Walton County, Florida Leisure Lake Dam Improvements Assessment Memorandum

Transcription

1 Walton County, Florida Leisure Lake Dam Improvements Assessment Memorandum SEPTEMBER 2010 Prepared by: Government Services Group, Inc Mahan Drive, Suite 250 Tallahassee, Florida (850) (850) (Fax)

2 Table of Contents ASSESSMENT MEMORANDUM...1 ASSESSABLE COST CALCULATIONS...4 PRELIMINARY ASSESSMENT RATES...7 IMPLEMENTATION PHASE Government Services Group, Inc. i

3 List of Tables Table 1 Leisure Lake Dam Improvements Financing Terms... 4 Table 2 Benefit Area Summary... 7 Table 3 Benefit Area Detail by Parcel... 7 Table 4 Initial Prepayment Rate Per Unit... 8 Table 5 Prepayment Amounts Per Parcel... 8 Table 6 Annual Assessment Rate Per Unit... 9 Table 7 Annual Assessment Amounts Per Parcel... 9 Appendices Appendix A Dam Improvements Area Annual Debt Service Schedule Plus 1% Interest Appendix B Map of Leisure Lake Benefit Area and List of Benefitted Parcels Appendix C Ballot Survey Results as Tabulated by Walton County Appendix D Letter of Support by Coldwell Banker United Realtors Government Services Group, Inc. ii

4 Assessment Memorandum INTRODUCTION Walton County (County) has engaged Government Services Group, Inc. (GSG) and Nabors, Giblin & Nickerson, P.A. (NG&N) to assist in the development and implementation of a special assessment program to fund the capital costs for dam improvements within the Leisure Lake Benefit Area in a manner that is conducive to the imposition and collection of the assessments pursuant to the uniform method of collection in section , Florida Statutes (Assessment Project). GSG is a consulting firm located in Tallahassee and Orlando that specializes in government finance and taxation issues by working with cities, counties, special districts and state agencies to develop unique funding and service delivery solutions for critical infrastructure and service needs. GSG has developed extensive experience in structuring and implementing alternative revenue sources in Florida. NG&N is a law firm located in Tallahassee, Tampa, and Fort Lauderdale that is dedicated to the representation of local governments on issues of finance and taxation. This document is the Assessment Memorandum, which will identify the proposed capital project, describe the benefit area, and provide a description of the apportionment methodology including all underlying assumptions, assessment rate calculations and an implementation schedule in conformance with the Uniform Method of collection. GSG and NG&N will assist the County with the development and implementation of a recurring annual assessment to fund the dam improvements in the Leisure Lake Benefit Area commencing Fiscal Year , which would be collected on the tax bill in November of 2011 (Assessments). BACKGROUND This project pertains to the Leisure Lake Subdivision, which is located on Mossy Head Branch in Walton County, Florida. This area is comprised of 29 parcels in a private property subdivision (Leisure Lake Benefit Area). According to Walton County staff, all parcels within the Leisure Lake Benefit Area are designated as Residential. The Leisure Lake Homeowner s Association formally requested assistance from Walton County in the creation of a non-ad valorem assessment program to fund the costs necessary to complete the improvements in the respective benefit area. Improvements include the repair and maintenance for the dam supporting Reflection Lake, located in Leisure Lake Subdivision. Property owners within the benefit area were surveyed on two separate occasions resulting in a favorable vote for this assessment program. 1 1 Refer to the appendices for ballot survey results as tabulated by Walton County. Government Services Group, Inc. 1

