Florida Special District Handbook Online

Section 1 - 4: Creating, Amending, Merging, and Dissolving Special Districts; Reviewing and Revising Rules

Creating Independent Special Districts

Generally, only the Legislature may create independent special districts. However, the following exceptions apply:

Independent Special District that the Governor and Cabinet May Create

Independent Special Districts that a County May Create

Independent Special Districts that Two or More Counties May Create

Independent Special Districts that Any Combination of Two or More Counties or Municipalities May Create

Independent Special Districts that Any Combination of Two or More Counties, Municipalities, or other Political Subdivisions May Create:

An Independent Special District that a Municipality May Create

Charter (Creation Document) Contents for Independent Special Districts

Excluding Community Development Districts, the general law or special act that creates or authorizes an independent special district must address the following in its charter:

  1. A status statement referencing its independent status. Recommendation: Include a brief statement explaining why the special district is independent (such as, it does not have any dependent characteristics as set forth in Section 189.403(2), Florida Statutes)
  2. The special district's purpose
  3. The powers, functions, and duties of the special district regarding the following:
    1. Ad Valorem Taxation
    2. Bond Issuance
    3. Other Revenue-Raising Capabilities
    4. Budget Preparation and Approval Processes
    5. Liens and Liens Foreclosure
    6. Use of Tax Deeds and Tax Certificates as Appropriate for Non-Ad Valorem Assessments, and Contractual Agreements
  4. The method for establishing the special district
  5. The method for amending the charter of the special district
  6. The membership and organization of the governing board. If the special district uses a one-acre/one-vote election principle, it must provide for a governing board consisting of five members with three members making up a quorum.
  7. The maximum compensation of a governing board member
  8. The administrative duties of the governing board
  9. The applicable financial disclosure, noticing, and reporting requirements
  10. The procedures and requirements for issuing bonds, if applicable
  11. Election procedures, the qualifications of an elector, and/or required referenda
  12. The methods for financing the special district
  13. The authorized millage rate (only if the special district has the authority to levy ad valorem taxes, other than taxes levied for the payment of bonds and taxes levied for periods not longer than two years when authorized by vote of the electors of the special district)
  14. The methods for collecting non-ad valorem assessments, fees, or service charges
  15. Planning requirements
  16. The geographic boundary limitations

Charter (Creation Document) Exemptions Not Allowed

The general law or special act that creates or authorizes an independent special district may not exempt the special district from the following requirements of Chapter 189, Florida Statutes:

  1. Elections
  2. Bond Referenda
  3. Reporting
  4. Public Notices
  5. Public Meetings

Creating Dependent Special Districts

Occasionally, the Legislature may create a dependent special district by special act. However, counties and municipalities usually create dependent special districts. A county may create dependent special districts within its boundaries by ordinance, subject to the approval of the governing body of the incorporated area affected. A municipality may create dependent special districts within its boundaries, by ordinance.

Ordinance Contents for Dependent Special Districts

The ordinance creating a dependent special district must include the following:

  1. A status statement referencing the special district's dependent status. Recommendation: Include a brief statement explaining why the special district is dependent as set forth in Section 189.403(2), Florida Statutes.
  2. Its purpose, powers, functions, and duties
  3. Its geographic boundary limitations
  4. Its authority
  5. A statement explaining why the special district is the best alternative
  6. The membership, organization, compensation, and administrative duties of the governing board
  7. The applicable financial disclosure, noticing, and reporting requirements
  8. The methods for financing the special district
  9. A declaration that the creation of the special district is consistent with the approved local government comprehensive plans

Newly Created Special District Responsibilities

Notify the Legislature (independent only)

When a local general-purpose government creates an independent special district, it must submit a statement to the Legislature that includes the following:

  1. The purpose of the proposed special district
  2. The authority of the proposed special district
  3. An explanation of why the special district is the best alternative
  4. A resolution or official statement from the local general-purpose government's governing body or an administrator stating the following:
    1. The creation of the proposed special district is consistent with approved local government comprehensive plans
    2. The local general-purpose government does not object to its creation

Register with the Department of Community Affairs, Special District Information Program

Within 30 days after its creation date, each dependent and independent special district must send the following to the Special District Information Program:

  1. The special district's creation document
  2. A written status statement that includes a reference to the status of the special district as dependent or independent and the basis for such classification
  3. A map of the special district clearly showing the following, if applicable:
    1. Municipal boundaries crossing the special district's boundaries
    2. County lines, if the special district is in more than one county
  4. If known, the registered agent's name, address, telephone, fax, and email

Within 30 days of receiving these documents, the Special District Information Program will do the following:

