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02/08/2016 AgendaCedar Hammock Community Development District Board of Supervisors Tom Cook, Chairman Gary McClellan, Vice Chairman Larry Minamyer, Assistant Secretary Norman Day, Assistant Secretary Vacant, Assistant Secretary Regular Meeting Agenda February 8, 2016 — 3:00 p.m. 1. Roll Call 2. Organizational Matters A. Consideration of Filling Board Vacancy Calvin Teague, District Manager Dan Cox, District Counsel Sam Marshall, District Engineer 3. Approval of the Minutes of the January 11, 2016 Meeting 4. Audience Comments 5. Old Business A. Update on Bulkhead Repairs 6. New Business A. Cardno Estimates for Well 6 Installation and Pumps for Wells 4 and 6 B. CIP planning C. Lake Analysis Report from C.E.S. 6M12— 7. Manager's Report A. Presentation of Proposed Budget for FY 2017 i. Consideration of Resolution 2016 -3 Approving the Budget and Setting the Public Hearing B. Financial Report for December, 2015 C. Acceptance of the Audit foi FY 2015 8. Attorney's Report 9. Engineer's Report 10. Communication to Master Board 11. Supervisors Request 12, Adjournment THE NEXT REGULAR MEETING IS SCHEDULED FOR MARCH 14, 2016 at 3 :00 P.M. Naples Daily News Naples, FT_ 34110 Affidavit of Publication Naples Daily News CEDAR HAMMOCK COMMUNITY _ — — — — — — — _._. — — CEDAR HAMMOCK COMMUNITY 210 N UNIVERS?TY DR #702 CORAL SPRINGS FL 33071 REVERENCE: 531406 2015 Notice Meetings H Cedar Hammock 690340 Community Development District The Board of Sitporvi;sors of the Cedar Hammack Community Develetsment Distrlct' will hold their meetings for State of Florida da fiscal Year 2016 atfhe Cedar Hammock Clubhouse, 8660 Cedar Hammock Boulevard, Naples, Florida at 3:00 p.m. on the second Counties of Collier and Lee Monday of the following months except as noted: Before the undersigned authority, personall October12,2015 appeared Dan McDermott, says that he serves a November 9, 2015 January 11, 2016 the Inside Sales Supervisor, of the Naples De February 8, 2016 March 1 26 news, a daily newspaper published at Naples, April il, 2016 Collier County, Florida: that the attached c< May 9, 2016 advertising was published in said newspaper r The remavbe occasions whennneorntore Super visors 1 isted. will participate by telephone. Meetings may be continued to a Affiant farther says that the said Naples Di. data and time certain which will he announced at the meeting. News is a newspaper published. at Naples, in 1. inaccordancowitlitheprovisionsoftlreAmericaoswiih visa illties Act, any parson re uiringg special accatltmodatidns Collier County, Florida, and that the said n s lheeting bogause of a disability or hysicai impairment shoo should t:nntact the District Managyyement compzgny, Severn has heretofore been continuously day and has T' qai RESOLUTION 2016 -2 A RESOLUTION DESIGNATING OFFICERS OF CEDAR HAMMOCK COMMUNITY DEVELOPMENT DISTRICT WHEREAS, the Board of Supervisors of the Cedar Hammock Community Development District desires to appoint the below recited persons to the offices specified. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF SUPERVISORS OF CEDAR HAMMOCK COMMUNITY DEVELOPMENT DISTRICT: 1. The following persons were appointed to the offices shown, to wit: 0 -0 % Chairman r(I ' � ! �(. a Vice Chairman Cal Teague Secretary Robert Koncar Treasurer Stephen Bloom Assistant Treasurer �' 11 {-I(,t rn1iV( Assistant Secretary Assistant Secretary Assistant Secretary PASSED AND ADOPTED THIS 8TH DAY OF FEBRUARY, 2016. y �VL- Chairman Calvin Teague Secretary February 8, 2016 ca� Cardno, Shaping the Future Mr. Cal Teague Cedar Hammock CDD Cardno c/o Severn Trent Services 5911 Country Lakes Drive 13700 Ben C. PratUSix Mile Fort Myers, FL 33905 Cypress Pkwy Unit 1 Subject: Cedar Hammock WUP NO. 11- 01711 -W Fort Myers, FL 33912 USA Proposal to Install Production Well, Pumps and Control Features Phone: +11239 5741919 Dear Mr. Teague: Fax: +1239 574 8106 Cardno, Inc. (Cardno) is pleased to submit this proposal to install one new production well and www.cardno.com two submersible pumps capable of producing 250 gallons per minute and control features to operate the pump systems. Cardno proposes to provide the services outlined in the following tasks. Task 1 - Production Well Installation: Cardno will install one 8 -inch diameter production well (Well# 6) completed in the Lower Tamiami aquifer. Following the completion of the field work and analysis of collected data, a brief letter report of the installation activities will be provided. The cost for this task includes the fees of a licensed drilling subcontractor, Collier County drilling construction permit, Cardno's professional services for construction oversight by a field hydrogeologist, preparation of a site specific health and safety plan, and data evaluation. The cost to provide the proposed Task 1 services is $20,500.00 lump sum. Task 2 - Well Pumps & Control Features Installations: Cardno will install two submersible pumps with control systems. A pump with control system will be installed in the existing Well #4 and in the newly constructed Well #6. The components to this system will include the following items to complete the well and pump system for each well. • 10- horsepower pump and motor set on 3 -inch Certa -Lok drop pipe. • Motor starter to control the operation of the pump system. • 24 -hour timer to control the operation of the pump. • 3 -inch diameter calibrated flow meter. • Concrete pedestal to mount starter, pump and motor control features. • Protective fiberglass enclosure for control features. • 8 -inch Simmons cast iron well seal. • 3/16 -inch stainless steel safety cable. The cost for Task 2 elements is $41,400.00 lump sum. The proposed cost for Task 2 assumes the installation of a 10- horsepower pump motor. If the well's productive capacity is such that a larger or smaller capacity pump is required, the cost will be adjusted based on the following schedule. The reduction from a 10- horsepower pump to 7.5- horsepower pump will reduce the cost by $210.00 and the reduction to a 5- horsepower pump will reduce the cost by $565.00. If a larger Australia • Belgium • Canada • Colombia - Ecuador - Germany • Indonesia Kenya • New Zealand - Nigeria • Papua New Guinea • Peru • Philippines • Singapore United Arab Emirates • United Kingdom • United States • Operations in over 100 countries Cedar Hammock CDD February 8, 2016 C4� Car -dno, Shaping the Future capacity pump is required, the installation of a 15- horsepower pump will increase the cost by $615.00. The total cost for Task 1 and 2 elements is $61,900.00 lump sum. The location of Well #6 needs to be determined in coordination with Cedar Hammock CDD input. The as -built location of Well #6 may be varied somewhat from its permitted location without requiring any permit modifications. The ability to vary the location of the well is advantageous to reduce the impacts to existing facilities and to position the well in the most favorable location relative to electrical supply. Additionally, the routing for the discharge line from Well 44 to the lake will need to be determined. Based on the variability of the location of Well #6 and the need to determine the optimal routing of discharge from Well #4, this proposal does not include a cost for electrical power supply for both wells or installing the well discharge lines from the wells to the lake system. A separate proposal will be provided for these additional services upon request once the location of Well #6 and the routing of discharge lines have been determined. The cost assumes clear access to the well site, which will be staked by the Client (with Cardno assistance, if requested). This proposal does not constitute a guarantee from Cardno with regard to the quantity and quality of water produced from the proposed well. Underground utility locations will be conducted by Client prior to construction. The well drilling contractor will exercise due diligence and take precautions to avoid damage to existing facilities as a result of normal construction activities. However, considering the need to mobilize a drill rig to the well site, Cardno and the drilling contractor are not responsible for damages to power, water, irrigation, cable TV, fiber optic, phone, gas, LP gas, curbs, landscaping or other existing facilities. Additionally, Cardno the drilling contractor are not responsible for site restoration of plants, grass, sidewalks, concrete, asphalt, trees, paint, or other items which may be impacted by the required site activities. Cardno appreciates the opportunity to provide a proposal for hydrogeological services on your behalf. Please find attached a Professional Services Agreements. If this proposal is acceptable, please execute two copies of the Agreement, retain one for your files, and return the other to Cardno. You may forward a copy of the authorization via email to expedite the start of work. Should you have any comments or questions, or require additional information, please do not hesitate to contact us. Sincerely, Stephan P. Kohlmeier Water Resource Analyst Cardno Direct Line: 239.829.7011 Email: stephan. kohlmeier(a)cardno.com Enc: Professional Services Agreement (2 Originals) File: Cedar HammockTroposals %k _ ch_ct_pro_2.8.2016 Gary Susdoff HydrogeologistlSenior Project Scientist Cardno Direct Line: 239.829.7025 Email: gary.susdorf(&cardno.com www.cardno.com CLIENT: Cedar Hammock CDD c/o Severn Trent 5911 Country Lakes Drive Fort Myers, FL 33905 Cal Teague Phone: (239) 245 -7118 Email: cteague @sevemtrentms.00m Date: February 8, 2016 Cardno Project ID: N/A CARDNO: Fort Myers Phone: (239) 829 -7025 Cardno Contact: Gary Susdorf Email: gary.susdorf@cardno.com Project Name /Location: Cedar Hammock Well & Pump Systems, Naples, Florida Fee Type: Lump Sum Retainer: A retainer in the amount of $0.00 will be paid to Cardno upon contract execution and prior to the start of work. The retained amount will be credited on the final invoice(s) for services contracted under this Agreement. Estimated Budget: $61,900.00 Scope of Services. Outlined in proposal dated February 8, 2016 Special Conditions: Does not include power supply or discharge line installation. Task 2 cost adjustment to be based on selected pump size. This Agreement and the attached Terms and Conditions and Scope of Services constitute the complete agreement between Cardno and Client with respect to the scope of services hereunder. Fort Myers By: / Print Name: Gary Susdorf Title: Hydrogeologist A3 — Cardno Short Form Agreement Z Wrolwl H1n%CMnts A- I]red& HammwWropmalask_ch cl_pro- ftwmenL2.8.2016.damt Cedar Hammock CDD By: � 1--rL Print Name: k VVC- , AA 6 '0 . C ,4- Title: C M k zn A 0 0-14 C- Z D Page 1 of 2 2012 Y1 TERMS AND CONDITIONS Cardno shall perform the services outlined in this Agreement for the stated fee in accordance with these terms and conditions: 1) Access To Site (if applicable): Upon execution of this Agreement, the Client represents that they have secured legal rights to access the property and authorizes Cardno staff to access the site for activities necessary for the performance of the services. 