BAHIA LAKES COMMUNITY DEVELOPMENT DISTRICT

Transcription

1 BAHIA LAKES COMMUNITY DEVELOPMENT DISTRICT DISTRICT OFFICE 3434 COLWELL AVENUE SUITE 200 TAMPA, FLORIDA BAHIA LAKES COMMUNITY DEVELOPMENT DISTRICT BOARD OF SUPERVISORS MEETING APRIL 16, 2014

2 BAHIA LAKES COMMUNITY DEVELOPMENT DISTRICT AGENDA APRIL 16, 2014 at 6:00 p.m. at the Sunset Grill at Little Harbor located at 602 Bahia Del Sol Blvd., Ruskin, FL District Board of Supervisors Ralph Skokanic Chairman Anthony Orlando Vice Chairman Assistant Secretary Craig Carr Assistant Secretary Assistant Secretary District Manager Greg Cox Rizzetta & Company, Inc. District Attorney John Vericker Straley & Robin District Engineer David Bell Landmark 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 meeting will begin promptly at 6:00 p.m. with the first section which is called Audience Comments. The Audience Comments portion of the agenda is when 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 MEETING. 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, each member of 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 (813) at least seven days in advance of the scheduled meeting. Requests to place items on the 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 workshop 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 1 (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.

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5 BAHIA LAKES COMMUNITY DEVELOPMENT DISTRICT February 19, 2014 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. BAHIA LAKES COMMUNITY DEVELOPMENT DISTRICT The regular meeting of the Board of Supervisors of the Bahia Lakes Community Development District was held on Wednesday, February 19, 2014 at 6:15 p.m. at the Sunset Grill at Little Harbor located at 602 Bahia Del Sol Blvd., Ruskin, Florida Present and constituting a quorum: Ralph Skokanic Joshua Zehler Craig Carr Anthony Orlando Board Supervisor, Chairman Board Supervisor, Vice Chairman Board Supervisor, Assistant Secretary Board Supervisor, Assistant Secretary Also present: Greg Cox District Manager; Rizzetta & Company, Inc. FIRST ORDER OF BUSINESS Call to Order Mr. Cox called the meeting to order and performed roll call. SECOND ORDER OF BUSINESS Audience Comments There were no audience members present for comment. THIRD ORDER OF BUSINESS Consideration of Minutes of the Board of Supervisors Meeting Held Dec. 18, 2013 Mr. Cox presented the minutes of the Board of Supervisors meeting held on December 18, 2013 to the Board for consideration. On a Motion by Mr. Skokanic, seconded by Mr. Zehler, with all in favor, the Board of Supervisors approved the minutes of the Board of Supervisors Meeting held on December 18, 2013 as presented for the Bahia Lakes Community Development District. FOURTH ORDER OF BUSINESS Consideration of Operation and Maintenance Expenditures for December 2013 and January 2014

6 BAHIA LAKES COMMUNITY DEVELOPMENT DISTRICT February 19, 2014 Minutes of Meeting Page 2 Mr. Cox presented the Operation & Maintenance Expenditures for December 2013 totaling $13, and January 2014 totaling $21, to the Board for ratification. On a Motion by Mr. Skokanic, seconded by Mr. Carr, with all in favor, the Board of Supervisors ratified the December 2013 and January 2014 Operation & Maintenance Expenditures for the Bahia Lakes Community Development District. FIFTH ORDER OF BUSINESS Field Inspection Report Mr. Cox presented Operations Manager Tyree Brown s field inspection report as of January 13, 2014 to the Board for review. SIXTH ORDER OF BUSINESS Aquatic Services Report Josh McGarry of Aquatic Systems was unable to attend the meeting. In his place Mr. Cox presented Mr. McGarry s pond maintenance report as of February 11, 2014 to the Board for review. Mr. Cox shared that installation of plants in pond #6 has been delayed due to the cold weather and that Mr. McGarry had indicated the plantings may not occur until end of March or early April. Mr. Cox also advised that Mr. McGarry is preparing to install more plants on the littoral shelf of pond #5 and that Brazilian pepper tree removal has been completed. Mr. Skokanic noted that the Board should look now to maintain the clearance of the pepper tree growth. SEVENTH ORDER OF BUSINESS Staff Reports A. District Counsel Mr. Cox advised the Board that Mr. Vericker, who was not present, had nothing of significance to report. Brief general discussion ensued. B. District Engineer Mr. Cox advised the Board that Mr. Bell, who was not present, had nothing of significance to report. Mr. Cox indicated that the berm removal project should be starting the following week and reviewed some of the logistics of the project. Brief discussion ensued. The Board asked that Mr. Bell create a map showing areas of standing water in the District. Mr. Skokanic also asked about two areas of sidewalks outside the District walls which flood excessively on 14 th Street and 11 th Avenue. Mr. Bell was reached by speakerphone and discussion ensued regarding the flooding sidewalks and curbs. C. District Manager Mr. Cox stated the next regularly scheduled meeting will be held on April 16, 2014 at 6:00 p.m. at the Sunset Grill at Little Harbor and announced that Mr. Zehler will be resigning from the Board effective February 20, 2014 due to work relocation.

7 BAHIA LAKES COMMUNITY DEVELOPMENT DISTRICT February 19, 2014 Minutes of Meeting Page 3 On a Motion by Mr. Carr, seconded by Mr. Orlando, with all in favor, the Board of Supervisors accepted the resignation of Board supervisor Joshua Zehler from seat #2 effective February 20, 2014 for the Bahia Lakes Community Development District. Mr. Cox advised that the vacant seat s term ends in Discussion ensued. Mr. Vericker was reached by speakerphone to confirm the process of appointment of someone to fill the seat. He also noted that text messaging has become an issue lately, advising against using text messaging as a form of communication and recommending that everyone use instead for easier archival. Mr. Cox then reviewed the most recent summary of unaudited monthly financial statements. EIGHTH ORDER OF BUSINESS Supervisor Requests Mr. Skokanic voiced his frustration with getting TECO to fix community lights. Mr. Cox then asked for motions regarding Board member resignation and appointment. On a Motion by Mr. Carr, seconded by Mr. Orlando, with all in favor, the Board of Supervisors accepted the amended resignation of Board supervisor Joshua Zehler from seat #2 effective February 19, 2014 for the Bahia Lakes Community Development District. Mr. Orlando submitted his resignation from seat #5 of the Board of Supervisors. On a Motion by Mr. Skokanic, seconded by Mr. Carr, with all in favor, the Board of Supervisors accepted the resignation of Board supervisor Anthony Orlando from seat #5 effective February 19, 2014 for the Bahia Lakes Community Development District. On a Motion by Mr. Skokanic, seconded by Mr. Carr, with all in favor, the Board of Supervisors appointed Anthony Orlando to serve in seat #2 of the Board of Supervisors effective February 19, 2014 for the Bahia Lakes Community Development District. Mr. Cox administered the Oath of Office to Mr. Orlando. NINTH ORDER OF BUSINESS Adjournment On a Motion by Mr. Skokanic, seconded by Mr. Carr, with all in favor, at 7:30 p.m. the Board of Supervisors adjourned the meeting for the Bahia Lakes Community Development District. Secretary/Assistant Secretary Chairman/Vice Chairman

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9 BAHIA LAKES COMMUNITY DEVELOPMENT DISTRICT DISTRICT OFFICE 3434 COLWELL AVENUE SUITE 200 TAMPA, FLORIDA Operation and Maintenance Expenditures February 2014 For Board Approval Attached please find the check register listing the Operation and Maintenance expenditures paid from February 1, 2014 through February 28, This does not include expenditures previously approved by the Board. The total items being presented: $15, Approval of Expenditures: Chairman Vice Chairman Assistant Secretary

