SB 1986                                          First Engrossed
       
       
       
       
       
       
       
       
       20121986e1
       
    1                        A bill to be entitled                      
    2         An act relating to water management districts;
    3         amending s. 373.503, F.S.; authorizing the Legislature
    4         to set the maximum millage rate for each district;
    5         removing a provision requiring that the maximum
    6         property tax revenue for water management districts
    7         revert to the amount authorized for the prior year if
    8         the Legislature does not set the amount; removing the
    9         maximum revenues for the 2011-2012 fiscal year;
   10         creating s. 373.535, F.S.; requiring the Executive
   11         Office of the Governor to annually submit a
   12         preliminary budget for each water management district
   13         to the Legislature for review; providing criteria for
   14         legislative review; authorizing the Legislature to set
   15         the maximum amount of property tax revenue that may be
   16         raised or the maximum millage rate that may be levied
   17         to fund specified program areas; providing that the
   18         preliminary budget reviewed by the Legislature is the
   19         basis for developing each district’s tentative budget
   20         for the next fiscal year; providing limitations on the
   21         authority of a district to fund proposed expenditures
   22         for the next fiscal year; amending s. 373.536, F.S.;
   23         requiring that budget amendments greater than a
   24         certain amount be reviewed and approved by the
   25         Executive Office of the Governor, which must notify
   26         the Legislative Budget Commission of such approval;
   27         requiring a district to provide a description of the
   28         budget control mechanisms to the Executive Office of
   29         the Governor for approval; providing that, upon
   30         providing notice to the Legislative Budget Commission,
   31         a water management district may amend unanticipated
   32         funds into its final budget; requiring the Executive
   33         Office of the Governor and the Legislative Budget
   34         Commission to be notified if a district governing
   35         board expends funds for a disaster or emergency;
   36         delaying the date that a district must begin providing
   37         a monthly financial statement to its governing board;
   38         removing obsolete provisions relating to review and
   39         approval of the tentative budget of a water management
   40         district; providing criteria for the Legislative
   41         Budget Commission to use in approving the tentative
   42         budget of a district; directing the Chief Financial
   43         Officer to withhold state funds from a district that
   44         includes disapproved provisions in its tentative
   45         budget; revising components to be included in a
   46         district’s tentative budget; deleting the requirement
   47         that the Executive Office of the Governor annually
   48         file a report that summarizes its review of the water
   49         management districts’ tentative budgets and submit the
   50         report with the Legislature; amending s. 373.605,
   51         F.S.; authorizing the governing board of a water
   52         management district to provide group insurance for its
   53         employees and the employees of another water
   54         management district; providing an effective date.
   55  
   56  Be It Enacted by the Legislature of the State of Florida:
   57  
   58         Section 1. Subsection (4) of section 373.503, Florida
   59  Statutes, is amended to read:
   60         373.503 Manner of taxation.—
   61         (4)(a) To ensure that taxes authorized by this chapter
   62  continue to be in proportion to the benefits derived by the
   63  parcels of real estate within the districts, the Legislature
   64  shall annually review the preliminary budget for each district
   65  for the next fiscal year as provided in s. 373.535 and the
   66  authorized millage rate for each district. Based upon the this
   67  review, the Legislature may shall set the authorized maximum
   68  millage rate or the maximum amount of property tax revenue to be
   69  raised by each district in the next fiscal year from the taxes
   70  levied. Except as provided in paragraph (b), if the annual
   71  maximum amount of property tax revenue is not set by the
   72  Legislature on or before July 1 of each year, the maximum
   73  property tax revenue that may be raised reverts to the amount
   74  authorized in the prior year.
   75         (b) For the 2011-2012 fiscal year, the total ad valorem
   76  taxes levied may not exceed $3,946,969 for the Northwest Florida
   77  Water Management District, $5,412,674 for the Suwannee River
   78  Water Management District, $85,335,619 for the St. Johns Water
   79  Management District, $107,766,957 for the Southwest Florida
   80  Water Management District, and $284,901,967 for the South
   81  Florida Water Management District.
   82         Section 2. Section 373.535, Florida Statutes, is created to
   83  read:
   84         373.535 Preliminary district budgets.—
   85         (1) BUDGET DEVELOPMENT.—
   86         (a) By January 15 of each year, the Executive Office of the
   87  Governor shall submit a preliminary budget for each water
   88  management district for the next fiscal year for legislative
   89  review to the President of the Senate, the Speaker of the House
   90  of Representatives, and the chairs of all legislative committees
   91  and subcommittees having substantive or fiscal jurisdiction over
   92  water management districts, as determined by the President of
   93  the Senate or the Speaker of the House of Representatives, as
   94  applicable, in the form and manner prescribed in s.
