Agenda Page 1

LIVE OAK NO. 2

COMMUNITY DEVELOPMENT DISTRICT

JULY 24, 2018

AGENDA PACKAGE

Agenda Page 2

Live Oak No. 2 Community Development District

Inframark, Infrastructure Management Services
210 North University Drive Suite 702, Coral Springs, Florida 33071 Phone: 954-603-0033 Fax: 954-345-1292

July 17, 2018

Board of Supervisors

Live Oak No. 2 Community
Development District

Dear Board Members:

The meeting of the Board of Supervisors of the Live Oak No. 2 Community Development District will be held Wednesday, July 24, 2018 at 6:30 p.m. at the Live Oak Clubhouse, 9401 Oak Preserve Boulevard, Tampa, Florida. Following is the advanced agenda for the meeting:

1.	Call to Order and Roll Call
2.	Public Comment on Agenda Items
3.	Consent Agenda
A.	Approval of Minutes of the May 23, 2018 Meeting
B.	Financial Report
C.	Approval of the FY 2017 Audit Report
D.	Proposed Meeting Dates for FY 2019

4.	Public Hearing to Consider Adoption of the budget for Fiscal Year 2019
A.	Consideration of Resolution 2018-03 Adopting the FY 2019 Budget

B.	Consideration of Resolution 2018-04 Levy of Non-Ad Valorem Assessments

5.	Staff Reports
A.	Manager
B.	Attorney
C.	Engineer

6.	Supervisors’ Requests
7.	Audience Comments
8.	Adjournment

Any additional supporting material for the items listed above is enclosed or will be distributed at the meeting. The balance of the agenda is routine in nature. If you have any questions, please contact me.

Sincerely,

Andrew P. Mendenhall, PMP

Manager

Agenda Page 3

Third Order of Business

Agenda Page 4

3A.

Agenda Page 5

MINUTES OF MEETING
LIVE OAK NO. 2
COMMUNITY DEVELOPMENT DISTRICT

A meeting of the Board of Supervisors of the Live Oak No. 2 Community Development

District was held on Wednesday, May 23, 2018 at 6:30 p.m. in the Live Oak Clubhouse, 9401 Oak

Preserve Boulevard, Tampa, Florida.

Present and constituting a quorum were:

Elizabeth Hubbard	Chairperson
Richard Thatcher	Vice Chairman
Kathleen Thatcher	Assistant Secretary
Ronald Dell	Assistant Secretary
David A. Steele	Assistant Secretary

Also present:

Andrew P. Mendenhall	District Manager
Vinney Galiano	District Engineer
One resident

The following is a summary of the minutes and actions taken.

FIRST ORDER OF BUSINESS	Call to Order and Roll Call
Mr. Mendenhall called the meeting to order and all Board Members were present.

SECOND ORDER OF BUSINESS	Public Comment on Agenda Items
None.

THIRD ORDER OF BUSINESS	Consent Agenda

A.	Approval of Minutes of the January 16, 2018 Meeting

B.	Financial Report Dated April 30, 2018

C.	Report on the Number of Registered Voters (1,466)

	ON MOTION by Ms. Hubbard seconded by Mr. Thatcher with all in favor the Consent Agenda was approved as presented. 5-0

Unapproved

Agenda Page 6

May 23, 2018	Live Oak No. 2 CDD

FOURTH ORDER OF BUSINESS	Staff Reports
A.	Manager
i.	Consideration of Resolution 2018-01 Confirming the District’s Use of the
	Hillsborough County Supervisor of Elections to Continue Conducting the

District’s Election of Supervisors in Conjunction with the General Election Mr. Mendenhall provided a brief explanation of the process.

ON MOTION by Mr. Thatcher seconded by Mr. Dell with all in favor Resolution 2018-01 Confirming the District’s Use of the Hillsborough County Supervisor of Elections to Continue Conducting the District’s Election of Supervisors in Conjunction with the General Election was adopted. 5-0

ii.	Consideration of Resolution 2018-02 Approving the Proposed Budget for Fiscal
Year 2019 and Setting a Public Hearing
Mr. Mendenhall reported there was no increase in assessments.

ON MOTION by Ms. Thatcher seconded by Ms. Hubbard with all in favor Resolution 2018-02 Approving the Proposed Budget for Fiscal Year 2019 and Setting a Public Hearing for September 18, 2018 at 6:30 p.m. was adopted. 5-0

B.	Attorney None.

C.	Engineer

Mr. Galiano reported on the following:
•	SWFWMD O&M inspection is scheduled for this week.

•	Removal of the pine tree in the Live Oak Conservation Area requires a permit.

•	Monitoring wells will be ongoing for six months.

•	No Fishing signs were requested in Driftwood while the monitoring well is in progress.

•	The Board recommended temporary construction fencing instead.

	A.Manager (Continued)

unapproved

Agenda Page 7

May 23, 2018	Live Oak No. 2 CDD

Mr. Mendenhall recommended rescheduling the September 18, 2018 to September 11, 2018 at 6:30 p.m. in the same location.

Ms. Thatcher MOVED to amend Resolution 2018-02, Setting the Public Hearing on September 11, 2018 at 6:30 p.m., and Ms. Hubbard Seconded the motion.

Further discussion ensued regarding the schedule of meetings.

ON MOTION by Ms. Thatcher seconded by Ms. Hubbard with all in favor Amend Resolution 2018-02, Setting the Public Hearing on July 24, 2018 at 6:30 p.m. was approved. 5-0

FIFTH ORDER OF BUSINESS	Supervisors’ Requests
None.

SIXTH ORDER OF BUSINESS	Audience Comments
None.

SEVENTH ORDER OF BUSINESS	Adjournment

On MOTION by Ms. Dell seconded by Mr. Steele with all in favor the meeting was adjourned. 5-0

Elizabeth Hubbard
Chairperson

unapproved

Agenda Page 8

3B.

Agenda Page 9

LIVE OAK NO. 2

Community Development District

Financial Report

June 30, 2018

Prepared by:

				Agenda Page 10	
	LIVE OAK NO. 2			
	Community Development District			
					
			Table of Contents	
	FINANCIAL STATEMENTS			
	Balance Sheet		…………………………………………………. Page 1	
	Statement of Revenues, Expenditures and Changes in Fund Balances	
	General Fund	…………………………………………………. Page 2 - 3	
	Debt Service Fund	…………………………………………………. Page 4	
	SUPPORTING SCHEDULES				
	Non-Ad Valorem Special Assessments	…………………………………………………. Page 5	
	Cash & Investment Report	…………………………………………………. Page 6	
	SunTrust Bank Reconciliation	…………………………………………………. Page 7	
	Check Register	…………………………………………………. Page 8 - 9	

Agenda Page 11

LIVE OAK NO. 2

Community Development District

Financial Statements

(Unaudited)

June 30, 2018

LIVE OAK NO. 2										Agenda Page 12		
									Governmental Funds		
Community Development District											
												
				Balance Sheet									
				June 30, 2018									
									SERIES 2016						
						GENERAL			DEBT						
									SERVICE			TOTAL		
		ACCOUNT DESCRIPTION			FUND			FUND					
	ASSETS												
																
	Cash - Checking Account	$	34,820	$	-	$	34,820			
	Due From Other Funds			-			10,549			10,549			
	Investments:												
	Certificates of Deposit - 12 Months			101,025			-			101,025			
	Money Market Account			337,798			-			337,798			
	Reserve Fund			-			275,999			275,999			
	Revenue Fund			-			164,777			164,777			
											
	TOTAL ASSETS	$	473,643	$	451,325	$	924,968			
																
	LIABILITIES												
															
	Accounts Payable	$	529	$	-	$	529			
	Due To Other Funds			10,549			-			10,549			
													
	TOTAL LIABILITIES			11,078			-			11,078			
	FUND BALANCES												
	Restricted for:													
	Debt Service			-			451,325			451,325			
	Assigned to:												
	Operating Reserves			52,831			-			52,831			
	Reserves - Ponds			170,751			-			170,751			
	Unassigned:			238,983			-			238,983			
											
	TOTAL FUND BALANCES	$	462,565	$	451,325	$	913,890			
											
	TOTAL LIABILITIES & FUND BALANCES	$	473,643	$	451,325	$	924,968			

Page 1

LIVE OAK NO. 2													Agenda Page 13		
													General Fund		
Community Development District															
																
				Statement of Revenues, Expenditures and Changes in Fund Balances					
							For the Period Ending June 30, 2018									
										ANNUAL					YTD ACTUAL					
			ACCOUNT DESCRIPTION				ADOPTED		YEAR TO DATE		ASA%OF		JUN-18		
							BUDGET			ACTUAL		ADOPTED BUD		ACTUAL		
		REVENUES																
																						
			Interest - Investments	$	-	$	2,511	0.00%			$	276			
			Interest - Tax Collector				-			545	0.00%				426			
			Special Assmnts- Tax Collector				256,049			256,049	100.00%				4,241			
			Special Assmnts- Discounts				(10,242)			(9,761)	95.30%				-			
																	
		TOTAL REVENUES				245,807			249,344	101.44%				4,943			
		EXPENDITURES																	
			Administration																	
			P/R-Board of Supervisors				8,000			2,400	30.00%				-			
			FICA Taxes				612			184	30.07%				-			
			ProfServ-Arbitrage Rebate				600			-	0.00%				-			
			ProfServ-Dissemination Agent				1,000			1,000	100.00%				-			
			ProfServ-Engineering				15,000			8,050	53.67%				(233)			
			ProfServ-Legal Services				3,000			1,641	54.70%				529			
			ProfServ-Mgmt Consulting Serv				38,850			29,138	75.00%				3,238			
			ProfServ-Special Assessment				12,500			12,500	100.00%				-			
			ProfServ-Trustee Fees				3,717			3,971	106.83%				-			
			Auditing Services				3,500			3,500	100.00%				3,500			
			Postage and Freight				1,000			94	9.40%				28			
			Insurance - General Liability				9,141			8,310	90.91%				-			
			Printing and Binding				500			109	21.80%				14			
			Legal Advertising				900			1,113	123.67%				-			
			Misc-Bank Charges				600			183	30.50%				35			
			Misc-Assessmnt Collection Cost				5,121			4,928	96.23%				87			
			Misc-Web Hosting				775			-	0.00%				-			
			Office Supplies				100			-	0.00%				-			
			Annual District Filing Fee				175			175		100.00%				-			
			Total Administration				105,091			77,296		73.55%				7,198			

Page 2

LIVE OAK NO. 2												Agenda Page 14		
												General Fund		
Community Development District														
															
			Statement of Revenues, Expenditures and Changes in Fund Balances					
			For the Period Ending June 30, 2018									
						ANNUAL					YTD ACTUAL					
			ACCOUNT DESCRIPTION			ADOPTED		YEAR TO DATE		ASA%OF		JUN-18		
						BUDGET			ACTUAL		ADOPTED BUD		ACTUAL		
		Field																
		Contracts-Envirom'l Monitoring			3,200			3,200	100.00%				-			
		Contracts-Landscape			44,238			33,179	75.00%				3,687			
		Contracts-Lakes			16,596			12,447	75.00%				1,383			
		R&M-Fence			7,500			225	3.00%				-			
		R&M-Lake			5,000			13,244	264.88%				-			
		R&M-Wetland Monitoring			8,000			7,350	91.88%				-			
		Misc-Contingency			25,000			9,739	38.96%				950			
		Reserve - Ponds			31,182			-		0.00%				-			
		Total Field			140,716			79,384		56.41%				6,020			
															
	TOTAL EXPENDITURES			245,807			156,680	63.74%				13,218			
		Excess (deficiency) of revenues															
		Over (under) expenditures			-			92,664		0.00%				(8,275)			
	Net change in fund balance	$	-	$	92,664	0.00%			$	(8,275)			
	FUND BALANCE, BEGINNING (OCT 1, 2017)			369,901			369,901									
	FUND BALANCE, ENDING	$	369,901	$	462,565									

Page 3

LIVE OAK NO. 2												Agenda Page 15		
								Series 2016 Debt Service Fund		
Community Development District										
															
					Statement of Revenues, Expenditures and Changes in Fund Balances					
							For the Period Ending June 30, 2018									
											ANNUAL					YTD ACTUAL					
			ACCOUNT DESCRIPTION			ADOPTED		YEAR TO DATE		ASA%OF		JUN-18		
						BUDGET			ACTUAL		ADOPTED BUD		ACTUAL		
		REVENUES															
																							
			Interest - Investments	$	-	$	769	0.00%			$	93			
			Special Assmnts- Tax Collector			600,454			600,455	100.00%				9,945			
			Special Assmnts- Discounts			(24,018)			(22,891)	95.31%				-			
																
		TOTAL REVENUES			576,436			578,333	100.33%				10,038			
		EXPENDITURES																
			Administration																
			Misc-Assessmnt Collection Cost			12,009			11,557		96.24%				205			
			Total Administration			12,009			11,557	96.24%				205			
			Debt Service															
																				
