Somerset Community Development District

Transcription

1 Somerset Community Development District Board of Supervisors Meeting May 8, 2017 District Office: 120 Richard Jackson Blvd, Suite 220 Panama City Beach, Florida

2 SOMERSET COMMUNITY DEVELOPMENT DISTRICT AGENDA May 8, :00 P.M. (CDT) To be held at the Alys Beach Office, located at 9581 County Highway 30A, Alys Beach, Florida District Board of Supervisors Chris Gent John Rosenberg George Hartley Charles Reichman John Heiser Chairman Vice Chairman Supervisor Supervisor Supervisor District Manager Chris Cleveland Rizzetta & Company, Inc. District Counsel Tucker Mackie Hopping Green & Sams, P.A. District Engineer Jim Martelli Innerlight Engineering All Cellular phones and pagers must be turned off while in the meeting room. The District Agenda is comprised of five different sections: The special meeting will begin promptly at 2:00 p.m. (CDT) with the first section which is called Audience Comments. The Audience Comment portion of the agenda is where individuals may comment on matters that concern the District. Each individual is limited to three (3) minutes for such comment. The Board of Supervisors or Staff is not obligated to provide a response until sufficient time for research or action is warranted. IF THE COMMENT CONCERNS A MAINTENANCE RELATED ITEM, THE ITEM WILL NEED TO BE ADDRESSED BY THE DISTRICT MANAGER OUTSIDE THE CONTEXT OF THIS METTING. The second section is called Business Administration. The Business Administration section contains items that require the review and approval of the District Board of Supervisors as a normal course of business. The third section is called Business Items. The business items section contains items for approval by the District Board of Supervisors that may require discussion, motion and votes on an item-by-item basis. Occasionally, certain items for decision within this section are required by Florida Statute to be held as a Public Hearing. During the Public Hearing portion of the agenda item, the public will be permitted to provide one comment on the issue, prior to the Board of Supervisors discussion, motion and vote. Agendas can be reviewed by contacting the Manager s office at (850) at least seven days in advance of the scheduled meeting. Requests to address items that are not on this agenda must be submitted in writing with an explanation to the District Manager at least fourteen (14) days prior to the date of the meeting. The fourth section is called Staff Reports. This section allows the District Manager, Engineer, and Attorney to update the Board of Supervisors on any pending issues that are being researched for Board action. The final section is called Supervisor Requests. This is the section in which the Supervisors may request Staff to prepare certain items in an effort to meet residential needs. Public workshops sessions may be advertised and held in an effort to provide informational services. These sessions allow staff or consultants to discuss a policy or business matter in a more informal manner and allow for lengthy presentations prior to scheduling the item for approval. Typically no motions or votes are made during these sessions. Pursuant to provisions of the Americans with Disabilities Act, any person requiring special accommodations to participate in this meeting is asked to advise the District Office at (813) , at least 48 hours before the meeting. If you are hearing or speech impaired, please contact the Florida Relay Service at (800) , who can aid you in contacting the District Office. Any person who decides to appeal any decision made by the Board with respect to any matter considered at the meeting is advised that this same person will need a record of the proceedings and that accordingly, the person may need to ensure that a verbatim record of the proceedings is made, including the testimony and evidence upon which the appeal is to be based.

3 SOMERSET COMMUNITY DEVELOPMENT DISTRICT DISTRICT OFFICE 120 RICHARD JACKSON BLVD SUITE 220 PANAMA CITY BEACH, FL May 4, 2017 Board of Supervisors Somerset Community Development District Dear Board Members: AGENDA The regular meeting of the Board of Supervisors of the Somerset Community Development District will be held on Monday, May 8, 2017 at 2:00 p.m. (CDT) at the Alys Beach office located at 9581 County Hwy. 30A, Alys Beach, Florida The following is the agenda. 1. CALL TO ORDER/ROLL CALL 2. AUDIENCE COMMENTS 3. BUSINESS ADMINISTRATION A. Consideration of Minutes of the Board of Supervisors Meeting held on February 13, Tab 1 B. Acceptance of the Minutes of the Audit Committee Meeting held on February 13, Tab 2 C. Ratification of Operation and Maintenance Expenditures for January through March Tab 3 4. BUSINESS ITEMS A. Presentation of Proposed Budget for Fiscal Year 2017/ Tab 4 1. Consideration of Resolution , Approving Proposed Budget for Fiscal Year 2017/2018 and Setting the Public Hearing... Tab 5 B. Presentation of Registered Voter Count... Tab 6 5. STAFF REPORTS A. District Counsel B. District Engineer C. District Manager 6. SUPERVISOR REQUESTS 7. ADJOURNMENT We look forward to seeing you at the meeting. In the meantime, if you have any questions, please do not hesitate to call us at Sincerely, Chris Cleveland Chris Cleveland District Manager cc: David Walker, EBSCO Gulf Coast Development, Inc. Tucker Mackie, Hopping Green & Sams, P.A. Jim Martelli, Innerlight Engineering