5 OBJECTIVES The County retained GSG and NG&N to develop a special assessment program capable of funding the costs associated with dam improvements within the project area. The proposed special assessment and future recurring annual assessments will be collected on the tax bill in November 2011 for Fiscal Year The tax bill collection method would be in accordance with section , Florida Statutes (Uniform Method). The Uniform Method generally relies on the use of data available on the ad valorem tax roll. Accordingly, the challenge for the County is to develop a non-ad valorem assessment program which uses property information that is or will be on the ad valorem tax roll. To this end, GSG has been charged to fully cost the proposed improvements, to develop a fair and reasonable apportionment methodology for such assessable costs and determine assessment rates and parcel classifications that are accurate, fair and reasonable. The capital improvement non-ad valorem assessments are required to meet the Florida case law requirements for a valid special assessment. These requirements are: The capital improvements must provide a special benefit to the property being assessed; and, The costs assessed must be fairly and reasonably apportioned among the properties that receive the special benefit. The objectives of this Assessment Project were to: Provide an inventory of the improvements to be conducted. Determine the full costs of providing the proposed dam improvements. Review such final cost determination with the County staff to confirm that all elements provide the requisite special benefit to the assessed property. Determine the anticipated relative benefit derived by the affected properties within the area from the construction of the improvements. Recommend a fair and reasonable apportionment of assessable costs among the benefited parcels. Calculate assessment rates for the assessment improvement areas. Ascertain that the assessment rates and parcel classifications recommended conform to the statutory requirements of the Uniform Method. STUDY METHODOLOGY GSG performed the following tasks in accomplishing the project objectives: Undertook extensive data collection and a detailed research process to identify the proposed improvements; Identified all proposed construction and financing costs; and Government Services Group, Inc. 2

6 Distributed the revenue requirement to the benefited properties based upon the recommended parcel apportionment to determine preliminary assessment rates for the annual recurring assessment program. NG&N s responsibility included scrutiny of the proposed assessment apportionment methodology and deliverables and an analysis relative to the legal tests required in Florida for a valid special assessment that can be collected under the Uniform Method. DESCRIPTION OF IMPROVEMENTS Currently the portion of Reflections Lake located within the Benefit Area is at an unacceptable level and can only be rectified by repairing the dam. The dam mound also has the potential to cave-in causing a safety hazard and the need to temporary close a portion of Leisure Lake Road. This project provides for the repair and maintenance of the dam supporting Reflection Lake, located within the Benefit Area. This includes reconstruction of the spillway system and recontour of the dam for a non-agricultural impoundment. The Leisure Lake Homeowners Association and its representatives obtained cost estimates from Dunn Engineering and Middle Creek Contracting. The estimated cost to construct the dam improvements is approximately $72,810. Government Services Group, Inc. 3

7 Assessable Cost Calculations The Leisure Lake Homeowners Association obtained a Letter of Intent for project financing from Coastal Bank and Trust. The cost of dam improvements will be financed over a period of ten years. The following table provides information related to the financing assumptions used to develop the assessable costs: Table 1 -- Leisure Lake Dam Improvements Financing Terms Item Based On Amount Dunn Engineering HOA 5,000 Middle Creek Contracting HOA 57,810 Contingency HOA 10,000 Construction Loan Interest 12 months at 7.5% 7,899 Lender Origination Fee and Loan Costs Coastal Bank & Trust 920 Closing Costs Coastal Bank & Trust 322 GSG/NG&N start up costs Fixed study fee & ballot costs 23,319 First Class Notices $1.30 per parcel 47 Total Loan $105,317 Source: Leisure Lake HOA & Agents The financing terms provided in Table 1 are based on the following assumptions: 10 year level debt service 7.5% interest rate plus 1% Lender origination fee in the amount of $920 Other loan costs/closing costs $322 Loan terms allow prepayments with no prepayment penalty Quarterly debt service payments annually Twelve months of construction interest capitalized into permanent loan First class notices are the costs associated with the property owner notices required by Florida Statutes to be sent by first class mail and are based on a cost of $1.30 per parcel. SPECIAL BENEFIT ASSUMPTIONS The proposed dam improvements provide a special benefit to the assessed residential parcels by protecting the homeowners, keeping their property values in tack, protecting and preserving the lake and contributing to the tangible personal enjoyment of the lake. The repair and maintenance to the dam only provide a benefit to Leisure Lake Benefit Area and do not benefit any other area. In addition, these improvements directly benefit property owners within the Leisure Lake Benefit Area as well as increased Government Services Group, Inc. 4