			Principal Debt Retirement			315,000			315,000	100.00%				(5,000)			
			Principal Prepayments			-			5,000	0.00%				5,000			
			Interest Expense			238,324			238,324		100.00%				-			
			Total Debt Service			553,324			558,324		100.90%				-			
																
		TOTAL EXPENDITURES			565,333			569,881	100.80%				205			
			Excess (deficiency) of revenues															
			Over (under) expenditures			11,103			8,452	76.12%				9,833			
		OTHER FINANCING SOURCES (USES)																
			Contribution to (Use of) Fund Balance			11,103			-	0.00%				-			
																
		TOTAL FINANCING SOURCES (USES)			11,103			-	0.00%				-			
		Net change in fund balance	$	11,103	$	8,452	76.12%			$	9,833			
		FUND BALANCE, BEGINNING (OCT 1, 2017)			442,873			442,873									
		FUND BALANCE, ENDING	$	453,976	$	451,325									

Page 4

Agenda Page 16

LIVE OAK NO. 2

Community Development District

Supporting Schedules

June 30, 2018

LIVE OAK NO. 2

Community Development District

Agenda Page 17

Non-Ad Valorem Special Assessments (Hillsborough County Tax Collector - Monthly Collection Distributions) For the Fiscal Year Ending September 30, 2018

												ALLOCATION BY FUND	
				Discount /						Gross					
Date		Net Amount		(Penalties)		Tax Coll	Prop Appr		Amount		General	Debt Service	
Received		Rcv'd		Amount		Cost		Cost		Received		Fund		Fund**	
Assessments Levied FY '18								$856,502		$256,048		$600,454	
Allocation %										100%		30%		70%	
11/07/17	$	7,749	$	400	$	158	$	-	$	8,307	$	2,483	$	5,824	
11/16/17		41,807		1,777		853		-		44,438		13,285		31,153	
11/24/17		154,611		6,574		3,155		-		164,340		49,129		115,211	
12/11/17		494,009		21,003		10,082		-		525,094		156,975		368,119	
12/15/17		42,293		1,474		863		-		44,631		13,342		31,288	
01/10/18		21,970		1,082		448		-		23,500		7,025		16,475	
02/08/18		11,936		285		244		-		12,464		3,726		8,738	
03/06/18		5,625		58		115		-		5,797		1,733		4,064	
04/06/18		12,319		-		251		-		12,570		3,758		8,812	
05/08/18		1,153		-		24		-		1,176		352		825	
06/08/18		4,071		-		-		86		4,157		1,243		2,914	
06/15/18		9,823		-		-		207		10,029		2,998		7,031	
															
TOTAL	$	807,366	$	32,653	$	16,193	$	292	$	856,504	$	256,049	$	600,455	
															
% COLLECTED										100%		100%		100%	
															
TOTAL O/S									$	(2)	$	(1)	$	(1)	

Page 5

Agenda Page 18

LIVE OAK NO. 2	All Funds

Community Development District

Cash and Investment Report

June 30, 2018

General Fund

Account Name		Bank Name		Investment Type		Maturity		Yield		Balance		
																			
Checking Account-Operating		SunTrust	Public Funds Analyzed Cking		n/a	0.00%	$34,820	(1)		
Certificate of Deposit	Florida Community Bank	12 MO CD - #2700	01/17/19	0.45%	101,025				
MMA-0186		BankUnited	Money Market Account		n/a	0.78%	337,798				
											Total-GF					
												$473,643				

Debt Service Funds

Account Name	Bank Name		Investment Type		Maturity		Yield				Balance		
																		
Series 2016	Reserve Fund	US Bank	US Bank Open Ended CP	03/01/19	0.00%			275,999		
Series 2016	Revenue Fund	US Bank	US Bank Open Ended CP	03/01/19	0.00%	(2)	164,777		
													
										Total-DS		$441,481		
																
											Total			$915,125		

Note (1) - Transferring $10K to the debt service in July.

Page 6

Live Oak No. 2 CDD	Agenda Page 19		
			
Bank Reconciliation				
Bank Account No.	9534	SunTrust Bank N.A. - GF		
Statement No.	06-18			
Statement Date	6/30/2018			

G/L Balance (LCY)	34,819.50	Statement Balance	39,519.61					
	G/L Balance	34,819.50	Outstanding Deposits	0.00					
Positive Adjustments	0.00							
		Subtotal	39,519.61					

	Subtotal	34,819.50	Outstanding Checks	4,700.11					
Negative Adjustments	0.00	Differences	0.00					
										
Ending G/L Balance	34,819.50	Ending Balance	34,819.50					
	Difference	0.00							
Posting	Document	Document				Cleared			
Date	Type	No.	Description	Amount	Amount	Difference		
Outstanding Checks									
4/6/2018	Payment	003651	CREATIVE MAILBOX & SIGN DESIGNS	242.50	0.00	242.50		
6/25/2018	Payment	003682	INFRAMARK, LLC	650.00	0.00	650.00		
6/26/2018	Payment	003683	INFRAMARK, LLC	3,257.61	0.00	3,257.61		
6/27/2018	Payment	003684	DRIGGERS ENGINEERING SERVICE	250.00	0.00	250.00		
6/29/2018	Payment	003685	LANDSCAPE MAINTENANCE	300.00	0.00	300.00		
Total Outstanding Checks......................................................................................................................	4,700.11		4,700.11		

Page 7

Agenda Page 20

							LIVE OAK NO. 2					
						Community Development District					
													
							Payment Register by Fund					
							For the Period from 5/1/2018 to 6/30/2018					
							(Sorted by Check / ACH No.)					
													
	Fund	Check /	Date		Payee		Invoice No.	Payment Description	Invoice / GL Description	G/L Account #	Amount		
	No.	ACH No.									Paid		

	GENERAL FUND - 001										
001	003657	05/03/18		AMERICAN ECOSYSTEMS, INC	1805211	MAY 18 WATER MGMT SVC	Contracts-Lakes	534084-53901	$1,383.00		
001	003658	05/03/18		CREATIVE MAILBOX & SIGN DESIGNS	18000443	NO TRESPASSING SIGN INSTALL	Misc-Contingency	549900-53901	$485.00		
001	003659	05/03/18		LANDSCAPE MAINTENANCE	132819	MAY 18 MAINTENANCE	Contracts-Landscape	534050-53901	$3,686.50		
001	003661	05/09/18		US BANK	4978153	4/1/18-3/31/19 TRUSTEE SERVICE	ProfServ-Trustee Fees	531045-51301	$3,971.25		
001	003662	05/17/18		TAMPA BAY TIMES	632468	NOTICE OF MTG 5/9/18	Legal Advertising	548002-51301	$301.50		
001	003663	05/24/18		BIG DOG FENCE	181505	6X8 WHITE VINYL FENCE REPAIR	R&M-Fence	546025-53901	$225.00		
001	003664	05/24/18		FLORIDA NATIVES NURSERY, INC	15211	QUARTERLY MITIGATION MAINT	Contracts-Envirom'l Monitoring	534017-53901	$800.00		
001	003665	05/24/18		KING ENGINEERING ASSOCIATES, I	101618	ENG'G SVC THRU APRIL 2018	ProfServ-Engineering	531013-51501	$875.50		
001	003671	06/01/18		AMERICAN ECOSYSTEMS, INC	1806212	WATER MGMT SVC JUNE 2018	Contracts-Lakes	534084-53901	$1,383.00		
001	003672	06/01/18		LANDSCAPE MAINTENANCE	133739	GRNDS MAINT JUNE 2018	Contracts-Landscape	534050-53901	$3,686.50		
001	003673	06/01/18		TIMES PUBLISHING	637734	BOARD CANDIDATES NOTICE	Legal Advertising	548002-51301	$259.00		
001	003674	06/06/18		INFRAMARK, LLC	30717	5/18 MANAGEMENT FEES	ProfServ-Mgmt Consulting Serv	531027-51201	$3,237.50		
001	003674	06/06/18		INFRAMARK, LLC	30717	5/18 MANAGEMENT FEES	Postage and Freight	541006-51301	$2.82		
001	003674	06/06/18		INFRAMARK, LLC	30717	5/18 MANAGEMENT FEES	Printing and Binding	547001-51301	$3.80		
001	003675	06/08/18		STRALEY &  ROBIN	15792	GEN MATTERS THRU MAY 2018	ProfServ-Legal Services	531023-51401	$135.00		
001	003676	06/14/18		FED EX	6-203-52801	JUNE POSTAGE	Postage and Freight	541006-51301	$22.30		
001	003677	06/15/18		BERGER TOOMBS ELAM	02116508	AUDIT SVC 9/30/17	Auditing Services	532002-51301	$3,500.00		
001	003678	06/15/18		DRIGGERS ENGINEERING SERVICE		TL12184	ENG'G SVC THRU MAY 2018	ProfServ-Engineering	531013-51501	$250.00		
001	003679	06/19/18		STRALEY &  ROBIN	15685	GEN MATTERS THRU APRIL 2018	ProfServ-Legal Services	531023-51401	$90.00		
001	003680	06/21/18		KING ENGINEERING ASSOCIATES, I	101877	ENGINEER SERVICE MAY 2018	ProfServ-Engineering	531013-51501	$2,446.50		
001	003680	06/21/18		KING ENGINEERING ASSOCIATES, I		CM101877	TO CORRECT AMOUNT OF INV	ProfServ-Engineering	531013-51501	($232.50)		
001	003682	06/25/18		INFRAMARK, LLC	31366	VACTORED CATCH BASIN	Misc-Contingency	549900-53901	$650.00		
001	003683	06/26/18		INFRAMARK, LLC	31627	JUNE 18 MANAGEMENT FEES	ProfServ-Mgmt Consulting Serv	531027-51201	$3,237.50		
001	003683	06/26/18		INFRAMARK, LLC	31627	JUNE 18 MANAGEMENT FEES	Postage and Freight	541006-51301	$6.11		
001	003683	06/26/18		INFRAMARK, LLC	31627	JUNE 18 MANAGEMENT FEES	Printing and Binding	547001-51301	$14.00		
001	003684	06/27/18		DRIGGERS ENGINEERING SERVICE		TL12127	SOIL INSPECTION 4/13/18	ProfServ-Engineering	531013-51501	$250.00		
001	003685	06/29/18		LANDSCAPE MAINTENANCE	134886	TREE REMOVAL	Misc-Contingency	549900-53901	$300.00		
001	003666	05/25/18		ELIZABETH J. HUBBARD		PAYROLL	May 25, 2018 Payroll Posting			$184.70		
001	003667	05/25/18		KATHLEEN M. THATCHER		PAYROLL	May 25, 2018 Payroll Posting			$184.70		
001	003668	05/25/18		CLIFFORD R. THATCHER		PAYROLL	May 25, 2018 Payroll Posting			$183.87		
001	003669	05/25/18		RONALD L. DELL		PAYROLL	May 25, 2018 Payroll Posting			$184.70		

Page 8

Agenda Page 21

							LIVE OAK NO. 2					
						Community Development District					
													
							Payment Register by Fund					
							For the Period from 5/1/2018 to 6/30/2018					
							(Sorted by Check / ACH No.)					
													
	Fund	Check /	Date	Payee		Invoice No.	Payment Description	Invoice / GL Description	G/L Account #	Amount		
	No.	ACH No.								Paid		

001	003670	05/25/18	DAVID A. STEELE		PAYROLL	May 25, 2018 Payroll Posting			$184.70		
										Fund Total			
											$31,891.95		
									
	SERIES 2016 DEBT SERVICE FUND - 202									
202	003660	05/09/18	LIVE OAK 2 U.S. BANK, NA- CDD	040618-2016	TRFR ASSESSMENTS TO US BANK	Due From Other Funds	131000	$3,943.12		
202	003681	06/21/18	LIVE OAK 2 U.S. BANK, NA- CDD	061418-2016	TRFR FY18 ASSESSMENTS	Due From Other Funds	131000	$8,636.18		
										Fund Total			
											$12,579.30		

										Total Checks Paid	$44,471.25		

Page 9

Agenda Page 22

3C

Agenda Page 23

Live Oak No. 2

Community Development District

ANNUAL FINANCIAL REPORT

September 30, 2017

Agenda Page 24

Live Oak No. 2 Community Development District			
ANNUAL FINANCIAL REPORT			
	September 30, 2017			
	TABLE OF CONTENTS			
			Page	
			Number	
FINANCIAL SECTION			
REPORT OF INDEPENDENT AUDITORS	1-2		
MANAGEMENT’S DISCUSSION AND ANALYSIS	3-8		
BASIC FINANCIAL STATEMENTS:			
Government-wide Financial Statements			
Statement of Net Position	9		
Statement of Activities	10		
Fund Financial Statements:			
Balance Sheet – Governmental Funds	11		
Reconciliation  of  Total  Governmental  Fund  Balances  to  Net			
Position of Governmental Activities	12		
Statement  of  Revenues,  Expenditures  and  Changes  in  Fund			
Balances – Governmental Funds	13		
Reconciliation of the Statement of Revenues, Expenditures and			
Changes  in  Fund  Balances  of  Governmental Funds  to  the			
Statement of Activities	14		
Statement  of  Revenues,  Expenditures  and  Changes  in  Fund			
Balances – Budget and Actual – General Fund	15		
Notes to Financial Statements	16-28		
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER			
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS			
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN			
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS	29-30		
MANAGEMENT LETTER	31-32		
INDEPENDENT ACCOUNTANT’S REPORT / COMPLIANCE WITH			
SECTION 218.415, FLORIDA STATUTES	33		

~~ti

,OJ

Berger,	Toombs,	Elam,		
Gaines	& Frank			
Certified Public Accountants	PL			
600 Citrus Avenue				
Suite 200					
Fort Pierce, Florida 34950				
7721461-6120	II 461-1155				
FAX:  7721468-9278		REPORT OF INDEPENDENT AUDITORS		

Agenda Page 25

To the Board of Supervisors		
Live Oak No. 2 Community	Development District		
			
Hillsborough County, Florida		
Report on the Financial Statements		

We  have  audited  the  accompanying	financial  statements  of		
	year ended September 30,		
Development District	as of and for the			
financial statements,	which collectively comprise the District's		
listed in the table of contents.			

