HERITAGE SPRINGS
COMMUNITY DEVELOPMENT DISTRICT

AGENDA PACKAGE

MAY 21, 2018

Heritage Springs Community Development District

Inframark, Infrastructure Management Services
210 North University Drive, Suite 702 • Coral Springs, Florida 33071
Telephone: (954) 603-0033 • Fax: (954) 345-1292

May 14, 2018

Board of Supervisors
Heritage Springs Community Development District

Dear Board Members:

The regular meeting of the Board of Supervisors of the Heritage Springs Community Development District will be held Monday, May 21, 2018 at 2:30 P.M. at Heritage Springs Community Clubhouse, 11345 Robert Trent Jones Parkway, New Port Richey, Florida. Following is the advance agenda for the meeting:

1.	Roll Call

2.	Consent Agenda

A.	Approval of the Minutes of the April 16, 2018 Meeting
B.	Approval of the Financial Statements

3.	Public Comment on Agenda Items
4.	Attorney’s Report
5.	Engineer’s Report
6.	Manager’s Report

A.	Distribution of the Proposed Budget for FY 2019
B.	Resolution 2018-3 Approving the Budget and Setting the Public Hearing
C.	Acceptance of the Fiscal Year 2017 Audit
D.	Report on the Number of Registered Voters - 2,115

7.	Maintenance Items
8.	Supervisors’ Requests
9.	Audience Comments

A.	Kelly Smith, Pasco County Commission Candidate

10.	Adjournment

I look forward to seeing you at the meeting. Please call me if you have any questions.

Sincerely,

Andrew P. Mendenhall, PMP Secretary
/ms

cc:	John Vericker	Danny Tyler	Kimberlee DeBosier	Robert Dvorak

Second Order of Business

2A.

1	MINUTES OF MEETING	
2	HERITAGE SPRINGS	
3	COMMUNITY DEVELOPMENT DISTRICT	
4		
5	The regular meeting of the Board of Supervisors of the Heritage Springs	

6	Community Development District was held on Monday, April 16, 2018 at 2:30 p.m. at

7	the Heritage Springs Community Clubhouse, 11345 Robert Trent Jones Parkway, New

8	Port Richey, Florida.

9			
10	Present and constituting a quorum were:		
11			
12	Steve Wertovitch	Chairman	
13	Joe DePompa	Vice Chairman	
14	George Kachavos	Assistant Secretary	
15	Ken McEwan	Assistant Secretary	
16	Les Elwonger	Supervisor	
17			
18	Also present were:		
19			
20	Andrew Mendenhall	District Manager	
21	Robert Dvorak	District Engineer	
22	Residents		
23			

24	The following is a summary of the minutes and actions taken at the April 16, 2018

25	Heritage Springs Board of Supervisors meeting.

26

27	FIRST ORDER OF BUSINESS	Roll Call

28	Mr. Mendenhall called the meeting to order and noted all Board members are in

29	attendance.

30	SECOND ORDER OF BUSINESS	Consent Agenda		
31				
32	A.Approval of the Minutes of the March 19, 2018 Meeting
33	B.Approval of the Financial Statements

34

35	Mr. Wertovitch MOVED to approve the consent agenda	
36	and Mr. Kachavos seconded the motion.	

37

38	   Mr. DePompa addressed carrying the work done on the two street inlets as a

39	maintenance item. He noted they have been posted to R&M - Stormwater System

April 16, 2018	Heritage Springs CDD

40	rather than R&M - Ponds which has a $75,000 budget and what they are tracking

41	it against.

42	oMr. Mendenhall noted it can be reclassified as R&M - Ponds.

43						
44		On  VOICE  vote,  with  all  in  favor,  the  motion  was			
45		approved.				
46	THIRD ORDER OF BUSINESS	Public Comment on Agenda Items		
47				
48	None.				
49	FOURTH ORDER OF BUSINESS	Attorney’s Report		
50				
51	None.				
52	FIFTH ORDER OF BUSINESS	Engineer’s Report		
53				
54	   Mr. Dvorak reported on the following:

55	   Hole 17 improvements.

56	oHe noted the contract terms specified completion within 60 days from

57	execution of the contract which was the first week in March.

58	oDiscussion followed on the project.

59	   Walstone Court

60	oThe ERP application was submitted to SWFWMD and is currently under

61	review.

62	   Robert Trent Jones at Wetland 171-C was discussed.

63	oThe grading plan and proposed path was reviewed.

64	oDiscussion followed on the elevations. Increase by six inches.

65	oMr. Wertovitch reported on an erosion area on 171-F with it being noted

66		Jeremy does not think it is runoff, he believes it is a well/pump issue.	
67		Mr. Dvorak noted he received an email from Mr. McEwan regarding the	

68	assessment of ponds noting he did not recall anything about him doing so.

69	oMr. Wertovitch noted there is an item on the priority list to investigate the

70		long term effects of pond embankment erosion and whether there should	
71		be a scheduled program for armoring them and investigating different	
72		types of repairs.	
73	o	Discussion followed on who should do the lake bank assessments.	

2

	April 16,	2018		Heritage Springs CDD		
74	o		Discussion followed on lake bank options and aesthetics versus repair.		
75	SIXTH ORDER OF BUSINESS	Manager’s Report		
76				
77	A.Resolution 2018-2 – General Election

78	   Mr. Mendenhall reviewed Resolution 2018-2.

79	   Mr. Mendenhall reported the terms for Seats 1 and 2 expire in November and

80	outlined the qualifying process.

81							
82			On  MOTION  by  Mr.  Wertovitch  seconded  by  Mr.			
83			DePompa, with all in favor, Resolution 2018-2 a resolution			
84			of  the  Board  of  Supervisors  of  the  Heritage  Springs			
85			Community Development District confirming the District’s			
86			use  of  the  Pasco  County  Supervisor  of  Elections  to			
87			continue conducting the District’s election of Supervisors			
88			in conjunction with the General Election was adopted.			
89							
90		Mr. Mendenhall outlined the budget process and setting the public hearing.		
91		The easements have been signed and sent to the attorney for review and		
92		recording.				
93	SEVENTH ORDER OF BUSINESS	Maintenance Items		
94				
95	   Mr. DePompa reviewed the 2018 Maintenance Plan.

96	oItems 9 - 13 have been added to the plan and were reviewed.

97	   Discussion followed on:

98	oThe annual cleanup for the area near Pond 171-E.

99	oBioMass estimates for items 11 and 13 were reviewed.

100					
101		Mr. Werovitch MOVED to approve the BioMass proposals			
102		[Item 11] #1776 at $2,543.09 and [Item 13] #1777 at			
103		$3,489.			
104	o				
105		For the Walstone Court berm Mr. Dvorak will provide plans for BioMass.		
106					
107		Mr. Kachavos seconded the motion, with all in favor,			
108		BioMass proposals [Item 11] #1776 at $2,543.09 and [Item			
109		13] #1777 at $3,489 were approved.			
110					

3

April 16, 2018	Heritage Springs CDD

111	   Discussion returned to the Walstone Court project.

112	oThe electrical installation is $9,300.

113	EIGHTH ORDER OF BUSINESS	Supervisors’ Requests		
114				
115	   Mr. Wertovitch addressed:

116	oThe General Election noting Mr. McEwan and Mr. Elwonger need

117	information regarding the dates for qualifying.

118	oThe information is available at PascoVotes.com.

119	oQualifying dates are noon, June 18th through noon, June 22nd.

120	   The next meeting is May 21.  Ms. Kelly Smith, candidate for the Pasco County

121	Commission, has been invited to the meeting.  She would like to listen to them

122	and discuss drainage issues in southwest Pasco County.  It will be reiterated to

123	Ms. Smith that the meeting is not a campaign forum.

124	   Mr. McEwan reported:

125	oBlue Water to do water sampling tomorrow with the Board’s approval.

126	The cost is $90.50 per sample for a total cost of $270.

127	oThe water sampling table was reviewed.

128	oThe Phase 2 Aquatic Planting Program [Ponds 151-D, 141-A, 161-A, 191-

129	E, 191-F, 172-C, 171-E and 172-A] was reviewed.	
130		
131	On MOTION by Mr. Kachavos seconded by Mr. McEwan,	
132	with all in favor, the Blue Water proposal for plantings at	
133	$1,485 and water testing was approved.	
134		

135	   Discussion followed on an RFP for drain cleanouts for east Winding Willow, east

136	end of Garden Lakes and Stag Run Court.

137	oMr. Mendenhall noted Inframark does this service also.

138	oCatch basins and drains were discussed with the consensus being to start

139	with a quote for Winding Willow to clean the catch basin and flush the	
140	pipe.	

141	   Mr. McEwan addressed:

142	oAn RFP for aquatic maintenance noting Blue Water has been doing the

143	maintenance for 12 years.

4

	April 16, 2018	Heritage Springs CDD	
144	o	A handout regarding the lighting in the parking lot and a proposal from	
145		Duke Energy noting it would be an additional $300 per month for the	
146		rental.	
147	o	Discussion followed on transferring the lighting obligation/responsibility	
148		to the HOA with funding from the CDD. Mr. Mendenhall will address it	
149		with Mr. Vericker to see if it is possible to shift the responsibility to the	
150		HOA.	
151	o	Potential  CDD  topics  for  communication  with  the  community  and	
152		providing articles for those topics.	

153	   Mr. Elwonger reported:

154	oHe attended the stormwater task force meeting.  He spoke with Mr.

155	George Thomas is the new county engineer with the Storm Management	
156	Division.  He requested information for the issues the community is	
157	experiencing.  He also spoke with the new Government Affairs Regional	
158	Manager for SWFWMD, Mr. Joel Brown, who also requested details. Mr.	
159	Elwonger will provide them the requested information.	

160	oDiscussion continued on the Anclote River basin.

161	   Discussion followed on the new SWFWMD model.

162	NINTH ORDER OF BUSINESS	Audience Comments		
163				
164	None.				
165						
166	TENTH ORDER OF BUSINESS	Adjournment		
167						
168					
		On  MOTION  by  Mr.  McEwan  seconded  by  Mr.			
169		Wertovitch, with all in favor, the meeting was adjourned.			
170						
171						
172						
173			____________________________		
174			Steve Wertovitch		
175			Chairman		

5

2B.

