THE CROSSINGS at FLEMING ISLAND Community Development District. May 28, 2015

Transcription

1 THE CROSSINGS at FLEMING ISLAND Community Development District May 28, 2015

2 The Crossings at Fleming Island Community Development District 475 West Town Place, Suite 114, St. Augustine, Florida P: (904) F: (904) May 21, 2015 Board of Supervisors The Crossings at Fleming Island Community Development District Dear Board Members: The regular meeting of the Board of Supervisors of The Crossings at Fleming Island Community Development District will be held May 28, 2015 at 6:00 p.m. at 1880 Eagle Harbor Parkway, Fleming Island, Florida. The following is the advance agenda for the meeting: Audit Committee Meeting I. Roll Call II. Review and Ranking of Audit Proposals Ill. Other Business IV. Adjournment Board of Supervisors Meeting I. Call to Order II. Pledge of Allegiance Ill. Roll Call IV. Public Comment V. Consideration of Audit Committee Recommendation VI. Consideration of Resolution , Approving the Proposed Budget for Fiscal Year 2016 and Setting a Public Hearing for Adoption VII. Consideration of 2015 National Golf Foundation Report VIII. Consideration of Proposals for Clubhouse Renovation IX. Consideration of Partners Education Program X. Consideration of Plats - Eagle Crest Unit 2, Eagle Perch, and Eagle Nest Preserve XI. Management Team Reports A. District Counsel B. District Manager

3 1. Open Items Update 2. Report on the Number of Registered Voters {6,501) C. District Operations Manager - Monthly Manager's Report D. Tree Amigos E. Hampton Golf Monthly Report XII. Financial Reports for April 30, 2015 A. Approval of Check Registers XIII. Supervisors' Requests XIV. Minutes Approval A. Approval of Minutes of the April 9, 2015 Meeting B. Approval of the Minutes of the April 23, 2015 Meeting XV. Adjournment The Audit Committee will meet prior to the Board of Supervisors meeting to rank and review the audit proposals received for the Fiscal Year 2015 Audit. The fifth order of business is consideration of audit committee recommendation. The Board will review and accept the Audit Committee's recommendation. Enclosed is a copy of the ranking sheet. The sixth order of business is consideration of Resolution , approving the proposed budget for Fiscal Year 2016 and setting a public hearing date for adoption. Copies of the budget and resolution are enclosed for your review. The seventh order of business is consideration of 2015 National Golf Foundation Report. A copy of the report is enclosed for your review and approval. The eighth order of business is consideration of proposals for clubhouse renovation. Copies of the proposals will be provided under separate cover. The ninth order of business is consideration of Partners Education Program. A copy of the Business Partners Handbook is enclosed for your review. The tenth order of business is consideration of plats - Eagle Crest Unit 2, Eagle Perch, and Eagle Nest Preserve. Any support documents will be provided under separate cover. Distri1:t Counsel, Manager and Management Team will give their updates and reports at the meeting. Please note any underlined items within the reports are carryover items previously reported. New business will not be underlined. Enclosed you will find a copy of the financial reports for the period ending April 30,

4 Copies of the draft minutes of April 9, 2015 meeting and the April 23, 2015 meeting are enclosed for your review. The balance of the agenda is routine in nature. Any additional support material will be presented and discussed at the meeting. If you have any questions, please contact me. Sincerely, ~dttrjyt David denagy cc: Rob Bradley Sam Garrison 3

5 AGENDA

6 THE CROSSINGS az?'~~~ COMMUNITY DEVELOPMENT DISTRICT Thursday May 28, :00 p.m. Agenda 1880 Eagle Harbor Parkway Fleming Island, Florida Audit Committee Meeting I. Roll Call II. Ill. IV. Review and Ranking of Audit Proposals Other Business Adjournment Board of Supervisors Meeting I. Call to Order II. Ill. IV. Pledge of Allegiance Roll Call Public Comment V. Consideration of Audit Committee Recommendation VI. VII. VIII. Consideration of Resolution , Approving the Proposed Budget for Fiscal Year 2016 and Setting a Public Hearing Date for Adoption Consideration of 2015 National Golf Foundation Report Consideration of Proposals for Clubhouse Renovation IX. Consideration of Partners Education Program X. Consideration of Plats - Eagle Crest Unit 2, Eagle Perch, and Eagle Nest Preserve XI. Management Team Reports A. District Counsel B. District Manager

7 1. Open Items Update 2. Report on the Number of Registered Voters (6,501) C. District Operations Manager - Monthly Manager's Report D. Tree Amigos E. Hampton Golf Monthly Report XII. Financial Reports for April 30, 2015 A. Approval of Check Registers XIII. XIV. Supervisors' Requests Minutes Approval A. Approval of Minutes of the April 9, 2015 Meeting B. Approval of the Minutes of the April 23, 2015 Meeting XV. Adjournment 2

8 FIFTH ORDER OF BUSINESS

9 The Crossings at Fleming Island Community Development District Auditor Selection Evaluation Criteria Pr~s~r Understanding of Scope Ability to Furnish the Ability of Personnel Proposer's Experience of Work R~uired Services (e.g., geographic locations (e.g., past record and Extent to which the of i:he firm's headquarters experience of the Proposer proposal demonstrates the or permanent office in in similar projects; volume adequacy of proposer's relation to the project; of work previously Extent to which the financial resources and capabilities and experience performed by the firm; past proposal demonstrates an stability as a business of key personnel; present performance for other understanding of the entity necessary to ability to manage this Community Development District's needs for the complete the services project; evaluation of Districts in other contracts; services requested. required (e.g., the existence existing workload; character; integrity; of any natural disaster plan proposed staffing levels, reputation of respondent, for business operations). etc_l etc.) Price Points will be awarded based upon the price bid for the rendering of the services and reasonableness of the price to services. Point Total Grau & Associates BeI9_er, Tpombs, Elam, Gaines McDi.rmit Davis Carr, Rl9.g_s, & lrigram Guillen Serrano & Associates

10 SIXTH ORDER OF BUSINESS

11 RESOLUTION A RESOLUTION FOR THE BOARD OF SUPERVISORS OF THE CROSSINGS AT FLEMING ISLAND COMMUNITY DEVELOPMENT DISTRICT APPROVING A PROPOSED BUDGET FOR FISCAL YEAR AND SETTING A PUBLIC HEARING THEREON PURSUANT TO FLORIDA LAW AND PROVIDING FOR AN EFFECTIVE DATE Whereas, the district manager has heretofore prepared and submitted to the board of Supervisors of The Crossings at Fleming Island Community Development District (the "Board") prior to June 15, 2015, a proposed operating budget for fiscal year ; and Whereas, the Board has considered the proposed budget and desires to set the required public hearing thereon; NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF SUPERVISORS OF THE CROSSINGS AT FLEMING ISLAND COMMUNITY DEVELOPMENT DISTRICT: 1. The operating budget proposed by the district manager for fiscal year attached hereto is hereby approved as the basis for conducting a public hearing to adopt said budget. 2. A public hearing on said approved budget is hereby declared and set for the following date, hour, and location: Date: Hour: Location: August 27, :00 p.m Eagle Harbor Parkway Fleming Island, Florida The District Manager is hereby directed to submit a copy of the proposed budget to Clay County Florida at least 60 days prior to the hearing set above. 4. Notice of this public hearing shall be published in the manner prescribed in Florida law. 5. This resolution shall take effect immediately upon adoption. PASSED AND ADOPTED THIS 28th DAY OF MAY, ATTEST~ THE CROSSINGS AT FLEMING ISLAND COMMUNITY DEVELOPMENT DISTRICT Secretary Its:

12 THE C-ROSSIN-GS at ~. "ldeuu:t COMM-UNITY DEVELOPMENT DISTRICT 1 Thursday, May 14, 2015 Presented by:

13 THE CROSSINGS a?'~'?~ COMMUNITY DEVELOPMENT DISTRICT TABLE OF CONTENTS General Fund Budget Budget Narrative Page 1 Page 2-6 Reserve Fund Budget Budget Narrative Page 7 Page 8 Debt Service 2014 A/1, A/2, A/3, A/ A/1- Amortization Schedule 2014 A/2 - Amortization Schedule 2014 A/3 - Amortization Schedule 2014 A/4 - Amortization Schedule Page 9 Page 10 Page 11 Page 12 Page 13 Water/Sewer Fund Budget Budget Narrative Page Page Golf Fund Budget Budget Narrative Page Page Swim & Tennis Fund Budget Budget Narrative Page 26 Page 27-28

