Florida Senate - 2012                                    SB 1834
       
       
       
       By Senator Hays
       
       
       
       
       20-01480B-12                                          20121834__
    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 maximum millage rate levied for
    7         district and basin purposes and used to fund the core
    8         areas of water supply and water resource development
    9         projects, water quality, flood protection and
   10         floodplain management, and natural systems; directing
   11         the Legislature to annually review each water
   12         management district’s budget and set a maximum millage
   13         rate for certain purposes; specifying the use of the
   14         revenues; revising the review process for budgets of
   15         the water management districts; removing a provision
   16         requiring that the maximum property tax revenue for
   17         water management districts revert to the amount
   18         authorized for the prior year if the Legislature does
   19         not set the amount; removing the maximum revenues for
   20         the 2011-2012 fiscal year; creating s. 373.535, F.S.;
   21         providing the process by which water management
   22         districts must submit a preliminary budget to the
   23         Executive Office of the Governor; requiring that the
   24         preliminary budget be developed using certain
   25         principles and standards; requiring that the
   26         preliminary budget provide sufficient detail for
   27         legislative review and separately identify certain
   28         detail and justifications; requiring the Executive
   29         Office of the Governor to analyze each preliminary
   30         budget as to the adequacy of fiscal resources and
   31         certain expenditures; requiring the Executive Office
   32         of the Governor to provide to the Legislature by a
   33         time certain each water management district’s
   34         preliminary budget and analysis; requiring that the
   35         Legislature annually review and approve, limit, or
   36         disapprove specified portions of the preliminary
   37         budget for each water management district; requiring
   38         that the Legislature, in appropriating funds for water
   39         management districts, authorize a level of expenditure
   40         for each approved program and activity; prohibiting a
   41         water management district from expending any funds on
   42         a program or activity not authorized by the
   43         Legislature; authorizing the Legislature to review and
   44         take action on other provisions of the preliminary
   45         budget of each water management district; providing
   46         criteria; requiring that the first funding obligation
   47         of a water management district is payment of debt
   48         service for bonds and certificates of participation,
   49         if applicable; requiring a water management district
   50         to receive prior approval from the Legislature before
   51         incurring additional bonded indebtedness; providing
   52         that the preliminary budget reviewed by the
   53         Legislature is the basis for development of the
   54         tentative budget of each water management district;
   55         limiting the authority of a district to fund proposed
   56         expenditures reviewed by the Legislature to the amount
   57         authorized in the appropriations process, the
   58         authorized maximum revenue limit, or the authorized
   59         maximum millage rate that is levied; amending s.
   60         373.536, F.S.; requiring that a water management
   61         district provide notice to the Legislative Budget
   62         Commission of any transfer of funds within the
   63         district’s budget and requiring that such transfers be
   64         reviewed and approved prior to the transfer by the
   65         Executive Office of the Governor; providing that, upon
   66         providing notice to the Legislative Budget Commission,
   67         and subject to prior review and approval by the
   68         Executive Office of the Governor, a water management
   69         district may amend unanticipated funds into its final
   70         budget; requiring the Executive Office of the Governor
   71         and the Legislative Budget Commission to be notified
   72         if the governing board of a water management district
   73         expends available funds for a disaster or emergency;
   74         removing obsolete provisions relating to review and
   75         approval by the Executive Office of the Governor and
   76         the Legislative Budget Commission of the tentative
   77         budget of a water management district; providing for
   78         the approval or disapproval of the tentative budget by
   79         the Executive Office of the Governor; providing
   80         criteria for the Legislative Budget Commission to use
   81         in disapproving the tentative budget of a water
   82         management district; prohibiting a water management
   83         district from acting on a rejected provision without
   84         the approval of the Executive Office of the Governor
   85         or the Legislative Budget Commission; providing for
   86         the Chief Financial Officer to withhold state funds
   87         from a district that fails to obtain prior approval;
   88         providing an effective date.