Heritage Springs

Community Development District

Financial Report

April 30, 2018

Prepared by

HERITAGE SPRINGS

Community Development District

Table of Contents

FINANCIAL STATEMENTS			
Balance Sheet - All Funds	………………………………………………….	Page 1	
Statement of Revenues, Expenditures and Changes in Fund Balances		
General Fund	………………………………………………….	Page 2	
Debt Service Fund(s)	………………………………………………….	Page 3 - 4	
SUPPORTING SCHEDULES			
Non-Ad Valorem Special Assessments	………………………………………………….	Page 5	
Investment and Cash Balance Report	………………………………………………….	Page 6	
SunTrust Bank Reconciliation	………………………………………………….	Page 7	
Check Register	………………………………………………….	Page 8	

Heritage Springs

Community Development District

Financial Statements

(Unaudited)

April 30, 2018

HERITAGE SPRINGS
Community Development District									Governmental Funds		
															
			Balance Sheet										
			April 30, 2018										
						SERIES 2006			SERIES 2008						
			GENERAL			DEBT		DEBT SERVICE						
					SERVICE			FUND			TOTAL		
	ACCOUNT DESCRIPTION			FUND			FUND		(REFUNDING)					
	ASSETS															
	Cash - Checking Account	$	97,438	$	-	$	-	$	97,438			
	Due From Other Funds			-			15,888			10,595			26,483			
	Investments:															
	Certificates of Deposit - 18 Months			100,385			-			-			100,385			
	Money Market Account			1,073,882			-			-			1,073,882			
	Redemption Fund			-			-			1			1			
	Reserve Fund			-			64,938			8,888			73,826			
	Revenue Fund			-			161,560			112,013			273,573			
													
	TOTAL ASSETS	$	1,271,705	$	242,386	$	131,497	$	1,645,588			
																
	LIABILITIES															
	Accounts Payable	$	14,637	$	-	$	-	$	14,637			
	Accrued Expenses			2,900			-			-			2,900			
	Due To Other Funds			26,483			-			-			26,483			
																
	TOTAL LIABILITIES			44,020			-			-			44,020			
	FUND BALANCES															
	Restricted for:															
	Debt Service			-			242,386			131,497			373,883			
	Assigned to:															
	Operating Reserves			85,702			-			-			85,702			
	Reserves - Ponds			793,293			-			-			793,293			
	Unassigned:			348,690			-			-			348,690			
													
	TOTAL FUND BALANCES	$	1,227,685	$	242,386	$	131,497	$	1,601,568			
													
	TOTAL LIABILITIES & FUND BALANCES	$	1,271,705	$	242,386	$	131,497	$	1,645,588			

Page 1

HERITAGE SPRINGS
Community Development District											General Fund		
														
	Statement of Revenues, Expenditures and Changes in Fund Balances						
	For the Period Ending April 30, 2018								
				ANNUAL					YTD ACTUAL						
	ACCOUNT DESCRIPTION			ADOPTED		YEAR TO DATE		AS A % OF			APR-18		
				BUDGET			ACTUAL		ADOPTED BUD			ACTUAL		
	REVENUES														
	Interest - Investments	$	4,000	$	6,311	157.78%	$	986			
	Special Assmnts- Tax Collector			399,428			396,014	99.15%			10,318			
	Special Assmnts- Discounts			(15,977)			(15,078)	94.37%			(3)			
														
	TOTAL REVENUES			387,451			387,247	99.95%			11,301			
	EXPENDITURES														
	Administration														
	P/R-Board of Supervisors			9,000			5,600	62.22%			1,000			
	FICA Taxes			689			428	62.12%			77			
	ProfServ-Dissemination Agent			1,000			-	0.00%			-			
	ProfServ-Engineering			46,000			32,905	71.53%			4,255			
	ProfServ-Legal Services			5,000			2,418	48.36%			-			
	ProfServ-Mgmt Consulting Serv			35,874			20,927	58.33%			2,990			
	ProfServ-Property Appraiser			150			-	0.00%			-			
	ProfServ-Special Assessment			7,500			7,500	100.00%			-			
	ProfServ-Trustee Fees			8,674			4,337	50.00%			-			
	ProfServ-Web Site Maintenance			750			750	100.00%			750			
	Auditing Services			5,500			5,500	100.00%			5,500			
	Postage and Freight			400			184	46.00%			32			
	Insurance - General Liability			5,242			5,011	95.59%			-			
	Printing and Binding			1,250			190	15.20%			28			
	Legal Advertising			2,100			108	5.14%			-			
	Miscellaneous Services			600			326	54.33%			48			
	Misc-Assessmnt Collection Cost			7,989			7,619	95.37%			206			
	Office Supplies			175			121	69.14%			28			
	Annual District Filing Fee			175			175		100.00%			-			
	Total Administration			138,068			94,099	68.15%			14,914			
	Field														
	Contracts-Lakes			40,000			20,300	50.75%			2,900			
	Electricity - Streetlighting			60,000			33,978	56.63%			4,870			
	R&M-Aquascaping			5,000			-	0.00%			-			
	R&M-Ponds			75,000			-	0.00%			-			
	R&M-Stormwater System			15,000			14,466	96.44%			-			
	Misc-Contingency			10,000			-	0.00%			-			
	Reserve - Ponds			44,383			-		0.00%			-			
	Total Field			249,383			68,744		27.57%			7,770			
														
	TOTAL EXPENDITURES			387,451			162,843	42.03%			22,684			
	Net change in fund balance	$	-	$	224,404	0.00%	$	(11,383)			
	FUND BALANCE, BEGINNING (OCT 1, 2017)			1,003,281			1,003,281								
	FUND BALANCE, ENDING	$	1,003,281	$	1,227,685								

Page 2

HERITAGE SPRINGS
Community Development District	Series 2006 Debt Service Fund		

Statement of Revenues, Expenditures and Changes in Fund Balances

For the Period Ending April 30, 2018

			ANNUAL					YTD ACTUAL					
ACCOUNT DESCRIPTION			ADOPTED		YEAR TO DATE		AS A % OF			APR-18		
			BUDGET			ACTUAL		ADOPTED BUD			ACTUAL		
REVENUES													
Interest - Investments	$	-	$	191	0.00%	$	39		
Special Assmnts- Tax Collector			141,027			139,821	99.14%			3,643		
Special Assmnts- Discounts			(5,641)			(5,324)	94.38%			(1)		
TOTAL REVENUES			135,386			134,688	99.48%			3,681		
EXPENDITURES													
Administration													
Misc-Assessmnt Collection Cost			2,821			2,690		95.36%			73		
Total Administration			2,821			2,690	95.36%			73		
Debt Service													
Debt Retirement Series A			85,000			-	0.00%			-		
Interest Expense Series A			46,988			23,494		50.00%			-		
Total Debt Service			131,988			23,494		17.80%			-		
												
TOTAL EXPENDITURES			134,809			26,184	19.42%			73		
Excess (deficiency) of revenues													
Over (under) expenditures			577			108,504	0.00%			3,608		
OTHER FINANCING SOURCES (USES)													
Contribution to (Use of) Fund Balance			577			-	0.00%			-		
												
TOTAL FINANCING SOURCES (USES)			577			-	0.00%			-		
Net change in fund balance	$	577	$	108,504	0.00%	$	3,608		
FUND BALANCE, BEGINNING (OCT 1, 2017)			133,882			133,882							
FUND BALANCE, ENDING	$	134,459	$	242,386							

Page 3

HERITAGE SPRINGS
Community Development District	Series 2008 Debt Service Fund (Refunding)		

Statement of Revenues, Expenditures and Changes in Fund Balances

For the Period Ending April 30, 2018

			ANNUAL					YTD ACTUAL					
ACCOUNT DESCRIPTION			ADOPTED		YEAR TO DATE		AS A % OF			APR-18		
			BUDGET			ACTUAL		ADOPTED BUD			ACTUAL		
REVENUES													
Interest - Investments	$	-	$	120	0.00%	$	28		
Special Assmnts- Tax Collector			94,045			93,241	99.15%			2,429		
Special Assmnts- Discounts			(3,762)			(3,550)	94.36%			(1)		
TOTAL REVENUES			90,283			89,811	99.48%			2,456		
EXPENDITURES													
Administration													
Misc-Assessmnt Collection Cost			1,881			1,794		95.37%			49		
Total Administration			1,881			1,794	95.37%			49		
Debt Service													
Principal Debt Retirement			75,000			-	0.00%			-		
Interest Expense			15,026			7,513		50.00%			-		
Total Debt Service			90,026			7,513		8.35%			-		
												
TOTAL EXPENDITURES			91,907			9,307	10.13%			49		
Excess (deficiency) of revenues													
Over (under) expenditures			(1,624)			80,504	0.00%			2,407		
OTHER FINANCING SOURCES (USES)													
Contribution to (Use of) Fund Balance			(1,624)			-	0.00%			-		
												
TOTAL FINANCING SOURCES (USES)			(1,624)			-	0.00%			-		
Net change in fund balance	$	(1,624)	$	80,504	0.00%	$	2,407		
FUND BALANCE, BEGINNING (OCT 1, 2017)			50,993			50,993							
FUND BALANCE, ENDING	$	49,369	$	131,497							

Page 4

Heritage Springs

Community Development District

Supporting Schedules

April 30, 2018

HERITAGE SPRINGS

Community Development District

Non-Ad Valorem Special Assessments - Pasco County Tax Collector

(Monthly Collection Distributions)

For the Fiscal Year Ending September 30, 2018

										ALLOCATION BY FUND		
				Discount /				Gross							
Date	Net Amount		(Penalties)	Collection		Amount		General	Series 2006	Series 2008	
Received		Received		Amount		Costs		Received		Fund	Debt Service	Debt Service	
Assessments Levied					$	634,501	$	399,429	$	141,027	$	94,045	
Allocation %								100%		63%		22%		15%	
11/10/17	$	14,484	$	783	$	296	$	15,563	$	9,797	$	3,459	$	2,307	
11/22/17		117,331		4,988		2,395		124,714		78,509		27,719		18,485	
12/05/17		138,345		5,879		2,823		147,047		92,569		32,683		21,795	
12/08/17		88,473		3,761		1,806		94,040		59,199		20,902		13,938	
12/15/17		162,910		6,926		3,325		173,161		109,007		38,487		25,666	
12/29/17		17,550		614		358		18,522		11,660		4,117		2,745	
01/11/18		19,990		631		408		21,028		13,238		4,674		3,117	
02/13/18		14,396		323		294		15,013		9,451		3,337		2,225	
03/13/18		3,488		41		71		3,600		2,266		800		534	
04/12/18		16,057		5		328		16,390		10,318		3,643		2,429	
															
TOTAL	$	593,022	$	23,952	$	12,102	$	629,077	$	396,015	$	139,821	$	93,241	

% COLLECTED							99%		99%		99%		99%	
													
TOTAL OUTSTANDING					$	5,424	$	3,414	$	1,206	$	804	

Report Date: 5/8/2018	Page 5

HERITAGE SPRINGS

Community Development District

Cash and Investment Report

April 30, 2018

General Fund

Account Name	Bank Name	Investment Type	Maturity	Yield		Balance	
Checking Acct - Operating	SunTrust Bank	Public Funds NOW	n/a	1.00%	$	97,438	
CD #4194	BankUnited	18 mo Fixed Rate CD	12/01/18	1.20%		100,385	
Public Funds Money Market	Bank United	MMA - #0143	n/a	1.00%		1,073,882	
				GF Total	$	1,271,705	

Debt Service Funds

Account Name	Bank Name	Investment Type		Maturity	Yield		Balance		
Series 2006 Reserve Fund	US Bank	US Bank Open-End CP	10/1/2018	0.00%	$	64,938		
Series 2006 Revenue Fund	US Bank	US Bank Open-End CP	10/1/2018	0.00%		161,560		
					DS 202 subtotal		226,498		
Series 2008A	Redemption	US Bank	US Bank Open-End CP	10/1/2018	0.00%		1		
Series 2008A	Debt Svc Rsrv	US Bank	Government Obligation Fund		n/a	0.00%		8,888		
Series 2008A	Revenue Fund	US Bank	US Bank Open-End CP	10/1/2018	0.00%		112,013		
					DS 203 subtotal		120,902		
						DS Total	$	347,400		
				Total Cash & Investments				
					$	1,619,105		

Report Date: 5/8/2018	Page 6

Heritage Springs CDD

Bank Reconciliation

Bank Account No.	1900	SunTrust Bank N.A. - GF	
Statement No.	04-18		
Statement Date	4/30/2018		

G/L Balance (LCY)	97,438.45	Statement Balance	97,451.24					
	G/L Balance	97,438.45	Outstanding Deposits	0.00					
Positive Adjustments	0.00	Subtotal						
			97,451.24					

	Subtotal	97,438.45	Outstanding Checks	12.79					
Negative Adjustments	0.00	Differences	0.00					
Ending G/L Balance		Ending Balance						
									
	97,438.45		97,438.45					
	Difference	0.00							
Posting	Document	Document	Description	Amount	Cleared	Difference		
Date	Type	No.			Amount			
Outstanding Checks									
4/26/2018	Payment	002070	FEDEX	12.79	0.00	12.79		
Total Outstanding Checks......................................................................................................................		12.79		12.79		

Page 7

HERITAGE SPRINGS
Community Development District

Payment Register by Bank Account

For the Period from 4/1/2018 to 4/30/2018 (Sorted by Check / ACH No.)

