Natimuk resident Kerry Walker has proposed a resolution to an ongoing impasse with the state government over who manages improvements at the lake.
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It comes as other residents have begun crowdfunding for upgrades to the lake, after DELWP asked the Otto Spehr Trust to consider giving money to Parks Victoria instead of the Natimuk Lake Foreshore Committee. DELWP handed management of the lake reserve to Parks in 2003.
A DELWP spokeswoman told the Mail-Times it has written to trustees, saying "it may be appropriate for the trustees to consider the allocation of trust proceeds to Parks Victoria as the manager of the lake".
The committee uses interest from the trust - set up in 1960 by resident Otto Spehr for Natimuk Lake's beautification - to help finance upgrades at the lake.
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Committee chair Brenda Strudwick said: "We have started a Go Fund Me campaign under the auspice of Friends of Natimuk Lake... and perhaps this group could become the future beneficiary of the trust."
Ms Walker said under section 14 of the Crown Land Reserves Act (1978), the minister could appoint any board or trust established under an act. The committee was established under the Charities Act (1978).
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"Because we existed before they incorporated us in 1999, we weren't established under their act in our entirety," she said.
"Unless they are saying they have given the right of management of Parks to look after the lake and they can do nothing else - which isn't what they're saying because Parks has to look after lots of national parks: The lake is an added responsibility of theirs.
"It is also an added responsibility for our committee. DELWP didn't make us, and the act acknowledges a committee can already have existed. It means we can serve DELWP in looking after the foreshore and serve the trust in having an interest in the Lake too."
Ms Walker said the NLFC was an advisory group to the trustees.
"They have a fiduciary duty to ensure that the funds are spent or dispersed consistent with the will and testament of Otto Spehr. We advise them about what projects we think the money should be used for, and they approve or reject that."
Several former members of the committee have recently been locking horns with DELWP and Parks Victoria, claiming they had their applications for re-election rejected based on the committee's work to build a weir on Lake Natimuk.
DELWP has said members went outside the committee's area of jurisdiction - the foreshore reserve - in starting construction on the weir, which the members deny.
The foreshore reserve, outside of which DELWP says the NLFC has no power to undertake projects.
Funding sought to complete weir
Ms Strudwick also expressed concerns Parks had no money to complete the project.
A Parks Victoria spokesman said given these works were not part of a Parks project, they have never had any Parks funding allocated to them, and that this remained the case.
"If funding is available, we have confirmed the project can be completed with a modified design that considers the potential environmental impacts of a new structure in the wetland system," he said.
"We'll continue to work with the Committee of Management, local government and other stakeholders to explore possible funding sources."