.5 Total Expenses (79.5) (66.7) (64.7) (67.3) (61.7) (57.5) Other 0.6 05 3.0 7.5 1.7 - Surplus / (Deficit) $ (13.2) $ (3.2) $ (4.5) $ 73 = (11.9) $ : Less deficit elimination bonds $ (0.7) Reserved Fund balance 0.2 - - 1.6 - - Unassigned GF balance (7.0) (10.1) (14.6) (8.9) (19.2) (19.2) Less deficit elimination bonds (14.6) (16.9) of QhQh (27.2) Ending Fund Balances $ 6.9) $ 10.1) $ 14.6) $ 7.3 19.2 “y $ (19.2) sop BST ST aan paar aan aaa aaa aaa aaa aan aa aaa Oe === CESS SERS Rs BS RRR Re SENSE REN QUOENG Q ... Note: 2013 budget estimates per FY 2012-13 Budget Plan Restructuring Adviaary Services | Page 5 xxxEND_PAGE:executiveofficeemails20_b1839_4479_4483_5

Thanks! Edward B. Koryzno, Jr. | Administrator - Office of Fiscal Responsibility State of Michigan | 430 W. Allegan Street, Ist Floor | Lansing, MI 48922 (517) 373-4415 | (517) 373-0633 (fax) [email protected] ety Think Green! Don't print this e-mail unless you need to. CONFIDENTIALITY NOTICE: This e-mail, and any attachments, is for the sole use of the intended recipient(s) and may contain information that 1s confidential and protected from disclosure under the law. Any unauthorized review, use, disclosure, or distribution is prohibited. If you are not the intended recipient, please contact the sender by reply e-mail, and delete/destroy all copies of the original message and attachments. Thank you

TI will do the letter.

How do you want to handle this? Edward B. Koryzno, Jr. | Administrator - Office of Fiscal Responsibility State of Michigan | 430 W. Allegan Street, ist Floor | Lansing, MI 48922 (517) 373-4415 | (517) 373-0633 (fax) [email protected] = Think Green! Don't print this e-mail unless you need to. CONFIDENTIALITY NOTICE: This e-mail, and any attachments, is for the sole use of the intended recipient(s) and may contain information that is confidential and protected from disclosure under the law. Any unauthorized review, use, disclosure, or distribution is prohibited, If you are not the intended recipient, please contact the 138 xxxEND_PAGE:treasury01_b04_0379_0503_049 sender by reply e-mail, and delete/destroy all copies of the original message and attachments. Thank you

Background information from DEQ on KWA. They also believe that KWA remains the best option, even in light of the most recent offer by DWSD.

Please prepare a response to “Fred the Engineer” to be signed by Roger on behaif of Andy. Will you please let me know today how long it will take to get a response out and then also CC me on the letter once it does go? Thanks.

xxxEND_PAGE:treasury01_b04_0379_0503_031 Received by Flint yesterday evening.

Importance: High Do we have a sense on "when" review will be complete? At last word, Caleb was working up talking points to be used after the review is complete...but hoping ta have a sense of when it all could shake out...

FYI General Office Assistant Executive Office - Department of Treasury (517)241-2840 - direct (517) 373-3223 - main

FYI

9:00 for Ed Kurtz, Mike Brown, Jerry Ambrose, Ed Koryzno and me. 15 minutes for me with Andy following that meeting.

