This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h0013B.SAC
DATE: 2/6/2023
HOUSE OF REPRESENTATIVES LOCAL BILL STAFF ANALYSIS
BILL #: HB 13B Eastpoint Water and Sewer District, Franklin County
SPONSOR(S): Shoaf
TIED BILLS: IDEN./SIM. BILLS:
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) State Affairs Committee Miller Williamson
SUMMARY ANALYSIS
The Eastpoint Water and Sewer District (District) is an independent special district created by special act in
1967. The District’s purpose is to acquire, operate, and maintain water and sewer systems, serving the
unincorporated areas of Franklin County and other customers as the District may determine. The District is
governed by a five-member board of supervisors (Board) made up of landowners appointed by the Governor to
serve four-year terms.
For its 2020-2021 Fiscal Year (FY), the District reported outstanding long-term debt of $2,872,835. The
District’s budget for FY 2021-2022 was $1,602,325.05.
The bill reaffirms and continues the District’s authority to raise revenue and pay outstanding bonds and other
obligations without interruption. The bill codifies, reenacts, and amends the charter of the District and repeals
the special act that initially created it. The bill also makes the following revisions to the existing charter:
Removes the definition of “county commissioners;”
Removes the separate positions of Board secretary and Board treasurer and creates a new position of
Board secretary-treasurer;
Removes the requirement that warrants or checks be signed by the chair and treasurer, and now only
requires that two Board members sign;
Removes authorization to provide fire services;
Removes authorization to provide garbage collection services;
Removes oversight authorization of discharge into waters in and outside of the District;
Limits service extensions outside the District boundaries to properties currently receiving services; and
Updates the threshold requirements triggering the need to advertise for bids.
The bill further provides that the District is not dissolved as of June 1, 2023.
The bill does not appear to create any additional fiscal impact on the District.
According to House Rule 5.5(b), a local bill providing an exemption from general law may not be placed
on the Special Order Calendar for expedited consideration. The provisions of House Rule 5.5(b) may
apply to this bill.
STORAGE NAME: h0013B.SAC PAGE: 2
DATE: 2/6/2023
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Present Situation
Special Districts
A “special district” is a unit of local government created for a particular purpose, with jurisdiction to
operate within a limited geographic boundary.
1
Special districts are created by general law, special act,
local ordinance, or rule of the Governor and Cabinet.
2
A special district has only those powers
expressly provided by, or reasonably implied from, the authority provided in the district’s charter.
Special districts provide specific municipal services in addition to, or in place of, those provided by a
municipality or county.
3
A “dependent special district” is a special district meeting at least one of the following criteria:
The membership of the district’s governing body is identical to the governing body of a single
county or municipality;
All members of the district’s governing body are appointed by the governing body of a single
county or municipality;
Members of the district’s governing body are removable at will by the governing body of a single
county or municipality; or
The district’s budget is subject to approval of governing body of a single county or municipality.
4
An “independent special district” is any district that is not a dependent special district or one that
includes more than one county unless the district lies wholly within a single municipality.
5
According to the Department of Economic Opportunity’s (DEO) Special District Accountability Program
Official List of Special Districts (Official List of Districts), there are 1,918 special districts, including
1,303 independent special districts and 615 dependent districts.
6
Special districts do not possess “home rule” powers and may impose only those taxes, assessments, or
fees authorized by special or general law. The special act creating an independent special district may
provide for funding from a variety of sources while prohibiting others. For example, ad valorem tax
authority is not mandatory for a special district.
7
Generally, the maximum millage rate for an independent special district is the millage rate authorized
by law and approved by the electors of the district in a referendum.
8
The 1968 Florida Constitution,
however, provides that independent special districts with ad valorem tax authority established by law
before its effective date may continue to exercise that authority, but that the authority may be restricted
or withdrawn by law unless such power is necessary to pay outstanding debts.
9
1
See Halifax Hospital Medical Center v. State of Fla., et al., 278 So. 3d 545, 547 (Fla. 2019).
2
See ss. 189.02(1), 189.031(3), and. 190.005(1), F.S. See generally s. 189.012(6), F.S.
3
Local Administration, Federal Affairs & Special Districts Subcommittee, The Local Government Formation Manual, 58, at
https://myfloridahouse.gov/Sections/Documents/loaddoc.aspx?PublicationType=Committees&CommitteeId=3227&Session=2023&Doc
umentType=General+Publications&FileName=2022+Local+Government+Formation+Manual.pdf (last visited Jan. 27, 2023).
4
S. 189.012(2), F.S.
5
S. 189.012(3), F.S. Independent special districts are created by the Legislature, unless another mechanism is authorized by general
law. See, e.g., s. 190.005, F.S. (community development districts may be created by a county, municipality, or the Florida Land and
Water Adjudicatory Commission, depending on the size and location of the district).
