Title: 1992 Annual Report
Full Citation
Permanent Link: http://ufdc.ufl.edu/WL00004502/00001
 Material Information
Title: 1992 Annual Report
Physical Description: Book
Language: English
Publisher: South Florida Water Management District
Spatial Coverage: North America -- United States of America -- Florida
Abstract: Jake Varn Collection - 1992 Annual Report (JDV Box 91)
General Note: Box 23, Folder 1 ( Miscellaneous Water Papers, Studies, Reports, Newsletters, Booklets, Annual Reports, etc. - 1973 -1992 ), Item 5
Funding: Digitized by the Legal Technology Institute in the Levin College of Law at the University of Florida.
 Record Information
Bibliographic ID: WL00004502
Volume ID: VID00001
Source Institution: Levin College of Law, University of Florida
Holding Location: Levin College of Law, University of Florida
Rights Management: All rights reserved by the source institution and holding location.

Full Text

SSouth Florida Water Management District
5301 Gun Club Road P.O. Box 24680 West Palm Beach. FL 33416-4680 (407) 686-8800 FL WATS 1-800-432-2045

M4Y 2 U 99
Carlton Fields Tallniassee
'"'oh D. Varn
Dear Floridian:

1992 proved to be a landmark year for the South Florida Water
Management District. Hurricane Andrew, though it occurred late in our
fiscal year, will inevitably shape all our impressions of that year. This
storm was a reminder of the awesome natural forces which helped shape
this state -- forces which we must be prepared to live with.

This past year also presented other equally complex challenges. Adverse
changes in Florida Bay added urgency to plans for restoration of the entire
Everglades ecosystem. Kissimmee River restoration progressed with
increasing momentum, and Lake Okeechobee water-quality improvement
programs are producing results.

Our 1992 Annual Report provides a good overview of the region's critical
water resource issues. I hope you will find it informative.

I am very proud of the role played by District employees during Hurricane
Andrew, and in the storm's aftermath. I am also pleased with the extent of
our accomplishments this year in systems restoration and in long-term
water resource planning.

Still, much remains to be done. We will continue working to meet the
challenges of water resource management and protection. Together, we
can preserve the best of this region for ourselves and for future


TilfarC. Creel
Executive Director


Governing Board
Valerie Boyd, Chairman William Hammond Eugene K. Pettis Tilford C. Creel. Executive Director
Frank Williamson, Jr., Vice Chairman Betsy Krant Nathaniel P. Reed Thomas K. MacVicar, Deputy Executive Director
Annie Betancourt Allan Milledge Leah G. Schad



uch of what we do at the South Florida Water Mar
agement District is based on understanding th
complex and often subtle aspects of how nature,
systems work, and finding ways to remedy dan
ages to those systems and restore them. Thi
I mindset underscores our role as "Protector of th
Everglades," but it also subtly obscures the fact that south Florida is
land shaped by natural extremes. For most of our recent history, th
most powerful and violent of these forces have been only a threat. Thi
year, that changed.
During the hours when Hurricane Andrew moved implacable
toward soulh Florida, and the even longer hours following landfall,
tried to envision the worst Hurricane Andrew might bring. Reality prove
to be beyond my imagining.
As soon as the skies were cleared for traffic, I joined District steal
on a helicopter flight to survey the damage from the storm. What w
saw defies description. Though television news programs broadcast
hours of pictures of the destruction wrought by Hurricane Andrew, the
could not convey the sheer horror, the spiritual devastation, of seeing
entire communities transformed into unrecognizable piles of debris
Hurricane Andrew leveled the works of man and the natural landscape
throughout 400 square miles of south Dade County.


But that initial reaction was quickly replaced by our resolve(
to do whatever we could to help those caught in this maelstrom
to assess the damage to our canals and structures, and to thi
community, and start to restore what had been lost. We con
tacted Governor Chiles as well as federal and local officials t(
ensure our efforts were coordinated, and set to work. You'll rea(
more about those efforts in Executive Director Til Creel's mes
sage, and in other parts of this report.
Hurricane Andrew re-emphasized the importance of o.
traditional role as a flood protection agency, but it also und
scored the importance of our ongoing efforts to preserve a.i
restore our natural systems,
Those systems evolved over millennia where storms like this
must have periodically moved through, tearing at tree islands r
nesting areas. Today, it is too soon to tell how the Everglades farif
Hurricane Andrew, or how well it will rebound. One of our greate
fears is that non-native invaders like the melaleuca will establish i
even stronger foothold in the Everglades as a result of the hurricane-
Just as the forces of nature shaped the south Florij
environment, so, too, has the hand of man. So, while we work-
recover from that storm, we cannot allow recovery to divert us fre
what has become our fundamental obligation-to sustain and protW
the complex, interconnected natural systems which support our wayl
life as well as that of the snail kite and the American crocodile, aqu_
life and upland species.



Today, finally, we as a society-on a large scale-are beginning
to realize the value of natural systems. We see that despite good inten-
tions, some species of plants and animals have vanished as a result of
changes made to natural systems. Other species stand at a precipice-
and we share that precarious perch-because we really don't know how
much more change the system can take and remain viable.
With more than five million people living and working in south
Florida, it is not realistic to imagine we can wholly restore the Kissim-
mee-Okeechobee-Everglades system. What we must do is establish a
less opportunistic, more symbiotic relationship with the environment in
which we live.
Toward that end, we are working to clean up and restore the rem-
nants of natural Florida-to make sure future generations can catch
bass in Lake Okeechobee; net shrimp in coastal waters; glimpse river
otters frolicking in the Kissimmee; or swim in the clear, clean waters
preserved by our commitment to treat the world around us with care
and respect.
We have made remarkable progress this year in clean-up and
restoration programs throughout the state. Soon, the detailed engineer-
ing and planning work to restore a large stretch of the Kissimmee River
and its floodplain ecosystem will begin. Lake Okeechobee clean-up is
ongoing, and we are making operational changes in the lake's level

which more closely match natural regimes. Everglades restoration is
on schedule even though legal challenges grab the headlines. And we've
expanded our focus on Everglades ecosystems to encompass the
Florida Keys and Florida Bay, because these systems are inextricably
tied to the greater Everglades.
The importance of what we are trying to do was reinforced late in
1992, when Florida was awarded the President's 1992 Environmental
and Conservation Challenge Award for the "Save Our Everglades" pro-
gram. In accepting the award from President George Bush, Governor
Lawton Chiles noted that the Everglades are not yet saved, that ours is
an ongoing task and that dedicated support from the federal govern-
ment as well as the citizens of south Florida is needed to truly save the
"River of Grass."
Much remains to be done. Sometimes success seems to loom
far in the distance, while obstacles appear daily. Those are the times I
most miss the wisdom, patience and wit we lost this year with the deaths
of two of this state's most effective water resource leaders. Bill Sadowski,
Secretary of the Department of Community Affairs and a former state
legislator and District Governing Board Chairman died in a plane crash
in April. In May, we lost Timer Powers, a man who dedicated much of
his life to this District, as a Governing Board member, and as an Assis-
tant Executive Director, and Interim Executive Director. But as we mourn
the loss of these two fine men, we are also strengthened by their legacy.
Our finest tribute to them will be to rededicate ourselves to protecting
and preserving the Florida they loved.

Hurricane Andrew leveled the
works of man and the natural
landscape throughout 400 square
miles of south Dade County.

Just as the forces of nature shaped
the south Florida environment, so,
too, has the hand of man. So,
while we work to recover from that
storm, we cannot allow recovery to
divert us from what has become our
fundamental obligation-to sustain
and protect the complex, intercon-
nected natural systems which
support our way of life as well as
that of the snail kite and the
American crocodile; aquatic life and
upland species.

The importance of what we are
trying to do was reinforced late in
1992, when Florida was awarded

the President's 1992 Environmen-
tal and Conservation Challenge
Award for the "Save Our Ever-
glades" program. In accepting the
award from President George Bush,
Governor Lawton Chiles noted that
the Everglades are not yet saved,
that ours is an ongoing task and
that dedicated support from the
federal government as well as the
citizens of south Florida is needed to
truly save the "River of Grass."


his was my first year as Executive Director, and
has been a year I will never forget. Hurricane Ar
drew left an indelible mark on 1992. When th;
storm struck south Florida in August, it change
the way many of us think about Florida, our home
and our safety.
Though Hurricane Andrew was a powerful and destructive force
damage to the region as a whole was considerably less than might hav
been because this storm was unusually compact and fast-moving. Th
electronic telemetry network which allows us to operate gates and mon
torwater levels in many canals from ourcontrol room in West Palm Beac
functioned smoothly throughout the storm, and kept us in touch wit
changing conditions moment by moment.
But the most impressive aspect of the District's response to thi
emergency is embodied in the courage and dedication of District people-
men and women who braved the fury and the threat of this storm to ensun
the safety of others. Before the hurricane made landfall, while it tore e
anything standing in its path; and afterthe storm passed, District people
worked first to minimize damage; and then turned to see what they couli
do to help others hard hit by the disaster.
In the first crucial hours and days following the storm, the Distric
helped to ensure that medical and other emergency personnel and equil


But the most impressive aspect of the
District's response to this emergency
is embodied in the courage and
dedication of District people-men
and women who braved the fury and
the threat of this storm to ensure the
safety of others. Before the hurricane
made landfall, while it tore at
anything standing in its path, and
after the storm passed, District people
worked first to minimize damage; and
then turned to see what they could do
to help others hard hit by the disaster.

ment reached the people of south Dade County. With more than a montt
remaining in the hurricane and rainy season, District crews began t(
survey, and to repair damages to the infrastructure that provides flooc
control and water supply protection to the entire region. They werejoinec
by volunteers from other water management districts in the herculear
task of clearing literal mountains of fallen trees and wind blown debri,
(including cars, trailers, animals, roof tiles) deposited in and around ou
canals, and repairing damaged water control structures.
We learned that the roughest part of a hurricane is the aftermath
That lesson will be reinforced for months, as we continue to work to cleal
the debris left by Hurricane Andrew, and rebuild the battered communi.
ties the storm left behind. The District's expenditures for tree-clearin(
alone are likely to be more than $3.5 million! Hurricane Andrew has beer
one of the costliest, natural disasters in this nation, with total damages
estimated at $20 billion, or more. Twenty-two of our own employees los
their homes and possessions, joining the ranks of the 250,000 left with
out homes after Hurricane Andrew passed through south Dade County
One of the most important lessons learned was how unprepared
we were to cope with the human devastation resulting from an event o
this size. I am representing the District on the technical advisory commit
tee of Governor Chiles' Disaster Planning and Response Review Com
mittee, a task force organized to examine and learn from our success,
and our mistakes, so we all can be more prepared, responsive and effec
tive when the next hurricane hits. That committee report will be sent to thE
governor in January 1993.


The District also accomplished a great deal in the months before
ane Andrew demanded so much of our attention. Local
after management gained increasing importance on the heels of
in October 1991 and June 1992 which brought much more rain
hes in some areas) and subsequent flood problems in pans of
rd and Dade County and the Lower West Coast. Our participa-
udies of these two malor slorm events is helping to clarfy the
secondary storm and sewer systems, how those
Interact, and how we can work together with local governments
rove those systems.
On the other side of the water resource equation, we accepted
rict Water Supply Policy document which serves as Ihe basis
velopment of detailed regional and county waler supply plans.
Sin designing these plans, the District has established five
P tanning Advisory Committees. These regional and
ppIy plans will identify alternatives for curbing demand
he advisory groups are helping to inform and expand Ihe
uppy planning process, and strengthening the District's part-
ips with local government. The planned expansion of Regional
e Centers in Miami, Fort Myers, Okeechobee and Kissimmee.
ill also reinforce our local partnerships.

importantt planning process currently under way is the
Along with the state's other water management districts
ofEnvironmental Regulation. of a State Water Man-
ftn. Draft plans for each district were completed this year.
ipan is scheduled for adoption in 1994. This process is
ay that depends upon strong working relationships. As an
ber of the Water Resources Coordination Commission, we
ng closely with the Lieutenant Governor, the Secretary of DER,
other Governing Board chairmen and Executive Directors to
Strong team dedicated to effective, efficient water resource
tion.We are also working to build cooperative working relalion-
with federal agencies, because so much of whal this slate and
trict is trying to accomplish in systems restoration depends on
When I began the year, one of my highest priorities was to have
embers of my "executive team" in place as quickly as possible, to
the leading agent of change in a reorganization to systematically
e accountability. The Assistant Executive Directors for Waler
e Management, Government and Public Affairs, Public Works,
ment Services and the Office of Counsel were selected and in
time to be immersed in the preparation, clean-up and recovery
Andrew, and to see the District and its people at our best
the.working relationships we forge, internally and with others,
in ourefforts to serve people while also protecting our pre-
esources and irreplaceable ecosystems.
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The South Florida Water Management District is one of five re-
gional agencies in Florida whose responsibilities are the result of more
than 40 years of evolution in the practice and philosophy of managing
water and related natural resources. The agency, and the 1,400 miles
of canals, levees and water control structures stretching from the
Kissimmee River basin to the Florida Keys which the agency manages
and operates-made today's Florida possible.
The massive infrastructure was constructed by the U. S. Army
Corps of Engineers in response to a series of crises: "killer" hurricanes
in the 1920s and 1940s which swept floodwater through early commu-
nities, interspersed with multi-year droughts which left coastal wellfields
contaminated with salt water. This agency's precursor, the Central and
Southern Florida Flood Control District, was established to manage this
plumbing system. This agency's evolution from 1949 to the present
was fueled by continually escalating growth and development, leading
to new crises, which generated new concerns and values regarding
natural Florida.
Science and a better understanding of how natural systems work
provided the impetus for changes in the practice and philosophy of wa-
ter resource management-but those changes have been difficult to
implement without societal and political support. The tide in resource
protection in Florida began to turn in the early 1970s, with the passage

The tide in resource protection in
Florida began to turn in the early
1970s, with the passage of the Water
Resources Act, and has accelerated
year by year. Many of the programs
the public today accepts with
enthusiasm-like Save Our Rivers or
Preservation 2000, which call for
spending hundreds of millions of tax
dollars to acquire lands once scorned
as swamps or bogs-would have been
inconceivable 30 or 40 years ago.

As we move into the 21st century,
water resource management is driven
by the need to, as far as possible,
protect functioning natural systems,

restore degraded systems and
integrate urban and agricultural
landscapes into their surrounding
natural environments.

This is an enormous task. The
Everglades system is a vast, intercon-
nected and interrelated patchwork of
diverse systems. Many of the
problems we face today are the
unintended result of limited foresight
or incomplete understanding of the
connections within and throughout
ecosystems, and the connections
between man and the environment.


of the Water Resources Act, and has accelerated year by year. Many
of the programs the public today accepts with enthusiasm-like Save
Our Rivers or Preservation 2000, which call for spending hundreds of
millions of tax dollars to acquire lands once scorned as swamps or bogs-
would have been inconceivable 30 or 40 years ago.
As we move into the 21st century, water resource management '
is driven by the need to, as far as possible, protect functioning natural
systems, restore degraded systems and integrate urban and agricul-
tural landscapes into their surrounding natural environments. Modern
water management means discovering, and then closely replicating the _
patterns of natural ecosystems, to lessen the adverse impacts of hu-
man development.
This is an enormous task. The Everglades system is a vast, inter-
connected and interrelated patchwork of diverse systems. Many of the
problems we face today are the unintended result of limited foresight or
incomplete understanding of the connections within and throughout eco-
systems, and the connections between man and the environment.
To ensure the water resources of this system are effectively man-
aged and protected, the District is developing a strategic planning pro-
cess to clearly identify priorities and interrelationships within the
ever-expanding realm of its responsibilities. The broad, general areas
covered by that plan include stormwater management, water supply plan-
ning and natural systems restoration. Because these categories also
reflect the major events and achievements of this eventful year, this
annual report is organized around those three categories.



Since the mid 1980s, the District has
been working to fortify its response to
hurricanes and other tropical storms
which threaten our shores each year.
These storms can dump from several
inches to a foot or more of water on the
region over a day or two, causing
extensive flooding.

Throughout the region, coastal
structures and pump stations have
been repowered, repaired or re-
placed-to ensure the 1,400-mile
water control network functioned
efficiently and effectively.

Stormwater management is a relatively new term, a term which
can be defined as flood control plus the protection of water quality an
environmental values. In densely developed south Florida, flooding
more problematic than it may once have been, because more people
are settling in more flood-prone areas.
Historically, hurricanes represented the ultimate stormwater mar
agement challenge. "Killer" hurricanes in the 1940s gave birth to mo(
ern water management. While hurricanes seem to have avoided soul
Florida for the past 20 or 30 years, few expected that luck to hold. Sine
the mid 1980s, the District has been working to fortify its response t
hurricanes and other tropical storms which threaten our shores eac
year. These storms can dump from several inches to a foot or more <
water on the region over a day or two, causing extensive flooding.
Throughout the region, coastal structures and pump stations hav
been repowered, repaired or replaced-to ensure the 1,400-mile wE
ter control network functioned efficiently and effectively. The Distric
also invested in a regionwide telemetry system which gives it the abi
ity to monitor and control water levels throughout south Florida from
control room in West Palm Beach. To complement that system, th
District has assembled a team of meteorologists armed with first-rat
weather forecasting equipment, and developed policies and procedure
to make sure staff would be prepared for the powerful storms of Florida
hurricane season.
On August 19, 1992, the District watched as a tropical storm i
the east Atlantic began to develop. Over the next two days, it appeared
the storm would not severely threaten Florida. Then, during the Augu!
22-23 weekend, Hurricane Andrew rapidly intensified. Coastal cana


throughout southeastern Florida were lowered in anticipation of flood-
ing from heavy rains and storm surges.
On Sunday, August 23, full emergency procedures went into ef-
fect. Emergency staff went on 24-hour duty at field stations and agency
headquarters. Operations and meteorologic staff manned the control
room, readying the system for a major storm. Administrative, commu-
nications and public affairs staff were called to duty at the headquarters
to assist in operations and maintain communications with the public and
other government agencies mobilizing for the hurricane. Other District
employees were stationed at state and county emergency facilities to
act as liaison to the District. Gates at coastal structures were locked
open, and generators shut down-to make sure discharges could be
made regardless of power outages.

Hurricane Andrew Strikes
By that evening, there was little doubt that Hurricane Andrew
would make landfall somewhere in south Florida, and be a Category 3
or 4 storm, packing winds over 140 miles per hour. Evacuation was
ordered for much of coastal Florida, and evacuees fled inland and north-
ward. As the evening wore on, and Hurricane Andrew approached on
an almost unflinching westerly course, landfall predictions were nar-
rowed, to somewhere in south Dade County. Based on that prediction,
District staff at the Homestead Field Station were evacuated to a pump
station miles inland, close to Everglades National Park.
In the early morning hours of Monday, August 24, Hurricane An-
drew came ashore, in south Dade County near Homestead. The Na-
tional Hurricane Center was one of Hurricane Andrew's first victims, its
instruments damaged when Andrew passed almost immediately over-
head. From its headquarters almost 75 miles north of landfall, the Dis-
trict was able to track Hurricane Andrew's passage and made the earliest
and most accurate reports of the hurricane's storm surge. That infor-
mation was passed along to the National Weather Service.
Hurricane Andrew was a Category 4 storm, with sustained winds
of 170 m.p.h., and gusts reported to be as high as 180-200 m.p.h. It
moved quickly over the peninsula, passing into the Gulf of Mexico within
hours of landfall. Often, much of the damage from a hurricane is the
result of flooding, from the initial storm surge at landfall to the rains
carried by the storm. But Hurricane Andrew, a fast, dry storm, dropped
S very little rain, from four to six inches in most areas. As a result, flood-
ing was not a problem. However, the storm surge reached 17 feet in
parts of Biscayne Bay, and damaged coastal structures.

Assessing the Damage
Within hours of the storm's landfall, District staff were able
to fly reconnaissance. District aircraft had been flown out of the
region prior to the storm, which proved invaluable to recovery ef-
forts, as many other emergency aircraft in the Dade County area
were destroyed in the storm.
What was witnessed in those first few hours was a 400-square
mile swath of destruction. Much of the damage done by Hurricane An-
drew was the result of the storm's high winds, winds which acted like
a 25 to 30-mile wide tornado. Hundreds of miles of canals were clogged
with wind-borne debris. Trees snapped like matchsticks, and were blown

into canals along with debris ripped from homes and farms throughout
south Dade County. Some canals were so clogged with this debris they were
virtually incapable of conveying water flows.
The Homestead Field Station, which had been evacuated before the
storm hit, was also damaged, but fared better than the inland pump station
where employees had been moved. At Pump Station 331, evacuated em-
ployees and pump station personnel found themselves trapped in a building
while the storm's gusts tore away a utility door and skylights. No one was
seriously injured, but many left the building after the storm had passed and
found whole neighborhoods leveled. Twenty-two District employees lost their
homes in Hurricane Andrew, joining an estimated quarter of a million people
displaced by this storm.



SRecovery Begins
Five District coastal structures were also damaged in the storrr
one of these virtually leveled by the 17-foot storm surge in Biscayni
Bay. Repairs to those structures and efforts to clear canals began im
mediately, because they are critical to the District's ability to provide
flood control and protect fresh water supplies in Dade County, an'
more than two months of the hurricane season remained. By the enl
of September. the District had spent more than $2 million just to clea
canals. Beyond the estimated $20 billion in damage to urban and agri
cultural development, Hurricane Andrew also left its mark on Everglade:
National Park and Biscayne National ParK, stripping mangroves an'
tree islands and crushing park facilities with equal impunity. It is tol
soon to gauge damage to these natural systems, but the District is as
sisting the parks in monitoring the hurricane's impact.
The District also made staff and equipment available to Dadi
County and other recovery efforts. Medical personnel and supplies wen
shuttled into Dade County in District helicopters. The District also helped
coordinate the collection and distribution of food, water and clothing
from nationwide donations at the Florida Relief Center at the Soutl
Florida Fairgrounds, and worked with the Special Needs Unit; provide'
aenal tours for state and federal officials: supplied mapping assislanci
with its Geographic Information System (GIS): posted health warning
about contaminated waters and organized publicity about the need fc
conservation in overburdened service areas.
Work to clear District waterways as far north as Palm Bead
County is likely to continue for months, and cost at least an additional
$1 million. Waterways least affected by the storm were those when
clear District rights-of-way have not been encroached upon with land
scaping, invasive vegetation or structures. So, in addition to clean-up
the District is working to ensure that fragile, unsuitable trees and olhe
vegetation are kept out of canal rights-of-way. Most system repair
were completed by the end of September. Within that period, severs
heavy rains were recorded in the Dade County area. but flooding wa
largely limited to local areas not served directly by the District's flooi
control system.

ilimproving Slornnwiter Managemenl
Though they pale in comparison to Hurricane Andrew, other heavy
storms this year had already underscored the critical importance of flool
control and stormwater management in the region. Storms in Octobe
1991 and June 1992 brought far more rain to Dade and Broward Counts
and the Lower West Coast, up to 20 inches in some areas, causing!
flooding, and some sewage system failures. The District is working!
with local governments to find ways to improve the secondary drainage
systems and sewage stormwater interface which were the root causi
of most of these problems. At the same time, the District will continue
to look at ways to enhance its interaction with secondary systems, an'
improve the primary system. The U.S. Army Corps of Engineers ani
the U.S. Environmental Protection Agency are both currently involve'
in studies to determine how the system currently operated by the Dis
trict can be improved, to better serve flood control and freshwater store
age needs while also preserving the ecosystems of thi
Kissimmee-Okeechobee-Everglades system.

ustas surely as hurricanes and floods have helped
shape south Florida, so has drought. In this land
of extremes, drought has been part of the natural
cycle. Drought paved the way for cleansing fires,
and a renewed cycle of birth, death and rebirth in
the Everglades. But extreme droughts in the 1930s
and 1940s caused saltwater intrusion in coastal wellfields, and added
water supply protection to the list of water managers' responsibilities.
The success of the man-made water control system constructed atop the
Everglades can be measured in the millions who made south Florida their
home over the past 50 years.
By the 1960s and 1970s, people began to see design deficiencies
in the watercontrol system-evidenced by wildlife and ecosystem losses.
From the 1970s through the early 1980s, the District and other agencies
began to tailor strategies to more closely replicate natural patterns. Those
strategies acknowledged natural systems' needs for water.
But even as these strategies were being refined, more people
poured into the region, further straining the natural and the man-made
systems' ability to meet increasing demands while preserving finite sup-
plies. Only two years ago, region-wide water supplies were so depleted
from a multi-year drought that water restrictions throughout the District

From the 1970s through the early
1980s, the District and other agencies
began to tailor strategies to more
closely replicate natural patterns.
Those strategies acknowledged natural
systems' needs for water.

But even as these strategies were
being refined, more people poured into
the region, further straining the
natural and the man-made systems'
ability to meet increasing demands
while preserving finite supplies.

This population explosion, though
tempered in recent years by a
nationwide recession, is also
making increasing demands on the
region's water resources, and the
water management system which
has transformed much of south
Florida. That system was
originally designed to discharge
rather than conserve surplus water
from rainfall.

became commonplace.


This year, there are even more people in southeast Florida-
approximately five and a half million year-round residents. This
population explosion, though tempered in recent years by a na-
tionwide recession, is also making increasing demands on the
region's water resources, and the water management system which
has transformed much of south Florida. That system was origi-
nally designed to discharge rather than conserve surplus water
from rainfall. II '
The accelerating demand and the design deficiencies of the
existing drainage system together mean that despite the most care- ":
ful management, less water is available to natural systems than ever
before. We know that the region's freshwater resources are finite,
and are in fact diminished as a result of pollution and overuse.

Promoting Conservation
Those limits are the reason why water conservation is es-
sential despite the fact that this is a region where 50 to 60 inches
of rain falls each year. Modern water resource management must
also acknowledge the interdependence of water supply and wa-
ter quality and environmental systems' viability. Today we know
that no part of the natural Everglades system can be treated as
independent of the whole. By extension, individuals and commu-
nities must also realize they are a part of this system, and are as
dependent upon it as the wildlife inhabiting the most pristine parts
of that system.


That is why education is such an important part of any pro-
gram to conserve, preserve or restore natural Florida and its re-
sources. Education is an important vehicle for "reaching out" to the
public to adults as well as children to each and every citizen
rather than just students.
This year, the District was joined by the St. Johns River and
Southwest Florida Water Management Districts in sponsoring a
statewide mass-media conservation campaign which urges residents
to conserve and use water wisely, to "Turn It Off!"
The campaign, originated by the District in 1990, features pub-
lic service spots which urge residents to use appropriate, irrigation
efficient landscaping (XeriscapeTM), and offers tips on other ways
to save water. Educational brochures and how-to guides, an infor-
mational video on how to Xeriscape a typical Florida yard, and a
new quarterly newsletter, "The Turn It Off! Times," were all produced
to support this educational initiative.
A post-campaign survey conducted by the Florida Atlantic Uni-
versity Research Laboratory showed that 88% of those responding
were making a special effort to conserve water. Most Floridians
learned more than the catch phrase "Turn It Off!" Respondents cited
waste and overuse as the key problems in water supply. More than
75% were aware of the daytime irrigation ban called for by the
District and adopted by many counties.

Creating Partnerships
SThe District is also working with local governments to encour-
age their adoption of other conservation measures. The District's Six
Point Conservation Policy targets local governments throughout the
16 counties within its boundaries. That policy encourages the adoption
of local Xeriscape ordinances, leak detection programs to reduce waste,
ordinances which encourage the residential and business use of low-
volume plumbing, water ratings structures which encourage and re-
ward conservation and reduced use, and comprehensive public
education programs in addition to daytime bans on irrigation.
In olher programs, the District offers technical assistance to cit-
ies and counties in implementing rain switch ordinances and water re-
use systems, and is supporting a statewide Compost Utilization Project.
The Districl is also a sponsoring member of the state's Xeriscape/Wa-
ter Wise Council Steering Committee, formed to help implement the
stale's Xeriscape Law, passed in 1991.
in conservation partnerships formed this year, the District as-
sisted Dade, Broward, Palm Beach and Lee counties in developing
daytime irrigation ordinances, and is urging other counties to adopt a
daytime ban.
The District also worked with Lee County on a residential irriga-
iion relroil, where outmoded or wasteful irrigation systems were re-
placed or made more efficient. The District worked with Miami Dade
Community College in developing a Xeriscape curriculum; and estab-
lished mobile irrigations labs which offered conservation and irrigation
expertise to residents and businesses throughout the lower east and
west coasts.
While water conservation education has been an ongoing Dis-
Irinc ellon this year marked the beginning of one of the most im-


portant initiatives undertaken by the District-the development c
long-term blueprints for water supply planning and development
These comprehensive planning efforts will ensure both the environ
mental and the economic stability of south Florida.

Allocating Supply
This year the Governing Board accepted a Water Suppl
Policy Document that will help guide and inform more detailed plar
ning efforts. The District's Water Supply Policy requires the cor
servation and re-use of precious fresh water resources, and th
use of alternate sources, while discouraging wasteful uses. Mos
importantly, the policy requires that the needs of environmentE
systems take precedence over the demands of other users, an
plays an important role in defining how the District will allocat
existing supplies.
The District's water supply planning process is intended t
guarantee the maximum reasonable and beneficial use of water b
linking the public's and the environment's long-term water needs
That linkage is essential if we are to resolve the historic though
unnecessary conflicts between people and the environment. Spe
cifically targeted Water Supply Plans are being developed wit
affected communities and regions to ensure their specific needs ar
This year, five Water Supply Planning Advisory Committee
were formed between January and May 1992 including the Lowe
West Coast and the Lower East Coast Regional Advisory Commi
tees; and Advisory Committees for Palm Beach County, Browar
County and Dade County / Florida Keys.
Each advisory group has members representing local go\
ernments, as well as utilities, agricultural, environmental, commit
nity and business groups. District Governing Board member
serve as chairpersons or members of these advisory group,
working to build a consensus within each group to identify loc;
and regional water needs and resources, and equitably allocat
those resources.
While the work of the committees has only recently begur
there has been considerable progress in charting the future of watE
supply in south Florida. In addition to Water Supply Plannin
Advisory Committees, two other District groups, the Northwest Dad
Freshwater Lake Study Committee and the Agricultural Advisor
Committee will be active in water resource planning initiatives.
This year, initial agreements on a Broward County WatE
Supply Plan were reached between the District and Browar
County. The District is contributing $1.9 million under that agree
ment to conduct targeted studies of stormwater management, sal
water intrusion, waste water re-use and wetlands mapping
Working documents for the Lower East Coast Regional Watt
Supply Plan and the Dade County/Florida Keys Water Supply Pla
were also completed this year, and drafts for the Palm Beac
County, Upper East Coast and Broward County Water Supply Plar
should be completed in the coming year. Water Supply Plan A(
visory Committees for the Upper East Coast and the Kissimme
Basin will also be formed in the coming year.

~ ____

The Big Picture
Water supply planning is only one component of a more compre-
hensive planning effort under way throughout Florida. The District and
the state's four other water management districts and DER are drafting
District Water Management Plans. These plans will become part ol an
overall State Water Management Plan.
The District's Water Management Plan (DWMP) represents a
major step toward comprehensive water management planning, because
it incorporates all aspects of water resource management including flood
control, water quality (surface and ground water) and natural systems
management. Specific issues addressed in the DWMPs will include
mapping of needs and sources, protecting sources, agricultural and
urban water use and allocations, wastewater re-use, ground and sur-
face water availability and management; wellfieid protection, and other
mapping and modeling initiatives. The first draft of this document should
becorpletedtby November 1992. The final DWMPs should be adopted
by October 1994.
STakfe together, these efforts represent an evolution and matu-
tity in wa management, a systems-wide comprehensive examina-
tion of the lasues which govern the management of water and related
i mou',rce,, and wi result in a master plan which will provide the region
wiu3iiea iaedevelopment"-human growthwhich is compatible with
natural systems.

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before the extensive network of canals and wa-
ter control structures was built by the U.S.
Army Corps of Engineers in the 1950s and
1960s, the movement of water in south Florida
was subject to rainfall and geography and
the fluctuations of wet and dry seasons.
The land's surface elevation is essentially flat, dotted with
the lakes and rivers, and the wetlands, lowlands and floodplains
that characterize this region. In its natural state, and even today,
water on the land's surface gradually percolates through the sur-
face layers of the land, into aquifers, this region's primary fresh-
water storage area. Water which didn't seep into ground water
flows over the land's surface, south and eastward, into the tidal
lagoons, bays and estuaries of the Atlantic. Some water contin-
ued southward, all the way to the end of the peninsula, to Florida
Bay or the Keys.
This is the system which has been drained, diked and channelized
to accommodate people. Today, we are trying to reverse many of
the changes which have led to diminished and less diverse habitat
and wildlife, while continuing to serve the needs of people living in
the cities and farms which define the economic and sociologic back-
bone of the south Florida community.

In its natural state, and even
today, water on the land's surface
gradually percolates through the
surface layers of the land, into
aquifers, this region's primary
freshwater storage area. Water
which didn't seep into ground water
flows over the land's surface, south
and eastward, into the tidal
lagoons, bays and estuaries of the
Atlantic. Some water continued
southward, all the way to the end
of the peninsula, to Florida Bay or
the Keys.

This is the system which has been
drained, diked and channelized to

As a result of channelizing the
Kissimmee, approximately 35,000
acres of wetlands disappeared, and
other riverine habitats were
radically altered. The changed
waterway brought declines in water
fowl populations of 90%, and a
reduction in M;r. ,- throughout
the river valley.

Initiatives to restore the river have
been under way since 1972, and
have culminated within the last few


Kissimmee River Restoration
The Kissimmee River exemplifies the kinds of changes which have
been made to the greater Everglades system. Between 1961 and 1971,
the 103-mile long, shallow and meandering river was channelizedd,"
primarily in response to the outcries of area residents severely flooded
in the late 1940s. The state asked the U. S. Army Corps of Engineers
(COE) to solve this flooding problem, and it did. The Kissimmee be-
came C-38-a wider, deeper, straighter canal waterway, shortened by
almost half, to 56 miles.
As a result of channelizing the Kissimmee, approximately 35,000
acres of wetlands disappeared, and other riverine habitats were radi-
cally altered. The changed waterway brought declines in water fowl popu-
lations of 90%, and a reduction in fisheries throughout the river valley.
Initiatives to restore the river have been under way since 1972,
and have culminated within the last few years. In 1984, the District
began to design and build a demonstration project on 12 miles of
C-38, to find out if this riverine system could be restored. That project,
along with detailed computer and physical modeling studies conducted
over ten years, proved the river could be restored.
A review of restoration alternatives was a part of these exhaus-
tive studies, and led to the recommendation of the Level II Backfilling
Plan as the best alternative to restore ecosystem integrity to the river
and surrounding floodplain. Then, the U.S. Congress directed the
COE to review and complete a feasibility report by April 1992 of the
state's plan, which calls for backfilling the canal to restore flows to river

accommodate people. Today, we
are trying to reverse many of the
changes which have led to dimin-
ished and less diverse habitat and
I ,l.illh ,, while continuing to serve
the needs of people living in the
cities and farms which define the
economic and sociologic backbone of
the south Florida community.



channels and tloodplains. This massive project also requires land ac-
quisition and management changes in some of the Upper Chain of
Lakes, to ensure sufficient downstream flows.
During March and April 1992. the COE completed its review
ol Ihe District's Alternalive Plan Evalualion & Preliminary Design
Report, and endorsed the District's recommendation of the Level II
Backfilling Plan, with modifications in the scope of the project. The
changes made to the plan by the District reduced the project's cost
by $147 million, while retaining 80% of the environmental benefits.
By eliminating the southermost seven miles of planned backfilling
and not buying or flooding homes south of U.S. Highway 98, these
changes lessened the project's impact on area homeowners and dair-
ies. The project will be a state/federal partnership, with a federal
funding commitment of $186 million, 50% of the project's cost. The
revised plan will restore 50 square miles of river tloodplain, 56 miles
of contiguous river channel and 29,000 acres of wetlands-providing
habitat for more than 320 different species, including three endan-
gered species: the bald eagle, wood stork and snail kite. Restoration
will be implemented in four phases, over 15 years.
The Kissimmee River Restoration plan has two components, res-
toration of the Headwaters or Upper Basin, and restoration work in the
Lower Basin. Upper Basin restoration is expected to cost $92 million,
with most costs associated with land acquisition around the Upper
Chain of Lakes to provide approximately 1.5 feet of additional water
i storage. The majority of the $280 million cost for Lower Basin resto-
ration is associated with design and construction costs as well as land
acquisition. Both phases also include funds for research and monitor-
ing programs to track and safeguard the environmental systems' res-
toration success. Estimated total cost of the project is $372 million.
The District has already acquired more than 27,000 acres in
the Kissimmee basin, but more than 37,000 additional acres must
still be acquired from private owners. Meanwhile, the District is working
with the COE on preconstruction engineering and design. The first
major milestone will be a 1,000 linear foot test-fill in the C-38 canal,
scheduled for construction in September 1993.
The project was authorized by Congress in October 1992 as
part of the Water Resources Act, with $8 million budgeted for 1993
Kissimmee Restoration, marking a total of $25.3 million in federal
appropriations dedicated to the project to date. This authorization rep-
resents a strong federal commitment to this project, a project which
may well be one of the world's most ambitious environmental res-
toration efforts.

Lake Okeechobee
Lake Okeechobee lies at the center of Florida's man-made, as
well as its natural water system. Given that position, it's not surprising
that the big lake has also been at the center of controversy and conflict.
Perhaps more than any other body of water in the region, Lake Okee-
chobee must be all things to all people.
This 730-square-mile lake is the second largest freshwater lake
located wholly within the nation's borders. It is the only sizable surface
water storage area in the south Florida region. Even though the lake
is rather shallow, averaging about nine feet deep, it can potentially hold

more than one trillion gallons of water! That storage capacity is used to
supply water to lakeside communities, to agriculture for irrigation, and
to supplement and protect coastal supplies in times of drought.
The lake's capacity to hold water has also made it the recep-
tacle for floodwater from surrounding farm fields and rural communi-
ties. Since the 1970s, Lake Okeechobee has suffered from the changes
which made it a better storage vehicle. Water quality problems resulted
when water flows were diverted from historic paths. Attempts to re-
verse changes in the lake's ecosystem began in the 1970s, and gained
great impetus in the 1980s. In 1985, the Lake Okeechobee Technical
Advisory Committee (LOTAC), made initial recommendations to reduce
phosphorus, a nutrient tied to algal blooms and other signs of ecologic
decline in the lake.
LOTAC II was created as a result of Florida's 1987 Surface Wa-
ter Improvement and Management (SWIM) Act. This group recom-
mended speeding up improvements to agricultural practices. LOTAC
II also directed the District and the state to evaluate other phosphorus
reduction strategies, including aquifer storage and recovery (ASR),
chemical treatment, diversion, aquatic plant removal and reducing phos-
phorus in cow feed and pasture fertilizer.
The District's 1989 Lake Okeechobee SWIM Plan captured
and refined many of LOTAC's and other groups' recommendations
to reduce phosphorus loading to the lake by 40%, by July 1992.
A performance-based regulatory program with an emphasis
on dairies and other land-uses north of the lake is the foremost
component of that plan.

Since adoption of the SWIM Plan, a great deal of progress has
been made. Sizable reductions have been made in the overall load o'
phosphorus from lands north of the lake. In a program sponsored bj
the Florida Department of Agriculture and Consumer Services (DACS'
and the District, 19 of 49 dairies in the basin closed or relocated theii
operations, and one-third of the area's 45,000 dairy cows have alsc
left the region. The remaining dairies are implementing best manage
ment practices (BMPs) required by the DER Dairy Rule.
The District contributed $3.8 million toward the design and con
struction of dairy BMPs in the Kissimmee valley. Typical dairy BMP,
include the storage and containment of cattle waste and wastewater ir
settling ponds or irrigation systems to prevent phosphorus from en
tering waterways leading to Lake Okeechobee. Many dairies now chan
nel their wastewater into specially constructed lagoons filled witt
vegetation to remove phosphorus, and confine dairy operations witt
barns, fences and other structures which shelter and control the herds
movement, keeping livestock away from waterways. Dairy operation!
are also reducing the amount of fertilizer used on pastures, and reduc
ing phosphorus in dairy feed.
BMPs have also had a definite impact on dairies and the region'!
overall economy. The relocation of one-third of the area's dairies ha&
meant an economic decline for the Okeechobee region, since much o
the region's economic activity is associated with agriculture. The stron
gest and the most adaptable dairies have survived, and are doing well
because BMPs are as much about operational efficiency and cost effect
tiveness as they are about environmental protection. At the Larsol



: -'' '-"'i.:.~,.

~-- ;

Dairy, for example, measures to increase labor efficiency and milk pro-
duction were instituted in concert with BMPs, improving the overall pro-
The success of the dairies was highlighted this year when the
District cosponsored the Tenth National Rural Clean Water Program
(RCWP) Symposium in Orlando. The District hostedthis important event
with the U.S. Environmental Protection Agency and the U.S. Department
of Agriculture to encourage and assist farmers nationwide in adopting
cost-effective and efficient water and soil conservation practices
Though dairy operations dominate the Kissimmee valley, other
land uses also contribute phosphorus. Most of the permitting for these
kinds of uses has been completed. The remainder will involve identifying
owners ol parcels with urban stormwater systems in Highlands and Okee-
chobee counties. More than 98%; of the ranches and other non-dairy
operations in this region have obtained permits under the "Works of Ihe
District Rule," which requires phosphorus reduction strategies like deten-
tion and retention areas, limiting fertilizer use and instituting wastewater
A three-year study of in-lake phosphorus dynamics, with comple-
tion scheduled for spring 1993, will answer questions about the chem-
istry and interactions of phosphorus and sediments within the lake. A
five-year Lake Ecosystem Study. in its final year in 1993, is examining
the impact of lake level changes, nutrient loads, aquatic plants and other
factors on the lake's overall ecosystem.
A revised lake level regulation schedule was recommended
This year, and will be evaluated over the next two years by the COE.
Studies have shown that steady high water levels have caused habi-
tat loss within the lake's littoral zone, which functions as a nursery
for fish and feeding ground for birds. Consistently high waters can
also prevent renewed plant growth. But lower lake levels have a
down side. They can mean less water is available for people's needs
during a drought, and may make the lake more susceptible to the
rapid spread of invasive melaleuca.
After examining the various competing needs and characteristics
of the lake and modeling a variety of regulation schedule scenarios, the
District proposed an interim regulation schedule adjustment The COE
approved this change. The adjustment, which includes releases more
like natural flows and "Best Management Zones" to protect downstream
estuanes, should improve the health of the littoral zone, while not jeop-
ardizing water supply availability.
The interim schedule will also help to minimize damaging regula-
tory releases from Lake Okeechobee. In the past, large releases of
freshwater into the Caloosahatchee and the St. Lucie Rivers, and to the
coastal bays and estuaries they feed, were often damaging to these
delicate systems. Flood water flows were often much faster and in greater
volumes than they were historically-a shock to the complex and deli-
cate blend of fresh and saltwater in the estuaries of both coasts. Now,
controlled or pulsed releases of freshwater are made before levels in
the lake rise to elevations where large volume flood control releases
are necessary. Waters are released gradually, creating slower moving
and lower volume flows from the lake, with an impact on estuaries
resembling a heavy rainfall. These "pulse" releases, more like natural
flows in both quantity and timing, have become an increasingly impor-
tant facet of water management.

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An updated draft of the Okeechobee SWIM Plan was also com-
pleted this year, and public workshops held through the year. Govern-
ing Board approval of the revised plan is expected in October, 1992,
after which the plan will be forwarded to DER for consistency review.

The Everglades
Florida's Everglades once sprawled in a shallow blanket across
four million acres; acres which included hardwood swamps, sawgrass
plains, wet prairies and pine flatwoods, cypress strands, mangrove is-
lands and fresh and saltwater marshes. It was an immense, subtropical
wetland mosaic which spread from Lake Okeechobee to Florida Bay.
Today, more than half the Everglades are gone. What remains
of this "River of Grass" is contained primarily within three Water Con-
servation Areas in western Palm Beach, Dade and Broward counties
and in Everglades National Park. The remaining Everglades are bor-
dered on the north and east by dense urban and agricultural develop-
ment, which is pushing ever westward.
The Everglades is at the center of many complex water re-
source and environmental management dilemmas, most the result of
escalating urban and agricultural development in south Florida. Water
quality changes can be traced to excess nutrients such as phospho-
rus, predominantly a by-product of agriculture. Water quantity has
been diverted and reduced by the drainage system which interrupts
natural flows to serve cities and farms. That interruption disrupts the
Everglades water regimes many species have evolved to depend on.
District efforts to reverse this decline began in the 1970s. Ten
years ago, Florida's "Save Our Everglades" program gave early efforts
new impetus, and defined a greater Everglades system which included
the entire Kissimmee-Okeechobee-Everglades hydrologic chain.
The state's Surface Water Improvement and Management
(SWIM) Act stepped-up planning for restoration of this treasure, plans
which address hydroperiod and melalueca control as well as water
quality problems. In 1988, the complex process of developing a com-
prehensive Everglades SWIM Plan began. Then, that same year the
U.S. Department of Justice sued the state and the District for not en-
forcing water quality standards for agricultural runoff water entering the
Loxahatchee National Wildlife Refuge and Everglades National Park.
Negotiations in that lawsuit spanned three years, with a settlement
reached in 1991.
An order ending the suit was approved by a federal judge in February
1992, allowing the District to move forward with plans outlined in the settle-
ment, as well as in the Everglades SWIM Plan, and in Florida's 1991 Marjory
Stoneman Douglas Everglades Protection Act. Numerous deadlines and
requirements spelled out in each of these three documents have all, to date,
been met by the District. The initial capital cost of restoration, as dictated
in these documents, is estimated at $360 million.

Legal Requirements In March 1992, the Governing Board
adopted the final draft of the Everglades SWIM Plan, a document which
evolved through several years of public discussion, review and revi-
sion. The Plan has been challenged in a number of lawsuits brought
by EAA industry representatives. Administrative hearings on these
challenges are expected to take place late in 1993.


The District completed its application for an Everglades interior
permit-for the construction, operation and maintenance of Distric
structures within the Everglades Protection Area (EPA) which include
the conservation areas, the Loxahatchee Refuge and Everglades Nation;
Park. This permit is mandated by the Marjory Stoneman Dougla
Everglades Protection Act, as well as the lawsuit settlement. DER's Notic
of Intentto issuethe permit has been challenged bythe agricultural industn

Public Works & Construction Great progress was made in th
design and construction of the Everglades Nutrient Removal (ENF
project, a 3,680-acre wetland recreated where crops were once farmer
which will be used to cleanse nutrients from agricultural runoff. The ENF
a prototype for the 35,000 acre Stormwater Treatment Areas (STAE
required by the settlement and the SWIM Plan, will help to test and refin
the design and management of the full-scale STAs. The ENR project i
located immediately northwest of the Loxahatchee National Wildlif
Refuge. Construction of perimeter and internal levees, a seepage an
a supply canal was completed in 1992. The ENR project should be corr
pleted by mid-1993, and is expected to significantly reduce the amour
of phosphorus reaching the Loxahatchee National Wildlife Refuge.
Meanwhile, work continued on the development of STAs. Cor
ceptual designs were completed, and reviewed by advisory and peE
groups comprised of nationally recognized wetlands experts. In th
coming year, the general design, which incorporates reviewer's cor
ments and changes, will be completed.

Regulatory Programs The EAA Regulatory Permitting program
which is expected to achieve an overall 25% reduction in phosphoru
in agricultural stormwater, was initiated and implemented this yea
Rulemaking to adopt Phase I was completed in June, and 99% of EA
land users had completed permit applications by October 199,
Rulemaking to adopt Phase II of this program, which dealt with mon
touring and enforcement was completed in May 1992. Final agency
action on all permits must occur by July 1993. Applicants will hav
approximately two years to implement EAA BMPs. EAA BMPs include
calibrated soil testing, more-targeted fertilizer application, and longE
on-site retention of drainage water.

Advisory Groups Four technical advisory groups, including th
Technical Oversight Committee (TOC), the Scientific Advisory Grou
for the Everglades (SAGE), the Everglades Restoration Council o
Funding Policy and an STA Design Work Group, met frequently
throughout the year. The TOC's charge, as required by the settlement
has been to establish and oversee an Everglades Research Plan t
determine numeric standards for the restoration. SAGE, established b
the District through the Everglades SWIM Plan, is reviewing ST
designs and evaluating alternative restoration plans submitted b
agencies and/or interest groups. Alternatives examined include
chemical treatment, limerock sorption, algal turf scrubbers, sedimer
dredging, and deep well injection. The Funding Council is examinin
a number of funding issues including stormwater utility assessment
and ad valorem as well as other tax scenarios to fund Everglade
restoration. The STA Design Work Group, with technical and engine

_ _

I 9. A

ing experts from federal and state organizations, and representatives
from regulated industries, examined design and construction cnteria for
the STAs. The STAs represent an approach which uses nature's own
ability to cleanse water through wetlands as the basis for removing
nutrients from agricultural runoff.

Public Education Education is an important part of Everglades
restoration and protection efforts. A number of publications were
produced and distributed this year to communicate the District's
restoration efforts, including "The Everglades Connection," a quanerly
newsletter, 'The Everglades Monthly," a special publication on the
Everglades Nutrient Removal Project and a short, educational video,
"Everglades Overview." Throughout the year, a number of tours and
briefings were arranged for government officials, the media and various
interest groups.

SBays & Estuaries at the Edges of the Everglades
SThe bays, estuaries and lagoons of the region have long been
recognized as economic as well as environmental jewels, because they.
bring the bounty of the seas to our shores. SWIM programs for Biscayne
Bay and the Indian River Lagoon, and St. Lucie Riverclean-up initiatives
are helping to ensure that bounty is preserved.
This year, the District focused increased attention on the
problems of Florida Bay and the Florida Keys, the southernmost reach
Sof the Everglades system. High salinity levels, sea grass die-offs and
algal blooms in Florida Bay, in addition to declines in water quality and
fisheries in the region reinforced the District's interest in the Keys/
Florinda Bay area. There is growing concem that environmental stresses
in Florida Bay and the Keys will eventually be transported downstream
to the coral reefs irretrievable resources for south Florida.
The Distnct is working with state and federal agencies to find
solutions to these vexing problems. Partnerships with the National
Oceanic and Atmospheric Administration, and its Florida Keys National
Manne Sanctuary, the U.S.E.P.A., the COE. Everglades National Park
and Florida's Department of Natural Resources are vital to protecting
and managing Florida Bay and the Keys.
While these groups are working to pinpoint long-term solutions,
a new pump was installed in the C-111 basin to enable the District to
direct more freshwater to Florida Bay. The Keys have been added to
the District's SWIM priority water bodies list.

Establishing a Balance
Although we have listed various District projects underthe distinct
headings of stormwater management, water supply and natural system
restoration for the sake of simplicity, these issues are really all
interrelated. Natural systems depend on proper stormwater manage-
ment as well as adequate water supply. Water supply can be badly
compromised by inadequate water quality protection or stormwater
management which damages natural systems.
The challenge of finding a balance amidst these often competing
yet interdependent interests is daunting, but it is a balance which must
be achieved here in Florida, and in our world, if we are to preserve
ourselves and the quality of life we share today for tomorrow.

r~nni .- 0cour

Florida's five water management districts, with the Department c
Environmental Regulation, are the stewards and guardians of water re
sources throughout the state. The districts are defined by hydrologi
boundaries, allowing each district to resolve regional resource issue
outside the boundaries sometimes imposed by artificial political lines. Th
water management districts were established by the 1972 Water RE
sources Act, which set up within each district a Governing Board, comprise
of members appointed by the Governor, and charged with making police
and providing management oversight.
Appointments are generally for a four-year term, and are subject t
Florida Senate confirmation. This District's Governing Board has nin
members, who serve without pay. Members must be selected from various
geographic areas within the District's boundaries. The Water Resource
Act states that Governing Board members must set policy for managing
water and related land resources; promoting the conservation, develop
ment and use of water; developing and regulating dams and other works 1
provide water storage; preventing damages from floods, soil erosion an
excessive drainage; preserving natural resources, fish and wildlife; an
protecting public land.
The Governing Board meets monthly, on the second WednesdE
and Thursday. Brief biographies of the members of the Governing Boal
Allan Milledge, Board Chairman, Coconut Grove, is an attorney
private practice at Milledge & Iden. He has been involved with land ar
water resource issues for over 25 years. Appointed term: 1991-1995
Valerie Boyd, Board Vice-Chairman, Naples, is President of Gargiu
Landco, Inc., a real estate development and management firm. She alk



serves as Chairman Ex Officio of the Big Cypress Basin Board. Appointed
term: 1989-1993.
Ken Adams, West Palm Beach, a former Palm Beach County
Commissioner, is a self-employed investor and horse-farm operator.
Appointed term: 1989-1993.
James E. Nail, Fort Lauderdale, is a real estate consultant and
commercial broker. Appointed term: 1989-1993.
Annie Betancourt, Miami, is Director of the Center for Professional
Development for Miami Dade Community College, South Campus. She
has been very active in community and state service. Appointed term:
Franklin B. Mann, Fort Myers, a former state legislator (House of
Representatives 1974-1982; Senate 1982-1986), isacommercial investor.
Appointed term: 1991-1995.
Leah G. Schad, West Palm Beach, is self-employed as an
environmental consultant and a retail florist. She has been active in
environmental protection efforts for more than 20 years. Appointed term:
Frank "Sonny" Williamson, Jr., Okeechobee, is president of
Williamson Cattle Company and Okeechobee Groves Company. A fifth
generation Floridian, he has a long record of public service and community
involvement. Appointed term: 1991-1995.
Eugene Pettis, Fort Lauderdale, is an attorney with Cooney,
Haliczer, Mattson, Lance, Blackburn, Pettis and Richards. Appointed
term: 1991-1995.

The Water Resources Act states that
Governing Board members must set
policy for managing water and
related land resources; promoting the
conservation, development and use of
water; developing and regulating
dams and other works to provide
water storage; preventing damages
from floods, soil erosion and excessive
drainage; preserving natural
resources, fish and wildlife; and
protecting public land.


This finainial report is intended to
provide fIhe general public with an
understanding of lie overkill financial
picture of the Distritt during its fiscal
year from October I. I ol throuah)li
September 30, 1092 Since tie
financial stalntelnnts may contlain data
unfamiliar to ianu readers, we lihve'
provided soine explain(tionis and
interprelations for each statement
This report represents a iltillnuing
effort by ihe District to provide
interested parties with a basic and
more thorough understanding of oIr
total financial picture

Tlie financial statements included in
this report summarize the audited
financial statements included in our
mucht lengthier Comprehensive
Annual Financial Report which
provides more complete financial
disclosures. Our comprehensive
report is lengthy and may ward off
atllempts to understand it. This
summary report provides readers
having limited tune and
understanding of accounting with an
oveniew of our finances. Its length
and format are similar to a corporate
financial report Yet, this summary
report still recognizes certain financial
restrictions and accounting principles
unique to government.


The Summary Statement of Revenues. Expenditures and Changes in Unexpended Fund Balances
on page 25 presents the overall annual revenues and expenditures of the District. Revenues are Ihe total
amount of cash received by the Distnct. or expected to be received soon, and are classified by their
sources. Expenditures are the total cash spent and payable by the Distnct. Unexpended Fund Balance
is the difference between the funds received and the funds spent.
This statement is similar to the Income Statement used by private industry except that the Distnct
uses a "flow of funds' measurement focus. The statement's purpose is to show the sources and uses ol
all cash, which includes cash for current operating expenditures as well as cash set aside for long-term
capital purchases. Using a Ilow of funds measurement focus, the statement notes a $24.9 million net
excess of revenues over expenditures in 1992. This excess is primanly due to revenues reserved for
future capital and operating expenditures to restore the Everglades.

Total revenues increased by approximately 10.8%' between 1991 and 1992. This is due to an
increase in the amount of money received to purchase wetlands and to help with mitigation. District
revenues are divided into five categories: ad valorem property taxes, intergovernmental, interest,
corporate, and permits and other income.
Ad valorem taxes continue as our pnmary source of revenue. The District is listed on the taxpayer's
property tax bill as a special taxing district. The revenue from ad valorem taxes increased between 1991
and 1992 by $7.6 million, although the percentage of total revenue from ad valorem taxes decreased by
almost 2 50. Ad valorem taxes of approximately $125 million produced 63.80o of FY 1992 revenues.
while taxes of $117 million made up 66.30o of 1991 total revenue. The increase in total dollarscollected
from taxes is a result of an increase in property values and new construction throughout the District, rather
than tax rate increases.
The second largest revenue category was intergovernmental revenue. This is money received from
various federal and state agencies. The largest amount of intergovernmental revenue came from the
State for land acquisitions. Intergovernmental revenue makes up 21% of the total 1992 revenue. The $3.9
million decrease in intergovernmental revenue between 1991 and 1992 is primarily due to decreased
funding in 1992 from the Preservation 2000 Program.
Corporate income of $16 million comprises the third largest revenue source. This represents
monies received from FP&L to mitigate any environmental damages that may occur when the utility
constructs power lines through water conservation areas under the control of the District.
Interest income is the fourth largest revenue source at $9.4 million. Interest income
decreased approximately 80 between 1991 and 1992 due to plummeting interest rates which
dropped from 6% to 4% during 1992.
Our fifth revenue category includes permits and other revenue representing monies received for
licenses, permits, fines, assessments, and miscellaneous revenues; an increase of $593,186 between
1991 and 1992. This is due to an increase in the types of regulatory permits issued, as well as an increase
in the number of environmental fines imposed.

Expenditures are classified in two categories: 1) Operating and Resource Management expendi-
tures and 2) Capital and Capital Management expenditures. Total expenditures decreased by approxi-
mately $10 million, or 5.5,o, between 1992 and 1991, pnmarily due to a decrease in Capital and Capital
Management expenditures. In comparison to FY 1991, we invested significantly less funds in land
purchases and bullding/structure construction during FY 1992.
Total Operating and Resource Management expenditures make up 60.3%. of the total
expenditures for 1992, and total Capital and Capital Management expenditures make up 39.7%.
The largest expenditures were for capital projects and land acquisition at 28.2%. Maintenance
expenditures were the second largest expenditure at 22.7%. Technical and administrative expen-
ditures were the third largest at 17.10%.

Changes in Unexpended Fund Balances
Unexpended Fund Balances totalled $126,414,092, representing an increase from the prior year
of approximately $25 million.
The total Unexpended Fund Balances of $126,414,092 at the end of the statement is a key link that
matches the Unexpended Fund Balances on the Balance Sheet on page 26.

Summary Statement of
Revenues, Expenditures, and Changes in Unexpended Fund Balances
Years Ended September 30, 1992 and 1991

Ad valorem property taxes
Permits and other





TOTAL REVENUES 195,662,378 100.0% 100.0% 176,614,901

Operating and Resource Management
Research and evaluation 13,383,919 7.8% 8.6% 15,542,067
Operations and maintenance 38,747,085 22.7% 19.5% 35,165,428
Regulation 8,435,104 4.9% 4.3% 7,828,311
Planning 13,285,787 7.8% 7.2% 13,061,984
Technical and administrative 29,108,656 17.1% 17.0% 30,745,095
Total Operating and
Resource Management 102,960,551 60.3% 56.6% 102,342,885

Capital and Capital Management

Land management 9,151,914 5.4% 4.6% 8,404,080
Construction management 5,831,815 3.4% 2.1% 3,752,194
Capital projects and
land acquisition 48,226,455 28.2% 34.1% 61,687,064
Debt service 4,625,118 2.7% 2.6% 4,626,432
Total Capital and Capital
Management 67,835,302 39.7% 43.4% 78,469,770
TOTAL EXPENDITURES 170,795,853 100.0% 100.0% 180,812,655

Excess (deficiency) of revenues
over expenditures 24,866,525 (4,197,754)
Fund balances at beginning
of year 101,547,567 105,745,321
Fund balances at end of year $126,414,092 $101,547,567
See accompanying Notes to Summary Financial Statements


Corporate 8.2% Permits and
Interest 4.8% I Other 2.2%
S: rtyTaxes

Corporate 0.3%
Interest 5.8%1 Permits and Other
Intergovernmental 2.1%Ad Valorem
Property Taxes


Debt Service Research and
Capital Projects 27% Evaluation
and Land 7.8% Operations
S .. 1. ce

iR .
34% I Planning
Land 7 8%
Management Technical and
5.4% Administrative
17 1%

Debt Service 2.6% Research and
Capital Projects Evaluation
and Land 8.6% Operations
'il..i;;t.:t.n ,ar,,

c :, ,,,J ... n
Management Planning
2.1% Land 7.2%
Management Technical and
4.6% Administrative


The Balance Sheet sets forth the
following: (1) Assets, items which we
own or control; (2) Liabilities, debts
which we have; and (3) Fund
Equity, the residual interest in the
items which we own or control after
deducting our debts.


$800 ,

$600 ---- ---



1990 1991 1992
,... Fund Equity

SEPTEMBER 30, 1992 AND 1991

The Summary Statement of Financial Position, which is also referred to as the Balance Sheet,
presents the District's financial status as of September 30, 1992. The statement sets forth the
following: (1) Assets, items which we own or control; (2) Liabilities, debts which we have; and (3)
Fund Equity, the residual interest in the items which we own or control after deducting our debts.

Assets are listed in two categories: Current Assets and Other Assets. To facilitate assessment of
solvency, the assets are listed in the order they are transformed into cash. The Current Assets represent
cash, receivables expected to be realized in cash, and other items consumed during the normal operating
cycle of the District. The receivable amount of $20,902,507 represents money owed to the District by other
agencies or individuals, and collection will take place within the coming year. Consumption of the
inventories and prepaid expenses of $1,243,224 are also anticipated during next year.

Summary Statement of
Financial Position
September 30, 1992 and 1991

Current Assets
Cash and investments
Receivables, net
Inventories and oreoaid expenses. at cost



Total Current Assets 198,200,966 160,962,131

Other Assets
Property, plant and equipment 712,434,338 669,469,522
Deferred charges 34.323,175 50,152,959
TOTAL ASSETS $944,958,479 $880,584,612

Current Liabilities
Accounts payable and accrued expenses 50,493,866 29,816,423
Deferred revenue 21,233,016 29,557,092
Current portion of long-term debt 920,000 865,000
Total Current Liabilities 72,646,882 60,238,515

Long-Term Liabilities
Long-term debt, net of current portion 51,780,000 52,700,000
Condemnation payments 27,645,000 44,008,000
Employee benefit obligations 6,738,167 6,186,008
Total Long-term Liabilities 86,163,167 102,894,008

Unexpended Funds
Reserved for operating expenditures 61,083,469 42,812,819
Reserved for capital and debt service 62,048,279 52,657,963
Unreserved funds 3,282,344 6,076,785
Total Unexpended Funds 126,414,092 101,547,567
Net investment in capital assets 659,734,338 615,904,522
Total Equity 786.148.430 717.452.089
TOTAL LIABILITIES AND EQUITY $944,958,479 $880,584,612
See accompanying Notes to Summary Financial Statements



Total assets increased by approximately $64 million, due mainly to having more cash available
at the end of the year than was available at the beginning. The increase in cash represents funds
available for major land purchases, which were delayed into fiscal years 1993 and 1994. Purchases
of property, plant, and equipment in 1992 also caused our asset amount to increase.

Liabilities are defined as claims against our assets. Like the assets, the liabilities are also
listed in order of liquidation.
Liabilities are listed in two groups: Current Liabilities and Long-Term Liabilities. Current
Liabilities consist of operational type bills which are due for payment, revenue collected but not earned
because it represents payment for a future period, and current amounts due on any long-term debt
obligation. The current liabilities are due within a short time and are usually paid out of current assets.
Thus, there is a direct relationship between current liabilities and current assets, generally described
as expressing the current position of the organization.
The ratio between current assets and current liabilities is called the "current ratio" and illustrates our
ability to meet currently maturing obligations. The District's current ratio for FY 1992 is 2.73:1, compared
to the FY 1991 ratio of 2.67:1. The ratio illustrates that the District has enough cash and future cash items
available to pay current obligations over two and a half times before financial difficulties would arise.
Long-Term Liabilities include items with an anticipated payment date beyond our current annual
operating cycle. The District's long-term liabilities consist of long-term debt of $51,780,000 for the
repayment of principal due on Land Acquisition bonds issued in 1985 and 1986, $27,645,000 in
condemnation proceedings for the taking of private lands throughout the District for public use, and
$6,738,167 for employees' vested sick leave or vacation time.
The decrease in long-term liabilities is due to a reclassification of approximately $20 million
of condemnation payments to current liabilities. This $20 million is included in accounts payable and
accrued expenses of $50,493,866. In 1991, these payments were classified as long-term liabilities
because they were not expected to take place until 1993.

Fund Equity
Fund Balance is defined as the excess of our assets over our debts. The District's equity section
states that we are able to pay all debts and have funds for future commitments. We are obligated
for future commitments related to operating expenditures of $61,083,469 and commitments relating
to capital and debt service items of $62,048,279. Unreserved funds of $3,282,344 are available for
future appropriations and commitments.



0 i
83 84 85 86 87 88 89 90 91 92

The ratio between current assets
and current liabilities is called
the "current ratio" and illustrates
our ability to meet currently
maturing obligations. The
District's current ratio for FY
1992 is 2.73:1, compared to the
FY 1991 ratio of 2.67:1.






0 9 1
88 89 90 91 92

Fund Balance is defined as the
excess of our assets over our debts.
For 1992 we have obligated ourself
for future commitments as follows:
Expenditures ...........$61,083,469
Capital & Debt Service
Expenditures .............62,048,279
Unreserved Funds.......... 3,282,344
Total .......................$126,414,092



....,, .

The Sources of Cash are revenues
collected during the year as well as
changes in current assets and cur-
rent liabilities that are directly
related to the collection of revenue.
Our total revenues of $195,662,378
was the primary Source of Cash. As
receivables decreased by
$4,968,384, additional cash was
collected for investment purposes.
Deferred revenue represents the
collection of cash before the period
that the cash is due or payable.
The decrease in deferred revenue
between years indicates that the
actual cash was collected in a prior
year, but the revenue was recog-
nized in the current year.

The Uses of Cash include total
expenditures as well as changes in
current assets and current liabilities
that are expenditure related, but
the actual cash outlay has not
taken place. Total expenditures of
$170,795,853 (less an increase in
accounts payable and accrued
expenses which were not due for
payment) were our primary Uses of
Cash. Also, additional cash of
$246,654 was needed to increase
inventory levels and prepay future

The Total Cash and Investments at
the end of the year of
$176,055,235 is a key link that
agrees with the Cash and Invest-
ment amount on the Statement of
Financial Position on page 26.


This statement provides information about where our cash came from during the year (sources) an(
where the cash was spent (uses). The difference between the sources and the uses is the net increase
or decrease of cash and investments during the year.

Summary Statement of
Cash Flows and Changes in Cash and Investments
Years Ended September 30, 1992 and 1991

Total revenues
Decrease in receivables
Decrease in deferred revenue
Total Sources of Cash



Total expenditures 170,795.853 180,812.655
Less proprietary expenditures not using cash (18.943) (41.049)
Increase (decrease) in inventory and prepaid expenses 246,654 (90,081)
Increase in accounts payable and accrued expenses (20.677,443) (3.232,534)
Total Uses of Cash 150.346,121 177.448.991

Net increase in cash 41.960.565 3,474,631
Cash and investments at beginning of year 134,094.670 130,620.039
Cash and Investments at the End of the Year $176.055,235 $134.094,670

See accompanying Notes to Summary Financial Statements






Sources of Cash

f 1992 1991

Uses of Cash Cash on Hand

Sources and Uses of Cash


_ __.__


The District's financial stability is demonstrated by its net equity or investment in capital assets. This
net equity is represented by the total capital assets owned less all related indebtedness still outstanding.

Summary Statement of
Changes in Net Investment in Capital Assets
Years Ended September 30, 1992 and 1991

Capital projects
Land acquisition
Total Increases in Capital Assets

Land acquisition and construction costs not capitalized
Equipment sold and traded
Total Decreases in Capital Assets

Reduction in principal on capital debt

Net increase
Net investment at beginning of year
Net Investment at the End of the Year







The District's Net Investment
in Capital Assets increased from
$615.9 million in 1991 to $659.7
million in 1992.
The statement sets forth increases
and decreases in capital assets,
other increases in investments, and
net investment in capital assets.
The total increases are directly
related to capital project and land
acquisition expenditures. The total
decreases are related to retirements
and deletions of capital assets. The
other increases in capital
investment are reductions in
principal payments on capital debt.
The Net Investment at the End of
the Year of $659,734,338 is a
key link that matches the Net
Investment in Capital Assets on
the Balance Sheet on page 26.



See accompanying Notes to Summary Financial Statements

12% -



60 -

4% -


090 -

83 84 85 86 87 88 89 90 91 92

Debt to Capital Asset Ratio

This indicator of debt management
measures the ratio of debt
outstanding to capital assets.
During this ten year period, the
ratio has ranged from a low of
4.43% in 1985 to 11.71% in
1986, the year of issuance of
special obligation bonds for land
acquisition. As no other debt has
been incurred since that bond
issuance, the ratio has declined to
7.40% in 1992. The net
investment in capital assets
increased 7% to approximately
$660 million in 1992.



The carrying value and market
value of cash and investments are:

Millions I Book Carrying Value
$200 -- Bank or Market Value


1992 1991

Receivables consist of:


Property taxes are levied each
November 1 on the assessed value
listed as of the prior January 1 for real
and personal property located within
the District. The assessed value at
January 1, 1991, upon which the
fiscal year 1992 levy was based,
approximated $240 billion. The
District is permitted by Florida
statutes to levy taxes up to 0.80 mills
of the assessed valuation. The rate for
fiscal year 1992 was 0.547 mills for
the majority of District property.


SEPTEMBER 30, 1992

NOTE 1: Significant Accounting Policies
The District's accounting policies conform to generally accepted accounting principles (GAAP) a,
prescribed by the Governmental Accounting Standards Board (GASB) with the exception of thi,
presentation of summary financial statements for which no standards are currently established. ThE
District's separately prepared and audited Comprehensive Annual Financial Report (CAFR) is present(
in conformance with GAAP. For a more complete description of significant accounting policies and othe
disclosures required by GAAP, see the CAFR available from the District's Finance Department.

(a) Basis of Presentation
Governmental financial reports are evolving to provide summarized financial information to citizen,
and other users to supplement detailed reports. These summary financial statements are prepared
in a format similar to the consolidated financial statements of a private corporation, yet still disclosE
the fund equity accountability. They present an aggregated financial position of the District, the tota
cost of program services and revenues, and eliminate duplications caused by interfund transactions

(b) Principles of Presentation
In preparing these statements, the following principles were applied to adjust the combined total,
in the CAFR. No adjustments resulted in a change in unexpended fund balances.
Elimination of interfund balances, revenues, expenditures and transfers.
Consolidation and reclassification of fund balances and retained earnings according to thei
availability and appropriated or funded purpose.
Elimination of general long-term debt to be provided as a reduction in the net investment of related
capital assets.
These principles differ from the principles followed in the separate fund type financial statement,
presented in the District's CAFR on the basis of presentation.

(c) Measurement Focus/Basis of Accounting
The District utilizes the flow of financial resources measurement focus and the accrual basis o
accounting. Debt proceeds and capital expenditures are recorded as sources and uses of funds a(
incurred. No depreciation is reflected as an expenditure. Revenues are recognized when earned anc
measurable. Expenditures are recognized at the time liabilities are incurred.

NOTE 5: Deferred Revenues
Deferred revenue primarily represents resources received and to be received from Florida Powe
& Light Co., which are subject to refund pending completion of certain contractual events.

NOTE 6: Long-Term Liabilities
Long-term debt consists of the following:
Land Acquisition Bonds
Series 1985
Series 1986



52,700,000 53,565,000
Less Current Portion 920,000 865,000
Net Long-term Bonds $51,780,000 $52,700,000

Principal and interest on Land Acquisition Bonds are secured by a lien on documentary stamr
excise taxes collected statewide by the State of Florida and allocated to the State's five watei
management districts through the Water Management Lands Trust Fund. Annual debt service require
ments (principal and interest) to amortize bonds outstanding approximate $4.6 million annually through
fiscal year 2016.



The District is party to a number of lengthy condemnation proceedings (as plaintiff) and inverse
condemnation proceedings (as defendant) regarding the taking of private lands for public use. In such
cases, the court determines the value of the land acquired by the District, and payment of the liability owed
to the owner is made upon transfer of title to the District. The court may rule on various proceedings forwhich
the value and title transfer date is yet undetermined. The District's estimated maximum future liability of
approximately $27.6 million at September 30,1992 forthe purchase price of these lands, including interest
and attorneys' fees is recorded as a long-term liability with an offsetting deferred charge to future years when
the District will levy the necessary taxes, then budget and appropriate the added resources in the period in
which the land value is determined and acquired.
Employee benefits for vacation and sick leave (compensated absences) are recorded as expendi-
tures when payments are made to employees. However, the liability for all earned but unpaid vacation and
sick pay is recorded as a long-term liability, although the cost is not recognized as an expenditure. Currently,
the Governmental Accounting Standards Board is considering alternative methods of recognizing the cost
of this long-term liability. The District is designating an increasing share of the fund balance each year, which
could absorb this future charge without impairing the fund balance in future fiscal years.
Amounts reserved and designated as future operating expenditures for the retirement of general
long-term liabilities are:

Reserved for Debt Service
Designated for Compensated Absences



NOTE 7: Property, Plant and Equipment
Property, plant and equipment are stated at historical cost and no depreciation is recorded in
accordance with GAAP. The carrying values are:

Water Control Structures
Land and Construction In Process



NOTE 8: Employee Retirement Benefits
The District participates in or sponsors several plans which provide benefits to employees after they
retire from District employment. District payments for each year are:

Federal Social Security System
Florida Retirement System
Deferred Compensation Plan
Postemployment Medical Plan



NOTE 9: Contingencies
The District is a defendant in legal proceedings arising in the normal course of business. In the opinion
of management, based on advice of legal counsel, the ultimate resolution of these matters will not have a
material effect on the District's financial position.
In FY 1991, the District and the United States Attorney settled an injunctive suit which charged the
District with allowing polluted water to flow into the Loxahatchee National Wildlife Refuge and the
Everglades National Park. The settlement provides that the District will undertake certain restorative
measures in the 1990s which are estimated to cost in excess of $360 million.

On August 24, 1992, Hurricane
Andrew swept through Broward, Dade,
Monroe, and Collier counties. The
total financial impact that this disaster
will have on the District is still
uncertain, but as of September 30,
1992 we had already incurred
approximately $3.3 million in
expenditures relating to storm repair
Efforts to clear the debris and repair
damages caused by Hurricane Andrew
continue into fiscal year 1993.
Recovery efforts are expected to total
approximately $10-15 million.

The District anticipates
reimbursement by Federal agencies for
a majority of these costs. While the
Federal Emergency Management
Agency (FEMA) willcovercosts
initially, most of the effort will quickly
shift to the U. S. Army Corps of
Engineers or the Soil Conservation
Service. We will devote extensive
resources to comply with the record
keeping and auditing requirements
thatare necessary in order to seek
reimbursement from FEMA.

Hurricane Andrew damaged Dade
County severely. Property values in
Dade County are anticipated to decline
between $2.5 and $4 billion, resulting
in no growth of taxable value in the
District's 1994 tax base. FiscalYear
1993 taxproceeds from Dade County
are not anticipated to be significantly
impacted since they are based on
January 1, 1992 taxable values.
Fortunately, the District had
established an Economic Stabilization
Reserve thatequals five percentof prior
year revenues forall ad valorem tax-
based funds to ensure funds are
available to meet critical project
requirements in the eventofan
unanticipated revenue shortfall.

I. --I


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