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Annual Reporting RequirementsRI FLORIDA DEVELOPMENT FINANCE CORP. CONNEC'IN6 FLORIDA PRO.]ECI S March 30, 2025 Ms. Amy Patterson County Manager Collier County 3301Tamiami Trail East Naples, FL 34112 Re The Florida Development Finance Corporation Annual Reporting Requ irements ln accordance with Section 288.9610, Florida Statutes, the undersigned, on behalf of the Florida Development Finance Corporation, has enclosed the following information: (1) Audit results conducted pursuant to Section 11.45, Florida Statutes; (21 The assets, liabilities, lncome and operating expenses of the Corporation during fiscal year ended June 30, 2025, including a description of all outstanding revenue bonds. (3) An amended summary of the activities, operations and accomplishments of the Florida Development Finance Corporation which were conducted during the Fiscal Year ended June 30, 2025, including the number of businesses assisted by the Corporation; and lf you have any questions or concerns about this information, please do not hesitate to contact me. Sincerely, ,A6arff{a-Zt Robert Harvey, Esq Executive Director 156 Tuskawilla Road I Suite 2340 | Winter Sprin8s, FL 32708 www.fdfcbonds.com oFFlcE 4O7-7L2-6356 | FAX 407_369-4260 FLORIDA DEVELOPMENT FINANCE CORPORATION FINANCIAL STATEMENTS As of and for the Year Ended June 30, 2025 And Reports of lndependent Auditor C; cn"rryBekaert,,, Your Gui.le Fot wad FLORIDA DEVELOPTUIENT FINANCE CORPORATION TABLE OF CONTENTS REPORT OF INDEPENDENT AUDITOR MANAGEMENT'S DISCUSSION AND ANALYSIS BASIC FINANCIAL STATEMENTS Statement of Net Position Statement of Revenues, Expenses, and Changes in Net Position Statement of Cash F|ows............................. Notes to the Financial Statements............... SUPPLEIIIIENTARY REPORT OF INDEPENDENT AUDITOR Report of lndependent Auditor on lnternal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards........... ...1-2 ...3-5 7 8 9 .10-15 ...'t6-'17 3; cn"t.y.t_:Il:*- Report of lndependent Auditor To the Board of Directors Florida Development Finance Corporation Wnter Springs, Florida Report on the Audit of the Financial Statements Opinion We have audited the accompanying financial statements ofthe Florida Development Finance Corporation ("FDFC") as of and for the year ended June 30, 2025, and the related notes to the financia! stalements, which collectively comprise FDFC's basic financial statements as listed in the table of contents. ln our opinion, the financial statements referred to above presentfairly, in all material respects, the financial position of FDFC as of June 30, 2025, and the changes in flnancial position and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of Amerjca. Basis for Opinion We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibililies under those standards are further descdbed in the Auditot's Responsibililies for the Audit of the Financial Statements section of our report. We are required to be independent of FDFC, and to meet our ethical responsibilities, in accordance with the relevant ethical requirements relating lo ouraudit. We believe the audit evidence we have oblained is suffrcient and appropriatelo provide a basis for our audit opinion. Responsibilities of Management for the Financial Statements lvlanagement is responsible for the preparation and fair presentation ofthese financial stalements in accordance with accounting principles generally accepted in the United States of America and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation offinancial statements that are free from material misstatement, whether due to fraud or error. ln preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise doubt about FDFC'S ability to @ntinue as a going concern for one year beyond the financial statement date, including any cunently known information that may raise substantial doubt shortly thereafter. Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the fnancial statements as a whole are free from material misstatemenl, whether due to fraud or error, and to issue an auditor's report that includes our opinion Reasonable assurance is a high level ofassurance but is not absolute assurance and, therefore, is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Governmont Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatemenl resulting from fraud is higherthan for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. cbh.com 1 ln performing an audit in accordance with generally accepted auditing standards and Govemment Auditing Stardards, we: Exercise professional judgment and maintain professional skepticism throughout the audit. ldentify and assess the risks of malerial misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the flnancial statements. Obtain an understanding of internal control relevant to the audit 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 FDFC's intemal control. Accordingly, no such opinion is expressed. Evaluatethe appropriateness ofaccounting policies used and the reasonableness ofsignificant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. . Conclude whether, in ourjudgment, lhere are conditions or events, considered in the aggregate, that raise substantial doubt about FDFC's ability to continue