TRADITION/SOUTHERN GROVE IRRIGATION SYSTEM RATE COMMITTEE

PORT ST. LUCIE COMMITTEE MEETING
April 5, 2023
9:00 A.M.

Special District Services, Inc.
The Oaks Center 2501A Burns Road
Palm Beach Gardens, FL 33410

www.traditioncdd1.org www.southerngrovecdd1.org

561.630.4922 Telephone 877.SDS.4922 Toll Free 561.630.4923 Facsimile

AGENDA
TRADITION/SOUTHERN GROVE IRRIGATION SYSTEM RATE COMMITTEE
Tradition Town Hall 10799 SW Civic Lane
Port St. Lucie, Florida 34987 COMMITTEE MEETING
April 5, 2023
9:00 a.m.

Call to Order
Proof of Publication.	Page 1
Establish Quorum
Additions or Deletions to Agenda
New Business
Approval of April 14, 2021 Committee Meeting Minutes	Page 3
Discussion - Second holding tank
Review FY: 2019 Irrigation Rate Study…	Page 5
Irrigation Aging Summary Report	Page 54
Irrigation Financials	Page 55
Adjourn

TRADITION COMMUNITY DEVELOPMENT DISTRICT NOS. 1-10 FISCAL YEAR 2022/2023
REGULAR BOARD MEETING SCHEDULE
NOTICE IS HEREBY GIVEN that the Tradition Community Development District Nos. 1-10 (“Districts”) will conduct Regular Board Meetings of the Board of Supervisors (“Board”) for the purpose of conducting the business of the Districts that may properly come before the Board. The following meetings will be held at 11:00 a.m. at Tradition Town Hall located at 10799 SW Civic Lane, Port St. Lucie, Florida 34987 on the following dates:

*October 5, 2022
November 2, 2022
December 7, 2022
*January 4, 2023
February 1, 2023
March 1, 2023
*April 5, 2023
May 3, 2023
June 7, 2023
*July 5, 2023
August 2, 2023
September 6, 2023

*Irrigation Rate Committee Meeting - 9:00 a.m.
Southern Grove CDD Meeting - 10:30 a.m.
Tradition CDD Meeting - 11:00 a.m.

*An Irrigation Committee Meeting will take place at 9:00 a.m. at Tradition Town Hall located at 10799 SW Civic Lane, Port St. Lucie, Florida 34987 on the above dates, as indicated.*

The meetings are open to the public and will be conducted in accordance with the provisions of Florida law for community development districts. Meetings may be continued to a date, time and place to be specified on the record. A copy of the agenda for the meetings may be obtained from the Districts’ websites or at the offices of the District Manager, Special District Services, Inc., 10807 SW Tradition Square, Port St. Lucie, Florida.
There may be occasions when one or more Supervisors will participate by telephone; therefore, a speaker telephone may be present at the meeting location so that one or more Supervisors may attend the meeting and be fully informed of the discussions taking place.
Any person requiring special accommodations at these meetings because of a disability or physical impairment should contact the District Office at 772-345-5119 and/or toll free at 1-877-737-4922 at least five calendar days prior to the meeting.  If you are hearing or speech impaired, please

contact the Florida Relay Service at 1-800-955-8770, who can aid you in contacting the District Office.
Each person who decides to appeal any action taken at a meeting is advised that they will need a record of the proceedings and that accordingly, the person may need to ensure that a verbatim record of the proceedings is made, including the testimony and evidence upon which such appeal is to be based.
Meetings may be cancelled from time to time without advertised notice.

TRADITION COMMUNITY DEVELOPMENT DISTRICT NOS. 1-10

www.traditioncdd1.org

PUBLISH: ST. LUCIE NEWS TRIBUNE	09/23/22

TRADITION/SOUTHERN GROVE IRRIGATION SYSTEM RATE COMMITTEE
Join Zoom Meeting: https://us02web.zoom.us/j/3341025011 Meeting ID: 334 102 5011
OR
Dial In at:1 929 436 2866
COMMITTEE MEETING
April 14, 2021
9:00 a.m.

CALL TO ORDER

District Manager, Frank Sakuma called the April 14, 2021, Tradition/Southern Grove Irrigation System Rate Committee Meeting to order at 9:00 a.m. in the Tradition Town Hall located at 10799 SW Civic Lane, Port St. Lucie, Florida 34987.

PROOF OF PUBLICATION

Proof of publication was presented that notice of the April 14, 2021 Tradition/Southern Grove Irrigation System Rate Committee Meeting had been published in The St. Lucie News-Tribune on October 5, 2020, as legally required.

ESTABLISH QUORUMS

The following Committee Members were in attendance:

Tradition CDD #1 (Non-Voting) & Southern Grove CDD #5: Jeremy Bunner (via Zoom) Tradition CDD #2, #7, #8: Jeremy Bunner (via Zoom)
Tradition CDD #3: Isie Steinberg Tradition CDD #4: Gail Cost Tradition CDD #5: VACANT
Tradition CDD #6: Jerry Krbec (via Zoom)

Staff members in attendance were: District Manager: B. Frank Sakuma, Jr., and Assistant District Manager: Jessica Wargo with Special District Services, Inc. and District Attorney: Dan Harrell with Gonano and Harrell.

Also present via Zoom: District Manager: Andrew Karmeris with Special District Services, Inc. and District Engineer: Kelly Cranford with Culpepper and Terpening.

APPOINTMENT OF CHAIRPERSON

A Motion was made by Ms. Cost, seconded by Mr. Krbec and passed unanimously to Appoint Isie Steinberg as the new Chairperson.

APPOINTMENT OF VICE-CHAIRPERSON

A Motion was made by Mr. Steinberg, seconded by Mr. Krbec and passed unanimously to Appoint Gail Cost as the new Vice-Chairperson.

ADDITIONS OR DELETIONS TO THE AGENDA

There were no additions or deletions to the agenda.

NEW BUSINESS

Approval of October 14, 2020 Committee Meeting Minutes

A Motion was made by Ms. Cost, seconded by Mr. Steinberg and passed unanimously to approve the October 14, 2020 Committee Meeting Minutes.

Irrigation Financials
Mr. Karmeris reviewed the financials. He stated that a few clients are still past due.
Ms. Cost asked about the outstanding balances and how they are collected. Mr. Sakuma replied that there is no collection entity set up at this time, other than working directly with the property owners. He will follow up the Attorney regarding alternative collection options and bring that information back to the Committee.

Mr. Bunner asked about any recent rate studies. Mr. Karmeris stated the last study was in 2019. Mr. Sakuma commented the rate studies normally occur every 5 years. Mr. Karmeris also noted a rate study could be required if one or more bond covenants are not met.

Ms. Cost stated the Irrigation plant seems to go down several times a month. Is it a maintenance issue? Mr. Sakuma remarked that there is no comprehensive maintenance program, but the District Engineer is putting something together now and will be brought back to the Board. He noted the most recent outages were a direct result of the system being overused by customers.

ADJORNMENT

There being no further business to come before the Board, Mr. Steinberg moved for adjournment at 9:23a.m., Ms. Cost seconded and the motion carried unanimously.

Chairperson/Vice-Chairperson

1

TRADITION COMMUNITY DEVELOPMENT DISTRICT NO.

IRRIGATION SYSTEM RATE STUDY – FISCAL YEAR 2019

September 25, 2019

September 25, 2019

Honorable Chairman and Members of the Governing Board
Tradition Community Development District No. 1 10807 S.W. Tradition Square
Port St. Lucie, Florida 34987

Subject:	Irrigation System Rate Study – Fiscal Year 2019

Honorable Chairman and Members of the Board:

Raftelis Financial Consultants, Inc. ("Raftelis"), formerly known as Public Resources Management Group, Inc. ("PRMG"), has completed the 2019 Irrigation System Rate Study (the "Study") on behalf of the Tradition Community Development District No. 1 (the "District") and has presented the results of our analyses, assumptions, and recommendations in this report for your consideration. The focus of the Study was to prepare a forecast of utility operations and the corresponding expenditure and funding needs (the "revenue requirements") to: i) evaluate the sufficiency of the irrigation utility (the "Utility" or "System") revenues to meet such projected revenue requirements; and ii) to evaluate and redesign monthly irrigation rates to develop a consolidated or uniform rate, applicable to all customers, for providing irrigation water to the System. The Study period evaluated a forecast of operations for the Fiscal Years 2019 through 2023 (the "Forecast Period") to identify the estimated financial effects to Utility rates from changes in operations and the timing and level of projected capital improvements to be funded through Utility operations. Specifically, the Study evaluated the ability of the existing rate revenues: i) to fund day-to-day operations and the capital improvements of the System; ii) meet anticipated rate covenant requirements delineated in the authorizing resolution associated with the issuance of utility bonds / loans on behalf of the System by the District; and iii) promote the overall financial sustainability of the System to limit financial risk and maintain sustainable long-term rates.

With respect to the System's current irrigation charges, the rates currently in effect were last established by the prior owner of the System, Tradition Irrigation Company, LLC (the "Company" or "Prior Owner"), which the District subsequently adopted at the time of acquisition of the System from the Prior Owner on August 1, 2017. The rates for irrigation service have been in effect for several years. Based on the projected expenditure and capital funding needs of the System, it is projected that the current rates revenues will not be sufficient to meet such needs of the System and that the revenues derived from the monthly rates for utility service will need to be increased. The study has identified: i) a one-time recommended rate adjustment of 6% for customers currently billed a discounted rate compared to other customers of the System (certain customers of the System currently receive a 5% discounted rate as compared to other customers of the System not receiving a discounted rate); and ii) a 1.24% rate adjustment for customers currently billed a non- discounted rate. It is further recommended that the proposed irrigation rate to become effective on

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341 NORTH MAITLAND AVENUE – SUITE 300 – MAITLAND, FL 32751

October 1, 2020 (beginning of the Fiscal Year 2021).  For the remainder of the Forecast Period it is projected that the recommended rates should be adequate to fund the day-to-day operations and the capital improvements of the System for Fiscal Years 2022 through 2023. The recommended overall System rate adjustments by Fiscal Year are summarized below:

Projected Irrigation Rate Adjustments

Fiscal Year

Effective Date

Increase for Customers Currently Billed a 5% Discounted Rate

Increase for Customers Currently a Billed Non- Discounted Rate

2020	10/1/2019	0.00%	0.00%	
2021	10/1/2020	6.00%	1.24%	
2022	10/1/2021	0.00%	0.00%	
2023	10/1/2022	0.00%	0.00%	
2024	10/1/2023	0.00%	0.00%	

The primary reasons for the increase in revenues for the Forecast Period are due to:

The need to recover increased operating and maintenance expenses associated with the impacts of general inflation, the effects of an improved economy which is affecting the cost for materials and professional / contracted services, and increased additional personnel assumed during the Forecast Period due to System growth and facility expansions;

To provide for the annual funding of a dedicated accrual of capital re-investment into the Utility (represents annual transfers to fund capital expenditures for the renewal, replacement, betterment and upgrade of System assets) in order to limit (balance) the amount of debt financing and long-term financing costs to the System, which will promote ongoing rate stability;

Provide sufficient funds necessary to comply with the rate covenant requirements as delineated in the Bond Resolution which authorized the issuance of the outstanding senior lien bonds of the System; and

Maintain the creditworthiness of the System and bond credit rating, which included maintaining working cash (fund balance) reserves to limit the financial risk to the utility due to unforeseen changes in revenues, the incurrence of unexpected operating or increased capital expenditures, and to provide a plan to achieve the lowest cost of borrowers (interest rates) for capital financing to promote the long term financial stability of the System.

Based on our discussions with the District, another objective of our analysis was to assist the District in the development of a consolidated, non-discriminatory uniform rate for providing irrigation water to the System customers. As a result of the historical development process, there currently exist different rate structures which are being charged at this time to different customers

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of the System and the District would like to simplify the structure and to make the rates consistent and non-discriminatory among customers (since receiving the same service) from a reasonableness standard. The current District rates for non-potable water irrigation service recognize three distinct types of billing for customers within the service area which are as follows: i) a flat monthly charge per residence receiving irrigation service behind the point of delivery (i.e., the master meter) which is applicable to all residential service (a per Equivalent Residential Connection “ERC” flat rate);
ii) a flat monthly charge per acre based on irrigated common area (whereby each acre of common area is equivalent to 8.7 ERC’s) which is applied to customers classified as commercial service; or iii) a usage-based rate per 1,000 gallons of metered irrigation water consumption as metered at the point of delivery. Of the 43 active customer accounts currently receiving irrigation service (not including Guaranteed Revenue accounts): i) the majority of the customers (34) are billed based a flat monthly charge per irrigated acre; ii) six (6) customers are billed based on a per ERC flat rate basis; and iii) nine (9) customer accounts are based on usage per 1,000 gallons basis.

The proposed rates and charges are intended to meet a number of goals and objectives. The most important objective of the study was to develop proposed rates that meet the projected expenditure requirements of the System in order to maintain sound financial operations, and fund the anticipated expenses and capital needs of the System. The other goals and objectives considered in the study include:

Proposed rates should be based on full cost recovery principles;
Proposed rates should be reasonable, consistent and non-discriminatory among customer classes;
Proposed rates should promote the financial creditworthiness of the System and maintain adequate reserves for emergencies and unforeseen capital needs; and
To the extent practical, rates should remain competitive and any rate adjustments to recover the System revenue requirements should be minimized.

In order to consolidate and provide rate structure consistency to the customers served by the System Raftelis is recommending that the District implement a proposed rate structure that is the same for each customer that is served by the System. This recommendation of rate consistency is being made since it is our understanding based on discussions with the District that the service requirements (type of service, quality of irrigation water, pressure for delivery) are essentially the same for all of the District irrigation customers are considered as being similar from a service standpoint. Based on discussions with the District it has been determined that a consistent rate structure applied to all customers based on actual irrigated acres for each customer would provide the most reasonable means of billing customers on a consolidate basis for irrigation water (the majority of the customers are billed pursuant to this rate structure and a flat rate that does not vary with flow promotes revenue stability which is critical for small utility systems such as the District’s System). By basing the new proposed rate structure on irrigated acres the new structure would provide a better matching between cost of providing service to each customer and revenue

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collected by each customer. This new proposed rate structure would also be consistent with the District’s current water use permit issued by the South Florida Water Management District (the "SFWMD") which is based on the total allowed irrigated acres the District is allowed to serve. The primary reasons to consolidate the irrigation systems rates for all customer accounts to a per irrigated acre basis are as follows:

The majority of existing customers are currently billed on a per irrigated acre basis;
A per irrigated acre based rate provides a logical link between the potential demands placed on the System and the corresponding cost of providing service to each customer;
A per irrigated acre based rate provides maximum revenue stability for the Utility, which has become increasingly important given the recent issuance of the Senior Lien Revenue Bonds and corresponding annual debt service requirements as a result of the acquisition of the System; and
A per irrigated acre based rate structure would also be consistent with the District’s current water use permit issued by SFWMD.

As mentioned above, although the Study has identified the need for 6.00% rate adjustment for customers currently billed a discounted rate, and a 1.24% rate adjustment for customers billed a non-discounted rate, for Fiscal Year 2021 the proposed rate structure change to a flat rate per irrigated acre based rate starting in Fiscal Year 2020 is anticipated to generate additional revenues for the System beginning in Fiscal Year 2020 (approximately $200,000 in Fiscal Year 2020 and an additional $180,000 in Fiscal Year 2021). This is a result in the shift of cost recovery between different customer accounts and the different rate structures. The new proposed rate structure results in an anticipated revenue increase to small number of customers. This is primarily a result of certain customers that are currently billed on a per 1,000 gallon usage basis that are not paying the same prorata share of system costs as customers who are billed on a per irrigated acre basis or ERC basis. It is important to mention, based on discussions with District staff, some of the metered customers are reported to have had metering issues, broken meters, meter by-passes, which may distort that impact to certain customers if historical consumption would have been accurately recorded. Also, one customer, Bedford Park, has received a discounted rate as compared to other customers based on arrangements made with the prior owner of the System. Based on discussion with District staff, there are no agreements between Bedford Park or any other customer of the System and the District that would limit the amount the District can charge an individual customer for irrigation service, therefore it is being recommended all rates be consolidated to a monthly flat rate per acre basis so each customer pays their proportional share of the costs to operate and maintain the System. Recognizing the need to minimize the impact to the affected customers as a result of the rate structure change it is being recommended that all customers currently being billed on a metered consumption only basis and Bedford Park which receives a special discounted rate be converted to the flat rate per irrigated acre rate basis over a two year period of time starting in Fiscal Year 2020. The study recommends that the affected customers begin paying 70% of the

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flat rate per irrigated acre based rate in Fiscal Year 2020 and 100% of the proposed flat rate per irrigated acre based rate in Fiscal Year 2021 (consistent with all other customers).

Based on the determination of the equivalent unit costs as discussed in the report, the irrigation existing and proposed rate are as follows:

	Proposed Rates	
	Proposed Rates	

Description	

Existing
	Rates	  Fiscal Year 2020   Fiscal Year 2021 

Guaranteed Revenue Charge - Per ERC	$3.23	N/A	N/A

Guaranteed Revenue Charge - Per Acre	$28.10	N/A	N/A Monthly Base Charge (per irrigated home per ERC)	 $22.50	N/A	N/A
Customers Currently Billed on Metered Consumption and Bedford Park (Phased-In Rate):
Monthly Base Charge (per irrigated acre)	$195.75	$137.03	$198.18

Customers Currently Billed a Flat Monthly Rate Per ERC or Per Irrigated Acre at a 5% Discounted Rate:
Monthly Base Charge (per irrigated acre)	$186.96	$186.96	$198.18

All Other Customers Currently Billed a Flat Monthly Rate Per ERC or Per Irrigated Acre at a Non-Discounted Rate:
Monthly Base Charge (per irrigated acre)	$195.75	$195.75	$198.18

Monthly Excess Usage Charge (Volume Charge (per 1,000 gallons):
Less than 90,000 Gallons per Irrigated Acre	$1.50		N/A		N/A Above 90,000 Gallons but Less than 140,000 per Irrigated Acre	$2.18	$2.18	$2.21 Above 140,000 Gallons Per Irrigated Acres	$3.27	$3.27	$3.31

As shown above, the System current has in place a charge for monthly excess usage. In order to recognize irrigation water as a valuable resource and to promote responsible use by each customer it is recommended that even though each customer will transition to a flat monthly rate per irrigated acre basis which provides an allowance of 90,000 gallons per month per irrigated acre of usage, if a customer exceeds their monthly usage allowance per month they would be billed for the monthly excess usage charges identified above. The existing excess monthly usage rates above the allowed usage allowance of 90,000 gallons per month were increased by 1.24% for Fiscal Year 2021.

In order to provide additional information to the District Table 10 at the end of this report provides a calculation of the monthly impact to each customer of the System based on the recommended redesigned rate structure and recommend rate increase and the results are summarized below:

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Monthly Impact to Customers – Existing to Proposed Fiscal Year 2021 Rates Monthly

Description

Revenue
Existing Rates

Monthly
Revenue Proposed Rate

Amount Difference

%
Difference

Customers Currently Billed on Metered
Consumption and Bedford Park:		
Bedford Park	$2,284	$8,866	$6,582	288.17%	
Heritage Oaks @ Trad HOA, Inc. [1]	2,602	11,868	9,267	356.20%	
Lakes @ Tradition	7,572	17,642	10,070	132.99%	
Estates at Tradition	2,739	2,333	(407)	-14.84%	
The Landings	1,205	2,210	1,005	83.43%	
Landings Longhorn	75	113	38	49.90%	
Landings McDonalds	84	67	(17)	-19.73%	
Landings Olive Garden	128	113	(15)	-11.38%	
Landings PNC	90	91	1	1.30%	
Promenade @ Tradition	-	468	468	0.00%	
Target Corporation	234	410	176	75.32%	
Customer Current Billed Flat Monthly Rate
Per ERC or Per Irrigated Acre at a 5% Discounted Rate:					
Town Park (Master Assoc)	$19,978	$21,291	$1,313	6.00%	
Victoria Park (First)	4,896	5,218	322	6.00%	
Vitalia at Tradition	26,102	27,817	1,715	6.00%	
Westcliffe	113	120	7	6.00%	
All Other Customer Current Billed Flat Monthly Rate Per ERC or Per Irrigated Acre at
a Non-Discounted Rate:					
All Other Customers (33 Different Accounts)	$23,858	$24,155	$296	1.24%	

Heritage Oaks irrigation meter has been malfunctioning, therefore has not received a bill based on actual consumption. The meter has been replaced as of September 2019. The revenue estimate shown above is based on actual Fiscal Year 2016 six months annualized actual consumption data.

The District currently charges a one-time System Capacity Charge per ERC of $2,163.00 or
$18,818.10 per irrigated acre for customers initial connecting to the System to recover the upfront cost of System capacity related assets. Based on information received from the prior owner of the System it appears the capacity related assets of the System have been fully recovered through the application of the System Capacity Charge and its now being recommended that the System Capacity Charges for the System be suspending until such time as additional capacity related capital investment is required for the System in excess of the historical fees collected.

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The District currently charges a monthly Guaranteed Revenue Charge per ERC of $3.23 for all unconnected units or unconnected common acres (one acre equals 8.7 ERC’s for an equivalent charge per acre of $28.10). Based on discussions with District staff the Guaranteed Revenue Charges were originally developed by the Prior Owner of the System in order to provide a source of funding to cover certain carrying costs and fixed cost when the System was originally being developed and did not have an adequate active customer base to support the costs of operations of the System. Now that the System has matured and can financially support the cost of operations from the existing customer base it is being recommended that the Guaranteed Revenue Charge be eliminated as part of this Study.

In addition to developing proposed rates for the District’s existing System, the District has requested that Raftelis develop proposed rates to serve customers in future development areas that will not be receiving water from the District’s existing System. The alternative service areas considered, which are identified as Tiers 2 and 3, with Tier 1 being the District’s existing service area, were as follows:

Tier 2 – Customer would withdraw water from District lakes or canals through a remote District owned pump station. District would maintain the pump station and customer would be responsible for the distribution system.
Tier 3 - Customer would withdraw water from District lakes or canals or from a properly permitted well. Customer would own and maintain the pump station and distribution System. If irrigated area is determined by the District, in consultation with SRWMD to require significant withdrawal from District groundwater sources, the customer would be required to install a meter to record actual water use.

Proposed Rates		

Description		Tier 2 Proposed Rate	Tier 3 Proposed
	Rate		
All Other Customers:			
Monthly Base Charge (per irrigated acre)	$90.63	$46.75	
Monthly Excess Usage (Volume Charge (per 1,000 gallons):			
Above 90,000 Gallons but Less than 140,000 per Irrigated Acre	$2.18	$2.18	
Above 140,000 Gallons Per Irrigated Acres	$3.27	$3.27	

The Tier 2 and Tier 3 rates were developed based on the overall System operating costs for Fiscal Year 2020. The overall System costs were then allocated to only the cost specifically related to providing service to Tier 2 and Tier 3 customers. The detailed calculations of the Tier 2 and Tier 3 rates are shown on Table 8A at the end of this report.

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Following this letter, the remainder of the report provides additional details regarding the rate and financial analysis conducted on behalf of the District.

We appreciate the opportunity to be of service to the District and would like to thank the District’s staff for their assistance and cooperation during the course of this study.

Respectfully submitted,
Raftelis Financial Consultants, Inc.

Jeffrey M. Wilson Manager

RJO/dlc Attachments

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TABLE OF CONTENTS

Title	Page No.

