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07/15/2013 Agenda1�`,' ON 0 �`a4'd of %&rviso(s� Heritage Greens Community Development District C! Calvin Teague, District Manager Greg Urbancic, District Counsel James Carr, PE, District Engineer O.�Onry Myc� elso Assi ant Secretary / Regular Meeting Agenda - Revised Monday July 15, 2013 — 6:00 p.m. 1. Roll Call 2. Approval of Agenda 3. Audience Comments 4. Approval of the Minutes of the May 20, 2013 Meeting 5. Old Business A. School Crossing Guard Discussions B. Gate and Security Considerations C. Stop Sign Project Update 6. New Business A. Discussion of Wall Cleaning B. Clearing between Eastern Wall and School Fence C. lake Bank Maintenance D. Sidewalk Repair 7. Supervisor Committee Reports A. Landscaping and Beautification 8. Manager's Report A. Follow -Up Items B. Review of Approved Tentative Budget for Fiscal Year 2014 C. Consideration of Engagement Letter with Grau 8r Associates to Perform the Financial Audit for Fiscal Year 2013 D. Report on Number of Registered Voters - 638 E. Drainage and Preserves — Stormwater Management System Inspection Report F. Approval of Financial Statements 9. Attorney's Report 10. Engineer's Report 11. Supervisors' Requests and /or Comments 12. Audience Comments 13. Adjournment Note: Next meeting is scheduled for Monday, August 19, 2013 at 6:00 p.m. District Office: 210 N. University Drive, Suite 702 Coral Springs, Florida 954 - 753 -5841 www.heritagegreensodd.org Meeting Location: Heritage Greens Community Center 2215 Heritage Greens Drive Naples, Florida Heritage Greens Security Feedback Tally Total # of Residents 526 Tally 81 Comments: • Great idea! Security at the guard house is awful! • Great opportunity to save money. • The board has the community's best interest at heart. • Great idea! Half the money should go back to homeowners to lessen burden. • Patrol should be from 11pm to 3am. • Yes! Works for other communities. • Do away with the whole gate & have police patrol. • Have a 4 to 5 digit code. • Tele -entry systems need to handle lines sharing fax and phone numbers. • Get heavy swing gates. • Add more than one phone # to system. • Have guard from 12am - 2am or lam -3am. • Why have guard from 3am -5am, is this a proven time for criminal activity? • Need more info on how key pad works and why guard patrol only from 3 to 5 am? • Please make decision based on if residents are seasonal or not. • Is this change reversible if new proposal doesn't work? Tally 75 Comments: • Property value would go down. • Have problems now with guard on Carson street and Grass, we need guard. • Takes away from security. • Willing to pay more for guard to be on duty 8pm to 6am. • Feel more secure with guard in community. • Increase risk to property owners for criminal activity. • Call boxes are difficult to read & cause frustration. • Biggest mistake you can make. • Leave guard alone -- get rid of the CDD and their $200 meetings • Have guard be more diligent about allowing access into the community. • Need to vote not just have feedback. • Can the gate system make overseas call to the UK & accept approval to allow entry? • How will newspaper delivery to able to enter during early morning hours? • Are you going to hold a public meeting before making a decision? • Tried in the past, it was a nightmare. Emergency vehicles couldn't get in, vandalism to pool area weekly etc. Undeliverable Mail Tally 19 # of Residents how have not responded 370 # of Residents who responded 156 June 17, 2013 To: Cal Teague, District Manager From: Gary Rawlings, Assistant District Manager Re: Heritage Greens Stop Signs Project At the May 20, 2013 BOS meeting the Board approved a "not to exceed" amount of $500.00 to replace 14 Stop Signs in the community. I contacted 4 vendors regarding replacement or refurbishing of the 14 Stop Signs in Heritage Greens. The signs have aged well but 90% of them no longer have reflectivity which means they are hard to distinguish at nighttime. It would be hard to just replace the worst ones because they have all aged about the same. Attached are some photos of the Stop Signs I took on June 11, 2013. I discovered that the project cannot be completed within the budgeted amount. The Unit Cost per Stop Sign is $63.00 per Road Safe. The cost to just purchase the 14 Stop Signs is $882.00. Installation is extra. The Quotes are broken down as follows: Vendor Quantity Unit Cost Installation Total Lykins SignTek, Naples 14 Fast Signs, Fort Myers 14 Road Safe, Fort Myers 14 Sign -A -Rama To compare "apples to apples ": • Unit Cost for Lykins SignTek • Unit Cost for Fast Signs • Unit Cost for Road Safe $95.00 Included $1,330.00 $78.50 $300.00 $1,399.00 $63.00 $770.00 $1,652.00 No Bid $95.00 /Sign with installation. $99.93 /Sign with installation $118.00 /Sign with installation The Board will have to amend the original motion to include a "not to exceed" amount of $1,400.00 if they wish to proceed with replacing the Stop Signs throughout the community. I recommend Lykins SignTek be given the bid, they being the lowest bidder meeting specifications. Gary Rawlings, Assistant District Manager Severn Trent Management Services 5911 Country Lakes Drive Fort Myers, FL 33905 T: 2392457118 x303 F:2392457120 Email: grawlings(a),severntrentms.com Date: 5/2912013 5935 Taylor Rd. �,... Estimate At: 9502 A1}* Created By: Naples FL. 34109 em1aa ®oamvam Jim � PHONE Geiger FAX 239 -591 -3940 Geiger jimOlykins- signtek.com Estimate /Contract Prepared By Lykins Signtek, Inc. for: Severn Trent Address: 5911 COUNTRY LAKES DR FT. Myers FL 33905 To: GARY RAWLINGS Phone: 245 -7118 From: Jim Fax: 245 -7120 Quote Desaiption: NEW STOP SIGNS Item Description Quantity G Price 1) 30" REFLECTIVE STOP SIGNS. INSTALLED. PLACE IN 14 $95.00 $1,330.00 ALUM FRAMES ON EXISTING CUSTOM POSTS AT HERITAGE GREENS. Sub Total: $1,330.00 Sales Tax: - *791m - Total: *1y409480 -- "NOTE : Signs are custom produced to your specifications. All orders of $250.00 or less require pre- payment unless prior credit arrangements are In place. I accept the above proposal and agree to pay for said work promptly upon completion ofsame, Authorized Signature: Deposit Amount: ._.,_.. _„ CHECK/CC Datc: Terms and Conditions: Prices on this contract are valid for 30 days. 50% deposit is required to commence and the balance is due upon completion Signing of this document constitutes a legal and binding contract between parties named on this agreement, Customer Is responsible for landscape amenities within install area or as required for permitting Lykins Signtek is NOT responsible for irrigation or Private Underground Lines. Goods sold remain the property of seller until paid in full. Customer agrees to provide necessary information to obtain permit, electrical supply to sign or fixture location, and /or provide color and logo Information where specified. Customer is responsible for any cap rock, lime rock or unforeseen digging conditions 1.5 % Monthly Late Fee applied to all past due invoices Warranties: Workmanship: All signs or fixtures fabricated and installed by Lykins Signtek and Its afriliates are warranted against defects in material and workmanship for one year, parts and labor. Pago I of I FASTSIGNS. Page 1 of 1 More than fast. More than signs- Estimate 348 63713 FASTSIGNS 12211 S. Cleveland Ave. Estimate Date: 6/10/2013 3:03:40PM Ft. Myers, FL 33907 ph: 239 -274 -0744 Printed: 6/10/2013 3:06:25PM fax: 239 - 274 -3151 Email: 348 (Mfastsigns. com Customer: Severn Trent Environmental ph: (239) 245 -7118 x 303 Contact: Gary Rawlings Customer: 1062 Description: Replace Stop Signs Sales Person: Paul Hill Clerk: Paul Hill email: grawlings @severntrentms.com Dear Gary: Thank you for considering FASTSIGNS of Fort Myers for your sign needs. If you have any questions, please call me at 239 - 274 -0744 or e-mail me at 348(Qfestslgns.com. Sincerely, Paul Hill Owner /Operator Product Qty I Sides H x W Unit Cost I I Totals 1 Aluminum .080 14 1 30 x 30 $78.50 $1,099.00 Description: Aluminum .080 Color: Red Reflective on White Reflective Text: STOP 2 Installation 1 1 1 x 1 $300.00 $300.00 Description: Remove Exsiting Signs and Install New Signs Notes: Line Item Total: $1,399.00 Subtotal: $1,399.00 Taxes: —499 Total: Deposit Required: Bill To: Severn Trent Environmental Payment due upon order placement. Gary Rawlings 5911 Country Lakes Blvd Ft. Myers, FL 33905 Received /Accepted By: SYSTEMWASTSIGNS_MYSTAL, BIWate0l More Than Fast. More Than Signs.7m FW: Heritage Greens CDD Stop Signs Project Rawlings, Gary From: Jean Paul Ibanez Uibanez @roadsafetraffiacom] Sent: Saturday, June 15, 2013 6:34 PM To: Rawlings, Gary Subject: RE: Heritage Greens CDD Stop Signs Project Stop signs $63.00 Ea Install $55.00 Ea Install based on u channel. Picture