Pymt	Check /	Date	Payee	Payee	Invoice No.	Payment Description	Invoice / GL Description	G/L Account #	Amount		
Type	ACH No.		Type						Paid		

SUNTRUST BANK N.A. - GF - (ACCT# XXXXX1900)

Check	002061	04/02/18	Vendor	JMT	23-116240	1/28-2/24/18 GEN ENGINEER	ProfServ-Engineering	001-531013-51501	$5,450.00		
Check	002062	04/05/18	Vendor	FEDEX	6-123-13690	SERVICE 3/12/18	Postage and Freight	001-541006-51301	$12.73		
Check	002062	04/05/18	Vendor	FEDEX	6-130-78646	SERVICES 3/20/2018	Postage and Freight	001-541006-51301	$11.21		
Check	002063	04/17/18	Employee	STEVEN WERTOVITCH	PAYROLL	April 17, 2018 Payroll Posting			$184.70		
Check	002064	04/17/18	Employee	JOSEPH V. DE POMPA	PAYROLL	April 17, 2018 Payroll Posting			$184.70		
Check	002065	04/17/18	Employee	GEORGE KACHAVOS	PAYROLL	April 17, 2018 Payroll Posting			$184.70		
Check	002066	04/17/18	Employee	KENNETH MCEWAN	PAYROLL	April 17, 2018 Payroll Posting			$184.70		
Check	002067	04/17/18	Employee	LESLIE C. ELWONGER	PAYROLL	April 17, 2018 Payroll Posting			$154.70		
Check	002068	04/18/18	Vendor	BLUE WATER AQUATICS, INC	23624	3/16/18 AQUATIC SERVICE	Contracts-Lakes	001-534084-53901	$2,900.00		
Check	002069	04/23/18	Vendor	INFRAMARK, LLC	29532	4/18 MANAGEMENT FEES	ProfServ-Mgmt Consulting Serv	001-531027-51201	$2,989.50		
Check	002069	04/23/18	Vendor	INFRAMARK, LLC	29532	4/18 MANAGEMENT FEES	Postage and Freight	001-541006-51301	$7.99		
Check	002069	04/23/18	Vendor	INFRAMARK, LLC	29532	4/18 MANAGEMENT FEES	Printing and Binding	001-547001-51301	$28.20		
Check	002069	04/23/18	Vendor	INFRAMARK, LLC	29532	4/18 MANAGEMENT FEES	ProfServ-Web Site Maintenance	001-531094-51301	$750.00		
Check	002069	04/23/18	Vendor	INFRAMARK, LLC	29532	4/18 MANAGEMENT FEES	Office Supplies	001-551002-51301	$27.50		
Check	002070	04/26/18	Vendor	FEDEX	6-153-76793	SERVICES 4/09/2018	Postage and Freight	001-541006-51301	$12.79		
ACH	DD117	04/05/18	Vendor	DUKE ENERGY - ACH	031418-45492 ACH	2/12-3/14/18 ELEC>ACH 4/6	Electricity - Streetlighting	001-543013-53901	$4,870.39		
								Account Total			
									$17,953.81		

								Total Amount Paid	$17,953.81		
											
				Total Amount Paid - Breakdown by Fund							
				Fund	Amount						
				General Fund Fund - 001	17,953.81						
											
				Total	17,953.81						

Page 8

Sixth Order of Business

6A.

HERITAGE SPRINGS

Community Development District

Annual Operating and Debt Service Budget

Fiscal Year 2019

Version 1 - Proposed Budget

(Printed on 5/8/2018)

Prepared by:

HERITAGE SPRINGS

Community Development District

Table of Contents

	Page #	
OPERATING BUDGET		
General Fund		
Summary of Revenues, Expenditures and Changes in Fund Balances ……………………………..	1	
Budget Narrative ……………………………………………………………………………………………	2-4	
Exhibit A - Allocation of Fund Balances ………………………………………………………………….	5	
DEBT SERVICE BUDGETS		
Series 2006		
Summary of Revenues, Expenditures and Changes in Fund Balances ……………………………..	6	
Amortization Schedule ……………………………………………………………………………………..	7	
Series 2008		
Summary of Revenues, Expenditures and Changes in Fund Balances ……………………………..	8	
Amortization Schedule ……………………………………………………………………………………..	9	
SUPPORTING BUDGET SCHEDULES		
2018-2019 Non-Ad Valorem Assessment Summary ………………………………………………………..	10	

Heritage Springs

Community Development District

Operating Budget

Fiscal Year 2019

HERITAGE SPRINGS

Community Development District															General Fund	
	Summary of Revenues, Expenditures and Changes in Fund Balances					
					Fiscal Year 2019 Proposed Budget										
								ADOPTED			ACTUAL	PROJECTED			TOTAL			ANNUAL	
					ACTUAL			BUDGET			THRU		MAY -		PROJECTED			BUDGET	
	ACCOUNT DESCRIPTION				FY 2017			FY 2018			APR-2018				SEP-2018			FY 2018			FY 2019		
	REVENUES																				
	Interest - Investments	$	8,223	$	4,000	$	6,311			$	4,508	$	10,819	$	4,000		
	Special Assmnts- Tax Collector		399,429			399,428			396,014				3,415			399,429			399,429		
	Special Assmnts- Discounts		(14,921)			(15,977)			(15,078)				-			(15,078)			(15,977)		
																					
	TOTAL REVENUES		392,731			387,451			387,247				7,923			395,170			387,452		
	EXPENDITURES																				
	Administrative																				
	P/R-Board of Supervisors		6,600			9,000			5,600				3,000			8,600			9,000		
	FICA Taxes		505			689			428				230			658			689		
	ProfServ-Dissemination Agent		1,000			1,000			-				1,000			1,000			1,000		
	ProfServ-Engineering		51,860			46,000			32,905				21,000			53,905			55,000		
	ProfServ-Legal Services		4,072			5,000			2,418				2,418			4,836			5,000		
	ProfServ-Mgmt Consulting Serv		35,874			35,874			20,927				14,948			35,874			35,874		
	ProfServ-Property Appraiser		150			150			-				150			150			150		
	ProfServ-Special Assessment		7,500			7,500			7,500				-			7,500			7,500		
	ProfServ-Trustee		8,674			8,674			4,337				4,337			8,674			8,674		
	ProfServ-Web Site Maintenance		750			750			750				-			750			750		
	Auditing Services		5,546			5,500			5,500				-			5,500			5,500		
	Postage and Freight		211			400			184				131			315			400		
	Insurance - General Liability		4,765			5,242			5,011				-			5,011			5,512		
	Printing and Binding		333			1,250			190				750			940			1,000		
	Legal Advertising		1,705			2,100			108				1,597			1,705			1,800		
	Miscellaneous Services		586			600			326				240			566			600		
	Misc-Assessmnt Collection Cost		7,103			7,989			7,619				68			7,687			7,989		
	Office Supplies		182			175			121				66			187			175		
	Annual District Filing Fee		175			175			175				-			175			175		
																						
	Total Administrative			137,591			138,068			94,099				49,935			144,033			146,788		
	Field																				
	Contracts-Lakes		34,800			40,000			20,300				14,500			34,800			40,000		
	Electricity - Streetlighting		53,376			60,000			33,978				24,372			58,350			60,000		
	R&M-Aquascaping		4,088			5,000			-				5,000			5,000			5,000		
	R&M-Ponds		118,457			75,000			-				75,000			75,000			75,000		
	R&M-Stormwater System		36,514			15,000			14,466				534			15,000			15,000		
	Misc-Contingency		247			10,000			-				10,000			10,000			10,000		
	Reserve - Ponds		-			44,383			-				-			-			35,664		
																						
	Total Field			247,482			249,383			68,744				129,406			198,150			240,664		
																					
	TOTAL EXPENDITURES		385,073			387,451			162,843				179,340			342,182			387,452		
	Net change in fund balance			7,658			-			224,404				(171,418)			52,987			-		
	FUND BALANCE, BEGINNING		995,623			1,003,281			1,003,281				-			1,003,281			1,056,268		
	FUND BALANCE, ENDING	$ 1,003,281	$ 1,003,281	$ 1,227,685			$	(171,418)	$ 1,056,268	$ 1,056,268		

Annual Operating and Debt Service Budget	Page 1		
Fiscal Year 2019			

HERITAGE SPRINGS

Community Development District			General Fund		
	Exhibit "A"						
	Allocation of Fund Balances				
	AVAILABLE FUNDS						
				Amount		
	Beginning Fund Balance - Fiscal Year 2019	$	1,056,268			
	Net Change in Fund Balance - Fiscal Year 2019			-			
	Reserves - Fiscal Year 2019 Additions			35,664			
							
	Total Funds Available (Estimated) - 9/30/2019			1,091,932			
	ALLOCATION OF AVAILABLE FUNDS						
	Assigned Fund Balance			87,947  (1)		
	Operating Reserve					
	Reserves - Ponds (FY09)	25,000					
	Reserves - Ponds (FY10)	51,333					
	Reserves - Ponds (FY11)	46,390					
	Reserves - Ponds (May 2012 Board Motion)	350,000					
	Reserves - Ponds (FY12)	59,293					
	Reserves - Ponds (FY13)	59,775					
	Reserves - Ponds (FY14)	67,411					
	Reserves - Ponds (FY15)	45,515					
	Reserves - Ponds (FY16)	46,933					
	Reserves - Ponds (FY17)	41,643					
	Reserves - Ponds (FY18-Projected)	44,383					
	Reserves - Ponds (FY19-Proposed)	35,664		873,340			
							
		Subtotal	961,287			
							
	Total Allocation of Available Funds			961,287			
							
	Total Unassigned (undesignated) Cash	$	130,645			

Notes

(1) Represents approximately 3 months of operating expenditures

Annual Operating and Debt Service Budget	Page 2		
Fiscal Year 2019			

Heritage Springs
Community Development District	General Fund

Budget Narrative

Fiscal Year 2019

REVENUES:

Interest Income - Investments
The District earns interest on the monthly average collected balance for their operating accounts.

Special Assessments –Tax Collector

The District will levy a non-ad valorem special assessment on all platted lots within Heritage Springs Community Development District in order to pay operating and maintenance expenses for the Fiscal Year.

