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NOTICE OF MUNICIPAL ELECTION

| October 23, 2007 9:00 PM

CITY OF SANDPOINT, IDAHO

NOTICE IS HEREBY GIVEN: That the general election to be held in and for the City of Sandpoint, Idaho, will be held on Tuesday, November 6, 2007. The election is held for the purpose of electing a Mayor for a term of four years, three council members for a term of four years, and one council member for a term of two years. On Election Day, the polls will be open from 8:00 a.m. to 8:00 p.m. at the following designated polling place: The council chambers in city hall, 1123 Lake Street, Sandpoint, Idaho.

Maree Peck, City Clerk

SAMPLE BALLOT

CITY GENERAL ELECTION

CITY OF SANDPOINT

STATE OF IDAHO

NOVEMBER 6, 2007

INSTRUCTIONS:

Vote for such candidates as you desire by placing an X in the small square to the right of the name or by writing in the name of the persons you desire to vote for, and place an X in the square at the right of their name. If you tear, deface or wrongly mark this ballot, return it and get another. Mark only with pencil or pen. You cannot vote for more than the number of positions given for that office.

FOR MAYOR

Four Year Term

(May Vote for One)

Gretchen A. Hellar……………………………………………..

Raymond P. Miller……………………………………………..

FOR COUNCIL MEMBER:

Four Year Term

(May Vote for Three)

William L. Dowling…………………………………………….

Paul Gollin………………………………………………………

Doug Hawkins Jr……………………………………………….

Sandra J. Lamson………………………………………………

Carrie Ann Logan………………………………………………

Jeffrey R. Rands………………………………………………..

Ivan Rimar ……………………………………………………..

Stephan T. Snedden……………………………………………

FOR COUCNIL MEMBER:

Two Year Term

(May Vote for one)

Michael Boge……………………………………………………

Ed Ostrom ……………………………………………………………………….

Dan Young………………………………………………………………………..

The order of candidate names on the sample ballot may not necessarily be the same as the order of candidates names on the election ballot.

Legal SNP 9039

October 23 and October 30, 2007

NOTICE OF SPECIAL MUNICIPAL ELECTION

CITY OF SANDPOINT, IDAHO

NOTICE IS HEREBY GIVEN: That a special election to be held in and for the City of Sandpoint, Idaho, will be held on Tuesday, November 6, 2007. The election is held for the purpose of voting on a five percent (5%) hotel/motel room occupancy tax and voting on a two percent (2%) by the drink tax on alcohol, beer, and wine. On Election Day, the polls will be open from 8:00 a.m. to 8:00 p.m. at the following designated polling place: The council chambers in city hall, 1123 Lake Street, Sandpoint, Idaho.

Maree Peck, City Clerk

SAMPLE BALLOT

CITY SPECIAL ELECTION

CITY LOCAL OPTION NONPROPERTY TAX

CITY OF SANDPOINT, STATE OF IDAHO

NOVEMBER 6, 2007

INSTRUCTIONS:

To vote on the following questions, place and (X) in the square according to the way you want to vote on the questions. If you, tear, deface or wrongly mark this ballot, return it and get another. Mark only with pencil or pen.

QUESTION: Shall the City of Sandpoint, Bonner County, Idaho, adopt the proposed ordinance providing for imposition and collection, for a period of eight (8) years from its effective date, certain non-property taxes this way:

A 5% hotel/motel room occupancy tax on all short term (30 days or less) rental charges for hotel rooms, motel rooms, condominium units, tourist homes, bed and breakfast establishments, and similar facilities; and

A 2% tax on alcohol, beer and wine served by the drink (or in a bottle) to be consumed on licensee's premises.

The anticipated revenue for the 5% hotel/motel room occupancy tax is anticipated to be $250,000 will be used in the following ways:

a.) City infrastructure and capital projects

b.) Street overlays, sidewalk repair, extension and replacement, and additional bike paths.

c.) Public safety services.

d.) Property Tax Relief Fund. Per Idaho Code, any excess revenue received will be placed in a designated property tax fund.

e.) Administrative costs. The city will retain the actual cost of collecting and administering the tax.

The anticipated revenue for the alcohol, beer and wine served by the drink tax is anticipated to be $50,000 will be used in the following ways:

a.) City infrastructure and capital projects.

b.) Street overlays, sidewalk repair, extension and replacement, and additional bike paths.

c.) Public safety services.

d.) Property Tax Relief Fund. Per Idaho Code, any excess revenue received will be placed in a designated property tax fund.

e.) Administrative costs. The city will retain the actual cost of collecting and administering the tax.

On the issue of a 5% hotel/motel room occupancy tax:

IN FAVOR…………………………………………………….

AGAINST………………………………………………………

On the issue of a by the drink tax on alcohol, beer and wine of 2%:

IN FAVOR…………………………………………………….

AGAINST………………………………………………………

Legal SNP 9040

October 23 and October 30, 2007