FY14 Tentative Annual Operating BudgetD L(� ��
HERITAGE BAY
Community Development District
Annual Operating and Debt Service Budget
Fiscal Year 2014
Version 2 - Approved Tentative Budget:
(Approved at the 5/02J20,13 rtteeting)
Prepared try:
HERITAGE BAY
Community Development District
Table of Contents
Page #
BUDGET OVERVIEW
Background Information ......... ......... . ....... 1
OPERATING BUDGET
General Fund
Summary of Revenues, Expenditures and Changes in Fund Balances -..r 2'
Exhibit A - Allocation of Fund Balances ........, .. ......... ......... ............................ 3
BudgetNarrative ....... ....... ... ......... .... - - ........ ....:......... .................:.• .. ,.,.
DEBT SERVICE BUDGET
Series 2005
Summary of Revenues, Expenditures and' Changes in Fund Balances .,.. ....... .. 7`
Amortization Schedule .................... ......... .......... ....:... ....... ,,.,...... 8.
BudgetNarrative ...... ......— _. ...... ......... ..:...... ........... .... .............. . .. ... ,........... 9
SUPPORTING BUDGET SCHEDULE
2013 -2014 Comparison of Assessment Rates ........ .......:. .....,.,.:,..... 10
Annual Operating and DeW Service Budget
Fiscal Year 2014
Heritage Bay
Community Development District
Budget Overview
Fiscal Year 2014
HERITAGE BAY
Community Development District
Budget Overview
Background Information
The following changes were made to the budget since the April 4, 2013 Board of Supervisor's meeting:
General Fund
Page 2- Updated actual column thru March 2013 and Projected for April thru September.
Page 2- Added for FY 2013 Projected under Field for the two lake erosion projects for
$250,000.
Debt Service Fund
0 Page 7- Updated actual column thru March 2013 and Projected for April thru September.
Budget Highlights
Budget Comparisons
Additional Budget Notes
Annual Operating and Debt Service Budget
Fiscal Year 2014
Page 1
Heritage Bay
Community Development District
Operating Budget
Fiscal Year 2014
HERITAGE BAY
Community Development District General Fund
Summary of Revenues, Expenditures and Changes in Fund Balances
Fiscal Year 2014 Proposed Budget
ADOPTED ACTUAL PROJECTED TOTAL ANNUAL
ACTUAL BUDGET THRU APR- PROJECTED BUDGET
ACCOUNT DESCRIPTION FY 2012 FY 2013 MAR -2013 SEP -2013 FY 2013 FY 2014
REVENUES
Interest - Investments
$ 2,592 $
500 $
1,009 $
250 $
1,259 $
500
Interest - Tax Collector
35
4,600
26
3,200
26
4,800
Special Assmnts -Tax Collector
141,375
151,750
141,045
10,705
151,750
151,750
Special Assmnts- COD Collected
13,759
4,018
2,081
1,937
4,018
4,163
Special Assmnts- Discounts
(4,973)
(5,953)
(5,416)
(11)
(5,427)
(6,070)
TOTAL REVENUES
152,788
1161315
138,745
12 881
151,626
150,343
EXPENDITURES
Administrative
P/R -Board of Supervisors
2,800
4,600
1,600
3,200
4,800
4,800
FICA Taxes
214
367
122
245
367
367
ProfServ- Arbitrage Rebate
600
ProfServ- Dissemination Agent
-
5,000
ProfServ- Engineering
11,954
8,000
6,252
1,748
8,000
8,000
ProfServ-Legal Services
6,477
12,000
2,674
3,565
6,239
7,000
ProfServ-Mgmt Consulting Sery
35,000
36,050
18,025
18,025
36,050
37,132
ProfServ- Property Appraiser
2,232
2,232
2,232
2,276
ProfServ- Special Assessment
5,000
5,000
5,000
5,000
5,000
ProfServ- Trustee
-
6,000
Auditing Services
4,000
4,000
3,500
500
4,000
4,000
Communication - Telephone
26
50
7
9
16
40
Postage and Freight
562
1,020
480
640
1,120
1,300
Insurance - General Liability
5,500
6,050
12,740
-
12,740
14,651
Printing and Binding
989
1,698
472
629
1,101
1,400
Legal Advertising
841
3,096
547
353
900
900
Misc -Bank Charges
599
750
346
346
692
750
Misc- Assessmnt Collection Cost
1,697
2,977
2,713
264
2,977
3,035
Office Supplies
230
750
133
177
310
550
Annual District Filing Fee
175
175
175
175
175
Total Administrative
76,264
89,015
57,018
29,702
86,720
102,976
Field
