Florida Senate - 2011         (PROPOSED COMMITTEE BILL) SPB 7154
       
       
       
       FOR CONSIDERATION By the Committee on Budget
       
       
       
       
       576-02587E-11                                         20117154__
    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.
   52         (2) Any appropriation provided in the General
   53  Appropriations Act from the Water Protection and Sustainability
   54  Program Trust Fund is the named district’s budget authority to
   55  expend revenues that are carried forward from the prior fiscal
   56  year and collected during the current fiscal year. The
   57  expenditure of funds from a district’s local accounts may not
   58  exceed the authority provided in the General Appropriations Act
   59  unless approved pursuant to chapter 216. If a court finds that
   60  this restriction is invalid, the moneys described in this
   61  section shall be deposited into the State Treasury.
   62         Section 2. Subsections (3), (4), and (5) of section
   63  373.503, Florida Statutes, are amended to read:
   64         373.503 Manner of taxation.—
   65         (3)(a) The districts may levy ad valorem taxes on property
   66  within the district solely for the purposes of this chapter and
   67  of chapter 25270, 1949, Laws of Florida, as amended, and chapter
   68  61-691, Laws of Florida, as amended. The authority to levy ad
   69  valorem taxes as provided in this act shall commence with the
   70  year 1977. However, the taxes levied for 1977 by the governing
   71  boards pursuant to this section shall be prorated to ensure that
   72  no such taxes will be levied for the first 4 days of the tax
   73  year, which days will fall prior to the effective date of the
   74  amendment to s. 9(b), Art. VII of the State Constitution, which
   75  was approved March 9, 1976. If When appropriate, taxes levied by
   76  each governing board may be separated by the governing board
   77  into a millage necessary for the purposes of the district and a
   78  millage necessary for financing basin functions specified in s.
   79  373.0695. Beginning with the taxing year 1977, and
   80         (a) Notwithstanding the provisions of any other general or
   81  special law to the contrary, and subject to subsection (4), the
   82  maximum total millage rate for district and basin purposes shall
   83  be:
   84         1. Northwest Florida Water Management District: 0.05 mill.
   85         2. Suwannee River Water Management District: 0.75 mill.
   86         3. St. Johns River Water Management District: 0.6 mill.
   87         4. Southwest Florida Water Management District: 1.0 mill.
   88         5. South Florida Water Management District: 0.80 mill.
   89         (b) The apportionment in the South Florida Water Management
   90  District shall be a maximum of 40 percent for district purposes
   91  and a maximum of 60 percent for basin purposes, respectively.
   92         (c) Within the Southwest Florida Water Management District,
   93  the maximum millage assessed for district purposes may shall not
   94  exceed 50 percent of the total authorized millage if when there
   95  are one or more basins in the district, and the maximum millage
   96  assessed for basin purposes may shall not exceed 50 percent of
   97  the total authorized millage.
   98         (4) To ensure that taxes authorized by this chapter
   99  continue to be in proportion to the benefits derived by the
  100  parcels of real estate within the districts, the Legislature
  101  shall annually review the authorized millage rate for each
  102  district and set the maximum amount of revenue to be raised by
  103  each district from the taxes levied. If the annual maximum
  104  amount of property tax revenue is not set by the Legislature on
  105  or before July 1 of each year, the district may not raise
  106  additional revenue through the levy of ad valorem taxes on
  107  property.
  108         (5)(4) It is hereby determined that the taxes authorized by
  109  this chapter are in proportion to the benefits to be derived by
  110  the several parcels of real estate within the districts to which
  111  territories are annexed and transferred. It is further
  112  determined that the cost of conducting elections within the
  113  respective districts or within the transferred or annexed
  114  territories, including costs incidental thereto in preparing for
  115  such election and in informing the electors of the issues
  116  therein, is a proper expenditure of the department, of the
  117  respective districts, and of the district to which such
  118  territory is or has been annexed or transferred.
  119         (6)(5) Each water management district created under this
  120  chapter which does not receive state shared revenues under part
  121  II of chapter 218 shall, before January 1 of each year, certify
  122  compliance or noncompliance with s. 200.065 to the Department of
  123  Financial Services. Specific grounds for noncompliance must
  124  shall be stated in the certification. In its annual report
  125  required by s. 218.32(2), the Department of Financial Services
  126  shall report to the Governor and the Legislature those water
  127  management districts certifying noncompliance or not reporting.