  1. Review the creation documents to verify the special district's dependent or independent status
  2. Add the special district to the Official List of Special Districts Online
  3. Notify the special district and the local general-purpose government of the status determination
  4. Send the Annual Special District Fee Invoice and Update Form to the Special District

Comply with the Annual Special District Fee Invoice and Update Form Requirement

When the special district registers, the Special District Information Program will send the Special District Fee Invoice and Update Form to the special district for the annual special district fee. This fee may be prorated based on when the special district was created (see Section 1 - 3: The Special District Information Program - The Annual Special District Fee). Additionally, the special district must review the special district's information on the form, make necessary changes, complete missing information, have the registered agent sign it, and return it to the Special District Information Program. Making sure the information on this form is correct is very important, since the Special District Information Program must make the information available through the Official List of Special Districts Online. By the due date on the form, the special district must send the comply with the fee requirement and return the form to the Special District Information Program.

Designate a Registered Agent and Registered Office

Within 30 days after its first meeting of its governing board, each special district must designate a registered agent and a registered office, then provide that information to the following:

  1. The Special District Information Program (the special district may use the Special District Fee Invoice and Update Form described above to meet this requirement).
  2. The Local Governing Authority (each local general-purpose government in which the special district is located)

A registered agent is an agent of the special district upon whom any process, notice, or demand required or permitted by law to be served upon the special district may be served. The registered agent must be an individual resident of Florida whose business address is the same as the special district's registered office. The registered office does not have to be the special district's place of business.

Changing a Registered Office and/or Registered Agent

A special district may change its registered office and/or registered agent anytime by filing such changes with the local governing authority in which the special district is located and with the Department of Community Affairs, Special District Information Program (preferred method is in writing via fax, mail, or email).

Start Complying with All Applicable Reporting Requirements

Special Districts must begin complying with all applicable reporting requirements immediately. For example, each newly created special district must comply with its Annual Financial Report requirement (see Section 2 - 3: Annual Financial Report) starting with the fiscal year it was created, even if the special district has no revenues and expenditures and even if the special district was created on the last day of the fiscal year.

Amending Special District Charters

The entity originally establishing a special district may amend the charter and/or map of that special district, pursuant to the amendment processes contained in the charter. Then, send a copy of the amendment to the Special District Information Program within 30 days of approval. Recommendation: If the charter does not contain a "Status Statement" referencing the special district's independent or dependent status and why, consider adding such a reference during the amendment process.

Merging and Dissolving Special Districts

The following describes how to merge or dissolve dependent and independent special districts, depending upon certain circumstances. Be sure to send a copy of any such activity to the Special District Information Program within 30 days of any merger or dissolution.

Financial Allocations

When special districts are merged or dissolved by other methods than a formal declaration of inactive status, the following financial allocations apply (excludes Community Development Districts and Water Management Districts):

  • Unless otherwise provided by law or ordinance, a dissolving special district's property and debts must be transferred to the local general-purpose government
  • For merging special districts, the new special district must assume all indebtedness of, and receive title to all property owned by, the preexisting special districts. The proposed charter must state how the new special district will allocate the assumed indebtedness and retire that debt

Merging and Dissolving Dependent Special Districts

Created by a County or Municipality
  • The merger or dissolution must be effectuated by an ordinance of the county or municipality that created the special district
Created by Special Act of the Legislature
  • The merger or dissolution must be effectuated by the Legislature

Before dissolving a dependent special district, it may be necessary to refund certain special assessments and any interest collected to the original payors, when the costs of distributing the refund do not exceed the amount available for the refund. This requirement applies under all the following conditions:

  • The special district levied assessments for an improvement or specialized function for which it was created
  • The special district has not issued bonds against which the special assessments have been pledged
  • The county or municipality that created the special district determined that the demand for the improvement or function no longer exists, or, most of the land against which the special assessments were authorized has been purchased by a tax exempt governmental agency for environmental purposes and will not receive the benefit for which the assessments were levied

Merging and Dissolving Independent Special Districts

Excluding Community Development Districts (Chapter 190, Florida Statutes), and Water Management Districts (Chapter 373, Florida Statutes), the following dissolution and merger procedures apply to independent special districts:

Created and Operating Pursuant to Special Act of the Legislature
  • The merger or dissolution must be effectuated by the Legislature, unless otherwise provided by general law
Created by a County or Municipality Through Referendum and is Inactive
  • The county or municipality that created the special district may dissolve it by doing the following:
    • Publish a Notice of Proposed Declaration of Inactive Status in a newspaper of general circulation in the county or municipality in which the territory of the special district is located and sending a copy of such notice by certified mail to the registered agent or chair of the board, if any. The notice must include the following:
      • The name of the special district
      • The law under which it was organized and operating
      • A general description of the territory included in the special district
      • A statement that any objections must be filed pursuant to Chapter 120, Florida Statutes - Administrative Procedures Act within 21 days after the publication date
    • After 21 days have elapsed from the publication date of the Notice of Proposed Declaration of Inactive Status and no administrative appeals were filed, the county or municipality may dissolve the special district
Created by a County or Municipality by Referendum or Any Other Procedure
  • The merger or dissolution must be effectuated by the county or municipality that created the district pursuant to the same procedure by which the independent district was created.
Created by a County or Municipality and has Ad Valorem Taxation Powers
  • The merger or dissolution must be effectuated pursuant to the same procedure required to grant such ad valorem taxation powers.

