1. 1 New England Lakes Conference Dam Management Districts Presentation by Gary F. Casaly June 4, 2011 www.boonelakeri.org

2. 2 Dam Management Districts Creation by statute, ordinance, or other legislative act Creation by statute, ordinance, or other legislative act Different states address creation in different ways Different states address creation in different ways Example of a dam management district (DMD) is the Boone Lake Dam Management District (Exeter, RI) Example of a dam management district (DMD) is the Boone Lake Dam Management District (Exeter, RI)

3. 3 Getting Ready “We” vs. “They” - Avoid polarization of residents “We” vs. “They” - Avoid polarization of residents Encourage everyone’s input (owners, residents, town officials; pro and con) Encourage everyone’s input (owners, residents, town officials; pro and con)

4. 4 Process of Creating a DMD Creating or reviewing the legislation Creating or reviewing the legislation Meeting with Town Council and/or legislators Meeting with Town Council and/or legislators Work sessions with Town Council or other legislative bodies Work sessions with Town Council or other legislative bodies Public hearing Public hearing Vote by Town Council or other forum Vote by Town Council or other forum

5. 5 Decisions During the Process Options of how to assess properties Options of how to assess properties Voting rights Voting rights Meetings Meetings How to allocate the amount of the budget among residents How to allocate the amount of the budget among residents Officers; for example, treasurer, clerk, and collector/assessor Officers; for example, treasurer, clerk, and collector/assessor

6. 6 Low Overhead/Full Involvement Volunteers rather than paid administrators Volunteers rather than paid administrators Option to request bonding of officers (not required unless residents request it) Option to request bonding of officers (not required unless residents request it) Keep the district financially efficient and the residents knowing that their dollars are well spent Keep the district financially efficient and the residents knowing that their dollars are well spent Democratic process or board decisions? Democratic process or board decisions?

7. 7 Annual Meetings Pre-annual meeting for informal discussion Pre-annual meeting for informal discussion At annual meeting, first discuss the budget items with no votes; then take votes At annual meeting, first discuss the budget items with no votes; then take votes Vote by cards; different color cards based on number of properties owned Vote by cards; different color cards based on number of properties owned

8. 8 It’s the Economy, Stupid! Boone Lake assessments have remained unchanged for past two years Boone Lake assessments have remained unchanged for past two years Bad news is not building up as much of a kitty for dam repair and lake maintenance Bad news is not building up as much of a kitty for dam repair and lake maintenance Good news is that people trust the process and realize that this is not a “cash cow” once it was voted into existence Good news is that people trust the process and realize that this is not a “cash cow” once it was voted into existence

9. 9 Assessment Collections Yearly mailing for payment coupons (just like a tax bill) payable quarterly or annually Yearly mailing for payment coupons (just like a tax bill) payable quarterly or annually Quarterly payment reminders (poster, website) Quarterly payment reminders (poster, website) Discounts based on military service, old age, and hardship exemptions maintained by the town Discounts based on military service, old age, and hardship exemptions maintained by the town

10. 10 Non-payment of assessment Reminder letters Reminder letters Late fees possibly waived to encourage payment Late fees possibly waived to encourage payment Collection by lawyer after two years of non-payment (notification that this is eminent) Collection by lawyer after two years of non-payment (notification that this is eminent)

11. 11 Transfer of ownership (sale) Registry of Deeds listing of owners and property parcel numbers Registry of Deeds listing of owners and property parcel numbers Importance of the recorded notice is to alert real estate professional of the lien that the statute imposes for the collection of management fees Importance of the recorded notice is to alert real estate professional of the lien that the statute imposes for the collection of management fees

12. 12 Let’s Take an Example... The Boone Lake Dam Management District

13. 13 www.boonelakeri.org

14. 14 Statutory Authority [1-3] Chapter 62 of Title 45 of the General Laws of Rhode Island Chapter 62 of Title 45 of the General Laws of Rhode Island Enabling Legislation Enabling Legislation Empowers cities and towns to authorize the establishment of dam management districts Empowers cities and towns to authorize the establishment of dam management districts Provides for lien to secure management fees Provides for lien to secure management fees

15. 15 Area of Town Affected [8-13] Boone Lake Boone Lake  East Shore Drive  West Shore Drive  Birch Drive  Maguire Place Area known as Boone Lake or Boone Lake Shores Area known as Boone Lake or Boone Lake Shores Surrounding areas also enjoy the safety and benefit of a well-maintained dam Surrounding areas also enjoy the safety and benefit of a well-maintained dam