Please let me know soon as | cannot keep the whole morning open for long. Amy Hichez Executive Administrator to State Treasurer Andy Dillon Richard H. Austin Building 430 West Allegan Street Lansing, MI 48922 Office: 517-241-2624 Cell: Fax: 517-335-1785

Thanks. | will check with Flint. Sent from my iPhone

Is it possible to get time with Andy Monday afternoon to meet with Ed Kurtz and others about Flint's water? Sent from my iPhone 32 xxxEND_PAGE:treasury01_b06_0561_0924_248 Koryzno, Edward (T. reasury)

Friday does not work. How about the following week? Sent from my iPhone On Mar 15, 2013, at 4:05 PM, "Hichez, Amy (Treasury)" <[email protected]>

30 xxxEND_PAGE:treasury01_b06_0561_0924_250 Hi, Amy: (need 15 minutes with Andy next week. So you know, | will be attending the Governor’s Economic event at Cobo Monday and Tuesday. Thanks! Roger 31 xxxEND_PAGE:treasury01_b06_0561_0924_251 Pleyte, Beth (Treasury)

Fine! version sttached w/a dashboards. Edward 8. Koryzne, Jr. | Administrator - Office of Fiscal Responsibility State of Michigan | 430 W. Allegan Street, ist Floor | Lansing, MI 48922 (517) 373-4415 | (617) 373-0633 (fax) Korvenok@ michigan gay wy Think Green! Don't print this e-mail unless you need te. CONFIDENTIALITY NOTICE: This e-mail, and any attachments, is for the sole use of the intended recipient(s) and may contain information that is confidential and protected from disclosure under the law. Any unauthorized review, use, disclosure, or distribution is prohibited. If you are not the intended recipient, please contact the sender by reply e-mail, and delete/destroy all copies of the original message and attachments. Thank you xxxEND_PAGE:executiveofficeemails20_b1834_4448_4449_2

Transition of Solid Waste collection to private section has been better than expected, minimal complaints. | assured Ed that Andy is aware of the March deadline for KWA Back story on council tabling the KWA participation last week was about political posturing, Ed believes final vote will be 8/1 or 7/2 FY 12-13 budget on track at the % point Hired 7 officers with the additional public safety millage, but need 5 more. Will not be able to hire them until they run a new police academy about 16 weeks out. Retiree health care changes on hold until federal judge rules, current problem is the employee's costs exceed city’s cap by $150 and they are sending bills. They cannot differentiate between a 45 yr. old retiree receiving $17,000 of healthcare benefits versus a 65 yr. old retiree who is on Medicaid. Not sure of the outcome this will have on the judge’s ruling. Mike Brown talking to Jeff Barnes to make sure second year of state funding for the lockup is still available. 1 mentioned the sanitary sewer issue they are dealing with, 300-400 manholes need to be replaced @ $800 per manhole. Edward B. Koryzno, Jr. | Administrator - Office of Fiscal Responsibility State of Michigan | 430 W. Allegan Street, ist Floor | Lansing, MI 48922 (517) 373-4415 | (517) 373-0633 (fax) [email protected] = Think Green! Don't print this e-mail uniess you need to. CONFIDENTIALITY NOTICE: This e-mail, and any attachments, is for the sole use of the intended recipient(s) and may contain information that is confidential and protected from disclosure under the law. Any unauthorized review, use, disclosure, or distribution is prohibited. If you are not the intended recipient, please contact the sender by reply e-mail, and delete/destroy all copies of the original message and attachments. Thank you 161 xxxEND_PAGE:treasury01_b06_0561_0924_214 Lamphier, Wendy (T reasury)

Since the first of the year, the major issue in Flint has been the decision regarding long term water service in Flint. The choice is to maintain service with treated water from DWSD, or to participate with Genesee County in the construction of a raw water pipeline from Lake Huron to Flint (the KWA or Karegnondi project). City officials are clearly inclined toward the local project. A decision is needed in the next two weeks and 1s being held up, primarily, because of expressed State concerns about the benefits of one appreach versus the other,

