Lakewood Ranch CDD 2

Transcription

1 Funding Reserve Analysis for Lakewood Ranch CDD 2 May 30, 2017 Florida Reserve Study and Appraisal, Inc N. Florida Avenue Tampa, FL Phone: Fax: Page 1 of 86 Pages

2 Funding Reserve Analysis for Lakewood Ranch CDD 2 Table of Contents Pages Subject 1 Report Cover Sheet 2 Table of Contents 3 to 31 Reserve Study Summary 32 to 38 Reserve Item Summary 39 to 52 Reserve Item Listing 53 to 58 Present Cost Report 59 Cash Flow 60 to 61 Assessment Summary 62 to 75 Expense Report 76 to 86 Expense Summary Page 2 of 86 Pages

3 Florida Reserve Study and Appraisal, Inc N. Florida Avenue Tampa, FL Phone: Fax: May 30, 2017 Lakewood Ranch CDD Lakewood Ranch Blvd Lakewood Ranch, FL Board of Directors, We are pleased to present to Lakewood Ranch CDD 2 the requested Reserve Funding study. We believe that you will find the attached study to be thorough and complete. After you have had an opportunity to review the report you may have questions. Please do not hesitate to write or call, we would be pleased to answer any questions you may have. Project Description Lakewood Ranch CDD 2 commenced operations in June The District has residential and commercial units and contains 1,813 equivalent dwelling units (EDU's). The District maintains the Townhall Building Offices, which was built in 2004 according to Manatee County Records. Other recreation in the District includes basketball courts, gazebos, and park facilities. The CDD encompasses a total site size of 2,081 acres in Lakewood Ranch, Manatee County, Florida. Date of Physical Inspection The subject property was physically inspected on March 29, 2017 and May 10, 2017 by Paul Gallizzi and Steven Swartz. Study Start and Study End This Reserve Study encompasses the fiscal year plus 30 years. The Study Start Date is October 1, 2017 and the study ends on September 30, Governing Documents A review was made of aerials and District records for the subject property. Depth of Study Full Service Reserve Study with Field Inspection. A field inspection was made to verify the existing condition of the various reserve study components, their physical condition, and to verify component quantities. In place testing, laboratory testing, and non-destructive testing of the reserve study components were not performed. Field measurements of component quantities were made to either Page 3 of 86 Pages

4 Lakewood Ranch CDD 2 Funding Study Summary - Continued verify improvement plan take offs or determine directly the quantities of various components. Photographs were taken of the site improvements. Summary of Financial Assumptions The below table contains a partial summary of information provided by Lakewood Ranch CDD 2 for the Lakewood Ranch CDD 2 funding study. For the purpose of this report, an annual operating budget was set to $0, as this report focuses only on reserve items. Fiscal Calendar Year Begins October 1 Reserve Study by Fiscal Calendar Year Starting October 1, 2017 Funding Study Length 30 Years Number of Assessment Paying Owners 1813 Initial Reserves¹ $ 1,599,467 Annual Inflation Rate 2.50% Tax Rate on Reserve Interest 0.00% Minimum Reserve Account Balance $ 0 Assessment Change Period 1 Year Annual Operating Budget $ 0 ¹ See Appendix A Recommended Payment Schedule The below table contains the recommended schedule of payments for the next six years. The projected life expectancy of the major components and the funding needs of the reserves of the District are based upon the District performing appropriate routine and preventative maintenance for each major component. Failure to perform such maintenance can negatively impact the remaining useful life of the major components and can dramatically increase the funding needs of the reserves of the District. Proposed Assessments Fiscal Calendar Year Owner Total Annual Assessment District Annual Reserve Assessment Proposed Reserve Balance 2018 $ 219 $ 396,700 $ 1,022, $ 224 $ 406,618 $ 1,241, $ 230 $ 416,783 $ 1,375, $ 236 $ 427,203 $ 1,029, $ 242 $ 437,883 $ 869, $ 248 $ 448,830 $ 860,476 * Annual Reserve Payments have been manually modified. Page 4 of 86 Pages

5 Lakewood Ranch CDD 2 Funding Study Summary - Continued Payments have been modified to smooth payments over time. Fiscal Year beginning October 1, 2017 Reserve Study Assumptions Cost estimates and financial information are accurate and current. No unforeseen circumstances will cause a significant reduction of reserves. Sufficient comprehensive property insurance exists to protect from insurable risks. The District plans to continue to maintain the existing common areas and amenities. Reserve payments occur at the end of every calendar month. Expenses occur throughout the year, as services are provided. Impact of Component Life The projected life expectancy of the major components and the reserve funding needs of the District are closely tied. Performing the appropriate routine maintenance for each major component generally increases the component useful life, effectively moving the component expense into the future which reduces the reserve funding payments of the District. Failure to perform such maintenance can shorten the remaining useful life of the major components, bringing the replacement expense closer to the present which increases the reserve funding payments of the District. Also, some reserves items may have the phrase allowance after it. These reserve items are something that would not be fully replaced at one time, but a small portion may have to be replaced periodically. Inflation Estimate Inflation has been estimated at 2.50 percent over the course of the study. Initial Reserves As of September 30, 2016 there was $1,701,867 set aside for reserves. The projected reserve balance on October 1, 2017 will be $1,599,467. These numbers were obtained from the District on the balance sheet and the annual budget. October 1, 2017 starts the next fiscal year. September 30, 2018 marks the end of the fiscal year. Financial Condition of District The pooled method with inflation reserve projections estimate $ per owner per year in and $396,700 in total funding. At the current time, the District is considered to be 46 percent funded. This represents a fairlyfunded status. The higher the percent funded, the more likely a District is to avoid a special assessment. The following are general measures to the health of a District based on the percent funding model: 0-30% funded: poorly funded Page 5 of 86 Pages

6 30-70% funded: fairly funded % funded: well funded 100+% funded: very well funded Prepared by Florida Reserve Study and Appraisal Lakewood Ranch CDD 2 Funding Study Summary - Continued Special Assessments No reserve items will require special assessments if the funding schedule is followed. However, funding less than the suggested amounts will likely result in special assessments or for the replacement of an item to be delayed. Reserve Funding Goal The reserve fund is set to be as close to Fully Funded as possible on an annual basis. Study Method Funding studies may be done in several ways, but we believe that the value of a funding study lies in the details. "Bulk" studies are quick, usually inexpensive, and almost always border on worthless. We believe that meaningful answers to funding studies lie in the details. This approach is pragmatic, and allows human judgment and experience to enter into the equation. Unless noted otherwise, the present cost of every reserve item in this report has been estimated using the "National Construction Estimator", a nationally recognized standard, and modified by an area cost adjustment factor. Where possible, known costs have been used. In addition, every reserve item has been given an estimated remaining useful life, an estimated useful life when new, and has been cast into the future to determine the inflated cost. Equal annual payments are calculated for each reserve item based upon a payment starting year and a payment ending year using the end of period payment method. Interest earned on accumulated reserve funds and taxes on the reserve interest are also calculated. Initial reserve funds are consumed as expenses occur until fully depleted, reducing annual reserve payments to a minimum. As you review this report, we are certain that you will appreciate the level of detail provided, allowing you to review each reserve item in detail. Summary of Findings We have estimated future projected expenses for Lakewood Ranch CDD 2 based upon preservation of existing improvements. The attached funding study is limited in scope to those expense items listed in the attached "Lakewood Ranch CDD 2 Reserve Study Expense Items". Expense items which have an expected life of more than 30 Years are not included in this reserve study unless payment for these long lived items overlaps the 30 Years reserve study envelope. Of primary concern is the preservation of a positive funding balance with funds sufficient to meet projected expenses throughout the study life. Based upon the attached funding study, it is our professional opinion that owner monthly fees as shown in the attached "Lakewood Ranch CDD 2 Page 6 of 86 Pages

