HARMONY WEST COMMUNITY DEVELOPMENT DISTRICT PUBLIC HEARING AND REGULAR MEETING AGENDA

Transcription

1 HARMONY WEST COMMUNITY DEVELOPMENT DISTRICT PUBLIC HEARING AND REGULAR MEETING AGENDA August 7, 2018

2 Harmony West Community Development District OFFICE OF THE DISTRICT MANAGER 2300 Glades Road, Suite 410W Boca Raton, Florida Phone: (561) Toll-free: (877) Fax: (561) July 30, 2018 Board of Supervisors Harmony West Community Development District ATTENDEES: Please identify yourself each time you speak to facilitate accurate transcription of meeting minutes. Dear Board Members: The Board of Supervisors of the Harmony West Community Development District will hold a Public Hearing and Regular Meeting on Tuesday, August 7, 2018 at 10:00 a.m., at Johnston s Surveying, Inc., 900 Shady Lane, Kissimmee, Florida The agenda is as follows: 1. Call to Order/Roll Call 2. Public Comments 3. Consideration of Appointment to Vacant Seat 5; Term Expires November, 2019 A. Administration of Oath of Office (the following to be provided in separate package) i. Membership, Obligations and Responsibilities ii. Chapter 190, Florida Statutes iii. Financial Disclosure Forms a. Form 1: Statement of Financial Interests b. Form 1X: Amendment to Form 1, Statement of Financial Interests c. Form 1F: Final Statement of Financial Interests iv. Form 8B: Memorandum of Voting Conflict 4. Public Hearing to Hear Comments and Objections on the Adoption of the District s Final Budget for Fiscal Year 2018/2019, Pursuant to Florida Law A. Affidavit of Publication B. Consideration of Resolution , Relating to the Annual Appropriations and Adopting the Budget for the Fiscal Year Beginning October 1, 2018, and Ending September 30, 2019; Authorizing Budget Amendments; and Providing an Effective Date 5. Consideration of Fiscal Year 2019 Funding Agreement

3 Board of Supervisors Harmony West Community Development District August 7, 2018, Public Hearing and Regular Meeting Agenda Page 2 6. Consideration of Resolution , Adopting the Annual Meeting Schedule for Fiscal Year 2018/ Consideration of Resolution , Ratifying the Execution of all Documents, Instruments, and Certificates in Connection With the District s Series 2018 Bonds; Setting Forth the Final Terms of the Special Assessments Which Secure the Series 2018 Bonds; Adopting a Final Supplemental Assessment Methodology Report; and Providing for Severability, Conflicts and an Effective Date 8. Consideration of Resolution , Authorizing, Confirming and Ratifying Assignments of Contracts for Public Infrastructure, Authorizing the Approval, Execution, and Delivery of Change Orders; Authorizing the Acceptance and Conveyance of Public Infrastructure and Property; Providing for an Effective Date 9. Consideration of Resolution , Extending the Terms of Office of All Current Supervisors to Coincide With the General Election Pursuant to Section , Florida Statutes; Providing for Severability; and Providing an Effective Date 10. Consideration of Agreement Between the Harmony West Community Development District and the Osceola County Property Appraiser 11. Consideration of Agreement Between the Harmony West Community Development District and the Osceola County Tax Collector 12. Approval of Unaudited Financial Statements as of June 30, Consideration of May 29, 2018 Regular Meeting Minutes 14. Staff Reports A. District Counsel: Straley Robin Vericker B. District Engineer: Poulos & Bennett, LLC C. District Manager: Wrathell, Hunt and Associates, LLC i. Consideration of ADA Site Compliance Proposal for Website Compliance Shield, Accessibility Policy and One (1) Annual Technological Audit 15. Board Members Comments/Requests 16. Public Comments 17. Adjournment

4 Board of Supervisors Harmony West Community Development District August 7, 2018, Public Hearing and Regular Meeting Agenda Page 3 I look forward to seeing all of you at the upcoming meeting. In the meantime, should you have any questions or concerns, please do not hesitate to contact me directly at (561) Sincerely, FOR BOARD MEMBERS AND STAFF TO ATTEND BY TELEPHONE Call-in number: Craig Wrathell Conference ID: District Manager

5 HARMONY WEST COMMUNITY DEVELOPMENT DISTRICT 4A

6 Orlando Sentinel ==- =- -===--, ~ MfEDiA GROUP Published Daily ORANGE County, Florida STATE OF FLORIDA COUNTY OF OSCEOLA Before the undersigned authority personally appeared Karen Pistone/Chery! Alii, who on oath says that he or she is an Advertising Representative ofthe ORLANDO SENTINEL, a DAILY newspaper published at the ORLANDO SENTINEL in ORANGE County, Florida; that the attached copy ofadvertisement, being a Legal Notice in the matter of Public Hearing Notice, Consider Adoption of2019 Budget was published in said newspaper in the issues ofjul 16, 2018; Jul23, Affiant further says that the said ORLANDO SENTINEL is a newspaper published in said ORANGE County, Florida, and that the said newspaper has heretofore been continuously published in said ORANGE County, Florida, each day and has been entered as periodicals matter at the post office in ORANGE County, Florida, in said ORANGE County, Florida, for a period ofone year next preceding the first publication ofthe attached copy of advertisement; and affiant further says that he or she has neither paid nor promised any person, firm or corporation any discount, rebate, commission or refund for the purpose of securing this advertisement for publication in the said newspaper. Signature of A fiant Printed Name' of Affiant Sworn to and subscribed before me on this 24 day of July, 2018, by above Affiant, who is personally known to me ( X ) or who has produced identification ( ). -ru; (7l!:H" J(/) signature of Notary Public HARMONY WEST COMMUNITY DEVEUiPMEtiT DISTRICT NOnCE OF PUB lng TO CONSIDER THE ADOPnO EFISCAL YEAR 2019 BUDGEljt~S 0& '::~= BOARD The Board of Supervisors ("Board") of the Harmony West Community Development District ("District") will hold a public hearing on August 7, 2018 at 10:00 a.m., at Johnston's Surveying, Inc., 900 Shady Lane, Kissimmee, Florida for the purpose of hearing comments and obtectlons on the adoption of the proposed budget ("Proposed Budget") of the District for the fiscal year beginning October 1, 2018 and ending September 30, 2019 ("Fiscal Year 2019"). A regular board meeting of the District will also be held at that time where the Board may consider any other business that may properly come before II. A copy of the agenda and proposed budget may be obtained at the offices of the District Manager, 2300 Glades Road, Suite 410W, Boca Raton, Florida 33431, (877) ("District Manager's Office"), during normal business hours. The public hearing and meeting are open to the public and will be conducted In accordance with the provisions of Florida law. The public hearing and meeting mav be continued to a date, time, ond place to be specified on the record at the meeting. There may be occasions when Board Supervisors or District Stall may participate by speaker telephone. ~~lomm"~gfi~ns ar~~y~r~~~lic ti':.i~:,o~ or meeting because of a disability or physical Impairment should contact the District Manager's Office at least fortv-elght (48) hours prior to the meeting. If you are hearing or speech Impaired, please contact the Florida Relay Service by dialing 7-1-1, or (TTY) / (Voice), for aid In contacting the District Manager's Office. Each person who decides to appeal any decision made by the Boord with respect to any matter considered ot the public hearing or meeting Is advised that person will need o record of proceedings and that accordingly, the person may need to ensure that a verbatim record of the proceedings ~v~~~n~ee ~~~'!!~fc~hseu~~s~t:~~r ~~~g be based. Craig Wrathell District Manager n<<j0<47o.!!.m.!"6,7nl'20ib TINA LROBINSON Commission# GG Expires June 29, 2022 Bonded ThnJ Budget Notary Seri1cea Name ofnotary, Typed, Printed, or Stamped

7 HARMONY WEST COMMUNITY DEVELOPMENT DISTRICT 4B

8 RESOLUTION THE ANNUAL APPROPRIATION RESOLUTION OF THE HARMONY WEST COMMUNITY DEVELOPMENT DISTRICT ( RELATING TO THE ANNUAL APPROPRIATIONS AND ADOPTING THE BUDGET 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 submitted to the Board of Supervisors ( Board ) of the Harmony West Community Development District ( ) proposed budget ( 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 (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 (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 (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 (2)(a), Florida Statutes, requires that, prior to October 1 st 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 HARMONY WEST 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.

9 b. The Proposed Budget, attached hereto as as amended by the Board, is hereby adopted in accordance with the provisions of Section (2)(a), Florida Statutes ( ), 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 Harmony West Community Development District for the Fiscal Year Ending September 30, 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 $84,575 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 $ 84,575 TOTAL ALL FUNDS $ 84,575 SECTION 3. BUDGET AMENDMENTS Pursuant to Section , 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.

10 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 , 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 DAY OF, ATTEST: HARMONY WEST COMMUNITY DEVELOPMENT DISTRICT Secretary/Assistant Secretary By: Its:

11

12 HARMONY WEST COMMUNITY DEVELOPMENT DISTRICT PROPOSED BUDGET FISCAL YEAR 2019 PREPARED MAY 22, 2018

13 HARMONY WEST COMMUNITY DEVELOPMENT DISTRICT TABLE OF CONTENTS Description General fund budget Definitions of general fund expenditures Page Number(s) 1 2

14 HARMONY WEST COMMUNITY DEVELOPMENT DISTRICT GENERAL FUND BUDGET FISCAL YEAR 2019 Fiscal Year 2018 Proposed Actual Projected Total Actual Proposed Budget through through and Budget FY /31/18 9/30/2018 Projected FY 2019 REVENUES Developer contribution $ 77,690 $ 21,827 $ 65,304 $ 87,131 $ 84,575 Total revenues 77,690 21,827 65,304 87,131 84,575 EXPENDITURES Management/accounting/recording 26,000 8,000 18,000 26,000 48,000 Legal - general counsel 12,500 2,193 10,307 12,500 15,000 Legal - boundary expansion 12,500 3,401 4,500 7,901 - Petition fee - boundary expansion - 3,400 11,600 15,000 - Engineering 3,000 3,391 3,000 6,391 5,000 Audit 5, ,750 Dissemination agent* ,000 Telephone Postage Printing & binding Legal advertising 9,700 9, ,700 1,200 Annual district filing fee Insurance 5,500 5, ,500 5,500 Room rental Contingencies W ebsite 615 1,287-1, Total expenditures 77,690 36,627 50,277 86,904 84,575 Net increase/(decrease) of fund balance - (14,800) 15, Fund balance - beginning (unaudited) - (227) (15,027) (227) - Fund balance - ending (projected) $ - $ (15,027) $ - $ - $ - 1

15 HARMONY WEST COMMUNITY DEVELOPMENT DISTRICT DEFINITIONS OF GENERAL FUND EXPENDITURES EXPENDITURES Professional services Management/accounting/recording 48,000 Wrathell, Hunt and Associates, LLC, specializes in managing Community Development Districts in the State of Florida by combining the knowledge, skills and experience of a team of professionals to ensure compliance with all governmental requirements of the District, develop financing programs, administer the issuance of tax exempt bond financings, and operate and maintain the assets of the community. This fee is inclusive of district management and recording services; however, it has been reduced by approximately 80% for the current fiscal year due to the reduced level of activity that is anticipated. Legal - general counsel 15,000 The District's Attorney provides on-going general counsel and legal representation. As such, they are confronted with issues relating to public finance, public bidding, rulemaking, open meetings, public records, real property dedications, conveyances and contracts. In this capacity, they provides service as a "local government lawyer," realizing that this type of local government is very limited in its scope providing infrastructure and services to developments. Engineering 5,000 The District's Engineer provides a broad array of engineering, consulting and construction services, which assist in the crafting of sustainable solutions for the long term interests of the community while recognizing the needs of government, the environment and maintenance of the District's facilities. Audit 5,750 If certain revenue or expenditure thresholds are exceeded then Florida Statutes, Chapter requires the District to have an independent examination of its books, records and accounting procedures. Dissemination agent* 1,000 The District must annually disseminate financial information in order to comply with the requirements of Rule 15c2-12 under the Securities Exchange Act of Telephone 200 Telephone and fax machine. Postage 500 Mailing of agenda packages, overnight deliveries, correspondence, etc. Printing & binding 500 Copies, agenda package items, etc. Legal advertising 1,200 The District advertises for monthly meetings, special meetings, public hearings, bidding, etc. Annual district filing fee 175 Annual fee paid to the Florida Department of Economic Opportunity. Insurance 5,500 The District carries public officials liability and general liability insurance. The limit of liability is set at $1,000,000 for public officials liability. Room rental 600 Contingencies 500 Bank charges and other miscellaneous expenses incurred during the year. W ebsite 650 Total expenditures $ 84,575 2

16 HARMONY WEST COMMUNITY DEVELOPMENT DISTRICT 5

17 Harmony West Community Development District Fiscal Year 2019 Funding Agreement This Agreement is made and entered into this day of, 2018, by and between: Harmony West Community Development District, a local unit of specialpurpose government established pursuant to Chapter 190, Florida Statutes, and located in Osceola County, Florida ("District"), and Harmony Florida Land, LLC, a Delaware corporation and a landowner in the District ("Developer") with a mailing address of 1750 W Broadway Street, Suite 111, Oviedo, Florida Recitals WHEREAS, the District was established by an ordinance adopted by the County Commission of Osceola County, Florida, for the purpose of planning, financing, constructing, operating and/or maintaining certain infrastructure; and WHEREAS, the District, pursuant to Chapter 190, Florida Statutes, is authorized to levy such taxes, special assessments, fees and other charges as may be necessary in furtherance of the District's activities and services; and WHEREAS, Developer presently is developing the majority of all real property ( Property ) within the District, which Property will benefit from the timely construction and acquisition of the District's facilities, activities and services and from the continued operations of the District; and WHEREAS, the District is adopting its general fund budget for Fiscal Year 2019, which year commences on October 1, 2018, and concludes on September 30, 2019; and WHEREAS, this general fund budget, which both parties recognize may be amended from time to time in the sole discretion of the District, is attached hereto and incorporated herein by reference as Exhibit A; and WHEREAS, the District has the option of levying non-ad valorem assessments on all land, including the Property owned by the Developer, that will benefit from the activities, operations and services set forth in the Fiscal Year 2019 budget, or utilizing such other revenue sources as may be available to it; and WHEREAS, in lieu of levying assessments on the Property, the Developer is willing to provide such funds as are necessary to allow the District to proceed with its operations as described in Exhibit A; and

