Rock Koshkonong Lake District

2006 Annual Meeting

Budget Hearing and Approval of Annual Budget

July 22, 2006

Current Water level: 7/22/2006 – ???

July 22, 2006

RKLD Board Members

Brian Christianson - Elected/Chairman

Ray Lunder - Elected/Treasurer

Marty Walsh - Elected/Secretary

Frank Micale - Elected

Jeff Folk - Elected

Arnie Lund - Appointed/Fulton Township

Mary Mawhinney - Appointed/Rock County

July 22, 2006

Lake District Statement:What is its Purpose?

The purpose of a Lake District is to Maintain, Protect, and Improve the quality of a lake and its watershed for the mutual good of the members and the lake environment.

July 22, 2006

Agenda1. Call to order

2. Minutes of the 2005 annual meeting

3. Annual Audit Report of 2005 (Audit Committee)

4. Chairman’s Report (Brian Christianson, RKLD)

5. Economic Impact Report – Water Level Proceedings • (Art Harrington, Godfrey & Kahn)

6. Operational Report – Water Level Proceedings• (Bill O’Connor, Wheeler Van Sickle and Anderson S.C.)

7. Presentation of the Proposed 2007 Annual Budget

8. Consideration and Vote on the Proposed 2007 Annual Budget

9. Election of (1) Commissioner to serve term expiring in 2009 Nominees: Brian Christianson Nominations may also be made from the floor Brief statements from nominees Balloting

10. Adjourn

July 22, 2006

History of the RKLD Special Charge Per Parcel

2000 (first full year)……………… $25.00

2001 ………………………………. $25.00

2002 ………………………………. $25.00

2003 ………………………………. $35.00

2004 (note decrease)…………….$25.00

2005 ………………………………. $45.00

2006 ………………………………. $50.00

2007 (Proposed) ………………… $100.00

July 22, 2006

Candidates for two Commissioners for three year term expiring in 2009

At the present time, there is one candidate for the Commissioner opening to the RKLD board

Nominee: Brian Christianson

Voting Rules, by State Statute: No absentee ballots or proxies are permitted at the annual

meeting All property owners whose names appear on the property tax rolls and full time residents of the district, are eligible to

have 1 vote each All Clubs, Associations, & Properties held in Trust, may

appoint a person to cast 1 vote

July 22, 2006

Annual Audit Report for Calendar Year 2005

year ended December 31, 2005Revenue

•Special property charge $180,872•Delinquent fee $0

Total Revenue $180,872

Operating Expenses•Office Supplies $4,585•Rent/Utilities $1,315•Insurance $3,109•Printing $6,922•Professional Fees $36,068

•Accounting $250•Consulting $16,485•Legal $19,333

•Public Information $2,115•Indianford Maintenance $30,119•Water Level Proceedings $78,760•Dues/Fees $489•Other Expense $95

Total Operation Expenses $163,577Net Ordinary Income $17,295Net Income $180,872

July 22, 2006

2006 Revenues, Expenditures,Appropriations

January 1, 2006 – June 30, 2006

Beginning Balance, January 1,2006 $17,295

Special Charges, 1-2Q 2006 $200,775Special Charges, 2005 $33,600Total 2006 Revenue $234,435

Operations Balance plus Revenue $251,670

Expenditures $221,830

Balance of Operations Account $29,840======

July 22, 2006

Budget SummaryProposed Total Budget 2007

Ordinary Income/ExpenseIncome $400,000

Program Fees (4000 * $100) $400,000

Expense $400,000Office Expense $3,190Rent and Utilities $640Insurance $3,500Printing $3,060

Professional FeesAccounting $600Consulting $2,000Legal $9,000

Public Information $5,000Indianford Maintenance $30,000Water Level Proceedings $342,000Dues and Fees $330Other $680

July 22, 2006

Summary of Water Level Proceedings

Professionals:Dave Mickelson $2,938.60Eco Resource Consulting $13,214.45Stockham Consulting $10,664.23Michael Dresen $4,629.00Montgomery Associates $46,099.23RSV Engineering $9,661.50Stan Nichols $4,237.50Russ Kashian $14,562.50

Legal:Wheeler Van Sickle $249,802.19Godfrey & Kahn $209,855.41

Total Invoices: $565,664.61Total Paid to date: $244,244.80

Remaining Unpaid Balance $321,419.81

July 22, 2006

Summary of Indianford Dam FundFund Balance:

CD Balance $160,000Interest $5,625

Total as of 6/6/2006 $165,625

Expenditures for Dam Repairs:Material $20,350Labor $28,888

Total Expenditures $(49,238)

Estimated 2007 Revenue:Estimated Int $5,000Revenue $60,000

Total Estimated 2007 Revenue $65,000

Estimated Fund Balance 12/31/2007 $181,387

July 22, 2006

RKLD Timeline of Events•1999 - Inception of RKLD•April 2000 - RKLD begins US Army Corps of Engineers Section 206 Habitat Restoration

Project process•2000 - Two (2) Lake Planning Grants awarded to RKLD for survey questionnaire, identifying carp removal markets, sediment sampling, bulkhead line study and watershed data collection•2001 – Lake Planning Grant awarded for nutrient loading modeling, and conducting Lake Study with WDNR at four locations around Lake Koshkonong, water quality monitoring and aquatic vegetation survey•2002 - Two (2) Lake planning Grants awarded to RKLD for carp exclosure study, aquatic vegetation survey, and water quality monitoring•Nov 2002 - OHWM study report submitted to WDNR•Jan 2003 - RKLD applies for 11 $10K Wetland Restoration Grants of which 9 have been completed•Apr 2003 - RKLD Petitions WDNR to Amend Order 3-SD-82-809 regarding Indianford

Dam Water Levels•Oct 2003 - RKLD submits Environmental Impact Report (EIR) as requested by WDNR•Dec 15, 2004 - RKLD closes on ownership of Indianford Dam•Dec 20, 2004 - WDNR issues Environmental Assessment (EA)•June 3, 2005 - WDNR grants Petition for Contested Case Hearing

July 22, 2006

July 4, 2006

July 22, 2006

Quote

“District residents should be prepared for a long and costly battle. It may take years and many more district dollars before a resolution is reached.”

- 2004 Annual Newsletter

July 22, 2006

July 4, 2006

July 22, 2006

Quote

“We are now graduating from a research collection phase to a legal data presentation phase. The interpretation of Wisconsin state statues concerning the Public Trust Doctrine and our goals for managing Lake Koshkonong need to be presented by attorneys with great experience in this area of law.”

- 2005 Annual Newsletter

July 22, 2006

July 4, 2006

July 22, 2006

Fact

Back in 1981, a request to raise the water levels was made to the DNR and subsequently, litigation was initiated from adjacent hunt clubs.

A negotiated settlement was reached in 1992 and today we live under those very same operating orders.

July 22, 2006

July 4, 2006

July 22, 2006

Fact

The DNR devoted an enormous amount of staff resources to this contest, reflecting its view that the Koshkonong case would set a critical statewide precedent for water level proceedings.

July 22, 2006

July 4, 2006