Heron Isles

Community Development District

August 2, 2018

Heron Isles

Community Development District

475 West Town Place, Suite 114, St. Augustine, Florida 32092

Phone: 904-940-5850   Fax: 904-940-5899

July 26, 2018

Board of Supervisors

Heron Isles Community Development District

Dear Board Members:

A meeting of the Board of Supervisors of the Heron Isles Community Development District will be held Thursday, August 2, 2018 at 6:00 p.m. at the Residence Inn Amelia Island, 2301 Sadler Road, Fernandina Beach, Florida.

I.	Roll Call
II.	Audience Comments
III.	Affidavit of Publication
IV.	Update from MBS Capital Markets on Status of the Series 2018 Bonds
V.	Discussion of Amenity Center Survey Results
VI.	Public Hearing to Adopt the Fiscal Year 2019 Budget
A.	Consideration of Resolution 2018-05, Relating to Annual Appropriations and Adopting the Budget for Fiscal Year 2019
B.	Consideration of Resolution 2018-06, Imposing Special Assessments and
Certifying an Assessment Roll for Fiscal Year 2019
VII.	Ratification of Engagement Letters for Audit Services
A.	FY 2017 with McDirmit Davis
B.	FY 2018 with Berger, Toombs, Elam, Gaines & Frank
VIII.  Acceptance of the Fiscal Year 2017 Audit Report
IX.	Approval of Minutes of the May 3, 2018 Meeting

X. Acceptance of the Minutes of the May 3, 2018 Audit Committee Meeting XI. Other Business
XII.	Staff Reports

A.	District Counsel

B.	District Engineer

C.	District Manager – Discussion of the Fiscal Year 2019 Meeting Schedule

D.	Property Manager – Report

XIII.  Supervisors’ Requests and Audience Comments
XIV.  Financial Reports
A.	Balance Sheet & Income Statement

B.	Assessment Receipt Schedule

C.	Approval of Check Register

XV.	Next Scheduled Meeting – TBD
XVI.  Adjournment

Enclosed under the third order of business is the affidavit of publication.

The fifth order of business is discussion of amenity center survey results. Copies of the results are enclosed for your review.

The sixth order of business is the public hearing to adopt the budget for Fiscal Year 2019. Copies of the budget and resolutions 2018-05 and 2018-06 are enclosed for your review and approval.

The seventh order of business is ratification of engagement letters for audit services. Copies of the engagement letters for FY17 and FY18 are enclosed for your review.

The eighth order of business is acceptance of the Fiscal Year 2017 audit report. A copy of the audit report is enclosed for your review.

Enclosed under the ninth order of business are the minutes of the May 3, 2018 meeting for your approval.

The tenth order of business is acceptance of the minutes of the May 3, 2018 audit committee meeting. A copy of the minutes is enclosed for your review.

The balance of the agenda is routine in nature. Staff reports and any additional support material will be presented and discussed at the meeting. If you have any questions, please contact me.

I look forward to seeing you at the meeting and in the meantime if you have any questions, please contact me.

Sincerely,

Dave deNagy

Dave deNagy

District Manager

cc:	Jason Walters	Doug Harrier	Jennifer Gillis	
	Cheryl Graham	Jim Lucas	Darrin Mossing	
	Gabriel McKee			

AGENDA

	Heron Isles	
	Community Development District	
	Agenda	
Thursday	Residence Inn Amelia Island	
August 2, 2018	2301 Sadler Road	
6:00 p.m.	Fernandina Beach, Florida	
	Call in #: 800-264-8432	
	Passcode: 433354	
	www.heronislescdd.com	

I.	Roll Call

II.	Audience Comments

III.	Affidavit of Publication

IV.	Update from MBS Capital Markets on Status of the Series 2018 Bonds

V.	Discussion of Amenity Center Survey Results

VI.	Public Hearing to Adopt the Fiscal Year 2019 Budget
A.	Consideration of Resolution 2018-05, Relating to Annual Appropriations and Adopting the Budget for Fiscal Year 2019

B.	Consideration of Resolution 2018-06, Imposing Special Assessments and Certifying an Assessment Roll for Fiscal Year 2019

VII.	Ratification of Engagement Letters for Audit Services

A.	FY 2017 with McDirmit Davis

B.	FY 2018 with Berger, Toombs, Elam, Gaines & Frank

VIII.  Acceptance of the Fiscal Year 2017 Audit Report

IX.	Approval of Minutes of the May 3, 2018 Meeting

X.	Acceptance of the Minutes of the May 3, 2018 Audit Committee Meeting

XI.	Other Business

XII.	Staff Reports
A.	District Counsel

B.	District Engineer

C.	District Manager – Discussion of the Fiscal Year 2019 Meeting Schedule

D.	Property Manager – Report

XIII.  Supervisors’ Requests and Audience Comments

XIV.  Financial Reports

A.	Balance Sheet & Income Statement

B.	Assessment Receipt Schedule

C.	Approval of Check Register

XV.	Next Scheduled Meeting – TBD

XVI.  Adjournment

THIRD ORDER OF BUSINESS

FIFTH ORDER OF BUSINESS

From: Ernesto Torres etorres@gmsnf.com

Subject: Heron Isles CDD Final Survey Count

Date: July 20, 2018 at 9:11 AM

To: Courtney Hogge chogge@gmsnf.com

Courtney, please use the below for Heron Isles CDD Survey Results:

Received 278 response.

Results:

Question #1: Would you like Heron Isles to have its own amenity center, which would include a pool, a small social hall and rest rooms (The Recreation Center)?

Yes: 73 No: 205

Question #2: If funding for a pool and amenity center is approved by the CDD Board of Supervisors, long term debt and annual maintenance costs would increase by as much as $275 plus $52 or $327 per year ($27 +/- per month). Does this increase seem reasonable to you?

Yes: 65 No: 211

Question #3: Do you agree that building a recreation center will have a positive impact on your enjoyment of living in the Heron Isles Community?

Yes: 74 No: 204

SIXTH ORDER OF BUSINESS

Approved Budget

Fiscal Year 2019

Heron Isles Community

Development District

August 2, 2018

Heron Isles

Community Development District

TABLE OF CONTENTS

General Fund

Budget	Page 1

Exhibit "A"	Page 2

Narrative	Page 3-6

Debt Service Fund

Budget - Series 2017A1/A2	Page 7

Amortization Schedule - 2017A1	Page 8

Amortization Schedule - 2017A2	Page 9

Heron Isles

Community Development District									General Fund	
											
		Adopted		Actual		Projected		Total		Approved	
		Budget		Thru		Next		Projected		Budget	
Description		FY 2018	6/30/2018		3 Months	9/30/2018		FY 2019	
Revenues											
Assessments - On Roll	$281,122	$282,980	$1,056	$284,035	$341,361	
Interest Income	$0	$349	$116.46	$466	$400	
Fund Balance	$6,711	$19,087	$0	$19,087	$0	
											
TOTAL REVENUES	$287,832	$302,415	$1,172	$303,587	$341,762	
Expenditures											
Administrative											
Supervisor Fees	$4,000	$4,400	$1,000	$5,400	$4,000	
FICA Expense	$306	$337	$77	$413	$306	
Engineering	$5,000	$2,220	$500	$2,720	$5,000	
Assessment Roll	$7,500	$7,500	$0	$7,500	$7,500	
Dissemination	$1,500	$1,125	$375	$1,500	$1,500	
Attorney	$15,000	$7,637	$7,363	$15,000	$15,000	
Annual Audit	$3,700	$3,700	$0	$3,700	$4,000	
Trustee Fees	$2,200	$0	$2,200	$2,200	$2,200	
Management Fees	$43,260	$32,445	$10,815	$43,260	$45,423	
Computer Time	$1,000	$750	$250	$1,000	$1,000	
Website Compliance	$500	$375	$125	$500	$500	
Telephone	$100	$150	$20	$170	$100	
Postage	$500	$983	$265	$1,248	$500	
Printing & Binding	$1,250	$1,127	$150	$1,277	$1,250	
Insurance	$6,646	$6,042	$0	$6,042	$6,700	
Legal Advertising	$1,800	$2,611	$3,004	$5,615	$2,500	
Other Current Charges	$1,000	$965	$35	$1,000	$1,000	
Office Supplies	$100	$63	$37	$100	$100	
Meeting Room Rental	$1,300	$400	$100	$500	$1,300	
Dues, Licenses & Subscriptions	$175	$175	$0	$175	$175	
Capital Outlay	$250	$0	$0	$0	$250	
											
TOTAL ADMINISTRATIVE EXPENDITURES	$97,087	$73,005	$26,315	$99,320	$100,304	
UTILITIES:											
Electric	$21,000	$18,997	$8,332.20	$27,329	$32,005	
Water & Sewer		$56,500		$32,437		$11,796.26		$44,233		$46,813	
SUBTOTAL UTILITIES	$77,500	$51,433	$20,128	$71,562	$78,818	
CONTRACT SERVICES											
Landscape Maintenance	$57,072	$47,931	$14,295	$62,226	$64,250	
Irrigation Maintenance	$3,000	$1,669	$1,331	$3,000	$3,000	
Lake Maintenance	$12,900	$9,675	$3,225	$12,900	$12,900	
Janitorial Services	$7,200	$5,400	$1,800	$7,200	$7,200	
Pool Maintenance	$0	$0	$0	$0	$14,000	
Pool Chemicals	$0	$0	$0	$0	$6,500	
Pool Permits	$0	$0	$0	$0	$625	
Security	$0	$0	$0	$0	$6,000	
Trash Removal Services	$7,440	$4,500	$1,500	$6,000	$7,440	
Management Company	$9,000	$6,750	$2,250	$9,000	$9,000	
Pest Control Services	$225	$0	$225	$225	$225	
Holiday Decorations		$0		$1,161		$1,161		$2,322		$1,500	
SUBTOTAL CONTRACT SERVICES	$96,837	$77,086	$25,787	$102,874	$132,640	
REPAIRS & MAINTENANCE											
Repairs & Maintenance		$16,408		$22,374		$7,458		$29,832		$30,000	
SUBTOTAL REPAIRS & MAINTENANCE		$16,408		$22,374		$7,458		$29,832		$30,000	
											
TOTAL FIELD EXPENDITURES		$190,745		$150,894		$53,374		$204,267		$241,458	
											
TOTAL EXPENDITURES		$287,832		$223,898		$79,689		$303,587		$341,761	
											
Excess Revenues	($0)	$78,517	($78,517)	$0	$0	
						FY 2017		FY 2018		FY 2019	
							
		NET ASSESSMENTS	$259,162	$281,122	$341,361	
		PLUS COLLECTION FEES (7%)	$19,507	$21,160	$25,694	
		GROSS ASSESSMENTS	$278,669	$302,281	$367,055	
				NO. OF UNITS	740	749	749	
		PER UNIT ASSESSMENT	$377	$404	$490	

Page 1

Heron Isles

Community Development District

General Fund

Exhibit "A"

Allocation of Operating Reserves

Estimated Funds Available

	Beginning Fund Balance - Fiscal Year 2018	$19,087		
	Estimated Excess Revenues - Fiscal Year 2018	($19,086)		
	Total Estimated Funds Available - 9/30/18			
		$0		
	Allocation of Funds Available			
(1)	Operating Reserve - First Quarter Operating Capital	$55,844		
	Capital Reserve/Renewal & Replacement	$47,258		
	Total Allocation of Funds			
		$103,102		
	Total Undesignated Cash			
		($103,101)		
(1)	Represents approximately (2) two months of operating expenditures			

Page 2

HERON ISLES

COMMUNITY DEVELOPMENT DISTRICT

GENERAL FUND BUDGET

FISCAL YEAR 2019

REVENUES:

Maintenance Assessments

The District will levy a non ad-valorem special assessment on all assessable property within the District to fund all of the General Operating Expenditures for the fiscal year.

EXPENDITURES:

Administrative:

Supervisor Fees

The Florida Statutes allows each board member to receive $200 per meeting not to exceed $4,800 in one year. The amount for the fiscal year is based upon all five supervisors attending the estimated 12 annual meetings.

FICA Expanse

Represents the Employer’s share of Social Security and Medicare taxes withheld from Board of Supervisors checks.

Engineering Fees

The District's engineer will be providing general engineering services to the District including attendance and preparation for board meetings, etc.

Assessment Roll

Governmental Management Services serves as the District's collection agent and certifies the District's non-ad valorem assessments with the county tax collector.

Dissemination Agent

The District is required by the Security and Exchange Commission to comply with Rule 15(c) (2)-12(b) (5), which relates to additional reporting requirements for un-rated bond issues.

Attorney

The District's legal counsel will be providing general legal services to the District, i.e., attendance and preparation for monthly meetings, review operating and maintenance contracts.

Annual Audit

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

Trustee Fees

The District issued Series 2005 Capital Improvement Revenue Bonds, which are held with a Trustee at US Bank. The amount of the trustee fees is based on the agreement between US Bank and the District.

Management Fees

The District receives Management, Accounting and Administrative services as part of a Management Agreement with Governmental Management Services. These services are further outlined in Exhibit "A" of the Management Agreement.

Page 3

HERON ISLES

COMMUNITY DEVELOPMENT DISTRICT

GENERAL FUND BUDGET

FISCAL YEAR 2019

Computer Time

The District processes all of its financial activities, i.e., accounts payable, financial statements, etc. on a mainframe computer leased by Governmental Management Services.

Website Compliance

Per Chapter 2014-22, Laws of Florida, all Districts must have a website by October 1, 2015 to provide detailed information on the CDD as well as links to useful websites regarding Compliance issues. This website will be maintained by GMS, LLC and updated monthly.

Telephone

Telephone and fax machine.

Postage

Mailing of agenda packages, overnight deliveries, correspondence, etc.

Printing & Binding

Printing and Binding agenda packages for board meetings, printing of computerized checks, stationary, envelopes etc.

Insurance

The District's General Liability & Public Officials Liability Insurance policy is with Florida Insurance Alliance. Florida Insurance Alliance specializes in providing insurance coverage to governmental agencies.

Legal Advertising

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

Other Current Charges

Bank charges and any other miscellaneous expenses that are incurred during the year.

Office Supplies

Miscellaneous office supplies.

Meeting Room Rental

This item includes the cost to rent a boardroom for the Heron Isles Community Development District monthly supervisor meetings. The rental fees are based on the quarterly meetings.

Dues, Licenses & Subscriptions

The District is required to pay an annual fee to the Department of Economic Opportunity for $175. This is the only expense under this category for the District.

Capital Outlay

Represents any minor capital expenditures the District may need to make during the Fiscal Year such as a file cabinet for District files.

Page 4

HERON ISLES

COMMUNITY DEVELOPMENT DISTRICT

GENERAL FUND BUDGET

FISCAL YEAR 2019

Utilities:

Electric

This item includes the cost of electricity for Heron Isles CDD that will be provided by FPL.

Location	Account #	Monthly	Yearly	
100 Heron Isles Pkwy	55251-34119	$2,000.00	$24,000.00	
96103 Heron Isles Pkwy	79367-06030	$15.00	$180.00	
96116 Heron Isles Pkwy	15371-18034	$16.00	$192.00	
961164 Heron Isles Pkwy #IRR	17007-82129	$15.00	$180.00	
96139 Heron Isles Pkwy	89411-73059	$60.00	$720.00	
96148 Heron Isles Pkwy	59739-27030	$15.50	$186.00	
96443 Heron Isles Pkwy #IRR	62356-51129	$15.00	$180.00	
96638 Heron Isles Pkwy #IRR	62602-83129	$15.25	$183.00	
96331 Starfish Dr entwall	39110-92496	$15.00	$180.00	
Projecting New Accounts		$500.34	$6,004.08	
	Total	$2667.09	$32,005.08	

Water & Sewer

This item includes the cost of water and/or sewer from JEA.

Location	Meter #	Monthly	Yearly	
96059 Heron Isles PY	82505651	$876	$10,508	
96059 Heron Isles PY	82505651	$288	$3,461	
96259 Heron Isles PY	83582184	$794	$9,525	
96320 Starfish Dr	67059090	$24	$294	
96416 Heron Isles PY	67133229	$544	$6,528	
96572 Heron Isles PY	67133293	$478	$5,736	
	Totals	$3,004	$36,051	

Contract Services:

Landscape Maintenance

Landscape services are to maintain the common areas within the District. The District has contracted with Martex Services for these services pertaining to entryway maintenance. The contract provides for a 30 day termination.

Vendor	Monthly	Yearly	
Landscape Maintenance	$4,765	$57,180.00	
Landscape Contingency		$ 7,070.00	
Total		$64,250.00	

Page 5

HERON ISLES

COMMUNITY DEVELOPMENT DISTRICT

GENERAL FUND BUDGET

FISCAL YEAR 2019

Irrigation Repairs

Irrigation services are to maintain the common areas within the District. The District has contracted with Martex Services for these services pertaining to entryway maintenance. The contract provides for a 30 day termination.

Lake Maintenance

The District has a contract with The Lake Doctors who provide monthly water management services to all the lakes throughout the District.

Janitorial Services

The District has a contract with All Repairs & Maintenance for Janitorial services for the District.

Pool Maintenance

The District will contract a pool servicing company to maintain the pool.

Pool Chemicals

The District will contract a pool servicing company for the purchase and delivery of pool chemicals.

Pool. Permits

Fees related to any county permits needed to keep the pool in service.

Security

The District will contract a security agency for security services for the amenity center.

Trash Removal Service

The District has a contract with All Repairs & Maintenance for Trash Removal Services.

Pest Control

The District has a contract with Kelly Termite for pest control services.

Management Company

Management Fees include managing, supervising and coordinating the management, operation and maintenance. The District has a contract with Leland Management Inc. to provide these services, the monthly charge is $750.00 and the contract can be terminated by either party within 30 days notice.

