POINCIANA WEST

Community Development District

Annual Operating and Debt Service Budget

Fiscal Year 2018

Version 1 - Final Budget:

(Adopted at July 26, 2017 meeting

Prepared by:

POINCIANA WEST

Community Development District

Table of Contents

		Page #	
OPERATING BUDGET			
General Fund			
Summary of Revenues, Expenditures and Changes in Fund Balances ……………………………..	1 - 2	
Budget Narrative ……………………………………………………………………………………………	3 - 5	
Exhibit A - Allocation of Fund Balances ………………………………………………………………….	6	
DEBT SERVICE BUDGET			
Series 2017			
Summary of Revenues, Expenditures and Changes in Fund Balances ……………………………..	7	
Amortization Schedule ……………………………………………………………………………………..	8	
Budget Narrative …………………………………………………………………………………………………	9 - 10	
SUPPORTING BUDGET SCHEDULES			
Non-Ad Valorem Assessment Summary	………………………………………………………..	11	

Poinciana West

Community Development District

Operating Budget

Fiscal Year 2018

POINCIANA WEST

Community Development District															General Fund	
	Summary of Revenues, Expenditures and Changes in Fund Balances					
				Fiscal Year 2018 Adopted Budget											
							ADOPTED			ACTUAL		PROJECTED			TOTAL			ANNUAL	
				ACTUAL			BUDGET			THRU			JUN		PROJECTED			BUDGET	
	ACCOUNT DESCRIPTION			FY 2016			FY 2017		MAY - 2017			SEP-2017			FY 2017			FY 2018	
	REVENUES																				
	Interest - Investments	$	2,318	$	1,000	$	3,243	$	257	$	3,500	$	3,000		
	Interest - Tax Collector			178			-			468			-			468			-		
	Special Assmnts- Tax Collector			254,328			254,327			254,614			1,510			256,124			309,888		
	Special Assmnts- Other																		-		
	Special Assmnts- Prepayment			-			-			-			-			-			-		
	Special Assmnts- CDD Collected			15,469			15,469			13,817			-			13,817			-		
	Special Assmnts- Discounts			(9,407)			(10,173)			(9,309)			-			(9,309)			(12,396)		
	Other Miscellaneous Revenues			541			-			58			-			58			-		
																					
	TOTAL REVENUES			263,427			260,623			262,891			1,767			264,658			300,492		
	EXPENDITURES																				
	Administrative																				
	P/R-Board of Supervisors			7,000			6,000			12,400			8,000			20,400			6,000		
	FICA Taxes			536			459			949			612			1,561			459		
	ProfServ-Arbitrage Rebate			600			600			600			-			600			600		
	ProfServ-Dissemination Agent			5,000			5,000			-			5,000			5,000			5,000		
	ProfServ-Engineering			15,702			20,000			11,983			8,017			20,000			20,000		
	ProfServ-Legal Services			26,860			50,000			16,027			33,973			50,000			50,000		
	ProfServ-Mgmt Consulting Serv			47,624			49,053			32,702			16,351			49,053			50,525		
	ProfServ-Property Appraiser			2,543			5,087			2,561			-			2,561			6,198		
	ProfServ-Legal Incorporation			4,990			-			-			-			-			-		
	Auditing Services			3,800			4,000			4,000			-			4,000			4,023		
	Postage and Freight			1,294			1,000			1,668			834			2,502			1,000		
	Insurance - General Liability			9,578			10,536			9,894			-			9,894			10,883		
	Printing and Binding			2,619			1,500			3,735			1,867.50			5,603			1,500		
	Legal Advertising			3,360			2,000			11,980			7,500			19,480			2,000		
	Miscellaneous Services			554			636			463			231.50			695			636		
	Misc-Assessmnt Collection Cost			4,357			5,087			4,906			30			4,936			6,198		
	Office Supplies			329			200			517			258.50			776			200		
	Annual District Filing Fee			175			175			175			-			175			175		
																					
