Standard Format Tentative Budget Submission

Transcription

1 Southwest Florida Water Management District Fiscal Year Standard Format Tentative Budget Submission Pursuant to Section , Florida Statutes August 1, 213

2 The Southwest Florida Water Management District (District) does not discriminate on the basis of disability. This nondiscrimination policy involves every aspect of the District's functions, including access to and participation in the District's programs and activities. Anyone requiring reasonable accommodation as provided for in the Americans with Disabilities Act should contact the District's Human Resources Bureau Chief, 2379 Broad Street, Brooksville, Florida ; telephone (352) , ext. 472 or (FL only), ext. 472; TDD (FL only) ; or to

3 August 1, 213 The Honorable Rick Scott Governor, State of Florida The Capitol 4 South Monroe Street Tallahassee, Florida Subject: Southwest Florida Water Management District Standard Format Tentative Budget Submission for Fiscal Year Dear Governor Scott: We are pleased to submit the Southwest Florida Water Management District s (District) tentative budget for fiscal year (FY) in the amount of $17.8 million, a 7 percent increase over the current year. The proposed revenue budget includes $11.5 million in ad valorem property tax revenue. The District reduced the millage rate from.3928 mill to.3818 mill, a reduction of 2.8 percent. One hundred percent of the revenue increase is applied to cooperatively-funded projects and, if approved, 56 percent of the total District budget will be invested in projects designed to expand and protect Florida s water resources. This year the District elevated its investment in projects, continued to reduce operating expenditures and cut taxes. Over the past two years, the District has reduced operating expenditures by 2 percent. The proposed budget includes $95.8 million for capital/infrastructure, this is $12.1 million above the current year. The District s funds leveraged with its partners will result in a total investment of over $138 million for water resource management projects benefitting the region. The District increased its efforts in restoring water quality by adding $5.3 million to the District s Surface Water Improvement and Management (SWIM) Program for a total proposed budget of $16.3 million for SWIM. To date, the SWIM program and its partners have completed over 15 stormwater projects which provide water quality treatment to over 5, acres and 1 natural system projects that have restored over 6, acres of freshwater, estuarine and upland habitat. As an example, this year the SWIM program and its partners were recognized with a Future of the Region first place award for the Clam Bayou Restoration and Stormwater Treatment project.

4 The Honorable Rick Scott Subject: Southwest Florida Water Management District Standard Format Tentative Budget Submission for Fiscal Year August 1, 213 Page 2 The proposed budget provides $39.9 million for Water Resource projects, which includes $21.9 million for reclaimed water supply projects. Approximately 46 percent of all wastewater generated within the District is reused, saving almost 18 million gallons per day or enough to meet the needs of about 1.5 million people. $7 million is proposed for the Facilitating Agricultural Resource Management Systems (FARMS) program, which is an agricultural best management practice (BMP) cost-share reimbursement program that results in production-scale agricultural projects that increase water availability and improve water quality. Since its inception in FY22-3, the FARMS Program has funded a total of 151 FARMS projects with an estimated annual average daily offset of million gallons per day. The proposed budget also provides $19.4 million for the District s Watershed Management Program which is implemented in partnership with local governments and integrates the District s watershedbased approaches to flood protection, water quality and natural systems protection. $14.1 million is proposed to implement flood protection BMPs. An example is the Pasco County Duck Slough BMPs to address flooding in the Trinity and Thousand Oaks communities experienced after Tropical Storm Debby. The District continues to coordinate with the St. Johns River and South Florida water management districts, the Florida Departments of Environmental Protection (DEP) and Agriculture and Consumer Services (DACS), and public water supply utilities on the assessment of groundwater sustainability and development of water supply and environmental solutions for a five-county area of Central Florida. A collaborative, decision-making process has been established featuring an Executive Steering Committee comprised of one Governing Board member from each District, senior level staff representatives from DEP and DACS, and a public water supply utilities representative. We deliver to you a proposed budget which is within the statutory mandates with one exception; there is one individual variance in the District s tentative budget in excess of 25 percent from the District s preliminary budget. The Outreach Program area is 31 percent less than the District s preliminary budget. This threshold will need further review by the Legislative Budget Commission. All other program areas are within the 25 percent threshold. This budget continues, as the District always has, to operate without debt. Projects funded can be completed timely and will bring jobs to our region and the State of Florida. Please contact David Rathke, Chief of Staff; Robert Beltran, Assistant Executive Director; or me if any additional information is required. We look forward to working with your Executive Office and the DEP as we work toward adoption of the budget on September 24, 213. Sincerely, Blake C. Guillory, P.E. Executive Director BCG:cal Enclosure cc: President of the Senate, Speaker of the House of Representatives, Chairs of all legislative committees and subcommittees having substantive or fiscal jurisdiction over the districts, Secretary of the Department of Environmental Protection, 16 County Commission Chairs, SWFWMD Governing Board

5 Table of Contents Page I. Foreword... 1 II. III. IV. Introduction A) History of Water Management Districts... 3 B) Overview of the District... 4 C) Mission and Guiding Principles of the District... 5 D) Development of the District Budget... 6 E) Budget Guidelines... 8 F) Budget Development Calendar and Milestones... 1 Budget Highlights A) Current Year Accomplishments B) Major Budget Objectives and Priorities C) Adequacy of Fiscal Resources D) Budget Summary 1) Overview ) Source of Funds Three-Year Comparison ) Major Source of Funds Variances ) Source of Funds by Program ) Tentative Millage Rate ) Three-Year Use of Funds by Program ) Major Use of Funds Variances Program and Activity Allocations A) Program and Activity Definitions, Descriptions and Budget B) District Specific Programs (Not Applicable) C) Program Allocations by Area of Responsibility V. Summary of Staffing Levels VI. Performance Measures VII. Basin Budgets (Not Applicable) Appendices A) Terms B) Acronyms C) Project Worksheets D) Related Reports E) Consistency Issues Fiscal Year Contacts

6 I. Foreword To ensure the fiscal accountability of the water management districts, section , Florida Statutes, authorizes the Executive Office of the Governor (EOG) to approve or disapprove water management district (WMD) budgets, in whole or in part. Section also directs the water management districts to submit a tentative budget by August 1 in a standard format prescribed by the EOG. The content and format of this report were developed collaboratively by the staffs of the Governor s Office, Senate, House of Representatives, Department of Environmental Protection and all five water management districts. It utilizes the statutory programs to standardize the accounting between districts. This report has been prepared to satisfy the requirements of section , Florida Statutes. In compliance with statutory requirements, the Southwest Florida Water Management District submitted on June 25, 213, a tentative budget for governing board consideration. The District now submits this August 1 tentative budget for review by the Governor, the President of the Senate, the Speaker of the House of Representatives, the chairs of all legislative committees and subcommittees having substantive or fiscal jurisdiction over water management districts as determined by the President of the Senate or the Speaker of the House of Representatives, as applicable, the Secretary of the 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. The fiscal year tentative budget is scheduled for two public hearings before final adoption. The first hearing will take place on September 1, 213, and the final budget adoption hearing will take place on September 24, 213. Because this August 1 submission is a tentative budget, readers are advised to obtain a copy of the District s final budget when it becomes available after September 24, 213, from the District s website at 1

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8 A. History of Water Management Districts II. Introduction Due to extreme drought and shifting public focus on resource protection and conservation, legislators passed four major laws in 1972; the Environmental Land and Water Management Act, the Comprehensive Planning Act, the Land Conservation Act, and the Water Resources Act. Collectively, these policy initiatives reflected the philosophy that land use, growth management, and water management should be joined. Florida's institutional arrangement for water management is unique in the United States and beyond. The 1972 Water Resources Act (WRA) granted Florida's five water management districts broad authority and responsibility. Two of the five districts existed prior to the passage of the WRA (South Florida and Southwest Florida), primarily as flood control agencies. Today, however, the responsibilities of all five districts encompass four broad categories: water supply (including water allocation and conservation), water quality, natural systems, and flood protection. Regional water management districts, established by the Legislature and recognized in the state Constitution, are set up largely on hydrologic boundaries. Water management districts are funded by ad valorem taxes normally reserved for local governments using taxing authority that emanates from a constitutional amendment passed by Floridians in The water management districts are governed regionally by boards appointed by the Governor and confirmed by the Senate. There is also general oversight at the state level by the Department of Environmental Protection (DEP). Florida water law, embodied largely in Chapter 373 of the Florida Statutes, combines aspects of Western (prior appropriation) and Eastern (riparian) water laws. In Florida, water is a resource of the state, owned by no one individual, with the use of water overseen by water management districts acting in the public interest. The original law recognized the importance of balancing human needs for water with those of Florida s natural systems. This took the form of requiring the establishment of minimum flows and levels for lakes, streams, aquifers and other water bodies, and restrictions on long-distance water transfers. Each of Florida's water management districts has a history that cannot be completely detailed here. Together, these regional special districts work with state agencies and local governments to assure the availability of water supplies for all reasonable and beneficial uses; address water quality issues; protect natural systems in Florida through land acquisition; land management; and ecosystem restoration; and promote flood protection. The reader should review the websites and contact officials at each district for further details. The Southwest Florida Water Management District's website is 3

9 II. Introduction B. Overview of the District The Southwest Florida Water Management District encompasses all or part* of 16 counties along Florida's central west coast. Charlotte* Hernando Levy* Pinellas Citrus Highlands* Manatee Polk* DeSoto Hillsborough Marion* Sarasota 4 Hardee Lake* Pasco Sumter

10 II. Introduction About 17 percent of the state's total area and roughly a quarter of its population (4.7 million) are contained within the Southwest Florida Water Management District (District), which stretches from Levy County in the north, to Charlotte County in the south, and inland as far as Polk and Highlands counties. Several heavily populated and rapidly growing urban areas lie within this approximately 1, square mile area, as does much of Florida's most productive agricultural land and phosphate mining areas. The region also contains the Green Swamp, headwaters for the Peace, Hillsborough, Withlacoochee and Oklawaha rivers, and numerous lakes, springs, streams and ponds. The District is a regional governmental authority (special district) involved in many aspects of water management. The District was created in 1961 by a special act of the Florida Legislature to serve as local sponsor of the Four Rivers Basin, Florida flood-control project designed by the U.S. Army Corps of Engineers. This law was later incorporated into Chapter 373, Florida Statutes. The statute establishes funding and general administrative and operating procedures for all five of Florida's water management districts and mandates their overall responsibilities. Like the other water management districts, this District is independently governed by its Governing Board and works closely with the Executive Office of the Governor (EOG) and the DEP. Since the constitutional amendment in 1976, the districts have been involved in a full spectrum of activities, including water use regulation and permitting; water shortage and water conservation planning; water resource and supply development, and water research assistance; minimum flows and levels; aquatic plant control; hydrologic investigations; land acquisition and management; and public education; as well as structural and non-structural forms of flood control. In 1982, DEP further expanded the districts' duties by delegating public supply well construction and stormwater management permitting. These tasks represented the districts' first direct involvement in water-quality aspects of resource management. Ten years later, DEP delegated dredge and fill permitting activities, which in 1995 were combined with management and storage of surface water permitting activities, to form environmental resource permitting. In 1997, the districts were given the additional requirement of creating a five-year water resource development work program that describes their implementation strategy for the water resource development component of each approved regional water supply plan developed. The District's operations are directed by a 13-member Governing Board. Each member is appointed by the Governor and confirmed by the Florida Senate. Governing Board members are appointed for overlapping four-year terms, are eligible for reappointment, and serve without pay. The Governing Board determines the District's overall policies, executes its statutory and regulatory responsibilities, administers contracts, and authorizes tax levies and budgets with the concurrence of the EOG and the Truth in Millage (TRIM) statutory budgetary hearing process. The Governing Board appoints the District's Executive Director subject to approval by the Governor and confirmation by the Florida Senate. The Governing Board also appoints the District's Inspector General. C. Mission and Guiding Principles of the District The Governing Board has adopted the following formal Mission Statement and has made it an integral part of its overall budget philosophy and structure: "The mission of the Southwest Florida Water Management District is to manage water and related natural resources to ensure their continued availability while maximizing environmental, economic and recreational benefits. Central to the mission is maintaining the balance between the water needs of current and future users while protecting and maintaining water and related natural resources which provide the District with its existing and future water supply. 5

