Special District Review

Transcription

1 Special District Review 2012 Summary Brief Special District(s): Mosquito Control Districts Prepared by: Executive Office of the Governor: Office of Policy and Budget; Policy Office. This report was produced pursuant to Executive Order Number EXECUTIVE SUMMARY There are 15 independent mosquito control special districts and 3 dependent mosquito control special districts in Florida. In the FY , mosquito control special districts (MCDs) levied $58,031,438 in ad valorem taxes. All MCDs were either created by a special act of the Legislature or by ordinance of a county pursuant to ch. 388, F.S. Mosquito Control is regulated pursuant to ch. 388, F.S., and overseen by the Department of Agriculture and Consumer Services (DACS). Special District MCDs account for approximately 73 percent of the total amount spent on mosquito control, and offer service to approximately 19 percent of the state population. Independent MCDs are governed by an elected district board of three to seven commissioners, who serve four year terms. The three dependent MCDs are each governed by the local board of county commissioners. Commissioner compensation is set at $4,800 per year, or below, unless a higher amount has been authorized by special act or general act of local application. The Florida Keys MCD commissioners are the only exception at $22,038 to $21,438 per year. Several districts also provide district paid health insurance benefits to commissioners and commissioner dependents. MCDs provide health and other benefits similar to state and local governments. All eligible MCD employees are enrolled in the Florida Retirement System. Some MCDs pay for health benefits for retired employees. All MCD revenue is raised from ad valorem taxes, with the exception of Moore Haven MCD, which charges a monthly non-ad valorem assessment to district residents. MCD revenue has decreased since 2006 as a result of MCD commissioner action, changes in law and caps on property taxes, and declining property values. Only one MCD adopted a millage rate for FY above the rolled-back rate. All MCDs are current with the state required financial and audit reports. 1

2 FLORIDA MOSQUITO CONTROL SPECIAL DISTRICTS I. SPECIAL DISTRICTS Background A special district is a local unit of special purpose government with a limited boundary, created by general law, special act, local ordinance, or by rule of the Governor and Cabinet. 1 There are two different classifications of special districts; dependent or independent. A dependent special district is a special district that meets at least one of the following criteria: The membership of the governing body is identical to that of the governing body of a single county or a single municipality; 2 All members of the governing body are appointed by the governing body of a single county or single municipality; 3 During the board members unexpired terms, members of the special district governing body are subject to removal at will by the governing body of a single county or a single municipality; 4 or The district has a budget that requires approval through an affirmative vote or can be vetoed by the governing body of a single county or a single municipality. 5 An independent special district is a special district that does not meet any of the above criteria. 6 A district that includes more than one county is an independent special district unless the district lies wholly within the boundaries of a single municipality. 7 There are 1,643 special districts in the state of Florida with 1,005 independent and 638 dependent districts. 8 Special Districts generate revenue in multiple different methods including levying fees, service charges, tolls, and ad valorem taxes. In the fiscal year (FY) (October 1 through September 30), 9 Florida s special districts reported combined revenue of over $15 billion. In the FY , independent special districts levied $1,834,548,520 in ad valorem taxes. 10 Executive Order On January 11, 2012, Governor Scott issued Executive Order (EO) 12-10, calling for review of all of Florida s special districts by the Governor s Office of Policy and Budget. 11 The executive order provides that the review is to determine whether special districts are: 1 Section (1), F.S. 2 Section (2)(a), F.S. 3 Section (2)(b), F.S. 4 Section (2)(c), F.S. 5 Section (2)(d), F.S. 6 Section (3), F.S. 7 Id. 8 Number provided by Department of Economic Opportunity (DEO). See (last visited 8/9/12). 9 The vast majority of local governments and special districts follow a fiscal year that begins October 1 and ends September 30. For purposes of this report, fiscal year refers to October 1 through September 30 unless provided otherwise. 10 Taxes levied provided by the Department of Revenue (DOR). See (last visited 8/9/12). 11 For a copy of Executive Order see (last visited 8/8/12). 2

3 Serving a legitimate public purpose; Governed efficiently; Levying taxes, fees, and assessments appropriately; Being held accountable to the taxpayers whose lives they directly impact; Operating in a transparent manner; and Prudently spending taxpayer dollars. The Office of Policy and Budget is directed to examine: The method of creation and legislative intent behind the creation of each district; including an evaluation of whether the special district continues to function for the purpose for which it was created; The governance structure of each special district, including the method of appointment and tenure of the governing members; The functions and activities of each special district to determine if a special district is the most efficient and appropriate method of governance; The annual budgets of each district in order to determine the appropriateness of the budgeted expenditures; The special districts levy of ad valorem and non-ad valorem taxes, fees, and assessments to determine if they are at an appropriate level; The special districts policies regarding organizational structure, personnel, salaries and benefits, operating capital outlay, and related expenses in order to recommend more efficient and uniform policies among all districts; The required disclosures for properties within the jurisdiction of a special district to taxpayers who purchase property within such special district; The level of oversight of special districts, including whether special districts are complying with their reporting requirements, and whether the present level of oversight is sufficient. Methodology For the review of Florida s mosquito control special districts, the Office of Policy and Budget reviewed: Relevant financial disclosures and data submitted to the Department of Agriculture and Consumer Affairs, the Auditor General, the Department of Financial Services, the Department of Economic Opportunity, the Department of Management Services, and the Department of Revenue; Information provided by county mosquito control programs in response to various public records requests from the Office of Policy and Budget staff; Information requested from the districts including, but not limited to, millage rates, salaries and benefits, maps, operations, and assets; and Relevant statutes, rules, legislation, state archive information and legal history. Office of Policy and Budget (OPB) staff also conducted phone interviews with all directors of the 18 special district mosquito control districts, with the exception of Buckhead Ridge Mosquito Control District (OPB staff was unable to contact the director or district staff). Additionally, OPB staff interviewed representatives from the Florida Mosquito Control Association. 12 Office of Policy and Budget staff conducted site visits and in-person interviews with commissioners, directors and staff of: 12 For more information on the Florida Mosquito Control Association (FMCA) visit (last visited 8/8/12). 3