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5 SOMERSET COMMUNITY DEVELOPMENT DISTRICT February 13, 2017 Minutes of Meeting Page 1 MINUTES OF MEETING Each person who decides to appeal any decision made by the Board with respect to any matter considered at the meeting is advised that the person may need to ensure that a verbatim record of the proceedings is made, including the testimony and evidence upon which such appeal is to be based. SOMERSET COMMUNITY DEVELOPMENT DISTRICT The regular meeting of the Board of Supervisors of the Somerset Community Development District was held on Monday, February 13, 2017 at 2:08 p.m. CST at the Alys Beach office located at 9581 County Highway 30A, Alys Beach, Florida Present and constituting a quorum: Chris Gent John Heiser Charles Reichman George Hartley Also present were: Chris Cleveland Katie Buchanan FIRST ORDER OF BUSINESS Board Supervisor, Chairman Board Supervisor, Assistant Secretary Board Supervisor, Assistant Secretary Board Supervisor, Assistant Secretary (joined the meeting in progress) District Manager, Rizzetta & Company, Inc. District Counsel, Hopping, Green & Sams (via speaker phone) Call to Order Mr. Cleveland called the meeting to order at 2:08 p.m. and read roll call confirming a quorum for the meeting SECOND ORDER OF BUSINESS Audience Comments There were no audience members present. THIRD ORDER OF BUSINESS Consideration of Minutes of the Board of Supervisors' Meeting Held on November 14, 2016 On a Motion by Mr. Gent, seconded by Mr. Reichman, with all in favor, the Board approved the Minutes of the Board of Supervisors Meeting held on November 14, 2016, for the Somerset Community Development District.

6 SOMERSET COMMUNITY DEVELOPMENT DISTRICT February 13, 2017 Minutes of Meeting Page 2 FOURTH ORDER OF BUSINESS Acceptance of Minutes of the Landowners Meeting Held on November 14, 2016 On a Motion by Mr. Gent, seconded by Mr. Heiser, with all in favor, the Board accepted the Minutes of the Landowners Meeting held on November 14, 2016, for the Somerset Community Development District. FIFTH ORDER OF BUSINESS Ratification of Operation and Maintenance Expenditures for September and December 2016 On a Motion by Mr. Gent, seconded by Mr. Reichman, with all in favor, the Board ratified the Operation and Maintenance Expenditures for September 2016 ($18,075.13), October 2016 ($34,023.44), November 2016 ($5,164.88) and December 2016 ($28,431.86) for the Somerset Community Development District. SIXTH ORDER OF BUSINESS Consideration of Audit Committee Rankings of Proposals to Perform Audits for Fiscal Years 2017, 2018, and 2019 Mr. Cleveland stated the Audit Committee had ranked Grau & Associates as the highest ranking proposer. On a Motion by Mr. Gent, seconded by Mr. Reichman, with all in favor, the Board accepted the Audit Committee recommendations for Grau & Associates to perform audits for Fiscal Years 2017, 2018, and 2019, for the Somerset Community Development District. SEVENTH ORDER OF BUSINESS Consideration of Resolution , Redesignating the Treasurer of the District Mr. Cleveland stated this resolution would remove William Rizzetta as Treasurer and designate Scott Brizendine, Manager of District Financial Services for Rizzetta and Company as the new Treasurer. On a Motion by Mr. Gent, seconded by Mr. Reichman, with all in favor, the Board adopted Resolution , Redesignating Mr. Scott Brizendine as Treasurer of the District, for the Somerset Community Development District.

7 SOMERSET COMMUNITY DEVELOPMENT DISTRICT February 13, 2017 Minutes of Meeting Page 3 EIGHTH ORDER OF BUSINESS Consideration of Resolution , Redesignating the Location of the Local Records Office Mr. Cleveland stated that the local records office must be located in the county wherein the District lies, i.e. Walton County, and that the Alys Beach Office was being recommended as the local records office. On a Motion by Mr. Gent, seconded by Mr. Heiser, with all in favor, the Board adopted Resolution , Redesignating the Location of the Local Records Office as the Alys Beach Office located at 9581 County Highway 30A, Alys Beach, Florida 32461, for the Somerset Community Development District. NINTH ORDER OF BUSINESS Staff Reports A. District Counsel Ms. Buchanan did not have anything to report to the Board at this time. B. District Engineer The District Engineer was not present. (George Hartley joined the meeting in progress at 2:13 p.m.) C. District Manager Mr. Cleveland stated that the next meeting of the Board of Supervisors is scheduled for 2:00 p.m. (CST), Monday, May 8, 2017, at the Alys Beach office located at 9581 County Highway 30A, Alys Beach, Florida TENTH ORDER OF BUSINESS Supervisor Requests There were no Supervisor requests at this time.

8 SOMERSET COMMUNITY DEVELOPMENT DISTRICT February 13, 2017 Minutes of Meeting Page 4 ELEVENTH ORDER OF BUSINESS Adjournment On a Motion by Mr. Gent, seconded by Mr. Reichman, with all in favor, the Board of Supervisors adjourned the meeting at 2:14 p.m. (CST), for the Somerset Community Development District. Secretary/Assistant Secretary Chairman/Vice Chairman

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10 SOMERSET COMMUNITY DEVELOPMENT DISTRICT February 13, 2017 Minutes of Meeting Page 1 MINUTES OF MEETING Each person who decides to appeal any decision made by the Board with respect to any matter considered at the meeting is advised that the person may need to ensure that a verbatim record of the proceedings is made, including the testimony and evidence upon which such appeal is to be based. SOMERSET COMMUNITY DEVELOPMENT DISTRICT A second meeting of the Audit Committee of the Somerset Community Development District was held on Monday, February 13, 2017 at 2:04 p.m. CST at the Alys Beach office located at 9581 County Highway 30A, Alys Beach, Florida Present and constituting a quorum: Chris Gent John Heiser Charles Reichman Also present were: Chris Cleveland Katie Buchanan FIRST ORDER OF BUSINESS Board Supervisor, Chairman Board Supervisor, Assistant Secretary Board Supervisor, Assistant Secretary District Manager, Rizzetta & Company, Inc. District Counsel, Hopping, Green & Sams (via speaker phone) Call to Order Mr. Cleveland called the meeting to order at 2:04 p.m. and read roll call confirming a quorum for the meeting SECOND ORDER OF BUSINESS Consideration of Minutes of the Audit Committee Meeting Held on November 14, 2016 On a Motion by Mr. Reichman, seconded by Mr. Gent, with all in favor, the Committee approved the Minutes of the Audit Committee Meeting held on November 14, 2016, for the Somerset Community Development District. THIRD ORDER OF BUSINESS Review and Ranking of Proposals Mr. Cleveland stated that the only proposal received was from Grau and Associates. A brief discussion ensued.