  128         Section 3. Section 373.536, Florida Statutes, is amended to
  129  read:
  130         (Substantial rewording of section. See
  131         s. 373.536, F.S., for present text.)
  132         373.536 Water management district budgets.
  133         (1)FISCAL YEAR.—Commencing July 1, 2012, the fiscal year
  134  of water management districts created under this chapter extends
  135  from July 1 of one year through June 30 of the following year.
  136         (2)BUDGET DEVELOPMENT; HEARINGS.—
  137         (a)On or before July 15 of each year, the budget officer
  138  of the water management district shall submit for consideration
  139  by the governing board of the district a proposed budget
  140  covering the district’s proposed operations and funding
  141  requirements for the next fiscal year.
  142         (b)In developing its proposed budget, each water
  143  management district may conduct such workshops and hearings as
  144  necessary.
  145         1.Unless alternative notice requirements are otherwise
  146  provided by law, notice of all budget hearings must be published
  147  in a newspaper of general paid circulation in each county in
  148  which the district lies at least 5 days but not more than 15
  149  days before the hearing.
  150         2.Budget workshops conducted for the public must be
  151  advertised in a newspaper of general paid circulation in the
  152  community or area in which the workshop will occur at least 5
  153  days but not more than 15 days before the workshop.
  154         3.The hearing for adoption of a budget to be included in
  155  the legislative budget request submitted pursuant to paragraph
  156  (4)(a) must be by and before the governing board of the district
  157  and may be continued from day to day until terminated by the
  158  board.
  159         (3)BUDGET CONTENTS AND REVIEW.—
  160         (a)The Executive Office of the Governor and the water
  161  management districts shall develop a process to facilitate
  162  review and communication regarding district budgets, as
  163  necessary. The office shall analyze each budget as to the
  164  adequacy of fiscal resources available to the district and the
  165  adequacy of district expenditures related to water supply,
  166  including water resource and water supply development projects
  167  identified in the district’s regional water supply plans; water
  168  quality; flood protection and floodplain management; and natural
  169  systems. The analysis must compare proposed expenditures among
  170  districts and be based on the particular needs within each water
  171  management district in these four areas of responsibility.
  172         (b)The budget must set forth the proposed expenditures of
  173  the water management district, to which may be added an amount
  174  to be held in reserve. At a minimum, 25 percent of the property
  175  taxes levied in support of the budget must be held in reserve
  176  for the following fiscal year. The budget must include, but is
  177  not limited to, the following information for the preceding
  178  fiscal year and the current fiscal year, and the proposed
  179  amounts for the upcoming fiscal year, in a standard format
  180  prescribed by the Executive Office of the Governor:
  181         1.The estimated amount of funds remaining at the beginning
  182  of the fiscal year which have been obligated for the payment of
  183  outstanding commitments not yet completed.
  184         2.The estimated amount of unobligated funds or net cash
  185  balance on hand at the beginning of the fiscal year, and the
  186  estimated amount of funds to be raised by district taxes or
  187  received from other sources to meet the requirements of the
  188  district.
  189         3.The salaries and benefits, expenses, operating capital
  190  outlay, number of authorized positions, other personnel
  191  services, and other applicable categories listed in s. 216.011
  192  for the following program areas of the district:
  193         a.Water resource planning and monitoring;
  194         b.Land acquisition, restoration, and public works;
  195         c.Operation and maintenance of works and lands;
  196         d.Regulation;
  197         e.Outreach, including a full description and accounting of
  198  expenditures for water resources education; public information
  199  and public relations, including public service announcements and
  200  advertising in any media; and lobbying activities related to
  201  local, regional, state, and federal governmental affairs,
  202  whether incurred by district staff or through contractual
  203  services; and
  204         f.Management and administration.
  205  
  206  In addition to the program areas reported by all water
  207  management districts, the South Florida Water Management
  208  District shall include in its budget document separate sections
  209  on all costs associated with the Everglades Construction Project
  210  and the Comprehensive Everglades Restoration Plan.
  211         4.The total estimated amount in the district budget for
  212  each area of responsibility listed in subparagraph 3., and for
  213  water resource and water supply development projects identified
  214  in the district’s regional water supply plans.