   95  373.536(5)(d). Each preliminary budget must also include:
   96         1. A section that clearly identifies and provides
   97  justification for each proposed expenditure listed in s.
   98  373.536(5)(d)4.e.-f. and identifies the source of funds for each
   99  proposed expenditure.
  100         2. A section identifying the justification for proposed
  101  expenditures by core mission area of responsibility and the
  102  source of funds needed for activities related to water supply,
  103  including alternative water supply and water resource
  104  development projects identified in the district’s regional water
  105  supply plans, water quality, flood protection and floodplain
  106  management, and natural systems.
  107         3. A section reviewing the adopted and proposed budget
  108  allocations by program area and the performance metrics for the
  109  prior year.
  110         4. An analysis of each preliminary budget to determine the
  111  adequacy of fiscal resources available to the district and the
  112  adequacy of proposed district expenditures related to the core
  113  mission areas of responsibility for water supply, including
  114  alternative water supply and water resource development projects
  115  identified in the district’s regional water supply plans, water
  116  quality, flood protection and floodplain management, and natural
  117  systems. The analysis must be based on the particular needs
  118  within each district for core mission areas of responsibility.
  119  The water supply analysis must specifically include a
  120  determination of the adequacy of each district’s fiscal
  121  resources provided in the district’s preliminary budget to
  122  achieve appropriate progress toward meeting the districtwide 20
  123  year projected water supply demands, including funding for
  124  alternative water supply development and conservation projects.
  125         (b) By February 15 of each year, the President of the
  126  Senate and the Speaker of the House of Representatives may
  127  submit any comments regarding the preliminary budget to the
  128  districts, and provide a copy of the comments to the Executive
  129  Office of the Governor. Each district shall respond to such
  130  comments in writing by the following March 1 to the President of
  131  the Senate, the Speaker of the House of Representatives, and the
  132  Executive Office of the Governor.
  133         (2) LEGISLATIVE REVIEW AND APPROVAL.—
  134         (a) The Legislature shall annually review each portion of
  135  the preliminary budget for each district for those items listed
  136  in s. 373.536(5)(d)4.e.-f. specific to outreach, management, and
  137  administration program areas. After such review, the Legislature
  138  may set a maximum amount of property tax revenue that may be
  139  raised or the maximum millage rate that may be levied to fund
  140  these program areas. The revenue limit or millage rate
  141  authorized for these program areas may not exceed 20 percent of
  142  a district’s total preliminary budget. If the Legislature does
  143  not take any action to set a maximum amount of property tax
  144  revenue that may be raised or set a maximum millage rate that
  145  may be levied, the preliminary budget is deemed approved.
  146         (b) If applicable, the preliminary budget for each district
  147  must specify that the district’s first obligation for payment is
  148  the debt service on bonds and certificates of participation.
  149         (c) The Legislature may also review any other portion of
  150  each district’s preliminary budget. If the Legislature does not
  151  take any action pursuant to this review, those other portions of
  152  the preliminary budget are deemed approved.
  153         (3) FUNDING AUTHORITY GRANTED.—
  154         (a) Each district shall use the preliminary budget as
  155  reviewed, and as may be amended, by the Legislature pursuant to
  156  this section and s. 373.503 as the basis for developing the
  157  tentative budget for the next fiscal year as provided in s.
  158  373.536(5).
  159         (b) The Legislature’s action or approval pursuant to
  160  subsection (2) or the action by the Governor or Legislative
  161  Budget Commission pursuant to s. 373.536(4) and (5) constitutes
  162  the only authority for a district to fund proposed expenditures
  163  for the next fiscal year. A district may not include in its
  164  tentative budget or expend any funds from any source for its
  165  programs and activities during the next fiscal year without such
  166  authorization.
