Boone Lake Dam Management District

1. Boone Lake Dam Management District Public HearingAugust 27, 2007

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

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

4. Object [15-22] • Distribute equitably the cost of maintaining the dam for all Boone lake residents • Protect life and property against dam failure • Accomplish other objectives mentioned in enabling legislation

5. Voting at Meetings • One vote per tax lot [28-31] • 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] • Alternative Eligible Voter [38] • 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]

6. Voting at Meetings • 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.

7. Voting at Meetings • 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.

8. Voting at Meetings • 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.

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

10. Board of Directors

11. Meetings • Initial Budget Meeting held within 18 months [61-63] • At least thirty day notice [66] • 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]

12. Meetings • 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]

13. Meetings • 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)

14. Meetings - Quorum • 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] • Postponement by proclamation and posting [99] • If quorum not present at postponed meeting three-member board and Eligible Voters present can act [100-107]

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

16. Meetings – Votes Needed • 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] • Roberts Rules of Order control [236]

17. Sharing the Cost of the Budget • 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] • 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 • How this works . . . .

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

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

20. 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” • Multiply that number (in the case of the example of a $15,000 budget) by $3.50 • 40 x $3.50 = $140.00 • For a $20,000 budget use $4.65 • 40 x $4.65 = $186.00 • For a $25,000 budget use $5.80 • 40 x $5.80 = $232.00

21. Quick CalculationWhat’s This Going to Cost ME? • Average value of property around lake is $249,300. Thus the average fee would be: • $15,000 budget = $86.70 • $20,000 budget = $115.60 • $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.

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

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

24. Why Not Wait until “Something Happens” before Raising Money? • 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. • Think back – how long did it take to raise money by voluntary contributions when repairs were needed last time?

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

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

27. $300,000 in 15 Years Need $20,000/year $300,000 in 20 Years Need $15,000/year $300,000 in 25 Years Need $12,000/year $500,000 in 15 Years Need $33,333/year $500,000 in 20 Years Need $25,000/year $500,000 in 25 Years Need $20,000/year The Reserve – Planning

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

29. 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 payable in 30 days or as determined at budget meeting [177-179]

30. Enforcement of Management Fee Liens • 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] • Treasurer may release the lien [299-301]

31. Protection of New Purchasers [186-195] • 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]

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

33. Duties of Officers and Board of Directors [221-312] • Clerk: Sends notices and keeps minutes • 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

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