Repairs & Maintenance:

Repairs & Maintenance

Unscheduled repairs and maintenance to the District’s facilities through the community

Reserves:

Road Maintenance

The District will contract with a company for maintenance to the District’s roadways

Capital Improvements

Represents any Capital expenditures the District may need outside of the regular maintenance. Page 6

Heron Isles

	Community Development District							Debt Service Fund		
												Series 2017A1-A2		
														
			Adopted		Actual		Projected		Total			Approved		
			Budget		Thru		Next		Projected			Budget		
	Description		FY 2018	6/30/2018		3 Months	9/30/2018			FY 2019		
	Revenues													
(1)	Special Assessments - On Roll	$233,370	$234,525	$875	$235,399	$233,370		
								
	Interest Income	$0	$351	$0	$351	$0		
	Prepayments	$0	$74,676	$0	$74,676	$0		
(2)	Carry Forward Surplus	$56,419	$74,160	$0	$74,160	$58,302		

	TOTAL REVENUES	$289,788	$383,711	$875	$384,586	$291,672		
	Expenditures													
	Series 2017A1													
	Interest - 11/1	$21,749	$21,749	$0	$21,749	$29,863		
	Special Call - 11/1	$0	$10,000	$0	$10,000	$0		
	Interest - 5/1	$31,828	$31,659	$0	$31,659	$29,863		
	Principal - 5/1	$95,000	$95,000	$0	$95,000	$100,000		
	Special Call - 5/1	$0	$75,000	$0	$75,000	$0		
	Series 2017A2													
	Interest - 11/1	$14,521	$14,521	$0	$14,521	$20,000		
	Special Call - 11/1	$0	$5,000	$0	$5,000	$0		
	Interest - 5/1	$21,250	$21,125	$0	$21,125	$20,000		
	Principal - 5/1	$25,000	$25,000	$0	$25,000	$30,000		
														
	TOTAL EXPENDITURES	$209,348	$299,054	$0	$299,054	$229,725		
	Other Sources/(Uses)													
(3)	Interfund Transfer In/(Out)	$0	$8,646	$0	$8,646	$0		

	TOTAL OTHER SOURCES/USES		$0		$8,646		$0		$8,646			$0		
										
	EXCESS REVENUES		$80,440		$93,303		$875		$94,177			$61,947		
														
								11/1/2019	$48,113		
(1)	Maximum Annual Debt Service													
														
(2)	Carry forward surplus is net of the reserve requirement									FY 2018		
												
					PLUS COLLECTION FEES (7%)			$17,565		
					GROSS ASSESSMENTS			$250,935		
					NO. OF UNITS					561		
					PER UNIT ASSESSMENT:			$447		

Page 7

Heron Isles

Community Development District

Series 2017A-1 Capital Improvement Revenue Refunding Bonds (Senior Bonds)

AMORTIZATION SCHEDULE

DATE		BALANCE		PRINCIPAL		INTEREST		TOTAL	
									
11/01/18	$	2,155,000.00	$	-	$	29,862.50	$	29,862.50	
05/01/19	$	2,155,000.00	$	100,000.00	$	29,862.50			
11/01/19	$	2,055,000.00	$	-	$	28,862.50	$	158,725.00	
05/01/20	$	2,055,000.00	$	100,000.00	$	28,862.50			
11/01/20	$	1,955,000.00	$	-	$	27,862.50	$	156,725.00	
05/01/21	$	1,955,000.00	$	105,000.00	$	27,862.50			
11/01/21	$	1,850,000.00	$	-	$	26,812.50	$	159,675.00	
05/01/22	$	1,850,000.00	$	105,000.00	$	26,812.50			
11/01/22	$	1,745,000.00	$	-	$	25,762.50	$	157,575.00	
05/01/23	$	1,745,000.00	$	110,000.00	$	25,762.50			
11/01/23	$	1,635,000.00	$	-	$	24,662.50	$	160,425.00	
05/01/24	$	1,635,000.00	$	105,000.00	$	24,662.50			
11/01/24	$	1,530,000.00	$	-	$	23,481.25	$	153,143.75	
05/01/25	$	1,530,000.00	$	115,000.00	$	23,481.25			
11/01/25	$	1,415,000.00	$	-	$	22,115.63	$	160,596.88	
05/01/26	$	1,415,000.00	$	110,000.00	$	22,115.63			
11/01/26	$	1,305,000.00	$	-	$	20,740.63	$	152,856.25	
05/01/27	$	1,305,000.00	$	120,000.00	$	20,740.63			
11/01/27	$	1,185,000.00	$	-	$	19,165.63	$	159,906.25	
05/01/28	$	1,185,000.00	$	120,000.00	$	19,165.63			
11/01/28	$	1,065,000.00	$	-	$	17,515.63	$	156,681.25	
05/01/29	$	1,065,000.00	$	120,000.00	$	17,515.63			
11/01/29	$	945,000.00	$	-	$	15,640.63	$	153,156.25	
05/01/30	$	945,000.00	$	120,000.00	$	15,640.63			
11/01/30	$	825,000.00	$	-	$	13,765.63	$	149,406.25	
05/01/31	$	825,000.00	$	125,000.00	$	13,765.63			
11/01/31	$	700,000.00	$	-	$	11,812.50	$	150,578.13	
05/01/32	$	700,000.00	$	130,000.00	$	11,812.50			
11/01/32	$	570,000.00	$	-	$	9,618.75	$	151,431.25	
05/01/33	$	570,000.00	$	135,000.00	$	9,618.75			
11/01/33	$	435,000.00	$	-	$	7,340.63	$	151,959.38	
05/01/34	$	435,000.00	$	140,000.00	$	7,340.63			
11/01/34	$	295,000.00	$	-	$	4,978.13	$	152,318.75	
05/01/35	$	295,000.00	$	145,000.00	$	4,978.13			
11/01/35	$	150,000.00	$	-	$	2,531.25	$	152,509.38	
05/01/36	$	150,000.00	$	150,000.00	$	2,531.25	$	152,531.25	
									
			$	2,155,000.00	$	665,062.50	$	2,820,062.50	

Page 8

Heron Isles

Community Development District

Series 2017A-2 Capital Improvement Revenue Refunding Bonds (Subordinate Bonds)

AMORTIZATION SCHEDULE

DATE		BALANCE	RATE		PRINCIPAL		INTEREST		TOTAL	
										
11/01/18	$	800,000.00	5.000%	$	-	$	20,000.00	$	-	
05/01/19	$	800,000.00	5.000%	$	30,000.00	$	20,000.00	$	70,000.00	
11/01/19	$	770,000.00	5.000%	$	-	$	19,250.00	$	-	
05/01/20	$	770,000.00	5.000%	$	30,000.00	$	19,250.00	$	68,500.00	
11/01/20	$	740,000.00	5.000%	$	-	$	18,500.00	$	-	
05/01/21	$	740,000.00	5.000%	$	30,000.00	$	18,500.00	$	67,000.00	
11/01/21	$	710,000.00	5.000%	$	-	$	17,750.00	$	-	
05/01/22	$	710,000.00	5.000%	$	35,000.00	$	17,750.00	$	70,500.00	
11/01/22	$	675,000.00	5.000%	$	-	$	16,875.00	$	-	
05/01/23	$	675,000.00	5.000%	$	35,000.00	$	16,875.00	$	68,750.00	
11/01/23	$	640,000.00	5.000%	$	-	$	16,000.00	$	-	
05/01/24	$	640,000.00	5.000%	$	35,000.00	$	16,000.00	$	67,000.00	
11/01/24	$	605,000.00	5.000%	$	-	$	15,125.00	$	-	
05/01/25	$	605,000.00	5.000%	$	40,000.00	$	15,125.00	$	70,250.00	
11/01/25	$	565,000.00	5.000%	$	-	$	14,125.00	$	-	
05/01/26	$	565,000.00	5.000%	$	40,000.00	$	14,125.00	$	68,250.00	
11/01/26	$	525,000.00	5.000%	$	-	$	13,125.00	$	-	
05/01/27	$	525,000.00	5.000%	$	40,000.00	$	13,125.00	$	66,250.00	
11/01/27	$	485,000.00	5.000%	$	-	$	12,125.00	$	-	
05/01/28	$	485,000.00	5.000%	$	45,000.00	$	12,125.00	$	69,250.00	
11/01/28	$	440,000.00	5.000%	$	-	$	11,000.00	$	-	
05/01/29	$	440,000.00	5.000%	$	45,000.00	$	11,000.00	$	67,000.00	
11/01/29	$	395,000.00	5.000%	$	-	$	9,875.00	$	-	
05/01/30	$	395,000.00	5.000%	$	50,000.00	$	9,875.00	$	69,750.00	
11/01/30	$	345,000.00	5.000%	$	-	$	8,625.00	$	-	
05/01/31	$	345,000.00	5.000%	$	50,000.00	$	8,625.00	$	67,250.00	
11/01/31	$	295,000.00	5.000%	$	-	$	7,375.00	$	-	
05/01/32	$	295,000.00	5.000%	$	55,000.00	$	7,375.00	$	69,750.00	
11/01/32	$	240,000.00	5.000%	$	-	$	6,000.00	$	-	
05/01/33	$	240,000.00	5.000%	$	55,000.00	$	6,000.00	$	67,000.00	
11/01/33	$	185,000.00	5.000%	$	-	$	4,625.00	$	-	
05/01/34	$	185,000.00	5.000%	$	60,000.00	$	4,625.00	$	69,250.00	
11/01/34	$	125,000.00	5.000%	$	-	$	3,125.00	$	-	
05/01/35	$	125,000.00	5.000%	$	60,000.00	$	3,125.00	$	66,250.00	
11/01/35	$	65,000.00	5.000%	$	-	$	1,625.00	$	-	
05/01/36	$	65,000.00	5.000%	$	65,000.00	$	1,625.00	$	68,250.00	
										
				$	800,000.00	$	430,250.00	$	1,230,250.00	

Page 9

A.

RESOLUTION 2018-05

THE ANNUAL APPROPRIATION RESOLUTION OF THE HERON ISLES COMMUNITY DEVELOPMENT DISTRICT (“DISTRICT”) RELATING TO THE ANNUAL APPROPRIATIONS AND ADOPTING THE BUDGETS FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2018, AND ENDING SEPTEMBER 30, 2019; AUTHORIZING BUDGET AMENDMENTS; AND PROVIDING AN EFFECTIVE DATE.

WHEREAS, the District Manager has, prior to the fifteenth (15th) day in June, 2018, submitted to the Board of Supervisors (“Board”) of the Heron Isles Community Development District (“District”) proposed budgets (“Proposed Budget”) for the fiscal year beginning October 1, 2018 and ending September 30, 2019 (“Fiscal Year 2018/2019”) along with an explanatory and complete financial plan for each fund of the District, pursuant to the provisions of Section 190.008(2)(a), Florida Statutes; and

WHEREAS, at least sixty (60) days prior to the adoption of the Proposed Budget, the District filed a copy of the Proposed Budget with the local governing authorities having jurisdiction over the area included in the District pursuant to the provisions of Section 190.008(2)(b), Florida Statutes; and

WHEREAS, the Board set a public hearing thereon and caused notice of such public hearing to be given by publication pursuant to Section 190.008(2)(a), Florida Statutes; and

WHEREAS, the District Manager posted the Proposed Budget on the District’s website at least two days before the public hearing; and

WHEREAS, Section 190.008(2)(a), Florida Statutes, requires that, prior to October 1st of each year, the Board, by passage of the Annual Appropriation Resolution, shall adopt a budget for the ensuing fiscal year and appropriate such sums of money as the Board deems necessary to defray all expenditures of the District during the ensuing fiscal year; and

WHEREAS, the District Manager has prepared a Proposed Budget, whereby the budget shall project the cash receipts and disbursements anticipated during a given time period, including reserves for contingencies for emergency or other unanticipated expenditures during the fiscal year.

NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF SUPERVISORS OF THE HERON ISLES COMMUNITY DEVELOPMENT DISTRICT:

SECTION 1.     BUDGET

a.	The Board has reviewed the Proposed Budget, a copy of which is on file with the office of the District Manager and at the District’s Local Records Office, and hereby approves certain amendments thereto, as shown in Section 2 below.

b.	The Proposed Budget, attached hereto as Exhibit “A,” as amended by the Board, is hereby adopted in accordance with the provisions of Section 190.008(2)(a), Florida Statutes (“Adopted Budget”), and incorporated herein by reference; provided, however, that the comparative figures contained in the Adopted Budget may be subsequently revised as deemed necessary by the District Manager to reflect actual revenues and expenditures.

c.	The Adopted Budget, as amended, shall be maintained in the office of the District Manager and at the District’s Local Records Office and identified as “The Budget for the Heron Isles Community Development District for the Fiscal Year Ending September 30, 2019.”

d.	The Adopted Budget shall be posted by the District Manager on the District’s official website within thirty (30) days after adoption, and shall remain on the website for at least 2 years.

SECTION 2.     APPROPRIATIONS

There is hereby appropriated out of the revenues of the District, for Fiscal Year 2018/2019, the sum of $________________ to be raised by the levy of assessments and/or otherwise, which sum is deemed by the Board to be necessary to defray all expenditures of the District during said budget year, to be divided and appropriated in the following fashion:

TOTAL GENERAL FUND	$__________________

DEBT SERVICE FUND(S)	$__________________

TOTAL ALL FUNDS	$__________________

SECTION 3.     BUDGET AMENDMENTS

Pursuant to Section 189.016, Florida Statutes, the District at any time within Fiscal Year 2018/2019 or within 60 days following the end of the Fiscal Year 2018/2019 may amend its Adopted Budget for that fiscal year as follows:

a.	The Board may authorize an increase or decrease in line item appropriations within a fund by motion recorded in the minutes if the total appropriations of the fund do not increase.

b.	The District Manager or Treasurer may authorize an increase or decrease in line item appropriations within a fund if the total appropriations of the fund do not increase and if the aggregate change in the original appropriation item does not exceed $10,000 or 10% of the original appropriation.

c.	By resolution, the Board may increase any appropriation item and/or fund to reflect receipt of any additional unbudgeted monies and make the corresponding change to appropriations or the unappropriated balance.

d.	Any other budget amendments shall be adopted by resolution and consistent with Florida law.

The District Manager or Treasurer must establish administrative procedures to ensure that any budget amendments are in compliance with this Section 3 and Section 189.016, Florida Statutes, among other applicable laws. Among other procedures, the District Manager or Treasurer must ensure that any amendments to budget under subparagraphs c. and d. above are posted on the District’s website within 5 days after adoption and remain on the website for at least 2 years.

SECTION 4. EFFECTIVE DATE. This Resolution shall take effect immediately upon adoption.

PASSED AND ADOPTED THIS 2ND DAY OF AUGUST, 2018.

ATTEST:	HERON ISLES COMMUNITY

DEVELOPMENT DISTRICT

By:
Secretary/Assistant Secretary
Its:

B.

RESOLUTION 2018-06

A RESOLUTION OF THE BOARD OF SUPERVISORS OF
THE  HERON  ISLES  COMMUNITY  DEVELOPMENT
DISTRICT MAKING A DETERMINATION OF BENEFIT
AND IMPOSING SPECIAL ASSESSMENTS FOR FISCAL
YEAR 2018/2019; PROVIDING FOR THE COLLECTION
AND  ENFORCEMENT  OF  SPECIAL  ASSESSMENTS;
CERTIFYING AN ASSESSMENT ROLL; PROVIDING FOR
AMENDMENTS	TO   THE   ASSESSMENT   ROLL;
PROVIDING	A   SEVERABILITY   CLAUSE;   AND
PROVIDING AN EFFECTIVE DATE.

WHEREAS, the Heron Isles Community Development District (“District”) is a local unit of special-purpose government established pursuant to Chapter 190, Florida Statutes, for the purpose of providing, operating and maintaining infrastructure improvements, facilities and services to the lands within the District; and

WHEREAS, the District is located in Nassau County, Florida (“County”); and

WHEREAS, the District has constructed or acquired various infrastructure improvements and provides certain services in accordance with the District’s adopted capital improvement plan and Chapter 190, Florida Statutes; and

WHEREAS, the Board of Supervisors (“Board”) of the District hereby determines to undertake various operations and maintenance and other activities described in the District’s budget (“Adopted Budget”) for the fiscal year beginning October 1, 2018 and ending September 30, 2019 (“Fiscal Year 2018/2019”), attached hereto as Exhibit “A” and incorporated by reference herein; and

WHEREAS, the District must obtain sufficient funds to provide for the operation and maintenance of the services and facilities provided by the District as described in the Adopted Budget; and

WHEREAS, the provision of such services, facilities, and operations is a benefit to lands within the District; and

WHEREAS, Chapter 190, Florida Statutes, provides that the District may impose special assessments on benefitted lands within the District; and

WHEREAS, it is in the best interests of the District to proceed with the imposition of the special assessments for operations and maintenance in the amount set forth in the Adopted Budget; and

WHEREAS, the District has previously levied an assessment for debt service, which the District desires to collect for Fiscal Year 2018/2019; and

WHEREAS, Chapter 197, Florida Statutes, provides a mechanism pursuant to which such special assessments may be placed on the tax roll and collected by the local tax collector (“Uniform Method”), and the District has previously authorized the use of the Uniform Method by, among other things, entering into agreements with the Property Appraiser and Tax Collector of the County for that purpose; and

WHEREAS, it is in the best interests of the District to adopt the Assessment Roll of the Heron Isles Community Development District (“Assessment Roll”) attached to this Resolution as Exhibit “B” and incorporated as a material part of this Resolution by this reference, and to certify the Assessment Roll to the County Tax Collector pursuant to the Uniform Method; and

WHEREAS, it is in the best interests of the District to permit the District Manager to amend the Assessment Roll, certified to the County Tax Collector by this Resolution, as the Property Appraiser updates the property roll for the County, for such time as authorized by Florida law.

NOW, THEREFORE, BE IT RESOLVED BY THE BOARD
OF SUPERVISORS OF THE HERON ISLES COMMUNITY
DEVELOPMENT DISTRICT:

SECTION 1. BENEFIT  & ALLOCATION  FINDINGS.  The Board hereby finds and

determines that the provision of the services, facilities, and operations as described in Exhibit “A” confers a special and peculiar benefit to the lands within the District, which benefit exceeds or equals the cost of the assessments. The allocation of the assessments to the specially benefitted lands, as shown in Exhibits “A” and “B,” is hereby found to be fair and reasonable.