4 Pasco County Mosquito Control; Lee County Mosquito Control; Collier Mosquito Control; and Indian River Mosquito Control. II. MOSQUITO CONTROL SPECIAL DISTRICTS The Department of Economic Opportunity (DEO) maintains the Special District Information Program which organizes special districts according to the type of service provided. Mosquito control is a service provided via independent and dependent special districts. There are 15 independent mosquito control special districts and 3 dependent mosquito control special districts. In the FY , mosquito control special districts levied $58,031,438 in ad valorem taxes. 13 The first mosquito control special district was created by special act of the Florida Legislature in 1925 in Indian River County. Legislative and Legal History Legislation enabling the creation of mosquito control districts (MCDs) was first passed in 1925 and MCDs could be created in four different ways: 1. A county could become an anti-mosquito district (mosquito control district) 15 if a petition was signed by 10 percent of the resident freeholders in the county. 16 The county would then have a referendum to decide if the county would become an anti-mosquito district. 17 For counties with a population of less than 65,000 people, there was also a yes or no vote on the formation of a separate board of commissioners to operate the district. 18 For counties with a population of more than 65,000 people, the operation of the district was vested in the county commissioners Any city, town, or county or any portion or portions thereof could be formed into a mosquito control district 20 if 15 percent of the freeholders of the area in the potential district signed a petition to create the district. 21 The county commission would then hold a referendum that would determine if the district would be formed and also include the election of five commissioners to serve as the governing body of the district A special taxing district could be created as a mosquito control district from all or part of the territory of any county in the state 23 if 15 percent of the freeholders in the county signed a petition. 24 The county commission would then hold a referendum that would determine if the 13 Id. 14 Ch , L.O.F. (1925) allowed for the creation of mosquito control districts in Any city, town, or county, or any portion or portions thereof (codified as ch. 389, F.S.); Ch , L.O.F. (1925) allowed for the creation of special taxing district mosquito control districts (codified as ch. 390, F.S.); and Ch , L.O.F. (1929) allowed for any county to be created into an Anti-Mosquito District (codified as ch. 388, F.S.). Chapters , F.S., were later consolidated into Ch. 388, F.S., in 1959, see ch , L.O.F. 15 Section , F.S., (1957); repealed in 1959 by ch , L.O.F. 16 Section , F.S., (1957); repealed in 1959 by ch , L.O.F. 17 Id. 18 Section , F.S., (1957); repealed in 1959 by ch , L.O.F. 19 Section , F.S., (1957); repealed in 1959 by ch , L.O.F. 20 Section , F.S., (1957); repealed in 1959 by ch , L.O.F. 21 Section , F.S., (1957); repealed in 1959 by ch , L.O.F. 22 Section , F.S., (1957); repealed in 1959 by ch , L.O.F. 23 Section , F.S., (1957); repealed in 1959 by ch , L.O.F. 24 Section , F.S., (1957); repealed in 1959 by ch , L.O.F. 4

5 district would be formed. 25 If the district was approved by the electors, then a board of commissioners, consisting of three members, was elected for the district A special act of the Legislature could be passed that would create the framework for the MCD and call for a referendum in the affected area. Over 55 MCDs were created from special acts and local ordinances as a result of the original implementation legislation passed in 1925 and All MCD s created had the ability to levy ad valorem taxes on property within the district and, unless the district was created pursuant to ch. 388, F.S., 27 the district would have a board of commissioners consisting of three to five members. Commissioners elected pursuant to chs. 388 or 389, F.S., were not compensated for their service, 28 but those elected pursuant to ch. 390, F.S., were compensated $5 a day for each day s service. 29 In MCDs created by special act, the salary of the commissioners would be at the direction of the special act. Due to the various methods of creation, there are two types of MCDs in existence today: districts authorized by general law and created by the local population via a referendum and provided for by county ordinance; 30 and districts created by a special act. In 1959, the Legislature substantially amended chs. 388, 389, and 390, F.S., and consolidated the chapters into ch. 388, F.S. 31 The goal was to allow for one uniform method of creation and governance for MCDs regardless of the original creation method. 32 This allowed for the creation of MCDs only as special taxing districts as formally provided pursuant to ch. 390, F.S. In 1980, the Legislature amended s , F.S., to halt the creation of any more mosquito control districts pursuant to ch. 388, F.S. 33 The main purpose of the original MCD legislation was to enable the local creation of mosquito control districts since there was no state-wide mosquito control, and most counties and cities did not provide the service. By obtaining the legislation, health officers from the state and members of the Florida Anti- Mosquito Association were able to utilize a grass roots approach to create mosquito control at the local level. As the state has grown, many of the MCDs created since 1925 are no longer in existence and have since become part of the county they served Section , F.S., (1957); repealed in 1959 by ch , L.O.F. 26 Section , F.S., (1957); repealed in 1959 by ch , L.O.F. 27 If the county had a population of greater than 65,000 people then the county commission served as the board of the district. See s , F.S., (1957); repealed in 1959 by ch , L.O.F. 28 See s , F.S., (1957); repealed in 1959 by ch , L.O.F., and s , F.S., (1957); repealed in 1959 by ch , L.O.F. 29 See s , F.S., (1957); repealed in 1959 by ch , L.O.F. Based on inflation calculations, $5 per day in 1957 is the equivalent to $40.89 in See (last visited 8/6/12). 30 Examples include Amelia Island MCD, Beach MCD, Buckhead Ridge MCD, East Flagler MCD, Moore Haven MCD, and South Walton County MCD. 31 See ch , L.O.F. 32 See title of ch , L.O.F. The term districts was defined to include all mosquito control districts in this state, whether organized under general law or special law, and any political subdivision of the state authorized to perform mosquito control functions. 33 See ch , L.O.F. 34 Examples include: the Martin County Anti-Mosquito District (see ch , L.O.F. (1947)), Northeast Duval MCD and East Duval County MCD (consolidated into the city of Jacksonville in 1968), and Pinellas County MCD (see ch , L.O.F.). 5

6 Evolution of Mosquito Control Statutes 1929: County as a district. Ch. 388, F.S. 1925: Part of county as a district. Ch. 389, F.S. 1925: Special Taxing district. Ch. 390, F.S. 1925: Special District/Special Act. 1959: Consolidation into current ch. 388, F.S. MCDs only created as special taxing district 1959: MCDs created by special act subject to ch. 388, F.S. 1980: Creation of independent special district MCDs, via ch. 388, F.S., halted by state legislature Mosquito Control Special Districts- Overview Mosquito Control is regulated pursuant to ch. 388, F.S., and overseen by the Department of Agriculture and Consumer Services (DACS). 35 According to DACS, there are 61 units of government that provide mosquito control in the state of Florida. 36 This includes counties and special districts. Out of the 61 providers of mosquito control service there are currently 18 special district MCDs in Florida listed on the official special district list maintained by the Department of Economic Opportunity (DEO). 37 Fifteen are independent districts, and three are dependent districts. The districts have a cumulative budget, which includes reserves and self-insurance, of approximately $106 million 38 for the FY (October 1 to September 30). The mosquito control budget for county-run programs is approximately $40 million. 39 Special District MCDs account for approximately 73 percent of the total amount spent on mosquito control for approximately 19 percent of the state population. 35 The Office of Entomology Services was transferred from the Department of Health and Rehabilitative Services to the Department of Agriculture and Consumer Affairs in See ch , L.O.F. 36 Listed on the website of the Bureau of Entomology and Pest Control, Division of Agricultural Environmental Services, Department of Agriculture and Consumer Services. See (last visited 8/8/12). 37 See (last visited 7/6/12). Maintained pursuant to s , F.S. Bay County Mosquito Control District, East Volusia Mosquito Control District, North Walton Mosquito Control District, Jacksonville Mosquito Control, and Hendry County Mosquito Control were determined to not be special districts by the Department of Economic Opportunity. See (last visited 8/8/12). 38 Information provided by the Department of Agriculture and Consumer Services (DACS) (Copy on file with Office of Policy and Budget, Policy Office staff). Pursuant to s (1), F.S., and rule 5E , F.A.C., districts and counties are required to submit an annual budget to DACS in order to receive state mosquito control funds. 39 County budgets provided by DACS or county officials (copy on file with Office of Policy and Budget, Policy Office staff). 6

