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Memorandum - Schilling Consultant Services D. a process for establishing an annual budget and work plan; and E. a formula for determining each member's share of the annual operating budget. Thus the Joint Powers Agreement is very important in spelling out in a narrative and/or formula methodology how each member's share of anticipated expenses will be provided. Do the statutes grant authority to a water management organization for planning and capital improvement funding? Yes, but only under a certain circumstances. Minnesota Statutes, section 103B.241 Levies; Subdivision 1 specifies in part: "..... water management organization may levy a tax to pay the increased costs of preparing a plan under sections 103B.231 and 103B.235 or for projects identified in an approved and adopted plan necessary to implement the purposes of section 103B.201." While the language is quite clear that a WMO may levy a tax, the obstacle preventing such is that a WMO must be designated as a special taxing district in order to execute this statutory language. Notwithstanding watershed districts already having this authority to date, only the Middle Mississippi River Watershed Management Organization has sought and been granted designation as a special taxing authority (Appendix A, line 21). It is also important to note that the above statutory section specifies levy authority for the broad purposes of the metropolitan water management program including both planning and capital improvements. The method for capital improvements funding is specifically given in section 103B.251, Subdivision 1. Here the WMO with an approved plan certifies to the county for payment by the county for the cost of the capital improvement. If the territory of the WMO extends into another county such as VLAWMO (Anoka and Ramsey counties), then certification would be necessary from both county boards (Subdivision 5). The WMO may apportion the capital improvement cost among subwatershed units in the watershed by establishing one or more tax districts (ibid.). Can a local unit of government within a WMO set -up a special tax district? Yes, M.S. 103B.245, Subdivision 1(a) and (b) provides authority to a local government unit to set -up a special tax district, not to be confused with a special taxing district. The special tax district is called a watershed management tax district comprised of specific territory within the watershed and can be used for paying the costs of planning required under 103B.231 and 103B. 235. The watershed management tax district is established by ordinance through the public hearing process (Subdivision 2). Following adoption of the ordinance, the local government unit may annually levy a tax on all property within the watershed management tax district. Advantage Establishing a watershed management tax district within a local government unit could remove the concern over double taxing parcels when a WMO member provides its share WMO funding through its general fund. In other words, parcels within a local government unit that fall within a watershed district are effectively taxed twice for the same purposes. once by the watershed district and again as a proportionate share of the WMO's budget coming from the local government's general fund. 01/09/2006 46 Bertha Ct., Mahtomedi, MN 55115 -2031 2