SECTION 2. A SSESSMENT IMPOSITION. Pursuant to Chapters 190 and 197, Florida Statutes, and using the procedures authorized by Florida law for the levy and collection of special assessments, a special assessment for operation and maintenance is hereby imposed and levied on benefitted lands within the District, and in accordance with Exhibits “A” and “B.” The lien of the special assessments for operations and maintenance imposed and levied by this Resolution shall be effective upon passage of this Resolution. Moreover, pursuant to Section 197.3632(4), Florida Statutes, the lien amount shall serve as the “maximum rate” authorized by law for operation and maintenance assessments.

SECTION 3. COLLECTION. The collection of the operation and maintenance special assessments and previously levied debt service assessments shall be at the same time and in the same manner as County taxes in accordance with the Uniform Method, as indicated on Exhibits “A” and “B.” The decision to collect special assessments by any particular method – e.g., on the tax roll or by direct bill – does not mean that such method will be used to collect special assessments in future years, and the District reserves the right in its sole discretion to select collection methods in any given year, regardless of past practices.

SECTION 4. ASSESSMENT ROLL. The Assessment Roll, attached to this Resolution as Exhibit “B,” is hereby certified to the County Tax Collector and shall be collected by the

County Tax Collector in the same manner and time as County taxes. The proceeds therefrom shall be paid to the District.

SECTION 5. ASSESSMENT ROLL AMENDMENT. The District Manager shall keep apprised of all updates made to the County property roll by the Property Appraiser after the date of this Resolution, and shall amend the Assessment Roll in accordance with any such updates, for such time as authorized by Florida law, to the County property roll. After any amendment of the Assessment Roll, the District Manager shall file the updates in the District records.

SECTION 6. SEVERABILITY. The invalidity or unenforceability of any one or more provisions of this Resolution shall not affect the validity or enforceability of the remaining portions of this Resolution, or any part thereof.

SECTION 7. EFFECTIVE DATE. This Resolution shall take effect upon the passage and adoption of this Resolution by the Board.

PASSED AND ADOPTED this 2nd day of August, 2018.

ATTEST:	HERON ISLES COMMUNITY
DEVELOPMENT DISTRICT

_____________________________	By:___________________________		
Secretary / Assistant Secretary	Its:____________________________		
				
Exhibit A:	Budget			
Exhibit B:	Assessment Roll			

SEVENTH ORDER OF BUSINESS

A.

B.

EIGHTH ORDER OF BUSINESS

HERON ISLES COMMUNITY DEVELOPMENT DISTRICT

TABLE OF CONTENTS

Year Ended September 30, 2017

I. Financial Section:	Page		
			
Independent Auditor's Report	1		
Management's Discussion and Analysis	3		
Financial Statements:			
Government-Wide Financial Statements:			
Statement of Net Position	7		
Statement of Activities	8		
Fund Financial Statements:			
Balance Sheet - Governmental Funds	9		
Statement of Revenues, Expenditures and Changes in Fund Balances -			
Governmental Funds	10		
Reconciliation of the Statement of Revenues, Expenditures and			
Changes in Fund Balances of Governmental Funds			
to the Statement of Activities	11		
Statement of Revenues, Expenditures and Changes in Fund Balance -			
Budget and Actual - General Fund	12		
Notes to Financial Statements	13		
II. Compliance Section:			
Independent Auditor's Report on Internal Control over Financial Reporting and on			
Compliance and Other Matters Based On an Audit of Financial Statements			
Performed in Accordance with Government Auditing Standards	25		
Management Comments	27		
Independent Auditor's Report on Compliance with the Requirements			
of Section 218.415, Florida Statutes	29		

INDEPENDENT AUDITOR'S REPORT

To the Board of Supervisors

Heron Isles Community Development District

Report on the Financial Statements

We have audited the accompanying financial statements of the governmental activities, and each major fund of the Heron Isles Community Development District (the “District”), as of and for the year ended September 30, 2017, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements

The District's management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting principles used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

MCDIRMIT DAVIS & COMPANY, LLC

934 NORTH MAGNOLIA AVENUE, SUITE 100 ORLANDO, FLORIDA 32803 TELEPHONE: 407-843-5406 FAX: 407-649-9339 EMAIL: INFO@MCDIRMITDAVIS.COM

MEMBERS: PRIVATE COMPANIES PRACTICE SECTION AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS

1

Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, and each major fund of the District as of September 30, 2017, and the respective changes in financial position thereof and the respective budgetary comparison for the General Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis starting on page 3, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued a report dated June 22, 2018, on our consideration of the District’s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District’s internal control over financial reporting and compliance.

Orlando, Florida

June 22, 2018

2

MANAGEMENT’S DISCUSSION AND ANALYSIS

Our discussion and analysis of the Heron Isles Community Development District (the “District”) financial accomplishments provide an overview of the District’s financial activities for the year ended September 30, 2017. Please read it in conjunction with the District’s Independent Auditor’s Report, financial statements and accompanying notes.

This information is being presented to provide additional information regarding the activities of the District and to meet the disclosure requirements of Government Accounting Standards Board Statement (GASB) No. 34, Basic Financial Statements - and Management’s Discussion and Analysis - for State and Local Governments issued June 1999.

Financial Highlights

•	The liabilities of the District exceeded its assets at September 30, 2017 by $1,322,048, a decrease of $237,508 in comparison with the prior year.

•	At September 30, 2017, the District’s governmental funds reported a combined fund balance of $238,327, a decrease of $228,151 in comparison with the prior year.

Overview of the Financial Statements

This discussion and analysis is intended to serve as an introduction to the Heron Isles Community Development District’s financial statements. The District’s financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements and 3) notes to financial statements.

Government-Wide Financial Statements

The government-wide financial statements are designed to provide readers with a broad overview of the District’s finances, in a manner similar to a private-sector business.

The statement of net position presents information on all of the District’s assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the District is improving or deteriorating.

The statement of activities presents information showing how the government’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods.

The government-wide financial statements include all governmental activities that are principally supported by special assessment revenues. The District does not have any business-type activities. The governmental activities of the District include general government and maintenance and operations related functions.

3

MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)

Fund Financial Statements

A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The District, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. The District has one fund category: Governmental Funds.

Governmental Funds - Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a District’s near-term financing requirements.

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long -term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The District maintains three individual governmental funds. Information is presented separately in the governmental fund balance sheet and the governmental fund statement of revenues, expenditures and changes in fund balances for the general fund, debt service fund and capital projects fund, all of which are considered to be major funds.

The District adopts an annual appropriated budget for its general fund. A budgetary comparison schedule has been provided for the general fund to demonstrate compliance with the budget.

Notes to Financial Statements

The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements.

Government-Wide Financial Analysis

Statement of Net Position - The District’s net position was $(1,322,048) at September 30, 2017. The following analysis focuses on the net position of the District’s governmental activities.

4

MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)

Government-Wide Financial Analysis (Continued):

Heron Isles Community Development District

Statement of Net Position

	September 30,		September 30,		
		2017			2016		
Assets, excluding capital assets	$	252,121		$	479,940		
Capital Assets, net of depreciation		1,590,327			1,664,211		
Total assets		1,842,448			2,144,151		
Liabilities, excluding long-term liabilities		44,019			88,691		
Long-term Liabilities		3,120,477			3,140,000		
Total liabilities		3,164,496			3,228,691		
Net Position:		(1,521,506)			(1,475,720)		
Net investment in capital assets							
Restricted for debt service		79,811			220,867		
Unrestricted		119,647			170,313		
Total net position	$	(1,322,048)	$	(1,084,540)		

The following is a summary of the District’s governmental activities for the fiscal years ended September 30, 2017 and 2016.

Changes in Net Position

Year ended September 30,

Revenues:		2017			2016		
							
Program revenues	$	610,557	$	627,849		
General revenues		341			463		
Total revenues		610,898			628,312		
Expenses:							
General government		408,023			82,421		
Maintenance and operations		263,608			248,021		
Interest on long-term debt		176,775			186,731		
Total expenses		848,406			517,173		
Change in net position		(237,508)			111,139		
Net position - beginning of year		(1,084,540)			(1,195,679)		
Net position - ending	$	(1,322,048)	$	(1,084,540)		

As noted above and in the statement of activities, the cost of all governmental activities during the year ended September 30, 2017 was $848,406. The majority of these costs are comprised of general government expenses.

5

MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)

Financial Analysis of the Government’s Funds

The District uses fund accounting to ensure and demonstrate compliance with finance related legal requirements. The focus of the District’s governmental funds is to provide information on near-term inflows, outflows and balances of spendable resources. Such information is useful in assessing the District’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. At September 30, 2017, the District’s governmental funds reported combined ending fund balances of $238,327. Of this total, $8,550 is nonspendable, $6,711 is assigned and $104,386 is unassigned and available for spending at the District’s discretion. The remainder of the fund balance $118,680 is restricted to indicate it has already been committed to pay debt service and capital project costs.

The fund balance of the general fund decreased $32,686. The debt service fund balance decreased $204,040 due to increased debt service payments. The capital projects fund increased $8,575.

General Fund Budgetary Highlights

An operating budget was adopted and maintained by the governing board for the District pursuant to the requirements of Florida Statutes. The budget is adopted using the same basis of accounting that is used in preparation of the fund financial statements. There was one amendment to the September 30, 2017 general fund budget. The legal level of budgetary control is at the fund level.

Capital Asset and Debt Administration

Capital Assets - At September 30, 2017, the District had $1,590,327 invested in infrastructure, net of accumulated depreciation. More detailed information about the District’s capital assets is presented in the notes to the financial statements.

Capital Debt - At September 30, 2017, the District had $3,165,000 in bonds outstanding. More detailed information about the District’s capital debt is presented in the notes to the financial statements.

Requests for Information

If you have questions about this report or need additional financial information, contact the

Heron Isles Community Development District’s Finance Department at 475 West Town Place, Suite 114, St. Augustine, Florida 32092.

6

FINANCIAL STATEMENTS

HERON ISLES COMMUNITY DEVELOPMENT DISTRICT				
STATEMENT OF NET POSITION				
September 30, 2017				
	Governmental		
Assets:		Activities		
				
Cash	$	16,386		
Investments		108,049		
Assessments receivable		905		
Prepaid costs		7,500		
Deposits		1,050		
Restricted assets:				
Temporarily restricted investments		118,231		
Capital assets:				
Capital assets not being depreciated		38,761		
Capital assets being depreciated, net		1,551,566		
Total assets		1,842,448		
Liabilities:				
Accounts payable and accrued expenses		13,794		
Accrued interest payable		30,225		
Noncurrent liabilities:				
Due within one year		120,000		
Due in more than one year		3,000,477		
Total liabilities		3,164,496		
Net Position:				
Net investment in capital assets		(1,521,506)		
Restricted for debt service		79,811		
Unrestricted		119,647		
Total net position	$	(1,322,048)		

The accompanying Notes to Financial Statements are an integral part of this statement. 7

HERON ISLES COMMUNITY DEVELOPMENT DISTRICT

STATEMENT OF ACTIVITIES

Year Ended September 30, 2017

														Net (Expense)	
														Revenue and	
														Changes in Net	
								Program Revenue				Position	
									Operating			Capital				
					Charges for			Grants and		Grants and		Governmental	
Functions/Programs		Expenses		Services		Contributions		Contributions			Activities	
Governmental activities:																
General government	$	408,023		$	161,419	$	-	$	-	$	(246,604)	
Maintenance and operations			263,608			104,287			-			-			(159,321)	
Interest on long-term debt			176,775			344,390			458			3			168,076	
Total governmental activities		$	848,406		$	610,096		$	458	$	3			(237,849)	

General Revenues:		
Investment income	341	
Change in net position	(237,508)	
Net Position - beginning	(1,084,540)	
Net Position - ending	$  (1,322,048)	

The accompanying Notes to Financial Statements are an integral part of this statement. 8

HERON ISLES COMMUNITY DEVELOPMENT DISTRICT

BALANCE SHEET

GOVERNMENTAL FUNDS

September 30, 2017

											Total		
								Capital		Governmental		
Assets:		General		Debt Service	Projects			Funds		
													
Cash	$	16,386	$	-		$	-	$	16,386		
Investments		108,049			109,587			8,644			226,280		
Assessments receivable		457			448			-			905		
Prepaid costs		7,500			-			-			7,500		
Due from other funds		-			1			-			1		
Deposits		1,050			-			-			1,050		
Total assets	$	133,442	$	110,036		$	8,644	$	252,122		
Liabilities and Fund Balances:													
													
Liabilities:													
Accounts payable and accrued expenses	$	13,794	$	-		$	-	$	13,794		
Due to other funds		1			-			-			1		
Total liabilities		13,795			-			-			13,795		
Fund Balances:													
Nonspendable		8,550			-			-			8,550		
Restricted for:													
Debt service		-			110,036			-			110,036		
Capital projects		-			-			8,644			8,644		
Assigned:													
Subsequent years' expenditures		6,711			-			-			6,711		
Unassigned		104,386			-			-			104,386		
Total fund balances		119,647			110,036			8,644			238,327		
Total liabilities and fund balances	$	133,442	$	110,036		$	8,644					

Amounts reported for governmental activities in the statement of net position are different because:

Capital assets used in governmental activities are not financial resources and therefore are not	1,590,327		
reported in the funds.						
Liabilities not due and payable from current available resources are not reported in			
governmental fund statements. All liabilities, both current and long-term, are reported in the			
government-wide statements.						
Accrued interest payable	(30,225)					
Bonds payable	(3,120,477)			(3,150,702)		
Net Position of Governmental Activities	$	(1,322,048)		

The accompanying Notes to Financial Statements are an integral part of this statement. 9

HERON ISLES COMMUNITY DEVELOPMENT DISTRICT

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDS

Year Ended September 30, 2017

											Total		
								Capital		Governmental		
Revenues:		General		Debt Service		Projects			Funds		
													
Special assessments	$	265,706	$	267,862	$	-	$	533,568		
Assessments-Prepayments		-			76,528			-			76,528		
Investment income		341			458			3			802		
Total revenues		266,047			344,848			3			610,898		
Expenditures:													
Current:													
General government		111,579			-			296,444			408,023		
Maintenance and operations		189,724			-			-			189,724		
Debt service:													
Interest		-			221,385			-			221,385		
Principal		-			3,140,000			-			3,140,000		
Total expenditures		301,303			3,361,385			296,444			3,959,132		
Excess (Deficit) of Revenues Over													
Expenditures		(35,256)			(3,016,537)			(296,441)			(3,348,234)		
Other Financing Sources (Uses):													
Refunding Bonds issued		-			2,814,998			350,002			3,165,000		
Discount on Refunding bonds issued		-			-			(44,917)			(44,917)		
Transfers in		2,570			69			-			2,639		
Transfers out		-			(2,570)			(69)			(2,639)		
Total other financing sources (uses)		2,570			2,812,497			305,016			3,120,083		
Net change in fund balances		(32,686)			(204,040)			8,575			(228,151)		
Fund Balances - beginning of year		152,333			314,076			69			466,478		
Fund Balances - end of year	$	119,647	$	110,036	$	8,644	$	238,327		

The accompanying Notes to Financial Statements are an integral part of this statement. 10

HERON ISLES COMMUNITY DEVELOPMENT DISTRICT

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES

Year Ended September 30, 2017

Amounts reported for Governmental Activities in the Statement of Activities are different because:

Net Change in Fund Balances - total governmental funds (page 10)		$	(228,151)		
Depreciation on Capital Assets is not recognized in the Governmental Fund Statement; however,					
it is reported as an expense in the Statement of Activities.				(73,884)		
Repayments of long-term liabilities are reported as expenditures in Governmental Funds, while			3,140,000		
repayments reduce long-term liabilities in the Statement of Net Position.						
The issuance of bonds provide current financial resources to Governmental Funds, but does not					
have any effect on government wide activities.						
Bonds payable issued	(3,165,000)					
Discount on bonds payable	44,917					
					(3,120,083)		
Some expenses reported in the statement of activities do not require the use of current financial					
resources and, therefore, are not reported as expenditures in governmental funds.						
Change in accrued interest	45,004					
Amortization of Bond discount		(394)		$	44,610		
Change in Net Position of Governmental Activities (page 8)		$	(237,508)		

The accompanying Notes to Financial Statements are an integral part of this statement. 11

HERON ISLES COMMUNITY DEVELOPMENT DISTRICT

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL - GENERAL FUND

Year Ended September 30, 2017

										Variance with		
										Final Budget		
								Actual			Positive		
		Budgeted Amounts			Amounts			(Negative)		
Revenues:		Original			Final								
													
Special Assessments	$	259,163	$	265,250	$	265,706	$	456		
Investment Income		-			341			341			-		
Total revenues		259,163			265,591			266,047			456		
Expenditures:													
Current:													
General government		94,164			112,043			111,579			464		
Operation and maintenance		175,421			193,951			189,724			4,227		
Total expenditures		269,585			305,994			301,303			4,691		
Excess (Deficit) of Revenues Over													
Expenditures		(10,422)			(40,403)			(35,256)			5,147		
Other Financing Sources (Uses):													
Transfers In		3,055			2,570			2,570			-		
Net change in fund balance		(7,367)			(37,833)			(32,686)			5,147		
Fund Balance - beginning		152,333			152,333			152,333			-		
Fund Balance - ending	$	144,966	$	114,500	$	119,647	$	5,147		

The accompanying Notes to Financial Statements are an integral part of this statement. 12

NOTES TO FINANCIAL STATEMENTS

HERON ISLES COMMUNITY DEVELOPMENT DISTRICT

NOTES TO FINANCIAL STATEMENTS

Year Ended September 30, 2017

Note 1 - Summary of Significant Accounting Policies:

Reporting Entity

The Heron Isles Community Development District, (the “District”) was established by Nassau County Ordinance 2004-41 enacted on September 1, 2004 pursuant to the Uniform Community Development District Act of 1980, otherwise known as Chapter 190, Florida Statutes. The Act provides, among other things, the power to manage basic services for community development, the power to borrow money and issue bonds, and the power to levy and collect non-ad valorem assessments for the financing and delivery of capital infrastructure. The District was established for the purpose of financing and managing the acquisition, construction, maintenance and operation of a portion of the infrastructure necessary for community development within the District.

