HERITAGE SPRINGS

Community Development District

Annual Operating and Debt Service Budget

Fiscal Year 2018

Version 1 - Approved Tentative Budget

(Approved May 15, 2017)

Prepared by:

SEVERN

TRENT

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		
2017-2018 Non-Ad Valorem Assessment Summary ………………………………………………………..	10	

Heritage Springs

Community Development District

Operating Budget

Fiscal Year 2018

HERITAGE SPRINGS

Community Development District															General Fund	
	Summary of Revenues, Expenditures and Changes in Fund Balances					
					Fiscal Year 2018 Proposed Budget										
								ADOPTED			ACTUAL	PROJECTED			TOTAL			ANNUAL	
					ACTUAL			BUDGET			THRU		MAY-		PROJECTED			BUDGET	
	ACCOUNT DESCRIPTION				FY 2016			FY 2017		APRIL-2017				SEP-2017			FY 2017			FY 2018		
	REVENUES																				
	Interest - Investments	$	4,600	$	1,000	$	3,399			$	3,460	$	6,859	$	4,000		
	Special Assmnts- Tax Collector		399,429			399,428			396,218				3,210			399,428			399,428		
	Special Assmnts- Discounts		(14,739)			(15,977)			(14,996)				-			(14,996)			(15,977)		
																					
	TOTAL REVENUES		389,290			384,451			384,621				6,670			391,291			387,450		
	EXPENDITURES																				
	Administrative																				
	P/R-Board of Supervisors		6,000			9,000			5,000				2,000			7,000			9,000		
	FICA Taxes		459			689			383				153			536			689		
	ProfServ-Dissemination Agent		1,000			1,000			-				-			-			1,000		
	ProfServ-Engineering		27,138			46,000			40,560				17,500			58,060			46,000		
	ProfServ-Legal Services		3,598			5,000			1,882				1,344			3,226			5,000		
	ProfServ-Mgmt Consulting Serv		35,874			35,874			20,927				14,948			35,875			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		500			750			750				-			750			750		
	Auditing Services		5,500			5,500			5,500				-			5,500			5,500		
	Postage and Freight		200			400			129				92			221			400		
	Insurance - General Liability		4,529			4,982			4,765				-			4,765			5,242		
	Printing and Binding		866			1,250			119				750			869			1,250		
	Legal Advertising		2,388			2,100			107				2,281			2,388			2,100		
	Miscellaneous Services		582			600			351				225			576			600		
	Misc-Assessmnt Collection Cost		6,805			7,989			7,625				64			7,689			7,989		
	Office Supplies		110			175			116				44			160			175		
	Annual District Filing Fee		175			175			175				-			175			175		
																						
	Total Administrative			112,048			137,808			100,226				43,888			144,114			138,067		
	Field																				
	Contracts-Lakes		34,800			40,000			20,300				14,500			34,800			40,000		
	Electricity - Streetlighting		58,751			60,000			34,047				24,372			58,419			60,000		
	R&M-Aquascaping		420			5,000			2,044				2,500			4,544			5,000		
	R&M-Ponds		20,043			75,000			81,460				-			81,460			75,000		
	R&M-Stormwater System		575			15,000			4,500				500			5,000			15,000		
	Misc-Contingency		2,917			10,000			247				82			329			10,000		
	Reserve - Ponds		-			41,643			-				-			-			44,383		
																						
	Total Field			117,506			246,643			142,598				41,954			184,552			249,383		
																					
	TOTAL EXPENDITURES		229,554			384,451			242,824				85,842			328,666			387,450		
	Net change in fund balance			159,736			-			141,797				(79,172)			62,625			-		
	FUND BALANCE, BEGINNING		835,887			995,623			995,623				-			995,623			1,058,248		
	FUND BALANCE, ENDING	$	995,623	$	995,623	$ 1,137,420			$	(79,172)	$ 1,058,248	$ 1,058,248		

Annual Operating and Debt Service Budget	Page 1		
Fiscal Year 2018			

Heritage Springs

Community Development District	General Fund

Budget Narrative
Fiscal Year 2018

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 Severn Trent Management Services, Inc.