  167         Section 3. Subsections (4), (5), and (6) of section
  168  373.536, Florida Statutes, are amended to read:
  169         373.536 District budget and hearing thereon.—
  170         (4) BUDGET CONTROLS; FINANCIAL INFORMATION.—
  171         (a) The final adopted budget for the district is will
  172  thereupon be the operating and fiscal guide for the district for
  173  the ensuing year; however, transfers of funds may be made within
  174  the budget by action of the governing board at a public meeting
  175  of the governing board. Budget amendments greater than $1
  176  million must be reviewed and approved by the Executive Office of
  177  the Governor. The office shall provide notice of approval to the
  178  Legislative Budget Commission.
  179         (b) The district shall control its budget, at a minimum, by
  180  funds and shall submit provide to the Executive Office of the
  181  Governor a description of its budget control mechanisms for
  182  approval.
  183         (c) If Should the district receives receive unanticipated
  184  funds after the adoption of the final budget, the final budget
  185  may be amended, following review and approval by the Executive
  186  Office of the Governor, by including such funds, if so long as
  187  notice of intention to amend is provided to the Legislative
  188  Budget Commission and is published in the Notice of the
  189  governing board meeting at which the amendment will be
  190  considered, pursuant to s. 120.525. The notice must shall set
  191  forth a summary of the proposed amendment.
  192         (d)However, In the event of a disaster or of an emergency
  193  arising to prevent or avert the same, the governing board is
  194  shall not be limited by the budget but may expend shall have
  195  authority to apply such funds as may be available for the
  196  disaster or emergency therefor or as may be procured for such
  197  purpose. In such an event, the governing board shall notify the
  198  Executive Office of the Governor and the Legislative Budget
  199  Commission as soon as practical, but within 30 days after the
  200  governing board’s action.
  201         (e)(d) By September 1, 2012 2011, each water management
  202  district shall provide a monthly financial statement in the form
  203  and manner prescribed by the Department of Financial Services to
  204  the district’s its governing board and make such monthly
  205  financial statement available for public access on its website.
  206         (5) TENTATIVE BUDGET CONTENTS AND SUBMISSION; REVIEW AND
  207  APPROVAL.—
  208         (a) The Executive Office of the Governor may approve or and
  209  the Legislative Budget Commission are authorized to disapprove,
  210  in whole or in part, the budget of each water management
  211  district. The Executive Office of the Governor shall analyze
  212  each budget as to the adequacy of fiscal resources available to
  213  the district and the adequacy of district expenditures related
  214  to water supply, including water resource development projects
  215  identified in the district’s regional water supply plans; water
  216  quality; flood protection and floodplain management; and natural
  217  systems. This analysis shall be based on the particular needs
  218  within each water management district in those four areas of
  219  responsibility and shall be provided to the Legislative Budget
  220  Commission.
  221         (b) The Executive Office of the Governor, the Legislative
  222  Budget Commission, and the water management districts shall
  223  develop a process to facilitate review and communication
  224  regarding the tentative budgets of districts water management
  225  district budgets, as necessary. If the commission determines
  226  that a district’s tentative budget has been significantly
  227  modified from a preliminary budget reviewed by the Legislature
  228  pursuant to s. 373.535, the commission may review, and may
  229  disapprove, any part of the tentative budget. Unless otherwise
  230  authorized by the Legislature in the preliminary budget review
  231  conducted pursuant to s. 373.535, a district budget proposal
  232  that includes any of the following requires prior approval by
  233  the commission:
  234         1. Except for land exchanges, any single purchase of land
  235  in excess of $10 million.
  236         2. Any cumulative purchase of land during a single fiscal
  237  year in excess of $50 million.
  238         3. Any issuance of debt on or after July 1, 2012.
  239         4. Program expenditures as described in sub-subparagraphs
  240  (d)4.e.-f. in excess of 20 percent of a district’s total annual
  241  budget.