10 Bahia Lakes Community Development District Paid Operation & Maintenance Expenses February 1, 2014 Through February 28, Cash-SunTrust Operating Account Vendor Name Check Number Invoice Number Invoice Description Invoice Amount Aquatic Systems, Inc Mnthly Lake & Wetland Srv 01/14 $ Aquatic Systems, Inc Mnthly Lake & Wetland Srv 02/14 $ Bahia Lakes Homeowners Landscaping/Shared Expense 01/14 $ 4, Association, Inc. Ecological Consultants, Inc Regular Scheduled Maintenance 01/14 $ Landmark Engineering & Engineering Services 01/14 $ Surveying Corporation Rizzetta & Company, Inc District Management Fees 02/14 $ 3, Straley & Robin Legal Services 02/14 $ Sunset Grill at Little Harbor Sunset Grill Payment for Use of Facility for CDD $ Meeting TECO 1683 TECO Summary 01/14 TECO Electric Summary 01/14 $ 5, Report Total $ 15,083.56

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29 BAHIA LAKES COMMUNITY DEVELOPMENT DISTRICT DISTRICT OFFICE 3434 COLWELL AVENUE SUITE 200 TAMPA, FLORIDA Operation and Maintenance Expenditures March 2014 For Board Approval Attached please find the check register listing the Operation and Maintenance expenditures paid from March 1, 2014 through March 31, This does not include expenditures previously approved by the Board. The total items being presented: $22, Approval of Expenditures: Chairman Vice Chairman Assistant Secretary

30 Bahia Lakes Community Development District Paid Operation & Maintenance Expenses March 1, 2014 Through March 31, Cash-SunTrust Operating Account Vendor Name Check Number Invoice Number Invoice Description Invoice Amount Anthony J. Orlando 1692 AO Board of Supervisors Meeting 02/19/14 $ Aquatic Systems, Inc Removal of Brazillian Pepper Trees $ 6, Bahia Lakes Homeowners Landscaping/Shared Expense 02/14 $ 4, Association, Inc. Craig Carr 1690 CC Board of Supervisors Meeting 02/19/14 $ Grau and Associates Audit For Fiscal Year End 09/30/13 $ 3, Josh Zehler 1691 JZ Board of Supervisors Meeting 02/19/14 $ Ralph Skokanic 1693 RS Board of Supervisors Meeting 02/19/14 $ Rizzetta & Company, Inc District Management Fees 03/14 $ 3, TECO 1696 TECO Summary 02/14 TECO Electric Summary 02/14 $ 5, Report Total $ 22,928.73

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46 Taylor John Fiorelli 1105 Seminole Sky Drive Ruskin, FL Phone: NMLS# Dear Hiring Manager, If your company requires a licensed professional consultant seeking a career in the mortgage lending industry; then look no further. I am a natural seller with a no-excuses attitude that is up to any task. I excel in team environment where analytical thinking, time management and professional common sense are in demand. While my prior employment may be in a separate but related industry; my attitude, drive and experience will enable me to fulfill even your highest expectations. Utilizing 12 years of professional experience in sales, customer service and management consulting, my daily output reflects a high level of motivation and the ability to meet any objective. I have the proven ability to troubleshoot complex projects under a minimum amount of supervision. I am also very familiar with electronic documents and communication, word processing, fax/scan/ /convert and web tools. While I posses most of the skills that are necessary to succeed in your industry. Character, personality, and the ability to work as a productive team member can be better demonstrated in a personal meeting or phone interview at your convenience. Thank you for your time and consideration. Sincerely, Taylor J. Fiorelli

47 Taylor John Fiorelli 1105 Seminole Sky Drive Ruskin, FL Phone: NMLS# JOB TARGET: It is my professional goal to take on a position at an established mortgage and lending firm where my experience in sales, customer service and project management will be rewarded with security and advancement in a team atmosphere. RELEVANT SKILLS: Industry Key Skills: DU (Desktop Underwriter), LP(Loan Prospector), Calyx, Encompass, MS Outlook, Adobe Acrobat, Desktop Imaging & Faxing, File Transfer Protocol FTP, Privacy and Security. Customer service oriented, clean-cut, punctual and professional. Order fulfillment with a high closing percent, successful at working independently, strong communication skills, public speaking, entrepreneurial drive & sale closing, technically proficient with personal computers and mobile devices. 10 years of experience with crew supervision and face to face consulting for International property management companies. Web-based sales and campaign design. PROFESSIONAL EXPERIENCE: Current Position: Mortgage New Penn Financial (Tampa, FL) Reverse Mortgage Advisor (June 2013 to October 2013) Liberty Home Equity Solutions Actively pursued and generated loans in the Reverse Mortgage industry. 12 total loans closed in my first 60 days. Left company due to a commission base rate change when the company was taken over by a new holding company. New Sales Manager & Crew Supervisor - (January 2004 to May 2013) Kwik Clean Company, Lombard, IL Monitoring of company s daily procedures and field work while managing a bilingual crew of 8 workers Duties include: Customer Service, Property management, Janitorial, New Business Sales, Contract Renewal, Web-site Administrator. Retail Sales Representative (August 2006 November 2007) Pella Products Incorporated, Rockford, IL - Responsible for all field activity relating to customer relations, product sales, collections and customer satisfaction for the replacement segment. Pursued leads, gave product demonstrations both in the home and at the Window Store, discussed product options with the customer while taking on-site measurements. KEY QUALIFICATIONS: National & State Safe Act Certified: NMLS# Renewal Completed High energy, fast learner, quickly implements new procedures and products. Proven ability to work independently and handle simultaneous clients and projects with a large customer base. Computer and Mobile device literate, Web based sales and promotion expert. EDUCATION: Bachelors of Arts- (January 2004) Columbia College Chicago, IL Completed conservatory level course work in instrumental/vocal performance, acoustic sciences & music business.

48 Taylor John Fiorelli 1105 Seminole Sky Drive Ruskin, FL Phone: NMLS# Professional Letter of Recommendation: November 1st, 2012 To whom this may concern, I am writing to tell you of the many fine qualities of Taylor Fiorelli, whom I have known for 25 years. During that time I have grown to know Taylor very well, and believe I can offer a true assessment of his personality and character. Throughout the years Taylor has demonstrated that he is a person with a strong moral character, who operates with integrity, and never has a bad word to say about anyone. He is hard working and dedicated, never leaving a job unfinished. On a personal level, Taylor is kind and generous and is well liked professionally as well as personally. He is funny without resorting to mean humor, and has a way of engaging all types of people. In fact, I don't believe I have ever heard anyone say a bad word about Taylor. In short, any business would be lucky to have Taylor as an employee. He is dedicated and cares about succeeding at whatever he does. He is also incredibly efficient, using his time to work wisely to accomplish his goals. I fully recommend Taylor for employment with your company, and I hope you will jump at the opportunity to have this kind of person as a member of your team. Thank you, Marsha Silagy Novartis Pharmaceuticals

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50 RESOLUTION A RESOLUTION OF THE BOARD OF SUPERVISORS OF BAHIA LAKES COMMUNITY DEVELOPMENT DISTRICT DESIGNATING THE OFFICERS OF THE DISTRICT, AND PROVIDING FOR AN EFFECTIVE DATE WHEREAS, Bahia Lakes Community Development District (hereinafter the District ) is a local unit of special-purpose government created and existing pursuant to Chapter 190, Florida Statutes, being situated entirely within Hillsborough County, Florida; and WHEREAS, the Board of Supervisors of the District desires to designate the Officers of the District. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF SUPERVISORS OF BAHIA LAKES COMMUNITY DEVELOPMENT DISTRICT: Section 1. is appointed Chairman. Section 2. is appointed Vice Chairman. Section 3. is appointed Assistant Secretary. is appointed Assistant Secretary. is appointed Assistant Secretary. Greg Cox is appointed Assistant Secretary. Matt Huber is appointed Assistant Secretary. Section 4. This Resolution shall become effective immediately upon its adoption. PASSED AND ADOPTED this 16 th day of April, BAHIA LAKES COMMUNITY DEVELOPMENT DISTRICT ATTEST: Chairman/Vice Chairman Secretary/Asst. Secretary