as a going @ncern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing ofthe audit, signilicant audit findings, and certain internal control relaled matters that we identified during the audit. Required S upplementary I nform ation Accounting principles generally accepted in the United States of America require that the management's discussion and analysis be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part ofthe basic Iinancialstatements, is required by the GovernmentalAccounting Standards Board, who considers it to be an essential part of llnancial reporting tor placing the basic flnancial 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 mnsisted 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 statemenls, and other knowledge we obtained during our audit ofthe basic financial statements. We do not express an opinion or provide any assurance on lhe 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 ln accordance with Government Auditing Standards, we have also issued our report dated March 5, 2026 on our consideration of FDFC'S internal control over financial reporting and on our tesls of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope ofour tesling of inlernal control over financial reporting and compliance and the results of that testing, and nol to provide an opinion on the effectiveness of FDFC's intemal 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 FDFC's internal control over financial reporting and compliance. 8../zr,,rf /--/.? Orlando, Fbrira March 5, 2026 2 %- MANAGEMENT'S DISCUSSION AND ANALYSIS FLORIDA DEVELOPMENT FINANCE CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30,2025 This discussion and analysis of Florida Development Finance Corporation's CFDFC) tlnancial performance provides an overview of its financial activities for the fiscal year ended June 30, 2025. Please read it in conjunction with the report of independent auditor and the basic financial statements. Financial Highlights FDFC facilitated the authorization and issuance of $2,640,646,826 in 13 new money bonds for the fiscal year ending June 30, 2025. The types of borrowers served by the FDFC bond process were 3 transportation facilities,4 private schools, 3 charter schools, 1 not-for-profit, t heath care, and 1 solid waste bonds. ln all, FDFC received conduit debt application and issuance fees totaling $1 ,630,917. ln addition, FDFC's Commercial Property Assessed Clean Energy ("C-PACE') Program facilitated the issuance of $292,435,233 in '10 taxable C-PACE bonds during the flscal year ending June 30, 2025. ln all, FDFC received issuance fees totaling $791 ,004 for the C-PACE Program. The Residential Property Assessed Clean Energy ('R-PACE') program was terminaled by FDFC on June 1,2020. However, FDFC continues to service the program in conjunction with County Tax Collectors throughout the state. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduclion to FDFC'S basic financial slatements. The basic financial statements also include notes that explain in more detail some of the information in the fnancial statements. Required Basic Financial Statements FDFC utilizes an enterprise fund for flnancial reporting purposes. This fund includes all activities of FDFC The financial statements of FDFC report information about FDFC using accounting methods similar to those used by private sector companies. These statements offer short-term and long-term financial information about its activities. The statement of net position includes all of FDFC'S assets and liabilities and provides information about the nature and amounts of investments in resources (assets) and the obligations to FDFC'S creditors (liabilities). The statement of net position also provides the basis for mmputing rate of retum, evaluating the capital structure of FDFC, and assessing liquidity and financial flexibility of FDFC. All of the cunent yea/s revenues and expenses are accounted for in the statement of revenues, expenses, and changes in net position. This statement measures the success of FDFC'S operations over the past year and can be used to determine \,vhether FDFC has successfully recovered all of its costs through its services provided, as well as its profitability and credit worthiness. The final required financial statement is the statement of cash flows. The primary purpose ofthis statement is to provide information about FDFC'S cash receipts and payments during the reporting period. The statement reports cash receipts, cash payments, and net changes in cash resulting from operating, investing, non-capital financing and financing activities, and provides answers to such questions as where did cash come from, what was cash used for, and what was the change in the cash balance during the reporling period. 3 FLORIDA DEVELOPMENT FINANCE CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2025 Financial Analysis Net Position Net position may serve over time as a useful indicator of FDFC'S financial position. FOFC'S assets exceeded liabilities by $13,875,564, representing an increase in net position for the year of $1,777,532. The largest portion of FDFC's net position reflects cash received from conduit debt application and issuance fees. Table A-1: Statements of Net Position (ln thousands of dollars) Fiscal Year 2025 Fiscal Year 2024 Dollar Change Assets Cash and cash equivalents Accounts receivable Prepaid expenses Capital assets, net Total Assets 14 cot 12,338 30 1,541 86 (3) 599 $ 12,09s $ 2 223 14 431 445 204 36 16813,672 12,062 1 ,610 _9___1_9,8?9_ _$____EEq_ _9_],?7!