not clear "Rawlings, Gary" <grawlings @severntrentms.com> wrote: The Board is just doing the Stop Signs. Other signage and posts are ok. 14 Stop Signs 130" / reflective / add installation as a separate item. Gary Rawlings, Assistant District Manager Sevens Trent Management Services 5911 Country Lakes Drive Fort Myers, FL 33905 2392457118 x303 grawlings @sevemtrentms.com From: Jean Paul Ibanez [ mailto :jibanez @roadsafetraffic.com] Sent: Friday, June 14, 2013 10:29 AM To: Rawlings, Gary Subject: RE: Heritage Greens CDD Stop Signs Project I got your fax, Just a Few Questions? Since there in BIack in white Color for Post? Color For Street Blades? How Many post will have Stop Sign and Street Blades? How many Just Stop Sign? Then I can get your quote out to you. Page 1 of 3 X RoadSafe Traffic Svstems. Inc. JP Ibanez I Estimator/ Sales I RoadSafe Traffic Systems, Inc. CUSTOM SIGNAGE DIVISION 8031 Mainline Parkwayl Fort Myers, FL 33912 Phone: 239.489.3521 1 Fax: 239.489.4294 6/17/2013 a a �, s �, _, �w � �� . �, Severn Trent Services 5911 Country Lakes Drive July 8, 2013 Fort Myers, FL 33905 United States T: +1 239 245 -7118 F: +1 239 245 -7120 www.severntrentms.com The Heritage Greens CDD is seeking a contractor to grind and /or replace sidewalk panel in their community. If your firm is interested in bidding on this project, the scope of services are described below. The Scope of Services will include: Repair /grinding of sidewalk panels are defined as bad, moderate and low condition. 1. Repair /grinding on Crestview Way: a. Bad Condos- 1953/162 & 161,1981/138 &140, 1984/134 Villas: 1905, 1897 and 1885 b. Moderate Condos- 1997/126, 1937 Villas: none c. Low Condos - 2029/105, 2021/116 & 115. 2015/120 & 119, 1993/129 & 132, 1957/157, 1945/167 & 165 Villas: 2111, 2091, 1901, 1893 also near golf path /side of 1757 Morning Sun Lane and cracked sidewalk corner of Avian Court common Area. 2. Repair /grinding on Heritage Greens Drive: a. Bad & low - none b. Moderate Single Family Homes- 2220 side of home 3 squares, 2224 or 2226 (no address sign), 2236, 2260, between 2360 & 2358 3. Repair /grinding on Morning Sun Lane: a. Bad Golf Villas -1871 b. Moderate Golf Villas - 1717, 1673, between 2185 & 2179 c. Low Single Family Homes - Between 1995 -1999 and 1991 -1995 Golf Villas 1959, 1939 -1943 4. All of the following have almost identical cracks in the square near driveway, which may not be a problem but worth noting - 1753, 1741, 1729, 1705, 1677, 1657, 1648, 1633, 1629, 1625, 1605, 1601, 1859 and main entry sidewalk. Additional Bid Information: • Contractors are encouraged to inspect property to measure all of the repair areas before submitting their bids. • Heritage Greens Community is located at 2215 Heritage Greens Drive, Naples, FL 34119 All bids should be made out to the Heritage Greens CDD and include proof of insurance, references and be delivered to Severn Trent by July 12, 2013 before 3:00pm. Bids can be emailed, mailed or dropped off to: ted g1saSevernTrentMS.eom Severn Trent Management Service Attn: Tennitle Adams 5911 Country Lakes Drive, Fort Myers, FL 33905 Page 1 of 1 Correspondence should be addressed lo. Severn Trent Environmental Services, Inc. HERITAGE GREENS Community Development District Annual Operating Budget Fiscal Year 2014 Version 2 - Modified Tentative Budget (Updated 7/1/13 1PM) Prepared by: HERITAGE GREENS Community Development District Table of Contents Page # OPERATING BUDGET General Fund Summary of Revenues, Expenditures and Changes in Fund Balances .... ............................... 1 -2 BudgetNarrative .......................................................................... ............................... 3 -6 Exhibit A - Allocation of Fund Balances ............................................. ............................... 7 HERITAGE GREENS Community Development District General Fund Summary of Revenues, Expenditures and Changes in Fund Balances Fiscal Year 2014 Proposed Budget EXPENDITURES Administrative P/R -Board of Supervisors FICA Taxes ProfServ- Engineering ProfServ-Legal Services ProfServ-Mgmt Consulting Sery ProfServ- Property Appraiser Prof Serv-Special Assessment ProfServ-Web Site Development Auditing Services Communication - Telephone Postage and Freight Insurance - General Liability Printing and Binding Legal Advertising Misc -Bank Charges Misc - Assessmnt Collection Cost Misc- Contingency Office Supplies Annual District Filing Fee Total Administrative ADOPTED ACTUAL PROJECTED TOTAL ANNUAL - ACTUAL BUDGET THRU JULY- PROJECTED BUDGET ACCOUNT DESCRIPTION FY 2012 FY 2013 JUN -2013 SEP -2013 FY 2013 FY 2014 307 1,228 2,000 34,850 35,895 26,921 8,974 REVENUES 36,973 2,747 3,269 3,269 - 3,269 Interest - Investments $ 461 $ 400 $ 371 $ 124 $ 495 $ 400 Special Assmnts- Tax Collector 217,904 217,904 217,904 (0) 217,904 217,904 Special Assmnts- Discounts (7,886) (8,716) (7,883) - (7,883) (8,716) Gate Bar Code /Remotes 800 - 680 - 680 1,200 TOTAL REVENUES 211,279 209,588 211,072 124 211,196 210,788 EXPENDITURES Administrative P/R -Board of Supervisors FICA Taxes ProfServ- Engineering ProfServ-Legal Services ProfServ-Mgmt Consulting Sery ProfServ- Property Appraiser Prof Serv-Special Assessment ProfServ-Web Site Development Auditing Services Communication - Telephone Postage and Freight Insurance - General Liability Printing and Binding Legal Advertising Misc -Bank Charges Misc - Assessmnt Collection Cost Misc- Contingency Office Supplies Annual District Filing Fee Total Administrative Public Safety 1,200 600 1,800 2,400 - - 92 46 138 184 1,695 750 714 238 952 1,200 1,348 3,500 921 307 1,228 2,000 34,850 35,895 26,921 8,974 35,895 36,973 2,747 3,269 3,269 - 3,269 3,269 5,463 5,463 5,463 455 5,463 5,463 119 650 619 30 649 650 3,200 3,200 3,200 - 3,200 3,200 5 50 1 5 6 50 637 500 604 201 805 850 6,023 7,000 7,615 - 7,615 8,757 841 1,500 625 208 833 1,500 2,522 1,200 1B2 2,225 2,407 2;500 551 500 432 144 576 575 2,602 4,358 4,200 158 4,358 4,358 42 - - - - - 61 300 18 6 24 75 175 175 175 - 175 175 62,881 68,310 56,251 13,143 69,394 74,178 Public Safety Contracts - Security Services 46,735 48,000 35,044 12,488 47,532 48,000 Contracts -HVAC - 350 - - - 350 Contracts - Sheriff 1,020 3,000 1,700 567 2,267 3,000 Communication - Telephone 1,178 1,500 922 307 1,229 1,500 Electricity Entrance 1,901 2,200 1,365 455 1,82D 2,200 Utility - Water & Sewer 622 900 468 152 640 900 Lease - Carts 1,500 1,500 1,500 - 1,500 1,500 R &M -Gate 1,173 4,352 328 109 437 2,000 R &M- Gatehouse 999 1,500 203 68 271 1,500 Annual Operating Budget Fiscal Year 2014 Page 1 HERITAGE GREENS Community Development District General Fund Summary of Revenues, Expenditures and Changes in Fund Balances Fiscal Year 2014 Proposed Budget ACCOUNT DESCRIPTION Misc- Contingency Op Supplies - Transmitters Op Supplies - Gatehouse Cap Outlay - Equipment Total Public Safety Landscape Contracts - Landscape Contracts- Preserve Management Electricity - Irrigation R &M- Renewal and Replacement R &M- Canals R &M- Fountain R &M- Grounds R &M- Irrigation R &M- Preserves Misc- Special Projects Total Landscape ADOPTED ACTUAL BUDGET FY 2012 FY 2013 ACTUAL PROJECTED TOTAL ANNUAL THRU JULY- PROJECTED BUDGET JUN -2013 SEP -2013 FY 2013 FY 2014 631 - 631 - - - 589 196 785 800 167 250 472 157 629 800 788 6,726 - - - 6,200 56,083 70,278 43,242 14,500 57,742 68,750 15,060 18,000 12,250 3,765 16,015 18,000 1,760 2,000 1,760 - 1 1,760 2,000 2,023 2,000 1,457 486 1,943 2,200 - 1,500 - - - 1,DD0 2,590 2,600 1,295 - 1,295 2,6DD 2,427 900 2,322 375 2,697 2,7DD 3,960 8,500 45 15 60 4,000 972 2,500 220 73 293 1,500 - 500 - - - 100 6,465 4,000 5,544 5,294 10,838 7,000 35,257 42,500 24,893 10,008 34,901 41,100 Road and Street Facilities 43,246 68,022 (39,997) 28,025 - FUND BALANCE, BEGINNING 88,812 132,D58 132,058 - 132,058 160,083 FUND BALANCE, ENDING Electricity - Streetlighting 8,581 11,000 7,050 2,350 9,400 11,000 R &M- Drainage - 2,500 11,254 - 11,254 2,500 R &M -Roads & Alleyways 2,975 2,000 360 120 480 2,000 R &M- Sidewalks 1,500 1,750 - - - 3,000 Traffic Signage Rehabilitation 756 1,250 1,260 Reserve - Roadways - 10,000 - - - 7,000 Total Road and Street Facilities 13,812 28,500 18,664 2,470 21,134 26,760 TOTAL EXPENDITURES 168,033 209,588 143,050 40,120 183,170 210,788 Excess (deficiency) of revenues Over (under) expenditures 43,246 - 68,022 (39,997) 28,025 - Net change in fund balance 43,246 68,022 (39,997) 28,025 - FUND BALANCE, BEGINNING 88,812 132,D58 132,058 - 132,058 160,083 FUND BALANCE, ENDING $ 132,058 $ 132,058 $ 200,080 $ 39,997 $ 160,083 $ 160,083 FY 2013 FY2014 Gross Assessments 217,904 217,904 Assessable Units 527 527 Gross Assessments Per Unit $ 413.48 $ 413.48 Annual Operating Budget Fiscal Year 2014 Page 2 Heritage Greens Community Development District