7 Lakewood Ranch CDD 2 Funding Study Summary - Continued Assessment Summary" will realize this goal. Some reserve items in the "Revenue Summary Table" may not contain payments. In this analysis the initial reserves were used to make annual payments for expense items in their order of occurrence until the initial reserve was consumed. As a result reserve items without payments may be expected, particularly in the first few years of the funding study. Reserve items that have been paid with initial reserve funds are identified with a [FP] in the Expense Items Sheets. An item marked [PR] is partially paid with initial reserve funds. Lakewood Ranch CDD 2 represents and warrants that the information provided to us, including but not limited to that information contained in the attached Reserve Study Information Summary, that the maintenance records are complete and accurate, and that we may rely upon such information and documents without further verification or corroboration. Where the age of a particular Reserve Item (as listed in the Reserve Study) is unknown, Lakewood Ranch CDD 2 shall provide to us Lakewood Ranch CDD 2's best-estimated age of that item. If Lakewood Ranch CDD 2 is unable to provide and estimate of a Reserve Item's age, we shall make our own estimate of age of the Reserve Item. The Reserve Study is created for the District's use, and is a reflection of information provided to us. This information is not for the purpose of performing an audit, historical records, quality or forensic analyses. Any on site inspection is not considered to be a project audit or quality inspection. The actual or projected total presented in the reserve study is based upon information provided and was not audited. Percent Funded Many reserve studies use the concept of "Percent Funded" to measure the reserve account balance against a theoretically perfect value. Percent Funded is often used as a measure of the "Financial Health" of a District. The assumption is, the higher the percentage, the greater the "Financial Health". We believe the basic premise of ''Fully Funded'' is sound, but we also believe that the validity of the Fully Funded value must be used with caution. To answer the question, some understanding of Percent Funded is required. Fully Funded is the sum of the depreciation of all the components by year. To get the Percent Funded, divide the year end reserve balance by the Fully Funded value and multiply by 100 to get a percentage. The concept of Fully Funded is useful when the reserve study is comprehensive, but misleading when the reserve study is superficial or constrained. As a result, we recommend that the statement "Percent Funded" be used with caution. Keeping Your Reserve Study Current We believe that funding studies are an essential part of property management. People and property are constantly changing and evolving. As a result, the useful life of a funding study is at best a few years, and certainly not more than five years. This reserve study should be updated: At least once every few years At changes in the number of assessment paying owners Before starting new improvements Before making changes to the property Page 7 of 86 Pages

8 After a flood or fire After the change of ownership or management After Annexation or Incorporation Prepared by Florida Reserve Study and Appraisal Lakewood Ranch CDD 2 Funding Study Summary - Continued Items Beyond the Scope of this Report Building or land appraisals for any purpose. State or local zoning ordinance violations. Building code violations. Soils conditions, soils contamination or geological stability of site. Engineering analysis or structural stability of site. Air quality, asbestos, electromagnetic radiation, formaldehyde, lead, mercury, radon, water quality or other environmental hazards. Invasions by pests, termites and any or all other destroying organisms, insects, birds, bats or animals to buildings or site. This study is not a pest inspection. Adequacy or efficiency of any system or component on site. Specifically excluded reserve items. Septic systems and septic tanks. Buried or concealed portions of swimming pools, pool liners, Jacuzzis and spas or similar items. Items concealed by signs, carpets or other things are also excluded from this study. Missing or omitted information supplied by the Lakewood Ranch CDD 2 for the purposes of reserve study preparation. Hidden improvements such as sewer lines, water lines, irrigation lines or other buried or concealed items. Pond Banks Notes Drainage ponds require routine and non-routine maintenance. Routine maintenance includes mowing debris removal and catch basin cleaning. Mowing on a regular basis enhances the aesthetics of the area as well as helping to prevent erosion. Proper mowing of the banks helps the ground cover maintain a healthy root system, which minimizes erosion. Trash, debris, and litter removal reduces obstructions to inlets and outlets allow the storm water system to function as designed. Cleaning catch basins is also considered routine maintenance. For the purpose of this reserve study, the cost of routine maintenance is not a reserve item. Non-routine maintenance is a reserve item. Non-routine maintenance includes bank erosion and stabilization, sediment removal, and structural repairs and replacement. From time to time, some of these ponds may encounter erosion of their banks and require repairs. All ponds react differently due to original construction, slope of the bank, soil or environmental conditions, and other factors. In Lakewood Ranch CDD 2, retention ponds are placed throughout the District for stormwater drainage. These ponds are estimated to have 39,573 linear feet of shoreline area. During the site inspection, we observed most shorelines in good condition and a few spots of minor to moderate Page 8 of 86 Pages

9 Lakewood Ranch CDD 2 Funding Study Summary - Continued erosion. There are littoral plantings on several of the ponds that serve as protective barriers as well. It is not likely that all of the shoreline area will erode and need to be replaced. We have estimated that approximately 5 percent of the shoreline will erode and need refurbishment over a 5 year period. An erosion control reserve for repair of ponds is necessary for the proper upkeep in the District. This number can be adjusted in future reserve planning if necessary. Paving Notes Asphalt paved roads have a varying expected life from approximately 15 years to 30 years. It is typical to assume an expected life of 22 years in the District for the secondary roads and 16 years for the main roads--legacy Blvd and The Masters Ave. As roads age, this physical condition can be evaluated and the expected remaining life of the roads can be re-evaluated. Small road repairs can be handled from the operating budget. The streets in Lakewood Ranch CDD 2 are in various conditions from poor to good. During the site inspection, all streets were observed. The following is the condition assessment for each area: Area 1 Eagle Watch Way - poor condition, extensive alligator cracking, 0 years remaining life. Area 2 Miramar Way - good condition, was resurfaced approximately 2 years ago, 18 years remaining life. Area 3 Group: Championship Court and Whitemarsh Cir- average condition, minimal cracking, 5 years remaining life. Area 4 Group: Beechmont Terrace, Lone Tree Glen, Whethersfield Run, Woodsmore Ter, Tartan Field Cir, Four Seasons, Cir, Old Tabby Cir, Winners Cir - fair condition, some cracking, some wear, 3 years remaining life. Area 5 Group: Masters Ave, gate area near Lorraine Rd - fair condition, moderate cracking, 2 years remaining life. Area 6 - Masters Ave, inside the gates from Lorraine Rd to Lakewood Ranch Blvd - good condition, resurfaced approximately 4 years ago, 11 years remaining life. Area 7 - Group: Masters Ave, gate area near Lakewood Ranch Blvd - fair condition, moderate cracking, 2 years remaining life. Area 8 - Westchester Cir - average condition, minimal cracking, 4 years remaining life. Area 9 Turnberry Isle Ct - poor condition, small potholes and raveling, 0 years remaining life. Page 9 of 86 Pages