18 WHEREAS, the Developer agrees that the activities, operations and services provide a special and peculiar benefit equal to or in excess of the costs reflected on Exhibit A to the Property; and WHEREAS, the Developer has agreed to enter into this Agreement in lieu of having the District levy and collect any non-ad valorem assessments as authorized by law against the Property located within the District for the activities, operations and services set forth in Exhibit A; NOW, THEREFORE, based upon good and valuable consideration and the mutual covenants of the parties, the receipt of which and sufficiency of which are hereby acknowledged, the parties agree as follows: 1. The Developer agrees to make available to the District the monies necessary for the operation of the District as called for in the budget attached hereto as Exhibit A (and as Exhibit A may be amended from time to time pursuant to Florida law, but subject to the Developer s consent to such amendments to incorporate them herein), within thirty (30) days of written request by the District. The funds shall be placed in the District's general checking account. These payments are made by the Developer in lieu of taxes, fees, or assessments which might otherwise be levied or imposed by the District. 2. This instrument shall constitute the final and complete expression of the agreement between the parties relating to the subject matter of this Agreement. Amendments to and waivers of the provisions contained in this Agreement may be made only by an instrument in writing which is executed by both of the parties hereto. 3. The execution of this Agreement has been duly authorized by the appropriate body or official of all parties hereto, each party has complied with all of the requirements of law, and each party has full power and authority to comply with the terms and provisions of this instrument. 4. This Agreement may be assigned, in whole or in part, by either party only upon the written consent of the other. Any purported assignment without such consent shall be void. 5. A default by either party under this Agreement shall entitle the other to all remedies available at law or in equity, which shall include, but not be limited to, the right of damages, injunctive relief and specific performance. 6. In the event that either party is required to enforce this Agreement by court proceedings or otherwise, then the parties agree that the prevailing party shall be entitled to recover from the other all costs incurred, including reasonable attorneys' fees and costs for trial, alternative dispute resolution, or appellate proceedings. 7. This Agreement is solely for the benefit of the formal parties herein and no right or cause of action shall accrue upon or by reason hereof, to or for the benefit of any third party not a formal party hereto. Nothing in this Agreement expressed or implied is intended or shall be 2

19 construed to confer upon any person or corporation other than the parties hereto any right, remedy or claim under or by reason of this Agreement or any provisions or conditions hereof; and all of the provisions, representations, covenants and conditions herein contained shall inure to the sole benefit of and shall be binding upon the parties hereto and their respective representatives, successors and assigns. 8. This Agreement and the provisions contained herein shall be construed, interpreted and controlled according to the laws of the State of Florida. 9. This Agreement has been negotiated fully between the parties as an arm's length transaction. The parties participated fully in the preparation of this Agreement with the assistance of their respective counsel. In the case of a dispute concerning the interpretation of any provision of this Agreement, the parties are each deemed to have drafted, chosen and selected the language, and the doubtful language will not be interpreted or construed against any party. 10. The Agreement shall be effective after execution by both parties hereto. above. Attest: In witness whereof, the parties execute this agreement the day and year first written Harmony West Community Development District Secretary/Assistant Secretary By: Its: Harmony Florida Land, LLC Witness By: Its: Exhibit A Fiscal Year 2019 General Fund Budget 3

20 Exhibit A 4

21 HARMONY WEST COMMUNITY DEVELOPMENT DISTRICT 6

22 RESOLUTION A RESOLUTION OF THE BOARD OF SUPERVISORS OF THE HARMONY WEST COMMUNITY DEVELOPMENT DISTRICT ADOPTING THE ANNUAL MEETING SCHEDULE FOR FISCAL YEAR 2018/2019; AND PROVIDING FOR AN EFFECTIVE DATE WHEREAS, the Harmony West Community Development District (the District ) is a local unit of special purpose government created and existing pursuant to Chapter 190, Florida Statutes, and situated within unincorporated Osceola County, Florida; and WHEREAS, the District is required by Section , Florida Statutes, to file quarterly, semi-annually, or annually a schedule (including date, time, and location) of its regular meetings with local governing authorities; and WHEREAS, further, in accordance with the above-referenced statute, the District shall also publish quarterly, semi-annually, or annually the District s regular meeting schedule in a newspaper of general paid circulation in the County in which the District is located. WHEREAS, the Board desires to adopt an annual meeting schedule for Fiscal Year 2018/2019 attached as Exhibit A. NOW THEREFORE BE IT RESOLVED BY THE BOARD OF SUPERVISORS OF THE HARMONY WEST COMMUNITY DEVELOPMENT DISTRICT: 1. The Fiscal Year 2018/2019 annual meeting schedule attached hereto and incorporated by reference herein as Exhibit A is hereby approved and will be published in accordance with the requirements of Florida law and also provided to applicable governing authorities. 2. This Resolution shall become effective immediately upon its adoption. PASSED AND ADOPTED this day of, ATTEST: HARMONY WEST COMMUNITY DEVELOPMENT DISTRICT Secretary/Assistant Secretary Chair/Vice Chair, Board of Supervisors Exhibit A: Fiscal Year 2018/2019 Annual Meeting Schedule

23 BOARD OF SUPERVISORS MEETING DATES HARMONY WEST COMMUNITY DEVELOPMENT DISTRICT FISCAL YEAR 2018/2019 The Board of Supervisors of the Harmony West Community Development District will hold their regular meetings for Fiscal Year 2018/2019 at Johnston s Surveying, Inc., 900 Shady Lane, Kissimmee, Florida at 10:00 a.m., unless otherwise indicated as follows: October 22, 2018 November 26, 2018 January 28, 2018 February 25, 2019 March 25, 2019 April 22, 2019 May 27, 2019 June 24, 2019 July 22, 2019 August 26, 2019 September 23, 2019 The meetings are open to the public and will be conducted in accordance with the provision of Florida Law. The meetings may be continued to a date, time, and place to be specified on the record at the meeting. A copy of the agenda for these meetings may be obtained from Wrathell, Hunt & Associates, LLC, 2300 Glades Road, Suite 410W, Boca Raton, Florida or by calling (561) There may be occasions when one or more Supervisors or staff will participate by telephone. Pursuant to provisions of the Americans with Disabilities Act, any person requiring special accommodations at this meeting because of a disability or physical impairment should contact the District Office at (561) at least 48 hours prior to the meeting. If you are hearing or speech impaired, please contact the Florida Relay Service by dialing 7-1-1, or (TTY) / (Voice), for aid in contacting the District Office. A person who decides to appeal any decision made at the meeting with respect to any matter considered at the meeting is advised that person will need a record of the proceedings and that accordingly, the person may need to ensure that a verbatim record of the proceedings is made, including the testimony and evidence upon which such appeal is to be based. District Manager

24 HARMONY WEST COMMUNITY DEVELOPMENT DISTRICT 7

25 RESOLUTION A RESOLUTION OF THE BOARD OF SUPERVISORS OF THE HARMONY WEST COMMUNITY DEVELOPMENT DISTRICT RATIFYING THE EXECUTION OF ALL DOCUMENTS, INSTRUMENTS, AND CERTIFICATES IN CONNECTION WITH SERIES 2018 BONDS; SETTING FORTH THE FINAL TERMS OF THE SPECIAL ASSESSMENTS WHICH SECURE THE SERIES 2018 BONDS; ADOPTING A FINAL SUPPLEMENTAL ASSESSMENT METHODOLOGY REPORT; AND PROVIDING FOR SEVERABILITY, CONFLICTS AND AN EFFECTIVE DATE. WHEREAS, the Harmony West Community Development District (the District ) previously indicated its intention to construct and/or acquire public improvements (the 2018 Project ) as described in the Engineer s Report dated May 30, 2018 (the ) and attached as Exhibit A; WHEREAS, the Board of Supervisors of the District (the Board ) issued its $8,710,000 Special Assessment Revenue Bonds, Series 2018 (the Series 2018 Bonds ) to finance a portion of the 2018 Project through the issuance; WHEREAS, the District desires to ratify and confirm the execution of all documents, instruments and certificates in connection with the Series 2018 Bonds, which are on file with the District Manager, (the Bond Documents ) and to confirm the issuance of the Series 2018 Bonds; WHEREAS, the Series 2018 Bonds will be repaid by special assessments on the benefited property within the District; WHEREAS, the District previously levied master special assessments in accordance with the terms outlined in the Master Special Assessment Methodology Report dated February 26, 2018 and adopted Resolution No (the Assessment Resolution ), equalizing, approving, confirming and levying special assessments on certain property within the District, which resolution is still in full force and effect; WHEREAS, now that the final terms of the Series 2018 Bonds have been established, it is necessary to approve the Final Supplemental Special Assessment Methodology Report, dated June 19, 2018 (the Supplemental Assessment Report ), and attached hereto as Exhibit B; and NOW, THEREFORE, BE IT RESOLVED BY THE BOARD AS FOLLOWS: 1. Authority for this resolution. This Resolution is adopted pursuant to Chapters 170 and 190, Florida Statutes. 2. Findings. The Board hereby finds and determines as follows: a. The foregoing recitals are hereby incorporated as the findings of fact of the Board. { DOC/} Page 1 of 4

26 b. The Engineer s Report is hereby approved and ratified. c. The 2018 Project will serve a proper, essential, and valid public purpose. d. The 2018 Project will specially benefit the developable acreage located within the District as set forth in the Engineer s Report. It is reasonable, proper, just and right to assess the portion of the costs of the 2018 Project to be financed with the Series 2018 Bonds to the specially benefited properties within the District as set forth in the Assessment Resolution, and this Resolution. e. The Series 2018 Bonds will finance the construction and acquisition of a portion of the 2018 Project. f. The Supplemental Assessment Report is hereby approved and ratified. 3. Ratification of the Execution of the Bond Documents. The execution of the Bond Documents by the officials of the District are hereby ratified and confirmed. 4. Assessment Lien for the Series 2018 Bonds. The special assessments for the Series 2018 Bonds shall be allocated in accordance with the Supplemental Assessment Report. 5. Severability. If any section or part of a section of this Resolution is declared invalid or unconstitutional, the validity, force and effect of any other section or part of a section of this Resolution shall not thereby be affected or impaired unless it clearly appears that such other section or part of a section of this Resolution is wholly or necessarily dependent upon the section or part of a section so held to be invalid or unconstitutional. 6. Conflicts. This Resolution is intended to supplement the Assessment Resolution, which remain in full force and effect. This Resolution and the Assessment Resolution shall be construed to the maximum extent possible to give full force and effect to the provisions of each resolution. All District resolutions or parts thereof in actual conflict with this Resolution are, to the extent of such conflict, superseded and repealed. 7. Effective date. This Resolution shall become effective upon its adoption. Approved and adopted this 7th day of August, Attest: Harmony West Community Development District Craig Wrathell Secretary Chair/Vice Chair, Board of Supervisors Exhibit A Engineer s Report dated May 30, 2018 Exhibit B Final Supplemental Special Assessment Methodology Report dated June 19, 2018 { DOC/} Page 2 of 4

27 Exhibit A Engineer s Report dated May 30, 2018 { DOC/} Page 3 of 4

28 Harmony West Community Development District ENGINEER'S REPORT Prepared For Harmony West Community Development District Date May 30, East Livingston Street Orlando, Florida Tel: FBPE Certificate of Authorization No

29 Harmony West Community Development District ENGINEER'S REPORT FOR CAPITAL IMPROVEMENTS Osceola County, Florida Prepared For: Harmony West Community Development District Date: May 30, East Livingston Street Orlando, Florida Tel: Fax: FBPE Certificate of Authorization No

30 H a r m o n y W e s t C o m m u n i t y D e v e l o p m e n t D i s t r i c t E n g i n e e r s R e p o r t f o r C a p i t a l I m p r o v e m e n t s T A B L E O F C O N T E N T S Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Section 7 Section 8 Section 9 Introduction 1.1 Background 1.2 Location & General Description 1.3 District Purpose and Scope 1.4 Description of Land Use Government Actions Infrastructure Benefit Capital Improvement Plan Description of Capital Improvement Plan 5.1 Roadway Improvements 5.2 Stormwater Management Year Floodplain 5.4 Master Infrastructure Primary Roadways Potable Water Distribution System Reclaimed Water Distribution System Wastewater System Parks, Landscape and Hardscape Undergrounding of Electrical Distribution and Street Lights 5.5 Professional and Inspection Fees Ownership & Maintenance Roadway Rights-of-Way, Stormwater Management Ponds & Other Open Spaces Estimate of Probable Capital Improvement Costs Conclusions and Summary Opinion P a g e 3 o f 1 3

31 Harmony West Community Development District Engineer s Report for Capital Improvements Exhibits Exhibit 1 Exhibit 2 Exhibit 3 Exhibit4 Exhibit5 Exhibit6 Exhibit 7 Exhibit 8 Exhibit 9 Exhibit 10 Exhibit 11 Exhibit 12 Vicinity Map Location Map District Boundary Map and Legal Description ProposedPublicandPrivateUsesWithintheCDD ConceptPlan Post-DevelopmentBasinMap FEMA 100-Year Floodplain Offsite Utilities Infrastructure Potable Water DistributionSystem Map ReclaimedWater Distribution SystemMap Wastewater System Map Estimate of Probable Capital Improvement Costs Page 4 of 13

