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Forming a Lake Improvement District by Citizen Petition, September 2023 2 <br />LID to ‘manage curlyleaf pondweed’, the LID could not pursue either restoration because it has not been <br />authorized to do so. <br />Finances <br />As a special purpose type of government, LIDs have the ability to finance projects through various means - such <br />as ad valorem taxes and assessments - but have no taxing authority of their own; taxes and fees are collected on <br />their behalf by the parent government. There are also restrictions on what LIDs can spend money on, <br />specifically: <br />• funds must be spent on programs or projects that improve the lake; and <br />• expenditures over a certain amount must be voted on and approved at the LID’s annual meeting. <br />Boundary <br />Like any type of government, the LID has boundaries established at its creation. All property within the <br />boundary is considered part of the LID. The statutes and rules written to regulate LIDs were written under the <br />expectation that the natural hydrologic boundaries (or lakeshed) of the lake would be the default boundary. Any <br />boundary smaller than that requires review and approval from the DNR, with ultimate approval by the parent <br />government. <br />Ways to Form a LID <br />LIDs can be formed by a city or county, or by private landowners directly via citizen petition to the city or county <br />in which the lake is located. LIDs can also be formed by the Commissioner of the Department of Natural <br />Resources (DNR), although this has never happened. Because the LID is a special purpose type of government, <br />its creation must follow the processes laid out in Minnesota statute. Initiation and formation by city or county <br />resolution is outlined in Minnesota Statutes 103B.515, and initiation by citizen petition is outlined in Minnesota <br />Statutes 103B.521. This guidance focuses only on creating a LID by citizen petition. <br />Forming a LID by Citizen Petition <br />The first steps in forming a LID via citizen petition are preparatory, and consist of: <br />1. Understanding your lake and its problems. <br />2. Determining the programs, projects, and courses of actions that can be realistically undertaken to <br />mitigate the problems identified in Step 1. <br />3. Spending time talking with, and listening to, your neighbors about how an LID could function to address <br />the problems. <br />4. Establishing a regular relationship with the city or county that would with jurisdiction over the LID. <br />These initial steps require a great deal of time and effort, but this investment will pay off later, so take your time <br />on them. Since the entire point of establishing a LID is to improve the lake and mitigate its problems, you’ll need <br />to have a deep understanding of what those problems are. Similarly, every lake is different, and a realistic <br />215