The original petition for the formation of a lake district was denied based on procedural irregularities with the petition.  The contents of the petition failed to comply with then existing state law.  The underlying merits of the lake district were not at issue and the denial of the petition was based solely on the failure of the petition to comply with state procedural requirements.

There have been questions raised regarding whether a landowner can be personally liable for the actions of a lake district as well as concerns regarding a lake district being sued. A lake district is a governmental entity, and Wisconsin’s governmental immunity statute provides immunity for intentional and discretionary acts of units of government and their officers with limited exceptions. There are few reported lawsuits involving lake organizations. An individual can always be sued if he or she is responsible for an accident. This is true whether the person acts alone, on behalf of a corporation, a voluntary lake association, or a lake management district. Like any other governmental entity, a lake management district can be sued. The officers, board members and employees of the district can be directly sued, but those officers, board members or employees can not be sued for the liability of the lake management district but only for their own individual actions. Individual members do not, merely by virtue of their belonging to a lake district, subject themselves to liabilities sustained by a third party. Liability can only attach to those who are shown to have actively participated in the affair which was a substantial factor in causing the resulting injuries.

A lake district which is formally organized pursuant to Chapter 33 of the Wisconsin Statutes enjoys the most protection. A lake management district’s exposure as well as its agents, officers, and employees is generally limited to $50,000.00. §893.80 Wis. Stats. Wisconsin also has a recreational immunity statute which can be used by lake organizations and districts.

Further protection against any potential litigation and risk is liability insurance. Whether to purchase comprehensive general liability insurance coverage is a question that will need to be answered by the lake district based upon its particular circumstances. This means that it should examine the activities in which it gets involved in deciding the need for insurance protection. Depending on the activities of the lake district comprehensive general liability insurance can be expensive but coverage provides security for a fraction of the amount of any potential exposure. It is important to remember that each member of a lake district has input into the budgetary processes through its right to vote on matters considered by the Board at its annual meeting.

A lake district provides lake residents and stakeholders with several benefits including:

(1) creating a legal entity for ownership of the area that includes the existing dam,
(2) establishing a state recognized organization that makes us eligible to take advantage of state grants and loans for lake management purposes including milfoil management, dam reconstruction, etc.,
(3) enabling the lake district to efficiently tax property to raise funds and to hold insurance on the dam, and
(4) providing a forum for organizing activities, sharing information and building community in order to maintain the ongoing health of our lake.

More specifically, the need for a lake district now is related to the importance of being able to effectively explore the potential design and installation of a dam on Lake Callahan in order to prevent failure of the existing dam or its potential removal by the DNR, and to successfully manage lake water levels on an ongoing basis in the years ahead.

The existing dam was assessed by a DNR inspector in 2022 and its condition was deemed to be “poor”. Although near-term dam failure is not predicted, its poor condition increases the possibility that the dam will fail which would result in the loss of our lake and the associated lake benefits, as well as diminished home values.

By not having a Lake district, both the ownership of the dam and its ongoing maintenance remains uncertain which means that it poses a risk to others if it is not actively managed and if it were to fail. As a result, the DNR has informed us that continued inaction would lead to them deeming the dam to be “abandoned”. An abandoned dam would ultimately result in its removal by the state in order to restore the natural flow and thereby eliminate our lake in its current form. However, this outcome is avoidable and the formation of a Lake district is the first in a series of steps to ensure a positive outcome that is within our control.

The ownership of the dam is uncertain despite hours of research by multiple individuals including government resources. The passage of time, the transfer of the property to and from various parties, and the lack of clarity in publicly available documents has contributed to the uncertainty. A DNR representative specifically said that ownership was indeterminable based on the documents that he reviewed and that attempting to figure it out would both be a lengthy process and one that would likely not provide a definitive answer. Uncertain ownership of dams is not an uncommon situation and the DNR has shared that there are more than 400 such dams within the state of WI.

Even if an owner were to somehow be identified, it is unlikely that the party would be able or willing to fund the cost of building a dam that met code requirements. The DNR has recommended that the best alternative would be for us to form a Lake district.

Additionally, based on conversations with Sawyer County and Round Lake Township personnel, there is no interest by either municipality to assume ownership of the dam. However, there would be support for having a Lake district take ownership in order to maintain the health of the dam, the lake, and the property tax revenue that it generates.