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15 The Crossings at Fleming Island COMMUNITY DEVELOPMENT DISTRICT GENERAL FUND FY2016 REVENUES: ADOPIED FY2015 BUDGET ACTUAL THRU 3/31/2015 PROJECTED NEXT 6MONTHS TOTAL PROJECTED AT 9/30/2015 PROPOSED_ FY2016 BUDGET Special Assessment $2,485,513 Special Assessment Direct BoaURV storage Fees $95,000 Interest Income $2,500 Rental Income $2,680 $2,126,538 $175,320 $46,002 $1,005 $1,415 $170,206 $13,448 $48,998 $500 $1,340 $2,296,744 $188,768 $95,000 $1,505 $2,755 $2,485,513 $95,000 $2,500 $2,680 TOTAL REVENUES $2,585,693 $2,350,280 $234,492 $2,584,772 $2,585,693 EXPENDITURES: AGMINISTRATIVE: Supervisors Fees $21,000 FICA $1,607 Engineering $5,000 Dissemination Agent $1,000 Arbitrage $3,600 Attorney Fees $46,829 Audit $9,000 Trustee Fees $13,500 Management Fees $90,600 Computer Time $1,000 Telephone $300 Postage $2,600 Printing & Binding $2,100 Insurance $53,550 Legal Advertising $3,500 other Current Charges $8,000 Property Taxes $7,500 Office Supplies $750 Due:>, Licenses, Subscriptions $175 $9,000 $689 $1,000 $4,400 $12,818 $45,300 $500 $111 $724 $695 $49,956 $288 $1,635 $7,029 $52 $175 $12,000 $918 $1,000 $15,000 $9,000 $6,400 $45,300 $500 $189 $1,876 $705 $3,100 $1,800 $200 $21,000 $1,607 $1,000 $1,000 $4.400 $27,818 $9,000 $6,400 $90,600 $1,000 $300 $2,600 $1,400 $49,956 $3,388 $3,435 $7,029 $252 $175 $21,000 $1,607 $5,000 $1,000 $3,600 $28,619 $9,000 $13,500 $90,600 $1,000 $300 $2,600 $2,100 $56,530 $3,500 $8,000 $7,500 $1,250 $175 MAINTENANCE: Landscape Maintenance - Contract $696,750 Landscape Maintenance - Contingency $40,000 Facility Management $10,000 Lake Maintenance/Contract Admin $74,400 Cost Sharing Agreement $8,000 Facility/Preventative Maintenance $95,000 Utilities $115,000 Operating Reserves $209,562 Security $5,000 $353,455 $11,692 $5,000 $36,423 $1,760 $37,845 $53,192 $355,487 $28,308 $5,000 $37,977 $6,240 $57,155 $61,808 $209,562 $5,000 $708,942 $40,000 $10,000 $74,400 $8,000 $95,000 $115,000 $209,562 $5,000 $721,350 $50,000 $10,000 $ $8,000 $95,000 $120,000 $151,771 $9,000 TOTAL EXPENDITURES $1,525,323 $633,739 $864,525 $1,498,264 $1,499,502 OTHER SOURCES/{USES}: lnterfund Transfer In Reserve lnterfund Transfer Out Swim & Tennis ($1,060,370) $200,841 ($530,185) ($530,185) $200,841 ($1,060,370) ($1,086,191)' TOTAL OTHER ($1,060,370) ($329,344) ($530, 185) ($859,529) ($1,086, 191) Assigned Fund Balance $1,387,197 ($1, 160,218) $226,979 Page 1

16 The Crossings at Fleming Island Community Development District GENERAL FOND BUDGET Fiscal Year 2016 REVENUES: Special Assessments The District witt levy a Non-Ad Valorem assessment on all the platted lots within fhe District to pay all of the operating expenses for the Fiscal Year in accordance with the adopted budget. Boat/RV Storage Fees The District collects fees from Residents to securely store Boats and RVs. Interest Income Interest income on funds in operating account and excess funds in the State Board of Administration. Rental Income The District entered into an Agreement with Tree Amigos to lease office space. The rent is $200 per month. Tree Amigos also pays a portion of the monthly internet expense. EXPENDITURES: Administrative: Supetvisor Fees/FICA The District anticipates 21 meetings per year with all five board members in attendance and each receiving $ per meeting plus payroll taxes. Engineering The District's engineering firm, Hadden and Land Engineering, will be providing general engineering services to the District, including attendance and preparation for monthly board meetings, review invoices, etc. Dissemination Agent The District has contracted with Prager, Sealy & Co., to act as the Dissemination Agent for the District to prepare the Annual Disclosure Report required by the Security and Exchange Commission in order to comply with Rule 15(c)(2)-12(b)(5), which relates to additional reporting requirements for un-rated bond issues. 2

17 The Crossings at Fleming Island Community Development District GENERAL FUND BUDGET Fiscal Year 2016 Arbitrage The District is required to have an Arbitrage Rebate Calculation on the District's Series 2000 A/B/C Special Assessment Revenue Bonds. Attorney The District's legal counsel, Kopelousos & Bradley, P.A., will be providing general legal services to the District, including attendance and preparation for monthly meetings, preparation and review of agreements, resolutions, etc. Annual Audit The District is required annually to conduct an audit of its financial records by an Independent Certified Public Accounting Firm. The District is currently contracted with Berger, Toombs, Elam and Frank, CPAs for the audit engagement. Trustee The District's Series 2000 B/C Special Assessment Revenue Bonds are held by a Trustee at U.S. Bank. The amount represents the fee for the administration of the District's bond issue. Management Fees The District receives Management, Accounting and Administrative services as part of a Management Agreement with Governmental Management Services, LLC. Computer Time The District processes all of its financial activities, including accounts payable, financial statements, etc. on a main frame computer leased by Governmental Management Services, LLC. Travel & Per Diem This represents funds to reimburse Supervisors and Employees for District related Travel and Meals. Telephone This item includes telephone and fax service. Postage This item includes mailing of agenda packages, overnight deliveries, correspondence, etc. 3

18 Printing & Binding The Crossings at Fleming rsland Community Development District GENERAL FUND 13UDGET Fiscal Year 2016 Printing and Binding agenda packages for board meetings, printing of computerized checks, stationary, envelopes etc. Insurance The District's General Liability & PubHc Officials Liability and Property Insurance poficies are with Egis Insurance and Risk Advisors. They speciafize in providing insurance coverage to governmental agencies. This expense is shared with the General Fund and the Golf Course Fund. Legal Advertising The District is required to advertise various notices for monthly Board meetings, public hearings etc with Journal Community Publishing Group. Other Current Charges Bank charges and any other miscellaneous expenses incurred during the year. Office Supplies This item includes the cost of miscellaneous office supplies. Dues, Licenses & Subscriptions The District is required to pay an annual fee to the Department of Economic Opportunity for $175. This is the only expense under this category for the District. Maintenance Landscape Maintenance - Contract The District is currently contracted with Tree Amigos Outdoor Services for the Landscape of the Districts common areas. The cost of the contract for FY2016 is $60,01150 per month, or $721,350 annually. The services include: Landscaping - mowing, edging, trash removal, trimming and pruning or trees and group cover, fertilizing and clean up and removing of storm damage debris Flower Bed Maintenance - maintaining approx. 79 flower beds including fertilizing, mulching, insect control, replacing and spraying beds Irrigation Maintenance - inspection, cleaning and repairs of all irrigation components. A monthly irrigation inspection, repair and replacement of system parts Weed & Insect Control - insecticide applications lawns and shrubs to control. insect, period inspections for insects and disease Architectural Review Committee - contractor will be familiar with all ARC restrictions and comply with those stated in the ARC Rules and Regulations 4

19 The Crossings at Fleming-Island Community Development District GENERAL FUND BUDGET Fiscal Year 2016 Landscape Maintenance- Contingency This category represents any additional landscaping work needed that is outside the scope of the contract with Tree Amigos. Lake Maintenance/Contract Admin Lake Doctors provides aquatic pond maintenance, dock repairs and maintenance, lake signage maintenance. Line item also includes contract administrative services provided by Governmental Management Services, LLC. Cost Sharing Agreement Maintenance costs other than utilities paid to The Stone Creek HOA for upkeep of COD property. Facility Preventative Maintenance Cost of routine repairs and maintenance of the District's common areas. Uti1ities Includes the following utility accounts held by the District: AT&T- internet service Clay Electric Cooperative - electric service for the Eagle Harbor COD Office CCUA - water service for the Eagle Harbor COD Office Operating Resetves This item includes a contingency for any unanticipated and unscheduled cost to the District. Other Sources/(Uses) lnterfund Transfer Out- Swim & Tennis The Board has agreed to an annual subsidy to the Swim & Tennis Fund to cover operations. 5