	Total Administrative			136,921			161,333			114,560			82,675			197,235			165,397		

Annual Operating and Debt Service Budget	1		
Fiscal Year 2018			

POINCIANA WEST

Community Development District										General Fund	
	Summary of Revenues, Expenditures and Changes in Fund Balances					
			Fiscal Year 2018 Adopted Budget									
					ADOPTED		ACTUAL		PROJECTED		TOTAL			ANNUAL	
			ACTUAL		BUDGET		THRU		JUN		PROJECTED			BUDGET	
	ACCOUNT DESCRIPTION		FY 2016		FY 2017		MAY - 2017		SEP-2017		FY 2017			FY 2018	
	Field															
	ProfServ-Field Management	4,120	4,244	2,829	1,415	4,244	4,371		
	Contracts-Landscape	27,500	27,500	35,130	21,164	56,294	56,294		
	Contracts-Aquatic Midge Mgmt	10,400	10,000	14,666	7,334	22,000	22,000		
	Contracts-Aquatic Weed Control	32,430	32,430	21,620	10,810	32,430	32,430		
	R&M-Renewal and Replacement	-	10,000	-	10,000	10,000	10,000		
	Misc-Contingency		1,350		15,116		10		15,106		15,116		10,000		
	Total Field		75,800		99,290		74,255		65,828		140,083		135,095		
									
	TOTAL EXPENDITURES	212,721	260,623	188,815	148,503	337,318	300,492		
	Excess (deficiency) of revenues															
	Over (under) expenditures		50,706		-		74,076		(146,736)		(72,660)		-		
	Net change in fund balance		50,706		-		74,076		(146,736)		(72,660)		-		
	FUND BALANCE, BEGINNING	541,856	592,562	592,562	-	592,562	519,902		
	FUND BALANCE, ENDING	$   592,562	$   592,562	$   666,638	$  (146,736)	$   519,902	$   519,902		

Annual Operating and Debt Service Budget	2		
Fiscal Year 2018			

POINCIANA WEST

Community Development District	General Fund

Budget Narrative

Fiscal Year 2018

REVENUES

Interest Income (Investments)

The District earns interest income on their checking account and investment accounts.

Special Assessment - Tax Collector

The District will levy a Non-Ad Valorem assessment on all the assessable property within the District in order to pay for the operating expenditures during the fiscal year.

Special Assessment - CDD Collected

The District will bill the developer directly for the unplatted lots.

Special Assessment - Discounts

Per Section 197.162, Florida Statutes, discounts are allowed for early payments. The budgeted amount for the fiscal year is calculated at 4% of the anticipated Non-Ad Valorem assessments.

EXPENDITURES- Administrative

P/R-Board of Supervisors

Chapter 190 of the Florida Statutes allows for members of the Board of Supervisors to be compensated $200 per meeting at which they are in attendance. The amount for the fiscal Year is based upon 6 meetings for the fiscal year.

FICA Taxes

Payroll taxes on Board of Supervisors compensation. The budgeted amount for the fiscal year is calculated at 7.65% of the total Board of Supervisor’s payroll expenditures.

Professional Services - Arbitrage Rebate Calculation

The District will contract with an independent certified public accountant to annually calculate the District's Arbitrage Rebate Liability on the Series of Benefit Special Assessment Bonds. The budgeted amount for the fiscal year is based on standard fees charged for this service.

Professional Services - Dissemination Agent

The District is required by the Securities and Exchange Commission to comply with rule 15c2-12(b)-(5), which relates to additional reporting requirements for unrelated bond issues. The budgeted amount for the fiscal year is based on standard fees charged for this service.

Professional Services - Engineering

The District's engineer will provide general engineering services to the District, i.e. attendance and preparation for Board meetings, review of invoices, and other specifically requested assignments.

Annual Operating and Debt Service Budget	3		
Fiscal Year 2018			

POINCIANA WEST

Community Development District	General Fund

Budget Narrative

Fiscal Year 2018

EXPENDITURES- Administrative (continued)

Professional Services - Legal Services

The District's legal counsel will provide general legal services to the District, i.e. attendance and preparation for Board meetings, review of operating and maintenance contracts, and other specifically requested assignments.

Professional Services - Management Services

The District receives Management, Accounting and Administrative services as part of a Management Agreement with Severn Trent Environmental Services, Inc. The budgeted amount for the fiscal year is based on the contracted fees outlined in Exhibit "A" of the Management Agreement.