R &M -Lake Erosion
250,000
250,000
R &M- Contingency
-
61,300-
18,259
43,041
61,300
47,367
Total Field
61,300
18,259
43,041
61,300
47,367
TOTAL EXPENDITURES
76,264
150,315
76,277
322,743
398,020
150,3431
Excess (deficiency) of revenues
Over (under) expenditures
76,524
--
63,468 (309,862) (246,394),
0
FUND BALANCE, BEGINNING
359,884
436,408
436,408
-
436,408
190,014
FUND BALANCE, ENDING
$$ 436,4„08
, $ 436,408
$$ 49 __$ 309,862 $
190,014 $
190,014
Annual Operating and Debt Service Budget
Fiscal Year 2014
Page 2
HERITAGE BAY
Community Development District General Fund
Exhibit "A"
Allocation of Fund Balances
AVAILABLE FUNDS
Amount
Beginning Fund Balance - Fiscal Year 2014 $ 190,014
Net Change in Fund Balance - Fiscal Year 2014 0
Reserves - Fiscal Year 2014 Additions
ITotal Funds Available (Estimated) - 9130/2014 190,014
ALLOCATION OF AVAILABLE,, FUNDS
Assigned Fund Balance
Operating Reserve - First Quarter Operating Capital 25,744
Reserves - Erosion Control 58,000 (2)
Subtotal 83,744
Total_ Allocation of Available Funds 83,744
Total Unassigned (undesignated) Cash $ 106,270
Notes
(1) Represents approximately 3 months of operating expenditures
(2) Represents reserves for erosion control from FY 2009
Annual Operating and Debt Service Budget
Fiscal Year 2014
Page 3
HERITAGE BAY
Community Development District
General Fund
Budget Narrative
Fiscal Year 2014
REVENUES
Interest - Investments
The District earns interest on the monthly average collected balance for their operating and money market
accounts.
Special Assessments -Tax Collector
The District will levy a Non -Ad Valorem assessment on all sold and platted parcels (using the uniform method) within the
District in order to pay for the operating expenditures during the Fiscal Year.
Special Assessments -CDD Collected
The District will levy a Non -Ad Valorem assessment on all unplatted acres or platted but unsold parcels within the District
that are not collected by the Collier County Tax Collector in order to pay for the operating expenditures during the Fiscal
Year.
Special Assessments- Discounts
Per Section 197.162 and Section 197.3632 of the Florida Statutes, discounts are allowed for early payments of
assessments collected by the Tax Collector and only when the Tax Collector is using the uniform methodology. The
budgeted amount for the fiscal year is calculated at 4% of the anticipated Non -Ad Valorem assessments.
EXPENDITURES
Administrative
P/R -Board of Supervisors
Chapter 190 of the Florida Statutes allows for members of the Board of Supervisors to be compensated $200 per meeting
at which they are in attendance. The amount for the Fiscal Year is based upon all supervisors attending all of the
meetings.
Professional Services — Arbitrage Rebate
The District contracted with an independent professional firm to annually calculate the District's Arbitrage Rebate
Liability on its bonds.
Professional Services — Dissemination Agent
The District is required by the Securities and Exchange Commission to comply with Rule 150- 12(b) -(5), which relates
to additional reporting requirements for unrelated bond issues. The District has contracted with Prager & Co. LLC to
provide these reports.
Professional Services- Engineering
The District's engineer provides general engineering services to the District, i.e. attendance and preparation for board
meetings when requested, review of invoices, and other specifically requested assignments.
Professional Services -Legal Services
The District's attorney provides general legal services to the District, i.e., attendance and preparation for Board meetings,
review of contracts, review of agreements and resolutions, and other research as directed or requested by the Board of
Supervisors and the District Manager.
