Item # 36July 16, 2015

FY2016 Preliminary Budget

DRAFT

2FY16 budget update: Ad Valorem Update Revenues/Expenditures Spend Down Plan Update Key Projects

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

Todays Presentation

3 December 11 presented preliminary FY16 budget to Governing Board

January 15 submit preliminary FY16 budget March 1 Legislative review comments due

Outcome of legislative review is basis for tentative budget submission on August 1

July 16 FY16 GB budget update & millage rate approval

Budget Review Timeline

Updated Ad Valorem Estimates (in Millions)

Revenue CategoryFY16

PreliminaryFY16

Updated Variance

Baseline $ 262.4 $ 263.0 $ 0.6

New Construction $ 2.8 $ 3.9 $ 1.1

Total $ 265.2 $ 266.9 $ 1.7

Value Adjustment Board Taxroll Impacts

Prior Year Taxable Value Certification

Tax Base (In Billions)

Miami-Dade (In Billions)

July 2014 (FY15) $ 741.023 $ 212.615 July 2015 (FY16) $ 733.051 $ 206.697 Change (in Billions) $ (7.972) $ (5.918)

6Baseline Ad Valorem Revenues

-$11.2B -$8.6B

-$8.7B

600,000,000,000

620,000,000,000

640,000,000,000

660,000,000,000

680,000,000,000

700,000,000,000

720,000,000,000

740,000,000,000

760,000,000,000

FY12 FY12Revised

FY13 FY13Revised

FY14 FY14Revised

FY15 FY15Revised

SFWMD FY Taxable Value Changes

-$7.9B

Ad Valorem Trend

FY12 FY13 FY14 FY15FY16

Certified

Baseline Revenue 270.7 270.7 268.1 266.6 265.9 Change in Baseline - (4.7) (3.5) (3.5) (2.9)

New Construction N/A 2.1 2.0 2.8 3.9

Total 270.7 268.1 266.6 265.9 266.9

8Baseline Ad Valorem Revenues

240.0

245.0

250.0

255.0

260.0

265.0

270.0

275.0

280.0

285.0

FY12 FY13 FY14 FY15 FY16

AdValoremImpacts

ACTUAL/FY16UPDATED

W/OUTPYVAB

W/OUTRS

9 Revise spend down & use funds to balance FY16 GB delay, reprioritize, cancel spend down projects Alter RS funding model & direct recurring $ to

baseline needs Redirect recurring funding from $50M C&SF

refurbishment and backfill with reserves GB could eliminate all funding for dispersed water

management/water farming except state approps GB could eliminate all local cooperative project

funding except state approps

Options for Balancing the FY16 Budget

10FY16 Budget Update

11

FY16 Tentative Budget

FY16 Tentative Revenues $753,816,288

AdValoremTax$266,942,829

35%

AgPrivTax$10,950,000

1%

StateSources$181,567,018

24%FederalSources$7,400,105

1%

LocalSources$866,158

0%

InvestmentEarnings$3,650,000

1%

FeesandOther$52,117,787

7%

BudgetedNonAdValoremFundBalances$49,399,808

7%

BudgetedAdValoremFundBalances$180,922,583

24%

12

Ad Valorem Tax Revenue Trend

553.0 549.4525.2

459.9

399.0

270.7 268.1 266.6 265.9 266.9

0.0

100.0

200.0

300.0

400.0

500.0

600.0

FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16

FY16 Ad Valorem Budget Status

FY16PreliminaryBudgetAdValRecurringDeficit 8.7Changes/ReductionsbetweenJanuaryandJune (6.3)LandManagement 2.0OperationsSupport 2.7Recurringneedsfundedfromonetimebalances 7.9ShiftPicayuneO&MtoDistrictFunding 0.8

ShiftPicayuneRestorationProjecttoDistrictFunding 0.3RevisedAdValoremRecurringDeficit 16.1

LessRedirectofPYNewConstructionfromRS (4.5)BaselineRevenueChange (0.6)FY16NewConstruction (3.7)

