HERITAGE BAY. Community Development District. Annual Operating and Debt Service Budget. Fiscal Year 2017

Transcription

1 Version 6 - Final Budget (Adopted August 4, 2016) Prepared by:

2 Table of Contents Page # OPERATING BUDGET General Fund Summary of Revenues, Expenditures and Changes in Fund Balances Amortization Schedule Budget Narrative 5-7 Exhibit A - Allocation of Fund Balances. 8 DEBT SERVICE BUDGETS Series 2014 Summary of Revenues, Expenditures and Changes in Fund Balances.. 9 Amortization Schedule.. 10 Budget Narrative 11 SUPPORTING BUDGET SCHEDULES Non-Ad Valorem Assessment Summary.. 12

3 Heritage Bay Operating Budget

4 General Fund Summary of Revenues, Expenditures and Changes in Fund Balances Adopted Budget ADOPTED ACTUAL PROJECTED TOTAL ANNUAL ACTUAL BUDGET THRU JULY- PROJECTED BUDGET ACCOUNT DESCRIPTION FY 2015 FY 2016 JUNE-2016 SEP-2016 FY 2016 FY 2017 REVENUES Interest - Investments $ 606 $ 500 $ 314 $ 126 $ 440 $ 500 Special Assmnts- Tax Collector 250, , , , ,000 Special Assmnts- Wall Project - 62,500 62,500-62,500 62,500 Special Assmnts- Reserves - 31,250 31,250-31,250 31,250 Special Assmnts- Discounts (9,096) (13,750) (12,759) - (12,759) (13,750) Other Miscellaneous Revenue ,765-14,765 - TOTAL REVENUES 241, , , , ,500 EXPENDITURES Administrative P/R-Board of Supervisors 7,200 8,000 5,800 1,000 6,800 8,000 FICA Taxes ProfServ-Arbitrage Rebate 1, ProfServ-Dissemination Agent 1, ProfServ-Engineering 14,161 14,000 3,244 3,450 6,694 14,000 ProfServ-Legal Services 16,965 5,000 2,828 2,172 5,000 5,000 ProfServ-Mgmt Consulting Serv 38,246 39,394 29,545 9,849 39,394 40,576 ProfServ-Property Appraiser 3,750 5,156-3,750 3,750 5,156 ProfServ-Special Assessment 5,000 5,150 5,150-5,150 5,305 ProfServ-Trustee Fees 5, ProfServ-Web Site Maintenance Auditing Services 3,600 3,600 3,600-3,600 3,600 Postage and Freight 2,662 1, ,144 2,700 2,700 Insurance - General Liability 12,754 13,000 14,348-14,348 15,783 Printing and Binding 1,293 1, ,260 1,300 Legal Advertising 2,195 1,200 2,482 1,059 3,541 3,700 Misc-Bank Charges Misc-Assessmnt Collection Cost 2,947 6,876 6,644-6,644 6,875 Office Supplies Annual District Filing Fee Total Administrative 120, ,513 76,027 24, , ,832 Field ProfServ-Field Management 12,000 12,360 9,270 3,090 12,360 12,731 Contracts-Lake and Wetland 57, R&M-Aquascaping 12, R&M-Lake Erosion 43, R&M-Contingency 5,900 2,000-1,000 1,000 1,187 Wall Improvements 41, , , ,085 - Total Field 172, , ,355 4, ,445 13,918 Page 1