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 2		
			
Fiscal Year 2018			

Heritage Springs

Community Development District	General Fund

Budget Narrative
Fiscal Year 2018

Profserv - Special Assessment

The District has contracted with Severn Trent Management Services, Inc. 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 Severn Trent.

Auditing Services

The District is required annually to conduct an audit of its financial records by an Independent Certified Public Accounting Firm.

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 FY18.

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 incurred 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 3		
			
Fiscal Year 2018			

Heritage Springs

Community Development District	General Fund

Budget Narrative
Fiscal Year 2018

Maintenance:

Contracts-Lakes

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

Electricity - Street Lighting
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 – Storm Water 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 4		
			
Fiscal Year 2018			

HERITAGE SPRINGS

Community Development District			General Fund		
	Exhibit "A"						
	Allocation of Fund Balances				
	AVAILABLE FUNDS						
				Amount		
	Beginning Fund Balance - Fiscal Year 2018	$	1,058,248			
	Net Change in Fund Balance - Fiscal Year 2018			-			
	Reserves - Fiscal Year 2018 Additions			44,383			
							
	Total Funds Available (Estimated) - 9/30/2018			1,102,631			
	ALLOCATION OF AVAILABLE FUNDS						
	Assigned Fund Balance			85,767  (1)		
	Operating Reserve (1)					
	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-Projected)	41,643					
	Reserves - Ponds (FY18-Proposed)	44,383		837,676			
							
		Subtotal	923,443			
							
	Total Allocation of Available Funds			923,443			
							
	Total Unassigned (undesignated) Cash	$	179,188			

Notes

(1) Represents approximately 3 months of operating expenditures

Annual Operating and Debt Service Budget	Page 5		
Fiscal Year 2018			

Heritage Springs

Community Development District

Debt Service Budgets

Fiscal Year 2018

HERITAGE SPRINGS

Community Development District	2006 Debt Service Fund

Summary of Revenues, Expenditures and Changes in Fund Balances

Fiscal Year 2018 Proposed Budget

				ADOPTED		ACTUAL	PROJECTED		TOTAL		ANNUAL	
		ACTUAL		BUDGET		THRU	MAY-		PROJECTED		BUDGET	
ACCOUNT DESCRIPTION		FY 2016		FY 2017		APRIL-2017	SEP-2017		FY 2017		FY 2018	

REVENUES

Interest - Investments	$	135	$	-	$	126	$	90	$	216	$	-	
Special Assmnts- Tax Collector		141,027			141,226			139,894			1,332			141,226			141,226	
Special Assmnts- Prepayments		-			-			-			-			-			-	
Special Assmnts- Discounts		(5,204)			(5,649)			(5,295)			-			(5,295)			(5,649)	
																		
TOTAL REVENUES		135,958			135,577			134,725			1,422			136,147			135,577	
EXPENDITURES																		
Administrative																		
Misc-Assessmnt Collection Cost		2,403			2,825			2,692			27			2,719			2,825	
																		
Total Administrative		2,403			2,825			2,692			27			2,719			2,825	
Debt Service																		
Debt Retirement Series A		75,000			80,000			-			80,000			80,000			85,000	
Prepayments Series A		5,000			-			5,000			-			5,000			-	
Interest Expense Series A		55,519			51,450			25,725			25,594			51,319			46,988	
Total Debt Service		135,519			131,450			30,725			105,594			136,319			131,988	
																		
TOTAL EXPENDITURES		137,922			134,275			33,417			105,620			139,037			134,812	
Excess (deficiency) of revenues																		
Over (under) expenditures		(1,964)			1,302			101,308			(104,198)			(2,890)			765	
OTHER FINANCING SOURCES (USES)																		
Contribution to (Use of) Fund Balance		-			1,302			-			-			-			765	
																		
TOTAL OTHER SOURCES (USES)		-			1,302			-			-			-			765	
Net change in fund balance		(1,964)			1,302			101,308			(104,198)			(2,890)			765	
FUND BALANCE, BEGINNING		138,659			136,695			136,695			-			136,695			133,805	
FUND BALANCE, ENDING	$	136,695	$	137,997	$	238,003	$	(104,198)	$	133,805	$	134,569	

