This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h0877.LAV
DATE: 2/10/2022
HOUSE OF REPRESENTATIVES LOCAL BILL STAFF ANALYSIS
BILL #: HB 877 Downtown Development Authority of the City of Fort Lauderdale, Broward County
SPONSOR(S): Gottlieb
TIED BILLS: IDEN./SIM. BILLS:
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Local Administration & Veterans Affairs
Subcommittee
Leshko Miller
2) Ways & Means Committee
3) State Affairs Committee
SUMMARY ANALYSIS
The Downtown Development Authority of the City of Fort Lauderdale is a special taxing district created to
provide economic development, redevelopment, and coordination services to benefit areas of the city. To
support the projects and responsibilities of the Authority, the City is authorized to levy ad valorem taxes not to
exceed one mill annually. The DDA’s charter defines those properties subject to taxation and excludes most
actual residential property. The enabling law for the DDA is due to expire on December 31, 2030.
The bill removes the expiration date for the enabling act and provides for the transfer of the Authority’s assets
and liabilities to the City if the Authority is dissolved in the future.
The economic impact statement projects the bill will have no effect on state or local revenues or expenses.
STORAGE NAME: h0877.LAV PAGE: 2
DATE: 2/10/2022
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Present Situation
The Downtown Development Authority of the City of Fort Lauderdale (DDA) was established by special
act of the Legislature in 1965.
1
The DDA serves several functions in the community, including
economic development, redevelopment of blighted areas, marketing, and coordinating projects
between governmental entities and the private sector.
2
The DDA is governed by a seven member
board appointed to staggered four-year terms by the Fort Lauderdale City Commission.
3
Board
members must reside within the City of Fort Lauderdale and be either a landowner, leasehold tenant
required to pay taxes within downtown Fort Lauderdale, or be an officer, director, or managing agent of
a corporation owning or leasing land in the downtown area and responsible for paying taxes on those
properties.
4
The original charter provided the act creating the DDA would sunset on December 31, 1970.
5
In 1969,
the charter was recodified and the sunset date extended to 2010.
6
This date again was extended, to
the current expiration of December 31, 2030, in the 2005 recodification of the DDA charter.
7
The DDA’s current charter defines “downtown” as all lands described in Section 2 of the charter that
are “not being used as a residence.”
8
“Not being used as a residence” is defined as all residential
9
lands not being used as a “residence,” as well as portions of nonresidential lands not being used as a
“residence.”
10
A “residence” is defined as a building used as living quarters by one or more persons.
11
The executive director of the DDA determines whether property constitutes a residence.
12
The executive director prepares an annual budget for the DDA, conforming to the fiscal year of the city
and containing the information required of city departments in their respective budgets. The budget is
submitted to the board of the DDA for approval. After approval, a copy of the budget is submitted to the
city, with a statement of the necessary millage to fund services, as determined by the DDA board.
13
The City Commission of Fort Lauderdale is authorized to levy an ad valorem tax of up to one mill to
finance the operations of the DDA. The funds generated by this tax are deposited in the city treasury,
credited to the DDA.
14
The City Commission has the authority to use a “reasonable pro rata share” of
the funds to defer the cost of handling and auditing.
15
According to its audited financial statement for the fiscal year ending September 30, 2020, the Authority
received ad valorem tax revenues of $1,680,023 (out of total revenues of $2,514,750) and had
expenses of $2,195,907. However, the Authority’s total position net of all revenues and liabilities was a
deficit of ($1,952,069), primarily due to a continuing deficit from previous years. The auditor concluded
that if the Authority maintained its current practice of spending less on current recurring operating
1
Ch. 65-1541, Laws of Fla. The district charter was recodified in 2005. Ch. 2005-346, Laws of Fla.
2
Fort Lauderdale Downtown Development Authority, What We Do, at https://www.ddaftl.org/ (last visited Jan. 29, 2022).
3
Ch. 2005-346, s. 5, Laws of Fla.
4
Ch. 2005-346, s. 6(1), Laws of Fla.
5
Ch. 65-1541, s. 15, Laws of Fla.
6
Ch. 69-1056, s. 14, Laws of Fla.
7
Ch. 2005-346, s. 15, Laws of Fla.
8
Ch. 2005-346, s. 5(a) of s. 1, Laws of Fla.