Professional Services - Property Appraiser

The Property Appraiser provides the District with a listing of the legal description of each property parcel within the District boundaries, and the names and addresses of the owners of such property. The District reimburses the Property Appraiser for necessary administrative costs incurred to provide this service. Per the Florida Statutes, administrative costs shall include, but not be limited to, those costs associated with personnel, forms, supplies, data processing, computer equipment, postage, and programming. The budgeted amount for the fiscal year is calculated at 2% of the anticipated Non-Ad Valorem assessments.

Auditing Services

The District is required to conduct an annual audit of its financial records by an Independent Certified Public Accounting Firm.

Postage & Freight

Postage and/or freight used for District mailings including agenda packages, vendor checks and other correspondence.

Insurance - General Liability

The District's General Liability & Public Officials Liability Insurance policy is with Public Risk Insurance which specializes in providing insurance coverage to governmental agencies. The budgeted amount for the fiscal year is based on prior year premium plus 10% in order to be conservative.

Printing & Binding

Copies used in the preparation of agenda packages, required mailings, and other special projects.

Legal Advertising

The District is required to advertise various notices for Board meetings and other public hearings in a newspaper of general circulation.

Annual Operating and Debt Service Budget	4		
Fiscal Year 2018			

POINCIANA WEST

Community Development District	General Fund

Budget Narrative

Fiscal Year 2018

EXPENDITURES- Administrative (continued)

Miscellaneous Services

Bank charges incurred through the fiscal year.

Misc. - Assessment Collection Cost

The District reimburses the Tax Collector for her or his necessary administrative costs. Per the Florida Statutes, administrative costs shall include, but not be limited to, those costs associated with personnel, forms, supplies, data processing, computer equipment, postage, and programming. The District also compensates the Tax Collector for the actual cost of collection or 2% on the amount of special assessments collected and remitted, whichever is greater. The fiscal year’s budget for collection costs is based on a maximum of 2% of the anticipated assessment collections.

Office Supplies

Supplies used in the preparation and binding of agenda packages, required mailings, and other special projects.

Annual District Filling Fee

The District is required to pay an annual fee of $175 to the Department of Community affairs.

EXPENDITURES- Field

Professional Services - Field Management

Includes payroll and overhead costs associated with the services being provided under a management consulting contract with Severn Trent Management Services. This includes employees utilized in the field and office management of all District assets.

Contracts - Landscape

The District has a contract with Mainscape for the pond bank maintenance. The monthly amount of the contract is $4,691.16.

Contracts - Aquatic Midge Management

The District has contract Clarke Environmental for the monthly midge management. The monthly amount of the contract is $1,833.33.

Contracts - Aquatic Weed Control

The District has a contract with American Ecosystems for the aquatic weed control. The monthly amount of the contract is $2,702.46.

Misc - Contingency

This represents any additional unanticipated expenditures that are incurred during the year that may not have been provided for in the other budget categories.

Annual Operating and Debt Service Budget	5		
Fiscal Year 2018			

POINCIANA WEST

Community Development District

Exhibit "A"

Allocation of Fund Balances

AVAILABLE FUNDS

		Amount	
Beginning Fund Balance - Fiscal Year 2018	$	519,902	
Net Change in Fund Balance - Fiscal Year 2018		-	
Reserves - Fiscal Year 2018 Additions		-	
			
Total Funds Available (Estimated) - 9/30/2018		519,902	

ALLOCATION OF AVAILABLE FUNDS

Assigned Fund Balance			(1)		
Operating Reserve - Operating Capital		75,123			
Subtotal		75,123			
					
Total Allocation of Available Funds		75,123			
					
Total Unassigned (undesignated) Cash	$	444,779			

Notes

(1) Represents approximately 3 months of operating expenditures

Annual Operating and Debt Service Budget	6		
Fiscal Year 2018			

Poinciana West

Community Development District

Debt Service Budgets

Fiscal Year 2018

POINCIANA WEST

Community Development District												Series 2017 Debt Service Fund	
	Summary of Revenues, Expenditures and Changes in Fund Balances					
			Fiscal Year 2018 Adopted Budget											
						ADOPTED				ACTUAL		PROJECTED			TOTAL			ANNUAL	
			ACTUAL			BUDGET				THRU			JUN		PROJECTED			BUDGET	
	ACCOUNT DESCRIPTION		FY 2016			FY 2017			MAY - 2017			SEP-2017			FY 2017			FY 2018	
	REVENUES																				
	Interest - Investments	$	-	$	-	$	219	$	81	$	300	$	100		
	Special Assmnts- Tax Collector			-			-			136,208			7,686			143,894			1,117,752		
	Special Assmnts- CDD Collected									31,740			-			31,740			-		
	Special Assmnts- Discounts									(1,785)			-			(1,785)			(44,710)		
																					