Special Assessment – Discount

Per Section 197.162, Florida Statutes, discounts are allowed for early payment of assessments. The budgeted amount for the fiscal year is calculated at 4% of the anticipated Non-Ad Valorem assessments.

________________________

EXPENDITURES:

Administrative:

P/R- Board of Supervisors & FICA Taxes

Chapter 190 of the Florida Statutes allows for a member of the Board of Supervisors to be compensated $200 per meeting, not to exceed $4,800 per year per supervisor.

Profserv-Dissemination Agent

The District is required by the Security and Exchange Commission to comply with Rule 15c2-12(b) (5), which relates to additional reporting requirements for unrelated bond issues. The District has contracted for this service and the amount is based on the contracted amount.

Profserv - Engineering

The District's engineer will be providing general engineering services to the District, i.e. attendance and preparation for monthly board meetings, review invoices, etc.

Profserv – Legal Services

The District's legal counsel will be providing general legal services to the District, i.e. attendance and preparation for monthly meetings, review operating & maintenance contracts, etc.

Profserv - Management Consulting Services

The District receives Management, Accounting and Administrative services as part of a Management Agreement with Inframark.

Profserv - Property Appraiser

The District contracts with the Pasco County Property Appraiser for the purpose of placing the District’s non-ad valorem tax assessments on the Notice of Proposed Property Taxes, thereby allowing the Tax

Collector to collect such assessments. The District will fund the Property Appraiser’s general budget in the amount of $150 for the annual inclusion of Notice of Proposed Property Taxes.

Annual Operating and Debt Service Budget	Page 3	
Fiscal Year 2019		

Heritage Springs
Community Development District	General Fund

Budget Narrative

Fiscal Year 2019

Profserv - Special Assessment

The District has contracted with Inframark to prepare the assessment roll for the District. This includes collection of prepaid assessments, maintaining the assessment roll and annually levying a non- ad valorem assessment for operating and debt service expenses.

Profserv - Trustee

The District issued Series 2006 & 2008 of Special Assessment Bonds that are deposited with a Trustee to handle all trustee matters. The annual trustee fees are based on standard fees charged plus any out of pockets expenses.

Profserv – Web Site Maintenance

The cost of web hosting services and regular maintenance of the District’s website performed by Inframark.

Auditing Services

The District is required annually to conduct an audit of its financial records by an Independent Certified Public Accounting Firm. The budget is based on the current engagement fee with Grau & Associates CPA.

Postage & Freight
Represents the cost of mailing agenda packages, overnight deliveries, correspondence, etc.

Insurance – General Liability

The District's General Liability & Public Officials Liability Insurance policy is with The Florida League of Cities, Inc. The Florida League of Cities, Inc. specializes in providing insurance coverage to governmental agencies. A 10% increase is projected for FY19.

Printing & Binding
Printing and Binding agenda packages for board meetings, printing of computerized checks, etc.

Legal Advertising

The District is required to advertise various notices for monthly board meetings, public hearings etc in a newspaper of general circulation.

Miscellaneous Services
Bank charges and any other miscellaneous expenses that arise during the year.

Misc. Assessment Collection Fee

The District reimburses the Pasco County Tax Collector for necessary administrative costs. Per the Florida Statutes, administrative costs shall include, but not be limited to, those costs associated with personnel, forms, supplies, data processing, computer equipment, postage, and programming. The District also compensates the Tax Collector for the actual cost of collection or 2% on the amount of special assessments collected and remitted, whichever is greater. The budget for collection costs was based on a maximum of 2% of the anticipated assessment collections.

Office Supplies
Miscellaneous office supplies required for the preparation of agendas.

Annual District Filing Fee

The District is required to pay an annual fee of $175 to the Department of Economic Opportunity Division of Community Development.

Annual Operating and Debt Service Budget	Page 4	
Fiscal Year 2019		

Heritage Springs
Community Development District	General Fund

Budget Narrative

Fiscal Year 2019

Maintenance:

Contracts-Lakes

The District has contracted Blue Water Aquatics, Inc. to perform lake maintenance services within the District. The estimated cost for these services is $2,900 per month. The remainder is to be used for other incurred costs that fall within this category.

Electricity – Streetlighting
The District incurs electrical expenses which are paid to Duke Energy.

R&M - Aquascaping
Installation and maintenance of Aquatic Plants.

R&M - Ponds
Costs associated with the maintenance and repair of ponds throughout the district.

R&M – Stormwater System
Costs associated with the maintenance and repair of storm water system throughout the district.

Misc. - Contingency
This category is for any unexpected expenditures that the District may incur during the Fiscal Year.

Reserve - Ponds

The District will restrict a portion of the fund balance for future repairs & maintenance deemed necessary and approved by the board.

Annual Operating and Debt Service Budget	Page 5	
Fiscal Year 2019		

Heritage Springs

Community Development District

Debt Service Budgets

Fiscal Year 2019

HERITAGE SPRINGS

Community Development District	2006 Debt Service Fund

Summary of Revenues, Expenditures and Changes in Fund Balances

Fiscal Year 2019 Proposed Budget

				ADOPTED		ACTUAL		PROJECTED		TOTAL		ANNUAL	
		ACTUAL		BUDGET		THRU		MAY -		PROJECTED		BUDGET	
ACCOUNT DESCRIPTION		FY 2017		FY 2018		APR-2018		SEP-2018		FY 2018		FY 2019	

REVENUES

Interest - Investments	$	255	$	-	$	191	$	100	$	291	$	-		
Special Assmnts- Tax Collector		141,027			141,027			139,821			1,206			141,027			141,027		
Special Assmnts- Discounts		(5,268)			(5,641)			(5,324)			-			(5,324)			(5,641)		
																			
TOTAL REVENUES		136,014			135,386			134,688			1,306			135,994			135,386		
EXPENDITURES																			
Administrative																			
Misc-Assessmnt Collection Cost		2,508			2,821			2,690			24			2,714			2,821		
																			
Total Administrative		2,508			2,821			2,690			24			2,714			2,821		
Debt Service																			
Debt Retirement Series A		80,000			85,000			-			85,000			85,000			85,000		
Prepayments Series A		5,000			-			-			-			-			-		
Interest Expense Series A		51,319			46,988			23,494			23,494			46,988			42,525		
Total Debt Service																			
		136,319			131,988			23,494			108,494			131,988			127,525		
																			
TOTAL EXPENDITURES		138,827			134,809			26,184			108,518			134,702			130,346		
Excess (deficiency) of revenues																			
Over (under) expenditures		(2,813)			577			108,504			(107,212)			1,292			5,041		
OTHER FINANCING SOURCES (USES)																			
Contribution to (Use of) Fund Balance		-			577			-			-			-			5,041		
																			
TOTAL OTHER SOURCES (USES)		-			577			-			-			-			5,041		
Net change in fund balance		(2,813)			577			108,504			(107,212)			1,292			5,041		
FUND BALANCE, BEGINNING		136,695			133,882			133,882			-			133,882			135,174		
FUND BALANCE, ENDING	$	133,882	$	134,459	$	242,386	$	(107,212)	$	135,174	$	140,215		

Annual Operating and Debt Service Budget	Page 6		
Fiscal Year 2019			

HERITAGE SPRINGS

Community Development District

Debt Service Amortization Schedule

Series 2006A Capital Improvement Revenue Bonds

		Regular		Principal		Interest	Outstanding	
	Date	Principal		Prepayments		Expense	Principal	

	11/1/2018				$21,262.50	$810,000.00	
	5/1/2019	$85,000.00			$21,262.50	$725,000.00	
	11/1/2019				$19,031.25	$725,000.00	
	5/1/2020	$90,000.00			$19,031.25	$635,000.00	
	11/1/2020				$16,668.75	$635,000.00	
	5/1/2021	$95,000.00			$16,668.75	$540,000.00	
	11/1/2021				$14,175.00	$540,000.00	
	5/1/2022	$100,000.00			$14,175.00	$440,000.00	
	11/1/2022				$11,550.00	$440,000.00	
	5/1/2023	$105,000.00			$11,550.00	$335,000.00	
	11/1/2023				$8,793.75	$335,000.00	
	5/1/2024	$115,000.00			$8,793.75	$220,000.00	
	11/1/2024				$5,775.00	$220,000.00	
	5/1/2025	$115,000.00			$5,775.00	$105,000.00	
	11/1/2025				$2,756.25	$105,000.00	
	5/1/2026	$105,000.00			$2,756.25	$0.00	
								
	totals	$810,000.00	$0.00	$200,025.00		

Annual Operating and Debt Service Budget	Page 7		
Fiscal Year 2019			

HERITAGE SPRINGS

Community Development District							2008 Debt Service (Refunding) Fund		
	Summary of Revenues, Expenditures and Changes in Fund Balances						
		Fiscal Year 2019 Proposed Budget												
							ADOPTED		ACTUAL		PROJECTED			TOTAL		ANNUAL		
				ACTUAL		BUDGET			THRU			MAY -		PROJECTED		BUDGET		
	ACCOUNT DESCRIPTION			FY 2017		FY 2018		APR-2018		SEP-2018			FY 2018		FY 2019		
	REVENUES																						
	Interest - Investments	$	125	$	-	$	120	$	75	$	195	$	-			
	Special Assmnts- Tax Collector				94,045			94,045			93,241			804	$	94,045			94,045			
	Special Assmnts- Discounts				(3,513)			(3,762)			(3,550)			-			(3,550)			(3,762)			
																							
	TOTAL REVENUES				90,657			90,283			89,811			879			90,690			90,284			
	EXPENDITURES																						
	Administrative																						
	Misc-Assessmnt Collection Cost				1,672			1,881			1,794			16			1,810			1,881			
																							
	Total Administrative				1,672			1,881			1,794			16			1,810			1,881			
	Debt Service																						
	Principal Debt Retirement				70,000			75,000			-			75,000			75,000			75,000			
	Interest Expense				18,365			15,026			7,513			7,513			15,026			11,448			
	Total Debt Service																						
					88,365			90,026			7,513			82,513			90,026			86,448			
																							
	TOTAL EXPENDITURES				90,037			91,907			9,307			82,529			91,836			88,329			
	Excess (deficiency) of revenues																						
	Over (under) expenditures				620			(1,624)			80,504			(81,650)			(1,146)			1,955			
	OTHER FINANCING SOURCES (USES)																						
	Contribution to (Use of) Fund Balance				-			(1,624)			-			-			-			1,955			
																							
	TOTAL OTHER SOURCES (USES)				-			(1,624)			-			-			-			1,955			
	Net change in fund balance				620			(1,624)			80,504			(81,650)			(1,146)			1,955			
	FUND BALANCE, BEGINNING				50,373			50,993			50,993			-			50,993			49,847			
	FUND BALANCE, ENDING	$	50,993	$	49,369	$	131,497	$	(81,650)	$	49,847	$	51,802			

Annual Operating and Debt Service Budget	Page 8		
Fiscal Year 2019			

HERITAGE SPRINGS

Community Development District

Debt Service Amortization Schedule

Series 2008 Capital Improvement Revenue Refunding Bonds

	Regular		Principal		Interest	Outstanding	
Date	Principal		Prepayments		Expense	Principal	

11/1/2018				$5,724.00	$240,000.00	
5/1/2019	$75,000.00			$5,724.00	$165,000.00	
11/1/2019				$3,935.25	$165,000.00	
5/1/2020	$80,000.00			$3,935.25	$85,000.00	
11/1/2020				$2,027.25	$85,000.00	
5/1/2021	$85,000.00			$2,027.25	$0.00	
							
totals	$240,000.00	$0.00	$23,373.00		

Annual Operating and Debt Service Budget

Fiscal Year 2019

Page 9

Heritage Springs

Community Development District

Supporting Budget Schedules

Fiscal Year 2019

HERITAGE SPRINGS

Community Development District

Comparison of Assessment Rates

Fiscal Year 2019 vs. Fiscal Year 2018

Bond	General Fund	Debt Service	Total Assessments per Unit	Units							
Series	FY 2019	FY 2018 Percent	FY 2019	FY 2018	Percent	FY 2019	FY 2018	Percent	On-Roll		Prepaid	GF	DS		
			Change			Change			Change			Units	Total	Total		
2006	$298.75	$298.75	0.0%	$198.63	$198.63	0.0%	$497.38	$497.38	0.0%	739	29	$220,777	$141,027			
2008	$298.75	$298.75	0.0%	$168.54	$168.54	0.0%	$467.29	$467.29	0.0%	598		40	$178,653	$94,045			
										1,337	69	$399,429	$235,073			

Annual Operating and Debt Service Budget	Page 10		
Fiscal Year 2019			

6B.

