Agenda - Council Work Session - 02/23/2021

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Through the LRRWMO joint powers agreement, each member city contributes annually to the LRRWMO general fund. The annual contribution amount is split such that 50 percent of the total is apportioned based on the area within the LRRWMO and 50 percent is apportioned based on the taxable market value. The LRRWMO has used the general fund for administrative costs, monitoring, education, studies, and select projects, including the development of this Plan. The LRRWMO general fund may also be used to partially or completely fund capital improvements. The LRRWMO joint powers agreement calls for the establishment of an improvement fund for each improvement project ordered by the Board not paid for out of the LRRWMO general fund. Project costs are to be apportioned to each member city in accordance with the current joint powers agreement. The LRRWMO charges permit application fees and escrow fees for projects triggering a Grading, Stormwater Management, and Erosion/Sediment Control permit and/or a permit for Minnesota WCA Decision and Procedure Requirements (see Section 5.3.2.1). These funds pay for LRRWMO engineer and administrative staff time associated with review and documentation of the permit applications. The balance of the escrow is returned to the permit applicant. See Appendix B and Appendix C for additional details. I Minnesota Statute 1036.251 allows WMOs to certify capital improvements to the county for payment, if those improvements are included in the WMO's watershed management plan. The county then issues bonds and levies an ad valorem tax on all taxable property in the WMO (or subwatershed unit of the WMO) to pay for the projects. This process requires sufficient lead time and coordination with the County, as formal County approval of any amendments to a WMO's plan and associated levy amounts is required. A WMO may also raise funds through direct ad valorem taxation (Minnesota Statutes 1036.241), but only if the WMO is specifically listed as a special taxing district in Minnesota Statutes 275.066. If a WMO is given taxing authority, the WMO may also accumulate funds to finance improvements as an alternative to issuing bonds (Minnesota Statutes 1036.241). The LRRWMO is not currently listed as a special taxing district per MS 275.066. Historically, the LRRWMO has not used this funding mechanism. Funding mechanisms available to the member cities include: 5-7