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04/09/2013 AgendaNaples Heritage Community Development District By_ Board of Supervisors Peter J. Lombardi, Chairman Calvin Teague, District Manager Peter V. Ramundo, Vice Chairman Gregory L. Urbancic, District Counsel Kenneth R. Gaynor, Assistant Secretary William McAnly, District Engineer Gerald G. James, Assistant Secretary Richard J. Leonhard, Assistant Secretary Regular Meeting Agenda April 9, 2013 — 8:00 a.m. 1. Roll Call 2. Approval of the Minutes of the March 5, 2013 Meeting 3. Old Business A. Update on Lake Bank Enhancement 4. New Business 5. Manager's Report A. Acceptance of Fiscal Year 2012 Audit B. Approval of Financial Statements C. Questions and Comments on the Proposed Fiscal Year 2014 Budget D. Field Manager's Report 6. Attorney's Report 7. Supervisors' Requests 8. Audience Comments 9. Adjournment NOTES: The next meeting is scheduled for Tuesday, May 7, 2013, at 9:00 a.m. District Office: Meeting Location: 210 N. University Drive, Suite 702 Naples Heritage Golf and Country Club Clubhouse Coral Springs, FL 33071 8150 Heritage Club Way 954 - 753 -5841 Naples, FL Lake Erosion Task Force Committee Report To the Naples Heritage Golf & Country Club Master Association Board of Trustees March 7, 2013 The committee met on to review bids to do this year's corrective work on SUMV111111151110 and ArfftVes and to discuss a plan for addressing the lake banks at Vii , GI and > e. In attendance: Bill Drawz Ken Gaynor Richard Rogan Chad Montgomery Not in attendance: Jim Eastman Tom Thomas Patrick Dorbad Chad has gotten quotes from two contractors to do the grading work. They are GCID and Southwest Development Services. In Chad's view, they are of equal capability and their bids are close enough so that he is confident that either one will do the work at the lower bid. Chad is leaning in the direction of o ased on the quality of their work last year on the §#V µ 4 Waj*ng"s The plantings will be done �1��IaQare, the vendor that has done e p iaQW&4 and 12?Tentative timing for the project is vnegs If the initial cost estimate proves to be accurate, there should be some money left over, versus the budgeted amount of I t , to go back to P .. and Sm"MWIL n s and do some "tom,UW, V The previous committee report indicated that this work be put off until the entire project is complete. If, however, there is a reasonable sum available in the budget for this year's project, the committee will recommend taking appropriate corrective action this year. This summer, a plan, to include estimated costs, will be developed to address the erosion issues along lake beds at #kefiriy 1a A y" r dx� ds ° "C ittYe. Once the plan is completed we will correspond with the presidents of iaesefcwt�ers associations letting them knave what tv expect as far 65`tI`Mitfq an t c i. The goal is to Provide this information no later than November so that the cost can be included in their next year's budget. The committee will be making a drive -by survey of the lakes banks on March 28,.201:3 at; :00-p rt. Ken Gaynor is drafting up a brief article to be included in the NHGCC Newsletter and on the web site explaining the Lake Bank Erosion Project to the membership. As a Community Development District we are responsible for the maintenance and preservation of our lakes and their banks. Over the past 1S years since Naples Heritage became a community, there have been varying degrees of lake bank erosion. In 2011 a committee was formed to address this issue. Well over 10 years ago the golf course side of the lakes were planted with a variety of species of littoral plants. This was done by the developer and has been successful in limiting damage to the lake banks. The committee was formed to determine what needed to be done on the residential side of the lakes. After surveying and measuring all of our lakes priorities were set based on the most to the least severe problems. The lake bank across from the 10h fairway was determined to be the most damaged. The Heritage Links Association first addressed one of the causes of the problem by adding drains that led all the way into the water. A test, sponsored by CDD funds, was conducted over the summer of 2011. The lake banks were repaired and graded and planted with a variety of natural plants that could withstand the fluctuating water levels that we incur over the summer. The primary purpose of these plantings is to stabilize the banks so that that we no longer incur the problems of the past. Another consideration is the need to continue to attract the various nesting birds that add to the beauty of Naples Heritage. Based on the success of the test we expanded the project to include Prestwick and Southern Links last summer. This summer we will be grading and planting at Stoneybrook and Arbor Lakes with the Villas and Single Family lakes to follow. NAPLES HERITAGE COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2012 NAPLES HERITAGE COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA TABLE OF CONTENTS Page INDEPENDENT AUDITOR'S REPORT 1 MANAGEMENT'S DISCUSSION AND ANALYSIS 2 -6 BASIC FINANCIAL STATEMENTS Government -Wide Financial Statements: Statement of Net Assets 6 Statement of Activities 7 Fund Financial Statements: Balance Sheet — Govemmental Fund 8 Reconciliation of the Balance Sheet— Governmental Fund to the Statement of Net Assets 9 Statement