LIVE OAK NO. 2 COMMUNITY DEVELOPMENT DISTRICT

May 19, 2020 AGENDA PACKAGE

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

May 12, 2020

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  Tuesday,  May  19,  2020  at  6:30  p.m.  virtually. Meeting URL: https://us02web.zoom.us/j/89578785176 Meeting ID: 895-7878-5176, or Call in 1-(800) 747-5150 Access code :2758201

Call to Order
Public Comment on Agenda Item
Consent Agenda
Approval of Minutes of the March 3, 2020 Meeting
Financial Report
Acceptance of Financial Audit for Fiscal Year Ending September 30, 2019
Staff Reports
Managers Report
Consideration of Resolution 2020-02, Approving the Proposed Budget for Fiscal Year 2021 and Setting a Public Hearing
Engineer
Pond 9-5 Discussion
Supervisors’ Requests
Audience Comments
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

Third Order of Business

3A.

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 Tuesday, March 3, 2020 at 11:00 a.m. in the Live Oak Clubhouse, 9401 Oak Preserve Boulevard, Tampa, Florida.

Present and constituting a quorum were:

Elizabeth Hubbard	Chairperson
Kathleen Thatcher	Vice Chairperson
Ronald Dell	Assistant Secretary
Richard Thatcher	Assistant Secretary Also present:
Andy Mendenhall	District Manager
Vincent Galiano	District Engineer
Nicholas Schreuder	Schreuder Inc.
Peter Schreuder	Schreuder Inc.

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
Approval of Minutes of the January 21, 2020 Meeting

ON MOTION by Ms. Hubbard seconded by Mr. Steele with all in favor the Consent Agenda was approved. 4-0

FOURTH ORDER OF BUSINESS	Staff Reports
Manager
Qualifying Information
Consideration of Resolution 2020-01

ON MOTION by Mr. Thatcher seconded by Ms. Thatcher with all in favor Resolution 2020-01, Confirming the District’s Use of the Hillsborough County Supervisor of Elections to Continue Conducting the District’s Election was approved. 4-0

Attorney
None.
Engineer
Pond 9-5 Discussion
o Schreuder Inc. was present and provided a presentation

ON MOTION by Ms. Hubbard seconded by Mr. Dell with all in favor, Schreuder Inc proposal was accepted in an amount not to exceed $70,000 . 4-0

SIXTH ORDER OF BUSINESS	Supervisors’ Requests
Mr. Thatcher asked how long the grant process normally takes?
Mr. Peter noted about year based on ranking.
Mr. Thatcher asked Mr. Mendenhall if he can provide a grant writing specialist to assist the Board.
He noted he will check into that.
Mr. Peter noted he will reach out TECO to confirm what can be done regarding electricity to the location.

SEVENTH ORDER OF BUSINESS	Audience Comments
None.

EIGHTH ORDER OF BUSINESS	Adjournment

unapproved

On MOTION by Ms. Hubbard seconded by Ms. Thatcher, with all in favor, the meeting was adjourned. 4-0

Elizabeth Hubbard Chairperson

unapproved
3

3B.

LIVE OAK NO. 2
Community Development District

Financial Report
April 30, 2020

Prepared by:

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

Notes	Page 9

LIVE OAK NO. 2
Community Development District

Financial Statements
(Unaudited)

April 30, 2020

Community Development District

Governmental Funds

Balance Sheet
April 30, 2020

ACCOUNT DESCRIPTION

GENERAL FUND

SERIES 2016 DEBT SERVICE
FUND	TOTAL

ASSETS

Cash - Checking Account	$	53,820	$	-	$	53,820	
Due From Other Funds	-	15,171	15,171	
Investments:				
Certificates of Deposit - 6 Months	103,565	-	103,565	
Money Market Account	468,036	-	468,036	
Reserve Fund	-	276,451	276,451	
Revenue Fund	-	624,505	624,505	
TOTAL ASSETS	$	625,421	$	916,127	$	1,541,548	

LIABILITIES				
Accounts Payable	$	235	$	-	$	235	
Accrued Expenses	1,570	-	1,570	
Due To Other Funds	15,171	-	15,171	
TOTAL LIABILITIES	16,976	-	16,976	

FUND BALANCES				
Restricted for:				
Debt Service	-	916,127	916,127	
Assigned to:				
Operating Reserves	53,197	-	53,197	
Reserves - Ponds	201,933	-	201,933	
Unassigned:	353,315	-	353,315	
TOTAL FUND BALANCES	$	608,445	$	916,127	$	1,524,572	
				
TOTAL LIABILITIES & FUND BALANCES	$	625,421	$	916,127	$	1,541,548	

Statement of Revenues, Expenditures and Changes in Fund Balances
For the Period Ending April 30, 2020

ANNUAL ADOPTED
ACCOUNT DESCRIPTION	BUDGET	
YEAR TO DATE BUDGET	
YEAR TO DATE ACTUAL	
VARIANCE ($) FAV(UNFAV)	

REVENUES				

Interest - Investments	
$	3,000	
$	1,750	
$	3,837	
$	2,087	
Interest - Tax Collector	-	-	168	168	
Special Assmnts- Tax Collector	253,093	248,688	247,301	(1,387)	
Special Assmnts- Discounts	(10,124)	(10,124)	(9,660)	464	
TOTAL REVENUES	245,969	240,314	241,646	1,332	

EXPENDITURES					

Administration					
P/R-Board of Supervisors	6,000	3,500	1,800	1,700	
FICA Taxes	459	268	138	130	
ProfServ-Arbitrage Rebate	600	350	-	350	
ProfServ-Dissemination Agent	1,000	583	-	583	
ProfServ-Engineering	15,000	8,750	21,582	(12,832)	
ProfServ-Legal Services	3,000	1,750	1,361	389	
ProfServ-Mgmt Consulting Serv	40,000	23,333	23,333	-	
ProfServ-Special Assessment	12,500	7,292	12,500	(5,208)	
ProfServ-Trustee Fees	3,971	-	1,885	(1,885)	
Auditing Services	3,500	-	-	-	
Postage and Freight	500	292	79	213	
Insurance - General Liability	8,593	6,445	7,812	(1,367)	
Printing and Binding	300	175	106	69	
Legal Advertising	900	525	334	191	
Miscellaneous Services	300	175	181	(6)	
Misc-Assessmnt Collection Cost	5,062	4,969	4,737	232	
Misc-Web Hosting	1,000	583	-	583	
Office Supplies	100	58	-	58	
Annual District Filing Fee	175	175	175	-	
Total Administration	102,960	59,223	76,023	(16,800)	