10 Lakewood Ranch CDD 2 Funding Study Summary - Continued Area 10 Group - US Open Way and Desert Inn Way - poor condition, potholes, alligator cracking, 0 years remaining life. Area 11 Group - British Open Way, Bay Hill Dr, Latrobe Ct, Pebble Beach Way - fair condition, some cracking, but not extensive, 3 years remaining life Area 12 Royal Birksdale Way - fair-poor condition, some alligator cracking, some areas of less wear, 1 year remaining life. Area 13 Group - Firestone Pl and Royal Queensland Way - fair condition, moderate amount of cracking, 3 years remaining life Area 14 Group - Oakland Hills, Troon Ct, Heritage Classic - fair condition, small area of alligator cracking, some longitudinal cracks, 2 years remaining life. Area 15: Weston Court - good condition, was resurfaced at the same time as Masters Avenue. Area 16 Group - Waterview Blvd, south of Guardhouse - fair condition; this area has been sealcoated, but there many areas with extensive cracking, 2 years remaining life. Area 17 Group - Waters Edge Way, Mallard Lane, Sailing Lp, Misty Morning Ct - average condition, minimal cracking, average condition, 4 years remaining life. Area 18 Group - Oak Manor Dr, Whispering Woods Ct, Spring Moss, Idlewood Dr & Ct, - fair condition, some cracking, 3 years remaining life. Area 19 Group - Windjammer Pl, Topside Ter, Nautical Dr - fair condition, some cracking, small amount of raveling, 2 years remaining life. Area 20 Group - Waterview Blvd north of guardhouse, Tallmast Cir - poor condition, alligator cracking, longitudinal cracks, raveling, 0 years remaining life. Area 21 Group - Legacy Blvd - poor condition, several areas of alligator cracking, extensive raveling near guardhouse, 0 years remaining life. Area 22 Group - Street Pavers (all) - average condition. There are few spots of street pavers throughout the District, these were considered to be age-appropriate. Sidewalk Notes Most of the sidewalk has an indefinite life. However, certain small sections may need maintenance or to be replaced due to problems such as tree roots uprooting the sidewalk. It is our estimate that 5 Page 10 of 86

11 Lakewood Ranch CDD 2 Funding Study Summary - Continued percent of the cost new of the sidewalk be set aside over a 5-year period to reserve for these repairs. There is approximately 449,000 SF of sidewalk on the District grounds. The estimated replacement cost new is approximately $2,245,000, which would result in a sidewalk repair reserve of $112,300 over a 5-year period. Stormwater Drainage Notes Lakewood Ranch CDD 2 has a large land area comprising 1,813 units encompassing 2,081 acres. The drainage for the community is comprised of inlets, drainage pipes, and retention ponds. The ponds have been constructed to engineering standards that include proper slopes and shore line stabilization which includes erosion protection and approved backfill materials such as soils with a high clay content covered within 2 inches of sand. The entire residential area including all roads and open areas have a complete drainage system. Overall, there are estimated to be 400 curb inlets, 60 manholes, 170 end sections, 40 grate inlets, and 15 control structures. Additionally, there is estimated 46,500 feet of reinforced concrete piping ranging in size from an 15 inch diameter to a 42 inch diameter. The stormwater drainage system within CDD 2 includes numerous drainage ponds. Most street drains are within 200 feet of a drainage pond and end sections feeding the storm water into the ponds only service two curb inlets. 15" reinforced concrete pipe can usually service two curb inlets. 18" reinforced concrete pipe is used when longer runs are necessary. 24" reinforced concrete pipe can service 4 curb inlets. A few drain inlets are not proximate to ponds, which require longer runs and usually have 4 to 6 curb inlets requiring 30" to 42" reinforced concrete pipe. The grate inlets have similar pipe size requirements as the curb inlets. Based upon the available data, the length and the size of the District's pipes are estimated below. Lakewood Ranch CDD 2 Storm Water Pipes Concrete: Diameter Length Cost/LF Amount 15" 11000' $528,000 18" 8000' $480,000 24" 11000' $924,000 30" 5000' $1,080,000 36" 5000' $660,000 42" 1500' $234,000 Other Drainage: Curb Inlets 400@3500 = $1,400,000 Grate Inlets 40@3000 = $120,000 Page 11 of 86

12 Lakewood Ranch CDD 2 Funding Study Summary - Continued End Sections 170@1800 = $306,000 Control Structures 15@3500 = $52,500 Manholes = $159,000 Grand Total $5,943,500 In general, the drainage system including drainage structures and drainage pipes have a long lifespan. These improvements, however, may encounter problems from natural causes such as settlement or tree roots and man made causes such as excavations or poor original design or poor construction. It has therefore been deemed necessary to set up a reserve for repair and replacement of the District-owned drainage improvements. For the purpose of this reserve study, it is our opinion that 2.5 percent of the original system cost should be set aside for reserves over a 5 year period, which would result in a reserve over that time of $148,600. These reserves can also be used for deferred maintenance of the storm drainage system, as some minor problems may occur at various times. The amounts shown in this reserve study should be analyzed and adjusted in future reserve studies based upon actual District expenditures for such items. Irrigation Notes Lakewood Ranch CDDs 1, 2, 4, and 5 have a development wide irrigation system that irrigates common areas owned by the Districts. The irrigation system is complex and effective. The water is purchased through Braden River Utilities. The CDDs are not responsible for golf course irrigation. Most of the irrigation system has been upgraded to a 2-wire, modern system with Tukor controllers. The cost of the system upgrade was approximately $150,000. It is estimated that 85% of the system is on the 2-wire system. Each controller in this system is able to control several zones. The remaining 15%, are small battery-powered nodes that control only 1-4 zones per node. Irrigation piping throughout the development is sized for its water volume requirements. The pipe is PVC and pipe sizes range from 2" to 16". Along main thoroughfares, the piping is typically 8" or 10" inches, and along secondary streets the piping is mostly 4" or 6". The underground piping is in good condition and has an indefinite life. The wiring and the valves are in average condition and are constantly being repaired and replaced as necessary, but this is typical of any complex and well-maintained irrigation system. Overall, the system is in average, age-appropriate condition. For the purpose of reserves, we have given each District a $40,000 upgrade and modernization allowance in 10 years. These numbers can be adjusted in future reserve planning if necessary. Page 12 of 86

