Florida Senate - 2012 (PROPOSED COMMITTEE BILL) SPB 7092
FOR CONSIDERATION By the Committee on Budget
576-03177A-12 20127092__
1 A bill to be entitled
2 An act relating to water management districts;
3 amending s. 373.503, F.S.; revising the maximum
4 millage rates that may be levied by each water
5 management district for district and basin purposes;
6 specifying the district and basin purposes; specifying
7 the maximum millage rate levied for district and basin
8 purposes used to fund the core areas of water supply
9 and water resource development projects, water
10 quality, flood protection and floodplain management,
11 and natural systems; directing the Legislature to
12 annually review each water management district’s
13 preliminary budget and set a maximum millage rate for
14 certain purposes; specifying the use of the revenues;
15 revising the review process for budgets of the water
16 management districts; prohibiting a district from
17 including in its budget or expending funds from any
18 source for certain programs and activities during the
19 next fiscal year under certain circumstances; removing
20 a provision requiring that the maximum property tax
21 revenue for water management districts revert to the
22 amount authorized for the prior year if the
23 Legislature does not set the amount; removing the
24 maximum revenues for the 2011-2012 fiscal year;
25 creating s. 373.535, F.S.; providing for the process,
26 manner, and timing by which water management districts
27 must submit a preliminary budget request to the
28 Legislature and the Governor; requiring the Executive
29 Office of the Governor and the appropriations
30 committees of the Legislature to jointly develop
31 preliminary budget instructions from which each water
32 management district shall prepare the budget requests;
33 providing criteria for the budget instructions;
34 prescribing information that the preliminary budget
35 must contain; requiring the Executive Office of the
36 Governor to analyze each preliminary budget as to the
37 adequacy of fiscal resources and certain expenditures;
38 requiring the Executive Office of the Governor to
39 provide to the Legislature by a certain time each
40 water management district’s preliminary budget,
41 together with the adequacy analysis; requiring that
42 the Legislature annually review and approve, limit, or
43 disapprove specified portions of the preliminary
44 budget for each water management district; requiring
45 that the Legislature, in appropriating funds for water
46 management districts, authorize a level of expenditure
47 for each approved program and activity; prohibiting a
48 water management district from expending any funds on
49 a program or activity not authorized by the
50 Legislature; authorizing the Legislature to review and
51 take action on other provisions of the preliminary
52 budget of each water management district; providing
53 that if the Legislature does not take action under
54 certain circumstances, provisions of the preliminary
55 budget are deemed approved; providing criteria;
56 requiring that the first funding obligation of a water
57 management district is payment of debt service for
58 bonds and certificates of participation, if
59 applicable; requiring a water management district to
60 receive prior approval from the Legislature before
61 incurring additional bonded indebtedness; providing
62 that the preliminary budget reviewed by the
63 Legislature is the basis for developing the tentative
64 budget of each water management district; limiting the
65 authority of a district to fund proposed expenditures
66 reviewed by the Legislature to the amount authorized
67 by the Legislature, the Governor, or the Legislative
68 Budget Commission; amending s. 373.536, F.S.;
69 requiring that budget amendments greater than a
70 certain amount be reviewed and approved by the
71 Executive Office of the Governor and that the
72 Executive Office of the Governor notify the
73 Legislative Budget Commission of the approval;
74 requiring that a water management district provide a
75 description of the budget control mechanisms to the
76 Executive Office of the Governor for approval;
77 providing that, upon providing notice to the
78 Legislative Budget Commission and subject to prior
79 review and approval by the Executive Office of the
80 Governor, a water management district may amend
81 unanticipated funds into its final budget; requiring
82 the Executive Office of the Governor and the
83 Legislative Budget Commission to be notified if the
84 governing board of a water management district expends
85 available funds for a disaster or emergency; requiring
86 that a water management district provide a monthly
87 financial statement to its governing board and make
88 such monthly financial statement available for public
89 access on its website; removing obsolete provisions
90 relating to review and approval by the Executive
91 Office of the Governor and the Legislative Budget
92 Commission of the tentative budget of a water
93 management district; providing for the approval or
94 disapproval of the tentative budget by the Executive
95 Office of the Governor; providing criteria for the
96 Legislative Budget Commission to use in disapproving
97 the tentative budget of a water management district;
98 prohibiting a water management district from acting on
99 a rejected provision without the approval of the
100 Executive Office of the Governor or the Legislative
101 Budget Commission; providing for the Chief Financial
102 Officer to withhold state funds from a district that
103 fails to obtain prior approval; requiring that the
104 tentative budget be based on certain criteria;
105 requiring the Executive Office of the Governor to
106 consult with the Legislature to develop a standard
107 format for the tentative budget; revising the
108 information required for the tentative budget;
109 revising the information required for the 5-year water
110 resource development work program; providing an
111 effective date.