20 Utility Schedule - General-Fund.FY2015 Account# Service Address Avg. Monthly Avg. Annual Clay Electric Country Side Dr $ $ Brookstrone Dr $ $ Eagle Harbor Parkway $ $ 6() Eagle Harbor Parkway $ $ 1, Eagle HarborParkway $ 26.Dl $ Misty Lake Drive $ $ 4, Eagle Harbor Parkway $ 84.95' ~ 1, hl Oak Landing Lane $ $ Linkside Drive $ $ Forest Park Drive $ $ 1, South Shore Dr $ $ Salt Marsh $ $ '> 4312 Lake-shore Dr East $ $ 1, Lakeshore Dr E $ $ 1, Marsh Landing Ct $ 25.91i $ Vista Lakes Dr $ $ Lakeshore Dr E $ $ 1, Lakeshore Drive N $ $ Lakeshore Dr N $ $ 5, Cross Pine Drive $ $ Cross Pines Drive $ $ Old Pine Trail $ $ Trailwood Drive $ $ Cross Pines Drive $ $ Eagle Harbor Parkway $ $ Daniels Landing Dr $ $ Manard Branch Ct $ $ Stoney Glen Irrigation $ $ Eagle Harbor Pkwy Lighting $ 2, $ 25, Eagle HBr on 17 at Fountain $ $ 11, Eagle Creek Dr $ $ Eagle Harbor Parkway $ $ 6, Harbor Lake Drive $ $ 1, $ 68, Clay County Utility Authority Eagle Harbor Parkway $ $ 5, Eagle Harbor Parkway Fountains $ $ 1, Fiddler's Ridge Dr Reel Irr $ $ 1, Eagle Harbor Parkway $ 103,33 $ 1, Lakeshore Drive E $ $ Lakeshore Drive $ $ Harbor Lake Drive $ $ 1, Entrace to Brookstone Irr $ $ 2, Brookstone Dr Irr $ $ Eage Harbor Parkway Irr $ $ 1, Entrace to The Preserves Irr $ $ 1, Trailwood Dr Reel Irr $ $ 3, Cross Pine Dr Reel Irr $ $ 1, Old Pine Trail Reel Irr $ $ 1, Salt Marsh Lane Irr $ $ 1, Cross Pine Drive Reel Irr $ $ Old Pine Trail Reel Irr $ $ Cross Pines Dr Reel Irr $ $ Old Pine Trail Reel Irr $ $ Eagle Creek Dr Reel Irr $ $ 2, Country Side Dr Reel Irr $ $ Country Side Dr Reel Irr $ $ Country Side Dr Reel Irr $ $ Country Side Dr Reel Irr $ $ 1, Eagle Creek Dr Reef Irr $ $ Country Side Dr Reel Irr $ $ 1, Summit Ridge Rd Reel Irr $ $ Lake Terrace Lan~ Irr $ $ 1, AT&T $ 40, Harbor Lake Drive - Internet $ $ 1, $ 1, Page 6 Contingency $ 10, TOTAL $ 120,675.14

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22 The Crossings at Fleming Island COMMUNITY DEVELOPMENT DISTRICT RESERVE FY21!16 REVENUES: ADOPTED FY2015 BUDGET ACTUAL. THRU 3/31/2015 PROJECTED NEXT 6 MONTHS TOTAL PROJECTED AT 9/30/2015 PROPOSED FY2016 BUDGET Special Assessments - Tax Collector $292,596 Special Assessments - Direct $24,048 Insurance Proceeds $270,912 $22,335 $20,000 $22,000 $1,713 $292;912 $24,048 $20,000 $316,644 TOTAL REVENUES $316,644 $-113,247 $23,713 $336,960 $316,644 EXPENDITURES: Capital Outlay $316,394 Contingency Other Current Charges $250 $95,009 $113 $19,000 $98 $114,009 $211 $316,394 $250 TOT AL EXPENDITURES $316,644 $95, 122 $19,098 $114,220 $316,644 OTHER SOURCES/{USES}: lnterfund Transfer Out - General Fund ($200,841) ($200,841) TOTAL OTHER ($200,841} ($200,841} ASSIGNED FUND BALANCE $17,284 $4,615 $21,899 Page 7

23 The Crossings at Fleming Island Community Devetopment District RESERVE BUDGET Fiscal Year 2016 REVENUES: Maintenance Assessments The District will levy a Non-Ad Valorem assessment on all the platted lots within the District to pay all of the Capital Outlay expenses for th& Fiscal Year in accordance with the adopted budget. EXPENDITURES: Capital Outlay At the Board of Supervisor's discretion, funds will be used to complete capital projects. Page8

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25 The Crossings at Fleming Island COMMUNITY DEVELOPMENT DISTRICT DEBT SERVICE FUND -Series 2014 Al-1, A/2, A/3, A/4 FY2016 REVENUES: Series 2014 N1 Series 2014 N2 Series 2014 N3 Series PROPOSED 2014 FY2016 N4 BUDGET Special Assessments - Tax Collector $2,054,637 Special Assessments - Direct $107,514 Interest Income~ Carry Forward Surplus $461,025 $401,625 $124,600 $414,288 $200,745 $1,646,300 $4,516,850 $107,514 $61,041 $847,411 TOTAL REVENUES $2,623,176 $526,225 $615,033 $1,707,341 $5,471,775 EXPENDITURES: Interest Expense - 11/1 $444,447 Principal Expense - 5/1 $1,220,000 Interest Expense - 5/1 $444,447 $129,675 $145,000 $129,675 $174,850 $65,000 $174,850 $16,300 $765,272 $1,630,000 $3,060,000 $16,300 $765,272 TOTAL EXPENDITURES $2, 108,894 $404,350 $414,700 $1,662,600 $4,590,544 EXCESS REVENUES (EXPENDITURES) $514,282 $121,875 $200,333 $44,741 $881,231 11/1/16 Interest: Af1 $435,297 N2 $124,600 N3 $175,825 N4 $735,722 Page 9

26 THE CROSSINGS AT FLEMING ISLAND COMMUNITY DEVELOPMENT DISTRICT Series 2014 A/1, Special Assessment Refunding Bonds Amortization Schedule PRINCIPAL DATE BALANCE RATE INTEREST PRINCIPAL TOTAL t-nov-14 $ 24,500, % $ 197, $ 197, May-15 $ 24,500, % $ 450, $ 1,200, Nov-15 $ 23,300, % $ 444, $ 2,094, May-16 $ 23,300, % $ 444, $ 1,220, Nov-16 $ 22,080, % $ 435, $ 2,099, May-17 $ 22,080, % $ 435, $ 1,240, Nov-17 $ 20,840, % $ 424, $ 2,099, May-18 $ 20,840, % $ 424, $ 1,260, Nov-18 $ 19,580, % $ 410, $ 2,094, May-19 $ 19,580, % $ 410, $ 1,295, Nov-19 $ 18,285, % $ 393, $ 2,098, May-20 $ 18,285, % $ 393, $ 1,335, Nov-20 $ 16,950, % $ 366, $ 2,094, May-21 $ 16,950, % $ 366, $ 1,390, Nov-21 $ 15,560, % $ 338, $ 2,095, May-22 $ 15,560, % $ 338, $ 1,450, Nov-22 $ 14,110, % $ 309, $ 2,098, May-23 $ 14,110, % $ 309, $ 1,510, Nov-23 $ 12,600, % $ 279, $ 2,099, May-24 $ 12,600, % $ 279, $ 1,570, Nov-24 $ 11,030, % $ 248, $ 2,097, May-25 $ 11,030, % $ 248, $ 1,640, Nov-25 $ 9,390, % $ 211, $ 2,099, May-26 $ 9,390, % $ 211, $ 1,715, Nov-26 $ 7,675, % $ 172, $ 2,098, May-27 $ 7,675, % $ 172, $ 1,790, Nov-27 $ 5,885, % $ 132, $ 2,095, May-28 $ 5,885, % $ 132, $ 1,875, Nov-28 $ 4,010, % $ 90, $ 2,097, May-29 $ 4,010, % $ 90, $ 1,960, Nov-29 $ 2,050, % $ 46, $ 2,096, May-30 $ 2,050, % $ 46, $ 2,050, $ 2,096, $ 9,254, $ 24,500, $ 33,754, Page 10

27 THE CROSSINGS AT FLEMING ISLAND COMMUNITY DEVELOPMENT DISTRICT Series 2014~N2, Special Assessment Refunding Bonds Amertization Schedule PRINCIPAL DATE BALANCE RATE INTEREST PRINCIPAL TOTAL 1-Nov-14 $ 3,840, % $ 58, $ 58, May-15 $ 3,840, % $ 134, $ 135, Nov-15 $ 3,705, % $ 129, $ 399, May-16 $ 3,705, % $ 129, $ 145, Nov-16 $ 3,560, % $ 124, $ 399, May-17 $ 3,560, % $ 124, $ 155, Nov-17 $ 3,405, % $ 119, $ 398, May-18 $ 3,405, % $ 119, $ 165, Nov-18 $ 3,240, % $ $ 397, May-19 $ 3,240, % $ 113, $ 180, Nov-19 $ 3,060, % $ 107, $ 400, May-20 $ 3,060, % $ 107, $ 190, Nov-20 $ 2,870, % $ 100, $ 397, May-21 $ 2,870, % $ 100, $ 205, Nov-21 $ 2,665, % $ 93, $ 398, May-22 $ 2,665, % $ 93, $ 220, Nov-22 $ 2.445, % $ 85, $ 398, May-23 $ 2,445, % $ 85, $ 235, Nov-23 $ 2,210, % $ 77, $ 397, May-24 $ 2,210, % $ 77, $ 255, Nov-24 $ 1,955, % $ 68, $ 400, May-25 $ 1,955, % $ 68, $ 270, Nov-25 $ 1,685, % $ 58, $ 397, May-26 $ 1,685, % $ 58, $ 290, Nov-26 $ 1,395, % $ 48, $ 397, May-27 $ 1,395, % $ 48, $ 315, Nov-27 $ 1,080, % $ 37, $ 401, May-28 $ 1,080, % $ 37, $ 335, Nov-28 $ 745, % $ 26, $ 398, May-29 $ 745, % $ 26, $ 360, Nov-29 $ 385, % $ 13, $ 399, May-30 $ 385, % $ 13, $ 385, $ 398, $ 2,601, $ 3,840, $ 6,441, Page 11