Annual Operating and Debt Service Budget	Page 6		
Fiscal Year 2018			

HERITAGE SPRINGS

Community Development District

Debt Service Amortization Schedule

Series 2006A Capital Improvement Revenue Bonds

	Regular		Principal		Interest	Outstanding	
Date	Principal		Prepayments		Expense	Principal	

11/1/2017				$23,493.75	$895,000.00	
5/1/2018	$85,000.00			$23,493.75	$810,000.00	
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	$895,000.00	$0.00	$247,012.50		

Annual Operating and Debt Service Budget	Page 7		
Fiscal Year 2018			

HERITAGE SPRINGS

Community Development District	2008 Debt Service (Refunding) Fund

Summary of Revenues, Expenditures and Changes in Fund Balances

Fiscal Year 2018 Proposed Budget

				ADOPTED		ACTUAL	PROJECTED		TOTAL		ANNUAL	
		ACTUAL		BUDGET		THRU	MAY-		PROJECTED		BUDGET	
ACCOUNT DESCRIPTION		FY 2016		FY 2017		APRIL-2017	SEP-2017		FY 2017		FY 2018	

REVENUES

Interest - Investments	$	52	$	-	$	62	$	44	$	106	$	-	
Special Assmnts- Tax Collector		94,045			94,045			93,289			756	$	94,045			94,045	
Special Assmnts- Discounts		(3,480)			(3,762)			(3,531)			-			(3,531)			(3,762)	
																		
TOTAL REVENUES		90,617			90,283			89,820			800			90,620			90,284	
EXPENDITURES																		
Administrative																		
Misc-Assessmnt Collection Cost		1,592			1,881			1,795			15			1,810			1,881	
																		
Total Administrative		1,592			1,881			1,795			15			1,810			1,881	
Debt Service																		
Principal Debt Retirement		65,000			70,000			-			70,000			70,000			75,000	
Interest Expense		21,465			18,364			9,182			9,182			18,364			15,026	
Total Debt Service		86,465			88,364			9,182			79,182			88,364			90,026	
																		
TOTAL EXPENDITURES		88,057			90,245			10,977			79,197			90,174			91,906	
Excess (deficiency) of revenues																		
Over (under) expenditures		2,560			38			78,843			(78,397)			446			(1,623)	
OTHER FINANCING SOURCES (USES)																		
Contribution to (Use of) Fund Balance		-			38			-			-			-			(1,623)	
																		
TOTAL OTHER SOURCES (USES)		-			38			-			-			-			(1,623)	
Net change in fund balance		2,560			38			78,843			(78,397)			446			(1,623)	
FUND BALANCE, BEGINNING		47,812			50,372			50,372			-			50,372			50,818	
FUND BALANCE, ENDING	$	50,372	$	50,410	$	129,215	$	(78,397)	$	50,818	$	49,195	

Annual Operating and Debt Service Budget	Page 8		
Fiscal Year 2018			

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	

11/1/2017				$7,512.75	$315,000.00	
5/1/2018	$75,000.00			$7,512.75	$240,000.00	
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	$315,000.00	$0.00	$38,398.50		

Annual Operating and Debt Service Budget	Page 9		
Fiscal Year 2018			

Heritage Springs

Community Development District

Supporting Budget Schedules

Fiscal Year 2018

HERITAGE SPRINGS

Community Development District

Comparison of Assessment Rates

Fiscal Year 2018 vs. Fiscal Year 2017

Bond	General Fund	Debt Service	Total Assessments per Unit	Units						
Series	FY 2018	FY 2017 Percent	FY 2018	FY 2017	Percent	FY 2018	FY 2017	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	28	$220,776	$141,226	
2008	$298.75	$298.75	0.0%	$168.54	$168.54	0.0%	$467.29	$467.29	0.0%	598		40	$178,652	$94,045	
										1,337	68	$399,428	$235,271	

Annual Operating and Debt Service Budget	Page 10		
Fiscal Year 2018