SB 2142                                    First Engrossed (ntc)
       
       
       
       
       
       
       
       
       20112142e1
       
    1                        A bill to be entitled                      
    2         An act relating to the water management districts;
    3         creating s. 373.502, F.S.; providing requirements with
    4         respect to revenues received by each water management
    5         district and the unexpended balances of a district’s
    6         local account; requiring that each district’s
    7         expenditure of funds be as provided in the General
    8         Appropriations Act; providing for a contingency if a
    9         court finds such restriction to be invalid; amending
   10         s. 373.503, F.S.; providing that the Legislature may
   11         annually set the amount of revenue a district may
   12         raise through its ad valorem tax authority;
   13         prohibiting a district from imposing ad valorem taxes
   14         if the Legislature does not set the amount of revenue;
   15         amending s. 373.536, F.S.; changing the districts’
   16         fiscal year; revising provisions relating to the
   17         development of district budgets and review by the
   18         Executive Office of the Governor and Legislature;
   19         requiring that each district make budget information
   20         available to the public through the district’s
   21         website; amending s. 403.891, F.S., relating to the
   22         Water Protection and Sustainability Program Trust
   23         Fund; conforming provisions to changes made by the
   24         act; amending ss. 373.026, 373.036, 373.707, and
   25         373.709, F.S.; conforming cross-references; specifying
   26         the district millage rate during those months that the
   27         districts are in transition to a new fiscal year and
   28         capping the amount of revenues that may be collected;
   29         providing that each district may expend funds until
   30         its final budget is approved; appropriating all prior
   31         year incurred obligations; providing for future
   32         expiration; providing an effective date.
   33  
   34  Be It Enacted by the Legislature of the State of Florida:
   35  
   36         Section 1. Section 373.502, Florida Statutes, is created to
   37  read:
   38         373.502District local account appropriations.—
   39         (1) Effective October 1, 2011, all revenues received by a
   40  water management district, and all unexpended balances in a
   41  district’s local accounts as of September 30, 2011, are
   42  considered deposited into the Water Protection and
   43  Sustainability Program Trust Fund and appropriated to the
   44  appropriate local account of the water management district based
   45  upon the original source of the revenues. Expenditure of these
   46  funds by a district must be in accordance with the laws, rules,
   47  grant agreements, or other legal controlling factors associated
   48  with all revenues appropriated to local accounts and included in
   49  the district’s budget. Each district is responsible for the
   50  payment of outstanding debts or obligations associated with
   51  these funds. Revenues received by each water management district
   52  shall be retained and used solely for each district’s authorized
   53  purposes.
   54         (2) Any appropriation provided in the General
   55  Appropriations Act from the Water Protection and Sustainability
   56  Program Trust Fund is the named district’s budget authority to
   57  expend revenues that are carried forward from the prior fiscal
   58  year and collected during the current fiscal year. The
   59  expenditure of funds from a district’s local accounts may not
   60  exceed the authority provided in the General Appropriations Act
   61  unless approved pursuant to chapter 216. If a court finds that
   62  this restriction is invalid, the moneys described in this
   63  section shall be deposited into the State Treasury.
   64         Section 2. Subsections (3), (4), and (5) of section
   65  373.503, Florida Statutes, are amended to read:
   66         373.503 Manner of taxation.—
   67         (3)(a) The districts may levy ad valorem taxes on property
   68  within the district solely for the purposes of this chapter and
   69  of chapter 25270, 1949, Laws of Florida, as amended, and chapter
   70  61-691, Laws of Florida, as amended. The authority to levy ad
   71  valorem taxes as provided in this act shall commence with the
   72  year 1977. However, the taxes levied for 1977 by the governing
   73  boards pursuant to this section shall be prorated to ensure that
   74  no such taxes will be levied for the first 4 days of the tax
   75  year, which days will fall prior to the effective date of the
   76  amendment to s. 9(b), Art. VII of the State Constitution, which
   77  was approved March 9, 1976. If When appropriate, taxes levied by
   78  each governing board may be separated by the governing board
   79  into a millage necessary for the purposes of the district and a
   80  millage necessary for financing basin functions specified in s.
