HERITAGE ISLES. Community Development District. Annual Operating and Debt Service Budget. Fiscal Year PDF Free Download

Version 5.0 - Final Budget: (Adopted on 8/24/16) Prepared by:

Table of Contents OPERATING BUDGET Page # General Fund Summary of Revenues, Expenditures and Changes in Fund Balances 1-2 Exhibit A - Allocation of Fund Balances 3 Budget Narrative 4-7 OPERATING BUDGET Special Revenue Fund Summary of Revenues, Expenditures and Changes in Fund Balances 8-9 Exhibit B - Allocation of Fund Balances 10 Budget Narrative 11-14 DEBT SERVICE BUDGETS Series 2008 Summary of Revenues, Expenditures and Changes in Fund Balances 15 Amortization Schedule 16 OPERATING BUDGET Golf Fund Summary of Revenues, Expenditures and Changes in Fund Balances 17-19 Amortization Schedule 20 Budget Narrative 21-25 OPERATING BUDGET Restaurant Fund Summary of Revenues, Expenditures and Changes in Fund Balances 26-27 Budget Narrative 28-29 SUPPORTING BUDGET SCHEDULES 2017-2016 Non-Ad Valorem Assessment Summary 30

Heritage Isles Operating Budget

General Fund Summary of Revenues, Expenditures and Changes in Fund Balances Adopted Budget ADOPTED ACTUAL PROJECTED TOTAL ANNUAL ACTUAL ACTUAL BUDGET THRU AUG - PROJECTED BUDGET ACCOUNT DESCRIPTION FY 2014 FY 2015 FY 2016 JUL-2016 SEP-2016 FY 2016 FY 2017 REVENUES Interest - Investments $ 1,550 $ 1,418 $ 1,700 $ 461 $ 100 $ 561 $ 425 Interest - Tax Collector 48 42-215 - 215 - Special Assmnts- Tax Collector 843,144 843,144 843,145 843,145-843,145 843,145 Special Assmnts- Discounts (30,294) (30,031) (33,726) (30,504) - (30,504) (33,726) Other Miscellaneous Revenues - 169-4,150-4,150 - TOTAL REVENUES 814,448 814,742 811,119 817,467 100 817,567 809,844 EXPENDITURES Administrative P/R-Board of Supervisors 22,600 21,800 24,000 13,600 6,000 19,600 24,000 Payroll-Processing Fee 2,160 2,591 2,520 2,341 470 2,811 2,820 FICA Taxes 1,734 1,668 1,836 1,040 459 1,499 1,836 Workers' Compensation 585 627 686 325 138 463 552 ProfServ-Engineering 521 10,846 10,000 5,029 1,006 6,035 10,000 ProfServ-Legal Services 18,092 11,965 20,000 7,260 1,452 8,712 9,000 ProfServ-Mgmt Consulting Serv 51,000 51,000 52,530 34,775 6,755 41,530 52,530 ProfServ-Property Appraiser 15,178 15,384 16,863 - - - - ProfServ-Recording Secretary 750 125 1,125 375-375 1,125 ProfServ-Special Assessment 9,991 9,991 10,291 10,291-10,291 10,291 ProfServ-Trustee Fees 2,400 2,640 2,640 2,640-2,640 2,640 Auditing Services 14,000 14,000 14,000 14,000-14,000 14,000 Communication - Telephone 6 - - - - - - Postage and Freight 2,502 3,091 3,000 1,718 1,282 3,000 3,000 Insurance - General Liability 7,397 7,439 8,556 5,323 976 6,299 6,929 Printing and Binding 2,814 3,228 4,000 1,614 667 2,281 3,500 Legal Advertising 1,049 1,041 2,500 330 417 747 1,700 Miscellaneous Services 803 826 800 845 130 975 990 Misc-Assessmnt Collection Cost 6,915 7,542 16,863 16,253 610 16,863 16,863 Office Supplies 48-200 - 33 33 125 Annual District Filing Fee 175 175 175 175-175 175 Total Administrative 160,720 165,979 192,585 117,934 20,394 138,328 162,076 Field ProfServ-Field Management 43,867 41,306 40,225 30,047 8,946 38,993 43,000 Contracts-Guard Services 106,561 103,184 110,000 78,388 18,334 96,722 102,000 Contracts-Security Camera 4,667 4,667 4,667 3,890 778 4,668 4,668 Contracts-Landscape 140,742 138,806 219,000 134,756 26,951 161,707 161,708 Contracts-Landscape Consultant 12,360 12,360 12,360 10,650 2,160 12,810 12,960 Contracts-Aquatic Control 10,766 10,471 10,471 8,726 1,745 10,471 10,471 Communication - Telephone 1,034 1,321 1,100 1,585 320 1,905 1,920 Utility - General 167,311 162,384 170,000 134,774 26,955 161,729 165,000 R&M-General 3,025 14,967 10,000 3,203 1,667 4,870 6,500 R&M-Gatehouse 2,872 2,639 3,711 4,504 448 4,952 2,691 R&M-Irrigation 8,330 7,132 10,000 6,431 1,667 8,098 10,000 1

Exhibit "A" Allocation of Fund Balances AVAILABLE FUNDS Amount Beginning Fund Balance - $ 1,266,080 Net Change in Fund Balance - - Reserves - Additions - Total Funds Available (Estimated) - 9/30/2017 1,266,080 ALLOCATION OF AVAILABLE FUNDS Nonspendable Fund Balance Deposits 38,190 (1) Assigned Fund Balance Subtotal 38,190 Operating Reserve - First Quarter Operating Capital 202,461 (2) Reserves-Drainage 110,000 Adj to FY 2017 budgeted reserve allocation (110,000) Reserves-Drainage (FY 2017) - - Reserves-Gatehouse/Equipment 27,544 Adj to FY 2017 budgeted reserve allocation (27,544) Reserves-Gatehouse/Equipment (FY 2017) - - Reserves-Irrigation/Landscape 110,000 Adj to FY 2017 budgeted reserve allocation (110,000) Reserves-Irrigation/Landscape (FY 2017) - - Reserves-Parking Lots/Courts 10,000 Adj to FY 2017 budgeted reserve allocation (10,000) Reserves-Parking Lots/Courts (FY 2017) - - Reserves-Ponds 110,000 Adj to FY 2017 budgeted reserve allocation (110,000) Reserves-Ponds (FY 2017) - - Subtotal 202,461 Total Allocation of Available Funds 240,651 Total Unassigned (undesignated) Cash $ 1,025,429 Notes (1) Deposits with TECO and City of Tampa Police. (2) Represents approximately 3 months of operating expenditures (3) Assigned at board meeting on 10/28/15 (4) Represents FY 2017 proposed budgeted reserves. (3) (4) (3) (4) (3) (4) (3) (4) (3) (4) 3