The District is governed by the Board of Supervisors (the “Board”), which is composed of five members. At present, the Supervisors are elected on an at large basis by the owners of the property within the District. The Board of Supervisors of the District exercises all powers granted to the District pursuant to Chapter 190, Florida Statutes. Heron Isles Joint Venture, LLP (the “Developer”) owns a significant portion of the land within the District. At September 30, 2017, one Board of Supervisor was associated with the Developer. The District is economically dependent on the Developer.

The Board has the final responsibility for, among other things:

1.	Allocating and levying assessments.

2.	Approving budgets.

3.	Exercising control over facilities and properties.

4.	Controlling the use of funds generated by the District.

5.	Approving the hiring and firing of key personnel.

6.	Financing improvements.

The financial statements were prepared in accordance with Governmental Accounting Standards Board (“GASB”) Statement 14, 39 and 61. Under the provisions of those standards, the financial reporting entity consists of the primary government, organizations for which the District Board of Supervisors is considered to be financially accountable, and other organizations for which the nature and significance of their relationship with the District are such that, if excluded, the financial statements of the District would be considered incomplete or misleading. There are no entities considered to be component units of the District; therefore, the financial statements include only the operations of the District.

13

HERON ISLES COMMUNITY DEVELOPMENT DISTRICT

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

Year Ended September 30, 2017

Note 1 - Summary of Significant Accounting Policies (Continued):

Government-Wide and Fund Financial Statements

The financial statements include both government-wide and fund financial statements.

The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the non-fiduciary activities of the primary government. For the most part, the effect of interfund activity has been removed from these statements.

The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers who purchase, use, or directly benefit from goods, services or privileges provided by a given function or segment and 2) grants, contributions and investment income that are restricted to meeting the operational or capital requirements of a particular function or segment and 3) operating-type special assessments that are treated as charges for services (including assessments for maintenance and debt service). Other items not included among program revenues are reported instead as general revenues.

Measurement Focus, Basis of Accounting and Financial Statement Presentation

The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Assessments are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenues as soon as all eligibility requirements imposed by the provider have been met.

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the District considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures are recorded when a liability is incurred, as under accrual accounting; however, debt service expenditures are recorded only when payment is due.

Assessments, including debt service assessments and operation and maintenance assessments, are non-ad valorem assessments imposed on all lands located within the District and benefited by the District’s activities. Operation and maintenance assessments are levied by the District prior to the start of the fiscal year which begins October 1st and ends on September 30th. These assessments are imposed upon all benefited lands located in the District. Debt service special assessments are imposed upon certain lots and lands as described in each resolution imposing the special assessment for each series of bonds issued by the District. Certain debt service assessments are collected upon the closing of those lots subject to short term debt and are used to prepay a portion of the bonds outstanding.

14

HERON ISLES COMMUNITY DEVELOPMENT DISTRICT

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

Year Ended September 30, 2017

Note 1 - Summary of Significant Accounting Policies (Continued):

Measurement Focus, Basis of Accounting and Financial Statement Presentation (Continued):

Assessments and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the District.

The District reports the following major governmental funds:

General Fund - is the District’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.

Debt Service Fund - accounts for the accumulation of resources for the annual payment of principal and interest on long-term debt.

Capital Projects Fund - accounts for the financial resources to be used for the acquisition or construction of major infrastructure within the District.

As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. When both restricted and unrestricted resources are available for use, it is the District’s policy to use restricted resources first, then unrestricted resources as they are needed.

Assets, Liabilities, Deferred Outflows/Inflows of Resources and Net Position/Fund

Balance

Restricted Assets - These assets represent cash and investments set aside pursuant to bond covenants.

Deposits and Investments - The District’s cash and cash equivalents are considered to be cash on hand and demand deposits.

Investments of the District are reported at fair value and are categorized within the fair value hierarchy established in accordance with GASB Statement No. 72, Fair Value Measurement and Application. The District’s investments consist of investments authorized in accordance with Section 218.415, Florida Statutes.

Prepaid Items - Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements.

15

HERON ISLES COMMUNITY DEVELOPMENT DISTRICT

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

Year Ended September 30, 2017

Note 1 - Summary of Significant Accounting Policies (Continued):

Assets, Liabilities, Deferred Outflows/Inflows of Resources and Net Position/Fund Balance (Continued):

Capital Assets - Capital assets, which include property, plant, equipment and infrastructure assets (e.g., utilities system, stormwater system, landscaping and similar items), are reported in the applicable governmental activities column in the government-wide financial statements. Capital assets are defined by the government as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of two years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation.

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed.

Property, plant and equipment of the District are depreciated using the straight-line method over the following estimated useful lives:

Assets			Years	
Stormwater System			30	
Roadways and Other	30	

Long Term Obligations - In the government-wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the statement of net position. Bond premiums and discounts, are deferred and amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of premiums or discounts.

In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as expenditures.

16

HERON ISLES COMMUNITY DEVELOPMENT DISTRICT

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

Year Ended September 30, 2017

Note 1 - Summary of Significant Accounting Policies (Continued):

Assets, Liabilities, Deferred Outflows/Inflows of Resources and Net Position/Fund Balance (Continued):

Deferred Outflows/Inflows of Resources - In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The District does not have any item that qualifies for reporting in this category for the year ended September 30, 2017.

In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The District does not have any item that qualifies for reporting in this category for the year ended September 30, 2017.

Net Position Flow Assumption - Sometimes the District will fund outlays for a particular purpose from both restricted and unrestricted resources. In order to calculate the amounts to report as restricted- net position and unrestricted- net position in the government-wide financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the District’s policy to consider restricted - net position to have been depleted before unrestricted-net position is applied.

Fund Balance Flow Assumptions - Sometimes the District will fund outlays for a particular purpose from both restricted and unrestricted resources (total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied. It is the District’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last.

Fund Balance Policies - Fund balance of governmental funds is reported in various categories based on the nature of any limitations requiring the use of resources for specific purposes. The District itself can establish limitations on the use of resources through either commitment (committed fund balance) or an assignment (assigned fund balance).

The committed fund balance classification includes fund balance amounts that can be used only for the specific purposes determined by a formal action of the government’s highest level of decision-making authority. The Board of Supervisors is the highest level of decision-making authority for the government that can, by adoption of an ordinance or resolution prior to the end of the fiscal year, commit fund balance. Once adopted, the limitation imposed by the ordinance or resolution remains in place until a similar action is taken to remove or revise the limitation.

17

HERON ISLES COMMUNITY DEVELOPMENT DISTRICT

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

Year Ended September 30, 2017

Note 1 - Summary of Significant Accounting Policies (Continued):

Assets, Liabilities, Deferred Outflows/Inflows of Resources and Net Position/Fund Balance (Continued):

Fund Balance Policies (Continued):

Amounts in the assigned fund balance classification are intended to be used by the government for specific purposes but do not meet the criteria to be classified as committed. The Board of Supervisors has authorized the District Manager to assign amounts for specific purposes. The Board of Supervisors may also assign fund balance as it does when appropriating fund balance to cover a gap between estimated revenue and appropriations in the subsequent year’s appropriated budget. Unlike commitments, assignments generally only exist temporarily. In other words, an additional action does not normally have to be taken for the removal of an assignment. Conversely, as discussed above and additional action is essential to either remove or revise a commitment.

Other Disclosures

Use of Estimates - The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates.

Note 2 - Stewardship, Compliance and Accountability:

Budgetary Information

The District is required to establish a budgetary system and an approved annual budget for the General Fund. Annual budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America. All annual appropriations lapse at the fiscal year end. The legal level of budgetary control is at the fund level. Any budget amendments that increase the aggregate budgeted appropriations, at the fund level, must be approved by the Board of Supervisors.

The District follows these procedures in establishing the budgetary data reflected in the financial statements.

1.	Each year the District Manager submits to the District Board proposed budgets for the fiscal year commencing the following October 1.

2.	A public hearing is conducted to obtain public comments.

3.	Prior to October 1, the budget is legally adopted by the District Board.

4.	Subject to certain limited exceptions set forth in the District’s appropriation resolutions adopted each year, all budget changes must be approved by the District Board.

5.	The budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America.

18

HERON ISLES COMMUNITY DEVELOPMENT DISTRICT

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

Year Ended September 30, 2017

Note 3 - Deposits and Investments:

Deposits

The District’s cash balances were entirely covered by federal depository insurance or by a collateral pool pledged to the State Treasurer. Florida Statutes Chapter 280, “Florida Security for Public Deposits Act”, requires all qualified depositories to deposit with the Treasurer or another banking institution eligible collateral equal to various percentages of the average daily balance for each month of all public deposits in excess of any applicable deposit insurance held. The percentage of eligible collateral (generally, U.S. Governmental and agency securities, state or local government debt, or corporate bonds) to public deposits is dependent upon the depository’s financial history and its compliance with Chapter 280. In the event of a failure of a qualified public depository, the remaining public depositories would be responsible for covering any resulting losses.

Investments

The District categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The fair value is the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. The hierarchy is based on the valuation inputs used to measure the fair value of the asset.

Under GASB 72, assets or liabilities are classified into one of three levels. Level 1 is the most reliable and is based on quoted prices for identical assets, or liabilities, in an active market. Level 2 uses significant other observable inputs when obtaining quoted prices for identical or similar assets, or liabilities, in markets that are not active. Level 3 is the least reliable, and uses significant unobservable inputs that uses the best information available under the circumstances, which includes the District’s own data in measuring unobservable inputs.

The District has the following recurring fair value measurements as of September 30, 2017:

•	Money market mutual funds of $266,079 are valued using Level 2 inputs.

The District’s investment policy is governed by State Statutes and the District Trust Indenture. This policy allows investments in any financial institution that is a qualified public depository of the State of Florida as identified by the State Treasurer, in accordance with Chapter 280 of the Florida Statutes. Authorized investments are:

1.	The State Board of Administration Local Government Investment Pool (SBA);

2.	Securities and Exchange Commission Registered Money Market Funds with the highest credit quality rating from a nationally recognized rating agency;
3.	Interest-bearing savings accounts and certificates of deposit in state-certified qualified public depositories;

4.	Direct obligations of the U.S. Treasury.

19

HERON ISLES COMMUNITY DEVELOPMENT DISTRICT

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

Year Ended September 30, 2017

Note 3 - Deposits and Investments (Continued):

Investments (Continued):

The SBA is not a registrant with the Securities and Exchange Commission (SEC); however, the Board has adopted operating procedures consistent with the requirements for a 2a-7-like fund for the Florida Prime Fund. Therefore, the pool account balance can be used as fair value for financial reporting.

Investments made by the District at September 30, 2017 are summarized below.

					Credit		Weighted		
							Average		
Investment Type		Fair Value		Rating		Maturity		
U.S. Bank Money Market Funds		$	266,079		AAAm		N/A		
Local Government Investment Pool:									
Florida Prime			201		AAAm		51 days		
	$	266,280						

Credit Risk:

The District’s investment policy limits credit risk by restricting authorized investments to those described. Investments in U.S. Government securities and agencies must be backed by the full faith and credit of the United States Government. Short term bond funds shall be rated by a nationally recognized ratings agency and shall maintain the highest credit quality rating.

Custodial Credit Risk:

In the case of deposits, this is the risk that, in the event of a bank failure, the District’s deposits may not be returned to it. The District’s investment policy requires that bank deposits be secured as provided by Chapter 280, Florida Statutes. This law requires local governments to deposit funds only in financial institutions designated as qualified public depositories by the Chief Financial Officer of the State of Florida, and creates the Public Deposits Trust Fund, a multiple financial institution pool with the ability to assess its member financial institutions for collateral shortfalls if a default or insolvency has occurred. At September 30, 2017, all of the District’s bank deposits were in qualified public depositories.

For an investment, this is the risk that, in the event of the failure of the counterparty, the government will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. At September 30, 2017, none of the investments listed are exposed to custodial credit risk because their existence is not evidenced by securities that exist in physical or book entry form.

Concentration of Credit Risk:

The District’s investment policy does not specify limits on the amount the District may invest in any one issuer.

20

HERON ISLES COMMUNITY DEVELOPMENT DISTRICT

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

Year Ended September 30, 2017

Note 3 - Deposits and Investments (Continued):

Investments (Continued):

Interest Rate Risk:

The District’s investment policy does not specifically address interest rate risk; however, the general investment policy is to apply the prudent-person rule: Investments are made as a prudent person would be expected to act, with discretion and intelligence, to seek reasonable income, preserve capital, and in general, avoid speculative investments. The District manages its exposure to declines in fair values by investing primarily in pooled investments that have a weighted average maturity of less than three months.

Note 4 - Interfund Transfers:

During 2017, $2,570 was transferred from the debt service fund into the general fund, as per the bond indenture. $69 was transferred from the capital projects fund to the debt service fund.

Note 5 - Capital Assets:

Capital asset activity for the year ended September 30, 2017 was as follows:

	Beginning									Ending		
Governmental Activities:		Balance		Additions		Disposals			Balance		
													
Capital Assets, not being depreciated:													
Land and land improvements	$	38,761	$	-	$	-	$	38,761		
Total capital assets, not being depreciated		38,761			-			-			38,761		
Capital Assets Being Depreciated:		585,036			-			-			585,036		
Infrastructure-Stormwater management													
Infrastructure-roadways and other		1,631,486			-			-			1,631,486		
Total capital assets, being depreciated		2,216,522			-			-			2,216,522		
Less Accumulated Depreciation for:		(156,008)			(19,501)			-			(175,509)		
Infrastructure-stormwater management													
Infrastructure-roadways and other		(435,064)			(54,383)			-			(489,447)		
Total accumulated depreciation		(591,072)			(73,884)			-			(664,956)		
Total capital assets being depreciated, net		1,625,450			(73,884)			-			1,551,566		
Governmental activities capital assets, net	$	1,664,211	$	(73,884)	$	-	$	1,590,327		

Depreciation expense for 2017 in the amount of $73,884 was charged to maintenance and operations. District improvements are complete.

21

HERON ISLES COMMUNITY DEVELOPMENT DISTRICT

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

Year Ended September 30, 2017

Note 6 - Long-Term Liabilities:

Capital Improvement Revenue Bonds Series 2005

On January, 2005, the District issued $4,935,000 of Capital Improvement Revenue Bonds, Series 2005 due on May 1, 2036 with a fixed interest rate of 5.75%. The Bonds were issued to finance the acquisition and construction of certain improvements for the benefit of the property within the District. Interest is paid semiannually on each May 1 and November 1. Principal is payable annually commencing May 1, 2007 through May 1, 2036.

The Series 2005 Bonds are subject to redemption at the option of the District, in whole or in part at a redemption price set forth in the Bond Indenture. The Series 2005 Bonds are subject to optional and extraordinary mandatory redemption prior to maturity in the manner determined by the Bond Indenture.

The Bond Indenture requires that the District maintain adequate funds in a reserve account to meet the debt service reserve requirement as defined in the Indenture. This requirement has been met at September 30, 2017.

The Bond Indenture has certain restrictions and requirements relating principally to the use of proceeds to pay for the infrastructure improvements and the procedures to be followed by the District on assessments to property owners. The District agreed to levy special assessments in annual amounts adequate to provide payment of debt service and to meet the reserve requirements. Payment of principal and interest on the 2005 Bonds is secured by a pledge of and a first lien upon the pledged special assessment revenue. The District is in compliance with the requirements of the Bond Indenture.

The Series 2005 Capital Improvement Revenue Bonds were refunded during 2017 with the issuance of Capital Improvement Revenue Refunding Bonds, Series 2017A-1 and Series 2017A-2. For the year ended September 30, 2017 principal and interest paid was $3,361,385. Total special assessment revenue pledged for the year was $326,725.

Refunding of Bonds Payable

The District issued Capital Improvement Refunding Revenue Bonds, Series 2017 to refund the Series 2005 Bonds, provide additional funding for capital improvements, and finance certain issuance costs. The refunding was undertaken to reduce total future debt service payments. This transaction resulted in an economic gain of $ 212,106 and a reduction of $589,458 in future debt service payments.

22

HERON ISLES COMMUNITY DEVELOPMENT DISTRICT

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

Year Ended September 30, 2017

Note 6 - Long-Term Liabilities (Continued):

Capital Improvement Revenue Refunding Bonds Series 2017

In June 2017, the District issued $3,165,000 of Capital Improvement Revenue Refunding Bonds Series 2017, consisting of $1,195,000 Series 2017A-1 Serial Bonds due on May 1, 2028 with interest rates of 2.00% to 2.75%; $390,000 Series 2017A-1 Term Bonds due May 1, 2013 with interest of 3.125%; $730,000 Series 2017A-1 Term Bonds due May 1, 2036 with interest of $3.375% and $850,000 Series 2017A-2 Bonds due on May 1, 2036 with interest rates of 5.00%. The Bonds were issued to refund the Series 2005 Capital Improvement Revenue Bonds.

Interest is to be paid semiannually on each May 1 and November 1. Principal on the Series 2017 Bonds is to be paid annually commencing November 1, 2017 through May 1, 2036.

The Series 2017 Bond is subject to redemption at the option of the District, in whole or in part at any time on or after May 1, 2036 at a redemption price as set forth in the Bond Indenture. The Series 2017 Bond is subject to extraordinary mandatory redemption prior to maturity in the manner determined by the Bond Registrar if certain events occur as outlined in the Bond Indenture.

The Bond Indenture established a debt service reserve requirement as well as other restrictions and requirements relating principally to the use of proceeds to pay for the infrastructure improvements and the procedures to be followed by the District on assessments to property owners. The District agrees to levy special assessments in annual amounts adequate to provide payment of debt service and to meet the reserve requirements. The District is in compliance with those requirements of the Bond Indenture at September 30, 2017. In addition, the District has purchased bond insurance to meet the reserve requirement.

Total principal and interest remaining on the Series 2017 Bonds as of September 30, 2017 is $4,392,980. There was no principal or interest paid for the year ended September 30, 2017. Total special assessment revenue pledged for the year was $17,665.