13 Lakewood Ranch CDD 2 Funding Study Summary - Continued Statement of Qualifications Paul Gallizzi and Steven Swartz are professionals in the business of preparing reserve studies and insurance appraisals for community associations. We have provided detailed analysis of over 300,000 apartment, villa, townhome, and condominium units. We have prepared insurance appraisals and reserve studies for all types of community associations including high rise condominiums, midrise condominiums, garden-style condominiums, townhouse developments, single family homeowners associations, etc. We both hold engineering degrees from fully accredited universities. Paul Gallizzi is a State Certified General Real Estate Appraiser License Number RZ 110 and a State Certified General Contractor License Number CGC Steven Swartz is a designated Reserve Specialist, RS No.214, from the Community Associations Institute as well as a State Certified General Real Estate Appraiser License Number RZ Conflict of Interest As the preparers of this reserve study, we certify that we do not have any vested interests, financial interests, or other interests that would cause a conflict of interest in the preparation of this reserve study. We would like to thank Lakewood Ranch CDD 2 for the opportunity to be of service in the preparation of the attached Funding Study. Again, please feel free to write or call at our letterhead address, if you have any questions. Prepared by: Paul Gallizzi Steven M. Swartz, RS Enclosures: 17 Pages of Photographs Attached APPENDIX "A" - Summary of Reserve Accounts Page 13 of 86

14 Prepared by Florida Reserve Study and Appraisal Lakewood Ranch CDD 2 Funding Study Summary - Continued Winners Circle Gazebo Waters Edge Way Gazebo Idlewood Circle Gazebo Tallmast Circle Gazebo Bridge E of Whispering Woods Ct Bollard Lights Page 14 of 86 Pages

15 Prepared by Florida Reserve Study and Appraisal Lakewood Ranch CDD 2 Funding Study Summary - Continued Vinyl Fencing Vinyl Fencing Typical Entrance Monument Mail Station Street Light Legacy Blvd Guardhouse Page 15 of 86 Pages

16 Prepared by Florida Reserve Study and Appraisal Lakewood Ranch CDD 2 Funding Study Summary - Continued Legacy Blvd Barrier Arms Legacy Blvd Guardhouse Interior Legacy Blvd Guardhouse Interior Legacy Blvd Guardhouse HVAC Waterview Guardhouse Waterview Guardhouse Barrier Arms Page 16 of 86 Pages

17 Prepared by Florida Reserve Study and Appraisal Lakewood Ranch CDD 2 Funding Study Summary - Continued Waterview Guardhouse Roofing Waterview Guardhouse Interior Waterview Guardhouse HVAC Masters and Lorraine Entrance Masters and Lakewood Ranch Blvd Entrance Masters and Lakewood Ranch Blvd Entrance Page 17 of 86 Pages

18 Prepared by Florida Reserve Study and Appraisal Lakewood Ranch CDD 2 Funding Study Summary - Continued Sailing Loop and Mallard Lane Entrance Park Bench Basketball Courts Playground Equipment Swingset Park Pavilion Page 18 of 86 Pages

19 Prepared by Florida Reserve Study and Appraisal Lakewood Ranch CDD 2 Funding Study Summary - Continued Typical Pond Typical Pond Typical Pond, Note Erosion Sidewalks Sidewalks Stormwater Drainage Grate Inlet Page 19 of 86 Pages

20 Prepared by Florida Reserve Study and Appraisal Lakewood Ranch CDD 2 Funding Study Summary - Continued Stormwater Drainage Curb Inlet Stormwater Drainage Control Structure Stormwater Drainage Mitered End Section Paving, Eagle Watch Way Paving, Miramar Way Paving, Whitemarsh Cir Page 20 of 86 Pages

21 Prepared by Florida Reserve Study and Appraisal Lakewood Ranch CDD 2 Funding Study Summary - Continued Paving, Whethersfield Run Paving, Gate Area Masters and Lorraine Paving, Masters Ave Paving, Masters Ave Paving, Gate Area Masters and LR Blvd Paving, Westchester Cir Page 21 of 86 Pages

22 Prepared by Florida Reserve Study and Appraisal Lakewood Ranch CDD 2 Funding Study Summary - Continued Paving, Turnberry Isle Ct Paving, US Open Loop Paving, British Open Way Paving, Royal Birksdale Cir Paving, Royal Queensland Way Paving, Oakland Hills Dr Page 22 of 86 Pages

23 Prepared by Florida Reserve Study and Appraisal Lakewood Ranch CDD 2 Funding Study Summary - Continued Paving, Weston Ct Paving, Waterview Blvd South of Guardhouse Paving, Waters Edge Way Paving, Idlewood Dr Paving, Windjammer Pl Paving, Windjammer Pl Page 23 of 86 Pages

24 Prepared by Florida Reserve Study and Appraisal Lakewood Ranch CDD 2 Funding Study Summary - Continued Paving, Waterview Blvd Paving, Tallmast Cir Paving, Legacy Blvd Paving, Legacy Blvd Paving, Legacy Blvd Street Pavers Page 24 of 86 Pages

25 Lakewood Ranch CDD 2 Funding Study Summary - Continued Street Signs Wharf Deck Boards and Railings Wharf Deck Boards and Railings Wharf Substructure Wharf Ramp and Dock Operations Facility Front Page 25 of 86 Pages

26 Prepared by Florida Reserve Study and Appraisal Lakewood Ranch CDD 2 Funding Study Summary - Continued Operations Facility Rear Operations Facility Overhead Doors Operations Facility HVAC Operations Facility Carports Operations Facility Fencing Operations Facility Parking Lot Page 26 of 86 Pages

27 Lakewood Ranch CDD 2 Funding Study Summary - Continued Operations Facility Kitchen Area Operations Facility Typical Office Operations Facility VCT Tile Operations Facility Tile Floors Operations Facility Life Safety Systems Operations Facility Restrooms Page 27 of 86 Pages

28 Prepared by Florida Reserve Study and Appraisal Lakewood Ranch CDD 2 Funding Study Summary - Continued Operations Facility Electric Vehicle Charging Station Townhall Building Front Townhall Building Rear Townhall Building Parking Area Townhall Building Carpeting Townhall Building Wood Flooring Page 28 of 86 Pages

29 Lakewood Ranch CDD 2 Funding Study Summary - Continued Townhall Building HVAC Townhall Building Decorative Fencing Townhall Building Outdoor Furniture Townhall Building Life Safety Systems Townhall Building Elevator Townhall Building First Floor Restrooms Page 29 of 86 Pages

30 Lakewood Ranch CDD 2 Funding Study Summary - Continued Townhall Building First Floor Kitchen Townhall Building Second Floor Restrooms Page 30 of 86 Pages

31 Lakewood Ranch CDD 2 Funding Study Summary - Continued APPENDIX "A" Summary of Reserve Accounts Account Description Amount Interest Rate Statement Date Roads $ 1,021, % October 1, 2017 Special Projects $ 180, % October 1, 2017 Infrastructure $ 397, % October 1, 2017 Reserve Values Used : $ 1,599, % October 1, 2017 Page 31 of 86 Pages