11 II. Introduction In fulfilling its mission, the Governing Board of the District assumes its responsibilities as authorized in Chapter 373 and other chapters of the Florida Statutes. All projects and budgeted programs are dedicated to meeting Strategic Priorities within the four areas of responsibility (AORs). The four AORs and the District s Goals with respect to these AORs include: 1) Water Supply - Ensure an adequate supply of the water resource to provide for all existing and future reasonable and beneficial uses while protecting and maintaining water resources and related natural systems. 2) Water Quality - Protect and improve water quality to sustain the environment, economy and quality of life. 3) Natural Systems - Preserve, protect and restore natural systems in order to support their natural hydrologic and ecologic functions. 4) Flood Protection - Minimize flood damage to protect people, property, infrastructure and investment. D. Development of the District Budget This District s fiscal year runs from October 1 through September 3. The budget development process takes place throughout the fiscal year with the 13 Governing Board members who are appointed by the Governor. On November 27, 212, the Governing Board discussed options for reviewing Cooperative Funding Initiative (CFI) applications for fiscal year , and agreed to continue the use of the four regional subcommittees matching the District s regional water supply planning areas. The regional subcommittees hold local public meetings to ensure the applicants, the public, stakeholders, local governments and others have access to the Board during the evaluation and ranking process. Also, on November 27, the Governing Board approved budget preparation assumptions to be used for development of the District s preliminary budget for fiscal year Following the meeting, the preliminary budget was finalized and the draft preliminary budget report was prepared. The report was provided to the DEP and the EOG on December 1, 212, for review and comment prior to the Governing Board meeting on December 18. On December 18, 212, the Governing Board approved the preliminary fiscal year budget for submission to the Legislature on or before January 15, 213. Any comments from the DEP or the EOG were communicated to the Board at the meeting. On January 29, 213, the Governing Board approved the final budget development calendar and any revisions to the process or assumptions for development of the budget for fiscal year In February 213, the four regional subcommittees held their first budget meetings to review the fiscal year cooperative funding requests submitted by the cooperators within the region. The purpose of these meetings is to allow the public an opportunity to provide input locally, and for Board members to ask questions of the applicants and staff. In April, the four regional subcommittees held their final budget meetings. Applicants were given the opportunity to address the subcommittees regarding their projects and rankings. At the conclusion of the meetings, the subcommittees finalized the project rankings to submit their funding recommendations to the full Governing Board. 6

12 II. Introduction On June 25, 213, the fiscal year Recommended Service Budget was presented to the Governing Board as part of the Finance/Outreach & Planning Committee agenda, open to the public. This included a discussion of the District projects and the CFI projects recommended for funding by the regional subcommittees, fixed capital outlay, the operating component of the District s budget, including salaries and benefits, operating expenses, operating capital outlay, and contracted services for operational support and maintenance. On July 1, 213, the Certifications of Taxable Value for the District s 16 counties were received by the District. The certified taxable property values have increased 3.89 percent from fiscal year On July 3, 213, a budget update was provided to the Governing Board as part of the Finance/Outreach & Planning Committee agenda, open to the public, including information regarding the results of the county Certifications of Taxable Value received in July. Following the update, the Governing Board adopted a proposed fiscal year millage rate of.3818 mill, reduced from.3928 mill for the District. The Standard Format Tentative Budget Submission report is being submitted by August 1, 213, to the Executive Office of the Governor, the President of the Senate, the Speaker of the House, the Chairs of all legislative committees and subcommittees having substantive or fiscal jurisdiction over the districts, the Secretary of the Department of Environmental Protection, and each county commission within the District s boundaries for review and comment, reflecting the District's proposed budget for fiscal year On or before August 2, 213, the District will certify the proposed millage rate for fiscal year to all 16-county property appraisers within its jurisdiction as required by the Truth in Millage (TRIM) process, in compliance with Section 2.65, Florida Statutes. The District will hold two TRIM public hearings in September. The first public hearing will take place on Tuesday, September 1, 213, at 5:1 p.m. at the Tampa Service Office located at 761 Highway 31 North, Tampa, Florida. The second and final public hearing will take place on Tuesday, September 24, 213, at 5:1 p.m. at the Tampa Service Office located at 761 Highway 31 North, Tampa, Florida. Written disapprovals of any provision in the tentative budget by the EOG or Legislative Budget Commission must be received at least five business days prior to the final budget adoption hearing, scheduled for September 24, 213. All meetings are advertised to provide the public with an opportunity to discuss issues and concerns prior to the adoption of the budget. Additionally, meeting schedules, budget information, and budget tools are available on the District s website at Conclusion: The District s proposed fiscal year budget is designed to live within the District s means and meet statutory mandates, and continues to operate on a pay-as-you-go basis, without debt. The proposed budget maintains an operating profile consistent with fiscal year , and in-line with current ad valorem revenue levels, to ensure sustainability. The substantial operating reductions made in fiscal year , have provided the District with the flexibility to maintain the necessary annual investment in critical water resource management projects for the west-central Florida region. In order to ensure that the District continues to operate within its means, District staff will continue to look for opportunities to improve efficiencies and further streamline processes. 7

13 II. Introduction E. Budget Guidelines The District continues to develop its budget under the guidelines established by Governor Scott and Secretary Vinyard which include: The ongoing review of personnel, programs and activities to ensure that each district is meeting its core mission without raising costs for the taxpayers they serve. Ensuring that district employee benefits are consistent with those provided to state employees. Continuing district implementation plans for the beneficial use of excess fund balances. Avoiding new debt. The District-specific guidelines developed by the Governing Board and management included fiscal year preliminary budget preparation assumptions approved at the governing board meeting on November 27, 212, which were revised at the governing board meeting on January 29, 213, for the tentative budget preparation. Revenues Millage Rate proposed millage rate of.3818 was adopted by the Governing Board on July 3, 213, which will be used for the Notice of Proposed Property Taxes for all taxpayers. This is a 2.8 percent reduction from fiscal year Taxable property values 3.89 percent increase in taxable values based on the Certifications of Taxable Value from the 16-county property appraisers, July 1, 213. Property values increased 2.32 percent and new construction represented an increase of 1.57 percent. State Revenues budget only known state revenue sources. Local Revenues budget $2.4 million, equal to the cooperators share for cooperative funding for Watershed Management Planning projects where the District is serving as the lead party. Permit and license fees budget $1.7 million, reduced from $1.9 million budgeted for fiscal year This is based on projections for fiscal year Interest earnings on investments budget based on average cash balance of $493 million and.75 percent estimated yield on investments. Balance from prior years based on unassigned fund balances per annual audited financial statements as of September 3, 212, and additional balances from projects cancelled and completed under budget. Utilization of Restricted Basin reserves applied to eligible projects; an estimated $1.4 million has been budgeted for fiscal year budget. 8

14 II. Introduction Expenditures Salaries and Benefits funding level consistent with fiscal year o Total workforce reduced by net of 32 FTEs (24 board authorized employee positions and 8 contingent workers). o Includes merit salary increases based upon formal, annual performance evaluation. o Base retirement costs on rates approved by 213 Florida Legislature. o Includes provision for increase in benefit costs; benefit rates to be renegotiated in 213. Remaining recurring expenditures, including operating expenditures, operating capital outlay and contracted services for operational support and maintenance targeted to be consistent with the budget levels for fiscal year Contracted Services for District Projects projects were zero-based and separately justified based on priority project requests for funding, $8.7 million increase from fiscal year Cooperative Funding/District Grants projects were zero-based and separately justified based on fiscal year funding requests from cooperators. Projects were evaluated by staff and reviewed and ranked by regional subcommittees of the Governing Board, $3.6 million increase from fiscal year Water Supply and Resource Development (WSRD) program under the District s Cooperative Funding Initiative continues consistent with the Long-Range Water Supply and Water Resource Development Funding of the Regional Water Supply Plan through 23, and estimated long-term funding requirements for projects. Budget Targets: o Salaries and benefits not to exceed 5 percent of ad valorem revenue; achieved 47 percent. o Operating Budget (including salaries and benefits) not to exceed 8 percent of ad valorem revenue; achieved 74 percent. o Project budget to be approximately 5 percent of total budget; achieved 56 percent. 9

15 II. Introduction F. Budget Development Calendar and Milestones October October 1 October 5 November 27 December 1 December 18 January 15 January 29 February February 5-13 March 1 March 15 April 9-17 June 1 Staff development of preliminary budget Fiscal Year begins Applications for FY cooperative funding requests due Governing Board acceptance of preliminary FY budget development process and assumptions Draft preliminary budget provided to DEP/EOG for review Governing Board approval of preliminary FY budget for submission to the Florida Legislature by January 15, 213 Submittal of Preliminary Budget for FY to President of Senate, Speaker of House of Representatives, the chairs of all legislative committees and subcommittees having substantive or fiscal jurisdiction over the water management districts, as applicable Governing Board acceptance of formal budget development calendar and any revisions to the process or assumptions for final budget development Distribution of FY Budget Preparation Guidelines and staff training workshops conducted Four regional subcommittees of Governing Board review and rank cooperative funding requests for FY Comments on preliminary budget due from President of the Senate and Speaker of House of Representatives, with copy to EOG District s response to any legislative comments on preliminary budget due Four regional subcommittees of Governing Board review and rank cooperative funding requests for FY Estimates of taxable values from 16-county property appraisers June 25 FY recommended annual service budget delivered to the Governing Board, which included the recommendations from its four regional subcommittees of cooperative funding requests to be funded for FY July 1 If no action taken by the Legislature, development of the tentative budget proceeds July 1 Certifications of Taxable Value from 16-county property appraisers July 19 Budget presentation to EOG and DEP staffs 1