   89  
   90  Be It Enacted by the Legislature of the State of Florida:
   91  
   92         Section 1. Subsections (3) and (4) of section 373.503,
   93  Florida Statutes, are amended to read:
   94         373.503 Manner of taxation.—
   95         (3) The districts may levy ad valorem taxes on property
   96  within the district solely for the purposes of this chapter and
   97  of chapter 25270, 1949, Laws of Florida, as amended, and chapter
   98  61-691, Laws of Florida, as amended. If appropriate, taxes
   99  levied by each governing board may be separated by the governing
  100  board into a millage necessary for the purposes of the district
  101  and a millage necessary for financing basin functions specified
  102  in s. 373.0695.
  103         (a) Notwithstanding any other general or special law, and
  104  subject to subsection (4), the maximum total millage rate for
  105  district and basin purposes which may be used solely for the
  106  purposes of funding the core water management district mission
  107  areas of water supply, including alternative water supply, and
  108  water resource development projects, water quality, flood
  109  protection and floodplain management, and natural systems shall
  110  be:
  111         1. Northwest Florida Water Management District: 0.04 0.05
  112  mill.
  113         2. Suwannee River Water Management District: 0.80 0.75
  114  mill.
  115         3. St. Johns River Water Management District: 0.80 0.6
  116  mill.
  117         4. Southwest Florida Water Management District: 0.80 1.0
  118  mill.
  119         5. South Florida Water Management District: 0.80 mill.
  120         (b) As provided in s. 373.535, and subject to the limits
  121  established by s. 9(b), Art. VII of the State Constitution, the
  122  Legislature shall annually review the preliminary budget of each
  123  water management district and separately set, in addition to the
  124  rate set in paragraph (a), a maximum millage rate that may be
  125  used for funding regulation, outreach, management, and
  126  administration programs and activities in each district.
  127         (c) The maximum authorized millage rates separately
  128  established in paragraphs (a) and (b) shall be used to fund only
  129  the core mission areas and programs and activities specified
  130  therein. If the Legislature fails to set the maximum amount of
  131  millage that may be levied for the programs and activities
  132  specified in paragraph (b), a district may not include in its
  133  budget or expend funds from any source for those programs and
  134  activities during the next fiscal year.
  135         (d)(b) The apportionment in the South Florida Water
  136  Management District shall be a maximum of 40 percent for
  137  district purposes and a maximum of 60 percent for basin
  138  purposes, respectively.
  139         (e)(c) Within the Southwest Florida Water Management
  140  District, the maximum millage assessed for district purposes may
  141  not exceed 50 percent of the total authorized millage if there
  142  are one or more basins in the district, and the maximum millage
  143  assessed for basin purposes may not exceed 50 percent of the
  144  total authorized millage.
  145         (4)(a) To ensure that taxes authorized by this chapter
  146  continue to be in proportion to the benefits derived by the
  147  parcels of real estate within the districts, the Legislature
  148  shall annually review the preliminary budget for each district
  149  for the next fiscal year as provided in s. 373.535 and the
  150  authorized millage rate for each district. Based upon this
  151  review, the Legislature shall set the authorized maximum millage
  152  rate or the maximum amount of revenue to be raised by each
  153  district in the next fiscal year from the taxes levied. Except
  154  as provided in paragraph (b), if the annual maximum amount of
  155  property tax revenue is not set by the Legislature on or before
  156  July 1 of each year, the maximum property tax revenue that may
  157  be raised reverts to the amount authorized in the prior year.
  158         (b) For the 2011-2012 fiscal year, the total ad valorem
  159  taxes levied may not exceed $3,946,969 for the Northwest Florida
  160  Water Management District, $5,412,674 for the Suwannee River
  161  Water Management District, $85,335,619 for the St. Johns Water
  162  Management District, $107,766,957 for the Southwest Florida
  163  Water Management District, and $284,901,967 for the South
  164  Florida Water Management District.
  165         Section 2. Section 373.535, Florida Statutes, is created to
  166  read:
  167         373.535Preliminary district budget; development,
  168  legislative review, and authority granted.