Letter of Transmittal
Table of Contents	i
List of Tables	ii
Introduction	1
Forecast of Revenues	2
Irrigation Rates	2
Customer and Demand Forecast	3
Projected Revenues	3
Revenue Requirements	4
Principal Assumptions and Considerations	5
Net Revenue Requirements – Irrigation System	8
Debt Service Coverage and Covenant Compliance	11
Debt Service Covenant Compliance	11
Rate design – Approach	12
Proposed Rate Design – General Criteria	12
Irrigation System Rate Design	12
System Capacity Charges	17
Guaranteed Revenue Charge	17
Rate Comparisons – Monthly user fees	17
rate observations and recommendations	20
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LIST OF TABLES

Table No.	Title
Summary of Historical and Projected Customer Statistics and Revenues – Irrigation System

Summary of Projected Operating Expenses – Irrigation System

Summary of Projected Escalation Factors

Projected Capital Improvement Program

Projected Revenue Requirements – Irrigation System

Projected Debt Service Coverage Compliance

Projected of Ending Cash Balances and Interest Income

Summary of Rate Design – Tier 1 Rates

8A	Summary of Rate Design – Tier 2 and Tier 3 Alternative Rates

Summary of Existing and Proposed Rates – Irrigation System

Summary of Impact to Customer – Existing and Proposed Rates

Comparison of Typical Monthly Residential Bills - Non-Potable Water Irrigation Service

Comparison of Typical Monthly Residential Bills - Potable Water Irrigation Service

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TRADITION COMMUNITY DEVELOPMENT DISTRICT NO. 1
IRRIGATION SYSTEM RATE STUDY – FISCAL YEAR 2019 INTRODUCTION
Raftelis Financial Consultants, Inc. ("Raftelis"), formerly known as Public Resources Management Group, Inc. ("PRMG"), has completed the 2019 Irrigation System Rate Study (the "Study") on behalf of the Tradition Community Development District No. 1 (the "District") and has presented the results of our analyses, assumptions, and recommendations in this report for your consideration. The purpose of the analysis was to: i) analyze the sufficiency of the existing rates for service as it relates to funding the identified revenue requirements or expenditure needs of the irrigation system (the "System" or "Utility"); ii) identify any potential changes in rates that are considered necessary to promote the financial creditworthiness of the System for the Fiscal Years 2019 through 2023 (the "Forecast Period"), including compliance with the Bond Covenants as delineated in the Bond Resolution No. 2017-02 adopted by the District Board (the "Board") on May 14, 2017, as amended and supplemented from time to time (the "Bond Resolution"); and iii) to evaluate and redesign monthly irrigation rates to develop a consolidated, non-discriminatory uniform rate for providing irrigation water to the System.

The District has established and accounts for the System as a utility enterprise fund (the "Utility Fund"). In general, the Utility Fund must have revenues equal to the costs of the services provided by the System and the District must establish monthly user charges or rates sufficient to cover the cost of operating, maintaining, repairing and financing of the System. According to the Governmental Accounting Standards Board, "Enterprise Funds should be used to account for operations that are financed and operated in a manner similar to private business enterprises where the intent of the governing body is that costs of providing services to the general public on a continuing basis be financed or recovered primarily through user charges."

The goal of this study is to assist the District in establishing irrigation rates on a prospective basis sufficient to recover the cost of operating, maintaining, repairing, and financing the utility system (the "revenue requirements"). This study includes a five-year projection of the System revenue requirements (i.e., the projected expenditures and funding needs of the System) and the determination of the ability of the rate revenues to fund such projected needs (referred to as "revenue sufficiency"). Specifically, Raftelis was tasked to: i) provide a projection of revenue requirements for the System for the five-year period ending September 30, 2023; ii) provide a forecast of future rate adjustments necessary to fund the projected revenue requirements; and iii) to evaluate and redesign monthly irrigation rates to develop a consolidated or uniform rate for providing irrigation water to the System.
.
The recommendations of this study are based on a financial forecast developed for the irrigation system. The financial forecast starts with the identification of the accounts and System demands, next considers the funding of the operating and maintenance expenses and the determination of a plan to finance the capital needs, and finally establishes the timing of rate adjustments and the corresponding level of rates to be charged to meet the projected needs of the System. The basis for the rate study's recommendations is a financial plan developed for Fiscal Years 2019 through 2023 (the "Forecast Period").

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FORECAST OF REVENUES
The revenues for the Utility are principally generated from the rates for irrigation service, which during the Fiscal Year 2019, are estimated to account for approximately 94% of the Utility's gross revenues, not including income from guaranteed revenues and miscellaneous charges. The balance of the recurring revenues of the System is provided from miscellaneous charges such as service fee and late payment charges and interest income on unrestricted investments and guaranteed revenues. Since revenues are primarily generated from the monthly rates for Utility service, the forecast of rate revenues was predicated on assumptions of the number of customers receiving service and for the Forecast Period.

Irrigation Rates

The District does not provide irrigation service directly to the individual residential customers within the service territory but provides the service at various delivery points to homeowner associations and builders/developers (master-metered) within the District who then distribute the irrigation water to the end users. The District does however currently bill the master-metered residential customers based on the number of living units located behind the various service connection points through either a monthly consumption charge based on connected living units or a monthly guaranteed revenue charge based on unconnected units. The current District rates for non-potable water irrigation service recognize three distinct types of billing for customers within the service area which are as follows: i) a flat monthly charge per residence receiving irrigation service behind the point of delivery (i.e., the master meter) which is applicable to all residential service (a per Equivalent Residential Connection “ERC” flat rate); ii) a flat monthly charge per acre based on irrigated common area (whereby each acre of common area is equivalent to 8.7 ERC’s) which is applied to customers classified as commercial service; or iii) a usage-based rate per 1,000 gallons of metered irrigation water consumption at the point of delivery which is applied to certain customers of the System.

The System existing monthly user rates and charges currently being charged by the District for irrigation water service are as follows:
Monthly System Irrigation Rates Monthly Consumption Charge:
Per Connected Irrigated Residence	$22.50
Per Connected Common Area Irrigated Acre	$195.75

Monthly Guaranteed Revenue Charge:
Per Non - Connected Home	$3.23
Per Not-Connected Common Area Irrigated Acre	$28.28

Consumption Charge (per 1,000 gallons of metered use):
Monthly Excess Usage (Volume Charge (per 1,000 gallons):
Less than 90,000 Gallons per Irrigated Acre	$1.50
Above 90,000 Gallons but Less than 140,000 per Irrigated Acre	$2.18
Above 140,000 Gallons Per Irrigated Acres	$3.27

Customer and Demand Forecast
The forecast of irrigation service revenues relied upon a review of recent historical trends in customer account growth and sales (irrigation water sold) statistics and discussions with District staff. The following table provides a summary of recent irrigation customer billing statistics and the projected demands for the System over the Forecast Period:

Historical and Projected Customer Accounts and Statistics - Irrigation System
	Fiscal Year Ended						Metered		Converted to		
	September 30 [1]		Connected ERC's		Connected Acres		Consumption		Irrigated Acres		
	2019 [2]		2,209		162		85,972		620		
	2020								631		
	2021								643		
	2022								654		
	2023								666		
	Average Annual										
	Projected Growth Rate								1.44%		

Amounts shown derived from Table 1 at the end of this report.
Based on information provided by the District as of July 2019.

As can be seen from the above table, irrigation customers are expected to increase primarily due to customer growth associated with ongoing new development / construction in the District service area. Based on discussions with District staff and a review of the recent customer growth trends, it is assumed for the Forecast Period that the District may experience average annual growth in irrigated acres due to normal or general development of approximately 1.44% per year.

Projected Revenues
The revenue forecast was based on the customer and demand forecast and the proposed charges for service, which will be discussed later in this Study. Service revenues are projected to increase over the Forecast Period due to: i) anticipated increases in the monthly irrigation water user charges; and ii) greater irrigation water flows as a result of assumed customer growth associated with new development and infill of existing developed areas within the District. The following table summarizes the rate revenues, including annual average projected rate revenue adjustments, for the Forecast Period.

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Projected Irrigation System Revenues
	Rate Adjustment Customers Currently Billed		Rate Adjustment Customers Currently Billed								

Total Rate	
	a Discounted		a Non-		Irrigation		Guaranteed		Other		and Fee	
Fiscal Year		Rate		Discounted Rate		Service		Revenues		Revenues		Revenues	
2019		0.00%		0.00%		$1,070,897		$57,434		$17,494		$1,145,825	
2020		0.00%		0.00%		1,296,237		0		15,587		1,311,824	
2021		6.00%		1.24%		1,528,056		0		16,837		1,544,894	
2022		0.00%		0.00%		1,555,070		0		19,081		1,574,151	
2023		0.00%		0.00%		1,582,083		0		21,811		1,603,895	
Growth Rate						8.12%		-100.00%		4.51%		6.96%	

REVENUE REQUIREMENTS
The foundation of the study and the primary objective of the utility rates are to reasonably recover the cost of providing service, cost of infrastructure investment and compliance with covenants of the outstanding loans and identified or adopted fiscal policies / targets (referred to as the "revenue sufficiency" evaluation).

+ Cost of Operation and Maintenance
+ Capital Expenditures and Debt Service
+ Fund Transfers Out/ Rate Covenant Compliance
Other Revenue and Income
Fund Transfers-In and Contributions	
= Net Revenue Requirements (Funded from Rates)

As shown in the preceding figure, the various components of cost associated with operating and maintaining a municipally owned water system, as well as the cost of financing the renewal and replacement of facilities and capital improvements for upgrades and expansion, and maintaining compliance with the covenants of outstanding loans and identified or adopted policy are generally referred to as the utility cash revenue requirements (the "revenue requirements"). The sum of these

cost components, after adjusting for other income and other operating revenues available to the utility, represents the net revenue requirements of the utility system and the amount of expenditures assumed to be recovered by or funded from irrigation rates.

The revenue requirements for this rate study were predicated on an analysis of System costs for the five (5) fiscal year period ending September 30, 2023 (i.e., Fiscal Years 2019 through 2023 and previously defined as the "Forecast Period"). The projected revenue requirements included the various generalized cost components described as follows:

Operating Expenses: These expenses include the cost of labor, utilities, chemicals, sludge disposal, operating supplies, repairs and maintenance, allocated General Fund administrative costs, and other items necessary for the operation and maintenance of the System.

Capital Reinvestment: Capital reinvestment includes the amount of annual deposits made from rates to fund ongoing renewals, replacements, improvements, and betterments not financed by the issuance of debt obligations.

Debt Service: Debt service includes the principal of and interest on the District's currently outstanding and any future anticipated debt or loan obligations payable from the net operating revenues of the System.

Other Revenue Requirements: This component of cost includes any other funding requirements from rates including, but not limited to, payments to the General Fund for administrative allocations that are attributable to the System and other payments and transfers to reserves for future year expenditures to promote overall creditworthiness (limit financial risk).

Principal Assumptions and Considerations
The projected cash revenue requirements, as shown on Table 5 the end of this report for the irrigation system are based upon certain assumptions, considerations, and analyses. The major assumptions, considerations, and analyses that are included in the development of the projected revenue requirements for the Forecast Period are as follows:

The Adopted Fiscal Year 2019 and Proposed Fiscal Year 2020 Operating Budget and actual Fiscal Year 2018 and 2019 year-to-date operating expenditures associated with the operations of the System as provided by the District served as the primary basis for the System expenditure projections, and such amounts are shown on Table 2 at the end of this report for the irrigation system. The budgeted projections represent the most recent financial forecast of the System as approved by the Board and were based on historical operating results and trends, known or anticipated conditions, and projected overall System financial needs.

Projected operating expenses associated with operation and maintenance of the System were escalated from estimated Fiscal Year 2020 Budget levels based upon several assumptions and the nature of the expense. These projected expenditures were escalated for the Forecast Period as follows:

The District recently hired a development coordinator (Fiscal Year 2019) to oversee growth and expansion of the facilities within the System. Based on discussions with the District, the escalation of wages and salaries above Fiscal Year 2020 Budget amounts were increased on average 3.00% annually over the Forecast Period to reflect increases due to merit increases and inflation and cost of living adjustments.

The estimate of the electric expenses were based on the Fiscal Year 2020 Budget, recent historical trends, the recognition of growth in irrigation sales or flow, and the application of general inflation allowances assumed at a base inflationary adjustment equal to 3.00%, which considered the twenty-year average change (1998-2018) in the Consumer Price Index for All South Urban Consumers for Electricity (CUSR0000SEFH01) as published by the Bureau of Labor Statistics (2.67%), and to reflect potential changes in the market.

An allowance for bad debt expenses was recognized as an operating expense to account for revenues that may become uncollectible during the evaluation period. Based on discussions with the District and a review of historical trends, an allowance of 0.6% of sales revenues or approximately $8,900 annual has been projected for bad debt expenses over the Forecast Period.

The day-to-day operations and management of the System is provided through a management contract with Special District Services, Inc. (the "Contract Manager"). The projected operating expenses includes costs associated with this management fee consisting of the direct cost associated with operating and maintain the System and management related to the daily management, financial reporting and accounting, and System administrative responsibilities. The contract management cost for the System have been escalated by annual increases in the Consumer Price Index consistent with the terms of the contract management agreement.

An average contingency allowance of approximately five (5.0%) of total operating expenses was recognized in each Fiscal Year of the Forecast Period. The allowance has been included in order to recognize unknown or unplanned expenditures, which may occur in each Fiscal Year and to recognize potential changes in the revenues that may occur due to weather, conservation, and other factors. Over the Forecast Period, recognition of this allowance increased the estimated operating expenses of the System by approximately $40,000.

Based on discussions with District staff, the District is required to pay the City of Port St. Lucie a 6.0% franchise fee based on total System gross revenues subsequent to the acquisition of the System by the District. Therefore, an adjustment has been made to reflect the payment of 6.0% of irrigation sales revenues to the City over the Forecast Period.

Although considered a System operating expense for financial reporting purposes, depreciation and amortization expenses have not been recognized as an operation and maintenance expense consistent with the provisions of the Bond Resolution since such amounts represent non-cash expenses.

The District is estimated to have outstanding as of October 1, 2018 in the principal amount
$6,095,000 of senior lien utility revenue bonds issued pursuant to the Bond Resolution and were originally issued to acquire the System from the Prior Owner (the "Senior Lien Bonds")

The Debt Service requirements included in this Study for the repayment of the Bonds issued pursuant to the Bond Resolution (the "Senior Lien Bonds") were based on the actual debt service schedules for each issue and are presented on a "gross" basis (i.e., not net of interest earnings on any debt service-related funds or accounts). Furthermore, the amounts shown are based on the monthly funding requirements to the various sinking funds as required by the Bond Resolution, which authorized the issuance of the debt (essentially an accrual basis) as opposed to when the debt service requirements are actually paid. The average annual debt service requirements for the Outstanding Senior Lien Bonds represents essentially level payments averaging approximately $368,000 annually during the Forecast Period.

Pursuant to the terms and conditions of the Bond Resolution, the District must establish and maintain a Renewal and Replacement Fund (the "R&R Fund"). With respect to the R&R Fund, such amounts shall be used by the District for the purpose of paying the costs of major repairs, extensions, improvements or additions to, or the replacement or renewal of capital assets of the System, or extraordinary repairs to the System. Although the Bond Resolution does not specify a specific amount to be deposited into the R&R Fund it does state the District make deposits to the Fund until the amount therein is equal to the amount recommended in writing from time to time by the Consulting Engineers or Qualified Independent Consultant. Included in the analysis is an allowance for renewal and replacements and other unidentified capital improvement projects the District must perform on an ongoing basis to i) allow the System facilities to reach their useful service life or ii) replace assets that have reached the end of their useful service life. Examples of such improvements could include, but not be limited to, the following: i) replacement and improvements to pumps and control panels;
replacement and improvements to irrigation quality water transmission or distribution lines;
high service pump replacement and improvements; iv) replacement of meters and other appurtenances at the point of delivery; and v) replacement of structures. In many instances, assets may not reach their expected service life due to a variety of issues, including but not limited to, changes in regulation, damage to an asset, road widening, etc. (generally these events are referred to as a mortality occurrence) and a utility must accrue funds for these events as well. As shown on Table 5 at the end of this report, an allowance based on 5.0% of revenues for Fiscal Year 2019 increasing to 15.00% of gross system revenues over the Forecast Period or approximately $170,000 annually was recognized as a funding requirement for the System over the Forecast Period.

Investment income on funds and accounts created by the Bond Resolution and by the District (e.g., customer deposits) has been estimated utilizing average annual interest rate of 1.50% over the Forecast Period. The interest rates have been applied to estimated balances, if any, in the Operating Fund, Customer Deposit Account, the R&R Fund, the Debt Service Reserve Fund, and the Impact Fee Funds. Table 7 provides a summary of the transfers in and out of each fund / account and corresponding ending cash balances for each fund / account maintained by the District on behalf of the System.

The capital improvement program for the System was based on data derived from the District's most recent capital improvement plan. The capital funding plan was based on: i) the purpose of the expenditures (e.g., expansion-related); ii) the available balances in the funds and accounts established by the District that are available for capital projects; and iii) the use of R&R Fund to finance pay-as-you-go capital funding needs. The capital improvement plan, as provided by District staff is reflected in today's dollar value for all years of the program; such estimate amounts were escalated for purposes of this analysis based on an average inflationary factor of approximately 3.0% annually predicated on the average change in the last 10 years of the Construction Cost Index as published by the Engineering News Record (the "ENR Index"). The timing, priority, and funding of such capital needs were developed with the guidance of District staff. The following is a summary of capital expenditures and the corresponding estimated funding sources assumed in the development of the Financial Forecast:

2019		2020		2021		2022		2023		Total	

$351,046		
$129,986		
$147,094		
$197,128		
$112,044		
$937,298	

Five-Year Capital Improvement Program Summary of Projects and Funding Sources
Fiscal Year Ending September 30, [1]

Total System Capital Projects

Funding Sources:
Operating Reserves	$299,191		$15,450		$-		$-		$-		$314,641	
Renewal and Replacement Fund	35,000		114,536		104,658		153,419		67,024		474,637	
Rate Revenues	-		-		42,436		43,709		45,020		131,165	
Prior Bond Proceeds	16,856		-		-		-		-		16,856	
Additional Bonds	0		0		0		0		0		0	
Total Funding Sources	$351,046		$129,986		$147,094		$197,128		$112,044		$937,298	

[1] Amounts shown derived from Table 4 at end of Study.

As shown above no additional debt has been assumed to be required to fund the District’s capital improvement plan over the Forecast Period.

All contracts, agreements, statutes, rules, and regulations that have been relied upon by us in preparing this report and the projected operating results contained herein will be fully enforceable and remain in effect in accordance with their terms and conditions and such terms and conditions will be complied with by the parties involved throughout the study period. We make no representations or warranties and provide no opinion concerning the enforceability or legal interpretation of such contractual and legal requirements.

Net Revenue Requirements – Irrigation System
The purpose of the development of the net revenue requirements for the irrigation system is to determine the required level of revenue from monthly user rates necessary to meet the financial obligations of such system. The projected net revenue requirements for the System for the Forecast Period are presented on Table 5 and are shown below. The development of the net revenue requirements for the System were based upon: i) the irrigation system customer and sales forecast;
ii) the existing rates for service; iii) the operating and maintenance expense assumptions as discussed above; iv) the capital improvement plan as identified by the District and the

corresponding funding analysis assumed herein; and v) the rate covenants as defined in the Bond Resolution, all as discussed throughout this study.

Summarized below are the projected net revenue requirements and overall recommended rate adjustments for the System:

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	Projected Water System Net Revenue Requirements [1]	
	Projected Fiscal Year Ending September 30th,	
Adjusted
Description		2019		2020		2021		2022		2023	

Total Operating Expenses		
698,093		
811,143		
872,091		
874,133		
900,851	
Other Recognized Revenue Requirements											
Debt Service		$371,025		$366,825		$367,525		$368,025		$368,325	
Renewal and Repl. and Other Capital Improvements		53,427		113,483		195,410		230,183		234,235	
Other Irrigation System Improvements Funded From Rates		-		-		42,436		43,709		45,020	
Transfer to Rate Stabilization Fund		-		-		-		-		-	
Required Deposits to the Reserve Fund		-		-		-		-		-	
Principal and Interest on Subordinate Debt		-		-		-		-		-	
Transfer to Operating Reserves		-		-		40,000		30,000		30,000	
Total Other Recognized Revenue Requirements		$424,452		$480,308		$645,371		$671,918		$677,581	
Total Revenue Requirements		$1,122,545		$1,291,451		$1,517,462		$1,546,051		$1,578,431	
Less Other Revenues											
Guaranteed Revenues		$57,434		$-		$-		$-		$-	
Other Miscellaneous Revenues		6,500		6,500		6,500		6,500		6,500	
Interest Income		10,994		9,076		10,294		12,493		15,174	
Transfer from Rate Stabilization Fund		-		-		-		-		-	
Total Other Revenues		$74,928		$15,576		$16,794		$18,993		$21,674	
Total Revenue Requirements Less Other Revenues		$1,047,617		$1,275,875		$1,500,669		$1,527,058		$1,556,758	
Revenue Surplus / (Deficiency) Under Existing Rates:											
Existing Rate Rev. – Customer Billed 5% Discounted Rate		$616,358		$616,358		$616,358		$616,358		$616,358	
Existing Rate Rev. – Customer Billed Non-Discounted Rate		454,539		679,879		863,992		891,005		918,019	
Existing Rate Revenues – Converted to Per Acre		1,070,897		1,296,237		1,480,349		1,507,363		1,534,376	
Total Revenue Requirements		1,047,617		1,275,875		1,500,669		1,527,058		1,556,758	
Revenue Surplus / (Deficiency) Amount		$23,280		$20,362		$(20,319)		$(19,695)		$(22,381)	
Revenue Surplus / (Deficiency) Percent		2.17%		1.57%		-1.37%		-1.31%		-1.46%	

Proposed Rate Adjustments:											
Rate Adjustment – Customers Billed a 5% Discounted Rate	0.00%		0.00%		6.00%		0.00%		0.00%	
Rate Adjustment – Customers Billed a Non-Discounted Rate	0.00%		0.00%		1.24%		0.00%		0.00%	
Effective Month	October		November		October		October		October	
% of Current Effective Year	100.0%		91.7%		100.0%		100.0%		100.0%	
Current Year Rate Adjustments	$-		$-		$47,707		$-		$-	
Cumulative Prior Year Rate Adjustments	-		-		-		47,707		47,707	
Adjusted Water Rate Revenue	$1,070,897		$1,296,237		$1,528,056		$1,555,070		$1,582,083	
Revenue Surplus Deficiency After Adjustments	$23,280		$20,362		$27,388		$28,012		$25,325	
As Percent of Existing Revenue	2.17%		1.57%		1.79%		1.80%		1.60%	
Amounts shown derived from Table 5 at the end of this report.

Based on the projected expenditure and capital funding needs of the System, it is projected that the current rates revenues will not be sufficient to meet such needs of the System and that the

revenues derived from the monthly rates for utility service will need to be increased. The study has identified a one-time recommended rate adjustment of 6% for customers currently billed a discounted rate compared to other customers of the System (certain customers of the System currently receive a 5% discounted rate as compared to other customers of the System not receiving a discounted rate) and a 1.24% rate adjustment for customers currently billed a non-discounted rate for Fiscal Year 2021 assumed to become effective on October 1, 2021. For the remainder of the Forecast Period it is projected that the recommended rates should be adequate to fund the day- to-day operations and the capital improvements of the System for Fiscal Years 2022 through 2023. The forecasted rate revenues, with the recognition of the proposed rate adjustments through Fiscal Year 2023 are anticipated to be sufficient to adequately fund the identified net revenue requirements of the irrigation system and provide funds to maintain operating reserves to maintain a strong utility credit.

DEBT SERVICE COVERAGE AND COVENANT COMPLIANCE

Debt Service Covenant Compliance
The Bond Resolution includes a provision requiring the District to establish and maintain rates, which will always provide in each Fiscal Year, Net Revenues to satisfy the following debt coverage requirements:

"...(c) the Gross Revenues for the preceding Fiscal Year shall have been not less than the sum of the Cost of Operation and Maintenance for the current Fiscal Year, as shown in the Annual Budget, 115% of the Principal and Interest Requirements for the current Fiscal Year and 100% of the principal and interest requirements on any Subordinate Obligations for the current Fiscal Year. "

The Bond Resolution established these minimum debt coverage requirements for the protection of the holders of the Bonds.

Table 6 at the end of this report summarizes the ability of the System Pledged and Net Revenues to meet the rate covenant provisions of the Bond Resolution for the Forecast Period. Based on the results of the financial forecast, it is expected that funds generated from System operations during the Forecast Period, including the implementation of the adopted rate adjustments as recommended in this report, will provide sufficient resources to meeting the operations and maintenance requirements of the System as well as fund the projected capital needs as identified in the District's capital improvement program.

As can be seen on Table 6 and as shown below, it is anticipated that the Pledged Revenues derived from System operations should be sufficient to meet the rate covenant requirements as defined in the Bond Resolution.