Field					
Contracts-Envirom'l Monitoring	3,200	1,867	2,400	(533)	
Contracts-Landscape	44,238	25,806	25,806	-	
Contracts-Lakes	16,596	9,681	9,681	-	

Statement of Revenues, Expenditures and Changes in Fund Balances
For the Period Ending April 30, 2020

ANNUAL ADOPTED
ACCOUNT DESCRIPTION	BUDGET	
YEAR TO DATE BUDGET	
YEAR TO DATE ACTUAL	
VARIANCE ($) FAV(UNFAV)	

R&M-Fence	
5,000	
2,917	
-	
2,917	
R&M-Lake	7,500	4,375	3,350	1,025	
R&M-Wetland Monitoring	8,000	4,667	-	4,667	
Misc-Contingency	26,065	15,205	640	14,565	
Reserve - Ponds	31,182	18,190	-	18,190	
Total Field	141,781	82,708	41,877	40,831	
					
TOTAL EXPENDITURES	244,741	141,931	117,900	24,031	

Excess (deficiency) of revenues					
Over (under) expenditures	1,228	98,383	123,746	25,363	

OTHER FINANCING SOURCES (USES)					
Contribution to (Use of) Fund Balance	1,228	-	-	-	
TOTAL FINANCING SOURCES (USES)	1,228	-	-	-	

Net change in fund balance	
$	1,228	
$	98,383	
$	123,746	
$	25,363	

FUND BALANCE, BEGINNING (OCT 1, 2019)	
484,699	
484,699	
484,699		
FUND BALANCE, ENDING	$	485,927	$	583,082	$	608,445		

Community Development District	Series 2016 Debt Service Fund

Statement of Revenues, Expenditures and Changes in Fund Balances
For the Period Ending April 30, 2020

ANNUAL
ADOPTED	YEAR TO DATE	YEAR TO DATE	VARIANCE ($)
ACCOUNT DESCRIPTION	BUDGET	BUDGET	ACTUAL	FAV(UNFAV)

REVENUES

Interest - Investments	$	-	$	-	$	3,246	$	3,246	
Special Assmnts- Tax Collector	600,454	573,843	586,711	12,868	
Special Assmnts- Discounts	(24,018)	(22,954)	(22,917)	37	
TOTAL REVENUES	576,436	550,889	567,040	16,151	

EXPENDITURES					

Administration					
Misc-Assessmnt Collection Cost	12,009	11,477	11,238	239	
Total Administration	12,009	11,477	11,238	239	

Debt Service					
Principal Debt Retirement	330,000	-	-	-	
Principal Prepayments	-	-	5,000	(5,000)	
Interest Expense	223,836	111,918	111,918	-	
Total Debt Service	553,836	111,918	116,918	(5,000)	
					
TOTAL EXPENDITURES	565,845	123,395	128,156	(4,761)	

Excess (deficiency) of revenues Over (under) expenditures	

10,591	

427,494	

438,884	

11,390	

OTHER FINANCING SOURCES (USES)					

Contribution to (Use of) Fund Balance	10,591	
-	
-	
-	
TOTAL FINANCING SOURCES (USES)	10,591	-	-	-	

Net change in fund balance	
$	10,591	
$	427,494	
$	438,884	
$	11,390	

FUND BALANCE, BEGINNING (OCT 1, 2019)	
477,243	
477,243	
477,243		
FUND BALANCE, ENDING	$	487,834	$	904,737	$	916,127		

LIVE OAK NO. 2
Community Development District

Supporting Schedules

April 30, 2020

Community Development District

Non-Ad Valorem Special Assessments
(Hillsborough County Tax Collector - Monthly Collection Distributions) For the Fiscal Year Ending September 30, 2020

	ALLOCATION BY FUND	

Date Received	
Net Amount Rcv'd	Discount / (Penalties)
Amount	
Tax Coll Cost	
Prop Appr Cost	Gross Amount
Received	
General Fund	
Debt Service Fund**	

Assessments Levied FY '20				
$853,548	
$253,094	
$600,454	
Allocation %				100%	30%	70%	
11/05/19	$	6,498	$	355	$	133	$	-	$	6,986	$	2,071	$	4,914	
11/15/19	38,044	1,618	776	-	40,438	11,991	28,447	
11/22/19	26,069	1,108	532	-	27,709	8,216	19,493	
12/06/19	631,988	26,868	12,898	-	671,754	199,188	472,566	
12/12/19	39,563	1,621	807	-	41,992	12,451	29,541	
01/07/20	20,103	722	410	-	21,236	6,297	14,939	
02/05/20	6,982	155	142	-	7,279	2,158	5,121	
03/04/20	6,273	128	74	-	6,476	1,920	4,555	
04/04/20	9,940	-	202	-	10,142	3,007	7,135	
-	-	-	-	-	-	-	

TOTAL	
$	785,461	
$	32,577	
$	15,975	
$	-	
$	834,012	
$	247,301	
$	586,711	

% COLLECTED	98%	98%	98%	
TOTAL O/S	$	19,536 $	5,793 $	13,743	

LIVE OAK NO. 2						All Funds	
Community Development District							

Cash and Investment Report
April 30, 2020					
General Fund							

Account Name	
Bank Name	
Investment Type	
Maturity	
Yield		
Balance	
Checking Account-Operating	SunTrust	Checking Account	n/a	0.00%		$53,820	
Certificate of Deposit	BankUnited	6 MO CD - #9097	07/30/20	2.10%	('1)	103,565	
MMA-0186	BankUnited	Money Market Account	n/a	0.78%	('1)	468,036	
Total-GF	 	$625,421 	

Debt Service Funds			

Account Name	
Bank Name	
Investment Type	
Maturity	
Yield		
Balance	
Series 2016 Reserve Fund	US Bank	US Bank Open Ended CP	n/a	0.02%	('1)	276,451	
Series 2016 Revenue Fund	US Bank	US Bank Open Ended CP	n/a	0.02%	('1)	624,505	
				Total-DS		$901,661	
							
Total	 	$1,527,083 	

('1) This percentage can change on daily basis.

