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11/10/2015 Agenda G pt Naples Heritage Community Development Distri Board of Supervisors Peter J. Lombardi,Chairman Calvin Teag 8 : strict 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 Meeting Agenda November 10,2015—9:00 a.m. 1. Roll Call 2. Public Comment on Agenda Items 3. Approval of the Minutes of the May 5,2015 Meeting 4. Old Business A. Update on Storm Water System Maintenance B. Update on Davis Blvd. Landscape Project 5. New Business A. Consideration of First Amendment to the Management Advisory Services Agreement with Severn Trent Environmental Services,Inc. 6. Manager's Report A. Approval of Financial Statements B. Motion to Assign Fund Balance C. Amending General Fund FY 2015 Budget—Resolution 2016-1 D. Acceptance of Fiscal Year 2014 Audit E. Engagement Letter with Grau&Associates—FY 2015 Audit F. Field Manager's Report 7. Attorney's Report 8. Supervisors' Requests 9. Audience Comments 10. Adjournment The next meeting is scheduled for Tuesday,January 5,2016 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 Naples Heritage Storm Water Project Update-10/15/15 Dear Supervisor Gaynor, The Naples Heritage CDD Board sought bids for the repair recommendations following the May 2014 Stormwater Management System Inspection Report conducted by BZ Consulting, LLC.Three bids were obtained and the contract was awarded to Landshore Enterprises,LLC.The project was slated to begin April 27th and to be completed within two weeks,however,after an initial inspection of the project sites it became clear that the scope needed to expand somewhat.Additional work was approved by the Board at the May meeting for Landshore to complete. Landshore began in May and completed all work at the beginning of August after a series of inspections had been performed by Severn Trent.Landshore has been paid all of its agreed upon fees with the exception of$520.00 in retainage to repair asset F10 that could not be repaired with the rise in the water level.This work will be scheduled to be completed once the water recedes after the rainy season. The majority of the work involved repairing damage to the structures due to the effects of erosion. Many of the top concrete portions for the drainage culverts had become cracked over time and needed to be demolished and replaced.Other structures had developed erosion issues at the top or base and needed fill to be added and compacted to stabilize the structures.Numerous grates and control structures were cleaned to remove sediment buildup as well.Over thirty three different structures were addressed as a part of this project. Sample pictures have been provided so you may see the before and after results from the work that was performed.This type of work will be needed on a continual ongoing basis as we continue to fight the effects of erosion here in Southwest Florida.Please let me know if you have any questions. Sincerely, Justin Faircloth Justin Faircloth SEVERN Assistant District Manager TRENT 5911 Country Lakes Drive•Ft Myers,FL 33905 Sjustin.fairclothistservices.com S E R V I C E S C 245-7118 7118 ext.306•F(239)245-7120 Naples Heritage Storm Water Project Update-10/15/15 Asset#6:All holes were filled around the structure with concrete and compacted fill. 6/2/15 7/29/15 '; .' 'v , 0 —Is, ,... ...'' - ' ,4,,, y '',_ ,,y, ,,,,,,:.A ,"' -- `, ' � ` a r$' xr c: 1_ r+.a .+�} ,�gh::, F ki F H f S§ IWS g F Asset#10:Not completed due to high rising water.Funds were retained from this project for completion in FY 2016 when the water recedes once again. 6/2/15 7/29/15 ,:y".iv; ..f, -' fr �1 '3'4 4 ""'#2^ .* F �4i 3�" 4f ,,• r D n~i `'''< ,,; •.gym r r & ate :' Asset#F-15:The concrete pad had cracked and broken away from the concrete pipe.Demo and reconstruction took place and a new top piece was formed.Additional rip rap was added to combat erosion after the tall grass was cut by the course. 6/2/15 7/29/15 rok t �• o , '� ''� �` / ,:'z i • kI a s. , , .. _r �• "„..,,,,,„ t ,_ ___;'�, -.'rte,-, 5 Ar Naples Heritage Storm Water Project Update-10/15/15 Asset#F-34:All holes were filled,compacted,and covered with rip rap. 6/2/15 mP 8/3/15 Fes. ro5 Asset#F-43:The concrete pad had cracked and broken away from the concrete pipe.Demo and reconstruction took place and a new top piece was formed. 7/29/15 it Naples Heritage Storm Water Project Update-10/15/15 Asset#F-62: All holes were filled around the structure with concrete and compacted fill. 6/2/15 7/29/15 10t rs may' evik" Naples Heritage Storm Water Project Update-10/15/15 Asset#F-63: All holes were filled around the structure with concrete. 6/2/15 ',-;:,,,Z;1;24.',„;:,,;-.,,-, t @ `t' lei'' `� ' 5: I w a: mte„t-g. ...„„4-,,,,,..-vz.),„,7**14,:..,. efi ,,,,:-...,,,;i3-;:z ;P:441,11,44 v� Y ?tt,, 3.. li i+4.:z1Oli� 9 f -,,,A-% 4 .e," TW , d'f G < Y KP i . ,,; 1.� 1 r..S iti . 117 y1p.5 „,,r,4 tipS1, h 1. 1,''.i 4 ''N ' ;Yb-'.Nf�; r'1 r f1 f.; t gfi e 'y[$ � r 1 � a€ YS 7/29/15 S '0,4"..;-'1.---' V S e d 1 ..”-:;,,,,,,,,i."- 'A:7W 4,.= ,Ithiii,47.: ,r �r , : Asset#F-97: The concrete pad had cracked and broken away from the concrete pipe.Demo and reconstruction took place and a new top piece was formed. 4/27/15 7/29/15 FMTM , r.. . Naples Heritage Storm Water Project Update-10/15/15 Asset#F-112:Large boulder removed from irrigation line.New top cap of concrete may need to be added in the future if erosion continues. 6/2/15 kart.. is ' !.. s6"..?>Yi # sii..iP' • ^ "4'' k ' ,3 � .. �.IL'nM v 'F'°�' „�y A h ey. T;- .i y' Sys a„°__. 9 ! ' �y t ,1,0 . �',+ � Jot. r r LA k �x } 7/29/15 3.,fit R r✓; F �t " � tr �?s t n .. ?,.}. -, • ,-,,,,,',4' i;ATi,---ir*c- 1,:if- , ,-,,, ,- .,10 t ' •4-'' -,, * '-,:?:;._ °s 1•11'''''''''' 4;'''' . ' ,.,',-.4'; , .4,f- - ' ,: ktil ' x Asset#F-139:Grate put back in to place. 6/2/15 7/29/15 y_ ,t a p h:et ' t . r V s 1 � 't,4;4".e ! �,Y4rn%, # ..,r'.,,fir' ;r Wes' � � . 'tip I I Naples Heritage Storm Water Project Update-10/15/15 Asset#?Not on scope,but included:Demo and reconstruction took place to remedy this broken culvert. III FIRST AMENDMENT TO THE MANAGEMENT ADVISORY SERVICES AGREEMENT BETWEEN NAPLES HERITAGE COMMUNITY DEVELOPMENT DISTRICT AND SEVERN TRENT ENVIRONMENTAL SERVICES,INC. THIS AMENDMENT is made and entered into this 1"day of November 2015,by and between Severn Trent Environmental Services(hereinafter called the Manager)and Naples Heritage Community Development District(hereinafter called the District); WHEREAS, on October 21, 1996,the DISTRICT entered into a Management Advisory Services Agreement(the"Agreement")with the MANAGER; and WHEREAS, both parties desire to make certain changes to Exhibit A—Fee Schedule as herein described, NOW, THEREFORE, in consideration of the mutual covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged,the parties hereto agree to amend the Agreement as follows: 1. Exhibit A — Fee Schedule : is hereby amended to include the following additional language: The compensation is hereby amended to include the following additional language: • Townsquare: If the District elects to obtain this service they will pay to the Manager a monthly fee of$20 per month for the franchise fee; • Fees not paid by the District:The Manager will charge$75 per lot per estoppel and/or closing statement. 2. Current Agreement: Except as provided in this Amendment,the other terms and conditions of the Agreement shall remain in full force and effect. In the event of a conflict between the terms of this Amendment and the terms of the original Agreement,the terms of this Amendment shall prevail. 