5 General Fund Summary of Revenues, Expenditures and Changes in Fund Balances Adopted Budget ADOPTED ACTUAL PROJECTED TOTAL ANNUAL ACTUAL BUDGET THRU JULY- PROJECTED BUDGET ACCOUNT DESCRIPTION FY 2015 FY 2016 JUNE-2016 SEP-2016 FY 2016 FY 2017 Lakes and Ponds Contracts-Lake and Wetland - 60,744 45,558 15,186 60,744 66,000 Contracts-Water Quality Monitoring ,642 5,642 20,000 R&M-Aquascaping - 5,000 2,600-2,600 5,000 R&M-Lake Erosion - 35,000 7,694-7,694 10,000 R&M-Contingency - 5, ,000 Impr - Miscellaneous - 2, ,000 Reserve - Lakes - 31, ,250 Total Lakes and Ponds - 138,994 55,852 20,828 76, ,250 Debt Service Operating Loan Repayment - 33,333-33,333 33,333 50,000 Interest Expense-Note - 6, ,500 3,473 7,750 Reserve - Loan variance ,750 Total Debt Service - 40, ,833 36,806 62,500 TOTAL EXPENDITURES 293, , ,207 84, , ,500 Excess (deficiency) of revenues Over (under) expenditures (51,783) (187,870) (78,137) (84,870) (163,007) - OTHER FINANCING SOURCES (USES) Loan/Note Proceeds , ,462 - Contribution to (Use of) Fund Balance - (187,870) TOTAL OTHER SOURCES (USES) - (187,870) 246, ,462 - Net change in fund balance (51,783) (187,870) 168,325 (84,870) 83,455 - FUND BALANCE, BEGINNING 147,053 95,270 95,270-95, ,725 FUND BALANCE, ENDING $ 95,270 $ (92,600) $ 263,595 $ (84,870) $ 178,725 $ 178,725 Page 2

6 $250,000 Loan, 5 years, 4.0% Amortization Schedule Date Payment Principal Interest Principal Balance $250, /1/2016 $5, $4, $ $245, /1/2016 4, , $241, /1/2016 4, , $237, /1/2016 4, , $233, /1/2016 4, , $229, /1/2016 4, , $224, /1/2016 4, , $220, /1/2016 4, , $216, /1/2016 4, , $212, /1/2016 4, , $208, /1/2016 4, , $204, /1/2017 4, , $199, /1/2017 4, , $195, /1/2017 4, , $191, /1/2017 4, , $187, /1/2017 4, , $183, /1/2017 4, , $179, /1/2017 4, , $174, /1/2017 4, , $170, /1/2017 4, , $166, /1/2017 4, , $162, /1/2017 4, , $158, /1/2017 4, , $154, /1/2018 4, , $149, /1/2018 4, , $145, /1/2018 4, , $141, /1/2018 4, , $137, /1/2018 4, , $133, /1/2018 4, , $129, /1/2018 4, , $124, /1/2018 4, , $120, /1/2018 4, , $116, /1/2018 4, , $112, /1/2018 4, , $108, /1/2018 4, , $104, /1/2019 4, , $99, /1/2019 4, , $95, /1/2019 4, , $91, /1/2019 4, , $87, /1/2019 4, , $83, /1/2019 4, , $79, /1/2019 4, , $74, /1/2019 4, , $70, /1/2019 4, , $66, Page 3

7 $250,000 Loan, 5 years, 4.0% Amortization Schedule Date Payment Principal Interest Principal Balance 10/1/2019 4, , $62, /1/2019 4, , $58, /1/2019 4, , $54, /1/2020 4, , $49, /1/2020 4, , $45, /1/2020 4, , $41, /1/2020 4, , $37, /1/2020 4, , $33, /1/2020 4, , $29, /1/2020 4, , $24, /1/2020 4, , $20, /1/2020 4, , $16, /1/2020 4, , $12, /1/2020 4, , $8, /1/2020 4, , $4, /1/2021 4, , ($0.00) $275, $250, $25, Page 4