2) Payment: Invoices for Cardno's services shall be submitted on a monthly basis. Invoices shall be payable within thirty (30) days after the invoice date. In the event that the Client disputes any portion of an invoice, client shall notify Cardno of such disputed items within ten (10) days of invoice date. Retainers /deposits shall be credited on the final invoice. Failure to make any payment when due is a material breach of this Agreement and will entitle Cardno, at its option, to suspend or terminate this Agreement and the provision of the Services. Interest will accrue on accounts overdue by 30 days at the lesser of 1.5 percent per month (18 percent per annum) or the maximum legal rate of interest allowable. In the event any invoice has not been paid in full within ninety (90) days of the invoice date, Cardno shall have the right to immediately suspend all or any portion of the Services hereunder indefinitely pending payment in full of such invoice(s). 3) Indemnification: Cardno and Client shall indemnify and hold harmless each other from and against damages, liabilities, costs and expenses, including but not limited to reimbursement of reasonable attorney fees arising out of damages or injuries to persons or property to the extent caused by the negligence, gross negligence or willful misconduct by the other party or anyone acting under its direction or control or on its behalf in the course of its performance under this Agreement; provided that each party's aforesaid indemnity agreement shall not be applicable to any liability based upon willful misconduct or negligence of the other party. In no event shall either party be responsible for any form of consequential damages, including, but not limited to loss of sales, loss of profits, and attorney fees thereon. For purposes of this Paragraph, the duty to indemnify does not include the duty to pay for or to provide an up -front defense against unproven claims or allegations. Where any claim results from the joint negligence, gross negligence or willful misconduct by Client and Cardno, the amount of such damage for which Client or Cardno is liable as indemnitor under this Paragraph shall equal (i) the proportionate part that the amount of such claim attributable to such indemnitors negligence, gross negligence or willful misconduct bears to (ii) the amount of the total claim attributable to the joint negligence, gross negligence or willful misconduct at issue. 4) Limitation of Liabilities: Notwithstanding any other provision in this Agreement, the Client agrees to strictly limit Cardno's liability under this Agreement or arising from the performance or non performance of the Services under any theory of law, including but not limited to claims for negligence, negligent misrepresentation and breach of contract, to the lesser of the fees paid to Cardno for the Services or $ 61,900.00. No claim may be brought against Cardno in contract or tort more than two (2) years after the cause of action arose. Any claim, suit, demand or action brought under this Agreement shall be directed and/or asserted only against Cardno and not against any of Cardno's employees, shareholders, officers or directors. Cardno's liability with respect to any claims arising out of this Agreement shall be limited as provided herein to direct damages arising out of the performance of the Services and Cardno shall not be held responsible or liable whatsoever for any consequential damages, injury or damage incurred by the actions or inactions of the Client, including but not limited to claims for loss of use, loss of profits and loss of markets. 5) Termination: Subject to Paragraph 2, this Agreement will continue in effect until terminated by either party upon thirty (30) days written notice to the other party. In the event of any termination, Cardno shall be paid for all services rendered and reimbursables incurred through the date of notice of termination. In the event of termination, the Client shall pay all additional costs reasonably related to termination of the project and a proportionate amount of the consideration hereunder commensurate with the portion of the project accomplished. 6) Force Majeure: Any suspension, temporary or permanent, in the performance of this Agreement caused by any of the following events and without fault or negligence on the part of the defaulting party shall not constitute a breach of contract: labor strikes, riots, war, acts of governmental authorities, unusually severe weather conditions or other natural catastrophic events, or any other similar event beyond the reasonable control or contemplation of either party. 7) Assignment: Neither party to this Agreement shall, without the prior written consent, of the other party, which shall not be unreasonably withheld, assign the benefit or in any way transfer any claim or obligation under this Agreement or any part hereof. This Agreement shall inure to the benefit of and be binding upon the parties hereto, and except as otherwise provided herein, upon their executors, administrators, successors, and assigns. 8) Ownership of Documents: All report documents produced by Cardno under this Agreement shall be made available to the Client upon receipt of full payment for services rendered. Cardno shall retain ownership of all field notes, computer files and project files used to produce the work products and may make copies of all work products. 9) Governing Law: The validity of this Agreement and any of its terms or provisions, as well as the rights and duties of the parties hereunder, shall be interpreted and governed by the laws of the State of Florida. 10) Legal Construction: In case any one or more of the provisions contained in this Agreement shall for any reason be held to be invalid or unenforceable in any respect, such invalidity or unenforceability shall not affect any other provision hereof. This Agreement shall be construed as if such invalid or unenforceable provision had never been contained herein. 11) Notices: Any notices or written statements hereunder shall be deemed to have been given when mailed by certified or registered mail or via email, with receipt of reply, to the party entitled thereto at its address noted at the top of this Agreement or at such other latest address as it may designate in writing to the other party for this purpose. 12) Entire Agreement: This Agreement supersedes any and all other agreements, either oral or in writing, between the parties relating to the subject matter of this Agreement and is the entire understanding and agreement related thereto. This Agreement may be amended by mutual consent of the parties in writing to be attached hereto and incorporated herein, executed by Cardno's and the Client's respective representatives. 13) Non-Solicitation: Neither party shall knowingly solicit, recruit, hire or otherwise employ or retain the employees of the other working under this Agreement during the term of this Agreement and for one (1) year following the termination or expiration of this Agreement without the prior written consent of the other party. 14) Waiver: Failure by one party to notify the other party of a breach of any provision of this Agreement shall not constitute a waiver of any continuing breach. Failure by one party to enforce any of its rights under this Agreement shall not constitute a waiver of those rights. The waiver by either party of a breach or violation of any provision of this Agreement shag not operate as, or be construed to be, a waiver of any subsequent breach of the same or any other provision hereof. A3 - Cardno Short Form Agreement Page 2 of 2 ZIPro;ect Fi'nkCliwls A- D1CMar Hammc klProposalslak ch cLOro_Agrmmenl_282016dmx 2012 Vi �7 F O :v ti �n tai E E cn U 0 n Ll V O ca cz V M co i 0 W Z w w a N Q Q 0 0 Q ; ? O 0CL aQ o o O O o Ln d o Q W i LO LO co Lo _ L(J CD F N- N N CD H 0 co co N CO : Co c- N V` C9 d C N A Ci a' Cr O O o� .O 3 b O L tp W N' O O O O O N if- CD O Co vs O O h r OW Q) N �? (n n iD c m` f- tp ( 06 N N .... r O C �` C O a C L X O ; : tb C O � m �. c 7 N Q O. }j P2S _ Z W m; . CD V .: -O LQ W 'D '17 ula, of "t LO m Y F 23 o O y Q. N O N m Z C t6 m d 2'.'tfl Q ; ? 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C M 'O O O 0mm� Wr�F- w c d a m d = i C y (d N Y a d C N m W d 'C a 7 C C LL c 3 v X E LAJ w w M W a� C IL LL A Q W Gam) m 0 0 a C 0 lo : !- RESOLUTION 2016 -3 A RESOLUTION OF THE BOARD OF SUPERVISORS OF THE CEDAR HAMMOCK COMMUNITY DEVELOPMENT DISTRICT APPROVING THE BUDGET FOR FISCAL YEAR 2017 AND SETTING A PUBLIC HEARING THEREON PURSUANT TO FLORIDA LAW WHEREAS, the District Manager has heretofore prepared and subinitted to the Board a proposed operating and /or debt service budget for Fiscal Year 2017; a copy of which is attached hereto, and WHEREAS, the Board of Supervisors has considered said proposed budget and desires to set the required public hearing thereon; NOW, THEREFORE BE IT RESOLVED BY THE BOARD OF SUPERVISORS OF THE CEDAR HAMMOCK COMMUNITY DEVELOPMENT DISTRICT; The budget proposed by the District Manager for Fiscal Year 2017 is hereby approved as the basis for conducting apublic hearing to adopt said budget. 2. A public hearing on said approved budget is hereby declared and set for the following date, hour and place: Date: April 11, 2016 Hour: 3:00 P.M. Place: Cedar Hammock Clubhouse 8660 Cedar Hammock Boulevard Naples, Florida Notice of this public hearing shall be published in the manner prescribed in Florida Law. Adopted this 8'h day of February, 2016. CA,, Tom Cook. Chairman 3 Calvin Teague -- Secretary CEDAR HAMMOCK Community Development District Annual Operating Budget Fiscal Year 2017 Version 1 - Approved Tentative Budget: (Printed on 2!9!2416 10am) Prepared by: CEDAR HAMMOCK Community Development District Table of Contents OPERATING BUDGET General Fund Page # Summary of Revenues, Expenditures and Changes in Fund Balances .... ............................... 1 BudgetNarrative .......................................................................... ............................... 