HOUSE OF REPRESENTATIVES LOCAL BILL STAFF ANALYSIS
BILL #: CS/HB 923 Sarasota County
SPONSOR(S): Local Administration, Federal Affairs & Special Districts Subcommittee, McFarland
TIED BILLS: IDEN./SIM. BILLS:
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Local Administration, Federal Affairs & Special 17 Y, 0 N, As Mwakyanjala Darden
Districts Subcommittee CS
2) Ways & Means Committee
3) State Affairs Committee
SUMMARY ANALYSIS
The bill would create a municipality in Sarasota County to be known as the Town of Siesta Key (Town or
Siesta Key). The bill contains the charter of the proposed town, including the following authority, powers, and
duties:
Corporate name, purpose of the charter, and creation and establishment of the Town of Siesta Key;
Powers of the town;
A commissioner-manager form of government;
Town commissioner, mayor, and vice mayor;
Powers and duties, composition of the council, eligibility, terms, compensation, commission meetings,
vacancies, forfeitures, and investigations;
Administration by town manager and provision for town clerk, town attorney, personnel, planning;
Adoption and enforcement of ordinances and resolutions;
Financial management, including budget administration, capital program, and public records;
Authority to raise revenue for municipal purposes, including imposing ad valorem taxes;
Qualifications of commission members and election procedures;
Powers of initiative and referendum;
Amendments to the charter and severability; and
Transition provisions, including a referendum election, initial council election, eligibility for state-shared
revenues, local revenue sources, local option gas tax revenues, contractual services and facilities
(including existing solid waste contracts), and the continuation of existing county municipal services
taxing service units.
The Economic Impact Statement submitted for the town projects revenues of $4,714,086 in FY 2025 (first full
year of municipal government). The EIS projects expenditures of $1,053,800 in FY 2024 and $4,714,086 in FY
2025, representing the cost of municipal administration. The expenditure figure does not include payments
from the proposed municipality to Sarasota County for services provided by interlocal agreement.
The bill takes effect upon approval by a majority vote of the proposed municipality’s electors voting in a
referendum conducted in accordance with section 3 of the bill, except that subsection (1) of section 14 and
section 16 take effect upon becoming law.
Pursuant to House Rule 5.5(b), a local bill providing an exemption from general law may not be placed
on the Special Order Calendar for expedited consideration. The provisions of House Rule 5.5(b) appear
to apply to this bill.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
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FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Present Situation
Municipal Incorporation
Constitutional Provisions
The Florida Constitution states municipalities may be established or abolished and their charters
amended pursuant to general or special law.1 Municipalities are granted all governmental, corporate,
and proprietary powers necessary to conduct municipal government, perform municipal functions, and
render municipal services. Additionally, municipalities are authorized to exercise any power for
municipal purposes except when expressly prohibited by general or special law. 2 The power to tax is
granted only by general law.3 The legislative body of a municipal government must be elected. 4
Municipal Home Rule Powers Act
The Municipal Home Rule Powers Act structures the use of the constitutional powers authorized for
municipalities.5 A special law forming a municipality or a municipal charter may not be amended without
a referendum of the affected voters if the change impacts:6
The exercise of extraterritorial powers;
An area that includes lands within and without a municipality;
The creation or existence of a municipality;
The terms of elected officers and their manner of election, except for the selection of election
dates and qualifying periods for candidates and for changes in terms necessitated by change in
election dates;
The distribution of powers among elected officers;
Matters prescribed by charter relating to appointive boards;
Any change in form of government; or
Any rights of municipal employees.
Formation of Municipalities Act
The Formation of Municipalities Act (Formation Act) governs the formation and dissolution of municipal
governments.7 The stated purpose of the Formation Act is to provide standards, direction, and
procedures for the incorporation, merger, and dissolution of municipalities so as to achieve the
following:
Orderly patterns of urban growth and land use;
Adequate quality and quantity of local public services;
Financial integrity of municipalities;
The elimination or reduction of avoidable and undesirable differentials in fiscal capacity among
neighboring local governmental jurisdictions; and
Equity in the financing of municipal services.8
1 Art. VIII, s. 2(a), Fla. Const. A municipality is a local government entity, located within a county that is created to perfo rm additional
functions and provide additional services for the particular benefit of the population within the municipality. The term “municipality” can
be used interchangeably with the terms “city,” “town,” and “village.”