16. 16 Object [15-23] Distribute equitably the cost of maintaining the dam for all Boone lake residents Distribute equitably the cost of maintaining the dam for all Boone lake residents Protect life and property against dam failure Protect life and property against dam failure Accomplish other objectives mentioned in enabling legislation Accomplish other objectives mentioned in enabling legislation

17. 17 Voting at Meetings One vote per tax lot [28-31] One vote per tax lot [28-31] Adjacent multiple lots used as one site in same ownership also get one vote [31-34] Adjacent multiple lots used as one site in same ownership also get one vote [31-34] Vote cast by Eligible Voter (sole owner or person designated by multiple owners) [34-41] Vote cast by Eligible Voter (sole owner or person designated by multiple owners) [34-41] Alternative Eligible Voter [38] Alternative Eligible Voter [38] Owners determined by Assessors’ tax records as of sixty days before vote [44-47] Owners determined by Assessors’ tax records as of sixty days before vote [44-47] Affidavit and copy of recorded deed where Assessors’ records don’t reflect recent purchase [47-54] Affidavit and copy of recorded deed where Assessors’ records don’t reflect recent purchase [47-54]

18. 18 Voting at Meetings Were other methods of voting explored? Were other methods of voting explored?  One vote per person. Couples (or multiple owners) would have an advantage, even though the lake benefits properties and family units regardless of the number of members.

19. 19 Voting at Meetings Were other methods of voting explored? Were other methods of voting explored?  Multiple votes for “assembled” (adjacent) properties. Assembled properties in the same ownership are generally house lot and vacant parcel(s) that make up one “site” and are treated same as single-lot sites for voting. The annexed lots make the site more valuable, just as an improvement might do.

20. 20 Voting at Meetings Were other methods of voting explored? Were other methods of voting explored?  Multiple lots or assemblages of lots that are in the same ownership but are NOT adjacent (e.g., different places around the lake) or are NOT used as one site (e.g., two vacant parcels for resale) would be entitled to multiple votes.

21. 21 Board of Directors Initial Board of Directors (consisting of a Clerk, Treasurer and Collector/Assessor) appointed by Town Council [224-226] Initial Board of Directors (consisting of a Clerk, Treasurer and Collector/Assessor) appointed by Town Council [224-226] 3-member board of directors act until the election of board members at the Initial Budget Meeting [226-227] 3-member board of directors act until the election of board members at the Initial Budget Meeting [226-227] The Board of Directors is answerable to the Dam Management District [241-244] The Board of Directors is answerable to the Dam Management District [241-244]

22. 22 Board of Directors Dam Management District ClerkTreasurerCollector/Assessor

23. 23 Meetings Initial Budget Meeting held within 18 months [61-63] Initial Budget Meeting held within 18 months [61-63] At least thirty day notice [66] At least thirty day notice [66] Notice sent to assessed owners per assessors records or affidavit [64-67] Notice sent to assessed owners per assessors records or affidavit [64-67] Notice includes information of time and place of meeting, any proposed bylaws and any proposed budget [64-67] Notice includes information of time and place of meeting, any proposed bylaws and any proposed budget [64-67]

24. 24 Meetings Initial Budget Meeting Agenda Initial Budget Meeting Agenda  Election of officers (two-year terms [223]): clerk, treasurer and collector/assessor [72-76]  Vote on any proposed bylaws [76-77]  Vote on any proposed budget [77-78]

25. 25 Meetings Subsequent (Annual) Budget Meetings held on third Monday of July each year [78-83] Subsequent (Annual) Budget Meetings held on third Monday of July each year [78-83] Same kind of notice [85-93]: Notices addressed to owners determined by Assessors’ tax records (or based on affidavit and copy of recorded deed where Assessors’ records don’t reflect recent purchase) Same kind of notice [85-93]: Notices addressed to owners determined by Assessors’ tax records (or based on affidavit and copy of recorded deed where Assessors’ records don’t reflect recent purchase)

26. 26 Meetings - Quorum Eligible Voters for 25 parcels [95] Eligible Voters for 25 parcels [95] If no quorum, the meeting is delayed (same night) or postponed (different night) by Board of Directors [96-98] If no quorum, the meeting is delayed (same night) or postponed (different night) by Board of Directors [96-98] Postponement by proclamation and posting [99] Postponement by proclamation and posting [99] If quorum not present at postponed meeting three-member board and Eligible Voters present can act [100-107] If quorum not present at postponed meeting three-member board and Eligible Voters present can act [100-107]

