08-14-1995 Council Packet - Laserfiche WebLink

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so. POBLtC REARING, 1996 ADOPTED LMCD BUDGET, 7/26/95, P. 2 navigable channels rather than clear-cutting, thus, reducing the expenditures of harvesting milfoil. He distributed a memo that addressed cash flow issues. He reconvnended the LMCD utilize the financial exoertise in the cities, but noted the LMCD has not done He suggested*the LMCD should not require reserve funds similar to cities. He provided examples of differences between the organizations. He noted the focus of the LMCD is very narrow and well defined. He disagreed with the Boards contention that contributed "Save the Lake funds are not taxpayers money. He added that these are not tax- deductible funds and further investigation needs to be done to determine whether the LMCD qualifies as a 501(c)(3) organization. He noted the $39,000 of unrecognized investment loss in the 1994 audit. Jerry Rockvam, Mayor of Spring Park, concurred with Jabbour’s concern about the $39,000 unrecognized investment loss in 1994. He suggested this was irresponsible and that alternative means of financing need to be addressed. He suggested the LMCD invest the money in accounts that guarantee 110% on the investment. He stated the fund balances are on the increase, not decrease. He suggested examining alternative ways of continuing current operations. He suggested examining the mil foil harvesting program and investigating the feasibility of contracting this with the Minnehaha Creek Watershed District (MCWD). An additional suggestion was to investigate contracting administrative/dock inspections with the 14 LMCD cities to provide the same service. Grathwol noted the Board of Directors maintained the LMCD is reducing the reserve fund balances to previously agreed upon Uvels. He^asked Rockvam why the Mayors feel the Board is not accomplishing this; Rockvam noted the figures he received were on the 12-31-94 year end audit. Babcock noted these figures are high at year end since a good portion of licensing fees are received before the beginning of the year. McGlasson questioned whether contracting milfoil harvesting with MCWD would work. He questioned Rockvam where he felt this would fall with the MCWD priorities? Rockvam stated he felt the priorities would not change, but the taxing base would increase. McGlasson expressed concerns about contracting dock inspections to the cities and how it would be financed. He expressed an interest in further investigation into this. Markus expressed a concern with current investments. Rockvam suggested a schedule of investments be distributed on a monthly basis. Vern Haug, Mayor of Tonka Bay, expressed concern with the current