32 Lakewood Ranch CDD 2 Reserve Study Expense Item Summary Reserve Items Winners Circle Wooden Gazebo Waters Edge Way Vinyl Gazebo Idlewood Circle Wooden Gazebo Tallmast Circle Vinyl Gazebo Current Cost When New Estimated Remaining Life Gazebos Expected Life When New First Replacement Cost Repeating Item? $ 6, Years 30 Years $ 8,766 Yes $ 7, Years 30 Years $ 9,476 Yes $ 6, Years 30 Years $ 8,766 Yes $ 6, Years 30 Years $ 8,766 Yes Grounds Bridge E of Whispering Woods Ct Deck Boards and Railings Bridge E of Whispering Woods Ct Frame and Pilings Bridge E of Whispering Woods Ct Repair Allowance $ 32,000 3 Years 15 Years $ 35,362 Yes $ 16, Years 40 Years $ 27,716 Yes $ 4,000 7 Years 8 Years $ 4,885 Yes Bollard Lights $ 24, Years 30 Years $ 32,641 Yes Vinyl Split or Crossed Rail Fence $ 76, Years 30 Years $ 100,773 Yes Vinyl Vertical Rail Fence $ 137, Years 30 Years $ 181,590 Yes Entrance Monuments Refurbishment $ 58, Years 30 Years $ 76,337 Yes Mail Stations $ 144,000 6 Years 25 Years $ 171,508 Yes 16 Camera Security System $ 20,000 5 Years 10 Years $ 23,233 Yes Street Light Fixtures LED $ 37, Years 30 Years $ 79,990 Yes Street Light Fixtures Sodium $ 93, Years 30 Years $ 122,402 Yes Legacy Blvd Guardhouse Barrier Arms and Operators Group 1 Barrier Arms and Operators Group 2 $ 8,000 3 Years 15 Years $ 8,840 Yes $ 8,000 9 Years 15 Years $ 10,270 Yes Guardhouse Flat Roof $ 1, Years 15 Years $ 2,213 Yes Guardhouse Tile Roof $ 9, Years 30 Years $ 12,477 Yes Guardhouse Exterior Paint $ 2,373 2 Years 8 Years $ 2,558 Yes Guardhouse Interior Paint $ 3,650 2 Years 8 Years $ 3,934 Yes Carpeting $ 2,320 2 Years 20 Years $ 2,500 Yes 3M Transponder Receivers $ 5,000 8 Years 12 Years $ 6,260 Yes Guardhouse HVAC 2 Tons $ 6,000 7 Years 12 Years $ 7,327 Yes Page 32 of 86 Pages

33 Lakewood Ranch CDD 2 Funding Study Expense Item Summary - Continued Reserve Items Current Cost When New Estimated Remaining Life Expected Life When New First Replacement Cost Repeating Item? Waterview Guardhouse Barrier Arms and Operators $ 16, Years 15 Years $ 23,271 Yes Guardhouse Metal Roof $ 5, Years 30 Years $ 7,223 Yes Guardhouse Tile Roof $ 9, Years 30 Years $ 12,698 Yes Guardhouse Exterior Paint $ 1,153 2 Years 8 Years $ 1,243 Yes Guardhouse Interior Paint $ 1,220 2 Years 8 Years $ 1,315 Yes 3M Transponder Receivers $ 5,000 8 Years 12 Years $ 6,260 Yes Guardhouse HVAC 2.5 Tons $ 3,800 2 Years 12 Years $ 4,096 Yes Masters and Lorraine Entrance Aluminum Gates $ 14,000 8 Years 25 Years $ 17,528 Yes Gate Operators $ 16, Years 15 Years $ 22,697 Yes 3M Transponder Receivers $ 10,000 8 Years 12 Years $ 12,520 Yes Masters and LR Blvd Entrance Aluminum Gates $ 14,000 8 Years 25 Years $ 17,528 Yes Gate Operators $ 16,000 2 Years 15 Years $ 17,245 Yes 3M Transponder Receivers $ 10,000 8 Years 12 Years $ 12,520 Yes Barrier Arms and Operators $ 16,000 7 Years 15 Years $ 19,538 Yes Sailing Lp and Mallard Ln Entrance Aluminum Gates $ 9,000 8 Years 25 Years $ 11,268 Yes Gate Operators $ 16,000 5 Years 15 Years $ 18,586 Yes 3M Transponder Receivers $ 10,000 8 Years 12 Years $ 12,520 Yes Parks Park Benches $ 2, Years 20 Years $ 3,877 Yes Basketball Court Color Coat $ 6,804 6 Years 8 Years $ 8,104 Yes Basketball Hoops $ 6, Years 15 Years $ 8,301 Yes Playground Metal and Plastic Playstructure $ 50,000 1 Years 20 Year $ 52,561 Yes Swingset $ 2,500 6 Years 25 Years $ 2,978 Yes Park Pavilion Asphalt Shingle Roofing $ 5,240 3 Years 25 Years $ 5,790 Yes Paint Park Pavilion $ 1,620 2 Years 8 Years $ 1,746 Yes Park Pavilion Picnic Tables $ 1,600 2 Years 15 Years $ 1,724 Yes Park Pavilion Gutters and Downspouts $ 1,232 6 Years 25 Years $ 1,467 Yes Page 33 of 86 Pages

34 Lakewood Ranch CDD 2 Funding Study Expense Item Summary - Continued Reserve Items Current Cost When New Estimated Remaining Life Expected Life When New First Replacement Cost Repeating Item? Ponds Pond Banks Erosion Control Allowance Aerators Phased Replacement 1 Aerators Phased Replacement 2 $ 59,300 3 Years 5 Years $ 65,530 Yes $ 24,000 2 Years 10 Years $ 25,867 Yes $ 24,000 7 Years 10 Years $ 29,308 Yes Sidewalks Sidewalk Repair Allowance $ 112,300 4 Years 5 Years $ 127,236 Yes Stormwater Drainage Stormwater Drainage Repair Allowance $ 148,600 4 Years 5 Years $ 168,364 Yes Streets Paving 1.5 Inch Asphalt Mill and Overlay Area 1 Eagle Watch Way Paving 1.5 Inch Asphalt Mill and Overlay Area 2 Paving 1.5 Inch Asphalt Mill and Overlay Area 3 Group Paving 1.5 Inch Asphalt Mill and Overlay Area 4 Group Paving 1.5 Inch Asphalt Mill and Overlay Area 5 Paving 1.5 Inch Asphalt Mill and Overlay Area 6 Paving 1.5 Inch Asphalt Mill and Overlay Area 7 Paving 1.5 Inch Asphalt Mill and Overlay Area 8 Westchester Cir Paving 1.5 Inch Asphalt Mill and Overlay Area 9 Turnberry Isle Ct Paving 1.5 Inch Asphalt Mill and Overlay Area 10 Group $ 159,720 0 Years 22 Years $ 163,759 Yes $ 18, Years 22 Years $ 31,239 Yes $ 172,973 5 Years 22 Years $ 200,934 Yes $ 247,067 3 Years 22 Years $ 273,023 Yes $ 15,689 2 Years 22 Years $ 16,909 Yes $ 324, Years 16 Years $ 449,232 Yes $ 4,874 2 Years 22 Years $ 5,254 Yes $ 64,522 4 Years 22 Years $ 73,103 Yes $ 41,875 0 Years 22 Years $ 42,934 Yes $ 102,125 0 Years 22 Years $ 104,707 Yes Page 34 of 86 Pages