Debt Service Coverage

Fiscal Year		Calculated Senior Lien Coverage (Required 115%)		Calculated All-In Coverage (Target 150%) [1]	
2019		120.67%		150.00%	
2020		136.49%		150.00%	
2021		183.05%		150.00%	
2022		190.19%		150.00%	
2023		190.84%		150.00%	

[1] Represents targets recommended by Raftelis to maintain or promote a favorable bond credit rating.

RATE DESIGN – APPROACH
This section of the report sets forth the derivation of the proposed monthly rates for the, including a discussion of general rate design criteria. The proposed rates are predicated on the rate revenue requirements and the customer and sales forecast discussed above. This section also summarizes typical monthly bill comparisons for the proposed rates versus the existing rates as well as a comparison of the proposed rates with the current rates charged by neighboring utility systems.

Proposed Rate Design – General Criteria
Rate design typically involves the development of a rate structure and calculation of monthly rates and charges for each customer classification and/or rate structure component. The goal of this task was to establish a pricing structure or formula to recover the total revenue requirements of the System in a reasonable manner, consistent with the cost of providing service, regulatory guidelines, overall revenue stability, and the fiscal and pricing policies of the District. Generally, proposed irrigation rates, to the extent practical, should meet the following criteria:

Rates should be based on a policy that calls for the lowest possible prices consistent with the requirements of providing quality service on an ongoing basis.
Rates should be simple and understandable.
Rates should be equitable and non-discriminatory among customers, taking into consideration the cost of providing service to the various users.
Rate and cost recovery strategies should recognize the current financial needs of the System.
Rates should comply with applicable orders and requirements of state and federal regulatory authorities, if any, that may have jurisdiction.

Other considerations that have an effect on the design of the user fees include revenue stability, historical rate form, and competitiveness with neighboring utility systems.

Irrigation System Rate Design
Based on our discussions with the District, another objective of our analysis was to assist the District in the development of a consolidated or uniform rate for providing irrigation water to the System customers.  As a result of the historical development process, there currently exist

different rate structures which are being charged at this time to different customers of the System and the District would like to simplify the structure and to make the rates consistent among customers (since receiving the same service) from a reasonableness standard. The current District rates for non-potable water irrigation service recognize three distinct types of billing for customers within the service area which are as follows: i) a flat monthly charge per residence receiving irrigation service behind the point of delivery (i.e., the master meter) which is applicable to all residential service (a per Equivalent Residential Connection “ERC” flat rate); ii) a flat monthly charge per acre based on irrigated common area (whereby each acre of common area is equivalent to 8.7 ERC’s) which is applied to customers classified as commercial service; or iii) a usage-based rate per 1,000 gallons of metered irrigation water consumption at the point of delivery which is applied to certain customers of the System. Of the 43 active customer accounts currently receiving irrigation service (not including Guaranteed Revenue accounts) the majority of the customers (34) are billed based a flat monthly charge per irrigated acre, 6 customers are billed based on a per ERC flat rate basis and 9 customer accounts are based on usage per 1,000 gallons.

In order to consolidate and provided consistency to the District’s rate structure Raftelis is recommending that the District implement a proposed rate structure that is the same for each customer that is served by the System. This recommendation of rate consistency is being made since it is our understanding based on discussions with the District that the service requirements (type of service, quality of irrigation water, pressure for delivery) are essentially the same and all of the District irrigation customers are considered as being similar from a service standpoint. Based on discussions with the District it has been determined that a consistent, non-discriminatory rate structure applied to all customers based on actual irrigated acres for each customer would provide the most reasonable means of billing customers for irrigation water. By basing the new proposed rate structure on actual irrigated acres the new structure would provide a better matching between cost of providing service to each customer and revenue collected by each customer. This new proposed rate structure would also be consistent with the District’s current water use permit issued by the South Florida Water Management District (the "SFWMD") which is based on the total allowed irrigated acres the District is allowed to serve. The primary reasons to consolidate the irrigation systems rates for all customer accounts to a per irrigated acre basis are as follows:

The majority of existing customers are currently billed on a per irrigated acre basis;
A per irrigated acre based rate provides a logical link between the potential demands placed on the System and the corresponding cost of providing service to each customer;
A per irrigated acre based rate provides maximum revenue stability for the Utility, which has become increasingly important given recent issuance of the Series 2017 revenue Bonds and corresponding debt service requirements as a result of the acquisition of the System; and
A per irrigated acre based rate structure would also be consistent with the District’s current water use permit issued by the South Florida Water Management District (the "SFWMD".

Based on the recommendation to consolidate a customers to a flat rate per irrigated acre basis the net revenue requirements as discussed above were divided by the total estimated irrigated acres served by the System in order to determine the "per unit cost" of providing service.  The detailed

calculation of the recommended flat rate per irrigated acre rate is shown on Table 8 at the end of this report with the results being summarized below:

Irrigation System Rate Per Equivalent Billing Unit – For the Test Year 2021 [1]

Base Charges:

Description

Monthly Base Charge Only Per Irrigated Acre

Base Charge Revenue Requirements	$1,528,057
Annual Billing Determinants (Acres)		643

Monthly Base Charge	$198.18
[1] Amounts shown derived from Table 8 at the end of this report.

As mentioned above, although the Study has identified the need for 6.00% rate adjustment for customers currently billed a discounted rate, and a 1.24% rate adjustment for customers billed a non-discounted rate, for Fiscal Year 2021 the proposed rate structure change to a flat rate per irrigated acre based rate starting in Fiscal Year 2020 is anticipated to generate additional revenues for the System beginning in Fiscal Year 2020 (approximately $200,000 in Fiscal Year 2020 and an additional $180,000 in Fiscal Year 2021). This is a result in the shift of cost recovery between different customer accounts and the different rate structures. The new proposed rate structure results in a anticipated revenue increase to small number of customers. This is primarily a result of certain customers that are currently billed on a per 1,000 gallon usage basis that are not paying the same prorata share of system costs as customers who are billed on a per irrigated acre basis or ERC basis. It is important to mention, based on discussions with District staff, some of the metered customers have had metering issues, broken meters, meter by-passes, which may distort that impact to certain customers if historical consumption would have been accurately recorded. Also, one customer, Bedford Park, has received a discounted rate as compared to other customers based on arrangements made with the prior owner of the System. Based on discussion with District staff, there are no agreements between Bedford Park or any other customer of the System and the District that would limit the amount the District can charge an individual customer for irrigation service, therefore it is being recommended all rates be consolidated to a monthly flat rate per acre basis so each customer pays their proportional share of the costs to operate and maintain the System. Recognizing the need to minimize the impact to the affected customers as a result of the rate structure change it is being recommended that all customers currently being billed on a metered consumption only basis and Bedford Park which receives a special discounted rate be converted to the flat rate per irrigated acre rate basis over a two year period of time starting in Fiscal Year 2020. The study recommends that the affected customers begin paying 70% of the flat rate per irrigated acre based rate in Fiscal Year 2020 and a 100% of the flat rate per irrigated acre based rate in Fiscal Year 2021 (Consistent with all other customers).

Based on the determination of the equivalent unit costs as discussed in the report, the irrigation existing and proposed rate are as follows:

	Existing and Proposed Rates	
	Proposed Rates	
Existing
Description	 Guaranteed Revenue Charge - Per ERC		Rates	
$3.23	 Fiscal Year 2020 
N/A	 Fiscal Year 2021 
N/A	
Guaranteed Revenue Charge - Per Acre	$28.10	N/A	N/A	
Monthly Base Charge (per irrigated home per ERC)	$22.50	N/A	N/A	
Customers Currently Billed on Metered Consumption and Bedford Park (Phased-In Rate):				
Monthly Base Charge (per irrigated acre)	$195.75	$137.03	$198.18	
Customers Currently Billed a Flat Monthly Rate Per ERC or Per Irrigated Acre at a 5% Discounted Rate:				
Monthly Base Charge (per irrigated acre)	$186.96	$186.96	$198.18	
All Other Customers Currently Billed a Flat Monthly Rate Per ERC or Per Irrigated Acre at a Non-Discounted Rate:				
Monthly Base Charge (per irrigated acre)	$195.75	$195.75	$198.18	
Monthly Excess Usage (Volume Charge (per 1,000 gallons):				
Less than 90,000 Gallons per Irrigated Acre	$1.50	N/A	N/A	
Above 90,000 Gallons but Less than 140,000 per Irrigated Acre	$2.18	$2.18	$2.21	
Above 140,000 Gallons Per Irrigated Acres	$3.27	$3.27	$3.31	

As shown above, the System current has in place a charge for monthly excess usage. In order to recognize irrigation water as a valuable resource and to promote responsible use by each customer it is recommended that even though each customer will transition to a flat monthly rate per irrigated acre basis which provides an allowance of 90,000 gallons per month per irrigated acre of usage, if a customer exceeds their monthly usage allowance per month they would be billed for the monthly excess usage charges identified above. The existing excess monthly usage rates above the allowed usage allowance of 90,000 gallons per month were increased by 1.24% for Fiscal Year 2021.

In order to provide additional information to the District Table 10 at the end of this report provides a calculation of the monthly impact to each customer of the System based on the recommended redesigned rate structure and recommend rate increase and the results are summarized below:

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Monthly Impact to Customers – Existing to Proposed Fiscal Year 2021 Rates Monthly

Description

Revenue
Existing Rates

Monthly
Revenue Proposed Rate

Amount Difference

%
Difference

Customers Currently Billed on Metered
Consumption and Bedford Park:		
Bedford Park	$2,284	$8,866	$6,582	288.17%	
Heritage Oaks @ Trad HOA, Inc. [1]	2,602	11,868	9,267	356.20%	
Lakes @ Tradition	7,572	17,642	10,070	132.99%	
Estates at Tradition	2,739	2,333	(407)	-14.84%	
The Landings	1,205	2,210	1,005	83.43%	
Landings Longhorn	75	113	38	49.90%	
Landings McDonalds	84	67	(17)	-19.73%	
Landings Olive Garden	128	113	(15)	-11.38%	
Landings PNC	90	91	1	1.30%	
Promenade @ Tradition	-	468	468	0.00%	
Target Corporation	234	410	176	75.32%	
Customer Current Billed Flat Monthly Rate
Per ERC or Per Irrigated Acre at a 5% Discounted Rate:					
Town Park (Master Assoc)	$19,978	$21,291	$1,313	6.00%	
Victoria Park (First)	4,896	5,218	322	6.00%	
Vitalia at Tradition	26,102	27,817	1,715	6.00%	
Westcliffe	113	120	7	6.00%	
All Other Customer Current Billed Flat Monthly Rate Per ERC or Per Irrigated Acre at a Non-Discounted Rate:					
All Other Customers (33 Different Accounts)	$23,858	$24,155	$296	1.24%	

Heritage Oaks irrigation meter has been malfunctioning, therefore has not received a bill based on actual consumption. The meter has been replaced as of September 2019. The revenue estimate shown above is based on actual Fiscal Year 2016 six months annualized actual consumption data.

In addition to developing proposed rates for the District’s existing System the District has requested that Raftelis develop proposed rates to serve customers in future development areas that will not be receiving water from the District’s existing System. The alternative service areas considered, which are identified as Tiers 2 and 3, with Tier 1 being the District’s existing service area, were as follows:

Tier 2 – Customer would withdraw water from District lakes or canals through a remote District owned pump station. District would maintain the pump station and customer would be responsible for the distribution system.
Tier 3 - Customer would withdraw water from District lakes or canals or from a properly permitted well. Customer would own and maintain the pump station and distribution System. If irrigated area is determined by the District, in consultation with SRWMD to require

significant withdrawal from District groundwater sources, the customer would be required to install a meter to record actual water use.

Proposed Rates Tier 2 and Tier 3

Description		Tier 2 Proposed Rate	Tier 3 Proposed
	Rate		
All Other Customers:
Monthly Base Charge (per irrigated acre)	
$90.63	
$46.75	
Monthly Excess Usage (Volume Charge (per 1,000 gallons): Above 90,000 Gallons but Less than 140,000 per Irrigated Acre	
$2.18	
$2.18	
Above 140,000 Gallons Per Irrigated Acres	$3.27	$3.27	

The Tier 2 and Tier 3 rates were developed based on the overall System operating costs for Fiscal Year 2020. The overall System costs were then allocated to only the cost specifically related to providing service to Tier 2 and Tier 3 customers. The detailed calculations of the Tier 2 and Tier 3 rates are shown on Table 8A at the end of this report.

System Capacity Charges
The District currently charges a one-time System Capacity Charge per ERC of $2,163.00 or
$18,818.10 per irrigated acre for customers initial connecting to the System to recover the upfront cost of System capacity related assets. Based on information received from the prior owner of the System it appears the capacity related assets of the System have been fully recovered through the application of the System Capacity Charge and its now being recommended that the System Capacity Charges for the System be suspending until such time as additional capacity related capital investment is required for the System in excess of the historical fees collected.

Guaranteed Revenue Charge
The District currently charges a monthly Guaranteed Revenue Charge per ERC of $3.23 for all unconnected units or unconnected common acres (one acre equals 8.7 ERC’s for an equivalent charge per acre of $28.10). Based on discussions with District staff the Guaranteed Revenue Charges were originally developed by the Prior Owner of the System in order to provide a source of funding to cover certain carrying costs and fixed cost when the System was originally being developed and did not have an adequate active customer base to support the costs of operations of the System. Now that the System has matured and can financially support the cost of operations from the existing customer base it is being recommended that the Guaranteed Revenue Charge be eliminated as part of this Study.

Rate Comparisons – Monthly user fees
In order to provide the District with additional information with respect to the proposed rates, included on Tables 11 and 12 at the end of this report are bill comparisons based on the District’s existing and proposed irrigation rates with those currently being charged by other neighboring communities.  The bill comparisons as shown on Tables 11 and 12 provide a summary of the

monthly cost of providing irrigation water for a typical residential customer at various usage levels. The District is unique in that not many other utilities provide the exact same type service that the District does; i.e., a non-potable irrigation water service that is service area-wide. The majority of neighboring utilities either require customers to use potable water for irrigation or have reclaimed water available to select number of customers to use for irrigation. Based on these service differences, Raftelis has prepared three different comparisons for the District’s information. Table 11 provides a comparison of known utilities around the state that provide a service similar to the District (non-potable irrigation service not reclaimed water). Table 12 provides a summary of what neighboring utilities charge customers for irrigation service where the customer’s only choice for irrigation is the use of potable water. The determination of the bills for the other neighboring Florida utilities for the two comparisons was calculated based on rates in effect as of the billing month of July 2019. The monthly bills for the various Florida utilities used for the comparison are exclusive of local taxes. Additionally, for municipal-owned utility systems, such utilities may apply to customers located outside the corporate limits of such municipality a surcharge of up to 50% when compared to the rates for service to customers located within the corporate limits as allowed pursuant to Section 180.191, Florida Statutes. As shown on Tables 11 through 12 the District’s existing and proposed monthly charges for irrigation water service are below the average monthly charges for comparable utilities surveyed for similar service for both the non-potable irrigation water comparable utilities and the potable irrigation water comparable utilities. A comparison of irrigation water typical monthly bills at 10,000 gallons per month (the estimated average monthly irrigation water use per residential unit for the District) for the two comparisons is provided below.
The following bill comparison shown below is for utilities that have an irrigation system similar in structure to the District.

Monthly Bill Comparison – Non-potable Irrigation Water @ 10,000 gallons per Month (Not Reclaimed Water) [1]

Irrigation Water
Tradition Community Development District Irrigation:
Existing Rates:
Flat Monthly Charge Per Unit	$22.50
Usage Charge Per 1,000 Gallons ($1.50 per 1,000 Gallons)	15.00

Proposed Rate:
Base Charge Only Per Irrigated Acre – ($198.18 / 8.7 = $22.78)	22.78
Other Florida Utilities:
Bonita Bay ( Resource Conservation Systems )	$22.87	
Gateway Service District (Irrigation Only)	21.51	
St Lucie West Service District (Irrigation Only)	18.45	
St Lucie County South Hutchinson Island (Irrigation Only)	32.80	
Central Sumter Utility Company (Irrigation)	33.13	
North Sumter County Utility (Irrigation)	27.85	
Other Florida Utilities' Average	$26.10	

[1] Amounts shown derived from Table 11 at the end of this report.		

The following bill comparison shown below is for utilities that require the use of potable water for irrigation service which is different in structure when compared to the District.

Monthly Bill Comparison – Potable Irrigation Water @ 10,000 gallons per Month [1]

Tradition Community Development District Irrigation:
Existing Rates:

Irrigation Water

Flat Monthly Charge Per Unit	$22.50
Usage Charge Per 1,000 Gallons ($1.50 per 1,000 Gallons)	15.00

Proposed Rates:
Base Charge Only Per Irrigated Acre – ($198.18 / 8.7 = $22.78)	22.78
Other Florida Utilities:
Brevard County - North Brevard	$30.50	
City of Port St. Lucie	38.00	
City of Stuart	55.30	
City of Vero Beach	41.40	
City of West Melbourne	51.15	
Fort Pierce Utilities Authority	40.18	
Indian River County	29.12	
Martin County	46.50	
Okeechobee Utility Authority	79.35	
Seacoast Utility Authority	36.35	
South Martin Regional Utilities	53.38	
St. Lucie West Service District	18.25	
St. Lucie County	112.43	
Other Florida Utilities' Average	$48.61	

[1] Amounts shown derived from Table 12 at the end of this report.		

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RATE OBSERVATIONS AND RECOMMENDATIONS

The following is a summary of Raftelis's rate observations and recommendations:

Based on the projected expenditure and capital funding needs of the System, it is projected that the current rates revenues will not be sufficient to meet such needs of the System and that the revenues derived from the monthly rates for utility service will need to be increased. The study has identified a one-time recommended rate adjustment of 6% for customers currently billed a discounted rate compared to other customers of the System (certain customers of the System currently receive a 5% discounted rate as compared to other customers of the System not receiving a discounted rate) and a 1.24% rate adjustment for customers currently billed a non- discounted rate for Fiscal Year 2021 assumed to become effective on October 1, 2020. For the remainder of the Forecast Period it is projected that the recommended rates should be adequate to fund the day-to-day operations and the capital improvements of the System for Fiscal Years 2022 through 2023. The forecasted rate revenues, with the recognition of the proposed rate adjustments through Fiscal Year 2023 are anticipated to be sufficient to adequately fund the identified net revenue requirements of the irrigation system and provide funds to maintain operating reserves to maintain a strong utility credit.

The primary reasons for the projected rate adjustments are to:

The need to recover increased operating and maintenance expenses associated with the impacts of general inflation, the effects of an improved economy which is affecting the cost for materials and professional / contracted services, and increased additional personnel assumed during the Forecast Period due to System growth and facility expansions;

To provide for the funding of a dedicated capital re-investment plan (represents annual transfers to fund capital expenditures for the renewal, replacement, betterment and upgrade of System assets) in order to limit (balance) the amount of debt financing and long-term financing costs to the System, which will promote ongoing rate stability;

Provide sufficient funds necessary to comply with the rate covenant requirements as delineated in the Bond Resolution which authorized the issuance of the outstanding senior lien bonds of the System; and

Maintain the creditworthiness of the System and bond credit rating, which included maintaining working cash (fund balance) reserves to limit the financial risk to the utility due to unforeseen changes in revenues, the incurrence of unexpected operating or increased capital expenditures, and to provide a plan to achieve the lowest cost of borrowers (interest rates) for capital financing to promote the long term financial stability of the System.

Raftelis is recommending that the District implement a proposed rate based on a flat rate per irrigated acre that is the same for each customer that is served by the System. The primary

reasons to consolidate the irrigation systems rates for all customer accounts to a per irrigated acre basis are as follows:

The majority of existing customers are currently billed on a per irrigated acre basis;
A per irrigated acre based rate provides a logical link between the potential demands placed on the System and the corresponding cost of providing service to each customer;
A per irrigated acre based rate provides maximum revenue stability for the Utility, which has become increasingly important given recent issuance of the Series 2017 revenue Bonds and corresponding debt service requirements as a result of the acquisition of the System; and
A per irrigated acre based rate structure would also be consistent with the District’s current water use permit issued by the South Florida Water Management District (the "SFWMD".
The Board should consider adopting the proposed rates for future customers not receiving irrigation water from the District’s existing System identified as Tier 2 and Tier 3 customers identified in this report.

As shown on Tables 11 and 12 at the end of this study, the recommended rates for the irrigation system are projected to remain competitive when compared to rates charges by other local governments (public utilities) in the region. It is further anticipated that this competitive relationship will remain during the Forecast Period.

Based on the implementation of the proposed rates as presented in this Study, it is anticipated that the System will produce sufficient Net Revenues to maintain compliance with the rate covenants as delineated in the Bond Resolution (senior lien debt)) and continue to be in a strong credit position, which will provide flexibility in the future relative to the funding of future capital investment and maintaining rates at competitive levels.