2 -4 Exhibit A - Allocation of Fund Balances ............................................. ............................... 5 SUPPORTING BUDGET SCHEDULES 2016 -2017 Non -Ad Valorem Assessment Summary .................................. ............................... 6 Cedar Hammock Community Development District Operating Budget Fiscal Year 2017 CEDAR HAMMOCK Community Development District General Fund Summary of Revenues, Expenditures and Changes in Fund Balances Fiscal Year 2017 Proposed Budget EXPENDITURES ProfServ- Engineering 23,957 ADOPTED ACTUAL PROJECTED TOTAL ANNUAL ProfSery -Legal Services ACTUAL BUDGET THRU JAN- PROJECTED BUDGET ACCOUNT DESCRIPTION FY 2015 FY 2016 DEC -2015 SEP -2016 FY 2016 FY 2017 REVENUES 4,195 4,195 4,195 - 4,195 4,195 Interest - Investments $ 2,707 $ 2,017 $ 498 $ 1,500 $ 1,998 $ 2,017 Special Assmnts- Tax Collector 279,650 279,653 254,450 25,203 279,653 279,653 Special Assmnts- Delinquent 350 - - - 673 765 Special Assmnts- Discounts (10,132) (11,186) (10,011) (504) (10,515) (11,186) TOTAL REVENUES 272,575 270,484 244,937 26,199 271,136 270,484 EXPENDITURES ProfServ- Engineering 23,957 20,000 - 10,000 10,000 15,000 ProfSery -Legal Services 627 3,000 250 500 750 2,000 ProfServ-Mgmt Consulting Sery 34,123 35,146 8,786 26,360 35,146 36,200 ProfServ- Property Appraiser 4,195 4,195 4,195 - 4,195 4,195 ProfServ- Special Assessment 2,772 2,855 2,855 - 2,855 2,855 Auditing Services 5,000 5,000 - 5,000 5,000 5,000 Postage and Freight 425 1,065 123 550 673 765 Insurance - General Liability 7,061 8,120 7,135 - 7,135 7,500 Printing and Binding 633 700 334 664 998 1,000 Legal Advertising 668 2,000 419 500 919 1,500 Misc -Bank Charges 609 600 181 400 581 600 Misc- Assessmnt Collection Cost 3,297 5,593 4,889 504 5,393 5,593 Misc -Web Hosting 345 800 232 450 682 850 Office Supplies 44 400 121 240 361 400 Annual District Filing Fee 175 175 175 - 175 175 Total Administrative 83,931 89,649 29,695 45,168 74,863 83,633 Field ProfServ-Field Management 500 700 - 700 700 1,450 Contracts -Water Mgmt Services 7,200 7,200 1,800 5,400 7,200 7,200 Contracts -Water Quality 10,910 10,910 4,535 6,375 10,910 10,910 Utility - Cameras 1,136 1,200 320 1,080 1,400 1,200 R &M -Lake - 3,000 156 2,500 2,656 3,000 R &M -Plant Replacement 3,533 - 3,015 Misc - Contingency 1,938 16,000 5,000 5,000 18,251 Capital Outlay 5,631 24,825 15,000 15,000 24,825 Reserve - Bridges - 15,000 - - 15.000 Reserve - Bulkheads 40,041 15,000 30,000 30,000 15,000 Reserve - Lakes 15,000 72,000 72,000 15,000 Reserve - Roadways 120,767 72,000 - - - 72,000 TotaiField 191,656 180,835 6,811 138,066 144,866 186,851 TOTAL EXPENDITURES 275,587 270,484 36,606 183,223 219,729 270,484 Net change in fund balance (3,012) - 208,431 (157,024) 51,407 0 FUND BALANCE, BEGINNING 668,162 665,150 665,150 - 665,150 716,557 FUND BALANCE, ENDING $$ 6® $$ 6 $ 873,581 $ (157,024) $ 716,657 $ 716,557 Annual Operating Budget Fiscal Year 2017 Page 1 Cedar Hammock Community Development District General Fund Budget Narrative Fiscal Year 2017 REVENUES: Interest Income The District earns interest on the monthly average collected balance for their operating accounts, money market accounts and certificates of deposits. Special Assessments - Tax Collector The District will levy a Non -Ad Valorem assessment on all sold and platted parcels within the District in order to pay for the operating expenditures during the Fiscal Year. Special Assessments Discounts Per Section 197.162, Florida Statutes, discounts are allowed for early payment of assessments. The budgeted amount for the fiscal year is calculated at 4% of the anticipated Non -Ad Valorem assessments. Administrative; Prof Service - Engineering The District's engineer will be providing general engineering services to the District, i.e., attendance and preparation for monthly board meetings, review invoices, etc. Prof Service - Legal Services The District's legal counsel will be providing general legal services to the District, i.e., attendance & preparation for monthly meetings, review operating & maintenance contracts, etc. Prof Service - Management Consulting Sery The District receives Management, Accounting and Administrative services as part of a Management Agreement with Severn Trent Environmental Services, Inc. These services are further outlined in Exhibit "A" of the Management Agreement. Prof Service - Property Appraiser The Property Appraiser provides the District with a listing of the legal description of each property parcel within the District boundaries, and the names and addresses of the owners of such property. The District reimburses the Property Appraiser for necessary administrative costs incurred to provide this service. Per the Florida Statutes, administrative costs shall include, but not be limited to, those costs associated with personnel, forms, supplies, data processing, computer equipment, postage, and programming. The budget for property appraiser costs was based on 1.5% of gross assessments. Annual Operating Budget Fiscal Year 2017 Page 2 Cedar Hammock Community Development District General Fund Budget Narrative Fiscal Year 2017 Prof Service - Special Assessment The District's Collection Agent will be providing financials services which include the collection of prepaid assessments, maintenance of District's assessment roll and levying the annual operating and maintenance assessments. Auditing Services The District is required annually to conduct an audit of its financial records by an Independent Certified Public Accounting Firm. Postage and Freight Mailing of agenda packages, overnight deliveries, correspondence, etc. Insurance - General Liability The District's General Liability & Public Officials Liability Insurance policy is with The Florida League of Cities, Inc. The Florida League of Cities, Inc. specializes in providing insurance coverage to govemmental agencies. Printing & Binding Printing and Binding agenda packages for board meetings, printing of computerized checks, stationary, envelopes etc. Legal Advertising The District is required to advertise various notices for monthly Board meetings, public hearings, etc. in a newspaper of general circulation. Misc - Bank Charles Bank analysis fees that are incurred during the year. Misc-Assessment Collection Costs The District reimburses the Tax Collector for her or his necessary administrative costs. Per the Florida Statutes, administrative costs shall include, but not be limited to, those costs associated with personnel, forms, supplies, data processing, computer equipment, postage, and programming. The District also compensates the Tax Collector for the actual cost of collection or 2% on the amount of special assessments collected and remitted, whichever is greater. The budget for collection costs was based on a maximum of 2% of the anticipated assessment collections. Misc — Web Hosting The District incurs expenses to maintain their website. Office Supplies Miscellaneous office supplies required for the preparation of agenda packages. Annual Operating Budget Fiscal Year 2017 Page 3 Cedar Hammock Community Development District General Fund Budget Narrative Fiscal Year 2017 Annual District Filing Fee The District is required to pay an annual fee to the Department of Economic Opportunity Division of Community Development for $175. Field Services: Prof Service — Field Management The District contracted with Sevem Trent Services to inspect the field and provide an annual report. Contracts — Water Mgmt Services Professional services for environmental permit compliance. Currently all fees associated with the renewal of the Water Use Permit. Contracts - Water Ouality Monitoring Services Testing and other professional services in monitoring water quality for reporting to regulatory agencies. Utility — Cameras Comeast provides monitoring services for the District's gate cameras. R &M - Lake Repair and maintenance expenses related to lakes including washout repairs and erosion. Mise- Contingency Any current year Field expenditure that may not have been provided for in the budget. Capital Outlay Capital expenditures for items such as irrigation equipment or other items meeting capital expenditure requirements with a cost of at least $1,000 and a life expectancy of at least 3 years. Reserve - Bridp-es Funds to be set aside for future bridge expenditures as determined by the BOS. Reserve - Bulkheads Funds to be set aside for future bulkhead expenditures as determined by the BOS. Reserve - Lakes Funds to be set aside for future lake expenditures as determined by the BOS. Reserve - Roadways Funds to be set aside for future roadway expenditures as determined by the BOS. Annual Operating Budget Fiscal Year 2017 Page 4 CEDAR HAMMOCK Community Development District General Fund Exhibit "A" Allocation of Fund Balances AVAILABLE FUNDS Amount Beginning Fund Balance - Fiscal Year 2017 $ 716,557 Net Change in Fund Balance - Fiscal Year 2017 - Reserves - Fiscal Year 2017 Additions 117,000 Total Funds Available Estimated • 9/3012017 833,557 ALLOCATION OF AVAILABLE FUNDS Assigned Fund Balance Operating Reserve - First Quarter Operating Capital 38,371 Reserves - Bridges FY 2011 Reserve Funding 9,477 FY 2012 Reserve Funding 23,703 FY 2013 Reserve Funding 25,000 FY 2014 Reserve Funding 15,000 FY 2015 Reserve Funding 15,000 FY 2016 Reserve Funding 15,000 FY 2017 Reserve Funding 15,000 118,180 Reserves - Bulkheads FY 2011 Reserve Funding 40,000 FY 2012 Reserve Funding 38,245 FY 2013 Reserve Funding 47,000 FY 2014 Reserve Funding 15,000 FY 2015 Reserve Funding 15,000 FY 2015 Use of Reserve Funding (40,041) FY 2016 Reserve Funding (projected) (15,000) FY 2017 Reserve Funding 15,000 115,204 Reserves - Lakes FY 2011 Reserve Funding 14,627 FY 2012 Reserve Funding 36,833 FY 2013 Reserve Funding 19,000 FY 2014 Reserve Funding 15,000 FY 2015 Reserve Funding 15,000 FY 2016 Reserve Funding (projected) (57,000) FY 2017 Reserve Funding 15,000 58,460 Reserves - Roadways FY 2011 Reserve Funding 145,000 FY 2012 Reserve Funding 23,375 FY 2013 Reserve Funding 25,223 FY 2014 Reserve Funding 72,000 FY 2015 Use of Reserve Funding (120,767) FY 2016 Reserve Funding 72,000 FY 2017 Reserve Funding 72,000 288,831 Subtotal 619,046 Total Allocation of Available Funds 619,046 Total Unassigned (undesignated) Cash $ 214,611 Notes (1) Represents approximately 3 months of operating expenditures Annual Operating Budget Fiscal Year 2017 Page 5 Cedar Hammock Community Development District Supporting Budget Schedules Fiscal Year 2017 CEDAR HAMMOCK Community Development District Cedar Hammock Community Development District 2016 -2017 Assessment IO &M Assessment Product FY 2016 FY 2017 Percent Change All Units $ 350.00 $ 350.00 0.0% Annual Operating Budget Fiscal Year 2017 Page 6 Cedar. Hammock Community Development District December 31, 2015 Prepared by CEDAR HAMMOCK Community Development District Table of Contents FINANCIAL STATEMENTS Balance Sheet ........................... Statement of Revenues, Expenditures and Changes in Fund Balances General Fund SUPPORTING SCHEDULES Non -Ad Valorem Special Assessments Accounts Payable Report & Invoice Copies ........................... ............................... Cash and Investment Report ................ ....... ........ I .......... .............. I. Suntrust Bank Reconciliation ........................... ............................... Check Register & Invoice Copies ............................... I .......... ................ Page 1 Page 2 Page 3 Pages 4 - 6 Page 7 Page 8 Pages 9 - 21 CEDAR HAMMOCK Community Development District Financial Statements (Unaudited) December 31, 2015 CEDAR HAMMOCK Community Development District Balance Sheet December 31, 2015 ACCOUNT DESCRIPTION TOTAL ASSETS Cash - Checking Account $ 310,977 Interest/Dividend Receivables 350 Investments: Certificates of Deposit - 18 Months 100,000 Money Market Account 469,251 TOTAL ASSETS $ 880,578 LIABILITIES Accounts Payable $ 6,147 Accrued Expenses 850 ITOTAL LIABILITIES 6,997 FUND BALANCES Assigned to: Operating Reserves 38,371 Reserves - Bridges 88,180 Reserves - Bulkheads 115,204 Reserves - Lakes 100,460 Reserves - Roadways 216,831 Unassigned: 314,535 TOTAL FUND BALANCES $ 873,581 TOTAL LIABILITIES & FUND BALANCES $ 880,578 General Fund Report Date: 1/25/2016 Page 1 CEDAR HAMMOCK Community Development District Statement of Revenues, Expenditures and Changes in Fund Balances For the Period Ending December 31, 2015 General Fund ANNUAL ADOPTED YTD YTD VARIANCE {$) DEC -15 ACCOUNT DESCRIPTION BUDGET BUDGET ACTUAL FAV(UNFAV) ACTUAL REVENUES. 20,000 5,000 - 5,000 - Interest - Investments $ 2,017 $ 504 $ 498 $ (6) $ 170 Special Assmnts- Tax Collector 279,653 240,837 254,450 13,613 69,650 Special Assmnts- Discounts (11,186) (10,771) (10,011) 760 (2,574) TOTAL REVENUES 270,484 230,570 244,937 14,367 67,246 EXPENDITURES ProfServ- Engineering 20,000 5,000 - 5,000 - ProfServ-Legal Services 3,000 750 250 500 250 ProfServ-Mgmt Consulting Sery 35,146 8,787 8,786 1 2,929 ProfServ- Property Appraiser 4,195 4,195 4,195 - - ProfServ- Special Assessment 2,855 2,855 2,855 2,855 Auditing Services 5,000 - - - Postage and Freight 1,065 266 123 143 5 Insurance - General Liability 8,120 8,120 7,135 985 - Printing and Binding 700 175 334 (159) 166 Legal Advertising 2,000 501 419 82 - Misc -Bank Charges 600 150 181 (31) 99 Misc- Assessmnt Collection Cost 5,593 4,817 4,889 (72) 1,342 Misc -Web Hosting 800 200 232 (32) 132 Office Supplies 400 100 121 (21) 61 Annual District Filing Fee 175 175 175 Total Administration 89,649 36,091 29,695 6,396 7,839 Field ProfServ-Field Management 700 700 - 700 - Contracts -Water Mgmt Services 7,200 1,800 1,800 - 600 Contracts -Water Quality 10,910 2,728 4,535 (1,807) - Utility - Cameras 1,200 300 320 (20) 113 R &M -Lake 3,000 750 156 594 - Misc- Contingency 16,000 4,000 4,000 Capital Outlay 24,825 6,205 6,205 - Reserve - Bridges 15,000 15,000 15,000 - Reserve - Bulkheads 15,000 15,000 15,000 Reserve - Lakes 15,000 15,000 15,000 Reserve - Roadways 72,000 72,000 72,000 Total Field 180,835 133,483 6,811 126,672 713 TOTAL EXPENDITURES 270,484 169,574 36,506 133,068 8,552 Net change in fund balance $ - $ 60,096 $ 208,431 $ 147,435 $ 58,694 FUND BALANCE, BEGINNING (OCT 1, 2016) 665,150 665,150 665,150 FUND BALANCE, ENDING $ 665,150 $ 726,146 $ 873,581 Report Date: 1/2512016 Page 2 CEDAR HAMMOCK Community Development District Supporting Schedules December 31, 2015 Cedar Hammock Community Development District Non -Ad Valorem Special Assessments (Collier County Tax Collector - Monthly Collection Distributions) For the Fiscal Year Ending September 30, 2016 Date Received Net Amount Received Discount / (Penalties) Amount County Expense Amount Gross Amount Received Assessments Levied $279,650 Allocation % 100 %'I 11/04115 $ 3,249 $ 185 $ 66 $ 3,500 11/16/15 51,368 2,184 1,048 54,600 11/30/15 119,199 5,068 2,433 126,700 1 2/14/15 51,755 2,138 1,056 54,950 12/31/15 13,979 436 285 14,700 TOTAL $ 239,550 $ 10,011 $ 4,889 $ 254,450 % COLLECTED 91% TOTAL OUTSTANDING $ 25,200 Report Date: 1/25/2016 Prepared by: Severn Trent Management Services Page 3 Aged Accounts Payable ABedOv_erdueAmounts Cedar Hammock COD (Detail, aged as of December 31, 2015) Current Up To 30 Days Aged by due date. Over 60 Days Curr. Contact: Document Number is External Document No. No. Name , _ _ _ _ Document 0.00 Due Date Description Type Number Balance Due 6 SEVERN TRENT ENVIRONMENTAL Phone: 281- 578 -4200 1211812015 DEC MGMT FEE, EMAIL Invoice 2082270 3,291.88 12/18/2015 FY2016 ASSESSMENT ROLL Invoice 2082392 2,855.00 6 Total Amount Due 0.00 6,146.68 Report Total Amount Due (USD) 6,146.68 Monday, January 25, 2016 1 :35 PM Page 1 STSWATERWPOLANEC ................ ABedOv_erdueAmounts Doc. Current Up To 30 Days 31 - 60 Days Over 60 Days Curr. Contact: 0.00 3,291.88 0.00 0.00 0.00 2,65500 0.00 0.00 000 6,146.88 0.00 0.00 0.00% 100.00% 0.00% 0.00% 0.00 6,146.88 0.00 0.00 0.00% 100.00% 0.00% 0.00% Page 4 Severn Trent Environmental Services, Inc. 16337 Park Row Houston, Texas 77084 Telephorie 281578 4200 Fax 281398 3715 Management Services SRO INVOICE' STES 2082270 Page: 1 1 Invoice Gate: 12!18115 Salesperson: u�LI TOi .­11...__..' . . ..... . .... . ..... .... r. 1-00077 I CEDAR fIJA"OCK CDD CEDAR IIAMOCK CDO 210 N UNIVERSITY DR 210 N UNIVERSITY DR S STE 702 TE 702 CORAL SPRINGS Fj., 33071 j CORAL SPRINGS F1 33071 USA SA REF Cust PO S147020 Item: Description DECEMBER 2015 MANAGEMENT FEES MANAGEMENT FEE- ADMIN 001.531027,51201.5000 MANAGEMENT FEES-FIELD OP SVC 001.531016.53901.5000 POSTAGE 001.541006.51301..5000 COPIES 001.54700'..51301.5000 PHONE 001.541003,51301.5000 OFFICE SUPPLIES 001.551002.51301.5000 FAXES 001.541003.51301,5000 WEB HOSTING OCT - SEFT 2016 MONTHLY WEBSITE FEE PASS THRU 10/21/15 CAL TEAGUE, D14H C09XDDy,CCJ'M EMAIL RENEWAL $81-50 RECEIVED CORAL SPRINGS, FL DEC 2 4 2015 SEVERN TRENT- ENVIRONMENTAL SERVICES, INC. Ship Via Terms NET 30 DAYS Di t Quantity U/M Price Extension 1.00 EA 2,928.83 2,928.83 .00 EA 0.00 0.00 1.00 EA 4.65 4.65 1.00 EA 166.40 3.66.40 .00 EA 0.00 0.00 4.00 EA 60150 60.50 00 EA 0.00 0.00 1.00 EA 50.00 50.00 1.00 EA 81.50 81.50 DETACH AND RETURN WITH REMITTANCE Invoice: 2082210 Custoluc­r: 1-00077 CEDAR i!21mOCY CDD REMIT TO: Severn Tient Environmental Services, Inc. Mail Code 5161 P.O. Box 660367 Dallas, TX 75266-0367 Sub Total; 3'291.86 Misc Charges: 0.00 Freight: 0.00 Tax Amount: 0.00 To-,,al; 3,291,89 3,291.89 Page 5 flcnnittaficc Amount Severn Trent Environmental Services, Inc. 16337 Park Row, Houston, Texas 77084 Telephone 281578 4200 Fax 281 398 3715 Management Services SRO INVOICE: STES 2092392 Page: Invoice Date: 1.2. /1-8 /-15 Sai'asperson! ,,cis? TO 1-00077 CEDAR HAMMOCK CDD CKDAR HAMMOCK CDD 210 N UNIVERSITY DR 210 N UNIVERSITY DR STE 702 i STE 702 C CORAL SPRINGS FL 33071 ORAL SPRINGS FL 33071 USA USA REF Cost PO Ship Via Terns 5147021 14ET 30 DAYS I L elft; Description Quanrity U /M Price Extension ASSESSMENT ROLL SERVICES 1.00 GA 2,855.00 2,855.00 RECEIVED CORAL SPRINGS, FL DEC 2 4 2015 SEVERN TRENTENVIRONMENTAL SERViCES, INC DETACH AND RETURN WITH REMITTANCE Invoice: EDAR k L %1voice. 2082392 Customer- 1-000,'� AI t 10' -K COD REMIT TOO Severn Trent Environmental Services, Inc. Mail Code 5161 P.O. Box 660367 Dallas. TX 75266-0367 Sub Totai: Charges: Freight: Tax Amount: Total: 21855.00 0.00 0.00 0,00 2,855,00 2,855.100 Page 6 11ca rnii'anGe Al'f100-It CEDAR HAMMOCK Community Development District Cash and Investment Report December 31, 2015 General Fund Account Name Bank Name Investment Type Checking Account - Operating SunTrust Bank n/a Certificate of Deposit Stonegate Bank 18 month CD Money Market Account Stonegate Bank Public Funds MMA ' "1/18/16 - Purchased 12 mo CD @ BankUnited 0.80% for $200,000 Report Date: 1/25/2016 Prepared By: Severn Trent Management Services Maturi Yield n/a 0,01% 8/10/16 0.60% n/a 0.40% Total All Funds Balance $ 310,977 100,000 469,251 $ 880,228 Page / Cedar Hammock CDD Bank Reconciliation Bank Account No. 9995 SunTrust - GF Statement No. 12 -15 Statement Date 12/31/2015 GIL Balance (LCY) 310,976.98 Statement Balance 311,015.32 GIL Balance 310,976.98 Outstanding Deposits 0.00 Positive Adjustments 0.00 -- -- Subtotal 311,015.32 Subtotal 310,976.98 Outstanding Checks 38.34 Negative Adjustments 0.00 Differences 0.00 Ending GIL Balance 310,976.98 Ending Balance 310,976.98 Difference 0.00 Posting Document Document Cleared Date Type No. Description Amount Amount Difference Outstanding Checks 12/22/2015 Payment 001685 COLLIER COUNTY TAX COLLECTOR 38.34 0.00 38.34 TotalOutstanding Checks ....................................................................................... ............................... 38.34 38.34 Page 8 V 1L N_ 0 �i V O � cL TT O i d V N r M N � r _ U- Z y � V to oc` a w =aN ci d Y O LL Y C U 3 d O t E U Q c 3 V Q J d E d z 0 O U 4 J O U d 0 d V .; r O z O C T a Y y d t U � v c p LL 2 O Cl) ap ZO to (M O 0 0 0 M O O cc}} ^ A O O d C a D a. 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(~O d' r.