Lake Ashton and Lake Ashton II Community Development Districts. CDD ORIENTATION CLASS December 14, 2015

Transcription

1 Lake Ashton and Lake Ashton II Community Development Districts CDD ORIENTATION CLASS December 14, 2015

2 Background n CDDs Created n Lake Ashton (Established 08/01/2000) n Lake Ashton II (Established 03/04/2005) 2

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4 What is a CDD? n Special Purpose District created under Chapter 190, Florida Statutes n CDDs have limited powers which are defined in Chapter 190. n Subject to Government in the Sunshine and Ethics Laws n Subject to public records laws 4

5 What is a CDD? (cont.) n Must adopt annual budgets in accordance with Florida Statutes and the Truth in Millage Act. n Required to have an annual independent audit n Disclosure requirements n Chapter 190 requires that the following language be inserted in the sales contract in bold conspicuous type immediately preceding the signature: "THE (Name of District) COMMUNITY DEVELOPMENT DISTRICT MAY IMPOSE AND LEVY TAXES OR ASSESSMENTS, OR BOTH TAXES AND ASSESSMENTS, ON THIS PROPERTY. THESE TAXES AND ASSESSMENTS PAY THE CONSTRUCTION, OPERATION, AND MAINTENANCE COSTS OF CERTAIN PUBLIC FACILITIES AND SERVICES OF THE DISTRICT AND ARE SET ANNUALLY BY THE GOVERNING BOARD OF THE DISTRICT. THESE TAXES AND ASSESSMENTS ARE IN ADDITION TO COUNTY AND OTHER LOCAL GOVERNMENTAL TAXES AND ASSESSMENTS AND ALL OTHER TAXES AND ASSESSMENTS PROVIDED FOR BY LAW." 5

6 What is a CDD? (cont.) Under Chapter 190 (Florida Statute), CDDs have the power to:... finance, fund, plan, establish, acquire, construct or reconstruct, enlarge, or extend, equip, operate, and maintain systems, facilities and basic infrastructures for the following, n Public Roads n In-Tract & Major Arterial n Street Lights n Traffic Signals n Water and Sewer Facilities n Stormwater Management n Landscaping n Wetlands Mitigation n Remediation/Environ. Cleanup n Amenities n Parks n Recreation Centers n Golf Courses n Tennis Courts n Offsite Improvements n Purchase of Land For Public Improvements n Professional Fees n Public Facilities n School Buildings n Transit Shelters n Parking Structures n Fire Stations n Conservation / Mitigation Areas n Security n Waste collection and disposal n Government Mandated Projects 6

7 What is a CDD? (cont.) They Can Finance, Construct, Acquire and Maintain Eligible Infrastructure Costs Issue Tax-Exempt Bonds Levy, Collect and Enforce Special Assessments for Debt Service and for Ongoing Maintenance of Facilities Place an Assessment Lien on the Property in the District to Secure the Bonds Contract for Professional Services They Cannot Regulate Land Use Change Zoning Keep Public off District Owned (Public) Property Finance Private Roads or Improvements Finance Dedicated Improvements Issue Building Permits Issue/Amend Development Orders Provide Police and Fire Services 7

8 How are CDDs established? n A petition is filed with the City, County or State n Petition includes: n metes & bounds description n written consent by all landowners n designations of persons to be Board of Supervisors n proposed name of the district n map of proposed district n a statement of estimated regulatory costs n filing fee n mandatory public hearing 8

9 How are CDDs governed? n Five (5) member board of supervisors n Initially elected by landowners n One vote per acre or part thereof n Planned transition to qualified elector n When a CDD reaches year 6 and has at least 250 registered voters 2 seats transition to residents through general election. 2 years later, 2 additional seats transition and in 2 more years the last seat transitions. 9

10 CDDs and Sunshine Laws n Meetings of Boards Open to Public n All Voting Must Occur in Sunshine n Reasonable Notice of Meetings n Minutes Must be Taken n District Records are Public 10

11 How are CDDs Financed? n What are assessments? n Based on benefit to the property not value n Two statutory requirements for assessments: n Assessed properties must receive a special benefit from the improvements n Assessments must be allocated fairly and reasonably n Types of assessments: n Fixed capital component to pay debt service. n Can Be Pre-Paid At Any Time During Term of the Bond n Variable component to pay for operating and maintenance 11

12 How are CDDs Financed? (cont.) n How are assessment rates established? n Typically, the bond debt is allocated based on the number of assessable acres within the CDD. Then, when the property is platted it is converted to a per lot basis. n The O&M assessment is allocated on the same basis. 12

13 Why a CDD? n Tool for continuity in the community n Provides reliance and perpetuity n Tax exempt financing and purchasing n Sole purpose is to provide services n Governmental checks and balances n Bidding requirements n Audit Requirement n Etc. 13

14 CDDs versus HOAs n CDDs n Provide public infrastructure and services n Construct, acquire and maintain assets n Better Collection and Enforcement n Sovereign Immunity n HOAs n Serve individual communities with private or limited use facilities and amenities n Provides for enforcement of CC&Rs and ARC 14

15 Lake Ashton n Created on August 01, 2000 by Polk County Ordinance n Consists of approximately 772 acres and 986 units n General Fund Budget of $1,778,079 (FY 16) n O&M Assessment of $1, per lot (FY 16) n Annual Debt Service Assessment of $ $1, per home 15

16 Lake Ashton 2015 Bonds Master Construc-on Costs $19,079,518 Subdivision Improvements Phase 1, 2, & 4 $5,650,010 Phase 3 $2,182,200 Phase 5 and 6 $3,740,491 Grand Total $30,652,219 16

17 Lake Ashton - Series 2015A-1 n 17 year fixed term n Interest rate of 5.0% Bonds n Par Debt Amount of $4.985 million Lake Ashton - Series 2015A-2 n 22 year fixed term n Interest rate of 5.0% Bonds n Par Debt Amount of $.680 million 17

18 Lake Aston II n Created on March 4, 2005 by Polk County Ordinance No n Consists of approximately 516 acres and 718 units n General Fund Budget of $1,465,376 (FY 16) n O&M Assessment of $1,885 per lot (FY 16) n Annual Debt Service Assessment of $1,

19 Lake Ashton II 2005 and 2006 Bonds Master Construc-on Costs $20,119,218 Subdivision Improvements Phase 1 $7,741,603 Phase 2 $9,252,000 Grand Total $37,112,821 19

20 Lake Ashton II - Series 2005 Bonds n 30 year fixed term n Interest rate of 5.375% n Par Debt Amount of $5.530 million n $5.530 M A Bonds Lake Ashton II - Series 2006 Bonds n 30 year fixed term n Interest rate of 5.30% n Par Debt Amount of $ million $4.955 M - A Bonds $ M B Bonds 20

21 QUESTIONS?? 21