Legal Report, July 2013
General Counsel, Trela J. White
1. Posting of Budget on Municipality’s Official Website
Section 166.241, Florida Statutes, states that a municipality’s tentative budget must be posted on the municipality’s official website at least 2 days before its budget hearings. The final adopted budget must be posted on the municipality’s official website within 30 days after adoption. If the municipality does not operate an official website, then the municipality must, within a reasonable period of time, transmit the tentative budget and final budget to the county administrator who shall post the budgets on the county’s website.
2. Koontz vs. St. John’s River Water Management District
Case Number 11-1447 of the Supreme Court of the United States.
Exactions of Property, Easements or Money In Exchange for Development
Approvals.
The case involved a 14.9-acre property, which consisted primarily of wetlands
and was owned by Coy Koontz, Sr. In the 1990s, Mr. Koontz sought a permit
from the local water management district to develop 3.7 acres of the land. In
exchange for the permit, the water management district demanded that Mr.
Koontz develop only 1 acre of his land and conserve the rest, or pay for
contractors to make improvements to other government-owned wetlands within the
same watershed, but several miles away. Mr. Koontz turned down both options
and the water management district denied the permit. Mr. Koontz then sued.
The case centered on whether the water management district deprived Mr. Koontz
of his private property rights without just compensation when it denied the
permit. The water management district argued that nothing was actually
“taken” from Mr. Koontz. On June 25, 2013, the United States
Supreme Court sided with Mr. Koontz. The Supreme Court held that “[i]t
makes no difference that no property was actually taken in this case.
Extortionate demands for property in the land-use permitting context run afoul
of the Takings Clause not because they take property but because they
impermissibly burden the right not to have property taken without just
compensation.” Following the Koontz decision, local governments
should note that any demands for property, easements or money from a property
owner in exchange for a permit are permitted only where there is a rational
nexus (i.e. logical relationship) and rough proportionality between the
conditions imposed and the projected effects of the development. Governments
are prohibited from going beyond mitigation of project impacts and engaging in
“out and out extortion.” When a government goes too far, either
through a requirement that the applicant give up property or pay money, the
government may be required to pay just compensation for the exaction. In sum,
the “nexus” limitation and “proportionality” test
state that a government cannot demand a concession from a property owner that
is either unrelated to the harm caused, or disproportionate to it.
3. Town of Gulf Stream et al vs. Palm Beach County, and Sharon R. Bock, as Clerk and Comptroller of Palm Beach County, Intervenor
Case No. 502011CA017953XXXXMB. Inspector General Funding Lawsuit.
Fourteen municipalities have sued Palm Beach County challenging the method of
funding for the Inspector General Program. The municipalities contend that
the current funding method is an unlawful tax and invades municipal home rule
budgetary authority. On July 11, 2013, a hearing was held on the
municipalities’ Motion to Dismiss the County’s Amended
Counterclaim. The County’s Amended Counterclaim contained two causes of
action: (1) Count I for breach of ordinance; and (2) Count II for unjust
enrichment. The Trial Court dismissed Count I of the County’s Amended
Counterclaim because the County failed to plead how municipal sovereign
immunity had been waived with respect to the charges for the IG Program. This
dismissal was without prejudice meaning the County can re-file the
Counterclaim within ten (10) days if it is able to allege a waiver of
municipal sovereign immunity. The Trial Court dismissed Count II of the
County’s Amended Counterclaim because the claim for unjust enrichment
was barred by municipal sovereign immunity. This dismissal was with prejudice
meaning the County cannot re-file this Count.
4. City of Orlando and Lasercraft, Inc. vs. Michael Udowychenko, etc.
Case Number SC12-1471.
Red Light Cameras.
This case was reported on at the July 2012 League meeting and the details are
contained in the July Legal Update, which is located on the League’s
website. On November 6, 2012, the Florida Supreme Court accepted jurisdiction
of the case. The parties have filed their respective briefs. No further
action has been taken by the Florida Supreme Court at this time.
5. RLI Live Oak LLC v. South Florida Water Management District
Case Number SC12-2336.
New Heightened Evidentiary Burden To Enforce Regulatory Programs Through
Monetary Penalties.
This case was reported on at the January 2013 League meeting and the details
are contained in the January 2013 Legal Update, which is located on the
League’s website. On March 7, 2013, the Florida Supreme Court accepted
jurisdiction of the case. The initial brief and answer brief have been
filed. No further action has been taken by the Florida Supreme Court at this
time.