Bank Reconciliation

Bank Account No.	9534
Statement No.	04-2020
Statement Date	4/30/2020

SunTrust Bank N.A. GF

G/L Balance (LCY)	53,819.97
G/L Balance	53,819.97
Positive Adjustments	0.00

Subtotal	53,819.97
Negative Adjustments	0.00

Statement Balance	53,819.97
Outstanding Deposits	0.00

Subtotal	53,819.97
Outstanding Checks	0.00
Differences	0.00

Ending G/L Balance	53,819.97	Ending Balance	53,819.97

Difference	0.00

Posting Date

Document Type

Document
No.	Description	Amount

Cleared
Amount	Difference

LIVE OAK NO. 2 COMMUNITY DEVELOPMENT DISTRICT

Payment Register by Fund
For the Period from 2/1/2020 to 4/30/2020 (Sorted by Check / ACH No.)

Fund No.	Check / ACH No.	Date	Payee	Invoice No.	Payment Description	Invoice / GL Description	G/L Account #	Amount Paid	

GENERAL FUND - 001

001	003856	02/04/20	AMERICAN ECOSYSTEMS, INC	2002201	FEB WATER MGMT SVCS	Contracts-Lakes	534084-53901	$1,383.00	
001	003857	02/04/20	LANDSCAPE MAINTENANCE	149894	FEB 2020 GROUNDS MAINT	Contracts-Landscape	534050-53901	$3,686.50	
001	003858	02/04/20	SCHREUDER, INC.	20-101	ASSESS SURFACE WATER DECLINES	ProfServ-Engineering	531013-51501	$11,422.67	
001	003859	02/14/20	FED EX	6-916-45093	JAN POSTAGE	Postage and Freight	541006-51301	$18.08	
001	003860	02/27/20	INFRAMARK, LLC	48995	FEB 2020 MGMT FEES	ProfServ-Mgmt Consulting Serv	531027-51201	$3,333.33	
001	003860	02/27/20	INFRAMARK, LLC	48995	FEB 2020 MGMT FEES	Printing and Binding	547001-51301	$31.00	
001	003861	03/04/20	AMERICAN ECOSYSTEMS, INC	2003202	MARCH WATER MGMT TRTMNT	MAR WATER MGMT SVCS	534084-53901	$1,383.00	
001	003862	03/04/20	LANDSCAPE MAINTENANCE	150482	MARCH 2020 LANDSCAPE MAINT	Contracts-Landscape	534050-53901	$3,686.50	
001	003863	03/04/20	TIMES PUBLISHING	0000064426	NOTICE OF MEETING 2/21/20	Legal Advertising	548002-51301	$333.50	
001	003864	03/10/20	DRIGGERS ENGINEERING SERVICE	EO12353	ENGG SVCS THRU FEB 2020	ProfServ-Engineering	531013-51501	$4,250.00	
001	003865	03/10/20	FLORIDA NATIVES NURSERY, INC	17037	REMOVE EXOTIC SPECIES	Contracts-Envirom'l Monitoring	534017-53901	$800.00	
001	003870	03/13/20	KING ENGINEERING ASSOC. INC.	109296	ENGG SVCS THRU FEB 2020	ENGG SVCS THU DEC 2019	531013-51501	$1,230.00	
001	003871	03/26/20	INFRAMARK, LLC	49766	MAR MGMT FEES	MARCH 2020 MGMT FEES	531027-51201	$3,333.33	
001	003871	03/26/20	INFRAMARK, LLC	49766	MAR MGMT FEES	MARCH 2020 MGMT FEES	547001-51301	$16.00	
001	003871	03/26/20	INFRAMARK, LLC	49766	MAR MGMT FEES	MARCH 2020 MGMT FEES	541006-51301	$7.00	
001	003872	04/02/20	LANDSCAPE MAINTENANCE	151210	APRIL LANDSCAPE MAINT	APRIL 2020 LANDSCAPE MAINT	534050-53901	$3,686.50	
001	003873	04/09/20	AMERICAN ECOSYSTEMS, INC	2004195	APRIL WATER MGMT TRTMNT	APRIL 2020 WATER MGMT SVCS	534084-53901	$1,383.00	
001	003874	04/09/20	FED EX	6-972-57062	MAR 2020 POSTAGE	Postage and Freight	541006-51301	$17.40	
001	003876	04/09/20	STRALEY ROBIN VERICKER	18192	GEN MATTERS THRU MARCH 2020	ProfServ-Legal Services	531023-51401	$165.00	
001	003877	04/16/20	INFRAMARK, LLC	50652	APRIL MGMT FEES	ProfServ-Mgmt Consulting Serv	531027-51201	$3,333.33	
001	003877	04/16/20	INFRAMARK, LLC	50652	APRIL MGMT FEES	Postage and Freight	541006-51301	$5.00	
001	003877	04/16/20	INFRAMARK, LLC	50652	APRIL MGMT FEES	Printing and Binding	547001-51301	$34.00	
001	003878	04/23/20	FED EX	6-985-30138	APRIL POSTAGE	Postage and Freight	541006-51301	$17.20	
001	256	03/20/20	LIVE OAK NO. 2 CDD	031720-2020	TRFR FR MMA TO CHK 9534	Cash with Fiscal Agent	103000	$40,000.00	
001	003866	03/12/20	ELIZABETH J. HUBBARD	PAYROLL	March 12, 2020 Payroll Posting			$184.70	
001	003867	03/12/20	KATHLEEN M. THATCHER	PAYROLL	March 12, 2020 Payroll Posting			$184.70	
001	003868	03/12/20	CLIFFORD R. THATCHER	PAYROLL	March 12, 2020 Payroll Posting			$183.87	
001	003869	03/12/20	RONALD L. DELL	PAYROLL	March 12, 2020 Payroll Posting			$184.70	
							Fund Total	$84,293.31	

SERIES 2016 DEBT SERVICE FUND - 202

202	003875	04/09/20   LIVE OAK 2 U.S. BANK, NA- CDD	040720-202	TRFR FY20 ASSESSMENTS	Due From Other Funds	131000	$19,053.64

Fund Total	$19,053.64

$103,346.95

Total Checks Paid

LIVE OAK NO. 2
Community Development District	Governmental Funds

Notes to the Financial Statements

Assets

Due from Other Funds - Assessment due from General Fund to Debt Service .
The District has one Money Market Account and one CD. See cash report for additional information.

Liabilities

Accounts Payable: represents invoices for current month but not paid in current month.

Accrued Expenses represents monthly invoices for current month but not paid in current month .

Due to Other Funds: Assessment due to Debt Service.

Fund Balance

The Reserves for FY2020 have been assigned.

General Fund

Special Assessments are 98% collected.