Caleb, attached is a fairly detailed document we received in January that describes EM achievements since day one. xxxEND_PAGE:treasury01_b06_0561_0924_201 EM/EFM Achievements & Progress Major Events: December, 2011: Immediate reduction in administrative expenses of more than $600,000. Establishment of new budgetary guidelines calling for more discretion in departmental spending and ways in which to operate the City more efficiently at a reduced cost. Establishment of an EM Advisory Council for the purpose of gathering input and suggestions from members of the community. Creation of 5 volunteer advisory committees, one each centered on public safety, finance, infrastructure, legacy and community development for the purpose of helping to develop a business and operational plan for the State Treasurer. January, 2012: Business and Operational Plan submitted and approved by the Treasurer of the State of Michigan. Continual reorganization and elimination of departments to improve efficiency and reduce costs. February, 2012: Held Ward Forums to gather input from the community and share the primary focus of the business and operational plan in each of Flint’s nine wards by the Emergency Manager. Deficit Elimination Plan for FY 2011 submitted and approved by the Treasurer of the State of Michigan. March, 2012: Development and implementation adjustments in retiree health care to reduce costs while preserving their benefits. xxxEND_PAGE:treasury01_b06_0561_0924_202 e Grant agreement between the City of Flint and the State of Michigan Department of Community Health Crime Victims Services Commission reached to provide health services for the victims of violent crime. April, 2012: e Balanced Budget adopted cutting $22 million in expenses. ® Tentative Collective Bargaining Agreements reached with Flint’s AFSCME Local 1799, POLC Captains and Lieutenants’ Union, POLC Sergeants’ Union and IAFF Firefighters Union. e Healthcare for active employees and retirees reduced. ® 3 mill waste collection levy replace with residential waste collection fee, recycling service added starting in 2013. « Management and Maintenance of the City’s four golf courses undertaken by Flint City Golf, LLC and Mott Park Public Golf Course Association. May, 2012: © New City of Flint Public Safety Plan introduced with ongoing implementation of outlined strategies. * Michigan State Police patrol and detective partnerships implemented and expanded to enhance police presence in Flint. e $3.5 million to support reopening of the City Lockup approved and received from the State of Michigan. © SAFER grant application approved, $6.9 million grant awarded. e Water & Sewer rates adjusted to reflected true cost of service, thereby stabilizing the finances of the operation. « Special Assessment on street lighting done with the purpose of dedicating General Fund revenue to police and fire operations in order to preserve existing staffing levels. e Ginosko Development Co. chosen as new developer of Smith Village with MSHDA approval. xxxEND_PAGE:treasury01_b06_0561_0924_203 All five advisory committees convened for input on amendments to the business and operational plan. June, 2012: New Labor Contracts implemented which reduced employee expenses by the equivalent of 20% of wages. . Police and Fire staffing levels stabilized and maintained without layoffs. COPLOGIC online police reporting system for non-emergencies implemented. 6 month Financial &Operating Plan submitted to the State with amendments and achievements. Development of a plan with the Mott Foundation to extend and revise community policing grant, including funding for the Public Safety Administrator and Criminal Justice Advisory Committee Coordinator. All requirements met to receive 100% of State shared revenue allocation for FY 2013. . Began implementation of Legacy Committee recommendations to transfer Flint Employee Retirement System (FERS) to Municipal Employee Retirement System (MERS). August, 2012: Department of Energy Grant settled without any restrictive effects on the : possibility of future grant applications and awards. Agreement between City of Flint and Flint Community Schools for the funding and operation of a PEG (Public, Educational & Governmental) television studio reached. Michigan State Housing Development Authority (MSHDA) approved developer Ginosko Development Corporation chosen to continue and complete construction at the Smith Village development site. Genesee Towers sold to Uptown Reinvestment, relieves City of Flint of considerably large insurance liability. xxxEND_PAGE:treasury01_b06_0561_0924_204 e Agreement reached between Genesee County Sheriff and City of Flint for the operation of the Flint Holding Facility (Lockup). « Agreement reached between City of Flint and the Food Bank of Eastern Michigan for the renovation and maintenance of Brennan Park. e 21* Century Community Policing grant awarded to Flint by the Mott Foundation in the amount of $743,000. * Contract between City of Flint and Diponio Contracting for the upgrade of City infrastructure awarded. September, 2012: © Waivers of assessments or fees for entitled property owners by City Treasurer authorized. October, 2012: « Flint City Police Lockup reopened. ¢ Smith Village construction resumes with new developer. November, 2012: « Police and Fire Protection Millage put on ballot and passed. e Demolition resumes in locations identified as posing a threat to public safety. December, 2012: © Transition to 800 Mhz police & fire communications complete. e Cost of waste collection reduced by utilization of third party vendor Yearlong Efforts: e Unfunded Other Post-Employment Benefits (OPEB) liability reduced by over $500,000,000. © HUD repayments for ineligible expenses reduced by over half. xxxEND_PAGE:treasury01_b06_0561_0924_205 e Cost saving transfer from Flint Employees Retirement System (FERS) to Michigan Employee Retirement Service (MERS) voted for by the Flint Employee Retirement Board, e Audit of FY 2011 underway. e Stabilizing cash flow each month. ¢ Comprehensive evaluation of City water system and options for providing water undertaken. » Process of Master Plan for the City of Flint research and preparation underway. Coming Soon: e Decision on water provision and operation. e Indigent Water Fund for eligible water customers. xxxEND_PAGE:treasury01_b06_0561_0924_206 Koryzno, Edward (TI! reasury)

