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Frank Palen “Growth” requires public facilities and services, but in Florida “Growth Should Pay for Itself”! Counties and cities resist using taxes to provide for new residents, shifting the burden to more than 1600 “special districts”. Districts build facilities using borrowed money, repaying debt from annual “assessments” only upon the “benefited” property owners within their boundaries. Until recently, the spigots of exuberant capitalism gushed freely, but the fiscal world has changed. Florida will continue to grow -- but what are the “New Rules” for America’s post-“Meltdown” financial system? Will special districts find the resources to address the needs of Future Florida?
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SPECIAL DISTRICTS AND FINANCING GROWTH IN FLORIDA:
THE BUBBLE’S BURST…NOW WHAT?
A Presentation to the
American Planning Association, Florida Chapter2011 Conference
The Breakers, Palm BeachThursday, September 8, 2011
Frank S. Palen, Esq., AICPCaldwell Pacetti Edwards Schoech & Viator LLP, Attorneys at Law
One Clearlake Centre, Suite 600250 South Australian Avenue
West Palm Beach, Florida 33401Phone: 561-655-0620 Facsimile: 561-655-3775
www.caldwellpacetti.com
©MMXI CPESV LLC. All Rights Reserved
04/10/23
Goals for today BRIEF & BROAD DESCRIPTION OF SPECIAL
DISTRICTS IN FLORIDA OVERVIEW OF THE PROCESS OF FINANCING
PUBLIC SERVICES & FACILITIES USING SPECIAL DISTRICTS & THE PRINCIPLES UNDER WHICH THEY OPERATE
IDENTIFY THE KEY “PLAYERS” IN THE FINANCING SYSTEM & THEIR ROLES
CONSIDER THE IMPACT OF OUR NATIONAL ECONOMIC “ADJUSTMENT” ON THE FUTURE OF SPECIAL DISTRICT FINANCING –ARE THERE “NEW RULES”?
SPECULATE ON WHAT IMPACT THOSE RULES MAY HAVE ON BUILDING FLORIDA IN THE FUTURE
04/10/23
Special district financing: The team of professionals
Clark Bennett
Todd Wodraska
Bill Capko
Frank Palen
Kevin Mulshine
04/10/23 Caldwell Pacetti Edwards Schoech & Viator LLP, Attorneys at Law
4
What is a “special district”?
“…a local unit of SPECIAL PURPOSE, as opposed to general-purpose, GOVERNMENT within a LIMITED BOUNDARY, created by general law, special act, local ordinance, or by rule of the Governor and Cabinet. The special purpose or purposes of special districts are implemented by SPECIALIZED FUNCTIONS and related PRESCRIBED POWERS. …” (s. 189.403, F.S.)
(See also Fla Const., Title 1, ch. 1, s. 1.01(8) & s.191.003(5), F.S.)
04/10/23 Caldwell Pacetti Edwards Schoech & Viator LLP, Attorneys at Law
5
Special district powers, in general
NO “HOME RULE” LIMITED “POLICE POWER” TAX POWER
Non-ad valorem special assessments No referenda required
Ad valorem in certain cases (CDDs) CONTRACT DEBT & PLEDGE CREDIT
Not subject to debt millage limits (not based on value)
SOVEREIGN IMMUNITY
04/10/23 Caldwell Pacetti Edwards Schoech & Viator LLP, Attorneys at Law
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Special districts and American local government, trends – 1952-2007
Source: U.S Census Bureau & FLCIR (2009)
04/10/23 Caldwell Pacetti Edwards Schoech & Viator LLP, Attorneys at Law
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Government in Florida
04/10/23 Caldwell Pacetti Edwards Schoech & Viator LLP, Attorneys at Law
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Special districts–counties with the most
County 10/08 11/09 07/11 Hillsborough 136 138 139 Miami-Dade 101 103 105 Lee 98 98 96 Palm Beach 93 93 94 Broward 91 92 98 Manatee 75 74 73
04/10/23 Caldwell Pacetti Edwards Schoech & Viator LLP, Attorneys at Law
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What do special districts do?THE “TOP 10” FUNCTIONS OF SPECIAL DISTRICTS IN FLORIDA
Community development (CDDs) – 579 Community redevelopment (CRAs) – 201 Drainage & water control (“298s”) – 94 Housing authorities – 93 Fire control & rescue (Ch. 191, F.S.) – 67 Soil & water conservation – 63 Subdivision maintenance – 54 Neighborhood improvement -- 33 Libraries – 32 Health facilities – 31
04/10/23
Special district development financing - “units of development” in a “298” improvement district
04/10/23
Development financing: No special district bond funds
04/10/23
Development financing:Special district bond funds
04/10/23
Development financing: The team of professionals
Clark Bennett
Todd Wodraska
Bill Capko
Frank Palen
Kevin Mulshine