8 General Fund Budget Narrative REVENUES Interest-Investments The District earns interest on the monthly average collected balance for their operating and money market accounts. Special Assessments-Tax Collector The District will levy a Non-Ad Valorem assessment on all sold and platted parcels (using the uniform method) within the District in order to pay for the operating expenditures during the Fiscal Year. Special Assessments-Wall Project The District will levy a Non-Ad Valorem assessment on all sold and platted parcels (using the uniform method) within the District in order to pay for the repair of the wall embankment and any impending debt associated with making repairs. Assessment will be $50 per parcel and it will be levied until the loan being used to make the repairs is repaid which is expected to be in Special Assessments-Reserves The District will levy a Non-Ad Valorem assessment on all sold and platted parcels (using the uniform method) within the District in order reestablish reserves which were depleted due to the District having to address numerous lake bank erosion issues. The assessment will be $25 per parcel and dedicated specifically to reserves until the reserves are reestablished at an appropriate level. Special Assessments-Discounts Per Section and Section of the Florida Statutes, discounts are allowed for early payments of assessments collected by the Tax Collector and only when the Tax Collector is using the uniform methodology. 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 Chapter 190 of the Florida Statutes allows for members of the Board of Supervisors to be compensated $200 per meeting at which they are in attendance. The amount for the Fiscal Year is based upon all supervisors attending all of the meetings. Professional Services-Engineering The District's engineer provides general engineering services to the District, i.e. attendance and preparation for board meetings when requested, review of invoices, and other specifically requested assignments. Professional Services-Legal Services The District s attorney provides general legal services to the District, i.e., attendance and preparation for Board meetings, review of contracts, review of agreements and resolutions, and other research as directed or requested by the Board of Supervisors and the District Manager. Professional Services-Management Consulting Services The District receives Management, Accounting and Administrative services as part of a Management Agreement with Severn Trent Environmental Services, Inc. Severn Trent manages all of the District s financial activities such as accounts payable, financial statements, auditing and budgeting in accordance with the management contract in effect. An increase of 3% is projected for the next fiscal year to cover operating expenses. Page 5

9 General Fund Budget Narrative EXPENDITURES Administrative (continued) Professional Services-Property Appraiser The Property Appraiser provides the District with a listing of the legal description of each property parcel within the District boundaries, and the names and addresses of the owners of such property. The District reimburses the Property Appraiser for necessary administrative costs incurred to provide this service which is based upon 1.5% of the anticipated Non-Ad Valorem assessment collections. Professional Services-Special Assessment This is the Administrative fees to prepare the District s special assessment roll with a projected increase of 3% budgeted. Professional Services-Web Site Maintenance The cost of web hosting and regular maintenance of the District s website by Severn Trent Services. Auditing Services The District is required to conduct an annual audit of its financial records by an Independent Certified Public Accounting Firm. The budgeted amount for the fiscal year is based on contracted fees from an existing engagement letter. Postage and Freight Actual postage used for District mailings including agenda packages, vendor checks and other correspondence. Insurance-General Liability The District's General Liability & Public Officials Liability Insurance policy is with Public Risk Insurance Agency, Inc. They specialize in providing governmental insurance coverage. The budgeted amount projects a 10% increase in the premium. Printing and Binding Copies used in the preparation of agenda packages, required mailings, and other special projects. Legal Advertising The District is required to advertise various notices for Board meetings and other public hearings in a newspaper of general circulation. Miscellaneous-Bank Charges This includes monthly bank charges for the maintenance of the operating accounts. Miscellaneous-Assessment Collection Costs The District reimburses the Collier County Tax Collector for her or his 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 assessment collection cost is based on a maximum of 2% of the anticipated assessment collections. Office Supplies Supplies used in the preparation and binding of agenda packages, required mailings, and other special projects. 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. Page 6

10 General Fund Budget Narrative EXPENDITURES Field Professional Services-Field Management Field Management Services for the District is performed by Severn Trent Services. This includes the regular inspection of all District assets and contractor performance monitoring. Items include but are not limited to: irrigation systems, ponds, wetlands, preserves, roads, street signs, sidewalks and drainage systems. A monthly report is provided for the Board s review to allow for their consideration of issues and action to consider. A projected 3% increase is budgeted. R&M-Contingency All other field expenses that do not fall into the category described above will be expensed to contingency. Lakes & Ponds Contracts-Lake and Wetland A contract was negotiated with Lake & Wetland Management for monthly lake maintenance of the District s 31 lakes and littoral shelf maintenance which includes approximately acres. Floridone Treatment was added May Contracts-Water Quality Monitoring A contract was negotiated with CPH for testing of the lakes and water quality monitoring. R&M-Aquascaping This is for any repair and maintenance expenses pertaining to the District s lakes that are not covered in the contract. R&M-Lake Erosion This is for any repair and maintenance expenses pertaining to erosion control that are not covered in the contract. R&M-Contingency All other lake expenses that do not fall into the categories described above will be expensed to contingency. Impr-Misc This expense has been designated specifically for lake improvements. Reserve-Lakes This is for lake improvement expenses that are projected to occur in the future. Debt Service Operating Loan Repayment During FY2015, the District obtained a 5 year loan in the amount of $250,000 with an APR of 4.00%. Beginning FY16, the District anticipates making monthly principal payments towards the outstanding loan balance. Interest Expense-Note The District will make monthly interest payments on the loan balance. Reserve-Loan Variance The variance between the amount assessed and the actual amount distributed for debt payments in current fiscal year. Page 7

