11

New England Lakes New England Lakes Conference Conference

Dam Management DistrictsDam Management Districts

Presentation by Gary F. CasalyPresentation by Gary F. CasalyJune 4, 2011June 4, 2011

www.boonelakeri.orgwww.boonelakeri.org

22

Dam Management DistrictsDam Management Districts

• Creation by statute, ordinance, or Creation by statute, ordinance, or other legislative actother legislative act

• Different states address creation in Different states address creation in different waysdifferent ways

• Example of a dam management Example of a dam management district (DMD) is the Boone Lake Dam district (DMD) is the Boone Lake Dam Management District (Exeter, RI)Management District (Exeter, RI)

33

Getting ReadyGetting Ready

• ““We” vs. “They” - Avoid polarization We” vs. “They” - Avoid polarization of residentsof residents

• Encourage everyone’s input (owners, Encourage everyone’s input (owners, residents, town officials; pro and con)residents, town officials; pro and con)

44

Process of Creating a DMDProcess of Creating a DMD

• Creating or reviewing the legislationCreating or reviewing the legislation

• Meeting with Town Council and/or Meeting with Town Council and/or legislatorslegislators

• Work sessions with Town Council or Work sessions with Town Council or other legislative bodiesother legislative bodies

• Public hearingPublic hearing

• Vote by Town Council or other forumVote by Town Council or other forum

55

Decisions During the Decisions During the ProcessProcess

• Options of how to assess propertiesOptions of how to assess properties

• Voting rightsVoting rights

• MeetingsMeetings

• How to allocate the amount of the How to allocate the amount of the budget among residentsbudget among residents

• Officers; for example, treasurer, Officers; for example, treasurer, clerk, and collector/assessor clerk, and collector/assessor

66

Low Overhead/Full Low Overhead/Full InvolvementInvolvement• Volunteers rather than paid administratorsVolunteers rather than paid administrators

• Option to request bonding of officers (not Option to request bonding of officers (not required unless residents request it)required unless residents request it)

• Keep the district financially efficient and Keep the district financially efficient and the residents knowing that their dollars the residents knowing that their dollars are well spentare well spent

• Democratic process or board decisions?Democratic process or board decisions?

77

Annual MeetingsAnnual Meetings

• Pre-annual meeting for informal Pre-annual meeting for informal discussiondiscussion

• At annual meeting, first discuss the At annual meeting, first discuss the budget items with no votes; then budget items with no votes; then take votestake votes

• Vote by cards; different color cards Vote by cards; different color cards based on number of properties based on number of properties owned owned

88

It’s the Economy, Stupid!It’s the Economy, Stupid!

• Boone Lake assessments have remained Boone Lake assessments have remained unchanged for past two yearsunchanged for past two years

• Bad news is not building up as much of a Bad news is not building up as much of a kitty for dam repair and lake maintenancekitty for dam repair and lake maintenance

• Good news is that people trust the Good news is that people trust the process and realize that this is not a “cash process and realize that this is not a “cash cow” once it was voted into existencecow” once it was voted into existence

99

Assessment CollectionsAssessment Collections

• Yearly mailing for payment coupons Yearly mailing for payment coupons (just like a tax bill) payable quarterly (just like a tax bill) payable quarterly or annuallyor annually

• Quarterly payment reminders Quarterly payment reminders (poster, website)(poster, website)

• Discounts based on military service, Discounts based on military service, old age, and hardship exemptions old age, and hardship exemptions maintained by the town maintained by the town

1010

Non-payment of assessmentNon-payment of assessment

• Reminder lettersReminder letters

• Late fees possibly waived to Late fees possibly waived to encourage paymentencourage payment

• Collection by lawyer after two years Collection by lawyer after two years of non-payment (notification that this of non-payment (notification that this is eminent)is eminent)

1111

Transfer of ownership (sale)Transfer of ownership (sale)

• Registry of Deeds listing of owners Registry of Deeds listing of owners and property parcel numbersand property parcel numbers

• Importance of the recorded notice is Importance of the recorded notice is to alert real estate professional of to alert real estate professional of the lien that the statute imposes for the lien that the statute imposes for the collection of management fees the collection of management fees

1212

Let’s Take an Example...Let’s Take an Example...