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TRADITION COMMUNITY DEVELOPMENT DISTRICT NO. 1

IRRIGATION SYSTEM RATE STUDY – FISCAL YEAR 2019

LIST OF TABLES

Table No.	Title
Summary of Historical and Projected Customer Statistics and Revenues – Irrigation System

Summary of Projected Operating Expenses – Irrigation System

Summary of Projected Escalation Factors

Projected Capital Improvement Program

Projected Revenue Requirements – Irrigation System

Projected Debt Service Coverage Compliance

Projected of Ending Cash Balances and Interest Income

Summary of Rate Design – Tier 1 Rates

8A	Summary of Rate Design – Tier 2 and Tier 3 Alternative Rates

Summary of Existing and Proposed Rates – Irrigation System

Summary of Impact to Customer – Existing and Proposed Rates

Comparison of Typical Monthly Residential Bills For Non-Potable Water Irrigation Service

Comparison of Typical Monthly Residential Bills For Potable Water Irrigation Service

Page 1 of 1

Table 1

Tradition Community Development District No. 1 Irrigation System Rate Study
Summary of Projected Irrigation System Sales Revenues - Existing Rates

Estimated		Fiscal Year Ending September 30,	 Revenues Under
Line	Existing Rates	 Estimated Revenues Converted to Per Irrigated Acre Flat Monthly Rate 
 No.  	Description	 	2019		2020	2021	2022	2023
Customer Statistics Prior to Conversion to Irrigated Acres:			
1	Metered Consumption	85,972		
2	Connected Acres	162		
3	Connected ERC's	2,209		

Customer Statistics After Conversion to Per Irrigated Acres:
Existing Metered Customers and Bedford Park Converted to Flat Monthly Rate Per Irrigated Acre Revenue Projection:
4	Existing Connected Acres	223	223	223	223	
5	Anticipated Growth	-	-	-	-	
6	Projected Average Connected Acres	223	223	223	223	
7	Monthly Rate Per ERC	195.75	195.75	195.75	195.75	
8	Phase In Discount	30%	0%	0%	0%	
9	Monthly Rate Per ERC	137.03	195.75	195.75	195.75	
10	Projected Revenues from Connected Customers	$	366,565	$	523,665	$	523,665	$	523,665	

Customer Current Billed Flat Monthly Rate Per ERC or Per Irrigated Acre at a 5% Discounted Rate:	
11	Existing Connected Acres	275	275	275	275	
12	Anticipated Growth	-	-	-	-	
13	Projected Average Connected Acres	275	275	275	275	
14	Monthly Rate Per ERC	186.96	186.96	186.96	186.96	
15	Projected Revenues from Connected Customers	$	616,358	$	616,358	$	616,358	$	616,358	

All Other Customer Current Billed Flat Monthly Rate Per ERC or Per Irrigated Acre at a Non-Discounted Rate:	
16	Existing Connected Acres		122	133	145	156	
17	Anticipated Growth		11.50	11.50	11.50	11.50	
18	Projected Average Connected Acres		133	145	156	168	
19	Monthly Rate Per ERC		195.75	195.75	195.75	195.75	
20	Projected Revenues from Connected Customers	$	313,313	$	340,327	$	367,340	$	394,354	

21	Total Rate Revenue	
 $	1,070,897   $	
1,296,237	
$	1,480,349	
$	1,507,363	
$	1,534,376	

Table 2

Tradition Community Development District No. 1 Irrigation System Rate Study

Projection of Operating Expenses - Irrigation System

Page 1 of 1

Line		Escalation		2019		Adjusted		2020		Adjusted	 Fiscal Year Ending September 30th, No.	Description	 Reference	Budget [1]	Adjustments		2019	Budget [1]	Adjustments		2020	2021	2022	2023

1	Operating Expenses
Field operations	
Labor	
$	225,410	
$  (169,058) $	
56,352	
$	-	
$	-	
$	-	
$	-	
$	-	
$	-	
2	Trustee Services		Constant	5,000	-	5,000	5,000	-	5,000	5,000	5,000	5,000	
3	Management		Inflation	75,000	157,806	232,806	285,408	-	285,408	292,829	300,149	307,653	
4	Engineering		Labor	9,580	-	9,580	25,000	-	25,000	25,750	26,523	27,318	
5	Professional Services		Contractual	5,000	24,000	29,000	23,000	-	23,000	23,690	24,401	25,133	
6	Development Coordinator		Labor	-	73,125	73,125	117,000	-	117,000	120,510	124,125	127,849	
7	City Franchise Fee	6.00%	Customer	68,475	(775)	67,700	68,475	9,299	77,774	91,683	93,304	94,925	
8	Travel and Per Diem		Inflation	387	-	387	387	-	387	397	407	417	
9	Telephone		Inflation	1,921	-	1,921	1,921	-	1,921	1,971	2,020	2,071	
10	Postage and Shipping		Inflation	253	-	253	253	-	253	260	266	273	
11	Bank Fees		Inflation	1,216	-	1,216	1,216	-	1,216	1,248	1,279	1,311	
12	Bad Debt Expense [2]	0.60%	Calculation	4,833	1,592	6,425	4,833	2,944	7,777	9,168	9,330	9,493	
13	Office Supplies		Inflation	250	-	250	250	-	250	257	263	269	
14	Field Supplies (Other)		Inflation	2,000	-	2,000	2,000	-	2,000	2,052	2,103	2,156	
15	Dues, Licenses, and Fees		Inflation	2,237	-	2,237	2,237	-	2,237	2,295	2,353	2,411	
16	Vehicle, Gas, & Repair		Fuel	1,000	-	1,000	1,000	1,000	2,000	2,100	2,205	2,315	
17	Electric		Electricity	101,023	-	101,023	101,023	-	101,023	107,246	113,745	120,536	
18	Water		Inflation	170	-	170	170	-	170	174	179	183	
19	Other Utilities		Inflation	1,542	-	1,542	1,542	-	1,542	1,582	1,622	1,662	
20	General Insurance		General-Ins	20,000	-	20,000	20,000	-	20,000	21,000	22,050	23,153	
21	General Repair & Maintenance		Repair	40,193	28,000	68,193	40,193	28,000	68,193	70,239	72,346	74,516	
22	Landscaping Maintenance & Material		Inflation	10,608	3,000	13,608	10,608	3,000	13,608	13,962	14,311	14,669	
23	HVAC		Inflation	4,305	-	4,305	4,305	-	4,305	4,417	4,527	4,641	
24	Permitting Expense Amortization [3]		Constant	-	-	-	-	10,000	10,000	10,000	10,000	10,000	
25	Contingency - Operating Expenses [4]	5.00%	Calculation	-	-	-	-	38,503	38,503	40,391	41,625	42,898	
26	Capital Projects Classified to Op Ex		Inflation	-	-	-	-	2,575	2,575	23,870	-	-	
27	Total Operating Expenses	$	580,403	$	117,690	$	698,093	$	715,821	$	95,322	$	811,143	$	872,091	$	874,133	$	900,851	

Footnotes:

Amounts shown derived from estimates prepared by the District.

Adjustment to recognize an allowance for bad debt expenses based current historical trends.

District incurred significant costs with initial permitting of the irrigation system. Annual expense allowance represents amortization expenses associated with the cost of ongoing permit costs.

Initial Permitting Cost

Amount

$	50,000

Average Service Life (years)	5
Amortization Expense Allowance - Permitting Cost	$	10,000
Adjustment to recognize contingency allowances to account for unexpected operating expenses or changes in operating revenues.

Page 1 of 1
Table 3

Tradition Community Development District No. 1 Irrigation System Rate Study

Projection of Operating Expenses - Irrigation System Escalation References

Line	Escalation		Fiscal Year Ending September 30th,	
 No.  	Escalation Factors	 	Reference	 	2020	2021	2022	2023	

1	Constant	Constant	1.0000	1.0000	1.0000	1.0000	
2	Eliminate	Eliminate	0.0000	0.0000	0.0000	0.0000	
3	Marginal	Marginal	1.0100	1.0100	1.0100	1.0100	
4	Inflation (CPI) [1]	Inflation	1.0240	1.0260	1.0250	1.0250	
5	Labor	Labor	1.0300	1.0300	1.0300	1.0300	
6	Flow Growth Plus Inflation	Flow	1.0566	1.0576	1.0556	1.0547	
7	Customer Growth Plus Inflation	Customer	1.0637	1.0642	1.0618	1.0605	
8	General Insurance	General-Ins	1.0500	1.0500	1.0500	1.0500	
9	Contractual	Contractual	1.0300	1.0300	1.0300	1.0300	
10	Repair (ENR Average)	Repair	1.0300	1.0300	1.0300	1.0300	
11	Chemicals	Chemicals	1.0626	1.0616	1.0606	1.0597	
12	Electricity	Electricity	1.0626	1.0616	1.0606	1.0597	
13	Fuel & Oil	Fuel	1.0500	1.0500	1.0500	1.0500	

Line	Escalation	Funding	Fiscal Year Ending September 30th,	Total
No.	Description	Reference	Source	2019	2020	2021	2022	2023	CIP	

CIP Escalation Factor Alternatives
General Project Escalators
1	No Assumed Escalation (0.0% per Year)	None	1.000	1.000	1.000	1.000	1.000	
2	Capital Outlay (3.5% per Year)	Outlay	1.000	1.030	1.061	1.093	1.126	
3	ENR Index Average (3.0% per Year)	ENR	1.000	1.030	1.061	1.093	1.126	
4	Marginal Increase (1.0% per Year)	Marginal	1.000	1.010	1.020	1.030	1.041	
5	High Increase (5.0% per Year)	High	1.000	1.050	1.103	1.158	1.216	

6	Intake System Repairs	
ENR	
W-R&R	
$	-	
$	-	
$	15,914	
$	-	
$	-	
$	15,914	
7	R and R Raw Water Pumping Station	ENR	W-R&R	-	25,750	-	-	-	25,750	
8	R and R Raw Water Pumping Station Valve	ENR	W-R&R	-	12,360	-	-	-	12,360	
9	Sand and Disk Filter R&R (Annual)	ENR	W-Op	5,000	-	-	-	-	5,000	
10	Sand and Disk Filter R&R (Annual)	ENR	W-R&R	-	5,150	5,305	5,464	5,628	21,546	
11	Hydropneumatic Tank (New)	ENR	W-R&R	-	-	-	54,636	-	54,636	
12	Jockey Pump	ENR	W-R&R	-	-	-	5,464	-	5,464	
13	Compressor (Backup)	ENR	W-R&R	-	3,605	-	-	-	3,605	
14	VS High Service Pumps (Backup)	ENR	W-R&R	-	15,450	-	-	-	15,450	
15	Acid Tank Removal	ENR	W-R&R	-	-	-	-	7,316	7,316	
16	Paint and refurbish Plant Bld.	ENR	Op Ex	-	-	15,914	-	-	15,914	
17	Remote Valving System	ENR	W-R&R	-	-	26,523	27,318	-	53,841	
18	Control Study	ENR	Op Ex	-	2,575	7,957	-	-	10,532	
19	Community 2,000 ft	ENR	W-Op	183,277	-	-	-	-	183,277	
20	Community 2,000 ft	ENR	ExistingBond	16,856	-	-	-	-	16,856	
21	Install 2 Community Meters (New)	ENR	W-Op	15,000	15,450	-	-	-	30,450	
22	Main Line 24" Valve Repair	ENR	W-Op	60,000	-	-	-	-	60,000	
23	Other Irrigation System Improvements	ENR	W-Rates	-	-	42,436	43,709	45,020	131,165	
24	Upgrades Remote Metering System	ENR	W-Op	4,000	-	-	-	-	4,000	
25	Upgrades Remote Metering System	ENR	W-R&R	-	4,120	4,244	4,371	4,502	17,237	
26	R&R Miscellaneous Project Allowance	ENR	W-R&R	35,000	-	-	-	-	35,000	
27	R&R Miscellaneous Project Allowance	ENR	W-R&R	-	36,050	37,132	38,245	39,393	150,820	
28	Contingency	ENR	W-Op	31,913	-	-	-	-	31,913	
29	Contingency	ENR	W-R&R	-	12,051	15,542	17,921	10,186	55,700	
30	Other Projects	ENR	W-R&R	-	-	-	-	-	-	
31	System Subtotal	$	351,046	$	132,561	$	170,964	$	197,128	$	112,044	$	963,744	

Line		Escalation	Funding			Fiscal Year Ending September 30th,		Total No.	Description	 Reference		Source	2019	2020	2021	2022	2023		CIP

Project Funding Sources Summary

32	Irrigation Rates	W-Rates	$	-	$	-	$	42,436	$	43,709	$	45,020	$	131,165	
33	Operating Fund	W-Op	299,191	15,450	-	-	-	314,641	
34	Renewal and Replacement Fund	W-R&R	35,000	114,536	104,658	153,419	67,024	474,637	
35	Connection Fees	Impact	-	-	-	-	-	-	
36	Grants	Grant	-	-	-	-	-	-	
37	Existing Bond Proceeds	ExistingBond	16,856	-	-	-	-	16,856	
38	Capital Projects Classified to Op Ex	Op Ex	-	2,575	23,870	-	-	26,445	
39	Subtotal Funding Sources Including OP Ex		$	351,046	$	132,561	$	170,964	$	197,128	$	112,044	$	963,744	
								
40	Subtotal Funding Sources Excluding OP Ex		$	351,046	$	129,986	$	147,094	$	197,128	$	112,044	$	937,298	

Table 5
Tradition Community Development District No. 1 Irrigation System Rate Study
Summary of Revenue Requirements - Irrigation System

Line	Adjusted

Projected Fiscal Year Ending September 30th,

Page 1 of 1

No.	Description	2019	2020	2021	2022	2023

	Operating Expenses		
1	Field operations		$	56,352		$	-		$	-		$	-		$	-	
2	Trustee Services		5,000		5,000		5,000		5,000		5,000	
3	Management		232,806		285,408		292,829		300,149		307,653	
4	Engineering		9,580		25,000		25,750		26,523		27,318	
5	Professional Services		29,000		23,000		23,690		24,401		25,133	
6	Development Coordinator		73,125		117,000		120,510		124,125		127,849	
7	City Franchise Fee		67,700		77,774		91,683		93,304		94,925	
8	Travel and Per Diem		387		387		397		407		417	
9	Telephone		1,921		1,921		1,971		2,020		2,071	
10	Postage and Shipping		253		253		260		266		273	
11	Bank Fees		1,216		1,216		1,248		1,279		1,311	
12	Bad Debt Expense [2]		6,425		7,777		9,168		9,330		9,493	
13	Office Supplies		250		250		257		263		269	
14	Field Supplies (Other)		2,000		2,000		2,052		2,103		2,156	
15	Dues, Licenses, and Fees		2,237		2,237		2,295		2,353		2,411	
16	Vehicle, Gas, & Repair		1,000		2,000		2,100		2,205		2,315	
17	Electric		101,023		101,023		107,246		113,745		120,536	
18	Water		170		170		174		179		183	
19	Other Utilities		1,542		1,542		1,582		1,622		1,662	
20	General Insurance		20,000		20,000		21,000		22,050		23,153	
21	General Repair & Maintenance		68,193		68,193		70,239		72,346		74,516	
22	Landscaping Maintenance & Material		13,608		13,608		13,962		14,311		14,669	
23	HVAC		4,305		4,305		4,417		4,527		4,641	
24	Permitting Expense Allowanced [3]		-		10,000		10,000		10,000		10,000	
25	Contingency - Operating Expenses [4]		-		38,503		40,391		41,625		42,898	
26	Capital Projects Classified to Op Ex		-		2,575		23,870		-		-	
27	Total Operating Expenses		$	698,093		$	811,143		$	872,091		$	874,133		$	900,851	
Other Recognized Revenue Requirements
28	Debt Service		
$	371,025		
$	366,825		
$	367,525		
$	368,025		
$	368,325	
29	Renewal and Replacements and Other Capital Improvements [5]	15.00%	53,427		113,483		195,410		230,183		234,235	
30	Other Irrigation System Improvments Funded From Rates		-		-		42,436		43,709		45,020	
31	Transfer to Rate Stabilization Fund		-		-		-		-		-	
32	Required Deposits to the Reserve Fund		-		-		-		-		-	
33	Principal and Interest on Subordinate Debt		-		-		-		-		-	
34	Transfer to Operating Reserves		-		-		40,000		30,000		30,000	
35	Total Other Recognized Revenue Requirements		$	424,452		$	480,308		$	645,371		$	671,918		$	677,581	
36	Total Revenue Requirements		$  1,122,545		$  1,291,451		$  1,517,462		$  1,546,051		$  1,578,431	
Less Other Revenues
37	Guaranteed Revenues		
$	57,434		
$	-		
$	-		
$	-		
$	-	
38	Other Miscellaneous Revenues		6,500		6,500		6,500		6,500		6,500	
39	Interest Income		10,994		9,076		10,294		12,493		15,174	
40	Transfer from Rate Stabilization Fund		-		-		-		-		-	
41	Total Other Revenues		$	74,928		$	15,576		$	16,794		$	18,993		$	21,674	
42	Total Revenue Requirements Less Other Revenues		$  1,047,617		$  1,275,875		$  1,500,669		$  1,527,058		$  1,556,758	

Revenue Surplus / (Deficiency) Under Existing Rates (Converted to Flat Monthly Rate Per Irrigated Acre):	
43	Existing Rate Revenues - Customers Billed 5% Discounted Rate	$	616,358		$	616,358		$	616,358		$	616,358		$	616,358	
44	Existing Rate Revenues - Customers Billed Non-Discounted Rate	454,539		679,879		863,992		891,005		918,019	
45	Total Existing Rate Revenues	$  1,070,897		$  1,296,237		$  1,480,349		$  1,507,363		$  1,534,376	
46	Total Revenue Requirements	1,047,617		1,275,875		1,500,669		1,527,058		1,556,758	
47	Revenue Surplus / (Deficiency) Amount	$	23,280		$	20,362		$	(20,319)		$	(19,695)		$	(22,381)	
48	Revenue Surplus / (Deficiency) Percent	2.17%		1.57%		-1.37%		-1.31%		-1.46%	
Proposed Rate Adjustments:											
49	Total Projected Rate Adjustment - Customers Billed 5% Discounted Rate	0.00%		0.00%		6.00%		0.00%		0.00%	
Total Projected Rate Adjustment - Customers Billed Non-Discounted Rate	0.00%		0.00%		1.24%		0.00%		0.00%	
Effective Month	October		November		October		October		October	
50	% of Current Effective Year	100.0%		91.7%		100.0%		100.0%		100.0%	
51	Current Year Rate Adjustments	$	-		$	-		$	47,707		$	-		$	-	
52	Cumulative Prior Year Rate Adjustments	-	-	-	47,707	47,707	
53	Adjusted Water Rate Revenue	$  1,070,897		$  1,296,237		$  1,528,056		$  1,555,070		$  1,582,083	
54	Revenue Surplus Deficiency After Adjustments	$	23,280		$	20,362		$	27,388		$	28,012		$	25,325	
55	As Percent of Existing Revenue	2.17%		1.57%		1.79%		1.80%		1.60%	

Footnotes:
Amounts shown derived from estimates prepared by the District.
Adjustment to recognize an allowance for bad debt expenses based current historical trends.
District incurred significant costs with initial permitting of the irrigation system. Annual expense allowance represents amortization expenses associated with the cost of the intital permit.

Initial Permitting Cost

Amount

$	50,000

Average Service Life (years)	5
Amortization Expense Allowance - Permitting Cost	$	10,000
Adjustment to recognize contingency allowances to account for unexpected operating expenses or changes in operating revenues.
District will be required to fund other renewal and replacements and capital improvement projects annually from rates.

Projection of Debt Service Coverage Compliance
Line	Projected Fiscal Year Ending September 30,
No.	Description	2019	2020	2021	2022	2023
Gross Revenues:

	Rate Revenues		
1	Revenues at Existing Rates	$  1,070,897	$  1,296,237	$  1,480,349	$  1,507,363	$  1,534,376	
2	Guaranteed Revenues	57,434	-	-	-	-	
3	Revenues From Rate Adjustments	-	-	47,707	47,707	47,707	
4	Transfer (To) / From Rate Stabilization Fund	-	-	-	-	-	
5	Subtotal Rate Revenues	$  1,128,331	$  1,296,237	$  1,528,056	$  1,555,070	$  1,582,083	
Revenues From Other Sources:
6	Other Operating Revenues	
$	6,500	
$	6,500	
$	6,500	
$	6,500	
$	6,500	
7	Interest Income	10,994	9,076	10,294	12,493	15,174	
8	Subtotal Revenues from Other Sources	$	17,494	$	15,576	$	16,794	$	18,993	$	21,674	
9	Total Gross Revenues	$  1,145,825	$  1,311,813	$  1,544,850	$  1,574,063	$  1,603,757	
Cost of Operation and Maintenance:						
10  Total Costs of Operation and Maintenance	$	698,093	$	811,143	$	872,091	$	874,133	$	900,851	
11  Net Revenues	$	447,731	$	500,670	$	672,759	$	699,929	$	702,906	
Annual Debt Service Requirements:
Senior Lien Bond Service Requirements
12	Irrigation System Revenue Bonds, Series 2017	

$	371,025	

$	366,825	

$	367,525	

$	368,025	

$	368,325	
13  Total Annual Debt Service Requirements	$	371,025	$	366,825	$	367,525	$	368,025	$	368,325	
All-In-Debt Service Coverage:
14	Net Revenues	
$	447,731	
$	500,670	
$	672,759	
$	699,929	
$	702,906	
15	Total Debt Service Payments	371,025	366,825	367,525	368,025	368,325	
16	Calculated Ratio	120.67%	136.49%	183.05%	190.19%	190.84%	
17	Target Coverage Ratio - 115.00%	115.00%	115.00%	115.00%	115.00%	115.00%	

18	
Less Other Required Transfers Required Deposit to Reserve Fund	

$	-	

$	-	

$	

-	

$	

-	

$	

-	
19	Less P&I From Subordinate Debt	-	-		-		-		-	
20	Net Amount Available for Other Utility System Purposes	$	76,706	$	133,845	$	305,234	$	331,904	$	334,581	

Investment Reference
Line	Cash	Interest		Fiscal Year Ending September 30th,		
No.	Description	Balance	Income		2019	2020	2021	2022	2023	

Year End Cash Balances Roll-Up:
1	Operating Fund	

(U)	

(U)		

$	121,996	$	126,908	$	244,296	$	302,308	

$	307,633	
2	Customer Deposits	(R)	(R)		96	98	99	101	102	
3	Connection Fee Fund	(R)	(R)		-	-	-	-	-	
4	Renewal and Replacement Fund	(U)	(U)		18,427	17,374	58,126	134,891	352,102	
5	Rate Stabilization Fund	(U)	(U)		-	-	-	-	-	
6	Existing Construction Fund	(R)	(R)		-	-	-	-	-	
7	Debt Service Reserve Fund	(R)	(U)		371,025	371,025	371,025	371,025	371,025	
8	Proposed Bonds Construction Fund	(R)	(R)		-	-	-	-	-	
9 Total Ending Cash Balances		$	511,544	$	515,405	$	673,547	$	808,324	$  1,030,863	
10 Unrestricted Reserves (Operating & R&R)		$	140,423	$	144,282	$	302,422	$	437,199	$	659,736	
Operating Fund
11	Beginning Balance		
$	397,907	
$	121,996	
$	126,908	
$	244,296	
$	302,308	
12	Transfers In - Revenue Requirements		1,070,897	1,296,237	1,528,056	1,555,070	1,582,083	
13	Transfers In - Rate Stabilization Fund (As Cash Transfer Not Revenue)		-	-	-	-	-	
14	Transfers In - R&R Fund		-	-	50,000	-	-	
15	Transfers In - Other		-	-	-	-	-	
16	Transfers In - Operating Transfer		-	-	40,000	30,000	30,000	
17	Transfers In - Debt Service Reserve		-	-	-	-	-	
18	Transfers Out - Revenue Requirements		1,047,617	1,275,875	1,500,669	1,527,058	1,556,758	
19	Transfers Out - Capital Improvements		299,191	15,450	-	-	-	
20	Transfers Out - R&R Fund		-	-	-	-	50,000	
21	Transfers Out - Partial Year Adjustment		-	-	-	-	-	
22	Interest Rate		1.50%	1.50%	1.50%	1.50%	1.50%	
Interest Income
Recognition of Interest Income
in Revenue Requirements	(U)	$	3,899

3,899	$	1,867

1,867	$	2,784

2,784	$	4,100

4,100	$	4,575

4,575	
25	Ending Balance	(U)		121,996	126,908	244,296	302,308	307,633	
26 Requirement - Days of Operating Expenses		90	90	90	90	90	
27 Requirement Minimum Available Cash		172,133	200,008	215,036	215,540	222,128	
27 Requirement Minimum Cash Balance Met - Yes or No		No	No	Yes	Yes	Yes	
Customer Deposits
28	Beginning Balance		
$	95	
$	96	
$	98	
$	99	
$	101	
29	Transfers In		-	-	-	-	-	
30	Transfers Out		-	-	-	-	-	
31	Interest Rate		1.50%	1.50%	1.50%	1.50%	1.50%	
32	Interest Income
Recognition of Interest Income	(R)	1	1	1	1	2	
33	in Revenue Requirements		-	-	-	-	-	
34	Ending Balance	(R)	96	98	99	101	102	

Connection Fee Fund
35	Beginning Balance	

$	-	

$	-	

$	-	

$	-	

$	-	
36	Transfers In		-	-	-	-	-	
37	Transfers Out - CIP		-	-	-	-	-	
38	Transfers Out - R&R Fund		-	-	-	-	-	
39	Transfers Out - Operating Fund		-	-	-	-	-	
40	Transfers Out - Debt Payment		-	-	-	-	-	
41	Interest Rate		0.25%	0.25%	0.25%	0.25%	0.25%	
42	Interest Income
Recognition of Interest Income	(R)	-	-	-	-	-	
43	in Revenue Requirements		-	-	-	-	-	
44	Ending Balance	(R)	-	-	-	-	-	

Investment Reference
Line	Cash	Interest	Fiscal Year Ending September 30th,
No.	Description	Balance	Income	2019	2020	2021	2022	2023

Renewal and Replacement Fund
45	Beginning Balance	
$	-	
$	18,427	
$	17,374	
$	58,126	
$	134,891	
46	Transfers In - Annual Operations			53,427	113,483	195,410	230,183	234,235	
47	Transfers In - Impact Fee Funds			-	-	-	-	-	
48	Transfers In - Fund 401			-	-	-	-	50,000	
49	Transfers Out - CIP			35,000	114,536	104,658	153,419	67,024	
50	Transfers Out - Fund 401			-	-	50,000	-	-	
51	Interest Rate			1.50%	1.50%	1.50%	1.50%	1.50%	
Interest Income
Recognition of Interest Income
in Revenue Requirements		(U)	138

138	269

269	566

566	1,448

1,448	3,652

3,652	
54	Ending Balance	(U)		18,427	17,374	58,126	134,891	352,102	

55	
Rate Stabilization Fund
Beginning Balance	

$	

-	

$	

-	

$	

-	

$	

-	

$	

-	
56	Transfers In		-	-	-	-	-	
57	Transfers Out - As Cash		-	-	-	-	-	
58	Transfers Out - As Revenue		-	-	-	-	-	
59	Interest Rate		1.50%	1.50%	1.50%	1.50%	1.50%	
60	Interest Income
Recognition of Interest Income	(U)	$	-	$	-	$	-	$	-	$	-	

in Revenue Requirements
Ending Balance	
(U)	-	-	-	-	-
-	-	-	-	-	

Existing Construction Fund
63	Beginning Balance	

$	16,856	

$	-	

$	-	

$	-	

$	-	
64	Transfers In		-	-	-	-	-	
65	Transfers Out - CIP		16,856	-	-	-	-	
66	Interest Rate		0.00%	0.00%	0.00%	0.00%	0.00%	
67	Interest Income
Recognition of Interest Income	(R)	-	-	-	-	-	
68	in Revenue Requirements		-	-	-	-	-	
69	Ending Balance	(R)	-	-	-	-	-	
	
