LIVE OAK NO. 2

Community Development District

Annual Operating and Debt Service Budget

Fiscal Year 2019

Version 1 - Adopted Budget

Adopted on 07/24/18

Prepared by:

~	IN,FRAMARK

~	INF'RASTRVCTVRFMANAGEME:MT SCRVICCS

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	

Live Oak No. 2

Community Development District

Operating Budget

Fiscal Year 2019

LIVE OAK NO. 2

Community Development District															General Fund	
Summary of Revenues, Expenditures and Changes in Fund Balances					
			Fiscal Year 2019 Adopted 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		

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

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

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

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			

Live Oak No. 2

Community Development District

Debt Service Budget

Fiscal Year 2019

LIVE OAK NO. 2												Debt Service Series 2016 Fund		
Community Development District												
Summary of Revenues, Expenditures and Changes in Fund Balances					
			Fiscal Year 2019 Adopted 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

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

Live Oak No. 2

Community Development District

Supporting Budget Schedules

Fiscal Year 2019

LIVE OAK NO. 2

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