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52 BAHIA LAKES COMMUNITY DEVELOPMENT DISTRICT HILLSBOROUGH COUNTY, FLORIDA FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013

53 BAHIA LAKES COMMUNITY DEVELOPMENT DISTRICT HILLSBOROUGH COUNTY, FLORIDA TABLE OF CONTENTS INDEPENDENT AUDITOR S REPORT 1-2 MANAGEMENT S DISCUSSION AND ANALYSIS 3-6 BASIC FINANCIAL STATEMENTS Government-Wide Financial Statements: Statement of Net Position 7 Statement of Activities 8 Fund Financial Statements: Balance Sheet Governmental Funds 9 Reconciliation of the Balance Sheet Governmental Funds to the Statement of Net Position 10 Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds 11 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 12 Notes to the Financial Statements REQUIRED SUPPLEMENTARY INFORMATION Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual General Fund 22 Notes to Required Supplementary Information 23 INDEPENDENT AUDITOR S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS MANAGEMENT LETTER PURSUANT TO THE RULES OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA Page

54 2700 North Military Trail Suite 350 Boca Raton, Florida (561) (800) Fax (561) To the Board of Supervisors Bahia Lakes Community Development District Hillsborough County, Florida Report on the Financial Statements INDEPENDENT AUDITOR S REPORT We have audited the accompanying financial statements of the governmental activities, each major fund, and the remaining fund information of Bahia Lakes Community Development District, Hillsborough County, Florida ( District ) as of and for the fiscal year ended September 30, 2013, and the related notes to the financial statements, which collectively comprise the District s basic financial statements as listed in the table of contents. Management s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the remaining fund information of the District as of September 30, 2013, and the respective changes in financial position thereof for the fiscal year then ended in accordance with accounting principles generally accepted in the United States of America.

55 Emphasis of Matter As described in Note 2 to the financial statements, in fiscal year 2013, the District implemented new accounting guidance, Governmental Accounting Standards Board ( GASB ) Statements No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position and No. 65, Items Previously Reported as Assets and Liabilities. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management s discussion and analysis and budgetary comparison information be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 11, 2014, on our consideration of the District s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District s internal control over financial reporting and compliance. March 11,

56 MANAGEMENT S DISCUSSION AND ANALYSIS Our discussion and analysis of Bahia Lakes Community Development District, Hillsborough County, Florida ( District ) provides a narrative overview of the District s financial activities for the fiscal year ended September 30, Please read it in conjunction with the District s Independent Auditor s Report, basic financial statements, accompanying notes and supplementary information to the basic financial statements. FINANCIAL HIGHLIGHTS The assets of the District exceeded its liabilities at the close of the most recent fiscal year resulting in a net position balance of $1,378,171. The change in the District's total net position in comparison with the prior year was $49,541, an increase. The key components of the District's net position and change in net position are reflected in the table in the government-wide financial analysis section. At September 30, 2013, the District s governmental funds reported combined ending fund balances of $672,279, an increase of $32,497 in comparison with the prior year. A portion of fund balance is restricted for debt service and capital projects, non-spendable for prepaid items, and the remainder is unassigned fund balance which is available for spending at the District s discretion. During fiscal year 2013, the District implemented Governmental Accounting Standards Board ( GASB ) Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 Financial Accounting Standards Board ( FASB ) and American Institute of Certified Public Accountants ( AICPA ) Pronouncements, GASB Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position, and GASB Statement No. 65, Items Previously Reported as Assets and Liabilities. Please see New Accounting Standards Adopted in Note 2 of the financial statements for additional information. OVERVIEW OF FINANCIAL STATEMENTS This discussion and analysis is intended to serve as the introduction to the District s basic financial statements. The District s basic financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-Wide Financial Statements The government-wide financial statements are designed to provide readers with a broad overview of the District s finances, in a manner similar to a private-sector business. The statement of net position presents information on all the District s assets, deferred outflows of resources, liabilities, and deferred inflows of resources with the residual amount being reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the District is improving or deteriorating. The statement of activities presents information showing how the government s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods. The government-wide financial statements distinguish functions of the District that are principally supported by assessment revenues. The District does not have any business-type activities. The governmental activities of the District include the general government (management) and maintenance functions. 3

57 OVERVIEW OF FINANCIAL STATEMENTS (Continued) Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The District, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the District can be attributed to one category: governmental funds. Governmental Funds Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a District s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the District s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balance provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The District maintains three individual governmental funds. Information is presented separately in the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances for the general fund, debt service fund and capital projects fund. The general fund and debt service funds are considered to be major funds and the capital projects fund is considered to be a non-major fund. The District adopts an annual appropriated budget for its general fund. A budgetary comparison schedule has been provided for the general fund to demonstrate compliance with the budget. Notes to the Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. GOVERNMENT-WIDE FINANCIAL ANALYSIS As noted earlier, net position may serve over time as a useful indicator of an entity s financial position. In the case of the District, assets exceeded liabilities at the close of the most recent fiscal year. The District s net position reflects its investment in capital assets (e.g. land, land improvements, and infrastructure); less any related debt used to acquire those assets that is still outstanding. These assets are used to provide services to residents; consequently, these assets are not available for future spending. Although the District s investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. The restricted portion of the District s net position represents resources that are subject to external restrictions on how they may be used. 4

58 GOVERNMENT-WIDE FINANCIAL ANALYSIS (Continued) Key components of the District s net position are reflected in the following table: NET POSITION SEPTEMBER 30, Current and other assets $ 682,584 $ 785,935 Capital assets, net of depreciation 3,410,955 3,445,047 Total assets 4,093,539 4,230,982 Current liabilities 70,368 72,571 Long-term liabilities 2,645,000 2,695,000 Total liabilities 2,715,368 2,767,571 Net position Net investment in capital assets 1,479,805 1,610,545 Restricted for: Debt service 47,557 43,198 Capital projects 1,067 1,067 Unrestricted (150,258) (191,399) Total net position $ 1,378,171 $ 1,463,411 The District s net position increased during the most recent fiscal year. The majority of the increase represents the extent to which assessment revenue exceeded the cost of operations and depreciation expense. Key elements of the change in net position are reflected in the following table: CHANGES IN NET POSITION FOR THE FISCAL YEAR ENDED SEPTEMBER 30, Revenues: Program revenues Charges for services $ 506,041 $ 508,298 General revenues Unrestricted investment earnings 1, Miscellaneous 2,977 2,366 Total revenues 510, ,471 Expenses: General government 76,268 59,897 Physical environment 238, ,283 Interest on long-term debt 145, ,103 Total expenses 460, ,283 Change in net position 49, ,188 Net position - beginning, previously stated 1,463,411 1,358,223 Effect of adoption of GASB No. 65 (Note 2) (134,781) - Net position - beginning, as restated 1,328,630 - Net position - ending $ 1,378,171 $ 1,463,411 As noted above and in the statement of activities, the cost of all governmental activities during the fiscal year ended September 30, 2013 was $460,637. The costs of the District s activities were primarily funded by program revenues. As in the prior fiscal year, program revenues are comprised primarily of assessments. The increase in total expenses is primarily due to enhancements to the nature trail in the current fiscal year. GENERAL BUDGETING HIGHLIGHTS An operating budget was adopted and maintained by the governing board for the District pursuant to the requirements of Florida Statutes. The budget is adopted using the same basis of accounting that is used in preparation of the fund financial statements. The legal level of budgetary control, the level at which expenditures may not exceed budget, is in the aggregate. Any budget amendments that increase the aggregate budgeted appropriations must be approved by the Board of Supervisors. Actual general fund expenditures did not exceed appropriations for the fiscal year ended September 30,

