NOTICE OF HEARING ON

CREATION OF LOCAL IMPROVEMENT DISTRICT

LITTLE BLACKTAIL RANCH WATER DISTRICT

Bonner County, Idaho

LOCAL IMPROVEMENT DISTRICT NO.1

NOTICE IS HEREBY GIVEN that Tuesday, April 19, 2005 at the hour of 7:00 o'clock P.M., at 975 Silverado Road, in Careywood, Idaho, has been fixed, pursuant to Resolution No. 2005-2, adopted on March 15, 2005, ("the Resolution of Intention") as the time and place for a public hearing at which time the owners of property to be assessed within proposed Local Improvement District No. 1 ("LID No.1") may appear before the Board of Directors (the "Board") of the Little Blacktail Ranch Water District, of Bonner County, Idaho (the "District"), and be heard as to the propriety and advisability of creating LID No. 1 and acquiring and construction the Project, as hereinafter described, and hear all complaints, protests, and objections which may be made in writing and filed with the Secretary of the Board on or before said time by any owner of any parcel of land to be assessed.

The boundaries of the proposed LID No. 1 are described in the Resolution of Intention and are incorporated herein by this reference.

A general description of the improvements to be constructed (the "Project"), involves expansion, improvement and betterment of the water system of the District to meet the standards of the State of Idaho, Department of Environmental Quality, including the installation of a slow sand filter and pipe repairs, together with engineering, legal, accounting, costs of bond issuance, costs of interim financing, costs of financial advise, and other costs incidental thereto. All work will be performed and all materials supplied after the advertisement for bids therefore by giving notice calling for sealed bids for the construction of work.

The total Project cost is approximately $495,000, all of which shall be borne by and assessed against the properties specially benefited by such improvements. It is anticipated that the remaining costs of the Project may be paid from USDA - Rural Development and available grant funds from other state and federal agencies, or with other legally available funds of the District. Actual assessments may vary from estimated assessments as long as they do not exceed a figure equal to the increased true and fair value the improvement adds to the property.

The costs and expenses of the Project to be paid from special assessments shall be assessed against the lots and parcels within the proposed LID No. 1 according to the benefits derived method of assessment for said improvements.

Written protests and objections to the creation of LID No. or to the manner of assessment or inclusion of property therein may be filed by any owner or any parcel of land to be assessed with the Secretary of the Board of Directors at or before 7:00 o'clock P.M. on April 19, 2005, by mailing or delivering a written protest to the Secretary of the Board, Little Blacktail Ranch Water District, P.O. Box 395, 975 Silverado Road, Careywood, Idaho, 83809.

DATED this 29th day of March, 2005.

LITTLE BLACKTAIL RANCH WATER DISTRICT,

Bonner County, Idaho

Chairman, Board of Directors

ATTEST:

District Secretary

Legal 5975

April 1, 2, 5 2005