  215         5.A description of each new, expanded, reduced, or
  216  eliminated program.
  217         6.All revenue sources, including ad valorem taxes, Surface
  218  Water Improvement and Management Program funds, other state
  219  funds, federal funds, and user fees and permit fees for each
  220  program area.
  221         (c)The Executive Office of the Governor shall annually
  222  file with the Legislature a report that summarizes its review of
  223  the water management districts’ recommended budgets and displays
  224  the budget allocations by program area. The report must identify
  225  districts that are not in compliance with the reporting
  226  requirements of this section. State funds shall be withheld from
  227  a district that fails to comply with such reporting
  228  requirements.
  229         (4)BUDGET SUBMITTAL.Commencing in 2011, for the 2012-2013
  230  fiscal year and each fiscal year thereafter:
  231         (a)By October 15 of each year, the department shall
  232  include in its legislative budget request to the Governor and
  233  Legislature the complete legislative budget request for each
  234  water management district consistent with this section and s.
  235  216.023.
  236         (b)The Governor shall include his or her recommendations
  237  for each water management district budget, together with the
  238  analysis performed pursuant to paragraph (3)(a) and the report
  239  prepared pursuant to paragraph (3)(c), in the recommended budget
  240  furnished to the Legislature pursuant to s. 216.162.
  241         (5)BUDGET APPROVAL; FINANCIAL INFORMATION.
  242         (a)Each water management district’s budget shall be the
  243  budget approved by the Legislature annually in the General
  244  Appropriations Act, as may be amended pursuant to this section.
  245         (b)By September 1, 2011, each water management district
  246  shall post on its website for public access the monthly
  247  financial statement that is currently provided to its governing
  248  board. By July 1, 2012, each district shall also post on its
  249  website, in a manner specified by the Chief Financial Officer,
  250  the district’s budgets, revenues, salaries and benefits,
  251  expenses, operating capital outlay, number of authorized
  252  positions, other personnel services, and other applicable
  253  categories listed in s. 216.011.
  254         (c) For each fiscal year beginning on or after July 1,
  255  2012, each water management district shall maintain its
  256  financial data in a manner that is consistent with applicable
  257  common financial data management codes for local governments
  258  adopted by the Chief Financial Officer and in effect on January
  259  1, 2012. For each fiscal year beginning on or after July 1,
  260  2013, the districts shall submit monthly detailed financial
  261  reports to the Department of Financial Services in a manner
  262  specified by the Chief Financial Officer.
  263         (6)DETERMINATION OF MILLAGE; ADOPTION OF BUDGET.—
  264         (a)The final budget and millage rate shall be adopted in
  265  accordance with s. 200.065. For purposes of complying with that
  266  section, the budget set forth in the General Appropriations Act
  267  shall be considered the tentative budget under s. 200.065(2) and
  268  the amended tentative budget adopted under s. 200.065(2)(c).
  269         (b)If the mailing of the notice of proposed property taxes
  270  is delayed beyond September 3 in any county in which the water
  271  management district lies, the district shall advertise its
  272  intention to adopt a tentative budget and millage rate, pursuant
  273  to s. 200.065(3)(g), in a newspaper of general paid circulation
  274  in that county.
  275         (c)As provided in s. 200.065(2)(d), the board shall
  276  publish one or more notices of its intention to adopt a final
  277  budget for the district for the next fiscal year. The notice
  278  shall appear adjacent to an advertisement that sets forth the
  279  tentative budget in a format meeting the budget summary
  280  requirements of s. 129.03(3)(b). The notice and advertisement
  281  must be published in one or more newspapers having a combined
  282  general paid circulation in each county in which the district
  283  lies. Districts may include explanatory phrases and examples in
  284  the budget advertisements to clarify or illustrate the effect
  285  that the district budget may have on ad valorem taxes.
  286         (d)The hearing for adoption of a final budget and millage
  287  rate shall be by and before the governing board of the water
  288  management district as provided in s. 200.065 and may be
  289  continued from day to day until terminated by the board.
  290         (e) If the final millage rate adopted by the board is lower
  291  than the proposed millage rate, any changes to the budget
  292  necessitated by the adoption of the lower millage are subject to
  293  review and approval pursuant to ss. 216.181 and 216.292.