8 property values due to enhanced aesthetics and neighborhood attractiveness. Attached as Appendix B is a map of the Leisure Lake Benefit Area and a list of those parcels receiving a benefit. A letter of support was received from Barbara Bidzos, Coldwell Bankers United Realtors confirming these effects (see Appendix D). Therefore, the proposed improvements protect and enhance the value and integrity of assessed property within the Leisure Lake Benefit Area by promoting the health, welfare, convenience and overall enjoyment of all assessed property owners. From this analysis, it was concluded that the proposed improvements enhance and strengthen the relationship of such improvements to the use and enjoyment of the assessed parcels and ultimately, the property values within the Leisure Lake Benefit Area. APPORTIONMENT METHODOLOGY All parcels within the Leisure Lake Benefit Area benefit from the renovation of the dam drainage structures. However, dependent upon each parcel s water frontage in relation to the subdivision s total water frontage, each parcel will benefit in varying degrees from the dam improvements. Accordingly, the assessable costs of the Assessment Project will be apportioned based on two factors: Number of Buildable Lots (Lot) Water Frontage per Lot Based on fieldwork and research of the Benefit Area, it was determined that there are 36 buildable lots within the Benefit Area which are primarily uniform in size and topography. Therefore, it is fair and reasonable to allocate a portion of the proposed improvement costs on a per buildable lot basis. Based on research of the Benefit Area, it was determined that the water frontage per lot varies from 70 feet to 125 feet per lot. The Water Frontage per Lot factor was developed to quantify the varying valueadded component for each lot based on the actual water frontage per lot, and each lot s enhanced benefit of use derived from the available access to the lake in the Benefit Area. Therefore, it is fair and reasonable to allocate a portion of the proposed improvement costs on a Water Frontage per Lot basis. Under the assessment methodology described herein, project costs were determined for the proposed improvements to the dam. The improvement costs will be allocated based on a combination of two factors: (1) 50 percent of project costs will be allocated to each of the parcels within the Benefit Area based upon the number of lots; and (2) 50 percent of project costs will be allocated based on each lot s portion of water frontage to the Benefit Area s total water frontage area. The owner of each parcel of property will be entitled to prepay the assessment at any time. The prepayment amount will be adjusted annually to reflect the principal retired from the annual assessment. The annual assessment for each parcel of property will include its share (based upon its relative percentage of the remaining aggregate prepayment amount) of the principal and interest on the funds financed and the County s annual collection cost for the assessments. An amount will also be added to cover the statutory discount applicable to early payment of ad valorem taxes and special assessments. After payment of the collection cost, all remaining amounts received by the County from proceeds of the assessment will be applied to the payment of principal and interest on the borrowed funds. Government Services Group, Inc. 5

9 As the existing parcels are subdivided for development, the assessment may be reallocated among the subdivided parcels. Subject to meeting the specified value to assessment ratio, the reallocation may be directed by the property owner. Any person owning two or more contiguous lots or tax parcels may claim a Unity of Title and thereby have all lots or tax parcels included in said Unity of Title treated as one Lot or tax parcel for purposes of the Leisure Lake Dam Improvement Assessment. Should this occur, the per Lot rate would have to be recalculated. Government Services Group, Inc. 6