32 Harmony West Community Development District Engineer s Report for Capital Improvements Section 1 Introduction 1.1. Background The Engineer s Report for Capital Improvements (the Report ) for the Harmony West Community Development District (the District ) has been prepared to assist with the financing and construction of the capital improvements contemplated to be constructed, acquired and/or installed within the District or outside of the District (the Capital Improvement Plan ) pursuant to requirements of Osceola County, Florida and the Toho Water Authority (TWA). Capital Improvements reflected in the Report represent the current Capital Improvement Plan for the District. The majority of the necessary regulatory approvals have not been obtained for the Development (hereinafter defined). The remaining permits necessary to complete the Development are expected to be obtained in the future during the normal design and permitting processes. To the best of our knowledge and belief it is our opinion that the balance of the required permits are obtainable as needed. The implementation of any improvements discussed in this plan requires the final approval by many regulatory and permitting agencies as outlined in Section 2 below. This report, therefore, may be amended from time to time. Cost Estimates contained in this report have been prepared based on the best available information at this time. The actual costs of construction, final engineering design, planning, approvals and permitting may vary from the cost estimates presented Location and General Description The overall District is a \- acre tract currently located in unincorporated Osceola County, Florida. More specifically, the parcel is located within a portion of Sections 13 and 24, Township 26 South, Range 31 East lying north of U.S. 192 & 441 (S.R. 500), west of Old Melbourne Highway, and east of 5 Oaks Drive (Harmony Main Development). Please refer to Vicinity Map Exhibit 1 and Location Map Exhibit 2. The proposed project is a two (2) phase development to include approximately 638 single family homes and two supporting recreational amenities. The Development is part of the overall Harmony project and is zoned as Planned Development which was most recently amended by Osceola County on October 26, A more detailed breakdown of the anticipated development program is as follows: 40 Single Family 157 Units 50 Single Family 344 Units 60 Single Family 137 Units Total 638 Units The above unit breakdown is based upon the Preliminary Subdivision Plans (PSP), referenced as Harmony West Phase 1, as previously approved by Osceola County on April 7, Construction Plans for Harmony West Phase 1A were also approved on February 2, 2017 for 134 Single Family Units. Phase 1A is currently under construction at the time of this report. The Developer is in process of modifying the PSP, application filed February 15, 2018, through Osceola County and is expected to be approved by the County on or around June of The proposed unit mix based on the PSP modification is as follows: 40 Single Family 157 Units 50 Single Family 338 Units 60 Single Family 136 Units Total 631 Units Page 5 of 13

33 Harmony West Community Development District Engineer s Report for Capital Improvements It should be noted that the modification to the PSP to change the unit mix is expected to have a de minimus impact to the infrastructure costs set forth in this report. The Community Development District Boundary and Legal Description are included as Exhibit District Purpose and Scope The District was established for the purpose of financing, acquiring or constructing, maintaining and operating a portion of the public infrastructure necessary for community development within the District. The purpose of this report is to provide a description of the public infrastructure improvements that may be financed by the District. The District may finance, acquire and/or, construct, operate, and maintain certain public infrastructure improvements that are needed to serve the Development. A portion of the infrastructure improvements will be financed (1) with the proceeds of bonds issued by the District and/or (2) by the Developer. The proposed public infrastructure improvements, as outlined herein, are necessary for the development of the District as required by the applicable independent unit of local government Description of Land Use The lands within the District encompass approximately \- acre. Based on the current PD Zoning for the property, the development program currently consists of 638 single family homes and two supporting recreational amenities. The approved land uses within the District include the following areas outlined in the table below. Exhibit 4 provides the location of the development uses below. Proposed Development Approximate Acres Private (Single Family Lots) 95.3 Stormwater 38.6 Recreational Space 9.2 Park Space 24.0 Roadways Tracts 45.6 TWA Utility Tracts 0.2 Conservation Area & Open Water 74.2 Total Acres Section 2 Government Actions The following are the permitting agencies that will have jurisdiction for approval of construction within the District. Depending on the location and scope of each phase of project design, the individual permits that need to be obtained will need to be evaluated and not all of the permits listed below will necessarily apply to every sub-phase within the District. The property is currently located in unincorporated Osceola County and within the Toho Water Authority utility service area. Page 6 of 13

34 Harmony West Community Development District Engineer s Report for Capital Improvements Permitting Agencies & Permits Required 1. Osceola County a. Preliminary Subdivision Plan b. Mass Grading c. Site Development Plan d. Final Plat 2. South Florida Water Management District (SFWMD) a. Environmental Resource Permit i. Mass Grading/Master Stormwater Construction ii. Final Engineering for Onsite and Offsite Improvements b. Water Use Permit (Dewatering) i. Mass Grading/Master Storm ii. Final Engineering for Onsite and Offsite Improvements 3. Toho Water Authority a. Final Engineering for Water, Reclaim and Sewer Utilities 4. Florida Department of Environmental Protection (FDEP) a. Water Distribution System b. Sanitary Sewer Collection and Transmission System c. National Pollutant Discharge Elimination System (NPDES) 5. Federal Emergency Management Agency a. Letter of Map Revision 6. Army Corp of Engineers a. Dredge and Fill Permit 7. State of Florida Department of Transportation a. Drainage Connection Permit b. Driveway Connection Permit c. Utility Permit 8. Florida Fish and Wildlife Conservation Commission (FWC) 9. Florida Gas Section 3 Infrastructure Benefit The District will fund, and in certain cases, maintain and operate public infrastructure yielding two types of public benefits. These benefits include: Project wide public benefits Incidental public benefits The project wide public benefits are provided by infrastructure improvements that serve all lands in the District. These public infrastructure improvements include construction of the master stormwater management system, the sanitary sewer, potable water, and reclaimed water mains, roadway network, offsite Page 7 of 13

35 Harmony West Community Development District Engineer s Report for Capital Improvements roadway and utility improvements, recreational facilities, and perimeter landscape and irrigation improvements within the District boundary. However some incidental public benefits include those benefits received by the general public who do not necessarily reside on land owned or within the District. The proposed capital improvements identified in this report are intended to provide specific benefit to the assessable real property within the boundaries of the District. As the majority of the property is undeveloped, with the exception of the current Phase 1A construction, the construction and maintenance of the proposed infrastructure improvements are necessary and will benefit the property for the intended use as a residential community. The District can construct, acquire, own, operate and/or maintain any portion or all of the proposed infrastructure. The Developer and/or other party/parties may construct and fund the infrastructure not funded by the District. Section 4 Capital Improvement Plan The District capital improvements will connect and interact with the adjacent offsite roads, potable water, reclaimed water, and sanitary sewer systems. The proposed infrastructure improvements addressed by this Report include elements internal and external to the District. The elements include the master stormwater management and drainage systems, roadway improvements, landscaping, street lighting, pavement markings and signage, as well as potable water main, reclaimed water main and sanitary sewer extensions required to provide utility service to the District. Detailed descriptions of the proposed capital improvements are provided in the following sections and Exhibits 4 through 7 and 8 through 11. Exhibit 12, details the Cost Opinion for the District s capital improvement plan. The Capital Improvement Plan will be constructed and financed in logical segments, as property within the District is developed by the Developer. The District anticipates issuing multiple series of bonds to fund all or a portion of the Capital Improvement Plan. Section 5 Description of Capital Improvement Plan 5.1 Roadway Improvements As indicated above, the District will fund all roadway construction internal and external to the District consisting of local roadways and alleys. The funding of main boulevard through the Development will be by the Developer and subject to reimbursement through Mobility Fee Credits with Osceola County. The Developer will pay all costs associated with the main boulevard, and related drainage/stormwater improvements for which mobility fee credits are payable pursuant to Osceola County s criteria. The costs for such improvements are not included on Exhibit 12. Exhibit 4, Public and Private Improvements, provides a graphical representation of the proposed roadway improvements. All local roadways will be open to the public. 5.2 StormwaterManagement As indicated above, the District may fund the construction of the master stormwater management system for the lands within the District. This system is made up of wet detention stormwater treatment ponds, control structures, spreader swales, inlets, manholes and storm pipes. The proposed ponds and outfall structures will be designed to provide water quality treatment and attenuation in accordance with Osceola County and the South Florida Water Management District regulations. The stormwater management system will be designed to accommodate on-site runoff in addition to offsite flows which have historically entered the project site. Exhibit 6, Post-Development Basin Map provides a graphical representation of Page 8 of 13

36 H a r m o n y W e s t C o m m u n i t y D e v e l o p m e n t D i s t r i c t E n g i n e e r s R e p o r t f o r C a p i t a l I m p r o v e m e n t s the currently proposed stormwater management system Year Floodplain Pursuant to the Federal Emergency Management Agency s (FEMA) Flood Insurance Rate Map (FIRM) panels 12097C 0285G dated June 18, 2013, portions of the project site is located within the 100-year Flood Hazard Area (FHA), Zone A 100-year floodplain with no established base flood elevation. Exhibit 7, FEMA 100-Year Floodplain details the floodplain limits relative to the District boundaries. Any development within the mapped floodplain will require a Letter of Map Revision to be issued by FEMA to remove the development from the floodplain. In addition, the placement of fill within the floodplain is regulated by the SFWMD and Osceola County any filled areas below the floodplain will require mitigation in the form of compensating storage. 5.4 Master Infrastructure Primary Roadways Based on the current approved Preliminary Subdivision Plan ( PSP ), the roadway improvements, excluding the main boulevard, include approximately 29,350 linear feet of road and will define the major ingress and egress points throughout the Development. The roadways will also serve as locations for the placement of utility infrastructure needed to serve the development of the project, see Exhibits 4 and 5. In addition to the onsite roadways, offsite roadway intersection improvements to U.S. 192/S.R. 441, as required by the FDOT to serve the project are included in the Master Infrastructure serving the District Potable Water Distribution System The District may fund the construction of the water distribution system within the District and those portions outside the District required to connect to existing or proposed offsite facilities. The potable water system will be conveyed to, and owned and maintained by, the TWA once it has been certified complete. The water mains within the District will be sized to provide water to residents and amenity centers of the District and will be required to be designed and constructed based on an approved Master Utility Plan (MUP). Exhibit 8 and 9, Offsite Utilities Infrastructure and Potable Water Distribution System Map, provides a graphical representation of the contemplated water mains to be constructed within the District Reclaimed Water Distribution System The District may fund the construction of the reclaimed water distribution system within the District and those portions outside the District required to connect to existing or proposed offsite facilities. The reclaimed water system will be conveyed to, and owned and maintained by, the TWA once it has been certified complete by the District. The reclaimed water mains serving the District will be sized to provide reclaimed water to the lot boundaries and common areas within the District and will be required to be designed and constructed based on an approved MUP. Exhibits 8 and 10, Offsite Utilities Infrastructure and Reclaimed Water Distribution System Map, provide a graphical representation of the existing and proposed offsite reclaimed water system and onsite system contemplated within the District. P a g e 9 o f 1 3

37 H a r m o n y W e s t C o m m u n i t y D e v e l o p m e n t D i s t r i c t E n g i n e e r s R e p o r t f o r C a p i t a l I m p r o v e m e n t s Wastewater System The District may fund the construction of the gravity sewer, force main, and lift station infrastructure within the District and those portions outside the District required to connect to existing or proposed offsite facilities. The wastewater system will be conveyed to, and owned and maintained by, the TWA once it has been certified complete by the District. The sewer collection mains, lift stations and force mains serving the District will be sized to provide wastewater service to the residents and amenity centers of the District, and will be required to be designed and constructed based on an approved MUP. Exhibits 8 and 11, Offsite Utilities Infrastructure and Wastewater System Map, provide a graphical representation of the proposed offsite wastewater system and onsite system contemplated within the District Parks, Landscape & Hardscape The District will fund parks, landscape and hardscape construction within roadways and common areas which may include perimeter landscape buffers, master signage, way finding signage, entry hardscape features, entry landscape, amenity area and park area features, landscape and hardscape, pedestrian/multi-purpose trails, and street trees. The District will own and maintain foregoing improvements Undergrounding of Electrical Distribution and Street Lights Most, if not all, District constructed Master Infrastructure will include underground electric and street lighting. The street lighting system will be constructed in cooperation with Osceola County, Orlando Utility Commission and the Developer. The District will fund the cost to trench the underground installation only. Leasing and monthly service charges associated with the upgraded street lighting fixtures along roadways within the District will not be financed through bond proceeds. Orlando Utility Commission and the appropriate community entity will own and maintain the electric and street light infrastructure. 5.5 Professional and Inspection Fees For the design, permitting and construction of the proposed District Capital Improvement Plan, professional services are required by various consultants. The consultant services may include, but are not limited to, civil engineering, geotechnical engineering, planning, environmental, surveying, and landscape architect. During construction, the various permitting agencies will observe and inspect the project. Each of the agencies will charge an inspection fee to cover the costs associated with an inspector visiting the site to observe construction progress and confirm that the project is constructed in accordance with their respective approved plans, permits, rules, and regulations. The Professional Services and Inspections Fees are included as Soft Costs for the District Capital Improvement Plan. Section 6 Ownership and Maintenance Capital Improvements Plan Ownership Maintenance Onsite Roadway Improvements County County Offsite Roadway Improvements FDOT/County FDOT/County Master Stormwater Management System District HOA/District P a g e 1 0 o f 1 3

38 Harmony West Community Development District Engineer s Report for Capital Improvements Potable Water Distribution System Toho Water Authority Toho Water Authority Sanitary Sewer System Toho Water Authority Toho Water Authority Reclaimed Water Distribution System Toho Water Authority Toho Water Authority Parks, Landscaping, Irrigation and Signage District HOA/District Amenity Site District HOA/District Street Lighting/Electrical Section 7 Orlando Utility Commission Orlando Utility Commission Roadway Rights-of-Way, Stormwater Management Ponds and Other Open Spaces Real property interests for lands within the District needed for construction, operation, and maintenance of District facilities will be conveyed and/or dedicated by the owner thereof to the District, HOA or other Public entity at no cost. Section 8 Estimate of Probable Capital Improvement Costs The Estimate of Probable Capital Improvement Plan Costs is provided in Exhibit 12. Costs associated with construction of the improvements described in this report have been estimated based on the best available information. Other soft costs include portions of the surveying, design and engineering for the described work, regulatory permitting inspection fees and materials testing. In addition, a reasonable project contingency estimate has been included. Please note that the costs are preliminary in nature and subject to change based on final engineering, permitting, and changes in the Concept Plan and construction cost due to market fluctuation. Section 9 Conclusions and Summary Opinion The Capital Improvement Plan as described is necessary for the functional development of the property within the District as required by the applicable local governmental agencies. The planning and design of the infrastructure will be in accordance with current governmental regulatory requirements. The public infrastructure as described in this Report will serve its intended function provided the construction is in substantial compliance with the future design and permits which will be required by the District for the various jurisdictional entities outlined earlier in this report. In addition to the annual non-ad valorem assessments to be levied and collected to pay debt service on the proposed bonds, the District will levy and collect an annual "Operating and Maintenance" assessment to be determined, assessed and levied by the District's Board of Supervisors upon the assessable real property within the District, for the purpose of defraying the cost and expenses of maintaining District-owned improvements. Alternatively, the CDD can also consider contracting with the HOA to have the HOA budget for the maintenance or CDD improvements. The construction costs for the District s Capital Improvement Plan in this report are based on the concept plans for the District as currently proposed. In our professional opinion, and to the best of our knowledge and belief, the costs provided herein for the District are reasonable to complete the construction of the infrastructure improvements described herein. All of the proposed infrastructure Capital Improvement Plan costs are public improvements or community facilities as set forth in sections (1) and (2) of the Florida Statutes. Page 11 of 13

