HERITAGE SPRINGS
Community Development District

Annual Operating and Debt Service Budget
Fiscal Year 2020

Version 1 - Approved Budget
(Approved at 5/20/19 meeting)

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
2019-2020 Non-Ad Valorem Assessment Summary ………………………………………………………..	10

Heritage Springs
Community Development District

Operating Budget
Fiscal Year 2020

HERITAGE SPRINGS
Community Development District	General Fund

Summary of Revenues, Expenditures and Changes in Fund Balances
Fiscal Year 2020 Proposed Budget

		ADOPTED	ACTUAL	PROJECTED	TOTAL	ANNUAL	
	ACTUAL	BUDGET	THRU	MAY-	PROJECTED	BUDGET	
ACCOUNT DESCRIPTION	FY 2018	FY 2019	APR-2019	SEP-2019	FY 2019	FY 2020	
REVENUES

Interest - Investments	$	12,210	$	4,000	$	11,695	$	8,354	$	20,049	$	4,000	
Special Assmnts- Tax Collector	399,429	399,429	395,840	3,589	399,429	399,429	
Special Assmnts- Discounts	(14,996)	(15,977)	(15,038)	-	(15,038)	(15,977)	
TOTAL REVENUES	396,643	387,452	392,497	11,942	404,439	387,452	

EXPENDITURES
Administrative

P/R-Board of Supervisors	7,200	9,000	4,400	3,000	7,400	9,000	
FICA Taxes	551	689	337	230	567	689	
ProfServ-Dissemination Agent	1,000	1,000	-	1,000	1,000	1,000	
ProfServ-Engineering	45,458	55,000	7,230	5,164	12,394	55,000	
ProfServ-Legal Services	4,159	5,000	1,236	3,600	4,836	5,000	
ProfServ-Mgmt Consulting Serv	35,874	35,874	20,927	14,948	35,874	36,950	
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	5,500	5,500	5,500	-	5,500	5,500	
Postage and Freight	459	400	136	264	400	400	
Insurance - General Liability	5,011	5,512	5,040	-	5,040	5,544	
Printing and Binding	351	1,000	210	150	360	1,000	
Legal Advertising	900	1,800	110	790	900	1,800	
Miscellaneous Services	581	600	331	240	571	600	
Misc-Assessmnt Collection Cost	6,161	7,989	7,616	72	7,688	7,989	
Office Supplies	204	175	331	110	441	175	
Annual District Filing Fee	175	175	175	-	175	175	
Total Administrative	130,658	146,788	66,316	34,054	100,069	147,896	

Field							
Contracts-Lakes	34,800	40,000	20,300	14,500	34,800	40,000	
Electricity - Streetlighting	55,983	60,000	34,117	24,372	58,489	60,000	
R&M-Aquascaping	1,485	5,000	-	5,000	5,000	3,892	
R&M-Ponds	59,884	75,000	-	75,000	75,000	75,000	
R&M-Stormwater System	43,417	15,000	1,400	13,600	15,000	15,000	
Misc-Contingency	12,341	10,000	319	8,000	8,319	10,000	
Reserve - Ponds	5,882	35,664	-	-	-	35,664	
Total Field	213,792	240,664	56,136	140,472	196,608	239,556	
TOTAL EXPENDITURES	344,450	387,452	122,452	174,526	296,677	387,452	
Net change in fund balance	52,193	-	270,045	(162,583)	107,763	(0)	
FUND BALANCE, BEGINNING	1,003,283	1,055,476	1,055,476	-	1,055,476	1,163,239	
FUND BALANCE, ENDING	$ 1,055,476	$ 1,055,476	$ 1,325,521	$ (162,583)	$ 1,163,239	$ 1,163,239	

Annual Operating and Debt Service Budget
Fiscal Year 2020	Page 1

Heritage Springs
Community Development District	General Fund

Budget Narrative
Fiscal Year 2020

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. A 3% increase is proposed for FY20.