ProfServ - Special Assessment: Paid in full.

Insurance-General Liability: Paid in full.

ProfServ Engineering: It is high due to conducting additional data collection program.

Total Expenditures are 48.17% of the Annual Adopted Budget.

Debt Service Fund

Special Assessments are 98% collected.

Interest Expense of $ 111,918 was paid in November .

3C.

Live Oak No. 2 Community Development District

ANNUAL FINANCIAL REPORT

September 30, 2019

Live Oak No. 2 Community Development District ANNUAL FINANCIAL REPORT
September 30, 2019

 TABLE OF CONTENTS

FINANCIAL SECTION

Page
 Number

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

r�tt Berger, Toombs, Elam, CO:, Gaines & Frank
Certified Public Accountants	PL
600 Citrus Avenue
Suite 200
Fort Pierce, Florida 34950
772/461-6120 // 461-1155

Agenda Page25

FAX: 772/468-9278

REPORT OF INDEPENDENT AUDITORS

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 Live Oak No. 2 Community Development District as of and for the year ended September 30, 2019, and the related notes to financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements

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

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit.  We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Accounting Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance 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 judgment, including the assessment of the risks of material misstatement of the financial 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 financial statements in order to design audit procedures that are appropriate in the 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 we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Member AICPA

Fort Pierce / Stuart
Member AICPA- D1iv-ision  For CPA  Firms Private Companies Practice Section

Member FICPA

��tt Berger, Toombs, Elam,
,OJ Gaines & Frank
CertifiedPublicAccountants PL

Agenda Page26

To the Board of Supervisors
Live Oak No. 2 Community Development District
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and each major fund of Live Oak No. 2 Community Development District, as of September 30, 2019, and the respective changes in financial position and the budgetary comparison for the General Fund for the year then ended in conformity with accounting principles generally accepted in the United 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 7, 2020 on our consideration of the District’s internal 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’s internal c

ontrol over financial reporting and compliance.

Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL
Fort Pierce, Florida May 7, 2020

- 2 -

Live Oak No. 2 Community Development District MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Year Ended September 30, 2019

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.

Live Oak No. 2 Community Development District MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Year Ended September 30, 2019

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, 2019.

The District’s total assets and deferred outflows of resources exceeded total liabilities by
$15,085,993  (net  position).	The   District’s  net   investment   in   capital assets  was
$14,493,485. Restricted net position is $107,810. Unrestricted net position is $484,698.

Governmental activities revenues totaled $832,805 while governmental activities expenses totaled $1,016,306.

Live Oak No. 2 Community Development District MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Year Ended September 30, 2019

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	
	Governmen 2019	tal Activities
2018

$	414,141	

Current assets	
$	504,900		
Restricted assets	468,803	451,645	
Capital assets	   	20,701,836 	   	21,298,649 
   	22,164,435 

 		179,529 

422,034	
Total Assets	   	21,675,539 		
Deferred outflows of resources	 		168,073 		
Current liabilities	435,028		
Non-current liabilities	 		6,322,591 	 		6,652,436 
 		7,074,470 	
Total Liabilities	 		6,757,619 		

Net position - net investment in			
capital assets	14,493,485	14,781,909	
Net position - restricted	107,810	82,978	
Net position - unrestricted

Total Net Position	 		484,698 

$ 15,085,993	 		404,607 

$ 15,269,494	

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.

Live Oak No. 2 Community Development District MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Year Ended September 30, 2019

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	
	 		Governmen 2019	tal Activities	
2018	
Revenues			
Charges for services	$	821,641	$	823,852	
Miscellaneous revenues	518	-	
Investment earnings	10,646	4,851
 		828,703 	
Total Revenues	 		832,805 		
Expenses			
General government	102,207	102,308	
Physical environment	667,566	709,850	
Interest on long-term debt	 		246,533 	 		254,690 
1,066,848	
Total Expenses	1,016,306		

Change in Net Position	
(183,501)	
(238,145)	
Net Position - Beginning of Year

Net Position - End of Year	 	15,269,494

$	15,085,993 	15,507,639

 $	15,269,494 	

The decrease in physical environment is due to a decrease in pond maintenance and wetland monitoring in the current year.

Live Oak No. 2 Community Development District MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Year Ended September 30, 2019

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, 2019 and 2018.

 		Description				Governmental Activities
2019	2018	

Land and improvements		
$	
7,616,900		
$	
7,616,900	
Infrastructure			17,904,401			17,904,401	
Less: accumulated depreciation

Total Capital Assets (Net)	

$		(4,819,465)

20,701,836 	

$		(4,222,652)

21,298,649 	
Capital asset activity consisted of depreciation of $596,813 in the current year.

 General Fund Budgetary Highlights

Budgeted expenditures exceeded actual expenditures primarily because contingency and reserve expenditures were less than anticipated.

There were no amendments to the September 30, 2019 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, 2019 is $6,655,000.

Live Oak No. 2 Community Development District MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Year Ended September 30, 2019

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

 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 2020.

 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.

Live Oak No. 2 Community Development District STATEMENT OF NET POSITION
September 30, 2019

	Governmental
Activities	
ASSETS		
Current Assets		
Cash and cash equivalents	$	393,885	
Investments at fair value	102,486	
Prepaid expenses	1,885	
Due from other governments	 		6,644 	
Total Current Assets	 		504,900 	

Non-current Assets Restricted:
Investments, at fair value
Capital assets, not being depreciated: Land and improvements
Capital assets, being depreciated:

468,803

7,616,900

Infrastructure		17,904,401	
Less: accumulated depreciation	 		(4,819,465) 	
Total Non-current Assets	 		21,170,639 	
Total Assets	 		21,675,539 	

DEFERRED OUTFLOWS OF RESOURCES
Deferred amount on refunding	 		168,073 

Total Assets and Deferred Outflows of Resources

LIABILITIES
Current Liabilities

 		21,843,612 

Accounts payable	11,763	
Accrued interest	93,265	
Bonds payable, current portion	 			330,000 	
Total Current Liabilities	 			435,028 	
Non-current Liabilities		
Bonds payable, net	 			6,322,591 	
Total Liabilities	 			6,757,619 	
NET POSITION		
Net investment in capital assets	14,493,485	
Restricted for debt service	107,810	
Unrestricted	 			484,698 	
Total Net Position	 $	15,085,993 	

See accompanying notes to financial statements.

