Real-World Financial Concerns: Carman Bay Case Study
One of the biggest concerns with forming a Lake Improvement District (LID) is the long-term financial burden it can place on property owners. A real-world example of this can be seen in Carman Bay’s LID.
Assessment Increases Over Time
In Carman Bay, the special property tax assessments have steadily increased each year:
- 2022: $11,024 collected from property owners
- 2023: $28,139 collected from property owners
- 2024: $33,600 collected from property owners
This represents a 205% increase over just two years. These are mandatory taxes levied on lakeshore property owners—regardless of whether they support the spending.
Surplus Funds Still Result in New Taxes
Despite already having $69,280 in reserve, the Carman Bay LID still collected over $33,000 more from residents in 2024. Their total balance at year-end exceeded $100,000.
This demonstrates that even when sufficient funds exist, assessments can continue—and grow—without additional community input.
👉 Read the report on the City of Orono’s website
Why This Matters for Harrisons Bay
Once formed, a LID has the legal authority to impose recurring taxes. As shown in Carman Bay, these assessments may increase year after year, regardless of actual need or usage. This is a long-term commitment with no guarantee of cost control.
“If it happened in Carman Bay, it can happen here.”
Understanding these financial risks is key to making an informed decision before approving a permanent LID for Harrisons Bay.