Ensuring Water Supply:Pompano Beach Reclaimed Water

Supply Facility

Providing Flood Control:Emergency Operations at S-357

Pump Station

Improving Water Quality:Flamingos at Stormwater

Treatment Area 2

Restoring Natural Systems:Loxahatchee River Restoration at

Lainhart and Masten Dam

July 13, 2017

SFWMD Fiscal Year 2017-18July Proposed Tentative Budget &

Proposed Millage Rates

2

Budget Calendar Timeline (Completed Milestones)

December 2 -- Submitted detailed DRAFT Fiscal Year 2017-18 Budget packet to Governing Board.

December 8 -- Governing Board meeting - Presented a DRAFT Fiscal Year 2017-18 Budget to the Governing Board.

January 12-- Governing Board meeting – Provided a DRAFT Fiscal Year 2017-18 Budget packet and update.

January 15 -- Submitted the Districts Fiscal Year 2017-18 Preliminary Budget for Legislative review pursuant to Section 373.535, Florida Statutes. Distribution includes President of the Senate, Speaker of the House of Representatives, Chairs of

legislative committees and subcommittees with substantive or fiscal jurisdiction over water management districts.

February 2 -- Provided a Fiscal Year 2017-18 Budget process update.

March 1 -- Received no Legislative comments on Fiscal Year 2017-18 preliminary budget.

March 21 -- Submitted communication on Governor’s recommended state appropriation budget for Fiscal Year 2017-18 for the District.

May 9 -- Submitted communication on House & Senate recommended state appropriation budget for Fiscal Year 2017-18 for the District.

May 11 -- Governing Board meeting – Provided a 2017 Legislative Budget update.

3

Budget Calendar Timeline (Completed Milestones)

June 8 -- Governing Board meeting – Presented a DRAFT proposed Fiscal Year 2017-18 Budget Proposal update.

June 30 -- Submitted Funding Proposals for Board Consideration Summaries and Proposed Operations & Maintenance Capital Program Summaries.

July 1 – July 7 -- Taxable Values received resulting in final Ad Valorem amounts vs. current estimates.

July 10 -- Basin board meeting to establish Tentative Millage Rates.

July 13 -- Governing Board meeting - Fiscal Year 2017-18 Tentative Budget update and Proposed Millage Rates approval. Request Governing Board approval of proposed millage rates for

certification to property appraisers. In compliance with Sections 200.065 & 373.536, Florida Statutes.

4

Budget Calendar Timeline

July 14 & 17 – Submission of the District’s Fiscal Year 2017-18 Draft Tentative Budget to Department of Environmental Protection.August 1 -- Submission of the District’s Fiscal Year 2017-18 Tentative

Budget for Governor and Legislative review.

August 24 -- Basin board meeting to approve the Final Millage Rate and Fiscal Year 2017-18 budget.

September 5 -- Consideration of Legislative comments on Tentative Budget.

September 14 -- Governing Board Business Meeting Fiscal Year 2017-18 Budget Update Presentation. Public hearing at 5:15 p.m. to consider Fiscal Year 2017-18 Tentative Millage Rates and

Budget and the Agricultural Privilege Tax Roll.

September 19 -- Governor & Legislative Budget Commission comments due 5 days before final Public Budget Hearing.

September 26 -- Public hearing at 5:15 p.m. to adopt Fiscal Year 2017-18 Final Millage Rates and Budget.

5

Today’s Discussion

Fiscal Year 2017-18 July Proposed Tentative Budget Update Calendar of Upcoming Process Milestones July DRAFT Tentative Budget Proposal Status:

• Comparison of Fiscal Year 2016-17 Adopted Budget to July DRAFT Proposed Budget.

• Revenues Pie Comparisons.• State Appropriations Funding from the 2017 Session.• Expenditures Pie Comparisons.• Key Expenditures.• Reserves Spend Down Update.