35 Lakewood Ranch CDD 2 Funding Study Expense Item Summary - Continued Reserve Items Paving 1.5 Inch Asphalt Mill and Overlay Area 11 Group Paving 1.5 Inch Asphalt Mill and Overlay Area 12 Royal Birksdale Paving 1.5 Inch Asphalt Mill and Overlay Area 13 Group Paving 1.5 Inch Asphalt Mill and Overlay Area 14 Group Paving 1.5 Inch Asphalt Mill and Overlay Area 15 Weston Ct Paving 1.5 Inch Asphalt Mill and Overlay Area 16 Group Paving 1.5 Inch Asphalt Mill and Overlay Area 17 Group Paving 1.5 Inch Asphalt Mill and Overlay Area 18 Group Paving 1.5 Inch Asphalt Mill and Overlay Area 19 Group Paving 1.5 Inch Asphalt Mill and Overlay Area 20 Group Paving 1.5 Inch Asphalt Mill and Overlay Area 21 Group Street Pavers Area 22 Group Current Cost When New Estimated Remaining Life Expected Life When New First Replacement Cost Repeating Item? $ 124,646 3 Years 22 Years $ 137,741 Yes $ 130,752 1 Years 22 Year $ 137,449 Yes $ 37,814 3 Years 22 Years $ 41,787 Yes $ 85,363 2 Years 22 Years $ 92,004 Yes $ 11, Years 22 Years $ 17,019 Yes $ 25,291 2 Years 22 Years $ 27,259 Yes $ 212,286 4 Years 22 Years $ 240,520 Yes $ 169,459 3 Years 22 Years $ 187,262 Yes $ 87,062 2 Years 22 Years $ 93,836 Yes $ 156,960 0 Years 22 Years $ 160,929 Yes $ 451,901 0 Years 16 Years $ 463,329 Yes $ 25, Years 30 Years $ 33,700 Yes Streets Signs $ 85,000 5 Years 25 Years $ 98,741 Yes Wharf Area Wharf Deck Boards and Railings $ 83,440 5 Years 15 Years $ 96,928 Yes Wharf Frame and Pilings $ 41, Years 40 Years $ 68,749 Yes Wharf Bridge Repair Allowance $ 10,430 8 Years 8 Years $ 13,059 Yes Page 35 of 86 Pages

36 Lakewood Ranch CDD 2 Funding Study Expense Item Summary - Continued Reserve Items Wharf Ramp and Dock Deck Synthetic Deck Boards Wharf Ramp Metal Railings Current Cost When New Estimated Remaining Life Expected Life When New First Replacement Cost Repeating Item? $ 9, Years 20 Years $ 12,635 Yes $ 1, Years 30 Years $ 2,369 Yes Wharf Dock Frame $ 4, Years 40 Years $ 6,591 Yes Wharf Pavilion Metal Roofing $ 3,520 9 Years 30 Years $ 4,519 Yes Operations Facility Overhead Garage Doors Large Overhead Garage Doors Medium $ 60, Years 20 Years $ 89,472 Yes $ 40, Years 20 Years $ 59,648 Yes IT Room Unit AC $ 1,000 7 Years 12 Years $ 1,221 Yes HVAC 10 Ton Package Unit HVAC 3 Ton Compressor Ductless $ 15,000 7 Years 12 Years $ 18,317 Yes $ 9,000 7 Years 12 Years $ 10,990 Yes HVAC 10 Ton Air Handler $ 15, Years 24 Years $ 24,718 Yes Carport Structure Replace $ 43, Years 25 Years $ 72,988 Yes Restrooms Refurbishment $ 6, Years 20 Years $ 8,947 Yes Chain Link Fence 6' with Barbed Wire Operations Facility Parking Sealcoating Operations Facility Parking Lot 1 Inch Mill and Overlay $ 36, Years 25 Years $ 62,074 Yes $ 3,448 3 Years 5 Years $ 3,810 Yes $ 15, Years 20 Years $ 23,138 Yes Cabinets $ 21, Years 25 Years $ 35,480 Yes Kitchen Appliances $ 3, Years 15 Years $ 3,948 Yes Carpeting $ 4,684 3 Years 8 Years $ 5,176 Yes VCT Tile $ 1, Years 20 Years $ 2,277 Yes Tile Flooring $ 6, Years 25 Years $ 11,773 Yes Gutters and Downspouts $ 6, Years 25 Years $ 11,638 Yes Lockers $ 2, Years 15 Years $ 2,632 Yes Metal Roofing $ 72, Years 30 Years $ 138,836 Yes Interior Painting $ 16,320 3 Years 8 Years $ 18,035 Yes Security Camera System $ 10,000 5 Years 10 Years $ 11,617 Yes Life Safety Systems Modernization $ 16, Years 25 Years $ 27,033 Yes Restrooms Refurbishment $ 10, Years 20 Years $ 14,912 Yes Page 36 of 86 Pages

37 Lakewood Ranch CDD 2 Funding Study Expense Item Summary - Continued Reserve Items Electric Vehicle Charging Station Current Cost When New Estimated Remaining Life Expected Life When New First Replacement Cost Repeating Item? $ 1,200 5 Years 10 Years $ 1,394 Yes Parking Lighting Fixtures $ 2, Years 25 Years $ 3,379 Yes Townhall Building Townhall Parking Sealcoating Townhall Parking Lot 1 Inch Mill and Overlay Townhall Parking Light Fixtures $ 9,702 1 Years 5 Year $ 10,199 No $ 43,658 6 Years 20 Years $ 51,998 Yes $ 4, Years 25 Years $ 5,398 Yes Sidewalk Repair Allowance $ 1,000 4 Years 5 Years $ 1,133 Yes Metal Roofing $ 77, Years 30 Years $ 118,546 Yes Exterior Painting $ 8,760 7 Years 8 Years $ 10,697 Yes Interior Painting $ 32,975 7 Years 8 Years $ 40,267 Yes Carpeting $ 25,804 7 Years 8 Years $ 31,511 Yes Wood Flooring $ 10, Years 25 Years $ 14,412 Yes Tile Flooring $ 17, Years 25 Years $ 23,513 Yes HVAC 7 Ton Package Units $ 21,000 0 Years 12 Years $ 21,531 Yes HVAC 5 Ton Compressors $ 22,500 0 Years 12 Years $ 23,069 Yes HVAC 4 Ton Compressors $ 6,000 0 Years 12 Years $ 6,152 Yes HVAC 7 Ton Air Handlers $ 10, Years 24 Years $ 14,527 Yes HVAC 5 Air Handlers $ 11, Years 24 Years $ 15,565 Yes HVAC 4 Air Handlers $ 3, Years 24 Years $ 4,151 Yes Decorative Aluminum 3' Rear Fencing Outdoor Furniture Table and Chairs $ 3, Years 30 Years $ 5,871 Yes $ 1,200 8 Years 10 Years $ 1,502 Yes Park Bench $ Years 15 Years $ 513 Yes Life Safety Systems Modernization $ 23, Years 25 Years $ 31,037 Yes Audio System $ 4,000 0 Years 15 Years $ 4,101 Yes Security Camera System $ 15,000 5 Years 10 Years $ 17,425 Yes Elevator Hydraulic 2100 lbs Modernization 1st Floor Restrooms Refurbishment $ 58, Years 30 Years $ 88,677 Yes $ 30,000 6 Years 20 Years $ 35,731 Yes Kitchen Appliances $ 5,200 3 Years 15 Years $ 5,746 Yes Page 37 of 86 Pages