   81  373.0695. Beginning with the taxing year 1977, and
   82         (a) Notwithstanding the provisions of any other general or
   83  special law to the contrary, and subject to subsection (4), the
   84  maximum total millage rate for district and basin purposes shall
   85  be:
   86         1. Northwest Florida Water Management District: 0.05 mill.
   87         2. Suwannee River Water Management District: 0.75 mill.
   88         3. St. Johns River Water Management District: 0.6 mill.
   89         4. Southwest Florida Water Management District: 1.0 mill.
   90         5. South Florida Water Management District: 0.80 mill.
   91         (b) The apportionment in the South Florida Water Management
   92  District shall be a maximum of 40 percent for district purposes
   93  and a maximum of 60 percent for basin purposes, respectively.
   94         (c) Within the Southwest Florida Water Management District,
   95  the maximum millage assessed for district purposes may shall not
   96  exceed 50 percent of the total authorized millage if when there
   97  are one or more basins in the district, and the maximum millage
   98  assessed for basin purposes may shall not exceed 50 percent of
   99  the total authorized millage.
  100         (4) To ensure that taxes authorized by this chapter
  101  continue to be in proportion to the benefits derived by the
  102  parcels of real estate within the districts, the Legislature
  103  shall annually review the authorized millage rate for each
  104  district and set the maximum amount of revenue to be raised by
  105  each district from the taxes levied. If the annual maximum
  106  amount of property tax revenue is not set by the Legislature on
  107  or before July 1 of each year, the district may not raise
  108  additional revenue through the levy of ad valorem taxes on
  109  property.
  110         (5)(4) It is hereby determined that the taxes authorized by
  111  this chapter are in proportion to the benefits to be derived by
  112  the several parcels of real estate within the districts to which
  113  territories are annexed and transferred. It is further
  114  determined that the cost of conducting elections within the
  115  respective districts or within the transferred or annexed
  116  territories, including costs incidental thereto in preparing for
  117  such election and in informing the electors of the issues
  118  therein, is a proper expenditure of the department, of the
  119  respective districts, and of the district to which such
  120  territory is or has been annexed or transferred.
  121         (6)(5) Each water management district created under this
  122  chapter which does not receive state shared revenues under part
  123  II of chapter 218 shall, before January 1 of each year, certify
  124  compliance or noncompliance with s. 200.065 to the Department of
  125  Financial Services. Specific grounds for noncompliance must
  126  shall be stated in the certification. In its annual report
  127  required by s. 218.32(2), the Department of Financial Services
  128  shall report to the Governor and the Legislature those water
  129  management districts certifying noncompliance or not reporting.
  130         Section 3. Section 373.536, Florida Statutes, is amended to
  131  read:
  132         (Substantial rewording of section. See
  133         s. 373.536, F.S., for present text.)
  134         373.536 Water management district budgets.
  135         (1)FISCAL YEAR.—Commencing July 1, 2012, the fiscal year
  136  of water management districts created under this chapter extends
  137  from July 1 of one year through June 30 of the following year.
  138         (2)BUDGET DEVELOPMENT; HEARINGS.—
  139         (a)On or before July 15 of each year, the budget officer
  140  of the water management district shall submit for consideration
  141  by the governing board of the district a proposed budget
  142  covering the district’s proposed operations and funding
  143  requirements for the next fiscal year.
  144         (b)In developing its proposed budget, each water
  145  management district may conduct such workshops and hearings as
  146  necessary.
  147         1.Unless alternative notice requirements are otherwise
  148  provided by law, notice of all budget hearings must be published
  149  in a newspaper of general paid circulation in each county in
  150  which the district lies at least 5 days but not more than 15
  151  days before the hearing.
  152         2.Budget workshops conducted for the public must be
  153  advertised in a newspaper of general paid circulation in the
  154  community or area in which the workshop will occur at least 5
  155  days but not more than 15 days before the workshop.