RESOLUTION 2018-3

A RESOLUTION OF THE BOARD OF SUPERVISORS OF THE HERITAGE SPRINGS COMMUNITY DEVELOPMENT DISTRICT APPROVING THE BUDGET FOR FISCAL YEAR 2019 AND SETTING A PUBLIC HEARING THEREON PURSUANT TO FLORIDA LAW

WHEREAS, the District Manager has heretofore prepared and submitted to the Board a proposed operating and/or debt service budget for Fiscal Year 2019; a copy of which is attached hereto, and

WHEREAS, the Board of Supervisors has considered said proposed budget and desires to set the required public hearing thereon;

NOW, THEREFORE BE IT RESOLVED BY THE BOARD OF

SUPERVISORS OF THE HERITAGE SPRINGS COMMUNITY
DEVELOPMENT DISTRICT;

1.	The budget proposed by the District Manager for Fiscal Year 2019 is hereby approved as the basis for conducting a public hearing to adopt said budget.

2.	A public hearing on said approved budget is hereby declared and set for the following date, hour and place:

Date:	August 20, 2018

Hour:	2:30 p.m.

Place:	Heritage Springs Community Clubhouse
11345 Robert Trent Jones Parkway
New Port Richey, Florida

3.	Notice of this public hearing shall be published in the manner prescribed in Florida Law.

4.	In accordance with Section 189.016, Florida Statutes, the District’s Secretary is further directed to post this Proposed Budget on the District’s website at least two days before the Budget Hearing date, as set forth in Section 2.

Adopted this 21st day of May, 2018.

Steve Wertovitch

Chairman

Andrew P. Mendenhall, PMP
Secretary

6C.

HERITAGE SPRINGS

COMMUNITY DEVELOPMENT DISTRICT

PASCO COUNTY, FLORIDA
FINANCIAL REPORT

FOR THE FISCAL YEAR ENDED

SEPTEMBER 30, 2017

HERITAGE SPRINGS COMMUNITY DEVELOPMENT DISTRICT
PASCO COUNTY, FLORIDA			
TABLE OF CONTENTS			
	Page		
INDEPENDENT AUDITOR’S REPORT	1- 2		
MANAGEMENT’S DISCUSSION AND ANALYSIS	3- 6		
BASIC FINANCIAL STATEMENTS			
Government-Wide Financial Statements:			
Statement of Net Position	7		
Statement of Activities	8		
Fund Financial Statements:			
Balance Sheet – Governmental Funds	9		
Reconciliation of the Balance Sheet – Governmental Funds to the			
Statement of Net Position	10		
Statement of Revenues, Expenditures and Changes in Fund Balances –			
Governmental Funds	11		
Reconciliation of the Statement of Revenues, Expenditures and Changes in			
Fund Balances of Governmental Funds to the Statement of Activities	12		
Notes to the Financial Statements	13- 20		
REQUIRED SUPPLEMENTARY INFORMATION			
Schedule of Revenues, Expenditures and Changes in Fund Balance –			
Budget and Actual – General Fund	21		
Notes to Required Supplementary Information	22		
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL			
REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT			
OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH	23- 24		
GOVERNMENT AUDITING STANDARDS			
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE WITH THE REQUIREMENTS			
OF SECTION 218.415, FLORIDA STATUTES, REQUIRED BY RULE 10.556(10)			
OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA	25		
MANAGEMENT LETTER PURSUANT TO THE RULES OF THE AUDITOR GENERAL			
OF THE STATE OF FLORIDA	26- 27		

	2700 North Military Trail ▪ Suite 350		
Grau & Associates	Boca Raton, Florida  33431		
	(561) 994-9299 ▪ (800) 299-4728		
			
	Fax (561) 994-5823		
CERTIFIED PUBLIC ACCOUNTANTS	www.graucpa.com		
INDEPENDENT AUDITOR’S REPORT			
To the Board of Supervisors			
Heritage Springs Community Development District			
Pasco County, Florida			

Report on the Financial Statements

We have audited the accompanying financial statements of the governmental activities and each major fund of Heritage Springs Community Development District, Pasco County, Florida (“District”) as of and for the fiscal year ended September 30, 2017, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and each major fund of the District as of September 30, 2017, and the respective changes in financial position thereof for the fiscal year then ended in accordance with accounting principles generally accepted in the United States of America.

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and budgetary comparison information be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated May 4, 2018, on our consideration of the District’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District’s internal control over financial reporting and compliance.

Report on Other Legal and Regulatory Requirements

We have also issued our report dated May 4, 2018, on our consideration of the District’s compliance with the requirements of Section 218.415, Florida Statutes, as required by Rule 10.556(10) of the Auditor General of the State of Florida. The purpose of that report is to provide an opinion based on our examination conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants.

May 4, 2018

2

MANAGEMENT’S DISCUSSION AND ANALYSIS

Our discussion and analysis of Heritage Springs Community Development District, Pasco County Florida (“District”) provides a narrative overview of the District’s financial activities for the fiscal year ended September 30, 2017. Please read it in conjunction with the District’s Independent Auditor’s Report, basic financial statements, accompanying notes and supplementary information to the basic financial statements.

FINANCIAL HIGHLIGHTS

•	The assets plus deferred outflows of resources of the District exceeded its liabilities at the close of the most recent fiscal year resulting in a net position balance of $4,810,835.

•	The change in the District’s total net position in comparison with the prior fiscal year was ($463,226), a decrease. The key components of the District’s net position and change in net position are reflected in the table in the government-wide financial analysis section.

•	At September 30, 2017, the District’s governmental funds reported combined ending fund balances of $1,188,155, an increase of $5,465 in comparison with the prior fiscal year. The total fund balance is non-spendable for prepaid items, restricted for debt service, assigned to first quarter operating capital and future maintenance reserves, and the remainder is unassigned fund balance which is available for spending at the District’s discretion.

OVERVIEW OF FINANCIAL STATEMENTS

This discussion and analysis is intended to serve as the introduction to the District’s basic financial statements. The District’s basic financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves.

1) Government-Wide Financial Statements

The government-wide financial statements are designed to provide readers with a broad overview of the District’s finances, in a manner similar to a private-sector business.

The statement of net position presents information on all the District’s assets, deferred outflows of resources, liabilities and deferred inflows of resources with the residual amount being reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the District is improving or deteriorating.

The statement of activities presents information showing how the government’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods.

The government-wide financial statements include all governmental activities that are principally supported by special assessment revenues. The District does not have any business-type activities. The governmental activities of the District include the general government (management), and maintenance functions.

2) Fund Financial Statements

A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The District, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The District has one fund category: governmental funds.

3

OVERVIEW OF FINANCIAL STATEMENTS (Continued)

2)  Fund Financial Statements (Continued)

Governmental Funds

Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflow of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a District’s near-term financing requirements.

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the District’s near -term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The District maintains three governmental funds for external reporting. Information is presented separately in the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances for the general fund, debt service 2006 fund and debt service 2008 fund, all of which are considered major funds.

The District adopts an annual appropriated budget for its general fund. A budgetary comparison schedule has been provided for the general fund to demonstrate compliance with the budget.

3) Notes to the Financial Statements

The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements.

GOVERNMENT-WIDE FINANCIAL ANALYSIS

As noted earlier, net position may serve over time as a useful indicator of an entity’s financial position. In the case of the District, assets plus deferred outflows of resources exceeded liabilities at the close of the most recent fiscal year.

Key components of the District’s net position are reflected in the following table:

NET POSITION

SEPTEMBER 30

Assets, excluding capital assets		2017		2016		
	$	1,207,229	$	1,195,970		
Capital assets, net of depreciation		4,855,673		5,481,666		
Total assets		6,062,902		6,677,636		
Deferred outflow of resources		2,846		3,794		
Liabilities, excluding long-term liabilities		44,913		42,369		
Long-term liabilities		1,210,000		1,365,000		
Total liabilities		1,254,913		1,407,369		
Net position						
Net investment in capital assets		3,648,519		4,120,460		
Restricted for debt service		159,035		157,978		
Unrestricted		1,003,281		995,623		
Total net position	$	4,810,835	$	5,274,061		

The District’s net position reflects its investment in capital assets (e.g. land, land improvements, and infrastructure) less any related debt used to acquire those assets that is still outstanding. These assets are used to provide services to residents; consequently, these assets are not available for future spending. Although the District’s investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.

4

GOVERNMENT-WIDE FINANCIAL ANALYSIS (Continued)

The restricted portion of the District’s net position represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position may be used to meet the District’s other obligations.

The District’s net position decreased during the most recent fiscal year. The majority of the decrease represents the extent to which the cost of operations and depreciation expense exceeded ongoing program revenues.

Key elements of the change in net position are reflected in the following table:

CHANGES IN NET POSITION

FOR THE FISCAL YEAR ENDED SEPTEMBER 30,

Revenues:		2017		2016		
						
Program revenues	$	610,799	$	611,078		
General revenues		8,603		4,788		
Total revenues		619,402		615,866		
Expenses:						
General government		141,771		116,043		
Maintenance and operations		873,475		743,499		
Interest		67,382		74,889		
Total expenses		1,082,628		934,431		
Change in net position		(463,226)		(318,565)		
Net position - beginning		5,274,061		5,592,626		
Net position - ending	$	4,810,835	$	5,274,061		

As noted above and in the statement of activities, the cost of all governmental activities during the fiscal year ended September 30, 2017 was $1,082,628. The costs of the District’s activities were primarily funded by program revenues. Program revenues are comprised primarily of assessments for the prior and current fiscal years. The remainder of the current fiscal year revenue is interest revenue. In total, expenses, including depreciation, increased from the prior fiscal year. The majority of the increase was the result of an increase in pond and stormwater system repairs.