16 II. Introduction July 3 Governing Board adopts proposed FY millage rate and tentative budget August 1 Submittal of tentative budget to Governor, President of Senate, Speaker of House of Representatives, the chairs of all legislative committees and subcommittees having substantive or fiscal jurisdiction over the water management districts, as applicable, Secretary of the Department of Environmental Protection, 16 County Commission Chairs August 2 TBD September 5 September 1 September 17 TRIM DR42 sent to 16-county property appraisers Budget presentation to legislative staff Comments on tentative budget due from chairs of legislative committees and subcommittees Public Hearing Adopt tentative FY millage rate and budget (Tampa Service Office) Written disapproval of any provision in tentative budget due from EOG and Legislative Budget Commission September 24 Public Hearing Adopt final FY millage rate and budget (Tampa Service Office) September 3 October 1 October 4 October 24 Fiscal Year ends Fiscal Year begins Submit Adopted Budget to DEP/EOG/Legislature within 1 days after final budget adoption TRIM Department of Revenue package delivered within 3 days after final budget adoption 11

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18 III. Budget Highlights A. Current Year Accomplishments (Fiscal Year ) 1. Water Resources Planning and Monitoring District Water Management Planning New Minimum Flows and Levels (MFLs) rules were adopted for lakes Hooker, Bonable, Little Bonable, Tiger, Tooke, Whitehurst, Carroll, Wimauma, the Chassahowitzka River system (including Blind Springs) and the Homosassa River system (Citrus County). Completed an integrated ground/surface water model of the Raleigh, Rogers and Starvation watershed that simulates 18 years of more than 3 lake level responses under full and reduced pumping scenarios in support of MFLs recovery. Reports on proposed MFLs for Gum Springs, the upper Little Manatee River, and the upper and middle Withlacoochee River have been peer reviewed and a number of MFLs documents are currently being drafted. The District continues to make progress on issues related to the establishment of MFLs as part of the Central Florida Water Initiative (CFWI). Integrated Northern Tampa Bay model and report was completed and peer reviewed. Completed 211 Estimated Water Use Report. Completed formal Flood Insurance Rate Maps (FIRMs) appeals periods without appeal for DeSoto, Hardee and Highlands counties. The DeSoto and Hardee County FIRMs are to be adopted and effective by December 213. The Highlands County FIRMs effective date is anticipated to be March 214. Completed the Dade City Stormwater Master Plan. Completed review of the Duck Slough Watershed model, provided comments, converted the model to useable format, and conducted modeling scenarios in support of regulatory permitting for this high profile project. Research, Data Collection, Analysis and Monitoring Implemented a Data Governance process to justify, evaluate and monitor water resource data collection activities to ensure these activities and associated resource expenditures are aligned with the strategic direction and priorities of the District. This effort resulted in 265 activities being categorized as no longer essential to support District projects. Realized annual cost savings of $96, by performing hydrologic data collection and data management tasks in-house for potentiometric mapping processes. Realized approximately $31, savings in well drilling costs due to increased efficiency of well designs and well rehabilitation skills. Implemented ArcGIS Online for Organizations which allows staff to create easy to use, efficient, and intuitive mapping applications through a browser on computers, tablets or mobile devices. Enhanced outreach efforts to the well drilling community as part of the Quality of Water Improvement Program, resulting in an additional 65 wells plugged over prior year levels. This program improves water quality within aquifers and protects water supplies by preventing wasted flow at land surface through well abandonment. Continued expansion of research on deep exploration of the Lower Floridan Aquifer (LFA) to determine whether this aquifer can serve as a viable water supply. Coring and testing at Regional Observation Monitor-well Program site 75 (located in Polk County) was completed to a depth of 2,81 feet below land surface. Formed inter-agency work group and developed a state-wide potentiometric map series of the Floridan aquifer to be produced twice per year to provide a snapshot of aquifer conditions during annual high and low water level time periods. Completed Flatford Swamp Feasibility Study with Mosaic. 13

19 III. Budget Highlights Completed field surveys and migrated over 2,3 data collection sites and associated databases and work flow processes to the North American Vertical Datum of 1988 (NAVD88) from the obsolete National Geodetic Vertical datum of 1929 (NGVD29). Survey of the remaining 191 sites will be completed in fiscal year Continued to fund projects with the University of Florida s Institute of Food and Agricultural Sciences (IFAS) for urban landscape research and for research into water use for agricultural commodities. Five projects dealing with agricultural commodities were completed in fiscal year The total District cost for these five research projects was $547,8. The projects were as follows: o A project to quantify water needs of central Florida blueberry bushes, which will help to develop irrigation guidelines, conserve water, reduce runoff and reduce water quality impacts. o A project to develop a drought tolerant variety of Lantana camera, a Florida-friendly landscape plant, and determine its water needs for nursery production and urban landscape. o A project to develop a drought tolerant variety of Nandina, a Florida-friendly landscape plant, and determine its water needs for nursery production and urban landscape. o A project to compare different irrigation techniques for blueberry production in a variety of soil types, in order to determine best irrigation practices for specific growing conditions. o A project to evaluate the number of soil moisture sensors necessary to assist in determining optimal irrigation quantities, duration and timing. Completed the acquisition of five monitor-well and wetland monitoring sites with another 35 sites pending with an expected completion by September Acquisition, Restoration and Public Works Land Acquisition Received Governing Board approval for the declaration of 25 parcels as surplus. Completed all fee simple and inundation easement acquisitions and litigation support activities necessary to implement the Lake Hancock Lake Level Modification project. Continuation of the activities to complete the due diligence necessary for the future sale of the Bartow Service Office and listing of the Frog Creek parcel. Water Source Development In partnership with the Florida Department of Agriculture and Consumer Services, the District continued to fund the Facilitating Agricultural Resource Management Systems (FARMS) Program with 39 FARMS projects Board-approved in fiscal year with a projected ground water offset of 4.65 million gallons per day (mgd) to meet the Southern Water Use Caution Area (SWUCA) Recovery Strategy and other program goals. Coordinated with the City of Bradenton to resolve the Aquifer Storage and Recovery (ASR) arsenic mobilization issue, allowing the City to receive their operation permit from DEP; the first permit of its kind issued in the State of Florida. Completed the Brooksville Reclaimed Water Project, including the construction of 37,67 linear feet of transmission main from the City of Brooksville Cobb Road Wastewater Treatment Plant to the Southern Hills Plantation development, two 1. mgd pump stations, one 1.5 mg reclaimed water storage tank, and three 3. mg lined storage ponds. The project will provide.64 mgd of reclaimed water to be used to irrigate the golf course, common areas and individual residences. Continued work on various projects for the Lower Hillsborough River MFL Recovery Strategy. Various projects have been implemented and operated to meet the Lower Hillsborough River minimum flow 7-8 percent of the time. Work continues on projects to meet remaining MFLs need, including the design and permitting of the Blue Sink pipeline and pumping station. The District has received a final report on the investigation of additional water sources and supply options that may be needed to meet minimum flows for the Lower Hillsborough River. The cost of this project is $44.5 million funded jointly through an agreement with the City of Tampa. 14

20 III. Budget Highlights Established the Project Management Office (PMO) to improve consistency, efficiency and effectiveness of project management. Responsibilities of this group include identifying methods to improve the Cooperative Funding project evaluation process to enhance resource benefits and cost effectiveness. This group helps manage 453 active water resource projects totaling $293 million. These projects ensure resource availability, sustainability, and provide economic strength to the region. The projects are leveraged with the District s cooperative partners accounting for nearly a $5 million project investment. Surface Water Projects Continued construction of the Lake Hancock Outfall Treatment project is on schedule to be completed in the fall of 213. This project will reduce nitrogen loads from surface water discharging from Lake Hancock through Saddle Creek to the Peace River by 27 percent annually. This will be accomplished by routing discharges from the lake through a 1, acre wetland constructed on District-owned land at the south shore. The total project cost is $28.5 million. Continued remediation and restoration construction as part of the Sawgrass Lake Restoration project with expected completion in December 213. The principle elements of the project will result in the clean-up and restoration of water resources and wetland areas within the Sawgrass Lake Water Management Area. The site clean-up and reclamation of spent shot from the adjacent gun club drop zone area will remove lead and associated contaminants from the system. Water quality improvements will reduce nutrient loadings to Tampa Bay from the 3,17 acres of highly urbanized untreated watershed. The total project cost is $25 million. Remediation and restoration construction began in February 211 with anticipated completion in December 213. Completed the MacDill Air Force Base Phase 3 Restoration (Tampa Bay) resulting in 111 acres of restored natural systems and stormwater treatment for improved Tampa Bay water quality. Efforts included stormwater treatment/polishing coupled with creation of low salinity ponds, tidal channels, tidal marshes, estuarine wetland enhancement, freshwater ponds and upland enhancement. Total project cost is $2 million. Initiated the Chassahhowitzka Spring Sediment Removal project in June 213 with an expected completion date by September 213. The project will remove and dispose of approximately 3,8 cubic yards of organic sediment and sand from the Chassahhowitzka Headspring, with the sediments disposed of as a soil supplement on a nearby property. The total project cost for the feasibility, design, permitting and construction is $1 million. Completed project design for the Kings Bay Three Sisters Springs Water Quality Improvements. This project will provide for the design, permitting, and construction of a stormwater treatment wetland on the Three Sisters Springs property, as well as bank stabilization of land immediately adjacent to the springs. The wetland will intercept stormwater from more than 1 acres of commercial and residential land within the City of Crystal River, improving the water quality of these waters before they discharge into Kings Bay. The total project cost for the treatment wetland project is $59, with design and permitting activities scheduled to be complete in the summer of 213 and construction expected to start in the fall of 213. The total cost for the bank stabilization project is $15,. Design and permitting activities (being funded by the U.S. Fish and Wildlife Service) are scheduled to be complete during the summer of 213 and construction is expected to start in the fall of 213. Continued work on the lakes along the Lake Wales Ridge that are threatened by declining water quality and declining lake levels. The focus has been on protective lake management strategies and stormwater retrofit projects. o Construction activities were completed for Lake Clay in the Town of Lake Placid, for which the District partnered with Highlands County. o Design and permitting activities have been completed for four stormwater retrofit projects (Lakes Isis, Tulane, Wailes and Clinch) and construction is predicted to begin in the fall/winter of 213. o Design and permitting activities are ongoing for Lake Verona, for which the District has partnered with Avon Park, and construction is scheduled for fiscal year