  156         3.The hearing for adoption of a budget to be included in
  157  the legislative budget request submitted pursuant to paragraph
  158  (4)(a) must be by and before the governing board of the district
  159  and may be continued from day to day until terminated by the
  160  board.
  161         (3)BUDGET CONTENTS AND REVIEW.—
  162         (a)The Executive Office of the Governor and the water
  163  management districts shall develop a process to facilitate
  164  review and communication regarding district budgets, as
  165  necessary. The office shall analyze each budget as to the
  166  adequacy of fiscal resources available to the district and the
  167  adequacy of district expenditures related to water supply,
  168  including water resource and water supply development projects
  169  identified in the district’s regional water supply plans; water
  170  quality; flood protection and floodplain management; and natural
  171  systems. The analysis must compare proposed expenditures among
  172  districts and be based on the particular needs within each water
  173  management district in these four areas of responsibility.
  174         (b)The budget must set forth the proposed expenditures of
  175  the water management district, to which may be added an amount
  176  to be held in reserve. At a minimum, 25 percent of the property
  177  taxes levied in support of the budget must be held in reserve
  178  for the following fiscal year. The budget must include, but is
  179  not limited to, the following information for the preceding
  180  fiscal year and the current fiscal year, and the proposed
  181  amounts for the upcoming fiscal year, in a standard format
  182  prescribed by the Executive Office of the Governor:
  183         1.The estimated amount of funds remaining at the beginning
  184  of the fiscal year which has been obligated for the payment of
  185  outstanding commitments not yet completed.
  186         2.The estimated amount of unobligated funds or net cash
  187  balance on hand at the beginning of the fiscal year, and the
  188  estimated amount of funds to be raised by district taxes or
  189  received from other sources to meet the requirements of the
  190  district.
  191         3.The salaries and benefits, expenses, operating capital
  192  outlay, number of authorized positions, other personnel
  193  services, and other applicable categories listed in s. 216.011
  194  for the following program areas of the district:
  195         a.Water resource planning and monitoring;
  196         b.Land acquisition, restoration, and public works;
  197         c.Operation and maintenance of works and lands;
  198         d.Regulation;
  199         e.Outreach, including a full description and accounting of
  200  expenditures for water resources education; public information
  201  and public relations, including public service announcements and
  202  advertising in any media; and lobbying activities related to
  203  local, regional, state, and federal governmental affairs,
  204  whether incurred by district staff or through contractual
  205  services; and
  206         f.Management and administration.
  207  
  208  In addition to the program areas reported by all water
  209  management districts, the South Florida Water Management
  210  District shall include in its budget document separate sections
  211  on all costs associated with the Everglades Construction Project
  212  and the Comprehensive Everglades Restoration Plan.
  213         4.The total estimated amount in the district budget for
  214  each area of responsibility listed in subparagraph 3., and for
  215  water resource and water supply development projects identified
  216  in the district’s regional water supply plans.
  217         5.A description of each new, expanded, reduced, or
  218  eliminated program.
  219         6.All revenue sources, including ad valorem taxes, Surface
  220  Water Improvement and Management Program funds, other state
  221  funds, federal funds, and user fees and permit fees for each
  222  program area.
  223         (c)The Executive Office of the Governor shall annually
  224  file with the Legislature a report that summarizes its review of
  225  the water management districts’ recommended budgets and displays
  226  the budget allocations by program area. The report must identify
  227  districts that are not in compliance with the reporting
  228  requirements of this section. State funds shall be withheld from
  229  a district that fails to comply with such reporting
  230  requirements.
  231         (4)BUDGET SUBMITTAL.Commencing in 2011, for the 2012-2013
  232  fiscal year and each fiscal year thereafter:
  233         (a)By October 15 of each year, the department shall
  234  include in its legislative budget request to the Governor and
  235  Legislature the complete legislative budget request for each
  236  water management district consistent with this section and s.
  237  216.023.