3. Effective Date.This Amendment shall be effective on the Pt day of November 2015. IN WITNESS WHEREOF,the parties hereto have caused this Amendment to be duly executed as of the date and year first above written. SEVERN TRENT ENVIRONMENTAL NAPLES HERITAGE SERVICES, INC. COMMUNITY DEV LOPMENT DISTRICT r BY 4(4_, Name: Name: (Print) Print) Title: General Manager Title: alai r�e on`7 0 I" Management Services Southeast tit 0 ve- 3 ` iG ,... r--r ,- 1 :. -- . ---, .:1 marzr Imagine! A place where District Members can connect, ask questions, report District concerns, make new friendships, volunteer in Board Approved activities, share ideas, participate in Board surveys! A place where people can reach their manager and the important information they need! A place to nurture and grow community communication! Your very own TownSquare! Severn Trent's PCMI TownSquare: Hybrid Web Communications Tool and/or Website: Severn Trent and PCMI (a part of Severn Trent) intentionally promotes + communication and transparency through our hybrid communication tools PCM1 2/ called TownSquare. Accessible from smart phones, iPads,and computers t0 makes streaming District info and news feeds immediately accessible! TownSquare provides tangible communication, proactively addresses scluar e unofficial chatter among social media. Be empowered as a Board to proactively,effectively and positively communicate with your community! Severn Trent/PCMI's hybrid TownSquare webpage is password protected and functions like both a webpage documents center and a social media network with safety control filters. It can function as an independent website or it can become a "button"on your existing website!TownSquare is manager controlled . communication hub to proactively provide information, (,;,,C,C,Kar,s«, build approved community groups, update important OM'101112 i District activities,and optionally request feedback from � omen � residents—all postings have a 1200 word filter. 4 Feb 07 20N•VtlaNM Mry Managers are able to proactively plan and schedule _■® - communications with strategic postings so residents wo® are more informed. Severn Trent's Phone App 1 creates proactive postings where residents are focused! This site can be stand alone or become the District's Communication Hub.The site is supported by community vendor advertisers managed by our host company.There is a 50/50 divided benefit to the District for all vendor sponsorships that apply towards subsequent years and generates a unique revenue opportunity for the Association. I Set up may vary. First Year hosting is FREE.Subsequent Years$500 if not off-set by vendor sponsorships.There is a revenue sharing plan for the District from the sponsorships to help fund a special project or Board goal. SEVERN TRENT SERVICES r.) W tij CD o Q 4E. t OC fl. 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U kmm [ zo CO 0 § kA \ e a \ * NAPLES HERITAGE COMMUNITY DEVELOPMENT DISTRICT Motion: Assigning Fund Balance as of 9/30/15 The Board hereby assigns the FY 2015 Reserves as follows: Operating Reserve $19,200 Reserves-Roads and Lakes $10,000 1 RESOLUTION 2016-1 A RESOLUTION AMENDING THE NAPLES HERITAGE COMMUNITY DEVELOPMENT DISTRICT GENERAL FUND BUDGET FOR FISCAL YEAR 2015 WHEREAS, the Board of Supervisors, hereinafter referred to as the "Board", of Naples Heritage Community Development District, hereinafter referred to as "District", adopted a General Fund Budget for Fiscal Year 2015, and WHEREAS, the Board desires to reallocate funds budgeted to reappropriate Revenues and Expenses approved during the Fiscal Year. NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF SUPERVISORS OF NAPLES HERITAGE COMMMUNITY DEVELOPMENT DISTRICT THE FOLLOWING: 1. The General Fund Budget is hereby amended in accordance with Exhibit"A" attached. 2. This resolution shall become effective this 10th day of November 2015 and be reflected in the monthly and Fiscal Year End 9/30/2015 Financial Statements and Audit Report of the District. Naples Heritage Community Development District (,),€-ttL) By: Chairman Attest: By: -cretary NAPLES HERITAGE Community Development District General Fund Proposed Budget Amendment For the Period Ending September 30, 2015 Exhibit A 1 CURRENT PROPOSED FINAL YEAR TO DATE VARIANCE($) ACCOUNT DESCRIPTION BUDGET AMENDMENT BUDGET ACTUAL FAV(UNFAV) REVENUES Interest-Investments $ 100 $ - $ 100 $ 87 5 (13) Special Assmnts-Tax Collector 79,897 - 79,897 79,868 (29) Special Assmnts-Discounts (3,196) - (3,196) (2,816) 380 Other Miscellaneous Revenues - - - 3 3 (TOTAL REVENUES 76,801 - 76,801 77,142 341 I EXPENDITURES Administration P/R-Board of Supervisors 5,000 - 5,000 4,800 200 FICA Taxes 383 - 383 367 16 ProfServ-Engineering 1,000 - 1,000 - 1,000 ProfServ-Field Management 500 - 500 - 500 ProfServ-Legal Services 2,000 - 2,000 1,795 205 ProfServ-Mgmt Consulting Sery 19,500 - 19,500 19,500 - ProfServ-Property Appraiser 1,198 - 1,198 899 299 Auditing Services 3,000 - 3,000 2,500 500 Communication-Telephone 150 - 150 - 150 Postage and Freight 750 - 750 504 246 Insurance-General Liability 7,167 - 7,167 7,239 (72) Printing and Binding 750 - 750 373 377 Legal Advertising 1,474 - 1,474 702 772 Misc-Bank Charges 620 - 620 550 70 Misc-Assessmnt Collection Cost 1,598 - 1,598 1,533 65 Misc-Contingency 1,126 - 1,126 1,411 (285) Office Expense 410 - 410 389 21 Annual District Filing Fee 175 - 175 175 - Total Administration 46,801 46,801 42,737 4,064 Field Cap Outlay-Fence - - - 995 (995) Total Field - - 995 (995) Reserves Reserve-Roads and Lakes 10,000 15,000 25,000 25,066 (66) Total Reserves 10,000 15,000 25,000 25,066 (66) (TOTAL EXPENDITURES&RESERVES 58,801 , 15,000 71,801 68,798 3,003 I Report Date: 10/24/2015 NAPLES HERITAGE Community Development District General Fund Proposed Budget Amendment For the Period Ending September 30,2015 Exhibit A CURRENT PROPOSED FINAL YEAR TO DATE VARIANCE($) ACCOUNT DESCRIPTION BUDGET AMENDMENT BUDGET ACTUAL FAV(UNFAV) Excess(deficiency)of revenues Over(under)expenditures 20,000 (15,000) 5,000 8,344 3,344 OTHER FINANCING SOURCES(USE$) Contribution to(Use of)Fund Balance 20,000 (15,000) 5,000 - (5,000) 'TOTAL FINANCING SOURCES(USES) 20,000 (15,000) 5,000 - (5,000)1 Net change in fund balance 20,000 (15,000) 5,000 8,344 3,344 FUND BALANCE,BEGINNING(OCT 1.2014) 32,982 - 32,982 32,982 - FUND BALANCE,ENDING $ 52,982 $ (15,000) $ 37,982 $ 41,326 $ 3,344 • Report Date: 10/24/2015 NAPLES HERITAGE COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY,FLORIDA FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2014 NAPLES HERITAGE COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY,FLORIDA TABLE OF CONTENTS Page INDEPENDENT AUDITOR'S REPORT 1-2 MANAGEMENT'S DISCUSSION AND ANALYSIS 3-6 BASIC FINANCIAL STATEMENTS Government-Wide Financial Statements: Statement of Net Position 7 Statement of Activities 8 Fund Financial Statements: Balance Sheet—Governmental Fund 9 Reconciliation of the Balance Sheet—Governmental Fund to the Statement of Net Position 10 Statement of Revenues, Expenditures and Changes in Fund Balance— Governmental Fund 11 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balance of Governmental Fund to the Statement of Activities 12 Notes to the Financial Statements 13-17 REQUIRED SUPPLEMENTARY INFORMATION Schedule of Revenues, Expenditures and Changes in Fund Balances— Budget and Actual—General Fund 18 Notes to Required Supplementary Information 19 INDEPENDENT AUDITOR'S 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 20-21 INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH THE REQUIREMENTS OF SECTION 218.415, FLORIDA STATUTES, REQUIRED BY RULE 10.556(10) OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA 22 MANAGEMENT LETTER REQUIRED BY CHAPTER 10.550 OF THE RULES OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA 23-24 2700 North Military Trail•Suite 350 • Boca Raton, Florida 33431 0 C Graze & Associates Fax)(561)994-5823 0)299-4728 _} CEiTIFtED PUBLIC ACCOUNTANTS www.graucpa.com INDEPENDENT AUDITOR'S REPORT To the Board of Supervisors Naples Heritage Community Development District Collier County, Florida Report on the Financial Statements We have audited the accompanying 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 30,2014,and the related notes to the financial statements,which collectively comprise the District's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America;this includes the design,implementation,and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement,whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit.We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements.The