112
113 Be It Enacted by the Legislature of the State of Florida:
114
115 Section 1. Subsections (3) and (4) of section 373.503,
116 Florida Statutes, are amended to read:
117 373.503 Manner of taxation.—
118 (3) The districts may levy ad valorem taxes on property
119 within the district solely for the purposes of this chapter and
120 of chapter 25270, 1949, Laws of Florida, as amended, and chapter
121 61-691, Laws of Florida, as amended. If appropriate, taxes
122 levied by each governing board may be separated by the governing
123 board into a millage necessary for the purposes of the district
124 and a millage necessary for financing basin functions specified
125 in s. 373.0695.
126 (a) Notwithstanding any other general or special law, and
127 subject to subsection (4), the maximum total millage rate for
128 district and basin purposes which may be used solely for the
129 purposes of funding the core water management district mission
130 areas of water supply, including alternative water supply and
131 the water resource development projects, water quality, flood
132 protection and floodplain management, and natural systems, shall
133 be:
134 1. Northwest Florida Water Management District: 0.04 0.05
135 mill.
136 2. Suwannee River Water Management District: 0.80 0.75
137 mill.
138 3. St. Johns River Water Management District: 0.80 0.6
139 mill.
140 4. Southwest Florida Water Management District: 0.80 1.0
141 mill.
142 5. South Florida Water Management District: 0.80 mill.
143 (b) As provided in s. 373.535 and subject to the limits
144 established by s. 9(b), Art. VII of the State Constitution, the
145 Legislature shall annually review the preliminary budget of each
146 water management district and shall separately set, in addition
147 to the rate set in paragraph (a), a maximum millage rate or
148 maximum revenue limit for each district which may be used to
149 fund regulation, outreach, management, and administration
150 programs and activities.
151 (c) The maximum authorized millage rates or revenue limits
152 separately established in paragraphs (a) and (b) shall be used
153 to fund only the core mission areas and programs and activities
154 specified those paragraphs. If the Legislature fails to set a
155 revenue limit or the maximum amount of millage that may be
156 levied for the programs and activities specified in paragraph
157 (b), a district may not include in its budget or expend funds
158 from any source for those programs and activities during the
159 next fiscal year.
160 (d)(b) The apportionment in the South Florida Water
161 Management District shall be a maximum of 40 percent for
162 district purposes and a maximum of 60 percent for basin
163 purposes, respectively.
164 (e)(c) Within the Southwest Florida Water Management
165 District, the maximum millage assessed for district purposes may
166 not exceed 50 percent of the total authorized millage if there
167 are one or more basins in the district, and the maximum millage
168 assessed for basin purposes may not exceed 50 percent of the
169 total authorized millage.
170 (4)(a) To ensure that taxes authorized by this chapter
171 continue to be in proportion to the benefits derived by the
172 parcels of real estate within the districts, the Legislature
173 shall annually review the preliminary budget for each district
174 for the next fiscal year as provided in s. 373.535 and the
175 authorized millage rate for each district. Based upon this
176 review, the Legislature shall set the authorized maximum millage
177 rate or the maximum amount of revenue to be raised by each
178 district in the next fiscal year from the taxes levied. Except
179 as provided in paragraph (b), if the annual maximum amount of
180 property tax revenue is not set by the Legislature on or before
181 July 1 of each year, the maximum property tax revenue that may
182 be raised reverts to the amount authorized in the prior year.