  238         (b)The Governor shall include his or her recommendations
  239  for each water management district budget, together with the
  240  analysis performed pursuant to paragraph (3)(a) and the report
  241  prepared pursuant to paragraph (3)(c), in the recommended budget
  242  furnished to the Legislature pursuant to s. 216.162.
  243         (5)BUDGET APPROVAL; FINANCIAL INFORMATION.
  244         (a)Each water management district’s budget shall be the
  245  budget approved by the Legislature annually in the General
  246  Appropriations Act, as may be amended pursuant to this section.
  247         (b)By September 1, 2011, each water management district
  248  shall post on its website for public access the monthly
  249  financial statement that is currently provided to its governing
  250  board. By July 1, 2012, each district shall also post on its
  251  website, in a manner specified by the Chief Financial Officer,
  252  the district’s budgets, revenues, salaries and benefits,
  253  expenses, operating capital outlay, number of authorized
  254  positions, other personnel services, and other applicable
  255  categories listed in s. 216.011.
  256         (c) For each fiscal year beginning on or after July 1,
  257  2012, each water management district shall maintain its
  258  financial data in a manner that is consistent with applicable
  259  common financial data management codes for local governments
  260  adopted by the Chief Financial Officer and in effect on January
  261  1, 2012. For each fiscal year beginning on or after July 1,
  262  2013, the districts shall submit monthly detailed financial
  263  reports to the Department of Financial Services in a manner
  264  specified by the Chief Financial Officer.
  265         (6)DETERMINATION OF MILLAGE; ADOPTION OF BUDGET.—
  266         (a)The final budget and millage rate shall be adopted in
  267  accordance with s. 200.065. For purposes of complying with that
  268  section, the budget set forth in the General Appropriations Act
  269  shall be considered the tentative budget under s. 200.065(2) and
  270  the amended tentative budget adopted under s. 200.065(2)(c).
  271         (b)If the mailing of the notice of proposed property taxes
  272  is delayed beyond September 3 in any county in which the water
  273  management district lies, the district shall advertise its
  274  intention to adopt a tentative budget and millage rate, pursuant
  275  to s. 200.065(3)(g), in a newspaper of general paid circulation
  276  in that county.
  277         (c)As provided in s. 200.065(2)(d), the board shall
  278  publish one or more notices of its intention to adopt a final
  279  budget for the district for the next fiscal year. The notice
  280  shall appear adjacent to an advertisement that sets forth the
  281  tentative budget in a format meeting the budget summary
  282  requirements of s. 129.03(3)(b). The notice and advertisement
  283  must be published in one or more newspapers having a combined
  284  general paid circulation in each county in which the district
  285  lies. Districts may include explanatory phrases and examples in
  286  the budget advertisements to clarify or illustrate the effect
  287  that the district budget may have on ad valorem taxes.
  288         (d)The hearing for adoption of a final budget and millage
  289  rate shall be by and before the governing board of the water
  290  management district as provided in s. 200.065 and may be
  291  continued from day to day until terminated by the board.
  292         (e) If the final millage rate adopted by the board is lower
  293  than the proposed millage rate, any changes to the budget
  294  necessitated by the adoption of the lower millage are subject to
  295  review and approval pursuant to ss. 216.181 and 216.292.
  296         (f)Notwithstanding any other provision of law, a water
  297  management district may expend funds based on its legislatively
  298  approved budget until its final budget is adopted pursuant to s.
  299  200.065(2)(d).
  300         (7)BUDGET CONTROLS.—
  301         (a)The final budget for the district as adopted pursuant
  302  to this section, is the operating and fiscal guide for the water
  303  management district for the next year. However, transfers of
  304  funds may be made within the budget, following review and
  305  approval pursuant to ss. 216.181 and 216.292, by action of the
  306  district’s governing board at a public meeting of the governing
  307  board.
  308         (b) Lump-sum salary bonuses may be provided only if
  309  specifically appropriated or provided pursuant to s. 110.1245 or
  310  s. 216.1815.
