LIVE OAK NO. 2

Community Development District

Annual Operating and Debt Service Budget

Fiscal Year 2018

Version 1 - Approved Tentative Budget

(Approved May 16, 2017)

Prepared by:

SEVERN

TRENT

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		
			
2017-2018 Non-Ad Valorem Assessment Summary ………………………………………………………..	8	

Live Oak No. 2

Community Development District

Operating Budget

Fiscal Year 2018

LIVE OAK NO. 2

Community Development District															General Fund		
Summary of Revenues, Expenditures and Changes in Fund Balances						
			Fiscal Year 2018 Proposed Budget											
								ADOPTED			ACTUAL		PROJECTED			TOTAL			ANNUAL		
			ACTUAL			ACTUAL			BUDGET			THRU			MAY-		PROJECTED			BUDGET		
ACCOUNT DESCRIPTION			FY 2015			FY 2016			FY 2017		APR-2017			SEP-2017			FY 2017			FY 2018		
REVENUES																							
Interest - Investments	$	1,456	$	1,321	$	-	$	1,138	$	625	$	1,763	$	-		
Special Assmnts- Tax Collector			256,048			256,048			256,049			251,035			5,013			256,048			256,049		
Special Assmnts- Delinquent			296			-			-			-			-			-			-		
Special Assmnts- Discounts			(9,576)			(9,587)			(10,242)			(9,683)			-			(9,683)			(10,242)		
Other Miscellaneous Revenues			-			-			-			1,667			-			1,667			-		
																							
TOTAL REVENUES			248,224			247,782			245,807			244,157			5,638			249,795			245,807		
EXPENDITURES																							
Administrative																							
P/R-Board of Supervisors			4,600			4,600			8,000			800			2,000			2,800			8,000		
FICA Taxes			352			352			612			61			153			213			612		
ProfServ-Arbitrage Rebate			600			1,200			600			-			600			600			600		
ProfServ-Dissemination Agent			5,000			5,000			1,000			-			1,000			1,000			1,000		
ProfServ-Engineering			32,575			16,477			15,000			10,211			10,211			20,422			15,000		
ProfServ-Legal Services			2,150			3,525			3,000			2,099			1,499			3,598			3,000		
ProfServ-Mgmt Consulting Serv			37,000			38,850			38,850			22,663			16,187			38,850			38,850		
ProfServ-Property Appraiser			4,847			-			-			-			-			-			-		
ProfServ-Special Assessment			12,500			12,500			12,500			12,500			-			12,500			12,500		
ProfServ-Trustee Fees			9,079			9,079			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			170			95			1,000			27			300			327			1,000		
Insurance - General Liability			9,195			8,217			9,039			8,310			-			8,310			9,141		
Printing and Binding			342			171			500			52			119			171			500		
Legal Advertising			665			379			900			285			450			735			900		
Misc-Bank Charges			271			302			600			163			140			303			600		
Misc-Assessmnt Collection Cost			3,847			3,456			5,121			4,827			100			4,927			5,121		
Misc-Web Hosting			1,228			772			775			775			-			775			775		
Office Supplies			-			94			100			-			94			94			100		
Annual District Filing Fee			175			175			175			175			-			175			175		
Total Administrative			128,096			108,744			104,989			62,948			40,070			103,017			105,091		
Field																							
Contracts-Envirom'l Monitoring			5,250			1,950			-			-			13,800			13,800			3,200		
Contracts-Landscape			42,238			44,238			44,238			25,806			18,432			44,238			44,238		
Contracts-Lakes			16,596			16,596			16,596			9,681			6,915			16,596			16,596		
R&M-Fence			6,689			3,620			7,500			555			396			951			7,500		
R&M-Lake			5,755			1,022			5,000			7,746			-			7,746			5,000		
R&M-Stormwater System			31,800			-			-			-			-			-			-		
R&M-Wetland Monitoring			1,000			-			8,000			1,650			6,350			8,000			8,000		
Misc-Contingency			4,025			25,004			25,000			16,525			8,000			24,525			25,000		
Reserve - Ponds			13,245			-			34,484			24,432			-			24,432			31,182		
Total Field			126,598			92,430			140,818			86,395			53,893			140,288			140,716		
																							
TOTAL EXPENDITURES			254,694			201,174			245,807			149,343			93,963			243,305			245,807		
Net change in fund balance			(6,470)			46,608			-			94,814			(88,325)			6,490			0		
FUND BALANCE, BEGINNING			311,204			304,734			351,342			351,342			-			351,342			357,832		
FUND BALANCE, ENDING		$	304,734		$	351,342		$	351,342		$	446,156		$	(88,325)		$	357,832		$	357,832		
																					
Annual Operating and Debt Service Budget																Page 1		
Fiscal Year 2018																					

Live Oak No. 2

Community Development District	General Fund

Budget Narrative

Fiscal Year 2018

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 with Severn Trent Environmental Services, Inc. Management Agreement.

and Administrative services as part of a Management Agreement The  fees  are  related  to  the  current  contracted  fees  in  the

Professional Services-Special Assessments

The District has contracted with Severn Trent Management Services, Inc. for the collection of assessments, updating the District’s tax roll and levying the annual assessment.