  242  
  243  Written disapproval of any provision in the tentative budget
  244  must be received by the district at least 5 business days before
  245  prior to the final district budget adoption hearing conducted
  246  under s. 200.065(2)(d). If written disapproval of any portion of
  247  the budget is not received at least 5 business days before prior
  248  to the final budget adoption hearing, the governing board may
  249  proceed with final adoption. Any provision rejected by the
  250  Executive Office of the Governor or the Legislative Budget
  251  Commission may shall not be included in a district’s final
  252  budget and may not be acted upon through any other means without
  253  the prior approval of the entity rejecting the provision. Upon
  254  the written request of the Governor or the commission, the Chief
  255  Financial Officer shall withhold state funds from a district
  256  that fails to comply with these requirements.
  257         (c) Each water management district shall, by August 1 of
  258  each year, submit for review a tentative budget to the Governor,
  259  the President of the Senate, the Speaker of the House of
  260  Representatives, the Legislative Budget Commission, the
  261  secretary of the department, and the governing body of each
  262  county in which the district has jurisdiction or derives any
  263  funds for the operations of the district. The tentative budget
  264  must be posted on the water management district’s official
  265  website at least 2 days before budget hearings held pursuant to
  266  s. 200.065 or other law.
  267         (d) The tentative budget must be based on the preliminary
  268  budget as reviewed, and as may be amended, by the Legislature
  269  pursuant to ss. 373.503 and 373.535, and must set forth the
  270  proposed expenditures of the district, to which may be added an
  271  amount to be held as reserve. The tentative budget must include,
  272  but is not limited to, the following information for the
  273  preceding fiscal year and the current fiscal year, and the
  274  proposed amounts for the upcoming fiscal year, in a standard
  275  format prescribed by the Executive Office of the Governor, in
  276  consultation with the Legislature:
  277         1. The estimated amount of funds remaining at the beginning
  278  of the fiscal year which have been obligated for the payment of
  279  outstanding commitments not yet completed.
  280         2. The estimated amount of unobligated funds or net cash
  281  balance on hand at the beginning of the fiscal year, an
  282  accounting of the source, balance, and projected future use of
  283  the unobligated funds, and the estimated amount of funds to be
  284  raised by district taxes or received from other sources to meet
  285  the requirements of the district.
  286         3. The millage rates and the percentage increase above the
  287  rolled-back rate, together with a summary of the reasons the
  288  increase is required, and the percentage increase in taxable
  289  value resulting from new construction within the district.
  290         4. The salaries and benefits, expenses, operating capital
  291  outlay, number of authorized positions, and other personal
  292  services for the following program areas of the district:
  293         a. Water resource planning and monitoring;
  294         b. Land acquisition, restoration, and public works;
  295         c. Operation and maintenance of works and lands;
  296         d. Regulation;
  297         e. Outreach for which the information provided must contain
  298  a full description and accounting of expenditures for water
  299  resources education; public information and public relations,
  300  including public service announcements and advertising in any
  301  media; and lobbying activities related to local, regional, state
  302  and federal governmental affairs, whether incurred by district
  303  staff or through contractual services; and
  304         f. Management and administration.
  305  
  306  In addition to the program areas reported by all water
  307  management districts, the South Florida Water Management
  308  District shall include in its budget document separate sections
  309  on all costs associated with the Everglades Construction Project
  310  and the Comprehensive Everglades Restoration Plan.
  311         5. The total estimated amount in the district budget for
  312  each area of responsibility listed in subparagraph 4. and for
  313  water resource, water supply, and alternative water supply
  314  development projects identified in the district’s regional water
  315  supply plans.
  316         6. A description of each new, expanded, reduced, or
  317  eliminated program.
  318         7. The funding sources, including, but not limited to, ad
  319  valorem taxes, Surface Water Improvement and Management Program
  320  funds, other state funds, federal funds, and user fees and
  321  permit fees for each program area.
  322         (e) The Executive Office of the Governor shall annually, on
  323  or before December 15, file with the Legislature a report that
  324  summarizes its review of the water management districts’
  325  tentative budgets and displays the adopted budget allocations by
  326  program area. The report must identify the districts that are
  327  not in compliance with the reporting requirements of this
  328  section. State funds shall be withheld from a water management
  329  district that fails to comply with these reporting requirements.
