During the past year, Lakehead Conservation budget expenditures were about $700,000 for the following services: administration of our flood and erosion control programs; flood forecasting and warning; plan input and review; watershed planning; operation and development of our Conservation Areas and associated lands; Hazelwood Lake Centre; and community relations.

1997 marked the start of no provincial transfer payment nor municipal levy for our recreation and conservation area land management program. This reduction in funds has been secured through: streamlining operations; self-generation (i.e., fee for service initiatives, etc.); user-fees (i.e., coin collection boxes at six conservation areas); Adopt-an-Acre program (i.e., donations from citizens); Lakehead Conservation Foundation fundraising; rental revenues at Hazelwood Lake Centre; and "in-kind" contributions from our watershed citizens, clubs, businesses and agencies.

As an example, Ontario Hydro donated two pole-mounted lights for the Mission Island Marsh Conservation Area parking lot. The lights are powered by photovoltaic cells and provide security lighting at the Area.

The Lakehead Conservation Foundation fulfilled their $100,000 campaign for the Hazelwood Lake Centre. Commencing in 1998, their next $100,000 campaign will focus on the Cascades Conservation Area in the Current River watershed.

Implementation of the forest management plans on our two agreement forest properties through a partnership agreement with Abitibi-Consolidated Inc. commenced in late fall. The harvesting operations will provide some revenue, access small but significant sustained wood volume and develop a better appreciation of sustainable forestry practices with our local residents.

Only four short-term positions were available for students in conservation area maintenance and resource management studies. Through participation in co-op placement programs, six students obtained practical experience in their field of studies while providing a quality product to the Authority.

Lakehead Conservation gratefully acknowledges the support, either monetary or "in-kind", for the recreation and conservation land management program from watershed residents, clubs, agencies, business, and the Lakehead Conservation Foundation, together with the traditional source of funds for our water management programs.