LARRY SHEARSAND MARGARETFRALICK, in their individual capacities,and as classrepresentativesof all othersimilarly situatedplaintiff classmembers.

JUDGE: Archie L. HaymanP37516CASE NUMBER: 14- 103476-CZ

DOUGLAS BINGAMAN, individually and inHis official capacity asTreasurer of the City ofFlint, DARNELL EARLEY, individually andIn his official capacity asEmergency ManagerOf the City of Flint, And, THE CITY OFFLINT, MICIDGAN, a municipal corporation.

Valdemar L. Washington (P27165)Attorney for Plaintiffs718 Beach StreetP.O. Box 187Flint, MI 48501-0187810.407.6868

Peter M. Bade (P47546)Anthony Chubb (P72608)Attorneys for Defendant1101 S. Saginaw S103rd FloorFlint, MI 48502810.766.7146

ORDER APPROVING DEFENDANTS'PARTIAL COMPLIANCE WITH PRELIMINARY INJUNCTION

At a Sessionof Said CourtHeld in the Courthouse

On the 315t Day of August, 2015

the Court on August 26,2015, attachedhereto as Exhibit C.ARCHIE L. HAYMAN

IT IS SO ORDERED P~31516

ARCHIE L. HAYMAN, P37516CIRCUIT COURT JUDGEDATED: August 31, 2015

Anthony Chubb P72608Attorney for DefendantsAugust 31, 2015

Valdemar L. Washington P27165Attorney for Plaintiffs718 Beach Street/P.O.Box 187Flint, MI 48501-0187810.407.6868

EMERGENCY MANAGERCITY Ol? FLINT

GENESEE COUNTY MICHIGAN

.t\.DOPTION OF BIENNIAL BUDGET FO'RFISCAL YEARS- 2016 AND 2017

'By THE POWER AND AUTHORITY VESTED IN THE EMERGENCY MANAGER(!lEMa~GENCYMANAQER'1)J;<'OR TaE: CITY QFFLINT1 MICfUOAN C'CHY")PURSUANT TOMICIllGANig P1,JBLIQACT 43:(iQF tQ12,tOC-AL p'L,'qANcrAL

STABILITY AND-CHOICE ACT) (npA436IlhGERALD-A:tv$lt9SF;, THE EMERGENCYMANAGER~IS8UES THE FOLLOWINGDRDER:

Pursuant to PA 436-;,the EmergencyManager has broad-powers in receiver~hipto rectify thefil1ancia1 eIi1erg¢:tl,¢yriild to assure'the fiscai accountability Qfthe-Ci'tyand its capacity to provide0;1:'calise to he provl:de.dnec¢ssary servicesesserttIaito thepliblibhealth, sa.fetyand we1fare;and

Pursuant to PA 43'6; the:Bm~f,gencyManager acts illplace ofloeal ofJicials., speciJi¢!;llly theMayqrandCityCbunci~~unlessthe Erriergehc-y Manager delegates specific authority; and

Putsual\.tto PA436)the'.EITl~rg~ncyManagt:;r shall d¢velop andniayam.end a written financialaI1doperfttlng plan for theCity; tVlllcb shaJJhavethe objecp:vcsof :asSilljl1g th~t the City is able toprovide Of cause to he provided governmental services,essential to the public health, s~fety andwelfate,and assutiiigthefiscal accoUntability bfthelocal govermnent; and

PUrSUa11f:t0: PA 436~'!n:das:~preci;Jt!dltion, to-recmrpne,ndu1gthetfa'l.1sittQllofthe City to homerulewith oVe):sight hya Rec.e:ivershipTransition AdvisoryBO'i;lrd, the Emerge11CY Manager is to enacta two yearbudget; and .

The bu4g~tbeing eiWGtedhas b,eend¢ydoped in C6Jl~ertwitlI the May6r of the City Of Flint, andthe CityAdmini"stratoT, who havee{m.llnili~d to presenting thisbudgetto the City Council tor the

pWltase of having the'CityCoX!i1cilJ;~view the'budget;,aildconduct:a public he~l.lingOllsaid budget,~ndto cOi).sider ament\iuenfs to sa,idbudget, whidi amehdmeptsshall he presentedto the MayoI-,City Ad.J,n:J..nistratorand Receivership Transiti911Ad'visory Bo:ardfor approval, should such Boardbeestablished;

Based on the foregoing, it is hereby ordered that the attachedBiennial Budg~t for Fiscal Years2016 all,d2017, including the Master FeeSchedule, is adopted ai1.d shall be effectIve July 1,2015.Staffingred.uctions ,audl01:a4ditions sift f01;thin the Biennial Budget for Fiscal Years 2015 and2016 shall he implemented upon direction of the Emergency Mana,ger,or by the City'Adn:titijstrator; lfthe.re is no longer an El11ergeticyManagel'.