Live

2017,

basic

Oak	No.	2 Community	
and	the related notes to	
financial	statements as	

Management'sResponsibility for the Financial Statements

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

financial

States of

relevant

material

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

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

We believe that the audit evidence

basis for our audit opinion.

we

have obtained

is

sufficient and

appropriate

to

provide a

Member

AICPA

Fort Pierce I Stuart
- 1 -
Member AICPA Division For CPA Firms
Private Companies Practice Section

Member

FICPA

~~l
,,y

Berger,
Gaines

Toombs,
& Frank

Agenda Page 26

Elam,

To the Board of Supervisors

Live Oak No. 2 Community Development District

Opinion

In our opinion, the financial statements referred to above present fairly,

the respective financial position of the governmental activities and each

No. 2 Community Development District, as of September 30, 2017, and

in financial position and the budgetary comparison for the General Fund

in conformity with accounting principles generally accepted in the United

in all material respects,

major fund of Live Oak

the respective changes

for the year then ended

States of America.

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

Other Reporting

Required

by

Government Auditing Standards

In accordance with Government Auditing Standards,	we have also issued a report dated May	
24, 2018 on our consideration of the District'sinternal control over financial reporting and on our	
tests of its compliance with certain provisions of laws, regulations and contracts.  The purpose	
of that report is to describe the scope of our testing of internal control over financial reporting	
and compliance and the results of that testing, and not to provide an opinion on internal control	
over financial reporting or on compliance.  That report	is an integral part of an audit performed in	
accordance with Government Auditing Standards  in	considering Live Oak No. 2 Community	
Development District'sinternal control over financial reporting and compliance.	

]JMµ, Joor,JolY

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rl{)lrlv

J1cd/UJ

Berger, Toombs, Elam, Gaines & Frank

Certified Public Accountants PL

Fort Pierce, Florida

May 24, 2018

- 2 -

Agenda Page 27

Live Oak No. 2 Community Development District MANAGEMENT’S DISCUSSION AND ANALYSIS For the Year Ended September 30, 2017

Management’s discussion and analysis of Live Oak No. 2 Community Development District’s (the “District”) financial performance provides an objective and easily readable analysis of the District’s financial activities. The analysis provides summary financial information for the District and should be read in conjunction with the District’s financial statements.

OVERVIEW OF THE FINANCIAL STATEMENTS

The District’s basic financial statements comprise three components; 1) Government -wide financial statements, 2) Fund financial statements, and 3) Notes to financial statements. The Government -wide financial statements present an overall picture of the District’s financial position and results of operations. The Fund financial statements present financial information for the District’s major funds. The Notes to financial statements provide additional information concerning the District’s finances.

The Government-wide financial statements are the statement of net position and the statement of activities. These statements use accounting methods similar to those used by private-sector companies. Emphasis is placed on the net position of governmental activities and the change in net position. Governmental activities are primarily supported by special assessments.

The statement of net position presents information on all assets and liabilities of the District, with the difference between assets and liabilities reported as net position. Net position are reported in three categories; 1) net investment in capital assets, 2) restricted, and 3) unrestricted. Assets, liabilities, and net position are reported for all Governmental activities.

The statement of activities presents information on all revenues and expenses of the District and the change in net position. Expenses are reported by major function and program revenues relating to those functions are reported, providing the net cost of all functions provided by the District. To assist in understanding the District’s operations, expenses have been reported as governmental activities. Governmental activities financed by the District include general government and debt service.

Fund financial statements present financial information for governmental funds. These statements provide financial information for the major funds of the District. Governmental fund financial statements provide information on the current assets and liabilities of the funds, changes in current financial resources (revenues and expenditures), and current available resources.

- 3 -

Agenda Page 28

Live Oak No. 2 Community Development District MANAGEMENT’S DISCUSSION AND ANALYSIS For the Year Ended September 30, 2017

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Fund financial statements include a balance sheet and a statement of revenues, expenditures and changes in fund balances for all governmental funds. A statement of

revenues, expenditures, and changes in fund balances – budget and actual is provided for the District’s General Fund. Fund financial statements provide more detailed information about the District’s activities. Individual funds are established by the District to track revenues that are restricted to certain uses or to comply with legal requirements.

The government-wide financial statements and the fund financial statements provide different pictures of the District. The government-wide financial statements provide an overall picture of the District’s financial standing. These statements are comparable to private-sector companies and give a good understanding of the District’s overall financial health and how the District paid for the various activities, or functions, provided by the District. All assets of the District, including land and improvements and construction in progress, are reported in the statement of net position. All liabilities, including principal outstanding on bonds are included. The statement of activities includes depreciation on all long lived assets of the District, but

transactions between the different functions of the District have been eliminated in order to avoid “doubling up” the revenues and expenses. The fund financial statements provide a picture of the major funds of the District. In the case of governmental activities, outlays for long lived assets are reported as expenditures and long-term liabilities, such as general obligation

bonds, are not included in the fund financial statements. To provide a link from the fund financial statements to the government-wide financial statements, a reconciliation is provided from the fund financial statements to the government-wide financial statements.

Notes to financial statements provide additional detail concerning the financial activities and financial balances of the District. Additional information about the accounting practices of the

District, investments of the District, capital assets and long-term debt are some of the items included in the notes to financial statements.

Financial Highlights

The following are the highlights of financial activity for the year ended September 30, 2017.

♦	The District’s total assets exceeded total liabilities by $15,507,639 (net position). The District’s net investment in capital assets was $15,070,434. Restricted net position is $67,305. Unrestricted net position is $369,900.

♦	Governmental activities revenues totaled $828,877 while governmental activities expenses totaled $1,090,141.

- 4 -

Agenda Page 29

Live Oak No. 2 Community Development District MANAGEMENT’S DISCUSSION AND ANALYSIS For the Year Ended September 30, 2017

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Financial Analysis of the District

The following schedule provides a summary of the assets, liabilities and net position of the District and is presented by category for comparison purposes.

Net Position						
		Governmental	Activities	
		2017				2016	
Current assets	$	378,510			$	365,379	
Restricted assets		439,220				432,294	
Capital assets		21,895,463				22,492,275	
Total Assets		22,713,193				23,289,948	
Deferred outflows of resources		190,985				202,441	
Current liabilities		419,258				431,360	
Non-current liabilities		6,977,281				7,292,126	
Total Liabilities		7,396,539				7,723,486	
Net position - net investment in							
capital assets		15,070,434				15,354,129	
Net position - restricted		67,305				63,432	
Net position - unrestricted		369,900				351,342	
Total Net Position	$	15,507,639			$	15,768,903	

The decrease in capital assets is due to depreciation in the current year.

The decrease in deferred outflows of resources is the result of current year amortization.

The decrease in non-current liabilities is the result of principal bond payments in the current year.

The decrease in net position – net investment in capital assets is primarily due to depreciation in excess of the reduction in long-term debt.

- 5 -

Agenda Page 30

Live Oak No. 2 Community Development District MANAGEMENT’S DISCUSSION AND ANALYSIS For the Year Ended September 30, 2017

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Financial Analysis of the District (Continued)

The following schedule provides a summary of the changes in net position of the District and is presented by category for comparison purposes.

Change in Net Position			
		Governmental	Activities	
		2017				2016	
Revenues							
Charges for services	$	824,583			$	941,077	
Miscellaneous revenues		1,667				-	
Investment earnings		2,627				1,862	
Total Revenues		828,877				942,939	
Expenses							
General government		107,824				108,743	
Physical environment		720,364				678,693	
Interest on long-term debt		261,953				410,434	
Total Expenses		1,090,141				1,197,870	
Change in Net Position		(261,264)				(254,931)	
Net Position - Beginning of Year		15,768,903				16,023,834	
Net Position - End of Year	$	15,507,639			$	15,768,903	

The decrease in charges for services is primarily due to an anticipated decrease in assessment collections.

The increase in physical environment is due to an increase in pond maintenance in the current year.

The decrease in interest on long-term debt is primarily the result of a bond refunding that occurred in the prior year.

- 6 -

Agenda Page 31

Live Oak No. 2 Community Development District MANAGEMENT’S DISCUSSION AND ANALYSIS For the Year Ended September 30, 2017

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Capital Assets Activity

The following schedule provides a summary of the District’s capital assets as of September 30, 2017 and 2016.

			Governmental Activities	
Description			2017			2016	
Land and improvements	$	7,616,900	$	7,616,900	
Infrastructure			17,904,401			17,904,401	
Less: accumulated depreciation			(3,625,838)			(3,029,026)	
Total Capital Assets (Net)	$	21,895,463	$	22,492,275	

Capital asset activity consisted of depreciation of $596,812 in the current year.

General Fund Budgetary Highlights

Budgeted expenditures exceeded actual expenditures primarily because repair and maintenance and payroll expenditures were less than anticipated.

There were no amendments to the September 30, 2017 budget.

Debt Management

Governmental Activities debt includes the following:

♦	In March 2016, the District issued $7,620,000 Series 2016 Special Assessment Refunding Bonds. These bonds were issued to refund and redeem the Series 2004A and Series 2004B Special Assessment Bonds. The balance outstanding at September 30, 2017 is $7,295,000.

- 7 -

Agenda Page 32

Live Oak No. 2 Community Development District MANAGEMENT’S DISCUSSION AND ANALYSIS For the Year Ended September 30, 2017

Economic Factors and Next Year’s Budget

Live Oak No. 2 Community Development District does not expect any economic factors to have any significant effect on the financial position or results of operations of the District in fiscal year 2018.

Request for Information

The financial report is designed to provide a general overview of Live Oak No. 2 Community Development District’s finances for all those with an interest. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the Live Oak No. 2 Community Development District, Inframark Infrastructure Management Services, 210 N. University Drive, Suite 702, Coral Springs, FL 33071.

- 8 -

Agenda Page 33

Live Oak No. 2 Community Development District STATEMENT OF NET POSITION September 30, 2017

ASSETS

Current Assets

Cash and cash equivalents

Investments at fair value

Due from other governments

Total Current Assets

Non-current Assets

Restricted:

Investments, at fair value

Capital assets, not being depreciated:

Land and improvements

Capital assets, being depreciated:

Infrastructure

Less: accumulated depreciation

Total Non-current Assets

Total Assets

DEFERRED OUTFLOWS OF RESOURCES Deferred amount on refunding

Total Assets and Deferred Outflows of Resources

LIABILITIES

Current Liabilities

Accounts payable

Accrued interest

Bonds payable, current portion

Total Current Liabilities

Non-current Liabilities

Bonds payable, net

Total Liabilities

NET POSITION

Net investment in capital assets

Restricted for debt service

Unrestricted

Total Net Position

Governmental

Activities

$	273,043

100,255

5,212

378,510

439,220

7,616,900

17,904,401

(3,625,838)

22,334,683

22,713,193

190,985

22,904,178

4,956

99,302

315,000

419,258

6,977,281

7,396,539

15,070,434

67,305

369,900

$	15,507,639

See accompanying notes to financial statements. - 9 -

Agenda Page 34

Live Oak No. 2 Community Development District STATEMENT OF ACTIVITIES For the Year Ended September 30, 2017

								Net (Expense)	
								Revenues and	
						Program			Changes in	
						Revenues			Net Position	
						Charges for		Governmental	
Functions/Programs		Expenses		Services			Activities	
										
Governmental Activities									
General government	$	(107,824)		$	32,093	$	(75,731)	
Physical environment		(720,364)			214,413			(505,951)	
Interest on long-term debt		(261,953)			578,077			316,124	
Total Governmental Activities	$	(1,090,141)		$	824,583			(265,558)	
		General revenues:						
		Miscellaneous revenues			1,667	
			Investment earnings				2,627	
			Total General Revenues			4,294	
		Change in Net Position				(261,264)	
		Net Position - October 1, 2016			15,768,903	
		Net Position - September 30, 2017	$	15,507,639	

See accompanying notes to financial statements.