procedures selected depend on the auditor's judgment,including the assessment of the risks of material misstatement of the financial statements,whether due to fraud or error.In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances,but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control.Accordingly,we express no such opinion_An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion,the financial statements referred to above present fairly,in all material respects,the respective financial position of the governmental activities and the major fund of the District as of September 30,2014, and the respective changes in financial position thereof for the fiscal year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis and budgetary comparison information be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board,who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational,economic,or historical context.We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America,which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries,the basic financial statements,and other knowledge we obtained during our audit of the basic financial statements.We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards,we have also issued our report dated June 24,2015,on our consideration of the District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations,contracts, grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing,and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District's internal control over financial reporting and compliance. Report on Other Legal and Regulatory Requirements We have also issued our report dated June 24,2015,on our consideration of the District's compliance with the requirements of Section 218.415, Florida Statutes,as required by Rule 10.556(10)of the Auditor General of the State of Florida.The purpose of that report is to provide an opinion based on our examination conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. June 24,2015 2 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 30, 2014. Please read it in conjunction with the District's Independent Auditor's Report,basic financial statements, accompanying notes and supplementary information to the basic financial statements. FINANCIAL HIGHLIGHTS • The assets of the District exceeded its liabilities at the close of the most recent fiscal year resulting in a net position balance of$8,695,333. • The change in the District's total net position in comparison with the prior fiscal year was$637,979,an increase. The key components of the District's net position and change in net position are reflected in the table in the government-wide financial analysis section. • At September 30,2014,the District's governmental fund reported ending fund balances of$32,982,a decrease of($30,634) in comparison with the prior fiscal year. A portion of the fund balance is assigned for operating capital and other reserves 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. 1)Government-Wide Financial Statements The government-wide financial statements are designed to provide readers with a broad overview of the District's finances, in a manner similar to a private-sector business. The statement of net position presents information on all the District's assets and liabilities,with the residual amount being reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the District is improving or deteriorating. The statement of activities presents information showing how the government's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods. The government-wide financial statements include all governmental activities that are principally supported by special assessment revenues and other miscellaneous revenues. The District does not have any business- type activities. The govemmental activities of the District include the general government(management)and maintenance and operations functions. 2)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. 3 OVERVIEW OF FINANCIAL STATEMENTS(Continued) 2)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 provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The District maintains one individual governmental fund for external reporting. Information is presented 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 a major fund. The District adopts an annual appropriated budget for its general fund.A budgetary comparison schedule has been provided for the general fund to demonstrate compliance with the budget. 3)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 position may serve over time as a useful indicator of an entity's financial position.In the case of the District,assets exceeded liabilities at the close of the most recent fiscal year. Key components of the District's net position are reflected in the following table: NET POSITION SEPTEMBER 30, 2014 2013 Current and other assets $ 435,607 $ 63,616 Capital assets,net of depreciation 8,662,351 7,993,738 Total assets 9,097,958 8,057,354 Current liabilities 402,625 - Total liabilities 402,625 Net position Investment in capital assets 8,662,351 7,993,738 Unrestricted 32,982 63,616 Total net position $ 8,695,333 $ 8,057,354 The District's net position 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 position may be used to meet the District's other obligations. 4 GOVERNMENT-WIDE FINANCIAL ANALYSIS(Continued) The District's net position increased during the most recent fiscal year.The majority of the increase represents a contribution from the Master Association related to roadway improvements. Key elements of the change in net position are reflected in the following table: CHANGES IN NET POSITION FOR THE FISCAL YEAR END SEPTEMBER 30, 2014 2013 Revenues: Program revenues $ 867,788 $ 57,789 General revenues 275 194 Total revenues 868,063 57,983 Expenses: General government 55,741 39,389 Maintenance and operations 174,343 162,312 Total expenses 230,084 201,701 Change in net position 837,979 (143,718) Net position-beginning 8,057,354 8,201,072 Net position-ending $ 8,695,333 $ 8,057,354 As noted above and in the statement of activities,the cost of all governmental activities during the fiscal year ended September 30, 2014 was $230,084. The costs of the District's activities were primarily funded by program revenues. Program revenues,comprised usually of assessments, increased during the fiscal year due to the District accepting a contribution of$810,000 from the Naples Heritage Golf&Country Club Master Association for milling and resurfacing the streets within the community. In total, expenses, including depreciation,increased from the prior fiscal year.The majority of the increase was the result of an increase in stormwater system and irrigation maintenance expenses and repairs. 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 general fund budget for the fiscal year ended September 30,2014 was amended to increase revenues by$810,000 and increase appropriations by$840,000 and use of fund balance by $30,000. The increase in revenues is primarily a contribution from the Master Association for the road paving project and the increase in appropriations is primarily due to the additional costs incurred related to the road project.Actual general fund expenditures for the fiscal year ended September 30,2014 exceeded appropriations by$1,069. The over expenditures were not considered material by management and no budget amendment was deemed necessary. The over expenditures were funded by available fund balance. CAPITAL ASSETS At September 30,2014,the District had$11,249,419 invested in land improvements,roadways,security,and other related improvements. In the government-wide statements depreciation of$2,587,068 has been taken, which resulted in a net book value of$8,662,351. More detailed information about the Districts capital assets is presented in the notes of the financial statements. 