General Fund Budget Narrative REVENUES Interest-Investments The District earns interest on the monthly average collected balance for their operating accounts. Special Assessments-Tax Collector The District will levy a Non-Ad Valorem assessment on all the assessable property within the District in order to pay for the operating expenditures during the Fiscal Year. Special Assessments-Discounts Per Section 197.162, Florida Statutes, discounts are allowed for early payment of assessments. The budgeted amount for the fiscal year is calculated at 4% of the anticipated Non-Ad Valorem assessments. EXPENDITURES Administrative P/R Board of Supervisor Salaries Chapter 190 of the Florida Statutes allows for a member of the Board of Supervisors to be compensated for a meeting attendance and to receive $200 per meeting. The amount for the Fiscal Year is based on 5 Board members paid for attending 24 meetings. Payroll-Processing Fee ADP provides payroll processing services. FICA Taxes Payroll taxes for supervisor salaries as processed by ADP. Workers Compensation Workers compensation premium for board members paid through ADP. Professional Services-Engineering The District's engineer provides general engineering services to the District, i.e. attendance and preparation for monthly board meetings when requested, review of invoices, and other specifically requested assignments. Professional Services-Legal Services The District s Attorney, Straley and Robin, provides general legal services to the District, i.e., attendance and preparation for monthly Board meetings, review of contracts, review of agreements and other research assigned as directed by the Board of Supervisors and the District Manager. Professional Services-Management Consulting Services The District receives Management, Accounting and Administrative services as part of a Management Agreement with Severn Trent Environmental Services, Inc. Professional Services-Recording Services The District may incur additional costs for recording services if additional services are requested by the board. The cost for additional minute transcriptions is $125 per service as per the supplemental agreement. 4

General Fund Budget Narrative EXPENDITURES Administrative (continued) Professional Services-Special Assessment Severn Trent provides Assessment Services for all the properties within the CDD for the General Fund, Series 2008 Debt Service Fund and Recreational Operations Fund. These services include, but are not limited to: Working with the Hillsborough County Property Appraiser to insure the accuracy of the data they provide each year for levying purposes. Preparation, maintenance and certification of the District s annual assessment roll to the Hillsborough County Tax Collector. Customer service which includes answering questions regarding annual assessments, what a CDD is, length and terms of the bonds, etc. Preparation of estoppels for refinancing and property transfers. Processing and transmission of pay downs to the Trustee for those property owners wishing to prepay their CDD debt. Analysis and supplemental schedules requested throughout the fiscal year as well assessment schedules included in the annual budget preparation. Professional Services-Trustee The District issued this Series 2008 bonds that are deposited with a Trustee to handle all trustee matters. The annual trustee fee is based on standard fees charged plus any out-of-pocket expenses. Auditing Services The District is required to conduct an annual audit of its financial records by an Independent Certified Public Accounting Firm. The budgeted amount for the fiscal year is based on the prior year engagement. Postage and Freight Actual postage and/or freight used for District mailings including agenda packages, vendor checks and other correspondence. The budgeted amount for the fiscal year is based on prior years spending. Insurance-General Liability The District has a general liability, public officials and employment liability and property insurance policy with Public Risk Insurance. The utility bond was purchased thru Florida Municipal Insurance Trust. The FY 2017 budget includes an estimated 10% increase of projected FY 2016 costs. Printing and Binding Copies used in the preparation of agenda packages, required mailings, and other special projects. Legal Advertising The District is required to advertise various notices for monthly Board meetings and other public hearings in a newspaper of general circulation. Meetings are advertised annually. The budgeted amount for the fiscal year is based on anticipated spending. Miscellaneous Services This includes monthly bank charges and any other miscellaneous expenses that may be incurred during the year. 5

General Fund Budget Narrative EXPENDITURES Administrative (continued) Miscellaneous-Assessment Collection Fee The District reimburses the Tax Collector for her or his necessary administrative costs. Per the Florida Statutes, administrative costs shall include, but not be limited to, those costs associated with personnel, forms, supplies, data processing, computer equipment, postage, and programming. The District also compensates the Tax Collector for the actual cost of collection or 2% on the amount of special assessments collected and remitted, whichever is greater. The FY2017 budget for collection costs is based on a maximum of 2% of the anticipated assessment collections. Office Supplies Supplies used in the preparation and binding of agenda packages, required mailings, and other special projects. Annual District Filing Fee The District is required to pay an annual fee of $175 to the Department of Economic Opportunity Division of Community Development. Field Professional Services-Field Management First Service Residential provides onsite management services for the recreational facilities. Mr. Browne s salary, bonus and health insurance expenditures are split equally between the general fund and special revenue fund. Contracts-Guard Services Security services are provided by the City of Tampa Police. Contracts-Security Camera The District has contracted with Tyco for security gate camera services at a cost of $388.95/month. Contracts-Landscape Landscape Maintenance currently provides landscape services for the District. These services include monthly grounds maintenance, mulch and seasonal landscape maintenance services. Contracts-Landscape Consultant OLM provides landscape consulting services for the District. Contracts-Aquatic Services Lake Masters provides aquatic maintenance services throughout the District. Communication-Telephone Telephone services provided by T-Mobile (rover s and maintenance cell). Utility-General The District uses both TECO and City of Tampa as utility service providers. R&M-General Routine expenditures to maintain the District s grounds. 6