59 GENERAL BUDGETING HIGHLIGHTS (Continued) The variance between budgeted and actual general fund revenues is primarily due to less people taking advantage of the discount period leading to higher collections on assessments. In addition, certain refund included in miscellaneous income was not anticipated in the Budget. The actual general fund expenditures were lower than budgeted amounts due primarily to anticipated costs which were not incurred in the current fiscal year. CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets At September 30, 2013, the District had $3,621,185 invested in infrastructure under construction and infrastructure improvements, for its governmental activities. In the government-wide financial statements, depreciation of $210,230 has been taken, which resulted in a net book value of $3,410,955. More detailed information about the District s capital assets is presented in the notes to the financial statements. Capital Debt At September 30, 2013, the District had $2,645,000 in Bonds outstanding for its governmental activities. More detailed information about the District s debt is presented in the accompanying notes to the financial statements. ECONOMIC FACTORS AND NEXT YEAR S BUDGETS AND OTHER EVENTS The District does not anticipate any major projects or significant changes to its infrastructure maintenance program for the subsequent fiscal year. In addition, it is anticipated that the general operations of the District will increase. CONTACTING THE DISTRICT S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, customers, investors and creditors with a general overview of the District s finances and to demonstrate the District s accountability for the financial resources it manages and the stewardship of the facilities it maintains. If you have questions about this report or need additional financial information, contact the Bahia Lakes Community Development District s Finance Department at 3434 Colwell Avenue, Suite 200, Tampa Florida,

60 FINANCIAL STATEMENTS

61 BAHIA LAKES COMMUNITY DEVELOPMENT DISTRICT HILLSBOROUGH COUNTY, FLORIDA STATEMENT OF NET POSITION SEPTEMBER 30, 2013 Governmental Activities ASSETS Cash $ 447,508 Investments 4,568 Prepaids 8,563 Accounts receivable 360 Restricted assets: Temporarily restricted Investments 221,585 Capital assets Non-depreciable assets 2,996,204 Depreciable assets, net 414,751 Total assets 4,093,539 LIABILITIES Accounts payable and accrued expenses 10,305 Accrued interest payable 60,063 Non-current liabilities: Due within one year 55,000 Due in more than one year 2,590,000 Total liabilities 2,715,368 NET POSITION Net investment in capital assets 1,479,805 Restricted for: Debt service 47,557 Capital projects 1,067 Unrestricted (150,258) Total net position $ 1,378,171 See notes to the financial statements 7

62 BAHIA LAKES COMMUNITY DEVELOPMENT DISTRICT HILLSBOROUGH COUNTY, FLORIDA STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 Net (Expense) Revenue and Changes in Net Program Revenues Position Charges for Governmental Functions/Programs Expenses Services Activities Primary government: Governmental activities: General government $ 76,268 $ 76,268 $ - Physical environment 238, ,673 (8,955) Interest on long-term debt 145, ,100 54,359 Total governmental activities 460, ,041 45,404 General revenues: Unrestricted investment earnings 1,160 Miscellaneous 2,977 Total general revenues 4,137 Change in net position 49,541 Net position - beginning, previously stated 1,463,411 Effect of adoption of GASB No. 65 (Note 2) (134,781) Net position - beginning, as restated 1,328,630 Net position - ending $ 1,378,171 See notes to the financial statements 8

63 BAHIA LAKES COMMUNITY DEVELOPMENT DISTRICT HILLSBOROUGH COUNTY, FLORIDA BALANCE SHEET GOVERNMENTAL FUNDS SEPTEMBER 30, 2013 Major Funds Non-Major Fund Total Debt Capital Governmental General Service Project Funds ASSETS Cash $ 447,508 $ - $ - $ 447,508 Investments 4, ,042 21, ,153 Accounts receivable Prepaids 8, ,563 Total assets $ 460,999 $ 200,042 $ 21,543 $ 682,584 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable and accrued expenses $ 10,305 $ - $ - $ 10,305 Total liabilities 10, ,305 Fund balances: Nonspendable: Prepaid items 8, ,563 Restricted for: Debt service - 200, ,042 Capital projects ,543 21,543 Unassigned 442, ,131 Total fund balances 450, ,042 21, ,279 Total liabilities and fund balances $ 460,999 $ 200,042 $ 21,543 $ 682,584 See notes to the financial statements 9

64 BAHIA LAKES COMMUNITY DEVELOPMENT DISTRICT HILLSBOROUGH COUNTY, FLORIDA RECONCILIATION OF THE BALANCE SHEET- GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION SEPTEMBER 30, 2013 Fund balance - governmental funds $ 672,279 Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported as assets in the governmental funds. The statement of net position includes those capital assets in the net position of the government as a whole. Cost of capital assets 3,621,185 Accumulated depreciation (210,230) 3,410,955 Liabilities not due and payable from current available resources are not reported as liabilities in the governmental fund statements. All liabilities, both current and long-term, are reported in the government-wide financial statements. Accrued interest payable (60,063) Bonds payable (2,645,000) (2,705,063) Net position of governmental activities $ 1,378,171 See notes to the financial statements 10

65 BAHIA LAKES COMMUNITY DEVELOPMENT DISTRICT HILLSBOROUGH COUNTY, FLORIDA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 Major Funds Non-Major Fund Total Debt Capital Governmental General Service Project Funds REVENUES Assessments $ 305,941 $ 200,100 $ - $ 506,041 Interest and other revenues 4, ,137 Total revenues 310, , ,178 EXPENDITURES Current: General government 76, ,268 Physical environment 204, ,536 Debt service: Principal - 50,000-50,000 Interest - 146, ,877 Total expenditures 280, , ,681 Excess (deficiency) of revenues over (under) expenditures 29,274 3,223-32,497 OTHER FINANCING SOURCES (USES) Transfer in (out) - 61 (61) - Total other financing sources (uses) - 61 (61) - Net change in fund balances 29,274 3,284 (61) 32,497 Fund balances - beginning 421, ,758 21, ,782 Fund balances - ending $ 450,694 $ 200,042 $ 21,543 $ 672,279 See notes to the financial statements 11

66 BAHIA LAKES COMMUNITY DEVELOPMENT DISTRICT HILLSBOROUGH COUNTY, FLORIDA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 Net change in fund balances - total governmental funds $ 32,497 Amounts reported for governmental activities in the statement of activities are different because: Depreciation of capital assets is not recognized in the governmental fund statements but is reported as an expense in the statement of activities. (34,092) Repayment of long-term liabilities are reported as expenditures in the governmental fund statement but such repayments reduce liabilities in the statement of net position and are eliminated in the statement of activities. 50,000 The change in accrued interest on long-term liabilities between the current and prior fiscal year is recorded in the statement of activities but not in the fund financial statements. 1,136 Change in net position of governmental activities $ 49,541 See notes to the financial statements 12

