Section 373.0831, Florida Statutes, contains legislative findings and intentions that are relevant to the financial component of the SWUCA Recovery Strategy.
(1) The Legislature finds that:
(a) The proper role of the water management districts in water supply is primarily planning and water resource development, but this does not preclude them from providing assistance with water supply development.
(b) The proper role of local government, regional water supply authorities, and government- owned and privately owned water utilities in water supply is primarily water supply
development, but this does not preclude them from providing assistance with water resource development.
(c) Water resource development and water supply development must receive priority attention, where needed, to increase the availability of sufficient water for all existing and future reasonable-beneficial uses and natural systems.
(2) It is the intent of the Legislature that:
(a) Sufficient water be available for all existing and future reasonable-beneficial uses and the natural systems, and that the adverse effects of competition for water supplies be avoided. (b) Water management districts take the lead in identifying and implementing water resource development projects, and be responsible for securing necessary funding for regionally significant water resource development projects.
(c) Local governments, regional water supply authorities, and government-owned and privately owned water utilities take the lead in securing funds for and implementing water supply development projects. Generally, direct beneficiaries of water supply development projects should pay the costs of the projects from which they benefit, and water supply development projects should continue to be paid for through local funding sources.
(d) Water supply development be conducted in coordination with water management district regional water supply planning and water resource development.
(3) The water management districts shall fund and implement water resource development as defined in s. 373.019. The water management districts are encouraged to implement water resource development as expeditiously as possible in areas subject to regional water supply plans. Each governing board shall include in its annual budget the amount needed for the fiscal year to implement water resource development projects, as prioritized in its regional water supply plans.
(4)(a) Water supply development projects which are consistent with the relevant regional water supply plans and which meet one or more of the following criteria shall receive priority consideration for state or water management district funding assistance:
1. The project supports establishment of a dependable, sustainable supply of water which is not otherwise financially feasible;
2. The project provides substantial environmental benefits by preventing or limiting adverse water resource impacts, but requires funding assistance to be economically competitive with other options; or
3. The project significantly implements reuse, storage, recharge, or conservation of water in a manner that contributes to the sustainability of regional water sources.
(b) Water supply development projects which meet the criteria in paragraph (a) and also bring about replacement of existing sources in order to help implement a minimum flow or level shall be given first consideration for state or water management district funding assistance.
Definitions of Water Resource Development and Water Supply Development are as follows:
Water resource development means the formulation and implementation of regional water resource management strategies, including the collection and evaluation of surface water and groundwater data; structural and nonstructural programs to protect and manage water resources; the development of regional water resource implementation programs; the construction, operation, and maintenance of major public works facilities to provide for flood control, surface and underground water storage, and groundwater recharge augmentation; and related technical assistance to local governments and to government-owned and privately owned water utilities.
Water supply development means the planning, design, construction, operation, and maintenance of public or private facilities for water collection, production, treatment, transmission, or distribution for sale, resale, or end use.
As provided by the above legislation, the District has prioritized projects and programs that provide regional water resource benefits. This prioritization is taken into account when considering whether or not any District funds are available and the level of any matching funds.
Potential Funding Sources
The following funding sources are potentially available to assist in funding development of alternative supplies, implementation of water resource development projects and demand management initiatives needed to fully implement the SWUCA Recovery Strategy. The funding sources include only those that could potentially be generated from fiscal year 2007 through fiscal year 2020. This allows the funding to be in place five years before water supply demand to provide sufficient time to construct the necessary infrastructure.
New Water Sources Initiative (NWSI)
In 1994, the Governing Board initiated a financial incentive program known as the New Water Sources Initiative (NWSI). This program was created to assist in a “pay as you go,” leveraged cooperative program in the development of sustainable, nontraditional alternatives
to groundwater use. Since its inception, the Governing Board has budgeted $10 million annually, an amount matched by the affected Basin Boards, for specific projects for a total of approximately $20 million per year. A local cooperator then matches the total District
contribution. NWSI funding is fully committed to projects through 2007. If the Governing Board and the four SWUCA Basin Boards (90 percent of Alafia River, 6 percent of
Hillsborough River and 100 percent of the Manasota and Peace River Basins’ budgets are allocated to the SWUCA for planning purposes) elect to maintain their annual funding commitment of $20 million per year through 2020, it is estimated that $8.8 million per year (44 percent) of the total NWSI funds could be allocated to the SWUCA from 2008 through 2020. At this rate of funding, $122.2 million could be available from 2007 through 2020 for NWSI projects in the SWUCA.
Historically, both the NWSI and Basin Board Cooperative Funding programs have required a cost share on an equal basis (50/50 cost share for eligible costs) with cooperators.
However, many of the future projects may require a higher percentage of District funding. For example, certain components of the upper Peace River recovery projects may not have local cooperators and may be funded entirely by the District. In recognition of this potential, this analysis has assumed that 50 percent of the future NWSI budgets would be set aside for projects to be funded completely by the District. The remaining 50 percent would be matched on an equal cost basis, which would yield an additional $61.1 million through 2020.