7 Mosquito Control Budgets vs. District Population Mosquito Control District Budget (includes projected reserves and self insurance funds) Population Served Percentage of Total State Population Amelia Island $1,051, , % Anastasia $7,126, , % Beach $1,520, , ,00 Seasonal Brevard * $8,731, , % Buckhead Ridge $197, , % Citrus County $4,482, , % Collier $9,605, , % East Flagler $3,329, , % Florida Keys $14,742, , % Fort Myers Beach $353, , % Indian River $5,417, , % Lee County $21,254, , % Manatee County $4,720, , % Moore Haven $113, , % Pasco County $11,484, , % Sarasota County* $2,950, , % South Walton County $1,741, , % St. Lucie County* $7,247, , % Budget information provided by DACS Population and land area based on 2010 U.S. Census. See * Brevard, Sarasota County and St. Lucie County are dependent special districts The special district MCDs vary in size and population represented. The smallest district in expenditures is Moore Haven Mosquito Control District which has a projected budget of $113, ($72,198 in projected revenue and $41, in reserve from the previous fiscal year). 40 Independent MCDs are required to produce an audit report pursuant to s (1)(c), F.S. 41 Based on those reports, the total operating budget for independent MCDs during their FY was $65,909,203, 42 with the highest area of expenditure on personal services. 43 In FY , independent MCDs spent $36,018,995 or 54 percent of total budget on personal services and employed 456 employees 44, not including seasonal or part time employees. 40 As reported to DACS in the certified budget for FY Copy on file with Office of Policy and Budget, Policy Office staff. 41 Audit reports are available at (last visited 8/9/12). 42 This does not include Sarasota County, Brevard, or St. Lucie County MCDs. These are dependent special districts and are not required to report separately from the county pursuant to s (3)(a), F.S. 43 Personal services may include salary, benefits, retirement benefits, payroll and other employment related taxes. 44 Employee totals were provided by the Department of Management Services, Division of Retirement. This data includes paid commissioners. 7

8 Mosquito Control Budget Spend (Per Capita) in $ 8

9 Mosquito Control Budgets by % % of State Population Served % Special District 19% Special District Mosquito Control 73% County 81% County Mosquito Control III. OVERSIGHT BY THE DEPARTMENT OF AGRICULTURE AND CONSUMER SERVICES The Department of Agriculture and Consumer Services (DACS), through the Bureau of Entomology and Pest Control, oversees both county and special district mosquito control programs for compliance with ch. 388, F.S., and associated rules. 45 DACS oversight includes: Budget and work plan; Distribution of state funds; Licensing, training, certifications and inspections; and Compliance with environmental standards, including operating under a National Pollutant Discharge Elimination System (NPDES) permit. DACS has extensive regulation regarding pesticide application, certification, aerial application of pesticides, and protection of the general public and public lands. Mosquito control is a highly regulated government service. Budget and Financial Reporting MCDs are required to submit a series of budgets to DACS for review and approval. 46 The governing board of the MCD must submit a tentative work plan budget to DACS 47 prior to July 15 each fiscal year for the purposes of determining eligibility for state aid. 48 The governing board of the MCD is required to give consideration to any objections by DACS to the tentative work plan budget 49 and, by September 30, is required to submit a certified budget to DACS See s (1), F.S., and Ch. 5E-13, Florida Administrative Code (F.A.C.). 46 Section , F.S. 47 Section (1), F.S. The tentative detailed work plan budget sets forth the proposed expenditures of the district for construction; for acquisition of land, and other purposes; for the operation and maintenance of the district s works; for the conduct of the district generally; and for reserves. 48 The fiscal year for Mosquito Control Districts begins October 1. See s , F.S. 49 Section (4)(a), F.S. 50 Section (4)(b), F.S. See also rule 5E , F.A.C. 9

10 DACS staff reviews all MCD budgets for compliance with ch. 388, F.S., and ch. 5E-13, F.A.C. 51 MCDs are also required to adopt their budget and maintenance tax in accordance with s , F.S. 52 Mosquito Control Districts are required to submit expenditures to DACS every month. 53 The report includes expenditures from all funds for arthropod control, and reports of activities and accomplishments of the districts. 54 State Funds Section , F.S., provides for state aid to counties and districts for mosquito control. The funds are from the Solid Waste Management Trust Fund, which are generated by the waste tire fee. 55 Section (1)(c), F.S., provides that up to 11 percent is to be used for funding to supplement any other funding provided to DACS for mosquito control. A mosquito control district (or county program) is eligible to receive state aid when it provides the following: An annual budget; A contractual service agreement with DACS; A signed acknowledgement of being subject to s , F.S.; A detailed work plan budget; and An operational work plan. 56 For the state FY (July 1 to June 30), $1,043,368 was budgeted to be distributed by DACS to county and special district mosquito control programs. 57 The distribution of state aid to MCD special districts for the previous state FY ( ) was: Amelia Island MCD: $18, Anastasia MCD: $18, Beach MCD: $9, Brevard MCD: None Buckhead Ridge MCD: $9, Citrus County MCD: $18, Collier MCD: $18, East Flagler MCD: $18, Florida Keys MCD: $18, Fort Myers Beach MCD: None Indian River MCD: $18, Lee County MCD: None Manatee County MCD: $18, Moore Haven MCD: $9, Pasco County MCD: $18, Sarasota County MCD: $18, DACS has also instituted a budget amendment process for MCDs. See rule 5E (2), F.A.C. 52 Section (3), F.S. 53 Section , F.S. See also rule 5E (3), F.A.C. 54 Id. 55 Section , F.S. The rational nexus is that waste tires, when not properly disposed of, become a breeding ground for mosquitoes specifically disease carrying mosquitoes. Several of the MCDs have programs to collect abandoned or improperly disposed of tires to prevent mosquito borne illnesses including West Nile and Encephalitis. Indian River MCD collects thousands of tires per year through their program alone. 56 Rule 5E (1), F.A.C. 57 See ch , L.O.F., line item

11 South Walton County MCD: $9, St. Lucie County MCD: $18, The amount of aid provided by the state is only a small percentage of the overall budget of most MCD special districts. The state aid was originally designed to be a dollar-for-dollar match to the local funds 58 with the maximum amount any county may receive set at $120, DACS prorates the amount based on the amount of local funds budgeted by each county or district if the appropriation is not sufficient for a dollar-for-dollar match to the local amount. 60 If there is more than one mosquito control agency in the county the funds are prorated based on the populations they serve. 61 Certification Pursuant to s (4), F.S., DACS has adopted rules establishing criteria for the licensure and certification of private and public mosquito control applicators and program directors. If a program chooses to not participate in the state funding, it may still become a state approved program by providing: Monthly chemical reports of accomplishments and inventory; Detailed work plan budget; Operational work plan narrative; and Compliance with ss (1) and , F.S. 62 DACS also has criteria for licensure for individuals to apply a pesticide, 63 aircraft application of pesticides and record keeping, 64 and enforcement of environmental standards and public safety. 65 Director of Mosquito Control District All mosquito control districts are required to have a director. Section , F.S., provides that, The program shall be administered for the board of commissioners by a qualified person. DACS promulgated rules that provide minimum qualifications based on the budget amount of each program. 66 Director I: Local budget $30,000 to 249,000 (Moore Haven and Buckhead Ridge) 67 Director II: Local budget $250,000 to $999,999 (Fort Myers Beach) 68 Director III: Local budget $1,000,000 or above (all other MCD special districts) Section (2), F.S. 59 Section (3), F.S. 60 Section (2), F.S. 61 Section (5), F.S. 62 Rule 5E (3), F.A.C. 63 See rule 5E , F.A.C. 64 See rules 5E and 5E , F.A.C. 65 See rules 5E , 5E , and 5E , F.A.C. 66 See s , F.S., and rule 5E , F.A.C. The minimum requirements apply to counties as well as special districts. 67 See rule 5E (4)(a), F.A.C. Minimum qualifications: High school graduate with minimum of three (3) years of training and field experience in control of mosquitoes, or three (3) years experience in managing a comparable program, or a graduate of four (4) year college or university with a degree in the basic sciences or engineering. 68 See rule 5E (4)(b), F.A.C. Minimum qualifications: Graduate of four (4) year college or university with a degree in the basic sciences or engineering. Requirements for college degree shall be waived upon proof of a satisfactory work experience record of four (4) years duration directing or assisting in directing a work program in the mosquito or arthropod control field of comparable size and budget to that of the District or County where the application is pending. 69 See rule 5E (4)(c), F.A.C. Minimum qualifications: Graduate of four (4) year college or university with a degree in the basic sciences or engineering and two years work experience in mosquito control. 11