This Order may be amelided, modified, repealed or terminated by any subsequentOrder issuedby theE)net~encyManager.

Dated: ~£lr Ma-GJ£brose~E1liergencyManager·GittofFIlnt

xc: Stateof Michigan Department of TreasuryMayor D&;ylieWallingFUnt CitycoUMil.Inez.Brown,. City Clerk

-noo~--

en :!:III5. III(/I

n 8'0III .. _.z "1\.:i!"III & ~3 111

III (IJ-n- n

"::r 5'

III CD -III a.

~t:'iD

'tJIII

~ 410 ,-. VI t.hi:n~D;l~

INg "' .•.. '" '""Oo~ N..• ., o(])O .•..nn <0"'''' ...,no ())~~ ;.,"Tl-n "'<»--l a

STATE OF MICIDGANIN THE CIRCUIT COURT FOR THE COUNTY OF GENESEE

LARRY SHEARS AND MARGARETFRALICK, in their individual capacities,and as classrepresentatives of all othersimilarly situated plaintiff classmembers,

Plaintiffs,

DOUGLAS BINGAMAN, individually and inHis official capacity asTreasurer of the City ofFlint, DARNELL EARLEY, individually andIn his official capacity as Emergency ManagerOf the City of Flint, And, THE CITY OFFLINT, MICHIGAN, a municipal corporation.

Defendants.

Valdemar L. Washington (P27165)Attorney for Plaintiffs718 Beach StreetP.O. Box 187Flint, MI 48501-01878100407.6868

Peter M. Bade (P47546)Anthony Chubb (P72608)Attorneys for Defendants1101 S. Saginaw 81. 3rd FloorFlint, MI 48502810.766.7146

----------------------_/

NOTICE OF PARTIAL COMPLIANCE WITH PRELIMINARY INJUNCTION

"1. Charging and collecting a water readiness to serve charge, alsoknown as the water service charge from its water and sewer customersuntil it comes into compliance with Flint City Ordinance 46-52." SeeExhibit A, Preliminary Injunction, at page 3.

(a)(l) Where the water bills are for large commercial andindustrial accounts, a readiness-to-serve charge shall apply. Thechargesshall be established from time to time by resolution of theCity Council, kept on file by the City Clerk, and contained inAppendix A of the City Code...

(b)(1) Where the customer has a remote water meter andthe bills are for residential, small commercial and industrialaccounts, a readiness-to-serve charge shall apply. The chargesshall be established from time to time by resolution of the CityCouncil, kept on file by the City Clerk, and contained in AppendixA of the City Code... " SeeExhibit B, City Ordinance 46-52.

Q: Okay. In the subpoena, I put that you were to not only appeartoday, but you were to produce a copy of the resolution of the Flint CityCouncilor Emergency Manager contained in Appendix A of the City Codekept on file with the City Clerk, referred to by the Flint Charter Section 46-52, that established the water readiness-to-servecharge for water customers

between September 16th, 2011, and August 6th

, 2015; do you remembergetting that subpoena,ma'am?A. Yes, I do.Q. Do you remember that language,reading it in the subpoena?A. Yes, um hmm.Q. After you got that subpoena,what did you do?A. I immediately had my staff researchto determine if we had thedocument.Q. And what did your staff determine as a result of their search?A. And,. of course, I checked behind the staff and -Q. I'm sorry?A. And I did check behind my staff aswell.Q. And what did you and your staff determine?A. We determined, as of this morning, that we did not have theparticular document that you were requesting.SeeExhibit C, Transcript of November 6 hearing, at pg. 27.

"What I said though was - if you remember, what I said was that untilyou put the rate - the memo in place - if you go back over there today andyou guys put it in place, you can collect; but I agreewith Mr. Washingtonthat you have to follow the ordinance; and the ordinance provides that thathas to be put in place. So, if you go back and put that in place, then youstart collecting." SeeExhibit F, Transcript of November 7 Hearing, at pg.82.

S;f;~Anthony Chubb (P72608)Deputy Chief Legal OfficerCity of FlintAttorney for Defendants1101 S. Saginaw St.Flint, MI 48503(810) 766-7146

PROOF OF SERViCEThe undersllllltid rerti1ies li1i~t t.htl roregoina Instrument was

serwd upon al~partie,: to the 1ll}OWlcausa to eecfl of the aitomt:lysof recordharemat t '. as' ve ,,&:lrossesdisclosed~pleadlnos on • 20 \ ~

By: :m'S' Mali 0 FAX ~Hand Delivered 0 OvemlglTt Courier

o ~ ~1" \Ll Q,Other QSignature_~--'L_~~,-",__;..;::.~_1:\.-=-.o..~.-ok,,-,-' -'="-~_~