- d (n0 `v t00 m v d J 2 — o r o o o 0 0 0 0 4 ga oa oa g� oa gaaaaa W xc at at xk as Y Y Y Y Y p Y W w p w p w 00 w p w 0 w p p p p O t9 () Q u v u u U Ef d � � c E a 0 0 U a Z) o ZO (yS z m O Q w Q w w o z Q� z m LL (o 2 O O a A d CL j N LL' O Z N N U) (o M O N N 00 M N LL' 0 F- 0 w U J J Z O U w X H 7 U X K z w C F F- Z W Q U 0 a a o Q U U U M c N 0 w co 00 f0 W ( N O N' to N 41 oa oa ga 4t Y Y Y Y i O = O w O = 00 0 U U U 1 O) rn N a N 2 m C d E Of A CL 'o H d N w 0 U, N d m 0 r 0 n rU Cedar Hammock Community Development District ANNUAL FINANCIAL REPORT September 30, 2015 Cedar Hammock Community Development District ANNUAL FINANCIAL REPORT Fiscal Year Ended September 30, 2015 TABLE OF CONTENTS Page Number REPORT OF INDEPENDENT AUDITORS 1 -2 MANAGEMENT'S DISCUSSION AND ANALYSIS 3 -7 BASIC FINANCIAL STATEMENTS: Government -wide Financial Statements Statement of Net Position 8 Statement of Activities 9 Fund Financial Statements: Balance Sheet — General Fund 10 Reconciliation of Total Governmental Fund Balances to Net Position of Governmental Activities 11 Statement of Revenues, Expenditures and Changes in Fund Balances — General Fund 12 Reconciliation of the Statement of Revenues, Expenditures and Change in Fund Balances of Governmental Funds to the Statement of Activities 13 Statement of Revenues, Expenditures and Change in Fund Balances — Budget and Actual — General Fund 14 Notes to Financial Statements 15 -23 INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 24 -25 MANAGEMENT LETTER 26 -27 INDEPENDENT ACCOUNTANT'S REPORT I COMPLIANCE WITH SECTION 218.415, FLORIDA STATUTES 28 ee,rc Berger, Toombs, Elam, Gaines & Frank Certified Public Accountanu PL 600 Cilrus Avenue Suite 200 Fort Pierce, Florida 34950 772/461.6120 // 461 -1155 FAX: 772/468-9278 REPORT OF INDEPENDENT AUDITORS To the Board of Supervisors Cedar Hammock Community Development District Collier County, Florida Report on the Financial Statements We have audited the accompanying financial statements of the govemmental activities and the General Fund of Cedar Hammock Community Development District as of and for the year ended September 30, 2015, and the related notes to 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 an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Accounting 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 opinion. Fort Pierce / Stuart -1- Member AICPA Member AICPA Division For CPA Firms Member FICPA Private Companies Practice Section <<C? Berger, Toombs, Elam, Gaines & Frank I- w.- h To the Board of Supervisors Cedar Hammock Community Development District Opinion 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 General Fund of Cedar Hammock Community Development District, as of September 30, 2015, and the respective changes in financial position and the budgetary comparison for the General Fund for the year then ended in conformity 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 Discussion and Analysis on pages 3 -7 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 a report dated January 26, 2016 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 and contracts. 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 Cedar Hammock Community Development District's internal control over financial reporting and cam liance. � 4 1 Berger, Toombs, Gaines & Frank Certified Public Accountants PL Fort Pierce, Florida January 26, 2016 -2- Cedar Hammock Community Development District MANAGEMENT'S DISCUSSION AND ANALYSIS For the Year Ended September 30, 2015 Management's discussion and analysis of Cedar Hammock Community Development District (the "District ") financial performance provides an objective and easily readable analysis of the District's financial activities. The analysis provides summary financial information for the District and should be read in conjunction with the District's financial statements. OVERVIEW OF THE FINANACIAL STATEMENTS The District's basic financial statements comprise three components; 1) Government -wide financial statements, 2) Fund financial statements, and 3) Notes to financial statements. The Government -wide financial statements present an overall picture of the District's financial position and results of operations. The Fund financial statements present financial information for the District's major funds. The Notes to financial statements provide additional information concerning the District's finances. The Government -wide financial statements are the statement of net position and the statement of activities. These statements use accounting methods similar to those used by private- sector companies. Emphasis is placed on the net position of governmental activities and the change in net position. Governmental activities are primarily supported by special assessments. The statement of net position presents information on all assets and liabilities of the District, with the difference between assets and liabilities reported as net position. Net position are reported in two categories; invested in capital assets, net of related debt, and unrestricted. Assets, liabilities and net position are reported for all Governmental activities. The statement of activities presents information on all revenues and expenses of the District and the change in net position. Expenses are reported by major function and program revenues relating to those functions are reported, providing the net cost of all functions provided by the District. To assist in understanding the District's operations, expenses have been reported as governmental activities. Governmental activities financed by the District include general government, physical environment and interest on long term debt. Fund financial statements present financial information for governmental funds. These statements provide financial information for the major governmental funds of the District. Governmental fund financial statements provide information on the current assets and liabilities of the funds, changes in current financial resources (revenues and expenditures), and current available resources. -3- Cedar Hammock Community Development District MANAGEMENT'S DISCUSSION AND ANALYSIS For the Year Ended September 30, 2015 OVERVIEW OF THE FINANACIAL STATEMENTS (CONTINUED) Fund financial statements include a balance sheet and a statement of revenues, expenditures and changes in fund balances for all governmental funds. A statement of revenues, expenditures, and changes in fund balances — budget and actual, is provided for the District's General Fund. Fund financial statements provide more detailed information about the District's activities. Individual funds are established by the District to track revenues that are restricted to certain uses or to comply with legal requirements. The government -wide financial statements and the fund financial statements provide different pictures of the District. The government -wide financial statements provide an overall picture of the District's financial standing. These statements are comparable to private- sector companies and give a good understanding of the District's overall financial health and how the District paid for the various activities, or functions, provided by the District. All assets of the District, including buildings, land, roads, bridges, and traffic signals are reported in the statement of net position. All liabilities, including principal outstanding on bonds, are included. The statement of activities includes depreciation on all long lived assets of the District, but transactions between the different functions of the District have been eliminated in order to avoid "doubling up" the revenues and expenses. The fund financial statements provide a picture of the major funds of the District. In the case of governmental activities, outlays for long lived assets are reported as expenditures and long term liabilities, such as general obligation bonds, are not included in the fund financial statements. To provide a link from the fund financial statements to the government -wide financial statements, a reconciliation is provided from the fund financial statements to the government -wide financial statements. Notes to financial statements provide additional detail concerning the financial activities and financial balances of the District. Additional information about the accounting practices of the District, investments of the District, capital assets and long term debt are some of the items included in the notes to financial statements. Financial Highlights: The following are the highlights of financial activity for the year ended September 30, 2015. ♦ The District's total assets exceeded total liabilities by $14,221,425 (net position). Unrestricted net position for Governmental Activities was $665,150. Net investment in capital assets was $13,556,275. ♦ Governmental Activities revenues totaled $272,575 while governmental activities expenses totaled $425,408. -4- Cedar Hammock Community Development District MANAGEMENT'S DISCUSSION AND ANALYSIS For the Year Ended September 30, 2015 OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED) Financial Analysis of the District The following schedule provides a summary of the assets, liabilities and net position of the District and is presented by category for comparison purposes. Net Position Current assets Capital assets Total Assets Current liabilities Net position - net investment in capital assets Net position - unrestricted Total Net Position Governmental Activities 2015 2014 $ 687,247 $ 677,624 13, 556,275 13,706,097 14, 243, 522 14, 383, 721 22,097 9,463 13, 556, 275 13, 706, 097 665,150 668,161 $ 14,221,425 $ 14,374,258 The increase in current liabilities is primarily due to significant repairs occurring near year -end. The decrease in capital assets and net position — net investment in capital assets is primarily due to disposal of capital assets and depreciation in the current year. 1611 Cedar Hammock Community Development District MANAGEMENT'S DISCUSSION AND ANALYSIS For the Year Ended September 30, 2015 OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED) Financial Analysis of the District (Continued) The following schedule provides a summary of the changes in net position of the District and is presented by category for comparison purposes. Governmental Revenues Charges for services Investment earnings Total Revenues Expenses General government Physical environment Total Expenses Change in Net Position Net Position - Beginning of Year Net Position - End of Year Change in Net Position Governmental Activities 2015 2014 $ 269,868 $ 269,214 2,707 2,305 272,575 271,519 83,930 81,716 341,478 270,356 425,408 352,072 (152,833) (80,553) 14, 374, 258 14, 454, 811 $ 14,221,425 $ 14,374,258 The increase in physical environment expenditures is primarily due to significant repairs to roads, walking path, bulkheads. Cedar Hammock Community Development District MANAGEMENT'S DISCUSSION AND ANALYSIS For the Year Ended September 30, 2015 OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED) Capital Assets Activity The following schedule provides a summary of the District's capital assets as of September 30, 2015 and 2014. Description Land and improvements Buildings and improvements Infrastructure Equipment Accumulated depreciation Total Capital Assets (Net) Governmental Activities 2015 2014 $ 10,991,512 $ 10,991,512 230,362 230,362 5,640,011 5,580,627 35,472 29,841 (3,341,082) (3,126,245) $ 13,556,275 $ 13,706,097 During the year, the District added $118,767 of infrastructure and $5,631 of equipment, disposed of infrastructure with a net value of $29,910, and depreciation was $244,310. General Fund Budgetary Highlights The budget for September 30, 2015 was amended to provide for engineering fees and physical environment costs. The budget exceeded actual government expenditures primarily due to less capital outlay expenditures than were anticipated. Economic Factors and Next Year's Budget Cedar Hammock Community Development District does not expect any economic factors to have any significant effect on the financial position or results of operations of the District in fiscal year 2016. Request for Information The financial report is designed to provide a general overview of Cedar Hammock Community Development District's finances for all those with an interest. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the Cedar Hammock Community Development District, Severn Trent Management Services, Inc., 210 N. University Drive, Suite 702, Coral Springs, Florida 33071. -7- Cedar Hammock Community Development District STATEMENT OF NET POSITION September 30, 2015 LIABILITIES Current Liabilities: Accounts payable and accrued expenses 22,097 NET POSITION Net investment in capital assets 13,556,275 Unrestricted 665,150 Total Net Position $ 14,221,425 See accompanying notes to financial statements. -8- Governmental Activities ASSETS Current Assets: Cash and cash equivalents $ 584,804 Investments 100,000 Interest receivable 350 Due from other governments 2,093 Total Current Assets 687,247 Non - Current Assets: Capital Assets Not Being Depreciated Land and improvements 10,991,512 Capital Assets Being Depreciated Buildings and improvements 230,362 Infrastructure 5,640,011 Equipment 35,472 Less: accumulated depreciation (3,341,082) Total Non- Current Assets 13,556,275 Total Assets 14,243,522 LIABILITIES Current Liabilities: Accounts payable and accrued expenses 22,097 NET POSITION Net investment in capital assets 13,556,275 Unrestricted 665,150 Total Net Position $ 14,221,425 See accompanying notes to financial statements. -8- Cedar Hammock Community Development District STATEMENT OF ACTIVITIES FOR THE YEAR ENDED September 30, 2015 General revenues: Interest earnings 2,707 Total General Revenues 2,707 Change in net position (152,833) Net Position - October 1, 2014 14,374,258 Net Position - September 30, 2015 $ 14,221,425 See accompanying notes to financial statements. -9- Net (Expense) Revenue and Program Changes in Revenues Net Position Charges for Governmental Functions /Programs Expenses Services Activities Primary government Governmental Activities General government $ (83,930) $ 196,368 $ 112,438 Physical environment (341,478) 73,500 (267,978) Total Governmental Activities $ (425,408) $ 269,868 (155,540) General revenues: Interest earnings 2,707 Total General Revenues 2,707 Change in net position (152,833) Net Position - October 1, 2014 14,374,258 Net Position - September 30, 2015 $ 14,221,425 See accompanying notes to financial statements. -9- Cedar Hammock Community Development District BALANCE SHEET - GENERAL FUND September 30, 2015 ASSETS Cash and cash equivalents $ 584,804 Investments 100,000 Interest receivable 350 Due from other governments 2,093 Total Assets $ 687,247 LIABILITIES AND FUND BALANCES Liabilities Accounts payable and accrued expenses $ 22,097 Fund balances Assigned: Roadways 216,831 Bulkheads 115,204 Lakes 100,460 Bridges 88,180 Operating reserves 38,371 Unassigned 106,104 Total Fund Balances 665,150 Total Liabilities and Fund Balances $ 687,247 See accompanying notes to financial statements. -10- Cedar Hammock Community Development District RECONCILIATION OF TOTAL GOVERNMENTAL FUND BALANCES TO NET POSITION OF GOVERNMENTAL ACTIVITIES September 30, 2015 Total governmental fund balances $ 665,150 Amounts reported for governmental activities in the statement of net position are different because: Capital assets not being depreciated, land and improvements, used in governmental activities are not financial resources and therefore, are not reported at the fund statement level. 10,991,512 Capital assets being depreciated; building and improvements, $230,362, infrastructure, $5,640,011, and equipment, $35,472, net of accumulated depreciation, $(3,341,082), used in governmental activities are not financial resources and therefore, are not reported at the fund statement level. 2,564,763 Net Position of Governmental Activities See accompanying notes to financial statements. - 11 - $ 14.221.425 Cedar Hammock Community Development District STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GENERALFUND For the Year Ended September 30, 2015 Revenues Special assessments Interest earnings Total Revenues Expenditures Current General government Physical environment Capital outlay Total Expenditures Net change in fund balances Fund Balances - October 1, 2014 Fund Balances - September 30, 2015 See accompanying notes to financial statements. -12- $ 269,868 2,707 272,575 83,930 67,258 124,398 275,586 (3,011) 668,161 $ 665,150 Cedar Hammock Community Development District RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGE IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For the Year Ended September 30, 2015 Net change in fund balances - total governmental funds $ (3,011) 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 allocated over their estimated useful lives as depreciation expense. This is the amount that depreciation ($(244,310)) and capital disposals ($(29,910)) exceeded capital outlay ($124,398) in the current year. (149,822) Change in Net Position of Governmental Activities $ (152,833) See accompanying notes to financial statements. -13- Cedar Hammock Community Development District STATEMENT OF REVENUES, EXPENDITURES AND CHANGE IN FUND BALANCES - BUDGET AND ACTUAL GENERALFUND For the Year Ended September 30, 2015 Revenues Special assessments Interest earnings Total Revenues Expenditures Current General government Physical environment Capital outlay Total Expenditures Net change in fund balances Fund Balances - October 1, 2014 Fund Balances - September 30, 2015 Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) $ 268,467 $ 268,467 $ 269,868 $ 1,401 2,017 2,017 2,707 690 270,484 270,484 272,575 2,091 87,380 93,880 83,930 9,950 32,706 41,306 67,258 (25,952) 150,398 150,398 124,398 26,000 270,484 285,584 275,586 9,998 - (15,100) (3,011) 12,089 668,162 668,162 668,161 (1) $ 668.162 $ 653.062 —j a65 $ 12.088 See accompanying notes to financial statements. -14 Cedar Hammock Community Development District NOTES TO FINANCIAL STATEMENTS September 30, 2015 NOTE A - SUMMARY OF ACCOUNTING POLICIES The financial statements of Cedar Hammock Community Development District (the "District ") have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard - setting body for establishing governmental accounting and financial reporting principles. The District's more significant accounting policies are described below. 1. Reporting Entity The District was created on November 23, 1999, pursuant to the Uniform Community Development District Act of 1980, Chapter 190, Florida Statutes, as amended (the "Act "), by ordinance of the Board of County Commissioners of Collier County, as a Community Development District. The District was established for the purposes of financing and managing the acquisition, construction, maintenance and operation of the infrastructure necessary for community development within its jurisdiction. The District is authorized to issue bonds for the purpose, among others, of financing, funding, planning, establishing, acquiring, constructing or re- constructing, enlarging or extending, equipping, operating and maintaining water management, water supply, sewer and waste water management, bridges or culverts, district roads, landscaping, street lights and other basic infrastructure projects within or outside the boundaries of the District. The District is governed by a five - member Board of Supervisors who are elected for four year terms. The District operates within the criteria established by Chapter 190. As required by GAAP, these financial statements present the District (the primary government) as a stand -alone government. The reporting entity for the District includes all functions of government in which the District's Board exercises oversight responsibility. Oversight responsibility includes, but is not limited to, financial interdependency, selection of governing authority, designation of management, significant ability to influence operations and accountability for fiscal matters. Based upon the application of the above - mentioned criteria as set forth by the Governmental Accounting Standards Board the District has identified no component units. 2. Measurement Focus and Basis of Accounting The basic financial statements of the District are composed of the following: Government -wide financial statements • Fund financial statements • Notes to financial statements -15- Cedar Hammock Community Development District NOTES TO FINANCIAL STATEMENTS September 30, 2015 NOTE A - SUMMARY OF ACCOUNTING POLICIES (CONTINUED) 2. Measurement Focus and Basis of Accounting (Continued) a. Government -wide Financial Statements Government -wide financial statements report all non - fiduciary information about the reporting government as a whole. These statements include the governmental activities of the primary government. The effect of interfund activity has been removed from these statements. Governmental activities are normally supported by special assessments and interest. Amounts paid to acquire capital assets are capitalized as assets, rather than reported as an expenditure. Proceeds of long -term debt are recorded as liabilities in the government -wide financial statements, rather than as an other financial source. Amounts paid to reduce long -term indebtedness of the reporting government are reported as a reduction of the related liability, rather than as an expenditure. b. Fund Financial Statements The underlying accounting system of the District is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self - balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. Fund financial statements for the primary government's governmental funds are presented after the government -wide financial statements. These statements display information about major funds individually. -16- Cedar Hammock Community Development District NOTES TO FINANCIAL STATEMENTS September 30, 2015 NOTE A — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 2. Measurement Focus and Basis of Accounting (Continued) b. Fund Financial Statements (Continued) Governmental Funds The District classifies fund balance according to Governmental Accounting Standards Board Statement 54 - Fund Balance Reporting and Governmental Fund Type Definitions. The Statement requires the fund balance for governmental funds to be reported in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. The classifications include non - spendable, restricted, committed, assigned and unassigned. The District has a policy governing the fund balance classifications. Nonspendable Fund Balance — This classification consists of amounts that cannot be spent because they are either not in spendable form or are legally or contractually required to be maintained intact. Restricted Fund Balance — This classification includes amounts that can be spent only for specific purposes stipulated by constitution, external resource providers, or through enabling legislation. Assigned Fund Balance — This classification consists of the Board of Supervisors' intent to be used for specific purposes, but are neither restricted nor committed. Unassigned Fund Balance — This classification is the residual classification for the government's general fund and includes all spendable amounts not contained in the other classifications. Unassigned fund balance is considered to be utilized first when an expenditure is incurred for purposes for which amounts in any of those unrestricted fund balance classifications could be used. Fund Balance Spending Hierarchy - For all governmental funds except special revenue funds, when restricted, committed, assigned, and unassigned fund balances are combined in a fund, qualified expenditures are paid first from restricted or committed fund balance, as appropriate, then assigned and finally unassigned fund balances. -17- Cedar Hammock Community Development District NOTES TO FINANCIAL STATEMENTS September 30, 2015 NOTE A — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 2. Measurement Focus and Basis of Accounting (Continued) b. Fund Financial Statements (Continued) Governmental Funds (Continued) Expenditures generally are recorded when a liability is incurred, as under accrual accounting. Interest associated with the current fiscal period is considered to be an accrual item and so has been recognized as revenue of the current fiscal period. Revenues are considered to be available when they are collected within the current period or soon thereafter to pay liabilities of the current period. Under the current financial resources measurement focus, only current assets and current liabilities are generally included on the balance sheet. The reported fund balance is considered to be a measure of "available spendable resources ". Governmental fund operating statements present increases (revenues and other financial sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of "available spendable resources" during a period. Because of their spending measurement focus, expenditure recognition for governmental fund types excludes amounts represented by non - current liabilities. Since they do not affect net current assets, such long -term amounts are not recognized as governmental fund type expenditures or fund liabilities. Amounts expended to acquire capital assets are recorded as expenditures in the year that resources were expended, rather than as fund assets. The proceeds of long -term debt are recorded as an other financing source rather than as a fund liability. 3. Basis of Presentation a. Governmental Major Funds General Fund - The General Fund is the District's primary operating fund. It accounts for all financial resources of the general government. -18- Cedar Hammock Community Development District NOTES TO FINANCIAL STATEMENTS September 30, 2015 NOTE A — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 3. Basis of Presentation (Continued) b. Non - current Governmental Assets /Liabilities GASB Statement 34 requires that non - current governmental assets, such as land and buildings, and non - current governmental liabilities, such as bonds payable, be reported in the governmental activities column in the government -wide statement of net position. 4. Assets, Liabilities, and Net Position or Equity a. Cash and Investments Florida Statutes require state and local governmental units to deposit monies with financial institutions classified as "Qualified Public Depositories," a multiple financial institution pool whereby groups of securities pledged by the various financial institutions provide common collateral from their deposits of public funds. This pool is provided as additional insurance to the federal depository insurance and allows for additional assessments against the member institutions, providing full insurance for public deposits. The District is authorized to invest in those financial instruments as established by Section 218.415, Florida Statutes. The authorized investments consist of., Direct obligations of the United States Treasury; The Local Government Surplus Funds Trust or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperative Act of 1969; Interest - bearing time deposits or savings accounts in authorized qualified public depositories; Securities and Exchange Commission, registered money market funds with the highest credit quality rating from a nationally recognized rating agency. b. Restricted Assets Certain assets of the District and a corresponding liability or portion of net position is classified as restricted on the statement of net position because their use is limited either by law through constitutional provisions or enabling legislation; or by restrictions imposed externally by creditors. In a fund with both restricted and unrestricted assets, qualified expenses are considered to be paid first from restricted net position and then from unrestricted net position. -19- Cedar Hammock Community Development District NOTES TO FINANCIAL STATEMENTS September 30, 2015 NOTE A — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 4. Assets, Liabilities, and Net Position or Equity (Continued) c. Capital Assets Capital assets, which include property, plant and equipment, are reported in the applicable governmental or business -type activities column. The District defines capital assets as assets with an initial, individual cost of $5,000 or more and an estimated useful life in excess of one year. The valuation basis for all assets is historical cost. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend its useful life are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Depreciation of capital assets is computed and recorded by utilizing the straight -line method. Estimated useful lives of the various classes of depreciable capital assets are as follows: Buildings 7 -39 years Improvements other than buildings 20 -40 years Machinery and equipment 5 -10 years d. Budgets Budgets are prepared and adopted after public hearings for the governmental funds, pursuant to Section 200.065 of the Florida Statutes. The District utilizes the same basis of accounting for budgets as it does for revenues and expenditures in its various funds. The legal level of budgetary control is at the fund level. All budgeted appropriations lapse at year end. Formal budgets are adopted for the general and debt service funds. As a result, deficits in the budget columns of the accompanying financial statements may occur. -20- Cedar Hammock Community Development District NOTES TO FINANCIAL STATEMENTS September 30, 2015 NOTE B — RECONCILIATION OF GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS 1. Explanation of Differences Between the Governmental Fund Balance Sheet and the Government -wide Statement of Net Position "Total fund balances" of the District's governmental funds, $665,150, differs from "net position" of governmental activities, $14,221,425, reported in the statement of net position. This difference primarily results from the long -term economic focus of the statement of net position versus the current financial resources focus of the governmental fund balance sheet. The effect of the differences is illustrated below. Capital related items When capital assets (land, buildings, infrastructure and equipment that are to be used in governmental activities) are purchased or constructed, the cost of those assets is reported as expenditures in governmental funds. However, the statement of net position included those capital assets among the assets of the District as a whole. Land and improvements $ 10,991,512 Buildings and improvements 230,362 Infrastructure 5,640,011 Equipment 35,472 Accumulated depreciation (3,341,082) Total S 13,556,2a 2. Explanation of Differences Between the Governmental Fund Operating Statements and the Statement of Activities The "net change in fund balances" for government funds, $(3,011), differs from the "change in net position" for governmental activities, $(152,833), reported in the statement of activities. The differences arise primarily from the long -term economic focus of the statement of activities versus the current financial resources focus of the governmental funds. The effect of the differences is illustrated below. Capital related items When capital assets that are to be used in governmental activities are purchased or constructed, the resources expended for those assets are reported as expenditures in governmental funds. However, in the statement of activities, the costs of those assets is allocated over their estimated useful lives and reported as depreciation expense. As a result, fund balances decrease by the amount of financial resources expended, whereas net position decrease by the amount of depreciation expense charged for the year. Depreciation Capital disposal Capital outlay Total -21 - $ (244,310) (29,910) 124,398 $ (149.822) Cedar Hammock Community Development District NOTES TO FINANCIAL STATEMENTS September 30, 2015 NOTE C - CASH AND INVESTMENTS All deposits are held in qualified public depositories and are included on the accompanying balance sheet as cash and investments. Custodial Credit Risk - Deposits Custodial credit risk is the risk that in the event of a bank failure, the District's deposits may not be returned to it. The District does not have a formal deposit policy for custodial credit risk; however, they follow the provisions of Chapter 280, Florida Statutes regarding deposits and investments. As of September 30, 2015, the District's bank balance was $586,454 and the carrying value was $584,804. Exposure to custodial credit risk was as follows. The District maintains all deposits in a qualified public depository in accordance with the provisions of Chapter 280, Florida Statutes, which means that all deposits are fully insured by Federal Depositors