12 The board of commissioners is required to forward their selection of director to DACS to obtain written confirmation of the candidate s eligibility. 70 The director must also obtain a director s certification within six months of employment. 71 Certification entails scoring 70 percent or better on the Director s Certification Examination 72 and holding a Public Health Pest Control license. 73 IV. GOVERNANCE Board of Commissioners Independent MCDs are governed by an elected district board of three to seven commissioners, who serve four year terms. 74 The boards, may do any and all things necessary for the control and elimination of all species of mosquitoes and other arthropods of public health importance and the board of commissioners is specifically authorized to provide for the construction and maintenance of canals, ditches, drains, dikes, fills, and other necessary works to use pesticides registered by the department but only in such quantities as may be necessary to control mosquito breeding and not be detrimental to fish life. 75 The board of commissioners has overall responsibility for the district, including budgeting, setting and levying of taxes, and hiring of a director. 76 The number of commissioners varies from district to district. Most of the districts have three commissioners, although three districts have five commissioners (Anastasia, Collier, and Florida Keys) and one district has seven commissioners (Lee County). The board may elect to expand membership from 3 to 5 commissioners. 77 All boards are required to hold monthly meetings. 78 The three dependent MCDs 79 are each governed by the local board of county commissioners. Appointment Pursuant to s , F.S., if a vacancy occurs on a MCD board, the Commissioner of Agriculture is to fill the position for the remainder of the vacant term. Three exceptions are Indian River MCD, Lee County MCD and the Florida Keys MCD, which provide for appointment by the governor if there is a vacancy on the board Rule 5E (3), F.A.C. 71 Rule 5E (5)(a), F.A.C. 72 Rule 5E (5)(b), F.A.C. 73 Rule 5E (5)(c), F.A.C. 74 Section , F.S. Districts created by special act may have more board members. For instance, Lee County MCD has seven commissioners. A district may also elect, by resolution, to increase the board from 3 to 5 commissioners. See s (2), F.S. 75 Section (1), F.S. 76 See ss , , , , , F.S. 77 Section (2), F.S. 78 Section , F.S. 79 Brevard MCD, Sarasota County MCD, and St. Lucie County MCD. 80 See Attorney General Opinion, AGO (last visited 8/9/12). 12

13 Commissioner Compensation Commissioner compensation is set at $4,800 per year, or below, unless a higher amount has been authorized by special act or general act of local application. 81 Currently, the only commissioners that are paid above the $4,800 a year limit are members of the Florida Keys Mosquito Control District Board, who have received $21,438 to $22,038 during the last fiscal year. 82 No board member of a mosquito control district may receive compensation for serving on more than one special district board. 83 Board members may also receive per diem and travel expenses pursuant to s , F.S. The $4,800 per year compensation has remained constant since The compensation, for most districts, makes up a small amount of the overall budget of the district. In smaller districts, like Moore Haven MCD, the compensation of board members is a significant expense. Moore Haven MCD has a projected income of $72,198 for the FY with compensation to commissioners at $7,200. This represents nearly 10 percent of the district s annual revenue. 84 Additionally, MCD commissioners are enrolled in the Florida Retirement System (FRS). Collier MCD requested an Attorney General opinion regarding providing commissioners with health insurance. In Attorney General (AG) Opinion , 85 the attorney general advised that commissioners may not receive benefits such as medical insurance or accidental death or disability insurance and are limited to the proscribed $4,800 limit on compensation. The AG opinion provided that there is no statutory authority that would allow the commissioners to participate in a group insurance plan. 86 In 2004, the Legislature passed Senate Bill (SB) 708, 87 which amended s (2)(a), F.S., to provide that: Notwithstanding any general law or special act to the contrary, every local government unit is authorized to provide and pay out of its available funds for all or part of the premium for life, health, accident, hospitalization, legal expense, or annuity insurance, or all kinds of such insurance, for the officers and employees of the local governmental unit (emphasis added and reflects amendment). The Senate bill analysis of SB 708 provides that the purpose of the amendment is to address the attorney general opinion regarding mosquito control commissioner health care 88 and the effect of the amendment to s (2)(a), F.S., is 81 Section (1), F.S. The compensation amount was set at $4,800 a year in 1986 from $5 per day worked. See ch , L.O.F. 82 Chapter , L.O.F., in regards to the Florida Keys Mosquito Control District, provides that The board of commissioners shall have authority to establish the amount of compensation by way of salaries that shall be paid to the individual commissioners of the Florida Keys Mosquito Control District. 83 Section (2), F.S., board members may receive per diem expenses for travel and expenses related to their duties for serving on another board. 84 This amount does not include any related taxes or required FRS contributions. 85 Fla. AGO See (last visited 8/2/12). 86 Id. 87 See ch , L.O.F. 88 Senate Staff Analysis and Economic Impact Statement of CS/CS/CS/SB 708, Senate Appropriations Transportation and Economic Development Subcommittee, pg. 3, 04/13/2004. See 13

14 to clarify that special districts have the authority to provide some form of health insurance benefit to their officers and employees. This provides explicit authority for mosquito control districts to provide group insurance to the district s officers. 89 Several independent MCDs offer and pay for benefits to their commissioners and their dependents. These benefits may make up a significant amount of the overall budget for the district. For example, Beach MCD offers full health, dental, and vision to their three commissioners and dependents. 90 A Beach MCD commissioner, who is responsible for overseeing a district with an ad valorem tax levy of $1,052,738, is compensated with: $4,800 per year; Participation in the FRS at the elected official rate; 91 and District paid health, dental, and vision for the commissioner and dependents. The cost to Beach MCD for FY for commissioner insurance was $37,628.74, 92 which represents approximately two and a half percent of the district s total budget. Total compensation for the three commissioners of Beach MCD, including benefits, retirement, and compensation, represents approximately three and a half percent of its total budget. 93 A Florida Keys MCD commissioner, who oversees a district with a tax levy of $9,051,351, is compensated with: $22,038 to $21,438 per year; 94 Participation in the FRS at the elected official rate; District paid health insurance for the commissioner and reduced rate for spouse/dependents; 95 Partial district paid health insurance for retired commissioner and spouse/dependents. 96 The cost to the Florida Keys MCD for FY for commissioner insurance was $70,000 for active commissioners and $30,000 for retired commissioners &billnum=708 (last visited 8/7/12). 89 Id. at pg These are the same benefits offered to all full time employees of Beach MCD. 91 The contribution rate for elected officials effective 7/1/2012 is 8.36%. See s (4), F.S. 92 Information provided by Beach MCD. Copy on file with Office of Policy and Budget, Policy Unit staff. 93 Employee benefits, as a whole, represent approximately 24 percent of the total budget for Beach MCD. 94 Officers of the Board are paid the higher salary. 95 Florida Keys MCD commissioners receive health and life insurance. Commissioners pay $0/month for themselves and if an eligible dependent or spouse is added it is $238.33/month. The District pays the remainder of the premium. 96 A retired Florida Keys MCD pays $50/month for themselves and an additional $238.33/month for an eligible dependent or spouse. The district pays the remainder of the premium. Medicare is primary payor with the district as the secondary payor. 97 Florida Keys MCD commissioner insurance costs provided by the district. Copy on file with Office of Policy and Budget, Policy Office staff. 14