21 III. Budget Highlights o Design and permitting activities will be initiated in fiscal year on Lake June-in-Winter, for which the District has partnered with Highlands County. o Total project costs for the design, permitting and construction of these ongoing projects is $2.2 million. Continued work on four Wetland and Hydrologic Restoration projects involving District lands: o Edward W. Chance Reserve-Gilley Creek Tract Hydrologic Restoration project focuses on the hydrologic restoration of the site s isolated wetlands as well as Gilley Creek, an important tributary of the Manatee River. Design and permitting is complete and construction is expected to be completed in fiscal year o Myakka State Forest Hydrologic Restoration project includes the restoration of the site s impacted isolated wetlands and the restoration of surface water flows to Oyster Creek and Ainger Creek. Design and permitting is complete and construction is expected to be completed in fiscal year o Jack Creek Wetland Restoration project includes the rehydration of the tract's degraded wetlands. Design and permitting is complete and construction is expected to be completed in fiscal year It is projected to result in 8 acres of wetland restoration, increased water storage in the region and to provide aquifer recharge. o Myakka River Deer Prairie Creek project includes the hydrologic restoration of impacted natural drainage conveyances and altered emergent marshes. The Design is expected to begin design in the summer of 213 and construction is expected to begin in fiscal year It is projected to result in 57 acres of wetland restoration and habitat improvement. Established Springs and Environmental Flows Section, and hired technical staff to enhance springs activities. The Cow Pen Slough Pilot Treatment Plant is now functional, gathering information for possible treatment options of a future potable supply. Completed construction of the Duck Pond Pump Station in Hillsborough County. Completed construction for the following projects: o Mulberry Watershed Flood Protection o City of St. Petersburg Jungle Lake o Jungle Lake Northeast o Golf Creek Flood Protection o Pinellas Park Water Management District Channel 4 Flood Protection o City of Treasure Island Basins 1,5,6,7 Flood Protection 3. Operation and Maintenance of Land and Works Land Management Through public/private ventures and sustainable multiple use management, approximately $58, in revenue is anticipated during fiscal year , primarily derived from timber harvests, cattle leases, cell tower leases and hog hunt permit fees. Upon acceptance by all water management districts (WMDs) as a consistent reporting matrix for provision of land management information to the DEP, the District implemented a measure of natural systems maintenance, called Condition Class. The condition class data will also capture an archived history of prescribed burns and mechanical treatments completed on District lands, as well as information on timber management. Completed prescribed burns for approximately 17,317 acres through June, with another 4,683 acres planned for the remainder fiscal year Removed 1,89 feral hogs from District lands through June 213. Through the District s recreation program, provided approximately 12, people with recreation opportunities on 225, acres of conservation/recreation lands which includes 472 miles of trails, nine primitive campgrounds, ten backcountry campsites, and 12 equestrian campgrounds. Recreation uses include hiking, biking, horseback riding, birding, hunting, picnicking, camping, fishing and nature study/wildlife viewing. 16

22 III. Budget Highlights Works Converted the attended boat lock at the Wysong-Coogler Water Conservation Structure to user-operation. The project included designing user-friendly controls, modifying the control system and software, and adding signal lights and instructional signage. The conversion to user-operation will result in a savings of approximately $85, per year. Continued the Major Flood Control Structure Gate Refurbishment Program with two more gates at Structure S-16 refurbished. This project includes removal and complete restoration of the gate hydraulic cylinders, the 23, pound two-piece gates and all components, rollers and bearings to as-new condition. The program is designed to extend the design life of the structures, and ensure their operational readiness. Refurbished the water conservation structure at Lake Crescent in Northwest Hillsborough County. Staff fabricated a replacement gate and improved the rip rap wing walls, control panel, fencing and parking at the structure. In 29, the U.S. Army Corps of Engineers (USACE) Levee Inspection and Rehabilitation Program conducted Periodic Inspection Reports for nine levee systems within the District s 16-county area. Since the receipt of the reports in 211, the District has made numerous repairs to deficiencies identified in the reports. $1.5 million was included in the fiscal year budget for initiating the needed maintenance repairs. It is anticipated that completion of the needed maintenance activities will occur in fiscal year Expenditures have included culvert video inspections; culvert and/or riser replacement and/or repair; erosion control including sod, riprap, and revetment; vegetation removal; flood control structure maintenance; animal control; and the removal of (or obtaining a variance for) encroachments. Facilities Performed planned replacement, improvement or repair to the District s Headquarters and Service Offices, which includes over 3, square feet of building space located on a total of 7 acres, in support of reduction in force and realigned activities to support changes in organizational structure. Reorganized and relocated staff to east wing of the Bartow Service Office enabling energy conservation. Completed the grading and resurfacing of the Tampa Service Office storage lot through usage of alternative construction methodologies that also improved surface water quality runoff and eliminated the need to incur permitting versus a traditional asphalt approach, resulting in a savings of approximately $25,. Relocated all off-site records to our new on-site record center which will result in savings in excess of $2, per year or a 1 year savings of over $2 million. Invasive Plant Control Treated 15,372 acres infested with invasive aquatic and upland plant species on District managed lakes, rivers, flood control systems and lands during the past year. The most troublesome aquatic species were water hyacinth and water lettuce with 3,645 acres treated. Upland invasive plant species requiring the most control effort included Cogon grass (3,987 infested acres treated), Old World climbing fern (1,22 acres), Brazilian pepper (98 acres), Chinese tallow (93 acres) and tropical soda apple (766 acres). In cooperation with the U.S. Department of Agriculture, an additional release of the Neo moth, a bio-control agent for Old World climbing fern (OWF), was made this spring on the Flatford Swamp property. Early detection and rapid response efforts to control new infestations of OWF continue to be a management priority on all District-managed properties where feasible. OWF forms thick mats on the ground and up into the tree canopy smothering native plant communities, degrading wildlife habitat and altering fire ecology. Continued participation with the Central Florida Lygodium Strategy (CFLS), a regionally coordinated, public/private partnership effort, to stop the northward spread of OWF within northern Central Florida. District support (funding and aerial surveys) of the CFLS is necessary to allow the 17

23 III. Budget Highlights continued coordination of this project by the Nature Conservancy as well as the treatment of OWF infestations on private lands. This project plays a critical early detection rapid response role in preventing the expansion of OWF within the Green Swamp ecosystem where it would be difficult and expensive to maintain and cause significant ecological impacts Fleet Services Implemented the new Fleet Maintenance System. This system allows for automation of DEP Performance Metric reports as they relate to the District s fleet utilization as well as electronic Motor Pool reservations. Generated savings of $17,574 by reducing the number of Network Fleet Efficiency Monitors from 198 units midyear to 13 units removing them from the motor pool vehicles. Fleet averaged 8 percent of planned maintenance performed on schedule. Reduced 33 vehicles (less than one-ton capacity), a reduction of 15 percent, from the District s Fleet since mid-fiscal year , with additional reductions for other equipment including trailers, off road vehicles, and boats realized as well. 4. Regulation For the 12-month period, starting May 1, 212 through April 3, 213, the District: o Issued 1,17 Water Use Permits (WUPs); opened 1,37 WUP related compliance files and closed 1,426 WUP related compliance files. Major WUPs issued included the Tampa Bay Water s Alafia River Withdrawal Facility, the Marion County Consolidated WUP, the Mosaic and the Oakwood Golf Club. o Issued 5,518 Well Construction Permits (WCPs); opened 71 WCP compliance files and closed 74 WCP compliance files; and completed 2,29 well inspections; and delegated counties (Manatee, Sarasota and the portion of Marion within the SWFWMD) issued 2,232 WCPs. o Issued 1,76 Environmental Resource Permits (ERPs) and responded to 526 requests for exemption; opened 5,35 ERP related compliance files and closed 6,82 ERP related compliance files with a focus on decreasing the compliance backlog; authorized 42 Agricultural Groundwater and Surface Water Management program (AGSWM) exemptions to assist farmers in their agricultural activities; and issued 35 permits and exemptions within 2 business days of receipt (13 percent of permits and exemptions issued). Major ERPs included the Boars Head Mitigation Bank, the Withlacoochee Wetland Mitigation Bank, Lemon Bay Cove, the City of St. Petersburg Pier, Sabal Palm Point Dock, the Suncoast Parkway, The Villages, FDOT Projects, SRQUS, LLC, and the Hillsborough County Tax Collector s Brandon Office. Revised the Regulation Division organizational structure. The Natural Resource Management Bureau was eliminated and the group was placed under the Environmental Resource Permit (ERP) Bureau. The Strategic and Technical Support section was created within the ERP Bureau to support special Regulatory issues. A mitigation banking team has been created. The reorganization effort resulted in staff being reassigned from the ERP Bureau to the Water User Permit (WUP) Bureau and eliminated a position from the WUP Bureau. Developed an outreach team for epermitting to increase on-line utilization of the District s epermitting system. To date the team has visited 34 firms and government agencies, training their staff to use the District s epermitting and GIS systems. 142 people have attended these trainings. From May 1, 212 to April 3, 213, epermitting utilization has increased from 35 percent to 56 percent for ERP, increased from 44 percent to 49 percent for WUP and increased from 91 percent to 94 percent for WCP. Coordinated with other water management districts (WMDs) on a new collaborative epermitting mapping application to provide a consistent statewide on-line look and feel for WUP and ERP mapping services. 18

24 III. Budget Highlights Technology and Information Services accomplishments related to the epermitting efforts include: o Removed all legacy Stellent workflow functionality from the epermitting system and replaced with non-proprietary code, which reduced costs by eliminating the need to pay software maintenance on the Stellent software, and increased the stability and performance of the system. o Modified the epermitting system to support SWERP-related rule changes, making the ERP process consistent with the other WMDs and the DEP. o Updated the interagency permitting portal ( to improve its usability in conjunction with the other WMDs and the DEP. It is anticipated that the portal will become a primary entry point to all of the districts and to DEP s epermitting systems. o Completed the first Disaster Recovery exercise of the District s epermitting system. Based on the results of this exercise, it is anticipated that in the event of a catastrophic loss of the Brooksville data center, the epermitting system would be recovered within a 48- to 72-hour time frame. The eventual goal is to ensure the system is recoverable within a 24-hour time period. Developed the Water Well Contractor Licensing Renewal web portal that allows contractors to electronically submit applications to renew their licenses. Continued coordination with the other four WMDs and DEP to develop statewide WUP, WCP and ERP rules. o WUP staff has participated in a number of workgroups and workshops including Consumptive Use Permitting compliance/monitoring/ submittals, application forms, permitting criteria, thresholds, groundwater modeling, and water conservation work groups. o WCP staff participated in a number of workgroups with DEP, the Department of Health, four other WMDs and the Florida Groundwater Association to revise Chapter , F.A.C., (Well Contractor Licensing Requirements) and the Water Well Construction Disciplinary Guidelines and Citations Dictionary. o ERP staff participated in weekly webinars being led by DEP staff. Additionally, there have been multiple workgroups for application forms, roadway and redevelopment, formal determinations, notice general and exemption criteria, permit thresholds and fee schedules. District staff filed the SWERP rules for adoption and is currently waiting for the DEP to file a notice of change and to file with the Department of State. The projected effective date of SWERP is August 213. Implemented the provisions of the Water Shortage Plan (Chapter 4D-21, F.A.C.) and Year-Round Water Conservation Measures (Chapter 4D-22, F.A.C.). Evaluated petitions for variance from water shortage restrictions. Provided technical oversight of Water Shortage Plan rulemaking and technical assistance to WUP evaluation and compliance staff on water conservation and use efficiency. Recent rulemaking concluded in July 213 which involved refinements to the plan to reflect experience exercising various water shortage provisions during the droughts. Additionally, minor amendments associated with the statewide Consumptive Use Permitting consistency effort were identified and the changes have been approved by the Governing Board and are pending publication for adoption, which will likely occur in the fall of 213. The Conserve Florida Statewide Public Supply Water Conservation Initiative is a multi-year collaborative effort with the DEP and other agencies to fulfill the requirements of Chapter , Florida Statutes, to develop a comprehensive statewide water conservation program for public suppliers that provide utility-specific options. This initiative resulted in a web-based tool known as EZ Guide that became functional in May 213. Implemented new regulatory performance metrics resulting in nearly 1 percent of Requested for Additional Information (RAIs) issued within 15 days and increasing percentage of permits issued in 2 days or less. 5. Water Resources Education Certified 25 properties for the Florida Water Star (FWS) voluntary certification program for new residential and commercial properties and communities that encourages indoor and outdoor water 19

