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LRRWMO Meeting Minutes June 23, 1993 Page 3 law suit would take us through that amount quickly. He indicated the Ramsey Finance Director has recommended that a six month operating capital is sufficient to hold in reserve. Knutson stated he would like to see the board lower the 1994 levy rather than reduce 1993 second half payments. If the board reduces dues this year the money goes into the cities' fund balance and may reduce levies. If the board reduces dues in 1994, the cities would more likely reduce tax levies in 1994. Jankowski queried the possibility of pre-paying next year's fund balance, identifying it as "non-lapse" money. Knutson stated that causes deficit spending. Weaver provided a brief history of the LRRWMO's financial activities, noting the growth of budgetary needs and amount of activity over the years. He agreed perhaps we do need to do something with the cash reserve; however, he would prefer the LRRWMO member cities continue to pay its obligation for the current year and notify each city, as we went out the bills for the second half 1993 payments, that it is the intent of this body to address the excess reserve created by conservative management of the LRRWMO. This surplus would be addressed during the upcoming budgeting process, and member' cities' contributions to the LRRWMO may very well be reduced for Fiscal Year 1994. Schultz reminded the board that it has to update its Water Management Plan and should retain that expense in the budget. Jankowski did not think the plan's update would cost as much as the creation of the original plan. We should know what that expense is before we budget for them. Schultz reminded the board that engineering fees have been going up since the original plan was begun several years ago. Jankowski stated we will ask the Consulting Engineer for an estimate on updating the plan. He indicated he would be more comfortable showing his City Council the board's upcoming expenditures. Weaver recommended the board invite its Consulting Attorney to attend the July monthly meeting to review the Joint Powers Agreement update he provided prior to this meeting. He suggested Mr. Pearson could, at that time, provide the board with an idea of what other WMO's are doing to address the more stringent requirements coming down. Jankowski agreed, adding that Mr. Beduhn also provide, by the July meeting, information on how these laws and requirements will financi- ally impact -this board. The board agreed to invite both consultants to the July meeting to discuss future expenditures.