General Fund Budget Narrative Fiscal Year 2014 REVENUES Interest Income (Investments) The District will have all excess funds invested with the CDs or Money Market Accts. The amount Is based upon the estimated average balance of funds available during the Fiscal Year. Special Assessment - On Roll 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 for the Fiscal Year. Special Assessment — Discount 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 sells Gate Remote Clickers to residents of the District. EXPENDITURES Expenditures - Administrative PIR — Board of Supervisors 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 plus payroll taxes. The amount for the Fiscal Year is based upon all Supervisors attending the meetings. Ennineerina Fees The District's engineer will be providing general engineering services to the District, i.e. attendance and preparation for monthly board meetings, review invoices, etc. Legal Services The District's legal counsel will be providing general legal services to the District, i.e. attendance and preparation for monthly meetings, review operating and maintenance contracts, etc. Fees are based on prior year legal expenses. Management Consultina Services The District receives Management, Accounting and Administrative services as part of a Management Agreement with Severn Trent Management Services, Inc. The amount budgeted is the same as last year. Property Appraiser The Property Appraiser provides the District with a listing of the legal description of each property parcel within the District boundaries, and the names and addresses of the owners of such property. The District reimburses the Property Appraiser for necessary administrative costs incurred to provide this service. Per the Florida Statutes, administrative costs shall include, but not be limited to, those costs associated with personnel, forms, supplies, data processing, postage, and programming. The FY2014 budget for property appraiser costs was based on 1.5% of gross assessments. Special Assessment The District's Collection Agent will be providing financials services which include the collection of prepaid assessments, maintenance of District's assessment roll and levying the annual operating and maintenance assessments. Annual Operating Budget Fiscal Year 2014 Page 3 Heritage Greens Community Development District General Fund Budget Narrative Fiscal Year 2014 Expenditures — Administrative (Continued) Web Site Development The District incurs fees as they relate to the development and ongoing maintenance of its own website. Auditina Services The District is required annually to conduct an audit of its financial records by an Independent Certified Public Accounting Firm. The amount budgeted is the same as last year. Comm unication- Telephon e Telephone and fax machine expenses for administrative functions. Postage & Delivery Mailing of agenda packages, overnight deliveries, correspondence, etc. Insurance — General Liability The District will incur expenditures for public officials' liability insurance for the Board & Staff. FY14 has a proposed increase of 15 %. Printing & Binding Printing and Binding agenda packages for board meetings, printing of computerized checks, stationary, envelopes, etc. Leaal Advertising The District is required to advertise various notices for monthly Board meetings, public hearings, etc in a newspaper of general circulation. The amount budgeted for FY14 reflects last year's expenditures. Misc — Bank Charges Bank - charges that incurred during the year. Misc - Assessment Collection Fee This represents 2.0% Collier County Tax Collector Fees for services rendered in assessing and collecting 2014 Assessment Roll. Office Supplies Miscellaneous office supplies related to the preparation of agenda packets. Annual District Filina Fee The District is required to pay an annual fee to the Department of Community Affairs for $175. Expenditures - Public Safety Contracts — Security Services The District has contracted with Kent Security to have a security officer on duty at the front gate for a set period of time to check guest coming into the community and tour the property to check for any problems that may need to be addressed. The amount budgeted is the same as last year. Contracts — HVAC To service the air conditioning unit at the guardhouse. Annual Operating Budget Fiscal Year 2014 Page 4 Heritage Greens Community Development District Budget Narrative Fiscal Year 2014 General Fund Expenditures — Public Safety (Continued) Contracts — Sheriff This includes the agreement between the District and the Collier County Sheriffs department to patrol and enforce traffic laws over the roads the District is responsible for. The amount budgeted is the same as last year. Communication — Telephone This includes any telephone or fax usage for the guardhouse to allow the security officer to be able to communicate with management and residents. This also allows the gate system to be operable when there is no security officer present. Electricity — Entrance Electricity usage for the guardhouse. Costs are based on historical expenses incurred with Florida power & Light (FPL). Utilities — Water & Sewer Any cost associated with the water and sewer used at the guardhouse. Lease — Cants The District leases a golf cart for $750 every six months. The guard- on-duty uses it to do community patrol and to lock and unlock the community center. R&M — Gates This represents any repairs or maintenance that may need to be done to the gates. Op Supplies — Transmitters Cost associated with supplying transmitters to residents for operation of the gate. R&M — Gatehouse Cost associated with any normal repairs and maintenance of the guardhouse along with the cost incurred with Collier County Utilities to run the tele-entry system. OR Supplies- Gatehouse Costs associated with any supplies purchased for use within the guardhouse. Capital Outlay— Equipment Any capital items needed to improve security within the District. Expenditures - Landscape Contracts — Landscape The District is responsible for cutting all CDD property which are common areas which includes the entry way and guardhouse. Contracts — Preserve Maintenance The District has contracted with Uplands, LLC for the maintenance of the preserves. Currently treatments are on a semi - annual basis. Electricity — Irrigation Any electricity cost incurred to run the irrigation system as well as the fountain that is owned by the District. Armed Operating Budget Fiscal Year 2014 Page 5 Heritage Greens Community Development District Budget Narrative Fiscal Year 2014 General Fund Expenditures — Landscape (Continued) R &M — Renewal and Replecement This line item includes costs associated with renewing or replacing plant material on CDD property. Additionally, various repair and maintenance costs incurred as needed. R &M — Canals The District is responsible for maintaining the canal banks of high weeds and must cut them several times per year or be subject to property maintenance code violations. R &M — Fountains This is to include any repairs or maintenance that need to be addressed to make sure that the fountains the District is responsible are in proper working order. The amount budgeted for FYI reflects last year's expenditures. R &M —Grounds Funding if needed for the District to apply mulch and pesticides to all CDD property identified as common areas. R&M — Irrigation Cost associated with the inigation system through out the District. R&M — Preserves The District is responsible for having the preserves treated for invasive plants on an annual basis. Misc — Special Projects This is a contingency in case the District is to incur costs relating to any special projects that are felt to be needed and identified by the Board of Supervisors. Expenditures - Road and Street Facilities Electricity — Streediahtina Street Lighting usage for District facilities and assets. Costs are based on historical expenses occurred incurred with Florida power & Light (FPL). R &M — Drainaae The District is responsible for making any repairs to the storm drainage infrastructure. R &M — Roads & Alleyways This represents miscellaneous repairs of the roads and alleyways of the District R &M — Sidewalks Includes all costs associated with sidewalks within the District. R&M — Slane-te Any costs that are associated with any roadway signage the District may incur. Reserves — Roads Designated Funds set aside for future road improvements. Annual Operating Budget Fiscal Year 2014 Page 6 HERITAGE GREENS Community Development District General Fund Exhibit "A" Allocation of Fund Balances AVAILABLE FUNDS Amount Beginning Fund Balance - Fiscal Year 2014 $ 160,083 Net Change in Fund Balance - Fiscal Year 2014 - Reserves - Fiscal Year 2014 