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Thanks for everything today, guys. Giving you this as an FYI. Anna Heaton Deputy Press Secretary |Gov Rick Snyder 0: 517-241-6049]: 517-242-2187 @Republicanna xxxEND_PAGE:treasury01_b38_6783_6976_062 State or MicHioAn RICK SNYDER EXECUTIVE OFFICE BRIAN CALLEY GOVERNOA LANSING LT. GOVERNOR Contacts: FOR IMMEDIATE RELEASE Dave Murray, Laura Biehl or Anna Wednesday, Feb. 3, 2016 Heaton 11am. 517-335-6397 Gov. Rick Snyder: Budget recommendation will include $30 million for Flint water bill repayments Consumption and Consumer Use Credit provides relief to residents who cannot drink their water Funding is on top of $39.3 million in relief already allocated in last year LANSING, Mich. - Gov. Rick Snyder today said he will ask the Legislature to approve a $30 million water payment relief plan for the residents of Flint that will keep their water service on and eliminate the need to pay for water they cannot drink. The governor's proposal will be part of the 2016-2017 Fiscal Year budget he will present to lawmakers next week, and calls for a Consumption and Consumer Use Credit the city of Flint can apply to residents’ water bills until state and federal officials certify the water is safe for consumption. “Flint residents will not have to pay for water they cannot drink,” Snyder said. “My budget recommendation will include the request that the state make payments to the city’s water system for residential bills going back to April 2014 and alleviate the need for residential water shutoffs.” Under the plan, the city will credit residential bills going back to April 2014 for the cost of drinking water residents could not use. Because the city-issued water bills include sewage charges, residents should not plan to receive the exact amount they originally paid. Prior residents of Flint who paid water bills between April of 2014 and now will be able to submit their bills to the city for reimbursement. The city also will receive funding for unpaid residential bills to help maintain the financial integrity of the public water system. The funding to the city is meant to ensure no resident will have their water shutoff for nonpayment until the water is certified safe for consumption. “As an American who sympathizes with the plight of Flint residents, it's hard to find moral justification in having them pay for water that is not fit for human consumption or bathing,” said Marc Edwards, Charles P. Lunsford Professor of Environmental and Water Resources Engineering at Virginia Tech University. “This essentially refunds all the money associated with consumption or consumer use. | think it’s an amazing gesture of common sense and good will and it corrects an injustice. | don’t think there's a precedent for this. | feel so encouraged by the direction this is going.” xxxEND_PAGE:treasury01_b38_6783_6976_063 On Friday, Snyder signed supplemental spending for Flint in the amount of $28 million that will: Supply free bottled water, faucet filters, and testing kits for Flint residents; Put nine nurses in local schools to monitor student health and well-being; Provide better nutrition for students and infants through WIC and in-school nutrition programs; Replace fixtures in schools, daycares, nursing homes and hospitals; Provide for an infrastructure study using independent experts; Treat any children who have high lead levels in the blood, using diagnostic testing, nurse visits and environmental assessments in the home; Provide additional community education opportunities within the Genesee County Health Department; Compensate the Michigan National Guard's work to support water distribution; Assist with home lead abatement costs; Help the City of Flint with utility issues; Provide operational funding for the Flint Interagency Advisory Committee. The $28 million is in addition to $2 million allocated for improvements to Flint’s water system in February of 2015 and $9.3 million in October of 2015 to move back to Detroit's water system, test drinking water and provide wraparound services for children. The governor will formally present his Fiscal Year 2016-2017 budget recommendation on Feb. 10 in Lansing. HARE xxxEND_PAGE:treasury01_b38_6783_6976_064 WEEMLY FLiIVT C2-03- SAH, Legal, Ve Nelsen, 465, cA EPA CRDER ~ Met wl Cery Kw hast Change Plan j BLN pies BY DEG Buarc Cortese: Central - Werlerng , whe te be ali Sep EPA cisegrees Ped Cnalle. * ECe Chalke C5 > want te Change Disp Certters e4ak ef FD Wakir Seuples Legal Reguesr- Sok re S7T 7° GAY xxxEND_PAGE:treasury01_b38_6783_6976_065 February 3, 2016 Flint Water 1 Week Deliverable Questions to address: 1) How will we implement the Consumption and Consumer Use Credit program? 