of Revenues, Expenditures and Changes in Fund Balance — Governmental Fund 10 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balance of Governmental Fund to the Statement of Activities 11 Notes to the Financial Statements 12 -16 REQUIRED SUPPLEMENTARY INFORMATION Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual — General Fund 17 Notes to Required Supplementary Information 18 REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 19 MANAGEMENT LETTER REQUIRED BY CHAPTER 10.550 OF THE RULES OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA 20-22 Grau & Associates CERrIKED PUBLIC ACCOUNTANTS INDEPENDENT AUDITOR'S REPORT To the Board of Supervisors Naples Heritage Community Development District Collier County, Florida 2700 North Military Trail • Suite 350 Edoca Ratan, Florida 33431 (561) 994 -9299 - (800) 299 -4728 Fax(561)994-5823 www.graucpa.com We have audited the accompanying financial statements of the governmental activities and the majorfund of Naples Heritage Community Development District, Collier County, Florida (the "District ") as ofandforthe fiscal year ended September 30, 2012, which collectively comprise the District's basiefinancial statements as listed in the table of contents. These financial statements are the responsibility of the District's management. 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 GovernrnentAuditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, An audit also includes assessing the accounting principles used and the significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and the major fund of the District as of September 30, 2012, and the respective changes in financial position thereof for the fiscal year then ended in conformity with accounting principles generally accepted in the United States of America. In accordancewith GovemmentAuditing Standards, we have also issued our report dated March 4, 2013, 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, 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 the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and important for assessing the results of our audit. 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 supplementthe basicfinancial 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 basicfinancial 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 managements 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. .r,C 'zl. arch 4, 2013 MANAGEMENT'S DISCUSSION AND ANALYSIS Our discussion and analysis of the Naples Heritage Community Development District, Collier County, Florida ( 'District') provides an overview of the District's financial activities for the fiscal year ended September 3D, 2012. 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 asset balance of $8,201,072. • The change in the District's total netassets in comparison with the prior fiscal yearwas $(154,231), a decrease. The key components of the District's net assets and change in net assets are reflected in the table in the government-wide financial analysis section. • At September 30, 2012, the District's governmental fund reported a.total ending fund balance of $45,022, an increase $8,081 in comparison with the priorfiscal year. A portion of the fund balance is assigned forsubsequent year's expenditures and the remainder is unassigned which is available for spending at the District's discretion. 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 govemment -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 assets presents Information on all the District's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases In net assets 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 assets changed during the most recent fiscal year. All changes In net assets 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 include all governmental activities that are principally supported by special assessment revenues. The District does not have any business -type activities. The governmental activities of the District include the general government (management) and maintenance and operations functions. 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. The District has one fund category: governmental funds. OVERVIEW OF FINANCIAL STATEMENTS (Continued) Fund Financial Statements (Continued) 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 providea reconciliation to facilitate this comparison between governmental funds and governmental activities. The District maintains one individual governmental fund for external reporting. 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. The general fund is considered to be a major fund. The District adopts an annual appropriated budgetfor itsgeneral 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 included in the government -wide and fund financial statements. GOVERNMENT -WIDE FINANCIAL ANALYSIS As noted earlier, net assets 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. Key components of the District's net assets are reflected in the following table: NET ASSETS SEPTEMBER 30, 2012 2011 Assets, excluding capital assets capital assets Total assets Liabilities, excluding long -term liabilities Total liabilities Net Assets Invested In capital assets Unrestricted Total net assets $ 45,022 $ 37,108 8,156,050 8,318,362 8,201,072 8,355,470 167 167 8,156,050 8,318,362 45,022 36,841 $ 8,201,072 $ 8,355,303 GOVERNMENT -WIDE FINANCIAL ANALYSIS (Continued) A