1. Lake Ashton and Lake Ashton II Community Development Districts CDD ORIENTATION CLASS February 28, 2011

2. 2 Introductions Staff Staff Residents Residents

3. 3 Background CDDs Created CDDs Created Lake Ashton (Established 08/01/2000) Lake Ashton (Established 08/01/2000) Lake Ashton II (Established 03/04/2005) Lake Ashton II (Established 03/04/2005)

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5. 5 What is a CDD? Special Purpose District created under Chapter 190, Florida Statutes Special Purpose District created under Chapter 190, Florida Statutes CDDs have limited powers which are defined in Chapter 190. CDDs have limited powers which are defined in Chapter 190. Subject to Government in the Sunshine and Ethics Laws Subject to Government in the Sunshine and Ethics Laws Subject to public records laws Subject to public records laws

6. 6 What is a CDD? (cont.) Must adopt annual budgets in accordance with Florida Statutes and the Truth in Millage Act. Must adopt annual budgets in accordance with Florida Statutes and the Truth in Millage Act. Required to have an annual independent audit Required to have an annual independent audit Disclosure requirements Disclosure requirements Chapter 190 requires that the following language be inserted in the sales contract in bold conspicuous type immediately preceding the signature: Chapter 190 requires that the following language be inserted in the sales contract in bold conspicuous type immediately preceding the signature: "THE (Name of District) COMMUNITY DEVELOPMENT DISTRICT MAY IMPOSE AND LEVY TAXES OR ASSESSMENTS, OR BOTH TAXES AND ASSESSMENTS, ON THIS PROPERTY. THESE TAXES AND ASSESSMENTS PAY THE CONSTRUCTION, OPERATION, AND MAINTENANCE COSTS OF CERTAIN PUBLIC FACILITIES AND SERVICES OF THE DISTRICT AND ARE SET ANNUALLY BY THE GOVERNING BOARD OF THE DISTRICT. THESE TAXES AND ASSESSMENTS ARE IN ADDITION TO COUNTY AND OTHER LOCAL GOVERNMENTAL TAXES AND ASSESSMENTS AND ALL OTHER TAXES AND ASSESSMENTS PROVIDED FOR BY LAW."

7. 7 Public Roads Public Roads In-Tract & Major Arterial In-Tract & Major Arterial Street Lights Street Lights Traffic Signals Traffic Signals Water and Sewer Facilities Water and Sewer Facilities Stormwater Management Stormwater Management Landscaping Landscaping Wetlands Mitigation Wetlands Mitigation Remediation/Environ. Cleanup Remediation/Environ. Cleanup Amenities Amenities Parks Parks Recreation Centers Recreation Centers Golf Courses Golf Courses Tennis Courts Tennis Courts Offsite Improvements Offsite Improvements Purchase of Land For Public Improvements Purchase of Land For Public Improvements Professional Fees Professional Fees Public Facilities Public Facilities School Buildings School Buildings Transit Shelters Transit Shelters Parking Structures Parking Structures Fire Stations Fire Stations Conservation / Mitigation Areas Conservation / Mitigation Areas Security Security Waste collection and disposal Waste collection and disposal Government Mandated Projects Government Mandated Projects Under Chapter 190 (Florida Statute), CDDs have the power to: “... finance, fund, plan, establish, acquire, construct or reconstruct, enlarge, or extend, equip, operate, and maintain systems, facilities and basic infrastructures for the following,” What is a CDD? (cont.)

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9. 9 How are CDDs established? A petition is filed with the City, County or State A petition is filed with the City, County or State Petition includes: Petition includes: metes & bounds description metes & bounds description written consent by all landowners written consent by all landowners designations of persons to be Board of Supervisors designations of persons to be Board of Supervisors proposed name of the district proposed name of the district map of proposed district map of proposed district a statement of estimated regulatory costs a statement of estimated regulatory costs filing fee filing fee mandatory public hearing mandatory public hearing

10. 10 How are CDDs governed? Five (5) member board of supervisors Five (5) member board of supervisors Initially elected by landowners Initially elected by landowners One vote per acre or part thereof One vote per acre or part thereof Planned transition to qualified elector Planned transition to qualified elector When a CDD reaches year 6 and has at least 250 registered voters 2 seats transition to residents through general election. In year 8, 2 additional seats transition and in year 10 the last seat transitions. When a CDD reaches year 6 and has at least 250 registered voters 2 seats transition to residents through general election. In year 8, 2 additional seats transition and in year 10 the last seat transitions.

