A special meeting of the Council for the City of Crystal Falls was held in the Council Chamber of the City Hall on Tuesday, August 24, 2004 at 2:30 p. m. Central Time.

Present: Mayor Hendrickson, Councilors Thrasher, Benda, and Valesano.

Absent: Councilor Koszyk.

Also present was City Manager Nordeman.

The purpose of this special meeting was to award the sale of Electric Utility System Revenue Bonds, Series 2004.

Mr. Mike Dixon of Public Financial Management was available to discuss the sale with the Council.

The following preamble and resolution were offered by

Council Member Benda and supported by Council Member Valesano:

WHEREAS, pursuant to Act 94, Public Acts of Michigan, 1933, as amended, and an ordinance and a resolution adopted on August 9, 2004, the City Council of the City of Crystal Falls, County of Iron, State of Michigan (the "Issuer") has offered for competitive sale its $950,000 Electric Utility System Revenue Bonds, Series 2004 (the "Bonds"); and

WHEREAS, Tuesday, August 24, 2004, at 3:00 p.m., Eastern Daylight Time, was set as the date and time for opening bids for the purchase of the Bonds; and

WHEREAS, said bids have been publicly opened and read; and

WHEREAS, the bids attached hereto as Exhibit A have been received; and

WHEREAS, it is appropriate for the Issuer to award the sale of the Bonds to the bidder whose bid meets the requirements of law and which has been determined to produce the lowest true interest cost to the Issuer.

NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS:

1. The bid of Citizens Bank, Flint, MI, as attached hereto as part of Exhibit A, is determined to produce the lowest interest cost to the Issuer and the bid is hereby approved and accepted.

2. Checks of the unsuccessful bidders shall be returned to each bidder’s representative or by overnight courier as set forth in the Official Notice of Sale as published.

3. The Bonds shall be dated, shall be in the principal amounts, shall mature, bear interest, be subject to redemption and otherwise conform in all respects to the terms set forth in the Official Notice of Sale as published in The Bond Buyer.

The Issuer hereby covenants that, to the extent permitted by law, it shall take all actions within its control necessary to maintain the exclusion of the interest on the Bonds from adjusted gross income for general federal income tax purposes under the Internal Revenue Code of 1986, as amended, including, but not limited to, actions relating to the rebate of arbitrage earnings, if applicable, and the expenditure and investment of Bond proceeds and moneys deemed to be Bond proceeds.

All resolutions and parts of resolutions insofar as they conflict with the provisions of this Resolution be and the same hereby are rescinded.

EXHIBIT A

CITY OF CRYSTAL FALLS

$950,000 ELECTRIC UTILITY SYSTEM REVENUE BONDS, SERIES 2004

BIDDING RESULTS – Sale Date: August 24, 2004

Bidder 1 Citizens Bank $940,500.00 4.582%

Bidder 2 Raymond James & Associates,Inc. $940,500.00 4.680%

Bidder 3 Fifth Third Securities $940,500.00 4.999%

AYES: Members Valesano, Benda, Thrasher, and Hendrickson

NAYS: None

RESOLUTION DECLARED ADOPTED

Meeting adjourned at 2:45 p.m.