Annual Operating and Debt Service Budget		
Fiscal Year 2018	Page 2	

Live Oak No. 2

Community Development District	General Fund

Budget Narrative

Fiscal Year 2018

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 2018	Page 3	

Live Oak No. 2

Community Development District	General Fund

Budget Narrative

Fiscal Year 2018

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 initial cost for removal of the brush is $12,000; 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 2018	Page 4	

LIVE OAK NO. 2

Community Development District			General Fund		
				Exhibit "A"							
			Allocation of Fund Balances					
		AVAILABLE FUNDS							
							Amount			
										
		Beginning Fund Balance - Fiscal Year 2018	$	357,832			
		Net Change in Fund Balance - Fiscal Year 2018			-			
		Reserves - Fiscal Year 2018 Additions			31,182			
							
	Total Funds Available (Estimated) - 9/30/2018			389,014			
		ALLOCATION OF AVAILABLE FUNDS								
		Assigned Fund Balance					(1)		
		Operating Reserve - First Quarter Operating Capital			53,656			
		Reserves - Ponds	160,699						
		Reserves - Ponds - FY17 (Projected)	10,052						
		Reserves - Ponds - FY18 (Proposed)	31,182		201,933			
										
					Subtotal	255,589			
											
		Total Allocation of Available Funds			255,589			
							
	Total Unassigned (undesignated) Cash	$	133,425			

Notes

(1) Represents approximately 3 months of operating expenditures

Annual Operating and Debt Service Budget	Page 5		
			
Fiscal Year 2018			

Live Oak No. 2

Community Development District

Debt Service Budget

Fiscal Year 2018

LIVE OAK NO. 2

Community Development District									Debt Service Series 2016 Fund		
Summary of Revenues, Expenditures and Changes in Fund Balances					
			Fiscal Year 2018 Proposed Budget											
								ADOPTED			ACTUAL		PROJECTED			TOTAL			ANNUAL		
		ACTUAL		ACTUAL			BUDGET			THRU			MAY-		PROJECTED		BUDGET		
ACCOUNT DESCRIPTION		FY 2015			FY 2016			FY 2017			APR-2017		SEP-2017			FY 2017			FY 2018		
REVENUES																							
Interest - Investments	$	-	$	198	$	-	$	437	$	303	$	740	$	-		
Special Assmnts- Tax Collector			-			30,587			601,171			588,699			11,755			600,454			600,454		
Special Assmnts- Prepayment			-			8,841			-			-			-			-			-		
Special Assmnts- Discounts			-			339			(24,047)			(22,707)			-			(22,707)			(24,018)		
																							
TOTAL REVENUES			-			39,965			577,124			566,429			12,058			578,487			576,436		
EXPENDITURES																							
Administrative																							
Misc-Assessmnt Collection Cost			-			(3,481)			12,023			11,320			235			11,555	$	12,009		
																							
Total Administrative			-			(3,481)			12,023			11,320			235			11,555			12,009		
Other Uses																							
Cost of Issuance			-			111,165			-			-			-			-			-		
DS Bond Discount			-			2,958			-			-			-			-			-		
Underwriter			-			114,300			-			-			-			-			-		
																							
Total Other Uses			-			228,423			-			-			-			-			-		
Debt Service																							
Principal Debt Retirement			-			25,000			310,000			-			310,000			310,000			315,000		
Prepayments Series			-			-			-			15,000			-			15,000			-		
Interest Expense Series			-			30,042			245,796			122,898			122,649			245,547			238,324		
Total Debt Service																							
			-			55,042			555,796			137,898			432,649			570,547			553,324		
																							
TOTAL EXPENDITURES			-			279,984			567,819			149,218			432,883			582,101			565,332		
Excess (deficiency) of revenues																							
Over (under) expenditures			-			(240,019)			9,305			417,211			(420,826)			(3,615)			11,104		
OTHER FINANCING SOURCES (USES)																							
Interfund Transfer - In			-			889,193			-			-			-			-			-		
Proceeds of Refunding Bonds			-			7,620,000			-			-			-			-			-		
Pymt to Escrow Acct-Refunding			-	(7,826,788)			-			-			-			-			-		
Balance			-			-			9,305			-			-			-			11,103		
																							
