Correspondence between

How are you guys coming with this ? Do you have an ‘eta’?.

| think Nick is good with this... but can we get (even on a separate page) some of the ‘factoids’ we talked about e.g., # of customers in the water sys (residential — business), approx. sys annual revenues, average resident water bill, miles of pipeline, any changes over the past couple years ie, declines.

So in re-reviewing the timeline are you guys good with the timeline other than the points | outlined/noted yesterday i.e., are there any other refinements?

Tom: This is in response to your earlier email. Randy

Tom: This is in response to your earlier email. Randy

See the note(s) below... we do need to take a deeper dive to confirm some of the questions raised late yesterday. We should try to do so quickly. Thanks. Sorry for the rush.

Importance: High Wayne & lare tied up for the next hour+. Can you guys start looking at this.

! would also think about maybe including MCPS in to this mix. Understanding there is not yet a final order from the recent court decision; it will have an impact on the cash flow & projections.

Tom: These are the two rulings that | have. Randy

Can you send me the two rulings. Thanks

Tom A Flint city attorney confirmed that it 1s Ordinance Section 46-52.1 date of Apri! 15 by which the Finance Director shal! calculate and transmit to the Mayor and City Council the new water rate schedules. Let me know if you need any further information. Randy

Did you guys go back to the court ruling to confirm whether the operative date re fee increases is Aprilor Dec 31. It would be helpful if we could know that by the end of today. xxxEND_PAGE:treasury01_b40_7317_7621_111 STATE OF MICHIGAN IN THE CIRCUIT COURT FOR THE COUNTY OF GENESEE LARRY SHEARS AND MARGARET JUDGE: Archie L. Hayman FRALICK, in their individual capacities, P37516 and as class representatives of all other CASE NUMBER: 14- 103476-CZ similarly situated plaintiff class members. PLAINTIFFS. Vs. DOUGLAS BINGAMAN, individually and in His official capacity as Treasurer of the City of Flint, DARNELL EARLEY, individually and In his official capacity as Emergency Manager Of the City of Flint, And, THE CITY OF FLINT, MICHIGAN, a municipal corporation. DEFENDANTS. f Valdemar L. Washington (P27165) Peter M. Bade (P47546) Attorney for Plaintiffs Anthony Chubb (P72608) 718 Beach Street Attorneys for Defendant P.O. Box 187 1101 S. Saginaw St. 3 Floor Flint, MI 48501-0187 Flint, MI 48502 810.407.6868 810.766.7146 PRELIMINARY INJUNCTION Ata Session of Said Court Held in the Courthouse On the 7" Day of August, 2015 PRESENT HONORABLE ARCHIE L. HAYMAN, CIRCUIT COURT JUDGE THIS MATTER, having come on to be heard by Plaintiffs’ Motion for Issuance of a Preliminary Injunction, the City of Flint having responded thereto, the Court having read the same and taken testimony and received exhibits into evidence, in Open Court, and being otherwise duly advised in the premises; xxxEND_PAGE:treasury01_b40_7317_7621_112 IT IS THEREFORE ORDERED AND ADJUDGED that Plaintiffs’ Motion for Issuance of a Preliminary Injunction be and the same is hereby GRANTED for the reasons stated on the Record in Open Court, which include the following reasons: 1, The September 16, 2011 35% water and sewer rate increases, that have been collected by the City of Flint between September 16, 2011 and the date hereof, were not implemented in conformity with Flint City Ordinances 46 — 52.1 and 46 — 57.1. The water readiness to serve charges that have been collected by the City of Flint from September 16, 2011 to the date hereof are not calculated nor authorized in accordance with Flint City Ordinance 46 — 52. The July 1, 2012 12.5 % water rate increase and 45% sewer rate increase implemented by Emergency Manager Michael Brown under Public Act 4 of 2011 became void with the electors’ referendum/rejection of Public Act 4 of 2011. Following the rejection of Public Act 4 of 2011 there was no Order signed by any later Flint Emergency Manager that adopted or implemented the September 16, 2011 water and sewer rate increases and the July 1, 2012 water and sewer rate increases. The liens placed against the real property of the City of Flint’s delinquent water and sewer customers were due to delinquencies caused by the September 16, 2011 and July 1, 2012 water and sewer rate increases and the charging of the water readiness to serve charge from September 16, 2011 to the date hereof. xxxEND_PAGE:treasury01_b40_7317_7621_113 6. The City of Flint has disconnected the water service for its delinquent water and sewer customers due to their failure to pay delinquencies caused by charges related to the September 16, 2011, July 1, 2012, water and sewer rate increases, and water readiness to serve charges. IT IS FURTHER ORDERED AND ADJUDGED that the City of Flint, its agents, employees, servants, attorneys, and those other persons in active concert or participation with it, be and the same are hereby ENJOINED from the following actions, until further Order of This Court: lL. Charging and collecting a water readiness to serve charge, also known as the water service charge from its water and sewer customers until it comes into compliance with Flint City Ordinance 46 — 52. 2. Charging and collecting water and sewer rates that include the September 16, 2011 35% rate increases. 3. Disconnecting the water service for its delinquent water and sewer customers wherein the delinquency arose between September 16, 2011 and the date hereof. 4. Placing any further liens against the real property of its delinquent water and sewer customers for delinquencies that occurred between September 16, 2011 and the date hereof. 5. Taking any monies from the Water Supply Fund, which include the water and sewer funds, and using those monies to pay general obligations. xxxEND_PAGE:treasury01_b40_7317_7621_114 If IS FURTHER ORDERED AND ADJUDGED that no Security is required of Plaintiffs herein as this matter is in the public interest as the actions of the City of Flint that are being enjoined are actions that Defendant City of Flint has been engaged in since September 16, 2011, which violate its own Ordinances. IT IS FURTHER ORDERED AND ADJUDGED that the parties are to meet and negotiate the repayment of 15.7 million dollars to the Sewer fund by the General Fund and are to return to this Court on November 13, 2015 if they are unable to reach agreement on the return of the 15.7 million dollars to the Sewer Fund. The parties are to provide this Court with their proposals for repayment of the 15.7 million dollars to the Sewer fund, if they are unable to reach an agreement on the process of repayment of the 15.7 million dollars to the Sewer fund by the General Fund by October 31, 2015. The City of Flint shall immediately establish funds for its water and sewer funds, also known as the Water Supply fund, that are in compliance with the Revenue Bond Act of 1933 as recited by the Court in open Court. The Finance Department of Defendant City of Flint shall prepare a document/report that creates for this Court a history of the expenditures for the Sewer fund between 2007 and 2013 that reflects how those expenditures would have occurred if the 15.7 million dollars had not been transferred to the General Fund/Lawsuit Settlement Fund. The issue of Emergency Manager Brown’s July 1, 2012 12.5% water rate increase and 45% sewer rate increase is hereby preserved until the Court has reviewed the document/report prepared by the City of Flint’s Finance Department. xxxEND_PAGE:treasury01_b40_7317_7621_115 IT IS FURTHER ORDERED AND ADJUDGED that the parties shall attend a Pre-Trial Conference for this case to be held on November 13, 2015 at 12:00 PM. IT IS SO ORDERED ARCHIE L. HAYMAN, P37516 CIRCUIT COURT JUDGE AUGUST 7, 2015 The above Order is Approved as to Form: Anthony Chubb, P 72608 Deputy City Attorney Prepared By: Valdemar L. Washington Attorney for Plaintiffs 718 Beach Street/ P.O. Box 187 Flint, MI 48501-0187 810.407.6868 xxxEND_PAGE:treasury01_b40_7317_7621_116 Re: Flint lawsuit memo - Koryzno, Edward (Treasury) Page 1 of 1 Re: Flint lawsuit memo Workman, Wayne (TREASURY) Frt 1/8/2016 3:40 PM To Steckelberg, Larry TREASURY) <Steckelbergl @michigan.gov>, Ce Koryzno, Edward (Treasury) <KoryznoE@michigan,gov>; Dempkowski, Angela (Treasury) <DempkowskiA@michigan gov>, We should ask Fred to check his files also Sent from my Phone