General Fund Budget Narrative EXPENDITURES Field (continued) R&M-Gatehouse Costs associated with gate and gatehouse maintenance. This includes Bright House services plus incidentals. R&M-Irrigation Expenditures incurred to maintain the irrigation system throughout the District. R&M-Landscape Renovations This line item includes all other landscaping costs not budgeted for within another line item. R&M-Mitigation Breedlove provides wetland mitigation services for the District. R&M-Mulch The District may incur costs associated with the purchase and installation of mulch. R&M-Ponds This includes repair and maintenance of the ponds as needed throughout the District. R&M-Sod Expenditures incurred to maintain the sod within the common area. Miscellaneous-Holiday Décor Costs associated with seasonal décor. Illuminations Holiday Lighting has provided services in the past. Miscellaneous-Contingency Any expenditure not budgeted within another line item. 7

Fitness Center Special Revenue Fund Summary of Revenues, Expenditures and Changes in Fund Balances Adopted Budget ADOPTED ACTUAL PROJECTED TOTAL ANNUAL ACTUAL ACTUAL BUDGET THRU AUG - PROJECTED BUDGET ACCOUNT DESCRIPTION FY 2014 FY 2015 FY 2016 JUL-2016 SEP-2016 FY 2016 FY 2017 REVENUES Interest - Investments $ 3,922 $ 2,463 $ 2,501 $ 444 $ 89 $ 533 $ 974 Special Assmnts- Tax Collector 795,600 795,600 974,100 974,100-974,100 974,100 Special Assmnts- Discounts (28,586) (28,337) (38,964) (35,242) - (35,242) (38,964) Gate Bar Code/Remotes 2,235 2,382 1,500 1,445 289 1,734 1,500 Pavilion Rental 3,575 3,938 1,500 4,836 967 5,803 2,600 Amenities Revenue 30,492 26,442 31,392 17,857 3,432 21,289 25,000 TOTAL REVENUES 807,238 802,488 972,029 963,440 4,777 968,217 965,210 EXPENDITURES Administrative ProfServ-Legal Services 6,751 6,754 30,000 1,085 1,500 2,585 7,000 ProfServ-Property Appraiser 15,069 15,345 19,482 - - - - Accounting Services 18,540 18,540 19,096 15,913 3,183 19,096 19,096 Communication - Telephone 2,917 5,974 2,496 8,982 1,796 10,778 11,200 Postage and Freight 137 219 400 89 18 107 400 Lease - Copier 1,200 1,649 2,500 1,666 333 1,999 2,200 Insurance - General Liability 16,809 17,874 27,286 18,006 3,602 21,608 23,769 Misc-Bank Charges 391 424 400 277 110 387 400 Misc-Assessmnt Collection Cost 15,069 15,345 19,482 18,777 705 19,482 19,482 Office Supplies 1,206 1,283 2,000 2,564 333 2,897 2,000 Computer Expense 1,312 799 5,000 7,552 833 8,385 5,000 Total Administrative 79,401 84,206 128,142 74,911 12,414 87,325 90,547 Operation & Maintenance Payroll-Maintenance 37,353 21,460 40,000 18,747 3,749 22,496 19,000 Payroll-Office 41,283 40,361 40,000 32,781 6,556 39,337 40,000 Payroll-Pool Monitors 131,658 140,004 125,000 110,837 22,167 133,004 127,000 Payroll-Processing Fee - - - 5,350 1,300 6,650 7,800 ProfServ-Field Management 43,867 41,306 40,225 30,047 8,946 38,993 43,000 Contracts-Pools 25,675 31,600 31,600 22,641 5,800 28,441 31,600 Contracts-Security Alarms 2,794 1,080 360 260 720 980 980 Utility - General 40,089 54,888 50,000 54,441 14,876 69,317 73,000 Utility - Refuse Removal 3,123 3,319 3,240 2,489 554 3,043 3,324 Rental-Fitness Equipment - 18,603 53,400 44,509 8,902 53,411 53,412 R&M-General 19,910 29,357 39,000 53,175-53,175 35,000 R&M-Court Maintenance - - - - - - 30,000 R&M-Pest Control 796 778 804 1,638 304 1,942 1,824 R&M-Pools 12,793 8,416 20,000 54,453 10,891 65,344 7,000 R&M-Fitness Equipment 3,472 1,386 500 1,235-1,235 500 R&M-Lights 8,476 5,151 9,000 6,321 1,264 7,585 4,500 Advertising - - 15,000 - - - 6,000 Miscellaneous Services 1,695 4,336 1,000 2,108-2,108 1,000 Misc-Access Cards - 3,648 3,500 601 583 1,184 3,500 Misc-Holiday Decor 182 73 1,000 135-135 500 8

Fitness Center Special Revenue Fund Summary of Revenues, Expenditures and Changes in Fund Balances Adopted Budget ADOPTED ACTUAL PROJECTED TOTAL ANNUAL ACTUAL ACTUAL BUDGET THRU AUG - PROJECTED BUDGET ACCOUNT DESCRIPTION FY 2014 FY 2015 FY 2016 JUL-2016 SEP-2016 FY 2016 FY 2017 Misc-Rec Center Equipment 1,775 22,575 4,000 - - - 4,000 Misc-Special Events 1,332 1,051 5,000 887 177 1,064 500 Misc-Bad Debt 53 - - - - - - Misc-Licenses & Permits 482 1,106 1,200 599 600 1,199 1,200 Safety Equipment 633 391 1,000 64 936 1,000 1,000 Cleaning Supplies 2,868 4,877 7,000 3,042 608 3,650 8,000 Op Supplies - Clubhouse 5,467 4,348 6,000 6,403 1,281 7,684 - Op Supplies - Uniforms 187 1,097 2,700-1,200 1,200 2,000 Improvements - Building 71,225 - - - - - - Impr-Clubhouse 132,990 - - - - - - Cap Outlay - Signage 29,740 - - - - - 30,000 Capital Outlay 125,222 12,455 75,000 21,655 50,000 71,655 - Cap Outlay - Fitness Center - 1,383,503-14,891-14,891 31,744 Cap Outlay-Clubhouse - 76,594 1,300,000 401,357 967,347 1,368,704 80,000 Operating Loan Repayment - - - - - - 14,750 Total Operation & Maintenance 745,140 1,913,763 1,875,529 890,666 1,108,763 1,999,429 662,134 TOTAL EXPENDITURES 824,541 1,997,969 2,003,671 965,577 1,121,177 2,086,754 752,681 Excess (deficiency) of revenues Over (under) expenditures (17,303) (1,195,481) (1,031,642) (2,137) (1,116,400) (1,118,537) 212,529 OTHER FINANCING SOURCES (USES) Capt'l Contributions-Other 16,000 16,750-14,250-14,250 - Operating Transfers-Out (97,345) (108,119) (109,779) - (109,779) (109,779) (109,525) Contribution to (Use of) Fund Balance - - (1,141,421) - - - 103,005 TOTAL OTHER SOURCES (USES) (81,345) (91,369) (1,251,200) 14,250 (109,779) (95,529) (6,520) Net change in fund balance (98,648) (1,286,850) (1,141,421) 12,113 (1,226,179) (1,214,066) 103,005 FUND BALANCE, BEGINNING 3,072,058 2,973,410 1,686,560 1,686,560-1,686,560 472,494 FUND BALANCE, ENDING $ 2,973,410 $ 1,686,560 $ 545,139 $ 1,698,673 $ (1,226,179) $ 472,494 $ 575,498 9