  311         (c)The water management district shall control its budget,
  312  at a minimum, by fund and provide a description of its budget
  313  control mechanisms, in conjunction with the legislative budget
  314  request furnished to the Governor and Legislature pursuant to
  315  subsection (4), for approval.
  316         (d)If the water management district receives unanticipated
  317  funds after the adoption of the final budget, the final budget
  318  may be amended, following review and approval pursuant to ss.
  319  216.181 and 216.292, to include such funds if notice of the
  320  amendment is published in the notice of the governing board
  321  meeting at which the amendment will be considered, pursuant to
  322  s. 120.525. The notice must set forth a summary of the proposed
  323  amendment. However, in the event of a disaster or of an
  324  emergency arising to prevent or avert a disaster, the governing
  325  board is not limited by the budget but may apply such funds as
  326  may be available or as may be procured for such purpose. In such
  327  an event, the governing board shall notify the Executive Office
  328  of the Governor and the Legislative Budget Commission as soon as
  329  practical, but within 30 days after the governing board’s
  330  action.
  331         (8)FINAL BUDGET; ANNUAL AUDIT; CAPITAL IMPROVEMENTS PLAN;
  332  WATER RESOURCE DEVELOPMENT WORK PROGRAM.—
  333         (a)Each water management district must, by the date
  334  specified for each item, furnish copies of the following
  335  documents to the Governor, the President of the Senate, the
  336  Speaker of the House of Representatives, the chairs of all
  337  legislative committees and subcommittees having substantive or
  338  fiscal jurisdiction over the districts, the secretary of the
  339  department, and the governing board of each county in which the
  340  district has jurisdiction or derives any funds for the
  341  operations of the district:
  342         1.The adopted budget to be furnished within 10 days after
  343  its adoption.
  344         2.A financial audit of its accounts and records, to be
  345  furnished within 10 days after its acceptance by the governing
  346  board. The audit must be conducted in accordance with s. 11.45
  347  and the rules adopted thereunder. The district must also provide
  348  a copy of the audit to the Auditor General within 10 days after
  349  its acceptance by the governing board.
  350         3.A 5-year capital improvements plan, to be included in
  351  the consolidated annual report required by s. 373.036(7). The
  352  plan must include expected sources of revenue for planned
  353  improvements and be prepared in a manner comparable to the fixed
  354  capital outlay format set forth in s. 216.043.
  355         4.A 5-year water resource development work program, as
  356  described in paragraph (b), to be furnished within 30 days after
  357  the adoption of the final budget. The program must describe the
  358  district’s implementation strategy for the water resource
  359  development component of each approved regional water supply
  360  plan developed or revised under s. 373.709.
  361         (b) The 5-year water resource development work program
  362  furnished pursuant to subparagraph (a)4. must address all the
  363  elements of the water resource development component in the
  364  district’s approved regional water supply plans, including
  365  information about the relationship between the water resources
  366  development component and funding for alternative water supply
  367  projects, and must identify which projects in the work program
  368  will provide water, explain how each water resource development
  369  or water supply project will produce additional water available
  370  for consumptive uses, estimate the quantity of water to be
  371  produced by each project, and provide an assessment of the
  372  contribution of the district’s regional water supply plans in
  373  providing sufficient water to meet the water supply needs of
  374  existing and future reasonable-beneficial uses for a 1-in-10
  375  year drought event.
  376         1. Within 30 days after submittal, the department shall
  377  review the proposed work program and submit its findings,
  378  questions, and comments to the district. The review must include
  379  a written evaluation of the program’s consistency with
  380  furthering the district’s approved regional water supply plans,
  381  and the adequacy of proposed expenditures. As part of the
  382  review, the department shall give interested parties the
  383  opportunity to provide written comments on each district’s
  384  proposed work program.
  385         2. Within 45 days after receipt of the department’s
  386  evaluation, the governing board shall state in writing to the
  387  department which changes recommended in the evaluation it will
  388  incorporate into its work program submitted as part of the March
  389  1 consolidated annual report required by s. 373.036(7), or
  390  specify the reasons for not incorporating the changes.