10 Preliminary Assessment Rates The following tables provide the results of the apportionment methodology and the preliminary annual assessment rates. Table 2 summarizes the number of lots and water frontage for the Benefit Area. Table 2 -- Benefit Area Summary Number of Parcels Water Frontage Number of Lots Table 3 provides the detail lot and water frontage information for each parcel in the Benefit Area. Table 3 -- Benefit Area Detail by Parcel Property Owner PID Lake Frontage Feet Per Plat Buildable Lots DELAP MORRIS R & MARY S 23-3N SHELDON SCOTT S & DEBRA A 23-3N RILEY HARRY G & MARY F TRUSTEE 23-3N MURPHY JOHN & KATHY 23-3N ZIEJA JOHN & PAM 23-3N KIRCH RAYMOND S 23-3N SPITZER DOUGLAS LEE & LORI J 23-3N KLOSS PAMELA A 23-3N FRANTZ CHARLES & BARBARA J 23-3N BROWN WILLIAM HOWARD & 23-3N O'DANIELS MARY I 23-3N A MORELAND RICHARD SR 23-3N O'DANIELS DENNIS & KRISTINA M 23-3N MALEKNIA IRAJ & CHERYL A 23-3N BARTON LONNIE & DELORIS F 23-3N KANTNER RONALD S & KAY 23-3N L'ORANGE AUBREY CHARLES & 23-3N BILLIOT PAM 23-3N JOHNSON ROBERT F 23-3N PARKER BARNIE A 23-3N RIOPELLE EDSEL L JR & 23-3N MCLEOD WILLIAM DOYLE & DIANNE 23-3N MCLEOD WILLIAM DOYLE & DIANNE 23-3N LEGAULT SALLY R AS TRUSTEE OF 23-3N ERICKSON EDWARD D & ARDITH 23-3N JERNIGAN E EARL & DOROTHY 23-3N PACINHIK PATRICK & JANE 23-3N SMITH NORMA JEAN 23-3N HATTAWAY SARAH MARGARET 23-3N Government Services Group, Inc. 7

11 A per unit prepayment amount was determined if a property owner chooses to prepay the proposed capital improvement assessment in full without incurring any financing costs. Table 4 provides the initial prepayment rate based on a per buildable lot and per foot of waterfront footage basis. Table 4 Initial Prepayment Rate Per Unit Per Waterfront Foot Per Buildable Lot Initial Prepayment Rate $14.59 $1, Table 5 provides the initial prepayment amounts for each parcel in the Benefit Area if a property owner chooses to prepay the proposed capital improvements assessment in full. Table 5 -- Prepayment Amounts Per Parcel Property Owner PID Initial Prepayment Amount DELAP MORRIS R & MARY S 23-3N $2, SHELDON SCOTT S & DEBRA A 23-3N $2, RILEY HARRY G & MARY F TRUSTEE 23-3N $2, MURPHY JOHN & KATHY 23-3N $5, ZIEJA JOHN & PAM 23-3N $2, KIRCH RAYMOND S 23-3N $2, SPITZER DOUGLAS LEE & LORI J 23-3N $6, KLOSS PAMELA A 23-3N $5, FRANTZ CHARLES & BARBARA J 23-3N $2, BROWN WILLIAM HOWARD & 23-3N $5, O'DANIELS MARY I 23-3N A $4, MORELAND RICHARD SR 23-3N $2, O'DANIELS DENNIS & KRISTINA M 23-3N $2, MALEKNIA IRAJ & CHERYL A 23-3N $2, BARTON LONNIE & DELORIS F 23-3N $2, KANTNER RONALD S & KAY 23-3N $2, L'ORANGE AUBREY CHARLES & 23-3N $5, BILLIOT PAM 23-3N $2, JOHNSON ROBERT F 23-3N $2, PARKER BARNIE A 23-3N $2, RIOPELLE EDSEL L JR & 23-3N $2, MCLEOD WILLIAM DOYLE & DIANNE 23-3N $2, MCLEOD WILLIAM DOYLE & DIANNE 23-3N $2, LEGAULT SALLY R AS TRUSTEE OF 23-3N $2, ERICKSON EDWARD D & ARDITH 23-3N $5, JERNIGAN E EARL & DOROTHY 23-3N $2, PACINHIK PATRICK & JANE 23-3N $2, SMITH NORMA JEAN 23-3N $5, HATTAWAY SARAH MARGARET 23-3N $2, Table 6 provides the annual assessment amounts per assessment unit. The rates are based on the following assumptions: Government Services Group, Inc. 8