Professional Services- Management Consulting Services
The District receives Management, Accounting and Administrative services as part of a Management Agreement with
Severn Trent Environmental Services, Inc. Also included are costs for Information Technology charges to process all of
Annual Operating and Debt ScrAcc Budget
Fiscal Year 2014
Page 4
HERITAGE BAY
Community Development District
Genera! Fund
Budget Narrative
Fiscal Year 2014
EXPENDITURES
Administrative (continued)
the District's financial activities, i.e. accounts payable, financial statements, budgets, etc., on a main frame computer
owned by Severn Trent in accordance with the management contract and the charge for rentals. The budgeted amount
for the fiscal year is based on the contracted fees outlined in Exhibit "A" of the Management Agreement, with a moderate
proposed increase.
Professional Services - 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. The FY 2014 budget for property appraiser costs is
based upon 1.5% of the anticipated Non -Ad Valorem assessment collections.
Professional Services - Special Assessment
This is the Administrative fees to prepare the District's special assessment roll.
Professional Services- Trustee
The District pays US Bank an annual fee for trustee services on the Series 2005 Special Assessment Bond. The
budgeted amount for the fiscal year is based on standard fees charged plus any out -of- pocket expenses.
Auditing Services
The District is required to conduct an annual audit of its financial records by an Independent Certified Public Accounting
Firm. The budgeted amount for the fiscal year is based on contracted fees from an existing engagement letter.
Communication - Telephone
Telephone and fax transmission expenditures.
Postage and Freight
Actual postage and /or freight used for District mailings including agenda packages, vendor checks and other
correspondence.
Insurance - General Liability
The District's General Liability & Public Officials Liability Insurance policy is with Public Risk Insurance Agency, Inc. They
specialize in providing insurance coverage to governmental agencies. The budgeted amount allows for a projected
increase in the premium.
Printing and Binding
Copies used in the preparation of agenda packages, required mailings, and other special projects_
Legal Advertising
The District is required to advertise various notices for Board meetings and other public hearings in a newspaper of
general circulation.
Miscellaneous -Bank Charges
This includes monthly bank charges for the maintenance of the operating accounts.
Miscellaneous- Assessment Collection Costs
The District reimburses the Collier County Tax Collector for her or his necessary administrative costs. Per the Florida
Annual Operating and Debt Service Budget
Fiscal Year 2014
Page 5
HERITAGE BAY
Community Development District
Genera! Fund
Budget Narrative
Fiscal Year 2014
EXPENDITURES
Administrative (continued)
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 FY2014 budget for collection costs is based on a maximum of 2% of the anticipated assessment collections.
Office Supplies
Supplies used in the preparation and binding of agenda packages, required mailings, and other special projects
Annual District Filing Fee
The District is required to pay an annual fee of $175 to the Department of Economic Opportunity.,
EXPENDITURES
Field
R &M - Contingency
This is for any repair and maintenance items, such as erosion control and lake maintenance for the lakes of the District, if
needed.