6
Dept. of Economic Opportunity, Special Dist. Accountability Program, “Official List of Special Districts,” at
http://specialdistrictreports.floridajobs.org/webreports/criteria.aspx (last visited Feb. 1, 2023).
7
See art. VII, s. 9(a), Fla. Const.
8
See art. VII, s. 9, Fla. Const.
9
Art. XII, ss. 2, 15, Fla. Const. See also art. IX, s. 2, Fla. Const. (1885), amended by SJR 69 (1939) (approved by the voters Nov. 5,
1940) (prohibition on state levy of ad valorem taxes for state purposes). See Bailey v. Ponce de Leon Port Authority, 398 So. 2d 812
(Fla. 1981); see also Hillsborough County v. Tampa Port Authority, 563 So. 2d 1108 (Fla. 2d DCA 1990). STORAGE NAME: h0013B.SAC PAGE: 3
DATE: 2/6/2023
Formation and Charter of an Independent Special District
With the exception of community development districts,
10
the charter for an independent special district
must include the minimum elements required by ch. 189, F.S.
11
Charters of independent special
districts must address and include a list of required provisions, including the purpose of the district, its
geographical boundaries, taxing authority, bond authority, and selection procedures for the members of
its governing body.
12
Independent Special District Dissolution
Generally, an independent special district may be dissolved in one of the four following ways:
Voluntary dissolution by a majority vote plus one of the district’s board;
13
For districts created by special act, the passage of a special act dissolving the district, subject to
approval by a majority vote of the residents or landowners of the district;
14
For districts created by a local government, voter approval of a referendum dissolving the
district or by the procedure used to create the district;
15
or
For districts that have been declared inactive by DEO, by special act or ordinance without a
referendum.
16
Additionally, s. 189.0311(2), F.S., provides for the dissolution of all independent special districts created
by special act prior to the ratification of the Florida Constitution on November 5, 1968, if those districts
are not reestablished, re-ratified, or otherwise reconstituted by a special act or general law after that
date.
17
Such districts dissolve on June 1, 2023, unless re-established pursuant to the requirements and
limitations of ch. 189, F.S., on or after that date. According to the Official List of Districts, 132 active
independent special districts were created by special act before November 5, 1968,
18
and of those
districts, six do not operate under a charter that was reestablished, re-ratified, or otherwise
reconstituted by a special act or general law after November 5, 1968.
19
Unless otherwise provided by law or ordinance, all assets and liabilities of a dissolved independent
special district are transferred to the local general-purpose government having jurisdiction over the
territory of the district.
20
Eastpoint Water and Sewer District
The Eastpoint Water and Sewer District (District) is an independent special district created by special
act in 1967.
21
The District’s purpose is to acquire, operate, and maintain water and sewer systems
serving the unincorporated areas of Franklin County and other customers, as the District may
determine.
22
The District is governed by a five-member board of supervisors (Board) made up of
landowners appointed by the Governor to serve four-year terms.
23
The Board is authorized to set,
10
S. 189.0311, F.S.; see s. 190.004, F.S. (providing that ch. 190, F.S., governs the functions and powers of independent community
development districts).
11
Ss. 189.031(1) and (3), F.S., sets forth the minimum charter requirements for an independent special district.
12
S. 189.031(3), F.S. (setting forth the minimum charter requirements).
13
S. 189.072(1), F.S. If the district was created by special act, dissolution also requires a special act of the Legislature to take effect.
14
S. 189.072(2)(a), F.S.
15
S. 189.072(2)(b), F.S. If the district has the power to levy ad valorem taxes, a referendum is required for dissolution. See Art. VII, s.
9(b), Fla. Const.
16
S. 189.072(3), F.S.
17
Created by ch. 2022-266, Laws of Fla.
18
Dept. of Economic Opportunity, Special Dist. Accountability Program, “Official List of Special Districts,” at
http://specialdistrictreports.floridajobs.org/webreports/criteria.aspx (last visited Feb. 1, 2023).
19
Bradford County Development Authority, Bradford County; Eastpoint Water and Sewer District, Franklin County; Hamilton County
Development Authority, Hamilton County; Marion County Law Library, Marion County; Reedy Creek Improvement District, Orange and
Osceola Counties; and Sunshine Water Control District, Broward County will dissolve on June 1, 2023, unless re-established pursuant
to the requirements and limitations of ch. 189, F.S., on or after that date. Of those scheduled to sunset, Eastpoint Water and Sewer
District, Reedy Creek Improvement District, and Sunshine Water Control District have debt obligations.
20
Ss. 189.072(4) and 189.076(2), F.S.
21
Ch. 67-1399, Laws of Fla.
22
Ch. 67-1399, s. 4, Laws of Fla.
23
Ch. 67-1399, s. 5, Laws of Fla. STORAGE NAME: h0013B.SAC PAGE: 4
DATE: 2/6/2023
revise, and collect rates and charges for water furnished, sewer systems, and garbage collection.