portion of the District's net assets reflects its investment in capital assets (e.g. land, land improvements and infrastructure). These assets are used to provide services to residents; consequently, these assets are not available for future spending. The remaining balance of unrestricted net assets may be used to meet the District's other obligations. The change in the District's net assets during the most recent fiscal year was a decrease. The majority of the decrease represents the extent to which the cost of operations and depreciation expense exceeded ongoing program revenues. Key elements of the change in net assets are reflected in the following table: CHANGES IN NET ASSETS FOR THE FISCAL YEAR END SEPTEMBER 30, 2012 2011 Revenues: Program revenues General revenues Total revenues Expenses: General goverment Maintenance and operations Total expenses Change in net assets Net assets beginning Nat assets ending 48,532 $ 48,546 166 777 48,718 49,323 40,637 35,629 162,312 175,168 202,949 211,797 (154,231) (162,474) 8,355,303 8,517,777 $ 8,201,072 $ 8,355,303 As noted above and in the statement of activities, the cost of all governmental activities during the fiscal year ended September 30, 2012 was $202,949, ofwhich $162,312 represents depreciation expense. Thecosts of the Districts activities were primarily funded by program revenues. Program revenues were comprised primarily of assessments for both the 2012 and 2011 fiscal years. GENERAL BUDGETING HIGHLIGHTS An operating budget was adopted and maintained by the governing board for the District pursuant to the requirements of Florida Statutes. The budget Is adopted using the same basis of accounting that is used in preparation of the fund financial statements. The legal level of budgetary control, the level at which expenditures may not exceed budget, is in the aggregate, Any budget amendments that Increase the aggregate budgeted appropriations must be approved by the Board of Supervisors. The variance between budgeted and actual general fund revenues for the current fiscal year was not considered significant. The actual general fund expenditures for the current fiscal year were lower than budgeted amounts due primarily to anticipated costs which were not incurred in the current fiscal year. CAPITAL ASSETS$ At September-30, 2012, the District had $10,414,991 invested in land improvements, roadways, security, and other related improvements. In the govemment -wide statements depreciation of $2,258,941 has been taken, which resulted Ina net book value of $8,156,050. More detailed Information about the Districts capital assets is presented in the notes of the financial statements. ECONOMIC FACTORS AND NEXT YEARS 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 remain fairly constant. CONTACTING TH E DISTRICT'S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, land owners, customers, investors and creditors with a general overview of the District's finances and to demonstrate the Districts 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 Naples Heritage Community Development District's Finance Department at 210 N. University Drive, Suite 702, Coral Springs, Florida, 33071. NAPLES HERITAGE COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA STATEMENT OF NET ASSETS SEPTEMBER 30, 2012 Governmental Activities ASSETS Cash $ 44,653 Due from other governments 369 Capital assets: Nondepreciable 6,122,404 Depreciable, net 2,033,646 Total assets 8,201,072 LIABILITIES Accounts payable - Total liabllities - NET ASSETS Invested in capital assets 8,156,050 Unrestricted 45,022 Total net assets $ 8,201,072 See notes to the financial statements 0 ] E � \ \ k 2 \ § Q) w ' ® £ S -C43 G Q $ J\ a70 ? 2 J I $$ $ 2 0 / % » 7 2 o CL / ( [ k % > z « o % S2 R § w LO N 2 $ G ® z 1-: 0aui ui § \ 2 »_£vi � �� c a f{ c IC_ ^ $ - zLL k 0�� }/\ kƒ f f 2 S z m S a w e 2 2 7 2$ § � U � E / % 3 ) / . o��� w @c Gf2 §d�� ® §� Szz � / z Pf q gf w � % / {� \ , - 2 2 ` § k / [ 2 \m( eEf \)f as 9 b m§ a o \ E \ m I LL & ] E � \ \ k 2 \ § Q) w NAPLES HERITAGE COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA BALANCE SHEET GOVERNMENTAL FUND SEPTEMBER 30, 2012 Major Fund Total Governmental General Fund ASSETS Cash $ 44,653 $ 44,653 Due from other governments 369 369 Total assets $ 45,022 $ 45,022 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Total liabilities Fund balance: Assigned to: Subsequent year's expenditures Unassigned Total fund balance Total liabilities and fund balance 12,142 12,142 32,880 32,880 45,022 45,022 $ 45,022 $ 45,b22 See notes to the financial statements NAPLES HERITAGE COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA RECONCILIATION OF THE BALANCE SHEET - GOVERNMENTAL FUND TO THE STATEMENT OF NET ASSETS SEPTEMBER 30, 2012 Amounts reported for governmental activities in the statement of net assets are different because: Fund balance - governmental funds Capital assets used in governmental activities are not financial resources aril, therefore, are not reported as assets in the governmental funds. The statement of net assets includes those capital assets, net of any accumulated depreciation, In the net assets of the government as a whole. Cost of capital assets Accumulated depreciation Net assets of governmental activities See notes to the financial statements 45,022 10,414,991 (2,258,941) 8,156,050 $ 8,201,072 NAPLES HERITAGE COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE GOVERNMENTALFUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2D12 REVENUES Assessments Interest Total revenues EXPENDITURES Current: General government Total expenditures Excess (deficiency) of revenues over(under)expenditures Fund balance- beginning Fund balance - ending Major Fund Total Governmental General Fund $ 48,532 $ 48,532 186 186 48,718 48,718 40,637 40,637 40,637 40,637 8,081 8,081 36;941 36,941 $ 45,022 $ 45,022 See notes to the financial statements 10 NAPLES HERITAGE COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE OF GOVERNMENTAL FUND TO THE STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2012 Amounts reported for governmental activities in the statement of activities are different because: Net change in fund balances - total governmental funds Depreciation on capital assets is not recognized in the governmental fund statements but is reported as an expense in the statement of activities. Change in net assets of governmental activities 3,081 (162,312) $ (1154,231) See notes to the financial statements 11 NAPLES HERITAGE COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS NOTE 1 — NATURE OF ORGANIZATION AND REPORTING ENTITY Naples Heritage Community Development District ( "District') was created on September 24, 1996 by Ordinance 96 -57 of Collier 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 forcommunity 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 ("Board"), which is composed of five members. The Supervisors are elected by the owners of the property within the District. The Board of Supervisors of the District exercise all powers granted to the District pursuant to Chapter 190, Florida Statutes. The Board has the responsibility for 1. Assessing 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, and Statement 39, an amendment of GASB Statement 14. Under the provisions of those standards, the financial reporting entity consists of the primary government, organizations forwhich the District Board of Supervisors is considered to be financially accountable, and other organizations forwhich 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 assets 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 speclal assessments for maintenance 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. 12 NOTE 2— SUMMARY OF SIGNIFICANT ACCOUNTING POLICES (Continued) Measurement f=ocus, 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 80 days of the end of the current fiscal period. Expenditures are recorded when a liability is incurred, as under accrual accounting. Assessments Assessments are non -ad valorem assessments on benefited lands within the District. Assessments are levied to pay for the operations and maintenance of the District. The fiscal year for which annual assessments are levied begins on October 1 with discounts available for payments through February 28 and become delinquent on April 1. The District's annual assessments for operations are billed and collected by the County Tax Collector. The amounts remitted to the District are net of applicable discounts or fees and include interest on monies held from the day of collection to the day of distribution. Assessments and interest associated with the current fiscal period are considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. The portion of assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the government. The District reports the following major governmental fund: 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. 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. Assets, Liabilities and Net Assets or Euuf Restricted Assets These assets represent cash and investments set aside pursuant to external restrictions. Deposits and Investments The District's cash is considered to be cash on hand and demand deposits. The District has elected to proceed under the Alternative Investment Guidelines as set forth in Section 218.415 (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. 13 NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Assets, Liabilities and Net Assets or Equity (Continued) Deposits and Investments (Continued) Securities listed in paragraphs c and d shall be invested to provide sufficient liquid4tc pay obligations as they come due. The District records all interest revenue related to investment activities In the general fund and reports investments at fair value. Inventories and Prepald 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 govemment -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 government 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 Roadways 30 Security and other 20 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 govemmental fund financial statements. Deferred Revenue Governmental funds report deferred revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. Governmental funds also defer revenue recognition In connection with resources that have been received, but not yet earned. Fund Eauk/Net Assets 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. 