Funding Concepts
The following concepts have been proposed by individuals within the watershed to fund the
Indian Lake Watershed Project's administrative, program, and staffing needs and are presented
in order of public popularity. Those presented first were determined to be most supported by
respondents of surveys distributed within the Indian Lake Watershed.
Lake User Fees
Most people are familiar with user fees, such as when taking the kids to the zoo, a user fee is
paid at the front gate. Public campgrounds often charge user fees. The appeal of charging
user fees is that, by definition, users of the resource pay for part or all of the cost of
operating the facility. This funding solution would allow the watershed project to collect
money from non-residents who visit the lake on weekends through the summer. It is estimated
that over one million individuals visit Indian Lake every summer. A mere $0.10 per visitor
would generate $100,000.00 per year, more than enough to meet the project's annual
administrative budget requirements.
Unfortunately, this solution, although appealing, is not currently feasible. The first
impediment is the watershed project has no legal authority to charge a user fee. Some have
suggested the Indian Lake State Park should serve as a proxy by collecting a user fee for the
project. Although the state park collects fees for campground use, this revenue must be added
to the ODNR general fund, which is reallocated throughout Ohio. In short, state law would have
to be changed in order for the watershed project to be able to take advantage of this funding
concept.
Economics is another consideration regarding user fees. If a fee is charged at Indian Lake,
recreationists are likely to spend their weekends elsewhere. Several other lakes offer
recreational opportunities within a short driving distance from Columbus and Dayton including
Buckeye Lake, Lake Loramie, and Grand Lake St.Marys. If legislation were to be enacted to
allow the collection of user fees at Indian Lake it would be necessary to have the same fee
collected at all public lakes in Ohio in order to maintain an equitable economic incentive for
visiting any one lake.
Foundation/Endowment
This concept involves tapping into the world of private charitable giving. The U. S. tax laws
allow individuals and businesses to contribute to a philanthropic cause in lieu of paying taxes.
The policy logic stems from the assumption that private organizations dedicated to benefiting
human life and society can do so more efficiently than government, so contributing to such an
organization should be deducted from one's tax burden.
Enabling the Indian Lake Watershed Project to receive charitable gifts would require either the
creation of a foundation with IRS status as a not-for-profit organization, or entering a
relationship with a community foundation which can accept and manage contributions on behalf
of the project.
Once the project is able to accept charitable contributions, an endowment fund can be
established with donations from individuals, businesses, and other foundations. Interest from
the endowment will then support project administrative costs and eventually, as the endowment
continues to grow, may support programs and staff. The endowment principle typically is not
spent, it is maintained as a permanent legacy. This funding option is dependent on the project
receiving contributions from the community. Although an uncertain funding source, the public
may prefer to contribute dollars to improve the water quality of Indian Lake rather than be
subject to a mandatory tax.
Grants
Grants are simply funds given to one organization by another to finance the completion of goals
held in common between both organizations. Granting organizations can be classified into two
types: public and private. Public grant making organizations are always government agencies,
while private grant-making organizations are always not-for-profit foundations.
The Indian Lake Watershed Project is very familiar with applying for, receiving, and managing
public grants. The project is currently funded entirely by public grants, the local match to
those grants and technical support staff is provided in-kind by partner agencies.
Public and private grants are widely available for implementing programs; however, funds for
general support or administrative costs are difficult to obtain. Grant making organizations
generally want to see these costs met locally. The demonstration of local commitment to a
project is essential to generate funds from grant making organizations.
Project planning is difficult when operating with grant dollars and generates a climate of
uncertainty. The duration of support with any one grant is usually short term and program
specific. The project's past and current reliance on grants has lead to a dramatic turnover in
staff which is inefficient because new staff members must each experience a learning and
familiarization process prior to providing peak service. In addition, high turnover can
negatively affect team cohesiveness.
Fundraising Events
Fundraising events are an excellent way to draw new supporters into the Indian Lake Watershed
Project and gain visibility for the project's work. Special events can also provide the
project with an additional source of income to supplement and diversify the budget. Examples
of some possible fund raising events include: auctions, benefits, concerts, dinners, festivals,
guided tours, and races to name a few. Event planning is an ongoing process and should involve
individuals from the community to share in the work of developing the event.
Indian Lake Boat License
Boat licenses are currently issued through ODNR, Division of Watercraft. Ohio boat licenses
allow the licensee to use their boat on any Ohio lake. Some have suggested a special Indian
Lake Boat License be created which must be purchased by anyone wanting to use a boat on Indian
Lake. This concept is not currently feasible. As with user fees (described earlier) state law
would have to be changed to accommodate this funding concept.
Conservancy District
The establishment of a Conservancy District within the Indian Lake Watershed would create a
sub-unit of state government with the authority to levy taxes to support goals set forth in a
conservancy district plan. The advantage of this option lies in the security of funding. The
formation of a conservancy district requires a petition signed by: 500 property owners, a
majority of property owners, the owners of more than half of the property in acreage or value,
or the governing body of any political subdivision or watershed district.
Indian Lake Automobile License Plates
A special license plate has been suggested, much like the scenic rivers or Lake Erie plates.
These could be created and offered to Ohioans, the revenue from which could supplement the
project budget. Unfortunately, as of May 10, 1996, the Ohio Bureau of Motor Vehicles, Division
of Special Plates is not accepting applications for new special plates.
Area Sales Tax
Some respondents to surveys suggested a watershed area sales tax to generate funding. The
Indian Lake Watershed Project does not have authority to mandate any taxes. The development of
this option would require the cooperation of each municipality within the watershed. Further
study is required regarding this option; however, it is believed the feasibility of implementing
this option is very low.
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