25 III. Budget Highlights conservation, including water efficiency in household appliances, plumbing fixtures, irrigation systems and landscapes. A total of 327 properties have been certified in this District, including commercial certification for the St. Leo University School of Business and community certification for Green Castle of Bayonet Point in Pasco County. Achieved Water Conservation Hotel and Motel Program (Water CHAMP SM ) participation of 355 lodging facilities, representing 49 percent of all hotels within the District with more than 5 rooms. An estimated 149 million gallons of water saved by participants based upon water use audits, current participation rates and average occupancy rates. The program promotes reusing linens and towels in lodging facilities and educates management, staff and guests on conserving water. Transitioned the Water Program for Restaurant Outreach (Water PRO SM ) to a web-only resource with water conservation tips for restaurants. Educated approximately one-third of students and teachers within the District - approximately 25, students - by equipping them to understand Florida s water resources and related natural systems through the Youth Water Resources Education Program. The program components are all grade-level appropriate and aligned to Florida s education standards and include field trip programs, Splash! grants, teacher training and educational materials. o Launched a streamlined process for Splash! grants that saved more than 2 hours in staff time, garnered positive grantee feedback, and resulted in 9,1 students receiving an average of 23 hours of water resources instruction each. o Enhanced online resources and reduced number of printed program publications by more than half. o Achieved average pre- and post-test knowledge increase of 3 percentage points through educational programs. Coordinated the Clam Bayou Project and Skyway Trail Dedication. Completed a survey to gauge the public s perception of reused water as part of the Aquifer Recharge Communications Plan that revealed that the term purified reclaimed water should be used in order to increase the acceptance of reused water for drinking and other uses. As part of the Central Florida Water Initiative (CWFI) Regional Water Supply Plan process, developed a communications plan with specific communication tools that include: public involvement plan, communications protocol, PowerPoint slide bank and talking points, master outreach list of stakeholders, presentations tracking spreadsheets, templates and a CFWI fact sheet. Other outreach activities to be implemented in 213 as part of the communications plan include: a webinar and three public workshops as well as traditional and social media promotion. Ongoing Springs Protection Outreach activities include: o Conducting a pilot project to encourage residents to hire Green Industries - Best Management Practices (GI-BMP) certified professionals to maintain their lawn. o Conducting a public opinion survey in Citrus, Hernando and Marion counties to identify the general public s perception of springs issues and who they trust most on these issues. o Redesigned the District s Springs website to be a one-stop-shop of information for residents on the area s five major springs systems in Citrus, Hernando and Marion counties, and what the District is doing to monitor and restore them, and making it easier for the public to track the health of the region s major springs systems by featuring interactive charts and maps. o Successfully pitched stories on springs projects resulting in two front-page articles in the Citrus County Chronicle and coverage by the Tampa Bay Times and on Bay News 9, a local 24-hour cable news network. 6. District Management and Administration Administrative and Operations Support Implemented an updated, competency-based Human Capital Management (HCM) strategy including elements such as Competency-based job profiles; a new employee evaluation system based upon assessment of employee performance against competencies linked to the District s core values, and individual goal-setting; development of career ladders and lattices to promote staff development. 2

26 III. Budget Highlights Negotiated a 2 percent decrease in the Florida Blue medical benefit rate without any decrease or change in the benefit provisions for an estimated annual savings of $154,337. Continued coordination with the other WMDs and the DEP on inter-district consistency measures. To date, the Districts have collaboratively achieved considerable progress in consistency with benefits, staffing nomenclature, education reimbursement, pay grade/range structure and other issues. Advanced the District s paperless and mobile workforce initiatives through migration of 1.9 million documents to the Enterprise Content Management (ECM) repository, implementing external Collaboration system access and providing Collaboration system training and workflow setup, and migrated Fixed Records Management (FRM) data to the Collaboration system. Developed a tiered approach to cooperative funding contracts for projects that account for different levels of risk to the District based on the type of project and to ensure that the District receives what it paid for. Improved the FARMS contract boilerplate to ensure compliance with the intent of the rule which is to provide funding assistance that will result in reductions in water use and improvements in water quality and to natural systems. The contract revisions are intended to reflect the purpose of the rule to ensure the District is not contractually liable for a project and that the contemplated resource benefit is achieved. Technology and Information Services Implemented upgrades to the existing wireless network to support an increased number of wireless devices that include smartphones, table computers and laptops. The trend towards a more mobile District workforce reflects a broader transition in society that is taxing existing private and public wireless networks. Upgraded the Collaboration program to a new 64-bit version on new servers to provide greater processing power for the program and prepare it for wider use by District users. Deployed a new Accounts Payable workflow system to increase document accessibility and to automate the document retention process. In May 212, the District contracted for an external review of its major information technology systems to ensure that they met their intended business needs and were sustainable over the long term. The District has successfully addressed, or has a plan in place to address, the primary recommendations from this study. Completed the first phase of implementing Microsoft s industry standard Desktop and Server management suite, System Center 212 Configuration Manager. The full implementation will consolidate and enhance the District s current desktop management and antivirus products into one seamless management pane; thereby, reducing overall system complexity and costs. Completed an architectural review of the key epermitting and scientific data management systems. This review focused on the Microsoft.NET application, Oracle database, ESRI geospatial and OpenText document management components of the system. Implementation of the recommendations will allow the District to plan system maintenance and to enhance the system for the next five years. 21

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28 B. Major Budget Objectives and Priorities III. Budget Highlights Florida Statutes, especially Chapter 373, authorize the District to direct a wide range of initiatives, programs, and actions. These responsibilities can be grouped under four general areas: water supply, water quality, natural systems and flood protection. In developing the Strategic Plan, the District has established a goal statement for each of these areas, along with strategic initiatives designed to meet those goals. The strategic initiatives provide focus for bureaus to identify budgetary requirements necessary to carry out District programs, and serve as the foundation for developing the budget. The following strategic initiatives, by Area of Responsibility (AOR), are included in the District s Strategic Plan that was approved by the Governing Board on November 16, 21, and serves as the Major Objectives/Priorities for the development of the tentative fiscal year budget. The associated AOR allocations are defined by the Program Budget (see IV.C. Program Allocations by Area of Responsibility). Water Supply $54,279,112 Goal: Ensure an adequate supply of the water resource to provide for all existing and future reasonable and beneficial uses while protecting and maintaining water resources and related natural systems. Regional Water Supply Planning Identify, communicate and promote consensus on the strategies and resources necessary to meet future reasonable and beneficial water supply needs. The District is providing cost share funding for several water supply planning efforts in the tentative fiscal year budget, including the Withlacoochee Regional Water Supply Authority s regional planning effort to increase conservation and the beneficial reuse of reclaimed water in the District s northern counties and the Peace River Manasota Regional Water Supply Authority s (PRMRWSA) Integrated Regional Water Supply Master Plan update ($85, 847). These plans, along with last year s funding of a water supply plan update in Polk County, will help lay the groundwork for the next update of the District s Regional Water Supply Plan in 215. The District is also collaborating with the St. Johns River and South Florida water management districts, the Department of Environmental Protection, the Department of Agriculture and Consumer Services, and public supply utilities on the Central Florida Water Initiative (CFWI). The District has budgeted $252,725 to continue this effort which will result in a Regional Water Supply Plan for the five-county CFWI area, where the effects of water withdrawals span three water management district boundaries. Alternative Water Supplies Increase development of alternative sources of water to ensure groundwater and surface water sustainability. The District offers funding incentives for the development of alternative water supplies (AWS) to reduce competition for limited supplies of fresh ground water. The District leverages other local and regional funding by offering matching funds up to 5 percent of the cost of AWS projects. Reclaimed water and conservation, both of which could be considered alternative water sources, are covered separately. In recent years, the District has completed budgeting for several major AWS projects, including a six-billion-gallon reservoir and treatment plant expansion at the PRMRWSA and Tampa Bay Water s System Configuration II project. The tentative fiscal year budget includes $31,515 for regional interconnect projects in the PRMRWSA area, which will eventually connect the region s major water systems and ensure the reliability of water supply throughout the four counties. Other major AWS projects proposed for funding include the City of Clearwater s Brackish Floridan Aquifer Reverse Osmosis System ($6 million), and aquifer recharge projects (Northwest Hillsborough Aquifer Recharge, $1.5 million, and Palmetto Dry Season Reclaimed ASR, $93,491) to utilize deep aquifer storage and 23

29 III. Budget Highlights allow the more efficient use of available water supplies. The District recently agreed to enter into a partnership with Polk County to lay the groundwork for establishment of a Regional Water Supply Authority in the County and for the development of AWS and associated infrastructure to meet the future demands of the County and the municipalities within the County. The District s long-term funding plan includes $8 million per year beginning in fiscal year for this purpose. Reclaimed Water Maximize beneficial use of reclaimed water to offset or recharge potable-quality water supplies. Approximately $23 million in grant money is budgeted for 42 cooperatively-funded reclaimed water projects. This includes an innovative project to provide reclaimed water from Polk County and the Cities of Lakeland and Mulberry to a Tampa Electric Company power station in western Polk County for expansion of that facility ($5.7 million). Other major reclaimed water projects include a 1 million gallon storage tank for Manatee County ($2.6 million), a project that would provide approximately 5, additional gallons of reuse distribution daily and interconnect Hernando County s three coastal water reclamation facilities ($1.3 million), and a project to provide nearly one mgd of reclaimed water to Duke Energy from Crystal River ($2.2 million). Conservation Enhance efficiencies in all water use sectors to reduce demands on all water supplies. The District s water conservation program has many facets. More than $4, is budgeted through the Cooperative Funding Initiative for 28 water conservation projects in partnership with local governments and other partners. Additionally, approximately $6.5 million is budgeted for the Facilitating Agricultural Resource Management Systems (FARMS) program, a cooperative, public-private, cost share reimbursement program to implement agricultural best management practices (BMPs). The FARMS program is an important component of the District s Southern Water Use Caution Area Recovery Strategy. Much of the District s budget for water resource education ($89,687) is directed at water conservation education programs or projects with a conservation component. The District also funds extensive conservation research and implements regulatory requirements and incentives to achieve water conservation. Water Quality $3,436,227 Goal: Protect and improve water quality to sustain the environment, economy and quality of life. Water Quality Assessment and Planning Collect and analyze data to determine local and regional water quality status and trends in order to support resource management decisions and restoration initiatives. The District collects and analyzes water quality data through several monitoring networks and program specific efforts. Major monitoring efforts include the stream network ($134,285), coastal network ($247,722), quarterly springs network ($129,76), Upper Floridan Aquifer nutrient network ($78,7), and ambient lakes network ($3,18). The District also collects data through its Surface Water Improvement and Management (SWIM) program, which focuses on ten priority water bodies. The District prepares plans for the protection and restoration of these SWIM water bodies, develops water quality management plans and diagnostic studies for other significant water bodies, and provides financial support for three National Estuary Programs Tampa Bay, Sarasota Bay and Charlotte Harbor. A total of nearly $1.3 million is budgeted for these water body protection and restoration planning efforts. 24