-10-

Agenda Page 35

Live Oak No. 2 Community Development District

BALANCE SHEET

GOVERNMENTAL FUNDS

September 30, 2017

								Total		
				Series 2016		Governmental		
		General		Debt Service			Funds		
ASSETS										
Cash and cash equivalents	$	273,043	$	-	$	273,043		
Investments, at fair value		100,255			-			100,255		
Due from other governments		1,558			3,654			5,212		
Restricted assets:										
Investments, at fair value		-			439,220			439,220		
Total Assets	$	374,856	$	442,874	$	817,730		
LIABILITIES AND FUND BALANCES										
										
Liabilities										
Accounts payable and accrued liabilities	$	4,956	$	-	$	4,956		
Fund Balances										
Restricted - debt service		-			442,874			442,874		
Assigned:										
Pond maintenance		170,751			-			170,751		
First quarter operations		52,831			-			52,831		
Unassigned		146,318			-			146,318		
Total Fund Balances		369,900			442,874			812,774		
Total Liabilities and Fund Balances	$	374,856	$	442,874	$	817,730		

See accompanying notes to financial statements.

-11-

Agenda Page 36

Live Oak No. 2 Community Development District RECONCILIATION OF TOTAL GOVERNMENTAL FUND BALANCES TO NET POSITION OF GOVERNMENTAL ACTIVITIES September 30, 2017

Total Governmental Fund Balances

Amounts reported for governmental activities in the Statement of Net Position are different because:

Capital assets not being depreciated, land and improvements, used in governmental activities are not current financial resources and therefore, are not reported at the governmental fund level.

Capital assets being depreciated, infrastructure, $17,904,401, net of accumulated depreciation, $(3,625,838), used in governmental activities are not current financial resources and therefore, are not reported at the governmental fund level.

Long-term liabilities, including bonds payable, $(7,295,000), net of bond discounts, net, $2,719, are not due and payable in the current period and therefore, are not reported at the governmental fund level.

Deferred outflows of resources are not current financial resources and therefore, are not reported at the governmental fund level.

Accrued interest expense for long-term debt is not a current financial use and therefore, is not reported at the governmental fund level.

Net Position of Governmental Activities

$	812,774

7,616,900

14,278,563

(7,292,281)

190,985

(99,302)

$	15,507,639

See accompanying notes to financial statements.

-12-

Agenda Page 37

Live Oak No. 2 Community Development District

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDS

For the Year Ended September 30, 2017

								Total	
				Series 2016		Governmental	
		General		Debt Service			Funds	
Revenues									
Special assessments	$	246,506	$	578,077	$	824,583	
Miscellaneous revenues		1,667			-			1,667	
Investment earnings		1,761			866			2,627	
Total Revenues		249,934			578,943			828,877	
Expenditures									
Current									
General government		107,824			-			107,824	
Physical environment		123,552			-			123,552	
Debt Service									
Principal		-			325,000			325,000	
Interest		-			245,548			245,548	
Other		-			7,907			7,907	
Total Expenditures		231,376			578,455			809,831	
Net change in fund balances		18,558			488			19,046	
Fund Balances - October 1, 2016		351,342			442,386			793,728	
Fund Balances - September 30, 2017	$	369,900	$	442,874	$	812,774	

See accompanying notes to financial statements.

-13-

Agenda Page 38

Live Oak No. 2 Community Development District

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

For the Year Ended September 30, 2017

Net Change in Fund Balances - Total Governmental Funds

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

Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over their estimated useful lives as depreciation. This is the amount of depreciation

in the current period.

Repayments of bond principal are expenditures in the governmental funds, but the repayments reduce long-term liabilities in the Statement of Net Position.

Deferred outflows of resources for refunding debt is recognized as a component of interest on long term debt in the Statement of Activities, but not in the governmental funds. This is the amount of interest in the current year period.

Amortization of bond discount reported in the Statement of Activities does not require the use of current financial resources and therefore, is not reported as an expenditure in governmental funds.

In the Statement of Activities, interest is accrued on outstanding bonds; whereas in governmental funds, interest expenditures are reported when due. This is the net amount between the prior year and current year accruals.

Change in Net Position of Governmental Activities

$	19,046

(596,812)

325,000

(11,456)

(155)

3,113

$	(261,264)

See accompanying notes to financial statements.

- 14-

Agenda Page 39

Live Oak No. 2 Community Development District

STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL -

GENERAL FUND

For the Year Ended September 30, 2017

										Variance With	
										Final Budget	
		Original			Final						Positive	
		Budget			Budget			Actual			(Negative)	
Revenues												
Special assessments	$	245,807	$	245,807	$	246,506	$	699	
Miscellaneous revenues		-			-			1,667			1,667	
Investment earnings		-			-			1,761			1,761	
Total Revenues		245,807			245,807			249,934			4,127	
Expenditures												
Current												
General government		104,989			104,989			107,824			(2,835)	
Physical environment		140,818			140,818			123,552			17,266	
Total Expenditures		245,807			245,807			231,376			14,431	
Net change in fund balances		-			-			18,558			18,558	
Fund Balances - October 1, 2016		338,753			338,753			351,342			12,589	
Fund Balances - September 30, 2017	$	338,753	$	338,753	$	369,900	$	31,147	

See accompanying notes to financial statements.

-15-

Agenda Page 40

Live Oak No. 2 Community Development District NOTES TO FINANCIAL STATEMENTS September 30, 2017

NOTE A – SUMMARY OF ACCOUNTING POLICIES

The financial statements of Live Oak No. 2 Community Development District (the “District”) have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The District's more significant accounting policies are described below.

1.	Reporting Entity

The District was established on April 29, 2002, in Hillsborough County, pursuant to the Uniform Community Development District Act of 1980, Chapter 190, Florida Statutes, as amended (the "Act"), and Hillsborough County under County Ordinance 02-9, as a Community Development District. The District was established for the purposes of financing and managing the acquisition, construction, maintenance and operation of the infrastructure necessary for community development within its jurisdiction. The District is authorized to issue bonds for the purpose, among others, of financing, funding, planning, establishing, acquiring, constructing or re-constructing, enlarging or extending, equipping, operating and maintaining water management, water supply, sewer and waste water management, bridges or culverts, district roads, landscaping, street lights and other basic infrastructure projects within or without the boundaries of the Live Oak No. 2 Community Development District. The District is governed by a five-member Board of Supervisors, who are elected for four year terms. The District operates within the criteria established by Chapter 190.

As required by GAAP, these financial statements present the Live Oak No. 2 Community Development District (the primary government) as a stand-alone government. The reporting entity for the District includes all functions of government in which the District’s Board exercises oversight responsibility including, but not limited to, financial interdependency, selection of governing authority, designation of management, significant ability to influence operations and accountability for fiscal matters.

Based upon the application of the above-mentioned criteria as set forth by the Governmental Accounting Standards Board, the District has identified no component units.

2.	Measurement Focus and Basis of Accounting

The basic financial statements of the District are composed of the following:

•	Government-wide financial statements

•	Fund financial statements

•	Notes to financial statements

-16-

Agenda Page 41

Live Oak No. 2 Community Development District NOTES TO FINANCIAL STATEMENTS September 30, 2017

NOTE A – SUMMARY OF ACCOUNTING POLICIES (CONTINUED)

2.	Measurement Focus and Basis of Accounting (Continued)

a.	Government-wide Financial Statements

	Government-wide financial statements report all non-fiduciary information about the reporting government as a whole. These statements include all the governmental activities of the primary government. The effect of interfund activity has been removed from these statements.

	Governmental activities are supported by special assessments and investment earnings. Program revenues include charges for services, and payments made by parties outside of the reporting government’s citizenry if that money is restricted to a particular program. Program revenues are netted with program expenses in the statement of activities to present the net cost of each program.

	Amounts paid to acquire capital assets are capitalized as assets, rather than reported as an expenditure. Proceeds of long-term debt are recorded as liabilities in the government-wide financial statements, rather than as an other financing source.

	Amounts paid to reduce long-term indebtedness of the reporting government are reported as a reduction of the related liability, rather than as an expenditure.

b.	Fund Financial Statements

	The underlying accounting system of the District is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.

	Fund financial statements for the primary government’s governmental funds are presented after the government-wide financial statements. These statements display information about major funds individually.

	Governmental Funds

	The District classifies fund balance according to Governmental Accounting Standards Board Statement 54 – Fund Balance Reporting and Governmental Fund Type Definitions. The Statement requires the fund balance for governmental funds to be reported in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent.

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Agenda Page 42

Live Oak No. 2 Community Development District NOTES TO FINANCIAL STATEMENTS September 30, 2017

NOTE A – SUMMARY OF ACCOUNTING POLICIES (CONTINUED)

2.	Measurement Focus and Basis of Accounting (Continued)

b.	Fund Financial Statements (Continued) Governmental Funds (Continued)
	The District has various policies governing the fund balance classifications.

	Nonspendable Fund Balance – This classification consists of amounts that cannot be spent because they are either not in spendable form or are legally or contractually required to be maintained intact.

	Restricted Fund Balance – This classification includes amounts that can be spent only for specific purposes stipulated by constitution, external resource providers, or through enabling legislation.

	Assigned Fund Balance – This classification consists of the Board of Supervisors’ intent to be used for specific purposes, but are neither restricted nor committed. The assigned fund balances can also be assigned by the District’s management company.

	Unassigned Fund Balance – This classification is the residual classification for the government’s general fund and includes all spendable amounts not contained in the other classifications. Unassigned fund balance is considered to be utilized first when an expenditure is incurred for purposes for which amounts in any of those unrestricted fund balance classifications could be used.

	Fund Balance Spending Hierarchy – For all governmental funds except special revenue funds, when restricted, committed, assigned, and unassigned fund balances are combined in a fund, qualified expenditures are paid first from restricted or committed fund balance, as appropriate, then assigned and finally unassigned fund balances.

	Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are considered to be available when they are collected within the current period or soon thereafter to pay liabilities of the current period. For this purpose, the District considers revenues to be available if they are collected within 60 days of the end of the current fiscal period.

	Expenditures generally are recorded when a liability is incurred, as under accrual accounting. Interest associated with the current fiscal period is considered to be an accrual item and so has been recognized as revenue of the current fiscal period.

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Agenda Page 43

Live Oak No. 2 Community Development District NOTES TO FINANCIAL STATEMENTS September 30, 2017

NOTE A – SUMMARY OF ACCOUNTING POLICIES (CONTINUED)

2.	Measurement Focus and Basis of Accounting (Continued)

b.	Fund Financial Statements (Continued) Governmental Funds (Continued)
	Under the current financial resources measurement focus, only current assets and current liabilities are generally included on the balance sheet. The reported fund balance is considered to be a measure of “available spendable resources”. Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of “available spendable resources” during a period.

	Because of their spending measurement focus, expenditure recognition for governmental fund types excludes amounts represented by non-current liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities.

	Amounts expended to acquire capital assets are recorded as expenditures in the year that resources are expended, rather than as fund assets. The proceeds of long-term debt are recorded as an other financing source rather than as a fund liability.

	Debt service expenditures are recorded only when payment is due.

3.	Basis of Presentation

a.	Governmental Major Funds

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

	Series 2016 Debt Service Fund – Accounts for debt service requirements to retire the Series 2016 Special Assessments Refunding Bonds, which were used to refund the Series 2004 Special Assessment Bonds.

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Agenda Page 44

Live Oak No. 2 Community Development District NOTES TO FINANCIAL STATEMENTS September 30, 2017

NOTE A – SUMMARY OF ACCOUNTING POLICIES (CONTINUED)

4.	Assets, Liabilities, and Net Position or Equity

a.	Non-current Governmental Assets/Liabilities

	GASB Statement 34 requires that non-current governmental assets, such as land and buildings, and non-current governmental liabilities, such as general obligation bonds, due to developer and accrued compensated absences be reported in the governmental activities column in the government-wide Statement of Net Position.

b.	Cash and Investments

	Florida Statutes require state and local governmental units to deposit monies with financial institutions classified as "Qualified Public Depositories," a multiple financial institution pool whereby groups of securities pledged by the various financial institutions provide common collateral from their deposits of public funds. This pool is provided as additional insurance to the federal depository insurance and allows for additional assessments against the member institutions, providing full insurance for public deposits.

	The District is authorized to invest in those financial instruments as established by Section 218.415, Florida Statutes. The authorized investments consist of:

1.	Direct obligations of the United States Treasury;

2.	The Local Government Surplus Funds Trust or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperative Act of 1969;

3.	Interest-bearing time deposits or savings accounts in authorized qualified public depositories; and

4.	Securities and Exchange Commission, registered money market funds with the highest credit quality rating from a nationally recognized rating agency.

Cash equivalents include certificates of deposit and all highly liquid debt instruments with original maturities of three months or less and held in a qualified public depository as defined by Florida Statute 280.02.

c.	Restricted Assets

	Certain assets of the District and a corresponding liability or portion of net position is classified as restricted on the statement of net position because their use is limited either by law through constitutional provisions or enabling legislation; or by restrictions imposed externally by creditors. In a fund with both restricted and unrestricted assets, qualified expenses are considered to be paid first from restricted net position and then from unrestricted net position.