11 SOMERSET COMMUNITY DEVELOPMENT DISTRICT February 13, 2017 Minutes of Meeting Page 2 On a Motion by Mr. Gent, seconded by Mr. Reichman, with all in favor, the Committee ranked Grau & Associates as the highest proposer and recommended the District enter into an agreement with Grau & Associates for auditing services for Fiscal years 2017, 2018 and 2019, for the Somerset Community Development District. FOURTH ORDER OF BUSINESS Comments There were no comments from the committee members. FIFTH ORDER OF BUSINESS Adjournment On a Motion by Mr. Heiser, seconded by Mr. Gent, with all in favor, the Committee adjourned the meeting at 2:08 p.m. (CST), for the Somerset Community Development District. Secretary/Assistant Secretary Chairman/Vice Chairman

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13 Operation and Maintenance Expenditures January 2017 For Board Approval Attached please find the check register listing the Operation and Maintenance expenditures paid from January 1, 2017 through January 31, This does not include expenditures previously approved by the Board. The total items being presented: $18, Approval of Expenditures: Chairperson Vice Chairperson Assistant Secretary

14 Somerset Community Development District Paid Operation & Maintenance Expenditures January 1, 2017 Through January 31, 2017 Vendor Name Check Number Invoice Number Invoice Description Invoice Amount ALYS Beach Neighborhood Association Rip's Maint 11/16 9, Culligan Filter Service Value Salt 50lb Culligan Filter Service Rebuilt and Refurbished Water Softener Gulf Power Company /16 Gulf Power Company /16 3, E Cty Hwy 30A Irrigation 12/ E Cty Hwy 30A Irrigation 12/ Hopping Green & Sams General/Monthly Legal Services 11/ Mills Supply Pump Station Maintenance 01/ Rizzetta & Company, Inc District Management Fees 01/17 4, Rizzetta Technology Services, LLC INV Website Hosting Services 01/ The Lake Doctors, Inc Monthly Monitoring/Inspection 01/ Report Total 18,443.44

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30 Operation and Maintenance Expenditures February 2017 For Board Approval Attached please find the check register listing the Operation and Maintenance expenditures paid from February 1, 2017 through February 28, This does not include expenditures previously approved by the Board. The total items being presented: $35, Approval of Expenditures: Chairperson Vice Chairperson Assistant Secretary

31 Somerset Community Development District Paid Operation & Maintenance Expenditures February 1, 2017 Through February 28, 2017 Vendor Name Check Number Invoice Number Invoice Description Invoice Amount ALYS Beach Neighborhood Association Rip's Maint 12/16 9, Culligan Filter Service Value Salt 50lb Culligan Filter Service Value Salt 50lb Culligan Filter Service Rid O Rust 1000 Gal Culligan Filter Service Reversal of Finance Charge on Inv Gulf Power Company /17 Gulf Power Company /17 (11.23) 9954 E Cty Hwy 30A Irrigation 01/ E Cty Hwy 30A Irrigation 01/ Mills Supply Pump Station Maintenance 02/ Rip's Professional Lawn Care, Inc Palm Maintenance 50% of Contract Cost - March-August 2016 Rip's Professional Lawn Care, Inc Palm Maintenance 50% of Contract Cost - May-October 2016 Rip's Professional Lawn Care, Inc Medjool Palm Beds - Indonesian Polar White 7, , , Rizzetta & Company, Inc District Management Fees 02/17 4, The Lake Doctors, Inc Monthly Monitoring/Inspection 02/ Report Total 35,919.84

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52 Operation and Maintenance Expenditures March 2017 For Board Approval Attached please find the check register listing the Operation and Maintenance expenditures paid from March 1, 2017 through March 31, This does not include expenditures previously approved by the Board. The total items being presented: $47, Approval of Expenditures: Chairperson Vice Chairperson Assistant Secretary

53 Somerset Community Development District Paid Operation & Maintenance Expenditures March 1, 2017 Through March 31, 2017 Vendor Name Check Number Invoice Number Invoice Description Invoice Amount ALYS Beach Neighborhood Association Rip's Maint 01/17 9, Carr, Riggs & Ingram, LLC Initial Progress Billing - Audit Services FY 15/16 2, Charles E. Reichman CR Board of Supervisors Meeting Culligan Filter Service Value Salt 50lb Culligan Filter Service Rid o Rust - chemical feed system Culligan Filter Service Value Salt 50lb Gulf Power Company /17 Halifax Media Group, Northwest Florida 9954 E Cty Hwy 30A Irrigation 02/ Ad # /06/ Mills Supply Pump Station Maintenance 03/ Rip's Professional Lawn Care, Inc Medjool Palm Replacement 30, Rizzetta & Company, Inc District Management Fees 03/17 4, Rizzetta Technology Services, LLC INV Website Hosting Services 02/ Rizzetta Technology Services, LLC INV Website Hosting Services 03/ The Lake Doctors, Inc Monthly Monitoring/Inspection 03/ Report Total 47,892.80

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71 Somerset Community Development District Proposed Budget for Fiscal Year 2017/2018 Presented by: Rizzetta & Company, Inc. 120 Richard Jackson Blvd Suite 220 Panama City Beach, Florida Phone: rizzetta.com