_ Liabilities Accounts payable Accrued expenses Lease liability Total Liabilities Net Position lnvestment in capital assets Unrestricted Total Net Position 28 177 4 $ 13,636 85 27 812 28 49 608 685 240 Total cash and cash equivalents increased largely due to operating results leading to a significant increase in net position. Accounts receivable increased due to one receivable for reimbursement of amounls paid to the Executive Director that was split between FOFC and the Florida Opportunity Fund. Capital assets and the lease liability increased due to the extension ofthe office lease. Capital assets also increased due to the leasehold improvements that were completed during the year. FLORIDA DEVELOPMENT FINANCE CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2025 Changes in Net Position The changes in net position displayed below shows FDFC'S aciivities during the past two fiscal years. The increase in net position for each year represents the extent to which revenues exceeded expenses during the year. Table A-2: Statements of Revenues, Expenses, and Changes in Net Position (ln thousands of dollars) Fiscal Year Fiscal Year 2025 2024 Dollar Change $$2,758 555 5,474 266 (2,7',t6\ 289 960 165 295 1 ,018 286 336 (2,427) (s8) (121) (43) 87 '18 (1) 11 3,3'1 3 86 29 5,740 747 (212) 1,778 12,098 3,993 (2.215) 8 105 I 13,876 $ 12,098 $ 1,778 3 The decrease in revenue is primarily due to lower dollar values for the traditional bond issuances than in prior year. The increase in other revenue is primarily due the a full year ofthe sweep account and the increased interest rate that it provides. The decrease in salaries and wages was a result of a separation payment in 2024 that did not reoccur in 2025. Professional fees decreased due to a reduction in legal expenses compared to the prior year. Other expenses decreased due to a reduction in bank fees and rent expense compared to the prior year. 5 Revenue Fees Other revenue Total Revenue Expensos General and Administrative: Salaries and wages Professional fees Other Program: PACE FRED Total Expenses Change in net position Net position, beginning of year Net position, end of year $ FLORIDA DEVELOPMENT FINANCE CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2025 Economic Factors FDFC'S primary business is the issuance of tax exempt and taxable revenue bonds, which are permissible under the U.S. lnternal Revenue Service's private aciivity regulations and Chapter 288, Part X, Florida Statutes. Those regulations, subjec;t to a number of limitations and restrictions, allo / certain borrower and project types, such as small manufadurers and non-profit corporatjons, to finance capital assets with tax exempt bond proceeds. FDFC provides access to the C-PACE program through a combination of Revenue Notes and Finance Agreements collected with a Non-Ad Valorem assessment on the property's tax bill. An innovative linancing structure that makes it possible for owners of commercial, industrial, multifamily, and nonprofit properties to obtain low-cost, long-term financing for energy efrlciency, renewable energy and wind hardening projects. Capital Providers can provide upfront financing to commercial property owners for qualifying improvement projecls, and to collec{ the repayment through annual assessments on the property's tax bill. FDFC'S revenues are exclusivety generated by fees charged for issuance of bonds, and the volume of bond issuance can be directly impacled by general economic conditions and perception of policies for conduit issuance by potential bonowers and their finance team. Requests for lnformation This financial report is designed to provide a general overview of FDFC'S finances for all those with an interest in FDFC'S finances. Questions con@rning any of the information provided in this report or requests for additional information should be addressed to: Robert Harvey, Esq. Executive Direclor 156 Tuskawilla Road, Suite 2340 Wnter Springs, Florida 32708 6 BASIC FTNANCIAL STATEMENTS FLORIDA DEVELOPMENT FINANCE CORPORATION STATEMENT OF NET POSITION JUNE 30, 2025 ASSETS Cunent Assets: Cash and cash equivalenls Accounts receivable Prepaid expenses Noncurrent Assets: Capital assets, net Total Assets LIABILITIES Cunent Liabilities: Accounts payable Accrued expenses Lease liability Noncunent Liabilities Lease liability Total Liabilities NET POSITION Net investment in capital assets Unrestricted Total Net Position $'13,635,664 85,910 27.439 811.583 14,560,596 28,305 48,763 30,787 577 ,177 685,032 203,619 13,671 ,945 _9____1rZ$91_ The accompanying notes to the financiar statements are an integrar part of rhese statements. 7 FLORIDA DEVELOPMENT FINANCE CORPORATION STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION YEAR ENDED JUNE 30, 2025 Revenues: Conduit debt application and issuance fees PACE program fees lnterest and other Total Revenues lncrease in net position Net position, beginning of year Net position, end ofyear $ 1,630,9'17 1 ,127 ,5475 ,501 3,312,965 959,661 115,272 't65,486 295,014 1,535,433 1,777 ,532 12,098,O32 $ 13,875,564 The accompanying notes to the financial statements are an integral part of these statements. 