  294         (f)Notwithstanding any other provision of law, a water
  295  management district may expend funds based on its legislatively
  296  approved budget until its final budget is adopted pursuant to s.
  297  200.065(2)(d).
  298         (7)BUDGET CONTROLS.—
  299         (a)The final budget for the district as adopted pursuant
  300  to this section, is the operating and fiscal guide for the water
  301  management district for the next year. However, transfers of
  302  funds may be made within the budget, following review and
  303  approval pursuant to ss. 216.181 and 216.292, by action of the
  304  district’s governing board at a public meeting of the governing
  305  board.
  306         (b) Lump-sum salary bonuses may be provided only if
  307  specifically appropriated or provided pursuant to s. 110.1245 or
  308  s. 216.1815.
  309         (c)The water management district shall control its budget,
  310  at a minimum, by fund and provide a description of its budget
  311  control mechanisms, in conjunction with the legislative budget
  312  request furnished to the Governor and Legislature pursuant to
  313  subsection (4), for approval.
  314         (d)If the water management district receives unanticipated
  315  funds after the adoption of the final budget, the final budget
  316  may be amended, following review and approval pursuant to ss.
  317  216.181 and 216.292, to include such funds if notice of the
  318  amendment is published in the notice of the governing board
  319  meeting at which the amendment will be considered, pursuant to
  320  s. 120.525. The notice must set forth a summary of the proposed
  321  amendment. However, in the event of a disaster or of an
  322  emergency arising to prevent or avert a disaster, the governing
  323  board is not limited by the budget but may apply such funds as
  324  may be available or as may be procured for such purpose. In such
  325  an event, the governing board shall notify the Executive Office
  326  of the Governor and the Legislative Budget Commission as soon as
  327  practical, but within 30 days after the governing board’s
  328  action.
  329         (8)FINAL BUDGET; ANNUAL AUDIT; CAPITAL IMPROVEMENTS PLAN;
  330  WATER RESOURCE DEVELOPMENT WORK PROGRAM.—
  331         (a)Each water management district must, by the date
  332  specified for each item, furnish copies of the following
  333  documents to the Governor, the President of the Senate, the
  334  Speaker of the House of Representatives, the chairs of all
  335  legislative committees and subcommittees having substantive or
  336  fiscal jurisdiction over the districts, the secretary of the
  337  department, and the governing board of each county in which the
  338  district has jurisdiction or derives any funds for the
  339  operations of the district:
  340         1.The adopted budget to be furnished within 10 days after
  341  its adoption.
  342         2.A financial audit of its accounts and records, to be
  343  furnished within 10 days after its acceptance by the governing
  344  board. The audit must be conducted in accordance with s. 11.45
  345  and the rules adopted thereunder. The district must also provide
  346  a copy of the audit to the Auditor General within 10 days after
  347  its acceptance by the governing board.
  348         3.A 5-year capital improvements plan, to be included in
  349  the consolidated annual report required by s. 373.036(7). The
  350  plan must include expected sources of revenue for planned
  351  improvements and be prepared in a manner comparable to the fixed
  352  capital outlay format set forth in s. 216.043.
  353         4.A 5-year water resource development work program, as
  354  described in paragraph (b), to be furnished within 30 days after
  355  the adoption of the final budget. The program must describe the
  356  district’s implementation strategy for the water resource
  357  development component of each approved regional water supply
  358  plan developed or revised under s. 373.709.
  359         (b) The 5-year water resource development work program
  360  furnished pursuant to subparagraph (a)4. must address all the
  361  elements of the water resource development component in the
  362  district’s approved regional water supply plans, including
  363  information about the relationship between the water resources
  364  development component and funding for alternative water supply
  365  projects, and must identify which projects in the work program
  366  will provide water, explain how each water resource development
  367  or water supply project will produce additional water available
  368  for consumptive uses, estimate the quantity of water to be
  369  produced by each project, and provide an assessment of the
  370  contribution of the district’s regional water supply plans in
  371  providing sufficient water to meet the water supply needs of
  372  existing and future reasonable-beneficial uses for a 1-in-10
  373  year drought event.