72 The following are enclosed in this Proposed Budget Packet: General Fund Budget Account Category Descriptions Reserve Fund Budget Account Category Descriptions Debt Service Fund Budget Account Category Descriptions Proposed General Fund Budget worksheets for Fiscal Year 2017/2018 Proposed Reserve Fund worksheets for Fiscal Year 2017/2018 Proposed Debt Service Fund Budget worksheets for Fiscal Year 2017/2018 Current Fiscal Year versus Proposed Fiscal Year Assessment Charts Proposed Assessments Charts for Fiscal Year 2017/2018 THE BUDGET PROPOSAL PACKET FOR FISCAL YEAR 2017/2018 IS SIMPLY A PROPOSED BUDGET AND PROPOSED LEVEL OF ASSESSMENTS WHICH ARE DONE AS PART OF THE BUDGET PROCESS. THESE ARE NOT FINAL AND SHOULD NOT BE CONSTRUED AS FINAL, UNTIL AFTER THE BOARD OF SUPERVISORS HAS HELD A PUBLIC HEARING ON THE BUDGET AND ADOPTED THE FINAL BUDGET AND LEVIED ASSESSMENTS. GENERAL FUND BUDGET 1

73 ACCOUNT CATEGORY DESCRIPTION The General Fund Budget Account Category Descriptions are subject to change at any time depending on its application to the District. Please note, not all General Fund Budget Account Category Descriptions are applicable to the District indicated above. Uses of the descriptions contained herein are intended for general reference. REVENUES: Interest Earnings: The District may earn interest on its monies in the various operating accounts. Tax Roll: The District levies Non-Ad Valorem Special Assessments on all of the assessable property within the District to pay for operating expenditures incurred during the Fiscal Year. The assessments may be collected in two ways. The first is by placing them on the County s Tax Roll, to be collected with the County s Annual Property Tax Billing. This method is only available to land properly platted within the time limits prescribed by the County. Off Roll: For lands not on the tax roll and that is by way of a direct bill from the District to the appropriate property owner. Developer Contributions: The District may enter into a funding agreement and receive certain prescribed dollars from the Developer to off-set expenditures of the District. Event Rental: The District may receive monies for event rentals for such things as weddings, birthday parties, etc. Miscellaneous Revenues: The District may receive monies for the sale or provision of electronic access cards, entry decals etc. Facilities Rentals: The District may receive monies for the rental of certain facilities by outside sources, for such items as office space, snack bar/restaurants etc. EXPENDITURES ADMINISTRATIVE: Supervisor Fees: The District may compensate its supervisors within the appropriate statutory limits of $ maximum per meeting within an annual cap of $4, per supervisor. Administrative Services: The District will incur expenditures for the day to today operation of District matters. These items include but are not limited to mailing and preparation of agenda packages, overnight deliveries, facsimiles and long distance phone calls. 2

74 Also, each Board Supervisor and the District Staff are entitled to reimbursement for travel expenses per Florida Statutes (8). Finally, this line item also includes a cost for the storage of all the District s official records, supplies and files. District Management: The District as required by statute, will contract with a firm to provide for management and administration of the District s day to day administrative needs. The cost to maintain the minutes of all Board meetings, preparing various resolutions and all other secretarial duties requested by the District throughout the year is also reflected in this amount. District Engineer: The District s engineer provides general engineering services to the District. Among these services are attendance at and preparation for monthly board meetings, review of construction invoices and all other engineering services requested by the district throughout the year. Disclosure Report: The District is required to file quarterly and annual disclosure reports, as required in the District s Trust Indenture, with the specified repositories. This is contracted out to a third party in compliance with the Trust Indenture. Trustee s Fees: The District will incur annual trustee s fees upon the issuance of bonds for the oversight of the various accounts relating to the bond issues. Assessment Roll: The District will contract with a firm to maintain the assessment roll and annually levy a Non-Ad Valorem assessment for operating and debt service expenses. Financial & Revenue Collections: Services include, but are not limited to responding to bondholder questions, prepayment analysis, long term pay-offs and true-up analysis. This line item also includes the fees incurred for a Collection Agent to collect the funds for the principal and interest payment for its shortterm bond issues and any other bond related collection needs. These funds are collected as prescribed in the Trust Indenture. The Collection Agent also provides for the release of liens on property after the full collection of bond debt levied on particular properties. Accounting Services: The District has contracted for maintenance of accounting records. These services include, but are not limited to accounts payable, accounts receivable and preparation of financial reports for the district. This also includes all preparations necessary for the fiscal year end audits to be done. Auditing Services: The District is required annually to conduct an audit of its financial records by an Independent Certified Public Accounting firm, once it reaches certain revenue and expenditure levels, or has issued bonds and incurred debt. Arbitrage Rebate Calculation: The District is required to calculate the interest earned from bond proceeds each year pursuant to the Internal Revenue Code of The Rebate Analyst is required to verify that the District has not received earnings higher than the yield of the bonds. Public Officials Liability Insurance: The District will incur expenditures for public officials liability insurance for the Board and Staff. 3

75 Legal Advertising: The District will incur expenditures related to legal advertising. The items for which the District will advertise include, but are not limited to meeting schedules, special meeting notices, and public hearings, bidding etc. for the District based on statutory guidelines Bank Fees: The District will incur bank service charges during the year. Dues, Licenses & Fees: The District is required to pay an annual fee to the Department of Economic Opportunity, along with other items which may require licenses or permits, etc. Miscellaneous Fees: The District could incur miscellaneous throughout the year, which may not fit into any standard categories. Website Hosting, Maintenance and The District may incur fees as they relate to the development and ongoing maintenance of its own website along with possible services if requested. District Counsel: The District s legal counsel provides general legal services to the District. Among these services are attendance at and preparation for monthly board meetings, review of operating and maintenance contracts and all other legal services requested by the district throughout the year. EXPENDITURES - FIELD OPERATIONS: Deputy Services: The District may wish to contract with the local police agency to provide security for the District. Security Services and Patrols: The District may wish to contract with a private company to provide security for the District. Electric Utility Services: The District will incur electric utility expenditures for general purposes such as irrigation timers, lift station pumps, fountains, etc. Street Lights: The District may have expenditures relating to street lights throughout the community. These may be restricted to main arterial roads or in some cases to all street lights within the District s boundaries. Utility - Recreation Facility: The District may budget separately for its recreation and or amenity electric separately. Gas Utility Services: The District may incur gas utility expenditures related to district operations at its facilities such as pool heat etc. Garbage - Recreation Facility: The District will incur expenditures related to the removal of garbage and solid waste. 4

