Reunion East/West Community Development Districts Budgets

PresentationFY 2011

August 26, 2010

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What is a CDD? Special Purpose District created under

Chapter 190, Florida Statutes CDDs have limited powers which are

defined in Chapter 190. Subject to Government in the Sunshine and

Ethics Laws Subject to public records laws

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What is a CDD? (cont.) Must adopt annual budgets in accordance

with Florida Statutes and the Truth in Millage Act.

Required to have an annual independent audit

Disclosure requirements◦ Chapter 190 requires that the following language

be inserted in the sales contract in bold conspicuous type immediately preceding the signature:

"THE  (Name of District)  COMMUNITY DEVELOPMENT DISTRICT MAY IMPOSE AND LEVY TAXES OR ASSESSMENTS, OR BOTH TAXES AND ASSESSMENTS, ON THIS PROPERTY. THESE TAXES AND ASSESSMENTS PAY THE CONSTRUCTION, OPERATION, AND MAINTENANCE COSTS OF CERTAIN PUBLIC FACILITIES AND SERVICES OF THE DISTRICT AND ARE SET ANNUALLY BY THE GOVERNING BOARD OF THE DISTRICT. THESE TAXES AND ASSESSMENTS ARE IN ADDITION TO COUNTY AND OTHER LOCAL GOVERNMENTAL TAXES AND ASSESSMENTS AND ALL OTHER TAXES AND

ASSESSMENTS PROVIDED FOR BY LAW."

Reunion East and West CDDs were created in 2001 by separate Osceola County Ordinances

Bonds Issued for Infrastructure (30 year terms)◦ Reunion East CDD Series

2002 2003 2005

◦ Reunion West CDD Series 2004

Background

Planned Infrastructure◦ Roadways

On-site and Off-site◦ Water, Wastewater & Stormwater Facilities◦ Recreation Facilities

Background

Direct Bills Not Being Paid

Recent Events

District Landownder Total O & M Total Debt Total Due

Reunion EastGinn Reunion Borrowers (FY 2010) $960,889 $2,729,714 $3,690,603

District Landownder Total O & M Total Debt Total Due

Reunion West Ginn Reunion Borrowers (FY 2010) $257,607.00 $736,107.00 $993,714.00

Fourth Quarter Properties (FY 2009 and FY 2010)

$1,628,494 $4,661,562 $6,290,056

Foreclosure Process◦ Delinquent Direct Bill Property Owners

Ginn Reunion Borrowers – Working on a Forbearance Agreement

◦ Fourth Quarter Properties Proceeding with Foreclosure Process

Recent Events

Uncollected Assessments (FY 09 and FY 10): ◦ Reunion East

O & M – Approx $960 K Debt Service – Approx $2.7 M

◦ Reunion West O & M – Approx $1.88 M Debt Service – Approx $5.39 M

Budgetary Impacts

Reduced Landscape Contract Services levels 5 times for a total annual savings of $866 K◦ Reduced Mowing Frequency◦ Replacement of Annuals w/Perennials

Steps to Reduce Current Budgets

Original 11/1/2006

Amendment 1 4/1/2007

Amendment 2 8/1/2007

Amendment 3 3/1/2009

Amendment 4 1/1/2010

Amendment 5 3/1/2010

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$1,600,000

$1,800,000

Eliminated Street Sweeping for an Annual Savings of Approx. $20K

Shut Down Seven Eagles Fountain Saving Electricity and Maintenance

Enter into Agreement with Developer of Terraces to fund the electricity and maintenance of fountain

Steps to Reduce Current Budgets

Reduced Utility Expenses by shutting off heat to selected pools

Reduced Security Costs to the CDD by Reducing Annual payments from $228,000 to $140K for East and from $172,000 to $1 for West

Steps to Reduce Current Budgets

Option 1: Increase Assessments – Current Level of Service (Revised Proposed Budget)◦ Reflects Budget Adjustments made in FY 2010◦ Maintains Current Levels of Service◦ Reflects Adjusted Allocation of Shared Costs◦ Brings Budget in line with Actuals◦ Funds a Reserve for Timing of Direct Bill Payments◦ Reduces Management Services Agreement by

$60k◦ Eliminates Some Contingency Funds

FY 2011 Budget Options

Option 2: Increase Assessments – Reduce Level of Service◦ All Items Found in Option 1, Plus:

Landscaping Reduces frequency of cuts on Zoysia from 36 to 32 annually Reduces frequency of cuts on Bahia from 24 to 12 annually

(except for Patriots Landing) Additional Option 2A: Eliminate Annuals, Mulching, and Tree

Trimming Pool Aquatic Cleaning

Reduces frequency from 7 days a week to 5 days and 3 days based on season

Pool Janitorial Cleaning Reduce frequency from 7 days to 3 days

FY 2011 Budget Options

Option 3: No Increase Assessments – Reduce Level of Service◦ All Items in Option 2A plus:

Eliminates Security Electric Reduction of $50K Close Pools

Limited pool cleaning and electric costs Eliminate gas & propane costs

Reduce Landscaping LOS further Reduce LOS on 532 and 545 from 32 cuts to 16 cuts

FY 2011 Budget Options

FY 2011 Budget Option Comparison

Reunion East

Option 1 Option 2 Option 2A Option 3

Operating $143,923 $143,923 $143,923 $143,923

Shared $1,285,955 $1,164,855 $1,056,355 $848,455

Security $140,000 $140,000 $140,000 $0

Direct Bill Res. $1,388,759 $1,279,095 $1,183,269 $962,663

Reserve $0 $0 $0 $63,125

Total Expenses $2,958,637 $2,727,873 $2,523,547 $2,018,166

Reunion West

Option 1 Option 2 Option 2A Option 3

Operating $130,780 $130,780 $130,780 $130,780

Shared $551,123 $499,223 $452,723 $363,623

Security $1 $1 $1 $0

Direct Bill Res. $1,536,902 $1,419,885 $1,315,043 $1,114,153Total Expenses $2,218,806 $2,049,889 $1,898,547 $1,608,556

FY 2011 Budget Option Assessment Comparison

Reunion East

2011

FY 2008 FY 2009 FY 2010 Proposed Option 1 Option 2 Option 2A Option 3

Commercial $332.15 $332.15 $332.15 $568.09 $478.67 $441.33 $408.26 $332.15

Hotel/Condo $332.15 $332.15 $332.15 $568.09 $478.67 $441.33 $408.26 $332.15

Multi-Family $498.23 $498.23 $498.23 $852.14 $718.00 $661.99 $612.40 $498.23

Single-Family $664.30 $664.30 $664.30 $1,136.18 $957.34 $882.65 $816.53 $664.30

Golf $332.15 $332.15 $332.15 $568.09 $478.67 $441.33 $408.26 $332.15

FY 2011 Budget Option Assessment Comparison

Reunion West

2011

FY 2008 FY 2009 FY 2010 Proposed Option 1 Option 2Option

2A Option 3

Commercial $349.99 $349.99 $349.99 $590.77 $501.15 $462.99 $428.81 $349.99

Hotel/Condo $349.99 $349.99 $349.99 $590.77 $501.15 $462.99 $428.81 $349.99

Multi-Family $524.99 $524.99 $524.99 $886.15 $751.73 $694.49 $643.21 $524.99

Single-Family $699.99 $699.99 $699.99 $1,181.53 $1,002.30 $925.99 $857.61 $699.99

Golf $349.99 $349.99 $349.99 $590.77 $501.15 $462.99 $428.81 $349.99

Questions?

Current Level – Option 1

Landscape Impacts

Options 2 and 2A

Landscape Impacts

Option 3

Landscape Impacts