15 Independent Mosquito Control District Number of Commissioners Independent Mosquito Control Commissioners Compensation (per year) Total Commissioner Salary (2011) Provide/Offer Health Benefits Total Cost to District in FY10-11 Amelia Island 3 $4800 $14,400 Anastasia 5 $4800 $24,000 No $0 Beach 3 $4800 $14,400 Yes, including $37,628 dependents (100%) Buckhead Ridge 3 Unknown Unknown Unknown Unknown Citrus County 3 $4800 $14,400 Yes $10,619 Collier 5 $4800 $24,000 No $0 East Flagler 3 $4800 $14,400 No $0 Florida Keys 5 $22,038 (officers) $125,000 Yes (100%) $100,000 $21,438 (comm.) Familyadditional Fort Myers Beach 3 $4800 $14,400 Yes, offered, but $0 commissioner pays full premium Indian River 3 $4800 $14,400 Yes (100%) $61,373 Lee County 7 $4800 $33,600 Yes (75%) $102,546 Manatee County 3 $4800 $14,400 No $0 Moore Haven 3 $2400 $7,200 No $0 Pasco County 3 $4800 $14,400 No $0 South Walton County 3 $4800 $14,400 Yes (100%) Total Commissioners 55 V. TAXES AND FEES The board of commissioners for a MCD is responsible for setting the millage rate for the district. 98 The board must adhere to the procedures for calculating and setting millage rates provided in s , F.S. The millage rate is capped at 10 mills 99 per s , F.S., but MCDs that were formed pursuant to a special act may have a more restrictive cap. For example, the Fort Myers Beach MCD has a cap of 1 mill pursuant to ch , L.O.F. All MCDs millage rates are significantly below the 10 mill cap, with Buckhead Ridge MCD having the highest millage rate at 1 mill. With the exception of Buckhead Ridge MCD, MCDs are all between 0.02 and 0.5 mills, including Bay County, Hernando County, East Volusia, and North Walton, which have a separate line item on the county property tax bill for mosquito control, but do not qualify as a dependent special district. 100 In order to compare special district MCDs to county mosquito control programs, an effective millage rate was calculated utilizing the budgeted ad valorem revenues for the county mosquito control 98 See s , F.S. 99 Mills is an abbreviation for the millage rate. 1 mill = $1 per $1,000 of property value. 100 See report regarding programs determined not to be a special district (last visited 8/9/12). 15

16 program and dividing the number by the assessed tax value of the county minus exemptions. 101 The chart below reflects those calculations. None of the counties calculated had an effective millage rate above 0.06 mills. For example, Pinellas County had an effective millage rate of mills and Miami- Dade County had an effective millage rate of mills. The main factors for the lower millage rate are: higher property values in those counties, and/or the lesser need for coastal and inland mosquito control due to environmental factors and development, which limit mosquito production. Mosquito District Tax Millage Rate and Revenue Comparison District Name 2011 Millage Rate (1 mill = $1 per $1000 value) Rolled-back Rate 2011 Type of District 2011 Total Assessed Tax (tax revenue only) Amelia Island Independent $576,505 Anastasia Independent $2,323,193 Beach Independent $1,052,738 Brevard Dependent $5,408,702 Buckhead Ridge Independent $62,590 Citrus County Independent $2,793,454 Collier Independent $5,389,613 East Flagler Independent $1,490,428 Florida Keys Independent $9,051,351 Fort Myers Beach Independent $267,900 Indian River Independent $3,876,717 Lee County Independent $13,673,352 Manatee County Independent $3,063,279 Moore Haven Fee Based ($6/mon. on n/a Independent utility bill of residents) Pasco County Independent $3,902,082 Sarasota County Dependent $1,095,995 South Walton County Independent $1,091,010 St. Lucie County Dependent $2,912,529 County Mosquito Control (separate line item on property tax bill) Bay County* County $921,999 Hernando County** n/a County $616,073 East Volusia* County $3,585,052 North Walton* County $493,944 * Similar to a Dependent District (not classified as one by DEO) ** Municipal Service Taxing Unit (MSTU) County Mosquito Control Effective Millage Rate (budget/taxable value) Total Ad Valorem (minus state funds) Orange $1,291,900 Palm Beach $1,959,606 Pinellas $2,961,010 Polk $1,190,578 Jacksonville (Duval) $2,061,358 Hillsborough $2,263,318 Broward $1,191,080 Miami-Dade $1,822, Ad valorem revenue information provided by DACS; county taxable values available at Department of Revenue website. See (last visited 8/9/12). 16

17 In Million of $ Taxing and Revenue Trend Most districts over the last six years have reduced their overall tax revenues and have adopted either the rolled-back millage rate 102 or a lower rate. Anastasia MCD, Beach MCD, Buckhead Ridge MCD, East Flagler MCD, Manatee County MCD, Indian River MCD, and Pasco County MCD have adopted a lower rate than the rolled-back rate for the last four fiscal years. Prior to the economic downturn, many of the districts accumulated reserves that are now being utilized to reduce the tax burden to district residents. Overall taxes levied by independent MCDs have dropped from $56,359,138 in FY to $48,301,061 in FY This represents a 14 percent total drop in taxes levied over the last six years, and when accounted for inflation, it represents a 22 percent drop. 103 The most dramatic example of reducing tax revenue is the Florida Keys MCD. The Florida Keys MCD has adopted a lower than rolled-back rate for FY through and adopted the rolled-back rate for This has been a reduction of tax revenue from $14,537,990 in to $9,051,351 in FY When accounted for inflation, this represents a drop of 43 percent of tax revenue. During the same time period the Florida Keys MCD built a $7.5 million air/hangar facility Total Taxes Levied by Independent MCDs Taxes Levied Taxes Levied (Adjusted for inflation to 2012 $) 35 06/07 07/08 08/09 09/10 10/11 11/12 Tax Year 102 See s (1), F.S., regarding calculation of rolled-back millage rate. 103 Amounts accounting for inflation were calculated utilizing (last visited 8/9/12). The year utilized for calculations is the latest calendar year in the district tax year, for example, for FY , calendar year 2007 was utilized. 17