12 Total project construction costs of $72,810 provided by the Leisure Lake Homeowners Association. The annual debt service for the dam improvements in the amount of $16,396. Appendix A provides the annual debt service schedule. Assessment Administration costs pertain to the annual maintenance and update of the assessment roll. These costs are reimbursable through the assessment program and are estimated to be $3,500 annually. Tax Collector costs are the costs for the County to bill and collect the assessments using the tax bills mailed annually around November 1 st by the Walton County Tax Collector. These costs are limited to the lesser of 2 percent or actual costs and are reimbursable through the assessment program. These costs are estimated to be $438. Statutory Discount reflects a five percent reserve for the under-collection of assessments due to the discount on annual property tax bills allowed for property owners that pay prior to March 1 st and follows the County s budgeting policies. These costs are reimbursable through the assessment program and are estimated to be $1,130. Table 6 Annual Assessment Rate Per Unit Total Waterfront Footage Buildable Lot Assessment Administration $3,500 $1,750 $1,750 Tax Collector Costs Estimated at 2% $438 $219 $219 Statutory Discount Estimated at 5% $1,130 $565 $565 Annual Debt Service $16,396 $8,198 $8,198 Total Annual Assessment Amount $21,464 $10,732 $10,732 Waterfront Foot Buildable Lot Annual Assessment Amount Per Unit $3.26 $300 Table 7 provides the annual assessment amounts for each parcel in the Benefit Area. Table 7 Annual Assessment Amounts Per Parcel Property Owner PID Annual Assessment Amount DELAP MORRIS R & MARY S 23-3N $ SHELDON SCOTT S & DEBRA A 23-3N $ RILEY HARRY G & MARY F TRUSTEE 23-3N $ MURPHY JOHN & KATHY 23-3N $1, ZIEJA JOHN & PAM 23-3N $ KIRCH RAYMOND S 23-3N $ SPITZER DOUGLAS LEE & LORI J 23-3N $1, KLOSS PAMELA A 23-3N $1, FRANTZ CHARLES & BARBARA J 23-3N $ BROWN WILLIAM HOWARD & 23-3N $1, O'DANIELS MARY I 23-3N A $ MORELAND RICHARD SR 23-3N $ Government Services Group, Inc. 9

13 Property Owner PID Annual Assessment Amount O'DANIELS DENNIS & KRISTINA M 23-3N $ MALEKNIA IRAJ & CHERYL A 23-3N $ BARTON LONNIE & DELORIS F 23-3N $ KANTNER RONALD S & KAY 23-3N $ L'ORANGE AUBREY CHARLES & 23-3N $1, BILLIOT PAM 23-3N $ JOHNSON ROBERT F 23-3N $ PARKER BARNIE A 23-3N $ RIOPELLE EDSEL L JR & 23-3N $ MCLEOD WILLIAM DOYLE & DIANNE 23-3N $ MCLEOD WILLIAM DOYLE & DIANNE 23-3N $ LEGAULT SALLY R AS TRUSTEE OF 23-3N $ ERICKSON EDWARD D & ARDITH 23-3N $1, JERNIGAN E EARL & DOROTHY 23-3N $ PACINHIK PATRICK & JANE 23-3N $ SMITH NORMA JEAN 23-3N $1, HATTAWAY SARAH MARGARET 23-3N $ OUTSTANDING ISSUES COST ESTIMATES The Leisure Lake Homeowner s Association obtained cost estimates from vendors and provided the estimates to GSG to be used as the basis for the recommended rates contained within this study. Any significant increase in any of the related vendor construction costs would invalidate the rates and related notice disclosures provided within this study. PRELIMINARY ASSESSMENT RATES The estimated annual assessment amount per parcel (Table 7) was computed based on the total annual assessment amount and the number of assessment units (lots and waterfront footage). Part of the annual assessment amount includes a fixed fee for the costs associated with recurring administration of the program. Since these costs will not decrease as the number of assessment units potentially decrease over time due to payoff, these costs could cause the estimated annual assessment amounts to increase above the per unit costs referenced in Table 6. At the request of the County, the information included within the first class notices will provide property owners with an estimated maximum annual assessment amount of $ per lot and $3.46 per waterfront foot. This amount is based on 25% of property owners paying off the assessment up front without incurring financing costs. Government Services Group, Inc. 10