Proposals/Offerings for Consideration Next Steps

Request Governing Board approval of proposed millage rates for certification to property appraisers

Fiscal Year 2017-18 July DRAFT Proposed Updates from Fiscal Year 2016-17 Adopted

$32 Million IncreaseFiscal Year 2016-17 Adopted Budget $726.6

Ad Valorem + 4.4

State Revenues + 55.8

Agricultural Privilege Taxes + 0.2

Federal Revenues* + 0.3

Local Revenues (0.1)

Investment Earnings + 1.5

District Revenues (2.8)

Reserves (27.3)

Fiscal Year 2017-18 July DRAFT Budget Proposal $758.6

6

*Federal Revenues include estimated USACE OMRR&R cost share in accordance to signed Project Cooperation Agreements (PCA’s).

7

Revenue Comparison Fiscal Year 2016-17 Adopted to Fiscal Year 2017-18 July DRAFT Budget Proposal

8

Fiscal Year 2017-18 July DRAFT Budget Proposal Revenue Details

$274M Ad Valorem Taxes - No Tax Increase $4.4M Net Increase Over Fiscal Year 2016-17

$11.0M Agricultural Privilege Tax

$309.0M State Sources $249.6M 2017 Legislative Appropriations (Details page 10)

$52.2M Prior Year State Sources:

• $27.0M Dispersed Water Management

• $22.0M C-43

• $2.7M Indian River Lagoon South

• $0.5M Corbett Levee

$7.0M Florida Fish and Wildlife Conservation Commission Exotics/Aquatic

$0.2M Everglades License Tag

9

Fiscal Year 2017-18 July DRAFT Budget Proposal Revenue Details

$7.2M Federal Sources $1.7M Natural Resources Conservation Service (Dispersed Water Management -

Allapattah). $5.0M United States Army Corps of Engineers (USACE) – Operations Maintenance Repair,

Replacement and Rehabilitation (OMRR&R)Costs Cost Share.

$0.5M Department of Interior (DOI) (S-356 Modeling, Assessment and Monitoring).

$0.8M Local Sources $0.2M Water Management Districts (Gate Overhaul Program).

$0.6M Miami-Dade Model Lands/Cutler Bay.

$6.1M Investment Earnings

$42.1M District Revenues $33.9M Insurance Programs.

$ 3.5M Permit Fees- Environmental Resource Permit/Water Use/Compliance/Right of Way. $ 4.2M Leases.

$ 0.5M Disposition of District Personal Property.

Reserves $108.2M (Details page 15-16)

10

2017 Session State Appropriated Funding$249.6 Million

Everglades Restoration $167.7M Comprehensive Everglades Restoration Plan (CERP) $ 135.7M

• C-43 West Storage Reservoir $106.7M.• C-44 Reservoir/Stormwater Treatment Area $25M.• Comprehensive Everglades Restoration Plan (CERP) -- Planning & Design $4M.

Restoration Strategies $32M

SB10 Everglades Restoration $34M Everglades Agricultural Area (EAA) Reservoir Land Acquisition $30M. Everglades Agricultural Area (EAA) Post Authorization Report $3M. C-51 Reservoir Phase II Negotiations $1M.

Northern Everglades $19M (continue Lakeside Ranch Phase II)

Dispersed Water Management (new Public Private service payments/ operations/ District Dispersed Water Programs) $15M

Alligator Alley Tolls $5.1M (Year 2 of 3 Year Agreement)

Dispersed Water Management (existing operations) $5M

Land Management $2.3M

Biscayne Bay Coastal Wetlands $1.5M

11

Expenditure Comparison Fiscal Year 2016-17 Adopted to Fiscal Year 2017-18 July DRAFT Budget Proposal

12

Key ExpendituresAcquisition, Restoration and Public Works $369.8M

$ 48.9M Commitment to Governor’s Restoration Strategies Initiative • Highlights include:• $30.5M to increase capacity at Stormwater Treatment Area (STA) 1 West.• $8.7M for Bolles Canal related conveyance improvements construction.• $2.4M for modeling and design of Mecca Shallow Impoundment.• $2.2M to begin on the Stormwater Treatment Area (STA) 5 Earthwork.• $4.4M to continue implementation of the Science Plan to help improve Stormwater

Treatment Area (STA) performance. $130M to benefit the Caloosahatchee River and Estuary, including continuing

construction of the Caloosahatchee River (C-43) Reservoir to ensure enough water flow to the river during dry months.