30 III. Budget Highlights Water Quality Maintenance and Improvement Develop and implement programs, projects and regulations to maintain and improve water quality. Water quality improvement projects include cooperative stormwater improvement projects (55 projects, $9.3 million) such as the Lake Seminole Dredging Design and Permitting project in Pinellas County ($5 million), Pinellas Park - Implementation of BMPs within the Sawgrass Lake Watershed ($563,562), the Bayview Drive Drainage Improvements ($474,772), the Lake June-in-Winter Stormwater Retrofit in Highlands County ($456,813), the Jan Phyll Village Stormwater Improvements in Polk County ($45,731) and the Village of Rainbow Springs Stormwater Retrofit in Marion County ($34,998). Some restoration projects (described below under Conservation and Restoration ) also provide water quality benefits along with habitat improvement. These 22 projects are implemented through the SWIM, cooperative funding and land management programs with approximately $2.8 million going toward water quality benefits with DEP funding designated for installation and maintenance of real-time data equipment on the first magnitude springs systems as part of the Springs Initiative ($236,58) included in the proposed budget. Through its Watershed Management Program, the District works with local governments to develop watershed plans and implement remedial BMP projects, which are focused largely on flood protection, but 16 of the projects also provide at least some water quality benefits valued at $3.4 million. The FARMS program ($6.5 million) targets agricultural water conservation (see above), but also provides water quality benefits through improved surface and ground water management, particularly in targeted areas such as the Shell, Prairie and Joshua Creek watersheds. In addition to major FARMS projects, another sector of the program focuses on back-plugging (rehabilitation) of wells to minimize the impact of highly mineralized ground water ($51,856). A related effort, the Quality of Water Improvement Program (QWIP) shares the cost of plugging abandoned wells to reduce interaquifer and surface water contamination ($65,73). Finally, the District s Environmental Resource Permitting ($6.2 million) and Well Construction Permitting ($765,812) programs include water quality criteria to protect water resources. Natural Systems $43,34,722 Goal: Preserve, protect and restore natural systems in order to support their natural hydrologic and ecologic functions. Minimum Flows and Levels (MFLs) Establishment and Recovery To prevent significant harm and re-establish the natural ecosystem, determine MFLs and, where necessary, develop and implement recovery plans. The District s budget includes $2 million to support the establishment of MFLs, including data collection, monitoring, modeling, mapping, research, hydrologic and biologic analysis, and peer review. Each year the District updates its priority list and schedule for MFLs and submits the list to the Department of Environmental Protection for approval. Several of the District s established MFLs are not being met and in accordance with Section , F.S., the District has implemented recovery strategies to return these water bodies to an acceptable hydrologic condition. While $351,98 is budgeted for specific MFLs recovery projects in the proposed budget, work continues on major projects for which the District has budgeted millions of dollars in previous years. These include the Lake Hancock Lake Level Modification project (for the recovery of the upper Peace River) and several projects that contribute to the recovery of the Lower Hillsborough River. MFLs recovery efforts are also supported by data collection, development of groundwater models, watershed management planning, and research. Finally, the District s Water Use Permitting program ($6 million) contributes to MFLs recovery by ensuring that authorized water withdrawals do not exceed the criteria established in Rules 4D-8 and 4D-8, Florida Administrative Code, for water bodies with adopted MFLs. Conservation and Restoration Identify critical environmentally sensitive ecosystems and implement plans for protection or restoration. 25

31 III. Budget Highlights The District develops information about natural systems through various data collection efforts, including aerial orthophoto mapping ($526,84), land use/land cover mapping ($59,43), seagrass mapping ($214,593) and wetlands monitoring ($21,956). This imagery is managed as part of the District s Geographic Information Systems (GIS) which includes a rich assemblage of other geographic data that is used for District purposes and made available to other government agencies and the public. Ongoing management of this spatial data is budgeted at $78,449. The District manages over 265, acres of public conservation lands for the statutorily mandated purposes of protecting and restoring their natural condition and providing for compatible recreational uses for the public. Land management is budgeted at $3.7 million. Restoration of natural systems is achieved primarily through the SWIM program and cooperative funding initiative (42 projects, $14.6 million). There are over 15 documented springs within this District. A new Springs Initiative cooperatively-funded by the District and DEP ($2.7 million) is included in the proposed budget to implement projects designed to enhance and restore water quality in the springs systems. Major restoration projects in the proposed budget include the ongoing Rock Ponds project on Tampa Bay ($8.3 million), and Balm Boyette Habitat Restoration in Hillsborough County ($2.3 million). The Environmental Resource Permitting program ($6.2 million) ensures that the natural functions of wetlands are protected from the impacts of land development. Flood Protection $29,159,35 Goal: Minimize flood damage to protect people, property, infrastructure and investment. Floodplain Management Develop better floodplain information and apply in the implementation of floodplain management programs to maintain storage and conveyance and to minimize flood damage. The District s Watershed Management Program (WMP) is a cooperative effort with local governments to develop a technical understanding of the hydrology of watersheds. This modeling and planning phase of the program includes 72 projects in the proposed budget. Among other benefits, the watershed plans support the development of digital flood hazard maps through a partnership with the Federal Emergency Management Agency. The budget includes approximately $5.2 million for these activities, which includes the continuous updating of watershed models. The implementation phase of the WMP, as discussed above, involves preventive and remedial projects to address potential and existing flooding problems. Fifty-two of these BMP projects are budgeted at a cost of $14.1 million. The District s Environmental Resource Permitting program ($6.2 million), in addition to protecting wetlands and water quality as described above, regulates surface water management and floodplain encroachment to minimize flooding impacts from land development. Emergency Flood Response Operate District flood control and water conservation structures, providing effective and efficient assistance to state and local governments and the public to minimize flood damage during and after major storm events. The District maintains and operates 81 water control structures and 63 miles of canals to manage water levels and reduce the risk of flooding. Most of the mission critical water control structures have been instrumented for remote control for more cost efficient operation, and to provide improved response time during an emergency weather event. Some structures are also equipped with digital video monitor systems to provide for improved security, safety, and reliability of operations during major weather events. The District s total budget for these water management facilities in fiscal year is approximately $3.9 million, which provides for the operation, maintenance, automation and upgrade of the structures to ensure they are in top operational condition and prepared to respond in a major weather event. The District also manages nuisance aquatic vegetation which can exacerbate flooding if not controlled. Nearly $6, is budgeted for this purpose, the majority of which is typically reimbursed by the state. Finally, the District maintains a Comprehensive Emergency Management Plan to guide District staff in the preparation, response, recovery and mitigation of disasters such as major flood events and hurricanes. Support of the District s Emergency Operations Center is 26

32 III. Budget Highlights budgeted at $123,953. In an actual emergency, the District Governing Board is authorized under Section (4)(d), Florida Statutes, to expend available funds not included in the budget for the emergency. The Governing Board would then notify the Executive Office of the Governor and the Legislative Budget Commission within 3 days of the Governing Board s action. Mission Support $13,597,115 Goal: Ensure the continuous alignment of resources with the strategic goals and objectives of the District. Mission Support, also known as Management Services, develops and equips District employees so they can achieve the District s strategic initiatives in a cost-efficient and effective manner. The District s Mission Support strategies ensure District operations remain strategically aligned, people-oriented, science- and data-based, and fiscally and ethically responsible. Mission Support includes bureaus, sections and functions that are for the most part indirectly involved with managing water resources, including Executive, General Counsel, Inspector General, Finance, and Human Resources. These functions are budgeted at $1.1 million and tax commissions/fees for the Property Appraisers and Tax Collectors are budgeted at $3.5 million. 27

33 III. Budget Highlights C. Adequacy of Fiscal Resources The District is committed to solving the region s water resource issues cooperatively. The District s cooperative funding initiative has been in place since 1988 and has resulted in a combined investment (District and its cooperators) of over $2.4 billion for the region s water resources. To ensure adequacy of revenue levels, the District necessarily evaluates its financial resource requirements at a minimum annually, as well as over five-year and 2-year horizons, using the District s interactive financial modeling tool. The model is used to assist the District in assessing the adequacy of its financial resources under various economic conditions and resource demands. The financial model considers all available resources and reserves, and projects future revenues and resource demands, including the District s approximately $8 million annual commitment for non-recurring cooperative funding and District projects. The $8 million annual commitment includes funding for major water supply and resource development projects consistent with the 21 Regional Water Supply Plan, and for smaller, local projects, typically conservation and reuse. Even during the last 2-3 years as the District s resources have been significantly reduced, the District has been able to fund viable cooperative funding requests, including water supply and resource development projects. The District believes these efforts provide a strong basis for the District s Long-Term Funding Plan. The District s Long-Term Funding Plan demonstrates that the District s financial resources adequately address the core mission areas of responsibility for water supply (including alternative water supply and water resource development projects identified in the District s Regional Water Supply Plan), water quality, flood protection and floodplain management, and natural systems. The plan shows that the District s fiscal resources supplemented with project reserves adequately maintain a healthy investment in water resources over the next five years. At the end of fiscal year , the Long-Term Funding Plan projects the District will have drawn down approximately 4 percent of its reserves estimated to be available as of October 1, 213. The plan has been prepared based on current information and is updated several times each year as additional information is known or estimates are revised. Please refer to the chart on the following page for the results of the District s long-term planning process. The red bar reflects recurring or Operating expenditures reduced by approximately $1 million for the next year, then for conservative long-term planning increased at the same rate as the consumer price index. The blue bar reflects non-recurring or Leveraged Investments (Cooperative Funding and District Projects). District cooperative funding is based on regional water supply plans and established funding thresholds for vital natural systems, flood protection and water quality projects. The green bar reflects anticipated revenue, which clearly exceeds operating expenditures. The last component on this chart is the tan line which shows the amount of reserves projected to be required each year to supplement project funding requirements. 28

34 III. Budget Highlights Leveraged Investments (Cooperative Funding/District Projects) Operating Anticipated Revenues $2M Use of Reserves $1M $1M $16M $22M $22M $2M $15M $84M $96M $84M $8M $8M $76M $1M $5M $76M $75M $78M $79M $81M $83M $M FY12-13 FY13-14 FY14-15 FY15-16 FY16-17 FY17-18 Long-Term Funding Plan Conclusion: The District has developed the proposed fiscal year budget based on continuing economic and taxation realities to ensure the long-term sustainability of the region s water resources. The proposed budget represents approximately a one percent reduction in operating costs through implementing new, improved business processes and leveraging technology. Significant operational reductions including a reduction in workforce were achieved in fiscal years through , to bring operational costs in-line with current ad valorem revenue levels. This has allowed the Governing Board the flexibility to maintain the necessary annual investment in critical water resource management projects for the west-central Florida region. The proposed fiscal year budget includes $95.8 million for Cooperative Funding and District projects; this is an increase of approximately $12 million from $83.8 million for fiscal year Even with the proposed increase in projects, the District believes its resources are adequate for fiscal year and for the next ten years using reserves only when necessary to fund valuable approved projects. 29

