The Dayton Town Board established the Little Hope Lake District when it met Tuesday night.
In response to Saturday's public hearing, about 100 homes were removed from the district.
Town Chairman Chris Klein said about 40 of the parcels removed from the revised boundaries belonged to property owners who had objected to the formation of the lake district or asked to be excluded from it.
The lake district's boundaries, as approved Tuesday, no longer includes the Red Mill Estates or Lake Solitude subdivisions..
The district's southern border was shifted to the north, removing homes along Miracle Mountain Way and the landfill.
Klein said the owners of nine parcels had asked to be excluded, but they remained in the district because they were not contiguous to the border.
"Removing a parcel in the middle of the district would cause a swiss cheese effect," Klein said.
Dayton's three town board members will be the initial lake district commissioners.
At the first annual meeting of lake district,
Residents and property owners within the district will elect three commissioners to serve staggered terms of one to three years The election of at least one commissioner will be held at the annual meeting each year.
At the annual meetings, lake district members will also vote on the organization's budget and tax levy. Lake district levies are capped at a rate of $2.50 per $1,000 of equalized value. This cap applies only to operating costs, It odes not apply to taxes levied to pay for debt.
State law requires that lake districts hold annual meetings between May 22 and Sept. 8.
Supervisor Bruce Goldling said he plans to donate 10 percent of the costs to start the district. He asked others who live in the area, but are not within the district, to consider donating to the district.
"Whether you like it or not, the mill pond is part of our heritage," Golding said.
In related business Tuesday, the board voted to issue an emergency order to close the mill pond to public access.
"There are a lot of areas where it's wet mud because of the springs feeding into it," Klein said regarding the drained mill pond.
Klein also noted that the area around the dam had become hazardous.
The town plans to post warning signs at public access points around the mill pond.
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