Debt Service Reserve Fund								
70	Beginning Balance			$	371,025	$	371,025	$	371,025	$	371,025	$	371,025	
71	Transfers In - Additional Senior Lien Debt 1			-	-	-	-	-	
72	Transfers Out - Other			-	-	-	-	-	
73	Transfers Out - Other			-	-	-	-	-	
74	Interest Rate			1.50%	1.50%	1.50%	1.50%	1.50%	
Interest Income
Recognition of Interest Income
in Revenue Requirements		(U)	5,565

5,565	5,565

5,565	5,565

5,565	5,565

5,565	5,565

5,565	
77	Ending Balance	(R)		371,025	371,025	371,025	371,025	371,025	

Investment Reference
Line	Cash	Interest	Fiscal Year Ending September 30th,
No.	Description	Balance	Income	2019	2020	2021	2022	2023

Proposed Bonds Construction Fund
78	Beginning Balance	
$	-	
$	-	
$	-	
$	-	
$	-	
79	Transfers In		-	-	-	-	-	
80	Transfers Out - CIP		-	-	-	-	-	
81	Interest Rate		0.00%	0.00%	0.00%	0.00%	0.00%	
82	Interest Income
Recognition of Interest Income	(R)	-	-	-	-	-	
83	in Revenue Requirements		-	-	-	-	-	
84	Ending Balance	(R)	-	-	-	-	-	
	
Debt Service Sinking Fund								
85	Annual Debt Service Payment			$	371,025	$	366,825	$	367,525	$	368,025	$	368,325	
86	Average Balance	(R)		92,756	91,706	91,881	92,006	92,081	
87	Interest Rate			1.50%	1.50%	1.50%	1.50%	1.50%	
Interest Income
Recognition of Interest Income
in Revenue Requirements		(U)	1,391

1,391	1,376

1,376	1,378

1,378	1,380

1,380	1,381

1,381	
	
Interest Income:								
90	Total Unrestricted Interest Income	$	10,994	$	9,076	$	10,294	$	12,493	$	15,174	
91	Restricted Interest Income	1	1	1	1	2	
92 Total Interest Income	$	10,996	$	9,078	$	10,295	$	12,494	$	15,175	

Table 8

Tradition Community Development District No. 1 Irrigation System Rate Study

Summary of Rate Design - Tier 1 Rates

Line	Revenue Requirement	Assignment Basis	Amount Assigned To:
No.	Description	As Adjusted	Base	Gallonage	Base		Gallonage		

1	
Operating Expenses
Field operations	

$	0	

100%	

0%	

$	0	

$		

0	
2	Trustee Services	5,000	100%	0%	5,000			-	
3	Management	292,829	100%	0%	292,829			-	
4	Engineering	25,750	100%	0%	25,750			-	
5	Professional Services	23,690	100%	0%	23,690			-	
6	Development Coordinator	120,510	100%	0%	120,510			-	
7	City Franchise Fee	91,683	100%	0%	91,683			-	
8	Travel and Per Diem	397	100%	0%	397			-	
9	Telephone	1,971	100%	0%	1,971			-	
10	Postage and Shipping	260	100%	0%	260			-	
11	Bank Fees	1,248	100%	0%	1,248			-	
12	Bad Debt Expense [2]	9,168	100%	0%	9,168			-	
13	Office Supplies	257	100%	0%	257			-	
14	Field Supplies (Other)	2,052	100%	0%	2,052			-	
15	Dues, Licenses, and Fees	2,295	100%	0%	2,295			-	
16	Vehicle, Gas, & Repair	2,100	100%	0%	2,100			-	
17	Electric	107,246	100%	0%	107,246			-	
18	Water	174	100%	0%	174			-	
19	Other Utilities	1,582	100%	0%	1,582			-	
20	General Insurance	21,000	100%	0%	21,000			-	
21	General Repair & Maintenance	70,239	100%	0%	70,239			-	
22	Landscaping Maintenance & Material	13,962	100%	0%	13,962			-	
23	HVAC	4,417	100%	0%	4,417			-	
24	Permitting Expense Allowanced [3]	10,000	100%	0%	10,000			-	
25	Contingency - Operating Expenses [4]	40,391	100%	0%	40,391			-	
26	Capital Projects Classified to Op Ex	23,870	100%	0%	23,870			-	
27	Total Operating Expenses	$	872,091			$	872,091	$		-	

28	Other Required Transfers Debt Service	
367,525	
100%	
0%	
367,525			
-	
29	Renewal and Replacements and Other Capital Improvemen	195,410	100%	0%	195,410			-	
30	Other Irrigation System Improvments Funded From Rates	42,436	100%	0%	42,436			-	
30	Transfer to Operating Reserves	40,000	100%	0%	40,000			-	
30	Total Operating Required Transfers	$	645,371			$	645,371	$		-	
31	Total Revenue Requirements	$	1,517,462			$	1,517,462	$		-	
	
Less Other Revenues								
32	Guaranteed Revenues [3]	-	100%	0%	-	-	
33	Other Miscellaneous Revenues	6,500	100%	0%	6,500	-	
34	Interst Income	10,294	100%	0%	10,294	-	
35  Total Other Revenues	$	16,794			$	16,794	$	-	
36 Revenue Surplus/(Deficiency) After Adjustments		27,388	100%	0%		27,388		-	
37	Net Revenue Requirement	$	1,528,057			$	1,528,057	$	-	

38  Number of Total Projected Acres						
643			
39  Calculated Monthly Charge Per Acre					$	198.18			

Table 8A

Tradition Community Development District No. 1 Irrigation System Rate Study

Line		
Fiscal Year 2020	Percentage of Cost Related To
Alternative Tiers	
Amount Assigned To:	
No.	Description	Operating Costs	Tier 2	Tier 3	Tier 2	Tier 3	

Summary of Rate Design - Tier 2 and Tier 3 Alternative Rates

Operating Expenses
1	Field operations		

$	

0	

0%	

0%	

$	

0	

$	

0	
2	Trustee Services			5,000	0%	0%		-		-	
3	Management			285,408	75%	25%		214,056		71,352	
4	Engineering			25,000	100%	0%		25,000		-	
5	Professional Services			23,000	100%	100%		23,000		23,000	
6	Development Coordinator			117,000	100%	100%		117,000		117,000	
7	City Franchise Fee			77,774	100%	100%		77,774		77,774	
8	Travel and Per Diem			387	100%	100%		387		387	
9	Telephone			1,921	100%	100%		1,921		1,921	
10	Postage and Shipping			253	100%	100%		253		253	
11	Bank Fees			1,216	100%	100%		1,216		1,216	
12	Bad Debt Expense			7,777	100%	100%		7,777		7,777	
13	Office Supplies			250	100%	100%		250		250	
14	Field Supplies (Other)			2,000	100%	100%		2,000		2,000	
15	Dues, Licenses, and Fees			2,237	100%	100%		2,237		2,237	
16	Vehicle, Gas, & Repair			2,000	100%	100%		2,000		2,000	
17	Electric			101,023	100%	0%		101,023		-	
18	Water			170	0%	0%		-		-	
19	Other Utilities			1,542	0%	0%		-		-	
20	General Insurance			20,000	100%	100%		20,000		20,000	
21	General Repair & Maintenance			68,193	50%	0%		34,097		-	
22	Landscaping Maintenance & Material			13,608	100%	0%		13,608		-	
23	HVAC			4,305	0%	0%		-		-	
24	Permitting Expense Allowanced			10,000	100%	100%		10,000		10,000	
25	Contingency - Operating Expenses	5%		38,503	100%	100%		32,680		16,858	
26	Capital Projects Classified to Op Ex			2,575	0%	0%		-		-	
27  Total Operating Expenses	$	811,143		$	686,279	$	354,026	
28  Number of Total Projected Acres			631.00	631.00	
29  Calculated Monthly Charge Per Acre			$	90.63	$	46.75	

Page 1 of 1

Table 9

Tradition Community Development District No. 1 Irrigation System Rate Study

Summary of Existing and Proposed Rates - Irrigation System

Line	Existing	
 No.  	Description	 	Rates	   Fiscal Year 2020	   Fiscal Year 2021 	

1	Guaranteed Revenue Charge - Per ERC	

$	3.23	

N/A	

N/A	
2	Guaranteed Revenue Charge - Per Acre	$	28.10	N/A	N/A	
3	Monthly Base Charge (per irrigated home per ERC)	$	22.50	N/A	N/A	

Customers Currently Billed on Metered Consumption and Bedford Park (Phased-In Rate):	
4	Monthly Base Charge (per irrigated acre)	$	195.75	$	137.03	$	198.18	

Customer Current Billed Flat Monthly Rate Per ERC or Per Irrigated Acre at a 5% Discounted Rate:	
5	Monthly Base Charge (per irrigated acre)	$	186.96	$	186.96	$	198.18	

All Other Customer Current Billed Flat Monthly Rate Per ERC or Per Irrigated Acre at a Non-Discounted Rate:	
6	Monthly Base Charge (per irrigated acre)	$	195.75	$	195.75	$	198.18	
	Monthly Excess Usage (Volume Charge (per 1,000 gallons):				
7	Less than 90,000 gallons per irrigated acre	$	1.50	N/A	N/A	
7	Above 90,000 gallons but Less than 140,000	$	2.18	$	2.18	$	2.21	
8	Above 140,000 Gallons per Month	$	3.27	$	3.27	$	3.31	

	Page 1 of 1	
	
Table 10			
	Tradition Community Development District No. 1			
	Irrigation System Rate Study			
	Summary of Impact to Customer Existing and Proposed Rates			
	Monthly	Monthly			
Line	Revenue	Revenue	Amount	%	
No.	Description	Existing Rates  Proposed Rate	Difference	Difference	

Customers Currently Billed on Metered Consumption and Bedord Park:	
1	Bedford Park ‐ Irrigation Svcs	$	2,284	$	8,866	$	6,582	288.17%	
2	Heritage Oaks @ Trad HOA, Inc. ‐ Irrigation Svcs: [1]	2,602	11,868	9,267	356.20%	
3	Lakes @ Tradition ‐ Irrigation Svcs: Consumption	7,572	17,642	10,070	132.99%	
4	Estates at Tradition ‐ Irrigation Svcs: Consumption	2,739	2,333	(407)	-14.84%	
5	The Landings	1,205	2,210	1,005	83.43%	
6	Landings Longhorn	75	113	38	49.90%	
7	Landings McDonalds	84	67	(17)	-19.73%	
8	Landings Olive Garden	128	113	(15)	-11.38%	
9	Landings PNC	90	91	1	1.30%	
10	Promenade @ Tradition ‐ Irrigation Svcs: Consumption	-	468	468	0.00%	
11	Target Corporation, T2248 ‐ Irrigation Svcs:	234	410	176	75.32%	

Customer Current Billed Flat Monthly Rate Per ERC or Per Irrigated Acre at a 5% Discounted Rate:	
12	Town Park (Master Assoc) ‐ Irrigation Svcs:	19,978	21,291	1,313	6.00%	
13	Victoria Park (First) ‐ Irrigation Svcs: Consumption	4,896	5,218	322	6.00%	
14	Vitalia at Tradition ‐ Irrigation Svcs: Consumption	26,102	27,817	1,715	6.00%	
15	Westcliffe	113	120	7	6.00%	

All Other Customer Current Billed Flat Monthly Rate Per ERC or Per Irrigated Acre at a Non-Discounted Rate:	
16	Aycock	202	204	3	1.24%		
17	Brennity at Tradition ‐ Irrigation Svcs: Consumption	3,015	3,052	37	1.24%		
18	Cellular Sales of Northern Florida, LLC	85	86	1	1.24%		
19	Land Owner CF LLC	-	-	-	0.00%		
20	Christ Fellowship Church, Inc. ‐ Irrigation Svcs:	1,627	1,647	20	1.24%		
21	Chesterbrook Academy #241 ‐ Irrigation Svcs:	133	134	2	1.24%		
22	Christ Family	147	149	2	1.25%		
23	City of Port St. Lucie ‐ Irrigation Svcs: Consumption	317	321	4	1.24%		
24	Culvers	72	73	1	1.24%		
25	Fastdev	-	-	-	0.00%		
26	SG Mini Golf	-	-	-	0.00%		
27	Heartland	-	-	-	0.00%		
28	Hilton ‐ Homewood Suites ‐ Irrigation Svcs: Consumption	343	347	4	1.24%		
29	Innovation Plaza ‐ Northern Lights	118	119	1	1.24%		
30	Innovo	238	241	3	1.24%		
31	Pandexp	57	57	1	1.24%		
32	Panera	96	97	1	1.24%		
33	Pegasus	280	283	3	1.24%		
34	Rcs@t	760	769	9	1.24%		
35	Recovery	74	75	1	1.24%		
36	SFO	176	178	2	1.24%		
37	Slcfd	221	224	3	1.24%		
38	Suntrust	90	91	1	1.23%		
39	Tradition Medical Center ‐ Irrigation Svcs: Consumption	910	922	11	1.24%		
40	Tradition CDD # 1 ‐ Irrigation Svcs: Consumption	12,088	12,238	150	1.24%		
41	Trad Health, LLC ‐ Irrigation Svcs: Consumption	64	65	1	1.23%		
42	Tradition HOA ‐ Irrigation Svcs: Consumption	1,728	1,750	21	1.24%		
43	Tradition POA ‐ Irrigation Svcs: Consumption	227	230	3	1.24%		
44	Treasure	6	7	0	1.24%		
45	Vaccine and Gene Therapy Inst ‐ Irrigation Svcs:	438	444	5	1.24%		
46	Village Center	219	222	3	1.24%		
47	Wawa	95	96	1	1.25%		
48	Wells	32	33	0	1.24%		
49							

50	
Total Irrigation Monthly Revenues	
$	91,960	
$	122,781	
$	30,821			

[1] Heritage Oaks irrigation meter has been malfunctioning, therefore has not received a bill based on actual consmption. The meter has been replaced as of September 2019. The revenue estimate shown above is based on actual Fiscal Year 2016 six months a consumption data.

Comparison of Typical Monthly Residential Bills For Non-Potable Water Irrigation Service [1]

Residential Service for a 5/8" or 3/4" Meter
Line	5,000	7,000	10,000	15,000	25,000	35,000	
No.		Description	  Gallons	 Gallons	 Gallons	 Gallons	 Gallons	 Gallons 	

1	Tradition Community Development District Irrigation System
Existing Rates:
Flat Monthly Charge Per Unit	$22.50	

$22.50	

$22.50	

$22.50	

$22.50	

$22.50	
2	Usage Charge Per 1,000 Gallons	7.50	10.50	15.00	22.50	37.50	52.50	

3	Proposed Rates:
Base Charge Only Per Irrigated Acre – ($198.18 / 8.7 = $22.78)	22.78	

22.78	

22.78	

22.78	

22.78	

22.78	
	Other Florida Utilities:							
4	Bonita Bay ( Resource Conservation Systems )	$15.82	$18.64	$22.87	$29.92	$44.02	$58.12	
5	Gate Way Service District (Irrigation Only)	12.41	16.05	21.51	30.61	48.81	80.61	
6	St Lucie West Service District (Irrigation Only)	18.45	18.45	18.45	18.45	18.45	18.45	
7	St Lucie County S Hutchinson Island (Irrigation Only)	17.60	23.68	32.80	48.00	78.40	108.80	
8	Central Sumter Utility Company (Irrigation)	17.60	21.64	33.13	53.14	100.04	146.94	
9	North Sumter County Utility (Irrigation)	14.75	18.49	27.85	44.67	88.07	131.47	
10	Other Florida Utilities' Average	$16.11	$19.49	$26.10	$37.47	$62.97	$90.73	

[1]	Unless otherwise noted, amounts shown reflect residential rates in effect as of July 2019 and are exclusive of taxes or franchise fees, if any, and reflect rates charged for inside the city service. All rates are as reported by the respective utility. This comparison is intended to show comparable charges for similar service for comparison purposes only and is not intended to be a complete listing of all rates and charges offered by each listed utility.

Comparison of Typical Monthly Residential Bills For Potable Water Irrigation Service [1]

Residential Service for a 5/8" or 3/4" Meter

Line	5,000	7,000	10,000	15,000	25,000	35,000
No.		Description	  Gallons   Gallons   Gallons   Gallons   Gallons   Gallons 

Tradition Community Development District Irrigation System
Existing Rates:

1	Flat Monthly Charge Per Unit	$22.50	$22.50	$22.50	$22.50	$22.50	$22.50	
2	Usage Charge Per 1,000 Gallons	7.50	10.50	15.00	22.50	37.50	52.50	
Proposed Rates:
3	Base Charge Only Per Irrigated Acre – ($198.18 / 8.7 = $22.78)	

22.78	

22.78	

22.78	

22.78	

22.78	

22.78	
Other Florida Utilities:								
4	Brevard County [2]	$7.72	$15.44	$30.50	$58.50	$139.92	$249.32	
5	City of Port St. Lucie [2]	17.30	25.58	38.00	60.68	108.68	156.68	
6	City of Stuart	32.80	41.80	55.30	79.16	130.96	182.76	
7	City of Vero Beach	27.50	33.06	41.40	69.20	124.80	194.30	
8	City of West Melbourne [2]	24.75	34.95	51.15	79.55	137.05	194.55	
9	Fort Pierce Utilities Authority	25.73	31.51	40.18	58.18	119.28	180.38	
10	Indian River County [2]	12.73	17.57	29.12	56.07	133.07	210.07	
11	Martin County	32.35	38.01	46.50	64.70	101.10	145.50	
12	Okeechobee Utility Authority	48.55	60.87	79.35	110.15	171.75	233.35	
13	Seacoast Utility Authority	21.67	26.00	36.35	53.60	88.10	122.60	
14	South Martin Regional Utilities	36.18	43.06	53.38	70.58	104.98	139.38	
15	St. Lucie West Service District [3]	18.25	18.25	18.25	18.25	18.25	18.25	
16	St. Lucie County	72.03	88.19	112.43	152.83	247.13	341.43	
17	Other Florida Utilities' Average	$29.04	$36.48	$48.61	$71.65	$125.01	$182.20	

Unless otherwise noted, amounts shown reflect residential rates in effect as of July 2019 and are exclusive of taxes or franchise fees, if any, and reflect rates charged for inside the city service. All rates are as reported by the respective utility. This comparison is intended to show comparable charges for similar service for comparison purposes only and is not intended to be a complete listing of all rates and charges offered by each listed utility.

No adopted irrigation rate was identified. Amounts based upon the adopted water rates for residential service.

Based on monthly charge per residential single family per lot.

9:49 AM
03/28/23

706800 Wells Fargo	
Baron Shoppes Tradition, LLC	
Bedford Park	
Brennity at Tradition	
Cellular Sales of Northern Florida LLC	
Chesterbrook Academy	
Cleveland Clinic Florida	
Cleveland Clinic Martin Health -Tradition	
Del Webb at Tradition Homeowners Assoc	
Estates at Tradition	
Florida International University	
Grande Palms at Tradition I & II	
Grande Palms at Tradition III	
Heritage Oaks	
Heritage Oaks at Tradition HOA	
Heron Preserves	
Hilton - Homewood Suites, PSL	
Innovo Development Group, LLC	
Kite Realty Group	
Manderlie at Tradition	
Martin Health System	
Panaderias, LLC	
Panda Restaurant Group Inc	
Pegasus PSL, Ltd	
Promenade at Tradition Community Assoc	
PSL Hospitality, LLP	
RDP II LLC	
Recovery Sports Grill	
Renaissance CS at Tradition	
Seven Restaurants, LLC	
SG Mini Golf	
South Florida Orthopedic	
TH PSL Village Parkway LLC	
The Lakes at Tradition	
The Preserves Phase I & II	
Town Park Master Assoc., Inc.	
Tradition CDD #1	
Treasure Coast Physicians Properties, LLC	
Truist Bank	
Victoria Parc	
Victoria Parc 2	
Victoria Parc at Tradition HOA	
Wawa, Inc.	
Westcliffe Estates HOA	
TOTAL	

Tradition Irrigation
A/R Aging Summary
As of March 28, 2023

Current	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	

 	
1 - 30	
32.70	
380.50	
17,733.14	
3,051.97	
86.41	
134.37	
887.84	
64.80	
3,519.15	
11,526.14	
2,183.94	
879.92	
1,708.31	
0.00	
11,857.11	
1,184.18	
346.82	
188.27	
2,815.73	
5,938.66	
1,843.08	
97.11	
114.54	
566.80	
467.70	
253.87	
0.00	
75.31	
1,537.88	
178.36	
158.54	
178.36	
89.18	
17,057.35	
1,866.86	
26,506.58	
13,143.30	
6.54	
91.16	
0.00	
0.00	
12,624.06	
95.92	
240.20	
141,712.66	

	
31 - 60	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	

	
61 - 90	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
443.92	
64.80	
3,519.15	
5,763.07	
1,091.97	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
921.54	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
768.94	
89.18	
0.00	
0.00	
0.00	
0.00	
933.43	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
6,312.03	
0.00	
120.10	
20,028.13	

	
> 90	
0.00	
0.00	
0.00	
0.00	
0.00	
0.00	
4,883.12	
324.00	
10,557.45	
5,763.07	
8,735.76	
1,759.84	
0.00	
0.00	
0.00	
961.53	
0.00	
0.00	
0.00	
0.00	
6,450.78	
0.00	
0.00	
0.00	
0.00	
0.00	
88.09	
0.01	
3,844.70	
89.18	
0.00	
0.00	
0.00	
0.00	
933.43	
0.00	
0.00	
0.00	
0.00	
297.64	
184.10	
31,560.15	
94.74	
0.00	
76,527.59	

	
TOTAL	
32.70	
380.50	
17,733.14	
3,051.97	
86.41	
134.37	
6,214.88	
453.60	
17,595.75	
23,052.28	
12,011.67	
2,639.76	
1,708.31	
0.00	
11,857.11	
2,145.71	
346.82	
188.27	
2,815.73	
5,938.66	
9,215.40	
97.11	
114.54	
566.80	
467.70	
253.87	
88.09	
75.32	
6,151.52	
356.72	
158.54	
178.36	
89.18	
17,057.35	
3,733.72	
26,506.58	
13,143.30	
6.54	
91.16	
297.64	
184.10	
50,496.24	
190.66	
360.30	
238,268.38	

54

TRADITION COMMUNITY DEVELOPMENT DISTRICTS 1-10

Financial Report For February 2023

TRADITION COMMUNITY DEVELOPMENT DISTRICTS #1-10
MONTHLY FINANCIAL REPORT TABLE OF CONTENTS

Tradition CDD #1-10 RECAP.	Page 3-5
Tradition CDD #1…	Page 6-8
Tradition CDD #2…	Page 9-10
Tradition CDD #3…	Page 11-12
Tradition CDD #4…	Page 13-14
Tradition CDD #5…	Page 15-16
Tradition CDD #6…	Page 17-18
Tradition CDD #7…	Page 19-20
Tradition CDD #8…	Page 21-22
Tradition CDD #9…	Page 23-24
Tradition CDD #10.	Page 25-26
Tradition IRRIGATION.	Page 27-30