Long-term debt activity for the year ended September 30, 2017 was as follows:

	Beginning									Ending		Due Within		
		Balance		Increases		Decreases			Balance		One Year		
Governmental activities:																
Bonds Payable:																
Series 2005	$	3,140,000	$	-	$	(3,140,000)	$	-	$	-		
Series 2017		-			3,165,000			-			3,165,000			120,000		
less discount		-			(44,917)			394			(44,523)			-		
Governmental activity long-																
																
term liabilities	$	3,140,000	$	3,120,083	$	(3,139,606)	$	3,120,477	$	120,000		

23

HERON ISLES COMMUNITY DEVELOPMENT DISTRICT

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

Year Ended September 30, 2017

Note 6 - Long-Term Liabilities (Continued):

At September 30, 2017, the scheduled debt service requirements on the bonds payable were as follows:

Governmental Activities
Year Ending				Principal			Interest		
September 30,									
2018		$	120,000		$	89,348		
2019				130,000			103,006		
2020				130,000			99,506		
2021				135,000			96,006		
2022				140,000			92,406		
2023 -	2027				765,000			399,969		
2028 -	2032				905,000			265,364		
2033 -	2036				840,000			82,375		
		$	3,165,000	$	1,227,980		

Note 7 - Related Party Transaction:

Assessments from Developer

The Developer owns a portion of land within the District; therefore, assessment revenue in the general and debt service funds include the assessments levied on those lots owned by the Developer. The Developer’s portion of special assessment revenue for the year ended September 30, 2017 totaled $151,895 which is 25% of total special assessment revenue.

Concentrations

A significant portion of the District’s activity is dependent upon the continued involvement of the Developer, the loss of which could have a material adverse effect on the District’s operations.

Note 8 - Management Company:

The District has contracted with a management company to perform management advisory services, which include financial advisory and accounting services. Certain employees of the management company also serve as officers (Board appointed non-voting positions) of the District. Under the agreement, the District compensates the management company for management, accounting, financial reporting and other administrative costs.

Note 9 - Risk Management:

The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters. These risks are covered by commercial insurance from independent third parties. The District has not filed any claims under this commercial coverage during the last three years.

24

COMPLIANCE SECTION

INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIALREPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

To the Board of Supervisors

Heron Isles Community Development District

We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities and each major fund of the Heron Isles Community Development District (the “District”) as of and for the year ended September 30, 2017, which collectively comprise the District’s financial statements and have issued our report thereon dated June 22, 2018.

Internal Control Over Financial Reporting

In planning and performing our audit of the financial statements, we considered the District’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the District’s internal control. Accordingly, we do not express an opinion on the effectiveness of the District’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be material weaknesses or significant deficiencies. Given these limitations, during our audit, we did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

MCDIRMIT DAVIS & COMPANY, LLC

934 NORTH MAGNOLIA AVENUE, SUITE 100 ORLANDO, FLORIDA 32803 TELEPHONE: 407-843-5406 FAX: 407-649-9339 EMAIL: INFO@MCDIRMITDAVIS.COM

MEMBERS: PRIVATE COMPANIES PRACTICE SECTION AMERICAN INSTITUTE OF C ERTIFIED PUBLIC ACCOUNTANTS FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS

25

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the District’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the District’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Orlando, Florida

June 22, 2018

26

MANAGEMENT COMMENTS

Board of Supervisors

Heron Isles Community Development District

Report on the Financial Statements

We have audited the financial statements of the Heron Isles Community Development District (the “District”), as of and for the fiscal year ended September 30, 2017, and have issued our report thereon dated June 22, 2018.

Auditor’s Responsibility

We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States and Chapter 10.550, Rules of the Auditor General.

Other Reporting Requirements

We have issued our Independent Auditor’s Report on Internal Control over Financial Reporting and Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and Independent Auditor’s Report on an examination conducted in accordance with AICPA Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in these reports, which are dated June 22, 2018, should be considered in conjunction with this management letter.

Prior Audit Findings

Section 10.554(1)(i.)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. There were no such findings in the preceding annual financial audit report.

Official Title and Legal Authority

Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. This information has been disclosed in the notes to the financial statements.

MCDIRMIT DAVIS & COMPANY, LLC

934 NORTH MAGNOLIA AVENUE, SUITE 100 ORLANDO, FLORIDA 32803 TELEPHONE: 407-843-5406 FAX: 407-649-9339 EMAIL: INFO@MCDIRMITDAVIS.COM

MEMBERS: PRIVATE COMPANIES PRACTICE SECTION AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS

27

Financial Condition and Management

Section 10.554(1)(i)5.a., Rules of the Auditor General, requires that us to apply appropriate procedures and communicate the results of our determination as to whether or not the District has met one or more of the conditions described in Section 218.503(1), Florida Statutes, and to identify the specific condition(s) met. In connection with our audit, we determined that the District did not meet any of the conditions described in Section 218.503(1), Florida Statutes.

Pursuant to Sections 10.554(1)(i)5.c. and 10.556(8), Rules of the Auditor General, we applied financial condition assessment procedures for the District. It is management’s responsibility to monitor the District’s financial condition, and our financial condition assessment was based in part on representations made by management and the review of financial information provided by same.

Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations.

Annual Financial Report

Section 10.554(1)(i)5.b. and 10.556(7), Rules of the Auditor General, requires us to apply appropriate procedures and communicate the results of our determination as to whether the annual financial report for the District for the fiscal year ended September 30, 2017, filed with the Florida Department of Financial Services pursuant to Section 218.32(1)(a), Florida Statutes, is in agreement with the annual financial audit report for the fiscal year ended September 30, 2017. In connection with our audit, we determined that these two reports were in agreement.

Additional Matters

Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not note any such findings.

Purpose of this Letter

Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, the Board of Supervisors and applicable management, and is not intended to be and should not be used by anyone other than these specified parties.

Orlando, Florida

June 22, 2018

28

INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE WITH THE

REQUIREMENTS OF SECTION 218.415, FLORIDA STATUTES

To the Board of Supervisors

Heron Isles Community Development District

We have examined Heron Isles Community Development District’s (the “District”) compliance with the requirements of Section 218.415, Florida Statutes, during the year ended September 30, 2017. Management is responsible for the District’s compliance with those requirements. Our responsibility is to express an opinion on District’s compliance based on our examination.

Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and the standards applicable to attestation engagements contained in Government Auditing Standards issued by the Comptroller General of the United States, and, accordingly, included examining, on a test basis, evidence about the District’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the District’s compliance with specified requirements.

In our opinion, the District complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2017.

Orlando, Florida

June 22, 2018

MCDIRMIT DAVIS & COMPANY, LLC

934 NORTH MAGNOLIA AVENUE, SUITE 100 ORLANDO, FLORIDA 32803 TELEPHONE: 407-843-5406 FAX: 407-649-9339 EMAIL: INFO@MCDIRMITDAVIS.COM

MEMBERS: PRIVATE COMPANIES PRACTICE SECTION AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS

29

To the Board of Supervisors

Heron Isles Community Development District

We have audited the financial statements of Heron Isles Community Development District (the “District”) as of and for the year ended September 30, 2017, and have issued our report thereon dated June 22, 2018. Professional standards require that we advise you of the following matters relating to our audit.

Our Responsibility in Relation to the Financial Statement Audit

As communicated in our engagement letter dated April 2, 2018, our responsibility, as described by professional standards, is to form and express an opinion(s) about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your respective responsibilities.

Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control over financial reporting. Accordingly, as part of our audit, we considered the internal control of the District solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control.

We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you.

Planned Scope and Timing of the Audit

We conducted our audit consistent with the planned scope and timing we previously communicated to you.

Compliance with All Ethics Requirements Regarding Independence

The engagement team, others in our firm, as appropriate, and our firm have complied with all relevant ethical requirements regarding independence.

MCDIRMIT DAVIS & COMPANY, LLC

934 NORTH MAGNOLIA AVENUE, SUITE 100 ORLANDO, FLORIDA 32803 TELEPHONE: 407-843-5406 FAX: 407-649-9339 EMAIL: INFO@MCDIRMITDAVIS.COM

MEMBERS: PRIVATE COMPANIES PRACTICE SECTION AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS

1

Qualitative Aspects of the Entity’s Significant Accounting Practices

Significant Accounting Policies

Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the District is included in Note 1 to the financial statements. There have been no initial selections of accounting policies and no changes in significant accounting policies or their application during the year ended September 30, 2017. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus.

Significant Accounting Estimates

Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s current judgments. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management’s current judgments.

The most sensitive accounting estimates affecting the financial statements are:

Management’s estimate of depreciation is based on the estimated useful lives of the capital assets. We evaluated the key factors and assumptions used to develop the depreciation estimate and determined that it is reasonable in relation to the basic financial statements taken as a whole and in relation to the applicable opinion units.

Significant Difficulties Encountered During the Audit

We encountered no significant difficulties in dealing with management relating to the performance of the audit.

Uncorrected and Corrected Misstatements

For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole and each applicable opinion unit. Management has corrected all identified misstatements.

In addition, professional standards require us to communicate to you all material, corrected misstatements that were brought to the attention of management as a result of our audit procedures. The following material misstatements that were identified as a result of our audit procedures were brought to the attention of and corrected by management: An adjustment in the amount of $81,258 to remove financial guarantee of bond insurance from miscellanous income and investment asset accounts.

2

Disagreements with Management

For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to the District’s financial statements or the auditor’s report. No such disagreements arose during the course of the audit.

Representations Requested from Management

We have requested certain written representations from management, which are included in the attached letter dated June 22, 2018.

Management’s Consultations with Other Accountants

In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters.

Other Significant Matters, Findings, or Issues

In the normal course of our professional association with the District, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, operating and regulatory conditions affecting the entity, and operational plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as the District’s auditors.

This report is intended solely for the information and use of the Board and management of the District and is not intended to be and should not be used by anyone other than these specified parties.

Orlando, Florida

June 22, 2018.

3

NINTH ORDER OF BUSINESS

MINUTES OF MEETING
HERON ISLES COMMUNITY DEVELOPMENT DISTRICT

The regular meeting of the Board of Supervisors of the Heron Isles Community Development District was held on Thursday, May 3, 2018 at 10:30 a.m. at the Compass Group Conference Room, 961687 Gateway Blvd., Suite 201M, Amelia Island, Florida.

Present and constituting a quorum were:

Ricky Rowell	Chairman
Don Lyons	Vice Chairman
Kathleen Blessing	Supervisor

Robert Martyn	Supervisor

Also present were:

Dave deNagy	District Manager
Jason Walters	District Counsel
Cheryl Graham	LeLand Management
Ernesto Torres	GMS
Sete Zare	MBS Capital Markets

FIRST ORDER OF BUSINESS	Roll Call

Mr. deNagy called the meeting to order at 10:36 a.m.

SECOND ORDER OF BUSINESS	Audience Comments

There being none, the next item followed.

THIRD ORDER OF BUSINESS	Presentation from MBS Capital Markets,

LLC on Funding Options

Mr. deNagy stated we are still in the process of working through our amenity improvements and funding. Ms. Sete Zare provided the board with an update regarding the bond funding.

Ms. Zare stated AGM in the bond insurer for the Series 2017 bonds that we closed on last year. This vision limited us to issue no more than $1 million. We have since had conversations

May 3, 2018	Heron Isles CDD

with AGM, and they are comfortable extending that threshold to $3 million, and they have offered to insure the proposed Series 2018 bonds. It is overall a win-win for the District.

Mr. deNagy stated we had talked about financing and how much this may cost. The estimate was $1,750,000 with approximately $1.5 or $1.6 of that being actual construction funds for the building at the Amenity Center plus the pool. We have not gotten anything yet from Jim Lucas (District Engineer) other than his ideas on those costs. At the last meeting the board approved moving forward with architectural services to get a conceptual idea of what the building will look like. There is a cost involved with those services, which we don't have in place yet. Joe with Genesis Architectural has submitted proposals, but we have not moved forward on that until we are certain we are going to move forward with our funding. If we want him to move forward, and we don't issue bonds, the funds will have to come out of the General Fund from the District. We have asked Joe to sit on the sidelines until we talk some more about financing the improvements. He provided two estimates. One was $19,500, which would have provided some 3D graphics showing what the Amenity Center would look like. There is a lesser bid of $12,500 that would provide sketches but nothing elaborate. He was already put some work into these drawings.

Mr. Lyons asked if another company was bidding on this besides Genesis?

Mr. deNagy responded no, we are done looking for bids from architectural services. We only got the one bid from Genesis. The Engineer needs to give us a cost estimate that we can use to support issuing bonds. Part of that cost would be the architect. Once we have all those in place, we move forward working with both the Engineer and the Architect.
Mr. Lyons stated so if we say we want the $12,000 version, then we are going to have to talk to Sete about how to get that out without taking up the rest of it right now, is that correct?
Mr. Walters responded the $12,000 would essentially give us that concept we can look at and say okay, this is approximately what we will be looking at in terms of the facility. The rub is in normal financing, a lot of times the Amenity Center is included in initial costs of roads, water, sewer, etc. In this case, we are doing it as a second issuance, so the rub is all these costs will be paid out of bond proceeds, but that assumes we move forward. We didn't want to put the District in the position of having to pay $20,000 to $40,000 for all the design before we were at least comfortable enough that we wanted to proceed. If you spend $20,000 for all the renderings and decide you don't want to move forward with it, the cost will be paid out of the District's funds.

2

May 3, 2018	Heron Isles CDD

The process moving forward would be if the board is comfortable, we would authorize that work to be done knowing that if we don't move forward, we are going to have to pay for that. It at least gets us to that point of seeing the concept.

Mr. Lyons stated I see this as a Catch 22 because we wanted to go to the residents and find out what they thought once we had a bid. We can't get that without spending $12,000 basically obligating us at least for that before going to the residents. I'm not too happy about that.

Ms. Blessing stated I think we should go to the residents and give them an estimate. They will have to understand it could be a little more or a little less. We let them voice their opinion and not spend $20,000 until we know what we are going to do.

Mr. Rowell stated the residents are going to want to see what they are getting. So if we get the consensus that yes, this is something they want to do, then that is something we can look at. Are we dealing with time restraints here?

Mr. Walters responded I don't think we are looking at time restraints. The reality is we have operated several years without a facility, and the board can take as much time as it likes. I don't know how long AGM is limiting their commitment to increase the threshold and to insure to a certain time period.
Ms. Zare responded I don't think there is a limit on the consent for the $3 million. There might be timing for AGM on the premiums they are providing for the Series 2018 bonds.
Mr. Rowell stated I think our next step at this time is to poll a vote from the residents. Mr. Lyons stated I agree, and I think we should tell them that we are looking in the

neighborhood of $2 million, and that should include the fees we are going to be paying to get the architectural designs and give them a ballpark figure based on that on how it is going to affect their yearly payments and see what they think. Unfortunately we are not going to have a design to give them to see what they think about that.
Mr. Walters stated I think we can give cost estimates. We know if we issue "X" amount, that will be "X" amount per year. We could estimate Operations on changes based on service levels. It would be up to the board to decide level of service. Based on the information we have gotten from the Engineer and the Architect to date that generally we are looking at these types of facilities. For example, a pool of approximately "X" size, a building of approximately "X" size with restroom facilities and parking – the basics of what we are thinking about.

3

May 3, 2018	Heron Isles CDD

Mr. Lyons stated the county controls the minimum size of that pool based on the number of residents we have, so we can put that in there. We can describe what amenities we are looking at along with additional parking that we are planning on.

Mr. deNagy stated it is also good for the residents when we add an amenity like this, it does help the values of the homes in the neighborhoods.

Ms. Blessing stated maybe you could call a pool service and get an idea of how much a yearly contract would be.
Mr. deNagy stated when we get into the budget, I have it already in the budget, so I will talk about that. They are just estimates, but I wanted to build in some operating costs for the pool in anticipation of that maybe being online in FY19. If we don't do it, we can pull it out of the budget.
Mr. Rowell asked do we need a motion to move forward?

Mr. Walters responded I guess the thought is we want to put together a survey with as much accurate and detailed information that we can. The question is how do we frame this. The survey will get feedback. You are never going to get 100% of the people that say do anything. In the past what we have done that has been valuable is to get as much information and as detailed information as possible to solicit feedback. It would be informational – not a vote. Encourage the residents to reach out to the supervisors and attend the next meeting.

Mr. Lyons stated we can put in an envelope with a return letter with the residents checking off what they want and have them send that back to us.
Mr. deNagy stated we can do that. The last set of notices we went out cost $2,000 and will be higher if we have them return the survey postage paid. That cost can be covered if you want to. What I would recommend at this point, Jason, is to draft up a survey. We need to authorize one of the board members to sign off on it before it is sent out. We would look for a pretty quick turn-around on it. I would expect we would want to meet sometime before our next meeting, which is August 2. I would like to get the survey out and results back in about a month or six weeks. We can then talk about having another meeting to see how we want to move forward.
Ms. Blessing asked is there some way we can do it online plus? In that letter, you can either go online or mail back.

4

May 3, 2018	Heron Isles CDD

Mr. deNagy stated the CDD doesn't have the capability right now. We would have to set that up. I don't know if the HOA has that capability to do surveys. I would prefer just the mail myself.

Mr. Walters stated we might could at least put the document of the survey on the website. Mr. deNagy stated we could do that.

Mr. Walters stated it is one of those things where we could put it out in as many ways possible. Government doesn't tend to fall in people's laps. You are going to have to be involved and make that effort. The people that make the effort are the ones that are most concerned in the first place.
Mr. Martyn asked this will go to the property owner and not the resident?

Mr. deNagy responded correct, the property owner. Whoever we have on the tax roll. If you are okay with that, I need a motion to assign one of the board members to sign off on the survey.

On MOTION by Mr. Lyons seconded by Mr. Rowell with all in favor to have Chairman Rowell review and approve draft survey was  approved. 

Mr. deNagy stated in the agenda package is an updated engagement letter with MBS Capital Markets. I believe it is updating the year in the agreement.

Ms. Zare confirmed the updates of changing dates to 2018 from 2017.

Mr. deNagy stated the engagement with MBS is contingent upon issuing bonds. Nothing is owed to MBS until bonds are issued. It is updating the year of the bond issuance from 2017 to 2018.