28 THE CROSSINGS AT FLEMING ISLAND COMMUNITY DEVELOPMENT DISTRICT Series AJ3, Special Assessment Refunding Bonds Amortization Schedule PRINCIPAL DATE BALANCE RATE INTEREST PRINCIPAL TOTAL 1-Nov-14 $ 5,440,000 _6,500% $ 77, $ 77, May-15 $ 5,440, % $ 176,800;00 $ 60, Nov-15 $ 5,380, % $ 174, $- 411, May-16 $ 5,380, % $ 174,850~00 $ 65,000;00 1-Nov-16 $ 5,315, % $- -172, $ 412, May-17 $ 5,315, % 1> 172, $ 70, Nov-17 $ 5,245, % $ 170, $ 413,200;00 1-May-18 $- 5,245; % $ 170, $ 75, Nov-18 $ 5,170, % $ 168, $ 413, May-19 $ 5,170, % $ 168, $ 80, Nov-19 $ 5,090, % $ 165, $ 413, May-20 $ 5,090, % $ 165, $ 85, Nov-20 $ 5,005, % $ 162, $ 413, May-21 $ 5,005, % $ 162, $ 90, Nov-21 $ 4,915, % $ 159, $ 412, May-22 $ 4,915, % $ 159, $ 95, Nov-22 $ 4,820, % $ 156, $ 411, May-23 $ 4,820, % $ 156, $ 100, Nov-23 $ 4,720, % $ 153, $ 410, May-24 $ 4,720, % $ 153, $ 110, Nov-24 $ 4,610, % $ 149, $ 413, May-25 $ 4,610, % $ 149, $ 115, Nov-25 $ 4,495, % $ 146, $ 410, May-26 $ 4,495, % $ 146, $ 125, Nov-26 $ 4,370, % $ 142, $ 413, May-27 $ 4,370, % $ 142, $ 130, Nov-27 $ 4,240, % $ 137, $ 409, May-28 $ 4,240, % $ 137, $ 140, Nov-28 $ 4,100, % $ 133, $ 411, May-29 $ 4,100, % $ 133, $ 150, Nov-29 $ 3,950, % $ 128, $ 411, May-30 $ 3,950, % $ 128, $ 160, Nov-30 $ 3,790, % $ 123, $ 411, May-31 $ 3,790, % $ 123, $ 170, Nov-31 $ 3,620, % $ 117, $ 410, May-32 $ 3,620, % $ 117, $ 185, Nov-32 $ 3,435, % $ 111, $ 414, May-33 $ 3,435, % $ 111, $ 195, Nov-33 $ 3,240, % $ 105, $ 411, May-34 $ 3,240, % $ 105, $ 210, Nov-34 $ 3,030, % $ 98, $ 413, May-35 $ 3,030, % $ 98, $ 220, Nov-35 $ 2,810, % $ 91, $ 409, May-36 $ 2,810, % $ 91, $ 235, Nov-36 $ 2,575, % $ 83, $ 410, May-37 $ 2,575, % $ 83, $ 255, Nov-37 $ 2,320, % $ 75, $ 414, May-38 $ 2,320, % $ 75, $ 270, Nov-38 $ 2,050, % $ 66, $ 412, May-39 $ 2,050, % $ 66, $ 290, Nov-39 $ 1,760, % $ 57, $ 413, May-40 $ 1,760, % $ 57, $ 305, Nov-40 $ 1,455, % $ 47, $ 409, May-41 $ 1,455, % $ 47, $ 330, Nov-41 $ 1,125, % $ 36, $ 413, May-42 $ 1, 125, % $ 36, $ 350, Nov-42 $ 775, % $ 25, $ 411, May-43 $ 775, % $ 25, $ 375, Nov-43 $ 400, % $ 13, $ 413, May-44 $ 400, % $ 13, $ 400, $ 413, $ 7,002, $ 5,440, $ 12,442, Page 12

29 THE CROSSINGS AT FLEMING ISLAND COMMUNITY DEVELOPMENT DISTRICT Series 2014 A/4, Special Assessment Refunding Bonds Amortization Schedule PRINCIPAL DATE BALANCE RATE INTEREST PRINCIPAL TOTAL 1-Nov-14 $ 3,225, % $ 13, $ $ 13, May-15 $ 3,225, % $ 32, $ 1,595, Nov-15 $ 1,630, % $ 16, $ $ 1,643, May-16 $ 1,630, % $ 16, $ 1,630, $ 1,646, $ 77, $ 3,225, $ 3,302, Page 13

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31 The Crossings at Fleming Island COMMUNITY DEVELOPMENT DISTRICT WATER/SEWER FUND FY2016 REVENUES: ADOPTED ACTUAL PROJECTED TOTAL PROPOSED FY2015 THRU NEXT PROJECTED AT FY2016 BUDGET 3t31/W15 6 MOl'JTHS- 9/.30/2015 BUDGET Water Revenue $926,000 $443,326 -$443,326 $886,652 $890,000 Wastewater Revenue $1,680,000 $887,004 $887,004 $1,774,008 $1,775,000 Reclaimed Water Revenue $703,000 $310,407 $310,407 $620,814 $650,000 Admin Fees for WIS <Jpefation $105-,000 $49,898 $49,898 $99,796 $100,000 Debt Capacity Charge $1,952,000 $1,003,134 $1,003,134 $2,006,268 $2,000,000 lnteresvmisc. Income $10,000 $2;013 $2,013 $4,026 $5,000 TOTAL REVENUES $5,376,000 $2,695,782 $2,695,782 $5,391,564 $5,420,000 EXPENDITURES: ADMINISTRATIVE: Engineering $1,000 $1,000 $1,000 $1,000 Arbitrage $1,200 $1,200 $1,200 $1,200 Dissemination Agent $1,000 $1,000 $1,000 $1,000 Attorney Fees $42,843 $10,706 $10,706 $21,412 $26,372 Annual Audit $6,000 $6,000 $6,000 $6,000 Trustee Fees $8,000 $8,802 $8,802 $8,000 Management Fees $45,300 $22,650 $7,550 $30,200 $45,300 Computer Time $500 $250 $250 $500 $500 Travel & Per Diem $500 $500 $500 $500 Postage $1,000 $365 $635 $1,000 $1,000 Printing & Binding $500 $500 $500 $500 Insurance $38,250 $35,683 $35,683 $36,083 Legal Advertising $1,000 $1,000 $1,000 $1,000 Office Supplies $300 $300 $300 $300 Other Current Charges $10,000 $6,651 $250 $6,901 $10,000 WATER/WASTEWATER/REUSE: Service Charges $62,000 $23,857 $38,143 $62,000 $62,000 Meter Expenses $7,500 $432 $7,068 $7,500 $7,500 Purchased Water $1,010,000 $471,282 $538,718 $1,010,000 $1,010,000 Wastewater Treatment Expense $1,680,000 $887,198 $792,802 $1,680,000 $1,775,000 Purchased Reclaimed Water $137,500 $71,466 $66,034 $137,500 $137,500 Repairs & Maintenance $72,300 $945 $71,355 $72,300 $72,300 Electric $25,000 $10,305 $14,695 $25,000 $25,000 Capital Outlay $5,000 $215 $4,785 $5,000 $5,000 Contingency $10,000 $9,427 $573 $10,000 $10,000 TOTAL OPERATING EXPENSES $3,166,693 $1,560,234 $1,565,064 $3,125,298 $3,243,055 DEBT SERVICE: Interest Expense - 4/1 $610,072 $610,072 () $610,072 $610,072 Principal Expense - 10/1 $660,000 $330,000 $330,000 $660,000 $660,000 Interest Expense - 10/1 $610,072 $610,072 $610,072 $610,072 TOTAL DEBT SERVICE $1,880,144 $940,072 $940,072 $1,880, 144 $1,880,144 TOTAL EXPENSES $5,046,837 $2,500,306 $2,505,136 $5,005,442 $5,123,199 EXCESS REVENUES (EXPENDITURES) $329,163 $195,476 $190,646 $386,122 $296,801 Debt Service Coverage (115%) 118% 121% 116% Page 14

