Correspondence among

Date: Thursday, March 19, 2015 3:50:09 PM Sonya, The restructuring actually has a positive effect with respect to state match due to additional interest being paid by Flint over the remaining life of the loans. The restructuring is fairly simple in that roughly $2.2 million in principal payments due this calendar year are being spread over the remaining life of the loans. There is no extension of the final maturity and interest will still accrue and be paid this calendar year. It is also worth mentioning the $2.2 million deferral will be repaid in as near equal amounts as we could manage, rounded to a $5,000 increment. There is a small reduction in the pace of recycling and in turn capacity, but in the context of the overall program it has little to no impact. As mentioned, to effectuate the restructure, the loan repayments are being modified. Please let me know if you need anything else. Thank you John

Sonya, The restructuring actually has a positive effect with respect to state match due to additional interest being paid by Flint over the remaining life of the loans. The restructuring is fairly simple in that roughly $2.2 million in principal payments due this calendar year are being spread over the remaining life of the loans. There is no extension of the final maturity and interest will still accrue and be paid this calendar year. It is also worth mentioning the $2.2 million deferral will be repaid in as near equal amounts as we could manage, rounded to a $5,000 increment. There is a small reduction in the pace of recycling and in turn capacity, but in the context of the overall program it has little to no impact. As mentioned, to effectuate the restructure, the loan repayments are being modified. Please let me know if you need anything else. Thank you John

Matt & John T understand that the Flint loans will be restructured per the Governor's office. I am concerned about the impact this will have on the DWRF especially the capacity available in the fund to use for state match. Can you share the details of how the loans will be restructured such that the available capacity is not affected nor the loan repayments? Sonya T. Butler, Chief Revolving Loan Section Office of Drinking Water & Municipal Assistance Michigan Department of Environmental Quality 525 W. Allegan | Lansing, MI 48933 @ 517.284.5401 xxxEND_PAGE:deq04_b409_4652_4653_1 xxxEND_PAGE:deq04_b409_4652_4653_2

Date: Thursday, March 19, 2015 3:27:58 PM Matt & John T understand that the Flint loans will be restructured per the Governor's office. I am concerned about the impact this will have on the DWRF especially the capacity available in the fund to use for state match. Can you share the details of how the loans will be restructured such that the available capacity is not affected nor the loan repayments? Sonya T. Butler, Chief Revolving Loan Section Office of Drinking Water & Municipal Assistance Michigan Department of Environmental Quality 525 W. Allegan | Lansing, MI 48933 @ 517.284.5401 xxxEND_PAGE:deq04_b088_3239_3239_1