35 III. Budget Highlights D. Budget Summary 1. Overview The tentative fiscal year budget demonstrates the District s commitment to protect Florida s water and water-related resources. The District will continue its reduction of operating expenses while increasing the level of capital investment in our region. The tentative budget is $17.8 million, compared to $159.5 million for fiscal year with 1 percent of the increase applied to cooperatively-funded and District projects. This marks the 5th consecutive year the District has reduced its operating expenses, and during that period operating expenditures have been reduced by over 41 percent. This year, the District reduced its total workforce by an additional 5 percent, from 617 full-time equivalent positions (FTEs) for fiscal year to 585 FTEs for fiscal year This is down from 891 FTEs in fiscal year The District has maintained or improved its service goals at the reduced staffing levels as indicated through the quarterly water management district metrics. The District continues to maintain its employee benefits consistent with the employee benefits budgeted by the other water management districts and the state. By reducing and holding the operating expenditures low, the District has provided the opportunity to use its reserves and invest more funds in cooperative funding projects where the dollars are leveraged to the benefit of the environment. The fiscal year tentative budget will leverage $7 million of District funds through cooperative partnerships with public and private partners, without incurring bonded debt. This will result in matching cooperator funds of approximately $68 million, for a total investment for sustainable alternative water supply development and other water resource management projects of $138 million. In addition, the District will outsource almost $32 million (recurring and non-recurring expenditures) in fiscal year (over 18 percent of expenditures). This direct outsourcing combined with the District funding through its Cooperative Funding Initiative, which is substantially outsourced by the District s public and private partners, will result in an estimated $12 million or 6 percent of the budget outsourced or directly benefitting private industry. The tentative fiscal year budget includes $11.5 million in ad valorem property tax revenue. This is based on the Governing Board s direction to lower the millage rate to.3818 from.3928 mill in fiscal year Lowering the millage rate will result in $2.9 million of savings for the District s taxpayers. 3

36 31 TOTAL WORKFORCE TOTAL FUND BALANCE USE OF FUNDS TOTAL SOURCE OF FUND TOTAL $479,368,783 $4, ,149,881 74,3,851 18,928,55 36,219,868 $159,45,185 $47,998,638 23,555,184 16,939,862 1,425,83 3,18,5 66,35,918 $638,818,968 $479,368,783 (1) 14,72,787 49,55,736 (1) 1,16, 4,587,662 7, - - $13,499,328 $ 13,499,328 - $57,336,952 $1,842,6 12,494, , ,525 15, 41,637,545 $12,198,25 $2,44,746 1,381,269 8,412,19 - New Issues (Increases) (32.) (24.) (8.) - ($26,811,923) $ (156,882,678) (5,33,851) (62,378,526) (36,219,868) ($46,1,655) ($1,646,688) (4,276,646) (1,164,8) (51,35) (35,) (38,63,278) ($871,98) $ (861,98) (1,) Reductions $232,56,188 $4,128 31,267,23 (2) 68,7, (2) 132,48,857 (2) - $17,776,482 $48,194,55 31,772,663 16,621,11 1,282,573 2,98,5 69,925,185 $42,832,67 $232,56,188 (2) 17,125,533 48,193,828 2,397,269 12,999,852 6, Fiscal Year (Tentative Budget) Reserves: Nonspendable - amounts required to be maintained intact as principal or an endowment Restricted - amounts that can be spent only for specific purposes like grants or through enabling legislation Committed - amounts that can be used only for specific purposes determined and set by the District Governing Board Assigned - amounts intended to be used for specific contracts or purchase orders Unassigned - available balances that may be used for a yet to be determined purpose in the general fund only (2) The projected carryover encumbrances to be re-appropriated for FY total $166.9 million; which for the purpose of showing the actual remaining Fund Balance for FY213-14, these encumbrances are not included. The actual cash reported in the FY Comprehensive Financial Report was $589,871,21. However, the schedule above reflects a fund balance of $528,424,519 (Beginning Fund Balance: $479,368,783; and Fund Balance Re-Appropriated for the FY Current Amended Budget: $49,55,736). The variance of $61.4 million is primarily due to cash committed for liabilities such as: Accounts/Contracts Payables and Payroll ($49.6 million) and Deferred Revenue ($21.9 million); offset by outstanding receivables of $9.7 million at the reported fiscal year-end FY (1) Authorized Position (Full-Time Equivalents/FTE) Contingent Worker (Independent Contractors) Other Personal Services (OPS) WORKFORCE FUND BALANCE (ESTIMATED) Nonspendable Restricted Committed Assigned Unassigned Salaries and Benefits Other Personal Services Contracted Services Operating Expenses Operating Capital Outlay Fixed Capital Outlay Interagency Expenditures (Cooperative Funding) USE OF FUNDS Beginning Fund Balance District Revenues Fund Balance (Re-Appr. for FY Current Amended and FY Tentative Budget) Local Revenues State Revenues Federal Revenues SOURCE OF FUNDS Fiscal Year (Current Amended) TENTATIVE BUDGET - Fiscal Year Fiscal Years and SOURCE AND USE OF FUNDS, FUND BALANCE AND WORKFORCE SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT III. Budget Highlights

37 Designations (Description of Restrictions) Alafia River Basin Hillsborough River Basin Coastal Rivers Basin Pinellas-Anclote River Basin Withlacoochee River Basin Peace River Basin Manasota Basin RESTRICTED SUBTOTAL 32 UNASSIGNED WS = Water Supply WQ = Water Quality FP = Flood Protection NS = Natural Systems TOTAL $232,56,188 Remaining Fund Balance at Fiscal Year End $ $ $48,193,828 $ TBD $25,471,25 $28,25,16 UNASSIGNED SUBTOTAL WS/WQ/FP/NS Carryover Balances from Prior Year not Assigned as of the reported fiscal year-end $157,52,62 5, 24,971,25 4,948, , 24,971,25 ASSIGNED SUBTOTAL $ $127,143,985 WS/WQ/FP/NS Assigned for District Short-Term Projects. The types of projects to be funded include: alternative water projects; stormwater improvement projects (water quality and flood protection) projects; restoration projects and Facilitating Agricultural Resource Management Systems (FARMS) projects. WS/WQ/FP/NS Assigned for District Facilities Projects WS/WQ/FP/NS Assigned for Workers' Compensation Long-Term Liability WS/WQ/FP/NS Carryover Balances from Prior Year Assigned to Fund Subsequent Year budgets ASSIGNED $ $ $22,722,623 $1,53,897 5,68,92 1,44,879 9,636, ,269 2,592,17 1,743,363 $ $ $68,7, 18,7, $5,, $53,989,826 $1,53,897 31,875,768 1,44,879 14,28,98 1,2,769 2,592,17 1,743,363 $4,128 $4,128 FY COMMITTED SUBTOTAL Committed for District Long-Term Water Supply and Water Resource Development Projects. WS/WQ/FP/NS Economic Stabilization Fund WS COMMITTED WS/WQ/FP/NS WS/WQ/FP/NS WS/WQ/FP/NS WS/WQ/FP/NS WS/WQ/FP/NS WS/WQ/FP/NS WS/WQ/FP/NS NONSPENDABLE SUBTOTAL Aquatic Chemicals Supply Inventory RESTRICTED NS NONSPENDABLE Core Mission Total Projected Designated Amounts at September 3, 213 $214,439,194 $17,616,994 $ $ $6,55,552 $6,55,552 $ $ $11,111,442 $ 6,548,712 4,392, ,875 $ $ FY TENTATIVE BUDGET - Fiscal Year PROJECTED UTILIZATION OF FUND BALANCE SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT $19,323,275 $24,115,919 $ $ $17,397,332 $17,397,332 $ $ $6,718,587 $ 6,548, ,875 $ $ FY $166,37,595 $24,15,68 $ $ $17,297,93 $17,297,93 $ $ $6,718,587 $ 6,548, ,875 $ $ FY Five Year Utilization Schedule $143,917,849 $22,389,746 $ $ $15,671,159 $15,671,159 $ $ $6,718,587 $ 6,548, ,875 $ $ FY $143,917,849 $ $ $75,177,721 4,448, , $7,272,849 $68,7, 18,7, $5,, $ $ $4,128 $4,128 Remaining Balance III. Budget Highlights

38 TOTAL 6. District Management and Administration 5. Outreach 4. Regulation 3. Operation and Maintenance of Lands and Works 2. Acquisition, Restoration and Public Works 1. Water Resources Planning and Monitoring TOTAL 6. District Management and Administration 5. Outreach 4. Regulation 3. Operation and Maintenance of Lands and Works 2. Acquisition, Restoration and Public Works 1. Water Resources Planning and Monitoring Salaries and Benefits $ $ $17,776,482 $27,736,862 91,71,882 15,541,96 2,195,875 2,2,842 13,597,115 Fiscal Year (Tentative Budget) $ $ Other Personal Services $ $ District Revenues Contracted Services $ $ $48,193,828 $ 48,193,828 Fund Balance Operating Expenses Debt Local $ $ State $ $ $ $ Operating Capital Outlay $ $ $ $ Fixed Capital Outlay USES OF FUND BALANCE $ $ SOURCES OF FUND BALANCE TENTATIVE BUDGET - Fiscal Year Fiscal Year USE OF FUND BALANCE SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT $ $ $48,193,828 $ 48,193,828 Interagency Expenditures (Cooperative Funding) Federal Debt $ $ $48,193,828 $ 48,193,828 TOTAL Reserves $ $ $48,193,828 $ 48,193,828 TOTAL III. Budget Highlights 33

39 2. Source of Funds Three-Year Comparison III. Budget Highlights Fiscal Year (Actual Audited) $31,118,992 15% $1,133,69 1% District Revenues $2,165,529 1% Fund Balance Local Revenues $51,146,439 25% $118,154,78 58% State Revenues Federal Revenues Fiscal Year (Current Amended) $49,55,736 31% $4,587,662 3% $1,16, <1% $7, <1% District Revenues Fund Balance Local Revenues State Revenues $14,72,787 66% Federal Revenues $48,193,828 28% $2,397,269 1% $12,999,852 8% Fiscal Year (Tentative Budget) $6, <1% District Revenues Fund Balance Local Revenues State Revenues $17,125,533 63% Federal Revenues 34