Fitness Center Special Revenue Fund Exhibit "B" Allocation of Fund Balances AVAILABLE FUNDS Amount Beginning Fund Balance - $ 472,494 Net Change in Fund Balance - 103,005 Reserves - Additions - Total Fund Balance Available to Assign (Estimated) - 9/30/2017 (5) 575,498 ALLOCATION OF AVAILABLE FUNDS Assigned Fund Balance Operating Reserve - First Quarter Operating Capital 188,170 (1) Total Allocation of Available Fund Balance 188,170 Total Unassigned (undesignated) Fund Balance (2) $ 387,328 Notes (1) Represents approximately 3 months of operating expenditures. (2) Assigned fund balance is not representative of cash or liquid investments available for immediate use. Due from other funds of $1.3MM (rounded) is part of fund balance but is not available to cover near term outflows. 10

Fitness Center Special Revenue Fund Budget Narrative REVENUES Interest-Investments The District earns interest income on available operating funds. Special Assessments-Tax Collector The District will levy a Non-Ad Valorem assessment for the fitness facility on all the assessable property within the District in order to pay for the operating expenditures during the Fiscal Year. Special Assessments-Discounts Per Section 197.162, Florida Statutes, discounts are allowed for early payment of assessments. The budgeted amount for the fiscal year is calculated at 4% of the anticipated Non-Ad Valorem assessments. Gate Bar Code/Remotes The District charges a fee for each gate remote issued. Pavilion Rental The District charges a fee for the rental of the pavilion for various events. Amenities Revenue Currently the district receives $1,716/month from Protential Sports. The balance of this budgeted line item represents a contingency. EXPENDITURES Administrative Professional Services-Legal Services The District s Attorney, Straley and Robin, provides general legal services to the District. The cost associated with legal services for matters pertaining to the special revenue fund may be recorded here. Legal expenditures have been allocated across all funds (excluding Debt Service). Accounting Services The District receives accounting services provided by Severn Trent Management Services, including but not limited to accounts payable, bank reconciliations, account analysis, financial statement preparation, annual budget preparation, and audit assistance. Communication-Telephone The district has multiple phone lines with services including nationwide long distance, IP addresses and modems and receives services at the clubhouse and fitness center buildings. Costs associated with the Community Manager s cell phone are also recorded here. Postage & Freight Mailing of overnight deliveries, correspondence, invoices etc. Lease-Copier This line item includes the copier lease payments made Leaf. Maintenance and additional copy costs are also recorded here. Occasional use of the copier by the golf and restaurant are reimbursed on a per use basis. Insurance-General Liability The District has general liability, professional officer liability, property, crime and flood insurance. The portion allocated to this line item is for the clubhouse and fitness center facility s portion only. 11

Fitness Center Special Revenue Fund Budget Narrative EXPENDITURES Administrative (continued) Miscellaneous-Bank Charges Monthly bank fees and ancillary charges. Miscellaneous-Assessment Collection Fee The District reimburses the Tax Collector for her or his necessary administrative costs. Per the Florida Statutes, administrative costs shall include, but not be limited to, those costs associated with personnel, forms, supplies, data processing, computer equipment, postage, and programming. The District also compensates the Tax Collector for the actual cost of collection or 2% on the amount of special assessments collected and remitted, whichever is greater. The FY2017 budget for collection costs is based on a maximum of 2% of the anticipated assessment collections. Office Supplies The cost associated with purchasing various office supplies necessary for fitness facility operations. Computer Expenses The District expects to incur costs to repair and maintain their computer equipment and update software. Operating and Maintenance Payroll-Maintenance Payroll for district maintenance personnel services is processed by ADP. Payroll-Office First Service Residential provides Administrative personnel services. Payroll-Pool Monitors Payroll for district pool monitor personnel services is processed by ADP. Payroll-Processing Fee ADP provides payroll processing for the District s maintenance and pool monitor personnel. Professional Services-Field Management First Service Residential provides onsite management services for the recreational facilities. expenditures are split equally between the general fund and special revenue fund. Mr. Browne s salary Contracts-Pools Finley Pools provides routine repair and maintenance services for the District s pool ($2,100 Nov-Feb, $2,900 Mar-Oct). Contracts-Security Alarms BCI provides clubhouse and fitness center monitoring at an annual cost of $680. Fire alarm services are provided by Piper at an estimated annual cost of $300. Utility-General Services provided by City of Tampa and Tampa Electric. Utility-Refuse Removal Waste Management provides refuse removal services. Rental-Fitness Equipment The district is leasing fitness equipment for the new fitness center at a cost of $4,451/month. 12