39 Harmony West Community Development District Engineer s Report for Capital Improvements The summary of probable infrastructure construction costs is only an opinion and not a guaranteed maximum price. Historical costs, actual bids and information from other professionals or contractors have been used in the preparation of this report. Contractors who have contributed in providing the cost data included in this report are reputable entities with experience in Central Florida. It is therefore our opinion that the construction of the proposed District Capital Improvement Plan can be completed at the costs as stated. The labor market, future costs of equipment and materials, increased regulatory actions and requirements, and the actual construction process are all beyond our control. Due to this inherent opportunity for fluctuation in cost, the total final cost may be more or less than this opinion. As District Engineer: Poulos & Bennett, LLC Marc D. Stehli, PE State of Florida Professional Engineer No Page 12 of 13

40 Harmony West Community Development District Engineer s Report for Capital Improvements Exhibits Page 13 of 13

41 COON LAKE TROUT LAKE ST. CLOUD LAKE LIZZIE LIVE OAK LAKE US HIGHWAY (S.R. 500) - E IRLO BRONSON MEMORIAL HWY BAY LAKE LAKE CONLIN OLD MELBOURNE HWY ALLIGATOR LAKE BUCK LAKE CAT LAKE HICKORY TREE RD Vicnity Map Harmony West CDD N February 20, 2018 P & B Job No.: 2602 E. Livingston St Orlando, Florida Certificate of Authorization No Exhibit 1

42 LEGEND CDD Boundary VILLAGES AT HARMONY CDD BOUNDARY Location Map Harmony West CDD N February 20, E. Livingston St. P & B Job No.: Orlando, Florida Certificate of Authorization No Exhibit 2

43 ~"45"20"E ' \ \ N55"1 9'37"W ~ ' \ \\N4517'29"W \\\ 46.56' \ \, \ N43"58'59"E \\ 97.14' ~ N46"01'01"W \\ 69.61' \.1), \ \\ -~, \:C \ ~ ' ~\ ~~ ~\~~ d). ~ ~,~~~"~. ~ ~ ' R=2o4o.oo lf16"04'17" L=572.22' CB=N53"08'32"E CD=570.35' ~ ~ ~ ~\,..._~,~~\ """'-J a ~ ~\ '\ ~\ ~ t\ ~ \ \ Z:\2018\ IIRMONY WEST COD\CIIl\EXH lc FIGS\CDD-CIJRRENT WITH NEW LAYOUT\EXHIIIT J - BOUNOoiRY MAP lc I.EGIL DESCRIPTION S89"45'32"E S89"43'51"E ' N17"43'23"E 89.09' ' C.O.O PABCE. S48"52'23"W ' S0016'23"W 85.00' '50'03"\ ' ~ ~ District Boundary Map and Legal Description Harmony West CDD POULOS~ENNETT LEGAL DESCRIPTION CDD PARCEL A parcel of land lying in a portion of Sections 13 & 24, Township 26 South, Range 31 East, Osceola County, Florida, being more particularly described as follows: Commencing at a point on the East Right of Way line of U.S. Highway No (S.R. 500) and the North line of Section 24, Township 26 South, Range 31 East, thence run S89'45'20"E, along said North line of Section 24, a distance of feet to the POINT OF BEGINNING; thence continue S89'45'20"E along said line, a distance of 1, feet; thence run S89'45'32"E, a distance of 2, feet; thence run N1 7'43'23"E, a distance of feet; thence run S89'43'51"E, a distance of feet; thence run S00'16'23"W, a distance of feet; thence run S89'43'36"E, a distance of feet; thence run S12'23'18"E, a distance of 1, feet; thence run S26'50'03"W, a distance of feet; thence run S81'35'58"W, a distance of feet; thence run S48'52'23"W, a distance of feet; thence run S30'59' 42"E, a distance of feet; thence run S26'50'03"W, a distance of feet; thence run N90'00'00"W, a distance of 2, feet; thence run S31'54'38"E, a distance of feet; thence run S32'05'35"E, a distance of 1, feet; thence run S60'42'18"W, a distance of 1, feet to a point on the East Right of Way line of U.S. Highway No (S.R. 500); thence run N28'49' 40"W, along said East Right of Way line, a distance of 3, feet; thence run N61'10'41"E, a distance of feet to the Point of Curvature of a curve concave to the Northwest, having a Radius of 2, feet and a Central Angle of 16'04'17"; thence run Northeasterly along the Arc of said curve, a distance of feet (Chord Bearing = N53'08'32"E, Chord = feet); thence run N46'01'01"W, a distance of feet; thence run N43'58'59"W, a distance of feet; thence run N32'1 0' 47"W, a distance of 1, feet; thence run N36'02' 44"W, a distance of feet; thence run N45'17'29"W, a distance of feet; thence run N55'19'37"W, a distance of feet to the POINT OF BEGINNING. Containing acres, more or less. 500'..., 0 N ' January 30, E. Livingston St. SCALE IN FEET P & B Job No.: Orlando, Florida Certificate of Authorization No Exhibit '

44 CDD BOUNDARY Proposed Public and Private Uses Within CDD Harmony West CDD N February 21, E. Livingston St. P & B Job No.: Orlando, Florida Certificate of Authorization No Exhibit 4

45 Buck Lake PLACE TYPES SINGLE FAMILY RESIDENTIAL c:::::::j 40' LOTS c:::::::j 50' LOTS c:::::::j 60' LOTS OPEN SPACE DISTRICT - CONSERVATION AREA c:::::::j RECREATIONAL AREA c:::::::j STORMWATER AREA c:::::::j OPEN SPACE - LIFT STATION TRACTS FRAMEWORK ROADS CDD BOUNDARY NOTE: CONCEPT PLAN SUBJECT TO REVISION AS APPROVED BY COUNTY. Z:\2018\ IIIRMONY WEST COD\CIIl\EXH lc FIGS\CDO-CIJRRENT WITH NEW LAYOUT\EXHIIIT 5- CONCEPT PlJH Concept Plan Harmony West CDD POULOS~ENNETT 400'..., <r 0 400' February 21, E. Livingston St. SCALE IN FEET P & B Job No.: Orlando, Florida Certificate of Authorization No Exhibit 5 N 800'

46 SW-5 B-5 B-7 B-1 B-2 WETLAND SW-7 B-7 SW-7 SW-2 SW-1 SW-6 SW-7 B-8 WETLAND W-3 ES-1 SW-3 WETLAND W-2 B-3 B-6 ES-3 WETLAND ES-2 ES-4 B-4 SW-4 WETLAND Post Development Basin Map Harmony West CDD N February 20, E. Livingston St. P & B Job No.: Orlando, Florida Certificate of Authorization No Exhibit 6

47 LEGEND CDD Boundary Flood Plain Year Floodplain Harmony West CDD N January 30, E. Livingston St. P & B Job No.: Orlando, Florida Certificate of Authorization No Exhibit 7

48 CDD BOUNDARY LEGEND CDD Boundary OFFSITE UTILITY LINES FORCEMAIN WATER MAIN Interim Point of Connection Proposed Force Main Point of Connection to Existing 20" Water Main Point of Connection to Existing 16" Force Main Offsite Utilities Infrastructure Harmony West CDD N February 20, E. Livingston St. P & B Job No.: Orlando, Florida Certificate of Authorization No Exhibit 8

49 Buck Lake ) Z:\2018\ IIIRMONY WEST COD\CIIl\EXH lc FIGS\CDO-CIJRRENT WITH NEW LAYOUT\EXHIIIT g- POTAB l WATER OIS1HIBU110N SYS1EM Potable Water Distribution System Harmony West CDD 400'..., 0 400' February 20, E. Livingston St. SCALE IN FEET P & B Job No.: Orlando, Florida Certificate of Authorization No Exhibit 9 N

50 Buck Lake Z:\2018\ IIIRMONY WEST COD\CIIl\EXH lc FIGS\CDO-CIJRRENT W ITH NEW LAYOUT\EXHIIIT 10- R ECLAIM WATER DISTRIBUTION S'tSIEM Reclaim Water Distribution System Harmony West CDD 400'..., 0 400' February 20, E. Livingston St. SCALE IN FEET P & B Job No.: Orlando, Florida Certificate of Authorization No Exhibit 10 N

51 LS2 LS1 LEGEND: Overall Wastewater Collection System Harmony West CDD LSX N February 20, E. Livingston St. P & B Job No.: Orlando, Florida Certificate of Authorization No Exhibit 11

52 EXHIBIT 12 Harmony West CDD Estimate of Probable Capital Improvement Costs June 4, 2018 Facility Estimated Cost Undergrounding of Electrical Facilities $650,000 Roadways (Pavement and Drainage System) $5,795,337 Stormwater Ponds (Pond Excavation, Dewatering, Sod & Outfall Structures) $4,750,125 Potable Water Distribution (Pipes, Fittings, Valves, etc.) $3,000,681 Sanitary Sewer System (Lift Stations, Pipes, Fittings, Valves, Structures) $4,443,479 Reclaimed Water Distribution (Pipes, Fittings, Valves, etc.) $1,238,641 Parks, Landscape and Hardscape $6,576,918 Subtotal $26,455,180 Professional Fees (10%) $2,645,518 Subtotal $29,100,698 Contingency (10%) $2,645,518 Total $31,746,216 Notes: * All costs and expenses for roadways (or portions of roadways) involving the grant of mobility credits by Osceola County shall be paid for by the Developeer and are not included in this cost opinion. In no instance shall construction of a roadway (or portion of roadway) be funded by the CDD if mobility credits are to be granted to the Developer by the County.

53 Exhibit B Final Supplemental Special Assessment Methodology Report dated June 19, 2018 { DOC/} Page 4 of 4

54 HARMONY WEST COMMUNITY DEVELOPMENT DISTRICT Final Supplemental Special Assessment Methodology Report June 19, 2018 Provided by: Wrathell, Hunt and Associates, LLC 2300 Glades Road, Suite 410W Boca Raton, FL Phone: Fax: Website: HWCDD Final Supplemental Special Assessment Methodology Report v3

55 Table of Contents 1.0 Introduction 1.1 Purpose Scope of the Supplemental Report Special Benefits and General Benefits Organization of the Supplemental Report Development Program 2.1 Overview The Development Program The Capital Improvement Program 3.1 Overview Capital Improvement Program Financing Program 4.1 Overview Types of Bonds Proposed Assessment Methodology 5.1 Overview Benefit Allocation Assigning Debt Lienability Test: Special and Peculiar Benefit to the Property Lienability Test: Reasonable and Fair Apportionment of the Duty to Pay True-Up Mechanism Assessment Roll Appendix Table Table Table Table Table Table

56 1.0 Introduction 1.1 Purpose This Final Supplemental Special Assessment Methodology Report (the "Supplemental Report") was developed to supplement the Master Special Assessment Methodology Report dated February 26, 2018 (the "Master Report"). This Supplemental Report was developed specifically to provide a supplemental financing plan and a supplemental special assessment methodology for funding a portion of the costs of public infrastructure improvements (the "Capital Improvement Program") that will serve the Harmony West Community Development District (the "District"). 1.2 Scope of the Supplemental Report This Supplemental Report presents the projections for financing a portion of the District's Capital Improvement Program described in the Harmony West Community Development District Engineer s Report prepared by Poulos & Bennett, LLC (the District Engineer ) and dated May 30, 2018 (the Engineer's Report ), as well as describes the method for the allocation of special benefits and the apportionment of special assessment debt resulting from the provision and funding of the a portion of the Capital Improvement Program. 1.3 Special Benefits and General Benefits Improvements undertaken and funded by the District as part of the Capital Improvement Program create special and peculiar benefits, different in kind and degree than general benefits, for properties within its borders as well as general benefits to the public at large. However, as discussed within this Supplemental Report, these general benefits are incidental in nature and are readily distinguishable from the special and peculiar benefits which accrue to property within the District. The District s Capital Improvement Program enables properties within its boundaries to be developed. There is no doubt that the general public and property owners of property outside the District will benefit from the provision of the 1

57 Capital Improvement Program. However, these benefits are only incidental since the Capital Improvement Program is designed solely to provide special benefits peculiar to property within the District. Properties outside the District are not directly served by the Capital Improvement Program and do not depend upon the Capital Improvement Program to obtain or to maintain their development entitlements. This fact alone clearly distinguishes the special benefits which District properties receive compared to those lying outside of the District's boundaries. The Capital Improvement Program will provide public infrastructure improvements which are all necessary in order to make the lands within the District developable and saleable. The installation of such improvements will cause the value of the developable and saleable lands within the District to increase by more than the sum of the financed cost of the individual components of the Capital Improvement Program. Even though the exact value of the benefits provided by the Capital Improvement Program is hard to estimate at this point, it is nevertheless greater than the costs associated with providing the same. 1.4 Organization of the Supplemental Report Section Two describes the development program as proposed by the Developer, as defined below. Section Three provides a summary of the Capital Improvement Program as determined by the District Engineer. Section Four discusses the financing program for the District. Section Five discusses the special assessment methodology for the District that was introduced in the Master Report and its application to the current development and financing programs for the District. 2

58 2.0 Development Program 2.1 Overview The District serves the Harmony West development (the "Development" or Harmony West ), a master planned, residential development located in unincorporated Osceola County, Florida. The land within the District currently consists of approximately /- acres and is generally located in north-central Osceola County, generally south of Old Melbourne Highway, east of US Highway 192 & 441, and west of Buck Lake. 2.2 The Development Program The development of Harmony West is anticipated to be conducted by Harmony Florida Land, LLC (the "Developer"). The original development plan for the land within the District was described in the Master Report as consisting of a total of 638 single-family residential units and two recreational amenities. As of the date of this Supplemental Report, the development plan is in the process of being revised and the land within the District is currently expected to be developed with a total of 631 single-family residential units and two recreational amenities, although land use types and unit numbers may change throughout the development period in response to market demands. The District Engineer expects approval of the revised development plan around June of Table 1 in the Appendix illustrates the most current anticipated revised development plan for Harmony West. 3.0 The Capital Improvement Program 3.1 Overview The public infrastructure costs to be funded by the District are described by the District Engineer in the Engineer's Report. Only public infrastructure that may qualify for bond financing by the District under Chapter 190, Florida Statutes and under the Internal Revenue Code of 1986, as amended, was included in these estimates. 3