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, 14 NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Assets, Liabilities and Net Assets or Equity (Continued) Fund Equity /Net Assets (Continued) Assigned fund balance -- Includes spendable fund balance amounts that are intended to be used for specific purposes that are neither considered restricted nor committed. The Board can 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 assets in the government -wide financial statements are categorized as invested in capital assets, net of related debt, restricted or unrestricted. Invested in capital assets, net of related debt represents net assets related to infrastructure and property, plant and equipment, net of any related debt. Other Disclosures Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumpti ons 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) Public hearings are conducted to obtain public 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. i Unused appropriation for annually budgeted funds lapse at the end of the year. 16 NOTE 4 — 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 depositwith the Treasurer or another banking institution eligible collateral equal to various percentages of the average dally 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. NOTE 3 — CAPITAL ASSETS Capital asset activity for the fiscal year ended September 30, 2012 was as follows: Govern mental activities Capital assets, not being depredated Land and land improvements Total capital assets, not being depreciated Capital assets, being depreciated Security and other Roadway Total capital assets, being depredated Less accumulated depreciation for: Security and other Roadway Total accumulated depredation Total capital assets, being depredated, net Governmental activities capital assets, net Beginning Ending Balance Additions Reductions Balance $ 6,122,404 $ $ - $ 6,122,404 6,122,404 - 6,122,404 1,153,556 153,556 3,139,031 - - 3,139,031 4,292,587 - 4,292,587 760,615 57,678 818,293 1,336,014 104,634 1,440,648 2,096,629 162,312 2,258,941 2,195,958 (162,312) 2,033,646 $362 $ (162,312) $ - $ 8,156,050 Depreciation expense was charged to the maintenance and operations function. NOTE 6 - MANAGEMENT COMPANY The District has contracted with a management company to perform services which include financial and accounting advisory 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, and other administrative costs. NOTE 7 - 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. Settled claims from these risks have not exceeded commercial insurance coverage over the past three years. i[% NAPLES HERITAGE COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL — GENERAL FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2012 REVENUES Assessments Interest Total revenues EXPENDITURES Current: General government Total expenditures Excess (deflciency) of revenues over (under) expenditures Fund balance - beginning Fund balance - ending Variance with Final Budget - Budgeted Amounts Actual Positive Original and Final Amounts (Negative) $ 48,324 $ 48,532 $ 208 242 186 (56) 48,566 48,718 152 48,566 40,637 7,929 48,566 40,637 7,929 $ - 8,081 $ 8,081 36,941 $ 45,022 See notes to required supplementary information 17 NAPLES HERITAGE COMMUNITY DEVELOPMENT DISTRICT COLLIER 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 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, 2012. The variance between budgeted and actual general fund revenues for the current fiscal year was not considered significant. The actual general fund expenditures for the current fiscal year were lower than budgeted amounts due primarily to anticipated costs which were not Incurred in the current fiscal year. 18 Grau & Associates CERTIFIED PUBLIC ACCOUNTANTS 2700 North Military Trail • Suite 350 Boca Baton, Florida 33431 (561) 994 -9299 - (800) 299- 1728 Fax (581) 894 -5823 www.graucpa_com 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 Naples Heritage Community Development District Collier County, Florida We have audited the financial statements of the governmental activities and the major fund of Naples Heritage Community Development District, Collier County,. Florida ( "District ") as of and for the fiscal year ended September 30, 20'12, which collectively comprise the district's basic financial statements and have issued our report thereon dated March 4, 20'13. 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. Internal Control Over Financial Reporting Management of the District is responsible for establishing and maintaining effective internal control over financial reporting. In planning and performing our audit, we considered the District's internal control over financial reporting as a basis far designing our auditing procedures 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 over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the District's internal control over financial reporting. Adefirlencyin internal control exists when the design oroperation 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 weaknass 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. Our consideration of internal control overfinancial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, significant deficfencies, or material weaknesses. We did not identify any deficiencies in internal controtoverfinancial reporting that we consider to be material weaknesses, as defined above. Compliance and Other Matters As part of obtaining reasonable assurance about whether the District's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, and 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, wedo 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. This report Is Intended