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 Fiscal Year 2020

Page 2

Heritage Springs
Community Development District	General Fund

Budget Narrative
Fiscal Year 2020

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 FY20.

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 Fiscal Year 2020

Page 3

Heritage Springs
Community Development District	General Fund

Budget Narrative
Fiscal Year 2020

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 Fiscal Year 2020

Page 4

HERITAGE SPRINGS
Community Development District	General Fund

Exhibit "A"
Allocation of Fund Balances

AVAILABLE FUNDS

Beginning Fund Balance - Fiscal Year 2020
Net Change in Fund Balance - Fiscal Year 2020 Reserves - Fiscal Year 2020 Additions		$	1,163,239
- 35,664	
Total Funds Available (Estimated) - 9/30/2020		1,198,903	

ALLOCATION OF AVAILABLE FUNDS			
Assigned Fund Balance
Operating Reserve		
87,947	
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)	38,501		
Reserves - Ponds (FY19)	35,664		
Reserves - Ponds (FY20-Proposed)	35,664	903,122	
	Subtotal	991,069	
Total Allocation of Available Funds		991,069	

Total Unassigned (undesignated) Cash		
$	207,833	

Amount

Notes
(1) Represents approximately 3 months of operating expenditures

(1)

Annual Operating and Debt Service Budget Fiscal Year 2020

Page 5

Heritage Springs
Community Development District

Debt Service Budgets
Fiscal Year 2020

HERITAGE SPRINGS
Community Development District	2006 Debt Service Fund

Summary of Revenues, Expenditures and Changes in Fund Balances
Fiscal Year 2020 Proposed Budget

ACTUAL	ADOPTED
BUDGET	ACTUAL
THRU	PROJECTED
MAY-	TOTAL
PROJECTED	ANNUAL
BUDGET	
FY 2018	FY 2019	APR-2019	SEP-2019	FY 2019	FY 2020	

ACCOUNT DESCRIPTION

REVENUES

Interest - Investments	$	348	$	-	$	257	$	100	$	357	$	-	
Special Assmnts- Tax Collector	141,027	141,027	139,760	1,267	141,027	141,027	
Special Assmnts- Discounts	(5,295)	(5,641)	(5,310)	-	(5,310)	(5,641)	
TOTAL REVENUES	136,080	135,386	134,707	1,367	136,074	135,386	

EXPENDITURES
Administrative

Misc-Assessmnt Collection Cost	2,175	2,821	2,689	25	2,714	2,821	
Total Administrative	2,175	2,821	2,689	25	2,714	2,821	

Debt Service							
Debt Retirement Series A	85,000	85,000	-	85,000	85,000	90,000	
Prepayments Series A	-	-	5,000	5,000	10,000	-	
Interest Expense Series A	46,988	42,525	21,263	21,131	42,394	37,538	
Total Debt Service	131,988	127,525	26,263	111,131	137,394	127,538	
TOTAL EXPENDITURES	134,163	130,346	28,952	111,157	140,109	130,358	
Excess (deficiency) of revenues Over (under) expenditures	

1,917	

5,040	

105,755	

(109,789)	

(4,034)	

5,027	

OTHER FINANCING SOURCES (USES)							
Contribution to (Use of) Fund Balance	-	5,040	-	-	-	5,027	
TOTAL OTHER SOURCES (USES)	-	5,040	-	-	-	5,027	
Net change in fund balance	1,917	5,040	105,755	(109,789)	(4,034)	5,027	
FUND BALANCE, BEGINNING	133,882	135,800	135,800	-	135,800	131,766	
FUND BALANCE, ENDING	$ 135,800	$ 140,840	$ 241,555	$ (109,789)	$	131,766	$ 136,793	

Annual Operating and Debt Service Budget Fiscal Year 2020

Page 6

HERITAGE SPRINGS
Community Development District

Debt Service Amortization Schedule
Series 2006A Capital Improvement Revenue Bonds

Date	Regular Principal	Principal Prepayments	Interest Expense	Outstanding Principal	

