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FINANCES <br />VIII. <br />Subdivision 1. The LRRWMO funds may be expended by the Board in accordance with <br />this agreement and in accordance with the procedures as established by law and as may be <br />determined by the Board. The Board shall designate one or more national or state bank or trust <br />companies, authorized by Minnesota Statutes, Chapters 118 and 427 to receive deposits of public <br />moneys and to act as depositories for the LRRWMO funds. In no event shall there be a <br />disbursement of LRRWMO funds without the signature of at least two Board members, one of <br />whom shall be the Treasurer or Authorized Deputy Treasurer. The Treasurer shall be required to <br />file with the Secretary of the Board a bond in the sum of at least $10,000 or such higher amount <br />as shall be determined by the Board. The LRRWMO shall pay the premium on said bond. <br />Subdivision 2. Each Member City agrees to contribute each year to a general fund, said <br />fund to be used for general administration purposes including, but not limited to: salaries, rent, <br />supplies, development of an overall plan, engineering and legal expenses, insurance, and bonds, <br />and to purchase and maintain devices to measure hydrological and water quality data. Said funds <br />may also be used for normal maintenance of the facilities, but any extraordinary maintenance or <br />repair expense shall be treated as an improvement cost and processed in accordance with <br />Subdivision 5 of this Article. The annual contribution by each Member City shall be based fifty <br />percent (50 %) on the net tax capacity of all property within the Watershed and fifty percent <br />(50 %) on the basis of the total area of each Member City within the boundaries of the Watershed <br />each year to the total area in the Lower Rum River Watershed governed by this Agreement. <br />438695v4 LW105 -1 <br />Subdivision 3. <br />(a) An improvement fund shall be established for each improvement project instituted <br />under Article VII, Subdivision 4. In all cases in which capital improvements are <br />to be paid in whole or in part by Member Cities, each Member City agrees to <br />contribute to said fund its agreed -upon proportionate share of the engineering, <br />legal and administrative costs as determined in accordance with Article VII, <br />Subdivisions 4 and 5 as the amount to be assessed against each Member City as a <br />cost of the improvement. The Board shall submit in writing a statement to each <br />Member City, setting forth in detail the expenses incurred by the LRRWMO for <br />each project. Each Member City further agrees to pay to or contract with the <br />Member City awarding said contract for the improvement, its agreed -upon <br />proportionate share of the cost of the improvement in accordance with the <br />determination of the Board under Article VII, Subdivisions 4 and 5. The Member <br />City awarding the contract shall submit in writing copies of the engineer's <br />certificate authorizing payment during construction and the Member City being <br />billed agrees to pay its proportionate share of said improvement costs within 30 <br />days after receipt of the statement. The Member City awarding the contract shall <br />advise other contributing Member Cities of the tentative time schedule of the <br />work and the estimated times when the contributions shall be necessary. <br />13 <br />