Dissolving Dependent and Independent Through a Declaration of Inactive Status

The Special District Information Program may initiate the process of dissolving any special district by declaring the special district inactive if the special district meets one of the following criteria:

  1. The special district's registered agent or governing body chair, or the governing body of the appropriate county or municipality, notifies the Department of Community Affairs in writing that the special district has taken no action for two or more years.
  2. Following an inquiry from the Department of Community Affairs:
    • The special district's registered agent or governing body chair, or the appropriate county or municipality notifies the Department of Community Affairs in writing that the special district has not had a governing board or sufficient number of governing board members to constitute a quorum for two or more years or,
    • The special district's registered agent or governing body chair, or the appropriate county or municipality fails to respond to the Department of Community Affairs within 21 days
  3. The Department of Community Affairs determines that the special district failed to file any of the following reports with the appropriate county and/or municipality (see Section 2 - 1: Accountability Overview - Consequences of Failure to Comply):
  4. The Department of Community Affairs determines (see Section 2 - 1: Accountability Overview - Consequences of Failure to Comply) that the special district failed to file any of the following reports with the appropriate state agency, if required:
  5. The special district has not had a registered office and agent on file with the department for one or more years (effective October 1, 2011).

To declare a special district inactive, the Special District Information Program will do the following:

  • Publish a Notice of Proposed Declaration of Inactive Status in a newspaper of general circulation in the county or municipality in which the territory of the special district is located and sending a copy of such notice by certified mail to the registered agent or chair of the board, if any. The notice will include the following:
    • The name of the special district
    • Each known law under which it was organized and operating
    • A general description of the territory included in the special district
    • A statement that any objections must be filed pursuant to Chapter 120, Florida Statutes - Administrative Procedures Act, within 21 days after the publication date
  • After 21 days have elapsed from the publication date of the Notice of Proposed Declaration of Inactive Status and if no administrative appeals were filed, the Special District Information Program will send a notice of declaration of inactive status to the entity or entities that created the special district
  • If created by the Legislature, this declaration is sufficient notice, pursuant to Section 10 Article III (Special laws) of the State Constitution, to authorize the Legislature to dissolve the special district by repealing its enabling laws
  • If created by any other entity, that entity must dissolve the special district by repealing its enabling laws or by other appropriate means

When the Special District Information Program declares a special district to be inactive, its property or assets are subject to legal process for payment of any debts. The county or municipality may levy a tax or taxes on property in the inactive special district to pay its debt. The county property appraiser must assess the property, and the county tax collector must collect the tax. After the payment of all its debts, the remainder of its property or assets transfer to the county or municipality in which the special district is located.

Reviewing and Revising Rules - The Agency Rule Report

Chapter 120, Florida Statutes - Administrative Procedure Act, requires the following types of special districts with adopted rules, to perform a formal review of its rules every two years to ensure that they are correct and comply with statutory requirements:

The review consists of the following:

  • Rule deficiency identification and correction
  • Rule clarification and simplification
  • Deleting obsolete or unnecessary rules
  • Deleting rules that are covered in the Florida Statutes
  • When possible, identifying ways to improve efficiency, reduce paperwork, and decrease costs to government and the private sector
  • Contacting agencies that have concurrent or overlapping jurisdiction to find out if their rules can be coordinated to promote efficiency, reduce paperwork, or decrease costs to government and the private sector
  • Determining whether the rules should be continued without change or should be amended or repealed to reduce the impact on small business while meeting the stated objectives of the proposed rule

After the review, prepare an Agency Rule Report certifying that the above has been completed. Additionally, include the following:

  • Any changes the special district made to its rules because of the review
  • If appropriate, any recommended statutory changes that will promote efficiency, reduce paperwork, or decrease costs to government and the private sector
  • The economic impact of the rules on small business
  • Identify the types of cases or disputes in which the special district is involved that should be conducted under the summary hearing process described in Section 120.574, Florida Statutes - Summary hearing

By October 1 of every odd year, file a copy of the report with the following:

  • The President of the Senate
  • The Speaker of the House of Representatives
  • The Joint Administrative Procedures Committee
  • Each appropriate standing committee of the Legislature