The Southwest Florida Water Management District encompasses a 16–county area in west central Florida and is one of five regional water management districts governed by Chapter 373, Florida Statutes, “Water Resources,” and Chapter 200, Florida Statutes, “Determination of Millage.”

The mission of the District is to manage and protect the public’s water–related resources. It accomplishes its mission through programs in four areas: water supply, flood protection, water quality and natural systems. Budgeting for the District’s mission in the public interest is a continuous process, with many opportunities for public input on budgetary planning and accountability for the expenditure of funds.

Defined in its most general sense, a budget is a financial plan allocating resources to carry out programmatic priorities for a given period of time. The District prepares, adopts and carries out an annual budget plan for a statutory fiscal year, which runs from Oct. 1 through Sept. 30, consistent with Florida Statutes, Chapter 200. The annual budget authorizes and provides the financial resources necessary to carry out the District’s mission. The District’s accounting process and annual financial audits are the basis for control of financial operations during the fiscal year. The District’s financial accounting system is used to record and maintain effective budgetary control and accountability. Since 1997, Florida Statutes require the Executive Office of the Governor to review all water management district budgets before final approval by the Governing Board and each Basin Board.

An annual budget is prepared for all of the governmental and applicable fiduciary funds of the District and basins. Governmental funds are used to account for the District’s general government activities, including the collection and disbursement of restricted funds and the acquisition and construction of general fixed assets. The District’s governmental funds consist of a General Fund, Special Revenue Funds and Capital Projects Funds. Fiduciary funds account for assets held by the District in a trustee capacity, or as an agent for individuals, private organizations, other governmental units and/or other funds. The District’s Fiduciary Fund, which requires an annual budget, established the expendable trust fund for the Partnership Agreement in fiscal year 1999.

Generating the Revenues

As an independent special taxing district, the District is authorized by the state Legislature, pursuant to a constitutional amendment, to fund its general operations from ad valorem taxes and fees. The District’s Governing Board may levy up to one–half mill for operational and capital costs Districtwide. In addition, each of its eight Basin Boards may assess up to one–half mill for local water management projects. One mill is equal to $1 of tax per $1,000 of appraised property value. Historically, the millage rates levied by the District’s Governing Board and the eight Basin Boards have remained well below the amounts authorized by statute. The millage rate levied by the District’s Governing Board has remained unchanged at 0.422 mills from fiscal year 1994 through fiscal year 2001. The millage rates of the basin boards have either decreased or remained unchanged from fiscal year 1995 through fiscal year 2001. A ninth basin, the Green Swamp Basin, has no millage except as provided by the Governing Board. The Governing Board serves as the Basin Board for the Green Swamp because of its hydrological significance.

Ad valorem taxes are the primary revenue source of the District. However, in addition to ad valorem taxes, the District also receives revenue from various other sources: permit fees; federal, state, and local funding programs; and interest earned on invested funds.

The General Fund is the District’s general operating fund and accounts for all financial resources of the District, except those required to be accounted for in another fund. The General Fund is used to finance the District support functions; the District regulatory or permitting functions in the areas of water use, surface water management, well construction and enforcement activities; and Districtwide programs, such as the development of sustainable alternative water sources through the New Water Sources Initiative (NWSI) program established in 1994, and the Water Resources Development Reserves in 2001.

The NWSI program provides a financial incentive for local governments to develop alternative water sources, such as seawater desalination and recycled water. More than 80 percent of the water used in the District is supplied by underground aquifers, which are replenished by rainfall. Alternative sources are necessary in order to reduce our dependence on ground water. NWSI project costs are shared by the District’s Governing Board and Basin Boards, and local governments. In 1998, funds from the NWSI program were pledged through 2007 to provide $183 million to Tampa Bay Water through the Partnership Agreement in Northern Tampa Bay to help finance 85 million gallons of water a day (mgd) to include sustainable alternative supply development, such as seawater desalination, while reducing groundwater pumping from 158 mgd to 90 mgd by 2007.

Special Revenue Funds account for the proceeds of specific revenue sources that are legally restricted to finance specific purposes. These specific purposes include the individual budgets for the eight Basin Boards and the Surface Water Improvement and Management (SWIM) program.

Divided along surface water boundaries, Basin Boards work with local government to identify and help solve local water issues. Their budgets are funded through ad valorem taxes that are assessed within each specific basin. Basin Board budgets include funding for the NWSI program, as well as the Cooperative Funding Program. Through the Cooperative Funding Program, local governments, industries, private utilities and others recommend projects that address local water issues. Funding for chosen projects usually is shared equally between the Basin Board and the local “cooperator.” Through the leveraged use of Cooperative Funding projects that include reclaimed water systems, conservation programs, stormwater management, flood protection and education programs, the District is able to assist in the reduction of demand.

The SWIM program was established by the Florida Legislature in 1987 to improve and protect the water quality and natural systems of lakes, rivers, and estuaries of regional significance. It does this through habitat restoration and projects to improve the quality of storm water before it flows into larger water bodies. SWIM projects are funded through a variety of sources: the state’s Ecosystems Management Restoration Trust Fund, the state’s Water Management Lands Trust Fund (commonly known as the Save Our Rivers program), the state Florida Forever Program, state and federal grants, local government matching funds, and the Basin Board budgets for projects within their basins.