The Boone Lake The Boone Lake Dam Management DistrictDam Management District

1313

www.boonelakeri.orgwww.boonelakeri.org

1414

Statutory Authority [1-3]Statutory Authority [1-3]

• Chapter 62 of Title 45 of the General Chapter 62 of Title 45 of the General Laws of Rhode IslandLaws of Rhode Island

• Enabling LegislationEnabling Legislation• Empowers cities and towns to Empowers cities and towns to

authorize the establishment of dam authorize the establishment of dam management districtsmanagement districts

• Provides for lien to secure Provides for lien to secure management feesmanagement fees

1515

Area of Town Affected [8-Area of Town Affected [8-13]13]• Boone LakeBoone Lake

East Shore DriveEast Shore Drive West Shore DriveWest Shore Drive Birch DriveBirch Drive Maguire PlaceMaguire Place

• Area known as Boone Lake or Boone Area known as Boone Lake or Boone Lake ShoresLake Shores

• Surrounding areas also enjoy the Surrounding areas also enjoy the safety and benefit of a well-safety and benefit of a well-maintained dammaintained dam

1616

Object [15-23]Object [15-23]

• Distribute equitably the cost of Distribute equitably the cost of maintaining the dam for all Boone maintaining the dam for all Boone lake residentslake residents

• Protect life and property against dam Protect life and property against dam failurefailure

• Accomplish other objectives Accomplish other objectives mentioned in enabling legislationmentioned in enabling legislation

1717

Voting at MeetingsVoting at Meetings• One vote per tax lot [28-31]One vote per tax lot [28-31]• Adjacent multiple lots used as one site in Adjacent multiple lots used as one site in

same ownership also get one vote [31-34]same ownership also get one vote [31-34]• Vote cast by Eligible Voter (sole owner or Vote cast by Eligible Voter (sole owner or

person designated by multiple owners) [34-person designated by multiple owners) [34-41]41]

• Alternative Eligible Voter [38]Alternative Eligible Voter [38]• Owners determined by Assessors’ tax Owners determined by Assessors’ tax

records as of sixty days before vote [44-47]records as of sixty days before vote [44-47]• Affidavit and copy of recorded deed where Affidavit and copy of recorded deed where

Assessors’ records don’t reflect recent Assessors’ records don’t reflect recent purchase [47-54]purchase [47-54]

1818

Voting at MeetingsVoting at Meetings• Were other methods of voting Were other methods of voting

explored?explored?

One vote per person. Couples (or One vote per person. Couples (or multiple owners) would have an multiple owners) would have an advantage, even though the lake advantage, even though the lake benefits properties and family units benefits properties and family units regardless of the number of members.regardless of the number of members.

1919

Voting at MeetingsVoting at Meetings• Were other methods of voting explored?Were other methods of voting explored?

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

2020

Voting at MeetingsVoting at Meetings

• Were other methods of voting Were other methods of voting explored?explored?

Multiple lots or assemblages of lots that Multiple lots or assemblages of lots that are in the same ownership but are NOT are in the same ownership but are NOT adjacent (e.g., different places around the adjacent (e.g., different places around the lake) or are NOT used as one site (e.g., lake) or are NOT used as one site (e.g., two vacant parcels for resale) would be two vacant parcels for resale) would be entitled to multiple votes.entitled to multiple votes.

