Correspondence between

"Khouri, Nick (TREASURY)" <[email protected]> Cary, Per our conversation, please find attached the cash flow which extends projections through June 30, 2017. I have also included additional assumptions for: 1. how customer bill relief will be distributed from the State to the City (amount and # of months) 2. an area for assumptions should the State appropriate additional funding for GLWA water purchase (amount and # of months) 3. Rate increase and collection rate assumptions for the period following 1/1/2017 through 6/30/2017 Please let me know if you have any questions. Best regards, Jody N. Lundquist Chief Financial Officer City of Flint 1101 S. Saginaw Street, 2nd Floor Flint, MI 48502 (810) 237-2441 xxxEND_PAGE:treasury01_b39_6977_7316_003 Aaxenptions Oetined Below ‘REVENUE ASSUMPTIONS, 11 User Charges forthe parted January 2025-December 2018 were based on YTD billing actin end colective rates 2. Reto iocrease sssorttions fective March 1. 2016 end lty 1. 2018 enay be modified inthe (rrr box below Bestorieg the FIS Master Fee Schedule ates pat the scteaded praleinary iojuncnon order woud reat ma rete Increase of apprommatety 27% ard woskd meet cobectiont beperang i Mart 2016 4 ifthe Macher Fee Schacht canes are restora in FPS then any rate crease axcoraption for FYI? trast abo wakes 27%. 3 eo tne siento of eres sree pat ston DCRR ASNT. Expenditure act tor the parce arnmary 2026-lue 2018 reflect orspent fds 93 of Deceesbe’ 71, POLS domed 2 Cxperchtare actiny fr the pervod Joly 2016- December 2018 essames the FYI? budget projectice at liad ia the Biennial FYE & FY17 taclgn ms adopted by emnerpyncy manson oer 41 Tee Cry wl BinWy haw to conti pearchaung traated war freem the Great Laloas Water Autharey throags the Mrst quarter of PYI7 Aa sracost fo dartrative Dorpows 0 shows + Regarding Rate travers Pri has been set sock that an wcresce would apc? tals begenciag @ March 2018. Any rate crane sseretion for FY1T mat abo iociade any rate axemptice mae fot FYI6 For Example FY16 restoration of Master Fee Scmedaie eqesh eporonkastel 27% Budgeted FYLT propection cf 5% cst be eaternd 4s 27%. = Ancernct Se As Bett $ 060809 ot Months Allocated to Clty - ‘Bol Mentha Allocuted to Cry D PROTECTED © PRORCTED © PRARCTED =‘ PROFECTED. aay AuGust SIVTIMIZR §=—_OCTORER x | ff 0 PROIECTED —PROIECTED © PROVECTED © PROIRCTED © PROVECTED © PROHECTED. a ” a ‘APR, 2016 5 8) 8 6 ProsecTe RtcnaNd CAE BALANCE 0. 22200827 OSL © ASOAG? = 22 BH SES 107,300 P2228 Grvasn — TLenssr) sezesz SAME) (4,778,872) (8AT2TT ASH RECEITE see Charges 2921,59 205485 124,75 Lmoi7r seks = aazozes | tage ass 993,362 sme sna36 993,362 1.909000 Pe: 993,362 933,302 (SSS EO LOSS EON LSS God 1055 68 3333 xxxEND_PAGE:treasury01_b39_6977_7316_004 f bees Ru RWLibs is “Zeta iv — Pec Ren? iat Hat dues or Chebit Senor ed J 10 a eh Bide Mn ee mache gue pefion | hlling Lal: Wn, ee fe OS Ngee We ailing a lined neh, wat (if ES ) tpt Xk the ae oe ox 7 apts / of sae stmeliic ob huudldl (an evel) ll ta 22 thc dalls te sll ae 2 epee Cory aug, ate C8) | | oe is Mawe # : dc eg de set? loi Yash three xxxEND_PAGE:treasury01_b39_6977_7316_005 teal Qua. Zu tau keilonire Hat Kio Z lM ietitedse Ges AttSe Orin lawucte t/kelbon M4 ppt7 ra j BSS ta 200 223-2 7 oe Me, (Nistor the Sthhhals of xxxEND_PAGE:treasury01_b39_6977_7316_006 xxxEND_PAGE:treasury01_b39_6977_7316_007 Top Ten Questions 1. How to handle residents who have moved 2. Whether residents in apartments get the 65% or the owner of the building receives 20%, a. Ifthe residents are to receive the credit, how will this work? 3. By accepting the credit, do the residents waive their rights to future claims? a. Ifso, how would this work? 4. When will the water fund run out of cash? 5. What is needed when the water fund runs out of cash? 6. Should the $30 million be distributed over several months or should it be credited to a customer’s account at one time. 7. When will the water be given a clean bill of health? 8. When will the city be able to resume collecting past due accounts? xxxEND_PAGE:treasury01_b39_6977_7316_008 Is the assumption that the consumption for the water remains constant throughout the cash flow period? Please clarify GLWA fees. $10 million and $2 million in escrow? Is the $10 million already spent (in October of 2015)? Bond payments for KWA — We see the 2016 payment of $7 million. Is this a yearly payment? Once each year? The copy from last Friday from the Jones & Henry Engineers shows a $690,000 payment for FY 2015. This does not show on the cash flow. Why? Would you please give me the amortization schedule for the bond payments to KWA? Upcoming bond sale — What and when? What does that do to the bond payment? How many gallons of usage is the cash flow based on? Is the usage number for 2017 (1.6 million) the expected final number or is there reduced payment or usage — GM water usage — in 2015 numbers (the 2017 numbers look reduced)? Will GM come back? The cash flow takes into account the GM exit. Jody does not know about when or if they will reenter the system. What is the contractual obligation for Detroit water? When does that end? What needs to be negotiated? Start/stop date — runs through? GLWA payments of $1.3 million after June 2016 is speculative. There is no contract. $12 million for FY 2016 is in escrow. The actual amount of outflows could be more or less depending on what happens with the water. Is there a cost for testing and treating water for KWA? Does not show on cash flow. You mentioned that the testing and treating of KWA water is in the line item, Capital Improvements. Which line is that on your cash flow? If it is in the cash flow, do I understand you correctly that you know of no additional costs for this? Transition, backup, and treatment fees baked in? Does the “Transfers to Debt Service Fund” line item take into account the restructuring of DWRF loans? We have a yearly amount of $1.8 million. Is that what this line is? xxxEND_PAGE:treasury01_b39_6977_7316_009 I Notes aT uw QULSTT ORL Fon. Aarry. © Cash Fine Aptsnr AppeBR fo revclucle Payments Te KW. foe Gehe. Ls? sane place thee oR thy SAT it pithudé? @ Seuxa furd pay weed Cig. Caw if Fake Prom (kee (ohh. IN Flay OF isspsmmee) oR oes cf Aave_te fake fro GETZ SeSe SONTEL RDA REY AOTE PAGES 7a5? CAT PMERS re « PAINTED IN USE xxxEND_PAGE:treasury01_b39_6977_7316_010 Stanton, Terry A. (Ti reasury)