11. 11 How are CDDs Financed? What are assessments? What are assessments? Based on benefit to the property not value Based on benefit to the property not value Two statutory requirements for assessments: Two statutory requirements for assessments: Assessed properties must receive a special benefit from the improvements Assessed properties must receive a special benefit from the improvements Assessments must be allocated fairly and reasonably Assessments must be allocated fairly and reasonably Types of assessments : Types of assessments : Fixed capital component to pay debt service. Fixed capital component to pay debt service. Can Be Pre-Paid At Any Time During Term of the Bond Can Be Pre-Paid At Any Time During Term of the Bond Variable component to pay for operating and maintenance Variable component to pay for operating and maintenance

12. 12 How are CDDs Financed? (cont.) How are assessment rates established? How are assessment rates established? Typically, the bond debt is allocated based on the number of assessable acres within the CDD. Then, when the property is platted it is converted to a per lot basis. Typically, the bond debt is allocated based on the number of assessable acres within the CDD. Then, when the property is platted it is converted to a per lot basis. The O&M assessment is allocated on the same basis. The O&M assessment is allocated on the same basis.

13. 13 Why a CDD? Tool for continuity in the community Tool for continuity in the community Provides reliance and perpetuity Provides reliance and perpetuity Tax exempt financing and purchasing Tax exempt financing and purchasing Sole purpose is to provide services Sole purpose is to provide services Governmental checks and balances Governmental checks and balances Bidding requirements Bidding requirements Audit Requirement Audit Requirement Etc. Etc.

14. 14 CDDs versus HOAs CDDs CDDs Provide public infrastructure and services Provide public infrastructure and services Construct, acquire and maintain assets Construct, acquire and maintain assets Better Collection and Enforcement Better Collection and Enforcement Sovereign Immunity Sovereign Immunity HOAs HOAs Serve individual communities with private or limited use facilities and amenities Serve individual communities with private or limited use facilities and amenities Provides for enforcement of CC&Rs and ARC Provides for enforcement of CC&Rs and ARC

15. 15 Lake Ashton Created on August 01, 2000 by Polk County Ordinance Created on August 01, 2000 by Polk County Ordinance Consists of approximately 772 acres and 986 units Consists of approximately 772 acres and 986 units General Fund Budget of $1,792,796 (FY 11) General Fund Budget of $1,792,796 (FY 11) O&M Assessment of $1,788.26 per lot (FY 11) O&M Assessment of $1,788.26 per lot (FY 11) Annual Debt Service Assessment of $707.53- $1,263.44 Annual Debt Service Assessment of $707.53- $1,263.44

16. Lake Ashton – 2001, 2003, & 2005 Bonds 16 Master Construction Costs$19,079,518 Subdivision Improvements Phase 1, 2, & 4$5,650,010 Phase 3$2,182,200 Phase 5 and 6$3,740,491 Grand Total$30,652,219

17. 17 Lake Ashton - Series 2001 Bonds 30 year fixed term 30 year fixed term Interest rate of 7.40% Interest rate of 7.40% Par Debt Amount of $19.075 million Par Debt Amount of $19.075 million $8.39 M – A Bonds $8.39 M – A Bonds $15.185 M – B Bonds $15.185 M – B Bonds Lake Ashton - Series 2003 Bonds 30 year fixed term 30 year fixed term Interest rate of 6.50% Interest rate of 6.50% Par Debt Amount of $7.55 million Par Debt Amount of $7.55 million  $2.53 M - A Bonds  $5.02 M – B Bonds

18. 30 year fixed term 30 year fixed term Interest rate of 5.60% Interest rate of 5.60% Par Debt Amount of $4.44 million Par Debt Amount of $4.44 million  $930 K - A Bonds  $3.51 M – B Bonds 18 Lake Ashton - Series 2005 Bonds

19. 19 Lake Aston II Created on March 4, 2005 by Polk County Ordinance No. 05-006 Created on March 4, 2005 by Polk County Ordinance No. 05-006 Consists of approximately 516 acres and 718 units Consists of approximately 516 acres and 718 units General Fund Budget of $1,211,800 (FY 11) General Fund Budget of $1,211,800 (FY 11) O&M Assessment of $1,700.00 per lot (FY 11) O&M Assessment of $1,700.00 per lot (FY 11) Annual Debt Service Assessment of $1,263.44 Annual Debt Service Assessment of $1,263.44

20. 20 Lake Ashton II – 2005 and 2006 Bonds Master Construction Costs$20,119,218 Subdivision Improvements Phase 1$7,741,603 Phase 2$9,252,000 Grand Total$37,112,821

21. 21 Lake Ashton II - Series 2005 Bonds 30 year fixed term 30 year fixed term Interest rate of 5.375% Interest rate of 5.375% Par Debt Amount of $22.525 million Par Debt Amount of $22.525 million $7.705 M – A Bonds $7.705 M – A Bonds $14.820 M – B Bonds $14.820 M – B Bonds Lake Ashton II - Series 2006 Bonds 30 year fixed term 30 year fixed term Interest rate of 5.30% Interest rate of 5.30% Par Debt Amount of $25.445 million Par Debt Amount of $25.445 million  $5.025 M - A Bonds  $20.420 M – B Bonds

22. 22 QUESTIONS??