  391         3. The department shall include the district’s responses in
  392  a final evaluation report and submit a copy of the report to the
  393  Governor and the Legislature.
  394         (c)If any entity listed in paragraph (a) provides written
  395  comments to the district regarding any document furnished under
  396  this subsection, the district must respond to the comments in
  397  writing and furnish copies of the comments and written responses
  398  to the other entities.
  399         Section 4. Subsection (1) of section 403.891, Florida
  400  Statutes, is amended to read:
  401         403.891 Water Protection and Sustainability Program Trust
  402  Fund of the Department of Environmental Protection.—
  403         (1) The Water Protection and Sustainability Program Trust
  404  Fund is created within the Department of Environmental
  405  Protection. The purpose of the trust fund is to implement the
  406  Water Sustainability and Protection Program created in s.
  407  403.890 and the provisions of s. 373.502.
  408         Section 5. Paragraph (d) of subsection (8) of section
  409  373.026, Florida Statutes, is amended to read:
  410         373.026 General powers and duties of the department.—The
  411  department, or its successor agency, shall be responsible for
  412  the administration of this chapter at the state level. However,
  413  it is the policy of the state that, to the greatest extent
  414  possible, the department may enter into interagency or
  415  interlocal agreements with any other state agency, any water
  416  management district, or any local government conducting programs
  417  related to or materially affecting the water resources of the
  418  state. All such agreements shall be subject to the provisions of
  419  s. 373.046. In addition to its other powers and duties, the
  420  department shall, to the greatest extent possible:
  421         (8)
  422         (d) The Executive Office of the Governor, pursuant to its
  423  duties under s. 373.536(5) to approve or disapprove, in whole or
  424  in part, the budget of each water management district, shall
  425  review all proposed expenditures for project components in the
  426  district’s budget.
  427         Section 6. Paragraph (b) of subsection (7) of section
  428  373.036, Florida Statutes, is amended to read:
  429         373.036 Florida water plan; district water management
  430  plans.—
  431         (7) CONSOLIDATED WATER MANAGEMENT DISTRICT ANNUAL REPORT.—
  432         (b) The consolidated annual report shall contain the
  433  following elements, as appropriate to that water management
  434  district:
  435         1. A district water management plan annual report or the
  436  annual work plan report allowed in subparagraph (2)(e)4.
  437         2. The department-approved minimum flows and levels annual
  438  priority list and schedule required by s. 373.042(2).
  439         3. The annual 5-year capital improvements plan required by
  440  s. 373.536(8)(a)3. 373.536(6)(a)3.
  441         4. The alternative water supplies annual report required by
  442  s. 373.707(8)(n).
  443         5. The final annual 5-year water resource development work
  444  program required by s. 373.536(8)(a)4. 373.536(6)(a)4.
  445         6. The Florida Forever Water Management District Work Plan
  446  annual report required by s. 373.199(7).
  447         7. The mitigation donation annual report required by s.
  448  373.414(1)(b)2.
  449         Section 7. Paragraph (a) of subsection (6) of section
  450  373.707, Florida Statutes, is amended to read:
  451         373.707 Alternative water supply development.—
  452         (6)(a) The statewide funds provided pursuant to the Water
  453  Protection and Sustainability Program serve to supplement
  454  existing water management district or basin board funding for
  455  alternative water supply development assistance and should not
  456  result in a reduction of such funding. Therefore, the water
  457  management districts shall include in the annual tentative and
  458  adopted budget submittals required under this chapter the amount
  459  of funds allocated for water resource development which that
  460  supports alternative water supply development and the funds
  461  allocated for alternative water supply projects selected for
  462  inclusion in the Water Protection and Sustainability Program. It
  463  shall be The goal of each water management district and basin
  464  boards is for that the combined funds allocated annually for
  465  these purposes to be, at a minimum, the equivalent of 100
  466  percent of the state funding provided to the water management
  467  district for alternative water supply development. If this goal
  468  is not achieved, the water management district shall provide in
  469  the budget submittal an explanation of the reasons or
  470  constraints that prevent this goal from being met, an
  471  explanation of how the goal will be met in future years, and
  472  affirmation of the match is required during the budget review
  473  process as established under s. 373.536(5). The Suwannee River
  474  Water Management District and the Northwest Florida Water
  475  Management District are shall not be required to meet the match
  476  requirements of this paragraph; however, they shall try to
  477  achieve the match requirement to the greatest extent
  478  practicable.