2) Will the water system run out of cash? 18 month cash flow statement 1. Without consumer use proposal 2. With consumer use proposal Understand underlying assumptions Revenues-- Usage Rates Collection ratio Expenditures Detroit System-fees KVA connection costs 3) If necessary, what levers do we have to manage a cash shortfall? Deliverables - Summary of Customer Use plan - Q&A on implementation details 18 month Flint Water/Sewer Cash flows — with / without credit program List of options to manage cash flow deficits (if necessary) xxxEND_PAGE:treasury01_b38_6783_6976_066 2flS/ Pole Flint Water Fund DRAFT State Payments Effect on Delinquencies (net to system) Billed/ Gy o coll pa : wR Revenues Collectible Delinquent State Pmts Balance Jul-as $ 2,921,585 $ 2,921,585 $ - § - $ - Aug-15 2,595,455 2,595,455 - - - Sep-15 2,366,248 2,214,755 151,493 - 151,493 Oct-15 2,366,248 1,750,177 616,071 - 767,564 Nov-15 2,366,248 =: 1,864,184 502,064 - 1,269,628 Dec-15 —-2,366,248 + 2,020,248 346,000 - 1,615,628 Jan-16 2,366,248 = 1,324,483 1,041,765 - 2,657,393 olt /q Feb-16 2,366,248 + = 1,324,483 1,041,765 = 3,699,158 ntee phd Mar-16 2,366,248 + =—1,324,483. 1,041,765 - 4,740,923 on ital Apr-16 2,366,248 + = 1,324,483 1,041,765 - 5,782,688, a May-16 2,366,248 —«:1,419,749 946,499 (10,000,000) ~ (3,270,813) , A Jun-16 2,366,247 1,419,748 946,499 (10,000,000) (12,324,314) “ Jul-16 2,366,247 1,064,811 «1,301,436 +~—- (10,000,000) (21,022,878) Aug-16 2,366,248 1,064,812 1,301,436 - (19,721,442) Sep-16 2,366,248 1,064,812 1,301,436 - (18,420,005) Ler al Oct-16 2,366,248 1,064,812 1,301,436 - (17,118,569) Nov-16 2,366,248 1,064,812 1,301,436 - (15,817,133) Dec-16 2,366,248 1,064,812 1,301,436 - (14,515,696) Jan-17 2,366,248 1,774,686 591,562 - (13,924,134) Feb-17 2,366,248 1,774,686 591,562 - (13,332,572) Mar-17 2,366,248 1,774,686 591,562 - (12,741,010) oe 2 Apr-17 2,366,248 1,774,686 591,562 - (12,149,448) wh o¥ May-17 2,366,248 1,774,686 591,562 - (11,557,886) Jun-17 2,366,248 1,774,686 591,562 - (10,966,324) ——— Assumptions: September 2015 forward - Billed/Revenues based on 2015 budgeted revenues. Collectible based on rates as shown in the cash flow (60%, 45%, 75%). Delinquent is difference between revenues and collectible. Balance is cummulative effect on cash to the water fund. a “9 : 4 j pn, engi (9h j1 hare the OF steset beduce tee feet dhe Hehe (ers Oe. poo F 4 Dest sel fe, feticea ® Liirelishe Ee adi rgecn tt FANE ao PaCee $C Aad Ht USER te! LeCot en xxxEND_PAGE:treasury01_b38_6783_6976_067 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 Billed/ Revenues 2,814,804 2,814,804 2,814,804 2,814,804 2,814,804 2,814,804 2,814,804 2,814,804 2,814,804 2,814,804 2,814,804 2,814,804 2,814,804 2,814,804 2,814,804 2,921,585 2,595,455 2,366,248 2,366,248 2,366,248 2,366,248 2,366,248 2,366,248 2,366,248 2,366,248 62% 38% Billed/Revenue Residential 1,745,178 1,745,178 1,745,178 1,745,178 1,745,178 1,745,178 1,745,178 1,745,178 1,745,178 1,745,178 1,745,178 1,745,178 1,745,178 1,745,178 1,745,178 1,811,383 1,609,182 1,467,074 1,467,074 1,467,074 1,467,074 1,467,074 1,467,074 1,467,074 1,467,074 City Treasurer's Report on FY 2015 Billed 12,795,396 20,461,515 33,256,911 Business 1,069,626 1,069,626 1,069,626 1,069,626 1,069,626 1,069,626. 1,069,626 1,069,626 1,069,626 1,069,626 1,069,626 1,069,626 1,069,626 1,069,626 1,069,626 1,110,202 986,273 899,174 899,174 899,174 899,174 899,174 899,174 899,174 899,174 65/20 State 1,348,291 1,348,291 1,348,291 1,348,291 1,348,291 1,348,291 1,348,291 1,348,291 1,348,291 1,348,291 1,348,291 1,348,291 1,348,291 1,348,291 1,399,439 1,243,223 1,133,433 1,133,433 1,133,433 1,133,433 1,133,433 1,133,433 1,133,433 1,133,433 30,586,198 38.5% business 61.5% residential xxxEND_PAGE:treasury01_b38_6783_6976_068 Karegnondi Water Authority Notes to Financial Statements September 30, 2014 Note 6 - Capital Lease basde Capital Leases - The Authority has entered into a lease ag financing the purchase of the intake pump station. This leaseq YJ capital lease for accounting purposes and, therefore, has been r Ursus