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PUBLIC HEARING, 1996 ADOPTED LMCD BtJCGBT, 7/26/95, P. 3 <br />investment policy. He felt that there has been some mismanagement with <br />investments in the past. He recommended full 110% guarantee on all <br />investment since this is taxpayers money. He questioned the hiring of <br />the new executive director. He was concerned with the policy or hiring <br />the new executive director at more than the ad»/ertised salary. He <br />added the City of Tonka Bay inspects dock and marinas. <br />Babcock noted that both the administrative budget and levies to the <br />cities have been reduced the past three years. <br />Howard Bennis, Mayor of Deephaven, questioned the amount of reserves. <br />He felt the amount is excessive. <br />Haug requested the Board provide information on how much money the LMCD <br />has, where it is, what type of investments have been made, and the <br />value of these investments. <br />Babcock reminded the audience that the LMCD differs from the cities in <br />that we do not have bonding capabilities. He added that depreciation <br />is paid through cash, with the LMCD not having the ability to finance <br />equipment. He suggested that if the targeted reserve funds are too <br />high, they should be adjusted during a separate meeting. <br />Zwak concurred suggesting further review by the Board on the length of <br />reserve funds. <br />Bob Gisvold, Mayor of Wayzata, agreed for further review on these <br />target levels. He complimented the LMCD for the efforts in managing <br />the lake, however, he noted the success is not related to the level of <br />reserves. He encouraged the Board to spend the reserves down. <br />Al Orsen, Wayzata City Manager, circulated a spread sheet on levies to <br />the cities. He indicated the total levy is within the spirit of the <br />enabling legislation, however, he questioned the 20% levy on <br />Minnetonka. <br />All interested parties having been given an opportunity to be heard, <br />the Public Hearing was closed at 8:03 P.M. <br />FINDINGS: <br />* Representatives from the cities of Orono, Spring Park, Tonka <br />Deephaven, and Wayzata expressed concerns with the 1996 adopted LM-D <br />budget, specifically the reserve fund levels. <br />Board reviewed that they had agreed upon a targeted 6 month reserve <br />fund for administrative and 12 month reserve fund for milfoil <br />operating expenses. <br />* $35,000 will be transferred annually from the reserve funds to a <br />milfoil equipment acquisition fund for depreciation.