5 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 THE 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 District's accountability for the financial resources it manages and the stewardship of the facilities it maintains. If you have questions about this report or need additional financial information,contact Naples Heritage Community Development District's Finance Department at 210 N. University Drive, Suite 702,Coral Springs, Florida, 33071. i1 6 NAPLES HERITAGE COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY,FLORIDA STATEMENT OF NET POSITION SEPTEMBER 30,2014 Governmental Activities ASSETS Cash $ 435,181 1 Due from other governments 426 1 Capital assets: Nondepreciable 6,122,404 Depreciable, net 2,539,947 Total assets 9,097,958 LIABILITIES Accounts payable 402,625 Total liabilities 402,625 NET POSITION Investment in capital assets 8,662,351 Un restricted 32,982 Total net position $ 8,695,333 See notes to the financial statements 7 co 1-) rr % 7g � 2Z ) 32I CV cionCI ® ® cc Qq wwR www C c \ + c a - c > co � // y § Ef > < Io , 0 z � 0 0 ® -' « , cc c I- - - � \ \ / / 2 § § § ƒ) \ cc ® R \ 0 o { k c •c z e 0 @cEo - ® 2 � 7kk 00ur E c C / 0J\ � E laLLP I- @ ® CO CO « 2o @cc 2 > -1� � § � O / � / 7 37 CO § � � � maf 7 $ ea) j \ § E\o 0 co c § - CD Ozz k ill��� � co / kk / o�■w ® w - o 2 u §I� § � bg co kkk/ L _ c I— CO 0 E CO III = I 2 Ce @ \ -I 0 g z d — \\ Q o § ) 22 \ E E / 9 § e & fo § o � kE ! k C' a1- \ \ \ o » _ Q NAPLES HERITAGE COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA BALANCE SHEET GOVERNMENTAL FUND SEPTEMBER 30,2014 Total Major Fund Governmental General Fund ASSETS Cash $ 435,181 $ 435,181 Due from other governments 426 426 Total assets $ 435,607 $ 435,607 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ 402,625 $ 402,625 Total liabilities 402,625 402,625 Fund balance: Assigned to: First quarter operating capital 14,407 14,407 Road and lake reserves 10,000 10,000 Unassigned 8,575 8,575 Total fund balance 32,982 32,982 Total liabilities and fund balance $ 435,607 $ 435,607 See notes to the financial statements 9 NAPLES HERITAGE COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY,FLORIDA RECONCILIATION OF THE BALANCE SHEET-GOVERNMENTAL FUND TO THE STATEMENT OF NET POSITION SEPTEMBER 30,2014 Total fund balances-governmental funds $ 32,982 Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported as assets in the governmental funds. The statement of net position includes those capital assets, net of any accumulated depreciation, in the net position of the government as a whole. Cost of capital assets 11,249,419 Accumulated depreciation (2,587,068) 8,662,351 Net position of governmental activities $ 8,695,333 See notes to the financial statements 10 NAPLES HERITAGE COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY,FLORIDA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE GOVERNMENTAL FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2014 Total Major Fund Governmental General Fund REVENUES Assessments $ 57,788 $ 57,788 Interest 275 275 Miscellaneous-Interlace'Agreement 810,000 810,000 Total revenues 868,063 868,063 EXPENDITURES Current: General government 55,741 55,741 Maintenance and operations 8,528 8,528 Capital outlay 834,428 834,428 Total expenditures 898,697 898,697 Excess(deficiency)of revenues over(under)expenditures (30,634) (30,634) Fund balance-beginning 63,616 63,616 Fund balance-ending $ 32,982 $ 32,982 See notes to the financial statements 11 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 30,2014 Net change in fund balances-total governmental funds $ (30,634) Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures, however, in the statement of activities, the cost of those assets is eliminated and capitalized as capital assets. 834,428 Depreciation on capital assets is not recognized in the governmental fund statements but is reported as an expense in the statement of activities. (165,815) Change in net position of governmental activities $ 637,979 See notes to the financial statements 12 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 for community development,power to borrow money and issue bonds,and to levy and assess non-ad valorem assessments for the financing and delivery of capital infrastructure. The District was established for the purposes of financing and managing the acquisition, construction, maintenance and operation of a portion of the infrastructure necessary for community development within the District. The District is governed by the Board of Supervisors("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")Statements. Under the provisions of those standards,the financial reporting entity consists of the primary government,organizations for which the District is considered to be financially accountable and other organizations for which the nature and significance of their relationship with the District are such that, if excluded,the financial statements of the District would be considered incomplete or misleading. There are no entities considered to be component units of the District;therefore,the financial statements include only the operations of the District. NOTE 2—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Government-Wide and Fund Financial Statements The basic financial statements include both government-wide and fund financial statements. The government-wide financial statements(i.e.,the statement of net position and the statement of activities) report information on all of the non-fiduciary activities of the primary government. For the most part,the effect of interfund activity has been removed from these statements. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1)charges to customers who purchase,use or directly benefit from goods, services or privileges provided by a given function or segment; (operating-type special assessments for maintenance are treated as charges for services.)and 2)grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment.Other items not included among program revenues are reported instead as general revenues. 13 NOTE 2—SUMMARY OF SIGNIFICANT ACCOUNTING POLICES(Continued) Measurement Focus, Basis of Accounting and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred,regardless of the timing of related cash flows. Assessments are recognized as revenues in the year for which they are levied. Grants and similar items are to be recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose,the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures are recorded when a liability is incurred,as under accrual accounting. 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. 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 Position or Equity 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. Securities listed in paragraphs c and d shall be invested to provide sufficient liquidity to pay obligations as they come due. 14 NOTE 2—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) Assets, Liabilities and Net Position or Equity(Continued) Deposits and Investments(Continued) The District records all interest revenue related to investment activities in the general fund and reports investments at fair value. Inventories and Prepaid Items Inventories of governmental funds are recorded as expenditures when consumed rather than when purchased. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. Capital Assets Capital assets,which include property,plant and equipment,and infrastructure assets(e.g.,roads,sidewalks and similar items) are reported in the 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 governmental fund financial statements. Unearned Revenue Governmental funds report unearned revenue in connection with resources that have been received,but not yet earned. Deferred Outflows/Inflows of Resources Deferred outflows of resources represent a consumption of net position that applies to future reporting period(s). For example, the District would record deferred outflows of resources on the statement of net position related to debit amounts resulting from current and advance refundings resulting in the defeasance of debt(i.e.when there are differences between the reacquisition price and the net carrying amount of the old debt). Deferred inflows of resources represent an acquisition of net position that applies to future reporting period(s). For example,when an asset is recorded in the governmental fund financial statements, but the revenue is unavailable, the District reports a deferred inflow of resources on the balance sheet until such times as the revenue becomes available. Fund Equity/Net Position In the fund financial statements, governmental funds report non spendable and restricted fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Assignments of fund balance represent tentative management plans that are subject to change. 