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Regular City Council Meeting Monday,June 20,2011 Page 19 Mr. Miller reviewed some of the projects the WMO addressed as part of that mandate to address area water quality in conjunction with other agencies and wa- tershed districts; award to the GLWMO of an MPCA Legacy funding grant of $109,000 to perform Total Maximum Daily Load (TMDL) studies and water monitoring, data collection, and providing best practices approaches to improve that water quality and eliminate or reduce pollutant loading to area water bodies. Mr. Miller presented two (2) alternative budget proposals for consideration: one that would provide minimal expenditures, to meet mandates; and the second to meet mandates, as well as implementing projects to protect water quality, and ul- timately property values, over the next ten (10) years of the Third Generation Plan. Mr. Miller advised that the proposed 2012 GLWMO budget had been cho- sen at $109,700, with funding from the cities at $80,000 ($40,000 each), and the remainder funded from fund balances, estimated at $57,000 by the end of 2011. Mr. Miller advised that there would not be sufficient revenue resources in 2012 to meet current expenditures. Mr. Miller advised that the GLWMO was recommending a funding proposal to implement a specific storm water utility fee, as allowed under state statute, for those properties located within the GLWMO to address current (2012) and future budget needs of the WMO. Mr. Miller noted that the only other alternative would be to dissolve the GLWMO and have the state (BSWR) merge it with another WMO (Ramsey/Washington Metro Watershed District), which would result in a utility or tax assessment to property owners in the GLWMO anyway, as well as causing Roseville to lose their control over projects in the WMO. In summary, Mr. Miller advised that the GLWMO Fund balances continue to de- cline, and in the long-term are unsustainable; and in order to meet state mandates, and to protect property values, the environment, and quality of life, a resolution was needed. At the request of some Councilmembers, Mr. Petersen clarified state law related to WMO's and if in default, Ramsey County's petition to have that WMO become an independent district or merge; and current BSWR policy was to not create any new WSD's in the metropolitan area, but to merge them. Discussion included options and impacts, including significant loss of control for member cities if the WMO was to merge with another and impacts for testing, monitoring, and data collection; and advantages and disadvantages of various funding options. Councilmember Pust questioned projected costs for staying as a separate govern- ment entity and restricting their taxing authority to only those households served by the GLWMO versus current funding through all properties through member ci- ties' storm water funds.