Insurance or collateralized under Chapter 280, Florida Statutes. Investments The District's investment policy allows management to invest funds in investments permitted under Section 218.415, Florida Statutes. The District invested in a certificate of deposit with a fair market value and book value of $100,000. Concentration of Credit Risk The District places no limit on the amount it may invest in any one issuer NOTE D — SPECIAL ASSESSMENT REVENUES Special assessment revenues recognized for the 2014 -2015 fiscal year were levied in October 2014. All taxes are due and payable on November 1 or as soon as the assessment roll is certified and delivered to the Tax Collector. Per Section 197.162, Florida Statutes, discounts are allowed for early payment at the rate of 4% in November, 3% in December, 2% in January, and 1 % in February. Taxes paid in March are without discount. All unpaid taxes become delinquent as of April 1. Virtually all unpaid taxes are collected via the sale of tax certificates on, or prior to, June 1; therefore, there were no material taxes receivable at fiscal year end. -22- Cedar Hammock Community Development District NOTES TO FINANCIAL STATEMENTS September 30, 2015 NOTE E - CHANGES IN FIXED ASSETS Capital asset activity for the year ended September 30, 2015 was as follows: Governmental Activities: Capital assets, not being depreciated: Land and improvements Total Capital Assets, Not Depreciated Capital assets, being depreciated: Building and improvements Infrastructure Equipment Total Capital Assets, Being Depreciated Less accumulated depreciation for: Building and improvements Infrastructure Equipment Total Accumulated Depreciation Total Capital Assets Depreciated, Net Governmental Activities Capital Assets Balance October 1, 2014 Additions Deletions Balance September 30, 2015 $ 10,991,512 $ - $ $ 10,991,512 10,991,512 - 10,991,512 230,362 - 230,362 5,580,627 118,767 59,383 5,640,011 29,841 5,631 - 35,472 5,840,830 124,398 59,383 5,905,845 (153,012) (11,518) - (164,530) (2,958,209) (225,885) (29,473) (3,154,621) (15,024) (6,907) - (21,931) (3,126,245) (244,310) (29,473) (3,341,082) 2,714,585 (119,912) 29,910 2,564,763 $ 13,706,097 $ (119,912) $ 29,910 $ 13,556,275 Depreciation, ($244,310), and loss on disposal of assets, ($29,910), were charged to physical environment. NOTE F - RISK MANAGEMENT The government is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; and natural disasters for which the government carries commercial insurance. -23- .1r Berger, Toombs, Elam, -� Gaines & Frank Certified Public Accountants PL 600 Citrus Avenue Suite 200 Fort Pierce, Florida 34950 772/461.6120 H 461.1155 FAX: 772/468 -9278 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 Cedar Hammock 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 Cedar Hammock Community Development District, as of and for the year ended September 30, 2015, and the related notes to the financial statements, and have issued our report thereon dated January 26, 2016. Internal Control Over Financial Reporting In planning and performing our audit, we considered Cedar Hammock Community Development District's internal control over financial reporting 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 Cedar Hammock Community Development District's internal control. Accordingly, we do not express an opinion on the effectiveness of Cedar Hammock Community Development District's internal control over financial reporting. 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 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 over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control 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. Fort Pier Stuart Member AICPA Member AICPA Division For CPA Firms Member FICPA Private Companies Practice Section 1K Berger, Toombs, Elam, Gaines & Frank To the Board of Supervisors Cedar Hammock Community Development District Collier County, Florida Compliance and Other Matters As part of obtaining reasonable assurance about whether Cedar Hammock Community Development District's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant 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. 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. Berger, oo� s, Elam, Gaines & Frank Certified Public Accountants Fort Pierce, Florida January 26, 2016 -25- << GaigeS & Fran bk, Elam, Certified Pubk Acc uulants PL 600 Citrus Avenue Suite 200 Fort Pierce, Florida 34950 772/461 -6120 // 461 -1155 FAX: 772/468 -9278 MANAGEMENT LETTER To the Board of Supervisors Cedar Hammock Community Development District Collier County, Florida Report on the Financial Statements We have audited the financial statements of the Cedar Hammock Community Development District as of and for the year ended September 30, 2015, and have issued our report thereon dated January 26, 2016. Auditor's Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States; 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 on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and our Independent Auditor's Report on an examination conducted in accordance with AICPA Professionals Standards, Section 601 regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in that report, which is dated January xx, 2016, should be considered in conjunction with this Management Letter. Prior Audit Findings Section 10,554(1)(i)1., Rules of the Auditor General, requires that we address in the Management Letter, if not already addressed in the auditor's report on compliance and internal controls, whether or not recommendations made in the preceding annual financial report have been followed. There were no recommendations made in the preceding audit report. Financial Condition Section 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, requires that we apply appropriate procedures and report the results of our determination as to whether or not Cedar Hammock. Community Development District has met one or more of the conditions described in Section 218.503(1), Florida Statutes, and identification of the specific conditions met. In connection with our audit, we determined that the Cedar Hammock Community Development District did not meet any of the conditions described in Section 218.503(1), Florida Statutes, Fort PioM / Stuart Member AICPA Member AICPA Division For CPA Firms Member FICPA Private Companies Practice Section Berger, Toombs, Elam, E Gaines & Frank To the Board of Supervisors Cedar Hammock Community Development District Pursuant to Sections 10.554(1)(1)5.c. and 10.556(8), Rules of the Auditor General, we applied financial conditions assessment procedures. It is management's responsibility to monitor the Cedar Hammock Community Development District's financial condition; our financial condition assessment was based in part on the representations made by management and the review of the financial information provided by the same. Annual Financial Report Section 10.554(1)(i)5.b, and 10.556(7), Rules of the Auditor General, requires that we apply appropriate procedures and report the results of our determination as to whether the annual financial report for the Cedar Hammock Community Development District for the fiscal year ended September 30, 2015, filed with the Florida Department of Financial Services pursuant to Section 218.32(1)(a), Florida Statutes, is in agreement with the annual financial audit report for the fiscal year ended September 30, 2015, In connection with our audit, we determined that these two reports were in agreement. Other Matters Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the Management Letter any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address 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. In connection with our audit, we did not have any such findings. Purpose of this Letter 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, the Board of Supervisors, and applicable management, and is not intended to be and should not be used by anyone other than these specified parties. Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL Fort Pierce, Florida January 26, 2016 -27- c�c Berger, Toombs, Elam, -� Gaines & Frank Certified Public Accounrama PL 600 Citrus Avenue Suite 200 Fort Pierce, Florida 34950 772/461 -6120 // 461 -1155 FAX: 772/468.9278 INDEPENDENT ACCOUNTANT'S REPORT /COMPLIANCE WITH SECTION 218.415, FLORIDA STATUTES To the Board of Supervisors Cedar Hammock Community Development District Collier County, Florida We have examined Cedar Hammock Community Development District's compliance with Section 218.415, Florida Statutes during the year ended September 30, 2015, Management is responsible for Cedar Hammock Community Development District's compliance with those requirements. Our responsibility is to express an opinion on Cedar Hammock Community Development 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 Cedar Hammock Community Development 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 Cedar Hammock Community Development District's compliance with the specified requirements. In our opinion, Cedar Hammock Community Development District complied, in all material respects, with the aforementioned requirements during the year ended September 30, 2015. &t zdKid Xal Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL Fort Pierce, Florida January 26, 2016 Fort Pile / Stuart Member AICPA Member AICPA Division For CPA Firms Member FICPA Private Companies Practice Section Collier Environmefital Services Lake & Wetland Management Specialists 2600 Golden Gate Parkway Naples, FL 34105 239 - 262 -2600 Office 239- 261 -1797 Fax CC #35398 City of Naples #19517 LC #1002075 2/4/16 Proposal for annual maintenance of vegetated floating mat for the Cedar Hammock Golf and Country Club Scope of Work Perform maintenance activities to 1 vegetated floating mat in Cedar Hammock replace blooming plants three times per year $ 1,395.00 $ 1,395.00 Conditions Replace mature vegetation on floating vegetated mat as needed throughout the year. Blooming plants to be replaced at least three times per year. Monitor and control any weed growth that may occur on the floating mat. Anchor and tether the floating mat so it remains centered in the middle of the lake. Let management know when a site visit was made and what maintenance actions were taken. Proposal is valid for 30 days. If you agree to the se es nd rates listed in this proposal for work, please sign and send back to the address t ed bove. C`* Collier Enviro rental Services a. Date Peninsula Im rovernent Corporation Justin Faircloth Date Severn Trent Services