	FISCAL YEAR	FISCAL YEAR		
	2022/2023
ANNUAL BUDGET	10/01/22 - 02/28/23
ACTUAL	% Of
Budget	COMMENTS	
REVENUES	
O & M ASSESSMENTS		2,621,290	2,475,410	
94.43%	
DEBT ASSESSMENTS		5,379,577	4,519,430	84.01%	
BOND PREPAYMENTS		0	0	0.00%	
INTEREST INCOME		0	47,989	0.00%	
STORMWATER		825,000	826,236	100.15%	
OTHER INCOME		0	69,385	0.00%	
DEVELOPER CONTRIBUTION - BEEP		0	1,381,680	0.00%	
FUND CARRY FORWARD		0	0	0.00%	
Total Revenues		$	8,825,868	$	9,320,129	105.60%	
EXPENDITURES - ADMIN	
AUDIT		
55,000	
0	
0.00%	
BANK FEES		670	0	0.00%	
DISSEMINATION AGENT		2,000	0	0.00%	
DISTRICT COUNSEL		80,000	14,135	17.67%	
MANAGEMENT		96,161	40,067	41.67%	
ASSESSMENT ROLL		10,000	0	0.00%	
DUES, LICENSES, FEES		1,750	1,750	100.00%	
ENGINEERING		50,000	22,421	44.84%	
IMPACT FEE ADMINISTRATION		0	0	0.00%	
GENERAL INSURANCE		110,860	163,585	147.56%	
WEBSITE		7,500	3,125	41.67%	
LEGAL ADVERTISING		6,500	1,463	22.51%	
MISCELLANEOUS		0	16,535	100.00% CDD #11 Establishment	
TRAVEL AND PER DIEM		1,000	508	50.80%	
FINANCIAL ADVISORY FEES		0	85	0.00%	
OFFICE SUPPLIES		2,500	1,391	55.65%	
POSTAGE AND SHIPPING		200	260	129.87%	
COPIES		1,000	1,741	174.12%	
SUPERVISOR FEES		64,800	15,800	24.38%	
SUPERVISOR PAYROLL TAXES		0	1,209	0.00%	
SUPERVISOR PAYROLL FEES		0	249	0.00%	
TRUSTEE SERVICES		18,000	0	0.00%	
OFFICE RENT		25,000	33,582	134.33%	
CONTINUING DISCLOSURE FEE		3,000	250	8.33%	
GENERAL RESERVES		25,000	0	0.00%	
TOTAL ADMIN EXPENSES		560,941	318,156	56.72%	

57

	FISCAL YEAR	FISCAL YEAR		
	2022/2023
ANNUAL BUDGET	10/01/22 - 02/28/23
ACTUAL	% Of Budget	
COMMENTS	
					
EXPENDITURES - MAINT						
LAKE MAINTENANCE		255,000	29,772	11.68%		
BEEP OPERATIONS		300,956	78,440	26.06%		
BUILDING, BRIDGE, MONUMENT MAINT.		300,000	0	0.00%		
MISC MAINTENANCE		0	1,730	0.00%		
GENERAL RESERVES		72,000	0	0.00%		
COMMUNITY AREA MAINTENANCE		40,000	29,402	73.50%		
DEVELOPMENT COORDINATOR		61,100	25,458	41.67%		
PAINTING		0	0	0.00%		
FENCE MAINTENANCE		0	0	0.00%		
ELECTRIC		70,000	36,293	51.85%		
ENGINEERING - MAINT.		100,000	0	0.00%		
FIELD MANAGEMENT		197,667	82,361	41.67%		
FOUNTAIN MAINTENANCE		30,000	13,849	46.16%		
LANDSCAPING MAINTENANCE & MATERIALS		870,000	408,718	46.98%		
IRRIGATION		152,000	62,793	41.31%		
IRRIGATION PARTS & REPAIR		25,000	18,821	75.28%		
PEST CONTROL		0	0	0.00%		
SECURITY		0	3,400	0.00%		
SIDEWALK CLEANING		30,000	15,000	50.00%		
SIDEWALK REPAIR		45,000	0	0.00%		
SIGNAGE		10,000	50,195	501.95% Alligator Signs		
STREETLIGHTS		45,000	74,316	165.15% Four 37' concrete poles		
STORMWATER MANAGEMENT		6,000	0	0.00%		
TREE/PLANT REPLACEMENT & TRIM		90,000	60,004	66.67%		
WETLAND UPLAND MAINTENANCE		0	375	0.00%		
TOTAL MAINTENANCE EXPENSES		2,699,723	990,928	36.70%		
						
Total Expenditures		$	3,260,664	$	1,309,084	40.15%		

	FISCAL YEAR	FISCAL YEAR		
	2022/2023	10/01/22 - 02/28/23
ANNUAL BUDGET	ACTUAL	% Of Budget	
COMMENTS	
				
EXCESS / (SHORTFALL)		$	5,565,204	$	8,011,044	143.95%		

PAYMENT TO TRUSTEE		
(4,949,211)	(4,259,544)	
86.07%		
BOND PREPAYMENTS					
BALANCE		$	615,993	$	3,751,501			

COUNTY APPRAISER & TAX COLLECTOR FEE		
(307,996)	(280,146)	
90.96%		
DISCOUNTS FOR EARLY PAYMENTS		(307,996)	(267,877)	86.97%		
NET EXCESS / (SHORTFALL)		$	-	$	3,203,478			

Oct '22 - Feb 23	Budget	$ Over Budget	% of Budget
Income
01-1610 · BEEP Developer Contribution	1,381,680.00		0.00		1,381,680.00		100.0%	
01-3100 · O & M Assessments	43,303.06		45,855.00		-2,551.94		94.4%	
01-3810 · Debt Assessments (2014)	3,976,194.37		62,341.00		3,913,853.37		6,378.1%	
01-3811 · Debt Assessments (2021)	543,235.45							
01-3820 · Debt Assess-Pd To Trustee-2014	-3,747,546.49		-57,353.00		-3,690,193.49		6,534.2%	
01-3821 · Debt Assess-Pd To Trustee-2021	-511,997.14							
01-3830 · Assessment Fees	-4,900.67		-4,178.00		-722.67		117.3%	
01-3831 · Assessment Discounts	-4,686.05		-4,178.00		-508.05		112.2%	
01-9000 · Bond Prepayments - Series 2014	5,813.97		0.00		5,813.97		100.0%	
01-9010 · Prepaid Bonds To Trustee (2014)	-5,813.97		0.00		-5,813.97		100.0%	
01-9400 · Other Income	62,257.90		0.00		62,257.90		100.0%	
01-9405 · Stormwater Fees	50,796.45		11,339.00		39,457.45		448.0%	
01-9407 · Engineering Revenue Fees	2,877.00		0.00		2,877.00		100.0%	
01-9408 · Application Fee	4,250.00		0.00		4,250.00		100.0%	
01-9410 · Interest Income (GF)	47,988.74		0.00		47,988.74		100.0%	
Total Income	1,843,452.62		53,826.00		1,789,626.62		3,424.8%	
Expense
01-1308 · Dissemination Agent	
0.00		
27.00		
-27.00		
0.0%	
01-1310 · Engineering	158.42		353.00		-194.58		44.9%	
01-1311 · Management Fees	283.09		679.00		-395.91		41.7%	
01-1313 · Field Management	1,132.03		2,717.00		-1,584.97		41.7%	
01-1315 · Legal Fees	99.89		565.00		-465.11		17.7%	
01-1317 · Travel and Per Diem	3.62		7.00		-3.38		51.7%	
01-1318 · Assessment/Tax Roll	0.00		71.00		-71.00		0.0%	
01-1320 · Audit Fees	0.00		6,500.00		-6,500.00		0.0%	
01-1325 · Supervisor Fees	1,580.00		6,480.00		-4,900.00		24.4%	
01-1326 · Payroll tax expense	120.87		0.00		120.87		100.0%	
01-1327 · Payroll Processing fees	24.87		0.00		24.87		100.0%	
01-1330 · Arbitrage Rebate Fee	0.00							
01-1331 · Financial Advisory Fees	0.65							
01-1332 · Development Coordinator	349.95		840.00		-490.05		41.7%	
01-1335 · Administrative Contingency	0.00		0.00		0.00		0.0%	
01-1440 · Rents & Leases	237.26		177.00		60.26		134.0%	
01-1450 · Insurance	99,679.35		783.00		98,896.35		12,730.4%	
01-1480 · Legal Advertisements	10.38		46.00		-35.62		22.6%	
01-1511 · Bank Fees	0.00		5.00		-5.00		0.0%	
01-1512 · Miscellaneous	116.84		0.00		116.84		100.0%	
01-1513 · Postage and Delivery	1.88		1.00		0.88		188.0%	
01-1514 · Office Supplies	9.88		18.00		-8.12		54.9%	
01-1515 · Telephone	0.00		0.00		0.00		0.0%	
01-1516 · Copies	12.34		7.00		5.34		176.3%	
01-1518 · Web Site	312.50		750.00		-437.50		41.7%	
01-1519 · Holiday Decorations	0.00		0.00		0.00		0.0%	
01-1520 · Security	46.76		0.00		46.76		100.0%	
01-1540 · Dues, License & Subscriptions	175.00		175.00		0.00		100.0%	
01-1550 · Trustee Fees (GF)	0.00		247.00		-247.00		0.0%	
01-1600 · BEEP Capital	0.00		0.00		0.00		0.0%	
01-1606 · BEEP O&M
01-1607 · Insurance	
0.00		
0.00		
0.00		
0.0%	
01-1608 · Legal	2,502.50		0.00		2,502.50		100.0%	
01-1606 · BEEP O&M - Other	-1,526.10		3,746.00		-5,272.10		-40.7%	
Total 01-1606 · BEEP O&M	
976.40		
3,746.00		
-2,769.60		
26.1%	
01-1743 · Continuing Disclosure Fee	3.48		41.00		-37.52		8.5%	
01-1801 · Landscaping Maintenance	5,617.67		11,958.00		-6,340.33		47.0%	
01-1802 · Tree/Plant Replacement & Trim	824.76		1,237.00		-412.24		66.7%	
01-1805 · Stormwater Management (GF)	0.00		82.00		-82.00		0.0%	
01-1807 · Irrigation Parts & Repair	258.71		344.00		-85.29		75.2%	
01-1808 · Irrigation	863.09		2,089.00		-1,225.91		41.3%	
01-1810 · Engineering / Inspections	0.00		1,374.00		-1,374.00		0.0%	
01-1812 · Signage & Amenities Repair	689.94		138.00		551.94		500.0%	

	Oct '22 - Feb 23		Budget		$ Over Budget		% of Budget	
01-1813 · Wetland Upland Maintenance	5.19		0.00		5.19		100.0%	
01-1814 · Electricity	498.87		962.00		-463.13		51.9%	
01-1815 · Miscellaneous Maintenance	23.81		0.00		23.81		100.0%	
01-1816 · Building Maintenance	0.00		0.00		0.00		0.0%	
01-1817 · Common Area Maintenance	404.16		550.00		-145.84		73.5%	
01-1818 · Fountain Maintenance & Chemical	190.38		412.00		-221.62		46.2%	
01-1820 · Contingency	0.00		0.00		0.00		0.0%	
01-1822 · Pest Control	0.00		0.00		0.00		0.0%	
01-1825 · Lake Maintenance	409.25		3,505.00		-3,095.75		11.7%	
01-1827 · Streetlights	1,021.47		619.00		402.47		165.0%	
01-1829 · Sidewalk Cleaning	206.20		412.00		-205.80		50.0%	
01-1830 · Sidewalk Repair	0.00		619.00		-619.00		0.0%	
01-1831 · Building, Bridge, Monument Main	0.00		4,123.00		-4,123.00		0.0%	
01-1835 · General Reserves	0.00		1,167.00		-1,167.00		0.0%	
Total Expense	116,348.96		53,826.00		62,522.96		216.2%	
Net Income	1,727,103.66		0.00		1,727,103.66		100.0%	

03/28/23	Balance Sheet
Accrual Basis	As of February 28, 2023

Feb 28, 23

ASSETS
Current Assets Checking/Savings		
01-1000 · Valley National 1157	3,972,421.27	
Total Checking/Savings	3,972,421.27	
Accounts Receivable		
11000 · Accounts Receivable	1,419,734.73	
Total Accounts Receivable	1,419,734.73	
Other Current Assets		
01-1208 · Due From Other Gov Units - Open	999.78	
01-8154 · Deposits	200.00	
Total Other Current Assets	1,199.78	
Total Current Assets	5,393,355.78	
Other Assets		
01-8122 · A/R St Lucie County Excess Fees	-18,711.00	
Total Other Assets	-18,711.00	
TOTAL ASSETS	5,374,644.78	
LIABILITIES & EQUITY		
Liabilities
Current Liabilities Accounts Payable
01-2020 · Accounts Payable	

390,787.65	
Total Accounts Payable	390,787.65	
Other Current Liabilities		
01-2023 · Due To Other Funds	376,019.84	
01-2025 · Deposits - Engr Deposit	48,467.33	
01-2026 · Deposits - Lake Bank Restoratio	535,941.27	
01-2030 · Due to CDD2	123,053.02	
01-2031 · Due to CDD3	310,070.26	
01-2032 · Due to CDD4	310,069.02	
01-2033 · Due to CDD5	306,198.27	
01-2034 · Due to CDD6	284,354.79	
01-2035 · Due to CDD7	90,005.28	
01-2036 · Due to CDD8	11,840.30	
01-2037 · Due to CDD9	9,913.85	
01-2038 · Due to CDD10	96,537.33	
01-3010 · General Reserve - Signage	500,000.00	
Total Other Current Liabilities	3,002,470.56	
Total Current Liabilities	3,393,258.21	
Total Liabilities	3,393,258.21	
Equity		
30000 · Opening Balance Equity	70,654.15	
99-9999 · Retained Earnings	183,628.76	
Net Income	1,727,103.66	
Total Equity	1,981,386.57	
TOTAL LIABILITIES & EQUITY	5,374,644.78	

03/28/23	Profit & Loss Budget vs. Actual
Accrual Basis	October 2022 through February 2023

	Oct '22 - Feb 23		Budget		$ Over Budget		% of Budget	
Income
01-3100 · Assessments	
165,291.98		
175,032.00		
-9,740.02		
94.4%	
01-3810 · Debt Assessment	0.00		326,508.00		-326,508.00		0.0%	
01-3820 · Debt Assess-Paid To Trustee	0.00		-300,388.00		300,388.00		0.0%	
01-3830 · Assessment Fees	-18,706.33		-19,277.00		570.67		97.0%	
01-3831 · Assessment Discounts	-17,887.11		-19,277.00		1,389.89		92.8%	
01-9405 · Stormwater Fees	59,477.95		59,389.00		88.95		100.1%	
01-9410 · Interest Income (GF)	123.23		0.00		123.23		100.0%	
Total Income	188,299.72		221,987.00		-33,687.28		84.8%	
Expense
01-1308 · Dissemination Agent	
0.00		
144.00		
-144.00		
0.0%	
01-1310 · Engineering	829.51		1,850.00		-1,020.49		44.8%	
01-1311 · Management Fees	1,482.39		3,558.00		-2,075.61		41.7%	
01-1315 · Legal Fees	522.97		2,960.00		-2,437.03		17.7%	
01-1317 · Travel and Per Diem	18.79		37.00		-18.21		50.8%	
01-1318 · Assessment/Tax Roll	0.00		370.00		-370.00		0.0%	
01-1320 · Audit Fees	0.00		5,500.00		-5,500.00		0.0%	
01-1325 · Supervisor Fees	1,580.00		6,480.00		-4,900.00		24.4%	
01-1326 · Payroll Taxes	120.87		0.00		120.87		100.0%	
01-1327 · Payroll Processing Fees	24.88		0.00		24.88		100.0%	
01-1330 · Arbitrage Rebate Fee	0.00		0.00		0.00		0.0%	
01-1331 · Financial Advisory Fees	3.14		0.00		3.14		100.0%	
01-1332 · Development Coordinator	1,832.66		4,398.00		-2,565.34		41.7%	
01-1440 · Rents & Leases	1,242.44		925.00		317.44		134.3%	
01-1450 · Insurance	11,340.00		4,102.00		7,238.00		276.5%	
01-1480 · Legal Advertisements	54.13		240.00		-185.87		22.6%	
01-1511 · Bank Fees	0.00		25.00		-25.00		0.0%	
01-1512 · Miscellaneous	611.77		0.00		611.77		100.0%	
01-1513 · Postage and Delivery	9.60		6.00		3.60		160.0%	
01-1514 · Office Supplies	51.47		92.00		-40.53		55.9%	
01-1516 · Copies	64.42		36.00		28.42		178.9%	
01-1518 · Web Site	312.50		750.00		-437.50		41.7%	
01-1520 · Security	244.75		0.00		244.75		100.0%	
01-1540 · Dues, License & Subscriptions	175.00		175.00		0.00		100.0%	
01-1550 · Trustee Fees (GF)	0.00		1,296.00		-1,296.00		0.0%	
01-1606 · BEEP Operations	5,113.80		19,620.00		-14,506.20		26.1%	
01-1743 · Continuing Disclosure Fee	17.99		216.00		-198.01		8.3%	
01-1801 · Landscaping Maintenance	29,422.36		62,629.00		-33,206.64		47.0%	
01-1802 · Tree/Plant Replacement & Trim	4,319.50		6,479.00		-2,159.50		66.7%	
01-1805 · Stormwater Management (GF)	0.00		432.00		-432.00		0.0%	
01-1807 · Irrigation Parts & Repair	1,354.83		1,800.00		-445.17		75.3%	
01-1808 · Irrigation	4,520.30		10,942.00		-6,421.70		41.3%	
01-1809 · Field Management	5,928.93		14,229.00		-8,300.07		41.7%	
01-1810 · Engineering / Inspections	0.00		7,199.00		-7,199.00		0.0%	
01-1812 · Signage & Amenities Repair	3,613.36		720.00		2,893.36		501.9%	
01-1813 · Wetland Upland Maintenance	26.99		0.00		26.99		100.0%	
01-1814 · Electricity	2,612.61		5,039.00		-2,426.39		51.8%	
01-1815 · Miscellaneous Maintenance	124.53		0.00		124.53		100.0%	
01-1816 · Building Maintenance	0.00		21,596.00		-21,596.00		0.0%	
01-1817 · Common Area Maintenance	2,116.53		2,879.00		-762.47		73.5%	
01-1818 · Fountain Maintenance & Chemical	996.97		2,160.00		-1,163.03		46.2%	
01-1820 · Contingency	0.00		0.00		0.00		0.0%	
01-1825 · Lake Maintenance	2,143.22		18,357.00		-16,213.78		11.7%	
01-1826 · Streetlights	5,349.81		3,239.00		2,110.81		165.2%	
01-1829 · Sidewalk Cleaning	1,079.80		2,160.00		-1,080.20		50.0%	
01-1830 · Sidewalk Repair	0.00		3,239.00		-3,239.00		0.0%	
01-1835 · General Reserves	0.00		6,108.00		-6,108.00		0.0%	
Total Expense	89,262.82		221,987.00		-132,724.18		40.2%	
Net Income	99,036.90		0.00		99,036.90		100.0%	

03/28/23	Balance Sheet
Accrual Basis	As of February 28, 2023

Feb 28, 23
ASSETS
Current Assets
Checking/Savings		
01-1000 · Valley National 1173	8,735.45	
Total Checking/Savings	8,735.45	
Other Current Assets		
01-1210 · Due from CDD1	123,053.02	
Total Other Current Assets	123,053.02	
Total Current Assets	131,788.47	
TOTAL ASSETS	131,788.47	
LIABILITIES & EQUITY		
Equity
30000 · Opening Balance Equity	
4,869.12	
99-9999 · Retained Earnings	27,882.45	
Net Income	99,036.90	
Total Equity	131,788.47	
TOTAL LIABILITIES & EQUITY	131,788.47	

03/28/23	Profit & Loss Budget vs. Actual
Accrual Basis	October 2022 through February 2023

	Oct '22 - Feb 23		Budget		$ Over Budget		% of Budget	
Income
01-3100 · Assessments	
409,654.19		
433,796.00		
-24,141.81		
94.4%	
01-3810 · Debt Assessment	0.00		969,395.00		-969,395.00		0.0%	
01-3820 · Debt Assess-Paid To Trustee	0.00		-891,843.00		891,843.00		0.0%	
01-3830 · Assessment Fees	-46,361.15		-56,128.00		9,766.85		82.6%	
01-3831 · Assessment Discounts	-44,330.82		-56,128.00		11,797.18		79.0%	
01-9405 · Stormwater Fees	176,589.09		176,325.00		264.09		100.1%	
01-9410 · Interest Income (GF)	0.26		0.00		0.26		100.0%	
Total Income	495,551.57		575,417.00		-79,865.43		86.1%	
Expense
01-1308 · Dissemination Agent	
0.00		
427.00		
-427.00		
0.0%	
01-1310 · Engineering	2,462.82		5,492.00		-3,029.18		44.8%	
01-1311 · Management Fees	4,401.18		10,563.00		-6,161.82		41.7%	
01-1315 · Legal Fees	1,552.69		8,788.00		-7,235.31		17.7%	
01-1317 · Travel and Per Diem	55.80		110.00		-54.20		50.7%	
01-1318 · Assessment/Tax Roll	0.00		1,098.00		-1,098.00		0.0%	
01-1320 · Audit Fees	0.00		5,500.00		-5,500.00		0.0%	
01-1325 · Supervisor Fees	1,580.00		6,480.00		-4,900.00		24.4%	
01-1326 · Payroll Taxes - Supervisors	120.87		0.00		120.87		100.0%	
01-1327 · Payroll Fees - Supervisors	24.88		0.00		24.88		100.0%	
01-1330 · Arbitrage Rebate Fee	0.00		0.00		0.00		0.0%	
01-1331 · Financial Advisory Fees	9.33		0.00		9.33		100.0%	
01-1332 · Development Coordinator	5,441.13		13,059.00		-7,617.87		41.7%	
01-1440 · Rents & Leases	3,688.79		2,746.00		942.79		134.3%	
01-1450 · Insurance	7,150.00		12,177.00		-5,027.00		58.7%	
01-1480 · Legal Advertisements	160.72		714.00		-553.28		22.5%	
01-1511 · Bank Fees	0.00		74.00		-74.00		0.0%	
01-1512 · Miscellaneous	1,816.33		0.00		1,816.33		100.0%	
01-1513 · Postage and Delivery	28.53		22.00		6.53		129.7%	
01-1514 · Office Supplies	152.82		275.00		-122.18		55.6%	
01-1516 · Copies	191.26		110.00		81.26		173.9%	
01-1518 · Web Site	312.50		750.00		-437.50		41.7%	
01-1520 · Security	726.67		0.00		726.67		100.0%	
01-1540 · Dues, License & Subscriptions	175.00		175.00		0.00		100.0%	
01-1550 · Trustee Fees (GF)	0.00		3,847.00		-3,847.00		0.0%	
01-1606 · BEEP Operations	0.00		0.00		0.00		0.0%	
01-1743 · Continuing Disclosure Fee	53.43		641.00		-587.57		8.3%	
01-1801 · Landscaping Maintenance	87,354.21		185,943.00		-98,588.79		47.0%	
01-1802 · Tree/Plant Replacement & Trim	12,824.49		19,235.00		-6,410.51		66.7%	
01-1805 · Stormwater Management (GF)	0.00		1,282.00		-1,282.00		0.0%	
01-1807 · Irrigation Parts & Repair	4,022.46		5,343.00		-1,320.54		75.3%	
01-1808 · Irrigation	13,420.65		32,487.00		-19,066.35		41.3%	
01-1809 · Field Management	17,602.85		42,247.00		-24,644.15		41.7%	
01-1810 · Engineering / Inspections	0.00		21,373.00		-21,373.00		0.0%	
01-1812 · Signage & Amenities Repair	10,727.99		2,137.00		8,590.99		502.0%	
01-1813 · Wetland Upland Maintenance	80.14		0.00		80.14		100.0%	
01-1814 · Electricity	7,756.78		14,961.00		-7,204.22		51.8%	
01-1815 · Miscellaneous Maintenance	369.74		0.00		369.74		100.0%	
01-1816 · Building Maintenance	0.00		64,118.00		-64,118.00		0.0%	
01-1817 · Common Area Maintenance	6,283.94		8,549.00		-2,265.06		73.5%	
01-1818 · Fountain Maintenance & Chemical	2,959.98		6,412.00		-3,452.02		46.2%	
01-1820 · Contingency	0.00		0.00		0.00		0.0%	
01-1825 · Lake Maintenance	6,363.18		54,500.00		-48,136.82		11.7%	
01-1826 · Streetlights	15,883.45		9,618.00		6,265.45		165.1%	
01-1829 · Sidewalk Cleaning	3,205.91		6,412.00		-3,206.09		50.0%	
01-1830 · Sidewalk Repair	0.00		9,618.00		-9,618.00		0.0%	
01-1835 · General Reserves	0.00		18,134.00		-18,134.00		0.0%	
Total Expense	218,960.52		575,417.00		-356,456.48		38.1%	
Net Income	276,591.05		0.00		276,591.05		100.0%	