Thanks, | will share this info with Ed Edward B. Koryzno, Jr. | Administrator - Office of Fiscal Responsibility State of Michigan | 430 W. Allegan Street, 1st Floor | Lansing, MI 48922 (517) 373-4415 | (517) 373-0633 (fax) KoryznoE@ michigan.gov AS Think Green! Don't print this e-mail unless you need to. CONFIDENTIALITY NOTICE: This e-mail, and any attachments, is for the sole use of the intended recipient(s) and may contain information that is confidential and protected from disclosure under the law. Any unauthorized review, use, disclosure, or distribution is prohibited, If you are not the intended recipient, please contact the sender by reply e-mail, and delete/destray all copies of the original message and attachments. Thank you

Twill press Brom on #1. There is no conversation of which I am aware regarding a TAB in the near term for Flint. In his state of the city speech, Walling made his position clear that he and the Council could manage this.

FYI - Ed shared a couple of items that | thought you should be aware of: 1. KWA-The County is sending Bids for engineering services to size the pipeline on 3/22/13. Per Ed this is the absolute deadline for making a decision to participate Obviously he would like Treasury to share a decision with him ASAP. He also asked me to share with you that PA 72 does not appear to have a $50k spending limit that PA 4 had and he ts willing to proceed with the Project, independent of Treasury, if you desire. 2. Mayor Walling meeting w/ Governor — The Mayor is meeting with the Governor on 3/8/13 to discuss the TAB. Ed said that If Treasury 1s contemplating moving in this direction please let him know because it impacts the budget he will prepare. They are currently preparing a five-year budget. Appointment of a TAB only requires two year budget and certain charter provisions will increase costs to the City. xxxEND_PAGE:treasury01_b06_0561_0924_199 Edward 8. Koryzno, Jr. | Administrator - Office of Fiscal Responsibility State of Michigan | 430 W. Allegan Street, 1st Floor | Lansing, MI 48922 (517) 373-4415 | (517) 373-0633 (fax) KoryznoE@ michigan.gov 5 Think Green! Don't print this e-mail unless you need to. CONFIDENTIALITY NOTICE: This e-mail, and any attachments, is for the sole use of the intended recipient(s) and may contain information that is confidential and protected from disclosure under the law, Any unauthorized review, use, disclosure, or distribution is prohibited. If you are not the intended recipient, please contact the sender by reply e-mail, and delete/destroy all copies of the original message and attachments. Thank you xxxEND_PAGE:treasury01_b06_0561_0924_200 Stanton, Terry A. (7 reasury)

FYI