Live Oak No. 2 Community Development District STATEMENT OF ACTIVITIES
For the Year Ended September 30, 2019

			Net (Expense)	
			Revenues and	
	Program		Changes in	
	Revenues		Net Position	
	Charges for		Governmental	
 Functions/Programs	Expenses	Services		Activities	
Governmental Activities				
General government	$	(102,207)	$	143,970		$	41,763	
Physical environment	(667,566)	99,663		(567,903)	
Interest on long-term debt	 	(246,533)	578,008		331,475	
Total Governmental Activities	  $	(1,016,306)	 $	821,641 		(194,665)	

General revenues:			
	Investment earnings		10,646	
	Miscellaneous revenues		 	518 
11,164

(183,501)	
	Total General Revenues			
	
Change in Net Position			
	Net Position - October 1, 2018
Net Position - September 30, 2019		 	15,269,494 
  $	15,085,993 	

Live Oak No. 2 Community Development District BALANCE SHEET –
GOVERNMENTAL FUNDS
September 30, 2019

A

General	
Series 2016 Debt Service	Total Governmental
Funds	
SSETS
Cash and cash equivalents	$	393,885	$	-	$	393,885	
Investments, at fair value	102,486	-	102,486	
Due from other funds	-	3,765	3,765	
Due from other governments	1,970	4,674	6,644	
Prepaid expenses	1,885	-	1,885	
estricted assets:
Investments, at fair value	-	468,803	468,803	
Total Assets	  $	500,226 		  $	477,242 		  $	977,468 	

R

LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable and accrued liabilities	$	11,763		$	-	$	11,763	
Due to other funds	3,765		-	3,765	
TotalLiabilities	15,528		
-	15,528	

Fund Balances
Nonspendable-prepaid expenses	1,885		-		1,885	
Restricted - debt service	-		477,242		477,242	
Assigned:
Pond maintenance	
201,933		
-		
201,933	
First quarter operations	53,197		-		53,197	
Unassigned	227,683		-		227,683	
Total Fund Balances	484,698		477,242		961,940	

Total Liabilities and Fund Balances	
  $	500,226 		
  $	477,242 		
  $	977,468 	

Live Oak No. 2 Community Development District RECONCILIATION OF TOTAL GOVERNMENTAL FUND BALANCES TO NET POSITION OF GOVERNMENTAL ACTIVITIES
September 30, 2019

Total Governmental Fund Balances	$	961,940	
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.		

7,616,900	
Capital assets being depreciated, infrastructure, $17,904,401, net of accumulated depreciation, $(4,819,465), used in governmental activities are not current financial resources and therefore, are not reported at the governmental fund level.		

13,084,936	
Long-term liabilities, including bonds payable, $(6,655,000), net of bond discounts, net, $2,409, are not due and payable in the current period and therefore, are not reported at the governmental fund level.		

(6,652,591)	
Deferred outflows of resources are not current financial resources and therefore, are not reported at the governmental fund level.		
168,073	
Accrued interest expense for long-term debt is not a current financial use and therefore, is not reported at the governmental fund level.	
 			(93,265) 	
Net Position of Governmental Activities	 $		15,085,993 	

Live Oak No. 2 Community Development District
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS
For the Year Ended September 30, 2019

						Total	
				Series 2016		Governmental	
	General		Debt Service		Funds	
Revenues							
Special assessments	$	243,633		$	578,008		$	821,641	
Investment earnings		8,900		1,746		10,646	
Miscellaneous revenues	 		518 		 		- 		 		518 
 		832,805 	
Total Revenues	 		253,051 		 		579,754 			
Expenditures							
Current							
General government		102,207		-		102,207	
Physical environment		70,753		-		70,753	
Debt Service							
Principal		-		320,000		320,000	
Interest		-		231,036		231,036	
Other	 		- 		 		6,886 		 		6,886 
 		730,882 	
Total Expenditures	 		172,960 		 		557,922 			

Net change in fund balances		
80,091		
21,832		
101,923	
Fund Balances - October 1, 2018

Fund Balances - September 30, 2019	 	 	

$		404,607 

484,698 	

 	 		455,410 

$	477,242 	

 	 		860,017 

$	961,940 	

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, 2019

Net Change in Fund Balances - Total Governmental Funds	$	101,923	
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.		

(596,813)	
Repayments of bond principal are expenditures in the governmental funds, but the repayments reduce long-term liabilities in the Statement of Net Position.		
320,000	
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.		

(11,456)	
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.		

(155)	
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.	

 		3,000 	
Change in Net Position of Governmental Activities	 	$		(183,501) 	

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, 2019

										Variance With	
										Final Budget	
	Original			Final					Positive	
		Budget			Budget			Actual		(Negative)	
Revenues											
Special assessments	$	242,970		$	242,970		$	243,633		$	663	
Investment earnings		1,000			1,000			8,900		(482)	
Miscellaneous revenues	 		- 	 		- 	 		518 		 		518 
 		699 	
Total Revenues	    	243,970 	    	243,970 	    	253,051 			
Expenditures											
Current											
General government		103,254			103,254			102,207		1,047	
Physical environment	    	140,716 	    	140,716 	 		70,753 		 		69,963 
 		71,010 	
Total Expenditures	    	243,970 	    	243,970 	    	172,960 			
Net change in fund balances	 		- 	 		- 	 		80,091 	

 	 		80,091 

 		1,232 

$	81,323 	
Fund Balances - October 1, 2018

Fund Balances - September 30, 2019    	  

$ 	403,375 

403,375 	

$ 	403,375 

403,375 	

$ 	404,607 

484,698 			

Live Oak No. 2 Community Development District NOTES TO FINANCIAL STATEMENTS
September 30, 2019

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.

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.

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

Live Oak No. 2 Community Development District NOTES TO FINANCIAL STATEMENTS
September 30, 2019

NOTE A – SUMMARY OF ACCOUNTING POLICIES (CONTINUED)

Measurement Focus and Basis of Accounting (Continued)

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.

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.

Live Oak No. 2 Community Development District NOTES TO FINANCIAL STATEMENTS
September 30, 2019

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.

Live Oak No. 2 Community Development District NOTES TO FINANCIAL STATEMENTS
September 30, 2019

NOTE A – SUMMARY OF ACCOUNTING POLICIES (CONTINUED)

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.

Basis of Presentation

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.

Live Oak No. 2 Community Development District NOTES TO FINANCIAL STATEMENTS
September 30, 2019

NOTE A – SUMMARY OF ACCOUNTING POLICIES (CONTINUED)

Assets, Liabilities, and Net Position or Equity

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.