Additions 7,000 Total Funds Available (Estimated) - 9/30/2014 167,083 ALLOCATION OF AVAILABLE FUNDS Assigned Fund Balance Operating Reserve - First Quarter Operating Capital (1) 50,947 Reserves - Irrigation System 7,500 Reserves - Drainage 6,000 Reserves - Wall Painting 6,000 Reserves - Wall Replacement 12,786 Reserves - Fountain 5,500 Reserves - Signs 1,000 Reserves - Roads & Sidewalks 16,201 Reserves - Roads & Sidewalks -FY13 10,000 Reserves - Roads & Sidewalks-FY14 7,000 33,201 Subtotal 122,934 Total Allocation of Available Funds 122,934 Total Unassigned (undesignated) Cash $ 44,149 Notes V) Represents approximately 3 months of operating expenditures Annual Operating Budget Fiscal Year 2014 Page 7 8C Grau & Associates CERTIFIED PUBLIC ACCOUNTANTS June 25, 2013 Board of Supervisors Heritage Greens Community Development District 210 N University Drive, Suite 702 Coral Springs, FL 33071 2700 North Military Trail - Suite 350 Boca Raton, Florida 33431 (561) 994 -9299 • (800) 299 -4728 Fax (561) 994 -5823 www.graucpa.com . We are pleased to confirm our understanding of the services we are to provide Heritage Greens Community Development District, Collier County, Florida Cthe District") for the fiscal year ended September 30, 2013. We will audit the financial statements of the governmental activities, and each major fund, including the related notes to the financial statements, which collectively comprise the basic financial statements of Heritage Greens Community Development District as of and for fiscal year ended September 30, 2013. This letter serves to renew our agreement and establish the terms and fee for the 2013 audit. Accounting standards generally accepted in the United States of America provide for certain required supplementary information (RSI), such as management's discussion and analysis (MD &A), to supplement the District's basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. As part of our engagement, we will apply certain limited procedures to the District's RSI in accordance with auditing standards generally accepted in the United States of America. These limited procedures will consist of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We will 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, The following RSI is required by generally accepted accounting principles and will be subjected to certain limited procedures, but will not be audited: 1. Managemenfs discussion and analysis 2. Budgetary comparison schedule for the general fund Audit Objectives The objective of our audit is the expression of opinions as to whether your basic financial statements are fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles and to report on the fairness of additional information, if applicable, when considered in relation to the basic financial statements taken as a whole. Our audit will be conducted in accordance with auditing standards generally accepted in the United States of America and the standards for financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and will include tests of the accounting records of the District and other procedures we consider necessary to enable us to express such opinions. We cannot provide assurance that an unmodified opinion will be expressed. Circumstances may arise in which it is necessary for us to modify our opinion or add emphasis -of -matter paragraphs. If our opinion on the financial statements is other than unmodified, we will discuss the reasons with you in advance. If, for any reason, we are unable to complete the audit or are unable to form or have not formed an opinion, we may decline to express an opinion or to issue a report as a result of this engagement. We will also provide a report (that does not include an opinion) on internal control related to the financial statements and compliance with the provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a material effect on the financial statements as required by Government Auditing Standards. The report on internal control and compliance will include a paragraph that states that the purpose of the report is solely to describe the scope of testing of internal control over financial reporting and compliance, and the result of that testing, and not to provide an opinion on the effectiveness of Internal control over financial reporting or on compliance, and that the report is an integral part of an audit performed in accordance with Government Auditing Standards in considering internal control over financial reporting and compliance. The paragraph will also state that the report is not suitable for any other purpose. If during our audit we become aware that the District is subject to an audit requirement that is not encompassed in the terms of this engagement, we will communicate to management and those charged with governance that an audit in accordance with U.S. generally accepted auditing standards and the standards for financial audits contained in Government Auditing Standards may not satisfy the relevant legal, regulatory, or contractual requirements. Heritage Greens Community Development District Page 2 Management Responsibilities Management is responsible for the basic financial statements and all accompanying information as well as all representations contained therein. As part of the audit, we will assist with preparation of your financial statements and related notes. You will be required to acknowledge in the written representation letter our assistance with the preparation of the financial statements and that you have reviewed and approved the financial statements and related notes prior to their issuance and have accepted responsibility for them. You agree to assume all management responsibilities for any nonaudit services we provide; oversee the services by designating an individual, preferably from senior management, who possesses suitable skill, knowledge, or experience; evaluate the adequacy and results of the services; and accept responsibility for them. Management is responsible for establishing and maintaining effective internal controls, including evaluating and monitoring ongoing activities, to help ensure that appropriate goals and objectives are met; for the selection and application of accounting principles; and for the preparation and fair presentation of the financial statements in conformity with U.S. generally accepted accounting principles. Management is also responsible for making all financial records and related information available to us and for ensuring that management is reliable and financial Infonnation is reliable and properly recorded. You are also responsible for providing us with (1) access to all information of which you are aware that is relevant to the preparation and fair presentation of the financial statements, (2) additional information that we may request for the purpose of the audit, and (3) unrestricted access to persons within the government from whom we determine it necessary to obtain audit evidence. Your responsibilities include adjusting the financial statements to correct material misstatements and for confirming to us in the written representation letter that the effects of any uncorrected misstatements aggregated by us during the current engagement and pertaining to the latest period presented are immaterial, both Individually and in the aggregate, to the financial statements taken as a whole. As part of our engagement, we may propose standard, adjusting, or correcting journal entries to your financial statements. You are responsible for reviewing the entries and understanding the nature of any proposed entries and the impact they have on the financial statements. You are responsible for the design and implementation of programs and controls to prevent and detect fraud, and for informing us about all known or suspected fraud affecting the government involving (1) management, (2) employees who have significant roles in internal oontrol, and (3) others where the fraud could have a material effect on the financial statements. Your responsibilities include Informing us of your knowledge of any allegations of fraud or suspected fraud affecting the government received in communications from employees, former employees, grantors, regulators, or others. In addition, you are responsible for identifying and ensuring that the entity complies with applicable laws, regulations, contracts, agreements, and grants for taking timely and appropriate steps to remedy any fraud, violations of contracts or grant agreements, or abuse that we may report. Management is responsible for establishing and maintaining a process for tracking the status of audit findings and recommendations. Management is also responsible for identifying for us previous financial audits, attestation