On MOTION by Mr. Rowell seconded by Ms. Blessing with all in favor the MBS Capital Market engagement letter to acquire and/or  construct Series 2018 Bonds was approved.

Chairman Rowell opened up the meeting for audience questions.

A resident stated the biggest concern I have is that based on location, it is different from every other community where you have to drive into the community to get to a pool. Heron Isles is a major cut-through for everybody going from Blackrock and Chester both ways, therefore, the

5

May 3, 2018	Heron Isles CDD

pool is going to be easily visible and tempting to people who are not residents of the community. Besides the liability of non-residents being there, it is a menace. I have a lot of concern about how it is going to be set up with enough security provisions and restricted access to the facility to make sure to the greatest extent possible that we are not going to be exposed. What are we going to do? Personally, if we are going to have one, I am not opposed to it totally, but I am not in favor at this point because of the liability issues. I would want to see at a minimum at least a two-tier system where you have to have around the parking area restricted access and a second restricted access to get into the building. Will it be staffed on a regular basis? There are lifeguards, which is a cost factor. My main concern is limiting access to the facility to the people who should be there.

Mr. Lyons stated when we talked to the representative for the Genesis Group about the pool, we stated the same concerns. We are very concerned about security. I would rather have that pool placed somewhere else deep inside our complex, but we just don’t have a place for it. That is where we are stuck. If we could clear some of that wetland and make a place for it, that would be great, but I don't think we can do that. We talked about expanding the parking lot all the way down the road from the first park to the second park plus cutting in to the pool for added parking in there. We are trying to maximize the parking that would be available. For security, we have talked about adding cameras, and we have asked that company to come up with some ideas for security for us to consider. Right now, that is all we can do.

Mr. Walters stated as a local government, we have sovereign immunity from tort lawsuits, which limits the damage. We also have our liability insurance. The exposure is going to be limited by those two factors. I can think of one other District that I work with around the state that doesn't have a pool. All the large communities, they all have these amenity facilities, and some of them are on major thoroughfares. We do want to limit those access things, and by State code, you have to have a lot of security around a facility like this. Whatever they design is going to have a lot of security built in. When you open a facility, you are going to assume some risk, but it is not a risk that has not been taken on by a lot of communities before you. In 12 years of doing this at several facilities around the state, I have not personally experienced a drowning at any facility. There have been accidents, and there have been lawsuits for sure, but we are covered by insurance.

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May 3, 2018	Heron Isles CDD

Mr. Daemon Barnes stated it seems like you are putting the cart before the horse considering you can't even maintain the amenities that you already have in place. I have been in this community for three months, and I see a pavilion at the first playground that is literally falling down on itself. That concerns me by itself. You also have the bathroom issue that is completely destroyed by people that are probably just sitting up there in the parking lot. It doesn't seem like you have quite thought it through concerning you can't maintain what is already in place.

Mr. deNagy responded one of the things to address that, and we have talked about this, Cheryl and I, we have had continued problems at the bathroom facilities there. The security measures that we are going to build into this pool I will recommend to the board that we expand and include for those facilities. We need to lock down better what security we have up there, which at this point is a couple of cameras and a DVR. There are other measures we can take that are a lot more effective.

Mr. Lyons stated Genesis Group suggested modifying that Pavilion by either tearing it down or using that as a gateway. Something has to be done with it. That is taken into consideration. Exactly how we are going to handle that I don't know.

Mr. Barnes stated I think you would want to address your current problems before moving onto other very bigger endeavors.

Mr. Lyons stated our HOA has been talking with contractors to evaluate that building, and there has been work done on it, so it is not something that we are ignoring.
Mr. Sedrick Rivers stated he is retired from the Aviation Authority as Chief of Public Safety and Security. I am a resident of Heron Isles, and I have my own consulting company, but this is not a pitch. I want to make my community safer, so I have walked around and seen some things that put not only the board but also some residents at risk. I will be willing to sit on whatever panel you have to help you with the security component. Ms. Graham and I have had a couple of conversations about this and what needs to be done as far as access control. He provided some statistics and information about technology available.

Mr. deNagy encouraged Mr. Rivers to reach out to the board members regarding ideas he might have.

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May 3, 2018	Heron Isles CDD

Mr. Greg Watson stated this area that did not have a pool was the draw for me. If we had wanted a pool, we should have had a pool put in at the very beginning, not 15 years down the line. If you want to be a pool community, you should have thought about it back then.

Ms. Jennifer O'Dell asked is there any way to restrict access on Heron Isles Parkway? Maybe it is gated at each end, and you can only get to the pool complex through Heron Isles Parkway rather than from the main Chester Road.

Mr. Walters responded you couldn't put a gate in on a major thoroughfare like that. The County wouldn't permit it. The road has to remain a public and open road. I also want to comment that if you move forward with the financing, the repairs and/or replacement of the pavilion could be included.
FOURTH ORDER OF BUSINESS	Update of Design Options for Construction
Project  and  Discussion  of  Community
Workshop

This agenda item was not addressed.

FIFTH ORDER OF BUSINESS	Consideration of Proposals for FY19

A.	Landscape Maintenance

Ms. Graham stated Martex Landscape has been the contractor for landscape for the past two years. They are a big contractor here in the area, but there has been a lot of disappointment. We thought it was necessary to bid it out and get some other proposals from other landscape contractors. Proposals were received from Brightview Landscape Services, TrimAll Lawn Service, and Yellowstone Landscaping Services. I also put in Martex, and the comparison work sheet gives you the cost of each at a glance. Brightview is a total of $90,000, and they have incorporated the pine straw automatically. Ms. Graham reviewed the items they would include in their price. TrimAll Lawn Services is at $79,317. Yellowstone's price is $72,820. Martex's price is $64,233.

Mr. Rowell stated in my opinion, going from $65,000 to $90,000 is a big jump. The board holds the power to cancel our contract at any time, so I think we hold their feet to the fire and they do the job or we fire them and then deal with it at that time.

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May 3, 2018	Heron Isles CDD

Ms. Graham responded that's fine. I just didn't want you to think we weren't noticing the issues and wanted to give you those options to consider.

On MOTION by Mr. Rowell seconded by Ms. Blessing with all in favor the landscape proposal from Martex in the amount of  $64,233.45 was approved.

B.	Lake Maintenance

Ms. Graham stated Lake Doctors has been providing your aquatic maintenance for the ponds. They have done a really good job for the past several years. They submitted their agreement for the next fiscal year for $1,075 per month, which is no increase.

On MOTION by Mr. Rowell seconded by Mr. Lyons with all in favor the proposal from Lake Doctors in the amount of $12,900 for  FY19 was approved.

C.	Janitorial

Ms. Graham stated All Repairs and Maintenance have provided the janitorial services in the restroom plus monthly cleaning of the debris in all the ponds. Total cost is $1,220 per month. No price increase for this year.

On MOTION by Mr. Rowell seconded by Ms. Blessing with all in favor the proposal from All Repairs and Maintenance for janitorial  services in the amount of $14,400 for FY19 was approved.

Mr. deNagy asked Ms. Graham if she had anything else.

Ms. Graham responded I have an estimate provided by Shorebreak to repair restrooms and storage. The last time restroom facilities were repairs, two weeks later it was torn up again. It continues on. At the last meeting it was requested being able to lock the doors so we control the activity. Shorebreak's price to repair the men's restroom is $2,891.97.
Mr. deNagy asked if the doors were locked at night.

Ms. Graham responded they are not. I had spoken with a contractor, and we would have to change out the doorways because the men's door doesn't even close all the way completely. It

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May 3, 2018	Heron Isles CDD

can be under an electronic system where it can be programmed to close at a specific time and opened at a specific time.

Ms. Blessing asked that after the work is completed that locks are put on the door.

Ms. Graham stated she will get quotes on an electronic locking system and get them out. Mr. deNagy stated we can have the board authorize one of the board members to move

forward on this so we don't have to wait until the next meeting.

On MOTION by Mr. Lyons seconded by Mr. Rowell with all in favor for Shorebreak to perform repairs to bathroom and storage area  in the amount of $2,891.97 was approved. 

On MOTION by Mr. Rowell seconded by Mr. Lyons with all in favor to authorize Supervisor Kathy Blessing to review and approve a proposal for door improvement and lock system on the bathrooms  was approved.

Mr. deNagy asked Ms. Graham to send proposals to him and Supervisor Blessing.

Ms. Graham provided an update on the big pavilion. Caution tape was put on it, and it is torn down. The columns are sound, but everything above the columns especially the wooden beams, are bad. I have met with roofers to confirm the problem is with the beams up. Contractors have said they will get proposals to her. They will keep the open beam design and change out the metal roofing. Instead of having the opening at the top, just make it a hip roof where it stays closed. I will get the information to you. I have been in meetings with six different contractors so far. They are interested, but I can't seem to get them in writing. Regarding the mailbox kiosk, I am speaking with Mr. Vickers trying to come up with the right look around the mailboxes. I thought if we had a small little pavilion in the same design as what we have in the current pavilion with little four columns and a little metal roof lower and smaller in scale, it would look good because it would go with the theme of the community. I wanted to put this before the board for consideration. If it is something you might be interested in, Mr. Vickers could design it and engineer it. His proposal for drafting that is $2,400, and that is for the design and engineering of it. You can do something more basic and just put the same kind of metal roof on it.

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May 3, 2018	Heron Isles CDD

Mr. Lyons stated it is going to be low to the ground. It has to cover the mailboxes, so teenagers are going to get up there. If you put shingles, they will tear them up. Metal will give them more of a problem at least.

Mr. deNagy stated to Ms. Graham if there is not an immediate need for this, that is something we can ask the Engineer to build into the amenity improvements we are talking about. Right now, I have to tell the board we don't have the money for that.

Mr. Rowell stated we actually already voted for that didn't we? Mr. deNagy responded we voted for $2,000.
Ms. Graham gave on update on message boards. They are in place and in the new section off of Chester Road, one by the mailbox kiosk, and one by the restrooms. We are putting a new door on the one by the restroom. Ms. Graham continued. In speaking with owners and comments I get from homeowners, Commodore Point continues to be a fairway for vehicles speeding through the community. Owners are asking for speed bumps or consideration of that to slow the vehicles down.

Mr. Lyons stated we have talked about those before, and there was quite a bit of cost on those. I have seen some in other neighborhoods that are made of plastic and have stakes going through them to nail them down. They look to be very effective. I don't know if they would be cheaper than building the asphalt ones, but I think it is something we should look at.
Mr. Walters stated we don't have the authority by statute to regulate traffic, and speed bumps are a traffic control, so the County would have to be involved with that. Each county does it different. With St. John's county, they required a survey asking all the residents if they want speed bumps, and it has to meet a certain threshold. I think it got defeated by like 90%. Nobody likes speed bumps. They like people to slow down, but they hate speed bumps. We can talk to the County and see what is involved with that before we start going down that road.

SIXTH ORDER OF BUSINESS	Consideration   of   Resolution   2018-03
Approving the Proposed Budget for Fiscal
Year 2019 and Setting a Public Hearing Date

for Adoption

Mr. deNagy stated the budget we are looking at now is for approval only. This is does not levy assessments on property owners. That will come when we meet on August 2, which is

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May 3, 2018	Heron Isles CDD

the date we are going to propose to have our Public Hearing. We will meet at the Resident's Inn on Sadler Road. The budget in the agenda package has had to be tweaked a little as we talked. This is a proposed budget only. We do ask the board to approve on the high end. The reason for that is if we do have an assessment increase, which we are proposing, notice is mailed out to all the property owners to let them know there is an assessment increase, and we also try to identify in that letter to the best of our ability the reasons for that increase. Once we get to our budget adoption meeting, if we decide the assessment is too high, we can always bring it down. We cannot at our adoption meeting raise it above what we have approved. It is important today that we set our assessments levels and our approved budget at a level that we think we are going to adopt, but it can always be lowered. Some items have been changed from what is in your agenda package. I changed the landscape maintenance. We approved the Martex proposal, and I changed that to $64,250. I also changed Lake Maintenance to $12,900. The administrative costs are going up slightly. We are at $97,000, and we are proposing $100,000. The more significant increases we see in utilities. We are moving from $77,500 to $78,000. This has to do with estimates with the pool. We increased the budget for our electric costs as well as our water and sewer costs. These are estimates. I have already talked about landscape and lake maintenance. We added line items for pool maintenance, pool chemicals, pool permits, and security. Those costs are based on other District costs we have close to here. One in particular is the Amelia Concourse community where they have a pool and Amenity Center. We added $14,000 for pool maintenance, $6,500 for pool chemicals, $625 for permits, and $6,000 for security. That does not include on the security the capital investment we would make in the hardware, which is the cameras that we would need. Our contract services currently are just under $97,000, and we are moving it up to just under $133,000. Regarding repairs and maintenance, given the discussions we have had, this is a combination of capital outlay and repairs. We are at $16,408 right now. You have $20,000 in front of you. I am going to recommend $30,000. It seems like we have repairs often. We might want to consider increasing our budget for repairs, so another $10,000 was added to that budget. The total field expenditures currently are $190,745, and it is being moved up to $241,000. Overall, expenditures were at $288,000, and we are moving that up to $342,000. Assessments we are currently at $403.58. This is one component of the CDD assessment. The other component is the debt portion. That is the money that goes to pay back the bond for the infrastructure improvements at Heron Isles. If we issue a bond for the pool, we

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May 3, 2018	Heron Isles CDD

would need to have all that in place prior to September 15 in order to get it on our assessments for FY19. I suspect we are not going to get it on this year's bill, so the debt portion will probably not impact this District until FY20, which is November 2019. So the debt service assessment based on that would stay the same. O&M is the other piece of the CDD assessment. We are at $403.58. With the changes that I just went over, it would jump to $490.06. That is an $86 a year increase, which is $7.00+ per month. Are there questions on the budget for FY19. With the pool, we can keep those estimates in there that I talked about regarding the pool – the increase in electric and water, pool maintenance, permits, and security. If you don't think we are going to have the pool installed within the period of October 1, 2018 and September 30, 2019, we can take out or reduce those line items for expenses. I wanted you to have an idea of what the annual cost might be for a pool.

Ms. Blessing stated on the water and sewer, you actually have a lower proposed budget. Mr. deNagy stated yes I do, and the reason for that is if you look at our projection for this

year, we only coming in at $37,000. I am basing it on our projection. So it is lower than what we currently have. We can leave this in our budget for now. We are going to talking about the pool and whether we are going to move forward with that over the next couple of months. What I would recommend is leave the cost in the O&M budget, and then if we find out we are not going to do the pool, we can take them out.

Mr. Rowell stated so the $490,000 could possibly go down if we don't do the pool before the tax goes out.
Mr. deNagy responded let's say we move forward with the pool but we find the timing of the construction is much later in FY 19. It may have a very little impact on FY 19, so we can lower these numbers. If you think we are going to move forward with the pool and construct it fairly soon in the fiscal year, then we are probably going to have those costs. The other line items in your budget are fairly static. We are still planning on having four meetings. Another thing to think about is if Martex doesn't end up doing their job and we go to one of the other firms, their cost is going to be higher. That could impact our FY19 budget. If you want we could put $73,000 in our landscape maintenance, and if everything is okay with Martex, we can lower that number. I say that because we are in the approval process now.

Mr. Rowell stated he wants to keep the budget with the changes noted.

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May 3, 2018	Heron Isles CDD

Mr. deNagy stated the Landscaping will be at $64,250, and Net Assessment would move to $490,006 from approximately $404,000.

On MOTION by Mr. Rowell seconded by Mr. Lyons with all in favor to accept the budget with changes noted and set a Public  Hearing for adoption on August 2, 2018 at 6:00 p.m. was approved.

Mr. deNagy stated there will be a mailed notice sent to all the residents to let them know the O&M portion of the assessments is going up. We will have an opportunity in the public hearing the revisit the budget and change it. It can't go up from what we approved today.

SEVENTH ORDER OF BUSINESS	Consideration   of   Resolution   2018-04

Changing the Designated Registered Agent

Mr. deNagy stated the Registered Agent is another attorney at the firm of Hopping Green and Sams. This would change the designated agent to Jason Walters.
Mr. Walters stated this is a clean-up item for purposes of when you receive notices and so-forth. It was going to another attorney, so we want to clean that up, and you have to do that by resolution.

On MOTION by Mr. Rowell seconded by Ms. Blessing with all in favor Resolution 2018-04 changing the Registered Agent for Heron  Isles CDD to Jason Walters was approved.

EIGHTH ORDER OF BUSINESS	Acceptance  of  the  Audit  Committee's
Recommendation

Mr. deNagy stated this is the board's acceptance of the Audit Committee's recommendation for the ranking. The ranking has Berger Toombs #2, Grau & Associates #2, and McDirmit Davis #3.

On MOTION by Mr. Lyons seconded by Mr. Martyn with all in favor to accept the Audit Committee recommendation of Berger  Toombs Gaines Elam & Frank for audit services was approved.

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May 3, 2018	Heron Isles CDD

NINTH ORDER OF BUSINESS	Approval of Minutes

A.	February 1, 2018 Meeting

Mr. deNagy stated unless there are revisions, I need a motion to approve the minutes.

On MOTION by Mr. Rowell seconded by Ms. Blessing with all in
 favor the minutes of the February 1, 2018 meeting were approved.

B.	March 29, 2018 Special Meeting

Mr. deNagy stated unless there are revisions, I need a motion to approve the minutes.

On MOTION by Mr. Rowell seconded by Mr. Lyons with all in favor the minutes of the March 29, 2018 special meeting were  approved.

TENTH ORDER OF BUSINESS	Acceptance of the Minutes of the February 1,
2018 Audit Committee Meeting

Mr. deNagy stated unless there are revisions, I need a motion to accept the minutes.

On MOTION by Mr. Rowell seconded by Mr. Martyn with all in favor the minutes of the February 1, 2018 Audit Committee meeting  were accepted.

ELEVENTH ORDER OF BUSINESS      Other Business

There being none, the next item followed.