Yes, an initial attempt was made to form a lake district in 2017. Unfortunately, despite 77% voting to form a Lake district, the submitted paperwork lacked some of the information and formatting that was necessary to gain approval from the Town of Round Lake Board. At that time, the effort was focused on creating an organization to help manage the milfoil which has subsequently been successfully handled via our Lake Association.

In order to form a lake district and to successfully complete the application process, a group of individuals were voted into existence as the Dam Committee by the Lake Association. The committee has already begun researching the process and requirements, in addition to specifically resolving any gaps in the prior application to ensure a positive result.

The CMLPA was formed in 2007 with the general purpose of preserving and protecting the ongoing health of Callahan and Mud Lakes. The focus of the organization since its inception has largely been devoted to successfully managing invasive aquatic species, including most specifically, milfoil. With the combination of annual voluntary contributions of Lake Association members and state grants, the lake has received regular milfoil treatments. These treatments have resulted in a significant reduction in the amount of milfoil and an improvement in the overall health of the lake’s biological ecosystem. Nonetheless, milfoil is nearly impossible to eradicate and ongoing treatment will be necessary.

If a lake district were to be formed, it would be able to fulfill the purpose and role of the existing Lake Association, including the ongoing treatment of invasive species, and the CMLPA would likely be dissolved.

While the Lake Association has been very beneficial in curbing the milfoil and restoring the lake to a healthy and manageable level, it is not recognized as an entity that has standing for owning a dam or for being able to receive government grants or loans. A lake district is a special purpose unit of government with powers focused on lake management and the provision of services to property located within its established boundaries.

There are currently ~250 Lake districts in WI. Although a lake district can be formed for a multitude of reasons, they have been formed to specifically address issues that mirror the situation that we have on our lake with the dam.

No. Deciding to build a dam and the type of dam to be built is a separate decision that will be made by the Lake district Board of Commissioners once all of the necessary information has been gathered and evaluated. The Board of Commissioners is made up of 3-5 elected lake residents and 2 appointed commissioners from local government.

Currently, a small group of individuals is volunteering their time as the Dam Committee for the CMLPA to understand the requirements and to advance the formation of a lake district with an initial goal of constructing a safe and permanent dam that can be managed in perpetuity.

Anyone who is interested in supporting this effort is welcome to join the Dam Committee by contacting one of the existing members. (Committee members names and email contact information are at the bottom of this FAQ.) Additional information regarding the efforts of the Dam Committee including FAQ’s, research findings, upcoming tasks, accomplishments, etc. is available on the CMLPA website.

The initial efforts of the committee have focused on gathering information in order to understand what is needed and to be able to communicate with stakeholders. Thus far, the committee has gathered information from Sawyer County Board members, the Town of Round Lake Board members, the DNR, the UW Extension Office, individuals who participated in the prior lake district application, and two engineering firms who have historically helped lead similar efforts including one that managed the recent completion of the dam on the Tiger Cat flowage. Going forward, the committee will continue to seek input from these organizations and others including Lake districts who have already undergone this process in order to benefit from their knowledge and experience.

Based on the input from the state, county and regional engineering firms who are familiar with this process, we have consistently been told that it is a multi-year effort to form a lake district and to construct a dam.

It is also true that the timing is greatly influenced by the collective effort of us as residents and stakeholders. The work of the committee has been focused on understanding the requirements, developing a plan, and communicating to all stakeholders in a way that generates understanding so that we can enlist the needed resources to move forward at the pace that reflects our shared interest.

Your interest, questions and involvement are an essential part of this process. In order to build understanding and momentum, the committee has been developing plans with the existing Lake Association to make information readily accessible and to increase the frequency of activity. Specific examples include moving toward the creation of a website, moving the association meetings to the Round Lake Town Hall to accommodate more people (as they had been prior to COVID), amending the CMLPA bylaws to allow for meetings to occur beyond just the summer months, and to enable remote access to meetings so those who are not here locally can still participate.

For more information regarding the steps and time required to form a Lake district, see the next 2 questions.