11 Exhibit "A" Allocation of Fund Balances AVAILABLE FUNDS Amount Beginning Fund Balance - $ 178,725 Net Change in Fund Balance - - Reserves - Additions 36,000 Total Funds Available (Estimated) - 9/30/ ,726 ALLOCATION OF AVAILABLE FUNDS Assigned Fund Balance Operating Reserve - First Quarter Operating Capital 73,625 (1) Reserves - Erosion Control 14,687 Reserves - Lakes (FY16) 31,250 Reserves - Lakes (FY17) 31,250 62,500 Reserves - Loan Variance (FY17) 4,750 Subtotal 155,562 Total Allocation of Available Funds 155,562 Total Unassigned (undesignated) Cash $ 59,164 Notes (1) Represents approximately 3 months of operating expenditures Page 8

12 Heritage Bay Debt Service Budget

13 Series 2014 Debt Service Fund Summary of Revenues, Expenditures and Changes in Fund Balances Adopted Budget ADOPTED ACTUAL PROJECTED TOTAL ANNUAL ACTUAL BUDGET THRU JULY- PROJECTED BUDGET ACCOUNT DESCRIPTION FY 2015 FY 2016 JUNE-2016 SEP-2016 FY 2016 FY 2017 REVENUES Interest - Investments $ 68 $ - $ 62 $ 18 $ 80 $ - Special Assmnts- Tax Collector 1,308,564 1,308,564 1,308,564-1,308,564 1,308,564 Special Assmnts- Discounts (47,609) (52,343) (47,707) - (47,707) (52,343) TOTAL REVENUES 1,261,023 1,256,221 1,260, ,260,937 1,256,221 EXPENDITURES Administrative ProfServ-Arbitrage Rebate ProfServ-Property Appraiser 19,628 19,628-19,628 19,628 19,628 ProfServ-Trustee Fees - 6,815-4,951 4,951 4,951 Misc-Assessmnt Collection Cost 15,427 26,171 25,194-25,194 26,171 Total Administrative 35,055 53,214 25,194 25,179 50,373 51,350 Debt Service Principal Debt Retirement 270, , , , ,000 Interest Expense 476, , , , ,650 Total Debt Service 746,311 1,199,360 1,199,360-1,199,360 1,198,650 TOTAL EXPENDITURES 781,366 1,252,574 1,224,554 25,179 1,249,733 1,250,000 Excess (deficiency) of revenues Over (under) expenditures 479,657 3,647 36,365 (25,161) 11,204 6,221 OTHER FINANCING SOURCES (USES) Other NonOperating Uses-Deferred Costs - - (15,930) - (15,930) - Contribution to (Use of) Fund Balance - 3, ,221 TOTAL OTHER SOURCES (USES) - 3,647 (15,930) - (15,930) 6,221 Net change in fund balance 479,657 3,647 20,435 (25,161) (4,726) 6,221 FUND BALANCE, BEGINNING 604,350 1,084,007 1,084,007-1,084,007 1,079,281 FUND BALANCE, ENDING $ 1,084,007 $ 1,087,654 $ 1,104,442 $ (25,161) $ 1,079,281 $ 1,085,502 Page 9