2121

Board of DirectorsBoard of Directors

• Initial Board of Directors (consisting of a Initial Board of Directors (consisting of a Clerk, Treasurer and Collector/Assessor) Clerk, Treasurer and Collector/Assessor) appointed by Town Council [224-226]appointed by Town Council [224-226]

• 3-member board of directors act until 3-member board of directors act until the election of board members at the the election of board members at the Initial Budget Meeting [226-227]Initial Budget Meeting [226-227]

• The Board of Directors is answerable to The Board of Directors is answerable to the Dam Management District [241-the Dam Management District [241-244]244]

2222

Board of DirectorsBoard of Directors

Dam Management District

Clerk Treasurer Collector/Assessor

2323

MeetingsMeetings• Initial Budget Meeting held within 18 Initial Budget Meeting held within 18

months [61-63]months [61-63]

• At least thirty day notice [66]At least thirty day notice [66]

• Notice sent to assessed owners per Notice sent to assessed owners per assessors records or affidavit [64-67]assessors records or affidavit [64-67]

• Notice includes information of time Notice includes information of time and place of meeting, any proposed and place of meeting, any proposed bylaws and any proposed budget bylaws and any proposed budget [64-67][64-67]

2424

MeetingsMeetings

• Initial Budget Meeting AgendaInitial Budget Meeting Agenda Election of officers (two-year terms Election of officers (two-year terms

[223]): clerk, treasurer and [223]): clerk, treasurer and collector/assessor [72-76]collector/assessor [72-76]

Vote on any proposed bylaws [76-77]Vote on any proposed bylaws [76-77] Vote on any proposed budget [77-78]Vote on any proposed budget [77-78]

2525

MeetingsMeetings• Subsequent (Annual) Budget Subsequent (Annual) Budget

Meetings held on third Monday of July Meetings held on third Monday of July each year [78-83]each year [78-83]

• Same kind of notice [85-93]: Notices Same kind of notice [85-93]: Notices addressed to owners determined by addressed to owners determined by Assessors’ tax records (or based on Assessors’ tax records (or based on affidavit and copy of recorded deed affidavit and copy of recorded deed where Assessors’ records don’t where Assessors’ records don’t reflect recent purchase)reflect recent purchase)

2626

Meetings - QuorumMeetings - Quorum

• Eligible Voters for 25 parcels [95]Eligible Voters for 25 parcels [95]• If no quorum, the meeting is delayed If no quorum, the meeting is delayed

(same night) or postponed (different (same night) or postponed (different night) by Board of Directors [96-98]night) by Board of Directors [96-98]

• Postponement by proclamation and Postponement by proclamation and posting [99]posting [99]

• If quorum not present at postponed If quorum not present at postponed meeting three-member board and meeting three-member board and Eligible Voters present can act [100-Eligible Voters present can act [100-107]107]

2727

Meetings–Things up for Meetings–Things up for DiscussionDiscussion• 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 Liquidation of amounts assumed by BLIA in repairing the dam [136]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]

2828

Meetings – Votes NeededMeetings – Votes Needed

• All matters (other than the election of All matters (other than the election of officers) are determined by majority officers) are determined by majority vote [147-148]vote [147-148]

• With regard to elections, candidates With regard to elections, candidates with the most votes for the particular with the most votes for the particular office are elected to that office [149-office are elected to that office [149-150]150]

• Roberts Rules of Order control [236]Roberts Rules of Order control [236]

2929

Sharing the Cost of the Sharing the Cost of the BudgetBudget• Amounts established by budget are lien on Amounts established by budget are lien on

properties per enabling legislation [155-157]properties per enabling legislation [155-157]

• Relative Weighted Value: value of any property Relative Weighted Value: value of any property divided by value of all properties [160-161]divided by value of all properties [160-161]

• Budget multiplied by property’s Relative Budget multiplied by property’s Relative Weighted Value to determine share [175-176]Weighted Value to determine share [175-176]

• Share directly related to assessed property Share directly related to assessed property value, which is an objective value determined value, which is an objective value determined by the townby the town

• How this works . . . .How this works . . . .