TWELFTH ORDER OF BUSINESS       Staff Reports

A.	District Counsel

Mr. Walters stated I don't have any action items for the board today. I handed out the end of session Capitol Conversations for you review. Not a lot went through, and we came out unscathed.
B.	District Engineer

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May 3, 2018	Heron Isles CDD

Mr. deNagy stated I reached out to Jim Lucas to try to get his Engineering cost estimates. We said earlier for the pool we were looking at about $1.75 million in total, and about $1.5 or $1.6 million will be in construction costs. I will continue to reach to Jim on that and follow-up with anything.
C.	District Manager

Mr. deNagy stated as of April 15, 2018, Heron Isles as 1,076 registered voters. We have the general elections later this year, and anyone interested in serving on the board is encouraged to reach out to the Nassau County Supervisor of Elections for information on how to put your name on the ballot. Two seats will be expiring this year – Seat #2 and Seat #4. Those are Kathy Blessing and Justin Blessing. The period of registering is coming up in June, and it is a small window.

Mr. deNagy stated the other item I want to talk about and ask the board for some help is regarding meetings that have to be cancelled. That has happened in the past, and we don't have a very effective way or means of notifying residents when we cancel meetings. Sometimes they are cancelled at the last minute. We have residents that show up and wonder why we are not having a meeting. I have talked to Cheryl. The HOA has eblast capabilities, that limits whoever is notified to whoever has provided an email address. We can post notices on the bulletin board, but if it is a last-minute thing, most will not see that. We have a CDD website, and it could be posted there, but I don't know how many residents go on the CDD website on a routine basis. We can't always guarantee that we can get a quorum, so that is the reason sometimes of why we don't have a meeting. We have a 5-member board, and 3 must be in attendance in order to have the meeting.

Ms. Graham stated we generally know a day ahead of time when a meeting is going to be cancelled. We can post some signs out at stop signs at each end of Heron Isles Parkway.
Mr. deNagy stated that's fine if you are willing to do that. We can also notify the Compass Group, and they can post a sign on the door.
D.	Property Manager - Report

Ms. Graham stated fence columns on Heron Isles Parkway were damaged because of an automobile accident. I contacted Kathy Williford with Matovina and Company for her assistance with the contractor to do the columns. He said he would take care of them, but he has been so busy he has not been proactive. As soon as they have the home done, they will be able

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May 3, 2018	Heron Isles CDD

to get the columns up. Creative Service & Fence has been on standby waiting for the columns to be in place. It has been a long process trying to get this contractor back on board. A lot of the crown caps on the fence columns are cracked or chipped or need to be refinished. I would like permission to get the quotes for the cost to have those refurbished. I will have those at the next meeting.

THIRTEENTH ORDER OF BUSINESS    Supervisor’s   Requests   and   Audience

Comments

Supervisor Requests

There were no supervisor requests.

Audience Comments

An audience member stated the mailbox kiosk should be taken care of quickly as possible because when they deliver the mail, whether it is storming or blowing wind, I have had a lot of stuff ruined. It is an ongoing problem, and if it could be taken care of quickly, it would be appreciated.
Another audience member stated there is a part of fence from Heron Isles going onto Coral Reef on the right, it was damaged by the hurricane and has not been fixed yet.

Ms. Graham stated I will get Mark to come out sooner because there are other sections along the Parkway as well.

FOURTEENTH ORDER OF BUSINESS    Financial Reports

A.	Balance Sheet & Income Statement

These are as of March 31, 2018 and are located in the agenda package.

B.	Assessment Receipt Schedule

This item is located in the agenda package.

C.	Approval of Check Register

Mr. deNagy stated the total of the check register is $38,316.19.

On MOTION by Mr. Rowell seconded by Mr. Lyons with all in favor the Check Register in the amount of $38,316.19 was  approved.                                           

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May 3, 2018	Heron Isles CDD

FIFTEENTH ORDER OF BUSINESS      Next Scheduled Meeting

Mr. deNagy stated our next scheduled meeting will be August 2, 2018 at 6:00 p.m. at the Residence Inn Amelia Island, 2013 Sadler Road, Fernandina Beach, Florida.

SIXTEENTH ORDER OF BUSINESS      Adjournment

On MOTION by Mr. Rowell seconded by Mr. Martyn with all in
 favor the Meeting was adjourned.

Secretary/Assistant Secretary	Chairman/Vice Chairman

18

TENTH ORDER OF BUSINESS

MINUTES OF MEETING
HERON ISLES COMMUNITY DEVELOPMENT DISTRICT

The Audit Committee meeting of the Board of Supervisors of the Heron Isles Community Development District was held on Thursday, May 3, 2018 at 10:30 a.m. at the Compass Group Conference Room, 961687 Gateway Blvd., Suite 201M, Amelia Island, Florida.

Present and constituting a quorum were:

Ricky Rowell	Chairman
Don Lyons	Vice Chairman
Kathleen Blessing	Supervisor

Robert Martyn	Supervisor

Also present were:

Dave deNagy	District Manager
Jason Walters	District Counsel

FIRST ORDER OF BUSINESS	Roll Call

Mr. deNagy called the meeting to order at 10:30 a.m.

SECOND ORDER OF BUSINESS	Review and Ranking of the FY18 Audit
Proposals

Mr. deNagy stated you were made aware that the audit services for the current fiscal year, 2018, was not covered under the terms of the agreement with our audit firm, McDirmit Davis. We went out for bid for proposals to continue audit services as we do to audit our records. We received three bids from the firms of Grau & Associates, McDirmit Davis (who is the incumbent), and Berger Toombs Elam Gaines & Frank. The proposals are evaluated on five criteria with each weighted at 20 points for a total of 100 points. The five categories include Ability of Personnel, Proposer's Experience, Understanding Scope of Work, Ability to Furnish Required Services, and Price. We can rank the proposals by the board if you like. Staff has taken the liberty of going ahead and reviewing these proposals and scoring.

Mr. Rowell stated I would like to hear what staff has put together.

May 3, 2018 - Audit Committee Meeting	Heron Isles CDD

Mr. deNagy stated we deal with all three firms and are very familiar with them. They are competent and have the personnel and experience. I gave all three firms 20 points each on the first four categories. The break point was in price. We are seeing lower prices than we are currently paying. The incumbent is charging $3,700. We have received bids as low as $3,200 for the next fiscal year. What I did was evaluate the bids submitted by the firms over the three-year period. For all three years, Grau & Associates totals $9,900; McDirmit Davis was $12,000; and Berger Toombs came in at $9,750. I have ranked Berger Toombs #1 with 100 points. Grau & Associates was #2 with 99.7 points, and McDirmit Davis #3. There was only a $150 spread between 1 and 2. If it is okay with the board, we can issue an award letter ranking Berger Toombs #1. We will also notify the other two firms of that ranking.

On MOTION by Mr. Lyons seconded by Mr. Rowell with all in favor to award Berger Toombs Elam Gaines & Frank audit  services for three years was approved.                      

THIRD ORDER OF BUSINESS	Other Business

There was no other business.

FOURTH ORDER OF BUSINESS	Adjournment

On MOTION by Mr. Rowell seconded by Mr. Lyons with all in
 favor the Audit Committee Meeting was adjourned.

2

TWELFTH ORDER OF BUSINESS

C.

Notice of Meetings
Heron Isles

Community Development District

The Board of Supervisors of the Heron Isles Community Development District will hold their regularly scheduled public meetings for Fiscal Year 2019 at the Compass

Group Conference Room, 961687 Gateway Blvd., Suite 201M, Amelia Island, Florida at 10:30 A.M. on the first Thursday of the following months (*exceptions noted):

November 1, 2018

February 7, 2019 May 2, 2019

August 1, 2019 (*to be held at 6:00 p.m. at the Residence Inn Amelia Island, 2301 Sadler Road, Fernandina Beach, Florida)

D.

Heron Isles Community Development District

Community Report - August 2018

Community Maintenance

Landscaping:

There were some problems with Martex Landscaping failing to groom certain areas of the community on a regular basis but after a discussion with the owner of the company, the service has improved. Landscape contractors were issued an invitation to bid on services for the fiscal year 2018-2019. Attached is a comparison worksheet and the proposals from Trim All Lawn Service, Yellowstone Landscape and Martex Services.

Janitorial Services:

All Repairs and Maintenance Service has been providing janitorial services and picking up debris around the ponds in an acceptable manner. They have been notified of the construction taking place at the restroom facility and the pavilion. Waste removal from both parks is to continue on the regular schedule. Vladimir will be notified when construction is completed so they can clean the restrooms before used by the owners.

Fence Columns – Vehicle Damage:

One of the two (2) columns that were damaged during the automobile accident have yet to be reconstructed. The original contractor referred by Kathy Williford of Matovina & Company was non-responsive to requests to do the work. Other contractors had been contacted for quotes however the construction plans were needed in order to construct in the same manner as originally built. With assistance from Kathy Williford of Matovina & Company, the contractor has completed repairs to one column, the second will be completed as soon as possible. Creative Service & Fence will install the panels once the column has been constructed.

Restroom Repairs:

After authorization by the board to proceed, Shorebreak, Inc. began removing the remaining sheetrock from the walls in the men’s restroom. It was then discovered that the termite damage was so extensive that the support studs needed to be replaced and the overhead support had to be rebuilt so that the roof had something to attach to. When removal of the restroom doors began, it was discovered that the support studs in the first 5’ of the wall was not stable. The contractor was instructed to remove the 5’ and install new studs. This will strengthen the wall and aid in the alignment of the new doors.

Signage:

The Stop sign at the corner of Yellowtail Drive and Commodore Pointe Drive has been replaced. The original sign had been used for target practice. A Caution - Special Needs Children in Area has been placed on Graylon Drive. The owner at 96188 Graylon has two children young children that drivers needs to be aware of.

Pavilion at Playground:

Shorebreak, Inc. will be replacing the roof and support beams in the pavilion. Work will immediately follow the repairs to the restrooms and expected to commence during the week of August 6, 2018.

Annual Maintenance:

On-Target Renovations has been asked to submit a quote to clean, repair and paint each stucco top on the masonry columns excluding those recently installed at the entrance of Phase 3C off of Chester Road – north of Heron Isles Pkwy. Quote has not come in yet.

The sidewalk along Heron Isles Parkway and Chester Road needs to be cleaned/pressure washed. The sidewalks in common areas on Coral Reef and Commodore Pointe also need to be cleaned.

A quote from SG Maintenance Services has been provided for this work.

FOURTEENTH ORDER OF BUSINESS

A.

Heron Isles

Community Development District

Unaudited Financial Statements

thru June 30, 2018

Meeting Date

August 2, 2018

Heron Isles

COMMUNITY DEVELOPMENT DISTRICT
BALANCE SHEET
June 30, 2018

					Total		
			Debt		Governmental		
	General		Service		Funds		
ASSETS:							
Cash	$10,294	---	$10,294		
State Board	$203	---	$203		
Custody-Reserves	$750	---	$750		
Custody-Excess Funds	$195,606	---	$195,606		
Investments:							
Series 2017A-1							
Revenue	---	$57,925	$57,925		
Excess Revenue	---	$29,950	$29,950		
Series 2017A-2							
Reserve	---	$35,875	$35,875		
Prepayment	---	$5,428	$5,428		
Prepaid Expenses	$0	---	$0		
Electric Deposits	$1,050	---	$1,050		
							
TOTAL ASSETS	$207,903	$129,178	$337,081		
LIABILITIES:							
							
Accounts Payable	$28,827	---	$28,827		
FUND BALANCES:							
Restricted for Debt Service	---	$129,178	$129,178		
Restricted for Capital Projects	---	---	$0		
Nonspendable	$1,050	---	$1,050		
Assigned	$37,395	---	$37,395		
Unassigned	$140,632		---		$140,632		
TOTAL LIABILITIES & FUND EQUITY	$207,903	$129,178	$337,081		
& OTHER CREDITS					

Page 1

9

HERON ISLES

COMMUNITY DEVELOPMENT DISTRICT

General Fund

Statement of Revenues, Expenditures and Changes in Fund Balance

For The Period Ending June 30, 2018

	ADOPTED		PRORATED		ACTUAL				
	BUDGET		THRU 6/30/2018		THRU 6/30/2018		VARIANCE		
Revenues									
Assessments - On Roll	$281,122	$281,122	$282,980	$1,858		
Interest Income	$0	$0	$349	$349		
TOTAL REVENUES							
	$281,122		$281,122		$283,329		$2,207		
Expenditures									
Administrative									
Supervisors	$4,000	$3,000	$4,400	($1,400)		
FICA Expense	$306	$230	$337	($107)		
Engineering	$5,000	$3,750	$2,220	$1,530		
Dissemination	$1,500	$1,125	$1,125	$0		
Assessment Roll	$7,500	$7,500	$7,500	$0		
Attorney	$15,000	$11,250	$7,637	$3,613		
Auditing	$3,700	$3,700	$3,700	$0		
Trustee Fees	$2,200	$0	$0	$0		
Management Fees	$43,260	$32,445	$32,445	$0		
Computer Time	$1,000	$750	$750	$0		
Website Compliance	$500	$375	$375	($0)		
Telephone	$100	$75	$150	($75)		
Postage	$500	$375	$983	($608)		
Printing & Binding	$1,250	$938	$1,127	($190)		
Meeting Room Rental	$1,300	$975	$400	$575		
Insurance	$6,646	$6,646	$6,042	$604		
Legal Advertising	$1,800	$1,350	$2,611	($1,261)		
Other Current Charges	$1,000	$750	$965	($215)		
Office Supplies	$100	$75	$63	$12		
Dues, Licenses & Subscriptions	$175	$175	$175	$0		
Capital Outlay	$250	$188	$0	$188		
									
Total Administrative Expenditures	$97,087	$75,670	$73,005	$2,666		
Utilities									
Electric	$21,000	$15,750	$18,997	($3,247)		
Water & Sewer	$56,500	$42,375	$32,437	$9,938		
									
Total Utilities	$77,500	$58,125	$51,433	$6,692		
Contract Services									
Landscape Maintenance	$57,072	$47,931	$47,931	$0		
Irrigation Maintenance	$3,000	$2,250	$1,669	$581		
Lake Maintenance	$12,900	$9,675	$9,675	$0		
Janitorial Services	$7,200	$5,400	$5,400	$0		
Trash Removal Services	$7,440	$5,580	$4,500	$1,080		
Management Company	$9,000	$6,750	$6,750	$0		
Pest Control Services	$225	$169	$0	$169		
Holiday Decorations	$0	$0	$1,161	($1,161)		
									
Total Contract Services	$96,837		$77,755		$77,086		$669		

Page 2

HERON ISLES

COMMUNITY DEVELOPMENT DISTRICT

General Fund

Statement of Revenues, Expenditures and Changes in Fund Balance

For The Period Ending June 30, 2018

	ADOPTED		PRORATED		ACTUAL				
	BUDGET		THRU 6/30/2018		THRU 6/30/2018		VARIANCE		
Repairs & Maintenance									
Repairs & Maintenance	$16,408	$12,306	$22,374	($10,068)		
Total Repairs & Maintenance						
	$16,408		$12,306		$22,374		($10,068)		
TOTAL EXPENDITURES						
	$287,832		$223,857		$223,898		($42)		
								
EXCESS REVENUES (EXPENDITURES)	($6,710)				$59,431				
FUND BALANCE - Beginning	$6,711			$119,647				
								
FUND BALANCE - Ending	$0				$179,077				

Page 3

Heron Isles
COMMUNITY DEVELOPMENT DISTRICT

	October	November	December	January	February	March	April	May	June	July	August	September	Total		
REVENUES:															
Maintenance Assessments	$0	$20,157	$227,185	$3,702	$5,584	$4,675	$8,093	$4,249	$9,333				$282,980		
Interest Income	$22	$22	$17	$40	$49	$46	$46	$56	$51				$349		
TOTAL REVENUES															
															
	$22	$20,179	$227,202	$3,742	$5,633	$4,721	$8,139	$4,305	$9,385	$0	$0	$0	$283,329		
EXPENDITURES:															
															
Administrative:															
Supervisors	$0	$1,000	$1,000	$0	$1,000	$0	$600	$800	$0				$4,400		
FICA Expense	$0	$77	$77	$0	$77	$0	$46	$61	$0				$337		
Engineering	$0	$0	$0	$1,665	$555	$0	$0	$0	$0				$2,220		
Attorney	$161	$1,150	$1,173	$519	$1,173	$1,560	$479	$1,423	$0				$7,637		
Dissemination	$125	$125	$125	$125	$125	$125	$125	$125	$125				$1,125		
Trustee Fees	$0	$0	$0	$0	$0	$0	$0	$0	$0				$0		
Annual Audit	$0	$0	$0	$0	$0	$0	$0	$0	$3,700				$3,700		
Assessment Roll Services	$7,500	$0	$0	$0	$0	$0	$0	$0	$0				$7,500		
Management Fees	$3,605	$3,605	$3,605	$3,605	$3,605	$3,605	$3,605	$3,605	$3,605				$32,445		
Computer Time	$83	$83	$83	$83	$83	$83	$83	$83	$83				$750		
Website Administration	$42	$42	$42	$42	$42	$42	$42	$42	$42				$375		
Telephone	$0	$0	$30	$0	$36	$22	$0	$32	$31				$150		
Postage	$55	$20	$81	$55	$12	$13	$132	$1	$615				$983		
Printing & Binding	$9	$92	$97	$41	$68	$0	$6	$110	$703				$1,127		
Insurance	$6,042	$0	$0	$0	$0	$0	$0	$0	$0				$6,042		
Legal Advertising	$248	$393	$0	$295	$614	$614	$248	$200	$0				$2,611		
Other Current Charges	$41	$0	$190	$25	$70	$37	$538	$37	$27				$965		
Meeting Room Rental	$0	$100	$0	$100	$100	$0	$100	$0	$0				$400		
Office Supplies	$0	$15	$0	$15	$15	$0	$0	$18	$0				$63		
Dues, Licenses, Subscriptions	$175	$0	$0	$0	$0	$0	$0	$0	$0				$175		
Capital Outlay	$0	$0	$0	$0	$0	$0	$0	$0	$0				$0		
Total Administrative	$18,086	$6,701	$6,502	$6,571	$7,574	$6,101	$6,002	$6,538	$8,931	$0	$0	$0	$73,005		
Maintenance:															
															