14 UNITY OF TITLE Any person owning two or more contiguous lots or tax parcels may claim a Unity of Title and thereby have all lots or tax parcels included in said Unity of Title treated as one Lot or tax parcel for purposes of the Leisure Lake Dam Improvement Assessment. Should this occur, the per Lot rate would have to be recalculated. If a property owner claims and is granted a Unity of Title, this could cause the estimated annual assessment amounts to increase above the per Lot costs referenced in Table 7. Government Services Group, Inc. 11

15 Implementation Phase FISCAL YEAR TIME FRAME The following section describes all of the steps required to implement and collect the proposed capital improvement special assessment on the ad valorem tax bill in Fiscal Year and thereafter. The County will be required to follow the statutory deadlines provided in section , Florida Statutes. Following this section is a critical events schedule identifying specific dates for all significant remaining events for the County to comply with as prescribed by the County s master capital assessment ordinance authorizing the imposition of the capital improvements special assessment. To use the tax bill collection process, a local government must follow the strict procedures provided in section , Florida Statutes (Uniform Method). A local government must initiate the process almost a year before it intends to begin using the Uniform Method to collect the assessments. The process begins with the passage of a resolution of intent prior to January 1 or, if the property appraiser, tax collector, and local government agree, March 1. The adoption of a resolution of intent does not obligate the local government to use the method or to impose a special assessment, but it is a prerequisite to using the Uniform Method. The local government must publish notice of its intent to consider a resolution to use the Uniform Method weekly for four consecutive weeks prior to a public hearing on the matter. If the resolution is adopted, the governing board must send a copy of it to the property appraiser, the tax collector, and the Florida Department of Revenue by January 10 or, if the property appraiser, tax collector, and local government agree, March 10. The County must comply with this requirement by adopting a resolution of intent and timely notifying the Walton County Property Appraiser, the Walton County Tax Collector and the Florida Department of Revenue. Even though the County adopted a resolution of intent on December 22, 2009, since the program will not be implemented until FY , the County must adopt another resolution of intent prior to January 1, The County surveyed property owners to determine the level of interest and support for the proposed dam improvements assessment program. The first survey was mailed to each property owner on January 4, Thirty days later, the majority of ballots returned to the County indicated to proceed further in the project. The County then directed GSG to perform an assessment study and develop rates. These rates were described within a second survey that was mailed to the property owners in Leisure Lake on August 9, This survey provided each owner with an estimate of the initial prepayment amount and annual assessment per parcel and requested their vote of approval or non-approval on the proposed assessment program. Tabulated results for both ballots are included in Appendix C. Based on the majority votes in favor of adopting the program, the County is required to adopt an initial assessment resolution for Fiscal Year pursuant to the master capital assessment ordinance. Adoption of the initial assessment resolution is scheduled for September 28, The initial assessment resolution will, among other things, briefly describe the capital improvement assessment program, the method of apportionment, set a public hearing date for final consideration, and direct and authorize the mailed and published notifications to those property owners included on the initial assessment roll. Government Services Group, Inc. 12

16 Upon adoption of the initial assessment resolution, the County will have made the tentative decision to move forward with the imposition of special assessments to fund the assessable cost calculations for the capital improvements project. After adopting the necessary implementing documentation, the local government must develop a computerized, non-ad valorem assessment roll that contains the basis and rate of the assessment and electronically applies it to each parcel subject to the assessment. The non-ad valorem assessment roll must utilize the parcel identification number and must be compatible with the ad valorem tax roll. Under section , Florida Statutes, property appraisers must annually provide certain information to local governments by June 1 to assist the local government in the preparation of special assessment rolls to be collected under the Uniform Method. The information must conform to that contained on the ad valorem tax roll, but the property appraiser need not submit information that is not on the ad valorem tax roll. If the local government determines that the information supplied by the property appraiser is insufficient to develop its non-ad valorem assessment roll, the local government must obtain information from other sources. Statutory requirements provide that a capital improvement special assessment roll must be adopted at a public hearing by September 15 so the tax collector can merge it with the ad valorem tax roll and mail a single bill for the combined collection of assessments and ad valorem taxes. At least 20 days prior to the public hearing, the County must publish notice of the hearing in a newspaper of general circulation within the County s boundaries and by individual first class United States mail to the owners of property subject to the assessment. The published notice is tentatively scheduled for September 30, 2010, since the County s publication runs once a week. The mailed first class notice is tentatively scheduled for October 5, At the public hearing tentatively scheduled for October 26, 2010, the County will adopt a final assessment resolution which, among other things, will confirm the initial assessment resolution, articulate the rate of assessments, approve the assessment roll, direct and authorize the method of collection, and provide for a prepayment period for the assessed property owners. Once the final assessment resolution is adopted and the roll certified by September 15 to the Walton County Tax Collector to be collected along with ad valorem taxes, any minor modifications, corrections or errors must be made in accordance with the procedure applicable to the correction of errors on the tax roll, upon written direction from the County to the Walton County Tax Collector. Collection of the special assessments and ad valorem taxes begins in November. Failure to pay the assessments and taxes result in the issuance of a tax certificate and may result in the sale of a tax deed. Government Services Group, Inc. 13