2 Art. VIII, s. 2(b), Fla. Const.
3 Art. VII, s. 9(a), Fla. Const.
4 Art. VIII, s. 2(b), Fla. Const.
5 Ch. 166, F.S.
6
S. 166.021(4), F.S. The charter of a municipality may be amended by a referendum called pursuant to s. 166.031, F.S.
7 Ch. 165, F.S.
8 S. 165.021, F.S.
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Under the Formation Act, a municipal government may be established where no such government
exists only if the Legislature adopts the municipal charter by special act after determining the
appropriate standards have been met.9
Requirements for Municipal Incorporation
Standards for Incorporation
The area proposed for incorporation must meet the following conditions in order to be eligible for
incorporation:10
Be compact, contiguous, and amenable to separate municipal government.
Have a total population, as determined in the latest official state census, special census, or
estimate of population, of at least 1,500 persons in counties with a population of 75,000 or
less, and of at least 5,000 persons in counties with a population of more than 75,000.
Have an average population density of at least 1.5 persons per acre or have extraordinary
conditions requiring the establishment of a municipal corporation with less existing density.
Have a minimum distance of at least two miles from the boundaries of an existing
municipality within the county or have an extraordinary natural boundary that requires
separate municipal governments.
Have a proposed municipal charter that prescribes the form of government and clearly
defines the responsibility for legislative and executive functions, and does not prohibit the
legislative body from exercising its power to levy any tax authorized by the Florida
Constitution or general law.
Have a plan for incorporation honoring existing contracts for solid waste collection services
in the affected areas for the shorter of five years or the remainder of the contract term. 11
Special Act
With certain exceptions, the Legislature has chosen to create the charter for a new municipality only by
special act.12 Special acts for municipal incorporation are initiated as local bills. A local bill is legislation
relating to (or designed to operate only in) a specifically indicated part of the state or purporting to
operate within a classified territory when such classification is not permissible or legal in a general bill.13
To incorporate a municipality, the special act must include a proposed municipal charter prescribing the
form of government and clearly defining the legislative and executive functions of city government. The
special act may not prohibit or limit tax levies otherwise authorized by law.14
Unless conditioned to become effective only upon approval by qualified electors, no special act may be
passed without prior publication of intent to seek such enactment. 15 The notice of intent to file must be
published in the manner provided by general law.16 The Legislature has required special acts creating
municipal incorporations to be subject to a referendum. A bill proposing creation of a municipality is
reviewed based on the statutory standards for municipal incorporation.17
Feasibility Study
9
S. 165.022, F.S. An exception to this principle is the home rule authority of Miami -Dade County, where the board of county
commissioners has been granted the exclusive power to create municipalities within that county through the Florida Constituti on. See s.
165.022, F.S., and Art. VIII, s. 6(e), Fla. Const. Adopted in 1957, the Miami -Dade County Home Rule Charter provides for the creation
of new municipalities at Art. 6, s. 6.05.
10 S. 165.061(1), F.S.
11 In accordance with Art. I, s. 10, Fla. Const.
12 S. 165.041(1)(a), F.S. Municipalities in Miami-Dade County are created only by the Miami-Dade County Commission. See art. VIII, s.
6(e), Fla. Const., incorporating art. VIII, s. 11, Fla. Const. (1885, as amended); s. 165.22, F.S. Conversion of certain inde pendent
special districts to a municipality is by petition and referendum of the district electors. See s. 165.0615, F.S.
13 State ex rel. Landis v. Harris, 163 So. 237, 240 (Fla.1934).
14 S. 165.061(1)(e)2., F.S.
15 Art. III, s. 10, Fla. Const.
16
S. 11.02, F.S., specifies the publication of notice must occur one time, at least 30 days prior to introduction of the local bill in the
Legislature.
17 S. 165.061, F.S.
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A feasibility study and a local bill proposing the municipal government charter must be submitted for
consideration of incorporation. The feasibility study is a survey of the proposed area to be incorporated.
The purpose of the study is to enable the Legislature to determine whether (1) the area meets the
statutory requirements for incorporation, and (2) incorporation is financially feasible. The feasibility
study must be completed and submitted to the Legislature no later than the first Monday after
September 1 of the year before the regular legislative session during which the municipal charter would
be enacted.18
In 1999, the Legislature adopted detailed requirements for the preparation of the required feasibility
study for any area requesting incorporation.19 Specifically, the study must include:
The general location of territory subject to a boundary change and a map of the area that
identifies the proposed change.