RevisedAdValoremRecurringDeficit 7.3

14

Restoration Strategies: $32.0M STA1-W Expansion #1 $25.4M G-341 & Conveyance Features $6.6M

CERP/Northern Everglades: $49.8M C-44 STA & Pump Station $40.0M C-43 West Storage Reservoir $9.8M

FY16 State Appropriations Funding $126.9M

15

Kissimmee Restoration $20.0M Land Management $3.85M Alligator Alley Tolls $7.0M Dispersed Water Mgt $5.0M Debt Service $6.9M C-43 Reservoir $2M IRL Operations $350K

FY16 State Appropriations Funding $126.9M

16

FY16 Tentative Budget

FY16 Tentative Expenditures $753,816,288

Land Stewardship$53,223,206

7%Mission Support

$36,819,671 5%

Modeling & Scientific Support

$13,655,415 2%

Operations & Maintenance$202,593,768

27%

Regulation$19,462,153

3%

Restoration$371,607,884

49%

Water Supply$18,884,684

2%

Internal Service Funds$37,569,507

5%

10-Year FTE/Funded Positions Trend

1784 18081828 1842

1933

1647 1620 15881530 1530

0

500

1000

1500

2000

FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16

-403

18

FY16 Everglades Ad Valorem Recurring Costs

FY16 Tentative Budget Ad Valorem Revenue Sources: $ 88.0 Ag Tax 10.9 Alligator Alley 1.0 Interest Earnings 1.0 Ad Valorem Property Taxes 75.1

ECP Ad Valorem 35.4 General Ad Valorem 28.0

Okeechobee Basin Ad Valorem 11.7

FY16 Tentative Budget Summary of Everglades Recurring Ad Valorem Budget $ 88.0 Debt Service 35.2Northern & Southern Everglades 50.9

Storm Water Treatment Areas O&M, Exotics, Monitoring, Science, Regulatory 31.8CERP Planning, O&M, Exotics, Monitoring, Science 10.7

Lake Okeechobee 5.7Kissimmee River Restoration 2.3

Estuaries 0.4Caloosahatchee & St. Lucie Estuaries 1.9

19

S-5A Refurbishment/Automation Construction $9.6M North Shore Path Command/Control & Automation

Construction $7.4M IT Shelters Construction $4.1M S-46 Construction $3.7M C-4 Canal Bank Improvements Construction $3.5M G-123/S-34 Refurbishment Construction $2.9M SCADA System Replacement Project $2.0M Engineering Design $2.0M S-13 Repower $1.2M

FY16 O&M Capital Refurbishment Key Projects

20

FY16 Key Restoration Projects Restoration Strategies $75.4M

Restoration Strategies Project State Funding District Cash Total FY16STA1-W Expansion #1 25,704,660$ 20,241,827$ 45,946,487$ G-341 & Conveyance Features 6,600,000$ 727,385$ 7,327,385$ G-716 (S-375) Structure Expansion 2,713,565$ 1,777,108$ 4,490,673$ Lainhart & Masten Conveyance 1,646,075$ 296,546$ 1,942,621$ S-5AS Divide Structure 103,918$ 244,114$ 348,032$ L-8 Divide Structure 103,918$ 267,487$ 371,405$ MECCA Replacement Features 100,000$ 4,835,891$ 4,935,891$ Science Plan Projects and Program Support -$ 8,976,635$ 8,976,635$ Source Control Projects -$ 1,037,230$ 1,037,230$ FY16 Restoration Strategies Total 36,972,136$ 38,404,223$ 75,376,359$

21

C-44 STA - $45.6M Lakeside Ranch STA - $12.7M Picayune Strand - $9.3M L-31E Flowway - $1.8M Lake O BMAP Planning - $1.0M C-43 West Storage Reservoir - $27.7M Lake Hicpochee - $12.7M Kissimmee Restoration - $38.6M Ten Mile Creek - $7.0M C-111 South Dade - $20.0M Cooperative Funding Program - $9.0M