Annual Operating and Debt Service Budget
Fiscal Year 2014
Page 6
Heritage Bay
Community Development District
Debt Service Budget
Fiscal Year 2014
HERITAGE BAY
Community Development District Series 2005 Debt Service Fund
Summary of Revenues, Expenditures and Changes in Fund Balances
Fiscal Year 2014 Proposed Budget
ADOPTED ACTUAL PROJECTED TOTAL ANNUAL
ACTUAL BUDGET THRU APR- PROJECTED BUDGET
ACCOUNT DESCRIPTION FY 2012 FY 2013 MAR -2013 SEP -2013 FY 2013 FY 2014
REVENUES
Administrative
Interest - Investments
$ 1,009
$ 500
$ 403 $
97
$ 500
$ 500
Special Assmnts- Tax Collector
1,392,800
1,452,850
1,350,363
102,487
1,452,850
1,452,850
Special Assmnts- CDD Collected
107,300
31,500
33,300
ProtServ- Trustee
33,300
33,300
Special Assmnts- Discounts
(48,988)
(57,154)
(51,852)
(5,302)
(57,154)
(58,114)
TOTAL REVENUES
1452121
1,427,696
1 332 -214
97,282
1,429,496
1,423 536
EXPENDITURES
Administrative
Principal Debt Retirement
355,000
375,000
ProfServ- Arbitrage Rebate
600
600
600
600
ProfServ- Dissemination Agent
5,000
5,000
5,000
5,000
ProfServ- Property Appraiser
Total Debt Service
21,433
21,433
21,433 21,793
ProtServ- Trustee
5,926-
6,000
5,432 494
5,926 -
Misc - Assessmnt Collection Cost
16,651
28,577
25,970
25,970 29,057
Total Administrative
28,177
61,610
31,402 27,527
58,929 50,850
Debt Service
Principal Debt Retirement
355,000
375,000
-
375,000
375,000
395,000
Interest Expense
1,023,825
1,004,300
502,150
502,150
1,004,300
983,675
Total Debt Service
1,378,825
1,379,300
502,150
877,150
1,379,300
1,378,675
TOTAL EXPENDITURES
1,407 002
1,440,910
63%552
904,677
1,438 229
1,429,5251
Excess (deficiency) of revenues
Over (under) expenditures
45,119
(13,214)
798,662 (807,395)
(8,733) (989)
OTHER FINANCING SOURCES (USES)
Other NonOperating Uses
(657,585)
(657,585)
Contribution to (Use of) Fund Balance
(13,214)
(989)
TOTAL OTHER SOURCES USES
-
.:13,214
557585
-
857,585
989
Net change in fund balance
FUND BALANCE, BEGINNING
FUND BALANCE, ENDING
Annual Operating and Debt Service Budget
Fiscal Year 2014
45,119 (13,214 ) 141,077 (807,395) (666,318) (989)
1,799,010 1,844,129 1,644,129 1,844,129 1,177,811
$ 1,844,129 $ 1,830,915 $$ 1,98 $ (807,395) ,1=$=I 77,811 $ 1,176,822
Page 7
HERITAGE BAY
Community Development District Series 2005 Debt Service Fund
Debt Amortization Schedule
Series 2005 Special Assessment Bonds
11/1/2013
17,885,000
5.500%
491,838
5/1/2014
17 885,000
5.500%
395,000
491,838
1,378`675
11/1/2014
17,490,000
5,500%
480,975
5/1/2015
17,490,000
5.500%
420,000
480,975
1,381,950
11/1/2015
17,070,000
5.500%
469,425
5/1/2016
17,070,000
5.500%
445,000
469,425
1,383,850
11/1/2016
16,625,000
5.500%
457,188
5/1/2017
16,625,000
5.500%
470,000
457,188
1,384,375
11/1/2017
16,155,000
5.500%
444,263
5/1/2018
16,155,000
5.500%
495,000
444,263
1,383,525
11/1/2018
15,660,000
5.500%
430,650
5/1/2019
15,660,000
5.500%
525,000
430,650
1,386,300
11/1/2019
15,135,000
5.500%
416,213
5/1/2020
15,135,000
5.500%
555,000
416,213
1,387,425
11/1/2020
14,580,000
5.500%
400,950
5/1/2021
14,580,000
5.500%
585,000
400,950
1,386,900
11/1/2021
13,995,000
5.500%
384,863
5/1/2022
13,995,000
5.500%
615,000
384,863
1,384,725
11/1/2022
13,380,000
5.500%
367,950
5/1/2023
13,380,000
5.500%
650,000
367,950
1,385,900
11/1/2023
12,730,000
5.500%
350,075
5/1/2024
12,730,000
5.500%
690,000
350,075
1,390,150
11/1/2024
12,040,000
5.500%
331,100
5/1/2025
12,040,000
5.500%
730,000
331,100
1,392,200
11/1/2025
11,310,000
5.500%
311,025
5/1/2026
11,310,000
5.500%
770,000
311,025
1,392,050
11/1/2026
10,540,000
5.500%
289,850
5/1/2027
10,540,000
5.500%
815,000
289,850
1,394,700
11/1/2027
9,725,000
5.500%
267,438
5/1/2028
9,725,000