32 THE CROSSINGS AT FLEMING ISLAND COMMUNITY DEVELOPMENT DISTRICT Series 2007, Utility Refunding Bonds Amortization Schedule PRINCIPAL DATE BALANCE INTEREST PHINCIPAL TOTAL 1-0ct-07 $ 28,900,000 $ 333, $_ $ 333, Apr-08 -$ 28,900,000 $ 667, $ 1-0ct-08 $ 28,900,000 r- 667, $ 40, $ 1,375, Apr-09 $ 28,860,000 $ 667, $ 1-0ct-09 $ 28,860,000 $ 667, $ 145, $ 1,479, Apr-10 $ 28,715,000 $ 664, $ 1-0ct-10 $ 28,715,000 $ 664, $ 320, $ 1,648, Apr-11 $ 28,395,000 $ 657, $ 1-0ct-11 $ 28,395,000 $ 657,!1"11.88 $ 565, $ 1,880, Apr-12 $ 27,830,000 $ 646, $ 1-0ct-12 $ 27,830,000 $ 646, $ 585, $ 1,878, Apr-13 $ 27,245,000 $ 634, $ 1-0ct-13 $ 27,245,000 $ 634, $ 610, $ 1,879,943, 76 1-Apr-14 $ 26,635,000 $ 622, $ 1-0ct-14 $ 26,635,000 $ 622, $ 635, $ 1,880, Apr-15 $ 26,000,000 $ 610, $ 1-0ct-15 $ 26,000,000 $ 610, $ 660, $ 1,880, Apr-16 $ 25,340,000 $ 596, $ 1-0ct-16 $ 25,340,000 $ 596, $ 690, $ 1,882, Apr-17 $ 24,650,000 $ 580, $ 1-0ct-17 $ 24,650,000 $ 580, $ 720, $ 1,881, Apr-18 $ 23,930,000 $ 564, $ 1-0ct-18 $ 23,930,000 $ 564, $ 750, $ 1,878, Apr-19 $ 23,180,000 $ 547, $ 1-0ct-19 $ 23,180,000 $ 547, $ 785, $ 1,879, Apr-20 $ 22,395,000 $ 529, $ 1-0ct-20 $ 22,395,000 $ 529, $ 820, $ 1,879, Apr-21 $ 21,575,000 $ 511, $ 1-0ct-21 $ 21,575,000 $ 511, $ 860, $ 1,882, Apr-22 $ 20,715,000 $ 491, $ 1-0ct-22 $ 20,715,000 $ 491, $ 895, $ 1,878, Apr-23 $ 19,820,000 $ 471, $ 1-0ct-23 $ 19,820,000 $ 471, $ 935, $ 1,878, Apr-24 $ 18,885,000 $ 449, $ 1-0ct-24 $ 18,885,000 $ 449, $ 980, $ 1,879, Apr-25 $ 17,905,000 $ 426, $ 1-0ct-25 $ 17,905,000 $ 426, $ 1,030, $ 1,882, Apr-26 $ 16,875,000 $ 401, $ 1-0ct-26 $ 16,875,000 $ 401, $ 1,075, $ 1,878, Apr-27 $ 15,800,000 $ 376, $ 1-0ct-27 $ 15,800,000 $ 376, $ 1, 125, $ 1,877, Apr-28 $ 14,675,000 $ 349, $ 1-0ct-28 $ 14,675,000 $ 349, $ 1, 180, $ 1,879, Apr-29 $ 13,495,000 $ 321, $ 1-0ct-29 $ 13,495,000 $ 321, $ 1,235, $ 1,878, Apr-30 $ 12,260,000 $ 292, $ 1-0ct-30 $ 12,260,000 $ 292, $ 1,295, $ 1,879, Apr-31 $ 10,965,000 $ 261, $ 1-0ct-31 $ 10,965,000 $ 261, $ 1,355, $ 1,878, Apr-32 $ 9,610,000 $ 229, $ 1-0ct-32 $ 9,610,000 $ 229, $ 1,420, $ 1,878, Apr-33 $ 8, 190,000 $ 195, $ 1-0ct-33 $ 8,190,000 $ 195, $ 1,490, $ 1,881, Apr-34 $ 6,700,000 $ 160, $ 1-0ct-34 $ 6,700,000 $ 160, $ 1,560, $ 1,880, Apr-35 $ 5, 140,000 $ 123, $ 1-0ct-35 $ 5, 140,000 $ 123, $ 1,635, $ 1,881, Apr-36 $ 3,505,000 $ 84, $ 1-0ct-36 $ 3,505,000 $ 84, $ 1,710, $ 1,878, Apr-37 $ 1,795,000 $ 43, $ 1-0ct-37 $ 1,795,000 $ 43, $ 1,795, $ 1,882, $26,695, $ 28,900, $ 55,595, Page 15

33 The Crossings at Fleming Island Community Development District_ WATER/SEWER FUND BUDGE! Fiscal Year 2016 REVENUES: Water Revenue The estimated amount that will be bflled to users of the potable water system of the District based upon average monthly consumption, current utility rates in effect and projected number of users during the fiscal year. The billing is handled by Clay County Utility Authority. Wastewater Revenue The estimated amount that will be billed to users of the wastewater system of the District based upon average monthly consumption, current utility rates in effect and projected number of users during the fiscal year. Reuse Water Revenue The estimated amount that will be billed to users of the reuse water system of the District based upon average monthly consumption, current utility rates in effect and projected number of users during the fiscal year. Admin Fees for WIS Operation Represents services charges to water customers for returned checks or credit card transactions. Debt Capacity Charge A monthly charge established for the purpose of providing sufficient revenues to pay the annual net debt service requirements for the amortization of the District's special revenue bonds for the construction of the water distribution, wastewater collection and effluent reuse system. Page 16

34 The Crossings at Fleming Island Community Development District WATER/SEWER FUND BUDGET Fiscal Year 2016 EXPENDITURES: Administrative: Engineering The District's engineering firm, Hadden and Land Engineering, will be providing general engineering services to the District, including attendance and preparation for monthly board meetings, review invoices, etc. Arbitrage The District is required to have an Arbitrage Rebate Calculation on the District's Series 2007 Utility Refunding Bonds. Dissemination Agent The District has contracted with Prager, Sealy & Co., to act as the Dissemination Agent for the District to prepare the Annual Disclosure Report required by the Security and Exchange Commission in order to comply with Rule 15(c)(2)-12(b)(5), which relates to additional reporting requirements for un-rated bond issues. Attorney The District's legal counsel, Kopelousos & Bradley, P.A., will be providing general legal services to the District, including attendance and preparation for monthly meetings, preparation and review of agreements, resolutions, etc. This expense is shared with the General. Annual Audit The District is required annually to conduct an audit of its financial records by an Independent Certified Public Accounting Firm. The District is currently contracted with Berger, Toombs, Elam & Frank CPAs. for the audit engagement. This expense is shared with the General Fund and the Golf Course Fund. Trustee The District's Series 2007 Utility Refunding Bonds are held by a Trustee at U.S. Bank. The amount represents the fee for the administration of the District's bond issue. Management Fees The District receives Management, Accounting and Administrative services as part of a Management Agreement with Governmental Management Services, LLC. This expense is shared with the General Fund. Page 17

35 The Crossings at Fleming Island Community Development District WATER/SEWER FUND BUDGET Fiscal Year 2016 Computer Time The District processes all of its financial activities, including accounts payable, financial statements, etc; on a main frame computer leased by Governmental-Management Services, LLC. This expense is shared with the General Fund. Travel & Per Diem This represents funds to reimburse Supervisors and Employees for District related Travel and Meals. Postage This item includes mailing of agenda packages, overnight deliveries, correspondence, etc. Printing & Binding Printing and Binding agenda packages for board meetings, printing of computerized checks, stationary, envelopes etc. Insurance The District's General Liability & Public Officials Liability and Property Insurance policies are with Egis Insurance and Risk Advisors. They specialize in providing insurance coverage to governmental agencies. This expense is shared with the General Fund and the Golf Course Fund. Legal Advertising The District is required to advertise various notices for monthly Board meetings, public hearings etc with Journal Community Publishing Group. Office Supplies This item includes the cost of miscellaneous office supplies. Other Current Charges Bank charges and any other miscellaneous expenses incurred during the year. Water/Wastewater/Reuse Service Charges This represents miscellaneous repairs associated with the Water system operation and maintenance performed by Clay County Utility Authority and utilities paid under the Stonecreek HOA cost sharing agreement. Page 18

36 The Crossings-at Fleming Jsland Community Development District WATER/SEWER FUND BUDGET Fiscal Year 2016 Rate Studies This District contracted with Public Resources Management Group to perform a Utility Revenue Sufficiency Analysis. Meter Expenses This category represents the cost of a domestic meter being set by Clay County Utility Authority. Purchased Water This represents the cost of bulk water purchased from Clay County Utility Authority. Wastewater Treatment Expense This represents the cost of bulk wastewater purchased from Clay County Utility Authority. Purchased Reclaimed Water This represents the cost of bulk reclaimed water purchased from Clay County Utility Authority. Repairs & Maintenance Represents any repairs and maintenance cost the District may incur. Electric The District has an account with Clay Electric Cooperative for service at 4567 Lakeshore Drive East. Capital Out/av Includes any miscellaneous capital expenditures the District may incur during the Fiscal Year. Debt Service The District issued $28,900,000 of Series 2007 Utility Refunding Bonds. The following is the annual principal and interest expense due on these bonds for the next fiscal year: Interest Expense - 4/1/16 Principal Expense -10/1/16 Interest Expense - 10/1 /17 Total $596, ' $690, $596, $1,882, Page 19