  374         1. Within 30 days after submittal, the department shall
  375  review the proposed work program and submit its findings,
  376  questions, and comments to the district. The review must include
  377  a written evaluation of the program’s consistency with
  378  furthering the district’s approved regional water supply plans,
  379  and the adequacy of proposed expenditures. As part of the
  380  review, the department shall give interested parties the
  381  opportunity to provide written comments on each district’s
  382  proposed work program.
  383         2. Within 45 days after receipt of the department’s
  384  evaluation, the governing board shall state in writing to the
  385  department which changes recommended in the evaluation it will
  386  incorporate into its work program submitted as part of the March
  387  1 consolidated annual report required by s. 373.036(7), or
  388  specify the reasons for not incorporating the changes.
  389         3. The department shall include the district’s responses in
  390  a final evaluation report and submit a copy of the report to the
  391  Governor and the Legislature.
  392         (c)If any entity listed in paragraph (a) provides written
  393  comments to the district regarding any document furnished under
  394  this subsection, the district must respond to the comments in
  395  writing and furnish copies of the comments and written responses
  396  to the other entities.
  397         Section 4. Subsection (1) of section 403.891, Florida
  398  Statutes, is amended to read:
  399         403.891 Water Protection and Sustainability Program Trust
  400  Fund of the Department of Environmental Protection.—
  401         (1) The Water Protection and Sustainability Program Trust
  402  Fund is created within the Department of Environmental
  403  Protection. The purpose of the trust fund is to implement the
  404  Water Sustainability and Protection Program created in s.
  405  403.890 and the provisions of s. 373.502.
  406         Section 5. Paragraph (d) of subsection (8) of section
  407  373.026, Florida Statutes, is amended to read:
  408         373.026 General powers and duties of the department.—The
  409  department, or its successor agency, shall be responsible for
  410  the administration of this chapter at the state level. However,
  411  it is the policy of the state that, to the greatest extent
  412  possible, the department may enter into interagency or
  413  interlocal agreements with any other state agency, any water
  414  management district, or any local government conducting programs
  415  related to or materially affecting the water resources of the
  416  state. All such agreements shall be subject to the provisions of
  417  s. 373.046. In addition to its other powers and duties, the
  418  department shall, to the greatest extent possible:
  419         (8)
  420         (d) The Executive Office of the Governor, pursuant to its
  421  duties under s. 373.536(5) to approve or disapprove, in whole or
  422  in part, the budget of each water management district, shall
  423  review all proposed expenditures for project components in the
  424  district’s budget.
  425         Section 6. Paragraph (b) of subsection (7) of section
  426  373.036, Florida Statutes, is amended to read:
  427         373.036 Florida water plan; district water management
  428  plans.—
  429         (7) CONSOLIDATED WATER MANAGEMENT DISTRICT ANNUAL REPORT.—
  430         (b) The consolidated annual report shall contain the
  431  following elements, as appropriate to that water management
  432  district:
  433         1. A district water management plan annual report or the
  434  annual work plan report allowed in subparagraph (2)(e)4.
  435         2. The department-approved minimum flows and levels annual
  436  priority list and schedule required by s. 373.042(2).
  437         3. The annual 5-year capital improvements plan required by
  438  s. 373.536(8)(a)3. 373.536(6)(a)3.
  439         4. The alternative water supplies annual report required by
  440  s. 373.707(8)(n).
  441         5. The final annual 5-year water resource development work
  442  program required by s. 373.536(8)(a)4. 373.536(6)(a)4.
  443         6. The Florida Forever Water Management District Work Plan
  444  annual report required by s. 373.199(7).
  445         7. The mitigation donation annual report required by s.
  446  373.414(1)(b)2.