  169         (1) PRELIMINARY BUDGET DEVELOPMENT.—
  170         (a) In preparation for the legislative budget review
  171  pursuant to subsection (2) and s. 373.503(4), each water
  172  management district shall submit a preliminary budget for the
  173  next fiscal year to the Executive Office of the Governor in the
  174  form and manner prescribed in s. 373.536(5)(c). In developing
  175  its preliminary budget, each water management district shall use
  176  zero-based budgeting principles along with unit cost and
  177  performance accountability standards that justify the
  178  expenditures.
  179         1. Each preliminary budget shall have a separate section
  180  containing sufficient detail for legislative review which
  181  clearly identifies and provides a justification for each
  182  proposed expenditure for the items listed in s.
  183  373.536(5)(c)4.d.-f. and which identifies the source of funds
  184  for each expenditure.
  185         2. Each preliminary budget shall also separately identify,
  186  by core mission area of responsibility, the details of and
  187  justification for proposed expenditures and the source of funds
  188  needed for activities related to water supply, including
  189  alternative water supply and water resource development projects
  190  identified in the district’s regional water supply plans, water
  191  quality, flood protection and floodplain management, and natural
  192  systems.
  193         (b) The Executive Office of the Governor shall analyze each
  194  preliminary budget to determine the adequacy of fiscal resources
  195  available to the district and the adequacy of proposed district
  196  expenditures related to the core mission areas of responsibility
  197  for activities related to water supply, including alternative
  198  water supply and water resource development projects identified
  199  in the district’s regional water supply plans, water quality,
  200  flood protection and floodplain management, and natural systems.
  201  The analysis shall be based on the particular needs within each
  202  water management district in the core mission areas of
  203  responsibility.
  204         (c) The Executive Office of the Governor shall provide the
  205  preliminary budget for each water management district together
  206  with the adequacy analysis specified in paragraph (b) to the
  207  Legislature not later than 30 days before the start of each
  208  legislative session.
  209         (2) PRELIMINARY BUDGET; LEGISLATIVE REVIEW AND APPROVAL.—
  210         (a)1. The Legislature must annually review and approve,
  211  limit, or disapprove each portion of the preliminary budget for
  212  each water management district which is specific to regulation,
  213  outreach, management, and administration programs and
  214  activities.
  215         2. After the annual review, the Legislature shall
  216  appropriate for each district funds for the proposed
  217  expenditures, set a maximum amount of revenue that may be raised
  218  to fund the programs and activities, or set the maximum millage
  219  rate that may be levied to fund the programs and activities.
  220         3. If the Legislature does not appropriate funds, set the
  221  maximum amount of revenue, or set the maximum millage rate
  222  pursuant to subparagraph 2., the water management district may
  223  not include in its budget or expend funds from any source for
  224  such programs and activities during the ensuing fiscal year.
  225         (b)1. The Legislature may also review and take action on
  226  any other aspect of the preliminary budget for each water
  227  management district. If the Legislature determines that the core
  228  mission areas of responsibility analyzed pursuant to paragraph
  229  (1)(b) are not adequately addressed in the preliminary budget of
  230  a water management district, the Legislature may take any action
  231  it deems appropriate, including designating specific revenues or
  232  millage rates for individual core mission areas.
  233         2. If the Legislature does not take any action pursuant to
  234  subparagraph 1., that portion of the preliminary budget of each
  235  water management district is deemed approved.
  236         (c)If applicable, the preliminary budget for each water
  237  management district must specify that the district’s first
  238  obligation for payment is the debt service on bonds and
  239  certificates of participation. In addition, a water management
  240  district must receive approval from the Legislature before it
  241  may incur additional bond indebtedness.
  242         (3)PRELIMINARY BUDGET; AUTHORITY GRANTED.—
  243         (a)Each water management district shall use the
  244  preliminary budget reviewed by the Legislature pursuant to this
  245  section and s. 373.503 as the basis for developing the tentative
  246  budget as provided in s. 373.536(5).