8 Expenses: Salaries and wages PACE program direct expenses Professional fees Other Total Expenses FLORIDA DEVELOPMENT FINANCE CORPORATION STATEMENT OF CASH FLOWS YEAR ENDED JUNE 30, 2025 cash flows from capital and related financing activitios: Purchase of equipment Net cash flows from c€pital and related financing activities Net change in cash and cash equivalents Cash and cash equivalents, beginning of year Cash and cash equivalenls, end of year Reconciliation of increase in not position to net cash flows from operating activities: Provided by operating activities: lncrease in net posilion Adjustments to reconcile increase in net position to net cash fiows from operating activities: Oepreciation and amortization Changes in: Accounts receivable Lease liability Prepaid expenses Accounts payable A@rued expenses Net cash llows from operating ac;tivities Noncash capital and financing activities: Acquisition of capital asset through lease $2,672,554 (568,328) (946,3s9) 554,501 1 ,712,368 ('t71 ,679) (171 .6791 1,540,689 12,094,975 $ 13,635,664 $ 'l ,777 ,532 7 0,761 (65,910) (66,891) 2,857 717 13,302 $ I ,712,368 $ 497,738 The accompanying notes to the financial statements are an integral part of these statements 9 Cash fows from operating activities: Receipts fiom fees and expense reimbursements Payments to service providers Payments to employees lnterest received Net cash flovvs from operating aclivilies FLORIDA DEVELOPMENT FINANCE CORPORATION NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2025 Note 1-Summary of significant accounting policies Repofting Entiu - Florida Development Finance Corporation ("FDFC") is an independent entity constituted as a public instrumentality of local government, created to facilitate economic development in Florida by working in partnership with the Florida financial services industry and local development organizations to create access to competitive sources of finance for creditworthy borrowers and other firms contributing to job creation and the economic base of Florida. FDFC'S bond programs provide access to capital for project development through tax exempt and taxable financing. This includes financing to stimulate and assist in the expansion ofall kinds offor-profit and nolfor-profrt business activity, a portion of which consists of residential and commercial bonds through the Property Assessed Clean Energy ("PACE') Program. The Residential Property Assessed CIean Energy ('R-PACE") program ended June 1,2020, issuing the final R-PACE bonds effeclive January 14,2021. FDFC was formed pursuant to Florida Statutes, Chapter 288, Part X and all acts supplemental thereto and amendatory thereof. FDFC is governed by a seven member Board of Directors, five of which are appointed by the Govemor, subject to confirmation of the Senate, one representative from the Florida Department of Economic Opportunity, now known as the Florida Department of Commerce, and one representative from the Florida Division of Bond Finance. Each board member appointed by the Governor serves a term of four years. The current statutory provisions reflect a related party relationship with the state of Florida, whereas the state of Florida does not impose its will on FDFC. Accordingly, FDFC does not meet the criteria provided by the GovernmentalAccounting Standards Board ("GASB') for being a component unit of the state of Florida. The accompanying basic financial statements comply with the provisions of GASB Statement No. '14, as amended, The Financial Repofting Entity,inlhallhe llnancial statements include all organizations, activities, and functions that comprise FDFC. Component units are Iegally separate entities for which FDFC (the primary entity) has financial accountability. Financial accountability is defined as the ability ofthe primary entity to appoint a voting majority ofan organization's governing body and either: (l ) impose its will over the organization or (2) there is a potential that the organization will provide a specific tlnancial benefit to or impose a specific financial burden on the primary entity. Financial accountability may also arise if an organization is fiscally dependent on and has a fiscal benefit or burden relationship with the primary govemment. Using these criteria, FDFC has no component units. Measurement Focus and Basis of Accounting - FDFC is accounted for as an enterprise fund. The basic fnancial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are reported when the liability is incurred, regardless of the timing of the related cash flows. FDFC's financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ('U.S. GAAP"), including application of all relevant GASB pronouncements. Deposits and lnvestments - FDFC places its cash on deposit with flnancial institutions in the United States. The Federal Deposit lnsurance Corporation covers 9250,000 for substantially all deposit accounts. At June 30, 2025, FDFC had approximately $13,256,386 in excess ofthe insured amounts. Management believes the associated risk is minimized by placing such assets in quality financial institutions that are designated as qualified public depositories. FDFC's cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term, highly liquid investments with original maturities of three months or less. lnvestments classiUed as cash equivalents include amount placed with the state of Florida Special Purpose lnvestment Account ('SPlA"). 