03/28/23	Balance Sheet
Accrual Basis	As of February 28, 2023

Feb 28, 23
ASSETS
Current Assets
Checking/Savings		
01-1000 · Valley National 1181	18.73	
Total Checking/Savings	18.73	
Other Current Assets		
01-1210 · Due from CDD1	310,070.26	
Total Other Current Assets	310,070.26	
Total Current Assets	310,088.99	
TOTAL ASSETS	310,088.99	
LIABILITIES & EQUITY		
Equity
30000 · Opening Balance Equity	
1,295.39	
99-9999 · Retained Earnings	32,202.55	
Net Income	276,591.05	
Total Equity	310,088.99	
TOTAL LIABILITIES & EQUITY	310,088.99	

03/29/23	Profit & Loss Budget vs. Actual
Accrual Basis	October 2022 through February 2023

	Oct '22 - Feb 23		Budget		$ Over Budget		% of Budget	
Income
01-3100 · Assessments	
414,434.47		
438,858.00		
-24,423.53		
94.4%	
01-3810 · Debt Assessment	0.00		981,084.00		-981,084.00		0.0%	
01-3820 · Debt Assess-Paid To Trustee	0.00		-902,597.00		902,597.00		0.0%	
01-3830 · Assessment Fees	-46,902.14		-56,798.00		9,895.86		82.6%	
01-3831 · Assessment Discounts	-44,848.12		-56,798.00		11,949.88		79.0%	
01-9405 · Stormwater Fees	178,718.27		178,451.00		267.27		100.1%	
01-9410 · Interest Income (GF)	21.72		0.00		21.72		100.0%	
Total Income	501,424.20		582,200.00		-80,775.80		86.1%	
Expense
01-1308 · Dissemination Agent	
0.00		
433.00		
-433.00		
0.0%	
01-1310 · Engineering	2,492.51		5,558.00		-3,065.49		44.8%	
01-1311 · Management Fees	4,454.25		10,690.00		-6,235.75		41.7%	
01-1315 · Legal Fees	1,571.41		8,894.00		-7,322.59		17.7%	
01-1317 · Travel and Per Diem	56.47		111.00		-54.53		50.9%	
01-1318 · Assessment/Tax Roll	0.00		1,112.00		-1,112.00		0.0%	
01-1320 · Audit Fees	0.00		5,500.00		-5,500.00		0.0%	
01-1321 · Field Management	17,815.10		42,756.00		-24,940.90		41.7%	
01-1325 · Supervisor Fees	1,580.00		6,480.00		-4,900.00		24.4%	
01-1326 · Payroll Taxes - Supervisors	120.87		0.00		120.87		100.0%	
01-1327 · Payroll Fees - Supervisors	24.88		0.00		24.88		100.0%	
01-1330 · Arbitrage Rebate Fee	0.00		0.00		0.00		0.0%	
01-1331 · Financial Advisory Fees	9.44		0.00		9.44		100.0%	
01-1332 · Development Coordinator	5,506.74		13,216.00		-7,709.26		41.7%	
01-1440 · Rents & Leases	3,733.27		2,779.00		954.27		134.3%	
01-1450 · Insurance	7,240.00		12,326.00		-5,086.00		58.7%	
01-1480 · Legal Advertisements	162.65		723.00		-560.35		22.5%	
01-1511 · Bank Fees	0.00		74.00		-74.00		0.0%	
01-1512 · Miscellaneous	1,838.23		0.00		1,838.23		100.0%	
01-1513 · Postage and Delivery	28.87		22.00		6.87		131.2%	
01-1514 · Office Supplies	154.66		278.00		-123.34		55.6%	
01-1516 · Copies	193.56		111.00		82.56		174.4%	
01-1518 · Web Site	312.50		750.00		-437.50		41.7%	
01-1520 · Security	735.43		0.00		735.43		100.0%	
01-1540 · Dues, License & Subscriptions	175.00		175.00		0.00		100.0%	
01-1550 · Trustee Fees (GF)	0.00		3,893.00		-3,893.00		0.0%	
01-1606 · BEEP Operations	0.00							
01-1743 · Continuing Disclosure Fee	54.07		649.00		-594.93		8.3%	
01-1801 · Landscaping Maintenance	88,407.52		188,185.00		-99,777.48		47.0%	
01-1802 · Tree/Plant Replacement & Trim	12,979.13		19,467.00		-6,487.87		66.7%	
01-1805 · Stormwater Management (GF)	0.00		1,298.00		-1,298.00		0.0%	
01-1807 · Irrigation Parts & Repair	4,070.96		5,408.00		-1,337.04		75.3%	
01-1808 · Irrigation	13,582.48		32,878.00		-19,295.52		41.3%	
01-1810 · Engineering / Inspections	0.00		21,630.00		-21,630.00		0.0%	
01-1812 · Signage & Amenities Repair	10,857.34		2,163.00		8,694.34		502.0%	
01-1813 · Wetland Upland Maintenance	81.11		0.00		81.11		100.0%	
01-1814 · Electricity	7,850.31		15,141.00		-7,290.69		51.8%	
01-1815 · Miscellaneous Maintenance	374.20		0.00		374.20		100.0%	
01-1816 · Building Maintenance	0.00		64,891.00		-64,891.00		0.0%	
01-1817 · Common Area Maintenance	6,359.71		8,652.00		-2,292.29		73.5%	
01-1818 · Fountain Maintenance & Chemical	2,995.67		6,489.00		-3,493.33		46.2%	
01-1820 · Contingency	0.00		0.00		0.00		0.0%	
01-1825 · Lake Maintenance	6,439.91		55,158.00		-48,718.09		11.7%	
01-1826 · Streetlights	16,074.97		9,734.00		6,340.97		165.1%	
01-1829 · Sidewalk Cleaning	3,244.56		6,489.00		-3,244.44		50.0%	
01-1830 · Sidewalk Repair	0.00		9,734.00		-9,734.00		0.0%	
01-1835 · General Reserves	0.00		18,353.00		-18,353.00		0.0%	
Total Expense	221,577.78		582,200.00		-360,622.22		38.1%	
Net Income	279,846.42		0.00		279,846.42		100.0%	

03/29/23	Balance Sheet
Accrual Basis	As of February 28, 2023

Feb 28, 23
ASSETS
Current Assets
Checking/Savings		
01-1000 · Valley National 1211	1,539.51	
Total Checking/Savings	1,539.51	
Other Current Assets		
01-1210 · Due from CDD1	310,069.02	
Total Other Current Assets	310,069.02	
Total Current Assets	311,608.53	
TOTAL ASSETS	311,608.53	
LIABILITIES & EQUITY		
Equity
30000 · Opening Balance Equity	
1,491.35	
99-9999 · Retained Earnings	30,270.76	
Net Income	279,846.42	
Total Equity	311,608.53	
TOTAL LIABILITIES & EQUITY	311,608.53	

03/29/23	Profit & Loss Budget vs. Actual
Accrual Basis	October 2022 through February 2023

	Oct '22 - Feb 23		Budget		$ Over Budget		% of Budget	
Income
01-3100 · Assessments	
411,566.49		
435,821.00		
-24,254.51		
94.4%	
01-3810 · Debt Assessment	0.00		974,071.00		-974,071.00		0.0%	
01-3820 · Debt Assess-Paid To Trustee	0.00		-896,145.00		896,145.00		0.0%	
01-3830 · Assessment Fees	-46,577.57		-56,396.00		9,818.43		82.6%	
01-3831 · Assessment Discounts	-44,537.76		-56,396.00		11,858.24		79.0%	
01-9405 · Stormwater Fees	177,441.36		177,176.00		265.36		100.1%	
01-9410 · Interest Income (GF)	46.24		0.00		46.24		100.0%	
Total Income	497,938.76		578,131.00		-80,192.24		86.1%	
Expense
01-1308 · Dissemination Agent	
0.00		
430.00		
-430.00		
0.0%	
01-1310 · Engineering	2,474.69		5,519.00		-3,044.31		44.8%	
01-1311 · Management Fees	4,422.41		10,614.00		-6,191.59		41.7%	
01-1315 · Legal Fees	1,560.18		8,830.00		-7,269.82		17.7%	
01-1317 · Travel and Per Diem	56.07		110.00		-53.93		51.0%	
01-1318 · Assessment/Tax Roll	0.00		1,104.00		-1,104.00		0.0%	
01-1320 · Audit Fees	0.00		5,500.00		-5,500.00		0.0%	
01-1321 · Field Management	17,687.75		42,451.00		-24,763.25		41.7%	
01-1325 · Supervisor Fees	1,580.00		6,480.00		-4,900.00		24.4%	
01-1326 · Payroll Taxes - Supervisors	120.87		0.00		120.87		100.0%	
01-1327 · Payroll Fees - Supervisors	24.88		0.00		24.88		100.0%	
01-1330 · Arbitrage Rebate Fee	0.00		0.00		0.00		0.0%	
01-1331 · Financial Advisory Fees	9.38		0.00		9.38		100.0%	
01-1332 · Development Coordinator	5,467.37		13,122.00		-7,654.63		41.7%	
01-1440 · Rents & Leases	3,706.58		2,759.00		947.58		134.3%	
01-1450 · Insurance	6,820.00		12,236.00		-5,416.00		55.7%	
01-1480 · Legal Advertisements	161.49		717.00		-555.51		22.5%	
01-1511 · Bank Fees	0.00		74.00		-74.00		0.0%	
01-1512 · Miscellaneous	1,825.09		0.00		1,825.09		100.0%	
01-1513 · Postage and Delivery	28.66		22.00		6.66		130.3%	
01-1514 · Office Supplies	153.56		276.00		-122.44		55.6%	
01-1516 · Copies	192.18		110.00		82.18		174.7%	
01-1518 · Web Site	312.50		750.00		-437.50		41.7%	
01-1520 · Security	730.17		9,020.00		-8,289.83		8.1%	
01-1540 · Dues, License & Subscriptions	175.00		175.00		0.00		100.0%	
01-1550 · Trustee Fees (GF)	0.00		3,866.00		-3,866.00		0.0%	
01-1606 · BEEP Operations	0.00							
01-1743 · Continuing Disclosure Fee	53.68		644.00		-590.32		8.3%	
01-1801 · Landscaping Maintenance	87,775.53		186,840.00		-99,064.47		47.0%	
01-1802 · Tree/Plant Replacement & Trim	12,886.34		19,328.00		-6,441.66		66.7%	
01-1805 · Stormwater Management (GF)	0.00		1,289.00		-1,289.00		0.0%	
01-1807 · Irrigation Parts & Repair	4,041.86		5,369.00		-1,327.14		75.3%	
01-1808 · Irrigation	13,485.38		32,643.00		-19,157.62		41.3%	
01-1810 · Engineering / Inspections	0.00		21,476.00		-21,476.00		0.0%	
01-1812 · Signage & Amenities Repair	10,779.73		2,148.00		8,631.73		501.8%	
01-1813 · Wetland Upland Maintenance	80.53		0.00		80.53		100.0%	
01-1814 · Electricity	7,794.20		15,033.00		-7,238.80		51.8%	
01-1815 · Miscellaneous Maintenance	371.53		0.00		371.53		100.0%	
01-1816 · Building Maintenance	0.00		64,427.00		-64,427.00		0.0%	
01-1817 · Common Area Maintenance	6,314.25		8,590.00		-2,275.75		73.5%	
01-1818 · Fountain Maintenance & Chemical	2,974.26		6,443.00		-3,468.74		46.2%	
01-1825 · Lake Maintenance	6,393.87		54,763.00		-48,369.13		11.7%	
01-1826 · Streetlights	15,960.06		9,664.00		6,296.06		165.1%	
01-1829 · Sidewalk Cleaning	3,221.37		6,443.00		-3,221.63		50.0%	
01-1830 · Sidewalk Repair	0.00		9,664.00		-9,664.00		0.0%	
01-1835 · General Reserves	0.00		9,202.00		-9,202.00		0.0%	
Total Expense	219,641.42		578,131.00		-358,489.58		38.0%	
Net Income	278,297.34		0.00		278,297.34		100.0%	

03/29/23	Balance Sheet
Accrual Basis	As of February 28, 2023

Feb 28, 23
ASSETS
Current Assets
Checking/Savings		
01-1000 · Valley National 1203	3,277.82	
Total Checking/Savings	3,277.82	
Other Current Assets		
01-1210 · Due from CDD1	306,198.26	
Total Other Current Assets	306,198.26	
Total Current Assets	309,476.08	
TOTAL ASSETS	309,476.08	
LIABILITIES & EQUITY		
Equity
30000 · Opening Balance Equity	
559.76	
99-9999 · Retained Earnings	30,618.98	
Net Income	278,297.34	
Total Equity	309,476.08	
TOTAL LIABILITIES & EQUITY	309,476.08	

03/29/23	Profit & Loss Budget vs. Actual
Accrual Basis	October 2022 through February 2023

	Oct '22 - Feb 23		Budget		$ Over Budget		% of Budget	
Income
01-3100 · Assessments	
378,107.31		
400,390.00		
-22,282.69		
94.4%	
01-3810 · Debt Assessment	0.00		892,249.00		-892,249.00		0.0%	
01-3820 · Debt Assess-Paid To Trustee	0.00		-820,869.00		820,869.00		0.0%	
01-3830 · Assessment Fees	-42,790.95		-51,706.00		8,915.05		82.8%	
01-3831 · Assessment Discounts	-40,916.96		-51,706.00		10,789.04		79.1%	
01-9405 · Stormwater Fees	162,536.07		162,293.00		243.07		100.1%	
01-9410 · Interest Income (GF)	236.95		0.00		236.95		100.0%	
Total Income	457,172.42		530,651.00		-73,478.58		86.2%	
Expense
01-1308 · Dissemination Agent	
0.00		
393.00		
-393.00		
0.0%	
01-1310 · Engineering	2,266.82		5,055.00		-2,788.18		44.8%	
01-1311 · Management Fees	4,050.93		9,722.00		-5,671.07		41.7%	
01-1315 · Legal Fees	1,429.12		8,088.00		-6,658.88		17.7%	
01-1317 · Travel and Per Diem	51.36		101.00		-49.64		50.9%	
01-1318 · Assessment/Tax Roll	0.00		1,011.00		-1,011.00		0.0%	
01-1320 · Audit Fees	0.00		5,500.00		-5,500.00		0.0%	
01-1325 · Supervisor Fees	1,580.00		6,480.00		-4,900.00		24.4%	
01-1326 · Payroll Taxes - Supervisors	120.87		0.00		120.87		100.0%	
01-1327 · Payroll Fees - Supervisors	24.88		0.00		24.88		100.0%	
01-1329 · Development Coordinator	5,008.11		12,019.00		-7,010.89		41.7%	
01-1330 · Arbitrage Rebate Fee	0.00		0.00		0.00		0.0%	
01-1331 · Financial Advisory Fees	8.59		0.00		8.59		100.0%	
01-1337 · Lake Maintenance	0.00		50,163.00		-50,163.00		0.0%	
01-1440 · Rents & Leases	3,395.23		2,528.00		867.23		134.3%	
01-1450 · Insurance	6,820.00		11,208.00		-4,388.00		60.8%	
01-1480 · Legal Advertisements	147.92		657.00		-509.08		22.5%	
01-1511 · Bank Fees	0.00		68.00		-68.00		0.0%	
01-1512 · Miscellaneous	1,671.78		0.00		1,671.78		100.0%	
01-1513 · Postage and Delivery	26.25		20.00		6.25		131.3%	
01-1514 · Office Supplies	140.66		253.00		-112.34		55.6%	
01-1516 · Copies	176.04		101.00		75.04		174.3%	
01-1518 · Web Site	312.50		750.00		-437.50		41.7%	
01-1520 · Security	668.84		8,262.00		-7,593.16		8.1%	
01-1540 · Dues, License & Subscriptions	175.00		175.00		0.00		100.0%	
01-1550 · Trustee Fees (GF)	0.00		3,541.00		-3,541.00		0.0%	
01-1606 · BEEP Operations	0.00							
01-1743 · Continuing Disclosure Fee	49.17		590.00		-540.83		8.3%	
01-1801 · Landscaping Maintenance	80,402.39		171,145.00		-90,742.61		47.0%	
01-1802 · Tree/Plant Replacement & Trim	11,803.89		17,705.00		-5,901.11		66.7%	
01-1805 · Stormwater Management (GF)	0.00		1,180.00		-1,180.00		0.0%	
01-1807 · Irrigation Parts & Repair	3,702.34		4,918.00		-1,215.66		75.3%	
01-1808 · Irrigation	12,352.61		29,901.00		-17,548.39		41.3%	
01-1809 · Field Management	16,201.98		38,885.00		-22,683.02		41.7%	
01-1810 · Engineering / Inspections	0.00		19,672.00		-19,672.00		0.0%	
01-1812 · Signage & Amenities Repair	9,874.23		1,967.00		7,907.23		502.0%	
01-1813 · Wetland Upland Maintenance	73.76		0.00		73.76		100.0%	
01-1814 · Electricity	7,139.48		13,770.00		-6,630.52		51.8%	
01-1815 · Miscellaneous Maintenance	340.32		0.00		340.32		100.0%	
01-1816 · Building Maintenance	0.00		59,016.00		-59,016.00		0.0%	
01-1817 · Common Area Maintenance	5,783.85		7,869.00		-2,085.15		73.5%	
01-1818 · Fountain Maintenance & Chemical	2,724.42		5,902.00		-3,177.58		46.2%	
01-1825 · Streetlights	20,476.19		8,852.00		11,624.19		231.3%	
01-1829 · Sidewalk Cleaning	2,950.77		5,902.00		-2,951.23		50.0%	
01-1830 · Sidewalk Repair	0.00		8,852.00		-8,852.00		0.0%	
01-1835 · General Reserves	0.00		8,430.00		-8,430.00		0.0%	
Total Expense	201,950.30		530,651.00		-328,700.70		38.1%	
Net Income	255,222.12		0.00		255,222.12		100.0%	

03/29/23	Balance Sheet
Accrual Basis	As of February 28, 2023

Feb 28, 23
ASSETS
Current Assets
Checking/Savings		
01-1000 · Valley National 1238	16,796.40	
Total Checking/Savings	16,796.40	
Other Current Assets		
01-1210 · Due from CDD1
01-1211 · Due From CDD1 - Spikerush	
9,742.24	
01-1210 · Due from CDD1 - Other	274,612.56	
Total 01-1210 · Due from CDD1	
284,354.80	
Total Other Current Assets	284,354.80	
Total Current Assets	301,151.20	
TOTAL ASSETS	301,151.20	
LIABILITIES & EQUITY		
Equity
30000 · Opening Balance Equity	
970.27	
99-9999 · Retained Earnings	44,958.81	
Net Income	255,222.12	
Total Equity	301,151.20	
TOTAL LIABILITIES & EQUITY	301,151.20	

03/29/23	Profit & Loss Budget vs. Actual
Accrual Basis	October 2022 through February 2023

	Oct '22 - Feb 23		Budget		$ Over Budget		% of Budget	
Income
01-3100 · Assessments	
176,432.45		
186,830.00		
-10,397.55		
94.4%	
01-3810 · Debt Assessment	0.00		116,888.00		-116,888.00		0.0%	
01-3820 · Debt Assess-Paid To Trustee	0.00		-107,537.00		107,537.00		0.0%	
01-3830 · Assessment Fees	-19,967.11		-9,362.00		-10,605.11		213.3%	
01-3831 · Assessment Discounts	-19,092.68		-9,362.00		-9,730.68		203.9%	
01-9405 · Stormwater Fees	21,292.84		21,261.00		31.84		100.1%	
01-9410 · Interest Income (GF)	69.21		0.00		69.21		100.0%	
Total Income	158,734.71		198,718.00		-39,983.29		79.9%	
Expense
01-1308 · Dissemination Agent	
0.00		
51.00		
-51.00		
0.0%	
01-1310 · Engineering	2,945.88		6,570.00		-3,624.12		44.8%	
01-1311 · Management Fees	5,264.44		12,635.00		-7,370.56		41.7%	
01-1315 · Legal Fees	1,857.24		10,511.00		-8,653.76		17.7%	
01-1317 · Travel and Per Diem	66.74		131.00		-64.26		50.9%	
01-1318 · Assessment/Tax Roll	0.00		1,314.00		-1,314.00		0.0%	
01-1320 · Audit Fees	0.00		5,500.00		-5,500.00		0.0%	
01-1321 · Field Management	2,122.53		5,094.00		-2,971.47		41.7%	
01-1325 · Supervisor Fees	1,580.00		6,480.00		-4,900.00		24.4%	
01-1326 · Payroll Taxes - Supervisors	120.87		0.00		120.87		100.0%	
01-1327 · Payroll Fees - Supervisors	24.88		0.00		24.88		100.0%	
01-1330 · Arbitrage Rebate Fee	0.00		0.00		0.00		0.0%	
01-1331 · Financial Advisory Fees	11.16		0.00		11.16		100.0%	
01-1332 · Development Coordinator	656.08		1,575.00		-918.92		41.7%	
01-1440 · Rents & Leases	4,412.31		3,285.00		1,127.31		134.3%	
01-1450 · Insurance	6,134.00		14,566.00		-8,432.00		42.1%	
01-1480 · Legal Advertisements	192.24		854.00		-661.76		22.5%	
01-1511 · Bank Fees	0.00		88.00		-88.00		0.0%	
01-1512 · Miscellaneous	2,172.59		0.00		2,172.59		100.0%	
01-1513 · Postage and Delivery	34.12		26.00		8.12		131.2%	
01-1514 · Office Supplies	182.80		328.00		-145.20		55.7%	
01-1516 · Copies	228.77		131.00		97.77		174.6%	
01-1518 · Web Site	312.50		750.00		-437.50		41.7%	
01-1520 · Security	87.62		1,082.00		-994.38		8.1%	
01-1540 · Dues, License & Subscriptions	175.00		175.00		0.00		100.0%	
01-1550 · Trustee Fees (GF)	0.00		464.00		-464.00		0.0%	
01-1606 · BEEP Operations	18,160.70		69,678.00		-51,517.30		26.1%	
01-1743 · Continuing Disclosure Fee	6.44		77.00		-70.56		8.4%	
01-1801 · Landscaping Maintenance	10,533.06		22,421.00		-11,887.94		47.0%	
01-1802 · Tree/Plant Replacement & Trim	1,546.36		2,319.00		-772.64		66.7%	
01-1805 · Stormwater Management (GF)	0.00		155.00		-155.00		0.0%	
01-1807 · Irrigation Parts & Repair	485.02		644.00		-158.98		75.3%	
01-1808 · Irrigation	1,618.24		3,917.00		-2,298.76		41.3%	
01-1810 · Engineering / Inspections	0.00		2,577.00		-2,577.00		0.0%	
01-1812 · Signage & Amenities Repair	1,293.56		258.00		1,035.56		501.4%	
01-1813 · Wetland Upland Maintenance	9.65		0.00		9.65		100.0%	
01-1814 · Electricity	935.30		1,804.00		-868.70		51.8%	
01-1815 · Miscellaneous Maintenance	44.58		0.00		44.58		100.0%	
01-1816 · Building Maintenance	0.00		7,731.00		-7,731.00		0.0%	
01-1817 · Common Area Maintenance	757.71		1,031.00		-273.29		73.5%	
01-1818 · Fountain Maintenance & Chemical	356.91		773.00		-416.09		46.2%	
01-1825 · Lake Maintenance	767.26		6,572.00		-5,804.74		11.7%	
01-1826 · Streetlights	1,915.20		1,160.00		755.20		165.1%	
01-1829 · Sidewalk Cleaning	386.56		773.00		-386.44		50.0%	
01-1830 · Sidewalk Repair	0.00		1,160.00		-1,160.00		0.0%	
01-1835 · General Reserves	0.00		4,058.00		-4,058.00		0.0%	
Total Expense	67,398.32		198,718.00		-131,319.68		33.9%	
Net Income	91,336.39		0.00		91,336.39		100.0%	