Fitness Center Special Revenue Fund Budget Narrative EXPENDITURES Operating and Maintenance (continued) R&M-General Various costs, to operate the district s facilities within the special revenue fund, not specific to another budgeted line item. R&M-Court Maintenance Estimated cost to repair and maintain the tennis and basketball courts within the District. R&M-Pest Control Truly Nolen of America is currently providing pest control services for the community and fitness center buildings. R&M-Pool Incidental pool repair and maintenance and ADA compliance requirements. R&M-Fitness Equipment Fitness Logic provides repair and maintenance services for the District s fitness equipment as needed. R&M-Lights Costs to repair various lights within the clubhouse and recreational facilities. Advertising Realtor advertising for the grand opening of the clubhouse. Miscellaneous Services Miscellaneous costs not included within another budgeted line item. Miscellaneous-Access Cards The District purchases gate access cards for residents which are distributed for a small fee. Miscellaneous-Holiday Décor Costs associated with Holiday decorations. Miscellaneous-Rec Center Equipment Costs to maintain fitness center equipment. Miscellaneous-Special Events The District occasionally holds special events for the community. Miscellaneous-License and Permits The licenses and permits required for the District are expected to cost $275 for the pool, $150 for children s water activity and $55 for a portion of the annual music license fees paid to Sesac. This line item includes a contingency. Safety Equipment Safety equipment for clubhouse maintenance. Cleaning Supplies This line item captures costs associated with the purchase of cleaning supplies for the clubhouse and recreational amenities. Op Supplies-Uniforms Uniform purchases. 13

Fitness Center Special Revenue Fund Budget Narrative EXPENDITURES Operating and Maintenance (continued) Capital Outlay-Signage The district anticipates purchasing new monuments. Capital Outlay-Fitness Center Capital costs associated with the new fitness center. Capital Outlay-Clubhouse Costs associated with the clubhouse renovation. Operating Loan Repayment Interest on loan from Jefferson Bank. Other Financing Uses Operating Transfer Out This amount represents a portion deemed reasonable to transfer to the enterprise fund as support for operations and maintenance of the enterprise fund. This portion is estimated as 10% of golf course operating expenses and is to be considered resident contributions. 14

Heritage Isles Debt Service Budgets

2008 Debt Service Fund Summary of Revenues, Expenditures and Changes in Fund Balances Adopted Budget ADOPTED ACTUAL PROJECTED TOTAL ANNUAL ACTUAL ACTUAL BUDGET THRU AUG - PROJECTED BUDGET ACCOUNT DESCRIPTION FY 2014 FY 2015 FY 2016 JUL-2016 SEP-2016 FY 2016 FY 2017 REVENUES Interest - Investments $ - $ - $ - $ 238 $ - $ 238 $ - Special Assmnts- Tax Collector 368,923 368,924 368,924 368,924-368,924 368,924 Special Assmnts- Discounts (13,255) (13,140) (14,757) (13,347) - (13,347) (14,757) TOTAL REVENUES 355,668 355,784 354,167 355,815-355,815 354,167 EXPENDITURES Administrative ProfServ-Property Appraiser 6,988 7,116 7,378 - - - - Misc-Assessmnt Collection Cost 6,988 7,116 7,378 7,112 266 7,378 7,378 Total Administrative 13,976 14,232 14,756 7,112 266 7,378 7,378 Debt Service Principal Debt Retirement 250,000 260,000 275,000 275,000-275,000 285,000 Interest Expense 94,436 82,661 70,415 70,415-70,415 57,462 Total Debt Service 344,436 342,661 345,415 345,415-345,415 342,462 TOTAL EXPENDITURES 358,412 356,893 360,171 352,527 266 352,793 349,840 Excess (deficiency) of revenues Over (under) expenditures (2,744) (1,109) (6,004) 3,288 (266) 3,022 4,326 OTHER FINANCING SOURCES (USES) Contribution to (Use of) Fund Balance - - (6,004) - - - 4,326 TOTAL OTHER SOURCES (USES) - - (6,004) - - - 4,326 Net change in fund balance (2,744) (1,109) (6,004) 3,288 - - 4,326 FUND BALANCE, BEGINNING 186,199 183,455 182,346 182,346-182,346 182,346 FUND BALANCE, ENDING $ 183,455 $ 182,346 $ 176,342 $ 185,634 $ - $ 182,346 $ 186,672 15

2008 Special Assessment Revenue Refunding Bonds Amortization Schedule Year *Principal Special Call Interest Balance Fiscal Total 11/01/16 $28,731 $1,220,000 05/01/17 $285,000 $28,731 $935,000 $342,462 11/01/17 $22,019 $935,000 05/01/18 $300,000 $22,019 $635,000 $344,039 11/01/18 $14,954 $635,000 05/01/19 $315,000 $14,954 $320,000 $344,909 11/01/19 $7,536 $320,000 05/01/20 $320,000 $7,536 $0 $335,072 Totals $1,220,000 $146,481 $1,366,481 *4.710% Interest Rate 16