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38 The Crossings at Fleming Island COMMUNITY DEVEbOPMENT DISTRICT REVENUES: GOLF FUND FY2016 ADOPTED ACTUAL PROJECTED TOTAL PROPOSED FY2015 THRU NEXT PROJECTED AT FY2016 BUDGET 3/31/ MONTHS 9/30/2015 BUDGET User Fees - Dues $348,000 $166,284 $30,145 $196,429 $374,645 Greens/Cart Fees $750,600 $354,635 $71,566 $426,201 $778,405 Merchandise/Food/Beverage Sale $594,616 $314,996 $60,694 $375,690 $899,486 Rental Revenue $15,000 $5,606 $1,160 $6,766 $26,262 Membership Income - Other Fees $49,600 $24,340 $4,005 $28,345 $59,082 Miscellaneous Income. $45,012 $1.9,648 $4,388 $24,036 $42,896 TO'fAL REVENUES $1,802,626 $885,509 $171,958 $1,057,467 $2,180,778 COST OF GOODS SOLD: Cost of Goods Sold $272,657 $151,6-13 $28;323 $179,936 $350,008 GROSS PROFIT $1,530,171 $733,896 "$143,635 $877,531 $1,830,770 EXPENDITURES: Operating Expenses: Salaries $701,870 $347,533 $188,186 $535,719 $817,542 Commissions & Bonuses $1,439 $1,439 Employee Expenses $126,357 $66,090 $36,555 $102,645 $147,277 Employee Uniforms $3,100 $700 $600 $1,300 $1,474 Automobile Expenses $97 Travel & Per Diem $2,250 $507 $1,625 $2,132 $1,425 Training $350 $430 Janitorial Expense $10,800 $5,400 $5,409 $10,809 $8,460 Janitorial Supplies $4,200 $2,396 $2,100 $4,496 $3,841 Tournaments & Events $9,400 $9,993 $765 $10,758 $10,918 Promotional Activities Centralized Services $68,500 $35,254 $27,017 $62,271 $74,416 Course & Grounds Maintenance $18,700 $4,372 $8,681 $13,053 $20,871 Repairs - Equipment $34,000 $18,206 $8,989 $27,195 $31,707 Repairs - Buildings $11,100 $3,406 $1,606 $5,012 $15,624 Operating Supplies $51,920 $27,389 $9,797 $37,186 $62,696 Office Supplies $5,400 $1,686 $923 $2,609 $3,732 Postage $420 $66 $79 $145 $306 Printing & Reproduction $600 $60 $50 $110 $92 Utility Services $66,000 $33,026 $19,227 $52,253 $68,550 Gas/Oil/Propane $41,800 $13,225 $15,677 $28,902 $37,914 Refuse & Potables $11,000 $3,753 $3,504 $7,257 $9,879 Telephone $8,160 $3,709 $3,955 $7,664 $8,561 other Contractual Services $6,264 $759 $732 $1,491 $6,945 Music Service $2,400 $1,034 $1,200 $2,234 $2,070 Dues and Subscriptions $8,000 $6,558 $2,875 $9,433 $7,412 - Chemicals $44,500 $14,091 $24,380 $38,471 $38,552 Sand, Seed & Dressing $16,000 $11,617 $4,400 $16,017 $14,464 Small Tools $2,000 $198 $333 $531 $1,347 Licenses/Permits $2,500 $810 $1,500 $2,310 $2,349 Cash Short/Over $161 $161 Misc. Expenses $600 $600 $503 Trustee Fees/Bank Charges $31,500 $16,634 $4,150 $20,784 $42,431 Fertilizer - Course $37,000 $19,725 $18,000 $37,725 $36,754 Management Fees - Hampton $86,400 $44,530 $55,400 $99,930 $86,400 Rentals & Leases $195,900 $95,602 $97,953 $193,555 $190,731 insurance $22,800 $21,941 $21,941 $23,848 Other Current Charges $16,000 $20,390 $20,390 $16,374 Management Fees - GMS $19,100 $9,550 $9,550 $19, 100 $19,100 Attorney Fees $5,200 $2,490 $2,490 $5,487 Audit $7,200 $5,417 Lake Maintenance $27,600 $13,800 $13,800 $27,600 $27,600 TOTAL EXPENDITURES $1,706,291 $858,100 $569,617 $1, $1,853,595 Net Operating Income: ($176,120) ($124,204) ($425,982) ($550,186) ($22,825) Non-Operating Exuenses: Other Income $600 $176 $500 $676 $350 Prinicpal Expense - 10/1116 ($270,000) ($135,000) ($135,000) ($270,000) ($285,000) Interest Expense - 10/1 /16 ($119,790) ($119,790) ($119,790) ($110,880) Interest Expense - 4/1/16 ($119,790) ($119,790) ($119,790) ($110,880)" Capital Expenses ($54,000) Other Expenses ($10,000) ($1,400) Bond Assessment ($48,181) ($48,181) TOTAL NON-OPERATING ($621,161) ($254,614) ($254,290) ($508,904) ($555,991) EXCESS REVENUES (EXPENDITURES) ($797,281) ($378,818) ($680,272) ($1,059,090) ($578,816) Page 20

39 THE CROSSINGS AT FLEMING ISLAND COMMUNITY DEVELOPMENT DISTRICT Series -1999, Golf Course Revenue Bonds Amortization Schedule PRINCIPAL DATE BALANCE RATE INTEREST PRINCIPAL TOTAL 1-Apr-05 $ 5,535, % 1-0ct-05 $ 5,535, % 1-Apr-06 $ 5,395, % 1-0ct-06 $ 5,395, % 1-Apr-07 $ 5,245, % 1-0ct-07 $ 5,245, % 1-Apr-08 $ 5,085, % 1-0ct-08 $ 5,085, % 1-Apr-09 $ 4,915, % 1-0ct-09 $ 4,915, % 1-Apr-10 $ 4,735, % 1-0ct-10 $ 4,735, % 1-Apr-11 $ 4,540, % 1-0ct-11 $ 4,540, % 1-Apr-12 $ 4,335, % 1-0ct-12 $ 4,335, % 1-Apr-13 $ 4, 115, % 1-0ct-13 $ 4,115, % 1-Apr-14 $ 3,880, % 1-0ct-14 $ 3,880, % 1-Apr-15 $ 3,630, % 1-0ct-15 $ 3,630, % 1-Apr-16 $ 3,360, % 1-0ct-16 $ 3,360, % 1-Apr-17 $ 3,075, % 1-0ct-17 $ 3,075, % 1-Apr-18 $ 2,770, % 1-0ct-18 $ 2,770, % 1-Apr-19 $ 2,445, % 1-0ct-19 $ 2,445, % 1-Apr-20 $ 2,100, % 1-0ct-20 $ 2,100, % 1-Apr-21 $ 1,730, % 1-Apr-21 $ 1,730, % 1-Apr-22 $ 1,340, % 1-0ct-22 $ 1,340, % 1-Apr-23 $ 920, % 1-0ct-23 $ 920, % 1-Apr-24 $ 475, % $ 475, % $ 102,655.oo- $ $ 182, $ $ 178, $ $ 178, $ $ 173, $ $ 173,U85.00 $ $ 167, $ $ 167, $ $ 162, $ $ 162, $ $ 156, $ $ 156, $ $ 149, $ $ 149, $ $ 143, $ $ 143, $ $ 135, $ $ 135, $ $ 128, $ $ 128, $ $ 119, $ $ 119, $ $ 110, $ $ 110, $ $ 101, $ $ 101, $ $ 91, $ $ 91, $ $ 80, $ $ 80, $ $ 69, $ $ 69, $ $ 57, $ $ 57, $ $ 44, $ $ 44, $ $ 30, $ $ 30, $ $ 15, $ $ 15, $ 140, $ 505, , $ 506, , $ 506, , $ 505, , $ 504, , $ 507, , $ 504, , $ 506, , $ 506, , $ 506, , $ 509, , $ 506, , $ 507, , $ 507, , $ 506, , $ 508, , $ 504, , $ 508, , $ 505, , $ 506, $ 4,595, $ 5,535, $ 10,130, Page 21

40 Golf Fund Revenues: User Fees-Dues: Green/Cart Fees: Merchandise/Food/ Beverage Sales: Rental Revenue: Membership Income Other Fees: Miscellaneous Income: Patron membership dues for all categories Green and Cart fee revenues Golf Shop merchandise sales and all F &B sales (Fodd, NI A Beverage, Beer/Wine, and Liquor) Room rentals and golf club rentals Patron Trail Fees, Handicap dues, and Range Dues Cart repair income, Lesson income, Finance charges, and Daily range fees Expenditures: Salaries: Employee Expenses: Employee Uniforms: Automobile Expenses: Travel & Per Diem: Training: Janitorial Expense: Janitorial Supplies: Tournament & Events: Salaried and hourly full time and part time employee's wages for the Golf Operations, Maintenance, Food and Beverage, and Administrative. Payroll expenses (Taxes, Workers Comp, Health Insurance, and401k) Staff uniforms for all departments Registration and maintenance of work truck Mileage reimbursement and work related travel Training seminars for staff. Janitorial service Janitorial supplies Member and Resident events (Trivia Night, Invitational tournament, etc) Page 22