03/29/23	Balance Sheet
Accrual Basis	As of February 28, 2023

Feb 28, 23
ASSETS
Current Assets
Checking/Savings		
01-1000 · Valley National 1246	4,906.44	
Total Checking/Savings	4,906.44	
Other Current Assets		
01-1210 · Due from CDD1	90,004.98	
Total Other Current Assets	90,004.98	
Total Current Assets	94,911.42	
TOTAL ASSETS	94,911.42	
LIABILITIES & EQUITY		
Equity
99-9999 · Retained Earnings	
3,575.03	
Net Income	91,336.39	
Total Equity	94,911.42	
TOTAL LIABILITIES & EQUITY	94,911.42	

03/29/23	Profit & Loss Budget vs. Actual
Accrual Basis	October 2022 through February 2023

	Oct '22 - Feb 23		Budget		$ Over Budget		% of Budget	
Income
01-3100 · Assessments	
187,072.91		
103,859.00		
83,213.91		
180.1%	
01-3830 · Assessment Fees	-21,683.02		-2,188.00		-19,495.02		991.0%	
01-3831 · Assessment Discounts	-20,653.37		-2,188.00		-18,465.37		943.9%	
01-9410 · Interest Income (GF)	59.19		0.00		59.19		100.0%	
Total Income	144,795.71		99,483.00		45,312.71		145.5%	
Expense
01-1310 · Engineering	
268.41		
4,636.00		
-4,367.59		
5.8%	
01-1311 · Management Fees	1,485.94		8,916.00		-7,430.06		16.7%	
01-1315 · Legal Fees	756.56		7,417.00		-6,660.44		10.2%	
01-1317 · Travel and Per Diem	5.74		93.00		-87.26		6.2%	
01-1318 · Assessment/Tax Roll	0.00		927.00		-927.00		0.0%	
01-1320 · Audit Fees	0.00		5,000.00		-5,000.00		0.0%	
01-1325 · Supervisor Fees	1,725.75		6,480.00		-4,754.25		26.6%	
01-1331 · Financial Advisory Fees	0.00		0.00		0.00		0.0%	
01-1440 · Rents & Leases	1,319.42		2,318.00		-998.58		56.9%	
01-1450 · Insurance	0.00		10,278.00		-10,278.00		0.0%	
01-1480 · Legal Advertisements	108.70		603.00		-494.30		18.0%	
01-1511 · Bank Fees	0.00		62.00		-62.00		0.0%	
01-1512 · Miscellaneous	0.00		0.00		0.00		0.0%	
01-1513 · Postage and Delivery	17.29		19.00		-1.71		91.0%	
01-1514 · Office Supplies	34.00		232.00		-198.00		14.7%	
01-1516 · Copies	14.77		93.00		-78.23		15.9%	
01-1518 · Web Site	125.00		750.00		-625.00		16.7%	
01-1540 · Dues, License & Subscriptions	0.00		175.00		-175.00		0.0%	
01-1743 · Continuing Disclosure Fee	0.00							
01-1820 · TIM Operations	1,429.23		49,168.00		-47,738.77		2.9%	
01-1835 · General Reserves	0.00		2,316.00		-2,316.00		0.0%	
Total Expense	7,290.81		99,483.00		-92,192.19		7.3%	
Net Income	137,504.90		0.00		137,504.90		100.0%	

03/29/23	Balance Sheet
Accrual Basis	As of February 28, 2023

Feb 28, 23
ASSETS
Current Assets
Checking/Savings		
01-1000 · Valley National 1254	4,195.70	
Total Checking/Savings	4,195.70	
Other Current Assets		
01-1210 · Due from CDD1	106,338.51	
Total Other Current Assets	106,338.51	
Total Current Assets	110,534.21	
TOTAL ASSETS	110,534.21	
LIABILITIES & EQUITY		
Equity
99-9999 · Retained Earnings	
-26,970.69	
Net Income	137,504.90	
Total Equity	110,534.21	
TOTAL LIABILITIES & EQUITY	110,534.21	

03/29/23	Profit & Loss Budget vs. Actual
Accrual Basis	October 2022 through February 2023

	Oct '22 - Feb 23		Budget		$ Over Budget		% of Budget	
Income
01-3100 · Assessments	
65,973.06		
69,861.00		
-3,887.94		
94.4%	
01-3830 · Assessment Fees	-7,466.27		-1,568.00		-5,898.27		476.2%	
01-3831 · Assessment Discounts	-7,139.28		-1,568.00		-5,571.28		455.3%	
01-9410 · Interest Income (GF)	55.87		0.00		55.87		100.0%	
Total Income	51,423.38		66,725.00		-15,301.62		77.1%	
Expense
01-1310 · Engineering	
1,296.74		
2,889.00		
-1,592.26		
44.9%	
01-1311 · Management Fees	2,317.34		5,562.00		-3,244.66		41.7%	
01-1315 · Legal Fees	817.53		4,627.00		-3,809.47		17.7%	
01-1317 · Travel and Per Diem	29.38		58.00		-28.62		50.7%	
01-1318 · Assessment/Tax Roll	0.00		578.00		-578.00		0.0%	
01-1320 · Audit Fees	0.00		5,000.00		-5,000.00		0.0%	
01-1325 · Supervisor Fees	1,725.75		6,480.00		-4,754.25		26.6%	
01-1331 · Financial Advisory Fees	4.91		0.00		4.91		100.0%	
01-1440 · Rents & Leases	1,942.25		1,446.00		496.25		134.3%	
01-1450 · Insurance	6,134.00		6,412.00		-278.00		95.7%	
01-1480 · Legal Advertisements	84.62		376.00		-291.38		22.5%	
01-1511 · Bank Fees	0.00		39.00		-39.00		0.0%	
01-1512 · Miscellaneous	956.35		0.00		956.35		100.0%	
01-1513 · Postage and Delivery	15.02		12.00		3.02		125.2%	
01-1514 · Office Supplies	80.46		145.00		-64.54		55.5%	
01-1516 · Copies	100.70		58.00		42.70		173.6%	
01-1518 · Web Site	312.50		750.00		-437.50		41.7%	
01-1540 · Dues, License & Subscriptions	175.00		175.00		0.00		100.0%	
01-1550 · Trustee Fees (GF)	0.00		0.00		0.00		0.0%	
01-1743 · Continuing Disclosure Fee	0.00		0.00		0.00		0.0%	
01-1820 · TIM Operations	7,994.11		30,672.00		-22,677.89		26.1%	
01-1835 · General Reserves	0.00		1,446.00		-1,446.00		0.0%	
Total Expense	23,986.66		66,725.00		-42,738.34		35.9%	
Net Income	27,436.72		0.00		27,436.72		100.0%	

03/29/23	Balance Sheet
Accrual Basis	As of February 28, 2023

Feb 28, 23
ASSETS
Current Assets
Checking/Savings		
01-1000 · Valley National 1262	3,960.01	
Total Checking/Savings	3,960.01	
Other Current Assets		
01-1210 · Due from CDD1	9,913.85	
Total Other Current Assets	9,913.85	
Total Current Assets	13,873.86	
TOTAL ASSETS	13,873.86	
LIABILITIES & EQUITY		
Equity
99-9999 · Retained Earnings	
-13,562.86	
Net Income	27,436.72	
Total Equity	13,873.86	
TOTAL LIABILITIES & EQUITY	13,873.86	

03/29/23	Profit & Loss Budget vs. Actual
Accrual Basis	October 2022 through February 2023

	Oct '22 - Feb 23		Budget		$ Over Budget		% of Budget	
Income
01-3100 · Assessments	
312,567.70		
330,987.00		
-18,419.30		
94.4%	
01-3810 · Debt Assessment	0.00		1,057,041.00		-1,057,041.00		0.0%	
01-3820 · Debt Assess-Paid To Trustee	0.00		-972,478.00		972,478.00		0.0%	
01-3830 · Assessment Fees	-35,373.73		-50,398.00		15,024.27		70.2%	
01-3831 · Assessment Discounts	-33,824.58		-50,398.00		16,573.42		67.1%	
01-9405 · Stormwater Fees	38,824.07		38,766.00		58.07		100.1%	
01-9410 · Interest Income (GF)	78.38		0.00		78.38		100.0%	
Total Income	282,271.84		353,520.00		-71,248.16		79.8%	
Expense
01-1308 · Dissemination Agent	
0.00		
94.00		
-94.00		
0.0%	
01-1310 · Engineering	5,414.64		12,075.00		-6,660.36		44.8%	
01-1311 · Management Fees	9,676.24		23,223.00		-13,546.76		41.7%	
01-1315 · Legal Fees	3,413.67		19,320.00		-15,906.33		17.7%	
01-1317 · Travel and Per Diem	122.68		242.00		-119.32		50.7%	
01-1318 · Assessment/Tax Roll	0.00		2,415.00		-2,415.00		0.0%	
01-1320 · Audit Fees	0.00		5,500.00		-5,500.00		0.0%	
01-1325 · Supervisor Fees	1,725.75		6,480.00		-4,754.25		26.6%	
01-1331 · Financial Advisory Fees	20.52		0.00		20.52		100.0%	
01-1332 · Development Coordinator	1,196.26		2,871.00		-1,674.74		41.7%	
01-1440 · Rents & Leases	8,110.00		6,037.00		2,073.00		134.3%	
01-1450 · Insurance	6,134.00		26,773.00		-20,639.00		22.9%	
01-1480 · Legal Advertisements	353.35		1,570.00		-1,216.65		22.5%	
01-1511 · Bank Fees	0.00		162.00		-162.00		0.0%	
01-1512 · Miscellaneous	3,993.31		0.00		3,993.31		100.0%	
01-1513 · Postage and Delivery	62.72		48.00		14.72		130.7%	
01-1514 · Office Supplies	335.99		604.00		-268.01		55.6%	
01-1515 · Telephone	0.00		0.00		0.00		0.0%	
01-1516 · Copies	420.50		242.00		178.50		173.8%	
01-1518 · Web Site	312.50		750.00		-437.50		41.7%	
01-1520 · Security	159.76		1,974.00		-1,814.24		8.1%	
01-1540 · Dues, License & Subscriptions	175.00		175.00		0.00		100.0%	
01-1550 · Trustee Fees (GF)	0.00		846.00		-846.00		0.0%	
01-1743 · Continuing Disclosure Fee	11.74		141.00		-129.26		8.3%	
01-1801 · Landscaping Maintenance	19,205.28		40,881.00		-21,675.72		47.0%	
01-1802 · Tree/Plant Replacement & Trim	2,819.53		4,229.00		-1,409.47		66.7%	
01-1805 · Stormwater Management (GF)	0.00		282.00		-282.00		0.0%	
01-1806 · Lake Maintenance	1,398.97		11,982.00		-10,583.03		11.7%	
01-1807 · Irrigation Parts & Repair	884.35		1,175.00		-290.65		75.3%	
01-1808 · Irrigation	2,950.60		7,142.00		-4,191.40		41.3%	
01-1809 · Field Management	3,870.08		9,288.00		-5,417.92		41.7%	
01-1810 · Engineering / Inspections	0.00		4,699.00		-4,699.00		0.0%	
01-1812 · Signage & Amenities Repair	2,358.60		470.00		1,888.60		501.8%	
01-1813 · Wetland Upland Maintenance	17.61		0.00		17.61		100.0%	
01-1814 · Electricity	1,705.37		3,289.00		-1,583.63		51.9%	
01-1815 · Miscellaneous Maintenance	81.29		0.00		81.29		100.0%	
01-1816 · Building Maintenance	0.00		14,097.00		-14,097.00		0.0%	
01-1817 · Common Area Maintenance	1,381.55		1,880.00		-498.45		73.5%	
01-1818 · Fountain Maintenance & Chemical	650.76		1,410.00		-759.24		46.2%	
01-1825 · TIM Operations	33,380.06		128,071.00		-94,690.94		26.1%	
01-1826 · Sidewalk Cleaning	704.83		1,410.00		-705.17		50.0%	
01-1827 · Sidewalk Repair	0.00		2,110.00		-2,110.00		0.0%	
01-1828 · Streetlights	3,492.06		2,115.00		1,377.06		165.1%	
01-1835 · General Reserves	0.00		7,448.00		-7,448.00		0.0%	
Total Expense	116,539.57		353,520.00		-236,980.43		33.0%	
Net Income	165,732.27		0.00		165,732.27		100.0%	

03/29/23	Balance Sheet
Accrual Basis	As of February 28, 2023

Feb 28, 23
ASSETS
Current Assets
Checking/Savings		
01-1000 · Valley National 1165	5,556.12	
Total Checking/Savings	5,556.12	
Other Current Assets		
01-1210 · Due from CDD1	96,537.35	
Total Other Current Assets	96,537.35	
Total Current Assets	102,093.47	
TOTAL ASSETS	102,093.47	
LIABILITIES & EQUITY		
Equity
99-9999 · Retained Earnings	
-63,638.80	
Net Income	165,732.27	
Total Equity	102,093.47	
TOTAL LIABILITIES & EQUITY	102,093.47	

03/29/23	Profit & Loss Budget vs. Actual
Accrual Basis	October 2022 through February 2023

Oct '22 - Feb 23	Budget	$ Over Budget	% of Budget
Ordinary Income/Expense Income
01-3300 · Irrigation Revenue	807,829.48		1,650,000.00		-842,170.52		49.0%	
01-3820 · Debt Assess-Paid To Trustee	-153,718.75		-368,325.00		214,606.25		41.7%	
01-9407 · Engineering Revenue Fees	0.00		17,338.00		-17,338.00		0.0%	
01-9410 · Interest Income (GF)	17,327.93		0.00		17,327.93		100.0%	
Total Income	671,438.66		1,299,013.00		-627,574.34		51.7%	
Gross Profit	671,438.66		1,299,013.00		-627,574.34		51.7%	
Expense
01-1310 · Engineering	
19,680.00		
40,000.00		
-20,320.00		
49.2%	
01-1311 · Management Fees	152,809.30		366,742.00		-213,932.70		41.7%	
01-1314 · Professional Fees - Other	6,667.50		5,000.00		1,667.50		133.4%	
01-1316 · Field Supplies (Other)	0.00		2,000.00		-2,000.00		0.0%	
01-1317 · Travel and Per Diem	0.00		400.00		-400.00		0.0%	
01-1318 · Vehicle, Gas & Repair	0.00		1,000.00		-1,000.00		0.0%	
01-1319 · Water	92.18		170.00		-77.82		54.2%	
01-1320 · General Repair & Maintenance	127,258.84		153,000.00		-25,741.16		83.2%	
01-1321 · HVAC	0.00		4,500.00		-4,500.00		0.0%	
01-1322 · Other Utlities	0.00		1,550.00		-1,550.00		0.0%	
01-1324 · Development Coordinator	25,458.30		61,100.00		-35,641.70		41.7%	
01-1332 · Bad Debt	0.00		65,000.00		-65,000.00		0.0%	
01-1335 · City Franchise Fee	78,699.58		109,421.00		-30,721.42		71.9%	
01-1450 · Insurance	0.00		21,102.00		-21,102.00		0.0%	
01-1511 · Bank Fees	0.00		1,250.00		-1,250.00		0.0%	
01-1512 · Miscellaneous	2,029.75		0.00		2,029.75		100.0%	
01-1513 · Postage and Delivery	60.70		253.00		-192.30		24.0%	
01-1514 · Office Supplies	0.00		249.00		-249.00		0.0%	
01-1515 · Telephone	0.00		1,930.00		-1,930.00		0.0%	
01-1516 · Copies	502.95		0.00		502.95		100.0%	
01-1540 · Dues, License & Subscriptions	0.00		2,300.00		-2,300.00		0.0%	
01-1550 · Trustee Fees (GF)	0.00		5,000.00		-5,000.00		0.0%	
01-1744 · Lake Maintenance	735.00		0.00		735.00		100.0%	
01-1801 · Landscaping Maintenance	0.00		11,000.00		-11,000.00		0.0%	
01-1808 · Irrigation Maintenance	514.40		0.00		514.40		100.0%	
01-1814 · Electricity	51,613.24		105,000.00		-53,386.76		49.2%	
01-1820 · Contingency	0.00		26,046.00		-26,046.00		0.0%	
01-1825 · Renewal and Replacement	0.00		200,000.00		-200,000.00		0.0%	
01-1826 · Other System Improvements	0.00		75,000.00		-75,000.00		0.0%	
01-1827 · Operating Reserves/Misc	0.00		40,000.00		-40,000.00		0.0%	
Total Expense	466,121.74		1,299,013.00		-832,891.26		35.9%	
Net Ordinary Income	205,316.92		0.00		205,316.92		100.0%	
Net Income	205,316.92		0.00		205,316.92		100.0%	

Feb 28, 23
ASSETS
Current Assets Checking/Savings
01-1001 · Valley National #4703		
01-1002 · Valley Natl #4307 - Capacity	35,872.57	
01-1001 · Valley National #4703 - Other	1,252,977.19	
Total 01-1001 · Valley National #4703	
1,288,849.76	
Total Checking/Savings	1,288,849.76	
Accounts Receivable		
01-1200 · Accounts Receivable	258,314.00	
Total Accounts Receivable	258,314.00	
Other Current Assets		
01-1201 · Accounts Receivable Prior Mgr B	-1,519.02	
01-2023 · Due From Other Funds	17,900.21	
01-2031 · Construction WIP - Del Webb Exp	11,616.25	
Total Other Current Assets	27,997.44	
Total Current Assets	1,575,161.20	
Fixed Assets		
01-2030 · Equipment and Furniture	23,957.00	
Total Fixed Assets	23,957.00	
Other Assets		
01-2025 · Deposits	95.00	
01-2035 · Accum Depr - Equipment	-19,492.18	
01-2045 · Pulte Del Webb Expansion	-29,920.90	
Total Other Assets	-49,318.08	
TOTAL ASSETS	1,549,800.12	
LIABILITIES & EQUITY		
Liabilities
Current Liabilities Accounts Payable
01-2020 · Accounts Payable	

67,196.42	
Total Accounts Payable	67,196.42	
Other Current Liabilities		
01-2021 · Accounts Payable (Prior Mgr)	26.02	
01-2024 · Due to Other Funds	20,032.00	
01-2026 · Deposits - Security Deposit	1,390.22	
01-2027 · Deferred Revenue	10,000.00	
Total Other Current Liabilities	31,448.24	
Total Current Liabilities	98,644.66	
Long Term Liabilities		
01-2022 · Revenue Bonds Payable - Long T	170,096.00	
11-2180 · Note Payable	135,470.00	
Total Long Term Liabilities	305,566.00	
Total Liabilities	404,210.66	
Equity		
30000 · Net Assets - 270	-87,351.52	
99-9999 · Retained Earnings	1,027,624.06	
Net Income	205,316.92	
Total Equity	1,145,589.46	

Feb 28, 23
TOTAL LIABILITIES & EQUITY	1,549,800.12

03/29/23	A/R Aging Summary
As of February 28, 2023

	Current		1 - 30		31 - 60		61 - 90		> 90		TOTAL	
A-N-D Family Real Estate, LLC	0.00		136.74		0.00		0.00		0.00		136.74	
Ardie R. Copas, State Veterans Nursing	0.00		1,024.59		0.00		0.00		0.00		1,024.59	
Baron Shoppes Tradition, LLC	0.00		190.25		0.00		0.00		0.00		190.25	
Bedford Park	0.00		8,866.57		0.00		0.00		8,866.57		17,733.14	
Brennity at Tradition	0.00		3,051.97		0.00		0.00		0.00		3,051.97	
Cellular Sales of Northern Florida LLC	0.00		86.41		0.00		0.00		0.00		86.41	
Chesterbrook Academy	0.00		134.37		0.00		0.00		0.00		134.37	
Cleveland Clinic Florida	0.00		443.92		443.92		443.92		4,439.20		5,770.96	
Cleveland Clinic Martin Health -Tradition	0.00		64.80		64.80		0.00		324.00		453.60	
Culver's - G&S Family Hospitality Svcs	0.00		73.33		0.00		0.00		0.00		73.33	
Del Webb at Tradition Homeowners Assoc	0.00		3,519.15		3,519.15		3,519.15		7,038.30		17,595.75	
Estates at Tradition	0.00		5,763.07		5,763.07		5,763.07		0.00		17,289.21	
Florida International University	0.00		1,091.97		1,091.97		1,091.97		7,643.79		10,919.70	
Grande Palms at Tradition I & II	0.00		879.92		879.92		0.00		1,759.84		3,519.68	
Grande Palms at Tradition III	0.00		1,708.31		1,708.31		0.00		0.00		3,416.62	
Heartland Dental	0.00		-31.71		0.00		0.00		0.00		-31.71	
Heritage Oaks	0.00		0.00		0.00		0.00		0.00		0.00	
Heritage Oaks at Tradition HOA	0.00		11,857.11		0.00		0.00		0.00		11,857.11	
Heron Preserves	0.00		1,184.18		1,184.18		0.00		2,145.71		4,514.07	
Hilton - Homewood Suites, PSL	0.00		346.82		346.82		0.00		0.00		693.64	
Innovation Plaza	0.00		119.30		0.00		0.00		0.00		119.30	
Innovo Development Group, LLC	0.00		188.27		0.00		0.00		0.00		188.27	
Kite Realty Group	0.00		2,815.73		0.00		0.00		0.00		2,815.73	
Manderlie at Tradition	0.00		5,938.66		0.00		0.00		0.00		5,938.66	
Martin Health System	0.00		921.54		921.54		921.54		5,529.24		8,293.86	
O & A Florida Investments, LLC	0.00		52.91		0.00		0.00		0.00		52.91	
Panaderias, LLC	0.00		97.11		0.00		0.00		0.00		97.11	
Panda Restaurant Group Inc	0.00		57.27		57.27		0.00		0.00		114.54	
PDQ	0.00		53.31		0.00		0.00		0.00		53.31	
Pegasus PSL, Ltd	0.00		283.40		0.00		0.00		0.00		283.40	
PRIME STORAGE TRADITIONS, LLC	0.00		182.33		0.00		0.00		0.00		182.33	
Promenade at Tradition Community Assoc	0.00		467.70		0.00		0.00		0.00		467.70	
PSL Hospitality, LLP	0.00		253.87		0.00		0.00		0.00		253.87	
RDP II LLC	0.00		0.00		0.00		0.00		88.09		88.09	
Recovery Sports Grill	0.00		75.31		75.31		0.00		0.01		150.63	
Renaissance CS at Tradition	0.00		768.94		768.94		768.94		3,075.76		5,382.58	
Seven Restaurants, LLC	0.00		89.18		89.18		89.18		0.00		267.54	
SG Mini Golf	0.00		158.54		0.00		0.00		0.00		158.54	
South Florida Orthopedic	0.00		178.36		0.00		0.00		0.00		178.36	
Springs at Tradition	0.00		1,789.57		0.00		0.00		0.00		1,789.57	
St Lucie County Fire Dept.	0.00		223.94		0.00		0.00		0.00		223.94	
St Lucie County Tax Collector	0.00		406.27		0.00		0.00		0.00		406.27	
Target Corp.	0.00		409.84		0.00		0.00		0.00		409.84	
TH PSL Village Parkway LLC	0.00		89.18		89.18		89.18		89.18		356.72	
The Lakes at Tradition	0.00		17,641.98		0.00		0.00		0.00		17,641.98	
The Preserves Phase I & II	0.00		933.43		933.43		933.43		0.00		2,800.29	
Town Park Master Assoc., Inc.	0.00		26,506.58		0.00		0.00		0.00		26,506.58	
Tradition HOA	0.00		1,898.56		0.00		0.00		0.00		1,898.56	
Tradition POA	0.00		229.89		0.00		0.00		0.00		229.89	
Treasure Coast Physicians Properties, LLC	0.00		6.54		0.00		0.00		0.00		6.54	
Truist Bank	0.00		91.16		0.00		0.00		0.00		91.16	
Victoria Parc	0.00		0.00		0.00		0.00		297.64		297.64	
Victoria Parc 2	0.00		0.00		0.00		0.00		184.10		184.10	
Victoria Parc at Tradition HOA	0.00		6,312.03		6,312.03		0.00		31,560.15		44,184.21	
Vitalia at Tradition	0.00		37,243.77		0.00		0.00		0.00		37,243.77	
Wawa, Inc.	0.00		95.92		95.92		0.00		94.74		286.58	
Westcliffe Estates HOA	0.00		120.10		120.10		0.00		0.00		240.20	
TOTAL	0.00		147,092.26		24,465.04		13,620.38		73,136.32		258,314.00