LINCOLN PIPESTONE RURAL WATER SYSTEM

East Highway 14, P.O. Box 188, Lake Benton, MN 56149

(507)368-4248 fax (507)368-4573 email: lprw@itctel.com

SPECIAL MEETING MINUTES

The special meeting of the Lincoln Pipestone Rural Water (LPRW) System Board of Commissioners was held at the LPRW office on Monday, November 20, 2006 starting at 11:00 a.m. Chairman Jerry Lonneman called the meeting to order with Commissioners Henry Van Dyke, Earl DeWilde, Mike Brunner, Frank Engels, Joe Weber, Leonard Swenson, Bill Ufkin and Ken Buysse present. Commissioner Rod Spronk was absent. CEO, Dennis Healy was also present. The purpose of the meeting was to discuss 2007 Budget issues.

Joe Weber reported that Glen Krog has again donated his proceeds from the rent of the LPRW land at the Holland well field to several local organizations.

The Personnel and Water Resources & Equipment Committees met separately to discuss 2007 budget issues. These committees reported to the Budget & Finance Committee at 1:00 p.m.

The Personnel Committee reported that they had reviewed the personnel budget in accordance with the Board action taken at the September 18, 2006 meeting. Hourly pay tables have been adjusted and benefits calculated. The projected 2007 personnel budget for salary and benefits is $890,230 an increase of $56,128 for existing staff plus $44,050 to add one new position. Bill Ufkin recommended that the Personnel Committee look alternatives such as “health savings accounts” to try to slow the costs of health insurance coverage. The Personnel Committee recommended that the Personnel budget be included in the full budget as presented.

The Water Resources & Equipment Committee reviewed the 2007-2012 Capital Improvements Program. New water resource options were discussed at length because of the high cost of developing new resources. The Committee recommended that Healy contact Osceola Rural Water to find out if any water supplies are available from them. M/S/P Van Dyke/Brunner to recommend approval of the 2007-2012 Capital Improvements Program as presented.

The Budget and Finance Committee reviewed the recommendations from the other committees, discussed revenue projections, and the overall budget as presented by Dennis Healy. M/S/P Swenson/Weber to recommend adoption of the 2007 Budget and 2007-2012 Capital Improvements Program by the full Board.

The meeting was adjourned at 3:00 p.m.

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Earl DeWilde, Secretary