15 NOTE 2—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) Assets,Liabilities and Net Position or Equity(Continued) Fund Equity/Net Position(Continued) The District can establish limitations on the use of fund balance as follows: Committed fund balance—Amounts that can be used only for the specific purposes determined by a formal action(resolution)of the Board of Supervisors.Commitments may be changed or lifted only by the Board of Supervisors taking the same formal action(resolution)that imposed the constraint originally. Resources accumulated pursuant to stabilization arrangements sometimes are reported in this category. Assigned fund balance — Includes spendable fund balance amounts established by the Board of Supervisors that are intended to be used for specific purposes that are neither considered restricted nor committed. The Board may also assign fund balance as it does when appropriating fund balance to cover differences in estimated revenue and appropriations in the subsequent year's appropriated budget. Assignments are generally temporary and normally the same formal action need not be taken to remove the assignment. The District first uses committed fund balance,followed by assigned fund balance and then unassigned fund balance when expenditures are incurred for purposes for which amounts in any of the unrestricted fund j balance classifications could be used. Net position is the difference between assets and deferred outflows of resources less liabilities and deferred inflows of resources. Net position in the government-wide financial statements are categorized as net investment in capital assets,restricted or unrestricted. Net investment in capital assets represents net position related to infrastructure and property, plant and equipment. Restricted net position represents the assets restricted by the District's Bond covenants or other contractual restrictions.Unrestricted net position consists of the net position not meeting the definition of either of the other two components. Other Disclosures Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates. NOTE 3—BUDGETARY INFORMATION The District is required to establish a budgetary system and an approved Annual Budget. Annual Budgets are adopted on a basis consistent with generally accepted accounting principles for the general fund. All annual appropriations lapse at fiscal year-end. The District follows these procedures in establishing the budgetary data reflected in the financial statements. a) Each year the District Manager submits to the District Board a proposed operating budget for the fiscal year commencing the following October 1. b) 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. f) 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 deposit with the Treasurer or another banking institution eligible collateral equal to various percentages of the average daily balance for each month of all public deposits in excess of any applicable deposit insurance held. The percentage of eligible collateral(generally, U.S. Governmental and agency securities, state or local government debt,or corporate bonds)to public deposits is dependent upon the depository's financial history and its compliance with Chapter 280. In the event of a failure of a qualified public depository,the remaining public depositories would be responsible for covering any resulting losses. NOTE 5—CAPITAL ASSETS Capital asset activity for the fiscal year ended September 30,2014 was as follows: Beginning Ending Balance Additions Reductions Balance Governmental activities Capital assets,not being depreciated Land and land improvements $ 6,122,404 $ - $ - $ 6,122,404 Total capital assets,not being depreciated 6,122,404 - - 6,122,404 Capital assets,being depreciated Security and other 1,153,556 24,428 - 1,177,984 Roadway 3,139,031 810,000 - 3,949,031 Total capital assets,being depreciated 4,292,587 834,428 - 5,127,015 Less accumulated depreciation for: Security and other 875,971 57,806 933,777 Roadway 1,545,282 108,009 1,653,291 Total accumulated depreciation 2,421,253 185,815 - 2,587,088 Total capital assets,being depreciated,net 1,871,334 668,613 - 2,539,947 Governmental activities capital assets,net $ 7,993,738 $ 668,613 S - $ 8,662,351 Depreciation expense was charged to the maintenance and operations function. NOTE 6—CAPITAL CONTRIBUTION During the fiscal year ended September 30, 2014, the District received a contribution of$810,000 from the Naples Heritage Golf and Country Master Association for restoration work on the roadways within the District. The District executed an agreement for the milling and resurfacing of the District roads with a contractor and those services were rendered during the current fiscal year.The road restoration is included as an addition to the fixed assets of the District,as noted in the table above. NOTE 7-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 8-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. 17 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 30,2014 Variance with Final Budget- Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Assessments $ 57,528 $ 57,528 $ 57,788 $ 260 Interest 100 100 275 175 Miscellaneous - 810,000 810,000 - Total revenues 57,628 867,628 868,063 435 EXPENDITURES Current: General government 47,628 47,628 55,741 (8,113) Maintenance and operations 10,000 30,000 8,528 21,472 Capital outlay - 820,000 834,428 (14,428) Total expenditures 57,628 897,628 898,697 (1,069) Excess(deficiency)of revenues over(under)expenditures - (30,000) (30,634) (634) OTHER FINANCING SOURCES(USES) Use of fund balance - 30,000 - (30,000) i Total other financing sources(uses) - 30,000 - (30,000) Net change in fund balance $ - $ - (30,634) $ (30,634) Fund balance-beginning 63,616 Fund balance-ending $ 32,982 See notes to required supplementary information 18 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. The general fund budget for the fiscal year ended September 30, 2014 was amended to increase revenues by$810,000 and increase appropriations by$840,000 and use of fund balance by$30,000. The increase in revenues is primarily the result of the District receiving contribution from the Master Association for the road paving project and the increase in appropriations is primarily due to the additional costs incurred related to the road project.Actual general fund expenditures for the fiscal year ended September 30,2014 exceeded appropriations by$1,069. The over expenditures were not considered material by management and no budget amendment was deemed necessary. The over expenditures were funded by available fund balance. 19 CO 2700 North Military Trail•Suite 350 Boca Ratan, Florida 33431 Grau & Associates (561)994-9299•(800)299-4728 Fax (561)994-5823 CERTIFIED PUBLIC ACCOUNTANTS www.graucpa.com INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Board of Supervisors Naples Heritage Community Development District Collier County, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States,the financial statements of the governmental activities and the major fund of Naples Heritage Community Development District,Collier County, Florida("District")as of and for the fiscal year ended September 30, 2014, and the related notes to the financial statements,which collectively comprise the District's basic financial statements,and have issued our opinion thereon dated June 24,2015. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements,we considered the District's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements,but not for the purpose of expressing an opinion on the effectiveness of the District's internal control.Accordingly,we do not express an opinion on the effectiveness of the District's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control,such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency,or a combination of deficiencies,in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies.Given these limitations,during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However,material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the District's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit,and accordingly,we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. 20 Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing,and not to provide an opinion on the effectiveness of the entity's internal control or on compliance.This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance.Accordingly,this communication is not suitable for any other purpose. 4.4., (1.,24w June 24,2015 21 2700 North Military Trail•Suite 350 Boca Raton, Florida 33431•Grau& Associates (561)994-9299•(800)299-4728 ...) Fax (561)994-5823 C;E;6t"t"tFl.i..t7 PUBLIC ACCE)1.ttV'1':AN'fy www.graucpa.com 440 INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH THE REQUIREMENTS OF SECTION 218.415,FLORIDA STATUTES,REQUIRED BY RULE 10.556(10)OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA To the Board of Supervisors Naples Heritage Community Development District Collier County, Florida We have examined Naples Heritage Community Development District, Collier County, Florida's ("District") compliance with the requirements of Section 218.415,Florida Statutes,in accordance with Rule 10.556(10)of the Auditor General of the State of Florida during the fiscal year ended September 30,2014.Management is responsible for the District's compliance with those requirements.Our responsibility is to express an opinion on the District's compliance based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and,accordingly,included examining,on a test basis,evidence about the District's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances.We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the District's compliance with specified requirements. In our opinion,the District complied, in all material respects, with the aforementioned requirements for the fiscal year ended September 30,2014. This report is intended solely for the information and use of the Legislative Auditing Committee,members of the Florida Senate and the Florida House of Representatives,the Florida Auditor General,management,and the Board of Supervisors of Naples Heritage Community Development District,Collier County, Florida and is not intended to be and should not be used by anyone other than these specified parties. June 24, 2015 1 22 2700 North Military Trail•Suite 350 Boca Raton, Florida 33431 Grau & Associates (561)994-9299•(800)299-4728 Fax (561)994-5823 CERTIFIED PUBLIC ACCOUN1ANTS 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 Report on the Financial Statements We have audited the accompanying basic financial statements of Naples Heritage Community Development District,Collier County, Florida("District")as of and for the fiscal year ended September 30,2014,and have issued our report thereon dated June 24,2015. Auditor's Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America;the standards applicable to financial audits contained in Government Auditing Standards,issued by the Comptroller General of the United States; and Chapter 10.550, Rules of the Florida Auditor General. Other Reports and Schedule We have issued our Independent Auditor's Report on Internal Control over Financial Reporting and Compliance and Other Matters based on an audit of the financial statements performed in accordance with Government Auditing Standards; and Independent Auditor's Report on an examination conducted in accordance with AICPA Professional Standards, Section 601, regarding compliance requirements in accordance with Chapter 10.550,Rules of the Auditor General.Disclosures in those reports,which are dated June 24,2015,should be considered in conjunction with this management letter. Purpose of this 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. II. Status of prior year findings and recommendations. III. Compliance with the Provisions of the Auditor General of the State of Florida. Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, as applicable, management, and the Board of Supervisors of Naples Heritage Community Development District,Collier County,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 be of service to them in this endeavor as well as future engagements, and the courtesies extended to us. June 24,2015 23 REPORT TO MANAGEMENT I. CURRENT YEAR FINDINGS AND RECOMMENDATIONS None II. PRIOR YEAR FINDINGS None III. COMPLIANCE WITH THE PROVISIONS OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA Unless otherwise required to be reported in the auditor's report on compliance and internal controls,the management letter shall include, but not be limited to the following: 1. A statement as to whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. There were no significant findings and recommendations made in the preceding annual financial audit report for the fiscal year ended September 30,2013. 2. 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 30,2014. 3. Noncompliance with provisions of contracts or grant agreements,or abuse,that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. There were no such matters discovered by, or that came to the attention of, the auditor, to be reported,for the fiscal year ended September 30,2014. 4. The name or official title and legal authority of the District are disclosed in the notes to the financial statements. 5. The financial report filed with the Florida Department of Financial Services pursuant to Section 218.32(1)(a), Florida Statutes agrees with the September 30,2014 financial audit report. 6. The District has not met one or more of the financial emergency conditions described in Section 218.503(1), Florida Statutes. 7. We applied financial condition assessment procedures and no deteriorating financial conditions were noted as of September 30,2014.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. 24 I 2700 North Military Trail•Suite 350 Boca Raton,Florida 33431 Grau& Associates (561)994-9299•(800)299-4728 C Fax (561)994-5823 / CERTIFIED PUBLIC ACCOUNTANTS www.qraucpa.com August 4,2015 To Board of Supervisors Naples Heritage Community Development District 210 N. University Drive,Suite 702 Coral Springs,FL 33071 We are pleased to confirm our understanding of the services we are to provide Naples Heritage Community Development District, Collier County, Florida ("the District") for the fiscal year ended September 30, 2015. We will audit the financial statements of the governmental activities and the major fund, including the related notes to the financial statements, which collectively comprise the basic financial statements of Naples Heritage Community Development District as of and for the fiscal year ended September 30,2015. In addition,we will examine the District's compliance with the requirements of Section 218.415 Florida Statutes.This letter serves to renew our agreement and establish the terms and fee for the 2015 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) Management's Discussion and Analysis. 2) Budgetary comparison schedule Audit Objectives The objective of our audit is the expression of opinions as to whether your 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 the supplementary information referred to in the second paragraph when considered in relation to the financial statements 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 will issue a written report upon completion of our audit of the District's financial statements.