GENERAL BUDGETING HIGHLIGHTS

An operating budget was adopted and maintained by the governing board for the District pursuant to the requirements of Florida Statutes. The budget is adopted using the same basis of accounting that is used in preparation of the fund financial statements. The legal level of budgetary control, the level at which expenditures may not exceed budget, is in the aggregate. Any budget amendments that increase the aggregate budgeted appropriations must be approved by the Board of Supervisors. The general fund budget for the fiscal year ended September 30, 2017 was amended to increase appropriations and use of fund balance by $15,000.

Actual general fund expenditures did not exceed appropriations for the fiscal year ended September 30, 2017.

CAPITAL ASSETS AND DEBT ADMINISTRATION

Capital Assets
At September 30, 2017, the District had $ 15,666,799 invested in capital assets for its governmental activities. In the government-wide financial statements depreciation of $10,811,126 has been taken, which resulted in a net book value of $4,855,673. More detailed information about the District’s capital assets is presented in the notes of the financial statements.

Capital Debt
At September 30, 2017, the District had $1,210,000 Bonds outstanding for its governmental activities. More detailed information about the District’s capital debt is presented in the notes of the financial statements.

5

ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND OTHER EVENTS

The District does not anticipate any major projects or significant changes to its infrastructure maintenance program for the subsequent fiscal year. In addition, it is anticipated that the general operations of the District will remain fairly constant.

CONTACTING THE DISTRICT’S FINANCIAL MANAGEMENT

This financial report is designed to provide our citizens, land owners, customers, investors and creditors with a general overview of the District’s finances and to demonstrate the District’s accountability for the financial resources it manages and the stewardship of the facilities it maintains. If you have questions about this report or need additional financial information, contact the Heritage Springs Community Development District’s Finance Department at 210 N. University Drive, Suite 702, Coral Springs, Florida, 33071.

6

HERITAGE SPRINGS COMMUNITY DEVELOPMENT DISTRICT
PASCO COUNTY, FLORIDA

STATEMENT OF NET POSITION

SEPTEMBER 30, 2017

		Governmental		
ASSETS			Activities		
					
Cash and cash equivalents	$	610,842		
Investments			404,024		
Due from other governments			1,060		
Accounts receivable			1,810		
Prepaids			5,011		
Restricted assets:					
Investments			184,482		
Deferred charges					
Capital assets:					
Depreciable, net			4,855,673		
Total assets			6,062,902		
DEFERRED OUTFLOW OF RESOURCES					
Deferred charge on refunding (debit)			2,846		
Total deferred outflow of resources			2,846		
LIABILITIES					
Accounts payable and accrued expenses			19,074		
Accrued interest payable			25,839		
Non-current liabilities:					
Due within one year			160,000		
Due in more than one year			1,050,000		
Total liabilities			1,254,913		
NET POSITION					
Net investment in capital assets			3,648,519		
Restricted for debt service			159,035		
Unrestricted			1,003,281		
Total net position		$	4,810,835		

See notes to the financial statements

7

HERITAGE SPRINGS COMMUNITY DEVELOPMENT DISTRICT

PASCO COUNTY, FLORIDA
STATEMENT OF ACTIVITIES

FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017

						Net (Expense)	
						Revenue and	
					Changes in Net	
			Program Revenues		Position	
				Charges			
				for		Governmental	
Functions/Programs		Expenses		Services		Activities	
Primary government:							
Governmental activities:							
General government	$	141,771	$	141,771	$	-	
Maintenance and operations		873,475		242,737		(630,738)	
Interest on long-term debt		67,382		226,291		158,909	
Total governmental activities		1,082,628		610,799		(471,829)	
General revenues:						
Investment earnings				8,603	
Total general revenues				8,603	
Change in net position				(463,226)	
Net position - beginning				5,274,061	
Net position - ending				$	4,810,835	

See notes to the financial statements

8

HERITAGE SPRINGS COMMUNITY DEVELOPMENT DISTRICT

PASCO COUNTY, FLORIDA
BALANCE SHEET

GOVERNMENTAL FUNDS

SEPTEMBER 30, 2017

			Major Funds				Total		
			Debt Service	Debt Service	Governmental		
ASSETS		General	Series 2006	Series 2008		Funds		
Cash and cash equivalents	$	610,842	$	-	$	-	$	610,842		
Investments		404,024		133,646		50,836		588,506		
Due from other governments		668		235		157		1,060		
Accounts receivable		1,810		-		-		1,810		
Prepaids		5,011		-		-		5,011		
Total assets	$	1,022,355	$	133,881	$	50,993	$	1,207,229		
LIABILITIES AND FUND BALANCES										
										
Liabilities:							$	19,074		
Accounts payable and accrued expenses	$	19,074	$	-	$	-				
Total liabilities		19,074		-		-		19,074		
Fund balances:										
Nonspendable:										
Prepaid items		5,011		-		-		5,011		
Restricted for:				133,881		50,993		184,874		
Debt service		-								
Assigned to:										
First quarter operating capital		85,702		-		-		85,702		
Ponds reserves		793,293		-		-		793,293		
Unassigned		119,275		-		-		119,275		
Total fund balances		1,003,281		133,881		50,993		1,188,155		
Total liabilities and fund balances	$	1,022,355	$	133,881	$	50,993	$	1,207,229		

See notes to the financial statements

9

HERITAGE SPRINGS COMMUNITY DEVELOPMENT DISTRICT

PASCO COUNTY, FLORIDA

RECONCILIATION OF THE BALANCE SHEET - GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION

SEPTEMBER 30, 2017

Total fund balances - governmental funds	$	1,188,155		
Amounts reported for governmental activities in the statement of						
net position are different because:						
Capital assets used in governmental activities are not financial						
resources and, therefore, are not reported as assets in the						
governmental funds.  The statement of net position includes						
those capital assets, net of any accumulated depreciation, in the						
net position of the government as a whole.						
Cost of capital assets	15,666,799			4,855,673		
Accumulated depreciation	(10,811,126)					
Deferred charges on refunding of long-term debt are shown as						
deferred outflows/inflows of resources in the government-wide						
financial statements; however, this amount is expensed in the						
governmental fund financial statements.						
Deferred amount on refunding	12,326					
Accumulated amortization of deferred amount	(9,480)			2,846		
Liabilities not due and payable from current available resources						
are  not  reported  as  liabilities  in  the  governmental  fund						
statements.  All  liabilities,  both  current  and  long-term,  are						
reported in the government-wide financial statements.						
Accrued interest payable	(25,839)					
Bonds payable	(1,210,000)			(1,235,839)		
Net position of governmental activities		$	4,810,835		

See notes to the financial statements

10

HERITAGE SPRINGS COMMUNITY DEVELOPMENT DISTRICT

PASCO COUNTY, FLORIDA

STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017

			Major Funds				Total		
			Debt Service	Debt Service	Governmental		
REVENUES		General	Series 2006	Series 2008		Funds		
										
Assessments	$	384,508	$	135,759	$	90,532	$	610,799		
Interest earnings		8,223		255		125		8,603		
Total revenues		392,731		136,014		90,657		619,402		
EXPENDITURES										
Current:										
General government		137,591		2,508		1,672		141,771		
Maintenance and operations		247,482		-		-		247,482		
Debt service:										
Principal		-		85,000		70,000		155,000		
Interest		-		51,319		18,365		69,684		
Total expenditures		385,073		138,827		90,037		613,937		
Excess (deficiency) of revenues										
over (under) expenditures		7,658		(2,813)		620		5,465		
Fund balances - beginning		995,623		136,694		50,373		1,182,690		
Fund balances - ending	$	1,003,281	$	133,881	$	50,993	$	1,188,155		

See notes to the financial statements

11

HERITAGE SPRINGS COMMUNITY DEVELOPMENT DISTRICT

PASCO COUNTY, FLORIDA

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES

FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017

Net change in fund balances - total governmental funds

Amounts reported for governmental activities in the statement of activities are different because:

Depreciation of capital assets is not recognized in the governmental funds financial statements but is reported as an expense in the statement of activities.

Repayment of long-term liabilities are reported as expenditures in the governmental fund financial statements but such repayments reduce liabilities in the statement of net position and are eliminated in the statement of activities.

Expenses reported in the statement of activities that do not require the use of current financial resources are not reported as expenditures in the funds. The details of the differences are as follows:

Amortization of deferred amount on refunding

The change in accrued interest on long-term liabilities between the current and prior fiscal year is recorded in the statement of activities but not in the fund financial statements.

Change in net position of governmental activities

$	5,465

(625,993)

155,000

(948)

3,250

$	(463,226)

See notes to the financial statements

12

HERITAGE SPRINGS COMMUNITY DEVELOPMENT DISTRICT

PASCO COUNTY, FLORIDA

NOTES TO FINANCIAL STATEMENTS

NOTE 1 – NATURE OF ORGANIZATION AND REPORTING ENTITY

Heritage Springs Community Development District ("District") was created on November 24, 1998 by the Pasco County Board of County Commissioners, Pasco County Ordinance 98-24, under the "Uniform Community Development District Act of 1980", otherwise known as Chapter 190, Florida Statutes, and was adopted, under the name of Heritage Springs Community Development District. The Act provides among other things, the power to manage basic services for community development, power to borrow money and issue bonds, and to levy and assess non-ad valorem assessments for the financing and delivery of capital infrastructure. The District was established for the purpose of financing and managing the acquisition, construction, maintenance and operation of a portion of the infrastructure necessary for community development within the District.

The District is governed by the Board of Supervisors ("Board") which is composed of five members. The Supervisors are elected on an at large basis by the owners of the property within the District. The Board of Supervisors of the District exercise all powers granted to the District pursuant to Chapter 190, Florida Statutes.

The Board has the final responsibility for:

1.	Assessing and levying assessments.
2.	Approving budgets.
3.	Exercising control over facilities and properties.
4.	Controlling the use of funds generated by the District.
5.	Approving the hiring and firing of key personnel.
6.	Financing improvements.

The financial statements were prepared in accordance with Governmental Accounting Standards Board (“GASB”) Statements. Under the provisions of those standards, the financial reporting entity consists of the primary government, organizations for which the District is considered to be financially accountable, and other organizations for which the nature and significance of their relationship with the District are such that, if excluded, the financial statements of the District would be considered incomplete or misleading. There are no entities considered to be component units of the District; therefore, the financial statements include only the operations of the District.

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Government-Wide and Fund Financial Statements

The basic financial statements include both government-wide and fund financial statements.

The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the non-fiduciary activities of the primary government. For the most part, the effect of interfund activity has been removed from these statements.

The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment; operating-type special assessments for maintenance and debt service are treated as charges for services and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Other items not included among program revenues are reported instead as general revenues.

13

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Measurement Focus, Basis of Accounting and Financial Statement Presentation

The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Assessments are recognized as revenues in the year for which they are levied. Grants and similar items are to be recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures are recorded only when payment is due.

Assessments
Assessments are non-ad valorem assessments on benefited lands within the District. Assessments are levied to pay for the operations and maintenance of the District. For debt service, certain amounts are collected at lot closings as advance payments and are used to prepay a portion of the Bonds outstanding. Otherwise, assessments are collected annually to provide funds for the debt service on the portion of the Bonds which are not paid with prepaid assessments. The fiscal year for which annual assessments are levied begins on October 1 with discounts available for payments through February 28 and become delinquent on April 1. The District’s annual assessments for operations and debt service are billed and collected by the County Tax Assessor/Collector for non-Developer owned lots. The amounts remitted to the District are net of applicable discounts or fees. In addition, amounts remitted by the County Tax Assessor/Collector include interest on monies held from the day of collection to the day of distribution.