67 BAHIA LAKES COMMUNITY DEVELOPMENT DISTRICT HILLSBOROUGH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS NOTE 1 NATURE OF ORGANIZATION AND REPORTING ENTITY Bahia Lakes Community Development District ("District") was established on February 24, 2006 by Ordinance No of Hillsborough County, Florida, pursuant to the Uniform Community Development District Act of 1980, otherwise known as Chapter 190, Florida Statutes. The Act provides, among other things, the power to manage basic services for community development, power to borrow money and issue bonds, and to levy and assess non-ad valorem assessments for the financing and delivery of capital infrastructure. The District was established for the purposes of financing and managing the acquisition, construction, maintenance and operation of a portion of the infrastructure necessary for community development within the District. The District is governed by the Board of Supervisors ("the Board"), which is composed of five members. The Supervisors are elected on an at large basis by the landowners of the District. The Board of Supervisors of the District exercises all powers granted to the District pursuant to Chapter 190, Florida Statutes. The Board has the responsibility for: 1. Allocating and levying assessments. 2. Approving budgets. 3. Exercising control over facilities and properties. 4. Controlling the use of funds generated by the District. 5. Approving the hiring and firing of key personnel. 6. Financing improvements. The financial statements were prepared in accordance with Governmental Accounting Standards Board ( GASB ) Statement 14, Statement 39 and Statement 61, amendments of GASB Statement 14. Under the provisions of those standards, the financial reporting entity consists of the primary government, organizations for which the District Board of Supervisors is considered to be financially accountable, and other organizations for which the nature and significance of their relationship with the District are such that, if excluded, the financial statements of the District would be considered incomplete or misleading. There are no entities considered to be component units of the District; therefore, the financial statements include only the operations of the District. NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Government-Wide and Fund Financial Statements The basic financial statements include both government-wide and fund financial statements. The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the non-fiduciary activities of the primary government. For the most part, the effect of interfund activity has been removed from these statements. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment. Operating-type special assessments for maintenance and debt service are treated as charges for services; and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Other items not included among program revenues are reported instead as general revenues. 13

68 NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Measurement Focus, Basis of Accounting and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Assessments are recognized as revenues in the year for which they are levied. Grants and similar items are to be recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures are recorded only when payment is due. Assessments Assessments, including debt service assessments and operations and maintenance assessments, are non-ad valorem assessments imposed on all lands located within the District and benefitted by the District s activities. Operation and maintenance assessments are levied by the District prior to the start of the fiscal year which begins October 1 st and ends on September 30 th. Operation and maintenance special assessments are imposed upon all benefitted lands in the District. Debt service special assessments are imposed upon certain lots and lands described in each resolution imposing the special assessment for each series of Bonds issued by the District. Assessments and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. The government reports the following major governmental funds: General Fund The general fund is the general operating fund of the District. It is used to account for all financial resources except those required to be accounted for in another fund. Debt Service Fund The debt service fund is used to account for the accumulation of resources for the annual payment of principal and interest on long-term debt. The District also reports the following non-major governmental fund: Capital Project Fund The capital project fund is used to account for financial resources to be used for the acquisition or construction of major infrastructure within the District. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. When both restricted and unrestricted resources are available for use, it is the government s policy to use restricted resources first for qualifying expenditures, then unrestricted resources as they are needed. 14

69 NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) New Accounting Standards Adopted During fiscal year 2013, the District implemented three new accounting standards as follows: GASB Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre- November 30, 1989 FASB and AICPA Pronouncements This Statement incorporates into the GASB s authoritative literature certain guidance that previously could only be found in certain FASB and AICPA pronouncements issued on or before November 30, 1989 and eliminates the selection to apply post-november 30, 1989 FASB pronouncements that do not conflict with or contradict GASB pronouncements. GASB Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position This Statement provides financial reporting guidance for deferred outflows of resources and deferred inflows of resources and identifies net position as the residual of all other elements presented in a statement of financial position. This Statement amends the net asset reporting requirements by incorporating deferred outflows of resources and deferred inflows of resources (previously reported as assets and liabilities) into the definitions of the required components of the residual measure and by renaming that measure as net position, rather than net assets. GASB Statement No. 65, Items Previously Reported as Assets and Liabilities This Statement establishes accounting and financial reporting standards that reclassify, as deferred outflows of resources or deferred inflows of resources, certain items that were previously reported as assets and liabilities and recognizes, as outflows of resources or inflows of resources, certain items that were previously reported as assets and liabilities. The implementation of GASB 65 resulted in the write off of Bond issuance costs and the effect of adoption of GASB 65 is the reduction of beginning net position by $134,781 of the governmental activities. The effect on fiscal year 2012 had the implementation of GASB 65 occurred earlier would have resulted in a decrease in expenses of the governmental activities by $5,635. Assets, Liabilities and Net Position or Equity Restricted Assets These assets represent cash and investments set aside pursuant to Bond covenants or other contractual restrictions. Deposits and Investments The District s cash on hand and demand deposits are considered to be cash and cash equivalents. The District has elected to proceed under the Alternative Investment Guidelines as set forth in Section (17) Florida Statutes. The District may invest any surplus public funds in the following: a) The Local Government Surplus Trust Funds, or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act; b) Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency; c) Interest bearing time deposits or savings accounts in qualified public depositories; d) Direct obligations of the U.S. Treasury; e) Short-term Bond Funds. 15

70 NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Assets, Liabilities and Net position or Equity (Continued) Deposits and Investments (Continued) In addition, surplus funds may be deposited into certificates of deposit which are insured. Any unspent proceeds are required to be held in investments allowed in as specified in the Bond Indenture. Securities listed in paragraph c and d shall be invested to provide sufficient liquidity to pay obligations as they come due. The District records all interest revenue related to investment activities in the respective funds and reports investments at fair value. Inventories and Prepaid Items Inventories of governmental funds are recorded as expenditures when consumed rather than when purchased. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. Capital Assets Capital assets, which include property, plant and equipment, and infrastructure assets (e.g., roads, sidewalks and similar items) are reported in the governmental activities columns in the government-wide financial statements. Capital assets are defined by the government as assets with an initial, individual cost of more than $5,000 (amount not rounded) and an estimated useful life in excess of two years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Property, plant and equipment of the District are depreciated using the straight-line method over the following estimated useful lives: Assets Years Stormwater management 25 Entry parcel/ landscaping and walls 15 In the governmental fund financial statements, amounts incurred for the acquisition of capital assets are reported as fund expenditures. Depreciation expense is not reported in the governmental fund financial statements. Unearned Revenue Governmental funds report unearned revenue in connection with resources that have been received, but not yet earned. Long-Term Obligations In the government-wide financial statements long-term debt and other long-term obligations are reported as liabilities in the statement of net position. Bond premiums and discounts are deferred and amortized over the life of the Bonds. Bonds payable are reported net of applicable premiums or discounts. Bond issuance costs are expensed when incurred. 16