59 3.2 Capital Improvement Program The Capital Improvement Program needed to serve the Development is projected to consist of improvements which will serve all lands in the District. The Capital Improvement Program will consist of undergrounding of electrical facilities, roadway improvements, storm water management, potable water, sanitary sewer and reclaimed water facilities, parks, landscaping and hardscape. The total cost of the improvement is estimated to total approximately $31,746,216. According to the District Engineer, these infrastructure improvements will serve and provide benefit to all land uses in the District. The improvements that are part of the Capital Improvement Program will comprise an interrelated system of improvements, which means all of improvements will serve the entire District and improvements will be interrelated such that they will reinforce one another. Table 2 in the Appendix illustrates the specific components of the Capital Improvement Program. At present time, the District will fund approximately $7,561, in construction costs, with the balance of the Capital Improvement Program funded and/or contributed by the Developer to the District at no cost. 4.0 Financing Program 4.1 Overview As noted above, the District is embarking on a program of capital improvements which will facilitate the development of lands within the District. Generally, construction of public improvements is either funded by the Developer and then acquired by the District or funded directly by the District. The choice of the exact mechanism for providing public infrastructure has not yet been made at the time of this writing, and the District may either acquire the public infrastructure from the Developer or construct it, or even partly acquire it and partly construct it. The District will fund only a portion of the cost of the Capital Improvement Program with long-term indebtedness, while the 4

60 balance will be contributed by the Developer to the District at no cost. Under the final financing plan, the District will fund approximately $7,561, in construction costs with proceeds of Special Assessment Revenue Bonds, Series 2018 (the "Bonds") in the principal amount of $8,710, Types of Bonds Proposed The final financing plan for the District provides for the issuance of the Bonds in the principal amount of $8,710,000 to defray construction/ acquisition expenses of approximately $7,561, The Bonds will be amortized in 30 annual installments following an approximately 9.5-month capitalized interest period. Interest payments on the Bonds will be made every May 1 and November 1, and principal payments on the Bonds would be made every May 1. In order to finance the approximately $7,561, in improvement costs, the District will need to borrow more funds and incur indebtedness in the total amount of $8,710,000. The difference is comprised of debt service reserve, capitalized interest, underwriter's discount and costs of issuance. The sources and uses of funding are presented in Table 3 in the Appendix. 5.0 Assessment Methodology 5.1 Overview The issuance of the Bonds provides the District with a portion of the funds necessary to construct/acquire the infrastructure improvements which are part of the Capital Improvement Program outlined in Section 3.2 and described in more detail by the District Engineer in the Engineer's Report. These improvements lead to special and general benefits, with special benefits accruing to the assessable properties within the boundaries of the District and general benefits accruing to areas outside the District but being only incidental in nature. The debt incurred in financing the public infrastructure will be paid off by assessing properties that derive special and peculiar benefits from the Capital Improvement Program. All properties that receive special benefits from the debt 5

61 financed portion of the Capital Improvement Program will be assessed for their fair share of the debt issued in order to finance all or a portion of the Capital Improvement Program. 5.2 Benefit Allocation The original development plan included in the Master Report envisioned the development of 638 single-family residential units, however, as already mentioned in Section 2.2 of this Supplemental Report, the development plan for Harmony West is expected to change, resulting in the revised total number of residential units of 631, (plus two recreational amenities), although unit numbers and land use types may change throughout the development period. According to the District Engineer, infrastructure improvements will serve and provide benefit to all land uses in the District. The improvements that are part of the Capital Improvement Program will comprise an interrelated system of improvements, which means all of improvements will serve the entire District and improvements will be interrelated such that they will reinforce one another. By allowing for the land in the District to be developable, both the improvements that comprise the Capital Improvement Program and their combined benefit will be greater than the sum of their individual benefits. All of the land uses within the District will benefit from each infrastructure improvement category, as the improvements provide basic infrastructure to all land within the District and benefit all land within the District as an integrated system of improvements. As stated previously, the public infrastructure improvements included in the Capital Improvement Program have a logical connection to the special and peculiar benefits received by the land within the District, as without such improvements, the development of the properties within the District would not be possible. Based upon the connection between the improvements and the special and peculiar benefits to the land within the District, the District can assign or allocate a portion of the District's debt through the imposition of non-ad valorem assessments, to the land receiving such special and peculiar benefits. Even though these special and peculiar benefits are real and ascertainable, the precise amount of the benefit cannot yet be calculated with mathematical certainty. 6

62 However, such benefit is more valuable than the pro-rata cost of the improvements necessary for that parcel, or the actual non-ad valorem assessment amount levied on that parcel. The development of land in the Villages at Harmony will include two recreational amenities that will be owned and operated either by the District or home owners association for the Development (to the extent not funded by the Bonds). While it is beyond question that the parcels containing the recreational amenities will benefit from the provision of the Capital Improvement Program, the District may determine to exempt such properties from Bond Assessments (to be defined later in this document) provided that the requirements of Section , F.S. have been satisfied that such properties are exempt from assessments as a matter of law. The rationale for this exemption is that the cost of Bond Assessments will already be borne by the Bond Assessments-paying residential property owners within the District in the proportion equivalent to their benefit of public improvements. In accordance with the Master Report, the benefit associated with the Capital Improvement Program of the District is proposed to be allocated to the different product types within the District in proportion to the density of development and intensity of use of the master infrastructure as measured by a standard unit called an Equivalent Residential Unit ("ERU"). Table 4 in the Appendix illustrates the ERU weights that are proposed to be assigned to the land uses contemplated to be developed within the District based on the relative density of development and the intensity of use of master infrastructure, the total ERU counts for each land use category, and the share of the benefit received by each land use. The rationale behind different ERU weights is supported by the fact that generally and on average smaller units or units with a lower intensity of use will use and benefit from the District's improvements less than larger units or units with a higher intensity of use, as for instance, generally and on average smaller units or units with lower intensity of use produce less storm water runoff, may produce fewer vehicular trips, and may need less water/sewer capacity than larger units. Additionally, the value of the larger units or units with a higher intensity of use is likely to appreciate by more in terms of dollars than that of the smaller units or units with a lower intensity of use as a result of the implementation of the Capital Improvement Program. As the exact amount of the benefit and appreciation is 7

63 not possible to be calculated at this time, the use of ERU measures serves as a reasonable approximation of the relative amount of benefit received from the District's improvements. In order to facilitate the marketing of the 631 residential units within the Development, the Developer requested that the District limit the amount of annual assessments for debt service on the Bonds to certain predetermined levels, and in order to accomplish that, the Developer will be required to complete all public capital infrastructure improvements that are part of the Capital Improvement Program in excess of the total amount available from the proceeds of the Bonds. Using the ERU benefit allocations developed in Table 4 in the Appendix and applying such ERU benefit allocations to the total cost estimate of the Capital Improvement Program of $31,746,216, Table 5 in the Appendix illustrates the allocation of benefit from the Capital Improvement Program to the various unit types in the District. The District will fund only a portion of that amount in the total amount of approximately $7,561, from proceeds of the Bonds, while the balance of the cost of the Capital Improvement Program in the total amount estimated at $24,184, will be funded by the Developer and improvements funded in such way will be contributed to the District at no cost to the District under a completion agreement that will be entered into by the Developer and District. Table 5 in the Appendix presents the allocation of costs of the Capital Improvement Program as described in this paragraph. Table 6 in the Appendix presents the apportionment of the special assessments associated with repayment of the Bonds (the Bond Assessment ) in accordance with the costs allocations presented in Table 5. Table 6 also presents the annual levels of the projected Bond Assessment annual debt service assessments per unit. 5.3 Assigning Debt The Bond Assessments will initially be levied on all of the gross acre land in the District. Consequently, the Bond Assessments will be levied on approximately /- gross acres on an equal prorata gross acre basis and thus the total bonded debt in the amount of $8,710,000 will be preliminarily levied on approximately /- gross acres at a rate of $30, per acre. 8

64 As the land is platted, the Bond Assessments will be allocated to each platted parcel on a first platted-first assigned basis based on the planned use for that platted parcel as reflected in Table 6 in the Appendix. Such allocation of Bond Assessments to platted parcels will reduce the amount of Bond Assessments levied on unplatted gross acres within the District. Further, to the extent that any residential land which has not been platted is sold to another developer or builder, the Bond Assessments will be assigned to such parcel at the time of the sale based upon the development rights associated with such parcel that are transferred from seller to buyer. The District shall provide an estoppel or similar document to the buyer evidencing the amount of Bond Assessments transferred at sale. 5.4 Lienability Test: Special and Peculiar Benefit to the Property As first discussed in Section 1.3, Special Benefits and General Benefits, improvements undertaken by the District create special and peculiar benefits to certain properties within the District. The District's improvements benefit assessable properties within the District and accrue to all such assessable properties on an ERU basis. Improvements undertaken by the District can be shown to be creating special and peculiar benefits to the property within the District. The special and peculiar benefits resulting from each improvement include, but are not limited to: a. added use of the property; b. added enjoyment of the property; c. decreased insurance premiums; d. increased marketability and value of the property. The improvements which are part of the Capital Improvement Program make the land in the District developable and saleable and when implemented jointly as parts of the Capital Improvement Program, provide special and peculiar benefits which are greater than the benefits of any single category of improvements. These special and peculiar benefits are real and ascertainable, but not yet capable of being calculated and assessed in terms of numerical value; however, such benefits are more valuable than either the 9

65 cost of, or the actual assessment levied for, the improvement or debt allocated to the parcel of land. 5.5 Lienability Test: Reasonable and Fair Apportionment of the Duty to Pay A reasonable estimate of the proportion of special and peculiar benefits received from the improvements is delineated in Table 4 (expressed as ERU factors) in the Appendix. The apportionment of the assessments is fair and reasonable because after accounting for the effects of the Developer s contribution of capital improvements that did not have to be financed with proceeds of the Bonds and with the exception mentioned in Section 5.2, it was conducted on the basis of consistent application of the methodology described in Section 5.2 across all assessable property within the District according to reasonable estimates of the special and peculiar benefits derived from the Capital Improvement Program by different land uses. Accordingly, no acre or parcel of property within the District will be liened for the payment of any non-ad valorem special assessment more than the determined special benefit peculiar to that property. 5.6 True-Up Mechanism The Assessment Methodology described herein is based on conceptual information obtained from the Developer prior to full final platting and construction. As development occurs, it is possible that the number of units within each product category and the categories of residential units themselves might change. The mechanism for maintaining the methodology over the changes is referred to as true-up. This mechanism is to be utilized to assure that the Bond Assessment for each product category never exceeds the initially allocated assessment as contemplated in the adopted assessment methodology. If such changes occur, the methodology described herein is applied to the land based on number of and type residential units of a particular type in the parcel. 10

66 If as a result of platting and apportionment of the Bond Assessment to the platted land, the total number of units within each product category is equal to the number in Tables 1 and 4 in the Appendix, then no true-up adjustment will be necessary. If as a result of platting and apportionment of the Bond Assessment to the platted land, the Bond Assessment per unit for land that remains unplatted is lower that the levels in Table 6 in the Appendix, for instance as a result of more larger units, meaning a higher Bond Assessment carrying capacity, then per lot Bond Assessment for all lots will be recalculated based upon the higher total number of larger units capable of carrying a higher Bond Assessment, and each unit's Bond Assessment will be reduced proportionally to the increase in the debt carrying capacity if that state persists at the conclusion of platting of all land within the District. If, in contrast, as a result of platting and apportionment of the Bond Assessment to the platted land, the Bond Assessment per unit for land that remains unplatted within the District is higher that the levels in Table 6 in the Appendix, for instance as a result of fewer larger lots, meaning a lower Bond Assessment carrying capacity, then the loss of the debt carrying capacity as expressed in loss of Bond Assessment will be collected from the Developer, its successor or assigns in accordance with a true-up agreement to be entered into between the District and the Developer, which will be binding on assignees. In addition to platting of property within the District, any planned sale of an unplatted land to another builder or developer will cause the District to initiate a true-up test as described above to test whether the amount of the Bond Assessments for land that remains unplatted is consistent with the levels illustrated in Table 6 in the Appendix. The test will be based upon the development rights as signified by the number of units of particular single-family products transferred from seller to buyer. The District shall provide an estoppel or similar document to the buyer evidencing the amount of Bond Assessments transferred at sale. 5.7 Assessment Roll The Bond Assessments of $8,710,000 are proposed to be initially levied over the area described in Exhibit A, which is all of the lands in the District. Excluding any capitalized interest period, debt 11

67 service assessments shall be paid in thirty (30) annual principal installments. Exhibit "A" Harmony West Community Development District Assessment Roll Parcel No. Owner Name Address City State ZIP Assessment HARMONY FLORIDA LAND LLC 1750 W BROA DWAY STE 111 OV IEDO, FL $8,710,000 Total $8,710,000 12

68 6.0 Appendix Table 1 Harmony West Community Development District Development Plan Product Type SF 40' SF 50' SF 60' Total Number of Units Table 2 Harmony West Community Development District Capital Improveme nt Program Improve ment Cost Unde rgroundi ng of El e ctri cal Faci l i ti e s $650, 000 Roadways $5,795, 337 Stormw ate r P onds $4,750, 125 Potabl e Wate r Di stri buti on $3,000, 681 Sani tary Se we r Syste m $4,443, 479 Re cl ai me d Wate r Di stri buti on $1,238, 641 Parks, Landscape and Hardscape $6,576, 918 Prof e ssi onal Fe es $2,645, 518 Conti nge ncy $2,645, 518 Total $31,746,216 13

69 Tabl e 3 Harmony West Community De velopment District Sources and Use s of Funds Source s Bond Proce e ds: Par Amount Total Sources $8, 710, $8,710, Uses Proje ct Fund De posi ts: Proj e ct Fund $7, 561, Othe r Fund De posi ts: De bt Se rvi ce Re se rve Fund Capi tal i ze d Inte re st Fund De l i ve ry Date Ex pe nses: Costs of Issuance Unde rw ri te r's Di scount Total Use s $430, $354, $189, $174, $8,710, Tabl e 4 Harmony West Community De velopment District Be ne fit Allocation #REF! #REF! #REF! ERU Weight per Percent Share of Product Type Number of Units Unit Total ERU Total SF 40' % SF 50' % SF 60' % Total % 14