76 Solid Waste Assessment Fee: The District may have an assessment levied by another local government for solid waste, etc. Water-Sewer Utility Services: The District will incur water/sewer utility expenditures related to district operations. Utility - Reclaimed: The District may incur expenses related to the use of reclaimed water for irrigation. Aquatic Maintenance: Expenses related to the care and maintenance of the lakes and ponds for the control of nuisance plant and algae species. Fountain Service Repairs & Maintenance: The District may incur expenses related to maintaining the fountains within throughout the Parks & Recreational areas Lake/Pond Bank Maintenance: The District may incur expenditures to maintain lake banks, etc. for the ponds and lakes within the District s boundaries, along with planting of beneficial aquatic plants, stocking of fish, mowing and landscaping of the banks as the District determines necessary. Wetland Monitoring & Maintenance: The District may be required to provide for certain types of monitoring and maintenance activities for various wetlands and waterways by other governmental entities. Mitigation Area Monitoring & Maintenance: The District may be required to provide for certain types of monitoring and maintenance activities for various mitigation areas by other governmental entities. Aquatic Plant Replacement: The expenses related to replacing beneficial aquatic plants, which may or may not have been required by other governmental entities. General Liability Insurance: The District will incur fees to insure items owned by the District for its general liability needs Property Insurance: The District will incur fees to insure items owned by the District for its property needs Entry and Walls Maintenance: The District will incur expenditures to maintain the entry monuments and the fencing. Landscape Maintenance: The District will incur expenditures to maintain the rights-of-way, median strips, recreational facilities including pond banks, entryways, and similar planting areas within the District. These services include but are not limited to monthly landscape maintenance, fertilizer, pesticides, annuals, mulch, and irrigation repairs. Irrigation Maintenance: The District will incur expenditures related to the maintenance of the irrigation systems. Irrigation Repairs: The District will incur expenditures related to repairs of the irrigation systems. 5

77 Landscape Replacement: Expenditures related to replacement of turf, trees, shrubs etc. Field Services: The District may contract for field management services to provide landscape maintenance oversight. Miscellaneous Fees: The District may incur miscellaneous expenses that do not readily fit into defined categories in field operations. Gate Phone: The District will incur telephone expenses if the District has gates that are to be opened and closed. Street/Parking Lot Sweeping: The District may incur expenses related to street sweeping for roadways it owns or are owned by another governmental entity, for which it elects to maintain. Gate Facility Maintenance: Expenses related to the ongoing repairs and maintenance of gates owned by the District if any. Sidewalk Repair & Maintenance: Expenses related to sidewalks located in the right of way of streets the District may own if any. Roadway Repair & Maintenance: Expenses related to the repair and maintenance of roadways owned by the District if any. Employees - Salaries: The District may incur expenses for employees/staff members needed for the recreational facilities such as Clubhouse Staff. Employees - P/R Taxes: This is the employer s portion of employment taxes such as FICA etc. Employee - Workers Comp: Fees related to obtaining workers compensation insurance. Management Contract: The District may contract with a firm to provide for the oversight of its recreation facilities. Maintenance & Repair: The District may incur expenses to maintain its recreation facilities. Facility Supplies: The District may have facilities that required various supplies to operate. Gate Maintenance & Repairs: Any ongoing gate repairs and maintenance would be included in this line item. Telephone, Fax, Internet: The District may incur telephone, fax and internet expenses related to the recreational facilities. Office Supplies: The District may have an office in its facilities which require various office related supplies. Clubhouse - Facility Janitorial Service: Expenses related to the cleaning of the facility and related supplies. 6

78 Pool Service Contract: Expenses related to the maintenance of swimming pools and other water features. Pool Repairs: Expenses related to the repair of swimming pools and other water features. Security System Monitoring & Maintenance: The District may wish to install a security system for the clubhouse Clubhouse Miscellaneous Expense: Expenses which may not fit into a defined category in this section of the budget Athletic/Park Court/Field Repairs: Expense related to any facilities such as tennis, basketball etc. Trail/Bike Path Maintenance: Expenses related to various types of trail or pathway systems the District may own, from hard surface to natural surfaces. Special Events: Expenses related to functions such as holiday events for the public enjoyment Miscellaneous Fees: Monies collected and allocated for fees that the District could incur throughout the year, which may not fit into any standard categories. Miscellaneous Contingency: Monies collected and allocated for expenses that the District could incur throughout the year, which may not fit into any standard categories. Capital Outlay: improvements. Monies collected and allocated for various projects as they relate to public 7