TOTAL OTHER SOURCES (USES)			-			682,405			9,305			-			-			-			11,103		
Net change in fund balance			-			442,386			9,305			417,211			(420,826)			(3,615)			11,103		
FUND BALANCE, BEGINNING			-			-			442,386			442,386			-			442,386			438,771		
FUND BALANCE, ENDING	$	-	$ 442,386	$	451,691	$	859,597	$	(420,826)	$	438,771	$	449,874		

Annual Operating and Debt Service Budget	Page 6		
Fiscal Year 2018			

LIVE OAK NO. 2

Community Development District

SPECIAL ASSESSMENT BONDS, SERIES 2016A

AMORTIZATION SCHEDULE

	Period	Principal	Coupon	Interest	Debt Service	Annual Debt		
	Ending					Service		

	11/1/2017			119,161.88	119,161.88			
	5/1/2018	315,000.00	2.250%	119,161.88	434,161.88	553,323.76		
	11/1/2018			115,618.13	115,618.13			
5/1/2019	320,000.00	2.250%	115,618.13	435,618.13	551,236.26		
11/1/2019			112,018.13	112,018.13			
5/1/2020	330,000.00	2.250%	112,018.13	442,018.13	554,036.26		
11/1/2020			108,305.63	108,305.63			
5/1/2021	335,000.00	2.000%	108,305.63	443,305.63	551,611.26		
11/1/2021			104,955.63	104,955.63			
5/1/2022	345,000.00	2.250%	104,955.63	449,955.63	554,911.26		
11/1/2022			101,074.38	101,074.38			
5/1/2023	355,000.00	2.600%	101,074.38	456,074.38	557,148.76		
11/1/2023			96,459.38	96,459.38			
5/1/2024	360,000.00	2.750%	96,459.38	456,459.38	552,918.76		
11/1/2024			91,509.38	91,509.38			
5/1/2025	375,000.00	3.125%	91,509.38	466,509.38	558,018.76		
11/1/2025			85,650.00	85,650.00			
5/1/2026	385,000.00	3.200%	85,650.00	470,650.00	556,300.00		
11/1/2026			79,490.00	79,490.00			
5/1/2027	400,000.00	3.300%	79,490.00	479,490.00	558,980.00		
11/1/2027			72,890.00	72,890.00			
5/1/2028	410,000.00	3.700%	72,890.00	482,890.00	555,780.00		
11/1/2028			65,305.00	65,305.00			
5/1/2029	425,000.00	3.700%	65,305.00	490,305.00	555,610.00		
11/1/2029			57,442.50	57,442.50			
5/1/2030	445,000.00	3.700%	57,442.50	502,442.50	559,885.00		
11/1/2030			49,210.00	49,210.00			
5/1/2031	460,000.00	3.700%	49,210.00	509,210.00	558,420.00		
11/1/2031			40,700.00	40,700.00			
5/1/2032	480,000.00	4.000%	40,700.00	520,700.00	561,400.00		
11/1/2032			31,100.00	31,100.00			
5/1/2033	495,000.00	4.000%	31,100.00	526,100.00	557,200.00		
11/1/2033			21,200.00	21,200.00			
5/1/2034	520,000.00	4.000%	21,200.00	541,200.00	562,400.00		
11/1/2034			10,800.00	10,800.00			
5/1/2035	540,000.00	4.000%	10,800.00	550,800.00	561,600.00		
11/1/2035							
		7,295,000.00		2,725,780.08	10,020,780.08			

Annual Operating and Debt Service Budget	Page 7		
Fiscal Year 2018			

Live Oak No. 2

Community Development District

Supporting Budget Schedules

Fiscal Year 2018

LIVE OAK NO. 2

Community Development District	All Funds

Comparison of Assessment Rates

Fiscal Year 2018 vs. Fiscal Year 2017

		General Fund 001		Debt Service		Total Assessments per Unit		Total	
		FY 2018	FY 2017		FY 2018	FY 2017		FY 2018	FY 2017	Percent		Units	
Product										Change			
45'		$332.53	$332.53		$632.86	$632.86		$965.39	$965.39	0.0%		191	
50'		$332.53	$332.53		$717.24	$717.24		$1,049.77	$1,049.77	0.0%		328	
60'		$332.53	$332.53		$843.81	$843.81		$1,176.34	$1,176.34	0.0%		134	
75'		$332.53	$332.53		$1,096.95	$1,096.95		$1,429.48	$1,429.48	0.0%		74	
80'		$332.53	$332.53		$1,181.33	$1,181.33		$1,513.86	$1,513.86	0.0%		43	
												770	

Annual Operating and Debt Service Budget			
Fiscal Year 2018	Page 8