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d) 2026 Annual Budget. Kieper stated the purpose of this actionable item fulfills a requirement of the <br />District's governing documents that Property Owners approve the Annual Budget. The annual budget is <br />built taking into consideration cash reserves, revenue & expenditure forecasts for 2026 - 2030 and <br />timing of the receipt of funds. The funds arrive each year after the season is over. We need cash <br />reserves to enter into contracts and pay for the services before we receive each year's funds. The <br />$22,697 estimate used for CLP & EWM treatment is based on the average of recent years (2022 - 2025) <br />that incorporated a plant specific systemic herbicide. We will apply for a MN DNR Grant, as we have <br />in the past, but it has become more difficult to get one. It is not advisable to plan on receiving a grant <br />from the MN DNR Invasive Species Program or on donations. The Board forecasts expenses of <br />$39,173 to manage the two known aquatic invasive plants, CLP and EWM. Revenue of $36,400 <br />requires a $325 tax to each of the 112 District properties. 2026 expenditures are forecasted to exceed <br />revenue, and reserves will bridge the $2,773 difference. The Board recommends approval of the <br />"Statement of 2026 Annual Budget, August 26, 2025." A copy is attached. <br />Kieper put forward a Motion to Approve, by a ballot vote of all eligible Property Owners, the <br />"Statement of 2026 Annual Budget" dated August 26, 2025, with a forecasted revenue of $36,400 and <br />expenditures of $39,173. 2nd by Hector There were questions and discussion. <br />VOTE by BALLOT vote of all District Property Owners present, with one vote per property, 12 votes <br />eligible. All who ballot voted, Ayes 12, Nays 0. MOTION PASSES. <br />e) Property Owners to approve projects by the District having a cost to the district in excess of <br />$5,000. Kieper stated the purpose of this actionable item fulfills a requirement of the District's <br />governing documents that Property Owners approve the District's public projects having a cost in <br />excess of $5,000. The District's one public project is the annual control of aquatic invasive plant <br />species, Curlyleaf Pondweed and Eurasian Watermilfoil, to a littoral frequency of 20.0% or less, while <br />employing best practices to substantially protect the native plant community. The 2026 annual budget <br />represents that one project. <br />Kieper put forward a Motion to approve, by ballot vote of eligible Property Owners, the District's 2026 <br />project of controlling aquatic invasive plant species, while emploing best practices to substantially <br />protect the native plant community. 2nd by Owen No questions or further discussion. <br />VOTE by BALLOT vote of all District Property Owners present, with one vote per property, 12 votes <br />eligible. All who ballot voted, Ayes 12, Nays 0. MOTION PASSES. <br />f) Levy and its distribution. Kieper stated the purpose of this actionable item fulfills a requirement of the <br />District's governing documents that the Board of Directors approve the special assessment levy for the <br />City and its distribution. <br />Kieper put forth a Motion for a roll call vote of each Director to approve a special assessment levYof <br />$36,400 that shall be shared equallyby the District's 112 properties at $325 each and payable in 2026. <br />2nd by Kennefick. No questions or discussion. <br />VOTE by the Board Members present: Kieper Aye, Chalupsky Aye, Owen Aye, Kennefick Aye, Hector <br />Aye, Tucker Aye, Nielsen Aye. Ayes 7, Nays 0. MOTION PASSES <br />g) Elect Directors. Kieper stated the purpose of this actionable item fulfills the requirement that Directors <br />shall be elected by an affirmative vote of the majority of the Property Owners present and entitled to <br />vote at the Annual Meeting, including absentee ballots. Four Property Owners applied to be members <br />of the Board, certified that they were eligible, and the Board approved the candidates as eligible for <br />election at the August 14th Board Meeting. The District did not receive any requests for absentee <br />ballots. No absentee ballot applications or ballots were issued or received. <br />Two current Directors, Mark Kieper and Dave Owen, are willing to continue serving. Two new <br />eligible persons, Robin Dodson and Don Haberman, have also volunteered to serve. Don Haberman is <br />present and Robin Dodson is absent due to a long planned international trip. <br />5 <br />9-25-25 CBLID Annual Meeting Minutes DRAFT V.2 10-3-25 <br />78 <br />