41 Centralized Services: Course & Grounds Maintenance: Repairs - Equipment: Repairs -Buildings: Operating Supplies: Office Supplies: Postage: Printing and Reproduction: Utility Services: Gas/Oil/Propane: Refuse and Portables: Telephone: Two T-1 lines, Marketing association fees (Fl 1st Coast of Golf), Media buys (Golfers Guide), marketing, Newsletter, CSC office to book tee times (shared laboi costs), -Promotional advertising, Graphic art work, centralized accounting services. Golf course and irrigation repairs Equipment repairs for Golf, F &B, and Maintenance equipment. Repairs to buildings Supplies for Golf (Tees, Towels, Practice Balls), F&B (Linen, Serving Equipment, Paper Supplies), Maintenance Supplies Paper, Envelopes, Register Receipts, etc. Stamps Stationary and letterhead Electric and Water & Sewer F&B Propane, Gas, Diesel, and Hydraulic Oil Waste removal service Maintenance Internet, telephone and admin telephone I I ~ Other Contractual Services: Alarm and Pest Control services, Aerification contractor Music service: Dues and Subscriptions: Chemicals: Sand, Seed and Dressing: Small Tools: Licenses/Permits: Music system for the clubhouse Comcast, FSGA handicap dues, PGA dues, etc Golf course chemicals Over seed, Top dressing, Divot sand, and Mulch Hedge Trimmers, Weed Eaters, Chain Saws, etc Food and Beverage licenses, ASCAP, SESAC Page 23

42 Bad Debt Expense: Cash Short/Over: Write off's for non-recoverable income Point of sale drawers balance Trustee Fees/Bank.Charges: Credit card commissions and Trustee charges Fertilizer - Course Management Fees (Hampton Golf): Rentals and Leases: Insurance: Other Current Charges: Professional Fees: Management Fees (GMS): Lake Maintenance: Golf course fertilizers Golf Club management fees (Hampton) Cart fleet, Maintenance equipment, Dishwasher, Irrigation computer and Copier Liability and Property insurance Real Estate taxes Auditing and attorney fees Management Fees for GMS Treatment of lakes on GC for algae and weeds i I ~ l ' Non-Operating Expenses Inter-fund Transfer In: Principle Expense: Interest Expenses: CDD Assessments Golf Bond Principal Payment Interest on the Golf Bond Page 24

43 The-Crossings at Eleming Island COD Golf Ful"ld FY Budget Five Year Capital Plan Fiscal Year Capital Budget $ $ $ $ $ 50,000 10,000 10,000 10,000 10,000 Page 25

44 I I i

45 The Crossings at Fleming Island COMMUNITY DEVELOPMENT DISTRICT SWIM & TENNIS FUND FY2016 AIJOPTED FY2015 BUDGET ACTUAL THRU 03/31/15 PROJECTED NEXT 6 MONTHS TOTAL PROPOSED PROJECTED AT FY2016 9/30/2015 B\:JDGET REVENUES: User Fees $110,000 Lesson Income $160,000 COD Lesson Income $-18,000 Merchandise/Food/Beverage Sale $100,000 $38,766 $68,494 $7,576 $f6,518 $65,825 $85,130 $9,074 $88,260 $104,591 $110,830 $153,624 $156,674 $16,650 $19,136 $104,778 $109,198 TOTAL REVENUES $388,000 $131,354 $248,289 $379,643 $395,838 COST OF GOODS SOLD: Cost of Goods Sold $52,000 $12,160 $46,781 $58,941 $60,483 GROSS PROFIT $336,000 $119,194 $201,508 $320,702 $335,355 EXPENDITURES: Ol!_erating_ Exl!_enses: Salaries $646,400 Employee Expenses $129,370 Employee Education and Training $3,985 Travel & Per Diem $1,000 Lessons Paid Out $160,000 Promotional Activities $42,000 Repairs & Maintenance $60,000 Other Contractual $22,600 Communications and Freight $24,700 Customer Serivce & Advertising $40,800 Operating Supplies $18,200 Bank Expenses $11,000 Office Supplies $5,840 Printing & Binding $600 Utility Services $101,800 Gas/Oil/Propane $29,000 Chemicals $56,000 Licenses/Permits $2,300 Books/Publications/Subs/Memberships $3,575 Cash Short/Over Rentals & Leases $500 Management Fees - Hampton Golf $36,000 Insurance $700 Taxes $230,529 $47,704 $695 $68,914 $15,067 $20,713 $6,392 $14,303 $18,477 $3,796 $4,778 $1,885 $41,499 $22,160 $16,728 $1,335 $1,144 $4 $18,000 $34 $401,200 $77,452 $1,993 $85,130. $25,600 $25,350 $12,800 $14,172 $20,350 $12,839 $5,500 $3,000 $300 $54,500 $8,650 $28,000 $1,270 $1,075 $10,000 $700 $631,729 $687,676 $125,156 $143,479 $2,688 $3,900 $154,044 $156,674 $40,667 $26,176 $46,063 $59,143 $19,192 $10,736 $28,475 $12,606 $38,827 $39,281 $16,635 $17,851 $10,278 $10,966 $4,885 $11,073 $300 $600 $95,999 $113,615 $30,810 $29,018 $44,728 $56,541 $2,605 $2,890 $2,219 $1,959 $4 $500 $28,000 $36,000 $700 $700 $34 $162 TOTAL EXPENDITURES $1,396,370 $534,157 $789,881 $1,324,038 $1,421,546 Non Ol!_erating lncome!exl!.enses: lnterfund Transfer In $1,060,370 Other Income Capital Expenses $530,185 $139 $530,185 $1,060,370 $1,086,191 $139 TOTAL NON-OPERATING $1,060,370 $530,324 $530,185 $1,060,509 $1,086,191 EXCESS REVENUES (EXPENDITURES) $1 $115,361 ($58,188) $57,173 () Page 26

46 Swim & Tennis Fund Revenues: User Fees: Merchandise and F &B Sales: Roster & League Fees: Pass Holder Income, Guest Fees, Lesson Income, Facility Rental, Activity Income and Finance charges Tennis Merchandise sales and Snack Bar sales (Net of Cost of Goods Sold) This income is generated from fees charged to residents who participate on UST A, Country Club and other local leagues Expenditures: Operating Expenses: Salaries: Employee Expenses: Management Fees (Hampton): Other Contractual: Travel and Per Diem: Bad Debt Expense: Communications and Freight: Utility Services: Repairs and Maintenance: Printing & Binding: Promotional Activities: Office Supplies: Operating Supplies: Gas/Oil/Propane: Salaried and hourly full time and part time employee's wages for the Swim, Tennis, Food and Beverage, Lifestyles, and Administrative Payroll expenses (Taxes, Workers Comp, Health Insurance, and 401K) Swim and Tennis management fees Pest Control, Muzak, Alarm Service, and Employee Uniforms Mileage reimbursement and work related travel Write off's for non-recoverable income Telephone, Postage and Waste Removal Electric and Water & Sewer Equipment repairs for Swim, Tennis and F&B. This also includes all building related repairs Creating of advertising booklets for events Promotion and event expenses for community events and Lifestyle events (Haunted Hayride, etc) Paper, printer cartridges, receipt paper, etc Janitorial supplies, first aid equipment, miscellaneous Swim and Tennis supplies Propane for the Snack Bar and Waterfront pool heaters Page 27

47 Books/Publications/Subs/ Memberships: Centralized Services: Lessons Paid Out: Bank Expenses: Chemicals: Licenses & Permits: Rentals & Leases: Insurance: Answer Tech (Boat Storage) USPTA dues, CMAA dues, Sam's, etc Two T-1 lines, marketing, Newsletter-, centralized accounting Lesson income paidto instructor& Credit card commissions and bank fees Pool chemicals Licenses and pool-permits Rental equipment Liability and property insurance Non-Operating Income/Expenses: Inter-fund Transfer In: CDD Funds to operate the Swim & Tennis operation, over and above revenues generated Page 28