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 or other-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 issue a report,or may withdraw from 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 on compliance and other matters will include a paragraph that states(1)that the purpose of the report is solely to describe the scope of testing of internal control and compliance, and the results of that testing, and not to provide an opinion on the effectiveness of the District's internal control on compliance,and(2)that the report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District's internal control 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, I regulatory,or contractual requirements. Naples Heritage Community Development District 2 Examination Objective The objective of our examination is the expression of an opinion as to whether the District is in compliance with Florida Statute 218.415 in accordance with Rule 10.556(10)of the Auditor General of the State of Florida.Our examination will be conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and will include tests of your records and other procedures we consider necessary to enable us to express such an opinion. We will issue a written report upon completion of our examination of the District's compliance. The report will include a statement that the report is intended solely for the information and use of management,those charged with governance,and the Florida Auditor General,and is not intended to be and should not be used by anyone other than these specified parties.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 or other-matter paragraphs. If our opinion on the District's compliance is other than unmodified,we will discuss the reasons with you in advance. If,for any reason,we are unable to complete the examination or are unable to form or have not formed an opinion,we may decline to express an opinion or issue a report,or may withdraw from this engagement. Management Responsibilities Management is responsible for the financial statements and all accompanying information as well as all representations contained therein.Further,management is responsible for compliance with Florida Statute 218.415 and will provide us with the information required for the examination. The accuracy and completeness of such information is also management's responsibility. As part of the audit,we will assist with preparation of your financial statements and related notes in conformity with U S. generally accepted accounting principles based on information provided by you. These nonaudit services do not constitute an audit under Government Auditing Standards and such services will not be conducted in accordance with Government Auditing Standards.You agree to assume all management responsibilities relating to the financial statements and related notes and any other nonaudit services we provide. You will be required to acknowledge in the management representation letter our assistance with preparation of the financial statements and related notes and that you have reviewed and approved the financial statements and related notes prior to their issuance and have accepted responsibility for them. In addition, you will be required to make certain representations regarding compliance with Florida Statute 218.415 in the management representation letter. Further, you agree to oversee the nonaudit services by designating an individual, preferably from senior management, who possesses suitable skill, knowledge, or experience; evaluate the adequacy and results of those 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; following laws and regulations;and ensuring that management is reliable and financial information is reliable and properly reported. Management is also responsible for implementing systems designed to achieve compliance with applicable laws, regulations, contracts, and grant agreements. You are also responsible for the selection and application of accounting principles,for the preparation and fair presentation of the financial statements and all accompanying information in conformity with U.S. generally accepted accounting principles, and for compliance with applicable laws and regulations and the provisions of contracts and grant agreements. Management is also responsible for making all financial records and related information available to us and for the accuracy and completeness of that information.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 the 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 government complies with applicable laws, regulations, contracts, agreements, and grants and for taking timely and appropriate steps to remedy fraud and noncompliance with provisions of laws,regulations,contracts or grant agreements,or abuse that we 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 nur current findings,conclusions, and recommendations,as well as your planned corrective actions, for the report,and for the timing and format for providing that information. Naples Heritage Community Development District 3 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 attributable to the government or to acts by management or employees acting on behalf of the government. 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 require certain written representations from you about your responsibilities for the financial statements; compliance with laws, regulations, contracts, and grant agreements; and other responsibilities required by generally accepted auditing standards. Audit Procedures—Internal Control Our audit will include obtaining an understanding of the government 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 am 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. 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. Engagement Administration,Fees,and Other We understand that your employees will prepare all cash or other 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, subject to applicable laws and regulations, audit documentation and appropriate individuals will be made available upon request and in a timely manner to a cognizant or oversight agency 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 Naples Heritage Community Development District 4 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$3,000 for the September 30, 2015 audit. This agreement may be renewed each year subject to the mutual agreement by both parties to all terms and fees. 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 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-of-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. 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 2013 peer review report accompanies this letter. We appreciate the opportunity to be of service to Naples Heritage 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 Racquel McIntosh RESPONSE: This letter correctly sets forth the understanding of Naples Heritage Community Development District. • By: �p// Title: Date: ( /(/`114 4 Naples Heritage Community Development District 4 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 $3,000 for the September 30, 2015 audit. This agreement may be renewed each year subject to the mutual agreement by both parties to all terms and fees. 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 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-of-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. 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 2013 peer review report accompanies this letter. We appreciate the opportunity to be of service to Naples Heritage 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 Racquel McIntosh RESPONSE: This letter correctly sets forth the understanding of Naples Heritage Community Development District. By: Title: Date: II Naples Heritage Community Development District 5 t %..• _ .5 \' .i.1 I . w 7.). 3e 1e o < at V ® . c a = 48 • b' 3 to V o 4-1 hi Q ° O C P4 .4 °• c' a o W 0 $ c u 44(1% hm1 OU U e '• v m 4!ci) ' g &., (n P.I II...4 :0 c1-1(..' 2 4 o ‘. q %- c a 0 (1) 03 (4t1• So 41: 41 (...).74,0 w V to cn W .. 