79 RESERVE FUND BUDGET ACCOUNT CATEGORY DESCRIPTION The Reserve Fund Budget Account Category Descriptions are subject to change at any time depending on its application to the District. Please note, not all Reserve Fund Budget Account Category Descriptions are applicable to the District indicated above. Uses of the descriptions contained herein are intended for general reference. REVENUES: Tax Roll: The District levies Non-Ad Valorem Special Assessments on all of the assessable property within the District to pay for operating expenditures incurred during the Fiscal Year. The assessments may be collected in two ways. The first is by placing them on the County s Tax Roll, to be collected with the County s Annual Property Tax Billing. This method is only available to land properly platted within the time limits prescribed by the County. Off Roll: For lands not on the tax roll and that is by way of a direct bill from the District to the appropriate property owner. Developer Contributions: The District may enter into a funding agreement and receive certain prescribed dollars from the Developer to off-set expenditures of the District. Miscellaneous Revenues: The District may receive monies for the sale or provision of electronic access cards, entry decals etc. EXPENDITURES: Capital Reserve: Monies collected and allocated for the future repair and replacement of various capital improvements such as club facilities, swimming pools, athletic courts, roads, etc. Capital Outlay: improvements. Monies collected and allocated for various projects as they relate to public 8

80 DEBT SERVICE FUND BUDGET ACCOUNT CATEGORY DESCRIPTION The Debt Service Fund Budget Account Category Descriptions are subject to change at any time depending on its application to the District. Please note, not all Debt Service Fund Budget Account Category Descriptions are applicable to the District indicated above. Uses of the descriptions contained herein are intended for general reference. REVENUES: Special Assessments: The District may levy special assessments to repay the debt incurred by the sale of bonds to raise working capital for certain public improvements. The assessments may be collected in the same fashion as described in the Operations and Maintenance Assessments. EXPENDITURES ADMINISTRATIVE: Bank Fees: The District may incur bank service charges during the year. Debt Service Obligation: This would a combination of the principal and interest payment to satisfy the annual repayment of the bond issue debt. 9

81 Proposed Budget Somerset Community Development District General Fund Fiscal Year 2017/2018 Chart of Accounts Classification Actual YTD through 03/31/17 Projected Annual Totals 2016/2017 Annual Budget for 2016/2017 Projected Budget variance for 2016/2017 Budget for 2017/2018 Budget Increase (Decrease) vs 2016/2017 Comments 1 2 REVENUES 3 14 Special Assessments 15 Tax Roll* $ 38,148 $ 131,027 $ 131,027 $ - $ 131,027 $ - 17 Off Roll* $ 330,287 $ 660,574 $ 233,748 $ 426,826 $ 233,748 $ TOTAL REVENUES $ 368,435 $ 791,601 $ 364,775 $ 426,826 $ 364,775 $ Balance Forward from Prior Year $ - $ - $ - $ - $ - $ TOTAL REVENUES AND BALANCE FORWARD $ 368,435 $ 791,601 $ 364,775 $ 426,826 $ 364,775 $ *Allocation of assessments between the Tax Roll and Off Roll are estimates only and subject to change prior to certification EXPENDITURES - ADMINISTRATIVE Legislative 43 Supervisor Fees $ 800 $ 1,600 $ 2,400 $ 800 $ 2,400 $ - 44 Financial & Administrative 45 Administrative Services $ 2,250 $ 4,500 $ 4,500 $ - $ 4,500 $ - 46 District Management $ 12,500 $ 25,000 $ 25,000 $ - $ 25,700 $ District Engineer $ - $ 3,600 $ 3,600 $ - $ 3,600 $ - 48 Disclosure Report $ - $ 500 $ 500 $ - $ 500 $ - 49 Trustees Fees $ 3,833 $ 6,500 $ 6,500 $ - $ 6,500 $ - 51 Financial & Revenue Collections $ 7,500 $ 10,000 $ 10,000 $ - $ 10,000 $ - 52 Accounting Services $ 7,500 $ 15,000 $ 15,000 $ - $ 17,000 $ 2, Auditing Services $ 4,500 $ 4,200 $ 4,200 $ - $ 3,200 $ (1,000) Grau Selected 54 Arbitrage Rebate Calculation $ - $ 650 $ 650 $ - $ 650 $ - 58 Travel $ - $ 500 $ 500 $ - $ 500 $ - 59 Public Officials Liability Insurance $ 2,750 $ 5,000 $ 5,000 $ - $ 5,000 $ - 60 Legal Advertising $ 896 $ 1,800 $ 1,800 $ - $ 1,800 $ - 61 Bank Fees $ - $ - $ 250 $ 250 $ 250 $ - 62 Dues, Licenses & Fees $ 175 $ 175 $ 175 $ - $ 175 $ - 63 Miscellaneous Fees $ - $ - $ 500 $ 500 $ 500 $ - 66 Website Hosting, Maintenance, Backup (and $ 600 $ 1,200 $ 2,600 $ 1,400 $ 2,600 $ - 67 Legal Counsel 68 District Counsel $ 600 $ 1,200 $ 14,000 $ 12,800 $ 14,000 $ - 69 District Counsel Assessment Collections $ - $ - $ - $ - $ - $ Administrative Subtotal $ 43,904 $ 81,425 $ 97,175 $ 15,750 $ 98,875 $ 1, EXPENDITURES - FIELD OPERATIONS Electric Utility Services 92 Street Lights $ - $ - $ 27,000 $ 27,000 $ 27,000 $ - 95 Utility-Irrigation $ 1,922 $ 3,844 $ 7,500 $ 3,656 $ 7,500 $ Stormwater Control 115 Lake/Pond Bank Maintenance $ 240 $ 480 $ 5,000 $ 4,520 $ 5,000 $ Aquatic Plant Replacement $ - $ 3,600 $ 3,600 $ - $ 3,600 $ Stormwater System Maintenance $ - $ 5,000 $ 5,000 $ - $ 5,000 $ Miscellaneous Expense/Pond Liner Repair $ - $ 2,500 $ 2,500 $ - $ 2,500 $ Other Physical Environment 130 General Liability Insurance $ 5,050 $ 10,100 $ 6,500 $ (3,600) $ 6,500 $ - Potential Increase at renewal 135 Landscape Maintenance $ 62,387 $ 95,000 $ 95,000 $ - $ 95,000 $ Ornamental Lighting & Maintenance $ - $ 500 $ 500 $ - $ 500 $ Irrigation System Supply Pump Maintenance $ 1,200 $ 2,400 $ 6,200 $ 3,800 $ 6,000 $ (200) Irrigation Well Maintenance & Repair $ 3,600 $ 3,600 $ 3,600 $ 3,600 $ - Irrigation Repairs $ 3,749 $ 6,000 $ 7,500 $ 7,500 $ 6,000 $ (1,500) Irrigation System-Feeder Pump Maintenance $ 80 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ - Irrigation System-feeder Pump Chemicals $ 2,767 $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ Landscape - Mulch $ - $ 1,500 $ 1,500 $ - $ 1,500 $ Landscape Miscellaneous Palm Trees $ 15,400 $ 15,400 $ 9,000 $ (6,400) $ 9,000 $ Landscape Replacement Plants, Shrubs, Trees $ 30,250 $ 73,200 $ 73,200 $ - $ 73,200 $ Road & Street Facilities 155 Street/ Parking Lot Sweeping $ - $ 5,000 $ 5,000 $ - $ 5,000 $ Street Light Decorative Light Maintenance $ - $ 2,000 $ 2,000 $ - $ 2,000 $ Field Operations Subtotal $ 123,045 $ 237,124 $ 267,600 $ 47,076 $ 265,900 $ (1,700) Contingency for County TRIM Notice TOTAL EXPENDITURES $ 166,949 $ 318,549 $ 364,775 $ 62,826 $ 364,775 $ EXCESS OF REVENUES OVER EXPENDITURES $ 201,486 $ 473,052 $ - $ 489,652 $ - $ -