Enterprise - Golf Course Fund Summary of Revenues, Expenses and Changes in Net Assets Adopted Budget ADOPTED ACTUAL PROJECTED TOTAL ANNUAL ACTUAL ACTUAL BUDGET THRU AUG - PROJECTED BUDGET ACCOUNT DESCRIPTION FY 2014 FY 2015 FY 2016 JUL-2016 SEP-2016 FY 2016 FY 2017 OPERATING REVENUES Interest - Investments $ 169 $ 68 $ 102 $ 43 $ 9 $ 52 $ 70 Green Fees 214,547 225,511 235,000 177,133 65,713 242,846 245,000 Cart Fees 481,806 511,334 545,000 444,642 82,058 526,700 580,000 Club Rentals 3,240 2,590 3,000 2,830 10 2,840 3,000 Range Balls 63,664 65,179 65,000 50,252 15,102 65,354 62,000 Golf Service 7,200 7,420 7,200 350-350 - Lessons 3,659 8,362 4,000 3,975-3,975 - Golf Merchandise 70,646 79,656 84,000 56,088 15,000 71,088 70,000 Food 5,343 5,292 5,000 5,020 750 5,770 5,300 Tobacco 1,848 1,718 1,500 1,200 458 1,658 1,700 Special Events 9,666 13,732 15,000 17,782-17,782 21,000 Other Miscellaneous Revenues 3,022 3,248 1,000 4,285-4,285 1,400 Recreation Membership 40,572 45,276 40,000 40,780-40,780 62,000 TOTAL OPERATING REVENUES 905,382 969,386 1,005,802 804,380 179,100 983,480 1,051,470 COST OF GOODS SOLD COS - Food Sales 2,076 3,056 2,900 3,326 665 3,991 3,000 COS - Merchandise 61,381 53,742 65,000 47,206 2,794 50,000 45,000 COS - Tobacco 953 1,336 2,000 825 165 990 1,300 Total Cost of Goods Sold 64,410 58,134 69,900 51,357 3,624 54,981 49,300 GROSS PROFIT 840,972 911,252 935,902 753,023 175,475 928,498 1,002,170 OPERATING EXPENSES Personnel and Administration ProfServ-Arbitrage Rebate 300 300 300-300 300 300 ProfServ-Dissemination Agent 500 500 500 500-500 500 ProfServ-Legal Services 3,327 1,345 4,000-2,000 2,000 2,000 ProfServ-Trustee Fees - - 2,600 - - - 2,600 Accounting Services 21,200 21,200 21,836 18,197 3,639 21,836 21,836 Insurance - General Liability 18,490 18,040 20,746 14,904 2,981 17,885 19,673 Printing and Binding 645 496 500 222 44 266 200 Misc-Bank Charges 1,505 1,432 1,500 1,294 259 1,553 1,500 Misc-Credit Card Fees 18,230 19,158 21,000 16,084 3,217 19,301 19,340 Computer Expense 1,105 450 1,500 451 90 541 1,500 Total Personnel and Administration 65,302 62,921 74,482 51,652 12,530 64,182 69,449 Operation & Maintenance Payroll-Salaries 164,149 159,100 165,200 104,969 15,092 120,061 108,100 Payroll-Hourly 287,273 310,860 289,000 249,226 49,845 299,071 305,000 Payroll-Benefits 18,136 7,219 4,028 2,985 343 3,328 2,058 Payroll-Processing Fee 15,265 16,210 16,260 12,966 2,593 15,559 16,500 Payroll Taxes 44,061 52,220 47,736 41,581 6,461 48,042 41,103 Contracts-Aquatic Control 9,742 9,665 9,665 8,054 1,611 9,665 9,665 17

Enterprise - Golf Course Fund Summary of Revenues, Expenses and Changes in Net Assets Adopted Budget ADOPTED ACTUAL PROJECTED TOTAL ANNUAL ACTUAL ACTUAL BUDGET THRU AUG - PROJECTED BUDGET ACCOUNT DESCRIPTION FY 2014 FY 2015 FY 2016 JUL-2016 SEP-2016 FY 2016 FY 2017 Contracts-Security Alarms 306 385 352 303 61 364 366 Fuel, Gasoline and Oil 23,113 20,223 24,900 13,553 2,711 16,264 23,000 Communication - Telephone 10,203 9,571 10,325 6,315 1,263 7,578 10,000 Utility - General 3,848 6,199 3,000 5,155 1,031 6,186 6,000 Electricity - General 38,086 41,083 39,450 29,996 9,004 39,000 39,000 Utility - Refuse Removal 3,114 5,315 3,240 4,201 840 5,041 5,700 Lease - Carts 66,442 69,489 69,160 57,787 10,740 68,527 68,540 Lease - Golf Course Equipment 735 7,234 36,552 31,944 6,092 38,036 48,552 Lease - Ice Machines 2,772 3,631 4,404 3,670 734 4,404 4,404 R&M-General 11,395 10,703 12,000 3,989 8,011 12,000 12,000 R&M-Buildings 343 5,292 1,000 1,951 390 2,341 4,000 R&M-Equipment 37,789 48,412 25,000 28,994 1,755 30,749 30,000 R&M-Fertilizer 55,470 53,772 60,000 51,581 1,175 52,756 49,000 R&M-Irrigation 17,192 7,205 10,000 3,364 1,667 5,031 10,000 R&M-Pest Control 796 775 804 661 132 793 792 R&M-Signage 1,058-2,000-500 500 2,000 R&M-Trees and Trimming 1,985 350 2,000 400 1,000 1,400 2,000 R&M-Golf Course 1,702 3,869 14,000 3,469 4,531 8,000 8,000 R&M-Golf Cart - - 1,000 565-565 1,000 R&M-Bunkers 1,470 3,367 10,000 8,250 1,750 10,000 10,000 R&M - Bridges & Cart Paths 2,135 163 8,000 2,464 5,536 8,000 8,000 R&M-Sod 7,500-1,000 5,390 30,000 35,390 45,563 Marketing 20,563 18,060 15,000 7,745 1,549 9,294 12,000 Misc-Bad Debt 37 - - 1,065-1,065 - Misc-Licenses & Permits 990 1,001 1,065 889 176 1,065 1,315 Office Supplies 1,843 2,471 2,000 1,137 227 1,364 1,500 Cleaning Supplies 925 1,096 845 1,053 211 1,264 1,500 Op Supplies - Uniforms 3,625 945 2,000 1,035 2,000 3,035 2,000 Op Supplies - Chemicals 85,793 76,169 55,000 63,903 12,000 75,903 64,000 Op Supplies - Hand tools 1,502 1,550 1,000 1,165-1,165 1,000 Supplies - Golf Operations 1,761 1,634 500 3,656 731 4,387 5,000 Supplies - Grounds 3,621 4,996 3,000 5,138 1,028 6,166 5,600 Supplies - Range 7,140 8,658 3,500-7,000 7,000 7,000 Supplies - Sand 2,292 2,594 7,000 3,137 3,863 7,000 7,000 Supplies - Seeds 18,688 18,076 18,100 18,292-18,292 3,000 Supplies - Power Tools 1,624 1,206 1,500 536 1,500 2,036 1,500 Subscriptions and Memberships 1,153 1,493 1,500 1,096-1,096 1,000 Depreciation Expense 274,494 151,895 - - - - - Total Operation & Maintenance 1,252,131 1,144,156 982,086 793,630 195,153 988,783 983,759 Debt Service Principal Debt Retirement - - 22,500 - - - 25,000 Interest Expense 32,389 18,727 18,726 8,964-8,964 17,040 DS Costs-Miscellaneous 995 - - - - - - Total Debt Service 33,384 18,727 41,226 8,964-8,964 42,040 18