  479         Section 8. Subsection (6) of section 373.709, Florida
  480  Statutes, is amended to read:
  481         373.709 Regional water supply planning.—
  482         (6) Annually and in conjunction with the reporting
  483  requirements of s. 373.536(8)(a)4. 373.536(6)(a)4., the
  484  department shall submit to the Governor and the Legislature a
  485  report on the status of regional water supply planning in each
  486  district. The report must shall include:
  487         (a) A compilation of the estimated costs of and potential
  488  sources of funding for water resource development and water
  489  supply development projects as identified in the water
  490  management district regional water supply plans.
  491         (b) The percentage and amount, by district, of district ad
  492  valorem tax revenues or other district funds made available to
  493  develop alternative water supplies.
  494         (c) A description of each district’s progress toward
  495  achieving its water resource development objectives, including
  496  the district’s implementation of its 5-year water resource
  497  development work program.
  498         (d) An assessment of the specific progress being made to
  499  implement each alternative water supply project option chosen by
  500  the entities and identified for implementation in the plan.
  501         (e) An overall assessment of the progress being made to
  502  develop water supply in each district, including, but not
  503  limited to, an explanation of how each project, either
  504  alternative or traditional, will produce, contribute to, or
  505  account for additional water being made available for
  506  consumptive uses, an estimate of the quantity of water to be
  507  produced by each project, and an assessment of the contribution
  508  of the district’s regional water supply plan in providing
  509  sufficient water to meet the needs of existing and future
  510  reasonable-beneficial uses for a 1-in-10-year drought event, as
  511  well as the needs of the natural systems.
  512         Section 9. (1) In order for water management districts
  513  created under chapter 373, Florida Statutes, to implement the
  514  transition to a fiscal year beginning on July 1 and ending on
  515  June 30, as provided in s. 373.536, Florida Statutes, as amended
  516  by this act, the fiscal year for each water management district
  517  beginning on October 1, 2011, will end on June 30, 2012. Each
  518  water management district must adopt its final budget and
  519  millage rate for the October 1, 2011, to June 30, 2012, fiscal
  520  year pursuant to s. 373.536(6), Florida Statutes. To ensure that
  521  there are sufficient funds for a seamless transition to a new
  522  fiscal year, the district board may adopt a millage rate that is
  523  33.33 percent higher than the millage rate needed to fund the
  524  October 1, 2011, to June 30, 2012, fiscal year. However, the
  525  total ad valorem taxes levied may not exceed $3,946,969 for the
  526  Northwest Florida Water Management District, $5,412,674 for the
  527  Suwannee River Water Management District, $85,335,619 for the
  528  St. Johns Water Management District, $107,766,957 for the
  529  Southwest Florida Water Management District, and $284,901,967
  530  for the South Florida Water Management District. Twenty-five
  531  percent of the revenues received from the adoption of the
  532  millage rate shall be placed in a reserve to be spent in the
  533  fiscal year beginning on July 1, 2012.
  534         (2) Notwithstanding any other provision of law, a water
  535  management district may spend funds based on its legislatively
  536  approved budget until its final budget is adopted pursuant to s.
  537  200.065(2)(d), Florida Statutes.
  538         (3) All prior year incurred obligations are hereby
  539  appropriated. As used in this subsection, the term incurred
  540  obligation” means a legal obligation for goods or services that
  541  have been contracted for.
  542         (4) This section expires July 1, 2012.
  543         Section 10. This act shall take effect upon becoming a law.