Yes, there are specific steps that must be completed and they are defined in the Sub-Chapter 4 of the Chapter 33 WI State Statute devoted to public inland waters (https://docs.legis.wisconsin.gov/statutes/statutes/33/iv/21).  Based on the legislation, the committee has identified nearly 20 actions that would be necessary to form a lake district. A simplified overview of the steps necessary to request the formation of a district would be:

• choosing a district name;
• documenting why a district is needed including what it will promote and the benefits;
• defining the district boundaries that includes tax parcel numbers and a plat map; creating and distributing a petition that lists those who are eligible to sign (based on the boundaries);
• collecting the petitions and having them verified
• filing the petition with Sawyer County Clerk (assuming there are enough signatures in favor of forming a district).

Establishing the final boundaries is a multi-phase process that involves evaluating which property owners are affected by the lake’s existence and health. As such, there are some obvious property owners who should be included beginning with those who reside on the lake. However, there are no regulations on who must be included. According to a guide for lake organizations published by UW Stevens Point, suggestions for who to consider including are as follows:

• Include all riparian parcels (those touching the water), because they are the most directly benefited from the lake
• Include parcels which are not on the lake but their use is assumed to be benefited by the proximity of the lake (recreation-oriented businesses, marinas, hotels, etc.)
• Include all of the territory to be included in any proposed service area (for example, where sewer or water utility service is contemplated)
• Include properties that have deeded lake access or shared access lots
• Include parcels whose characteristics or location are linked to the lake (for example, businesses that rely on the lake)
• Include entire parcels of land as they are listed on the tax roll. (This is necessary, since taxes and special assessments must be levied on whole tax parcels. There is no mechanism to allocate tax on a parcel that is only partly within the district)

Using the above suggestions and considering guidance from other state authorities who have experience in this process, the Dam Committee would propose an initial lake district boundary. The final decision would made by the county and the boundary is established when the official order to create the district is adopted following the receipt of petition signatures and county approval.

Who will get to sign the petition to determine whether or not a lake district should be formed?

Based on the lake district boundary, a list of “eligible signatures” will be formed using state tax rolls. Individuals who are eligible to sign the petition are those whose name appears as a property owner on the previous year’s tax rolls. A partner/spouse is only eligible to sign if they are referred to on the tax roll. An individual with multiple parcels only signs the petition once. And similarly, a trust/partnership/corporation/foundation/association or local unit of government is entitled to one signature by an authorized representative. In simple terms, it is easiest to think in terms of “1 person = 1 signature”.

51% of the owners of land within the proposed district (this is most common), or the owners of 51% of the land area within the proposed district as determined by eligible signatures. (see question addressing eligible signatures)

Once the Sawyer County Clerk has received the notarized petition with a sufficient number of signatures to request the formation of a lake district, the Sawyer County Board is responsible for acting on the petition by completing the following steps in the required time frames:

• a hearing (within 30 days of filing);
• create a written report of the hearing results (within 3 months of the hearing);
• issue an order either granting or denying the request to form a lake district (within 6 months of the hearing).

Based on the above, it could take up to 7 months from the time that a petition is submitted until a determination has been made by the Sawyer County Board regarding whether or not to approve the formation of a lake district.

Once a lake district has been approved to exist, the Sawyer County Board would form a board of Commissioners to represent the district members. The initial board would be appointed by the County and the Town of Round Lake and would be comprised of a minimum of 5 individuals as follows according to WI State Statute Chapter 33:

• 3 landowners within the district (including at least 1 who is a resident);
• 1 member of the County Land Commission (or someone nominated by the County Land Commission);
• 1 additional member who will represent the Town of Round Lake.

Additionally, the statute establishes that each board will have a Chairperson, Secretary and Treasurer with defined duties for each role. At the first annual meeting of the Lake District Board, at least 1 resident member seat will be an elected position. Elections for other landowner/resident seats (which can be increased to as many as 5) will occur as terms expire.

The lake district is a recognized municipality within the state of WI and it exists by definition to protect the lake. The board of commissioners (see make-up of the board in prior question) would have regular meetings including one annual meeting between May22^nd  and September 8^th. At the annual meeting lake district residents vote to approve the annual budget prepared by the board, vote specifically on assessment amounts, nominate and elect commissioners, and consider other business as presented. In addition to leading the efforts to establish a dam, the lake district would assume responsibilities for milfoil management from the current Lake Association.