5.500%
860,000
267,438
1,394,875
11/1/2028
8,865,000
5.500%
243,788
5/1/2029
8,865,000
5.500%
905,000
243,788
1,392,575
11/1/2029
7,960,000
5.500%
218,900
5/1/2030
7,960,000
5.500%
960,000
218,900
1,397,800
11/1/2030
7,000,000
5.500%
192,500
5/1/2031
7,000,000
5.500%
1,010,000
192,500
1,395,000
11/1/2031
5,990,000
5.500%
164,725
5/1/2032
5,990,000
5.500%
1,070,000
164,725
1,399,450
111/11/2032
4,920,000
5.500%
135,300
5/1/2033
4,920,000
5.500%
1,130,000
135,300
1,400,600
11/1/2033
3,790,000
5.500%
104,225
5/1/2034
3,790,000
5.500%
1,195,000
104,225
1,403,450
11/1/2034
2,595,000
5.500%
71,363
5/1/2035
2,595,000
5.500%
1,260,000
71,363
1,402,725
1111/2035
1,335,000
5.500%
36,713
5/1/2036
1,335,000
5.500%
1,335,000
36,713
1,408,425
17,885,000
14,122,625
32,007,625
Annual Operating and Debt Service Budget
Fiscal Year 2014
Page 8
HERITAGE BAY
Community Development District
Debt Service Fund
Budget Narrative
Fiscal Year 2014
REVENUES
Interest-investments
The District earns interest on the monthly average collected balance for their trust accounts.
Special Assessments -Tax Collector
The District will levy a Non -Ad Valorem assessment on all sold and platted parcels (using the uniform method) within the
District in order to pay for the operating expenditures during the Fiscal Year.
Special Assessments -CDD Collected
The District will levy a Non -Ad Valorem assessment on all unplatted acres or platted but unsold parcels within the District
that are not collected by the Collier County Tax Collector in order to pay for the operating expenditures during the Fiscal
Year.
Special Assessments- Discounts
Per Section 197.162 and Section 197.3632 of the Florida Statutes, discounts are allowed for early payments of
assessments collected by the Tax Collector and only when the Tax Collector is using the uniform methodology. The
budgeted amount for the fiscal year is calculated at 4% of the anticipated Non -Ad Valorem assessments.
EXPENDITURES
Administrative
Professional Services - 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. The FY 2014 budget for property appraiser costs is
based upon 1.5% of the anticipated Non -Ad Valorem assessment collections.
Miscellaneous- Assessment Collection Costs
The District reimburses the Collier County 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 FY2014 budget for collection costs is based on a maximum of 2% of the anticipated assessment collections.
Debt Service
Principal Debt Retirement
The District pays regular principal payments annually in order to pay down /retire the debt.
Interest Expense
The District pays interest expense on the debt twice during the year
Annual Operating and Debt Service Budget
Fiscal Year 2014
Page 9
Heritage Bay
Community Development District
Supporting Budget Schedules
Fiscal Year 2014
HERITAGE BAY
Community Development District All Funds
Comparison of Assessment Rates
Fiscal Year 2014 vs. Fiscal Year 2013
Product
j0daniaral Fund 01
FY 2014 FY 2013
Percent s
Change
FY 2014
Debt Service
FY 2013
Percent 4
Change
Total Assessments per Unit f
FY 2014 FY 2013 PWCQrt—f
Change
Units
Executive
$125.00
$125.02
0%
g,
$1,700.00
$1,700.00
0%
$1,825,00
$1,825.02
0%
139
Classics
$125.00
$125,02
0%
$2,690,00
$2.690.00
0%
$2.615.00
$2,815.02
0%
95
Classics 11
$125.00
$125.02
0%
$2,900.00
$2,900.00
0%
$3.025,00
$3,025.02
0% h"
18
Coach
1
$125.00
$125.02
0%
$1,200.00
$1,200.00
0%
$1,325.00
$1.325.02
01/6 s
184
2 Story
$125.00
$125,02
0%
$1,000.00
$1,000.00
OA
$1,125.00
$1,125.0 2
0% h
364
Story
$125.00
$125,02
0%
a
$800.00
$800.00
0%
$925,00
$925.02
0%
450
J
1250
Annual Operating and Debt Service Budget
Fiscal Year 2014
Page 10