11/1/2019			
$18,768.75	
$715,000.00	
5/1/2020	$90,000.00		$18,768.75	$625,000.00	
11/1/2020			$16,406.25	$625,000.00	
5/1/2021	$95,000.00		$16,406.25	$530,000.00	
11/1/2021			$13,912.50	$530,000.00	
5/1/2022	$100,000.00		$13,912.50	$430,000.00	
11/1/2022			$11,287.50	$430,000.00	
5/1/2023	$100,000.00		$11,287.50	$330,000.00	
11/1/2023			$8,662.50	$330,000.00	
5/1/2024	$105,000.00		$8,662.50	$225,000.00	
11/1/2024			$5,906.25	$225,000.00	
5/1/2025	$110,000.00		$5,906.25	$115,000.00	
11/1/2025			$3,018.75	$115,000.00	
5/1/2026	$115,000.00		$3,018.75	$0.00	
totals	$715,000.00	$0.00	$155,925.00		

Annual Operating and Debt Service Budget
Fiscal Year 2020	Page 7

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

Summary of Revenues, Expenditures and Changes in Fund Balances
Fiscal Year 2020 Proposed Budget

ACTUAL	ADOPTED
BUDGET	ACTUAL
THRU	PROJECTED
MAY-	TOTAL
PROJECTED	ANNUAL
BUDGET	
FY 2018	FY 2019	APR-2019	SEP-2019	FY 2019	FY 2020	

ACCOUNT DESCRIPTION

REVENUES

Interest - Investments	$	225	$	-	$	194	$	80	$	274	$	-	
Special Assmnts- Tax Collector	94,045	94,045	93,200	845	$	94,045	94,045	
Special Assmnts- Discounts	(3,531)	(3,762)	(3,541)	-	(3,541)	(3,762)	
TOTAL REVENUES	90,739	90,283	89,853	925	90,778	90,283	

EXPENDITURES

Administrative
Misc-Assessmnt Collection Cost	1,451	1,881	1,793	17	1,810	1,881
Total Administrative	1,451	1,881	1,793	17	1,810	1,881

Debt Service

Principal Debt Retirement	75,000	75,000	-	75,000	75,000	80,000	
Interest Expense	15,026	11,448	5,724	5,724	11,448	7,871	
Total Debt Service	90,026	86,448	5,724	80,724	86,448	87,871	
TOTAL EXPENDITURES	91,477	88,329	7,517	80,741	88,258	89,751	
Excess (deficiency) of revenues Over (under) expenditures	

(738)	

1,954	

82,336	

(79,816)	

2,520	

531	

OTHER FINANCING SOURCES (USES)							
Contribution to (Use of) Fund Balance	-	1,954	-	-	-	531	
TOTAL OTHER SOURCES (USES)	-	1,954	-	-	-	531	
Net change in fund balance	(738)	1,954	82,336	(79,816)	2,520	531	
FUND BALANCE, BEGINNING	50,994	50,256	50,256	-	50,256	52,776	
FUND BALANCE, ENDING	$ 50,256	$ 52,210	$ 132,592	$ (79,816)	$	52,776	$ 53,308	

Annual Operating and Debt Service Budget Fiscal Year 2020

Page 8

HERITAGE SPRINGS
Community Development District

Debt Service Amortization Schedule
Series 2008 Capital Improvement Revenue Refunding Bonds

Date	Regular Principal	Principal Prepayments	Interest Expense	Outstanding Principal	

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	$165,000.00	$0.00	$11,925.00		

Annual Operating and Debt Service Budget Fiscal Year 2020
Page 9

Heritage Springs
Community Development District

Supporting Budget Schedules
Fiscal Year 2020

HERITAGE SPRINGS
Community Development District

Comparison of Assessment Rates Fiscal Year 2020 vs. Fiscal Year 2019

Bond

General Fund	Debt Service	Total Assessments per Unit

Units

Series	FY 2020	FY 2019 Percent	FY 2020	FY 2019	Percent	FY 2020	FY 2019	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
Fiscal Year 2020	Page 10