$33M Everglades Agricultural Area (EAA) Reservoir (SB10). $25M for construction progress on the C-44 Stormwater Treatment Area (STA)

allowing the treatment of local runoff to the St. Lucie Estuary (United States Army Corps of Engineers (USACE) constructing Reservoir).

$47M Dispersed Water Management (DWM) (service payments and operations & maintenance for new public/private Dispersed Water Storage & existing operations).

$19.1M construction of Lakeside Ranch Stormwater Treatment Area (STA) and Pump Station.

13

Key Expenditures

Operations & Maintenance of Lands and Works $272.5M $61.8M for continued refurbishment of South Florida’s flood control system

(Details page 14) • Includes an increase of $3M in recurring revenues for external/contractual from

$50.2M to $53.2M

• Includes Internal Salary for Staff Time

$61.3M Emergency/Hurricane Reserves

$82.3M Flood Control System

$24M Invasive Control System-wide

$15M Land Management

Water Resources Planning & Monitoring $55.6M $29.7M Water Management Planning (Water Supply Planning & Other Water

Resource Planning

$22.6M Research, Data Collection, Analysis & Monitoring

14

Draft Operations & Maintenance Capital Project Highlights

Project Amount Project Amount

S-5A Refurbishment 11.1$ G-310/G-335 Trash Rake Replacement (Design) 0.6$

S-140 Improvements 8.9$ SCADA Stilling Well/Platforms Replacements 0.5$

Golden Gate Weir 4 Replacement 4.7$ S-9 Access Bridge Replacement 0.5$

S-39A Replacement and Automation 4.2$ S-151 Structure Replacement and Automation 0.5$

Spillway Refurbishments S-72/S-75/S-82 3.7$ G-420 and G-420S Modifications (Design) 0.4$

O&M Capital Program Support 3.6$ Generator Replacement Program 0.4$

S-34 Replacement/Automation, S-141 Replacement & G-123 Demolition 3.4$ S-9/S-9A Trash Rake and Pump Station Refurbishments (Design) 0.3$

Inspection Programs 3.3$ Homestead Field Station Building Replacements (Design) 0.2$

West Palm Beach Field Station Project Culvert Replacements 2.9$ Culvert 8 Bulkhead 0.2$

Lainhart and Masten Dam Repairs 1.9$ S-169 Replacement, C-20 & C-21 Canal Dredging (Design) 0.2$

BCB Curry Canal Control Structure 1.6$ Information Technology Facility Replacement Project Homestead Field Station Package 0.2$

Gate Overhaul Program 1.4$ C-100A Tree Removal 0.2$

B-66 Tower Replacement 1.2$ S-65D Refurbishment (Design) 0.2$

SCADA System Replacement 1.1$ BCB Stage Recorders & Rain Gauges 0.1$

Pump/Engine Overhaul Program 0.9$ Gate Control Panel Replacement (Design) 0.1$

S-331 Pump Refurbishment 0.8$ L-8 Dupuis Culvert Replacements (Design) 0.1$

South Dade Conveyance System Communication System Upgrades 0.8$ S-40, S-41, & S-44 Refurbishment (Design) 0.1$

Project Culvert Replacements and Removals Program 0.7$ S-178 Gate Replacement & Automation and S-197 Automation (Design) 0.1$

C-40 Dredging and Bank Stabilization 0.6$ S-135 By-Pass Culvert Abandonment (Design) 0.1$

Fiscal Year 2017-18 July Draft Budget Proposal for the Operations & Maintenance Capital Program

Total of Fiscal Year 2017-18 July Draft Budget Proposal Operations & Maintenance Capital Program $61.8M