40 III. Budget Highlights SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT SOURCE OF FUNDS COMPARISON FOR THREE FISCAL YEARS Fiscal Years (Actual) (Current) (Tentative) TENTATIVE BUDGET - Fiscal Year SOURCE OF FUNDS Fiscal Year Fiscal Year (Current Amended) Fiscal Year (Tentative Budget) Difference in $ Difference in % District Revenues $118,154,78 $14,72,787 $17,125,533 $2,44,746 2% Fund Balance 51,146,439 49,55,736 48,193,828 (861,98) -2% Local Revenues 2,165,529 1,16, 2,397,269 1,381, % State General Revenues 4,857,88 1,, 1,, Ecosystem Management Trust Fund 2,851,237 1,14,433 1,14,433 FDEP/EPC Gardinier Trust Fund 96,37 P2 Revenue FDOT/Mitigation 1,968,28 1,27, ,819 (424,843) -35% Water Management Lands Trust Fund 7,857,298 1,289,145 1,289,145 Water Quality Assurance (SWIM) Trust Fund Florida Forever 9,154,789 2,75, 2,75, % Other State Revenue 4,333,543 63, 6,73,455 5,443, % Federal Revenues 1,133,69 7, 6, (1,) -14% Federal through State (FDEP) SOURCE OF FUND TOTAL $23,719,43 $159,45,185 $17,776,482 $11,326,297 7% District Revenues include: Ad Valorem $14,686,64 $1,477,587 $11,464,833 Permit & License Fees 1,641,623 1,9, 1,7, Miscellaneous Revenues 11,826,517 2,343,2 3,96,7 35

41 III. Budget Highlights 3. Major Source of Funds Variances This narrative describes major revenue variances between the current-amended budget for fiscal year and the tentative budget for fiscal year by revenue source. District Revenues +2.3%, Increase of $2.4 million Ad Valorem Taxes +1% Increase of $1 million resulting from a 1.57 percent growth in new construction; offset by the Governing Board direction to lower the millage rate 2.8 percent from.3928 mill in fiscal year to.3818 mill for fiscal year The amount budgeted for fiscal year is $11,464,833, which is 96 percent of the maximum levy based on historical collection rate. Permit and License Fees -11% Decrease of $2, due to potential permit fee reductions for fiscal year Interest on Investments +85% Increase of $1.7 million due to an anticipated increase in investment earnings. Interest earnings for fiscal year are based on an average cash balance of $493 million and.75 percent estimated yield on investments. Fund Balance -1.8% Decrease of $861,98 million due to less carryover available from fiscal year , these funds are primarily related to prior year project cancellations and projects completed under budget. Local Revenues +136% Increase of $1.4 million for reimbursements from local governments primarily due to cooperative funding requests for watershed management planning and Surface Water Improvement and Management (SWIM) projects where the District serves as the lead party. State General Revenue Appropriation (no funds budgeted for fiscal year ) Increase of $1 million anticipated revenue for Implementation of Best Management Practices (BMPs) in the Duck Slough Watershed. Ecosystem Management Trust Fund Prior Year Funds (no funds budgeted for fiscal year ) Increase of $1.1 million represents prior year funds re-budgeted for the Rock Ponds Ecosystem Restoration project. Florida Department of Transportation (FDOT) Mitigation and Efficient Transportation Decision Making (ETDM) -35% Decrease of $424,843 anticipated revenue for previously designated mitigation projects and maintenance of completed projects in the program. No new mitigation projects have been added. Water Management Lands Trust Fund (WMLTF) Prior Year Funds (no funds budgeted for fiscal year ) Increase of $1.3 million represents prior year funds re-budgeted for the Rock Ponds Ecosystem Restoration project. Florida Forever Trust Fund (FFTF) Prior Year Funds (same amount budgeted for fiscal year ) Budget of $2.75 million represents prior year funds held in the District s accounts primarily generated through the sale of easements to the U.S. Department of Agriculture/Natural Resources Conservation Services for Wetland Reserve Program, and the sale of right-of-ways to Polk County. These funds will be available for potential land acquisitions in fiscal year consistent with the Florida Forever work plan and in accordance with guidance provided by the Department of Environmental Protection (DEP). 36

42 III. Budget Highlights Other State Revenue +864% Increase of $5.4 million Total of $6.1 million anticipated revenue: $2.3 million from the Mulberry Phosphate Spill for the Balm Boyette Habitat Restoration Project; $1.6 million from the DEP for the Springs Initiative; $1.1 million from the DEP for the City of Crystal River to Duke Energy Reclaimed Water Project; $435,133 from the Water Protection and Sustainability Trust Fund (prior year funds) for Rock Ponds Ecosystem Restoration Project; $48, from the Florida Fish and Wildlife Conservation Commission for the aquatic plant control program; and $15, from the DEP for the Inglis Dam and Spillway. Federal Revenues -14% Decrease of $1, due to a decrease from the Federal Emergency Management Agency for mapping activity support from $7, in fiscal year to an anticipated $6, for fiscal year

43 III. Budget Highlights 4. Source of Funds by Program SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT SOURCE OF FUNDS BY PROGRAM Fiscal Year TENTATIVE BUDGET - Fiscal Year SOURCE OF FUNDS Water Resources Planning and Monitoring Acquisition, Restoration and Public Works Operation and Maintenance of Lands and Works Regulation Outreach District Management and Administration Fiscal Year District Revenues $27,293,256 $33,257,869 $11,197,457 $16,618,733 $3,879,743 $25,97,722 $118,154,78 Fund Balance 51,146,439 51,146,439 Local Revenues 1,971, ,237 7,76 2,165,529 State General Revenues 11,69 4,846,118 4,857,88 Ecosystem Management Trust Fund 469,226 2,382,11 2,851,237 FDEP/EPC Gardinier Trust Fund 96,37 96,37 P2 Revenue FDOT/Mitigation 1,85,46 162,874 1,968,28 Water Management Lands Trust Fund 13,628 3,937,581 3,655,99 3,77 13,913 7,857,298 Water Quality Assurance (SWIM) Trust Fund Florida Forever 9,154,789 9,154,789 Other State Revenue 125,694 3,699,742 52,699 5,48 4,333,543 Federal Revenues 676, ,426 1,133,69 Federal through State (FDEP) SOURCE OF FUND TOTAL $3,651,29 $11,969,655 $15,363,15 $16,781,67 $3,99,82 $26,44,43 $23,719,43 District Revenues include: Ad Valorem $14,686,64 Permit & License Fees 1,641,623 Miscellaneous Revenues 11,826,517 38

44 III. Budget Highlights SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT SOURCE OF FUNDS BY PROGRAM Fiscal Year (Current Amended) TENTATIVE BUDGET - Fiscal Year SOURCE OF FUNDS Water Resources Planning and Monitoring Acquisition, Restoration and Public Works Operation and Maintenance of Lands and Works Regulation Outreach District Management and Administration Fiscal Year (Current Amended) District Revenues $25,29,524 $24,697,462 $17,664,658 $19,276,251 $3,53,413 $14,261,479 $14,72,787 Fund Balance 49,55,736 49,55,736 Local Revenues 576, 42, 2, 1,16, State General Revenues Ecosystem Management Trust Fund FDEP/EPC Gardinier Trust Fund P2 Revenue FDOT/Mitigation 1,7,662 2, 1,27,662 Water Management Lands Trust Fund Water Quality Assurance (SWIM) Trust Fund Florida Forever 2,75, 2,75, Other State Revenue 63, 63, Federal Revenues 7, 7, Federal through State (FDEP) SOURCE OF FUND TOTAL $25,936,524 $77,93,86 $18,314,658 $19,476,251 $3,53,413 $14,261,479 $159,45,185 District Revenues include: Ad Valorem $1,477,587 Permit & License Fees 1,9, Miscellaneous Revenues 2,343,2 39

45 4 SOURCE OF FUND TOTAL District Revenues Fund Balance Local Revenues State General Revenues Ecosystem Management Trust Fund FDEP/EPC Gardinier Trust Fund P2 Revenue FDOT/Mitigation Water Management Lands Trust Fund Water Quality Assurance (SWIM) Trust Fund Florida Forever Other State Revenue Federal Revenues Federal through State (FDEP) SOURCE OF FUNDS $27,736,862 $26,113,13 1,327, ,58 6, Water Resources Planning and Monitoring $91,71,882 $3,524,782 48,193,828 1,5, 1,, 1,14, ,819 1,289,145 2,75, 5,26,875 Acquisition, Restoration and Public Works $15,541,96 $14,891,96 2, 63, Operation and Maintenance of Lands and Works $2,195,875 $19,995,875 2, Regulation TENTATIVE BUDGET - Fiscal Year Fiscal Year (Tentative Budget) SOURCE OF FUNDS BY PROGRAM SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT $13,597,115 $13,597,115 District Management and Administration District Revenues include: Ad Valorem Permit & License Fees Miscellaneous Revenues $2,2,842 $2,2,842 Outreach $11,464,833 1,7, 3,96,7 $17,776,482 $17,125,533 48,193,828 2,397,269 1,, 1,14, ,819 1,289,145 2,75, 6,73,455 6, Fiscal Year (Tentative Budget) III. Budget Highlights

46 III. Budget Highlights 5. Tentative Millage Rate The tentative budget for fiscal year is based on a tentative millage rate of.3818 mill, lowered from the adopted millage rate of.3928 mill in fiscal year This rate, adjusted for a 1.57 percent increase in new construction, will generate $11,464,833 in ad valorem property tax revenue for fiscal year The tentative budget reflects 96 percent of the total levy based on the historical collection rate. Lowering the millage rate to.3818 mill will result in $2.9 million of savings for the District s taxpayers. SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT THREE-YEAR AD VALOREM TAX COMPARISON Fiscal Years , and Tentative Budget - Fiscal Year Ad valorem Tax Comparison DISTRICTWIDE FY (Adopted) FY (Adopted) FY (Tentative) Ad Valorem Taxes $13,449,973 $1,477,587 $11,464,833 (1) Millage rate Rolled-back Rate Percent of Change of Rolled-back Rate % -3.63% -.5% Gross Taxable Value for Operating Purposes $274,339,74,461 $266,456,598,757 $276,826,961,838 Net New Taxable Value $2,724,151,5 $2,786,371,17 $4,19,737,21 Adjusted Taxable Value $271,614,922,961 $263,67,227,74 $272,636,224,628 1 Estimated for FY213-14; based on 96 percent of total estimated tax levy 41

47 6. Three-Year Use of Funds by Program III. Budget Highlights $26,44,43 13% $3,99,82 2% $16,781,67 8% $15,363,15 8% Fiscal Year (Actual Audited) $3,651,29 15% 1. Water Resources Planning and Monitoring 2. Acquisition, Restoration and Public Works 3. Operation and Maintenance of Lands and Works 4. Regulation 5. Outreach $11,969,655 54% 6. District Management and Administration $14,261,479 9% $3,53,413 2% $19,476,251 12% $18,314,658 12% Fiscal Year (Current Amended) $25,936,524 16% 1. Water Resources Planning and Monitoring 2. Acquisition, Restoration and Public Works 3. Operation and Maintenance of Lands and Works 4. Regulation 5. Outreach $77,93,86 49% 6. District Management and Administration $13,597,115 8% $2,2,842 1% $2,195,875 12% $15,541,96 9% Fiscal Year (Tentative Budget) $27,736,862 16% 1. Water Resources Planning and Monitoring 2. Acquisition, Restoration and Public Works 3. Operation and Maintenance of Lands and Works 4. Regulation 5. Outreach $91,71,882 54% 6. District Management and Administration 42