10 FLORIDA DEVELOPMENT FINANCE CORPORATION NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2025 Note 1-Summary of significant accounting policies (continued) Deposits and lnvestments (continued) - FDFC's investment in the SPIA is a qualirying localgovemment investment pool and was assigned a rating of "AA-f by the Standard & Poo/s Rating Service. As ofJune 30, 2025, FDFC had a balance of 9'129,278 in the SPIA. FDFC's position in the pool is valued on a dollar basis to determine the fair value faclor of FDFC's pool balance and is treated as a cash equivalent in financial statement presentatjon. The SPIA has no limitations or restrictions on withdrawals. FDFC follows the investment policy of Florida Statute Seciion 218.415, which states units of local govemment elecling not to adopt a written investment policy may invest or reinvest any surplus public funds in their control or possession in: (1) the Local Government Surplus Funds Trust Fund, or any intergovemmental investment pool authorized pursuant to the Florida lnterlocal Cooperation Act of 1969; (2) Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency; (3) interest bearing time deposits orsavings accounts in qualified public depositories: and (4) direcl obligations of the U.S. Treasury. Cap,fal Assefs - Capital assets consist of computers and equipment, furniture and fixtures, and leasehold improvements, stated at cost when purchased or construcled. The threshold for capitalization of assets is $1 ,000. Expenses for maintenance and repairs are charged to operations. Provisions for depreciation are made using the straight-line method, ranging from 3 to 12 years or the term of the associated lease. FOFC has received a right-to-use asset for a building that is initially measured al an amount equal to the initial measurement ofthe related lease liability plus any lease payments made priorto the lease term, lease incentives, and ancillary charges necessary to place the lease into service. The right-to-use asset is amortized on a straight-line basis over the life of the related lease. Coduit Debt lssuance Fees - lssuance fees paid by borrowers forconduit debt obligations are generally recognized as revenue in the period the bonds are issued; however, application fees are not refundable and are recognized when received. Reimbursement Revenues - Revenues recognized as reimbursement for conduit debt projects and the PACE program are remrded in the same period as relaled expenses are incurred. Use of Estlmates - The preparation of basic financial statemenls in mnformity with U.S. GAAP requires management to make estimates and assumptions that affeci the amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date ofthe basic financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. lncome Taxes -FOFC is a not-for-profit corporation and has been determined by the lnternal Revenue Service to be a 501(c)(4) organization exempt from taxes under Sec{ion 501 (a) of the lntemal Revenue Code. Accordingly, no provision has been made for income taxes. FDFC PACE Program Agreement with FRED- During fiscal2o'17, FDFC entered into an agreementwith the Ftorida Resiliency and Energy District ("FREO'), a separate legal entjty authorized to facilitate the levy and collection of specia! assessments as the repayment mechanism of PACE finances pursuant to Section 163.01(14), Florida Statutes. Under the agreement, FDFC serves as FRED's agent for purposes ofexecuting financing agreements with property owners on behalf of FRED pursuant to Section 163.08(6), Florida Statutes, for purposes of administering the FDFC PACE Program within the boundaries of FRED, and for ensuring compliance with the Florida PACE Act. 11 FLORIDA DEVELOPMENT FINANCE CORPORATION NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2025 Note 2-Capital assets The following is a summary of changes in capital assets during the year ended June 30, 2025: Balance at July 1, 2024 Additions Deletions Balance at June 30, 2025 Capital assets: Leasehold improvements Computers and equipment Furniture and fxtures Right-to-use asset - building Totalcapital assets 139,328 $ 50,968 7,500 275,363 16,360 497.738 294,647 38,521 23,860 773,101 s 155,319 $S 12,447 473,159 669,417 '12,447 1,130,129 Less accumulated depreciation/amortjzation fori Leasehold improvements Computers and equipment Fumituae and fxtures Right{o-use asset - building Total accurhulated depreciation/amortization Capital assets, net 80,450 48,313 2,728 128,741 19,940 2.840 2,412 45,569 12,447 100,390 38,706 5,140 174,310 260 232 70,761 12.441 318 546 $ 212,927 $ 598,656 $$ 811,583 FDFC's total depreciation and amortization expense was $70,761 for the year ended June 30, 2025 Note 3-Related party transactions FDFC enters into bond fnancing transactions on behalfof bonowers with various financial institutions and investors whereby bond documents have been approved by FOFC'S Board of Directors. Certain board members may be affiliated with financial institutions, which issue term sheets to purchase the bonds. ln such cases, these board members would recuse themselves from voting on items with such affiliation. lt is management's opinion that these transac{ions have been conducled at arm's length. 