183 (b) For the 2011-2012 fiscal year, the total ad valorem
184 taxes levied may not exceed $3,946,969 for the Northwest Florida
185 Water Management District, $5,412,674 for the Suwannee River
186 Water Management District, $85,335,619 for the St. Johns Water
187 Management District, $107,766,957 for the Southwest Florida
188 Water Management District, and $284,901,967 for the South
189 Florida Water Management District.
190 Section 2. Section 373.535, Florida Statutes, is created to
191 read:
192 373.535 Preliminary district budget; development,
193 legislative review, and authority granted.—
194 (1) PRELIMINARY BUDGET DEVELOPMENT.—
195 (a) In preparation for the legislative budget review, each
196 water management district shall submit a preliminary budget
197 request to the Legislature and to the Governor in the form and
198 manner prescribed in the budget instructions and at such time as
199 specified by the Executive Office of the Governor based on the
200 district’s independent judgment of its needs. However, a water
201 management district may not submit its complete preliminary
202 budget request later than December 15 unless an alternative date
203 is agreed to be in the best interest of the state by the
204 Governor and the chairs of the legislative appropriations
205 committees.
206 (b) The Executive Office of the Governor and the
207 appropriations committees of the Legislature shall jointly
208 develop preliminary budget instructions for preparing the
209 exhibits and schedules that make up the budget from which each
210 district shall prepare their budget request. The preliminary
211 budget instructions must be transmitted to each district by
212 October 1 of each year, unless an alternative date is agreed to
213 be in the best interest of the state by the Governor and the
214 chairs of the legislative appropriations committees.
215 (c) The preliminary budget request must contain for each
216 program:
217 1. A section that clearly identifies and provides
218 justification for each proposed expenditure listed in s.
219 373.536(5)(d)4.d.-f. and that identifies the source of funds for
220 each expenditure.
221 2. A section that provides, by core mission area of
222 responsibility, justification for proposed expenditures and that
223 identifies the source of funds needed for activities related to
224 water supply, including alternative water supply and water
225 resource development projects identified in the district’s
226 regional water supply plans, water quality, flood protection and
227 floodplain management, and natural systems.
228 3. A section that reviews the adopted budget allocations by
229 program area and the performance metrics for the prior year.
230 (d) The Executive Office of the Governor shall analyze each
231 preliminary budget to determine the adequacy of fiscal resources
232 available to the district and the adequacy of proposed district
233 expenditures related to the core mission areas of responsibility
234 for water supply, including alternative water supply and water
235 resource development projects identified in the district’s
236 regional water supply plans, water quality, flood protection and
237 floodplain management, and natural systems. This analysis shall
238 be based on the particular needs within each water management
239 district in the core mission areas of responsibility. The water
240 supply analysis must specifically include a determination of the
241 adequacy of each district’s fiscal resources provided in the
242 district’s preliminary budget to meet appropriate progress
243 toward meeting the districtwide 20-year projected water supply
244 demands, including funding for alternative water supply
245 development and conservation projects.
246 (e) The Executive Office of the Governor shall provide the
247 preliminary budget for each water management district together
248 with the adequacy analysis specified in paragraph (d) to the
249 Legislature not later than 30 days before the start of each
250 legislative session.
251 (2) PRELIMINARY BUDGET; LEGISLATIVE REVIEW AND APPROVAL.—
252 (a)1. The Legislature must annually review and approve,
253 limit, or disapprove each portion of the preliminary budget for
254 each water management district for those items in s.
255 373.536(5)(d)4.d.-f. specific to regulation, outreach,
256 management, and administration programs and activities.
257 2. After the annual review, the Legislature shall
258 appropriate for each district funds for the proposed
259 expenditures, set a maximum amount of revenue that may be raised
260 to fund the programs and activities for those items in s.
261 373.536(5)(d)4.d.-f., or set the maximum millage rate that may
262 be levied to fund these programs and activities. The
263 appropriation, revenue limit, or millage rate authorized by the
264 Legislature for the programs and activities reviewed under this
265 paragraph may not exceed 20 percent of a district’s total
266 preliminary budget.
267 3. If the Legislature does not appropriate funds, set the
268 maximum amount of revenue, or set the maximum millage rate
269 pursuant to subparagraph 2., the water management district may
270 not include in its budget or expend funds from any source for
271 such programs and activities during the ensuing fiscal year.
