08-14-1995 Council Packet - Laserfiche WebLink

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f’ 1.' ITEM 4.A Public Hearing; Meeting: LAKE HIIINETOIIKA COMSERVATIOH DICTRICT Orono's Request Objecting to LMCD’s 1996 Adopted Budget 7 P.M., Wednesday, July 26, 1995 Tonka Bay City Hall, Tonka Bay Members Present: Douglas Babcock, Spring Park; Joseph Zwak, Greenwood; Gene Partyka, Minnetrista; Dua... . Markus, Wayzata; James Grathwol . Excelsior; Tom Reese, Mound; Ross McGlasson, Tonka Bay; Craig Mol let, Victoria; Administrative Technician Greg Nybeck, Executive Director Alan Hi11cutt Vice-Chair Babcock convened the public hearing at 7:00 P.M. He provided background on the 1996 budget noting it was adopted by the Board on 6/28/95 and submitted to the 14 LMCD cities before the required 7/1/95 deadline. He added the City of Orono requested a public hearing to express objections to this adopted budget. He opened the public hearing for discussion from the audience. Ron Moorse, City Administrator of Orono, addressed concerns related to the reserve fund balances and the need to determine sufficient levels. He identified three purposes for reserve fund balances. They were il to provide sufficient working capital, 2) contingency for unforeseen expenses, and 3) to stabilize expenditures that may increase from year to year. He stressed these purposes need to be considered when determining the proper size of reserve fund balances. He summarized a conversation with Chairman Johnstone regarding the reserve fund balances. He noted Johnstone stated the Administrative reserve fund balances are necessary for unforeseen expenses, such as litigation. He added Johnstone stated the level of Milfoil reserve fund balances are needed because of the high volatility of expenditures from year to year. With the Equipment Acquisition reserve funds, Moorse projected a reserve fund balance of approximately $243,000. He suggested a replacement schedule identifying when equipment would be replaced and the costs involved. His final comment was that the 1996 budget does not identify expenditures in the "Save the Lake" budget. Babcock responded that "Save the Lake" funds are raised solely by private donations. He noted they are no*’ raised from taxpayer revenue and cannot be used for operating revenue. Reese concurred with Johnstone's comment regarding the volatility of the milfoil program. He noted that in bad growth years, there are substantial increases in the budgets. He added the $25,000 from the DNR is a volatile source of income. Gabriel Jabbour, a member of the Orono City Council, expressed concerns with the adopted 1996 LMCD budget and how it achieves targeted reserve fund levels. He reminded the Board that the LMCD decided to harvest