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December 28, 2005 Cities of Gem Lake, Lino Lakes, North Oaks, Vadnais Heights, White Bear Lake, Town of White Bear and Board of Water Commissioners — Saint Paul Re: Special Taxing District Request for Resolution of Support Dear Mayors, City Councilors, Town Board members and Commissioners: Members Gem Lake Lino Lakes North Oaks St. Paul Regional Water Service Vadnais Heights White Bear Lake White Bear Township Over the last year and a half we have talked about what the Vadnais Lake Area Water Management Organization should be doing in the future and how to accomplish it. Our Commissioners and staff have attended many of your meetings and some of you have attended VLAWMO meetings. From this input, the VLAWMO Board concluded: • There is a desire to retain the grassroots Joint Powers watershed structure rather than become a watershed district. However, costs are and will continue to increase to comply with state and federal unfunded mandates. In addition, there is a strong local desire to have well managed water resources. VLAWMO FUNDING AND TAX EQUITY Our budget is supported mainly by contributions from our member communities using a formula within the VLAWMO Joint Powers Agreement. Several of our member communities have told us their 2006 VLAWMO share may become a difficult future budget item. Tax equity is also a concern for most of our members. Many of their taxpayers outside the VLAWMO boundary subsidize VLAWMO watershed costs through property taxes or stormwater utility fees. This is because the watershed districts surrounding most of VLAWMO levy a tax upon residents within their geographic area to pay for watershed costs. Thus, taxpayers of our six communities living in neighboring watershed districts effectively pay twice for watershed services. WHY ADDRESS THE ISSUE NOW? ♦ VLAWMO is working on its third generation Watershed Management Plan, an unfunded state mandate that has roughly doubled our 2006 budget. We will seek your input to help identify goals and prioritize watershed needs with a target of Plan completion by next summer. VLAWMO functions include but are not limited to: monitoring water resources, assessing wetland health, working with developers, working with local residents on strategic lake plans, offering a water education program, and setting priorities for efficient use of public dollars. 4701 Highway 61, White Bear Lake, MN 55110; 651 - 429 -8522, Fax: 651 - 429 -8500 website: www.vlawmo.org; email: office @vlawmo.org 1