3030

Examples (Figures Based on Examples (Figures Based on On-Line Reassessment Figures)On-Line Reassessment Figures)

• $15,000 Budget$15,000 Budget

• Total Assessed Values of All Total Assessed Values of All Properties = $43,288,896Properties = $43,288,896

• 30 Birch Dr.30 Birch Dr. (84-9-13 and 84-9-12) (84-9-13 and 84-9-12)

• Assessed Value = $401,500Assessed Value = $401,500 $401,500/$43,065,180 = .009275$401,500/$43,065,180 = .009275 $15,000 x .009275 = $139.13$15,000 x .009275 = $139.13

3131

More ExamplesMore Examples

• 78 W. Shore Dr.78 W. Shore Dr. (83-6-19) (83-6-19)• Assessed Value = $412,400Assessed Value = $412,400

$412,400/$43,288,896 = .009527$412,400/$43,288,896 = .009527 $15,000 x .009527 = $142.91$15,000 x .009527 = $142.91

• 120 E. Shore Dr.120 E. Shore Dr. (84-12-6) (84-12-6)• Assessed Value = $230,000Assessed Value = $230,000

$230,000/$43,288,896 = .005313$230,000/$43,288,896 = .005313 $15,000 x .005313 = $79.70$15,000 x .005313 = $79.70

3232

Quick Calculation (within Quick Calculation (within $5.00) –$5.00) –What’s This Going to Cost ME?What’s This Going to Cost ME?• Take the first two digits of your assessed Take the first two digits of your assessed

value. value. ExampleExample: : $401,500$401,500 = “40” = “40”• Multiply that number (in the case of the Multiply that number (in the case of the

example of a example of a $15,000 budget$15,000 budget) by $3.50) by $3.50• 40 x $3.50 = $140.0040 x $3.50 = $140.00• For a For a $20,000 budget$20,000 budget use $4.65 use $4.65• 40 x $4.65 = $186.0040 x $4.65 = $186.00• For a For a $25,000 budget$25,000 budget use $5.80 use $5.80• 40 x $5.80 = $232.0040 x $5.80 = $232.00

3333

Quick CalculationQuick CalculationWhat’s This Going to Cost ME?What’s This Going to Cost ME?

• Average valueAverage value of property around of property around lake is lake is $249,300$249,300. Thus the average . Thus the average fee would be: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 This method gives an approximation approximation

within about $5.00within about $5.00. Also it is an . Also it is an averageaverage. . The figure for The figure for your property may be higher your property may be higher or loweror lower..

3434

Quick CalculationQuick CalculationWhat’s This Going to Cost ME?What’s This Going to Cost ME?

• These are yearly amounts.These are yearly amounts.

• The Management District can vote to The Management District can vote to have them paid in installments.have them paid in installments.

3535

What is this Budget For?What is this Budget For?

• Slowly build a “reserve fund” for dam Slowly build a “reserve fund” for dam maintenance and, if necessary, maintenance and, if necessary, repairrepair

• Cover costs and expenses of Cover costs and expenses of administering the Dam Management administering the Dam Management DistrictDistrict

3636

Why Not Wait until “Something Why Not Wait until “Something Happens” before Raising Happens” before Raising Money?Money?• Too much of a burden on personal Too much of a burden on personal

finances to try to raise money quickly.finances to try to raise money quickly.

• Like a retirement fund – start early and Like a retirement fund – start early and the money will be there when you need it.the money will be there when you need it.

• Think back – how long did it take to raise Think back – how long did it take to raise money by voluntary contributions when money by voluntary contributions when repairs were needed last time?repairs were needed last time?

3737

How Much Do We Need to How Much Do We Need to Reserve and What are the Reserve and What are the Goals?Goals?• Use history to guide us.Use history to guide us.• Major repairs have been made in 1975, Major repairs have been made in 1975,

early 1980’s and just recently in 2003-early 1980’s and just recently in 2003-2005.2005.

• The last repair cost about $180,000.The last repair cost about $180,000.• We can only guess when the next repair We can only guess when the next repair

might be needed and what it will cost.might be needed and what it will cost.• Also, regular maintenance is necessary.Also, regular maintenance is necessary.

3838

What Factors Need to be What Factors Need to be Considered?Considered?

• Costs of Regular Maintenance Costs of Regular Maintenance (mowing, removing growth, (mowing, removing growth, inspecting gate, etc.)inspecting gate, etc.)

