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• <br />• <br />• the parties have agreed to a $623 million regional water supply project to serve 13 <br />communities; and <br />• the parties have agreed to a new revenue generating mechanism through taxation, fees, or <br />other means to pay for operation of a new regional water supply project; and <br />• the agreement creates a requirement to establish a protective elevation for White Bear Lake; <br />and <br />• the agreement requires the DNR to use their "best efforts" to enforce through appropriation <br />permits new water use restrictions, conservation standards. and water rate structures; and <br />• the agreement requires implementation of a groundwater management area plan; and <br />WHEREAS, MN Statutes 103G.261 includes water allocation priorities, including domestic <br />water supply, agricultural irrigation, and power production. Non-essential uses are assigned the <br />lowest priority. among which are recreational uses. <br />NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Lino Lakes does <br />not support the settlement agreement for the following reasons: <br />• The entire predicate of the settlement agreement is speculative and premature. Current <br />science does not support or guarantee that implementation of the settlement agreement will <br />increase lake levels of White Bear Lake. <br />• Extensive scientific study remains underway by the USGS and others concerning interaction <br />between ground waters and surface waters, and adopting a complex and expensive <br />regulatory framework which decreases availability and increases cost of municipal drinking <br />water is not warranted. <br />• The "Project" which proposes to supply 13 communities with surface water drawn from <br />limited sources would require communities to connect to a regional water supply system as <br />a mandate. The City opposes this approach as it wishes to maintain local control over <br />important decisions that impact its citizens. <br />• There are alternatives that likely would be more feasible, effective, and less costly than the <br />solutions outlined in the settlement. <br />• The "Project" will considerably increase operating costs of the City's water utility. <br />• Phase 2 communities do not benefit from the equitable cost sharing arrangements that Phase <br />1 communities benefit from. <br />• The City opposes the creation of a new taxing district or other fee structure to pay for <br />operation of a water supply system that does not serve the City. <br />41111 • The settlement concludes that all parties, including the DNR, agree that surface water should <br />be the source of water for the northeast metro area. The DNR's North and East Metro <br />