  447         Section 7. Paragraph (a) of subsection (6) of section
  448  373.707, Florida Statutes, is amended to read:
  449         373.707 Alternative water supply development.—
  450         (6)(a) The statewide funds provided pursuant to the Water
  451  Protection and Sustainability Program serve to supplement
  452  existing water management district or basin board funding for
  453  alternative water supply development assistance and should not
  454  result in a reduction of such funding. Therefore, the water
  455  management districts shall include in the annual tentative and
  456  adopted budget submittals required under this chapter the amount
  457  of funds allocated for water resource development which that
  458  supports alternative water supply development and the funds
  459  allocated for alternative water supply projects selected for
  460  inclusion in the Water Protection and Sustainability Program. It
  461  shall be The goal of each water management district and basin
  462  boards is for that the combined funds allocated annually for
  463  these purposes to be, at a minimum, the equivalent of 100
  464  percent of the state funding provided to the water management
  465  district for alternative water supply development. If this goal
  466  is not achieved, the water management district shall provide in
  467  the budget submittal an explanation of the reasons or
  468  constraints that prevent this goal from being met, an
  469  explanation of how the goal will be met in future years, and
  470  affirmation of the match is required during the budget review
  471  process as established under s. 373.536(5). The Suwannee River
  472  Water Management District and the Northwest Florida Water
  473  Management District are shall not be required to meet the match
  474  requirements of this paragraph; however, they shall try to
  475  achieve the match requirement to the greatest extent
  476  practicable.
  477         Section 8. Subsection (6) of section 373.709, Florida
  478  Statutes, is amended to read:
  479         373.709 Regional water supply planning.—
  480         (6) Annually and in conjunction with the reporting
  481  requirements of s. 373.536(8)(a)4. 373.536(6)(a)4., the
  482  department shall submit to the Governor and the Legislature a
  483  report on the status of regional water supply planning in each
  484  district. The report must shall include:
  485         (a) A compilation of the estimated costs of and potential
  486  sources of funding for water resource development and water
  487  supply development projects as identified in the water
  488  management district regional water supply plans.
  489         (b) The percentage and amount, by district, of district ad
  490  valorem tax revenues or other district funds made available to
  491  develop alternative water supplies.
  492         (c) A description of each district’s progress toward
  493  achieving its water resource development objectives, including
  494  the district’s implementation of its 5-year water resource
  495  development work program.
  496         (d) An assessment of the specific progress being made to
  497  implement each alternative water supply project option chosen by
  498  the entities and identified for implementation in the plan.
  499         (e) An overall assessment of the progress being made to
  500  develop water supply in each district, including, but not
  501  limited to, an explanation of how each project, either
  502  alternative or traditional, will produce, contribute to, or
  503  account for additional water being made available for
  504  consumptive uses, an estimate of the quantity of water to be
  505  produced by each project, and an assessment of the contribution
  506  of the district’s regional water supply plan in providing
  507  sufficient water to meet the needs of existing and future
  508  reasonable-beneficial uses for a 1-in-10-year drought event, as
  509  well as the needs of the natural systems.
  510         Section 9. (1) In order for water management districts
  511  created under chapter 373, Florida Statutes, to implement the
  512  transition to a fiscal year beginning on July 1 and ending on
  513  June 30, as provided in s. 373.536, Florida Statutes, as amended
  514  by this act, the fiscal year for each water management district
  515  beginning on October 1, 2011, will end on June 30, 2012. Each
  516  water management district must adopt its final budget and
  517  millage rate for the October 1, 2011, to June 30, 2012, fiscal
  518  year pursuant to s. 373.536(6), Florida Statutes. To ensure that
  519  there are sufficient funds for a seamless transition to a new
  520  fiscal year, the district board may adopt a millage rate that is
  521  33.33 percent higher than the millage rate needed to fund the
  522  October 1, 2011, to June 30, 2012, fiscal year. However, the
  523  total ad valorem taxes levied may not exceed $3,946,969 for the
  524  Northwest Florida Water Management District, $5,412,674 for the
  525  Suwannee River Water Management District, $85,335,619 for the
  526  St. Johns Water Management District, $107,766,957 for the
  527  Southwest Florida Water Management District, and $284,901,967
  528  for the South Florida Water Management District. Twenty-five
  529  percent of the revenues received from the adoption of the
  530  millage rate shall be placed in a reserve to be spent in the
  531  fiscal year beginning on July 1, 2012.
  532         (2) Notwithstanding any other provision of law, a water
  533  management district may spend funds based on its legislatively
  534  approved budget until its final budget is adopted pursuant to s.
  535  200.065(2)(d), Florida Statutes.
  536         (3) All prior year incurred obligations are hereby
  537  appropriated. As used in this subsection, the term incurred
  538  obligation” means a legal obligation for goods or services that
  539  have been contracted for.
  540         (4) This section expires July 1, 2012.
  541         Section 10. This act shall take effect upon becoming a law.