• Costs of Administering the DistrictCosts of Administering the District

• Costs of Major RepairsCosts of Major Repairs

• When Major Repair will be NeededWhen Major Repair will be Needed

3939

The Reserve – PlanningThe Reserve – Planning

• $300,000 in 15 Years$300,000 in 15 Years

• Need $20,000/yearNeed $20,000/year

• $300,000 in 20 Years$300,000 in 20 Years

• Need $15,000/yearNeed $15,000/year

• $300,000 in 25 Years$300,000 in 25 Years

• Need $12,000/yearNeed $12,000/year

• $500,000 in 15 Years$500,000 in 15 Years

• Need $33,333/yearNeed $33,333/year

• $500,000 in 20 Years$500,000 in 20 Years

• Need $25,000/yearNeed $25,000/year

• $500,000 in 25 Years$500,000 in 25 Years

• Need $20,000/yearNeed $20,000/year

4040

The Reserve – PlanningThe Reserve – Planning

• Maybe repairs will be required Maybe repairs will be required sooner, or they may be needed later sooner, or they may be needed later than expected.than expected.

• Maybe the cost will be lower, or Maybe the cost will be lower, or maybe it will be higher.maybe it will be higher.

• The Dam Management District as a The Dam Management District as a body will have to decide these issues body will have to decide these issues and will establish the budget.and will establish the budget.

4141

Collection of Management Collection of Management FeesFees• Bills sent to owners determined by Bills sent to owners determined by

Assessors’ tax records (or based on Assessors’ tax records (or based on affidavit and copy of recorded deed) affidavit and copy of recorded deed) [166-174][166-174]

• Bills payable in 30 days or as Bills payable in 30 days or as determined at budget meeting [177-determined at budget meeting [177-179]179]

4242

Enforcement of Management Enforcement of Management Fee LiensFee Liens

• Same manner as provided for the Same manner as provided for the collection of taxes by municipalities collection of taxes by municipalities [197-198][197-198]

• The collector/assessor can record a The collector/assessor can record a statement specifying management statement specifying management fees that are in arrears [295-297]fees that are in arrears [295-297]

• Treasurer may release the lien [299-Treasurer may release the lien [299-301]301]

4343

Protection of New Purchasers Protection of New Purchasers [186-195][186-195]• Treasurer may issue certificate to Treasurer may issue certificate to

prospective purchasers that specifies prospective purchasers that specifies management fee/lien statusmanagement fee/lien status

• Recorded certificate dissolves liens Recorded certificate dissolves liens for amounts not specified (except a for amounts not specified (except a lien that is the subject of a statement lien that is the subject of a statement previously recorded by the previously recorded by the collector/assessor, which must be collector/assessor, which must be specifically released by the specifically released by the treasurer) [186-193]treasurer) [186-193]

4444

Special Meetings [204-216]Special Meetings [204-216]

• At request of one or more owners of At request of one or more owners of at least 50 parcelsat least 50 parcels

• Notices sentNotices sent

• Quorum is Eligible Voters for 25 Quorum is Eligible Voters for 25 parcelsparcels

4545

Duties of Officers and Duties of Officers and Board of Directors [221-312]Board of Directors [221-312]

• Clerk: Sends notices and keeps minutesClerk: Sends notices and keeps minutes• Collector/Assessor: Determines Collector/Assessor: Determines

“Relative Weighted Values” of “Relative Weighted Values” of properties based on Assessors’ properties based on Assessors’ information and sends out management information and sends out management fee billsfee bills

• Treasurer: Keeps financial records of Treasurer: Keeps financial records of District, pays bills, assists District, pays bills, assists Collector/AssessorCollector/Assessor

4646

MiscellaneousMiscellaneous

• Annual Reports to Town and DEM Annual Reports to Town and DEM [318-319][318-319]

• Amendment by Town Council [324-Amendment by Town Council [324-331]331]

• Bylaws for administration [333-334] Bylaws for administration [333-334]