FY16 Key Restoration/Resource Projects

22Dispersed Water Management

FundingSources FY16 FY17 FY18 FY19 FY20FY25 GrandTotalAdValorem 44,255 44,255FederalGrant(NRCSWetlandsReservePgm) 2,843,357 2,843,357LakeOkeechobeeTrustFund 955,180 955,180Balanceof2014StateAppropriation1622B 3,500,000 3,500,0002015StateAppropriation1616 5,000,000 5,000,000TotalFundingAvailable 12,342,792 12,342,792

DispersedWaterManagementProjects FY16 FY17 FY18 FY19 FY20FY25 TotalNicodemusSlough 2,512,683 2,576,063 2,641,345 2,708,585 8,102,658 18,541,334NorthernEvergladesPaymentforEnvironmentalServices 620,479 1,562,637 1,562,637 1,562,637 7,364,026 12,672,414PublicLandsProjects 3,581,357 220,000 220,000 270,000 20,000 4,311,357Monitoring/CapitalEquipment 355,810 180,931 210,000 210,000 1,250,000 2,206,741FloridaRanchlandsEnvironmentalServicesProgram 520,288 520,288WaterFarmingSLE 7,500 7,500

7,598,116 4,539,631 4,633,982 4,751,222 16,736,684 38,259,635

CumulativeCashSurplus/Shortage 4,744,675 205,045 (4,428,937) (9,180,159) (25,916,843)

23New Works Costs

NewWorksCosts

FY16 FY17 FY18 FY19 FY20NewWorksTotal 10,039,553 10,952,438 12,722,480 13,481,330 18,361,744PicayuneNewWorks 1,796,205 2,088,094 1,969,309 2,228,968 2,997,288NewWorksGrandTotal 11,835,758 13,040,532 14,691,789 15,710,298 21,359,032

AnnualUSACEReimbursementRevenue 2,647,952 2,666,925 3,327,827 3,665,289 4,052,256PicayuneAnnualUSACEReimbursementRevenue 375,954 546,340 494,925 549,147 853,112AnnualUSACEReimbursementRevenueTOTAL 3,023,906 3,213,265 3,822,752 4,214,436 4,905,368

AnnualNetImpacttoSFWMD 8,811,852 9,827,267 10,869,037 11,495,862 16,453,664

RedirectionofPicayuneCoststoDistrictMillage

FY16 FY17 FY18 FY19 FY20PicayuneNewWorksCosts 1,137,026 1,485,475 1,280,243 1,539,902 2,426,309PicayuneRestorationProjectStaff 339,666 339,666 339,666 339,666 339,666

ExpenditureShift 1,476,692 1,825,141 1,619,909 1,879,568 2,765,975

PicayuneAnnualUSACEReimbursementRevenue 375,954 546,340 494,925 549,147 853,112

AnnualNetImpacttoDistrictwideMillage 1,100,738 1,278,801 1,124,984 1,330,421 1,912,863

Spend Down Plan UpdateAdValoremFundBalance FY2016 FY2017 FY2018 FY2019 FY2020 TotalHurricane/EmergencyReserve $60,015,738 $60,015,738RestorationStrategies $35,875,956 $25,100,000 $22,983,526 $21,901,909 $105,861,391EvergladesRestoration $22,824,386 $45,000 $20,000 $20,000 $22,909,386CaloosahatcheeWatershed $10,696,224 $75,000 $10,771,224LakeOkeechobeeRestoration $10,159,255 $10,159,255Cooperative/LocalAgreements $9,015,000 $20,000 $9,035,000O&MOperations $7,328,300 $7,328,300RecurringAdValoremDeficit $7,289,279 $7,289,279KissimmeeRiverRestoration $4,548,404 $4,548,404CentralFloridaWatershedInitiative $3,144,500 $3,144,500TaxCollector&PropertyAppraiserFees $2,716,308 $2,716,308BigCypressBasinFundBalance $1,837,427 $2,251,244 $2,251,244 $2,251,244 $2,251,244 $10,842,402IRL/St.LucieRestoration $550,000 $150,000 $700,000LandManagement $220,000 $220,000PerformanceMeritBonus $4,700,000BudgetStabilization $3,897,477 $3,897,477 $3,897,475 $3,897,476 $15,589,905