Importantly, and in addition to proposing assessments to be voted upon by lake district members as part of the budget presentation at the annual meeting, the lake district board of commissioners has the ability to raise funds via financing or grants. As mentioned in the question about costs and funding, access to low interest loans and state grants can be one of the primary benefits of having a lake district in existence as neither of these are otherwise available to residents or to a Lake Association.

More detailed information about how a lake district board operates (powers and duties, budget management, meeting frequency, voting, commissioner term length, etc.) can be found in WI State Statute Chapter 33 (https://docs.legis.wisconsin.gov/statutes/statutes/33/iv/21).

Prior to seeking approval by a government body such as Sawyer County or the Round Lake Township, residents and stakeholders will need to vote on their interest in forming a Lake District. Greater than 50% of eligible voters will need to vote in favor of the formation in order for it to be considered by the sanctioning body. (In 2012, 77% voted in favor of forming a Lake District)

If a Lake District is formed does that automatically mean that we have committed to building a dam?

No. Deciding to build a dam and the type of dam to be built is a separate decision that will be made by the Lake District Board of Commissioners once all of the necessary information has been gathered and evaluated. The Board of Commissioners is made up of 3-5 elected lake residents and 2 appointed commissioners from local government.

The cost would be determined with the help of engineers who have done this type of work previously here in WI. The costs would be incurred in three primary areas – the administrative efforts to scope and manage the process/project, the construction, and the ongoing maintenance which will be relatively small compared to the one-time construction expense. Prior to having an engineering-informed cost estimate, the Dam Committee will be contacting other lake districts who have undertaken this process in order to better understand the range of costs that have been previously incurred. However, it is worth noting that there are many types of dams, each environment is unique, and the inflation costs of construction are currently unpredictable, so there is a meaningful risk in attempting to estimate the realistic cost of a future dam based on the cost of one that has already been built elsewhere.

Funding sources include general tax levys, special charges levy, or assessments raised from lake residents and stakeholders who are part of the lake district, in addition to state grants that could fund up to 50% of the construction costs. Additionally, low interest loans are available to Lake districts which would enable construction to begin and for the costs to be paid over a period of up to 20 years.

According to WI State Statute Chapter 33, a general tax levy or special charges levy may not exceed a rate of 2.5 mills of equalized valuation as determined by the department of revenue. (1 mill is equal to $1.00 of property tax levied per $1,000 of a property’s assessed value) For example, the maximum annual assessment for a property with an assessed value of $250,000 would be $250.

In general terms, based on conversations with those who have been through this before and the successful completion of other similar projects elsewhere in the state, it is believed that the costs would not be insurmountable and that they would likely be far less than the property value loss incurred if the lake were to no longer exist.

There are lots of opportunities to help out. As mentioned previously, the committee would love for you to join our effort. However, it is understood that not everyone has the time to make this commitment. Nonetheless, volunteering to help complete specific tasks in support of the process/project is also exceedingly valuable and will be increasingly important over time. In the near term, proactively asking questions, seeking facts to be informed, and sharing knowledge with friends and neighbors are all helpful actions. Finally, if you are not a member now, please join the existing Lake Association, attend meetings when you can and stay informed of our plans and needs. (For information on how to join or upcoming meeting dates, contact Denise Kohl at richard.denise.kohl@gmail.com)

How can I get more information and stay informed?

There are several ways to stay informed including; attending the Lake Association meetings and reading the meeting minutes that are distributed following each meeting via email; contacting one of the committee members (names and contact info listed below); staying attuned to the website; and of course, volunteering to join the work of the committee.

Website – https://callahanandmudlake.org/save-our-dam-lake/

There are several ways to stay informed including; attending the Lake Association meetings and reading the meeting minutes that are distributed following each meeting via email; contacting one of the committee members (Click on names below to contact); staying attuned to the website once it is live; and of course, volunteering to join the work of the committee.

Lynne Amundson

Kimberly Kayler

Denise Kohl

Stephen McIntosh

Holly Robbins

Pat Stangl

Jake Steinberg

Dave Tenner

Denny Toll