	TOTAL REVENUES			-			-			166,382			7,767			174,149			1,073,142		
	EXPENDITURES																				
	Administrative																				
	ProfServ-Property Appraiser									-			-			-			22,355		
	ProfServ-Trustee Fees									-			-			-			5,500		
	Misc-Assessmnt Collection Cost	-		-				2,688			154			2,842			22,355		
																					
	Total Administrative			-			-			2,688			154			2,842			50,210		
	Debt Service																				
	Principal Debt Retirement			-			-			12,715,076			-			12,715,076			-		
	Debt Retirement - R1									485,000						485,000			385,000		
	Debt Retirement - R2									125,000						125,000			80,000		
	Interest Expense - R1			-			-			101,508			-			101,508			396,331		
	Interest Expense - R2									40,670						40,670			155,963		
	Bond Issue Expense			-			-			507,236			-			507,236			-		
	Underwriter			-			-			212,400			-			212,400			-		
	Total Debt Service			-			-			14,186,890			-			14,186,890			1,017,294		
																	
	TOTAL EXPENDITURES			-			-	14,189,578			154	14,189,732			1,067,504		
	Excess (deficiency) of revenues																				
	Over (under) expenditures			-			-			(14,023,196)			7,613			(14,015,583)			5,638		
	OTHER FINANCING SOURCES (USES)																				
	Interfund Transfer - In			-			-			830,464			-			830,464			-		
	Proceeds of Refunding Bonds			-			-			14,160,000			-			14,160,000			-		
	Contribution to (Use of) Fund Balance			-			-			-			-			-			5,638		
																	
	TOTAL OTHER SOURCES (USES)			-			-	14,990,464			-	14,990,464			5,638		
	Net change in fund balance			-			-			967,268			7,613			974,881			5,638		
	FUND BALANCE, BEGINNING			-			-			-			-			-			974,881		
	FUND BALANCE, ENDING	$	-	$	-	$	967,268	$	7,613	$	974,881	$	980,519		

Annual Operating and Debt Service Budget	7		
Fiscal Year 2018			

POINCIANA WEST				Series 2017 Debt Service Fund		
Community Development District					
							
				Amortization Schedule					
			Series 2017 Special Assessment Bonds				
										
						Principal				
	Year		*Principal	Interest		Balance	Fiscal Total			
	11/1/2017			$276,147		$13,550,000				
	5/1/2018		$465,000	$276,147		$13,085,000	$1,017,294			
	11/1/2018			$270,147		$13,085,000				
	5/1/2019		$480,000	$270,147		$12,605,000	$1,020,294			
	11/1/2019			$263,666		$12,605,000				
	5/1/2020		$495,000	$263,666		$12,110,000	$1,022,331			
	11/1/2020			$256,387		$12,110,000				
	5/1/2021		$510,000	$256,387		$11,600,000	$1,022,774			
	11/1/2021			$248,231		$11,600,000				
	5/1/2022		$525,000	$248,231		$11,075,000	$1,021,463			
	11/1/2022			$239,169		$11,075,000				
	5/1/2023		$545,000	$239,169		$10,530,000	$1,023,338			
	11/1/2023			$229,472		$10,530,000				
	5/1/2024		$565,000	$229,472		$9,965,000	$1,023,944			
	11/1/2024			$219,122		$9,965,000				
	5/1/2025		$585,000	$219,122		$9,380,000	$1,023,244			
	11/1/2025			$207,806		$9,380,000				
	5/1/2026		$610,000	$207,806		$8,770,000	$1,025,613			
	11/1/2026			$195,717		$8,770,000				
	5/1/2027		$635,000	$195,717		$8,135,000	$1,026,434			
	11/1/2027			$182,881		$8,135,000				
	5/1/2028		$660,000	$182,881		$7,475,000	$1,025,761			
	11/1/2028			$169,409		$7,475,000				
	5/1/2029		$690,000	$169,409		$6,785,000	$1,028,818			
	11/1/2029			$154,612		$6,785,000				
	5/1/2030		$720,000	$154,612		$6,065,000	$1,029,224			
	11/1/2030			$138,793		$6,065,000				
	5/1/2031		$750,000	$138,793		$5,315,000	$1,027,586			
	11/1/2031			$122,064		$5,315,000				
	5/1/2032		$785,000	$122,064		$4,530,000	$1,029,129			
	11/1/2032			$104,535		$4,530,000				
	5/1/2033		$825,000	$104,535		$3,705,000	$1,034,070			
	11/1/2033			$85,538		$3,705,000				
	5/1/2034		$860,000	$85,538		$2,845,000	$1,031,075			
	11/1/2034			$65,718		$2,845,000				
	5/1/2035		$905,000	$65,718		$1,940,000	$1,036,435			
	11/1/2035			$44,825		$1,940,000				
	5/1/2036		$945,000	$44,825		$995,000	$1,034,650			
	11/1/2036			$23,003		$995,000				
	5/1/2037		$995,000	$23,003		$0	$1,041,005			