1999 Recreational Revenue Bond Amortization Schedule Year *Principal Interest Balance Annual Total 10/01/16 $50,000 $17,928 $455,000 $85,855 04/01/17 $16,153 $455,000 10/01/17 $50,000 $16,153 $405,000 $82,305 04/01/18 $14,378 $405,000 10/01/18 $55,000 $14,378 $350,000 $83,755 04/01/19 $12,425 $350,000 10/01/19 $60,000 $12,425 $290,000 $84,850 04/01/20 $10,295 $290,000 10/01/20 $65,000 $10,295 $225,000 $85,590 04/01/21 $7,988 $225,000 10/01/21 $70,000 $7,988 $155,000 $85,975 04/01/22 $5,503 $155,000 10/01/22 $75,000 $5,503 $80,000 $86,005 04/01/23 $2,840 $80,000 10/01/23 $80,000 $2,840 $0 $85,680 Totals $505,000 $157,088 $680,015 * 7.1% Coupon 20

Golf Fund Budget Narrative REVENUES Interest-Investments The District earns interest on available operating funds. Green Fees Revenue received for golf rounds played. Cart Fees Revenue received for golf cart rentals. Club Rentals Revenue received for the rental of golf clubs. Range Balls Revenue received for the rental of range balls for practice (sold per bucket). Golf Merchandise The District sells various golf merchandise in the pro shop. Food This represents food and non-alcoholic revenues from snacks sold at the pro shop. Tobacco The District sells tobacco in the pro shop. Special Events The District holds various golf tournaments and events. The revenue associated with these events is recorded here. Other Miscellaneous Revenue Other revenues not included within another budgeted revenue line item. Recreation Membership Revenue received for seasonal pass sales. COST OF GOODS SOLD COS-Food Sales The cost to purchase food from restaurant lessee for resale at the pro shop. COS-Merchandise The cost to purchase merchandise for resale at the pro shop. COS-Tobacco The cost to purchase tobacco for resale at the pro shop. 21

Golf Fund Budget Narrative EXPENSES Personnel and Administration Professional Services-Arbitrage Per the bond indenture, the district is required to have an arbitrage rebate calculation performed on their series 1999 recreational revenue bond. This cost is split with the restaurant. Professional Services-Dissemination The District expects to incur costs associated with dissemination services for the series 1999 bond. This cost is split with the restaurant. Professional Services-Legal Services The District s Attorney, Straley and Robin, provides general legal services to the District. Costs for matter services pertaining to the golf course may be recorded here. Legal expenditures have been allocated across all funds (excluding Debt Service). Professional Services-Trustee Trustee services associated with the series 1999 bond. This cost is split with the restaurant. Accounting Services The District receives accounting services provided by Severn Trent Management Services, including but not limited to accounts payable, bank reconciliations, account analysis, financial statement preparation, annual budget preparation, and audit assistance. Insurance-General Liability The District has general liability, property, inland marine, flood, crime, employee dishonesty and public officials liability. The portion allocated to this line item is for the golf. Printing and Binding Copy costs reimbursed to special revenue fund on a per use basis. Miscellaneous-Bank Charges SunTrust charges the district monthly bank fees. Miscellaneous-Credit Card Fees The District allows customers to pay using credit cards as a means to purchase services or products. The District incurs a fee from the credit card companies for this service. Computer Expense There is an occasional need to request computer related services. The cost for these services will be recorded here. Operation and Maintenance Payroll-Salaried Robert Cunningham serves as Director of Golf and Don Cox is head of maintenance. Payroll-Hourly This line item includes various part time staff. Payroll-Benefits MetLife dental, AD&D and life insurance for two employees. 22

Golf Fund Budget Narrative EXPENSES Operation and Maintenance (continued) Payroll-Processing Fee ADP charges a fee for processing payroll. This fee is based in part on the number of active employees within the billing period. Payroll-Taxes These costs include FICA 6.2%, Medicare 1.45% and Workers Comp. Contracts-Aquatic Control Lake Masters currently provides aquatic services for the District s golf course at a cost of $805.44/month. Contracts-Security Alarms Alarm monitoring for the maintenance building. Fuel, Gasoline and Oil Fuel is purchased as needed for operations throughout the golf course. Communication-Telephone Communication services are provided by Bright House and Frontier. Utility-General Water and sewer services are provided by City of Tampa. Electricity-General Electricity services are provided by TECO. Utility-Refuse Removal Waste Management provides refuse removal services to the golf course. Lease-Carts Yamaha leases golf carts to the District. Lease-Golf Course Equipment The district anticipates leasing golf course maintenance equipment. Lease-Ice Machines S&W leases ice machines at the cart ($272/month) and maintenance building ($95/month). R&M-General This line item will capture general repair and maintenance costs throughout the golf course facility. R&M-Buildings Repair and maintenance of the maintenance building. R&M-Equipment The cost of replacing and maintaining major golf course equipment. R&M-Fertilizer The District will purchase fertilizer for the golf facilities. R&M-Irrigation This line item represents various irrigation repairs throughout the golf course. 23

Golf Fund Budget Narrative EXPENSES Operation and Maintenance (continued) R&M-Pest Control Truly Nolen of America is currently providing pest control services. R&M-Signage Various cost associated with the repair and maintenance of signage throughout the golf course. R&M-Trees and Trimming The cost of replacing and maintaining trees and shrubs throughout the golf course. R&M-Golf Course This line item will capture general repair, maintenance and beautification costs throughout the golf course. R&M-Golf Cart Costs associated with the repair and maintenance of the golf carts. R&M-Bunkers The cost to purchase sand, repair and maintain bunkers throughout the golf course. R&M-Bridges and Cart Paths Repair and maintenance of the bridges and cart paths throughout the golf course. R&M-Sod Replacement of sod throughout the year. Marketing Costs associated with marketing of the golf course. In prior years, the district held ad campaigns with various firms including Dunndeal Publications, Golf Coast Enterprises, Tee Times USA and Golf Pac. Miscellaneous-Licenses & Permits Includes business tax (formerly operation license), Fore POS software licensing, Sesac music license (portion) and a contingency. Office Supplies This line item includes the cost of office supplies required to operate the golf course office. Cleaning Supplies This line item includes the cost of any supplies used to clean the golf course facilities. Op Supplies-Uniforms Uniform services. Op Supplies-Chemicals Costs for chemicals required for operation will be recorded here. Op Supplies-Hand Tools This category is to record the purchase of any hand tools needed for the operation and maintenance of the golf course. Supplies-Golf Operations All costs associated with the supplies needed for golf operations. 24

