JUNE 30, 2004

BUDGET YTD %EXP

GENERAL & MAIN 76260.00 43835.00 57

STREETS 20000.00 1667.00 8

WATER 11000.00 3495.00 31

MAIN BLDG 2000.00 1346.00 67

CEMETERY 5572.00 1475.00 26

BUDGET YTD REV %EXP

PROPERTY TAX 19808.00 13543.00 68

STATE ROAD

LIQUOR SALES TAX 15386.00 11803.00 76

WATER 11000.00 12949.00 117

OTHER (INT,FRAN) 5045.00 8911.00 176

CEMETERY 1005.00 505.00 50

CITIZENS ARE INVITED TO INSPECT THE DETAILED SUPPORTING RECORDS OF THE FINANCIAL STATEMENT.

SHIRLEY RAMEY

CITY CLERK

Legal 5365

July 29, 2004

NOTICE OF ELECTION

ON THE PROPOSED FORMATION OF

LITTLE BLACKTAIL RANCH WATER DISTRICT

NOTICE IS HEREBY GIVEN that pursuant to an order of the District Court of the State of Idaho, in and for the County of Bonner, an election will be held regarding the proposed Little Blacktail Ranch Water District, as described in the Petition for Organization of Water District on file with said Court, on:

August 3, 2004

between the hours of 12:00 P.M. and 8:00 P.M., for the purpose of voting upon the question of the creation of said District and, if said District is created, to elect the Board of Directors thereof.

Qualified electors may vote at the following location:

Cavanaugh Residence

146 Montival Road

Careywood, Idaho 83809

At said election, only qualified electors of the proposed District will be allowed to vote. A qualified elector shall be any natural person who is qualified to vote in an Idaho general election, and who is an actual resident of the proposed District. A person wishing to vote in the election must either be a qualified registered voter or register to vote on the day of the election, meeting the requirements prescribed in Idaho Code for Election Day Registration.

The questions to be submitted to the electors shall be by ballot reading substantially as follows:

ORGANIZATION OF DISTRICT:

Should the Little Blacktail Ranch Water District be created according to the terms of Title 42, Chapter 32, Idaho Code, the boundaries of which are described in the Petition for Organization of Water and Sewer District on file with the District Court of the State of Idaho, in and for the County of Bonner?

YES r

NO r

ELECTION OF BOARD OF DIRECTORS:

In the event of creation of the Little Blacktail Ranch Water District, five (5) directors are to be elected by this ballot. The following qualified electors have been nominated as directors:

Vote for two (2) directors to act until the first biennial election (two-year term):

Warren Grant r

Lee Campbell r

________________ r

Vote for two (2) directors to act until the second biennial election (four-year term):

Tuck (Thomas) Cavanaugh r

Carole Wigren r

________________ r

Vote for one (1) director to act until the third biennial election (six-year term):

Carter Sandahl r

________________ r

Legal SNP #5332

July 15, 22, 29, 2004