71 NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Assets, Liabilities and Net position or Equity (Continued) Long-Term Obligations (Continued) In the fund financial statements, governmental fund types recognize premiums and discounts, as well as issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Deferred Outflows/Inflows of Resources The statement of net position reports, as applicable, a separate section for deferred outflows of resources. Deferred outflows of resources represent a consumption of net position that applies to future reporting period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until that time. For example, the District would record deferred outflows of resources related to debit amounts resulting from current and advance refundings resulting in the defeasance of debt (i.e. when there are differences between the reacquisition price and the net carrying amount of the old debt). The statement of net position reports, as applicable, a separate section for deferred inflows of resources. Deferred inflows of resources represent an acquisition of net position that applies to future reporting period(s) and so will not be recognized as an inflow of resources (revenue) until that time. For example, when an asset is recorded in the governmental fund financial statements, but the revenue is not available, the District reports a deferred inflow of resources until such times as the revenue becomes available. Fund Equity/Net Position In the fund financial statements, governmental funds report non spendable and restricted fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Assignments of fund balance represent tentative management plans that are subject to change. The District can establish limitations on the use of fund balance as follows: Committed fund balance Amounts that can be used only for the specific purposes determined by a formal action (resolution) of the Board of Supervisors. Commitments may be changed or lifted only by the Board of Supervisors taking the same formal action (resolution) that imposed the constraint originally. Resources accumulated pursuant to stabilization arrangements sometimes are reported in this category. Assigned fund balance Includes spendable fund balance amounts established by the Board of Supervisors that are intended to be used for specific purposes that are neither considered restricted nor committed. The Board may also assign fund balance as it does when appropriating fund balance to cover differences in estimated revenue and appropriations in the subsequent year s appropriated budget. Assignments are generally temporary and normally the same formal action need not be taken to remove the assignment. The District first uses committed fund balance, followed by assigned fund balance and then unassigned fund balance when expenditures are incurred for purposes for which amounts in any of the unrestricted fund balance classifications could be used. Net position is the difference between assets and deferred outflows of resources less liabilities and deferred inflows of resources. Net position in the government-wide financial statements are categorized as net investment in capital assets, restricted or unrestricted. Net investment in capital assets represents net position related to infrastructure and property, plant and equipment. Restricted net position represents the assets restricted by the District s Bond covenants or other contractual restrictions. Unrestricted net position consists of the net position not meeting the definition of either of the other two components. 17

72 NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Other Disclosures Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates. NOTE 3 BUDGETARY INFORMATION The District is required to establish a budgetary system and an approved Annual Budget. Annual Budgets are adopted on a basis consistent with generally accepted accounting principles for the general fund. All annual appropriations lapse at fiscal year end. The District follows these procedures in establishing the budgetary data reflected in the financial statements. a) Each year, the District Manager submits to the District Board a proposed operating budget for the fiscal year commencing the following October 1. b) A public hearing is conducted to obtain comments. c) Prior to October 1, the budget is legally adopted by the District Board. d) All budget changes must be approved by the District Board. e) The budgets are adopted on a basis consistent with generally accepted accounting principles. f) Unused appropriations for annually budgeted funds lapse at the end of the year. NOTE 4 DEPOSITS AND INVESTMENTS Deposits The District s cash balances were entirely covered by federal depository insurance or by a collateral pool pledged to the State Treasurer. Florida Statutes Chapter 280, "Florida Security for Public Deposits Act", requires all qualified depositories to deposit with the Treasurer or another banking institution eligible collateral equal to various percentages of the average daily balance for each month of all public deposits in excess of any applicable deposit insurance held. The percentage of eligible collateral (generally, U.S. Governmental and agency securities, state or local government debt, or corporate bonds) to public deposits is dependent upon the depository's financial history and its compliance with Chapter 280. In the event of a failure of a qualified public depository, the remaining public depositories would be responsible for covering any resulting losses. Investments The District s investments were held as follows at September 30, 2013: Fair Value Credit Risk Weighted Average Maturities First American Treasury Obligations CL Z $ 221,585 S&P AAAm 48 days Investment in Local Government Surplus Funds Trust Fund (Florida PRIME) 3,492 S&P AAAm 44 days Investment in Fund B Surplus Funds Trust Fund 1,076 Not rated 4.04 years Total Investments $ 226,153 18

73 NOTE 4 DEPOSITS AND INVESTMENTS (Continued) Investments (Continued) Credit risk For investments, credit risk is generally the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Investment ratings by investment type are included in the preceding summary of investments. Concentration risk The District places no limit on the amount the District may invest in any one issuer. Interest rate risk The District does not have a formal policy that limits investment maturities as a means of managing exposure to fair value losses arising from increasing interest rates. The Bond indenture limits the type of investments held using unspent Bond proceeds. NOTE 5 CAPITAL ASSETS Capital asset activity for the fiscal year ended September 30, 2013 was as follows: Beginning Balance Additions Disposals Ending Balance Governmental activities Capital assets, not being depreciated Infrastructure under construction $ 2,996,204 $ - $ - $ 2,996,204 Total capital assets, not being depreciated 2,996, ,996,204 Capital assets, being depreciated Stormwater management 284, ,021 Entry parcel/landscaping/walls 340, ,960 Total capital assets, being depreciated 624, ,981 Less accumulated depreciation for: Stormwater management 68,166 11,361-79,527 Entry parcel/landscaping/walls 107,972 22, ,703 Total accumulated depreciation 176,138 34, ,230 Total capital assets, being depreciated, net 448,843 (34,092) - 414,751 Governmental activities capital assets, net $ 3,445,047 $ (34,092) $ - $ 3,410,955 The infrastructure intended to serve the District has been estimated at a total cost of approximately $9,577,000. The infrastructure will include roadways, stormwater management facilities, water collection and distribution system, wastewater facilities and entry landscaping. Approximately $2,460,490 will be funded with proceeds of the Bonds and the remainder of the project, as well as any additional infrastructure, is to be funded by the Developer. The infrastructure improvements for phases 1, 2 and 3 were completed. Certain assets within the phases have been conveyed. Phase 4 of the project has been placed on hold. Further, due to the uncertainty as to the completion of Phase 4 of the project within a reasonable period of time, the infrastructure may not be able to be used for its intended purpose as anticipated in the original project description. There is no estimate at this time for the additional funding that might be required if there is a change to the project. In connection with the 2006 project, the District established a deferred cost investment account reported in the capital projects fund. In the event there are excess 2006 reserves, the funds are to be transferred from the debt service to the capital projects fund and used to repay funds advanced for the project or for the purchase of additional components. However, if funds in the account are not needed for that purpose, they are to be transferred to the debt service fund and used to redeem outstanding related debt. At September 30, 2013, there is a balance of $12,562 in the deferred cost account. The District has not yet determined if a liability exists for deferred costs. Depreciation expense was charged to the physical environment function. 19

74 NOTE 6 LONG-TERM LIABILITIES On September 1, 2006, the District issued $2,915,000 of Capital Improvement Revenue Bonds, Series 2006 due on May 1, 2037 with a fixed interest rate of 5.45%. The Bonds were issued to finance the acquisition and construction of certain improvements for the benefit of the District. Interest is to be paid semiannually on each May 1 and November 1. Principal on the Bonds is to be paid serially commencing May 1, 2008 through May 1, The Bonds are subject to redemption at the option of the District prior to maturity. The Bonds are also subject to extraordinary mandatory redemption prior to their selected maturity in the manner determined by the Bond Registrar if certain events occur as outlined in the Bond Indenture. The Bond Indenture requires that the District maintain adequate funds in a reserve account to meet the debt service reserve requirement as defined in the Indenture. In addition, the Bond Indenture has certain restrictions and requirements relating principally to the use of proceeds to pay for the infrastructure improvements and the procedures to be followed by the District on assessments to property owners. The District agrees to levy special assessments in annual amounts adequate to provide payment of debt service and to meet the reserve requirements. The District was in compliance with the requirements at September 30, Changes in long-term liability activity for the fiscal year ended September 30, 2013 were as follows: Beginning Balance Additions Reductions Governmental activities Bonds payable: Series 2006 $ 2,695,000 $ - 50,000 Total $ 2,695,000 $ - 50,000 Ending Balance Due Within One Year $ $ 2,645,000 $ 55,000 $ $ 2,645,000 $ 55,000 At September 30, 2013, the scheduled debt service requirements on the long-term debt were as follows: Governmental Activities Year ending September 30: Principal Interest Total 2014 $ 55,000 $ 144,153 $ 199, , , , , , , , , , , , , , , , , ,788 1,002, , ,195 1,006, ,000 98, ,918 Total $ 2,645,000 $ 2,167,195 $ 4,812,195 NOTE 7 DEVELOPER TRANSACTIONS The Developer owns a portion of the land within the District; therefore, assessment revenues in the general and debt service funds include the assessments levied on those lots owned by the Developer. NOTE 8 COST SHARE AGREEMENT The District entered into a cost share agreement with the Bahia Lakes Master Association ( HOA ), whereby the HOA would contract a vendor for landscaping services and be reimbursed by the District. Pursuant to the agreement, the District reimbursed the HOA $48,923 for the current year services. 20