engagements, performance audits or other studies related to the objectives discussed in the Audit Objectives section of this letter. This responsibility includes relaying to us corrective actions taken to address significant findings and recommendations resulting from those audits, attestation engagements, performance audits, or other studies. You are also responsible for providing management's views on our current findings, conclusions, and recommendations, as well as your planned corrective actions, for the report, and the timing and format for providing that information. With regard to using the audit's report, you understand that you must obtain our prior written consent to reproduce or use our report in bond offering official statements or other documents. With regard to the electronic dissemination of audited financial statements, including financial statements published electronically on your website, you understand that electronic sites are a means to distribute information and, therefore, we are not required to read the information contained in these sites or to consider the consistency of other information in the electronic site with the original document. Audit Procedures — General An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; therefore, our audit will involve judgment about the number of transactions to be examined and the areas to be tested. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We will plan and perform the audit to obtain reasonable rather than absolute assurance about whether the financial statements are free of material misstatement, whether from (1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or (4) violations of laws or governmental regulations that are attribute Heritage Greens Community Development District Page 3 able to the entity or to acts by management or employees acting on behalf of the entity. Because the determination of abuse is subjective, Government Auditing Standards do not expect auditors to provide reasonable assurance of detecting abuse. Because of the inherent limitations of an audit, combined with the inherent limitations of internal control, and because we will not perform a detailed examination of all transactions, there is a risk that material misstatements may exist and not be detected by us, even though the audit is properly planned and performed in accordance with U.S. generally accepted auditing standards and Government Auditing Standards. In addition, an audit is not designed to detect immaterial misstatements or violations of laws or governmental regulations that do not have a direct and material effect on the financial statements. Our responsibility as auditors is limited to the period covered by our audit and does not extend to later periods for which we are not engaged as auditors. Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, and may include tests of the physical existence of inventories, and direct confirmation of receivables and certain other assets and liabilities by correspondence with selected individuals, funding sources, creditors, and financial institutions. We will request written representations from your attorneys as part of the engagement, and they may bill you for responding to this inquiry. At the conclusion of our audit, we will also require certain written representations from you about the financial statements and related matters. Audit Procedures; -4nternal Controls Our audit will include obtaining an understanding of the District and its environment, including internal control, sufficient to assess the risks of material misstatement of the financial statements and to design the nature, timing, and extent of further audit procedures. Tests of controls may be performed to test the effectiveness of certain controls that we consider relevant to preventing and detecting errors and fraud that are material to the financial statements and to preventing and detecting misstatements resulting from illegal acts and other noncompliance matters that have a direct and material effect on the financial statements. Our tests, if performed, will be less In scope than would be necessary to render an opinion on internal control and, accordingly, no opinion will be expressed in our report on internal control issued pursuant to Government Auditing Standards. An audit is not designed to provide assurance on internal control or to identify significant deficiencies or material weaknesses. However, during the audit, we will communicate to management and those charged with governance internal control related matters that are required to be communicated under AICPA professional standards and Government Auditing Standards. Audit Procedures — Compliance As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we will perform tests of the District's compliance with the provisions of applicable laws, regulations, contracts, agreements, and grants, if applicable. However, the objective of our audit will not be to provide an opinion on overall compliance and we will not express such an opinion in our report on compliance issued pursuant to Government Auditing Standards. Audit Administration, Fees, and Other We understand that your employees will prepare all confirmations we request and will locate any documents selected by us for testing. The audit documentation for this engagement is the property of Grau & Associates and constitutes confidential information. However, pursuant to authority given by law or regulation, we may be requested to make certain audit documentation available to a cognizant or oversight agency for audit or its designee, a federal agency providing direct or indirect funding, or the U,S. Government Accountability Office for purposes of a quality review of the audit, to resolve audit findings, or to carry out oversight responsibilities. We will notify you of any such request. If requested, access to such audit documentation will be provided under the supervision of Grau & Associates personnel. Furthermore, upon request, we may provide copies of selected audit documentation to the aforementioned parties. These parties may intend, or decide, to distribute the copies or information contained therein to others, including other governmental agencies. Notwithstanding the foregoing, the parties acknowledge that various documents reviewed or produced during the conduct of the audit may be public records under Florida law. The District agrees to notify Grau & Associates of any public record request it receives that involves audit documentation. Our fee for these services will not exceed $3,200 for the September 30, 2013 audit. The fee for each annual renewal will be agreed upon separately. The audit documentation for this engagement will be retained for a minimum of five years after the report release date. If we are aware that a federal awarding agency or auditee is contesting an audit finding, we will contact the party(ies) contesting the audit finding for guidance prior to destroying the audit documentation_ Our invoices for these fees will be rendered each month as work progresses and are payable on presentation. Invoices will be submitted in sufficient detail to demonstrate compliance with the terms of this agreement. In Heritage Greens Community Development District Page 4 accordance with our firm policies, work may be suspended if your account becomes 60 days or more overdue and may not be resumed until your account Is paid In full. If we elect to terminate our services for nonpayment, our engagement will be deemed to have been completed upon written notification of termination, even if we have not completed our report. You will be obligated to compensate us for all time expended and to reimburse us for all out -cf- pocket costs through the date of termination. The above fee is based on anticipated cooperation from your personnel and the assumption that unexpected circumstances will not be encountered during the audit. If significant additional time is necessary, we will discuss it with you and arrive at a new fee estimate. This agreement is automatically renewed each year thereafter subject to the mutual agreement by both parties to all terms and fees. The fee for each annual renewal will be agreed upon separately. We will provide you with a copy of our most recent external peer review report and any letter of comment, and any subsequent peer review reports and letters of comment received during the period of the contract. Our 2010 peer review report accompanies this letter. We appreciate the opportunity to be of service to Heritage Greens Community Development District and believe this letter accurately summarizes the significant terms of our engagement. If you have any questions, please let us know. If you agree with the terms of our