for the Information of the management, Board of Supervisors of Naples Heritage Community Development District, Collier County; Florida and the Auditor General of the Stateof Florida and is not intended to be and should not be used by anyone otherthan these specified parties. March 4, 2013 19 2700 North Military Trail + Suite 350 G�rau Associates Boca Raton, Florida 33431 (561) 994 -9299 • (800) 299 -4728 ICU) Fax (561 ) 994 -5823 CERTIFIED PUBLIC ACCOUNTANn www.graucpa.com MANAGEMENT LETTER PURSUANT TO THE RULES OF THE AUDITOR GENERAL FOR THE STATE OF FLORIDA To the Board of Supervisors Naples Heritage Community Development District Collier County, Florida We have audited the accompanying basiefinancial statements of Naples Heritage Community Development District ( "District') as of and for the fiscal year ended September 30, 2012, and have issued our report thereon dated March 4, 2013. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and Govemment Auditing Standards, issued by the Comptroller General of the United States; and Chapter 10.550, Rules of the Florida Auditor General. Those standards require thatwe 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 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 dated March 4, 2013. 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 10.550 of the Rules of the Auditor General for 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. 11. Status of prior year findings and recommendations. III. Compliance with the. Provisions of the Auditor General of the State of Florida. Pursuant to Chapter 119, Florida Statutes, this management letter is a public record and its distribution is not limited. This letter is intended for the information and use of the management, Board of Supervisors of Naples Heritage Community Development District, Collier County, Florida and the Auditor General of the State of Florida and is not intended to be and should not be used by anyone other than these specified parties. We wish to thank Naples Heritage Community Development District, Collier County, Florida and the personnel associated with it, for the opportunity to he of service to them In this endeavor as well as future engagements, and the courtesies extended to us. G�-r- � "� March 4, 2013 20 REPORT TO MANAGEMENT I. CURRENT YEAR FINDINGS AND RECOMMENDATIONS None Ii. PRIOR YEAR FINDINGS None III. COMPLIANCE WITH THE PROVISIONS OF THE AUDITORGENERAL 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, 2011. 2. A statement as to whether or not the local governmental entity complied with Section 218.415, Florida Statutes, regarding the investment of public funds. The District complied with Section 218.415, 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, 2012. 4. Violations of 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 more than Inconsequential. 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, 2012. 6. For matters that have an inconsequential effect on the financial statements, considering both quantitative and qualitative factors, the following may be reported based on professional judgment: a. Violations of provisions of contracts or grant agreements, fraud, illegal acts, or abuse. b. Deficiencies in internal control that are not significant deficiencies. There were no such matters discovered by, or that came to the attention of, the auditor, that, in our judgment, are required to be reported, for the fiscal year ended September 30, 2012. 6. The name or official title and legal authority of the District are disclosed In the notes to the financial statements. 7. The financial report filed with the Florida Department of Financial Services pursuant to Section 218.32(1)(a), Florida Statutes agrees with the September 30, 2012 financial audit report. 21 REPORT TO MANAGEMENT (Continued) 8. The District has not met one or more of the financial emergency conditions described in Section 218.503(1), Florida Statutes. 9. We applied financial condition assessment procedures pursuant to Rule 10.556(7) and no deteriorating financial conditions were noted. 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. 22 Naples Heritage Community Development District Financial Report Febraary28, 2013 Prepared by Naples Heritage Community Development District Table of Contents FINANCIAL STATEMENTS Balance Sheet - General Fund ........................... ............................... Page 1 Statement of Revenues, Expenditures and Changes in Fund Balances GeneralFund ........................... ............................... Page 2 - 3 SUPPORTING SCHEDULES Cash and Investment Report Non -Ad Valorem Special Assessments Check Register ............ Page 4 ........................... ............................... Page 5 ........................... ............................... Page 6 Naples Heritage Community Development District Financial Statements (Unaudited) February28, 2013 v c a m C m C7 r o M N O � N N � d N V = ca so `- m � LL U_ C w FO _ N ER N 0 W d zU, J F- O H z O H a w Q w 0 O U U Q M N In N m c ? o c� a c a� a) U c w N N M a L) `rol nIl O I �I N CMO I to ( r Fy- w a Q a� a m N a w g a J Z d W x z a d Z5 °' m LM O H z N G � a � LL w U z a m a z LL J F- 0 (O z LL IJ 0 Cl) N N N M N (0 a r CL a b C a d d U .0 ❑ (� E UJ aCL > W ❑ E a E Z U N Co 22 N C o i o E y '(a r o c U a LL p ] y d xx 3 y }_� O Q O/ C N U CI C l0 N m N Cn V L � G i/ c C C C G o C � W 2 u- N y C a� y rn o L v -mo r a c c w v w v a `� c m ui cr 12 m{�� Z m a2i a�i a�i E'D �' Q m o u f c C O Z m m Z a u a a a a a. ¢ U a a g ¢ Q W W N co ~O X Q 1�- w F 4J co O N Lo N M l0 o It N d a N M W V W C14 ' N (O w W N O V m O N C C N C a� �Q jLL te ti cD N M v N co a1 O O d _ h r W ~ LL Q ag, W co O CD W co o w v M W V N '- W w <0 w N N N c ,7 � m m Of r C W LL m to d J 11 o e o g o e g a o e o a e 3 0 0 0 0 0 0 R ca M w o O a) m 't � o O o O LO m g ca O n W CO m O M o M 9 C,') 1� 0 o m o 0 o C LQ o Imo. o M M m M O m O O In C7 M O W W O O O M O a V o W W a) co m cr M O v W W M N m In O m ¢ ¢ Ix c Q o °a LL C M N N W M co I-. 