0 o' ct 3 v G W U nW, If;• es a a 1Q flu C M o _ e O m t -) m W d o t t Naples Heritage CDD Severn Trent Services Field Management Report Site Inspection— 5/29/2015 1. Lake Management: a. Lake Maintenance: No severe issues were found with the lakes.Algae, shoreline weeds&submerged weeds were all present, but they were mostly in acceptable condition.Additional lake maintenance information is found below,all lake issues are low density unless otherwise noted. b. Algae: 2,5,8,9, 11,&14(pictured-high density). c. Littorals: Plants observed included golden canna,spike rush,arrowhead, pickerelweed, bulrush and alligator flag.There are a few irrigation pipes for the littorals that should be covered to prevent them from being damaged on lakes 1,4, 9, &14. - `M4 �. 3,4*; a�za c -y Ri N i' Rr t 4 v ft( . , ;f G� C .g. Yfi �a IMP mow•;; ,may„ n ac r� o' - i e i. Littorals should be sprayed back from the drainage structures to ensure proper water flow is not restricted. Structure F131 on lake 6 and structure F39 on lake 12 is pictured below. F131—5/29/15 F131—7/7/15 e i t i 7 2;1 �.'r ", *4 r / M1 of 4v.1, , d. Weeds:Weeds found during the inspection included: i. Cattails in Lakes:5.Very Low Presence—Acceptable. ii. Dollar weed in Lakes: 11. � f >' ' .' 1� p4 � 4'71, ,1-7,, . .1, _Avg' ., '.1---_,.s 1'Nr..' '.4.* i'l,,,,,,,, .. lel',, 5...* _ If.;.- i,.... 4,).„:„,,,st,. 471„010.0.. .,in x '441 � !.c { 4;,,..;,;' c 1 2 \-- iii. Musk grass(charm)in Lakes:2(pictured-high density), 10,&12. C iy} • r y iv. Torpedo Grass in Lakes:9(pictured), 11, 13, 15(pictured). e S *r .s .1 { k t p 0;. t /7:, ,t'i/�; + � .t -,, ice:` t .. y p f�a4 tti� a,i � y, 4� { C. Wt ---,"-�y�K 4x ry- j � p ` r fy �Y`'" '`5-. e. Trash in Lakes: No issues observed. f. Bulkheads:The weeds on the bulkhead off of lake 9 should be sprayed out to protect the wall from future damage. 3 2. Dissolved Oxygen (DO)Tests: Lakes 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. Water Testing a 7 ,— ,.` s ' 6 ■March 22,2013 Dissolved 5 ,, Oxygen(PPM) 4 �� D March 26,2014 Dissolved a Oxygen(PPM) 3 , ' ■May 29,2015 Dissolved 2 ,° � :� Oxygen(PPM) �, t F VJ s 0 w i_-.. Lake 12 Lake 16 3. Lake Bank Erosion:The east side of lake one was showing signs of erosion next to structure F87.This erosion has been addressed with the repairs on structure F87. f� 4 -, 5g r t t 4, 44pik t81,4 y , '1,:,,e`.—:,-' .4,4 . ,1#7-7, -7":461 - '.- , 1 '' . , r s e. � `; " t V� % t % C v.y a pa 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. 4 a. A fig tree has killed a large pine in the preserve next to the condos off of Heritage Links Court.The pine tree may need to be cut down to prevent possible damage to the building.The roots of the fig tree are also spreading towards the condo and may need to be cut back to prevent damage to the structure as well. y 1 t y 0,‘. AY t' a aN i $ '�� 4$ fps i r� lJ .' 4,'' *.lilt '4,. A� f �# L �P=A 0 a '.,._ °'- s' 1 r 1 x . t t r . ry: aa, o w,. '"t 0 b. Landscape debris have been tossed in the preserve of Tract C10 and need to be removed to prevent clogging of water flow underneath Naples Heritage Drive. ! b ti .jam . 9r '.4;',.. r .r;:,'. ii, � � a k; -w.; - r � +� 4a 5 5. Perimeter Fence:The fence is pretty clear of vegetation along the eastern boundary of Tract C5 to the north of lake 6. Numerous trees and shrubs should be cut back from the fence on the southern boundary of Tract C5 next to lake 8 and the western boundary of Tract C5 behind lake 2. h ��r/, 1 '', 1,1 -,,,t,,,:,,:a,'" ,, 40,,,- ,:: , ..,.. N , ' ►a` E -..s.. - $ c ,,,%,,'',"' �[ fig,a?.,; ,,:. -i% ro+ 1 Ti y f +�4„ ifs s^..: a t. �,- 'fii `2 '� ,, . , ,k, . 4, 1 -.,•;,,,_,....4.45k. - ,,,,‘..,,,k- ' , ,/i ', ‘./''''''. ' ',` } \'‘ ) "A ; .,..;di,,t'-'41--,''''',1",- ..1"';',-'1'- ; I r ,,�',.4 .1 f a '''"'" - 3 Ili '' 3 § " X"!'1 11 a i -i yy 4.1,4, t ,;.' & ; 6. Sidewalks: a. There is a slight tripping hazard on the sidewalk just after the cart path crossing as you are approaching the clubhouse along Heritage Club Way. It is questionable if this area is the responsibility of the CDD or the Country Club. t >; . s 6 b. Several sections of sidewalk are raised along Naples Heritage Drive in Glenn Abbey, however,they were already marked with yellow paint so it appears that work is currently being performed on these safety issues. a r•_ c. A hazard ae Heritage tripping Drive at the exists Collier long Boulevard thcart path entrance crossing that across should be Naples addressed. ta i 1( 7. Roadways:The repaving throughout the community has taken place and no new issues were observed. 8. Storm Drainage msro final repairs in August 2015 to the storm waterSyste system.: Funds Landho were e cmpleted withheld the from the project total since ise in the water level.repairs W on e will have structure these F10 repairs could not completed be completed once due the water to the rr e normal levels. cedes back to l 11' e ¢4„.,, ' r ei ' 'n Y t k iM M. .1 Y L tos-- } A 7 a. Overflow Weirs:The overflow weirs on Lakes 6,8, 11, 12&13 were all clear.These structures should be inspected and cleaned out on an annual basis.The skimmer on lake 6 is missing a bolt,but it does not appear to be inhibiting Lake 6 function at this point. Lake 11 c',,,,1 s V. .eta .....• fri ?„...,,,,,„ ,,,, .„,:k ,,,,„ ,,,,,,i..„,„„, ,.. r- n z. s x b. Gutter Pans: No new issues observed. c. Storm Drains: No issues observed. i. Drain Culverts: No issues observed. $ pp � h{ y ti f' y • gl„g r 5 am' - ' -{. w* ( 9 �s+ a 4 eti Grq� »,. z ii. Inter-Connect Pipes: 1. Minor erosion is occurring on structure F67 on lake 8. H ;M ' S ,.: x. j .` J 0� b 1 ,41...„.4,-,,. j .x 4:: t � , 1. 8 2. The inter-connect pipe inlet b on n Lake pushed 11 back.has been cleaned out and the littorals have ee 3/26/14 7/29/15 x1'^ # D ' A.+ -- 't'afm:l 1''.:,'. ' 4k , are y t' ' - iii. Storm Drain Outlets: 1. Washouts are beginning to form underneath structures F19 and F23 list on the lake 9.Thes repairs d the nr,but e should were be repaired not liste in on the near recent future.by There is Engi also ee a golf course drainage pipe that was found unburied.The crews were the course so this may have already been working completedon. �� �' � a" ��i A �_°�r� � , ge h �l� 5 t*,w 1,. V�A <r. I'l / fig -'-.za - '. _ - , ' " ' S7 ' k k ' y� f k 9 2. Structure F53 is beginning to show signs of erosion on the top and one side. . 3. There is an exposed drain pipe that has become disconnected from the rest of the pipe.The pipe is coming from the condos on the bank of Iake 12. e �. .rim - ^.. - ' ,r, . - ` +a:a , , it s # ,�,n 1y, a -1 �, r a "R X= `e rf tea.... :.. [ d 1 0 4. Structure F43 on the east end of lake 11 has been �3 1v t "� 3 t ¢Aw$ cwt cry . i I 4R iv. The storm drain inlets that were damaged at 8743,8794,8795 8838 Naples Heritage Drive were all repaired by the Country Clu&b. v. Pictures of various repairs completed by Landshore: 4. ` i, fbd¢T ;� : 7�7 ` l i ..-1 , <x d d x - as t q }, 4` j „..z'..', l':? 'f '�` ` 4' i_S',JAI:° fitii'�,`„ s t , spy'” 11 9. Fish/Wildlife Observations: ❑ Bass ❑ Bream ❑Catfish ❑Gambusia n Egrets n Herons ❑ Coots n Gallinules ►1Anhinga El ❑ Osprey ❑ Ibis n Woodstork I 1 4 Otters Alligator Snake Turtles ®Other Species: Fox Squirrel,Tilapia 10.Non CDD items: a. The new plantings the CDD paid to have installed along Davis Boulevard are doing well Y •' , aXs "`... � 4%:�;. 1'a 3.e r - b. There is a damaged potion of sidewalk as you approach the clubhouse along Heritage Club Way that needs repair. F Y C. Tn w signs a spray he spray heads are pattern beginning othe fountain to be clogged on lake ea may is sho need ing servicingth.t the "• ,`""`fit' ` S x yyy � 4 �� ���>. ��]` �! of/+r.fi'4 12 11.Follow up Items that should be addressed: a. Have all littoral irrigation lines buried. b. Address tripping hazards along the sidewalks. c. Reconnect drain pipe on lake 12. d. Have the dead pine tree cut down out of the preserve along Heritage Links Court. e. Have the fountain inspected on lake 14. f. Have structure F10 repaired once the lake level recedes. 13