engagement as described in this letter, please sign the enclosed copy and return it to us. Very truly yours, Grau & Associates ',Antonio J. Grau RESPONSE: This letter correctly sets forth the understanding of Heritage Greens Community Development District. By: Title: Date: L Grau & Associates CERTIFIED PUBLIC ACCOUNTANTS June 25, 2013 Board of Supervisors Heritage Greens Community Development District 210 N University Drive, Suite 702 Coral Springs, FL 33071 2700 North Military Trail • Suite 350 Boca Raton, Florida 33431 (561) 994 -9299 ■ (800) 299 -4728 Fax (561) 994 -5823 www.graucpa.com . We are pleased to confirm our understanding of the services we are to provide Heritage Greens Community Development District, Collier County, Florida ( "the District') for the fiscal year ended September 30, 2013. We will audit the financial statements of the governmental activities, and each major fund, including the related notes to the financial statements, which collectively comprise the basic financial statements of Heritage Greens Community Development District as of and for fiscal year ended September 30, 2013. This letter serves to renew our agreement and establish the terms and fee for the 2013 audit. Accounting standards generally accepted in the United States of America provide for certain required supplementary information (RSI), such as managements discussion and analysis (MDBA), to supplement the District's basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. As part of our engagement, we will apply certain limited procedures to the.District's RSI in accordance with auditing standards generally accepted in the United States of America. These limited procedures will consist of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our Inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We will 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. The following RSI is required by generally accepted accounting principles and will be subjected to certain limited procedures, but will not be audited: 1. Management's discussion and analysis 2. Budgetary comparison schedule for the general fund Audit Objectives The objective of our audit is the expression of opinions as to whether your basic financial statements are fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles and to report on the fairness of additional information, if applicable, when considered in relation to the basic financial statements taken as a whole. Our audit will be conducted in accordance with auditing standards generally accepted in the United States of America and the standards for financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and will include tests of the accounting records of the District and other procedures we consider necessary to enable us to express such opinions. We cannot provide assurance that an unmodified opinion will be expressed. Circumstances may arise in which it is necessary for us to modify our opinion or add emphasis -of -matter paragraphs. If our opinion on the financial statements is other than unmodified, we will discuss the reasons with you in advance. If, for any reason, we are unable to complete the audit or are unable to form or have not formed an opinion, we may decline to express an opinion or to issue a report as a result of this engagement. We will also provide a report (that does not Include an opinion) on internal control related to the financial statements could have a material effect on the financial statements as required by Govemment Auditing Standards. The report on internal control and compliance will include a paragraph that states that the purpose of the report is solely to describe the scope of testing of internal control over financial reporting and compliance, and the result of that testing, and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance, and that the report is an integral part of an audit performed in accordance with Government Auditing Standards in considering internal control over financial reporting and compliance. The paragraph will also state that the report is not suitable for any other purpose. if during our audit we become aware that the District is subject to an audit requirement that is not encompassed in the terms of this engagement, we will communicate to management and those charged with governance that an audit in accordance with U.S. generally accepted auditing standards and the standards for financial audits contained in Government Auditing Standards may not satisfy the relevant legal, regulatory, or contractual requirements. Heritage Greens Community Development District Page 2 Management Responsibilities Management is responsible for the basic financial statements and all accompanying information as well as all representations contained therein. As part of the audit, we will assist with preparation of your financial statements and related notes. You will be required to acknowledge in the written representation letter our assistance with the preparation of the financial statements and that you have reviewed and approved the financial statements and related notes prior to their issuance and have accepted responsibility for them. You agree to assume all management responsibilities for any nonaudit services we provide; oversee the services by designating an individual, preferably from senior management, who possesses suitable skill, knowledge, or experience; evaluate the adequacy and results of the services; and accept responsibility for them. Management is responsible for establishing and maintaining effective internal controls, including evaluating and monitoring ongoing activities, to help ensure that appropriate goals and objectives are met; for the selection and application of accounting principles; and for the preparation and fair presentation of the financial statements in conformity with U.S. generally accepted accounting principles. Management is also responsible for making all financial records and related information available to us and for ensuring that management is reliable and financial information is reliable and properly recorded. You are also responsible for providing us with (1) access to all information of which you are aware that is relevant to the preparation and fair presentation of the financial statements, (2) additional information that we may request for the purpose of the audit, and (3) unrestricted access to persons within the government from whom we determine it necessary to obtain audit evidence. Your responsibilities include adjusting the financial statements to correct material misstatements and for confirming to us in the written representation letter that the effects of any uncorrected misstatements aggregated by us during the current engagement and pertaining to the latest period presented are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. As part of our engagement, we may propose standard, adjusting, or correcting journal entries to your financial statements. You are responsible for reviewing the entries and understanding the nature of any proposed entries and the impact they have on the financial statements. You are responsible for the design and implementation of programs and controls to prevent and detect fraud, and for informing us about all known or suspected fraud affecting the government involving (1) management, (2) employees who have significant roles in internal control, and (3) others where the fraud could have a material effect on the financial statements. Your responsibilities include informing us of your knowledge of any allegations of fraud or suspected fraud affecting the government received in communications from employees, former employees, grantors, regulators, or others. In addition, you are responsible for identifying and ensuring that the entity complies with applicable laws, regulations, contracts, agreements, and grants for taking timely and appropriate steps to remedy any fraud, violations of contracts or grant agreements, or abuse that we may report. Management is responsible for establishing and maintaining a process for tracking the status of audit findings and recommendations. Management is also responsible for identifying for us previous financial audits, attestation engagements, performance audits or other studies related to the objectives discussed in the Audit Objectives section of this letter. This responsibility includes relaying to us corrective actions taken to address significant findings and recommendations resulting from those audits, attestation engagements, performance audits, or other studies. You are also responsible for providing management's views on our current findings, conclusions, and recommendations, as well as your planned corrective actions, for the report, and the timing and format for providing that information. With regard to using the audit's report, you understand that you must obtain our prior written consent to reproduce or use our report in bond offering official statements or other documents. With regard to the electronic dissemination of audited financial statements, including financial statements published electronically on your website, you understand that electronic sites are a means to distribute information and, therefore, we are not required to read the information contained in these sites or to consider the consistency of other information in the electronic site with the original document. Audit Procedures — General An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; therefore, our audit will involve judgment about the number of transactions to be examined and the areas to be tested. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We will plan and perform the audit to obtain reasonable rather than absolute assurance about whether the financial statements are free of material misstatement, whether from (1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or (4) violations of laws or governmental regulations that are attribute Heritage Greens Community Development District Page 3 able to the entity or to ads by management or employees acting on behalf of the entity. Because the determination of abuse is subjective, Government Auditing Standards do not expect auditors to provide reasonable assurance of detecting abuse. Because of the inherent limitations of an audit, combined with the inherent limitations of internal control, and because we will not perform a detailed examination of all transactions, there is a risk that material misstatements may exist and not be detected by us, even though the audit is property planned and performed in accordance with U.S. generally accepted auditing standards and Government Auditing Standards. In addition, an audit is not designed to detect immaterial misstatements or violations of laws or governmental regulations that do not have a direct and material effect on the financial statements. Our responsibility as auditors is limited to the period covered by our audit and does not extend to later periods for which we are not engaged as auditors. Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, and may include tests of the physical existence of inventories, and direct confirmation of receivables and certain other assets and liabilities by correspondence with selected individuals, funding sources, creditors, and financial institutions. We will request written representations from your attorneys as part of the engagement, and they may bill you for responding to this inquiry. At the conclusion of our audit, we will also require certain written representations from you about the financial statements and related matters. Audit Procedures — Internal Controls Our audit will include obtaining an understanding of the District and its environment, Including Internal control, sufficient to assess the risks of material misstatement of the financial statements and to design the nature, timing, and extent of further audit procedures. Tests of controls may be performed to test the effectiveness of certain controls that we consider relevant to preventing and detecting errors and fraud that are material to the financial statements and to preventing and detecting misstatements resulting from illegal acts and other noncompliance matters that have a direct and material effect on the financial statements. Our tests, if performed, will be less in scope than would be necessary to render an opinion on internal control and, accordingly, no opinion will be expressed in our report on internal control issued pursuant to Government Auditing Standards. An audit is not designed to provide assurance on internal control or to Identify significant deficiencies or material weaknesses. However, during the audit, we will communicate to management and those charged with governance internal control related matters that are required to be communicated under AICPA professional standards and Government Auditing Standards. Audit Procedures — Compliance As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we will perform tests of the District's compliance with the provisions of applicable laws, regulations, contracts, agreements, and grants, if applicable. However, the objective of our audit will not be to provide an opinion on overall compliance and we will not express such an opinion in our report on compliance issued pursuant to Government Auditing Standards. Audit Administration, Fees, and Other We understand that your employees will prepare all confirmations we request and will locate any documents selected by us for testing. The audit documentation for this engagement is the property of Grau & Associates and constitutes confidential information. However, pursuant to authority given by law or regulation, we may be requested to make certain audit documentation available to a cognizant or oversight agency for audit or its designee, a federal agency providing direct or indirect funding, or the U.S. Government Accountability Office for purposes of a quality review of the audit, to resolve audit findings, or to carry out oversight responsibilities. We will notify you of any such request. If requested, access to such audit documentation will be provided under the supervision of Grau & Associates personnel. Furthermore, upon request, we may provide copies of selected audit documentation to the aforementioned parties. These parties may intend, or decide, to distribute the copies or information contained therein to others, including other governmental agencies. Notwithstanding the foregoing, the parties acknowledge that various documents reviewed or produced during the conduct of the audit may be public records under Florida law. The District agrees to notify Grau & Associates of any public record request it receives that involves audit documentation. Our fee for these services will not exceed $3,200 for the September 30, 2013 audit. The fee for each annual renewal will be agreed upon separately. The audit documentation for this engagement will be retained for a minimum of five years after the report release date. If we are aware that a federal awarding agency or auditee is contesting an audit finding, we will contact the party(ies) contesting the audit finding for guidance prior to destroying the audit documentation. Our Invoices for these fees will be rendered each month as work progresses and are payable on presentation. Invoices will be submitted in sufficient detail to demonstrate compliance with the terms of this agreement. In April 16, 2013 Ms Rosemary Hodza Heritage Greens CDD Severn -Trent Services 210 N. Univeristy Drive Coral Springs, FL 33071 Dear Ms Hodza, JENNIFER J. EDWARDS SUPERVISOR OF ELECTIONS In compliance with Florida Statute 190.06, this notice is to inform you that the official records of the Collier Count Supervisor of Elections show the number of registered electors residing in Heritage Greens CDD upon April 15' 2013 was 638 . Should you have questions regarding election services for the district please feel free to contact me. Sincerely, Va§pe n r 3 Qualifying Officer Collier County Supervisor of Elections (239) 252 -8501 APR 2 9 2013 DaveCarpenter@colliergov.net .. h Onrw ill Rev Dr Martin Luther King Jr Building • Collier Government Complex • 3295 Tamiami Trl E i�� CF Naples FL 34112 -5758 "t`ro'" Telephone: 239/252 -8450 • Fax: 239/774 -9468 Heritage Greens Community Development District Financial Report June 30, 2013 Prepared by HERITAGE GREENS Community Development District Table of Contents FINANCIAL STATEMENTS Balance Sheet ........................... ............................... Page 1 Statement of Revenues, Expenditures and Changes in Fund Balances General Fund SUPPORTING SCHEDULES Non -Ad Valorem Special Assessments Cash & Investment Report SunTrust Bank Reconciliation Check Register ...................... ............................... Page 2 - 3 ........................... ............................... Page 4 ........................... ............................... Page 5 ........................... ............................... Page 6 - 7 ..................... ............................... Page 8 - 9 HERITAGE GREENS Community Development District Financial Statements (Unaudited) June 30, 2013 Heritage Greens Community Development District Balance Sheet June 30, 2013 GENERAL ACCOUNT DESCRIPTION FUND ASSETS Governmental Fund Cash In Bank $ 28,916 Investments: Money Market Account 175,874 SBA Account 387 SBA Account - Restricted 240 TOTAL ASSETS $ 205,417 LIABILITIES Accounts Payable $ 3,655 Accrued Expenses 1,682 TOTAL LIABILITIES 5,337 FUND BALANCES Assigned b.