  247         (b)The Legislature’s action pursuant to subsection (2), or
  248  the approval pursuant to subparagraph (2)(b)2., constitutes the
  249  only authority for a district to fund proposed expenditures for
  250  the next fiscal year and a district is prohibited from including
  251  in its tentative budget or expending any funds from any source
  252  for its programs and activities during the next fiscal year
  253  without such legislative authorization.
  254         Section 3. Subsections (4), (5), and (6) of section
  255  373.536, Florida Statutes, are amended to read:
  256         373.536 District budget and hearing thereon.—
  257         (4) BUDGET CONTROLS; FINANCIAL INFORMATION.—
  258         (a) The final adopted budget for the district is will
  259  thereupon be the operating and fiscal guide for the district for
  260  the ensuing year; however, transfers of funds may be made within
  261  the budget by action of the governing board at a public meeting
  262  of the governing board, subject to prior review and approval by
  263  the Executive Office of the Governor and upon providing notice
  264  of the transfer to the Legislative Budget Commission.
  265         (b) The district shall control its budget, at a minimum, by
  266  funds and shall provide to the Executive Office of the Governor
  267  for approval a description of its budget control mechanisms.
  268         (c) If Should the district receives receive unanticipated
  269  funds after the adoption of the final budget, upon providing
  270  notice to the Legislative Budget Commission, the district may
  271  amend the final budget, subject to prior review and approval by
  272  the Executive Office of the Governor. may be amended by
  273  including such funds, so long as notice of intention to amend is
  274  published in the Notice of the governing board meeting at which
  275  the amendment will be considered must be published, pursuant to
  276  s. 120.525. The notice shall set forth a summary of the proposed
  277  amendment.
  278         (d)However, In the event of a disaster or of an emergency
  279  arising to prevent or avert the same, the governing board is
  280  shall not be limited by the budget but may expend shall have
  281  authority to apply such funds as may be available for the
  282  disaster or emergency therefor or as may be procured for such
  283  purpose. If the governing board expends available funds for a
  284  disaster or emergency, the governing board must notify the
  285  Executive Office of the Governor and the Legislative Budget
  286  Commission as soon as practicable, but not later than 30 days
  287  after the governing board’s action.
  288         (e)(d) By September 1, 2011, each water management district
  289  shall provide a monthly financial statement to its governing
  290  board and make such monthly financial statement available for
  291  public access on its website.
  292         (5) TENTATIVE BUDGET CONTENTS AND SUBMISSION; REVIEW AND
  293  APPROVAL.—
  294         (a) The Executive Office of the Governor and the
  295  Legislative Budget Commission are authorized to disapprove, in
  296  whole or in part, the budget of each water management district.
  297  The Executive Office of the Governor shall analyze each budget
  298  as to the adequacy of fiscal resources available to the district
  299  and the adequacy of district expenditures related to water
  300  supply, including water resource development projects identified
  301  in the district’s regional water supply plans; water quality;
  302  flood protection and floodplain management; and natural systems.
  303  This analysis shall be based on the particular needs within each
  304  water management district in those four areas of responsibility
  305  and shall be provided to the Legislative Budget Commission.
  306         (a)(b) The Executive Office of the Governor, the
  307  Legislative Budget Commission, and the water management
  308  districts shall develop a process to facilitate review and
  309  communication regarding water management district tentative
  310  budgets, as necessary. The Executive Office of the Governor may
  311  approve or disapprove, in whole or in part, the tentative budget
  312  of each water management district. If the Legislative Budget
  313  Commission determines that the tentative budget of a water
  314  management district has been significantly modified from a
  315  preliminary budget reviewed by the Legislature pursuant to s.