17 CRITICAL EVENTS SCHEDULE The following provides a general review related to the remaining critical events schedule: Event Ballot Series #1 Mailed January 4, 2010 Ballot Series #1 Return Deadline February 1, 2010 Notice to Proceed February 9, 2010 Second Ballot mailed out August 9, 2010 Return Deadline for Second Ballot (15 days) August 24, 2010 County to Tabulate Ballot Results August 26, 2010 Notice to Proceed with Implementation August 26, 2010 County adopts Initial Assessment Resolution September 28, 2010 County to Publish notice of Public Hearing to Adopt Final Assessment Resolution (Thursday paper) Date September 30, 2010 First-Class Notices mailed October 5, 2010 Public Hearing to Adopt Final Assessment Resolution October 26, 2010 GSG produces prepayment bills & mails them out October 29, 2010 Prepayment Period October 29 November 30, 2010 County provides list of prepayments to GSG December 3, 2010 GSG provides updated amounts to be financed to County/HOA December 10, 2010 HOA obtains financing and provides County and GSG with copy of financing documents December 15, 2010 County Adopts Resolution of Intent Prior to January 1, 2011 Public Hearing to adopt Annual Assessment Resolution August 1, 2011 Prepayment Period Ends August 1, 2011 County provides list of payoffs to GSG August 1, 2011 GSG updates preliminary assessment roll with corrections/updates/payoffs received from County September 1, 2011 GSG Creates Final Assessment Roll By September 10, 2011 GSG Exports/Transmits Final Assessment Roll to Tax Collector By September 15, 2011 County Certifies Non-Ad Valorem Assessment Roll to Tax Collector By September 15, 2011 Government Services Group, Inc. 14

18 Appendix A DAM IMPROVEMENTS AREA ANNUAL DEBT SERVICE SCHEDULE PLUS 1% INTEREST

19 Dam Improvements Area - Annual Debt Service Schedule Plus 1% Interest Term Year Fiscal Year Actual Rate Outstanding Principal Orig Interest Principal Interest + 1% Total Debt Service $105, $7, $7, $8, $16, $97, $7, $8, $8, $16, $89, $6, $8, $7, $16, $81, $6, $9, $6, $16, $72, $5, $9, $6, $16, $62, $4, $10, $5, $15, $51, $3, $11, $4, $15, $39, $2, $12, $3, $15, $27, $2, $13, $2, $15, $14, $1, $14, $1, $15, Government Services Group, Inc. A-1

20 Appendix B MAP OF DAM LEISURE LAKE BENEFIT AREA AND LIST OF BENEFITTED PARCELS

21 Government Services Group, Inc. B-1

22 Benefitted Parcels 23-3N N N N N N N N N N N A 23-3N N N N N N N N N N N N N N N N N N Government Services Group, Inc. B-2

23 Appendix C BALLOT SURVEY RESULTS AS TABULATED BY WALTON COUNTY

24 Government Services Group, Inc. C-1

25 Government Services Group, Inc. C-2

26 Appendix D LETTER OF SUPPORT BY COLDWELL BANKERS UNITED REALTORS

27 Government Services Group, Inc. D-1