38 Lakewood Ranch CDD 2 Funding Study Expense Item Summary - Continued Reserve Items Unisex Restroom Refurbishment Near Library Current Cost When New Estimated Remaining Life Expected Life When New First Replacement Cost Repeating Item? $ 2,500 6 Years 20 Years $ 2,978 Yes Wall Cabinets $ 49, Years 25 Years $ 66,122 Yes 2nd Floor Restrooms Refurbishment $ 16,000 6 Years 20 Years $ 19,056 Yes Irrigation Irrigation Upgrades and Modernization $ 40, Years 15 Years $ 52,646 Yes Expected annual inflation: 2.50% Interest earned on reserve funds: 1.00% Initial Reserve: $ 1,599,467 Page 38 of 86 Pages

39 Lakewood Ranch CDD 2 Reserve Study Expense Item Listing Reserve Items Unit Cost No Units Current Cost When New Estimated Remaining Life Expected Life When New Fiscal Calendar Year Estimated Future Cost Gazebos Winners Circle Wooden Gazebo $ / sf 111 sf $ 6, Years 30 Years 30 Years $ 8,766 $ 18,542 Waters Edge 10 Years 2028 $ 9,476 Way Vinyl $ / sf 120 sf $ 7, Years Gazebo 30 Years 2058 $ 20,046 Idlewood Circle Wooden Gazebo Tallmast Circle Vinyl Gazebo $ / sf 111 sf $ 6,660 $ / sf 111 sf $ 6, Years 30 Years 10 Years 30 Years 30 Years 30 Years $ 8,766 $ 18,542 $ 8,766 $ 18,542 Grounds Bridge E of 3 Years 2021 $ 35,362 Whispering Woods Ct Deck $ / sf 800 sf $ 32, Years 2036 $ 51,431 Boards and 15 Years Railings 2051 $ 74,803 Bridge E of Whispering Woods Ct Frame and Pilings Bridge E of Whispering Woods Ct Repair Allowance $ / sf 800 sf $ 16,000 $ 5.00 / sf 800 sf $ 4,000 Bollard Lights $ 400 ea 62 $ 24, Years 40 Years 40 Years $ 27,716 $ 75,262 7 Years 2025 $ 4,885 8 Years 8 Years $ 5,965 $ 7, $ 8, Years 2028 $ 32, Years 30 Years 2058 $ 69,046 Vinyl Split or 10 Years 2028 $ 100,773 Crossed Rail $ / lf 3646 lf $ 76, Years Fence 30 Years 2058 $ 213,169 Vinyl Vertical Rail Fence $ / lf 3942 lf $ 137, Years 30 Years 30 Years $ 181,590 $ 384,126 Entrance 10 Years 2028 $ 76,337 Monuments $ 2,000 ea 29 $ 58, Years Refurbishment 30 Years 2058 $ 161,479 Mail Stations $ 1,500 ea 96 $ 144,000 6 Years 2024 $ 171, Years 25 Years 2049 $ 320, Camera $ 20,000 ea 1 $ 20,000 5 Years 10 Years 2023 $ 23,233 Page 39 of 86 Pages

40 Lakewood Ranch CDD 2 Reserve Study Expense Item Listing - Continued Reserve Items Unit Cost No Units 16 Camera Security System Street Light Fixtures LED Street Light Fixtures Sodium Current Cost When New Estimated Remaining Life Expected Life When New $ 20,000 ea 1 $ 20, Years 10 Years Fiscal Calendar Year Estimated Future Cost 2033 $ 29, $ 38, $ 49,146 $ 511 ea 74 $ 37, Years 30 Years 2047 $ 79,990 $ 500 ea 186 $ 93, Years 30 Years 30 Years $ 122,402 $ 258,924 Legacy Blvd Guardhouse Barrier Arms 3 Years 2021 $ 8,840 and Operators $ 4,000 ea 2 $ 8, Years 2036 $ 12,858 Group 1 15 Years 2051 $ 18,701 Barrier Arms 9 Years 2027 $ 10,270 and Operators $ 4,000 ea 2 $ 8, Years 2042 $ 14,936 Group 2 15 Years 2057 $ 21,724 Guardhouse Flat Roof Guardhouse Tile Roof Guardhouse Exterior Paint Guardhouse Interior Paint $ 4.00 / sf 390 sf $ 1,560 $ / sf 790 sf $ 9,480 $ 1.00 / sf 2373 sf $ 2,373 $ 1.00 / sf 3650 sf $ 3,650 Carpeting $ 4.00 / sf 580 sf $ 2, Years 2031 $ 2, Years 10 Years 30 Years 15 Years 30 Years 2046 $ 3, $ 4, $ 12,477 $ 26,394 2 Years 2020 $ 2,558 8 Years 8 Years 2028 $ 3, $ 3, $ 4, $ 5,687 2 Years 2020 $ 3,934 8 Years 8 Years 2028 $ 4, $ 5, $ 7, $ 8,748 2 Years 2020 $ 2, Years 20 Years 2040 $ 4, $ 6,790 3M Transponder $ 5,000 ea 1 $ 5,000 8 Years 12 Years 2026 $ 6,260 Page 40 of 86 Pages