70 Tabl e 5 Harmony West Community De velopment District Cost Allocation and Bond Asse ssme nt Apportionme nt Total Cost Apportionment Developer Improve me nts Total Bond Base d on Be ne f i t Contribution of Funde d with Asse ssment Product Type Allocation Improve me nts Bonds Apportionment SF 40' $6, 361, $4, 846, $1,515, $1, 745, SF 50' $17, 119, $13, 041, $4,077, $4, 696, SF 60' $8, 265, $6, 296, $1,968, $2, 267, Total $31,746, $24,184, $7,561, $8,710, Tabl e 6 Harmony West Community De velopment District Bond Assessme nt Apportionment Bond Annual Bond Total Bond Assessments Asse ssme nts Asse ssme nts Apportionme nt Debt Service per Product Type Numbe r of Units Apportionment pe r Unit Unit* SF 40' 157 $1, 745, $11, $ SF 50' 338 $4, 696, $13, $ SF 60' 136 $2, 267, $16, $1, Total 631 $8,710, * Incl ude d 2% County costs of col l e cti on and 4% e arl y payme nt al l owance - assumes March payme nt 15

71 Exhibit A Bond Assessments of $8,710,000 are proposed to be levied over the following land: A parcel of land lying in a portion of Sections 13 & 24, Township 26 South, Range 31 East, Osceola County, Florida, being more particularly described as follows: Commencing at a point on the East Right of Way line of U.S. Highway No (S.R. 500) and the North line of Section 24, Township 26 South, Range 31 East, thence run S89 45'20"E, along said North line of Section 24, a distance of feet to the POINT OF BEGINNING; thence continue S89 45'20"E along said line, a distance of 1, feet; thence run S89 45'32"E, a distance of 2, feet; thence run N17 43'23"E, a distance of feet; thence run S89 43'51"E, a distance of feet; thence run S00 16'23"W, a distance of feet; thence run S89 43'36"E, a distance of feet; thence run S12 23'18"E, a distance of 1, feet; thence run S26 50'03"W, a distance of feet; thence run S81 35'58"W, a distance of feet; thence run S48 52'23"W, a distance of feet; thence run S30 59'42"E, a distance of feet; thence run S26 50'03"W, a distance of feet; thence run N90 00'00"W, a distance of 2, feet; thence run S31 54'38"E, a distance of feet; thence run S32 05'35"E, a distance of 1, feet; thence run S60 42'18"W, a distance of 1, feet to a point on the East Right of Way line of U.S. Highway No (S.R. 500); thence run N28 49'40"W, along said East Right of Way line, a distance of 3, feet; thence run N61 10'41"E, a distance of feet to the Point of Curvature of a curve concave to the Northwest, having a Radius of 2, feet and a Central Angle of 16 04'17"; thence run Northeasterly along the Arc of said curve, a distance of feet (Chord Bearing = N53 08'32"E, Chord = feet); thence run N46 01'01"W, a distance of feet; thence run N43 58'59"E, a distance of feet; thence run N32 10'47"W, a distance of 1, feet; thence run N36 02'44"W, a distance of feet; thence run N45 17'29"W, a distance of feet; thence run N55 19'37"W, a distance of feet to the POINT OF BEGINNING. Containing acres, more or less.

72 HARMONY WEST COMMUNITY DEVELOPMENT DISTRICT 8

73 RESOLUTION A RESOLUTION OF THE BOARD OF SUPERVISORS OF THE HARMONY WEST COMMUNITY DEVELOPMENT DISTRICT AUTHORIZING, CONFIRMING, AND RATIFYING THE ASSIGNMENT OF CONTRACTS FOR PUBLIC INFRASTRUCTURE; AUTHORIZING THE APPROVAL, EXECUTION, AND DELIVERY OF CHANGE ORDERS; AUTHORIZING THE ACCEPTANCE AND CONVEYANCE OF PUBLIC INFRASTRUCTURE AND PROPERTY; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the Harmony West Community Development District (the District ) is a local unit of special-purpose government created and existing pursuant to Chapter 190, Florida Statutes; WHEREAS, the District has previously determined to undertake, in one or more stages, the acquisition, construction, operation and maintenance of public infrastructure as described in the Engineer s Report dated May 30, 2018 (the 2018 Project ); WHEREAS, Harmony Florida Land, LLC, a Delaware limited liability company ( Developer ) is the sole landowner and developer of lands within the District; WHEREAS, the District and the Developer have entered into certain agreements for the construction, acquisition, funding, completion, and conveyance of the 2018 Project; WHEREAS, the Developer began construction of portions of the 2018 Project prior to the District s ability to issue bonds to fund a portion of the 2018 Project; WHEREAS, the Developer entered into an Off-Site Utilities Contract and a Phase 1A Site Infrastructure Contract with Jr Davis Construction Company, Inc., a Florida corporation ( Contractor ); WHEREAS, the District has now issued bonds and generated proceeds for a construction fund for the purpose of funding portions of the 2018 Project; WHEREAS, the District, the Developer, and the Contractor have executed the Assignment and Assumption dated July 13, 2018 for the Off-Site Utilities Contract as attached hereto as Exhibit A and the Partial Assignment and Assumption dated July 17, 2018 for portions of the Phase 1A Site Infrastructure Contract as attached hereto as Exhibit B (together the Assignments ); WHEREAS, the Board of Supervisors of the District (the Board ) desires to authorize, confirm, and ratify the Assignments and authorize the approval, execution, and delivery and change orders to any work contemplated by the Assignments; and WHEREAS, the Board desires to authorize the approval, acceptance, execution, conveyance and delivery of any public infrastructure or property related thereto as contemplated as a part of the 2018 Project. { DOC/} Page 1 of 2

74 NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF SUPERVISORS OF THE DISTRICT AS FOLLOWS: Section 1. Recitals. The foregoing recitals and exhibits are hereby incorporated into this Resolution by reference. Section 2. Ratification of the Assignments. The Board hereby authorizes, confirms, and ratifies the Assignments. Section 3. Authorization of Change Orders. The Chair or the Vice Chair of the Board are hereby authorized and directed, on behalf of and in the name of the District, and under its seal, or otherwise, to approve, execute, and deliver any change orders to any work contemplated by the Assignments, subject only to final review and approval by the District Counsel, the District Engineer, and the District Manager. Any additions, deletions or modifications may be made and approved by the Chair or the Vice Chair and their execution of the documents shall be conclusive evidence of such approval. The Secretary or any Assistant Secretary of the Board of Supervisors of the District is hereby authorized to attest such execution. Any authorized change orders shall be presented at the next Board meeting to be ratified Section 4. Authorization of Acceptance and Conveyance of Public Infrastructure and Property. The Chair or the Vice Chair of the Board are hereby authorized and directed, on behalf of and in the name of the District, and under its seal, or otherwise, to approve, accept, execute, convey, and deliver any public infrastructure or property related thereto as contemplated as a part of the 2018 Project, subject only to final review and approval by the District Counsel, the District Engineer, and the District Manager. The execution of the documents or instruments shall be conclusive evidence of such approval. The Secretary or any Assistant Secretary of the Board of Supervisors of the District is hereby authorized to attest such execution. Any authorized approval, acceptance, execution, conveyance or delivery shall be presented at the next Board meeting to be ratified. Section 5. Effective Date. This Resolution shall become effective upon adoption by the Board of Supervisors. PASSED AND ADOPTED THIS 7 TH DAY OF AUGUST, Attest: Harmony West Community Development District Craig Wrathell, Secretary Chair/Vice Chair, Board of Supervisors { DOC/} Page 2 of 2

75 HARMONY WEST COMMUNITY DEVELOPMENT DISTRICT 9

76 RESOLUTION A RESOLUTION OF THE BOARD OF SUPERVISORS OF THE HARMONY WEST COMMUNITY DEVELOPMENT DISTRICT EXTENDING THE TERMS OF OFFICE OF ALL CURRENT SUPERVISORS TO COINCIDE WITH THE GENERAL ELECTION PURSUANT TO SECTION , FLORIDA STATUTES; PROVIDING FOR SEVERABILITY; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the HARMONY WEST Community Development District ( District ) is a local unit of special purpose government created and existing pursuant to Chapter 190, Florida Statutes; and WHEREAS, the current members of the Board of Supervisors ( Board ) were elected by the landowners within the District based on a one acre/one vote basis; and WHEREAS, Chapter 190, Florida Statutes, authorizes the Board to adopt a resolution extending or reducing the terms of office of Board members to coincide with the general election in November; and WHEREAS, the Board finds that it is in the best interests of the District to adopt this Resolution extending the terms of office of all current Supervisors of the District. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF SUPERVISORS OF THE HARMONY WEST COMMUNITY DEVELOPMENT DISTRICT: SECTION 1. The following terms of office are hereby extended to coincide with the general election to be held in November of 2020: Seat #3 Seat #4 Seat #5 (currently held by Mark Hills) (currently held by Jennifer Jerman) (currently held by ) The following terms of office are hereby extended to coincide with the general election to be held in November of 2022: Seat #1 Seat #2 (currently held by Richard Jerman) (currently held by John Kraynick) SECTION 2. If any provision of this Resolution is held to be illegal or invalid, the other provisions shall remain in full force and effect. SECTION 3. This Resolution shall become effective upon its passage and shall remain in effect unless rescinded or repealed. 1

77 PASSED AND ADOPTED this day of, ATTEST: HARMONY WEST COMMUNITY DEVELOPMENT DISTRICT Print Name: Secretary/Assistant Secretary Print Name: Chair/Vice Chair, Board of Supervisors 2

78 HARMONY WEST COMMUNITY DEVELOPMENT DISTRICT 10

79 AGREEMENT THIS AGREEMENT is made and entered into this 23rd day of May, 2018, by and between Hannony West Community Development District (CDD), and Katrina S. Scarborough, Osceola County Property Appraiser (Property Appraiser), who understand and agree as follows: WITNESSETH Whereas, Hannony West CDD has declared its intent to use the unifonn method of collecting non-ad valorem assessment as authorized by section , Florida Statutes, pursuant to the method provided for in sections I and , Florida Statutes. Whereas, section (2), Florida Statutes, requires that a written agreement be entered into between Hannony West CDD and Property Appraiser providing for reimbursement by Hannony West CDD of the necessary administrative costs incurred by the Prope1iy Appraiser under section Now Therefor~ the pmiies agree that: I. The Prope1iy Appraiser shall perf01111 those services specified in section , to be perfonned by a property appraiser for the benefit of Hannony West CDD. In perfonning those services, the Prope1iy Appraiser may obtain the assistance ofosceola County. 2. Hannony West CDD shall reimburse the Property Appraiser for all necessary administrative costs incurred providing such services, including any administrative costs incurred by Osceola County at the request ofthe Prope1iy Appraiser as set forth in section (2). 3. Administrative costs shall include, but not be limited to, those costs associated with personnel, fonns, supplies, data processing, computer equipment, postage, and programming as prescribed in section (2). Hannony West CDD also agrees to hold the Property Appraiser

80 harmless for any and all costs, court costs, and attorney's fees resulting from or arising from any and all challenges, both administrative and judicial, which the Property Appraiser may be required to defend involving the imposition and/or levy of non-ad valorem assessment. All such administrative costs and additional costs, cou1i costs, and attorney's fees incuned by the Property Appraiser in both administrative and judicial challenges shall be paid to the Property Appraiser within fifteen (15) days of the presentment of a statement or invoice setting forth the amount due and the reason therefore. 4. This Agreement is the minimum necessary to implement the law and will be amended as necessary from time to time to clarify or supplement the provisions hereof 5. The parties hereto agree that the Property Appraiser, by executing this Agreement and agreeing to assist Hannony West CDD in the collection of non-ad valorem assessments, does not warrant either the legal efficacy or validity of any levies made by Hannony West CDD as non-ad valorem assessments, or the conectness of the amount of the levy or charge imposed against the parcels of property to be subject to the levy, or any individual parcel subject to said levy. 6. The pmiies agree that any errors made in the amount of the levy or imposition or any other enors of omission or commission regardless of the nature or cause of same, shall be processed and corrected exclusively and solely by Hannony West CDD and that the Property Appraiser shall not be responsible for same. The parties further agree that all requests or claims made by any affected prope1iy owner for correction shall be processed exclusively by Hannony West CDD and shall be filed with Hannony West CDD, or its designee, provided that its designee shall not be the Prope1iy Appraiser. 2

81 7. The tenn of this Agreement shall commence with the 2018 non-ad valorem assessment rolls of Harmony West CDD and shall continue and extend uninten-upted from year to year fi"om the effective date as indicated below unless a notice of discontinuance shall be issued by any pmiy. A notice of discontinuance shall be in writing and shall be delivered not less than ninety (90) days in advance of the commencement of the next fiscal year of Hannony West CDD save and except during those years when Hannony West CDD in timely fashion notifies the Tax Collector and the Property Appraiser that it needs to collect and enforce the assessment pursuant to other provisions of law. 8. The parties to this Agreement agree to consult and cooperate as necessary and practical for the efficient and timely listing, preparation, submissions, cetiification, collection and enforcement against delinquencies of Hannony West CDD non-ad valorem or special assessment rolls and levies, including provision by Harmony West CDD to the other parties of any staff assistance reasonably necessary and required to effect the purposes of this Agreement. 9. The pmiies shall perfom1 all their obligations under this Agreement in accordance with good faith and pmdent practice. 10. This Agreement constitutes the entire agreement between the pmiies with respect to the subject matter contained herein and may not be amended, modified or discontinued, unless otherwise provided in this Agreement, except in writing and signed by all the pmiies hereto. Should any provision of this Agreement be declared to be invalid, the remaining provisions of this Agreement shall remain in full force and effect, unless such provision found to be invalid alter substantially the benefits of the Agreement for either of the pmiies or renders the statutory and regulatory obligations unperfonnab1e. 3