Water Supply and Resource Development (WSRD) Program
The District established a Water Supply and Resource Development (WSRD) Program in FY2000 to provide funding for projects of a regional significance on a matching, flexible basis to complement the District’s NWSI and Cooperative Funding programs. It is
anticipated that the Governing Board and eight Basin Boards will collectively contribute at least $15 million annually to this fund (Governing Board $7.5 million and Basin Boards $7.5 million). If the Governing Board and the four Basin Boards that encompass the SWUCA maintain a minimum funding commitment of $15 million per year through 2020, it is estimated, for planning purposes, that $6.6 million dollars per year (44 percent) could be allocated for the SWUCA from FY2013 through 2020. For the years 2007 through 2012, the amount potentially available for the SWUCA is based on existing Governing Board and Basin Board project commitments totaling $40 million, existing Governing Board and Basin Board WSRD reserves of $18.8 million, and an additional $20 million in Governing Board reserves with matching Basin Board funding of $20 million. The allocation of additional Governing Board reserves is based on original financial plans to equalize water supply and resource development funding for the SWUCA based on Governing Board taxing effort. At this rate of funding, $151.6 million could be available through 2020. As with the District's NWSI and Cooperative Funding programs, if local cooperators match half of these funds, an additional $75.8 million can be leveraged.
Cooperative Funding Program
The four Basin Boards that encompass the SWUCA provide significant financial assistance for conservation and alternative source programs through the NWSI, WSRD and
Cooperative Funding programs, primarily to governmental entities. However, the Governing Board and Basin Boards have also partnered with private entities. Under current policy, cooperative projects funded by the Basin Boards usually require a 50/50 cost share by a local cooperator. In FY2004, the Basin Boards began to consider reduced funding matches for rural communities pursuant to the state's Rural Economic Development Initiative (REDI).
• Whether and in what percentage a local government or local government utility is
transferring water supply system revenues to the local government general fund in excess of reimbursements for services received from the general fund, including direct and indirect costs and legitimate payments in lieu of taxes.
After one or more meetings to solicit public input on eligible projects, the Governing Boards shall select projects based upon the criteria set forth above.
The state funds will be applied toward the maximum 20 percent of the eligible projects’ construction costs. In addition, the Legislature has established a goal for each water
management district to annually contribute funding equal to 100 percent of the State funding for alternative water supply development assistance. The State's Water Protection and Sustainability Program, if continued by the Legislature, will serve as a significant source of matching funds to assist in the development of alternative water supplies by 2025.
State of Florida, Florida Forever Program
The Florida Forever Act (FFA), passed in 1999, is a $10 billion, 10-year, statewide program that will provide the District approximately $26.25 million per year for land acquisition, environmental restoration and water resource development. At least 50 percent of these funds must be spent on land acquisition over the life of the program. Of the Florida
Forever funds currently allocated to water resource development ($130 million), the District has expended or committed $57.8 million ($44.8 million for land acquisition and $13 million for water body restoration.) The District intends to spend the remaining $72.2 million on land acquisition in support of water resource development. A “water resource development project” is defined as a project eligible for funding pursuant to Section 259.105 (Florida Forever) that increases the amount of water available to meet the needs of natural systems and the citizens of the state by enhancing or restoring aquifer recharge, facilitating the capture and storage of excess flows in surface waters, or promoting reuse. Implementation of eligible projects under Florida Forever includes land acquisition, land and water body restoration, ASR facilities, surface water reservoirs and other capital improvements. An example of how the funds were used for water resource development was the purchase of lands around Lake Hancock within the Peace River watershed in support of the Lake Hancock Lake Level Modification and Ecosystem Restoration Project.
Federal Revenues
In 1994, the District began an initiative to seek federal matching funds for water projects. Since that time, the Office of the Governor, the Department of Environmental Protection, other water management districts and local government and regional water supply authority sponsors have joined with the District. Through a cooperative effort with members of Florida’s Congressional Delegation, the Federal Initiative has grown substantially. In 1999, the effort was expanded to seek funding for the development of alternative source projects and in 2001, the state of Florida and the water management districts expanded a list of projects in order to seek all available resources to develop a water supply strategy that would meet the demands of growth throughout the state while being environmentally sustainable. The projects include the use of alternative water supply technologies, as well as stormwater retention and filtering and wastewater treatment. Each district certifies that the projects submitted for funding are regional in scope and that matching funds are available either from the District budget or from a local government sponsor.
To date, a total of $95 million has been received by local cooperators. Federal matching funds for the construction of the Bill Young Regional Reservoir were obtained through this initiative that also includes funding for the Tampa Bay Regional Reclaimed and Downstream Augmentation Project and the Peace River and Myakka River Watersheds Restoration Initiative.
District staff considers funding for water supply projects to be a top priority and continues to work with the Office of the Governor, the FDEP and the members of the Florida Congressional Delegation to secure federal funding.
