House Bill 2405

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    Florida House of Representatives - 2000                HB 2405

        By the Committee on Community Affairs and Representative
    Gay





  1                      A bill to be entitled

  2         An act relating to municipal annexation;

  3         creating s. 171.093, F.S.; providing for the

  4         assumption of an independent special district's

  5         service responsibilities in an area that is

  6         within the district's boundaries and that is

  7         annexed by a municipality; providing that the

  8         municipality may elect to assume such

  9         responsibilities; providing for an interlocal

10         agreement regarding the transfer of such

11         responsibilities; providing for the provision

12         of services and payment therefor during a

13         specified period if the municipality and

14         district are unable to enter into an interlocal

15         agreement; specifying effect of a

16         municipality's election not to assume such

17         responsibilities; providing for contraction of

18         the district's boundaries if the municipality

19         elects to assume such responsibilities;

20         providing for levy of ad valorem taxes and

21         assessments, user charges, and impact fees;

22         providing exceptions; providing an effective

23         date.

24

25  Be It Enacted by the Legislature of the State of Florida:

26

27         Section 1.  Section 171.093, Florida Statutes, is

28  created to read:

29         171.093  Municipal annexation within independent

30  special districts.--

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    Florida House of Representatives - 2000                HB 2405

    171-632A-00






  1         (1)  The purpose of this section is to provide an

  2  orderly transition of special district service

  3  responsibilities in an annexed area from an independent

  4  special district which levies ad valorem taxes to a

  5  municipality following the municipality's annexation of

  6  property located within the jurisdictional boundaries of an

  7  independent special district, if the municipality elects to

  8  assume such responsibilities.

  9         (2)  The municipality may make such an election by

10  adopting a resolution evidencing the election and forwarding

11  the resolution to the office of the special district and the

12  property appraiser and tax collector of the county in which

13  the annexed property is located. In addition, the municipality

14  may incorporate its election into the annexation ordinance.

15         (3)  Upon a municipality's election to assume the

16  district's responsibilities, the municipality and the district

17  may enter into an interlocal agreement addressing the orderly

18  transfer of service responsibilities, real assets, equipment,

19  and personnel to the municipality. The agreement shall address

20  allocation of responsibility for special district services,

21  avoidance of double taxation of property owners for such

22  services in the area of overlapping jurisdiction, prevention

23  of loss of any district revenues which may be detrimental to

24  the continued operations of the independent district,

25  avoidance of impairment of existing district contracts,

26  disposition of property and equipment of the independent

27  district and any assumption of indebtedness for it, the status

28  and employee rights of any adversely affected employees of the

29  independent district, and any other matter reasonably related

30  to the transfer of responsibilities.

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    Florida House of Representatives - 2000                HB 2405

    171-632A-00






  1         (4)(a)  If the municipality and the district are unable

  2  to enter into an interlocal agreement pursuant to subsection

  3  (3), the municipality shall so advise the district and the

  4  property appraiser and tax collector of the county in which

  5  the annexed property is located and, effective October 1 of

  6  the calendar year immediately following the calendar year in

  7  which the municipality declares its intent to assume service

  8  responsibilities in the annexed area, the district shall

  9  remain the service provider in the annexed area for a period

10  of 4 years. During the 4-year period, the municipality shall

11  pay the district an amount equal to the ad valorem taxes or

12  assessments that would have been collected had the property

13  remained in the district.

14         (b)  By the end of the 4-year period, or any extension

15  mutually agreed upon by the district the municipality, the

16  municipality and the district shall enter into an agreement

17  that identifies the existing district property located in the

18  municipality or primarily serving the municipality that will

19  be assumed by the municipality, the fair market value of such

20  property, and the manner of transfer of such property and any

21  associated indebtedness. If the municipality and district are

22  unable to agree to an equitable distribution of the district's

23  property and indebtedness, the matter shall proceed to circuit

24  court. In equitably distributing the district's property and

25  associated indebtedness, the taxes and other revenues paid the

26  district by or on behalf of the residents of the annexed area

27  shall be taken into consideration.

28         (c)  During the 4-year period, or during any mutually

29  agreed upon extension, district service and capital

30  expenditures within the annexed area shall continue to be

31  rationally related to the annexed area's service needs.

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    Florida House of Representatives - 2000                HB 2405

    171-632A-00






  1  Service and capital expenditures within the annexed area shall

  2  also continue to be rationally related to the percentage of

  3  district revenue received on behalf of the residents of the

  4  annexed area when compared to the district's total revenue. A

  5  capital expenditure greater than $25,000 shall not be made by

  6  the district for use primarily within the annexed area without

  7  the express consent of the municipality.

  8         (5)  If the municipality elects not to assume the

  9  district's responsibilities, the district shall remain the

10  service provider in the annexed area, the geographical

11  boundaries of the district shall continue to include the

12  annexed area, and the district may continue to levy ad valorem

13  taxes and assessments on the real property located within the

14  annexed area. If the municipality elects to assume the

15  district's responsibilities in accordance with subsection (3),

16  the district's boundaries shall contract to exclude the

17  annexed area at the time and in the manner provided in the

18  agreement.

19         (6)  If the municipality elects to assume the

20  district's responsibilities and the municipality and the

21  district are unable to enter into an interlocal agreement, and

22  the district continues to remain the service provider in the

23  annexed area in accordance with subsection (4), the

24  geographical boundaries of the district shall contract to

25  exclude the annexed area on the effective date of the

26  beginning of the 4-year period provided for in subsection (4).

27  Nothing in this section precludes the contraction of the

28  boundary of any independent special district by special act of

29  the Legislature. The district shall not levy ad valorem taxes

30  or assessments on the annexed property in the calendar year in

31  which its boundaries contract and subsequent years, but it may

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    Florida House of Representatives - 2000                HB 2405

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  1  continue to collect and use all ad valorem taxes and

  2  assessments levied in prior years. Nothing in this section

  3  prohibits the district from assessing user charges and impact

  4  fees within the annexed area while it remains the service

  5  provider.

  6         (7)  In addition to any other authority provided by

  7  law, a municipality is authorized to levy assessments on

  8  property located in an annexed area to offset all or a portion

  9  of the costs incurred by the municipality in assuming district

10  responsibilities pursuant to this section. Such assessments

11  may be collected pursuant to and in accordance with applicable

12  law.

13         (8)  This section does not apply to districts created

14  pursuant to chapter 190 or chapter 373.

15         Section 2.  This act shall take effect upon becoming a

16  law.

17

18            *****************************************

19                          HOUSE SUMMARY

20
      Provides for the assumption of an independent special
21    district's service responsibilities in an area that is
      within the district's boundaries and that is annexed by a
22    municipality. Provides that the municipality may elect to
      assume such responsibilities. Provides for an interlocal
23    agreement regarding the transfer of such
      responsibilities. Provides for the provision of services
24    and payment therefor during a specified period if the
      municipality and district are unable to enter into an
25    interlocal agreement. Specifies effect of a
      municipality's election not to assume such
26    responsibilities. Provides for contraction of the
      district's boundaries if the municipality elects to
27    assume such responsibilities. Provides for levy of ad
      valorem taxes and assessments, user charges, and impact
28    fees.

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