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Agenda Page 45

Live Oak No. 2 Community Development District NOTES TO FINANCIAL STATEMENTS September 30, 2017

NOTE A – SUMMARY OF ACCOUNTING POLICIES (CONTINUED)

4.	Assets, Liabilities, and Net Position or Equity (Continued) d. Capital Assets

Capital assets, which include land and infrastructure, are reported in the applicable governmental activities column.

The District defines capital assets as assets with an initial, individual cost of $5,000 or more and an estimated useful life in excess of one year. The valuation basis for all assets is historical cost.

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend its useful life are not capitalized.

Major outlays for capital assets and improvements are capitalized as projects are constructed.

Depreciation of capital assets is computed and recorded by utilizing the straight-line method. The estimated useful life of depreciable capital assets, infrastructure, is 30 years.

e.	Deferred Outflows of Resources

	Deferred outflows of resources represent a consumption of net position/fund balance that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The District only has one item that qualifies for reporting in this category. It is the deferred amount on refunding reported on the Statement of Net Position. A deferred amount on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt.

f.	Budgets

Budgets are prepared and adopted after public hearings for the governmental funds, pursuant to Chapter 190, Florida Statutes. The District utilizes the same basis of accounting for budgets as it does for revenues and expenditures in its various funds. The legal level of budgetary control is at the fund level. All budgeted appropriations lapse at year end. Formal budgets are adopted for the general and debt service funds. As a result, deficits in the budget columns of the accompanying financial statements may occur.

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Agenda Page 46

Live Oak No. 2 Community Development District NOTES TO FINANCIAL STATEMENTS September 30, 2017

NOTE	B – RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS

1.	Explanation of Differences Between the Governmental Fund Balance Sheet and the Government-wide Statement of Net Position

	“Total fund balances” of the District’s governmental funds, $812,774, differs from “net position” of governmental activities, $15,507,639, reported in the Statement of Net Position. This difference primarily results from the long-term economic focus of the Statement of Net Position versus the current financial resources focus of the governmental fund balance sheet. The effect of the difference is illustrated as follows.

	Capital related items

	When capital assets (not being depreciated that are to be used in governmental activities) are purchased or constructed, the cost of those assets is reported as expenditures in governmental funds. However, the Statement of Net Position included those capital assets among the assets of the District as a whole.

Land and improvements	$	7,616,900	
Infrastructure			17,904,401	
Less: accumulated depreciation			(3,625,838)	
Total	$	21,895,463	

Long-term debt transactions

Long-term liabilities applicable to the District’s governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities. All liabilities (both current and long-term) are reported in the Statement of Net Position. Balances at September 30, 2017 were:

Bonds payable	$	(7,295,000)	
Bond discount, net		2,719		
Total	$	(7,292,281)	

Deferred outflows of resources

Deferred outflows of resources applicable to the District’s governmental activities are not financial resources, and therefore, are not recognized at the governmental fund level.

Deferred amount on refunding, net	$	190,985

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Agenda Page 47

Live Oak No. 2 Community Development District NOTES TO FINANCIAL STATEMENTS September 30, 2017

NOTE	B – RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS (CONTINUED)

1.	Explanation of Differences Between the Governmental Fund Balance Sheet and the Government-wide Statement of Net Position (Continued)

	Accrued interest

	Accrued liabilities in the Statement of Net Position differ from the amount reported in governmental funds due to the accrued interest on bonds.

Accrued interest	$	(99,302)

2.	Explanation of Differences Between the Governmental Fund Operating Statements and the Statement of Activities

	The “net change in fund balances” for government funds, $19,046, differs from the “change in net position” for governmental activities, $(261,264), reported in the Statement of Activities. The difference arises primarily from the long-term economic focus of the Statement of Activities versus the current financial resources focus of the governmental funds. The effect of the difference is illustrated below.

	Capital related items

	When capital assets that are to be used in governmental activities are purchased or constructed, the resources expended for those assets are reported as expenditures in governmental funds. However, in the Statement of Activities, the costs of those assets is allocated over their estimated useful lives and reported as depreciation. As a result, fund balances decrease by the amount of financial resources expended, whereas net position decrease by the amount of depreciation charged for the period.

Depreciation	$	(596,812)

Long-term debt transactions

Repayments of bond principal are reported as expenditures in the governmental funds and, thus, have the effect of reducing fund balance because current financial resources have been used.

Debt principal payments	$	325,000		
Amortization of bond discount		(155)	
Total	$	324,845		

-23-

Agenda Page 48

Live Oak No. 2 Community Development District NOTES TO FINANCIAL STATEMENTS September 30, 2017

NOTE	B – RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS (CONTINUED)

2.	Explanation of Differences Between the Governmental Fund Operating Statements and the Statement of Activities (Continued)

	Long-term debt transactions (Continued)

	Some expenses reported in the Statement of Activities do not require the use of current financial resources, therefore, are not reported as expenditures in governmental funds.

Net change in accrued interest payable	$	3,113	
Decrease in deferred amount on refunding		(11,456)	
Total	$	(8,343)	

NOTE C – CASH AND INVESTMENTS

All deposits are held in qualified public depositories and are included on the accompanying balance sheet as cash and investments.

Custodial Credit Risk – Deposits

Custodial credit risk is the risk that in the event of a bank failure, the District's deposits may not be returned to it. The District does not have a formal deposit policy for custodial credit risk; however, they follow the provisions of Chapter 280, Florida Statutes regarding deposits and investments. As of September 30, 2017, the District's bank balance was $277,098 and the carrying value was $273,043. Exposure to custodial credit risk was as follows. The District maintains all deposits in a qualified public depository in accordance with the provisions of Chapter 280, Florida Statutes, which means that all deposits are fully insured by Federal Depositors Insurance or collateralized under Chapter 280, Florida Statutes.

-24-

Agenda Page 49

Live Oak No. 2 Community Development District NOTES TO FINANCIAL STATEMENTS September 30, 2017

NOTE C – CASH AND INVESTMENTS (CONTINUED)

As of September 30, 2017, the District had the following investments and maturities:

Investment		Maturities			Fair Value	
Commercial Paper		N/A	$	439,220	
Certificate of Depsit		N/A			100,255	
Total				$	539,475	

The District categorizes its fair value measurements within the fair value hierarchy recently established by generally accepted accounting principles. The fair value is the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. The District uses a market approach in measuring fair value that uses prices and other relevant information generated by market transactions involving identical or similar assets, liabilities, or groups of assets and liabilities.

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

Based on the criteria in the preceding paragraph, the investments in Commercial Paper are Level 1 assets.

Interest Rate Risk

The District does not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates.

Credit Risk

The District's investments in treasury funds, commercial paper, and government loans are limited by state statutory requirements and bond compliance. The District has no investment policy that would further limit its investment choices. As of September 30, 2017, the District's investments in Commercial Paper were rated A-1+ by Standard & Poor's.

Concentration of Credit Risk

The District places no limit on the amount it may invest in any one fund. The investments in Commercial Paper are 81% and the certificate of deposit is 19% of the District’s total investments.

The types of deposits and investments and their level of risk exposure as of September 30, 2017 were typical of these items during the fiscal year ended. The District considers any decline in fair value for certain investments to be temporary.

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Agenda Page 50

Live Oak No. 2 Community Development District NOTES TO FINANCIAL STATEMENTS September 30, 2017

NOTE D – SPECIAL ASSESSMENT REVENUES

Special assessment revenues recognized for the 2016-2017 fiscal year were levied in October 2016. All taxes are due and payable on November 1 or as soon as the assessment roll is certified and delivered to the Tax Collector. Per Section 197.162, Florida Statutes, discounts are allowed for early payment at the rate of 4% in November, 3% in December, 2% in January, and 1% in February. Taxes paid in March are without discount.

All unpaid taxes become delinquent as of April 1. Virtually all unpaid taxes are collected via the sale of tax certificates on or prior to, June 1; therefore, there were no material taxes receivable at fiscal year end.

NOTE E – CAPITAL ASSETS

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

			October 1,								September 30,	
			2016									2017	
			Balance			Additions			Deletions			Balance	
Governmental Activities:													
Capital assets, not being depreciated:												
Land and improvements	$	7,616,900	$	-	$	-	$	7,616,900	
Capital assets, being depreciated:												
Infrastructure		17,904,401			-			-			17,904,401	
Less accumulated depreciation for:												
Infrastructure		(3,029,026)			(596,812)			-			(3,625,838)	
Total Capital Assets Depreciated, Net		14,875,375			(596,812)			-			14,278,563	
Governmental Activities Capital Assets	$	22,492,275	$	(596,812)	$	-	$	21,895,463	

Depreciation in the amount of $596,812 was charged to physical environment.

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Agenda Page 51

Live Oak No. 2 Community Development District NOTES TO FINANCIAL STATEMENTS September 30, 2017

NOTE F – LONG-TERM DEBT

The following is a summary of activity in the long-term debt of the District for the year ended
September 30, 2017:

				Balance									Balance	
				October 1,									September 30,	
				2016		Additions			Deletions			2017	
Special Assessment Refunding													
Bonds, Series 2016		7,620,000		-			325,000			7,295,000	
													
Long-term debt is comprised of the following:												
Special Assessment Refunding Bonds												
$7,620,000 Series 2016 Special Assessment Refunding Bonds								
due  in  annual  principal  installments  beginning  May  2017.								
Interest at various rates between 2.25% and 4% is due May and								
November beginning May 2016. Current portion is $325,000.	$	7,295,000			
Bond discount, net								(2,719)			
Bonds Payable, Net					$	7,292,281			

The annual requirements to amortize the principal and interest of bonded debt outstanding as of
September 30, 2017 are as follows:

Year Ending											
September 30,				Principal			Interest			Total	
2018	$	315,000	$	238,324	$	553,324	
2019				320,000			231,236			551,236	
2020				330,000			224,036			554,036	
2021				335,000			216,611			551,611	
2022				345,000			209,911			554,911	
2023-2027				1,875,000			908,366			2,783,366	
2028-2032				2,220,000			571,095			2,791,095	
2033-2035				1,555,000			126,201			1,681,201	
Totals	$	7,295,000	$	2,725,780	$	10,020,780	

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Agenda Page 52

Live Oak No. 2 Community Development District NOTES TO FINANCIAL STATEMENTS September 30, 2017

NOTE F – LONG-TERM DEBT (CONTINUED)

Summary of Significant Bonds Resolution Terms and Covenants

Special Assessment Refunding Bonds, Series 2016

Depository Funds – The bond resolution establishes certain funds and determines the order in which revenues are to be deposited into these funds. A description of the significant funds, including their purposes, is as follows:

1.	Reserve Fund – The Series 2016 Reserve Account is funded from the proceeds of the Bonds in an amount equal to fifty percent of the Maximum Annual Debt Service Requirement for all Outstanding Series 2016 Bonds. Monies held in the reserve accounts will be used only for the purposes established in the Trust Indenture.

Reserve	Reserve

Balance	Requirement

Series 2016 Special Assessment Refunding Bonds	$	276,970	$	276,267

NOTE G – RISK MANAGEMENT

The government is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; and natural disasters for which the government carries commercial insurance.

-28-

~~tt

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Berger, Toombs,
Gaines & Frank

Certified Public Accountants	PL

600 Citrus Avenue

Suite 200

Fort Pierce, Florida 34950

7721461-6120 II 461-1155 FAX: 7721468-9278

Elam,

Agenda Page 53

INDEPENDENT AUDITOR'SREPORT ON INTERNAL CONTROL OVER FINANCIAL			
REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT			
OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH				
	GOVERNMENT AUDITING STANDARDS											
To the Board of Supervisors									District																
Live Oak No. 2 Community Development																	
																		
Hillsborough County, Florida																									
We have audited,	in accordance with the auditing standards generally accepted	in the United		
States of America	and the standards		applicable	to financial audits contained	in	Government		
												
							General  of the  United  States,  the  financial		
Auditing  Standards  issued  by the  Comptroller			
statements of Live Oak No.		2 Community Development District, as of and for the year ended		
September 30, 2017, and the related notes to the financial statements,	and have issued our		
report thereon dated May 24,	2018.																						
Internal Control Over Financial Reporting																
In planning and performing our audit,	we considered Live Oak No.	2 Community Development		
District's internal control over	financial	reporting	to determine	the	audit	procedures	that	are		
appropriate in the circumstances for the purpose	of expressing our opinions on the financial		
	an opinion on the effectiveness	of Live Oak		
statements, but not for the purpose	of expressing				
					an		
No. 2 Community Development District'sinternal control.  Accordingly, we do	not express			
opinion  on the effectiveness of Live		Oak	No.	2 Community	Development District's internal		
																	
control over financial reporting.																								
A deficiency in internal control exists when the design or operation	of a control does not allow		
management or employees,	in	the normal course of performing their assigned functions,	to		
prevent,  or detect	and correct	misstatements	on	a timely basis. A		material  weakness  is a		
deficiency, or combination of deficiencies,	in internal control, such that there	is	a reasonable		
possibility that a material misstatement	of the entity'sfinancial statements	will not	be prevented,		
		basis.	A	significant deficiency	is a deficiency,  or a		
or detected and corrected	on	a timely						
combination of deficiencies,	in	internal control that	is less severe than a material weakness,	yet		
important enough to merit attention	by those charged with governance.											
																						