Capital Projects Funds account for the acquisition or construction of major capital projects. This includes the District’s land acquisition program. The District purchases land to preserve and protect water resources. As of 2000, the District protects more than 370,000 acres of land acquired in fee simple and conservation easement agreements. More than 95 percent of the lands acquired by the District in fee simple are open to the public for recreational activities such as hiking, canoeing, horseback riding, camping or fishing. More than 2 million people enjoy the recreational opportunities on these lands annually. Funds for land acquisitions and land management activities come from the Water Management Lands Trust Fund and the Florida Preservation 2000 Trust Fund, and do not impact millage rates. The Florida Forever program provide funding starting in 2001.

The Capital Projects Fund also includes funding for the Four River Basins, Florida Project. The District is the designated local sponsor in this federal grant program through the U.S. Army Corps of Engineers. In the 1960s, the Four River Basins, Florida Project constructed four federal flood protection facilities, which the District is responsible for operating. These structures can be opened to help reduce flooding in the Tsala Apopka Chain of Lakes in Citrus County, Masaryktown in Hernando and north Pasco counties, Lake Tarpon in northern Pinellas County, and portions of the city of Tampa. This program does not impact millage rates.

The Capital Projects Fund also includes funds for renovating existing facilities or constructing new facilities. Ad valorem tax revenue is used to support these types of improvements. This Water Management District does not have any bonded debt.

Expendable Trust Funds account for assets held by a governmental unit in a trustee capacity.

The District’s newly established Expendable Trust Fund resulted from the execution of the Northern Tampa Bay New Water Supply and Ground Water Withdrawal Reduction Agreement (Partnership Agreement). The Partnership Agreement is between Tampa Bay Water (formerly known as West Coast Regional Water Supply Authority), Hillsborough, Pasco and Pinellas counties, the cities of New Port Richey, St. Petersburg and Tampa, and the District.

The objectives of this agreement are to develop water supplies, reduce groundwater pumpage, end litigation among the parties, and provide District financial assistance to Tampa Bay Water through the District’s NWSI program.

The Partnership Agreement required that the District establish a trust account where the District’s funds could be managed and disbursed by a third–party trustee. The District has committed to depositing annual installments through fiscal year 2007 totaling $183 million. In December 1998, the District transferred $43,737,663 to the trust account for the initial installment. This initial installment was funded through ad valorem taxes received prior to fiscal year 1999 that had been earmarked for the NWSI program. The remaining annual installments will be made on April 1 of each fiscal year thereafter, funded by ad valorem taxes earmarked for the NWSI program, less interest earnings earned from the trust account. Funds will be disbursed to Tampa Bay Water by the trustee following the District’s review and approval of each draw request for specific projects.

The Partnership Agreement ushered in a new, cooperative approach to resolving water supply problems, protecting water resources systems, meeting the area’s water needs, and providing the stability necessary to ensure continued economic growth.

Accountability to the Public

Florida Statutes ensure water management district accountability in the following ways:

On or before July 15, the Executive Director, as District Budget Officer, and staff submit a tentative budget for the coming fiscal year to the District’s Governing Board. The District makes public notice of all budget hearings and utilizes the District Web site to provide the public with access to budget information. Additionally, the monthly Governing Board and the bi–monthly Basin Board meetings are open to the public.

Pursuant to Section 373.536(5), Florida Statutes, the Executive Office of the Governor is authorized to approve or disapprove the District’s budget, in whole or in part. On or before Aug. 1, the District submits the tentative budget to the Governor, the President of the Senate, the Speaker of the House of Representatives, the chairs of all legislative committees and subcommittees with substantive or fiscal jurisdiction over the District, the secretary of the Florida Department of Environmental Protection, and the governing body of each county in which the District has jurisdiction or derives any funds for the operations of the District.

As part of the budget review process, the office of the Governor reviews the proposed five–year water resource development work program. The review includes a written evaluation of its consistency with and furtherance of the District’s approved regional water supply plans and adequacy of proposed expenditures. At least seven days prior to the adoption of the District’s final budget, the District’s Governing Board states in writing to the Executive Office of the Governor which changes recommended in the evaluation it will incorporate into its work program or specifies the reasons for not incorporating the changes. The Office of the Governor includes the District’s responses in the written evaluation and submits a copy of the evaluation to the Legislature.

By Sept. 5 of the year in which the budget is submitted, the House and Senate appropriations chairs may transmit to the District any comments and objections to the proposed budget. The Governing Board’s response to such comments and objections, if any, is included in the record of the Governing Board meeting when final adoption of the budget takes place. The record of this meeting is then transmitted to the Executive Office of the Governor, the Department of Environmental Protection, and the chairs of the House and Senate appropriations committees.

In accordance with the state Truth In Millage (TRIM) process, the District notifies the public of two public hearings on the budget in September to obtain taxpayer comments. The budget may be amended and is tentatively adopted during the first public hearing. The budget may be amended and is finally adopted during the second public hearing.

The budget is legally enacted through adoption of a resolution.

The District must conduct third–party financial and compliance audits annually. The District also maintains a full–time Office of Inspector General with internal auditors who answer directly to the Governing Board.

The Government Finance Officers Association has awarded the District with the Certificate of Achievement for Excellence in Financial Reporting for the last 11 consecutive years. This award recognizes that the District’s comprehensive annual financial report is easily readable, efficiently organized, and conforms with the highest standards of preparation for state and local government financial reports.

The Southwest Florida Water Management District is committed to its mission of protecting and managing water and water–related resources for the public. The District is equally committed to its responsibility to use public tax dollars wisely. The public is encouraged to become involved in water management issues. Please call the District at 1–800–423–1476 for more information, or check the District’s Web site at WaterMatters.org.

August 2001

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