272 (b) The Legislature may also review and take action on any
273 other aspect of the preliminary budget for each water management
274 district. If the Legislature does not take any action pursuant
275 to this paragraph, those portions of the preliminary budget of
276 the water management district are deemed approved.
277 (c) If applicable, the preliminary budget for each water
278 management district must specify that the district’s first
279 obligation for payment is the debt service on bonds and
280 certificates of participation. In addition, a water management
281 district must receive approval from the Legislature before it
282 may incur additional bond indebtedness.
283 (3) PRELIMINARY BUDGET; AUTHORITY GRANTED.—
284 (a) Each water management district shall use the
285 preliminary budget as reviewed, and as may be amended, by the
286 Legislature pursuant to this section and s. 373.503 as the basis
287 for developing the tentative budget for the next fiscal year as
288 provided in s. 373.536(5).
289 (b) The Legislature’s action pursuant to subsection (2),
290 the approval pursuant to paragraph (2)(b), or the action by the
291 Governor or Legislative Budget Commission pursuant to the
292 provisions of s. 373.536(4) and (5) constitutes the only
293 authority for a district to fund proposed expenditures for the
294 next fiscal year. A district may not include in its tentative
295 budget or expend any funds from any source for its programs and
296 activities during the next fiscal year without such
297 authorization.
298 Section 3. Subsections (4), (5), and (6) of section
299 373.536, Florida Statutes, are amended to read:
300 373.536 District budget and hearing thereon.—
301 (4) BUDGET CONTROLS; FINANCIAL INFORMATION.—
302 (a) The final adopted budget for the district is will
303 thereupon be the operating and fiscal guide for the district for
304 the ensuing year; however, transfers of funds may be made within
305 the budget by action of the governing board at a public meeting
306 of the governing board. Budget amendments greater than $1
307 million must be reviewed and approved by the Executive Office of
308 the Governor. The Executive Office of the Governor shall provide
309 to the Legislative Budget Commission notice of such approval.
310 (b) The district shall control its budget, at a minimum, by
311 funds and shall provide to the Executive Office of the Governor
312 for approval a description of its budget control mechanisms.
313 (c) If Should the district receives receive unanticipated
314 funds after the adoption of the final budget, the final budget
315 may be amended, following review and approval by the Executive
316 Office of the Governor, by including such funds, if so long as
317 notice of intention to amend is provided to the Legislative
318 Budget Commission and is published in the Notice of the
319 governing board meeting at which the amendment will be
320 considered, pursuant to s. 120.525. The notice shall set forth a
321 summary of the proposed amendment.
322 (d) However, In the event of a disaster or of an emergency
323 arising to prevent or avert the same, the governing board is
324 shall not be limited by the budget but may expend shall have
325 authority to apply such funds as may be available for the
326 disaster or emergency therefor or as may be procured for such
327 purpose. In such an event, the governing board shall notify the
328 Executive Office of the Governor and the Legislative Budget
329 Commission as soon as practical, but no later than 30 days after
330 the governing board’s action.
331 (e)(d) By September 1, 2012 2011, each water management
332 district shall provide a monthly financial statement in the form
333 and manner prescribed by the Department of Financial Services to
334 the district’s its governing board and make such monthly
335 financial statement available for public access on its website.
336 (5) TENTATIVE BUDGET CONTENTS AND SUBMISSION; REVIEW AND
337 APPROVAL.—
338 (a) The Executive Office of the Governor may approve or and
339 the Legislative Budget Commission are authorized to disapprove,
340 in whole or in part, the budget of each water management
341 district. The Executive Office of the Governor shall analyze
342 each budget as to the adequacy of fiscal resources available to
343 the district and the adequacy of district expenditures related
344 to water supply, including water resource development projects
345 identified in the district’s regional water supply plans; water
346 quality; flood protection and floodplain management; and natural
347 systems. This analysis shall be based on the particular needs
348 within each water management district in those four areas of
349 responsibility and shall be provided to the Legislative Budget
350 Commission.
351 (b) The Executive Office of the Governor, the Legislative
352 Budget Commission, and the water management districts shall
353 develop a process to facilitate review and communication
354 regarding water management district tentative budgets, as
355 necessary. If the Legislative Budget Commission determines that
356 the tentative budget of a water management district has been
357 significantly modified from a preliminary budget reviewed by the
358 Legislature pursuant to s. 373.535, the Legislative Budget
359 Commission may review, and may disapprove, any part of the
360 tentative budget of the water management district. Unless
361 otherwise authorized by the Legislature in the preliminary
362 budget review conducted pursuant to s. 373.535, the Legislative
363 Budget Commission must approve any water management district
364 budget proposal that includes any of the following:
365 1. Except for land exchanges, any single purchase of land
366 in excess of $10 million.