Assessments and interest associated with the current fiscal period are considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. The portion of assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period.

The District reports the following major governmental funds:

General Fund

The general fund is the general operating fund of the District. It is used to account for all financial resources except those required to be accounted for in another fund.

Debt Service Fund
The debt service fund is used to account for the accumulation of resources for the annual payment of principal and interest on long-term debt.

As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements.

When both restricted and unrestricted resources are available for use, it is the government’s policy to use restricted resources first for qualifying expenditures, then unrestricted resources as they are needed.

14

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Assets, Liabilities and Net Position or Equity

Restricted Assets

These assets represent cash and investments set aside pursuant to Bond covenants or other contractual restrictions.

Deposits and Investments
The District’s cash and cash equivalents are considered to be cash on hand and demand deposits (interest and non-interest bearing).

The District has elected to proceed under the Alternative Investment Guidelines as set forth in Section 218.415 (17) Florida Statutes. The District may invest any surplus public funds in the following:

a)	The Local Government Surplus Trust Funds, or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act;

b)	Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency;
c)	Interest bearing time deposits or savings accounts in qualified public depositories;
d)	Direct obligations of the U.S. Treasury.

Securities listed in paragraph c and d shall be invested to provide sufficient liquidity to pay obligations as they come due. In addition, surplus funds may be deposited into certificates of deposit which are insured and any unspent Bond proceeds are required to be held in investments as specified in the Bond Indenture.

The District records all interest revenue related to investment activities in the respective funds. Investments are measured at amortized cost or reported at fair value as required by generally accepted accounting principles.

Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements.

Capital Assets
Capital assets, which include property, plant and equipment, and infrastructure assets (e.g., roads, sidewalks and similar items) are reported in the government activities columns in the government-wide financial statements. Capital assets are defined by the government as assets with an initial, individual cost of more than $5,000 (amount not rounded) and an estimated useful life in excess of two years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation.

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed.

Property, plant and equipment of the District are depreciated using the straight-line method over the following estimated useful lives:
Assets	Years	
Infrastructure – roadways & drainage, water & wastewater systems,	25 - 30	
bridge
In the governmental fund financial statements, amounts incurred for the acquisition of capital assets are reported as fund expenditures. Depreciation expense is not reported in the governmental fund financial statements.

15

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Assets, Liabilities and Net Position or Equity (Continued)

Unearned Revenue

Governmental funds report unearned revenue in connection with resources that have been received, but not yet earned.

Refunding of Debt
For current refunding and advance refundings resulting in the defeasance of debt, the difference between the reacquisition price and the net carrying amount of the old debt is reported as a deferred outflow of resources and recognized ratably as a component of interest expense over the remaining life of the old debt or the life of the new debt, whichever is shorter. In connection with the refunding, $948 was recognized as a component of interest expense in the current fiscal year.

Long-Term Obligations
In the government-wide financial statements long-term debt and other long-term obligations are reported as liabilities in the statement of net position. Bond premiums and discounts are deferred and amortized ratably over the life of the Bonds. Bonds payable are reported net of applicable premiums or discounts. Bond issuance costs are expensed when incurred.

In the fund financial statements, governmental fund types recognize premiums and discounts, as well as issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

Deferred Outflows/Inflows of Resources

Deferred outflows of resources represent a consumption of net position that applies to future reporting period(s). For example, the District would record deferred outflows of resources on the statement of net position related to debit amounts resulting from current and advance refundings resulting in the defeasance of debt (i.e. when there are differences between the reacquisition price and the net carrying amount of the old debt).

Deferred inflows of resources represent an acquisition of net position that applies to future reporting period(s). For example, when an asset is recorded in the governmental fund financial statements, but the revenue is unavailable, the District reports a deferred inflow of resources on the balance sheet until such times as the revenue becomes available.

Fund Equity/Net Position

In the fund financial statements, governmental funds report non spendable and restricted fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Assignments of fund balance represent tentative management plans that are subject to change.

The District can establish limitations on the use of fund balance as follows:

Committed fund balance – Amounts that can be used only for the specific purposes determined by a formal action (resolution) of the Board of Supervisors. Commitments may be changed or lifted only by the Board of Supervisors taking the same formal action (resolution) that imposed the constraint originally. Resources accumulated pursuant to stabilization arrangements sometimes are reported in this category.

Assigned fund balance – Includes spendable fund balance amounts established by the Board of Supervisors that are intended to be used for specific purposes that are neither considered restricted nor committed. The Board may also assign fund balance as it does when appropriating fund balance to cover differences in estimated revenue and appropriations in the subsequent year’s appropriated budget. Assignments are generally temporary and normally the same formal action need not be taken to remove the assignment.

16

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Assets, Liabilities and Net Position or Equity (Continued)

Fund Equity/Net Position (Continued)

The District first uses committed fund balance, followed by assigned fund balance and then unassigned fund balance when expenditures are incurred for purposes for which amounts in any of the unrestricted fund balance classifications could be used.

Net position is the difference between assets and deferred outflows of resources less liabilities and deferred inflows of resources. Net position in the government-wide financial statements are categorized as net investment in capital assets, restricted or unrestricted. Net investment in capital assets represents net position related to infrastructure and property, plant and equipment. Restricted net position represents the assets restricted by the District’s Bond covenants or other contractual restrictions. Unrestricted net position consists of the net position not meeting the definition of either of the other two components.

Other Disclosures

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates.

NOTE 3 – BUDGETARY INFORMATION

The District is required to establish a budgetary system and an approved Annual Budget. Annual Budgets are adopted on a basis consistent with generally accepted accounting principles for the general fund. All annual appropriations lapse at fiscal year-end.

The District follows these procedures in establishing the budgetary data reflected in the financial statements.

a)	Each year the District Manager submits to the District Board a proposed operating budget for the fiscal year commencing the following October 1.

b)	Public hearings are conducted to obtain public comments.
c)	Prior to October 1, the budget is legally adopted by the District Board.
d)	All budget changes must be approved by the District Board.
e)	The budgets are adopted on a basis consistent with generally accepted accounting principles.
f)	Unused appropriation for annually budgeted funds lapse at the end of the year.

NOTE 4 – DEPOSITS AND INVESTMENTS

Deposits

The District’s cash balances including certificates of deposit as shown below were entirely covered by federal depository insurance or by a collateral pool pledged to the State Treasurer. Florida Statutes Chapter 280, "Florida Security for Public Deposits Act", requires all qualified depositories to deposit with the Treasurer or another banking institution eligible collateral equal to various percentages of the average daily balance for each month of all public deposits in excess of any applicable deposit insurance held. The percentage of eligible collateral (generally, U.S. Governmental and agency securities, state or local government debt, or corporate bonds) to public deposits is dependent upon the depository's financial history and its compliance with Chapter 280. In the event of a failure of a qualified public depository, the remaining public depositories would be responsible for covering any resulting losses.

17

NOTE 4 – DEPOSITS AND INVESTMENTS (Continued)

Investments

The District’s investments were held as follows at September 30, 2017:

Investment		Amortized Cost	Credit Risk	Maturity		
US Bank Open Monthly Commercial Paper	$	175,594	S&P A-1+	Open-ended		
First American Government Obligation Funds		8,888	S&P AAAm	Weighted average of the		
CL Y				fund portfolio: 23 days		
Bank United Certificate of Deposit		404,024	Not applicable	Various		
	$	588,506				

The money market mutual funds are not evidenced by securities that exist in physical or book entry form.

Credit risk – For investments, credit risk is generally the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Investment ratings by investment type are included in the preceding summary of investments.

Concentration risk – The District places no limit on the amount the District may invest in any one issuer.

Interest rate risk – The District does not have a formal policy that limits investment maturities as a means of managing exposure to fair value losses arising from increasing interest rates.

However, the Bond Indenture limits the type of investments held using unspent proceeds.

Fair Value Measurement – When applicable, the District measures and records its investments using fair value measurement guidelines established in accordance with GASB Statements. The framework for measuring fair value provides a fair value hierarchy that prioritizes the inputs to valuation techniques.

These guidelines recognize a three-tiered fair value hierarchy, in order of highest priority, as follows:

•	Level 1: Investments whose values are based on unadjusted quoted prices for identical investments in active markets that the District has the ability to access;
•	Level 2: Investments whose inputs - other than quoted market prices - are observable either directly or indirectly; and,

•	Level 3: Investments whose inputs are unobservable.

The fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the entire fair value measurement. Valuation techniques used should maximize the use of observable inputs and minimize the use of unobservable inputs.

Money market investments that have a maturity at the time of purchase of one year or less and are held by governments other than external investment pools should be measured at amortized cost. Non-negotiable, non-transferable certificates of deposits that do not consider market rates are required to be reported at amortized cost. Accordingly, the District’s investments have been reported at amortized cost above.

18

NOTE 5 – CAPITAL ASSETS

Capital asset activity for the fiscal year ended September 30, 2017 was as follows:

		Beginning		Additions		Reductions		Ending		
Governmental activities		Balance						Balance		
										
Capital assets, being depreciated										
Infrastructure - roadways and drainage	$	12,000,010	$	-	$	-	$	12,000,010		
Infrastructure - water and wastewater		3,641,789		-		-		3,641,789		
Infrastructure-Bridges		25,000		-		-		25,000		
Total capital assets, being depreciated		15,666,799		-		-		15,666,799		
Less accumulated depreciation for:										
Infrastructure - roadways and drainage		7,705,128		479,321		-		8,184,449		
Infrastructure - water and wastewater		2,476,422		145,672		-		2,622,094		
Infrastructure-Bridges		3,583		1,000		-		4,583		
Total accumulated depreciation		10,185,133		625,993		-		10,811,126		
Total capital assets, being depreciated, net		5,481,666		(625,993)		-		4,855,673		
Governmental activities capital assets, net	$	5,481,666	$	(625,993)	$	-	$	4,855,673		

Depreciation expense was charged to the maintenance and operations function.

NOTE 6 – LONG TERM LIABILITIES

Series 2006

On August 23, 2006, the District issued $1,660,000 of Capital Improvement Revenue Bonds, Series 2006A, due on May 1, 2026 with a fixed interest rate of 5.25%. The Bonds were issued to finance the acquisition of certain additional improvements for the benefit of the District. Interest is to be paid semiannually on each May 1 and November 1. Principal is to be paid serially commencing May 1, 2008 through May 1, 2026.

The Series 2006A Bonds are subject to optional redemption prior to maturity in the manner determined by the Bond Registrar if certain events occurred as outlined in the Bond Indenture. In addition, the 2006A Bonds are also subject to extraordinary mandatory redemption prior to maturity as outlined in the Bond Indenture. This occurred during the current fiscal year as the District collected assessments and prepaid $5,000 of the Series 2006A Bonds.

The Bond Indenture established a debt service reserve requirement as well as other restrictions and requirements relating principally to the use of proceeds to pay for the infrastructure improvements and the procedures to be followed by the District on assessments to property owners. The District agrees to levy special assessments in annual amounts adequate to provide payment of debt service and to meet the reserve requirements. The District was in compliance with the requirements at September 30, 2017.