27. 27 Meetings–Things up for Discussion Work to be done on dam & facilities [109] Work to be done on dam & facilities [109] Purchase of equipment [112] Purchase of equipment [112] Improvement of access routes [116] Improvement of access routes [116] Creation of reserve fund [120] Creation of reserve fund [120] Periodic auditing [123] Periodic auditing [123] Time and method of payment of management fees [125] Time and method of payment of management fees [125] Other charges and expenses [128] Other charges and expenses [128] Any remuneration (stipends) for officers [131] Any remuneration (stipends) for officers [131] Liquidation of amounts assumed by BLIA in repairing the dam [136] Liquidation of amounts assumed by BLIA in repairing the dam [136] Vote to fill expired or vacant offices [138] Vote to fill expired or vacant offices [138] Other matters before the meeting [145] Other matters before the meeting [145]

28. 28 Meetings – Votes Needed All matters (other than the election of officers) are determined by majority vote [147-148] All matters (other than the election of officers) are determined by majority vote [147-148] With regard to elections, candidates with the most votes for the particular office are elected to that office [149-150] With regard to elections, candidates with the most votes for the particular office are elected to that office [149-150] Roberts Rules of Order control [236] Roberts Rules of Order control [236]

29. 29 Sharing the Cost of the Budget Amounts established by budget are lien on properties per enabling legislation [155-157] Amounts established by budget are lien on properties per enabling legislation [155-157] Relative Weighted Value: value of any property divided by value of all properties [160-161] Relative Weighted Value: value of any property divided by value of all properties [160-161] Budget multiplied by property’s Relative Weighted Value to determine share [175-176] Budget multiplied by property’s Relative Weighted Value to determine share [175-176] Share directly related to assessed property value, which is an objective value determined by the town Share directly related to assessed property value, which is an objective value determined by the town How this works.... How this works....

30. 30 Examples (Figures Based on On-Line Reassessment Figures) $15,000 Budget $15,000 Budget Total Assessed Values of All Properties = $43,288,896 Total Assessed Values of All Properties = $43,288,896 30 Birch Dr. (84-9-13 and 84-9-12) 30 Birch Dr. (84-9-13 and 84-9-12) Assessed Value = $401,500 Assessed Value = $401,500  $401,500/$43,065,180 =.009275  $15,000 x.009275 = $139.13

31. 31 More Examples 78 W. Shore Dr. (83-6-19) 78 W. Shore Dr. (83-6-19) Assessed Value = $412,400 Assessed Value = $412,400  $412,400/$43,288,896 =.009527  $15,000 x.009527 = $142.91 120 E. Shore Dr. (84-12-6) 120 E. Shore Dr. (84-12-6) Assessed Value = $230,000 Assessed Value = $230,000  $230,000/$43,288,896 =.005313  $15,000 x.005313 = $79.70

32. 32 Quick Calculation (within $5.00) – What’s This Going to Cost ME? Take the first two digits of your assessed value. Example: $401,500 = “40” Take the first two digits of your assessed value. Example: $401,500 = “40” Multiply that number (in the case of the example of a $15,000 budget) by $3.50 Multiply that number (in the case of the example of a $15,000 budget) by $3.50 40 x $3.50 = $140.00 40 x $3.50 = $140.00 For a $20,000 budget use $4.65 For a $20,000 budget use $4.65 40 x $4.65 = $186.00 40 x $4.65 = $186.00 For a $25,000 budget use $5.80 For a $25,000 budget use $5.80 40 x $5.80 = $232.00 40 x $5.80 = $232.00

33. 33 Quick Calculation What’s This Going to Cost ME? Average value of property around lake is $249,300. Thus the average fee would be: Average value of property around lake is $249,300. Thus the average fee would be: $15,000 budget = $86.70 $15,000 budget = $86.70 $20,000 budget = $115.60 $20,000 budget = $115.60 $25,000 budget = $144.50 $25,000 budget = $144.50 This method gives an approximation within about $5.00. Also it is an average. The figure for your property may be higher or lower. This method gives an approximation within about $5.00. Also it is an average. The figure for your property may be higher or lower.

34. 34 Quick Calculation What’s This Going to Cost ME? These are yearly amounts. These are yearly amounts. The Management District can vote to have them paid in installments. The Management District can vote to have them paid in installments.

35. 35 What is this Budget For? Slowly build a “reserve fund” for dam maintenance and, if necessary, repair Slowly build a “reserve fund” for dam maintenance and, if necessary, repair Cover costs and expenses of administering the Dam Management District Cover costs and expenses of administering the Dam Management District

36. 36 Why Not Wait until “Something Happens” before Raising Money? Too much of a burden on personal finances to try to raise money quickly. Too much of a burden on personal finances to try to raise money quickly. Like a retirement fund – start early and the money will be there when you need it. Like a retirement fund – start early and the money will be there when you need it. Think back – how long did it take to raise money by voluntary contributions when repairs were needed last time? Think back – how long did it take to raise money by voluntary contributions when repairs were needed last time?