12 FLORIDA DEVELOPMENT FINANCE CORPORATION NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2025 Note 4-Leases FDFC entered inlo a lease through November 2027 as lessee for the use of an office building. An extension agreement was entered into on January 1, 2025, extending the lease through November 2032 with an option for an additional five year extension through November 2037 which FDFC plans on exercising. The lease has an interest rate of 4%. A lease liability was recorded as of July 1 , 2021 in the amount of $300,896, with a remaining balance of $153,950 at December 31 , 2024. The extension agreement went into effeci on January '1 , 2025 resulting in a remeasurement ofthe lease that increased the lease liability by $468,953 to $620,433, with a remaining balance of $607,964 at June 30, 2025. The value ofthe right-to-use asset as of June 30, 2025 was $773,101 with accumulated amortization of 91 74,310. Lease liability aciivity during the fiscal year ending June 30, 2025 was as follows: Amount Due Beginning Ending Within Balance Additions Oeletions Balance One Year $177,117 $468,953 $38,106 $607,964 $30,787 Below is a schedule of lease payment activity for future years: Total Principal Total lnterest Total Payments 2026 2027 2028 2029 2030 2031-2035 2036-2037 $30,787 33,708 37,470 40,187 43,039 263,061 159,712 54,364 56,011 58,338 59,503 60,692 322,090 167 ,326 $$ 607,964 $170,360 $778,324 Note s-Conduit debt ln accordance with its mission and Chapter 288, Part X, Florida Statutes, FDFC has facilitated the issuance of debt obligations whereby FDFC is merely a conduit issuer of bonds issued on behalf of borrowers. These bonds do not mnstitute a general debt, liability, or obligation of FDFC, the state of Florida, or any local government. Additionally, FDFC has assigned allrights to receive payments ftom the borowers tothe bond purchaser in allbond financing transaclions. Assigned payments are not included in the accompanying basic financial statements. Changes in PACE residential and commercial bonds conduit debt outstanding for the year ended June 30, 2025 areas follows: $ 2010 PACE R.ll(hnUc 6.nd. 2020 PACE R.rid.ntrt Eondr 2020PACE Co mdiadd3 2021 PACE R.rLhtl ao,n! m2r PACE C6hm.dd Bond! 2022 PACE C.mmrcl.l Bond. ,23 PACE Co mrcldadldt 202a PrcE Commd.l aod. :to25 PACE Com.r.l.t gond! 0,613.501 232.35,zJ3 ons in principar resurt from annuar speciar assessment colections and fuI or partiar prepaymentsNote: Reducti 23,577 22,303 20,868 19,316 17,653 59,029 7,614 1,139,05e FLORIDA DEVELOPMENT FINANCE CORPORATION NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2025 Note Honduit debt (continued) Changes in other bonds conduit debt outstanding for the year ended June 30, 2025 are as follows: it09 s.rt ! c.ni.r cqn Por.nl.3. hc 2ooe s.rL3 Atpon Prcp.nj6 P.nn*, ftc 2013 S.rL. 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Holdhg [C 2021S.rh3 SFP T.rp.I Th. rt yPFi.d 2@l s.ds aB cgEtacr. ct ..iotaaddry,IE. 2@l s.t . alr st. Ardr.*r s.n6l .t Et a R.i6 2@4 S.no GFL E vhnmrfillm. 2@a sal.. ArE EE{.lc.l clrt l].n s.hoot P.qd 20ar S.rL. 8.fi.t , at 9rtcy Sdrd 2@a 6.1L. Lrr.. SrVq lllh.m cheh &d A..d.fry 202r S.rL. A &hrakF Fkxld. P.a..rir Fd Proi..t 2@5 S.rh. A BndniE Flotd. F.!$rtor Rj 6o.n im 2@5 S..hr Ftortd. Ct d Eastond F@ddoi, tc 2@5 3.L. A B.iia H-ln Cs, tE 2@5 S.n .Tmd. B.0l ElotBa Rndr 202a s.,r.. cmrLdoi &.ld. Lrd.ltt cnftt s.r@t 2@5 S.rb. ir96 a..Ej Aa.hly fu..t 22,305,0@ 20,375,040 2a,897,72 55,375,@ 50,575 oOO 45,125,040 23,625,ffi 120,000,m 2,&,@1 231,245,04O e25,@,@ 22,t65,@0 312,t()5,000 5,025,000 12,762,61X) 50.575,000 600,000 2a1A2A 1.500,000 rI0,000,000 243,265,0@ 221o,2AO,mO 925,000,000 435,0a0,000 2a2,056 233,!3! 15 s s I 3 537703 359 ! A65€ 729 3a7 SUPPLEMENTARY REPORT OF INDEPENDENT AUDITOR Report of lndependent Auditor on lnternal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Govern ment Auditing Standards To the Board of Directors Florida Development Finance Corporalion Wnter Springs, 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 Slandards issued by the Comptroller General ot the United States, the flnancial statements ofthe Florida Oevelopment Finance Corporation ('FDFC") as of and for the year ended June 30, 2025 and the related notes to the fnancial statements, which collectively comprise FDFC's basic financial statements, and have issued our report thereon dated March 5, 2026. Report on lnternal Control over Financial Reporting ln planning and performing our audit of the financial statements, we considered FDFC'S internal control over financial reporling ('internal control") as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the etfectiveness of FDFC's internal control. Accordingly, we do not express an opinion on the effectiveness of FDFC's internal control. A deficiency in intemal 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 correcl misstatements on a limely basis. A matenal weakness is a deficiency, or a combination of