Our  consideration	of  internal	control		over financial  reporting	was		for	the	limited  purpose		
described in the first paragraph of this section and	was not designed	to identify all deficiencies		
in internal control that might	be	material	weaknesses or significant deficiencies	..	Given these		
								we		
limitations,  during	our audit	we	did not identify any deficiencies	in		internal control that			
consider to be material weaknesses.		However, material weaknesses	may exist that have not		
been identified.																											

Member

AICPA

- 29 I- Stuart
Fort Pierce

Member AICPA Division For CPA Firms

Private Companies Practice Section

Member

FICPA

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Berger,
Gaines

Toombs,
& Frank

Agenda Page 54

Elam,

To the Board of Supervisors				District												
Live Oak No. 2 Community Development													
														
Hillsborough County, Florida																	
Compliance and Other Matters																	
As  part  of  obtaining  reasonable	assurance  about  whether  Live  Oak  No.	2	Community		
Development District'sfinancial statements are free of material misstatement, we performed		
tests  of  its  compliance  with  certain  provisions		of  laws,	regulations,	contracts,	and  grant		
	have	a	direct	and  material	effect  on  the		
agreements,  noncompliance  with	which  could							
determination of financial statement	amounts. However, providing an	opinion	on	compliance		
							accordingly, we do not express such		
with those provisions was not an	objective of our audit, and			
an opinion. The results of our tests disclosed	no	instances of noncompliance or other matters		
that are required to be reported under Government	Auditing Standards.						
											
Purpose of this Report																	
The purpose of this report is solely to describe the scope of our testing of internal control and		
compliance and the results of that testing, and not to provide an opinion	on the effectiveness	of		
the entity's internal control  or	on	compliance.		This	report is  an	integral  part	of an audit		
performed  in  accordance  with	Government  Auditing	Standards	in	considering	the  entity's		
internal control and compliance. Accordingly,	this communication	is not suitable for any other		
													
purpose.																	

Berger, Toombs, Elam, Gaines

Certified Public Accountants
Fort Pierce, Florida

May 24, 2018

&

Frank

-30-

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,OJ

Berger, Toombs,
Gaines & Frank

Certified  Public Accountants	PL

600 Citrus Avenue

Suite 200

Fort Pierce, Florida 34950

7721461-6120 II 461-1155 FAX: 7721468-9278

Elam,

Agenda Page 55

MANAGEMENT

LETTER

To the Board of Supervisors	District		
Live Oak No. 2 Community Development			
			
Hillsborough County, Florida			
Report on the Financial Statements			

We have
District as
dated May

audited the financial  statements of the Live Oak	No.	2	
of and for the year ended September 30,	2017, and have	
24,	2018.				

Community Development
issued our report thereon

Auditor'sResponsibility

We conducted our audit in accordance	with auditing standards generally	
States;  the  standards  applicable	to	financial  audits  contained	in	
Standards, issued by the Comptroller General of the United States and	
of the Florida Auditor General.				

accepted in the United

Government	Auditing
Chapter 10.550, Rules

Other Reports and Schedule									
We have issued our Independent Auditor'sReport	on	Internal Control over Financial Reporting		
and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in		
Accordance with Government Auditing Standards and our Independent Auditor'sReport	on	an		
examination conducted in accordance	with AICPA Professionals Standards,	AT-C Section 315		
						
regarding compliance requirements	in	accordance with Chapter 10.550, Rules of the Auditor		
General.  Disclosures in that report, which is dated	May 24, 2018, should	be considered	in		
conjunction with this Management Letter.							
Prior Audit Findings									

Section 10.554(1 )(i)1., Rules of the Auditor General, requires that we determine whether	
corrective actions have been made to address findings and recommendations made	
preceding	financial audit report.   There were no findings or recommendations made	
preceding	financial audit report.	

or

in
in

not

the

the

Financial Condition										
Section  10.554(1 )(i)5.a.  and	10.556(7),  Rules of the Auditor General,	requires	us to apply		
appropriate procedures and communicate	the results of our determination as to whether or not		
		District has met one  or more  of the  conditions		
Live  Oak	No.  2 Community	Development			
described	in Section 218.503(1), Florida Statutes,	and to identify the specific conditions	met. In		
					
connection with our audit, we determined	that the Live Oak No. 2 Community	Development		
					
District did not meet any of the conditions	described in Section 218. 503( 1),	Florida Statutes.		

Member

AICPA

Fort P~e~~ I _Stuart

Member AICPA Division For CPA Firms

Private Companies Practice Section

Member

FICPA

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Berger, Toombs,
Gaines & Frank

CertlfiedPubtic~ntants	Pl

Agenda Page 56

Elam,

To the Board of Supervisors				District															
Live Oak No. 2 Community Development																
																		
Pursuant to Sections 10.554(1 )(i)5.c. and 10.556(8),	Rules of the Auditor General,	we ap.plied		
financial conditions assessment procedures	as of September 30,	2017 for the	Live	Oak No. 2		
Community Development District.	It is	management'sresponsibility to monitor the Live Oak	No.		
2 Community Development District'sfinancial condition; our financial condition assessment was		
based in part on the representations made	by management and the review of the financial		
information provided by the same.																					
Section  10.554(1)(i)2.,  Rules  of	the	Auditor  General,	requires	that	we	communicate	any		
recommendations to improve financial	management.		In connection with our audit,	we did not		
have any such recommendations.											·										
Annual Financial Report																					
Section 10.554(1 )(i)5.b. and 10.556(7),	Rules of the Auditor General,	requires	that we apply		
appropriate procedures and communicate	the results	of	our determination	as		to whether	the		
									
annual financial report for the Live Oak	No.	2 Community	Development District for the fiscal		
year ended	September 30,  2017,	filed	with  the		Florida  Department	of	Financial  Services		
pursuant to	Section 218.32(1 )(a), Florida Statutes,	is in	agreement with the annual financial		
audit report for the fiscal year ended September	30,	2017. In connection with our audit,	we		
determined that these two reports were in agreement.													
Additional Matters																					
Section   10.554(1)(i)3.,  Rules	of	the  Auditor		General,  requires	us	to		communicate		
noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred,		
or are likely to have occurred, that have	an effect	on		the financial	statements that is less than		
material but which warrants the attention of those charged with governance.	In	connection with		
our audit, we did not note any such findings.																	

Purpose

of

this Letter

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

these specified

parties.

2J/dJ(,1, J()(Yfiw

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ri(}IJL

J1td/VU

Berger, Toombs, Elam, Gaines
Certified Public Accountants PL
Fort Pierce, Florida

&

Frank

May

24,

2018

-32-

~~tt	Berger,	Toombs,	Elam,	
....o,,	Gaines	& Frank		
	Certified Public Accountants	PL		
	600 Citrus Avenue			
	Suite 200				
	Fort Pierce, Florida 34950			
	772/461-6120	II 461-1155			
	FAX: 772/468-9278			

INDEPENDENT ACCOUNTANT'SREPORT/COMPLIANCE

WITH SECTION 218.415, FLORIDA STATUTES

Agenda Page 57

To the Board of Supervisors		District									
Live Oak No. 2 Community Development										
											
Hillsborough County, Florida												
We have examined Live Oak No. 2 Community	Development District'scompliance with Section		
218.415,  Florida  Statutes  during	the  year  ended  September	30,  2017.  Management  is		
responsible  for  Live  Oak  No.  2 Community	Development  District's compliance  with  those		
requirements.  Our responsibility  is  to  express	an  opinion  on  Live  Oak  No.	2  Community		
Development District'scompliance based	on our examination.							
Our examination was conducted in	accordance	with attestation standards established	by the		
				on a		
American Institute of Certified Public Accountants and, accordingly, included examining,			
test basis, evidence about Live Oak No.	2 Community	Development District'scompliance with		
those requirements and performing	such other procedures as we considered necessary	in the		
circumstances. We believe that our examination provides a reasonable basis for our opinion.		
Our examination  does  not  provide  a  legal  determination	on  Live  Oak  No.	2  Community		
Development District'scompliance with the specified requirements.						

In our opinion,  Live  Oak No.  2

respects, with the aforementioned

Community  Development  District

requirements during the year ended

complied, in all material September 30, 2017.

2,MJJtfi, Jam/otJI

rliJ;J,v

0XJatiuJ

4

J1tMI~/

Berger, Toombs, Elam, Gaines
Certified Public Accountants PL
Fort Pierce, Florida

&

Frank

May

24,

2018

Member

AICPA

Fort P~e~3/_Stuart

Member AICPA Division For CPA Firms

Private Companies Practice Section

Member

FICPA

Agenda Page 58

3D.

Agenda Page 59

Notice of Meetings – FY 2019
Live Oak No. 2
Community Development District

The Board of Supervisors of Live Oak No. 2 Community Development District will hold their meetings for Fiscal Year 2019 at the Live Oak Clubhouse, 9401 Oak Preserve Boulevard, Tampa, Florida, as indicated below:

January 15, 2019 at 11:00 a.m.
May 14, 2019 at 6:30 p.m.
July 16, 2019 at 6:30 p.m.
September 17, 2019 at 11:00 a.m.

Meetings may be continued to a date and time certain which will be announced at the meeting. There may be occasions when one or more Supervisors may participate by telephone. Any person requiring special accommodations at this meeting because of a disability or physical impairment should contact the District Office at (954) 603-0033 at least forty-eight (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 1-800-955-8771 (TTY) / 1-800-955-8770 (Voice), for aid in contacting the District Manager’s Office.

Each person who decides to appeal any decision made by the Board 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.

Andrew P. Mendenhall, PMP

District Manager

Updated 07/10/18

Agenda Page 60

Fourth Order of Business

Agenda Page 61

LIVE OAK NO. 2

Community Development District

Annual Operating and Debt Service Budget

Fiscal Year 2019

Version 1 - Approved Tentative Budget

Prepared by:

Agenda Page 62
LIVE OAK NO. 2

Community Development District

Table of Contents

				Page #	
OPERATING BUDGET			
General Fund		
Summary of Revenues, Expenditures and Changes in Fund Balances ……………………………..	1	
Budget Narrative ……………………………………………………………………………………………	2-4	
Exhibit A - Allocation of Fund Balances ………………………………………………………………….	5	
DEBT SERVICE BUDGET			
Series 2016		
Summary of Revenues, Expenditures and Changes in Fund Balances ……………………………..	6	
Amortization Schedule  ……………………………………………………………………………………	7	
SUPPORTING BUDGET SCHEDULES			
2018-2019 Non-Ad Valorem Assessment Summary ………………………………………………………..	8	

Agenda Page 63

Live Oak No. 2

Community Development District

Operating Budget

Fiscal Year 2019

Agenda Page 64
LIVE OAK NO. 2

Community Development District															General Fund	
Summary of Revenues, Expenditures and Changes in Fund Balances					
			Fiscal Year 2019 Approved Tentative Budget									
								ADOPTED			ACTUAL	PROJECTED			TOTAL			ANNUAL	
			ACTUAL			ACTUAL			BUDGET			THRU		APRIL-		PROJECTED			BUDGET	
ACCOUNT DESCRIPTION			FY 2016			FY 2017			FY 2018		MAR-2018		SEP-2018			FY 2018			FY 2019	
REVENUES																						
Interest - Investments	$	1,321	$	1,761	$	-	$	1,675		$	1,675	$	3,350	$	1,000	
Interest - Tax Collector			-			-			-			105			-			105			-	
Special Assmnts- Tax Collector			256,048			256,049			256,049			247,698			8,351			256,048			253,094	
Special Assmnts- Discounts			(9,587)			(9,543)			(10,242)			(9,761)			(481)			(10,242)			(10,124)	
Other Miscellaneous Revenues			-			1,667			-			-			-			-			-	
																						