37. 37 How Much Do We Need to Reserve and What are the Goals? Use history to guide us. Use history to guide us. Major repairs have been made in 1975, early 1980’s and just recently in 2003- 2005. Major repairs have been made in 1975, early 1980’s and just recently in 2003- 2005. The last repair cost about $180,000. The last repair cost about $180,000. We can only guess when the next repair might be needed and what it will cost. We can only guess when the next repair might be needed and what it will cost. Also, regular maintenance is necessary. Also, regular maintenance is necessary.

38. 38 What Factors Need to be Considered? Costs of Regular Maintenance (mowing, removing growth, inspecting gate, etc.) Costs of Regular Maintenance (mowing, removing growth, inspecting gate, etc.) Costs of Administering the District Costs of Administering the District Costs of Major Repairs Costs of Major Repairs When Major Repair will be Needed When Major Repair will be Needed

39. 39 The Reserve – Planning $300,000 in 15 Years $300,000 in 15 Years Need $20,000/year Need $20,000/year $300,000 in 20 Years $300,000 in 20 Years Need $15,000/year Need $15,000/year $300,000 in 25 Years $300,000 in 25 Years Need $12,000/year Need $12,000/year $500,000 in 15 Years $500,000 in 15 Years Need $33,333/year Need $33,333/year $500,000 in 20 Years $500,000 in 20 Years Need $25,000/year Need $25,000/year $500,000 in 25 Years $500,000 in 25 Years Need $20,000/year Need $20,000/year

40. 40 The Reserve – Planning Maybe repairs will be required sooner, or they may be needed later than expected. Maybe repairs will be required sooner, or they may be needed later than expected. Maybe the cost will be lower, or maybe it will be higher. Maybe the cost will be lower, or maybe it will be higher. The Dam Management District as a body will have to decide these issues and will establish the budget. The Dam Management District as a body will have to decide these issues and will establish the budget.

41. 41 Collection of Management Fees Bills sent to owners determined by Assessors’ tax records (or based on affidavit and copy of recorded deed) [166- 174] Bills sent to owners determined by Assessors’ tax records (or based on affidavit and copy of recorded deed) [166- 174] Bills payable in 30 days or as determined at budget meeting [177-179] Bills payable in 30 days or as determined at budget meeting [177-179]

42. 42 Enforcement of Management Fee Liens Same manner as provided for the collection of taxes by municipalities [197- 198] Same manner as provided for the collection of taxes by municipalities [197- 198] The collector/assessor can record a statement specifying management fees that are in arrears [295-297] The collector/assessor can record a statement specifying management fees that are in arrears [295-297] Treasurer may release the lien [299-301] Treasurer may release the lien [299-301]

43. 43 Protection of New Purchasers [186-195] Treasurer may issue certificate to prospective purchasers that specifies management fee/lien status Treasurer may issue certificate to prospective purchasers that specifies management fee/lien status Recorded certificate dissolves liens for amounts not specified (except a lien that is the subject of a statement previously recorded by the collector/assessor, which must be specifically released by the treasurer) [186-193] Recorded certificate dissolves liens for amounts not specified (except a lien that is the subject of a statement previously recorded by the collector/assessor, which must be specifically released by the treasurer) [186-193]

44. 44 Special Meetings [204-216] At request of one or more owners of at least 50 parcels At request of one or more owners of at least 50 parcels Notices sent Notices sent Quorum is Eligible Voters for 25 parcels Quorum is Eligible Voters for 25 parcels

45. 45 Duties of Officers and Board of Directors [221-312] Clerk: Sends notices and keeps minutes Clerk: Sends notices and keeps minutes Collector/Assessor: Determines “Relative Weighted Values” of properties based on Assessors’ information and sends out management fee bills Collector/Assessor: Determines “Relative Weighted Values” of properties based on Assessors’ information and sends out management fee bills Treasurer: Keeps financial records of District, pays bills, assists Collector/Assessor Treasurer: Keeps financial records of District, pays bills, assists Collector/Assessor

46. 46 Miscellaneous Annual Reports to Town and DEM [318- 319] Annual Reports to Town and DEM [318- 319] Amendment by Town Council [324-331] Amendment by Town Council [324-331] Bylaws for administration [333-334] Bylaws for administration [333-334]