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d. set forth a management plan that includes a statement of the hydrologic and water quality conditions to be sought and that shall further itemize significant opportunities for improvement such conditions; e. describe conflicts between the surface water management plan of the Grass Lake Watershed and existing management plans of the Cities of Shoreview and Roseville; set forth an implementation program consistent with the management plan that includes a capital improvement program and standards and schedules for amending the Comprehensive Plans and official controls of the Cities of Roseville and Shoreview in order to bring about conformance with the water surface management plan for the Grass Lake Watershed; g. get out a procedure for amending the water surface management plan. Subdivision 3. --Annual Operating Budget. On or before June 1 of each year the Board shall prepare a proposed operating budget and recommend its approval to the Cities. Each City will review the operating budget for the following fiscal year and shall either approve the proposed operating budget or a budget as amended by the Cities within sixty (60) days of receipt of the Board recommendation. Upon City approval of the Organization's operating budget, each City shall pay to the Organization an amount equal to one-half (1/2) of the approved operating budget in the following manner: ------- One-half (1/2) of each City's obligation shall be paid to the Organization on or before July 1 of the fiscal year approved; and ------- One-half (1/2) of each City's obligation shall be paid to the Organization on or before December 1 of the fiscal year approved. Subdivision 4. Caul Improvement ProLct. On or before June 1 of each year the Board shall prepare a capital improvements program and recommend its approval by the Cities. Each City agrees to review aid approve or disapprove the capital improvement program within sixty (60) days of receipt of the Board's recommendations. 7