15

Total Reserves = $286,547,730Total Reserves Without Restriction = $124,939,149

Description

Fiscal Year

2017-18

Fiscal Year

2018-19

Fiscal Year

2019-20

Fiscal Year

2020-21

Fiscal Year

2021-22

Remaining

Balance Total

1

2 Restoration Strategies $13,036,000 $11,366,747 $9,826,789 $13,188,120 $8,000,000 $55,417,656

3 Cooperative Funding Program $9,000,000 $9,000,000

4 Central Florida Watershed Initiative (CFWI) $2,833,606 $2,833,606

5 Tax Collector & Property Appraiser Fees $2,726,308 $2,726,308

6 IRL National Estuary Program Projects $500,000 $500,000 $500,000 $1,500,000

7 Information Technology Desktop Refresh $450,000 $450,000

8 Everglades Restoration $443,277 $75,000 $70,000 $588,277

9 C-43 WQ Testing Facility (BOMA) $174,191 $174,191

10 Caloosahatchee Minimum Flows and Levels $60,000 $60,000

11 NEEPP & EFA Source Controls $40,000 $120,000 $160,000

12 Future O&M New Works $2,073,888 $3,753,555 $6,022,643 $11,850,086

13

Budget Stabilization & Future Expenditures to be

Determined by the Board $40,179,025 $40,179,025

14 Reserves Without Restrictions $29,263,382 $14,135,635 $14,150,344 $19,210,763 $8,000,000 $40,179,025 $124,939,149

Reserves Without Restrictions

16

Total Reserves = $286,547,730Total Reserves With Restrictions = $161,608,581

Description

Fiscal Year

2017-18

Fiscal Year

2018-19

Fiscal Year

2019-20

Fiscal Year

2020-21

Fiscal Year

2021-22

Remaining

Balance Total

15

16 Hurricane/Emergency Reserves* $61,255,337 * * * * * $61,255,337

17 Self-Insurance Programs** $638,326 $9,621,072 $10,259,398

18 Mitigation - Lakebelt/Wetland $8,987,721 $12,975,674 $12,975,673 $12,975,673 12,975,673 $60,890,413

19 Big Cypress Basin $4,668,292 $1,216,377 $17,800 $2,012,032 1,075,225 $8,989,726

20 S-332 B,C,D Replacement Payment from USACE $776,262 $776,262

21 Alligator Alley Tolls, Everglades License Tag Balances $302,212 $444,318 $134,134 $134,134 $134,134 $1,148,931

22 Land Management (Lease Revenue) $371,401 $371,401 $371,401 $371,401 $371,401 $8,565,968 $10,422,973

23 COPS Debt Service $318,117 $318,117

24 Indian River Lagoon Estuarine Projects (IRL Tag) $164,914 $164,914

25 L-31 East Flow Way $1,482,070 $1,482,070

26 Future Land Acquisition (Surplus Land Sales Revenues) $5,900,440 $5,900,440

27 Reserves With Restrictions Total $78,964,652 $15,007,770 $13,499,008 $15,493,240 $14,556,433 $24,087,480 $161,608,581

28 Grand Total $108,228,034 $29,143,405 $27,649,352 $34,704,003 $22,556,433 $64,266,505 $286,547,730

* Assumes Hurricane/Emergency Reserves are re-appropriated each fiscal year unless needed** Self-Insurance Programs comprise of Health Insurance, Workers Compensation, General Liability, Auto Liability. The remaining balance is to cover

Actuarially determined Self Insurance Liabilities and Office of Insurance Regulation Health Insurance Claims requirement.

Reserves With Restrictions

17

Proposals For Board Consideration $3M Employee Compensation – Recurring Funding

Additional Funding Requests Funding Requests $15.1M from Reserves Without Restrictions

• $200K Kissimmee River Dissolved Oxygen Network Enhancement/Expansion Equipment. • $100K Water Quality & Water Supply Monitoring Equipment.• $1M Heavy Equipment.• $760K Federal Aviation Administration Required Helicopter Refurbishment.• $1M Taylor Creek Aquifer Storage & Recovery (ASR) System Evaluation.• $1M Litigation Expense.• $1.6M Vertical Datum Upgrade (Over 3 Years).• $450K Operations Emergency Model Forecasting Tool.• $4M Okeechobee Field Station & Service Center • $5M Lake Okeechobee Deep Injection Wells –(Subject to State Reimbursement)