TOTAL REVENUES			247,782			249,934			245,807			239,717			9,545			249,261			243,970	
EXPENDITURES																						
Administrative																						
P/R-Board of Supervisors			4,600			3,200			8,000			1,400			6,600			8,000			6,000	
FICA Taxes			352			245			612			107			505			611			459	
ProfServ-Arbitrage Rebate			1,200			600			600			-			600			600			600	
ProfServ-Dissemination Agent			5,000			-			1,000			1,000			-			1,000			1,000	
ProfServ-Engineering			16,477			27,104			15,000			4,462			10,538			15,000			15,000	
ProfServ-Legal Services			3,525			2,969			3,000			887			2,113			3,000			3,000	
ProfServ-Mgmt Consulting Serv			38,850			38,850			38,850			19,425			19,425			38,850			40,000	
ProfServ-Special Assessment			12,500			12,500			12,500			12,500			-			12,500			12,500	
ProfServ-Trustee Fees			9,079			3,971			3,717			-			3,717			3,717			3,717	
Auditing Services			3,500			3,500			3,500			-			3,500			3,500			3,500	
Postage and Freight			95			70			1,000			48			952			1,000			500	
Insurance - General Liability			8,217			8,310			9,141			8,310			-			8,310			9,141	
Printing and Binding			171			125			500			91			250			341			300	
Legal Advertising			379			1,762			900			552			348			900			900	
Misc-Bank Charges - SunTrust			302			295			600			93			300			393			300	
Misc-Assessmnt Collection Cost			3,456			3,372			5,121			4,759			362			5,121			5,062	
Misc-Web Hosting			772			775			775			-			388			388			1,000	
Office Supplies			94			-			100			-			50			50			100	
Annual District Filing Fee			175			175			175			175			-			175			175	
Total Administrative			108,744			107,823			105,091			53,809			49,648			103,456			103,254	
Field																						
Contracts-Envirom'l Monitoring			1,950			-			3,200			2,400			800			3,200			3,200	
Contracts-Landscape			44,238			44,238			44,238			22,119			22,119			44,238			44,238	
Contracts-Lakes			16,596			16,596			16,596			8,298			8,298			16,596			16,596	
R&M-Fence			3,620			2,015			7,500			-			3,750			3,750			5,000	
R&M-Lake			1,022			7,746			5,000			13,244			2,500			15,744			7,500	
R&M-Wetland Monitoring			-			2,400			8,000			7,350			650			8,000			8,000	
Misc-Contingency			25,004			26,125			25,000			8,304			12,500			20,804			25,000	
Reserve - Ponds			-			24,432			31,182			-			-			-			31,182	
Total Field			92,430			123,552			140,716			61,715			50,617			112,332			140,716	
																						
TOTAL EXPENDITURES			201,174			231,375			245,807			115,524			100,265			215,788			243,970	
Net change in fund balance			46,608			18,559			-			124,193			(90,720)			33,474			-	
FUND BALANCE, BEGINNING			304,734			351,342			369,901			369,901			-			369,901			403,375	
FUND BALANCE, ENDING	$	351,342	$	369,901	$	369,901	$	494,094		$	(90,720)	$	403,375	$	403,375	

Annual Operating and Debt Service Budget	Page 1	
Fiscal Year 2019		

Agenda Page 65

Live Oak No. 2
Community Development District	General Fund

Budget Narrative

Fiscal Year 2019

REVENUES

Special Assessment – Tax Collector

The District will levy a Non-Ad Valorem assessment on all the assessable property within the District in order to pay for the operating expenditures during the Fiscal Year.

Special Assessment – Discount

Per Section 197.162, Florida Statutes, discounts are allowed for early payment of assessments. The budgeted amount for the fiscal year is calculated at 4% of the anticipated Non-Ad Valorem assessments.

EXPENDITURES

ADMINISTRATIVE

P/R Board of Supervisor

Chapter 190 of the Florida Statutes allows for a member of the Board of Supervisors to be compensated for a meeting attendance and to receive $200 per meeting plus payroll taxes.

FICA Taxes

Payroll taxes for the Supervisors’ salaries are calculated at 7.65% of gross payroll.

Professional Services-Arbitrage Rebate Calculation

The District will contract with an independent certified public account to annually calculate the District’s Arbitrage Rebate Liability on the Series of Benefit Special Assessment Bonds. The budgeted amount for the fiscal year is based on standard fees charged for this service.

Professional Services-Dissemination Agent

The District is required by the Securities and Exchange Commission to comply with rule 15c2-12(b)-(5), which relates to additional supporting requirements for unrelated bond issues. The budgeted amount for the fiscal year is based on the Series 2016 Continuing Disclosure Certificate found in the indenture.

Professional Services-Engineering

The District's engineer will be providing general engineering services to the District, i.e. attendance and preparation for monthly board meetings, review invoices, etc. Fees are based on estimated activity.

Professional Services-Legal

The District's legal counsel will be providing general legal services to the District, i.e. attendance and preparation for monthly meetings, review operating and maintenance contracts, etc. Fees are based on estimated activity.

Professional Services-Management Consulting

The District receives Management, Accounting, IT and Administrative services as part of a Management Agreement with Inframark - Infrastructure Management Services. The fees are related to the current contracted fees in the Management Agreement.

Professional Services-Special Assessments

The District has contracted with Inframark - Infrastructure Management Services for the collection of assessments, updating the District’s tax roll and levying the annual assessment.

Annual Operating and Debt Service Budget

Fiscal Year 2019
Page 2

Agenda Page 66

Live Oak No. 2
Community Development District	General Fund

Budget Narrative

Fiscal Year 2019

EXPENDITURES

ADMINISTRATIVE (CONTINUED)

Professional Services-Trustee

The District pays US Bank an annual fee for trustee services on the Series 2016 Special Assessments Refunding Bond. The budgeted amount was provided by the Trustee.

Auditing Services

The District is required annually to conduct an audit of its financial records by an Independent Certified Public Accounting Firm. The fee is based on existing year’s engagement letter.

Postage & Freight

Mailing of agenda packages, overnight deliveries & correspondence.

Insurance – General Liability

The District has general liability insurance. These insurance policies are held with Public Risk Insurance. Public Risk Insurance specializes in providing insurance coverage to governmental agencies. The amount is based upon historical expenses with a projected 10% increase.

Printing & Binding

Printing & binding agenda packages for board meetings, printing of computerized checks, stationary, envelopes etc.

Legal Advertising

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

Misc- Bank Charges

Bank Fees charged by SunTrust on the main operating account.

Misc-Assessment Collection Fee

The District reimburses the Tax Collector for necessary administrative costs. Per the Florida Statutes, administrative costs shall include, but not be limited to, those costs associated with personnel, forms, supplies, data processing, computer equipment, postage, and programming. The District also compensates the Tax Collector for the actual cost of collection or 2% on the amount of special assessments collected and remitted, whichever is greater. The budget for collection costs was based on a maximum of 2% of the anticipated assessment collections.

Misc–Web Hosting

The District will create and maintain a website for public access to the District’s activities.

Office Supplies

Miscellaneous office supplies required to prepare agenda packages.

Annual District Filing Fee

The District is required to pay an annual fee to the Department of Economic Opportunity Division of Community Development for $175.

Annual Operating and Debt Service Budget

Fiscal Year 2019
Page 3

Agenda Page 67

Live Oak No. 2
Community Development District	General Fund

Budget Narrative

Fiscal Year 2019

EXPENDITURES

OPERATIONS & MAINTENANCE

Contracts – Envirom’l Monitoring

The District will contract with Florida Native Nursery to remove and maintain the overgrown weeds and brush in 3 flood compensation areas. The ongoing quarterly maintenance for mitigation of the area is $800 per quarter.

Contracts - Landscape

The District currently has a contract with Landscape Maintenance Professionals, Inc. to maintain the landscaping and irrigation system of the common areas within the District. The contract amount is $3,687 per month.

Contracts-Lakes

The District has a contract with American EcoSystems to provide lake spray services to 27 ponds for $1,383/mo.

R&M - Fence

The District anticipates fence repair expenses.

R&M – Lake

The District expects to incur minor lake maintenance expenditures.

R&M-Wetland Monitoring

Monitoring and reporting services for the District’s lakes will be provided by Driggers & King Engineering.

Misc-Contingency

This category represents miscellaneous expenditures incurred during the year that cannot be otherwise classified.

Reserves-Ponds

This represents reserves the district has budgeted and intends to designate as funds to set aside to cover future capital expenditures which may require substantial cash use.

Annual Operating and Debt Service Budget

Fiscal Year 2019
Page 4

LIVE OAK NO. 2			Agenda Page 68		
							
Community Development District			General Fund		
				Exhibit "A"							
			Allocation of Fund Balances					
		AVAILABLE FUNDS							
								Amount			
											
		Beginning Fund Balance - Fiscal Year 2019	$	403,375			
		Net Change in Fund Balance - Fiscal Year 2019			(0)			
		Reserves - Fiscal Year 2019 Additions			31,182			
								
	Total Funds Available (Estimated) - 9/30/2019			434,557			
		ALLOCATION OF AVAILABLE FUNDS							
		Assigned Fund Balance						(1)		
		Operating Reserve - First Quarter Operating Capital			53,197			
		Reserves - Ponds	170,751						
		Reserves - Ponds - FY18 (Projected)	31,182						
		Reserves - Ponds - FY19 (Proposed)	31,182		233,115			
											
						Subtotal	286,312			
												
		Total Allocation of Available Funds			286,312			
	Total Unassigned (undesignated) Cash						
		$	148,245			

Notes

(1) Represents approximately 3 months of operating expenditures

Annual Operating and Debt Service Budget	Page 5		
Fiscal Year 2019			

Agenda Page 69

Live Oak No. 2

Community Development District

Debt Service Budget

Fiscal Year 2019

LIVE OAK NO. 2

Agenda Page 70

Community Development District
Debt Service Series 2016 Fund

Summary of Revenues, Expenditures and Changes in Fund Balances

Fiscal Year 2019 Approved Tentative Budget

						ADOPTED		ACTUAL		PROJECTED		TOTAL		ANNUAL	
		ACTUAL		ACTUAL		BUDGET		THRU		APRIL-		PROJECTED		BUDGET	
ACCOUNT DESCRIPTION		FY 2016		FY 2017		FY 2018		MAR-2018		SEP-2018		FY 2018		FY 2019	

REVENUES

Interest - Investments	$	198	$	866	$	-	$	363	$	363	$	726	$	-		
Special Assmnts- Tax Collector		30,587			600,455			600,454			580,873			19,581			600,454			600,454		
Special Assmnts- Prepayment		8,841			-			-			-			-			-			-		
Special Assmnts- Discounts		339			(22,379)			(24,018)			(22,891)			(1,127)			(24,018)			(24,018)		
																						
TOTAL REVENUES		39,965			578,942			576,436			558,345			18,817			577,162			576,436		
EXPENDITURES																						
Administrative																						
Misc-Assessmnt Collection Cost		(3,481)			7,907			12,009			11,160			849			12,009	$	12,009		
																						
Total Administrative		(3,481)			7,907			12,009			11,160			849			12,009			12,009		
Debt Service																						
Principal Debt Retirement		25,854			310,000			315,000			-			315,000			315,000			320,000		
Prepayments Series		-			15,000			-			-			5,000			5,000			-		
Interest Expense Series		30,042			245,548			238,324			119,162			119,162			238,324			231,036		
Total Debt Service																						
		55,896			570,548			553,324			119,162			439,162			558,324			551,036		
																						
TOTAL EXPENDITURES		52,415			578,455			565,333			130,322			440,010			570,333			563,044		
Excess (deficiency) of revenues																						
Over (under) expenditures		(12,450)			487			11,103			428,023			(421,193)			6,829			13,391		
OTHER FINANCING SOURCES (USES)																						
Interfund Transfer - In		889,193			-			-			-			-			-			-		
Proceeds of Refunding Bonds		7,620,000			-			-			-			-			-			-		
Pymt to Escrow Acct-Refunding		(7,826,788)			-			-			-			-			-			-		
Contribution to (Use of) Fund																						
Balance		-			-			11,103			-			-			-			13,390		
																						
TOTAL OTHER SOURCES (USES)		682,405			-			11,103			-			-			-			13,390		
Net change in fund balance		669,955			487			11,103			428,023			(421,193)			6,829			13,390		
FUND BALANCE, BEGINNING		(227,568)			442,386			442,873			442,873			-			442,873			449,702		
FUND BALANCE, ENDING	$	442,387	$	442,873	$	453,976	$	870,896	$	(421,193)	$	449,702	$	463,093		

Annual Operating and Debt Service Budget

Fiscal Year 2019	Page 6

Agenda Page 71
LIVE OAK NO. 2

Community Development District

AMORTIZATION SCHEDULE

SPECIAL ASSESSMENT BONDS SERIES 2016A

Period	Principal	Coupon	Interest	Debt Service	Annual Debt		
Ending					Service		

							
11/1/2018			115,518	115,518			
5/1/2019	320,000	2.250%	115,518	435,518	551,036		
11/1/2019			111,918	111,918			
5/1/2020	330,000	2.250%	111,918	441,918	553,836		
11/1/2020			108,206	108,206			
5/1/2021	335,000	2.000%	108,206	443,206	551,411		
11/1/2021			104,856	104,856			
5/1/2022	345,000	2.250%	104,856	449,856	554,711		
11/1/2022			100,974	100,974			
5/1/2023	355,000	2.600%	100,974	455,974	556,949		
11/1/2023			96,359	96,359			
5/1/2024	360,000	2.750%	96,359	456,359	552,719		
11/1/2024			91,409	91,409			
5/1/2025	375,000	3.125%	91,409	466,409	557,819		
11/1/2025			85,550	85,550			
5/1/2026	385,000	3.200%	85,550	470,550	556,100		
11/1/2026			79,390	79,390			
5/1/2027	400,000	3.300%	79,390	479,390	558,780		
11/1/2027			72,790	72,790			
5/1/2028	415,000	3.700%	72,790	487,790	560,580		
11/1/2028			65,113	65,113			
5/1/2029	430,000	3.700%	65,113	495,113	560,225		
11/1/2029			57,158	57,158			
5/1/2030	445,000	3.700%	57,158	502,158	559,315		
11/1/2030			48,925	48,925			
5/1/2031	450,000	3.700%	48,925	498,925	547,850		
11/1/2031			40,600	40,600			
5/1/2032	480,000	4.000%	40,600	520,600	561,200		
11/1/2032			31,000	31,000			
5/1/2033	500,000	4.000%	31,000	531,000	562,000		
11/1/2033			21,000	21,000			
5/1/2034	515,000	4.000%	21,000	536,000	557,000		
11/1/2034			10,700	10,700			
5/1/2035	535,000	4.000%	10,700	545,700	556,400		
11/1/2035							
Totals	6,975,000		2,482,931	9,457,931	9,457,931		