AdValoremTotal $180,920,777 $31,538,721 $29,152,247 $28,070,628 $6,148,720 $271,131,092RestrictedFundBalanceMitigation Lakebelt/Wetland $26,609,336 $6,299,126 $6,299,126 $6,299,126 $6,299,126 $51,805,841EvergladesRestoration $12,636,303 $651,219 $113,201 $113,201 $113,201 $13,627,126DispersedWaterManagement $4,455,180 $4,455,180KissimmeeRiverRestoration $2,389,778 $2,389,778InternalServiceFunds(HealthInsurance&SelfInsurance) $1,700,931 $2,902,131 $2,902,131 $2,902,131 $2,902,131 $13,309,454LandManagement(LeaseRevenue) $1,451,014 $1,733,651 $1,733,651 $1,733,651 $1,733,651 $8,385,616IRL/St.LucieRestoration $159,072 $17,433 $176,505NonSpendable(InventoryReserves) $0(blank) $0COPSInterest $236,950 $236,950RestrictedTotal $49,401,614 $11,840,510 $11,048,109 $11,048,109 $11,048,109 $94,386,450

GrandTotalSpendDownPlan $230,322,391 $43,379,231 $40,200,356 $39,118,737 $17,196,829 $365,517,542

SFWMD Ad Valorem Spend Down Plan (Millions of $)

120.9

31.5 29.1

28.1

6.10

20

40

60

80

100

120

140

FY16 FY17 FY18 FY19 FY20

26

Revise spend down & use funds to balance FY16 GB delay, reprioritize, cancel spend down projects Alter RS funding model & direct recurring $ to

baseline needs Redirect recurring funding from $50M C&SF

refurbishment and backfill with reserves GB could eliminate all funding for dispersed water

management/water farming except state approps GB could eliminate all local cooperative project

funding except state approps

Options for Balancing the FY16 Budget

27FY16 Decision Points/Guidance

Balancing FY16 with $7.3M fund balance Modification of Spend Down Plan Modification of Restoration Strategies funding

model Dispersed Water Management funded from state

appropriations District to pay for Picayune O&M/project costs

Proposed Millage Rates Current Rolled Back Rate Calculations

Millage RateFY15

Adopted

FY16 Rolled Back Recommended

% Change from Rolled

Back

Change from FY15

AdoptedDistrict-wide 0.1577 0.1459 0.1459 0.00% -0.0118Okeechobee Basin 0.1717 0.1586 0.1586 0.00% -0.0131Everglades Construction Project 0.0548 0.0506 0.0506 0.00% -0.0042Total Okeechobee Basin 0.3842 0.3551 0.3551 N/A -0.0291

District-wide 0.1577 0.1459 0.1459 0.00% -0.0118

Big Cypress Basin 0.1520 0.1429 0.1429 0.00% -0.0091Total Big Cypress Basin 0.3097 0.2888 0.2888 N/A -0.0209

Adopt rolled back millage rates for certification to county appraisers for Truth in Millage compliance purposes: District-at-large 0.1459 mills (0.00% above rolled back rate) Okeechobee Basin 0.1586 mills (0.00% above rolled back rate) Everglades Construction Project 0.0506 mills (0.00% above

rolled back rate) Big Cypress Basin 0.1429 mills (0.00% above rolled back rate)

Staff Recommendation

30

July 16 FY16 GB budget update & millage rate approval

August 1 submit tentative FY16 budget August 25 Big Cypress Basin millage rate and

budget finalized September 10 public hearing to adopt tentative

millage rates, budget & ag privilege taxroll September 22 public hearing to adopt final

millage rates & budget

Budget Review Timeline

Thank You