18 In Million of $ Florida Keys MCD Taxes Levied and Expenses 06/07 07/08 08/09 09/10 10/11 11/12 Tax Year Taxes Levied Taxes Levied (Adjusted for inflation to 2012 $) Expenses (11/12 Budgeted) VI. OPERATIONS Integrated Pest Management System The operations of MCDs vary depending on the environmental factors of the district itself. Most of the districts utilize an Integrated Pest Management (IPM) System that is adapted to the district s environmental needs. IPM includes: Source Reduction: Elimination of mosquito producing sites (ex. impoundments and ditches); Larviciding: Chemical/biological application to kill mosquito larvae; Adulticiding: Chemical applications to kill adult mosquitoes; 104 The priority given to each control method, and the overall cost of the program, depends on the district s environment. For example, Indian River MCD has extensive salt marshes, which produce a large amount of mosquitoes if left untreated. In the 1950 s, mosquito impoundments were built in the salt marsh areas on the east coast to control mosquito populations. Through the use of Rotational Impoundment Management (RIM), the Indian River MCD is able to control the salt marsh water levels and reduce the production of salt marsh mosquitoes. The main focus for Indian River MCD is on the maintenance of these impoundments. 105 This is an example of source reduction, which tends to be the least expensive method of treatment. 106 On the west coast of Florida, building mosquito impoundments was not an option due to environmental regulation and salt marsh protection, so source reduction is not the main focus. The programs instead rely on larviciding and adulticiding, which are more expensive. There is a significant amount of salt marsh and freshwater within Pasco County. The primary method of mosquito control in Pasco County is larviciding from both the ground and air, with adulticiding utilized when necessary. Collier MCD, which 104 Information provided by Indian River Mosquito Control District. Copy on file with Office of Policy and Budget, Policy Office staff. 105 The Brevard Mosquito Control District also operates an impoundment system, which is the nation s largest with 28,000 acres (44 sq. miles) of impoundments. 106 Source reduction can also include disposing of tires properly, dumping containers that have standing water, etc. 18

19 has a large amount of wetlands and protected lands on its coast and eastern border, from which mosquitoes migrate, focuses on adulticiding because larviciding of the adjacent wetland areas is not practical. The charts below reflect the percentage of total acres sprayed by special district and county mosquito control programs by type of treatment. 107 Aerial Adulticiding % of Total Acres Sprayed County Programs Special Districts Ground Adulticiding % of Total Acres Sprayed *( Not Available) County Programs Special Districts 35% 35% 65% 65% Aerial Larviciding % of Total Acres Sprayed Ground Larvicding % of Total Acres Sprayed County Programs Special Districts County Programs Special Districts 24% 35% 76% 65% 107 Acres sprayed information provided by DACS. Data regarding total acres sprayed by ground adulticiding was not available for

20 Environmental Factors and Program Cost The environment is the key determining factor in the overall cost of a mosquito control program. An example is Lee County MCD, which was formed in Lee County has extensive salt marshes and due to environmental factors it was determined early on that utilizing source reduction (mosquito impoundments, etc.) would not be practical for treating these areas. The only feasible method was aerial spraying and vehicle-based spraying. As the county grew from 54,539 people in to an estimated 631,330 people in 2011, 109 so did the demands placed on the mosquito control program. The salt marshes produce a significant amount of the mosquitoes in Lee County, and due to environmental regulations on state land (most of the salt marsh is state-owned), Lee County MCD may only larvicide on these lands. While the larviciding reduces the salt marsh mosquito population, there remains a large population that continues to be produced and has the potential to affect county land as far as 25 miles inland. The balancing of mosquito control with the preservation of state-owned land has lead to an increased need for adulticiding in the county, which leads to higher costs overall. Lee County, Florida- State Protected Salt Marsh Areas Weather as a Cost Driver Weather, more specifically rainfall, is the primary driver for mosquito control budgeting and actual costs because increased amount of rain leads to larger mosquito population potential. Most MCDs budget for a heavy rain season, which is primarily reflected in budgeted costs for chemicals and fuel. If there is an above average rainfall or a tropical event (hurricane, tropical storm, etc.) the amount spent on chemicals and fuel will increase. The below chart demonstrates the link between rain fall and chemical expenditure. For example, in calendar year 2006, the average rainfall for the year in Florida was inches and the resulting expenditure on chemicals was $3,534,418 ($3,911,755 adjusted for inflation), while in calendar year 2008 the average rainfall in Florida was inches for the year, with a resulting expenditure on chemicals at $5,446,908 ($5,826,247 adjusted for inflation). A hurricane or tropical storm may also increase overall mosquito control expenditures. 108 See 1960 U.S. Census report from (last visited 8/9/12). 109 See U.S. Census report (last visited 8/9/12). 20

21 Fiscal Year Annual Rain Fall and Chemical Expenditures Average Annual Statewide Rainfall (in inches) Amount Spent on Chemicals (actual) in $ Amount Spent on Chemicals (adjusted for inflation to 2012) in $ $3,534,418 $3,911, $4,444,942 $4,737, $5,446,908 $5,826, $5,414,864 $5,698, $4,310,395 $4,397,373 Surveillance Mosquito Population Pursuant to s , F.S., DACS is required to promulgate rules regarding the criteria to determine when mosquito population levels are deemed to constitute a public health or nuisance problem. Rule 5E , F.A.C., provides numerous metrics in order to justify spraying of pesticides for mosquito control. In order to provide these metrics and be legally allowed to spray, the MCDs utilize various methods of mosquito population surveillance. These include various types of traps, truck-based traps, water source inspection for larvae, and landing rate counts. The type of surveillance varies by district. The surveillance is done daily. In the larger districts, mosquitoes from the various traps are sent to the in-house lab technicians who identify the species and finalize the counts. The counts determine when and where the district will spray that day. Truck Traps (Lee County MCD) Suction Trap (Pasco County MCD) Disease Monitoring Nearly all of the districts monitor for mosquito borne diseases, including West Nile virus, St. Louis encephalitis, and eastern equine encephalitis. Disease monitoring is a significant expense to most of the districts. The majority of the monitoring is done by placing caged sentinel chickens around the district and testing them for the diseases. 110 The districts then send in the blood samples to the Florida Department of Health (DOH) laboratory in Tampa to test for these viruses. DOH monitors statewide for 110 Collier MCD utilizes the Rapid Analyte Measure Platform (RAMP) system rather than sentinel chickens. 21

22 the diseases and issues alerts regarding possible disease outbreaks. MCDs, whether special district or county commission programs, are an integral part of disease monitoring in the state. From Florida Department of Health Public Outreach/Education Many of the special district and county programs have a public outreach and/or education program. The goal is to inform the public of the operations of the MCD, the dangers of mosquito borne disease, and how to avoid contracting mosquito borne illnesses or creating mosquito breeding environments (tires, bird baths, standing water, etc.) The programs vary significantly in scope. Some programs utilize lab technician staff to do outreach within the community and schools, others focus on press relations, and some have a much broader scope that encompasses partnerships with the local school board. VII. ORGANIZATIONAL STRUCTURE All independent and dependent MCDs have a governing board that is responsible for hiring a director for the district. 111 The overall organization of the district, and resulting salaries, are dependent on the district size and scope of operation. For example, Fort Myers Beach Mosquito Control (FMBMC), one of the smallest independent MCDs, has a budget of approximately $350,000, a population of 6,300, and covers approximately 23 square miles, and has three full-time employees and three elected commissioners. 112 The chart below reflects the organization structure of FMBMC. 111 An independent MCD has an elected board of commissioners and a dependent board has the local governing authority (county commission) as its governing board. 112 Employee count as reported to the Department of Management Services (copy on file with Office of Policy and Budget, Policy Office staff). 22