  316  373.535, the Legislative Budget Commission may review, and may
  317  disapprove, any part of the tentative budget of the water
  318  management district. Written disapproval of any provision in the
  319  tentative budget must be received by the district at least 5
  320  business days before prior to the final district budget adoption
  321  hearing conducted under s. 200.065(2)(d). If written disapproval
  322  of any portion of the budget is not received at least 5 business
  323  days before prior to the final budget adoption hearing, the
  324  governing board may proceed with final adoption. Any provision
  325  rejected by the Executive Office of the Governor or the
  326  Legislative Budget Commission may shall not be included in a
  327  district’s final budget, and may not be acted upon through any
  328  other means without prior approval of the Governor or the
  329  Legislative Budget Commission. Upon written request of the
  330  Governor or the Legislative Budget Commission, the Chief
  331  Financial Officer shall withhold state funds from a water
  332  management district that fails to comply with these
  333  requirements.
  334         (b)(c) Each water management district shall, by August 1 of
  335  each year, submit for review a tentative budget to the Governor,
  336  the President of the Senate, the Speaker of the House of
  337  Representatives, the Legislative Budget Commission, the
  338  secretary of the department, and the governing body of each
  339  county in which the district has jurisdiction or derives any
  340  funds for the operations of the district. The tentative budget
  341  must be posted on the water management district’s official
  342  website at least 2 days before budget hearings held pursuant to
  343  s. 200.065 or other law.
  344         (c)(d) The tentative budget shall be based on the
  345  preliminary budget reviewed by the Legislature pursuant to ss.
  346  373.503 and 373.535 and must set forth the proposed expenditures
  347  of the district, to which may be added an amount to be held as
  348  reserve. The tentative budget must include, but is not limited
  349  to, the following information for the preceding fiscal year and
  350  the current fiscal year, and the proposed amounts for the
  351  upcoming fiscal year, in a standard format prescribed by the
  352  Executive Office of the Governor in consultation with the
  353  Legislature:
  354         1. The estimated amount of funds remaining at the beginning
  355  of the fiscal year which have been obligated for the payment of
  356  outstanding commitments not yet completed.
  357         2. The estimated amount of unobligated funds or net cash
  358  balance on hand at the beginning of the fiscal year and an
  359  accounting of the source of the funds and balance, and the
  360  estimated amount of funds to be raised by district taxes or
  361  received from other sources to meet the requirements of the
  362  district.
  363         3. The millage rates and the percentage increase above the
  364  rolled-back rate, together with a summary of the reasons the
  365  increase is required, and the percentage increase in taxable
  366  value resulting from new construction within the district.
  367         4. The salaries and benefits, expenses, operating capital
  368  outlay, number of authorized positions, and other personal
  369  services for the following program areas of the district:
  370         a. Water resource planning and monitoring;
  371         b. Land acquisition, restoration, and public works;
  372         c. Operation and maintenance of works and lands;
  373         d. Regulation;
  374         e. Outreach for which the information provided must contain
  375  a full description and accounting of expenditures for water
  376  resources education; public information and public relations,
  377  including public service announcements and advertising in any
  378  media; and lobbying activities related to local, regional, state
  379  and federal governmental affairs, whether incurred by district
  380  staff or through contractual services; and
  381         f. Management and administration.
  382  
  383  In addition to the program areas reported by all water
  384  management districts, the South Florida Water Management
  385  District shall include in its budget document separate sections
  386  on all costs associated with the Everglades Construction Project
  387  and the Comprehensive Everglades Restoration Plan.
  388         5. The total estimated amount in the district budget for
  389  each area of responsibility listed in subparagraph 4. and for
  390  water resource, water supply, and alternative water supply
  391  development projects identified in the district’s regional water
  392  supply plans.
  393         6. A description of each new, expanded, reduced, or
  394  eliminated program.
  395         7. The funding sources, including, but not limited to, ad
  396  valorem taxes, Surface Water Improvement and Management Program
  397  funds, other state funds, federal funds, and user fees and
  398  permit fees for each program area.