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:

Direct obligations of the United States Treasury;

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

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

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.

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.

Live Oak No. 2 Community Development District NOTES TO FINANCIAL STATEMENTS
September 30, 2019

NOTE A – SUMMARY OF ACCOUNTING POLICIES (CONTINUED)

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

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.

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.

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.

Live Oak No. 2 Community Development District NOTES TO FINANCIAL STATEMENTS
September 30, 2019

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, $961,940, differs from “net position” of governmental activities, $15,085,993, 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		 			(4,819,465) Total	 $		20,701,836 

 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, 2019 were:

Bonds payable	$	(6,655,000)	
Bond discount, net	 			2,409 	
Total	 $	(6,652,591)	

 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	$	168,073

Live Oak No. 2 Community Development District NOTES TO FINANCIAL STATEMENTS
September 30, 2019

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

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	 $	(93,265)

Explanation of Differences Between the Governmental Fund Operating Statements and the Statement of Activities
The “net change in fund balances” for government funds, $101,923, differs from the “change in net position” for governmental activities, $(183,501), 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	 $	(596,813)

 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	$	320,000	
Amortization of bond discount	 			(155)	
Total	 $	319,845 	

Live Oak No. 2 Community Development District NOTES TO FINANCIAL STATEMENTS
September 30, 2019

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

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	$	3,000	
Decrease in deferred amount on refunding	 		(11,456)	
Total	 $	(8,456)	
NOTE C – CASH AND INVESTMENTS		
All deposits are held in qualified public depositories and balance sheet as cash and investments.	are included on the accompanying	

 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, 2019, the District's bank balance was $417,896 and the carrying value was $393,885. 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.

Live Oak No. 2 Community Development District NOTES TO FINANCIAL STATEMENTS
September 30, 2019

NOTE C – CASH AND INVESTMENTS (CONTINUED)

As of September 30, 2019, the District had the following investments and maturities:

 		Investment		 Maturities 	 	Fair Value		
Commercial Paper	N/A	$	468,803	
Certificate of Deposit Total	01/2020		102,486	
	 	$		571,289 	

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, 2019, 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 82% and the certificate of deposit is 18% of the District’s total investments.
The types of deposits and investments and their level of risk exposure as of September 30, 2019 were typical of these items during the fiscal year ended. The District considers any decline in fair value for certain investments to be temporary.

Live Oak No. 2 Community Development District NOTES TO FINANCIAL STATEMENTS
September 30, 2019

NOTE D – SPECIAL ASSESSMENT REVENUES

Special assessment revenues recognized for the 2018-2019 fiscal year were levied in October 2018. 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, 2019 was as follows:

		October 1,									September 30,	
		2018									2019	
		Balance			Additions			Deletions			Balance	
 Governmental Activities:												
Capital assets, not being depreciated:												
Land and improvements	 

Capital assets, being depreciated:	$		7,616,900 	 	$			- 	 	$		- 	 	$	7,616,900 	
Infrastructure		17,904,401				-			-		17,904,401	

Less accumulated depreciation for:												
Infrastructure
Total Capital Assets Depreciated, Net Governmental Activities Capital Assets	 	  

$ 	(4,222,652) 

13,681,749

21,298,649 	

 	  

$ 	(596,813) 

(596,813)

(596,813) 	

 	 	

$		- 

-

- 	

 	       (4,819,465) 

13,084,936

$ 20,701,836 	

Depreciation in the amount of $596,813 was charged to physical environment.

Live Oak No. 2 Community Development District NOTES TO FINANCIAL STATEMENTS
September 30, 2019

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, 2019:

	Balance			Balance	
	October 1,			September 30,	
	2018	  	Additions		  	Deletions		2019	
Special Assessment Refunding	
Bonds, Series 2016	 	$ 6,975,000 	 $	-   	$	320,000   	$ 6,655,000 	

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 $330,000.	

$	6,655,000	
Bond discount, net	 			(2,409)	
Bonds Payable, Net	$	6,652,591 	

The annual requirements to amortize the principal and interest of bonded debt outstanding as of September 30, 2019 are as follows:

Year Ending										
September 30,			Principal			Interest			Total	
2020		$	330,000		$	223,836		$	553,836	
2021			335,000			216,411			551,411	
2022			345,000			209,711			554,711	
2023			355,000			201,949			556,949	
2024			360,000			192,719			552,719	
2025-2029			1,995,000			788,689			2,783,689	
2030-2034			2,400,000			398,105			2,798,105	
2035

Totals			535,000			21,400			556,400	
	 	$		6,655,000 	 	$		2,252,820 	 	$		8,907,820 	

Live Oak No. 2 Community Development District NOTES TO FINANCIAL STATEMENTS
September 30, 2019

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:
 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      $	276,451      $	276,167 	

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.

NOTE H – RELATED PARTIES
Two members of the Board of Supervisors for the District are immediate family members.

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

Agenda Page53

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

To the Board of Supervisors
Live Oak No. 2 Community Development District 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 Auditing Standards issued by the Comptroller General of the United States, the financial statements of Live Oak No. 2 Community Development District, as of and for the year ended September 30, 2019, and the related notes to the financial statements, and have issued our report thereon dated May 7, 2020.

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 statements, but not for the purpose of expressing an opinion on the effectiveness of Live Oak No. 2 Community Development District’s internal control. Accordingly, we do not express an 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's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a 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 limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

Member AICPA

Fort Pierce / Stuart
Member AICPA  D- i2vis9io-n  For CPA  Firms Private Companies Practice Section

Member FICPA

��tt Berger, Toombs, Elam,
,OJ Gaines & Frank
CertifiedPublicAccountants PL

Agenda Page54

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

Compliance and Other Matters

As part of obtaining reasonable assurance about whether Live Oak No. 2 Community Development District's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such 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 & Frank Certified Public Accountants PL
Fort Pierce, Florida May 7, 2020

- 30 -

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

Agenda Page55

MANAGEMENT LETTER

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

We have audited the financial statements of the Live Oak No. 2 Community Development District as of and for the year ended September 30, 2019, and have issued our report thereon dated May 7, 2020.
Auditor’s Responsibility

We conducted our audit in accordance with auditing standards generally accepted in the United States; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States and Chapter 10.550, Rules of the Florida Auditor General.
Other Reports and Schedule

We have issued our 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 and our Independent Auditor’s Report 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 7, 2020, 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 or not corrective actions have been made to address findings and recommendations made in the preceding financial audit report. There were no findings or recommendations made in the preceding financial audit report.
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 Live Oak No. 2 Community Development District has met one or more of the conditions 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 Pierce / Stuart
Member AICPA  D- i3vis1io-n  For CPA  Firms Private Companies Practice Section

Member FICPA

��tt Berger, Toombs, Elam,
,OJ Gaines & Frank
CertifiedPublicAccountants PL

Agenda Page56

To the Board of Supervisors
Live Oak No. 2 Community Development District

Pursuant to Sections 10.554(1)(i)5.c. and 10.556(8), Rules of the Auditor General, we applied financial conditions assessment procedures as of September 30, 2018 for the Live Oak No. 2 Community Development District. It is management’s responsibility to monitor the Live Oak No. 2 Community Development District’s financial 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.