82 11. This Agreement shall be governed by the laws of the State of Florida. 12. Written notice shall be given to the parties at the following address, or such other place or person as each of the parties shall designate by similar notice: a. Harmony West CDD: 2300 Glades Road, Suite 410W Boca FL b. Property Appraiser: 2505 E. Irlo Bronson Memorial Highway Kissimmee, Florida In Witness Where of the patiies have hereunto set their hand and seals and such of them as are corporations have caused these presents to be signed by their duly authorized officers. ATTEST. Harmony West CDD By: By: As authorized for execution QY_ the ofharmony West CDD -at,...i..,..ts regular meeting WITNESSES: OSCEOLA COUNTY PROPERTY APPRAISER: 4

83 HARMONY WEST COMMUNITY DEVELOPMENT DISTRICT 11

84 AGREEMENT THIS AGREEMENT made and entered into this 7 th day of August, 2018, by and between Harmony West Community Development District, an independent special district created by Resolution No (hereinafter referred to as "the District), whose address is 2300 Glades Road, Suite 410W, Boca Raton, Florida 33431, and the OSCEOLA COUNTY TAX COLLECTOR, a constitutional officer of the State of Florida, whose address is 2501 E. Irlo Bronson Memorial Hwy, Kissimmee, Florida (hereinafter referred to as "Tax Collector"). WITNESSETH: WHEREAS, the District is authorized to impose non-ad valorem assessments and by resolution has expressed its intent to use the uniform method of notice, levy, collection and enforcement of such assessments, as authorized by Section , Florida Statutes (1994 Supp.); and WHEREAS, the uniform methodology with its enforcement provisions including the use of tax certificates and tax deeds for enforcing against any delinquencies, is more fair to the delinquent property owner than traditional lien foreclosure methodology; and WHEREAS, the uniform method will provide for more efficiency of collection by virtue of the assessment being on the tax notice issued by the Tax Collector which will produce positive economic benefits to Osceola; and WHEREAS, as the uniform methodology will tend to eliminate confusion and to promote local government accountability; and WHEREAS, Section (2), Florida Statutes, provides that the District shall enter into a written agreement with the Tax Collector for reimbursement of necessary administrative costs incurred in implementing said section; and WHEREAS, Section (7), Florida Statutes, provides that the District shall bear all costs associated with any separate notice in the event Tax Collector is unable to merge a nonad valorem assessment roll to produce the annual. tax notice; and WHEREAS, Section (8) (c), Florida Statutes, provides that the District shall compensate the Tax Collector for actual costs of collection of non-ad valorem assessments and, Section (2)(b), Florida Statutes, entitles Tax Collector to receive a 2% commission. NOW, THEREFORE, for and in consideration of the foregoing, including mutual terms, covenants and conditions herein contained, the parties do contract and agree as follows:

85 ARTICLE I PURPOSE The purpose of this Agreement is to establish the terms and conditions under which the Tax Collector shall collect and enforce the collection of those certain non-ad valorem assessments levied by the District to include reimbursement by the District to the Tax Collector for actual costs of collection pursuant to Section (8)(c), Florida Statutes; any costs involved in separate mailings because of non-merger of any non-ad valorem assessment roll as certified by Osceola Chain of Lakes Community Development District Board of Supervisors Chairman or its designee, pursuant to Section (7), Florida Statutes; and for necessary administrative costs, including, but not limited to, those costs associated with personnel, forms, supplies, data processing, computer equipment, postage and programming which attend all of the collection and enforcement duties imposed upon the Tax Collector by the uniform methodology, as provided in Section (2), Florida Statutes, ARTICLE II TERM The term of this Agreement shall commence on January 1, and shall run through December 31 of the same year, the date of signature of the parties notwithstanding, and shall automatically be renewed thereafter for successive periods not to exceed one (1) year each. However, the Harmony West Community Development District Board of Supervisors shall inform the Tax Collector, as well as the Property Appraiser and the Department of Revenue, by January 10 in any calendar year in which it intends to discontinue to use the uniform method of collecting each such assessment pursuant to Section (6), Florida Statutes. ARTICLE III COMPLIANCE WITH LAWS AND REGULATIONS The parties shall comply with all statutes, rules and regulations pertaining to the levy and collection of non-ad valorem assessments by, and any ordinances promulgated by Osceola County not inconsistent with, nor contrary to, the provisions of Section , Florida Statutes, and Section , Florida Statutes, and any subsequent amendments to said statutes, and any rules duly promulgated pursuant to said statutes. This Agreement incorporates the provisions of Section , Florida Statutes as they exist on the date of execution hereof and as they may be from time to time hereafter be amended or renumbered.

86 ARTICLE IV DUTIES AND RESPONSIBILITIES OF THE DISTRICT The District agrees, covenants and contracts to: (a) Timely reimburse the Tax Collector for actual collection costs incurred pursuant to Section , Florida Statutes; (b) Timely reimburse Tax Collector for necessary administrative costs for the Collection and enforcement of the applicable non-ad valorem assessment by the Tax Collector pursuant to Section (2), Florida Statutes, to include, but not be limited to, those costs associated with personnel, forms, supplies, data processing, computer equipment, postage and programming. (c) To timely pay for or alternatively to timely reimburse the Tax Collector for any separate tax notice necessitated by the Tax Collector not being able to merge the non-ad valorem assessment roll certified by the District Chairman or, its designee pursuant to Section (7), Florida Statutes. (d) The District, upon being timely billed, shall pay directly for necessary advertising relating to implementation of the uniform non-ad valorem assessment law pursuant to Sections and , Florida Statutes, and any applicable rules promulgated by the Department of Revenue thereunder. (e) By September 15 of each calendar year, the chairperson of the District, or its designee, shall officially certify to the Tax Collector the non-ad valorem assessment roll on compatible electronic medium, tied to the property parcel identification number, and otherwise conforming in format to that contained on the ad- valorem tax rolls submitted by the Property Appraiser to the Department of Revenue. The District shall post the non-ad valorem assessment roll and shall exercise its responsibility that such non-ad valorem assessment roll be free of errors and omissions. (f) The District agrees to cooperate with the Tax Collector to implement the uniform method of notice, levy, collection and enforcement of each non-ad valorem assessment, pursuant to, and consistent with, all the provisions of Sections and , Florida Statutes, or its successor of statutory provisions and all applicable rules promulgated by the Department of Revenue and their successor rules.

87 ARTICLE V DUTIES OF THE TAX COLLECTOR (a) The Tax Collector shall timely perform all acts and duties required of a tax collector under the provisions of sections and , Florida Statutes and the rules promulgated from time to time by the Department of Revenue. IN WITNESS WHEREOF, the parties have hereunto set their hands and seals and have caused these presents to be signed by their duly authorized officers, the date first above written. ATTEST: Witness Tax Collector Bruce Vickers ATTEST: Secretary By: Chairman of the Board

88 HARMONY WEST COMMUNITY DEVELOPMENT DISTRICT 12

89 HARMONY WEST COMMUNITY DEVELOPMENT DISTRICT FINANCIAL STATEMENTS UNAUDITED JUNE 30, 2018

90 HARMONY WEST COMMUNITY DEVELOPMENT DISTRICT BALANCE SHEET GOVERNMENTAL FUNDS JUNE 30, 2018 General Fund Debt Service Fund Total Governmental Funds ASSETS Cash $ 3,641 $ - $ 3,641 Due from Developer 7,327 8,508 15,835 Total assets $ 10,968 $ 8,508 $ 19,476 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ 7,267 $ 8,508 $ 15,775 Due to Developer - 15,606 15,606 Landowner advance 3,700-3,700 Total liabilities 10,967 24,114 35,081 DEFERRED INFLOWS OF RESOURCES Deferred receipts 7,327-7,327 Total deferred inflows of resources 7,327-7,327 Fund balances: Unassigned (7,326) - (7,326) Total fund balances (7,326) (15,606) (22,932) Total liabilities, deferred inflows of resources and fund balances $ 10,968 $ 8,508 $ 19,476 1

91 HARMONY WEST COMMUNITY DEVELOPMENT DISTRICT STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GENERAL FUND FOR THE PERIOD ENDED JUNE 30, 2018 Current Month Year to Date Budget % of Budget REVENUES Developer contribution $ 4,109 $ 51,788 $ 77,690 67% Total revenues 4,109 51,788 77,690 67% EXPENDITURES Professional & administrative Management/accounting/recording 2,000 14,000 26,000 54% Legal - general counsel - 4,347 12,500 35% Legal - boundary expansion - 4,990 12,500 40% Petition fee - boundary expansion - 15,000 - N/A Engineering - 2,614 3,000 87% Audit - - 5,750 0% Dissemination agent* % Telephone % Postage % Printing & binding % Legal advertising 1,155 10,728 9, % Annual district filing fee % Insurance - 5,000 5,500 91% Room rental N/A Contingencies % Website - 1, % Total professional & administrative 3,188 58,887 77,690 76% Excess/(deficiency) of revenues over/(under) expenditures 921 (7,099) - Fund balances - beginning (8,247) (227) - Fund balances - ending $ (7,326) $ (7,326) $ - 2

92 HARMONY WEST COMMUNITY DEVELOPMENT DISTRICT STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES DEBT SERVICE FUND SERIES 2018 FOR THE PERIOD ENDED JUNE 30, 2018 Current Month Year To Date REVENUES $ - $ - Total revenues - - EXPENDITURES Debt service Cost of issuance - 15,606 Total debt service - 15,606 Excess/(deficiency) of revenues over/(under) expenditures - (15,606) Fund balances - beginning (15,606) - Fund balances - ending $ (15,606) $ (15,606) 3

93 HARMONY WEST COMMUNITY DEVELOPMENT DISTRICT 13

94 1 MINUTES OF MEETING 2 HARMONY WEST 3 COMMUNITY DEVELOPMENT DISTRICT 4 5 A Regular Meeting and Public Hearing of the Board of Supervisors of the Harmony West 6 Community Development District were held on Tuesday, May 29, 2018 at 10:00 a.m., at 7 Johnston s Surveying, Inc., 900 Shady Lane, Kissimmee, Florida Present at the meeting were: Richard Jerman Chair 12 John Kraynick Vice Chair 13 Mark Hills Assistant Secretary 14 Jennifer Jerman Assistant Secretary Also present were: Craig Wrathell District Manager 19 Cindy Cerbone Wrathell, Hunt and Associates, LLC 20 Mark Straley (via telephone) District Counsel 21 Marc Stehli District Engineer 22 Mike Williams (via telephone) Bond Counsel FIRST ORDER OF BUSINESS Call to Order/Roll Call Mr. Wrathell called the meeting to order at 10:01 a.m. The Oath of Office was 28 administered to Mr. Hills, prior to today s meeting. Supervisors Kraynick, Hills and Richard 29 Jerman were present, in person. Supervisor Shoopman was not present. One seat remained SECOND ORDER OF BUSINESS Public Comments There being no public comments, the next item followed THIRD ORDER OF BUSINESS Consideration of Appointment to Vacant Seat 5; Term Expires November, Mr. Wrathell presented the letter of resignation from Mr. Shoopman, dated Thursday, vacant. May 24,

95 HARMONY WEST CDD May 29, 2018 On MOTION by Mr. Kraynick and seconded by Mr. Jerman, with all in favor, the resignation of Mr. Nick Shoopman, dated Thursday, May 24, 2018, was accepted. Mr. Wrathell stated Seats 4 and 5 were now vacant. Mr. Kraynick nominated Ms. 48 Jennifer Jerman to fill Seat 4; term expires November, No other nominations were made of Office to Ms. Jennifer Jerman. He provided and briefly explained the following items: i. Membership, Obligations and Responsibilities ii. iii. On MOTION by Mr. Hills and seconded by Mr. Kraynick, with all in favor, the appointment of Ms. Jennifer Jerman to Seat 4, term expires November, 2019, was approved. Seat 5 would remain vacant. 56 A. Administration of Oath of Office (the following to be provided in separate package) 57 Mr. Wrathell, a Notary of the State of Florida and duly authorized, administered the Oath Chapter 190, Florida Statutes Financial Disclosure Forms a. Form 1: Statement of Financial Interests b. Form 1X: Amendment to Form 1, Statement of Financial Interests c. Form 1F: Final Statement of Financial Interests 65 iv. Form 8B: Memorandum of Voting Conflict 66 Mr. Wrathell stated Form 1 must be completed and filed with the Supervisor of Elections 67 office, within 30 days of today FOURTH ORDER OF BUSINESS This item was discussed during the First Order of Business. Administration of Oath of Office to Newly Appointed Supervisor Mark Hills [SEAT 3]; Term Expires November, 2019 FIFTH ORDER OF BUSINESS Consideration of Resolution , Designating the Officers of the District and Providing for an Effective Date Mr. Wrathell presented Resolution Mr. Kraynick nominated the current slate of 80 officers, with the addition of Ms. Jennifer Jerman, as an Assistant Secretary, as follows: 2

96 HARMONY WEST CDD May 29, Chair Richard Jerman 82 Vice Chair John Kraynick 83 Secretary Craig Wrathell 84 Treasurer Craig Wrathell 85 Assistant Treasurer Jeff Pinder 86 Assistant Secretary Mark Hills 87 Assistant Secretary Jennifer Jerman 88 Assistant Secretary Vacant 89 Assistant Secretary Cindy Cerbone 90 No other nominations were made On MOTION by Mr. Kraynick and seconded by Mr. Hills, 93 with all in favor, Resolution , Designating the Officers 94 of the District, as nominated, and Providing for an Effective 95 Date, was adopted Mr. Wrathell affirmed that Seat 5 remains vacant SIXTH ORDER OF BUSINESS (for informational purposes) Mr. Wrathell provided an overview of the District s bond validation process and the bond 104 validation hearing for next week. There were no changes to the previously approved Engineer s 105 Report dated February 26, 2018 but questioned the Engineer s Report 638 unit count, which was 106 different from the 766 units in the Supplemental Special Assessment Methodology Report, dated 107 May 29, 2018 that includes the updated Development Plan to include the 25 product type. 108 Discussion ensued regarding the townhouses and confirmation that they were not 109 included in the legal remedy so the 25 product type should be removed from the Methodology 110 Report, confirmation that the product type unit numbers were correct and whether two units were 111 lost in Phase 1 or Phase 2. Mr. Kraynick recommended approving The Engineer s Report, 112 subject to revisions in determining whether Phase 1 or Phase 2 indicated the loss of two units. 113 Mr. Stehli will review the unit counts and, if applicable, submit a revised Engineer s Report. 114 Mr. Stehli gave an overview of Exhibit 12, the CDD s utility and roadway infrastructure 115 Cost Table. Roadway costs and expenses involving the Osceola County Grant of Mobility 116 credits were not included in this opinion