41 Lakewood Ranch CDD 2 Reserve Study Expense Item Listing - Continued Reserve Items Unit Cost No Units 3M Transponder Receivers Guardhouse HVAC 2 Tons Current Cost When New Estimated Remaining Life Expected Life When New $ 5,000 ea 1 $ 5, Years 12 Years $ 3,000 ea 2 $ 6,000 Fiscal Calendar Year Estimated Future Cost $ 8,448 $ 11,400 7 Years 2025 $ 7, Years 12 Years 2037 $ 9, $ 13,342 Barrier Arms and Operators Guardhouse Metal Roof Guardhouse Tile Roof Guardhouse Exterior Paint Guardhouse Interior Paint 3M Transponder Receivers Guardhouse HVAC 2.5 Tons Waterview Guardhouse $ 4,000 ea 4 $ 16,000 $ 8.00 / sf 686 sf $ 5,488 $ / sf 804 sf $ 9,648 $ 1.00 / sf 1153 sf $ 1,153 $ 1.00 / sf 1220 sf $ 1,220 $ 5,000 ea 1 $ 5,000 $ 3,800 ea 1 $ 3, Years 2032 $ 23, Years 15 Years 2047 $ 33, Years 2028 $ 7, Years 30 Years 2058 $ 15, Years 2028 $ 12, Years 30 Years 2058 $ 26,861 2 Years 2020 $ 1, $ 1,518 8 Years 8 Years 2036 $ 1, $ 2, $ 2,763 2 Years 2020 $ 1, $ 1,606 8 Years 8 Years 2036 $ 1, $ 2, $ 2,924 8 Years 2026 $ 6, Years 12 Years 2038 $ 8, $ 11,400 2 Years 2020 $ 4, $ 5, Years 12 Years 2044 $ 7, $ 10,064 Masters and Lorraine Entrance 8 Years 2026 $ 17,528 Aluminum Gates $ 3,500 ea 4 $ 14, Years 25 Years 2051 $ 32,726 Page 41 of 86 Pages

42 Lakewood Ranch CDD 2 Reserve Study Expense Item Listing - Continued Reserve Items Unit Cost No Units Current Cost When New Gate Operators $ 4,000 ea 4 $ 16,000 3M Transponder Receivers $ 5,000 ea 2 $ 10,000 Estimated Remaining Life Expected Life When New Fiscal Calendar Year Estimated Future Cost 13 Years 2031 $ 22, Years 15 Years 2046 $ 33, $ 48,012 8 Years 2026 $ 12, Years 12 Years 2038 $ 16, $ 22,799 Masters and LR Blvd Entrance Aluminum Gates $ 3,500 ea 4 $ 14,000 Gate Operators $ 4,000 ea 4 $ 16,000 3M Transponder Receivers Barrier Arms and Operators $ 5,000 ea 2 $ 10,000 $ 4,000 ea 4 $ 16,000 8 Years 2026 $ 17, Years 25 Years 2051 $ 32,726 2 Years 2020 $ 17, Years 15 Years 2035 $ 25, $ 36,479 8 Years 2026 $ 12, Years 12 Years 2038 $ 16, $ 22,799 7 Years 2025 $ 19, Years 15 Years 2040 $ 28, $ 41,330 Sailing Lp and Mallard Ln Entrance Aluminum Gates $ 4,500 ea 2 $ 9,000 Gate Operators $ 4,000 ea 4 $ 16,000 3M Transponder Receivers $ 5,000 ea 2 $ 10,000 8 Years 2026 $ 11, Years 25 Years 2051 $ 21,038 5 Years 2023 $ 18, Years 15 Years 2038 $ 27, $ 39,317 8 Years 2026 $ 12, Years 12 Years 2038 $ 16, $ 22,799 Parks Park Benches $ 650 ea 4 $ 2, Years 2033 $ 3, Years 20 Years 2053 $ 6,389 Basketball Court $ 0.75 / sf 9072 sf $ 6,804 6 Years 8 Years 2024 $ 8,104 Page 42 of 86 Pages

43 Lakewood Ranch CDD 2 Reserve Study Expense Item Listing - Continued Reserve Items Unit Cost No Units Basketball Court Color Coat Current Cost When New Estimated Remaining Life Expected Life When New $ 0.75 / sf 9072 sf $ 6,804 8 Years 8 Years Basketball Hoops $ 1,500 ea 4 $ 6,000 Fiscal Calendar Year Estimated Future Cost 2032 $ 9, $ 12, $ 14, Years 2030 $ 8, Years 15 Years 2045 $ 12, $ 17,560 Playground 1 Year 2019 $ 52,561 Metal and $ 50,000 ea 1 $ 50, Years 2039 $ 86,613 Plastic 20 Year Playstructure 2059 $ 142,727 Swingset $ 2,500 ea 1 $ 2,500 6 Years 2024 $ 2, Years 25 Years 2049 $ 5,559 Park Pavilion 3 Years 2021 $ 5,790 Asphalt Shingle $ 4.00 / sf 1310 sf $ 5, Years 2046 $ 10,811 Roofing 25 Years 2071 $ 20,185 Paint Park Pavilion Park Pavilion Picnic Tables $ 1.00 / sf 1620 sf $ 1,620 $ 800 ea 2 $ 1,600 2 Years 2020 $ 1,746 8 Years 8 Years 2028 $ 2, $ 2, $ 3, $ 3,883 2 Years 2020 $ 1, Years 15 Years 2035 $ 2, $ 3,648 Park Pavilion 6 Years 2024 $ 1,467 Gutters and $ 7.00 / lf 176 lf $ 1, Years Downspouts 25 Years 2049 $ 2,740 Ponds 3 Years 2021 $ 65, $ 74,245 Pond Banks 2031 $ 84,120 Erosion Control $ 59,300 / total 1 total $ 59,300 5 Years 2036 $ 95,308 Allowance 5 Years 2041 $ 107, $ 122, $ 138,618 Page 43 of 86 Pages

44 Lakewood Ranch CDD 2 Reserve Study Expense Item Listing - Continued Reserve Items Unit Cost No Units Aerators Phased Replacement 1 Aerators Phased Replacement 2 Current Cost When New $ 4,000 ea 6 $ 24,000 $ 4,000 ea 6 $ 24,000 Estimated Remaining Life Expected Life When New Fiscal Calendar Year Estimated Future Cost 2 Years 2020 $ 25, Years 10 Years $ 33,206 $ 42, $ 54,718 7 Years 2025 $ 29, Years 10 Years $ 37,622 $ 48, $ 61,996 Sidewalk Repair Allowance Sidewalks $ 112,300 / total 1 total $ 112,300 4 Years 2022 $ 127, $ 144, $ 163,332 5 Years 5 Years 2037 $ 185, $ 209, $ 237,554 Stormwater Drainage 4 Years 2022 $ 168, $ 190,757 Stormwater 2032 $ 216,127 Drainage Repair $ 148,600 / total 1 total $ 148,600 5 Years Allowance 5 Years 2037 $ 244, $ 277, $ 314,341 Streets Paving 1.5 Inch 0 Years 2018 $ 163,759 Asphalt Mill and Overlay Area 1 $ 1.20 / sf sf $ 159, Years 2040 $ 283,674 Eagle Watch 22 Years Way 2062 $ 491,397 Paving 1.5 Inch 20 Years 2038 $ 31,239 Asphalt Mill and $ 1.20 / sf sf $ 18, Years Overlay Area 2 22 Years 2060 $ 54,114 Paving 1.5 Inch 5 Years 2023 $ 200,934 Asphalt Mill and $ 1.20 / sf sf $ 172, Years 22 Years 2045 $ 348,071 Overlay Area 3 Page 44 of 86 Pages