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.

Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL
Fort Pierce, Florida May 7, 2020

- 32 -

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

Agenda Page57

INDEPENDENT ACCOUNTANT’S REPORT/COMPLIANCE WITH SECTION 218.415, FLORIDA STATUTES

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

We have examined Live Oak No. 2 Community Development District's compliance with Section 218.415, Florida Statutes during the year ended September 30, 2019. 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’s compliance based on our examination.

Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about Live Oak No. 2 Community Development District’s compliance 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’s compliance with the specified requirements.

In our opinion, Live Oak No. 2 Community Development District complied, in all material respects, with the aforementioned requirements during the year ended September 30, 2019.

Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL
Fort Pierce, Florida May 7, 2020

Member AICPA

Fort Pierce / Stuart
- 33 -
Member AICPA Division For CPA Firms
Private Companies Practice Section

Member FICPA

Fourth Order of Business

4Ai.

RESOLUTION 2020-02

A RESOLUTION OF THE BOARD OF SUPERVISORS OF THE LIVE OAK NO. 2 COMMUNITY DEVELOPMENT DISTRICT APPROVING  THE  PROPOSED  BUDGET   FOR   FISCAL  YEAR  2020  AND  SETTING  A   PUBLIC   HEARING THEREON PURSUANT TO FLORIDA LAW

WHEREAS, the District Manager has heretofore prepared and submitted to the Board a proposed operating and/or debt service budget for Fiscal Year 2021; a copy of which is attached hereto, and
WHEREAS, the Board of Supervisors has considered said proposed budget and desires to set the required public hearing thereon;
NOW, THEREFORE BE IT RESOLVED BY THE BOARD OF SUPERVISORS OF THE LIVE OAK NO. 2 COMMUNITY DEVELOPMENT DISTRICT;

The budget proposed by the District Manager for Fiscal Year 2021 is hereby approved as the basis for conducting a public hearing to adopt said budget.
A public hearing on said approved budget is hereby declared and set for the following date, hour and place:

Date:	July 21, 2020

Hour:	6:30 p.m.

Place:	Live Oak Clubhouse
9401 Oak Preserve Boulevard Tampa, Florida

Notice of this public hearing shall be published in the manner prescribed in Florida Law.

Adopted this 19rd day of May, 2020.

Elizabeth Hubbard
Chairperson

Andrew P. Mendenhall, PMP
Assistant Secretary

LIVE OAK NO. 2
Community Development District

Annual Operating and Debt Service Budget
Fiscal Year 2021

Proposed Budget 05/19/2020

Prepared by:

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
2020-2021 Non-Ad Valorem Assessment Summary ………………………………………………………..	8

Live Oak No. 2
Community Development District

Operating Budget
Fiscal Year 2021

Community Development District	General Fund
Summary of Revenues, Expenditures and Changes in Fund Balances
Fiscal Year 2021 Proposed Budget

	ADOPTED	ACTUAL	PROJECTED	TOTAL	ANNUAL	
	ACTUAL	ACTUAL	BUDGET	THRU	MAY-	PROJECTED	BUDGET	
ACCOUNT DESCRIPTION	FY 2018	FY 2019	FY 2020	APR-2020	SEP-2020	FY 2020	FY 2021	

REVENUES								
Interest - Investments	$	3,218	$	8,698	$	3,000	$	3,837	$	1,000	$	4,837	$	3,000	
Interest - Tax Collector	545	202	-	168	-	168	50	
Special Assmnts- Tax Collector	256,049	253,094	253,094	247,301	5,793	253,094	253,094	
Special Assmnts- Discounts	(9,761)	(9,461)	(10,124)	(9,660)	-	(9,660)	(10,124)	
Other Miscellaneous Revenues	-	519	-	-	-	-	-	
TOTAL REVENUES	250,051	253,052	245,969	241,646	6,793	248,439	246,020	
EXPENDITURES
Administrative

P/R-Board of Supervisors	4,000	3,600	6,000	1,800	4,200	6,000	6,000	
FICA Taxes	306	275	459	138	321	458	459	
ProfServ-Arbitrage Rebate	600	600	600	-	600	600	600	
ProfServ-Dissemination Agent	1,000	-	1,000	-	1,000	1,000	1,000	
ProfServ-Engineering	20,739	23,518	15,000	21,582	3,500	25,082	25,000	
ProfServ-Legal Services	1,731	2,124	3,000	1,361	1,639	3,000	3,000	
ProfServ-Mgmt Consulting Serv	38,850	40,000	40,000	23,333	16,667	40,000	40,000	
ProfServ-Special Assessment	12,500	12,500	12,500	12,500	-	12,500	12,500	
ProfServ-Trustee Fees	3,971	1,887	3,971	1,885	2,086	3,971	3,971	
Auditing Services	3,500	3,500	3,500	-	3,500	3,500	3,700	
Postage and Freight	121	126	500	79	421	500	500	
Insurance - General Liability	8,310	7,812	8,593	7,812	-	7,812	8,593	
Printing and Binding	114	159	300	106	194	300	300	
Legal Advertising	2,795	1,638	900	334	566	900	900	
Miscellaneous Services	-	-	300	181	119	300	300	
Misc-Bank Charges	282	332	-	-	-	-		
Misc-Assessmnt Collection Cost	3,314	2,902	5,062	4,737	116	4,853	5,062	
Misc-Web Hosting	-	1,058	1,000	-	2,000	2,000	2,604	
Office Supplies	-	-	100	-	100	100	100	
Annual District Filing Fee	175	175	175	175	-	175	175	
Total Administrative	102,308	102,206	102,960	76,023	37,029	113,051	114,764	