deficiencies, in intemal control such that there is a reasonable possibility that a material misstatement ofthe entity's financial statements will not be prevented or detected and conected on a timely basis. A slgarcant deficiency is a deficiency, or a combination of deflciencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by lhose charged with governance. Our consideration of internal control was for the limited purpose described in the Urst 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 deflciencies in internal control lhat we considerto be materialweaknesses. However, materialweaknesses orsignificant deficiencies may existthatwere not identilled. C; cn"t.y,::i::::: Report on Gompliance and Other Matters As part of obtaining reasonable assurance about whether FDFC'S financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and granl agreements, noncompliance with which could have a direct and materialeffect on the fi;ancialstatements. However,providing an opinion on compliance wilh those provisions was not an objective of our audit and, accordingly, we donot express such an opinion. The results ofour tests disclosed no instarrces of noncompliance or other mitiers thatare required to be reported under Goyernment Auditing Standards. tbcbh.com Purpose of this Report The purpose ofthis report is solely to describe the scope ofour testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness ofentity's intemal conlrol or on compliance. This report is an integral part of an audit performed in accordance wilh Government Auditing Standards in considering the entity's intemal mntrol and compliance. Accordingly, this communication is not suitable for any other purpose. Ur"* e./z4rf/.-/-P onanof rurua March 5, 2026 17 FLORIDA DEVELOPMENT FINANCE CORP. ANNUAL REPORT 2025 FOR FISCAL YEAR 2024.2025, PREVIOUSLY SUBMITTED ON 9/30/25 (AMENDED TO REFLECT FY24-25 AUDITED FINANCIAL STATEMENTS) I N ^d.- I FLORIDA DEVELOPMENT FINANCE CORP. t I H L 7 + t A LETTER FROM OUR EXECUTIVE DIRECTOR Florida oevelopment Finance Corporation, (FDFC) plays a crucial role in promoting Florida's economic development by providing vital assistance to new and existing businesses and organizations, ensuring their access to capital to drive business activity, foster job creation, and enhance the overall quality of life for citizens throughout the state. FDFC accomplishes this by facilitating access to capital for project flnancing through the issuance of taxable and tax-exempt bonds, supporting both for-profit and not-for-profit entities. As a self-sustaining entity, FDFC actively promotes economic development in Florida without relying on state financial support. One key aspect of FDFC's operations is its authorization to issue industrial revenue bonds in all of Florida's 67 counties through interlocal agreements. Working in collaboration with the financial services industry and local development organizations, FDFC provides cost-effective financing options tailored to the needs of creditworthy small manufacturers and other firms critical to Florida's economic base. By doing so, FDFC contributes to the growth and stability of these vital sectors. ln FY 2024-2025, FDFC successfully facilitated the authorization and issuance of over 52.6 billion of tax-exempt, taxable, and private activity bonds across thirteen projects. These projects encompassed a n,ide range of sectors, including healthcare, solid rvaste, not-for-profits, transportation, charter schools, and private schools. Furthermore, FoFC issued a record 5292 million in Commercial Property Assessed Clean Energy (C-PACE) financing, representing a significant increase from the previous year- This C-PACE financing supported ten projects, including hotels, self-storage, multi-family housing, mixed-use, senior housing, a data center and medical facilities, advancing the pursuit of Florida's economic development objectives. ROBERT H EY EXECUTIVE DIRECTOR sKtLtsIi REsP(}ltstBttrIY ry TEAMwoRt{ lfl[tn$m c0l,rPEIEr{ct SUPPt)RT COMMUIIICAII()N 1l( TABLE OF CONTENTS Company Overview Private Activity Bonds Commercial PACE Project Highlights '11 Accomplishments o4 06 08 10 FLORIDA DEVELOPMENT FINANCE CORP.YEAR 2025 ,,,! -)f E 7r 7 Y 7 \s \s The Florida Development Finance Corpor.tion ("FDFC") is a special development finance authority created by Section 288.9602, Florida Statutes, to promote the advancement of businesses and economic development in the State of Florida. We provide cost-etfective financing to support for-profit and not-for- prolit business activity by collaborating with Florida's financial services industry and local development organizations. The primary mechanism for accessing capital markets is t6x-exempt and taxable bonds. The second is Commercial Property Assessed Clean Energy 'C-PACE" financing, which makes it possible for owners of commercial, industrial, multifamily, and nonprofit properties to obtain low-cost, long-term financing for energy efficiency, renewable energy and wind hardening projects. These financing mechanisms facilitate access to competitive sources of capital, increase business activity and job creation, critical to the economic base of Florida. FLORIDA DEVELOPMENT FINANCE CORP. GOMPANY OVERVIEW YEAR 2025 7 -// ( I7 \ \ \.,,l-/-/ Iv \t/at l tr Etrl l[--i L.