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L �- co CA co CD N �- r N � za� N E <gm t� 69 N Co 22 N C o i o E y '(a r o c U a LL p ] y d xx 3 y }_� O Q O/ C N U CI C l0 N m N Cn V L � G i/ c C C C G o C � W 2 u- N y C a� y rn o L v -mo r a c c w v w v a `� c m ui cr 12 m{�� Z m a2i a�i a�i E'D �' Q m o u f c C O Z m m Z a u a a a a a. ¢ U a a g ¢ Q W W N co ~O X Q 1�- w F 4J co O N Lo N M l0 o It N d a § / ( / / k E> I k\ Lu �« § £ e /f /C) k k 2 _.o - /� 0 2 3 m Es § § ■§ z� N _ C14 �\ §/ § / >� e \ \ / / /§ � � � § cu / } 2w \ \ 2 / \ \ \ §± as - kk )� J % a_ 7 \ § n w �w� R �� w ; § ��� E 3 B / � 2 ■ o e m ) 'a w � a 2 n t = F- \ K $\ § § W ) § k_ \ CO) * 7 § ) ) E ` $ k U \ a § R ! 2 7\ LL LL § / ( / / Naples Heritage Community Development District Supporting Schedules FebraaryM, 2013 Naples Heritage Community Development District Cash and Investment Report February 28, 2013 ACCOUNT NAME BANK NAME YIELD MATURITY BALANCE GENERALFUND Checking Account -Operating SunTrust 0.10% $ 50,071 Checking Account -Operating BankUnited 0.00% 1,250 Money Market Account BankUnited 0.45% 26,211 Total $ 77,532 Report Date: 3/25/2013 Prepared By: Page 4 Severn Trent Management Services Naples Heritage Community Development District Non -Ad Valorem Special Assessments (Collier County Tax Collector - Monthly Collection Distributions) For the Fiscal Year Ending September 30, 2013 ALLOCATION Discount / Collection Gross Date Net Amount (Penalties) Costs Amount General Fund Received Received Amount Received Assessments Assessments Levied $59,925 $ 59,925 Allocation % 100% 100% 11/07/12 410 23 8 441 441 11/14/12 7,550 321 154 8,025 8,025 11/29112 16,793 714 343 17,850 17,850 12/13/12 21,389 902 437 22,728 22,728 01/09/13 1,559 49 32 1,640 1,640 02/08/13 5,097 136 104 5,337 5,337 TOTAL $ 52,798 $ 2,145 $ 1,078 $ 56,021 ( $ 56,021 % COLLECTED 93% 93% TOTAL OUTSTANDING $ 3,904 $ 3,904 Report Date: 3/25/2013 Prepared by: Severn Trent Management Services Page 5 0 N N a w lL �Y 0 V! d o fl. 00 Z U a m `o LL Li 4 N to a o v ddd N � v O C u[i LL Em W Z C Q� E z° g8 E I d U m I 114 U. y Z N N N J W z Z O W z W N I M x U 7 U Z O } 2 uj W J r � O U O rn Q N Z O J u, W W $ M ID CD CL m CL ca ) 2 a. 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CL 7 CO) W a W Z W J a Z R, N_ c E 0 a� c E E O 0 C d E U) U) W y y Q O N M 0 N 0 � o d � E 10- d N N a 0 C � d Ln 2 E � od N O y N a V N O j a ¢ co �Q � N CL `m o} a � .La Naples Heritage CDD Severn Trent Services Field Management Report Site Inspection — 3/22/2013 1. Lake Management: a. Lake Maintenance: No major issues were found with the lakes this month, Algae, shoreline weeds & submerged weeds were all present but they were mostly in acceptable condition. Additional lake management details are provided below. b. Algae: Filamentous algae was minimally present on Lakes 1, 11 & 12. c. Littorals: No issues were found with the littoral plants. Plants observed included golden canna, spike rush, arrowhead, pickerelweed, bulrush and alligator flag. Golden Canna Pickerel Weed d. Weeds: Weeds found during the inspection included: i. Torpedo Grass in Lakes 5, 7, 9 & 15. Low Presence — Acceptable. ii. Climbing Hemp Vine in Lakes 9 & 15, High Presence — Treatment needed. iii. Cattails in Lake 9. Low Presence — Treatment needed. iv. Musk grass (charra) in Lakes 6, 11, 12 & 13. Medium to High Presence — Treatment needed. This weed is native to Florida and helps with water clarity however when the water levels drop it becomes very unsightly. The lake management company is currently treating it. Charra e. Trash in Lakes: No trash was observed. 2. Dissolved Oxygen (DO) Tests: Lakes 6, 12 & 16 were tested and all showed good oxygen levels. Environmental factors such as temperature, wind, sun or clouds can cause the DO to change. Any reading over 2.00 is considered to be healthy and stabilized to sustain life. 3. Lake Bank Erosion: a. All lakes were inspected for erosion. The maps below show where washouts and vertical erosion is currently present. Red boxes represent washouts, blue circles represent erosion around storm drain outlets and red lines represent vertical erosion. In my opinion the most severe erosion is currently on Lakes 14 & 15. If the CDD proceeds with repairing these or any other lake banks in the future they'll want to consider installing catch basins between the homes and possibly tying them in to the homeowners down spouts. Doing this will greatly reduce sheet flow run off between the homes and will help prevent future erosion. 