  399         (d)(e) The Executive Office of the Governor shall annually,
  400  on or before December 15, file with the Legislature a report
  401  that summarizes its review of the water management districts’
  402  tentative budgets and displays the adopted budget allocations by
  403  program area. The report must identify the districts that are
  404  not in compliance with the reporting requirements of this
  405  section. State funds shall be withheld from a water management
  406  district that fails to comply with these reporting requirements.
  407         (6) FINAL BUDGET; ANNUAL AUDIT; CAPITAL IMPROVEMENTS PLAN;
  408  WATER RESOURCE DEVELOPMENT WORK PROGRAM.—
  409         (a) Each district must, by the date specified for each
  410  item, furnish copies of the following documents to the Governor,
  411  the President of the Senate, the Speaker of the House of
  412  Representatives, the chairs of all legislative committees and
  413  subcommittees having substantive or fiscal jurisdiction over the
  414  districts, as determined by the President of the Senate or the
  415  Speaker of the House of Representatives as applicable, the
  416  secretary of the department, and the governing board of each
  417  county in which the district has jurisdiction or derives any
  418  funds for the operations of the district:
  419         1. The adopted budget, to be furnished within 10 days after
  420  its adoption.
  421         2. A financial audit of its accounts and records, to be
  422  furnished within 10 days after its acceptance by the governing
  423  board. The audit must be conducted in accordance with the
  424  provisions of s. 11.45 and the rules adopted thereunder. In
  425  addition to the entities named above, the district must provide
  426  a copy of the audit to the Auditor General within 10 days after
  427  its acceptance by the governing board.
  428         3. A 5-year capital improvements plan, to be included in
  429  the consolidated annual report required by s. 373.036(7). The
  430  plan must include expected sources of revenue for planned
  431  improvements and must be prepared in a manner comparable to the
  432  fixed capital outlay format set forth in s. 216.043.
  433         4. A 5-year water resource development work program to be
  434  furnished within 30 days after the adoption of the final budget.
  435  The program must describe the district’s implementation strategy
  436  and funding plan for the water resource, water supply, and
  437  alternative water supply development components component of
  438  each approved regional water supply plan developed or revised
  439  under s. 373.709. The work program must address all the elements
  440  of the water resource, water supply, and alternative water
  441  supply development components component in the district’s
  442  approved regional water supply plans and must identify which
  443  projects in the work program which will provide water;, explain
  444  how each water resource, water supply, and alternative water
  445  supply development project will produce additional water
  446  available for consumptive uses;, estimate the quantity of water
  447  to be produced by each project;, and provide an assessment of
  448  the contribution of the district’s regional water supply plans
  449  in providing sufficient water needed to timely meet the water
  450  supply needs of existing and future reasonable-beneficial uses
  451  for a 1-in-10-year drought event.
  452         (b) Within 30 days after its submittal, the department
  453  shall review the proposed work program and submit its findings,
  454  questions, and comments to the district. The review must include
  455  a written evaluation of the program’s consistency with the
  456  furtherance of the district’s approved regional water supply
  457  plans, and the adequacy of proposed expenditures. As part of the
  458  review, the department shall give interested parties the
  459  opportunity to provide written comments on each district’s
  460  proposed work program. Within 45 days after receipt of the
  461  department’s evaluation, the governing board shall state in
  462  writing to the department which of the changes recommended in
  463  the evaluation it will incorporate into its work program
  464  submitted as part of the March 1 consolidated annual report
  465  required by s. 373.036(7) or specify the reasons for not
  466  incorporating the changes. The department shall include the
  467  district’s responses in a final evaluation report and shall
  468  submit a copy of the report to the Governor, the President of
  469  the Senate, and the Speaker of the House of Representatives.
  470         (c)(b) If any entity listed in paragraph (a) provides
  471  written comments to the district regarding any document
  472  furnished under this subsection, the district must respond to
  473  the comments in writing and furnish copies of the comments and
  474  written responses to the other entities.
  475         (d)(c) The final adopted budget must be posted on the water
  476  management district’s official website within 30 days after
  477  adoption.
  478         Section 4. This act shall take effect July 1, 2012.