	Totals		$13,550,000	$6,994,479			$20,544,479			

Annual Operating and Debt Service Budget		
Fiscal Year 2018	8	

POINCIANA WEST

Community Development District	Debt Service Fund

Budget Narrative

Fiscal Year 2018

REVENUES

Interest - Investments

The District earns interest income on their trust accounts with US Bank.

Special Assessment - Tax Collector

The District will levy a Non-Ad Valorem assessment on all the assessable property within the District in order to pay for the debt service expenditures during the Fiscal Year.

Special Assessment - CDD Collected

The District will bill the developer directly for the unplatted lots.

Special Assessment - Discounts

Per Section 197.162, Florida Statutes, discounts are allowed for early payments. The budgeted amount for the fiscal year is calculated at 4% of the anticipated Non-Ad Valorem assessments

EXPENDITURES- Administrative

Professional Services - Property Appraiser

The Property Appraiser provides the District with a listing of the legal description of each property parcel within the District boundaries, and the names and addresses of the owners of such property. The District reimburses the Property Appraiser for necessary administrative costs incurred to provide this service. Per the Florida Statutes, administrative costs shall include, but not be limited to, those costs associated with personnel, forms, supplies, data processing, computer equipment, postage, and programming. The budgeted amount for the fiscal year is calculated at 2% of the anticipated Non-Ad Valorem assessments.

Professional Services - Trustee

The District pays US Bank an annual fee for trustee services on the Series 2017 Special Assessment Bond. The budgeted amount is based on prior year expenditures.

Misc. - Assessment Collection Cost

The District reimburses the Tax Collector for her or his necessary administrative costs. Per the Florida Statutes, administrative costs shall include, but not be limited to, those costs associated with personnel, forms, supplies, data processing, computer equipment, postage, and programming. The District also compensates the Tax Collector for the actual cost of collection or 2% on the amount of special assessments collected and remitted, whichever is greater. The fiscal year’s budget for collection costs is based on a maximum of 2% of the anticipated assessment collections.

Annual Operating and Debt Service Budget	9		
Fiscal Year 2018			

POINCIANA WEST

Community Development District	Debt Service Fund

Budget Narrative

Fiscal Year 2018

EXPENDITURES – Debt Service

Principal Debt Retirement

The District pays regular principal payments annually in order to pay down/retire the debt.

Interest Expense

The District pays interest expense on the debt twice a year.

Annual Operating and Debt Service Budget	10		
Fiscal Year 2018			

Poinciana West

Community Development District

Supporting Budget Schedules

Fiscal Year 2018

POINCIANA WEST

Community Development District	All Funds

Comparison of Non-Ad Valorem Assessment Rates

Fiscal Year 2018 vs. Fiscal Year 2017

General Fund		Debt Service Series 2017	Total Assessments per Unit			
		Percent			Percent			Percent			
FY 2018	FY 2017	Change	FY 2018	FY 2017	Change	FY 2018	FY 2017	Change		Units	
$186.57	$163.24	14.29%	$686.58	$750.00	-8.5%	$873.15	$913.24	-4.4%		1,661	
										1,661	

Annual Operating and Debt Service Budget	11		
Fiscal Year 2018