value of the future minimum lease payments as of the incep minimum lease obligations and the net present value are as follov Years Ending © ie & September 30 2015 2016 2017 2018 2019 2020-2024 2025-2029 ae. 2030-2034 12 TZe 2035-2039 vi Probe Total minimum lease payments 63,184,254 Less amount representing interest _ (28,184,254) Present value $ 35,000,000 oh NVUNunvnnw gS Note 7 - Water Supply Contract Operating Subsidy Understanding that the goal of the Authortty Is to provide water to both the City of Flint and Genesee County Drain Commision (local units), the local units have agreed to pay the Authority a good faith payment equal to $32,300 per unit of water that the local unit has contractually agreed to purchase once the pipeline is fully operational. The City of Flint and Genesee County Drain Commission have contractually agreed to purchase [8 and 42 units, respectively, on a yearly basis. The yearly good faith payment will be paid through monthly installments and is expected to bring cash flows of $1,938,000 to the Authority. When the pipeline becomes fully operational, the monthly payments will be suspended and the contract with the local units indicates that a credit will be given on their monthly bills to return the funds contributed to the Authority. The terms of the repayment will be decided by the Board of Directors at the time that the pipeline is operational; however, the funds must be repaid within a maximum of 40 years. xxxEND_PAGE:treasury01_b38_6783_6976_069 Flint Payments to KWA Month Operational Charge Bond Interest" Band Prnepal” Total Mare16 48,450 00 48,450.00 Apr-18 48,450 00 48,450.00 May-18 48,450 00 48,450.00 Jun-16 48,450 00 48,450.00 Juk16 48,480 00 48,450.00 Aug-16 48,450 00 48,480.00 Sep-16 48,450 06 48,450.00 Oct-16 48,450.00 48,490.00 Novw-16 48,450 00 48,480.00 Dec-16 48,450 00 48,450.00 dane? 48,450 00 48,450.00 Feb-17 48,450 00 48,450.00 Mar-17 48,450 00 48,450.00 Apr-17 48,450 00 1,902,800 36 * 1,951 ,250.38 May-17 48,450 00 48,450.00 Jun-t7 48,450 00 48,450.00 Jul-17 48,450 00 48,450.00 Augel? 48,450 00 48,450.00 Sep-t7 48,450 00 48,450.00 Octe17 48,450 00 1,902,600.36 1,403,910.00 | 3,366,160,36, Now-17 48,450 00 48,450.00 Oec-17 48,450.00 48,450.00 Jan-18 48,450 00 48,450.00 Feb-18 48,450 00 49,450.00 Mar-18 48,480 00 48,450.00 Apr-18 48,450.00 1,874,542.61 1,922,982.61 May-18 48,450 00 48,450.00 Jun-18 48,460 00 48,450.00 duki8 48,480 00 48,450.00 Aug-18 48,450 00 48,450.00 Sep-18 48,450.06 48,480.00 Oct-18 48,45000 1,874,54261 — 1,462,050.00 |_3,385,042.64 *P&l due May 1 and November 1, Local Units must make debt serve payments 30 days pnor to due date, Fllnt responsible for 34.2% of KWA debt sericea “Interest capitalized through November 1, 2016, xxxEND_PAGE:treasury01_b38_6783_6976_070 WAY 6-08 piraO I ‘ONT ‘S2LVIOOSSY PHOUYE USONVIS TSUN OODIOD IneC EN METS “OO MOS o 0 o o ort tL waanat ewenes cay'omoet ‘szr'eo0e) goon 5 Hl od Cal pewcdord 9 porgeatey Ce o 0 ‘semn0 woo ° ES ° ° somo SoD ° Uae 169 Ut ree maSZH «6 COIS oD DHT ad wsesoat valor amaze | COREL DS OL Deo tioeset reso MRMZES «OMSL ND OEE UE LED ‘389 eaves eave9 ciomzes | coz. 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SONOS MALEAG ATLETS ELV ey wee =a AD SOON 20 1¥18 PEAC10 RO ner) ALRIOHIAY BSLV ZINOTERY rivet erring JARIOHLDY EBLE ONONDD Proess PRD coroos' exes “mp prsenhed seen ry 0) Se JO HEP TOY PRIS SP BELA NAL ONBLND YAO THOR “REE PAL LB PUD HOR SEKT PE HLA 1.99 MOLI SOT ZLOT uEONEY Hasiy Pru 22 Aap pte Keay evesueg Woy Aer cael se Bafa PONY UO PEER WN Su Aa Popo STRRTES eresaneas ear cy mend ed ur'0g sours ome Keene meg U2 PaTeg UEEERATY AN OAc Peppront eras Paarmsede rerears Porson — —_— Cs SEZ SE. VEDERSCEHS C00 AE BERSLE weN ESA COIS rr ge Bee EEE xxxEND_PAGE:treasury01_b38_6783_6976_071 Totals from Bill Print Summary export to Level One (water bill printing company) FISCAL YEAR 2014-2015 [READ | #ofcust billed | Water | Water _] WaterSeniee | —~d RESIDENTIA 811,024 | 4,452,243 | $12,427,025.39 | $0,044,499.26 | $20,461,514.65 | a a a a a commencaa—————SCdTSCidS TCC | READ | PofCustBiled | Water | _Water__| WaterSence | __——_—i 1,599 90,398 $681,423.23 $280,254.26 $961,677.49 | Dec-14 | 1,576 102,164 $766,773.86 $277,057.41 $1,043,831.27 Jan-15 1,575 1,563 1573 1,573 1,580 1,626 17,614 $3,301,942.83 TOTAL BILLED WATER REVENUE $33,256,910.93 xxxEND_PAGE:treasury01_b38_6783_6976_072 Sampson, Jeremy (TREASURY)