75 NOTE 9 CONCENTRATION The District s activity is dependent upon the continued involvement of the Developer, the loss of which could have a material adverse effect on the District s operations. NOTE 10 MANAGEMENT COMPANY The District has contracted with a management company to perform management advisory services, which include financial and accounting services. Certain employees of the management company also serve as officers of the District. Under the agreement, the District compensates the management company for management, accounting, financial reporting, computer and other administrative costs. NOTE 11 RISK MANAGEMENT The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters. The District has obtained commercial insurance from independent third parties to mitigate the costs of these risks; coverage may not extend to all situations. The District has not filed any claims under this commercial coverage during the last three years. 21

76 BAHIA LAKES COMMUNITY DEVELOPMENT DISTRICT HILLSBOROUGH COUNTY, FLORIDA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL GENERAL FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 Variance with Final Budgeted Budget - Amounts Actual Positive Original & Final Amounts (Negative) REVENUES Assessments $ 299,792 $ 305,941 $ 6,149 Interest and other revenues - 4,137 4,137 Total revenues 299, ,078 10,286 EXPENDITURES Current: General government 73,878 76,268 (2,390) Physical environment 225, ,536 21,378 Total expenditures 299, ,804 18,988 Excess (deficiency) of revenues over (under) expenditures $ - 29,274 $ 29,274 Fund balance - beginning 421,420 Fund balance - ending $ 450,694 See notes to required supplementary information 22

77 BAHIA LAKES COMMUNITY DEVELOPMENT DISTRICT HILLSBOROUGH COUNTY, FLORIDA NOTES TO REQUIRED SUPPLEMENTARY INFORMATION The District is required to establish a budgetary system and an approved Annual Budget for the General Fund. The District s budgeting process is based on estimates of cash receipts and cash expenditures which are approved by the Board. The budget approximates a basis consistent with accounting principles generally accepted in the United States of America (generally accepted accounting principles). The legal level of budgetary control, the level at which expenditures may not exceed the budget, is in the aggregate. Any budget amendments that increase the aggregate budgeted appropriations must be approved by the Board of Supervisors. Actual general fund expenditures did not exceed appropriations for the fiscal year ended September 30, The variance between budgeted and actual general fund revenues is primarily due to less people taking advantage of the discount period leading to higher collections on assessments. In addition, certain refund included in miscellaneous income was not anticipated in the Budget. The actual general fund expenditures were lower than budgeted amounts due primarily to anticipated costs which were not incurred in the current fiscal year. 23

78 2700 North Military Trail Suite 350 Boca Raton, Florida (561) (800) Fax (561) INDEPENDENT AUDITOR S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Board of Supervisors Bahia Lakes Community Development District Hillsborough County, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, each major fund, and the remaining fund information of Bahia Lakes Community Development District, Hillsborough County, Florida (the District ) as of and for the fiscal year ended September 30, 2013, and the related notes to the financial statements, which collectively comprise the District s basic financial statements, and have issued our opinion thereon dated March 11, 2014, which includes an emphasis of matter paragraph. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the District s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the District s internal control. Accordingly, we do not express an opinion on the effectiveness of the District s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the District s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. 24

79 Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. March 11,

80 2700 North Military Trail Suite 350 Boca Raton, Florida (561) (800) Fax (561) To the Board of Supervisors Bahia Lakes Community Development District Hillsborough County, Florida MANAGEMENT LETTER PURSUANT TO THE RULES OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA We have audited the accompanying basic financial statements of Bahia Lakes Community Development District, Hillsborough County, Florida (the "District") as of and for the fiscal year ended September 30, 2013, and have issued our report thereon dated March 11, 2014, which includes an emphasis of matter paragraph. We conducted our audit in accordance with auditing standards generally accepted in the United States of America; Government Auditing Standards, issued by the Comptroller General of the United States; and Chapter , Rules of the Florida Auditor General. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. In addition, we have issued our Independent Auditor s Report on Internal Control over Financial Reporting and Compliance and Other Matters based on an audit of the financial statements performed in accordance with Government Auditing Standards and Chapter , Rules of the Florida Auditor General dated March 11, Disclosures in that report should be considered in conjunction with this management letter. The purpose of this letter is to comment on those matters required by Chapter of the Rules of the Auditor General of the State of Florida. Accordingly, in connection with our audit of the financial statements of the District, as described in the first paragraph, we report the following: I. Current year findings and recommendations. II. Status of prior year findings and recommendations. III. Compliance with the Provisions of the Auditor General of the State of Florida. Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, as applicable, management, and the Board of Supervisors of the District and is not intended to be and should not be used by anyone other than these specified parties. We wish to thank the District and the personnel associated with it, for the opportunity to be of service to them in this endeavor as well as future engagements, and the courtesies extended to us. March 11,

81 REPORT TO MANAGEMENT I. CURRENT YEAR FINDINGS AND RECOMMENDATIONS None II. PRIOR YEAR FINDINGS AND RECOMMENDATIONS None III. COMPLIANCE WITH THE PROVISIONS OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA Unless otherwise required to be reported in the auditor s report on compliance and internal controls, the management letter shall include, but not be limited to the following: 1. A statement as to whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. There were no significant findings and recommendations made in the preceding annual financial audit report for the fiscal year ended September 30, A statement as to whether or not the local governmental entity complied with Section , Florida Statutes, regarding the investment of public funds. The District complied with Section , Florida Statutes, regarding the investment of public funds. 3. Any recommendations to improve the local governmental entity's financial management. There were no such matters discovered by, or that came to the attention of, the auditor, to be reported for the fiscal year ended September 30, Noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. There were no such matters discovered by, or that came to the attention of, the auditor, to be reported, for the fiscal year ended September 30, The name or official title and legal authority of the District are disclosed in the notes to the financial statements. 6. The financial report filed with the Florida Department of Financial Services pursuant to Section (1)(a), Florida Statutes agrees with the September 30, 2013 financial audit report. 7. The District has not met one or more of the financial emergency conditions described in Section (1), Florida Statutes. 8. We applied financial condition assessment procedures pursuant to Rule (7) and no deteriorating financial conditions were noted as of September 30, It is management s responsibility to monitor financial condition, and our financial condition assessment was based in part on representations made by management and the review of financial information provided by same. 27

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105 ADDENDUM TO AGREEMENT REGARDING LAKE AND WATERWAY MANAGEMENT SERVICES BY AND BETWEEN BAHIA LAKES COMMUNITY DEVELOPMENT DISTRICT AND AQUATICS SYSTEMS, INC. THIS ADDENDUM TO THE LAKE AND WATERWAY MANAGEMENT SERVICES BY AND BETWEEN BAHIA LAKES COMMMUNITY DEVELOPMENT DISTRICT AND AQUATICS SYSTEMS, INC. (the "Addendum"), is made and entered into effective as of the day of 2014, by and between the Bahia Lakes Community Development District, a local unit of special purpose government established pursuant to Chapter 190, Florida Statutes, located in the Hillsborough County, Florida (the "District"), and Aquatic Systems, Inc., a Florida corporation, (the "Contractor"). WHEREAS, the District was established for the purpose of financing, funding, planning, establishing, acquiring, constructing, or reconstructing, enlarging or extending, equipping, operating, and maintaining systems and facilities for certain infrastructure improvements; and WHEREAS, the District is responsible for the lake and waterway management for certain areas within and around the District; and WHEREAS, the District and the Contractor entered into the Lake and Waterway Management Services agreement dated June 1, 2013 ("Agreement"), incorporated by reference herein; and WHEREAS, the term of the Agreement was originally scheduled to expire on May 31, 2014; and and WHEREAS, the. parties desire to extend the term of the Agreement to May 31, 2015; WHEREAS, the District and Contractor each has the authority to execute this Addendum and to perform its obligations and duties hereunder, and each party has satisfied all conditions precedent to the execution of this Addendum so that this Addendum constitutes a legal and binding obligation of party hereto. Now, Therefore, based upon good and valuable consideration and the mutual covenants of the parties, the receipt of which and sufficiency of which is hereby acknowledged, the District and the Contractor agree follows: 1. The term of the Agreement is hereby extended to May 31, Either party may terminate the Agreement without cause upon thirty (30) days written notice to the other party.