9
Defined as lands zoned by the City of Fort Lauderdale as R-1-A, R-1, R-1-P, R-2-A, R-2, R-3-A/RM-25, R-3-9, RM-15, R-3/RM-30, R-
3-C, R-4/RM-60, or R-4-C. Ch. 2005-346, s. 5(d) of s. 1, Laws of Fla.
10
Ch. 2005-346, s. 5(b) of s. 1, Laws of Fla.
11
Ch. 2005-346, s. 5(c) of s. 1, Laws of Fla.
12
Ch. 2005-346, s. 5(b) of s. 1, Laws of Fla.
13
Ch. 2005-346, s. 11, Laws of Fla.
14
Ch. 2005-346, s. 12, Laws of Fla.
15
Ch. 2005-346, s. 13, Laws of Fla. STORAGE NAME: h0877.LAV PAGE: 3
DATE: 2/10/2022
expenses than the amounts received as current recurring operating revenue, it would have sufficient
funding for annual capital improvements.
16
The Authority’s audited financial statement for fiscal year for 2019-2020 reported two outstanding long-
term bond issues with a combined outstanding balance of $4,968,474, of which $437,887 was due
within the following year. The first was a general obligation bond, series 2000, initial issue of
$10,000,000 in 2000 payable over 20 years. In 2010 the Authority amended the bonds to extend the
maturity date to September, 2029. The second bond issue was a general obligation bond, series 2020,
with an initial issue of $2,000,000 payable over 10 years.
17
The Authority’s proposed budget for fiscal year 2021-2022 is based on ad valorem tax levies of 0.600
mills for the general fund and 0.4755 mills for debt approved by the voters. Because the budge projects
no necessary debt service for the fiscal year, the estimated revenues are $1,180,512 from ad valorem
taxes, $178,827 from other sources, estimated expenditures are $1,583,494, resulting in an ending
positive fund balance of $319,295.
18
The DDA’s charter currently is set to expire on December 31, 2030. On that date, all assets of the
authority will become property of the City of Fort Lauderdale. If the Authority has any remaining
outstanding debt at dissolution, the city is allowed to continuing levying ad valorem taxes authorized by
the charter to retire the indebtedness.
19
Effect of the Bill
The bill removes the expiration date of December 31, 2030, from the enabling act and provides for the
transfer of the Authority’s assets and liabilities to the City if the Authority is dissolved.
B. SECTION DIRECTORY:
Section 1: Amends ch. 2005-346, s. 15, Laws of Fla., by removing the expiration date for the law
and requiring the assets and liabilities of the Authority be transferred to the City of Fort
Lauderdale if the Authority is dissolved in the future.
Section 2: Provides the bill is effective upon becoming a law.
II. NOTICE/REFERENDUM AND OTHER REQUIREMENTS
A. NOTICE PUBLISHED? Yes [X] No []
IF YES, WHEN? November 7, 2021
WHERE? Sun-Sentinel Newspaper, Broward/Palm Beach/Miami-Dade Counties
B. REFERENDUM(S) REQUIRED? Yes [] No [X]
IF YES, WHEN?
C. LOCAL BILL CERTIFICATION FILED? Yes [X] No []
16
Florida Auditor General, Downtown Development Authority of the City of Fort Lauderdale Basic Financial Statements for the Year
Ended September 30, 2020, at
https://flauditor.gov/pages/specialdistricts_efile%20rpts/2020%20downtown%20development%20authority%20of%20the%20city%20of
%20fort%20lauderdale.pdf (last visited Feb. 6, 2022).
17
Id. at 21, Note 6.
18
Fort Lauderdale Downtown Development Authority, Budget Summary Fiscal Year 2021-2022, at
https://drive.google.com/file/d/18IiBq2Rj3ov3Yzet1II4-Y4p5_pp83M5/view (last visited Jan. 29, 2022).
19
Ch. 2005-346, s. 15, Laws of Fla.
STORAGE NAME: h0877.LAV PAGE: 4
DATE: 2/10/2022
D. ECONOMIC IMPACT STATEMENT FILED? Yes [X] No []
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
None.
B. RULE-MAKING AUTHORITY:
The bill neither requires nor provides authority for administrative agency rulemaking.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES