title
City of Gainesville, Florida v. The State of Florida and the Taxpayers, Property Owners and Citizens of the City of Gainesville, Florida, Including Nonresidents Owning Property or Subject to Taxation Therein (B)
recommendation
The City Commission authorize the City Attorney's Office to file an appeal to the Florida Supreme Court.
explanation
In October 2001, the City filed a bond validation action, seeking to validate revenue bonds to be issued in an amount not to exceed $5,000,000.00. The bonds will finance the cost of capital improvements to the City's stormwater management system and will be repaid with revenues from the City's stormwater management utility.
One of the issues to be determined in a bond validation is the legality of the funding source used to repay the bonds. In this case, the court must rule on the validity of the City's stormwater management utility fee.
The hearing was held over two days. On the second day, after the close of the evidence, the court granted the Department of Transportation's motion to dismiss the action. In a written order the court concluded that the City's stormwater fees were not based on the amount of stormwater contributed and the charge was not voluntary.
The court's decision is clearly erroneous and ignores a previous appellate case finding the City's ordinance to be a proper fee if it operated as provided for in the ordinance. The court's decision also ignores well established law in the area of setting utility fees and measuring service. The law governing bond validations provides for an expedited direct appeal to the Florida Supreme Court.
The case is of utmost importance to all counties and cities within the State of Florida which have stormwater utilities. If the City's charge is found not to be a valid fee, it is highly unlikely that any other stormwater utility fee in the State of Florida would be upheld. Further, if what appears to be the court's requirement of an exact me...
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