Recurring Funding Request $2.6M• $33K Kissimmee River Dissolved Oxygen Network Enhancement/Expansion Monitoring.• $480K Water Conservation Area (WCA) 3 & Kissimmee Lygodium Control. • $1.4M Field Operations & Maintenance.• $300K Coastal Structures Level of Service Evaluation.• $350K Python Removal Program

Updated Ad Valorem Estimates(in Millions $)

Ad Valorem Revenue Category

Fiscal Year 2017-18

Preliminary

Fiscal Year 2017-18

Tentative

Variance

Baseline $267.4 $268.0 $0.6

New Construction 4.6 6.0 1.4

Total $272.0 $274.0 $2.0

18

Ad Valorem Trend(in Millions $)

Budgeted Revenue (Discounted)

Fiscal Year 2014-15

Fiscal Year 2015-16

Fiscal Year 2016-17

Fiscal Year 2017-18

Baseline Revenue $266.5 $265.9 $266.9 $269.5

Value Adjustment Board Impact

(3.4) (2.9) (2.2) (1.5)

New Construction 2.8 3.9 4.8 6.0

Total $265.9 $266.9 $269.5 $274.0

19

Ad Valorem Taxing Basins

20

Ad Valorem Millage Rates Okeechobee Basin

Millage Rates Fiscal Year 2016-17 Adopted

Millage Rates

Fiscal Year 2017-18 Rolled-Back Millage Rates

Change from Prior Year

Adopted to Proposed

District-wide 0.1359 0.1275 (0.0084)

Okeechobee Basin 0.1477 0.1384 (0.0093)

Everglades Construction Project

0.0471 0.0441 (0.0030)

Okeechobee BasinTotal Millage Rate

0.3307 0.3100 (0.0207)

21

Ad Valorem Millage Rates Big Cypress Basin

Millage Rates Fiscal Year 2016-17 Adopted

Millage Rates

Fiscal Year 2017-18 Rolled-Back Millage Rates

Change from Prior Year

Adopted to Proposed

District-wide 0.1359 0.1275 (0.0084)

Big Cypress Basin 0.1336 0.1270 (0.0066)

Big Cypress Basin Total Millage Rate

0.2695 0.2545 (0.0150)

22

Resolution

23

A Resolution of the Governing Board of the South Florida WaterManagement District to approve submission of the proposed FiscalYear 2017-18 millage rates for the purpose of advising countyProperty appraisers for publication on Truth in Millage (TRIM) notices.

District-at-large: 0.1275 mills

Okeechobee Basin: 0.1384 mills

Everglades Construction Project: 0.0441 mills

Big Cypress Basin 0.1270 mills

Proposed millage rates equal the rolled-back rates.

No increase in property taxes.

24

Next StepsJuly 14 & 17 -- Submission of the District’s Fiscal Year 2017-18 Draft Tentative

Budget to Florida Department of Environmental Protection (FDEP).

August August 1 -- Submission of the District’s Fiscal Year 2017-18 Tentative Budget

for Governor and Legislative review. In compliance with Section 373.536, Florida Statutes. August 24 -- Basin board meeting to approve the Final Millage Rate and

Fiscal Year 2017-18 Budget.

September Potential for Governing Board Amendments September 14

• Governing Board Regular Meeting Fiscal Year 2017-18 Tentative Budget Update.

• 5:15 PM Public hearing to consider Fiscal Year 2017-18 Tentative Millage Rates and Budget and the Agricultural Privilege Tax Roll.

September 26 -- 5:15 PM Public hearing to adopt Fiscal Year 2017-18 Final Millage Rates and Budget.

Ensuring Water Supply:Pompano Beach Reclaimed Water

Supply Facility

Providing Flood Control:Emergency Operations at S-357

Pump Station

Improving Water Quality:Flamingos at Stormwater

Treatment Area 2

Restoring Natural Systems:Loxahatchee River Restoration at

Lainhart and Masten Dam

Discussion