  330         (6) FINAL BUDGET; ANNUAL AUDIT; CAPITAL IMPROVEMENTS PLAN;
  331  WATER RESOURCE DEVELOPMENT WORK PROGRAM.—
  332         (a) Each district must, by the date specified for each
  333  item, furnish copies of the following documents to the Governor,
  334  the President of the Senate, the Speaker of the House of
  335  Representatives, the chairs of all legislative committees and
  336  subcommittees having substantive or fiscal jurisdiction over the
  337  districts, as determined by the President of the Senate or the
  338  Speaker of the House of Representatives as applicable, the
  339  secretary of the department, and the governing board of each
  340  county in which the district has jurisdiction or derives any
  341  funds for the operations of the district:
  342         1. The adopted budget, to be furnished within 10 days after
  343  its adoption.
  344         2. A financial audit of its accounts and records, to be
  345  furnished within 10 days after its acceptance by the governing
  346  board. The audit must be conducted in accordance with the
  347  provisions of s. 11.45 and the rules adopted thereunder. In
  348  addition to the entities named above, the district must provide
  349  a copy of the audit to the Auditor General within 10 days after
  350  its acceptance by the governing board.
  351         3. A 5-year capital improvements plan, to be included in
  352  the consolidated annual report required by s. 373.036(7). The
  353  plan must include expected sources of revenue for planned
  354  improvements and must be prepared in a manner comparable to the
  355  fixed capital outlay format set forth in s. 216.043.
  356         4. A 5-year water resource development work program to be
  357  furnished within 30 days after the adoption of the final budget.
  358  The program must describe the district’s implementation strategy
  359  and funding plan for the water resource, water supply, and
  360  alternative water supply development components component of
  361  each approved regional water supply plan developed or revised
  362  under s. 373.709. The work program must address all the elements
  363  of the water resource, water supply, and alternative water
  364  supply development components component in the district’s
  365  approved regional water supply plans and must identify which
  366  projects in the work program which will provide water;, explain
  367  how each water resource, water supply, and alternative water
  368  supply development project will produce additional water
  369  available for consumptive uses;, estimate the quantity of water
  370  to be produced by each project;, and provide an assessment of
  371  the contribution of the district’s regional water supply plans
  372  in providing sufficient water needed to timely meet the water
  373  supply needs of existing and future reasonable-beneficial uses
  374  for a 1-in-10-year drought event.
  375         (b) Within 30 days after its submittal, the department
  376  shall review the proposed work program and submit its findings,
  377  questions, and comments to the district. The review must include
  378  a written evaluation of the program’s consistency with the
  379  furtherance of the district’s approved regional water supply
  380  plans, and the adequacy of proposed expenditures. As part of the
  381  review, the department shall give interested parties the
  382  opportunity to provide written comments on each district’s
  383  proposed work program. Within 45 days after receipt of the
  384  department’s evaluation, the governing board shall state in
  385  writing to the department which of the changes recommended in
  386  the evaluation it will incorporate into its work program
  387  submitted as part of the March 1 consolidated annual report
  388  required by s. 373.036(7) or specify the reasons for not
  389  incorporating the changes. The department shall include the
  390  district’s responses in a final evaluation report and shall
  391  submit a copy of the report to the Governor, the President of
  392  the Senate, and the Speaker of the House of Representatives.
  393         (c)(b) If any entity listed in paragraph (a) provides
  394  written comments to the district regarding any document
  395  furnished under this subsection, the district must respond to
  396  the comments in writing and furnish copies of the comments and
  397  written responses to the other entities.
  398         (d)(c) The final adopted budget must be posted on the water
  399  management district’s official website within 30 days after
  400  adoption.
  401         Section 4. Section 373.605, Florida Statues, is amended to
  402  read:
  403         373.605 Group insurance for water management districts.—
  404         (1) The governing board of a any water management district
  405  may is hereby authorized and empowered to provide group
  406  insurance for its employees, or its employees and the employees
  407  of another water management district, in the same manner and
  408  with the same provisions and limitations authorized for other
  409  public employees under by ss. 112.08, 112.09, 112.10, 112.11,
  410  and 112.14.
  411         (2) Any and all insurance agreements in effect as of
  412  October 1, 1974, which conform to the provisions of this section
  413  are hereby ratified.
  414         Section 5. This act shall take effect July 1, 2012.