Local Government, Regional Authorities and Water Utilities Funding
Local governments, regional water supply authorities, and government-owned and privately owned water utilities take the lead in securing funds for and implementing water supply development projects. Generally, direct beneficiaries of water supply development projects should pay the costs of the projects from which they benefit, and water supply development projects should continue to be paid for through local funding sources. Projecting these local funding sources into the future has not been done because of the unknowns associated with projects where the District is not a partner. However, District funds are assumed to be used on a matching basis where the District becomes a partner through the NWSI, WSRD or Cooperative Funding programs. As provided for by the water resource development legislation, the District has prioritized projects and programs that provide regional water resource benefits. This prioritization is taken into account when considering whether or not any District funds are available and determining the level of any matching funds.
Summary of the SWUCA Financial Engine
Table 9-1 shows the various potential funding sources to address project needs in the SWUCA. As illustrated in this table, the potential funding sources could provide $559 million through 2020. It is important to note that the planned funding identifies only known sources of funding and does not include anticipated federal funds. Further, the Basin Board Cooperative Funding Program projection is based on current funding allocations made by the four SWUCA basins to water supply and resource development and conservation projects.
For REDI-eligible projects, the Basin Boards have generally funded 75 percent of project cost, with the local governments funding the remaining 25 percent. The Basin Boards have an additional funding mechanism known as a Basin Initiative that allows the Boards to increase their percentage match or in some cases provide total funding for the project. If the four SWUCA Basin Boards elect to maintain their current levels of funding for water supply and resource development projects under the Cooperative Funding Program from 2007 through 2020, this could yield $46.6 million. If cooperators match half of these funds, an additional $23.3 million can be leveraged.
State Revenues
State revenues have the potential to play a significant role in funding water resource
development projects in the SWUCA. During the 2002 legislative session, the District began pursuing state funds for the FARMS Program. This effort resulted in the District receiving $1.5 million dollars in FY2003 to address the resource goals associated with the Upper Myakka watershed and Shell Creek initiatives. The District has since received additional state appropriations of $1 million in FY2005 and $1 million in FY2006 to assist with expansion of the FARMS program throughout the SWUCA. In addition, the Florida Department of Agriculture and Consumer Services (FDACS) has provided funding of $273,621 in FY2003, $500,000 in FY2004, and $50,380 in FY2005 for the FARMS program. In FY2003 the District executed the FARMS Operating Agreement with the FDACS. Under this Operating Agreement the District and FDACS have agreed to seek funding annually for a minimum of 10 years. The District will continue to seek funding for the program. This approach, coupled with the District’s efforts to maintain other existing sources of state revenues, could add to the funds available for projects in the SWUCA.
The District has also been allocated a total of $1.7 million from state appropriations through 2006 for restoration activities in the upper Peace River, including important funding for the Lake Hancock Lake Level Modification and Ecosystem Restoration project.
Water Protection and Sustainability Program
The new State of Florida Water Protection and Sustainability Program was created in the 2005 legislative session through passage of Senate Bill 444. The program provides matching funds for the District Governing and Basin Boards’ NWSI, WRSD and Cooperative
Funding programs for alternative water supply development assistance. For 2006, the first year of funding, the Legislature allocated $100 million for alternative water supply
development assistance, with $25 million allocated for this District. It is anticipated that the District may receive future annual allocations of $15 million for the program, subject to annual appropriation by the Legislature. Although the new state program has been referenced as a 10-year program, the legislation does not stipulate the program term. For planning purposes, it is estimated that the District will be allocated $15 million in 2007. Of this amount, $6.6 million per year (44 percent) could be allocated for the SWUCA. If annual funding for the Water Protection and Sustainability Program continues through 2015, it is possible that an additional $52.8 million could be generated for alternative water supply development in the SWUCA.
Program guidelines are incorporated into Chapter 373, Florida Statutes, and include conditions on match requirements, project selection, project benefits and project implementation. The following is a summary of some of the more pertinent criteria:
Alternative water supplies projects eligible for funding are defined as projects that utilize salt water; brackish surface water and ground water; surface water captured predominately during wet-weather flows; sources made available through the addition of new storage capacity for surface or groundwater; water that has been reclaimed after one or more public supply, municipal, industrial, commercial, or agricultural uses; the downstream augmentation of water bodies with reclaimed water; stormwater; and any other water supply source that is designated as nontraditional for a water supply planning region in the applicable regional water supply plan.
Funding from the program can only be used for the construction element of an eligible project.
Funding Match
Applicants for projects that may receive funding assistance pursuant to the program shall, at a minimum, be required to pay 60 percent of the project's construction costs. The state will provide up to 20 percent of construction costs with the water management districts to provide an equal match. Water management districts and Basin Boards may, at their discretion, use ad valorem or federal revenues to assist a project applicant in meeting the statutory funding match requirements.
Governing Boards shall determine those projects that will be selected for financial assistance. The Governing Board may establish factors to determine project funding; however,
significant weight will be given to the following factors:
• Provides environmental benefits by preventing or limiting water resource impacts.
• Reduces competition for water supplies.
• Replaces traditional sources in order to help implement a MFL or reservation.
• Implemented by a permittee that has achieved targets contained in a goal-based water
conservation program.
• Quantity of water supplied as compared to its cost.
• Construction and delivery of reuse water is a major component. • Implemented by a multi-jurisdictional water supply entity.