97 HARMONY WEST CDD May 29, On MOTION by Mr. Kraynick and seconded by Mr. Hills, 119 with all in favor, the , in substantial form, subject to District Engineer unit 121 count review, was approved SEVENTH ORDER OF BUSINESS Consideration of Supplemental Special 125 Assessment Methodology Report Mr. Wrathell stated the unit counts in the Supplemental Special Assessment Methodology 128 Report dated May 29, 2018 will be revised to coincide with Mr. Stehli s findings. Mr. Kessler, 129 of FMSbonds, Inc. (FMS) will be notified of the correct unit counts. 130 Mr. Wrathell gave an overview of the Supplemental Special Assessment Methodology 131 Report dated May 29, 2018, and described the information that could be found on each page; the 132 Methodology will be updated to coincide with the revised Engineer s Report. 133 Mr. Kraynick asked whether the gross funding amount loss could be offset by reallocating it within the remaining product types, resulting in increased assessments. response to the question on the status of the CDD s expansion, Mr. Stehli stated the petition was filed with the County and the County s final comments to the response to the County s preliminary comments, was pending. He would follow up this week and expects this to be on the County Commissioners July Agenda. Discussion ensued regarding the revised unit count affecting the original par amount of bonds figure and a variance remaining between the Reports, some due to the County s PSP adjustments. The decision was made to, once unit counts were 141 confirmed and revisions made, keep the bond figure as close as possible to the original amount. 142 Mr. Stehli would revise the unit count and the information to Mr. Wrathell and Mr. 143 Kessler. Mr. Wrathell would inform Mr. Kraynick and Mr. Kessler that the intention is to keep 144 the same par amount, increase assessments accordingly, revise all numbers and distribute the 145 results to the Board and Staff. Adjustments would be made to the Tables and throughout the 146 Report to reflect the corrected figure. The following changes were made: 147 Page 3 and throughout: Change 766 Unit Count with the correct Unit Count from the 148 Revised Engineer s Report 149 Page 3 and throughout: Insert West after Harmony 150 Page 13, Table 1 and throughout: Delete SF 25 Product Type 151 Page 13, Table 1, SF 50 Product Type: Change 338 to Page 13, Table 1, SF 60 Product Type: Change 136 to Page 13, Table 1, Total: Change 766 to Page 14, Table 4, Total: Change 766 to In

98 HARMONY WEST CDD May 29, On MOTION by Mr. Kraynick and seconded by Mr. Hills, 156 with all in favor, the Supplemental Special Assessment 157 Methodology Report dated May 29, 2018, in substantial form, 158 subject to the District Engineer revising the unit counts and the 159 revised numbers from Mr. Kessler, was approved EIGHTH ORDER OF BUSINESS Consideration of Resolution , 163 Supplementing its Resolution by 164 Authorizing the Issuance of its Harmony 165 West Community Development District 166 Special Assessment Revenue Bonds, 167 Series 2018 (Assessment Area One) in a 168 Principal Amount of Not Exceeding 169 $20,000,000 For the Principal Purpose of 170 Acquiring and Constructing Assessable 171 Improvements; Delegating to The 172 Chairman or Vice Chairman of the Board 173 of Supervisors of the District, Subject to 174 Compliance With the Applicable 175 Provisions Hereof, the Authority to 176 Award the Sale of Such 2018 Bonds to 177 FMSbonds, Inc., By Executing and 178 Delivering to Such Underwriter a Bond 179 Purchase Agreement and Approving the 180 Form Thereof; Approving the Form of 181 and Authorizing the Execution of the 182 First Supplemental Trust Indenture; 183 Appointing U.S. Bank National 184 Association as the Trustee, Bond 185 Registrar and Paying Agent for Such Bonds; Making Certain Findings; 187 Approving Form of Said 2018 Bonds; 188 Approving the Form of the Preliminary 189 Limited Offering Memorandum and 190 Authorizing the Use By the Underwriter 191 of the Preliminary Limited Offering 192 Memorandum and the Limited Offering 193 Memorandum and the Execution of the 194 Limited Offering Memorandum; 195 Approving the Form of the Continuing 196 Disclosure Agreement and Authorizing 197 the Execution Thereof; Authorizing 198 Certain Officials of Harmony West 199 Community Development District and 200 Others to Take All Actions Required in 201 Connection With the Issuance, Sale and 202 Delivery of Said 2018 Bonds; Providing 203 Certain Other Details With Respect to 5

99 HARMONY WEST CDD May 29, Said 2018 Bonds; and Providing an 205 Effective Date A. First Supplemental Trust Indenture 208 B. Bond Contract 209 C. Preliminary Limited Offering Memorandum 210 D. Disclosure Agreement 211 Mr. Williams presented Resolution He gave a brief overview. Mr. Kraynick 212 asked if the $42,700,000 Master Indenture figure and the Resolution figure Not Exceeding $ million would result in the funding of Phase 2 to be Not Exceeding $22,700,000. Mr. 214 Williams stated no; once the bonds are issued, the final figure would be entered into the 215 Resolution and subtracted from the $42,700,000, regardless of the document indicating Not 216 Exceeding $20 million On MOTION by Mr. Kraynick and seconded by Mr. Hills, 219 with all in favor, Resolution , Supplementing its 220 Resolution by Authorizing the Issuance of its 221 Harmony West Community Development District Special 222 Assessment Revenue Bonds, Series 2018 (Assessment Area 223 One) in a Principal Amount of Not Exceeding $20,000,000 For 224 the Principal Purpose of Acquiring and Constructing 225 Assessable Improvements; Delegating to The Chairman or 226 Vice Chairman of the Board of Supervisors of the District, 227 Subject to Compliance With the Applicable Provisions Hereof, 228 the Authority to Award the Sale of Such 2018 Bonds to 229 FMSbonds, Inc., By Executing and Delivering to Such 230 Underwriter a Bond Purchase Agreement and Approving the 231 Form Thereof; Approving the Form of and Authorizing the 232 Execution of the First Supplemental Trust Indenture; 233 Appointing U.S. Bank National Association as the Trustee, 234 Bond Registrar and Paying Agent for Such 2018 Bonds; 235 Making Certain Findings; Approving Form of Said Bonds; Approving the Form of the Preliminary Limited 237 Offering Memorandum and Authorizing the Use By the 238 Underwriter of the Preliminary Limited Offering 239 Memorandum and the Limited Offering Memorandum and 240 the Execution of the Limited Offering Memorandum; 241 Approving the Form of the Continuing Disclosure Agreement 242 and Authorizing the Execution Thereof; Authorizing Certain 243 Officials of Harmony West Community Development District 244 and Others to Take All Actions Required in Connection With 245 the Issuance, Sale and Delivery of Said 2018 Bonds; Providing 246 Certain Other Details With Respect to Said 2018 Bonds; and 247 Providing an Effective Date, was adopted

100 HARMONY WEST CDD May 29, NINTH ORDER OF BUSINESS Consideration of Resolution , 250 Approving a Proposed Budget for Fiscal 251 Year 2018/2019 and Setting a Public 252 Hearing Thereon Pursuant To Florida 253 Law; Addressing Transmittal, Posting 254 and Publication Requirements; 255 Addressing Severability; and Providing 256 an Effective Date Mr. Wrathell presented Resolution He reviewed the proposed Fiscal Year budget noting line item increases, decreases and eliminations, compared to Fiscal Year The District is Developer-funded; therefore, incurred expenses are funded through funding 261 requests to the Developer. In response to a question of whether there were plans in Fiscal Year to issue bonds for Phase 2, which would affect changing the Legal advertising line item 263 and proposed budget, Mr. Jerman stated he expects to issue bonds in The following 264 changes were made to the proposed Fiscal Year 2019 budget: Pages 1 and 2: Delete Room rental line item and narrative. Page 2, Under Management/accounting/recording, in Wrathell, Hunt and Associates, LLC, narrative: Delete entire last sentence referencing reduced fees. 269 On MOTION by Mr. Kraynick and seconded by Mr. Hills, 270 with all in favor, Resolution , Approving a Proposed 271 Budget for Fiscal Year 2018/2019, as amended, and Setting a 272 Public Hearing Thereon Pursuant To Florida Law for August 273 7, 2018 at 10:00 a.m., at this location; Addressing Transmittal, 274 Posting and Publication Requirements; Addressing 275 Severability; and Providing an Effective Date, was adopted TENTH ORDER OF BUSINESS Public Hearing Confirming the Intent of 279 the District to Use the Uniform Method of 280 Levy, Collection, and Enforcement of 281 Non-Ad Valorem Assessments as 282 Authorized and Permitted by Section , Florida Statutes; Expressing the 284 Need for the Levy of Non-Ad Valorem 285 Assessments and Setting Forth the Legal 286 Description of the Real Property Within that May or Shall Be Subject to the Levy 289 of District Non-Ad Valorem Assessments; 290 Providing for Severability; Providing for 291 Conflict and Providing for an Effective 292 Date 293 7

101 HARMONY WEST CDD May 29, A. Affidavit/Proof of Publication 295 The proof of publication for today s Public Hearing was provided for informational 296 purposes. 297 B. Consideration of Resolution , Expressing its Intent to Utilize the Uniform 298 Method of Levying, Collecting and Enforcing Non-Ad Valorem Assessments Which 299 May Be Levied By the Harmony West Community Development District in 300 Accordance with Sections and , Florida Statutes; Providing a 301 Severability Clause; and Providing an Effective Date 302 Mr. Wrathell presented Resolution and read the title. 303 ***Mr. Wrathell opened the Public Hearing.*** 304 No members of the public spoke. 305 ***Mr. Wrathell closed the Public Hearing.*** On MOTION by Mr. Kraynick and seconded by Mr. Hills, 308 with all in favor, Resolution , Expressing its Intent to 309 Utilize the Uniform Method of Levying, Collecting and 310 Enforcing Non-Ad Valorem Assessments Which May Be 311 Levied By the Harmony West Community Development 312 District in Accordance with Sections and , 313 Florida Statutes; Providing a Severability Clause; and 314 Providing an Effective Date, was adopted ELEVENTH ORDER OF BUSINESS Approval of Unaudited Financial 318 Statements as of April 30, Mr. Wrathell presented the Unaudited Financial Statements as of April 30, The 321 cost associated with Mr. Stehli preparing the Engineer s Report was booked in the Debt Service 322 Fund and was Developer-funded; however, this expense is eligible for reimbursement to the 323 Developer, if the expense is programmed into the costs of issuance of the bonds, which 324 subsequently reduces the construction account On MOTION by Mr. Kraynick and seconded by Mr. Hills, 327 with all in favor, the Unaudited Financial Statements as of 328 April 30, 2018, were approved TWELFTH ORDER OF BUSINESS Consideration of April 2, 2018 Public 332 Hearings and Regular Meeting Minutes 333 8

102 HARMONY WEST CDD May 29, Mr. Wrathell presented the April 2, 2018 Public Hearings and Regular Meeting Minutes 335 and asked for any additions, deletions or corrections On MOTION by Mr. Kraynick and seconded by Mr. Jerman, 338 with all in favor, the April 2, 2018 Public Hearings and 339 Regular Meeting Minutes, as presented, were approved THIRTEENTH ORDER OF BUSINESS Staff Reports A. District Counsel: Straley Robin Vericker 345 Mr. Straley stated, according to Mr. Kessler s , he intends to mail the Preliminary 346 Offering Document the week after the bond validation hearing and expects to close soon after the 347 appeal period ends, roughly July 6, B. District Engineer: Poulos & Bennett, LLC 349 There being no report, the next item followed C. District Manager: Wrathell, Hunt and Associates, LLC i. 0 Registered Voters in District as of April 15, 2018 Mr. Wrathell reported that there were no registered voters residing within the boundaries of the District as of April 15, FOURTEENTH ORDER OF BUSINESS Comments/Requests 357 There being no Board Members comments or requests, the next item followed FIFTEENTH ORDER OF BUSINESS Public Comments There being no public comments, the next item followed SIXTEENTH ORDER OF BUSINESS Adjournment There being nothing further to discuss, the meeting adjourned On MOTION by Ms. Jerman and seconded by Mr. Kraynick, 368 with all in favor, the meeting adjourned at 10:53 a.m [SIGNATURES APPEAR ON THE FOLLOWING PAGE] 9

103 HARMONY WEST CDD May 29, Secretary/Assistant Secretary Chair/Vice Chair 10

104 HARMONY WEST COMMUNITY DEVELOPMENT DISTRICT 14Ci

105

106 Date: To: From : Re: June 2J., 2oJ.8 Scott Trachtenberg Remediation of the CDD Name Website This proposal is for the COD Name website, which our development and audit team will perform the scope of services outlined below. ADA Site Compliance is a consultancy which provides specific services for the client. Any services outside of the scope below, or separate sites or templates, will require additional evaluations and proposals. A detailed Scope of Work will be provided, and agreed upon, prior to the start of the project. Technological Auditing WCAG Standards Detailed Reporting Accessibility Policy and Compliance Shield Indication to all website visitors that compliance, accessibility, and usability are a priority. Provides contact information (phone and/or ) for users who find inaccessible areas ofthe website. Scope of Services Performed by ADA Site Compliance: A. Annual Technological Auditing and Reporting- WCAG Standards B. Accessibility Policy and Compliance Shield

107 Compliance Shield + Accessibility Policy + ~Annual Technological Audit $1.99 (normally $249+- reduced rate negotiated by Wrath ell, Hunt and Associates) - Annual Pricing The above litigation mitigation measures provide an excellent start toward your effort of improving your websites accessibility. To further this process, human auditing is needed. In addition, PDFs available via your website must be remediated for compliance and accessibility. If you are interested in learning more about furthering your effort, we are happy to discuss this. Congratulations on taking action by implementing ADA Site Compliance's litigation mitigation steps 1 ADA Site Compliance Representative By: Name : Title : I<.+-- C:.f'c:J( r Title : ~)--dcj/8 Date : '"' Date:

108 "Ifyou think compliance is expensive, try non-compliarilce." Former Deputy U.S. Attorney General Paul McNulty