23 Fort Myers Beach Mosquito Control Organizational Structure Board of Commissioners (3 elected) Executive Director Spray Instructor Supervisor Spray Instructor Lee County Mosquito Control (LCMD), one of the largest mosquito control operations in the state and located in the same county as FMBMC, has a budget of over $15 million, 113 a population of over 600,000, covers 761 square miles, has 81 full time employees, 114 and seven elected commissioners. The district is managed by the executive director, 115 has a human resource director, and four deputy directors that oversee various departments. The deputy directors each manage between six to 32 employees. Lee County Mosquito Control Organizational Structure Board of Commissioners (7 elected) Executive Director Director- Human Resources Deputy Director- Education/Comm. Deputy Director- Mosquito Control Deputy Director- Aviation/Fleet Deputy Director- Admin & CFO The larger the district the more areas of organization it tends to cover. Lee County Mosquito Control District is an example of a large district with a large population. The district includes an educational outreach program, scientific research, and a human resources department. 113 This is based on the certified budget from DACS, which shows a budgeted expense of $15,254,589, or $21,254,589 if capital outlay and self insurance reserves are included. 114 This count does not include employees of the Lee County Water Hyacinth District. The LCMC Board of Commissioners also oversees the Lee County Hyacinth District. 115 The director of LCMC also serves as the director of the Lee County Water Hyacinth District. 23

24 VIII. SALARIES AND BENEFITS Salaries Employee salaries and benefits are tied to the size of the district and the overall operation. The highest paid employee tends to be the executive director of the district. 116 The highest paid mosquito control special district employee is the Deputy Director for Mosquito Control and Scientific Intelligence for LCMC at $149,061 per year. 117 The location of the district also is a factor in salary determination, for example, employees for the Florida Keys MCD tend to have a higher average salary. A significant factor for this is the cost of living and the limited pool of potential employees. MCD Executive Director Salaries and Overall Budgets Mosquito Control Special District Executive Director Annual Salary FY Annual Budget Amelia Island $66,699 $1,051, Anastasia $78,574 $7,126, Beach $70,016 $1,520, Brevard Currently Vacant* $8,731, Buckhead Ridge Unknown** $197, Citrus County $67,147 $4,482, Collier $119,835 $9,605, East Flagler $93,462 $3,329, Florida Keys $115,000 $14,742, Fort Myers Beach $45,877 $353, Indian River $95,407 $5,417, Lee County $137,470 $21,254, Manatee County $115,774 $4,720, Moore Haven $900/month $ Pasco County $112,491 $11,484, Sarasota County Currently Vacant* $2,950, South Walton County $70,000 $1,741, St. Lucie County $99,528 $7,247, **OPB staff was unable to contact a district representative for Buckhead Ridge MCD to verify director salary. * Brevard County is advertising at $2,327 to $3,025 biweekly *Former Sarasota director salary was $72,010 Benefits All independent mosquito control special districts are enrolled in the Florida Retirement System (FRS), with the exception of Buckhead Ridge. 118 There are currently two retirement programs that a member of the Florida Retirement System may participate in: The Florida Retirement System Pension Plan (defined benefit or DB plan ) or the Florida Retirement System Investment Plan (defined contribution or 116 The only exception is Lee County MCD, but the director of Lee County MCD also serves as director of the Lee County Water Hyacinth Control District and is compensated for that service as well. 117 Information provided by the Department of Management Services, Division of Retirement (copy on file with Office of Policy and Budget, Policy Office staff). 118 See s (2)(b)(1), F.S. 24

25 DC plan ). The FRS requires the employer to contribute an actuarially determined amount 119 and the employee to contribute three percent of his or her salary. 120 Most MCDs offer health, dental benefits, vision and other benefits to employees. The amount contributed by the district varies from district to district. Several districts provide health benefits at no cost to the employee, including the Florida Keys MCD, Manatee County MCD, and Beach MCD. Others offer various premium arrangements. Lee County MCD pays 75 percent of the premium, while the employee is responsible for the remaining premium. Other Post-Employment Benefits (OPEB) Pursuant to s , F.S.: Any special district (emphasis added) that provides life, health, accident, hospitalization, or annuity insurance, or all of any kinds of such insurance, for its officers and employees and their dependents upon a group insurance plan or self-insurance plan shall allow all former personnel.and their eligible dependents, the option of continuing to participate in the group insurance plan or self-insurance plan. Retirees and their eligible dependents shall be offered the same health and hospitalization insurance coverage as is offered to active employees at a premium cost of no more than the premium cost applicable to active employees. For retired employees and their eligible dependents, the cost of continued participation may be paid by the employer or by the retired employees. Any special district that provides health insurance for their active employees is legally required to provide the same benefits for their retired employees. This type of benefit is considered other postemployment benefits (OPEB) and must be accounted for in district audit reports. MCDs have different approaches to providing OPEB to their retired employees. For example, Lee County MCD offers retired employees who were hired after 7/1/2011 the option of continuing group coverage at 100% of the cost 121 and employees who were hired prior to 7/1/2011 are eligible to continue group coverage for the same cost-sharing amount as active employees. 122 As of 10/1/2010, the membership of the Lee County MCD group insurance plan consisted of: Active employees: 81 Current retirees with Medical Coverage: 58 Covered spouses: 31 Lee County MCD is expecting to have approximately 25 additional retirees over the next five years. 123 The net OPEB liability for the district, as of 9/30/11, was $7,928, Section (4), F.S. 120 Section (3), F.S. 121 This is similar to the retirees for the state of Florida. See s (3)(g), F.S., and s (1), F.S. 122 The cost sharing is currently 75 percent district paid and 25 percent employee paid. 123 At age 65 retired employees of Lee County MCD are required to enroll in Medicare and the Districts will provide the same cost sharing (75 percent/25 percent) for a Medicare supplement policy. This reduces the cost to the District and also takes the older retirees out of the plan pool of employees which also helps reduce the cost of the plan for active employees. 124 See audit report from (last visited 8/7/12). 25

26 IX. COMPLIANCE WITH FINANCIAL REPORTING Pursuant to s , F.S., every special district is required to submit a financial report to the Department of Financial Services. A special district with revenues greater than $100,000 is also required to undergo an independent audit and submit the auditor s report. 125 As of July 30, 2012, all mosquito control special districts were current with required reporting requirements. 126 X. SPECIAL DISTRICT MODEL Efficiencies & Advantages There are many advantages to the independent special district model for mosquito control. The main benefit is the ability for the special district to concentrate on only mosquito control. With a county providing the service, mosquito control is a secondary objective of the county government and may not receive the focus needed. By having a separate district, the revenue remains more constant and the service is provided on a more consistent basis. One of the initial reasons for the founding of the district was to guarantee a revenue stream to provide consistent mosquito control to the district when the county commission would not. Innovation and Efficiency Another advantage of the independent special districts is that, due to the independent nature of the operation, there tends to be a high level of innovation and utilization of existing resources within the culture of the district. There are several examples from Pasco County MCD. Some of these innovations and efficiencies include: Designing and implementing a front boom system with a hose attachment for larviciding/inspector trucks that allows the driver to spray from the cab. This eliminates the need for a second employee to spray from the truck bed. Designing in-house spray tools rather than buying them. An example is the hand held ultra low volume (ULV) sprayer that is built for $450 from a weed trimmer, which would cost $2,100 to order from a distributor. Utilizing technology. Many of the districts, including Pasco County MCD, have implemented software that allows for quicker response time to taxpayer requests and accurate spraying of mosquito populations. Designing in-house truck and ATV ULV spray equipment. Pasco County MCD is able to design and build the system in-house for $5,000 rather than buy the equipment from a distributor for $10, Section (c), F.S. 126 Beach MCD submitted the annual financial report on 7/17/12 and the Audit report on 7/20/12. The deadline was 6/30/12. 26

