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 Agenda 1. 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)………………$ ……………………………….$ ……………………………….$ ……………………………….$ (note decrease)…………….$ ……………………………….$ ……………………………….$ (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, 2005 Revenue 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$163,577 Net Ordinary Income$17,295 Net Income$180,872

July 22, Revenues, Expenditures, Appropriations January 1, 2006 – June 30, 2006 Beginning Balance, January 1,2006$17,295 Special Charges, 1-2Q 2006$200,775 Special Charges, 2005$33,600 Total 2006 Revenue$234,435 Operations Balance plus Revenue$251,670 Expenditures$221,830 Balance of Operations Account$29,840 ======

July 22, 2006 Budget Summary Proposed Total Budget 2007 Ordinary Income/Expense Income$400,000 Program Fees (4000 * $100)$400,000 Expense$400,000 Office Expense$3,190 Rent and Utilities$640 Insurance$3,500 Printing$3,060 Professional Fees Accounting$600 Consulting$2,000 Legal$9,000 Public Information$5,000 Indianford Maintenance$30,000 Water Level Proceedings$342,000 Dues and Fees$330 Other$680

July 22, 2006 Summary of Water Level Proceedings Professionals: Dave Mickelson$2, Eco Resource Consulting$13, Stockham Consulting$10, Michael Dresen$4, Montgomery Associates$46, RSV Engineering$9, Stan Nichols$4, Russ Kashian$14, Legal: Wheeler Van Sickle$249, Godfrey & Kahn$209, Total Invoices:$565, Total Paid to date:$244, Remaining Unpaid Balance$321,419.81

July 22, 2006 Summary of Indianford Dam Fund Fund Balance: CD Balance$160,000 Interest$5,625 Total as of 6/6/2006$165,625 Expenditures for Dam Repairs: Material$20,350 Labor$28,888 Total Expenditures$(49,238) Estimated 2007 Revenue: Estimated Int$5,000 Revenue $60,000 Total Estimated 2007 Revenue$65,000 Estimated Fund Balance 12/31/2007$181,387

July 22, 2006 RKLD Timeline of Events Inception of RKLD April RKLD begins US Army Corps of Engineers Section 206 Habitat Restoration Project process 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 Two (2) Lake planning Grants awarded to RKLD for carp exclosure study, aquatic vegetation survey, and water quality monitoring Nov OHWM study report submitted to WDNR Jan RKLD applies for 11 $10K Wetland Restoration Grants of which 9 have been completed Apr RKLD Petitions WDNR to Amend Order 3-SD regarding Indianford Dam Water Levels Oct RKLD submits Environmental Impact Report (EIR) as requested by WDNR Dec 15, RKLD closes on ownership of Indianford Dam Dec 20, WDNR issues Environmental Assessment (EA) June 3, 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.” 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.” 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