106 2. Except as hereby modified, the terms and conditions of the Agreement are hereby ratified and confirmed. Aquatics Systems, Inc. By: Name: Title: Bahia Lakes Community Development District By: Name: Title:

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108 BAHIA LAKES FIELD INSPECTION REPORT March 10, 2014 Rizzetta & Co., Inc. Tyree Brown Operations Manager RIZZETTA & COMPANY INCORPORATED

109 Summary of Comments on Slide 1 This page contains no comments

110 1 1 Status Landscape Remove the vines growing in the Viburnum around the pool cabana. (1) Remove the weeds in the Ginger bed at the playground. (2) 2 2 Status 3 3 Status Remove the Spanish Moss and Ball Moss from the Live Oaks behind the pool cabana. (3) Remove the dead fronds from the Washingtonia Palms along the back of the pool cabana. (4) 4 4 Status RIZZETTA & COMPANY INCORPORATED 2

111 Page: 2 Number: 1 Author: Nick Subject: Sticky Note Date: 3/25/ :57:30 PM Addressed Vines were removed and were treated with Round Up. Weeds will be targeted heavily in the next few service dates with the recent rains. Number: 2 Author: Nick Subject: Sticky Note Date: 3/25/ :58:26 PM Addressed Similar to item 1, will continue to monitor with weekly visits and target heavily as a result from recent rains. Number: 3 Author: Nick Subject: Sticky Note Date: 3/25/ :59:53 PM Addressed Was removed as much as we could. Moss will always accumulate in trees but foreman was instructed to always remove moss when able. Number: 4 Author: Nick Subject: Sticky Note Date: 3/25/2014 1:00:55 PM Addressed Will continue to trim palms at BMP Standards. Palms look healthy and disease free.

112 Landscape 1 5 Status The mulch needs to be replenished in the beds around the pool cabana. (5) There is damage to the turf at 950 Seminole Sky due to installing a patio. Monitor turf and construction contractor is responsible for cost of repairs. (6) 2 6 Status 3 7 Status Cut back the Oleander to promote thickness and new growth along the pool front. (7) Treat and remove the dollar & broad leaf weeds in the Blue Juniper. (8) 4 8 Status RIZZETTA & COMPANY INCORPORATED 3

113 Page: 3 Number: 1 Author: Nick Subject: Sticky Note Date: 3/25/2014 1:04:17 PM Proposal was issued last week within Weekly Update along with all pending proposals for the community. Number: 2 Author: Nick Subject: Sticky Note Date: 3/25/2014 1:02:53 PM turf damage has been made aware to Board and also noted in Weekly Update for property. Number: 3 Author: Nick Subject: Sticky Note Date: 3/25/2014 1:03:26 PM Oleander will be cut back following the blooming period as requested by Board President. Number: 4 Author: Nick Subject: Sticky Note Date: 3/25/2014 1:04:06 PM Addressed and treated Will continue to monitor beds property wide.

114 Landscape 1 9 Status Cut back and fertilize the Knock-out Roses around the pool cabana. (9) 2 10 Status The bed needs to be re-dressed and mulch where the Royal Poinciana tree was removed across from 813 Seminole Sky. (10) 3 11 Status Trim back the Brazilian Pepper encroaching over the fence along the trail at Yale Castle cul-de-sac. (11) RIZZETTA & COMPANY INCORPORATED 4

115 Page: 4 Number: 1 Author: Nick Subject: Sticky Note Date: 3/25/2014 1:05:17 PM Addressed Six KO Roses were also replaced at no cost to the community. Number: 2 Author: Nick Subject: Sticky Note Date: 3/25/2014 1:06:28 PM Along with mulching the entire property, the proposal has been issued for mulch. I will have crew mulch this area where resident removed tree at no cost. Number: 3 Author: Nick Subject: Sticky Note Date: 3/25/2014 1:07:12 PM Addressed Will continue to monitor this wall for overgrowth with weekly services.

116 Landscape 1 12 Status Treat the weeds along the community trail. (12-13) 13 RIZZETTA & COMPANY INCORPORATED 5

117 Page: 5 Number: 1 Author: Nick Subject: Sticky Note Date: 3/25/2014 1:09:14 PM Will treat nature trail in phases with our weekly visits. Will be constantly addressed and monitored with each weekly visit especially after recent rains. Response applies to both Items 12 and 13.

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119 Bahia Lakes CDD Quality Control 3/27/2014 Greg Cox Rizzetta & Company 3434 Colwell Ave, Suite 200 Tampa, FL Josh Kauffman, Account Representative Sun City Field Office

120 Bahia Lakes CDD 3/27/ Site looks good There was no algae, and almost no shoreline weeds observed. 1 Site looks good Pond 1 is also in great shape with only sparse shoreline vegetation to report.

121 Bahia Lakes CDD 3/27/ Site looks good There was a very small amount of filamentous algae within the bulrush which will be monitored and treated as necessary. 2 Site looks good After the removal of invasive trees along the shore, homeowners have gained a beautiful view of the lake. No shoreline weeds or algae were observed.

122 Bahia Lakes CDD 3/27/ A few shoreline weeds were observed, but otherwise the pond is in excellent condition. 6 Site looks good Site looks good There was a tiny amount of algae scattered around the pond perimeter (see photo at bottom right) which will be monitored and treated as necessary.

123 Bahia Lakes CDD 3/27/2014 The waterways of Bahia Lakes are in beautiful condition. The diligence of our technician has minimized the growth of shoreline weeds and algae in all of the ponds. The removal of invasive trees around lake 2 has opened up a beautiful view of the water for the homeowners along the jogging path. On all ponds, the warm rainy weather over the past few months has helped the native plants like bulrush, duck potato, and pickerelweed fill in nicely around pond perimeters. A supplemental aquatic planting is scheduled in late April. ASI will be planting the perimeter of Lake 6 as well as the littoral shelf of Lake 5. Our regular treatments are scheduled for the second week of each month. During each scheduled visit, all 6 Lakes will be treated for algae blooms as well as submersed, emergent and floating weeds. If an issue comes up in between scheduled visits, then a request for service (RFS) can be submitted ( ) and ASI will respond onsite within 24 hours to treat. Our technician will continue to remain vigilant for any new algae and shoreline weed growth, and will treat as necessary to keep the lakes looking great. Algae control is always a concern with many communities. It is very noticeable and unsightly. Treating the Algae with an Algaecide works, but it does not get to the root of the problem. ASI recommends performing a Lake Assessment to accurately measure the nutrient levels in the Lake. The results of the assessment will allow ASI to establish an effective program to help reduce the nutrient levels. This bottom up approach will increase the overall health of the Lake.

124 Bahia Lakes CDD 3/27/2014