24
The
rates and charges must:
Pay the cost of operating and maintaining waterworks, sewage, and trash facilities of the
District;
Pay debt on outstanding bonds; and
Provide for reserve funds.
25
Additionally, the Board is authorized to levy an ad valorem tax of up to five mills.
26
For Fiscal Year
2021-2022, the total final budget of the District was $1,602,326.05.
27
For that same fiscal year the
District levied an ad valorem tax of 3.25 mills, an increase from the 3 mills levied the previous year.
28
Those receiving services outside of the district boundaries are charged an additional 40 percent
surcharge on rates and fees.
29
In its most recent financial statement to the Department of Financial
Services, the District reported $2,872,835 in total long-term debt as of September 30, 2021.
30
The District may expend its funds only to provide the services and exercise the powers authorized in
the charter.
31
The District currently serves approximately 1,100 residential, commercial, and industrial
customers.
32
Effect of Proposed Changes
The bill ratifies and confirms the continued existence of the District and provides legislative intent to
preserve the District’s necessary authority to generate revenue and pay outstanding indebtedness as
provided in its original charter as such authority was preserved by Art. XII, ss. 2 and 15 of the Florida
Constitution.
Additionally, the bill makes the following revisions to the existing charter:
Removes the definition of “county commissioners;”
Removes the separate positions of Board secretary and Board treasurer and creates a new
position of Board secretary-treasurer;
Removes the requirement that warrants or checks be signed by the chair and treasurer, and
now only requires that two Board members sign;
Removes authorization to provide fire services;
Removes authorization to provide garbage collection services;
Removes oversight authorization of discharge into waters in and outside of the District;
Limits service extensions outside of the District boundaries to properties currently receiving
services; and
Updates the threshold requirements triggering the need to advertise for bids.
The bill reaffirms and continues the District’s authority to raise revenue and pay outstanding bonds and
other obligations without interruption.
The bill provides that, notwithstanding s. 189.0311(2), F.S., the district is not dissolved as of June 1,
2023, but continues in full force and effect.
The bill does not appear to create any additional fiscal impact on the District.
24
Ch. 67-1399, s. 10, Laws of Fla.
25
Id.
26
Ch. 67-1399, s. 8(15), Laws of Fla.
27
Eastpoint Water and Sewer District, EWSD Budget Information, “Final Budget 2021-2022,” at https://ewsdfl.com/budgets (last visited
Jan. 27, 2023).
28
Id.
29
See Eastpoint Water and Sewer District Water/Sewer User Agreement, at https://img1.wsimg.com/blobby/go/3204d8b4-6a1d-4b6c-
9794-c464556ca29c/downloads/User%20Agreement%202022 -2023.pdf?ver=1667398719337 (last visited Jan. 27, 2023).
30
See Dept. of Financial Services, 2021 Local Government General Ad Hoc Report for Eastpoint Water and Sewer District, at
https://apps.fldfs.com/LocalGov/Reports/AdHoc.aspx (last visited Jan. 30, 2023).
31
Halifax Hospital Medical Center, supra at 547.
32
See Eastpoint Water and Sewer District, at https://ewsdfl.com/ (last visited Jan. 30, 2023). STORAGE NAME: h0013B.SAC PAGE: 5
DATE: 2/6/2023
B. SECTION DIRECTORY:
Section 1: Reenacts, amends, and repeals the special act relating to the Eastpoint Water and
Sewer District and provides legislative intent.
Section 2: Provides the charter for the district.
Section 3: Provides the term of each member currently serving, or subsequently appointed to serve
the remainder of a current term, on the Board of Commissioners of the district continue
without interruption or alteration until the end of such term.
Section 4: Provides for liberal construction of the act.
Section 5: Repeals Ch. 67-1399, Laws of Fla., relating to the district.
Section 6: Provides an exception to general law.
Section 7: Provides an effective date of upon becoming a law.
II. NOTICE/REFERENDUM AND OTHER REQUIREMENTS
A. NOTICE PUBLISHED? Yes [X] No []
IF YES, WHEN? December 22, 2022
WHERE? The Times, a weekly newspaper published at Apalachicola, Franklin County, FL.
B. REFERENDUM(S) REQUIRED? Yes [] No [X]
IF YES, WHEN?
C. LOCAL BILL CERTIFICATION FILED? Yes [] No [X]
D. ECONOMIC IMPACT STATEMENT FILED? Yes [] No [X]
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
None.
B. RULE-MAKING AUTHORITY:
The bill neither provides authority for nor requires rulemaking by executive branch agencies.
C. DRAFTING ISSUES OR OTHER COMMENTS:
According to House Rule 5.5(b), a local bill providing an exemption from general law may not be placed
on the Special Order Calendar for expedited consideration. The provisions of House Rule 5.5(b) may
apply to this bill.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
Not applicable.