Annual Operating and Debt Service Budget

Fiscal Year 2019	Page 7

Agenda Page 72

Live Oak No. 2

Community Development District

Supporting Budget Schedules

Fiscal Year 2019

LIVE OAK NO. 2

Agenda Page 73

Community Development District	All Funds

Comparison of Assessment Rates

Fiscal Year 2019 vs. Fiscal Year 2018

		General Fund 001			Debt Service			Total Assessments per Unit		Total	
		FY 2019	FY 2018	Percent		FY 2019	FY 2018	Percent		FY 2019	FY 2018	Percent		Units	
Product				Change				Change				Change			
45'		$328.69	$332.53	-1.2%		$632.86	$632.86	0.0%		$961.55	$965.39	-0.4%		191	
50'		$328.69	$332.53	-1.2%		$717.24	$717.24	0.0%		$1,045.93	$1,049.77	-0.4%		328	
60'		$328.69	$332.53	-1.2%		$843.81	$843.81	0.0%		$1,172.50	$1,176.34	-0.3%		134	
75'		$328.69	$332.53	-1.2%		$1,096.95	$1,096.95	0.0%		$1,425.64	$1,429.48	-0.3%		74	
80'		$328.69	$332.53	-1.2%		$1,181.33	$1,181.33	0.0%		$1,510.02	$1,513.86	-0.3%		43	
														770	

Annual Operating and Debt Service Budget

Fiscal Year 2019
Page 8

Agenda Page 74

4A.

Agenda Page 75

RESOLUTION 2018-03

A RESOLUTION OF THE LIVE OAK NO. 2 COMMUNITY DEVELOPMENT DISTRICT (THE “DISTRICT”) RELATING TO THE ANNUAL APPROPRIATIONS OF THE DISTRICT AND ADOPTING THE BUDGET FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2018, AND ENDING SEPTEMBER 30, 2019; AND REFERENCING THE OPERATIONS AND MAINTENANCE SPECIAL ASSESSMENTS TO BE LEVIED BY THE DISTRICT FOR SAID FISCAL YEAR

WHEREAS, the District Manager has, prior to the fifteenth (15th) day in June, 2018, submitted to the Board of Supervisors (the "Board") a proposed budget for the next ensuing budget year along with an explanatory and complete financial plan for each fund of the District, pursuant to the provisions of Section 190.008(2)(a), Florida Statutes; and

WHEREAS, at least sixty (60) days prior to the adoption of the proposed annual budget and any proposed long-term financial plan or program of the District for future operations and maintenance (the "Proposed Budget”) the District did file a copy of the Proposed Budget with the general purpose local governing authorities having jurisdiction over the area included in the District pursuant to the provisions of Section 190.008(2)(b) Florida Statutes; and

WHEREAS, the Board set July 24, 2018, as the date for a public hearing thereon and caused notice of such public hearing to be given by publication pursuant to Section 190.008(2)(a) Florida Statutes; and

WHEREAS, Section 190.008(2)(a), Florida Statutes requires that, prior to October 1 of each year, the District 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 the Proposed Budget on a cash flow budget basis, 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; and

WHEREAS, Section 190.021, Florida Statutes provides that the Annual Appropriation Resolution shall also fix the Operations and Maintenance Special Assessments upon each piece of property within the boundaries of the District benefited, specifically and peculiarly, by the operations and maintenance and/or capital improvement programs of the District, such levy representing the amount of District assessments necessary to provide for payment during the ensuing budget year of all properly authorized expenditures to be incurred by the District, including principal and interest of special revenue, capital improvement and/or benefit assessment bonds, in order for the District to exercise its various general and special powers to implement its single and specialized infrastructure provision purpose; and

WHEREAS, the Board finds and determines that the non-ad valorem special assessments it imposes and levies by this Resolution for operations and maintenance on the parcels of property

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involved will constitute a mechanism by which the property owners lawfully and validly will reimburse the District for those certain special and peculiar benefits the District has determined are received by, and flow to, the parcels of property from the systems, facilities and services being provided, and that the special and peculiar benefits are apportioned in a manner that is fair and reasonable in accordance with applicable assessment methodology and related case law; and

WHEREAS, the Chair of the Board of Supervisors may designate the District Manager or other person to certify the non-ad valorem assessment roll to the Tax Collector in and for Hillsborough County political subdivision (the “Tax Collector”) on compatible electronic medium tied to the property identification number no later than August 31, 2018 so that the Tax Collector may merge that roll with others into the collection roll from which the November tax notice is to be printed and mailed; and

WHEREAS, the proceeds from the collections of these imposed and levied non-ad valorem assessments shall be paid to the District; and

WHEREAS, the Tax Collector, under the direct supervision of the Florida Department of Revenue performs the state work in preparing, mailing out, collecting and enforcing against delinquency the non-ad valorem assessments of the District using the Uniform Collection Methodology for non-ad valorem assessments; and

WHEREAS, if the Hillsborough County Property Appraiser (the “Property Appraiser”) and the Tax Collector have adopted a different technological procedure for certifying and merging the rolls, then that procedure must be worked out and negotiated with Board approval through the auspices of the District Manager before there are any deviations from the provisions of Section 197.3632, Fla. Stat., and Rule 12D-18, Florida Administrative Code.

NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF
SUPERVISORS	OF	THE	LIVE	OAK	NO.	2	COMMUNITY

DEVELOPMENT DISTRICT;

Section 1. The recitals set forth above are true and correct and are incorporated herein by this reference.

Section 2.	Budget

a.	That the Board of Supervisors has reviewed the District Manager's Proposed Budget, a copy of which is on file with the office of the District Treasurer and the office of the Recording Secretary, and is hereby attached to this resolution, and hereby approves certain amendments thereto, as shown in Section 3 below.

b.	That the District Manager's Proposed Budget, as amended by the Board, is adopted hereby in accordance with the provisions of Section 190.008(2)(a), Florida Statutes and incorporated herein by reference; provided, however, that the comparative figures contained in the adopted budget may be revised subsequently as deemed necessary by the District Manager to reflect actual revenues and expenditures for the Fiscal Year 2017/2018 and/or revised projections for Fiscal Year 2018/2019.

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c.	That the adopted budget, as amended, shall be maintained in the office of the District Treasurer and the District Recording Secretary and identified as "The Budget for the Live Oak No. 2 Community Development District for the Fiscal Year Ending September 30, 2019, as Adopted by the Board of Supervisors on July 24, 2018.”

Section 3.	Appropriations

That there be, and hereby is appropriated out of the revenues of the Live Oak No. 2
Community Development District, for the Fiscal Year beginning on October 1, 2018, and ending
September	30,	2019,	the	sum	of	______________________________________	dollars
($____________) to be raised by the applicable imposition and levy by the Board of applicable

non-ad valorem special assessments and otherwise, which sum is deemed by the Board of Supervisors to be necessary to defray all expenditures of the District during said budget year, to be divided and appropriated in the following fashion:

TOTAL GENERAL FUND	$

DEBT SERVICE FUND	$

CAPITAL PROJECTS FUND	$

ENTERPRISE FUNDS	$

Total All Funds	$

Section 4.	Budget Amendments

Pursuant to Section 189.016, Florida Statutes, the District at any time within the fiscal year or within 60 days following the end of the fiscal year may amend its budget for that fiscal year as follows:

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

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

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

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

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

Section 5.	Effective Date.	This Resolution shall
take effect immediately upon adoption.

Introduced, considered favorably, and adopted this 24th day of July, 2018.

Live	Oak	No.	2	Community	Development
District

Chairman

Attest:

Andrew P. Mendenhall, PMP
Secretary

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4B

Agenda Page 80

RESOLUTION 2018-04

A RESOLUTION OF THE BOARD OF SUPERVISORS OF THE LIVE OAK NO. 2 COMMUNITY DEVELOPMENT DISTRICT LEVYING AND IMPOSING SPECIAL ASSESSMENTS; PROVIDING FOR COLLECTION AND ENFORCEMENT OF SPECIAL ASSESSMENTS; ADOPTING AND CERTIFYING AN ASSESSMENT ROLL; PROVIDING FOR AMENDMENT OF THE ASSESSMENT ROLL; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE.

WHEREAS, the Live Oak No. 2 Community Development District (the “District”) is a local unit of special-purpose government established pursuant to Chapter 190, Florida Statutes for the purpose of providing, operating and maintaining infrastructure improvements, facilities and services to the lands within the District; and

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

WHEREAS, the District owns and operates various infrastructure improvements and provides certain services in accordance with Chapter 190, Florida Statutes; and

WHEREAS, the Board of Supervisors (the “Board”) of the District hereby determines to undertake various operations and maintenance activities described in the District’s budget for fiscal year 2018/2019 (“Operations and Maintenance Budget”), attached hereto as Exhibit “A” and incorporated as a material part of this Resolution by this reference; and

WHEREAS, the District must obtain sufficient funds to provide for the operation and maintenance services and facilities provided by the District as described in the District’s Operation and Maintenance Budget; and

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

WHEREAS, the Board finds that the District's total General Fund operation and maintenance assessments, taking into consideration other revenue sources during Fiscal Year 2018/2019 for operations and maintenance programs, will amount to _____________; and

WHEREAS, the Board finds the District’s Debt Service Fund Assessment during Fiscal Year 2018/2019 will amount to _____________; and

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

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WHEREAS, Chapter 197, Florida Statutes, provides a mechanism pursuant to which such special assessments may be placed on the County Tax Roll and collected by the County Tax Collector (“Uniform Method”); and

WHEREAS, the District has, by resolution and public notice, previously evidenced its intention to utilize the Uniform Method; and

WHEREAS, the District has approved an agreement with the Hillsborough County Property Appraiser (the “Property Appraiser”) and Hillsborough County Tax Collector (the “Tax Collector”) to provide for the collection of special assessments under the Uniform Method; and

WHEREAS, it is in the best interests of the District to proceed with the imposition of the special assessments on all assessable lands for operations and maintenance in the amount contained in the Operation and Maintenance Budget; and

WHEREAS, the District desires to levy and collect special assessments reflecting each parcel’s portion of the District’s Operations and Maintenance Budget; and

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

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

NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF SUPERVISORS OF THE LIVE OAK NO. 2 COMMUNITY DEVELOPMENT DISTRICT:

SECTION 1. BENEFIT. The provision of the services, facilities and operations as described in Exhibit “A” confer a special and peculiar benefit to the lands within the District, which benefits exceed or equal the costs of the assessments. The allocation of the costs to the specially benefited lands is shown in Exhibits “A” and “B”.

SECTION 2. ASSESSMENT IMPOSITION. Pursuant to Chapter 190 of the Florida Statutes, and using procedures authorized by Florida law for the levy and collection of special assessments, a special assessment for operation and maintenance is hereby imposed and levied on benefited lands within the District in accordance with Exhibits “A” and “B”. The lien of the special assessments for operations and maintenance imposed and levied by this Resolution shall be effective upon passage of this Resolution.

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SECTION 3. COLLECTION AND DUE DATE. The collection of the previously levied debt service assessments and operation and maintenance special assessments on the platted lots and developed lands shall be at the same time and in the same manner as County taxes in accordance with the Uniform Method, as set forth in Exhibits “A” and “B.” The District certifies all assessments for debt service and operations and maintenance for collection pursuant to Chapters 190 and 197, Florida Statutes. All assessments collected by the Tax Collector shall be due and payable as provided in Chapter 197, Florida Statutes.

SECTION 4. ASSESSMENT ROLL. The District's Assessment Roll, attached to this Resolution as Exhibit “B”, is hereby certified and adopted.

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

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

SECTION 7. EFFECTIVE DATE. This Resolution shall take effect upon the passage and adoption of this Resolution by the Board of Supervisors of the Live Oak No. 2 Community Development District.

PASSED AND ADOPTED this 24th day of July, 2018.

ATTEST:	LIVE OAK NO. 2 COMMUNITY	
		DEVELOPMENT DISTRICT	
By:	By:	
				
Andrew P. Mendenhall			
Secretary		Chair of the Board of Supervisors	

Exhibit “A” – Fiscal Year 2018/2019 Budget
Exhibit “B” – Assessment Roll

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