Lake District Formation and Funding Elisabeth C. Goodman Cain Hibbard & Myers PC Counselors at Law And Dr. Michael Germain

Why Form a Lake District? Many lakes are shared resources maintained by voluntary contributions from homeowners. Some lakes receive funds from state and local government but need a group to manage the funds It may be difficult to raise sufficient money to pay for control of invasive weeds and species and take other action to improve or sustain good water quality Often a minority of owners contribute a large amount, while many other lake front owners are not willing or able to contribute sufficient funds to manage the lake. Cain, Hibbard & Myers PC

Lake Garfield District For a healthy Lake Garfield

The history of Lake Garfield Monterey MA and lake management Originally Brewers Pond. The 1 st dam was in the 1700s for a small saw mill. Currently a State “Great Pond” owned by the State with a State public boat ramp, in conflict with a town beach. For at least 60 years the state has done no evaluations or management of the lake. The town also has not been involved in lake management Cain, Hibbard & Myers PC

Friends of Lake Garfield (FLG) First started in the 1960s due to concern with nuisance weeds interfering with boating, swimming and fishing. Milfoil was found later in the decade and attempts to treat with “weavils” were not successful. A drawdown at the dam (6-7 feet) has been done since that time with good success. Cain, Hibbard & Myers PC

FLG Fundraising among lake front residents ($10- 15,000/Y) Recently 501C tax exempt Yearly survey of the lake by Dr Wagner We have attempted to be good neighbors with non-lake residents with yearly “lakefest” and communication with the Select Board, Con Com and regular news article in the Monterey News Cain, Hibbard & Myers PC

Milfoil problem Three years ago on our annual survey a dense patch of milfoil (one acre) was found in depths not affected by the drawdown. We got an OOC to suction harvest with divers but when the divers came the next year the patch was >10 acres. The FLG were now faced with rising expenses likely over a 5-10 year period Cain, Hibbard & Myers PC

Our solution to rising expenses and limited fundraising? A tax district for the lake Pros-everyone on the lake contributes based on their property values. Cons- some people do not want to contribute, and some fear that the tax district “privatizes” the lake. Cain, Hibbard & Myers PC

What are the types of expenses involved in lake management? Control of invasive species can cost $30,000 to $50,000 a year depending on the size of the lake and the conditions on the lake Repair and maintenance of dam structures and facilities such as beaches can be very expensive Annual monitoring of water quality and fish Permitting Grant management Property acquisition that might help preserve water quality Cain, Hibbard & Myers PC

What is a lake district? A lake district is a governmental body, like a municipality. It is created by special act approved by the state legislature, which is then signed by the governor. A district has to comply with the provisions of the special act, but usually they are run by a committee called a Prudential Committee. The property owners included in the district vote at an annual town meeting on the budget and other matters for the district. Property owners are usually called “Proprietors” of the district. Cain, Hibbard & Myers PC

Funding for the Lake District The Lake District can assess taxes and use them as a source of funds. The taxes are based on an annual budget adopted by the proprietors of the district. A Lake District can qualify for grants as a governmental body. Cain, Hibbard & Myers PC

Who pays the District Taxes? The district can be defined to include all lake front property owners and owners with deeded rights to lake access. Second home owners and local residents can both be taxed based on the value of their property. The property valuation is determined in the same manner as the municipal assessment. Cain, Hibbard & Myers PC

How are the District Taxes Paid? Usually the town tax collector sends out the town bills and the district bills. The district bills are much, much smaller than the town real estate tax bill. The property owners pay the town and the town transfers the district’s share to the district bank account. Cain, Hibbard & Myers PC

What is the process for creating a lake district? In Massachusetts, the town meeting or city council must approve the special act creating the district. The town or city council vote instructs the selectmen (or mayor) to file the special act with the state legislature for approval. Both the house and senate in Massachusetts review and vote on the special act. It also has to be signed by the Governor. Usually the special act, once approved by the state, requires the local officials to hold a meeting in town of the proprietors of the district, and a majority have to vote to establish the district. Cain, Hibbard & Myers PC

Who manages the Lake District? The Prudential committee is elected by the proprietors. The Special Act that creates the district can define how many people constitute the Prudential Committee. For example, there can be a representative appointed by the selectmen on the Prudential Committee. The Prudential Committee makes decisions about management but subject to authorization from the proprietors at annual meeting. Each year the proprietors meet to vote on the budget and to give other authorizations to the Prudential Committee. Cain, Hibbard & Myers PC

Advantages of a Lake District 1.Secure funding based on taxes. 2.Ability to borrow funds based on tax income. 3.Qualifies as governmental entity for grant applications. 4.Qualifies for waiver of permit fees as governmental body. Cain, Hibbard & Myers PC

Burdens of a Lake District Must comply with public bidding, open meeting laws, ethics laws and other governmental requirements. Time-consuming process to establish the district because approval by municipality and state legislature is required. Approval is required by proprietors at annual meeting for contracts, budget and most district actions. Cain, Hibbard & Myers PC

So what happened? At town meeting the voted approved the “act” Nevertheless, so far, the select board and clerk have refused to certify the vote. Our attempts to keep the issues of how to manage the milfoil problem (possible herbicide use) and the lake district issue separate, failed. The next town meeting the voters approved a one year “ban” on herbicides in Garfield A poorly written warrant that might have been an attempt to reverse part of the approved act was “tabled” and thus denied by town meeting. Cain, Hibbard & Myers PC

Questions? Contact Elisabeth C. Goodman, Esq. at Cain, Hibbard & Myers, PC (413) Cain, Hibbard & Myers PC