The major reasons for proposing the boundary change.
The following characteristics of the area:
o A list of the current land use designations applied to the subject area in the county
comprehensive plan.
o A list of the current county zoning designations applied to the subject area.
o A general statement of present land use characteristics of the area.
o A description of development being proposed for the territory, if any, and a statement of
when actual development is expected to begin, if known.
A list of all public agencies, such as local governments, school districts, and special districts,
whose current boundaries fall within the boundary of the territory proposed for the change or
reorganization.
A list of current services being provided within the proposed incorporation area, including, but
not limited to, water, sewer, solid waste, transportation, public works, law enforcement, fire and
rescue, zoning, street lighting, parks and recreation, and library and cultural facilities, and the
estimated costs for each current service.
A list of proposed services to be provided within the proposed incorporation area, and the
estimated cost of such proposed services.
The names and addresses of three officers or persons submitting the proposal.
Evidence of fiscal capacity and an organizational plan that, at a minimum, includes:
o Existing tax bases, including ad valorem taxable value, utility taxes, sales and use taxes,
franchise taxes, license and permit fees, charges for services, fines and forfeitures, and
other revenue sources, as appropriate.
o A five-year operational plan that, at a minimum, includes proposed staffing, building
acquisition and construction, debt issuance, and budgets.
Data and analysis to support the conclusion that incorporation is necessary and financially
feasible, including population projections and population density calculations, and an
explanation concerning methodologies used for such analysis.
Evaluation of the alternatives available to the area to address its policy concerns.
Evidence that the proposed municipality meets the standards for incorporation in s. 165.061,
F.S.
In counties that have adopted a municipal overlay for municipal incorporation, such information must
also be submitted to the Legislature in the feasibility study. 20
The Proposed Town of Siesta Key21
Siesta Key is located in west Sarasota County and includes residential communities southwest of the
City of Sarasota. Archeological discoveries point to human habitation of Siesta Key long before
18 S. 165.041(1)(b), F.S. For any proposed incorporations to be considered during the 2023 Legislative Session, this deadline fell on
September 5, 2022.
19 S. 165.041, F.S.
20 S. 165.041(1)(c), F.S. Municipal overlays are adopted pursuant to s. 163.3217, F.S.
21
See Sarasota History Alive!, The Siesta Key Beach Pavilion,
http://www.sarasotahistoryalive.com/index.php?src=directory&srctype=detail&refno=1349&category=Articles&view=history&back=histor
y (last visited Mar. 24, 2023).
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European settlement. However, Siesta Key was largely uninhabited during the late 1800s and early
1900s. The Siesta Land Company, for which the area is named after, contributed greatly to the growth
of the community in the early 1900s. Formed in 1907, the Siesta Land Company developed the area by
building hotels and a post office, and provided advertising in order to entice residents and tourists. In
1952, the community living in the key officially adopted the name “Siesta Key”.
The population of Sarasota County experienced a boom after World War II. The county’s population
increased by almost 80% between 1940 and 1960, with its population rising from 16,106 to 76,895
residents in the 20-year period. During this time of growth, Siesta Key and its beaches began to grow in
popularity and global recognition. In 1950, National Geographic Magazine named Siesta Beach as one
of the four most beautiful beaches in the world. With an increase in the use of mosquito and other pest
controls, Siesta Key became a desirable area for residential development and tourism.
Feasibility of the Proposed Town of Siesta Key
This section examines whether the proposed town meets the statutory criteria for the form and
structure of municipal government and demonstrates sufficient fiscal integrity for self-governance.
The proponents of municipal incorporation submitted their feasibility study (2022 Study) addressing
each element required by statute in September 2022.22 Upon review by staff, the study was found to
contain certain deficiencies. Evaluations of the study were also requested from the Department of
Revenue (DOR),23 Department of Economic Opportunity (DEO),24 and Office of Economic and
Demographic Research (EDR).25 The staff’s concerns and evaluation of the 2022 Study were sent to
proponents on October 14, 2022. Correspondence from the proponents addressing these concerns
was received on October 20, 2022.26 The following compiles how each element was presented in the
2022 Study, the evaluations conducted by DOR, DEO, and E