Field								
Contracts-Envirom'l Monitoring	3,200	3,200	3,200	2,400	800	3,200	3,200	
Contracts-Landscape	44,238	44,863	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	225	1,175	5,000	-	2,500	2,500	5,000	
R&M-Lake	31,688	1,060	7,500	3,350	4,150	7,500	7,500	
R&M-Wetland Monitoring	7,350	-	8,000	-	8,000	8,000	8,000	
Misc-Contingency	9,739	3,859	26,065	640	25,425	26,065	15,740	
Reserve - Ponds	-	-	31,182	-	31,182	31,182	31,182	
Total Field	113,036	70,753	141,781	41,877	97,404	139,281	131,456	
								
TOTAL EXPENDITURES	215,344	172,959	244,741	117,900	134,433	252,332	246,220	

Net change in fund balance	
34,707	
80,093	
1,228	
123,746	
(127,640)	
(3,893)	
(200)	
FUND BALANCE, BEGINNING	
369,899	
404,606	
484,699	
484,699	
-	
484,699	
480,806	
FUND BALANCE, ENDING	$	404,606	$	484,699	$ 485,927	$ 608,445	$ (127,640)	$	480,806	$	480,806	

Annual Operating and Debt Service Budget	1
Fiscal Year 2021

Budget Narrative
Fiscal Year 2021

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.

Budget Narrative
Fiscal Year 2021

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.

Budget Narrative
Fiscal Year 2021

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.

Community Development District	General Fund

Exhibit "A"
Allocation of Fund Balances

AVAILABLE FUNDS		
	Amount	
Beginning Fund Balance - Fiscal Year 2021	$	480,806	
Net Change in Fund Balance - Fiscal Year 2021	(200)	
Reserves - Fiscal Year 2021 Additions	31,182	
Total Funds Available (Estimated) - 9/30/2021	511,788	

ALLOCATION OF AVAILABLE FUNDS		

Assigned Fund Balance		
Operating Reserve - First Quarter Operating Capital		53,760	
Reserves - Ponds - Prior Years	201,933		
Reserves - Ponds - FY2020	31,182		
Reserves - Ponds - FY2021 - Proposed	31,182	264,297	
Total Allocation of Available Funds		318,057	
			
Total Unassigned (undesignated) Cash		$	193,731	

(1)

Notes
(1) Represents approximately 3 months of operating expenditures

Live Oak No. 2
Community Development District

Debt Service Budget
Fiscal Year 2021

Community Development District	Debt Service Series 2016 Fund

Summary of Revenues, Expenditures and Changes in Fund Balances
Fiscal Year 2021 Proposed Budget

	ADOPTED	ACTUAL	PROJECTED	TOTAL	ANNUAL	
	ACTUAL	ACTUAL	BUDGET	THRU	MAY-	PROJECTED	BUDGET	
ACCOUNT DESCRIPTION	FY 2018	FY 2019	FY 2020	APR-2020	SEP-2020	FY 2020	FY 2021	

REVENUES								

Interest - Investments	
$	1,088	
$	1,747	
$	-	
$	3,246	
$	300	
$	3,546	
$	200	
Special Assmnts- Tax Collector	600,455	600,453	600,454	586,711	13,743	600,454	600,454	
Special Assmnts- Discounts	(22,891)	(22,445)	(24,018)	(22,917)	-	(22,917)	(24,018)	
TOTAL REVENUES	578,652	579,755	576,436	567,040	14,043	581,083	576,636	

EXPENDITURES
Administrative

Misc-Assessmnt Collection Cost	7,792	6,886	12,009	11,238	275	11,513	$	12,009	
Total Administrative	7,792	6,886	12,009	11,238	275	11,513	12,009	

Debt Service								
Principal Debt Retirement	315,000	320,000	330,000	-	330,000	330,000	335,000	
Prepayments Series	5,000	-	-	5,000	-	5,000	-	
Interest Expense Series	238,324	231,036	223,836	111,918	111,918	223,836	216,411	
Total Debt Service	558,324	551,036	553,836	116,918	441,918	558,836	551,411	
								
TOTAL EXPENDITURES	566,116	557,922	565,845	128,156	442,193	570,349	563,419	

Excess (deficiency) of revenues								
Over (under) expenditures	12,536	21,833	10,591	438,884	(428,150)	10,734	13,216	

OTHER FINANCING SOURCES (USES)								
Contribution to (Use of) Fund Balance	
-	-	
10,591	
-	-	-	
13,215	
TOTAL OTHER SOURCES (USES)	-	-	10,591	-	-	-	13,215	

Net change in fund balance	
12,536	
21,833	
10,591	
438,884	
(428,150)	
10,734	
13,215	

FUND BALANCE, BEGINNING	
442,874	
455,410	
477,243	
477,243	
-	
477,243	
487,977	

FUND BALANCE, ENDING	 $   455,410	$ 477,243	$   487,834	$	916,127	$    (428,150)   $  487,977	$ 501,193 

Annual Operating and Debt Service Budget

Community Development District

AMORTIZATION SCHEDULE SPECIAL ASSESSMENT BONDS SERIES 2016A

Period Ending	
Principal	
Coupon	
Interest	
Debt Service	Annual Debt Service	
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	6,325,000	2,028,059	8,353,059	8,353,059	

Annual Operating and Debt Service Budget

Live Oak No. 2
Community Development District

Supporting Budget Schedules
Fiscal Year 2021

Community Development District	All Funds

Comparison of Assessment Rates Fiscal Year 2021 vs. Fiscal Year 2020

Product	General Fund 001
FY 2021	FY 2020	Percent
Change	Debt Service
FY 2021	FY 2020	Percent
Change	Total Assessments per Unit	Total	
			FY 2021	FY 2020	Percent
Change	Units	

45'
50'
60'
75'
80'	
$328.69	$328.69	0.0%
$328.69	$328.69	0.0%
$328.69	$328.69	0.0%
$328.69	$328.69	0.0%
$328.69	$328.69	0.0%	
$632.86	$632.86	0.0%
$717.24	$717.24	0.0%
$843.81	$843.81	0.0%
$1,096.95	$1,096.95	0.0%
$1,181.33	$1,181.33	0.0%	
$961.55	$961.55	0.0%
$1,045.93	$1,045.93	0.0%
$1,172.50	$1,172.50	0.0%
$1,425.64	$1,425.64	0.0%
$1,510.03	$1,510.02	0.0%	
191
328
134
74
43	
				770	

Annual Operating and Debt Service Budget Fiscal Year 2021
8