06-25-2001 Council Minutes - Laserfiche WebLink

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MINUTES OF THE ORONO CITY COUNCIL MEETING October June 25, 2001 • LMCD REPORT — Lili McMillan al( L L� McMillan stated the LMCD is in the process of finalizing their budget for the upcoming year, with the LMCD considering a levy increase in the amount of $27,000 for the Etta of Oros. McMillan stated the levy increase includes a $8,500 management plan charge, which is conducted every other year, and a $9,300 charge for milfoil reserves. McMillan stated the LMCD would like to keep 50 percent of their operating expenses in a reserve fund since the levy is their only source of revenue at this time. McMillan indicated the expenses for the milfoil removal came in overbudget last year, which necessitated an increase in the amount budgeted for this item. McMillan stated the harvesting of the milfoil will be delayed somewhat this year due to the cooler weather and rain, with the majority of the harvesting commencing the week after the 4`h of July. McMillan stated she relayed concerns to the LMCD that the levy increase was rather high and that perhaps it should be reduced somewhat. McMillan noted an e-mail was received from City Administrator Ron Moorse and from the City of Minnetonka expressing concerns regarding the 11 percent increase in the levy. The LMCD will be approving the budget at their Wednesday meeting. Sansevere inquired whether the City of Orono should say no to the 11 percent increase. Moorse stated he has sent an e-mail to the LMCD expressing concerns that the 11 percent levy increase may be too high in light of the fact_ there may be a three or four percent levy limit on cities for the year 2001. • McMillan stated in her view the City of Orono may be in the minority, with the other cities only experiencing an increase of approximately $1,000 to $2,000. McMillan stated she has discussed the possibility of the Minnehaha Watershed District contributing to the LMCD budget to help offset the costs of the milfoil harvesting. Sansevere inquired whether the LMCD has discussed the possibility of residents giving an unspecified donation for using the lake. McMillan stated she would be bringing that item up for discussion at the Save - the -Lake Committee. McMillan stated the Save - the -Lake fund consists of approximately $200,000, which is a private donation fund, and helps to fund various projects on the lake. Sansevere inquired if the LMCD approves the 11 percent increase whether the City of Orono has any recourse that they may take. McMillan stated all cities in the LMCD will be experiencing an 11 percent increase, but that to date only the Cities of Orono and Minnetonka have expressed concerns regarding the increase. Moorse stated if a majority of the LMCD Board approves the levy increase, it will become effective. White noted according to the Star and Tribune, 27 percent of all boating in the State of Minnesota occurs on Lake Minnetonka, with very few other government agencies allocating any funds towards preservation and maintenance of the lake. White stated the LMCD needs to be looking at other sources of income, such as Hennepin Parks, since a large number of residents outside this area utilize Lake Minnetonka. • PAGE 2