14 Amortization Schedule 2014 Refunding of Series 2005 Special Assessment Refunding Bonds Principal Year Principal special calls Interest Balance FY Total DS 11/1/2016 $ - $ 316, $ 16,675, /1/2017 $ 565, $ - $ 316, $ 16,110, $ 1,198, /1/2017 $ - $ 306, $ 16,110, /1/2018 $ 585, $ - $ 306, $ 15,525, $ 1,197, /1/2018 $ - $ 294, $ 15,525, /1/2019 $ 610, $ - $ 294, $ 14,915, $ 1,199, /1/2019 $ - $ 283, $ 14,915, /1/2020 $ 635, $ - $ 283, $ 14,280, $ 1,201, /1/2020 $ - $ 271, $ 14,280, /1/2021 $ 660, $ - $ 271, $ 13,620, $ 1,202, /1/2021 $ - $ 258, $ 13,620, /1/2022 $ 680, $ - $ 258, $ 12,940, $ 1,197, /1/2022 $ - $ 245, $ 12,940, /1/2023 $ 710, $ - $ 245, $ 12,230, $ 1,201, /1/2023 $ - $ 232, $ 12,230, /1/2024 $ 740, $ - $ 232, $ 11,490, $ 1,204, /1/2024 $ - $ 218, $ 11,490, /1/2025 $ 770, $ - $ 218, $ 10,720, $ 1,206, /1/2025 $ - $ 203, $ 10,720, /1/2026 $ 800, $ - $ 203, $ 9,920, $ 1,207, /1/2026 $ - $ 188, $ 9,920, /1/2027 $ 830, $ - $ 188, $ 9,090, $ 1,206, /1/2027 $ - $ 172, $ 9,090, /1/2028 $ 865, $ - $ 172, $ 8,225, $ 1,210, /1/2028 $ - $ 156, $ 8,225, /1/2029 $ 8,225, $ - $ 156, $ - $ 8,537, /1/2029 $ - $ - $ - Totals $ 16,675, $ - $ 6,298, $ 22,973, Page 10

15 Debt Service Fund Budget Narrative REVENUES Interest-Investments The District earns interest on the monthly average collected balance for their trust accounts. Special Assessments-Tax Collector The District will levy a Non-Ad Valorem assessment on all sold and platted parcels (using the uniform method) within the District in order to pay for the operating expenditures during the Fiscal Year. Special Assessments-Discounts Per Section and Section of the Florida Statutes, discounts are allowed for early payments of assessments collected by the Tax Collector and only when the Tax Collector is using the uniform methodology. The budgeted amount for the fiscal year is calculated at 4% of the anticipated Non-Ad Valorem assessments. EXPENDITURES Administrative Professional Services-Arbitrage Rebate The District contracted with an independent professional firm to annually calculate the District's Arbitrage Rebate Liability on its bonds. Professional Services-Property Appraiser The Property Appraiser provides the District with a listing of the legal description of each property parcel within the District boundaries, and the names and addresses of the owners of such property. The District reimburses the Property Appraiser for necessary administrative costs incurred to provide this service. The property appraiser cost is based upon 1.5% of the anticipated Non-Ad Valorem assessment collections. Professional Services-Trustee The District pays US Bank an annual fee for trustee services on the Series 2014 Special Assessment Bond. The budgeted amount for the fiscal year is based on standard fees charged plus any out-of-pocket expenses. Miscellaneous-Assessment Collection Costs The District reimburses the Collier County Tax Collector for her or his 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 assessment collection cost is based on a maximum of 2% of the anticipated assessment collections. Debt Service Principal Debt Retirement The District pays regular principal payments annually in order to pay down/retire the debt. Interest Expense The District pays interest expense on the debt twice during the year. Page 11

16 Heritage Bay Supporting Budget Schedules

17 All Funds Comparison of Assessment Rates vs. Fiscal Year 2016 General Fund Debt Service Total Assessments per Unit FY 2017 FY 2016 Percent FY 2017 FY 2016 Percent FY 2017 FY 2016 Percent Product Change Change Change Units Executive $ $ % $1, $1, % $1, $1, % 139 Classics $ $ % $2, $2, % $2, $2, % 95 Classics II $ $ % $2, $2, % $2, $2, % 18 Coach $ $ % $1, $1, % $1, $1, % Story $ $ % $ $ % $1, $1, % Story $ $ % $ $ % $ $ % Page 12