82 Proposed Budget Somerset Community Development District Reserve Fund Fiscal Year 2017/2018 Chart of Accounts Classification Actual YTD through 03/31/17 Projected Annual Totals 2016/2017 Annual Budget for 2016/2017 Projected Budget variance for 2016/2017 Budget for 2017/2018 Budget Increase (Decrease) vs 2016/ REVENUES 3 4 Special Assessments 5 Tax Roll* $ - $ - $ 46,500 $ (46,500) $ 46,500 $ - 6 Off Roll* $ - $ - $ 103,500 $ (103,500) $ 103,500 $ - 7 Contributions & Donations from Private Sources 8 Developer Contributions $ - $ - $ - $ - $ - $ - 9 Owners Association $ - $ - $ - $ - $ - $ - 10 Other Miscellaneous Revenues 11 Miscellaneous Revenues $ - $ - $ - $ - $ - $ TOTAL REVENUES $ - $ - $ 150,000 $ (150,000) $ 150,000 $ Balance Forward from Prior Year $ - $ - $ - $ - $ - $ TOTAL REVENUES AND BALANCE FORWARD $ - $ - $ 150,000 $ (150,000) $ 150,000 $ *Allocation of assessments between the Tax Roll and Off Roll are estimates only and subject to change prior to certification EXPENDITURES Contingency 24 Capital Reserves $ - $ - $ 150,000 $ 150,000 $ - $ (150,000) 25 Capital Outlay $ - $ - $ - $ - $ - $ TOTAL EXPENDITURES $ - $ - $ 150,000 $ 150,000 $ - $ (150,000) EXCESS OF REVENUES OVER EXPENDITURES $ - $ - $ - $ - $ 150,000 $ 150, Comments

83 Budget Template Somerset Community Development District Debt Service Fiscal Year 2017/2018 Chart of Accounts Classification Series 2005 Budget for 2017/2018 REVENUES Special Assessments Net Special Assessments $ 1,149, $ 1,149, TOTAL REVENUES $ 1,149, $ 1,149, EXPENDITURES Administrative Financial & Administrative Bank Fees 0 Debt Service Obligation $ 1,149, $ 1,149, Administrative Subtotal $ 1,149, $ 1,149, TOTAL EXPENDITURES $ 1,149, $ 1,149, EXCESS OF REVENUES OVER EXPENDITURES 0 0 Collection and Discount % applicable to the county: 7.0% Gross assessments $ 1,236, Notes: 1. Tax Roll Collection Costs for Walton County is 7.0% of Tax Roll. Budgeted net of tax roll assessments. See Assessment Table.

84 Somerset Community Development District FISCAL YEAR 2017/2018 O&M & DEBT SERVICE ASSESSMENT SCHEDULE 2017/2018 O&M Budget $514, Walton Co. 7% Collection Cost: 7% $38, /2018 Total: $553, $553, /2017 O&M Budget $514, /2018 O&M Budget $514, Total Difference: $0.00 PER UNIT ANNUAL ASSESSMENT Proposed Increase / Decrease 2016/ /2018 $ % Debt Service - Commercial $1, $1, $ % Operations/Maintenance - Commercial $ $ $ % Total $1, $1, $ % Debt Service - Hotel/Inn $ $ $ % Operations/Maintenance - Hotel/Inn $ $ $ % Total $1, $1, $ % Debt Service - Single Family $1, $1, $ % Operations/Maintenance - Single Family $ $ $ % Total $2, $2, $ %

