Correspondence among

I can answer only the first question at this point. The order has not yet been issued by the court. The parties are in the process of the drafting it.

FYI; see related attachment.

Thank you Wayne L. Workman Deputy State Treasurer Michigan Department of Treasury

Wayne: The Court of Appeals drew a distinction between two actions taken by Mike Brown: first, the ratification by him of water and sewer rale increases proposed by the then City Finance Director (“Townsend”) and second, the initiation and implementation by Mike himself of separate, additional water and sewer rate increases. The Court struck down only the former action; it left the latter action in place. The Court concluded that the water and sewer rate increases proposed by Townsend violated charter provisions requiring “notice and publication to its residents thirty days prior and by not waiting to implement those rates 97 xxxEND_PAGE:treasury01_b30_4670_4718_34 until July | of the next fiscal year.” The Court also concluded that nothing in Act 4, under which Mike acted, nor in subsequently enacted Act 436, authorized an Emergency Manager to simply ratify the actions of someone else (i.e., Townsend). Had Mike initiated and implemented the initial set of water and sewer rate increases on his own, the outcome would have been different. “[H]owever, [the statute] d[id] not support the action taken by the EM to expressly ratify and confirm the increases recommended by Townsend.” As a bottom line, this decisions appears to have limited impact upon the authority of Emergency Managers. Fred