--7 l. I i.. -/ *- ( ) ,L /\l.L,7r- (r/ .7'r-) \Frls t r \\ & a7 I D Ds2.6 s2e2M Total Debt lssued Private Activity Bonds Total Debt lssued Commercial PACE Program I / \ b--- FLORIDA DEVELOPMENT FINANCE CORP. PRIVATE ACTIVITY BONDS PROGRAM The Florida Development Flnance Corporatlon [FDFCI provides access to Private Actiyity Bonds (PAB). Private Activity Bonds are obligations that beneflt nongovernmental persons, such as private businesses, charitable organizations or individuals. lf the bonds meet specific criteria, the interest earned may be tax- exempt. Tax-exempt bonds are issued and sold by a governmental entity, the "issuer" (such as the FDFC). The bonds are purchased by a bank or investor(s). The proceeds from the sale of the bonds are then loaned to the entity, which uses the borrowed funds to finance certain capital projects. The interest on the bonds received by the investor is exempt from federal income tax. Tax- Exempt Bond Financing refers to the interest that investors receive on the bonds. E - rL . Manufacturing and Processing Facilities . Section 50'|(c)(3) Non-Profit Organizations . "Exempt" Facilities per IRS Code Sec.l42 o Assisted Living Facilities . Solid Waste DisPosal Facilities o Qualified Residential Rental . RedevelopmentProjects . Equipment and Buildings a t 7 q ll - Z. I \ \ s ft FLORIDA DEVELOPM ENT FINANCE CORP. Fiscal Year 2024-2025 Sotid Waste Transportation Private School Charter SchooI Heatthcare Not-for-Profit t,c I 4, / , YEAR 2025 t PRIVATE ACTIVTY BONDS PROGRAM F o 1 2 4 FT $25O,0OO,OO0 $2OO,000,o0o $1sq0oo,ooo $100,0o0,0oo $50,000,ooo $o $2.268 -r.c, .-^", q,o- "."t" -""t" *td ^d-1+- o.*.1"- .""" .".."" Amount by industry, excluding transportation - Transportation J l tl 1: [: tt. FiI E I a 13 TotaI Projects $2.68 Totat Debt lssued YEAR 2025 COMMERCIAL PACE PROGRAM IC-PACEI FLORIDA RESILIENCY AND ENERGY DISTRICT FDFC partnered with the Florida Resiliency and Energy District IFREDj, a Chapter 163.01, Independent special District entity, created by Interlocal Agreements to levy and collect the voluntary, Non-Ad valorem special assessment through the localTax Collector's office. . Over 8 years of being an established, reliable turn-key PACE District . Adopted by 34 Counties and 237 Municipalities in Florida . Greater funding opportunities with more than 20 approved C-PACE Capital Providers 34 Counties 237 Municipatities +20 Years +8 Approved Capitat Providers FLORIDA DEVELOPMENT FINANCE CORP. FDFC is able to provide access to the Commercial PACE "Property Assessed Clean Energy" (C-PACE) program which is an innovative financing structure that makes it possible for owners ol commercial, industrial, multifamily, and nonprofit properties to obtain low-cost, long-term financing for energy etficiency, renewable energy and wind hardening projects. Through a public-private partnership, FDFC is able to provide owners the ability to connect with approved Capital Providers who can provide upfront financing for qualifying improvement projects and collect the repayment through an annual Non- Ad Valorem assessment on the property's tax biil. $2OqOOO,OOO $zgz[,1 $100,ooo,ooo $sqooo,0oo $o I-- Senior Housing Self-Storage 1 "r."'t."..'t" .n*/ .'C "'.J .""- a".t $S*' aio* 10 Hospitatity Medicat Facitity 2 Mixed Use 1 Mutti-Family 1 FLORIDA DEVELOPMENT FINANCE CORP. COMMERCIAL PACE IC-PACEI PROG Fiscal Year 2024-2025 YEAR 2025 RAM $150,OOO,000 TotatDebt lssued TotaI Projects Data Center 1 1 3 qt I YW :, ROJECT HIGHLIGHTS I i ---- !J&l I m r t re- TYME CANCER RESEARCH INST. ,l $36.8M T HEALTHCARE .X. I I , I t ',iarF BRIGHTLINE RAIL WESTIN COCOA BEACH $rszN,t HOSPITALITY x.n 7 n 7 GFL ENVIROMENTAL IMDC Miami Data Center $zrou SOLID WASTE $sz.st\I DATA CENTER I $z.zst\I HEALTHCARE BAPTIST HEALTH CARE FLORIDA DEVELOPMENT FINANCE CORP,YEAR 2025 I Accomptishment * it -\, PROJECTS PARTNERSHIPS FDFC deepened collaboration with local governments across Florida, helping municipalities access innovative financing tools that reduce borrowing costs and accelerate community development projects. These partnerships supported vital initiatives such as infrastructure improvements, affordable housing, and public facilities, ensuring communities have the resources they need to grow and thrive I I BRIGHTLINE FINANCING HONORED WITH NATIONAL RECOGNITION ln 2024, FDFC's role as conduit issuer for Brightline's 52.26 Oillion bond financing earned national recognition from The Bond Buyer. The transaction was awarded "Deal of the Year" as well as top honors in the "lnnovative Financing" category. This landmark financing marked the largest private-activity bond issuance for U.S. transportation and represented a historic step forward in advancing high-speed rail. Under the leadership of Executive Director Robert J. Harvey, FDFC's involvement highlighted its continued commitment to enabling transformative infrastructure projects across Florida Over the past year, FDFC facilitated tax-exempt financing for nonprofits, educational institutions, healthcare providers, and affordable housing projects across Florida. These efforts expanded critical services, supported community development, and advanced FDFC's mission to drive sustainable growth statewide FLORIDA DEVELOPMENT FINANCE CORP.