85 SOMERSET COMMUNITY DEVELOPMENT DISTRICT FISCAL YEAR 2017/2018 O&M & DEBT SERVICE ASSESSMENT SCHEDULE TOTAL O&M BUDGET COLLECTION TOTAL O&M ASSESSMENT $514, % $38, $553, UNITS ASSESSED TOTAL SERIES 2005 ALLOCATION OF O&M ASSESSMENT SERIES 2005 DEBT TOTAL % TOTAL TOTAL DEBT SERVICE SERIES 2005 LU LOT SIZE O&M SERVICE (1) EAU FACTOR EAU's EAU's O&M BUDGET ASSESSMENT O&M DEBT SERVICE (2) TOTAL (3) 0 PLATTED LOTS SF SINGLE FAMILY % $198, $442, $ $1, $2, Total Platted % $198, $442, PER LOT ANNUAL ASSESSMENT UNPLATTED LOTS C COMMERICAL K sf % $96, $215, $ $1, $1, H HOTEL/INN % $21, $48, $ $ $1, SF SINGLE FAMILY % $236, $528, $ $1, $2, Total Unplatted % $355, $793, TOTAL COMMUNITY % $553, $1,236, LESS: Walton County Collection Costs and Early Payment Discount Costs ($38,746.51) ($86,525.94) Net Revenue to be Collected $514, $1,149, PER ACRE ASSESSMENTS - UNPLATTED O&M DEBT SERVICE TOTAL UNPLAT BY ACREAGE (4) $355, $793, $3, $8, $12, (1) Reflects the number of total lots with Series 2005 debt outstanding. (2) Annual debt service assessment per lot adopted in connection with the Series 2005 bond issue. Annual assessment includes principal, interest, Walton County collection costs and early payment discount costs. (3) (4) Annual assessment that will appear on November 2017 Walton County property tax bill. Amount shown includes all applicable collection costs. Property owner is eligible for a discount of up to 4% if paid early. Assessments are allocated on an equal assessment per acre basis until lots are platted.

86 SOMERSET COMMUNITY DEVELOPMENT DISTRICT FISCAL YEAR 2017/2018 O&M & DEBT SERVICE ASSESSMENT SCHEDULE TOTAL O&M BUDGET COLLECTION TOTAL O&M ASSESSMENT $514, % $38, $553, UNITS ASSESSED TOTAL SERIES 2005 ALLOCATION OF O&M ASSESSMENT SERIES 2005 DEBT TOTAL % TOTAL TOTAL DEBT SERVICE SERIES 2005 LU LOT SIZE O&M SERVICE (1) EAU FACTOR EAU's EAU's O&M BUDGET ASSESSMENT O&M DEBT SERVICE (2) TOTAL (3) 0 PLATTED LOTS SF SINGLE FAMILY % $198, $442, $ $1, $2, Total Platted % $198, $442, PER LOT ANNUAL ASSESSMENT UNPLATTED LOTS C COMMERICAL K sf % $96, $215, $ $1, $1, H HOTEL/INN % $21, $48, $ $ $1, SF SINGLE FAMILY % $236, $528, $ $1, $2, Total Unplatted % $355, $793, TOTAL COMMUNITY % $553, $1,236, LESS: Walton County Collection Costs and Early Payment Discount Costs ($38,746.51) ($86,525.94) Net Revenue to be Collected $514, $1,149, PER ACRE ASSESSMENTS - UNPLATTED O&M DEBT SERVICE TOTAL UNPLAT BY ACREAGE (4) $355, $793, $3, $8, $12, (1) Reflects the number of total lots with Series 2005 debt outstanding. (2) Annual debt service assessment per lot adopted in connection with the Series 2005 bond issue. Annual assessment includes principal, interest, Walton County collection costs and early payment discount costs. (3) (4) Annual assessment that will appear on November 2017 Walton County property tax bill. Amount shown includes all applicable collection costs. Property owner is eligible for a discount of up to 4% if paid early. Assessments are allocated on an equal assessment per acre basis until lots are platted.

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88 RESOLUTION A RESOLUTION OF THE BOARD OF SUPERVISORS OF THE SOMERSET COMMUNITY DEVELOPMENT DISTRICT APPROVING PROPOSED BUDGETS FOR FISCAL YEAR 2017/2018 AND SETTING A PUBLIC HEARING THEREON PURSUANT TO FLORIDA LAW; ADDRESSING TRANSMITTAL, POSTING AND PUBLICATION REQUIREMENTS; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the District Manager has heretofore prepared and submitted to the Board of Supervisors of the Somerset Community Development District ( Board ) prior to June 15, 2017, proposed budgets for Fiscal Year 2017/2018; and WHEREAS, the Board has considered the proposed budgets and desires to set the required public hearing thereon. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF SUPERVISORS OF THE SOMERSET COMMUNITY DEVELOPMENT DISTRICT: 1. BUDGETS APPROVED. The budgets proposed by the District Manager for Fiscal Year 2017/2018 attached hereto as Exhibit A are hereby approved as the basis for conducting a public hearing to adopt said budgets. 2. SETTING A PUBLIC HEARING. A public hearing on said approved budgets is hereby declared and set for the following date, hour and location: DATE: HOUR: LOCATION: 3. TRANSMITTAL OF BUDGETS TO LOCAL GENERAL PURPOSE GOVERNMENT. The District Manager is hereby directed to submit a copy of the proposed budgets to Walton County at least 60 days prior to the hearing set above. 4. POSTING OF BUDGETS. In accordance with Section , Florida Statutes, the District s Secretary is further directed to post the approved budgets on the District s website at least two days before the budget hearing date as set forth in Section 2. If the District does not yet have its own website, the District's Secretary is directed to transmit the approved budgets to the manager or administrator of Walton County for posting on Walton County s website.

89 5. PUBLICATION OF NOTICE. Notice of this public hearing shall be published in the manner prescribed in Florida law. 6. EFFECTIVE DATE. This Resolution shall take effect immediately upon adoption. PASSED AND ADOPTED THIS 8 th DAY OF MAY, ATTEST: SOMERSET COMMUNITY DEVELOPMENT DISTRICT Secretary By: Its: Exhibit A: Fiscal Year Budget

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