Privilege Work Product -11-16-2015.pdf; Draft Flint Drinking Water Events Timeline 11-6-15.docx FYI

All, Ken is working on the Flint Water Taskforce. Angela, could you et up a meeting for November 9 at 3:00 in Treasury for Ken, Randy, Tom(if available) and me to talk about the timeline for what happened in Flint. We should have the material we gathered for Terry available. Thanks, Wayne

Hello All: xxxEND_PAGE:treasury01_b36_6099_6552_139 Per our conversation, I have attached the financials submitted to the RTAB on October 20, 2015. Also, I will follow-up with a detailed financial spreadsheet of our water/sewer cash flow to date. Thanks, Natasha L. Henderson, City Administrator City of Flint, Michigan 1101 S. Saginaw St. Flint, MI 48502 Email: Phone: (810) 237-2057 www.cityofflint.com woeeennen= Forwarded message ----------

Wayne and Tom: Yes, they send them on a monthly basis to Eric. Randy -----Original Message----

Good. Also the Treasurer does not need to approve the budget amendment per Fred.

Wayne and Tom: Mayor Walling and Natasha were advised to proceed. Thanks, Randy

Please advise the City that they should proceed to get connected immediately Wayne L. Workman Deputy State Treasurer Michigan Department of Treasury

Tom and Wayne: During our telephone call today, Mayor Walling indicated that they have received the go ahead from the Drain Commissioner and are performing the bacti tests on the eight mile waterline. if all goes well, they may be able to begin to use DWSD water soon. The Mayor wanted to know if they can use DWSD water before the Legislature takes action on the $6M assistance package? Please advise. Thanks, Randy Randall Byrne | State Administrative Manager Local Government Services - Office of Fiscal Responsibility State of Michigan | 430 W. Allegan Street, 3rd Floor | Lansing, MI 48922 (517) 335-2521 | (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 sender by reply e-mail, and delete/destroy all copies of the original message and attachments. xxxEND_PAGE:treasury01_b35_5648_6098_296 Hudson, Deanna (TREASURY)

Final.pdf Wayne L. Workman Deputy State Treasurer Michigan Department of Treasury

City’s usage is 14 MGD/Day Timeline is 9 months until June 2016 Fixed Cost is $662,100 for 9 months or $5,958,900 Commodity Rate is $501,383/month Total Monthly Cost is $1,163,483 Cost until June 2016 is $10,471,347 The City does not know the cost to move the water plant into stand-by mode. However, they have indicated that there might be some reduced costs as lower chemical costs will be incurred. Eric Cline | Department Manager | State of Mictugan Michigan Department of Treasury | Local Government Financial Services Division | Fiscal Responsibility Section 430 W. Allegan Street, 3rd Floor | Lansing, MI 48922 Lansing Office (517) 335-2078 | Cell Phone (517) 243-8450 | Traverse City Office (231) 922-8228 E-mail cliner 1 @muchigan.gov CONFIDENTIALITY NOTICE: This e-mail, and any attachments, 1s far 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 1s prohibited. If you are not the intended recipient, please contact the sender by reply e-mail, and delete/destroy all copies of the orginal message and attachments Thank you. 14 xxxEND_PAGE:treasury01_b35_5648_6098_032