367 2. Any cumulative purchase of land during a single fiscal
368 year in excess of $50 million.
369 3. Any issuance of debt on or after July 1, 2012.
370 4. Program expenditures as described in sub-subparagraphs
371 (d)4.d.-f. in excess of 20 percent of a district’s total annual
372 budget.
373
374 Written disapproval of any provision in the tentative budget
375 must be received by the district at least 5 business days before
376 prior to the final district budget adoption hearing conducted
377 under s. 200.065(2)(d). If written disapproval of any portion of
378 the budget is not received at least 5 business days before prior
379 to the final budget adoption hearing, the governing board may
380 proceed with final adoption. Any provision rejected by the
381 Executive Office of the Governor or the Legislative Budget
382 Commission may shall not be included in a district’s final
383 budget and may not be acted upon through any other means without
384 prior approval of the entity rejecting the provision. Upon
385 written request of the Governor or the Legislative Budget
386 Commission, the Chief Financial Officer shall withhold state
387 funds from a water management district that fails to comply with
388 these requirements.
389 (c) Each water management district shall, by August 1 of
390 each year, submit for review a tentative budget to the Governor,
391 the President of the Senate, the Speaker of the House of
392 Representatives, the Legislative Budget Commission, the
393 secretary of the department, and the governing body of each
394 county in which the district has jurisdiction or derives any
395 funds for the operations of the district. The tentative budget
396 must be posted on the water management district’s official
397 website at least 2 days before budget hearings held pursuant to
398 s. 200.065 or other law.
399 (d) The tentative budget must be based on the preliminary
400 budget as reviewed, and as may be amended, by the Legislature
401 pursuant to ss. 373.503 and 373.535 and must set forth the
402 proposed expenditures of the district, to which may be added an
403 amount to be held as reserve. The tentative budget must include,
404 but is not limited to, the following information for the
405 preceding fiscal year and the current fiscal year, and the
406 proposed amounts for the upcoming fiscal year, in a standard
407 format prescribed by the Executive Office of the Governor, in
408 consultation with the Legislature:
409 1. The estimated amount of funds remaining at the beginning
410 of the fiscal year which have been obligated for the payment of
411 outstanding commitments not yet completed.
412 2. The estimated amount of unobligated funds or net cash
413 balance on hand at the beginning of the fiscal year, an
414 accounting of the source, balance, and projected future use of
415 the unobligated funds, and the estimated amount of funds to be
416 raised by district taxes or received from other sources to meet
417 the requirements of the district.
418 3. The millage rates and the percentage increase above the
419 rolled-back rate, together with a summary of the reasons the
420 increase is required, and the percentage increase in taxable
421 value resulting from new construction within the district.
422 4. The salaries and benefits, expenses, operating capital
423 outlay, number of authorized positions, and other personal
424 services for the following program areas of the district:
425 a. Water resource planning and monitoring;
426 b. Land acquisition, restoration, and public works;
427 c. Operation and maintenance of works and lands;
428 d. Regulation;
429 e. Outreach for which the information provided must contain
430 a full description and accounting of expenditures for water
431 resources education; public information and public relations,
432 including public service announcements and advertising in any
433 media; and lobbying activities related to local, regional, state
434 and federal governmental affairs, whether incurred by district
435 staff or through contractual services; and
436 f. Management and administration.
437
438 In addition to the program areas reported by all water
439 management districts, the South Florida Water Management
440 District shall include in its budget document separate sections
441 on all costs associated with the Everglades Construction Project
442 and the Comprehensive Everglades Restoration Plan.
443 5. The total estimated amount in the district budget for
444 each area of responsibility listed in subparagraph 4. and for
445 water resource, water supply, and alternative water supply
446 development projects identified in the district’s regional water
447 supply plans.