2 Water Testing Results 8 I WEIR 7 s M March 30, 2011 Dissolved 6 e.0 Oxygen (PPM) ■ 4 March 26, 2012 Dissolved Oxygen (PPM) 3 75-77, ❑ March 22, 2013 Dissolved Oxygen (PPM) e 0 Lake 6 Lake 12 Lake 16 3. Lake Bank Erosion: a. All lakes were inspected for erosion. The maps below show where washouts and vertical erosion is currently present. Red boxes represent washouts, blue circles represent erosion around storm drain outlets and red lines represent vertical erosion. In my opinion the most severe erosion is currently on Lakes 14 & 15. If the CDD proceeds with repairing these or any other lake banks in the future they'll want to consider installing catch basins between the homes and possibly tying them in to the homeowners down spouts. Doing this will greatly reduce sheet flow run off between the homes and will help prevent future erosion. 2 S���m';��'a- mot. -. �,�:'� �,.�,.� pp�� b. Several drain pipes that were installed on Lake I 1 have come disconnected and washouts have formed again in these areas. To prevent the erosion from getting any worst these pipes need to be reconnected and buried. 4. Preserves; The preserves were spot checked for FLEPPC category I & II exotic /nuisance species which included melaleuca, Brazilian pepper, climbing cassia, torpedo grass, West Indian marsh grass, wetland night shade and primrose willow. None of these plants were found so I'm glad to report that the current maintenance company is doing a great job! I did however come across pieces to an old car in Preserve Tract B; the Board may want to have them removed. 5. Perimeter Fence: There are numerous trees, branches and shrubs growing on the fence that should be cut back. This will help protect the fence from any potential damage that the vegetation may cause. 6. Sidewalks: a. The following sidewalks were found as potential tripping hazards and should be grinded down. i. 7752, 7794, 7834, 7842 & 8238 Naples Heritage Drive. ii. In front of the Kilkenny Way sign on Naples Heritage Drive. 5 7. Roadways: a. All of the roadways were inspected this month and below is a summary of my findings. The alligatoring on the east end of Naples Heritage Drive would be rated has the highest priority issue and should be addressed first. In this area the alligatoring was split a half an inch apart. Naples Heritage Roadway Inspection Sheet Roadway Storm Roadway Alligatoring Staining Reflectors Drains Gutters Curbs Naples Heritage Drive Medium to High Severity Yes- Low Several Missing Leaves- Low 4 sections need replacement N/A Heritage Club Way Medium Severity No Several Missing Clear Good Heritage Links Court Medium Severity No Several Missing Clear 2 sections need replacement Good KilkennyWay Medium Severity Yes- Low Several Missing Clear 9 sections need replacement Good Kilkenny Court Medium Severity No Several Missing Clear 1 section needs replacement Good Colonial Court Medium Severity No Several Missing Clear Good Good Stoney Brook Drive Medium Severity No Several Missing Clear 2 sections need replacement— Good Arbor Lakes Court Medium Severity No Several Missing Clear 5 sections need replacement Good b. The stop lines and cross walks could use a fresh coat of paint. 8. Storm Drainage System: a. Overflow Weirs: The overflow weirs on Lakes 6, 8, 11, 12 & 13 all had some minor debris in them. These structures should be cleaned out at least once a year. b. Gutter Pans: Multiple sections were found broken throughout the community. These areas should be cut out and replaced with new concrete. i. Naples Heritage Drive — 4 Sections ii. Heritage Link Court — 2 Sections iii. Kilkenny Way — 9 Sections iv. Kilkenny Court — l Section v. Stoney Brooke Drive — 2 Sections vi. Arbor Lakes Court — 5 Sections c. Storm Drains: i. Roadway Catch Basins: Overall the catch basins along the roadways were in good shape. The only debris found was in one of the basins on Heritage Club Way. The amount of debris was minimal (all leaves) and shouldn't be a problem. 7 t + W pc � t + W iv. Storm Drain Outlets: Several issues were observed with the storm drain outlets: 1. The storm drain outlets along Naples Heritage Drive (near the main entrance.) contain a large amount of debris and dirt in them. To ensure that the drains function properly, all debris should be removed from the area. Locations are marked in red on the aerial below. All drain outlets within the red line need to he cleaned nnt_ 2. Multiple structures continue to have washouts around them. Compared to my 2012 inspection the washouts have slightly increased in size and should be repaired as soon as possible. These locations are shown as blue circles on the maps in Section 3 a. March 2012 March 2013 Lake 1 Lake 2 v. Storm drain inlets remain damaged at 8743, 8794, 8795 & 8838 Naples Heritage Drive. They should be replaced in the near future. 9. Fish /Wildlife Observations: ® Bass ® Bream ❑ Catfish ❑ Gambusia ® Egrets ® Herons ® Coots ❑ Gallinules ®Anhinga ® Cormorant ® Osprey ® Ibis ❑ Woodstork ❑ Otter ❑ Alligator ❑ Snakes ® Turtles ® Other Species: Ducks, Tilavia 10 10. Follow up Items that should have been addressed from 3/26/12: a. Remove the debris from the storm drains mentioned in Section 8 C. Completed. Before & After b. Repair sidewalk issues mentioned in Section 6. Sidewalks from last year have been repaired or grinded down. c. Remove the dead trees from Lake 4. Not completed. 11. Follow up Items that should be addressed: a. Begin addressing the erosion issues throughout the community. b. Address sidewalk issues mentioned in Section 6. c. Address drainage issues mentioned in Section 8. d. Install roadway fire hydrant reflectors. it