Electric	$2,149	$2,149	$2,150	$2,154	$2,146	$2,053	$2,072	$2,082	$2,040				$18,997		
Water & Sewer	$4,873	$4,999	$3,030	$2,049	$1,804	$1,971	$2,944	$4,535	$6,232				$32,437		
Landscape Maintenance	$4,765	$4,932	$4,765	$7,165	$4,765	$4,765	$4,765	$4,765	$7,245				$47,931		
Irrigation Repairs	$256	$0	$62	$0	$22	$194	$129	$186	$819				$1,669		
Lake Maintenance	$1,075	$1,075	$1,075	$1,075	$1,075	$1,075	$1,075	$1,075	$1,075				$9,675		
Janitorial	$600	$600	$600	$600	$600	$600	$600	$0	$1,200				$5,400		
Trash Removal Services	$500	$500	$500	$500	$500	$500	$500	$0	$1,000				$4,500		
Management Company	$750	$750	$750	$750	$750	$750	$750	$750	$750				$6,750		
Pest Control	$0	$0	$0	$0	$0	$0	$0	$0	$0				$0		
Repairs & Maintenance	$4,436	$835	$120	$1,595	$620	$240	$120	$11,183	$3,224				$22,374		
Holiday Decorations	$1,161	$0	$0	$0	$0	$0	$0	$0	$0				$1,161		
Total Maintenance															
															
	$20,565	$15,839	$13,053	$15,888	$12,283	$12,148	$12,956	$24,577	$23,586	$0	$0	$0	$150,894		
Total Expenditures															

	$38,651	$22,540	$19,555	$22,458	$19,857	$18,249	$18,958	$31,114	$32,517	$0	$0	$0	$223,898		
TOTAL OTHER SOURCES AND USES															
															
Interfund Transfer In / (Out)	$0	$0	$0	$0	$0	$0	$0	$0	$0				$0		
Total Other Sources and Uses															
	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0		
Excess Revenues (Expenditures)															
	($38,628)	($2,361)	$207,647	($18,716)	($14,224)	($13,528)	($10,818)	($26,809)	($23,132)	$0	$0	$0	$59,430		

HERON ISLES

COMMUNITY DEVELOPMENT DISTRICT

DEBT SERVICE FUND - SERIES 2017

Statement of Revenues, Expenditures and Changes in Fund Balance

	For The Period Ending June 30, 2018						
										
		ADOPTED		PRORATED		ACTUAL			
		BUDGET		THRU 6/30/2018	THRU 6/30/2018	VARIANCE		
REVENUES:										
										
Special Assessments - On Roll	$232,954	$232,954	$234,525		$1,571		
Prepayments	$0	$0	$74,676		$74,676		
Interest Income	$0	$0	$351		$351		
TOTAL REVENUES										
	$232,954	$232,954	$309,552		$76,598		
EXPENDITURES:										
Series 2017A1										
Interest - 11/1	$21,749	$21,749	$21,749		$0		
Special Call - 11/1	$0	$0	$10,000		($10,000)		
Interest - 5/1	$31,828	$31,828	$31,659		$169		
Principal - 5/1	$95,000	$95,000	$95,000		$0		
Special Call - 5/1	$0	$0	$75,000		($75,000)		
Series 2017A2										
Interest - 11/1	$14,521	$14,521	$14,521		$0		
Special Call - 11/1	$0	$0	$5,000		($5,000)		
Interest - 5/1	$21,250	$21,250	$21,125		$125		
Principal - 5/1	$25,000	$25,000	$25,000		$0		
TOTAL EXPENDITURES										
	$209,348	$209,348	$299,054		($89,706)		
OTHER SOURCES/(USES):										
Interfund Transfer In(Out)	$0	$0	$8,646		$8,646		
TOTAL OTHER										
		$0		$0		$8,646		$8,646		
										
EXCESS REVENUES (EXPENDITURES)		$23,606				$19,143				
FUND BALANCE - Beginning	$56,419			$110,035				
FUND BALANCE - Ending								
		$80,024				$129,178				

Page 4

Heron Isles

COMMUNITY DEVELOPMENT DISTRICT
CAPITAL PROJECTS FUND - SERIES 2017

Statement of Revenues, Expenditures and Changes in Fund Balance

For The Period Ending June 30, 2018

	ADOPTED		PRORATED		ACTUAL				
	BUDGET		THRU 6/30/2018	THRU 6/30/2018		VARIANCE		
REVENUES:									
Interest Income	$0	$0	$2	$2		
									
TOTAL REVENUES	$0	$0	$2	$2		
EXPENDITURES:									
Cost of Issuance	$0	$0	$0	$0		
									
TOTAL EXPENDITURES	$0	$0	$0	$0		
OTHER SOURCES/(USES):									
Interfund Tranfer In/(Out)	$0	$0	($8,646)	($8,646)		
TOTAL OTHER									
	$0		$0		($8,646)		($8,646)		
									
EXCESS REVENUES (EXPENDITURES)	$0				($8,644)				
FUND BALANCE - Beginning	$0			$8,644				
									
FUND BALANCE - Ending	$0			$0				

Page 5

B.

HERON ISLES COMMUNITY DEVELOPMENT DISTRICT

FISCAL YEAR 2018 ASSESSMENT RECEIPTS SUMMARY

			SERIES 2017A1-2					
		# UNITS	DEBT SERVICE		FY18 O&M	TOTAL		
ASSESSED		ASSESSED	ASSESSED		ASSESSED	ASSESSED		
NET REVENUE TAX ROLL	749	232,953.84		281,121.72	514,075.56		
TOTAL NET ASSESSMENTS							
		232,953.84		281,121.72	514,075.56		
								
SUMMARY OF TAX ROLL RECEIPTS				
		DATE			DEBT SERVICE	O&M		
NASSAU COUNTY DISTRIBUTION		RECEIVED	TOTAL RECEIVED		RECEIPTS	RECEIPTS		
1		11/06/17	2,539.21		1,150.65	1,388.56		
2		11/22/17	39,102.88		17,719.51	21,383.37		
3		12/08/17	353,356.75		160,123.95	193,232.80		
4		01/02/18	62,087.63		28,135.07	33,952.56		
5		01/11/18	6,770.06		932.61	5,837.45		
6		02/06/18	10,210.45		4,626.88	5,583.57		
7		03/09/18	8,549.64		3,874.28	4,675.36		
8		04/10/18	14,799.86		6,706.57	8,093.29		
9		04/12/18	-		-	-		
10		05/11/18	7,770.03		3,521.00	4,249.03		
11		06/08/18	-		-	-		
TAX CERTIFICATES	06/13/18	17,067.48		7,734.15	9,333.33		
13		07/16/18	1,930.20		874.67	1,055.53		
					-	-		
					-	-		
					-	-		
TOTAL TAX ROLL RECEIPTS		524,184.19		235,399.33	288,784.86		
								
TOTAL DUE TAX ROLL RECEIPTS		(10,108.63)		(2,445.49)	(7,663.14)		
								
PERCENT COLLECTED		TOTAL		DEBT	O&M		
% COLLECTED TAX ROLL		101.97%		101.05%	102.73%		

C.

Heron Isles

Community Development District

Check Register Summary- General Fund

	4/27/2018 - 6/30/2018		
Check Date	Check #'s	Total Amount	
5/18/2018	1685-1695	$18,285.69	
6/7/2018	1696-1705	$29,210.78	
6/18/2018	1706-1709	$6,882.19	
6/26/2018	1710	$465.00	
Total		$54,843.66	

AP300R			YEAR-TO-DATE ACCOUNTS PAYABLE PREPAID/COMPUTER CHECK REGISTER	RUN  7/19/18	PAGE	1	
*** CHECK DATES	04/27/2018 - 06/30/2018 ***	HERON ISLES CDD - GENERAL FUND					
				BANK A HERON ISLES - GF					
CHECK  VEND#	.....INVOICE..... ...EXPENSED TO...	VENDOR NAME	STATUS	AMOUNT	....CHECK.....	
DATE	DATE	INVOICE	YRMO  DPT ACCT# SUB	SUBCLASS			AMOUNT	#	
5/18/18 00045	5/07/18	1119	201804 320-57200-46600		*	600.00			
		JANITORIAL SVC-APRIL 2018						
	5/07/18	1119	201804 320-57200-46700		*	500.00			
		TRASH PICKUP-APRIL 2018							
	5/07/18	1119	201804 320-57200-46000		*	120.00			
		DEBIRS CLEANUP-APRIL 2018						
				ALL REPAIRS & MAINTENANCE			1,220.00 001685	
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
5/18/18 00003   5/08/18 6-175-64 201804 310-51300-42000	*	130.02	
DELIVERIES THRU  04/27/18			
FEDEX		130.02 001686	
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
5/18/18 00013	4/16/18 APR-18	201804	320-57200-43000	*	2,072.36	
	ELECTRIC-APRIL	2018			
			FPL		2,072.36 001687	
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
5/18/18 00014	5/01/18 168	201805 310-51300-34000	*	3,605.00	
	MGMT FEES-MAY 2018			
	5/01/18 168	201805 310-51300-35110	*	83.33	
	WEBSITE	ADMIN-MAY 2018			
	5/01/18 168	201805 310-51300-35100	*	41.67	
	INFO TECH-MAY 2018			
	5/01/18 168	201805 310-51300-31300	*	125.00	
	DISSEMINATION-MAY 2018			
	5/01/18 168	201805 310-51300-51000	*	17.50	
	OFFICE SUPPLIES-MAY 2018			
	5/01/18 168	201805 310-51300-42000	*	1.41	
	POSTAGE-MAY 2018			
	5/01/18 168	201805 310-51300-42500	*	110.40	
	COPIES-MAY 2018			
	5/01/18 168	201805 310-51300-41000	*	31.52	
	TELEPHONE-MAY 2018			
		GOVERNMENTAL MANAGEMENT SERVICES		4,015.83 001688	
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
5/18/18 00006	2/28/18 99579	201802 310-51300-31500	*	1,173.00	
	GENERAL	COUNSEL-FEB 2018			
		HOPPING GREEN & SAMS		1,173.00 001689	
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
5/18/18 00019   3/29/18 4178	201802 310-51300-31100	*	555.00	
ENGINEERING SVC-FEB 2018			
	J. LUCAS & ASSOCIATES, INC		555.00 001690	
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
5/18/18 00011	4/25/18	7883-042	201804 320-57200-43100	*	1,909.40	
		IRRIGATION-APRIL 2018			
	4/25/18	7883-042	201804 320-57200-43100	*	776.70	
		SEWER-APRIL 2018			
			HIC	-HERON ISLES - MPHILLIPS		

AP300R	YEAR-TO-DATE ACCOUNTS PAYABLE PREPAID/COMPUTER CHECK REGISTER	RUN  7/19/18	PAGE	2		
*** CHECK DATES 04/27/2018 - 06/30/2018 ***	HERON ISLES CDD - GENERAL FUND						
			BANK A HERON ISLES - GF						
CHECK  VEND#	.....INVOICE..... ...EXPENSED TO...	VENDOR NAME	STATUS	AMOUNT	....CHECK.....		
DATE	DATE   INVOICE   YRMO	DPT ACCT# SUB	SUBCLASS			AMOUNT	#		
	4/25/18 7883-042 201804	320-57200-43100		*	258.30				
	WATER-APRIL 2018	JEA				2,944.40 001691		
									
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
5/18/18 00062   5/01/18 637-0501 201805 320-57200-34000	*	750.00	
MGMT FEE-MAY 2018			
LELAND MANAGEMENT INC		750.00 001692	
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
5/18/18 00082	4/02/18 895	201804 320-57200-46200	*	4,765.00	
	MAINT CONTRACT-APRIL 2018			
		MARTEX SERVICES		4,765.00 001693	
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
5/18/18 00058	5/07/18 426824	201805 310-51300-48000	*	200.08	
	NOTICE OF PUBLIC HEARING			
		NEWS LEADER		200.08 001694	
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
5/18/18 00087   5/11/18 18428	201805	320-57200-46000	*	460.00		
MESSAGE	BOARDS	SG MAINTENANCE SERVICES INC		460.00 001695		
						
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
6/07/18 00045   6/04/18 1131	201806 320-57200-46600	*	600.00	
JANITORIAL SVC-05/31/18			
6/04/18 1131	201806 320-57200-46700	*	500.00	
TRASH PICKUP-05/31/18			
6/04/18 1131	201806 320-57200-46000	*	120.00	
DEBRIS CLEANIP-05/31/18			
	ALL REPAIRS & MAINTENANCE		1,220.00 001696	
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
6/07/18 00013	5/16/18 04061-05 201805 320-57200-43000	*	28.82	
	ELECTRIC-MAY 2018			
	FPL		28.82 001697	
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
6/07/18 00014	6/01/18 169	201806 310-51300-34000	*	3,605.00	
	MGMT FEES-JUNE	2018			
	6/01/18 169	201806 310-51300-35110	*	83.33	
	WEBSITE	ADMIN-JUNE 2018			
	6/01/18 169	201806 310-51300-35100	*	41.67	
	INFO TECH-JUNE 2018			
	6/01/18 169	201806 310-51300-31300	*	125.00	
	DISSEMINATION-JUNE 2018			
	6/01/18 169	201806 310-51300-51000	*	.09	
	SUPPLIES-JUNE 2018			
	6/01/18 169	201806 310-51300-42000	*	13.85	
	POSTAGE-JUNE 2018			
	6/01/18 169	201806 310-51300-42500	*	18.90	
	COPIES-JUNE 2018			
			HIC	-HERON ISLES - MPHILLIPS		

AP300R		YEAR-TO-DATE ACCOUNTS PAYABLE PREPAID/COMPUTER CHECK REGISTER	RUN  7/19/18	PAGE	3		
*** CHECK DATES 04/27/2018 - 06/30/2018 ***	HERON ISLES CDD - GENERAL FUND						
				BANK A HERON ISLES - GF						
CHECK  VEND#	.....INVOICE..... ...EXPENSED TO...	VENDOR NAME	STATUS	AMOUNT	....CHECK.....		
DATE	DATE   INVOICE	YRMO	DPT ACCT# SUB	SUBCLASS			AMOUNT	#		
	6/01/18 169	201806	310-51300-41000		*	31.07				
	TELEPHONE-JUNE	2018	GOVERNMENTAL MANAGEMENT SERVICES			3,918.91 001698		
									
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
6/07/18 00006	3/31/18 100116	201803 310-51300-31500	*	1,559.50	
	GENERAL	COUNSEL-MAR 2018			
		HOPPING GREEN & SAMS		1,559.50 001699	
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
6/07/18 00011   5/25/18 7883-052 201805 320-57200-43100	*	4,535.06	
WATER SVC THRU 5/24/18			
JEA		4,535.06 001700	
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
6/07/18 00082	4/30/18	1561	201804 320-57200-46250	*	128.85	
		IRRIGATION REPAIR-APR 18			
	5/01/18	1381	201805 320-57200-46200	*	4,765.00	
		MAINT CONTRACT-MAY 2018			
			MARTEX SERVICES		4,893.85 001701	
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
6/07/18 00084   5/22/18 54718	201805 320-57200-46000	*	285.00	
BLACKTOP/INFILL POT HOLE			
	MASONRY PLUS PROPERTY SERVICES,LLC		285.00 001702	
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
6/07/18 00103	5/02/18 1326	201805 320-57200-46000	*	1,445.99	
	50%	DEPOSIT-MENS ROOM			
	5/10/18 1334	201805 320-57200-46000	*	8,204.73	
	50%	DEPOSIT-GAZEBO ROOF			
	5/18/18 1343	201805 320-57200-46000	*	787.50	
	50%	DEPOSIT-RESTROOM DOOR			
		SHOREBREAK INC		10,438.22 001703	
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
6/07/18 00015	5/01/18 358235	201805	320-57200-46500	*	1,075.00	
	WATER	MGMT-MAY	2018			
			THE LAKE DOCTORS, INC.		1,075.00 001704	
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
6/07/18 00070	6/07/18	142363	201806 310-51300-42500	*	684.44		
		NOTICES					
	6/07/18	142363	201806 310-51300-42000	*	571.98		
		POSTAGE	ADVANCED DIRECT MARKETING SERVICES		1,256.42 001705		
							
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
6/18/18 00013	5/16/18 MAY-18	201805 320-57200-43000	*	2,053.43	
	ELECTRIC-MAY 2018			
		FPL		2,053.43 001706	
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
6/18/18 00062   6/12/18 637-0612 201806 320-57200-34000	*	750.00	
MGMT FEE-06/11/18			
LELAND MANAGEMENT INC		750.00 001707	
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

HIC  -HERON ISLES - MPHILLIPS

AP300R		YEAR-TO-DATE ACCOUNTS PAYABLE PREPAID/COMPUTER CHECK REGISTER	RUN  7/19/18	PAGE	4		
*** CHECK DATES 04/27/2018 - 06/30/2018 ***	HERON ISLES CDD - GENERAL FUND						
				BANK A HERON ISLES - GF						
CHECK  VEND#	.....INVOICE..... ...EXPENSED TO...	VENDOR NAME	STATUS	AMOUNT	....CHECK.....		
DATE	DATE   INVOICE	YRMO	DPT ACCT# SUB	SUBCLASS			AMOUNT	#		
6/18/18 00058	6/15/18 436425	201807	310-51300-48000		*	3,003.76				
	NOTICE OF PUBLIC HEARING	NEWS LEADER			3,003.76 001708		
									
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
6/18/18 00015	6/01/18 711057	201806 320-57200-46500	*	1,075.00	
	WATER	MGMT-JUNE 2018			
		THE LAKE DOCTORS, INC.		1,075.00 001709	
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
6/26/18 00081   8/02/18 08022018 201808 310-51300-44500	*	465.00	
8/2/18 MTNG ROOM RENTAL			
RESIDENCE INN AMELIA ISLAND		465.00 001710	
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

TOTAL	FOR	BANK A	54,843.66	
TOTAL	FOR	REGISTER	54,843.66	

HIC  -HERON ISLES - MPHILLIPS