Series 2008

On June 17, 2008, the District issued $840,000 of Capital Improvement Revenue Refunding Bonds, Series 2008 due on May 1, 2021 with a fixed interest rate of 4.770%. The Bonds were issued to refund the District’s outstanding Capital Improvements Revenue Bonds, Series 1999A (the “Refunded Bonds”); and pay certain costs associated with the issuance of the Bonds. Interest is to be paid semiannually on each May 1 and November 1. Principal on the Bonds is to be paid serially commencing May 1, 2009 through May 1, 2021.

The Series 2008 Bonds are subject to optional redemption at the option of the District prior to maturity. In addition, the Series 2008 Bonds are subject to extraordinary mandatory redemption prior to maturity if certain events occur as outlined in the Bond Indenture.

The Bond Indenture established a debt service reserve requirement as well as other restrictions and requirements relating principally to the use of proceeds to pay for the infrastructure improvements and the procedures to be followed by the District on assessments to property owners. The District agrees to levy special assessments in annual amounts adequate to provide payment of debt service and to meet the reserve requirements. The District was in compliance with the requirements at September 30, 2017.

19

NOTE 6 - LONG-TERM LIABILITIES (Continued)

Long-term Debt Activity

Changes in long-term liability activity for the fiscal year ended September 30, 2017 were as follows:

		Beginning						Ending		Due Within		
Governmental activities		Balance		Additions		Reductions		Balance		One Year		
												
Bonds payable:												
Series 2006A	$	980,000	$	-	$	85,000	$	895,000	$	85,000		
Series 2008		385,000		-		70,000		315,000		75,000		
Total	$	1,365,000	$	-	$	155,000	$	1,210,000	$	160,000		

At September 30, 2017, the scheduled debt service requirements on the long term debt were as follows:

Year ending			Governmental Activities			
		Principal		Interest		Total		
September 30:								
2018	$	160,000	$	62,013	$	222,013		
2019		160,000		53,973		213,973		
2020		170,000		45,933		215,933		
2021		180,000		37,412		217,412		
2022		100,000		28,350		128,350		
2023-2026		440,000		57,750		497,750		
Total	$	1,210,000	$	285,431	$	1,495,431		

NOTE 7 – MANAGEMENT COMPANY

The District has contracted with a management company to perform management advisory services, which include financial and accounting services. Certain employees of the management company also serve as officers of the District. Under the agreement, the District compensates the management company for management, accounting, financial reporting, and other administrative costs.

NOTE 8 – RISK MANAGEMENT

The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters. The District has obtained commercial insurance from independent third parties to mitigate the costs of these risks; coverage may not extend to all situations. There were no settled claims during the past three years.

20

HERITAGE SPRINGS COMMUNITY DEVELOPMENT DISTRICT

PASCO COUNTY, FLORIDA

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL – GENERAL FUND

FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017

									Variance with		
									Final Budget -		
		Budgeted Amounts			Actual		Positive		
REVENUES		Original		Final			Amounts		(Negative)		
	$	383,451	$	383,451	$	384,508		$	1,057		
Assessments											
Interest		1,000		1,000			8,223			7,223		
Total revenues		384,451		384,451			392,731			8,280		
EXPENDITURES												
Current:				152,808			137,591			15,217		
General government		137,808										
Maintenance and operations		246,643		246,643			247,482			(839)		
Total expenditures		384,451		399,451			385,073			14,378		
Excess (deficiency) of revenues				(15,000)			7,658			22,658		
over (under) expenditures		-										
OTHER FINANCING SOURCES		-		15,000			-			(15,000)		
Use of fund balance												
Total other financing sources		-		15,000			-			(15,000)		
Net change in fund balances	$	-	$	-			7,658		$	7,658		
Fund balance - beginning							995,623					
												
Fund balance - ending					$	1,003,281					

See notes to required supplementary information

21

HERITAGE SPRINGS COMMUNITY DEVELOPMENT DISTRICT

PASCO COUNTY, FLORIDA

NOTES TO REQUIRED SUPPLEMENTARY INFORMATION

The District is required to establish a budgetary system and an approved Annual Budget for the general fund. The District’s budgeting process is based on estimates of cash receipts and cash expenditures which are approved by the Board. The budget approximates a basis consistent with accounting principles generally accepted in the United States of America (generally accepted accounting principles).

The legal level of budgetary control, the level at which expenditures may not exceed budget, is in the aggregate. Any budget amendments that increase the aggregate budgeted appropriations must be approved by the Board of Supervisors. The general fund budget for the fiscal year ended September 30, 2017 was amended to increase appropriations and use of fund balance by $15,000.

Actual general fund expenditures did not exceed appropriations for the fiscal year ended September 30, 2017.

22

	2700 North Military Trail ▪ Suite 350		
Grau & Associates	Boca Raton, Florida  33431		
	(561) 994-9299 ▪ (800) 299-4728		
			
	Fax (561) 994-5823		
CERTIFIED PUBLIC ACCOUNTANTS	www.graucpa.com		

INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT
OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH

GOVERNMENT AUDITING STANDARDS

To the Board of Supervisors
Heritage Springs Community Development District
Pasco County, Florida

We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities and each major fund of Heritage Springs Community Development District, Pasco County, Florida (“District”) as of and for the fiscal year ended September 30, 2017, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements, and have issued our opinion thereon dated May 4, 2018.

Internal Control Over Financial Reporting

In planning and performing our audit of the financial statements, we considered the District’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the District’s internal control. Accordingly, we do not express an opinion on the effectiveness of the District’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the District’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

23

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

May 4, 2018

24

	2700 North Military Trail ▪ Suite 350		
Grau & Associates	Boca Raton, Florida  33431		
	(561) 994-9299 ▪ (800) 299-4728		
			
	Fax (561) 994-5823		
CERTIFIED PUBLIC ACCOUNTANTS	www.graucpa.com		

INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE WITH THE

REQUIREMENTS OF SECTION 218.415, FLORIDA STATUTES, REQUIRED BY

RULE 10.556(10) OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA

To the Board of Supervisors

Heritage Springs Community Development District
Pasco County, Florida

We have examined Heritage Springs Community Development District, Pasco County, Florida’s (“District”) compliance with the requirements of Section 218.415, Florida Statutes, in accordance with Rule 10.556(10) of the Auditor General of the State of Florida during the fiscal year ended September 30, 2017. Management is responsible for the District’s compliance with those requirements. Our responsibility is to express an opinion on the District’s compliance based on our examination.

Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the District complied, in all material respects, with the specified requirements referenced in Section 218.415, Florida Statutes. An examination involves performing procedures to obtain evidence about whether the District complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. Our examination does not provide a legal determination on the District’s compliance with specified requirements.

In our opinion, the District complied, in all material respects, with the aforementioned requirements for the fiscal year ended September 30, 2017.

This report is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, management, and the Board of Supervisors of Heritage Springs Community Development District, Pasco County, Florida and is not intended to be and should not be used by anyone other than these specified parties.

May 4, 2018

25

	2700 North Military Trail ▪ Suite 350		
Grau & Associates	Boca Raton, Florida  33431		
	(561) 994-9299 ▪ (800) 299-4728		
			
	Fax (561) 994-5823		
CERTIFIED PUBLIC ACCOUNTANTS	www.graucpa.com		

MANAGEMENT LETTER PURSUANT TO THE RULES OF

THE AUDITOR GENERAL FOR THE STATE OF FLORIDA

To the Board of Supervisors
Heritage Springs Community Development District

Pasco County, Florida

Report on the Financial Statements

We have audited the accompanying basic financial statements of Heritage Springs Community Development District, Pasco County, Florida ("District") as of and for the fiscal year ended September 30, 2017, and have issued our report thereon dated May 4, 2018.

Auditor’s Responsibility

We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and Chapter 10.550, Rules of the Auditor General.

Other Reporting Requirements

We have issued our Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards; and Independent Auditor’s Report on an examination conducted in accordance with AICPA Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated May 4, 2018, should be considered in conjunction with this management letter.

Purpose of this Letter

The purpose of this letter is to comment on those matters required by Chapter 10.550 of the Rules of the Auditor General of the state of Florida. Accordingly, in connection with our audit of the financial statements of the District, as described in the first paragraph, we report the following:

I.	Current year findings and recommendations.

II.	Status of prior year findings and recommendations.

III.  Compliance with the Provisions of the Auditor General of the State of Florida.

Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, as applicable, management, and the Board of Supervisors of Heritage Springs Community Development District, Pasco County, Florida and is not intended to be and should not be used by anyone other than these specified parties.

We wish to thank Heritage Springs Community Development District, Pasco County, Florida and the personnel associated with it, for the opportunity to be of service to them in this endeavor as well as future engagements, and the courtesies extended to us.

May 4, 2018

26

REPORT TO MANAGEMENT

I.	CURRENT YEAR FINDINGS AND RECOMMENDATIONS

	None

II.	PRIOR YEAR FINDINGS AND RECOMMENDATIONS

	None

III.	COMPLIANCE WITH THE PROVISIONS OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA

	Unless otherwise required to be reported in the auditor’s report on compliance and internal controls, the management letter shall include, but not be limited to the following:

1.	A statement as to whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report.

	There were no significant findings and recommendations made in the preceding annual financial audit report for the fiscal year ended September 30, 2016.

2.	Any recommendations to improve the local governmental entity's financial management.

	There were no such matters discovered by, or that came to the attention of, the auditor, to be reported for the fiscal year ended September 30, 2017.

3.	Noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance.

	There were no such matters discovered by, or that came to the attention of, the auditor, to be reported, for the fiscal year ended September 30, 2017.

4.	The name or official title and legal authority of the District are disclosed in the notes to the financial statements.

5.	The financial report filed with the Florida Department of Financial Services pursuant to Section 218.32(1)(a), Florida Statutes agrees with the September 30, 2017 financial audit report.

6.	The District has not met one or more of the financial emergency conditions described in Section 218.503(1), Florida Statutes.

7.	We applied financial condition assessment procedures and no deteriorating financial conditions were noted as of September 30, 2017. It is management’s responsibility to monitor financial condition, and our financial condition assessment was based in part on representations made by management and the review of financial information provided by same.

27

6D.

Brian E. Corley
Supervisor of Elections

PO BOX 300, Dade City FL  33526-0300

1-800-851-8754 www.pascovotes.com

April 16, 2018

Sandra H. Demarco

Recording Manager

lnframark

210 N University Dr., Ste

Coral Springs FL  33071

Ms. Demarco:

702

Below is the Community

information you requested Development Districts as of

regarding registered April 15, 2018:

voters

within

the

following

Pasco

County

•	Estancia at Wiregrass Community Development District - 591

•	Heritage Springs Community Development District - 2115

•	Lake Bernadette Community Development District - 1437

•	Lexington Oaks Community Development District - 2795

•	Meadow Pointe Community Development District - 2911

•	Meadow Pointe II Community Development District - 3316

•	Oakstead Community Development District - 2088

•	Oak Creek Community Development District - 984

•	Watergrass Community Development District II - 508

If you need additional States Postal Service.

information

just

let me know.

The original

letter

is

being forwarded via United '

Sincerely, ~::.;~nlW-r

Director

of

Administrative Services

·-·-·---'!"'--.....~ #MyRtghtMyVate ••

East Pasco - Dade City (352)521-4302

Central Pasco - Land O'Lakes(813) 929-2788

West Pasco - New Port Richey (727) 847-8162