27 Hand Held ULV Sprayer Truck Mounted Boom System Cross Training Many of the independent districts utilize cross-training of employee job responsibilities. This allows one employee to be able to perform multiple jobs. A case in point is the Pasco County MCD s operations supervisor. This employee is responsible for coordinating the ground adulticide program, aerial adulticide program, mosquito surveillance program, and chicken surveillance program. Independent MCDs also cross-train field teams to assist shop personnel with equipment rebuild and repair during off-season. Elected Officials Another benefit, depending on the size of the district, is the advantage of having elected officials. These officials are more readily accessible to taxpayers of the district regarding mosquito control service. The elected officials hold open meetings at least once a month and have a series of budget and millage hearings open to the public. Technology Special district MCDs have been at the forefront of technological advancement in mosquito control and mosquito control techniques. This includes utilizing ULV spraying, which has significantly reduced the amount of pesticides used. MCDs also utilize GPS devices in aircraft and vehicles in order to track and avoid duplicative spraying. Inefficiencies & Disadvantages Independent District Model There are possible inefficiencies with the current model of mosquito control delivered by an independent special district versus a dependent special district or county program. An example is that many operations that are unrelated to the actual service (Human resources, IT, etc.) may be duplicated. For example, Lee County Mosquito Control has an administrative and financial unit that includes accounting, IT, and procurement. There are 10 employees in that section with a total salary per year of over $540,000, not including benefits and retirement contributions. Many of these positions would not be needed if the district was part of the county or dependent special district since the county already has those support functions. There is also possible cost savings in areas like insurance and benefits as 27

28 counties tend to have lower overall costs per employee because of the larger size of the employee pool. The below chart reflects the possible inefficiencies with the independent special district service model compared to the dependent district model. Because of the duplication and possible inefficiencies in the independent special district model, there is a trade-off in expenses. The independent model may deliver a more consistent revenue stream for the service, but at a potential increased cost due to duplicative operations. Independent Special District Service Model (Entire County) Independent Special District MCD - Mosquito Control Services - HR Functions - Accounting/IT/Procurement - Communications/Education Main Service(s) Possible Duplicative Operations County - County Services - HR Functions - Accounting/IT/Procurement - Communications/Education Dependent District Service Model (Entire County) Common Operations Shared: - HR Functions - Accounting/IT/Procurement -Communications/Education Common Expenses: - Liability insurance - Employee Benefits (health, vision, etc.) County - County Services Dependent County MCD - Mosquito Control Services Small Independent Special District Overhead Small independent special districts have potential inefficiencies. These inefficiencies result in expenses incurred for the independent operation of the district outside of the county or city governments. For districts with revenues under $100,000 these expenses may represent a significant portion of revenue. 28

29 For example, Moore Haven MCD, an independent district located in Glades County, has an elected board of commissioners, which consists of three commissioners. 127 The district collected $64,558 in fees for FY The revenue is a service fee that is assessed on district residents utility bills and collected by the City of Moore Haven. The district paid the city $2,000 for the collection of this revenue. 129 The district also pays the commissioners $2,400 per year for their service. 130 Approximately 14.5 percent of the service revenue generated by the district is spent on collection of the service fee and payment to commissioners. The district is required to undergo an independent audit, 131 which could easily cost $2,000, increasing the independent special district administrative expenses to 17.6 percent of the fee revenue. The below chart reflects the fee revenue generated in FY and related expenses. Moore Haven MCD FY (Based on Fee Revenue Collected) Estimated Audit Cost Commissioner Compensation Collection of Fees All Other Expenses & Remaining Revenue, $53,172 DACS reported that Moore Haven MCD received $9, from the state for the current fiscal year. Based on the expenses reported from FY , this amount would be absorbed by the costs of the district being independently run. Glades County has another independent MCD in the county, Buckhead Ridge MCD, which received $9, for FY If Buckhead Ridge has similar costs related to independent district expenses, then all of the state money directed to Glades County will be spent on costs relating to administration of the districts in the county rather than actual mosquito control The expenses related to the election of the commissioners are unknown. 128 See audit report of Moore Haven MCD for FY , pg (last visited 8/7/12). 129 Id. 130 The commissioners are also enrolled in the FRS, which requires an employer contribution. At a 3 percent contribution per year, the amount is $ See s (h), F.S. 132 According to the audit report of Buckhead Ridge MCD, the district had ad valorem revenues of $72,717 for FY Staff was unable to contact representatives of Buckhead Ridge MCD after numerous attempts and district employees are not enrolled in the FRS. 29

30 Smaller Independent Special District within Larger Independent Special District Another possible disadvantage or inequity of the independent special district model is when a smaller district resides within a larger district. An example is Fort Myers Beach MCD and Lee County MCD. The below map reflects the boundaries of both districts. The map of Lee County shows the seven districts of Lee County MCD and Fort Myers Beach MCD. Lee County Mosquito Control and Fort Myers Beach Mosquito Control Fort Myers Beach MCD, Independent Special District Fort Myers Beach MCD contracts with Lee County MCD to do aerial spraying within their district. 133 In FY , the millage rate for residents of Fort Myers Beach MCD was mills with a tax levy of $267,900. The millage rate for residents of the rest of Lee County was mills with a tax levy of $13,673,352. A major issue for Lee County is salt marsh mosquitoes which can spread up to 25 miles inland. Lee County does a large amount of aerial spraying to control this population, which leads to large expenses, but benefits the county as a whole, including Fort Myers Beach. If Fort Myers Beach were to be included in Lee County MCD with the same millage rate at the rest of the county, the resulting tax levy would be $728,639. The residents of Fort Myers Beach pay significantly less for mosquito control than the rest of the county, but still enjoy the overall benefit of salt marsh spraying. 133 The annual charge for the spraying is $60,

31 Continued Need and Evaluation There is no procedure for continued evaluation of the need for independent special district MCDs. The board of commissioners for each independent MCD is elected and thus any concerns or complaints from constituents should be directed to their elected mosquito control commissioner. Most of the MCDs were created from 1925 to 1965 when the counties they served had a much smaller population and mosquito control service was not an expected service from the county. Many of the larger districts were created from smaller districts or expanded over the years to encompass an entire county. By reviewing the legislative and statutory history of mosquito control, the original intent of the mosquito control statutes was to create a grass roots method for citizens of a county to receive much needed mosquito control services, which at that point in Florida history, was not provided by counties. Many of the county commissions were reluctant to devote resources to the service, so chs , F.S., and special acts, gave local citizens the option to create a taxing district to provide the service and generate additional revenue to fund the service. There are several possible inefficiencies that are present in the creation of an independent special district. Mosquito control districts provide a potential illustration of these inefficiencies since most counties in the state provide the service. The inefficiencies are not in the actual control of the mosquitoes, but in the manner in which the unit of government operates and as such, the independent mosquito control district model creates a potential trade-off. The district may have some inherent inefficiencies, but may also provide a more consistent mosquito control service. 31