Golf Fund Budget Narrative EXPENSES Operation and Maintenance (continued) Supplies-Grounds All costs associated with the supplies needed to maintain the golf course grounds. Supplies-Range All costs associated with the supplies needed to operate the range including golf balls. Supplies-Sand All sand purchased for the golf course. Supplies-Seeds All seed supply products purchased for the golf course. Supplies-Power Tools All power tool supply products purchased for the golf course. Subscription and Memberships The District expects to obtain and/or maintain subscriptions and memberships. historically included FSGA, USGA and Sam s Club. Vendors for these services have Debt Service Principal Debt Retirement This represents principal payments due within the current year for the series 1999 recreational revenue bond. expense is split with the restaurant. Interest Expense This represents interest payments due within the current year for the series 1999 recreational revenue bond. expense is split with the restaurant. This This Note: Without sufficient revenues to cover operating expenses the district is without means to make the required principal and interest payments. The budget reflects that the debt service payments would have to be made using a portion of prior year s fund balance. Since the prior year s fund balance is negative, there are no funds from the prior year available to use. EXPENSES Other Financing Sources Interfund Transfer In This amount represents a portion deemed reasonable to transfer from the special revenue fund to the enterprise fund as support for operations and maintenance of the enterprise fund. This portion is estimated as 10% of golf course operating expenses and is to be considered resident contributions. 25

Enterprise - Restaurant Fund Summary of Revenues, Expenses and Changes in Net Assets Adopted Budget ADOPTED ACTUAL PROJECTED TOTAL ANNUAL ACTUAL ACTUAL BUDGET THRU AUG - PROJECTED BUDGET ACCOUNT DESCRIPTION FY 2014 FY 2015 FY 2016 JUL-2016 SEP-2016 FY 2016 FY 2017 OPERATING REVENUES Interest - Investments $ - $ - $ - $ - $ - $ - $ - Beverage Cart - Food 774 140 - - - - - Beverage Cart - Beverage 6,284 1,480 - - - - - Beverage 37,097 11,023 - - - - - Food 62,774 14,099 - - - - - Rents or Royalties 14,171 24,188 48,000 10,200-10,200 36,000 Other Miscellaneous Revenues 12,431 17,560 - - - - - TOTAL OPERATING REVENUES 133,531 68,490 48,000 10,200-10,200 36,000 COST OF GOODS SOLD COS - Beverage 21,166 5,731 - - - - - COS - Food Sales 46,578 7,688 - - - - - COS - Merchandise 439 - - - - - - Total Cost of Goods Sold 68,183 13,419 - - - - - GROSS PROFIT 65,348 55,071 48,000 10,200-10,200 36,000 OPERATING EXPENSES Personnel and Administration ProfServ-Arbitrage Rebate 300 300 300-300 300 300 ProfServ-Dissemination Agent 500 500 500 500-500 500 ProfServ-Legal Services 3,969 6,682 4,000 2,565-2,565 3,000 ProfServ-Trustee Fees - - 2,557 - - - - Misc-Credit Card Fees 2,208 1,023 - - - - - Total Personnel and Administration 6,977 8,505 7,357 3,065 300 3,365 3,800 Operation & Maintenance Payroll-Salaries - 15,000 - - - - - Payroll-Hourly 53,353 10,791 - - - - - Payroll-Processing Fee 2,006 385 - - - - - Payroll Taxes 7,332 1,450 - - - - - Communication - Telephone 1,245 1,012 1,320 578 100 678 600 Utility - General 3,848 6,199 4,000 4,961 992 5,953 5,400 Utility - Cable TV Billing 1,081 141 - - - - - Electricity - General 15,485 16,229 16,000 11,200 4,800 16,000 16,000 Lease - Carts - 221 - - - - - Lease - Ice Machines - 55-2,665 680 3,345 4,080 Rentals & Leases - - 53,400 - - - 53,400 Insurance - General Liability 7,010 6,402 7,363 4,293 724 5,017 5,519 R&M-General 13,295 18,958 9,158 15,343 3,069 18,412 15,500 Marketing 935 - - - - - - Promotions 590 340 - - - - - Misc-Special Events 1,800 1,950 - - - - - Misc-Bad Debt 5,429 - - - - - - 26

Restaurant Fund Budget Narrative REVENUES Rents or Royalties The restaurant facility is leased to Hoosiers Grille. EXPENSES Administrative Professional Services-Arbitrage Rebate Per the bond indenture, the district is required to have an arbitrage rebate calculation performed on their series 1999 recreational revenue bond. This cost is split with the golf. Professional Services-Dissemination The District expects to incur costs associated with dissemination services related to the series 1999 recreational revenue bond. This cost is split with the golf. Professional Services-Legal Services The District s Attorney, Straley and Robin, provides general legal services to the District. Costs for matter services pertaining to the restaurant may be recorded here. Legal expenditures have been allocated across all funds (excluding Debt Service). Operation and Maintenance Communication-Telephone Bright House serves as a communications provider. Utility-General Water and sewer services are provided by City of Tampa. Electricity-General Electricity services are provided by TECO. Lease-Ice Machines S&W restaurant ice machine lease $340/month. Rentals & Leases The District may lease restaurant equipment. Insurance-General Liability Allocated insurance costs. R&M-General This line item will capture repair and maintenance costs throughout the restaurant facility. Miscellaneous-Licenses & Permits The cost associated with maintaining the liquor license. Debt Service Principal Debt Retirement This represents principal payments due within the current year for the series 1999 recreational revenue bond. expense is split with the golf. This 28

Restaurant Fund Budget Narrative EXPENSES Debt Service (continued) Interest Expense This represents interest payments due within the current year for the series 1999 recreational revenue bond. expense is split with the golf. This Note: Without sufficient revenues to cover operating expenses the district is without means to make the required principal and interest payments. The budget reflects that the debt service payments would have to be made using a portion of prior year s fund balance. Since the prior year s fund balance is negative, there are no funds from the prior year available to use. 29

Heritage Isles Supporting Budget Schedules

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