- Operating Reserve 30,000 Irrigation System Reserves 7,500 Drainage Reserves 6,000 Wall Painting Reserves 6,000 Wall Replacement Reserves 12,786 Fountain Reserves 5,500 Signs Reserves 1,000 Roads & Sidewalks Reserves 16,201 Unessfgned.• 115,093 ITOTAL FUND BALANCES $ 200,080 TOTAL LIABILITIES & FUND BALANCES $ 205,417 Prepared by. Report Date: 7012013 8avern Trent Management 3mvicea Page 1 HERITAGE GREENS Genera! Fund Community Development District Statement of Revenues, Expenditures and Changes in Fund Balances For the Period Ending June 30, 2013 TOTAL REVENUES ANNUAL 209,488 211,072 1,584 3,078 ADOPTED YEAR TO DATEYEAR TO DATE VARIANCE (S) JUNE -13 ACCOUNT DESCRIPTION BUDGET BUDGET ACTUAL FAV(UNFAV) ACTUAL REVENUES Administrative Interest - Investments $ 400 $ 300 $ 371 $ 71 $ 55 Special Assmnts- Tax Collector 217,904 217,904 217,904 - 2,694 Special Assmnts- Discounts (8,716) (8,716) (7,883) 833 87 Gate Bar Code /Remotes - - 680 680 40 TOTAL REVENUES 209,588 209,488 211,072 1,584 3,078 EXPENDITURES Administrative P/R -Board of Supervisors - - 1,200 (1,200) - FICA Taxes - - 92 (92) - ProfServ- Engineering 750 563 714 (151) - ProfServ-Legal Services 3,500 2,628 921 1,707 220 ProfServ-Mgmt Consulting Sery 35,895 26,922 26,921 1 2,991 ProfServ- Property Appraiser 3,269 3,269 3,269 - - ProfServ- Special Assessment 5,463 5,463 5,463 - - ProfServ-Web Site Development 650 1 650 619 31 - Auditing Services 3,200 3,200 3,200 - Communication - Telephone 50 38 1 37 - Postage and Freight 500 378 604 (226) 73 Insurance - General Liability 7,000 7,000 7,615 (615) - Printing and Binding 1,500 1,125 625 500 79 Legal Advertising 1,200 900 182 718 - Misc -Bank Charges 500 378 432 (54) 44 Misc - Assessmnt Collection Cost 4,358 4,358 4,200 158 60 Office Supplies 300 225 18 207 - Annual District Filing Fee 175 175 175 - - Total Administrative 68,310 57,272 56,251 1,021 3,467 Public Safety Contracts- Security Services 48,000 36,000 35,044 956 4,205 Contracts -HVAC 350 261 - 261 - Contracts - Sheriff 3,000 2,250 1,700 550 255 Communication - Telephone 1,500 1,125 922 203 102 Electricity - Entrance 2,200 1,650 1,365 265 132 Utility - Water & Sewer 900 675 4B8 187 51 Report Date: 7/1 /2013 Prepared by: Severn Trent Management Services Page 2 HERITAGE GREENS General Fund Community Development District Statement of Revenues, Expenditures and Changes In Fund Balances For the Period Ending June 30, 2013 ANNUAL ADOPTED YEAR TO DATEYEAR TO DATE VARIANCE (S) JUNE -13 ACCOUNT DESCRIPTION BUDGET BUDGET ACTUAL FAV(UNFAV) ACTUAL Lease - Carts 1,500 1,500 1,500 - 750 R &M -Gate 4,352 3,264 328 2,936 - R &M- Gatehouse 1,500 1,125 203 922 - Misc- Contingency - - 631 (631) - Op Supplies - Transmitters - - 589 (589) - Op Supplies - Gatehouse 250 189 472 (283) - Cap Outlay - Equipment 6,726 5,044 - 5,044 - Total Public Safety 70,278 53,083 43,242 9,841 5,495 Landscape Contracts- Landscape 18,000 13,500 12,250 1,250 1,255 Contracts- Preserve Management 2,000 2,000 1,760 240 880 Electricity - Irrigation 2,000 1,503 1,457 46 150 R &M- Renewal and Replacement 1,500 1,125 - 1,125 - R&M- Canals 2,600 1,300 1,295 5 - R&M- Fountain 900 675 2,322 (1,647) 592 R &M- Grounds 8,500 6,375 45 6,330 - R &M- Irrigation 2,500 1,875 220 1,655 120 R &M- Preserves 500 375 - 375 - Misc - Special Projects 4,000 3,000 5,544 (2,544) - Totai Landscape 42,500 31,728 24,893 6,835 2,997 Road and Street Facilities Electricity - Streetlighting 11,000 8,250 7,050 1,200 832 R &M- Drainage 2,500 1,875 11,254 (9,379) - R &M -Roads & Alleyways 2,000 1,503 360 1,143 - R &M- Sidewalks 1,750 1,314 - 1,314 Traffic Signage Rehabilitation 1,250 938 938 Reserve - Roadways 10,000 10,000 - 10,000 - Total Road &Street Facilities 28,500 23,880 18,664 5,216 832 TOTAL EXPENDITURES 209,588 165,963 143,050 22,913 12,791 Net change in fund balance $ - $ 43,525 $ 68,022 $ 24,497 $ (9,715) FUND BAL, BEGINNING (OCT 1, 2012) 132,056 132,058 132,058 FUND BALANCE, ENDING $ 132,058 $ 175,583 $ 200,080 Report Date: 7/1/2013 Prepared by: Severn Trent Management Services Page 3 HERITAGE GREENS Community Development District Supporting Schedules Jame 30, 2013 HERITAGE GREENS Community Development District Non -Ad Valorem Special Assessments Collier County Tax Collector - Monthly Collection Report For the Fiscal Year ending September 2013 Discount / Gross Date Net Amount (Penalties) Collection Amount Received Received Amount Costs Received Assessments Levied FY 2013 $ 217,904 I Allocation % 100% 11/07/12 $ 1,247.06 $ 71.30 $ 25.45 $ 1,343.81 11/14/12 $ 23,340.07 $ 992.40 $ 476.33 $ 24,808.80 11/29/12 $ 44,346.14 $ 1,885.56 $ 905.02 $ 47,136.72 12113/12 $ 109,729.78 $ 4,632.20 $ 2,239.38 $ 116,601.36 01/04/13 $ 4,520.17 $ 142.60 $ 92.25 $ 4,755.02 01/31/13 $ 10,071.56 $ 266.64 $ 205.54 $ 10,543.74 03/06/13 $ 1,203.49 $ 12.39 $ 24.56 $ 1,240.44 04/10/13 $ 2,427.21 $ 4.13 $ 49.54 $ 2,480.88 04/30/13 $ 6,013.31 $ (37.20) $ 122.72 $ 6,098.83 06/04/13 $ 417.36 $ (12.40) $ 8.52 $ 413.48 06/21/13 $ 2,504.17 $ (74.40) $ 51.11 $ 2,480.88 TOTAL $ 205,820 $ 7,883 $ 4,200 $ 217,904 % Collected 100.00% TOTAL OUTSTANDING $ 0 Report Date: 7/1/2013 Page 4 HERITAGE GREENS All Funds Community Development District Cash and Investment Report June 30, 2013 General Fund Maturity )ftw Balance Account Name Checking Account - Operating Bank Name SunTrust Bank Checking Account - Operating Bank United Operating Acct SBA Operating Acct (Restricted) SBA Money Market Account Bank United Investment Tvoe Maturity )ftw Balance n/a Na 0.10% $27,916 n/a n/a 0.00% $1,000 n/a n/a 0.20% $387 n/a n/a 0.00% $240 Business MMA n/a 0.35% $175,874 Total $205,417 Report Date: 7/1/2013 Prepared By: Sevem Trent Management Services Page 5 Heritage Greens CDD Bank Reconciliation Bank Account No. 9920 Statement No. 06.13 Statement Date 06/30/13 OIL Balance (S) 27,915.57 OIL Balance 27,915.57 Positive Adjustments 0.00 Subtotal 27,915.57 Negative Adjustments 0.00 Ending OIL Balance 27,915.57 Difference 0.00 Postina Date Document Type Document No. Description Checks Statement Balance 28,271.30 Outstanding Deposits 0.00 Subtotal 28,271.30 Outstanding Checks 355.73 Total Differences 0.00 Ending Balance 27,915.57 0528113 Payment 2655 SEVERN TRENT ENVIRONMENTAL SERVICES 0529113 Payment 2656 FEDEX 06/04113 Payment 2658 AQUATIC SYSTEMS 06/04/13 Payment 2659 CENTURY LINK 06/04/13 Payment 2660 FPL 06/04/13 Payment 2661 KENT OF NAPLES 06/04/13 Payment 2662 PJM LAWN SERVICE D6 04113 Payment 2663 RAYMENT POOLS LLC 06/04/13 Payment 2664 UPLANDS LLC 06/13/13 Payment 2665 CALFLAND TRADERS INC 06/13/13 Payment 2666 COLLIER COUNTY SHERIFFS OFFICE 06/13113 Payment 2667 FEDEX 06/13/13 Payment 2668 VERTEX WATER FEATURES 0621/13 Payment 2669 COLLIER COUNTY UTILITY BILLING 0621113 Payment 2670 KENT OF NAPLES 0621113 Payment 2671 SEVERN TRENT ENVIRONMENTAL SERVICES 0626113 Payment 2675 KENT OF NAPLES TotalChecks ....................... 2,919.33 ............................... Deposits 06/04/13 ACH CREDIT COLLIER CTY:ASSMNTS RCVD THRU 5/23/13 06/20/13 ACH DEBIT SUNTRUST MONTHLY ANALYSIS FEE -MAY 2013 06121/13 ACH CREDIT COLLIER CTY:TAX CERT SALE THRU 6/4/13 05121113 DEP00056 Clicker Sales 06/30113 ACH CREDIT SUNTRUST INTEREST INCOMEJUNE 2013 Total Deposits . .. ....... .. .... ... ......... ... .......... ... . ..... .. . 3,599.30 3,599.30 0.00 8.31 8.31 0.00 150.00 150.00 0.00 102.26 102.26 0.00 1,035.79 1,035.79 0.00 958.00 958.00 0.00 1,479.95 1,479.95 0.00 75.00 75.00 0.00 880.00 880.00 0.00 750.00 750.00 0.00 127.50 127.50 0.00 16.62 16.62 0.00 167.02 167.02 0.00 50.78 50.78 0.00 892.00 892.00 0.00 3,117.93 3,117.93 0.00 892.00 892.00 0.00 14,302.46 14,302.46 0.00 417.36 417.36 0.00 -44.07 -44.07 0.00 2,504.17 2,504.17 0100 40.00 40.00 0.00 1.87 1.87 0.00 2,919.33 2,919.33 0.00 Page 6 Heritage Greens CDD Bank Reconciliation Pasting Cleared Date Document Tvoe Document No. DesarIpt10n Amount Amoun Difference Outstanding Checks 06!26/13 Payment 2672 COLEMAN, YOVANOVICH 220.00 0.00 220.00 06!26713 Payment 2673 COLLIER COUNTY SHERIFF'S OFFICE 127.50 0.00 127.50 06/26/13 Payment 2674 FEDEX 823 0.00 8.23 Total Outstanding Checks ... ... .... .... ... . .. .. . .. ... . .. ... ...... . . . ... . 355.73 Page 7 U O H E y o d m V m IM {Q � •' E E x � V) .- C W U O df Ni b9 W fA N ON 19 ^ b- H W W n f9 N rM m W � fH y OOi 1M(1�1 C'1 ID fpppO� f0 001 O O S VN M W O M 6 C4 S S 001 I N I N O N S N (� Cy7 ICl I N N N pNO In N v pppNO �O O N M OOi �O N O C � V) .- C W U O E E M 1Ep LL a r �' C 01 N�qu CO C N m C p Z F a N N v a .� c 2 � rr�^ w 9 O C ` w U J O w z FQ O LL O T U7 NNNNy V{ � LL h W U N ll �L LL U = N U07 �1 t�0 J pf O N M G U a _ _ U @ u�S a z U W U w c O v Q F° C7 [n w V }�} I V) .- W U O M LL m ° o w LL ce z V 2 U ? 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