448 6. A description of each new, expanded, reduced, or
449 eliminated program.
450 7. The funding sources, including, but not limited to, ad
451 valorem taxes, Surface Water Improvement and Management Program
452 funds, other state funds, federal funds, and user fees and
453 permit fees for each program area.
454 (e) The Executive Office of the Governor shall annually, on
455 or before December 15, file with the Legislature a report that
456 summarizes its review of the water management districts’
457 tentative budgets and displays the adopted budget allocations by
458 program area. The report must identify the districts that are
459 not in compliance with the reporting requirements of this
460 section. State funds shall be withheld from a water management
461 district that fails to comply with these reporting requirements.
462 (6) FINAL BUDGET; ANNUAL AUDIT; CAPITAL IMPROVEMENTS PLAN;
463 WATER RESOURCE DEVELOPMENT WORK PROGRAM.—
464 (a) Each district must, by the date specified for each
465 item, furnish copies of the following documents to the Governor,
466 the President of the Senate, the Speaker of the House of
467 Representatives, the chairs of all legislative committees and
468 subcommittees having substantive or fiscal jurisdiction over the
469 districts, as determined by the President of the Senate or the
470 Speaker of the House of Representatives as applicable, the
471 secretary of the department, and the governing board of each
472 county in which the district has jurisdiction or derives any
473 funds for the operations of the district:
474 1. The adopted budget, to be furnished within 10 days after
475 its adoption.
476 2. A financial audit of its accounts and records, to be
477 furnished within 10 days after its acceptance by the governing
478 board. The audit must be conducted in accordance with the
479 provisions of s. 11.45 and the rules adopted thereunder. In
480 addition to the entities named above, the district must provide
481 a copy of the audit to the Auditor General within 10 days after
482 its acceptance by the governing board.
483 3. A 5-year capital improvements plan, to be included in
484 the consolidated annual report required by s. 373.036(7). The
485 plan must include expected sources of revenue for planned
486 improvements and must be prepared in a manner comparable to the
487 fixed capital outlay format set forth in s. 216.043.
488 4. A 5-year water resource development work program to be
489 furnished within 30 days after the adoption of the final budget.
490 The program must describe the district’s implementation strategy
491 and funding plan for the water resource, water supply, and
492 alternative water supply development components component of
493 each approved regional water supply plan developed or revised
494 under s. 373.709. The work program must address all the elements
495 of the water resource, water supply, and alternative water
496 supply development components component in the district’s
497 approved regional water supply plans and must identify which
498 projects in the work program which will provide water;, explain
499 how each water resource, water supply, and alternative water
500 supply development project will produce additional water
501 available for consumptive uses;, estimate the quantity of water
502 to be produced by each project;, and provide an assessment of
503 the contribution of the district’s regional water supply plans
504 in providing sufficient water needed to timely meet the water
505 supply needs of existing and future reasonable-beneficial uses
506 for a 1-in-10-year drought event.
507 (b) Within 30 days after its submittal, the department
508 shall review the proposed work program and submit its findings,
509 questions, and comments to the district. The review must include
510 a written evaluation of the program’s consistency with the
511 furtherance of the district’s approved regional water supply
512 plans, and the adequacy of proposed expenditures. As part of the
513 review, the department shall give interested parties the
514 opportunity to provide written comments on each district’s
515 proposed work program. Within 45 days after receipt of the
516 department’s evaluation, the governing board shall state in
517 writing to the department which of the changes recommended in
518 the evaluation it will incorporate into its work program
519 submitted as part of the March 1 consolidated annual report
520 required by s. 373.036(7) or specify the reasons for not
521 incorporating the changes. The department shall include the
522 district’s responses in a final evaluation report and shall
523 submit a copy of the report to the Governor, the President of
524 the Senate, and the Speaker of the House of Representatives.
525 (c)(b) If any entity listed in paragraph (a) provides
526 written comments to the district regarding any document
527 furnished under this subsection, the district must respond to
528 the comments in writing and furnish copies of the comments and
529 written responses to the other entities.
530 (d)(c) The final adopted budget must be posted on the water
531 management district’s official website within 30 days after
532 adoption.
533 Section 4. This act shall take effect July 1, 2012.