48 SEVENTH ORDER OF BUSINESS

49 CONSUi.TiNG April 13, 2015 Tel: (904) , ext Dave denagy District Manager Governmental Management Services, LLC 475 West Town Place, Suite 114 St. Augustine, FL Re: Updated Review of the Eagle Harbor Golf Operation Dear Dave: The following letter comprises a summary of National Golf Foundation Consulting's ("NGF") review of the Crossings at Fleming Island Community Development District ("COD") golf program - the Eagle Harbor Golf Club ("Eagle Harbor GC" or "EHGC"). This summary is based on the NG F's review of this property in 2009, 2011, 2012, 2014, and again in March The March 2015 site visit included a brief inspection of the EHGC property and meetings with senior golf staff and other COD officials. In addition, the NGF team has collected information to assist with this review, including NGF market research, NGF golf facility research, competitive data, and data collected from previous engagements in the area dating back to This review focuses on changes to the EHGC operation and the market environment since NGF's prior engagements of similar scope in 2009, 2011, 2012 and NG F's summary in 2015 includes a strategic look at the recent performance of the golf facility in light of previous recommendations made by NGF, and to present NGF estimates on new opportunities that will be created by the significant upgrade of the facility scheduled for 2015 (clubhouse expansion and greens upgrade). NGF has considered the EHGC golf facility management, marketing, pricing, physical condition, the local market environment, and a conclusion as to whether the facility has been managed, marketed, and maintained to appropriate industry standards for high quality golf facilities. NGF Consulting w111 then conclude with new recommendations for maximizing the economic potential of the EHGC. This NGF review was managed by Richard Singer, MBA, NG F's Director of Consulting Services, with assistance from Ed Getherall, NGF's Director of Operations. This summary letter is presented to provide an "at-a-glance" summarization of the NGF review, detailing the main findings and NGF recommendations for the COD in the continued operation of its golf course. We nute that a full, comprehensive review of operations was not completed for the COD in this review, and the findings and recommendations contained in this summary letter are the result of a more limited view of the oper-ation. In summary, NGF Consulting finds that although theehgc has clearly been operated and maintained to appropriate standards of "best industrypractices," the fachity's performance continued to decline, mostly as a result of uncontrollable factors such as a declining local economy, changing demographics, declining-interest in golf and unfavorable-weather. Still, the NGF does see that there is more that the CE>D can do to enhance the financial performance of EHGC, and mucl-i of what NGF has-recommended in 1xevious reviews will be enacted upon in 2015, most significantly the upgrade and expansion ofthe Eagle Harbor ciabhouse. This change is expected to enhance activity and revenue at the facility, -but appropriate promotional advertisement of this upgrade-will i-1ave to be the highest priority for EHGC-operators in NATIONAL GOLFFOUNDATION CONSULTING, ING. A Subsidiary of the National Golf Foundation 1150 SOUTH U.S. HIGHWAY ONE, SUITE 401, JUPITER, FL (561) FAX: (561)

50 OVERALL SUMMARY Overall, the review of the Eagle Harbor Golf Club completed by NGF Consulting in March 2015 shows a good quality semi-private golf facility that is being well-maintained and well-operated, with staffing and expense levels fully within industry standards and expected norms. However, uncontrollable factors such as a "dis-interested" local population and a somewhat "out-of-theway" location west of the St. John's River is making it difficult to attract non-local play and continues to limit growth opportunities. As in previous reviews for the CDD, NGF still believes that growth in revenue at EHGC will have to come from the significant 3,255-home Eagle Harbor residential community, both from increased golf and new non-golf activity derived from the upgraded and expanded clubhouse operation. Golf rounds played in the area do seem to have stabilized over the last few years and as NGF predicted in January 2014, the year-over-year rounds and memberships at EHGC also appear to have stabilized. Still, although this remains a difficult market in which to increase rounds and revenues significantly, we believe that the changes to the facility underway for 2015, along with enhanced marketing efforts on both the golf and food & beverage side should allow Hampton Golf's professional golf management team to increase revenues modestly in the coming years. The financial review for Eagle Harbor shows the golf course is still struggling to make ends meet on a day-today basis, let alone cover overhead, depreciation, and debt service. The clubhouse expansion and upgrade in 2015 is expected, by NGF, to generate both additional activity (rounds) from improved conditions and greens, but also additional non-golf revenue from activities such as banquets, luncheons, parties, golf tournaments and weddings. As a result, the CDD should expect some improvement in the facility's fiscal performance, although this improvement is still not likely to cover all fiscal obligations associated with EHGC, and the CDD should be prepared to provide external support for operations and large-scale capital investments. EAGLE HARBOR GC-SIGNIFICANT CHANGES 2015 A summary of the key changes since January 2014 documented by NGF in both the operatior of EHGC and the external environment are noted in this review. The list was not meant to address all issues in the operation, but rather to focus on key items NGF believes are critical in considering recent performance and preparing a long-term strategic plan for EHGC. Organization and Administration There has been no real change to the basic operational organization at Eagle Harbor GC in the last year. The facility is still operated via full-service management agreement with Jacksonvillebased H_ampton Golf via contract to provide management and operations service for the facility for a monthly fee of $7,200 ($8u,400 annually). This structure of fee-for-service management remains in force with Hampton Golf as of FY2015, with the current ag~eement through 09/30/10. The structure in place includes a system of CDD control and professional o_peration of the gdlf course that is cor-tsistent with successful public golf courses nationwide, and offers the CDD both centralized strategic oversight and on-site facility confrel. One benefit of the present operating structure is the inclusion of a multi-facility management oper-ator (Hampton Go1f) that has a cent~alized office with a dedicated saies office, high quality technology, and experienced golf staff that can be tapped for operational and/or maintenance expertise. National Golf Foundation Consulting, Inc. - Eagle Harbor Golf Club 2015 Update Review - 2

51 Specific organizational or administrative changes in the EHGC operation since our last visit in 2014 include: EHGC has a new General Manager (GM) in place since the last NGF visit. The new GM (Charles Petronella) indicated to NGF that he comes to EHGC with a more Food & Beverage managerial background, which appears to be an appropriate fit for EHGC given the new clubhouse investment in It is expected that total F & B revenue should grow and account for a higher share of total EHGC revenue in the coming years. Overall staffing at EHGC is mostly unchanged in the last year. Staff did report that the Golf Superintendent is now the only full-time employee in golf maintenance, as the Assistant Superintendent is now a part-time position (change from 2014). Other changes in 2015 show Hampton Golf preparation for a larger F & B staff beginning in FY2016 to account for increased services in this area related to clubhouse expansion underway in The office space for administration is going to be modified after the 2015 clubhouse renovation. However, the changes will still allow for efficient use of office space and bring in presently under-utilized spaces for new offices. Performance Review (Activity, Revenue and Expense) The NGF has documented the recent performance of EHGC, showing the 2015 trends in rounds activity, revenue and facility expenses. Overall, it appears that year-end FY2014 showed comparable total rounds of golf with a slight reduction in revenue and a slight increase in expense. Early indications for FY2015 show similar rounds activity in the first five months of the fiscal year over last year, but with an 8.1 % improvement in revenue. A summary of the NGF data review shows: Rounds and Member Activity Rounds activity is showing a new "stable" level of around 31,000 rounds, with the FY2014 total only 1.6% higher than FY2013, and 11.0% lower than FY2011 the recent high. Previous data collected by NGF shows EHGC reported a total of 46,593 rounds in FY2003, increasing to 47,815 in FY 2007, with rounds decline ever since. Rounds then began a decline to 43,670 in FY 2008, 36,290 in FY2009 and 34,294 in FY2010. In October 2009, management reported a total of 182 members, down from a high of 270+ in the early part of the decade. Total membership reported in January 2014 was down to 132, falling to 128 in March Eagle Harbor's remaining members are also declining in activity, as average rounds per member was 86.6 in FY2011 and is now under 75 rounds per member in FY The proportion of total play from members has declined from 38% iii FY2010 to around 31.-5% in National Golf Foundation Consulting, Inc. - Eagle Harbor Golf Club 2015 Update Review - 3

52 Eagle Harbor Golf Club Rounds Played (FY ) l Member 13,024 12,563 12,010 9,550 9,738 Guest 21,270 22, ,157 20,845 21,139 Total Rounds. 34,294 34,675 34,167 30,395 30,877 Total Members n/a Member Rounds per Member n/a Member Rounds% of Total 38% 36% 35% 31% 31.5% Source: Eagle Harbor GC. For a frame of reference, the NGF notes that total average rounds per 18 holes in the U.S. now stand at 32,500 for public golf courses, and the local Florida average is around 40,000 rounds per 18 holes in 2014, down about 20% from a 50,000 rounds average recorded in Overall, current rounds played volumes at Eagle Harbor and at most of its competitive set are well below capacity for the year-round northeast Florida golf climate. Capacity is based on a number of factors, including course type and size, fee structure, weather conditions, down time for maintenance, and tee time intervals. Based on Eagle Harbor's market positioning, semi-private status, and other factors, NGF Consulting has estimated a maximum yearly capacity of about 55,000 rounds, though this figure is likely not realistic given the current competitive dynamic in the market. The first five months of FY2015 show consistent activity, although January 2015 was up 22% over January The strong January appears to have off-set the weaker November leading to virtually no change in year-over-year production of rounds ( ). Eagle Harbor Golf Club Total Rounds Played 1st 5-Months (FY ) 5-Month i Oct Nov Dec Jan Feb Total i I FY2014 2,778 2,516 2,622 1,863 2,062 11,841 I FY2015 2,860 2,176 2,440 2,274 2,059 11,8091 Difference : I -32! Source: Eagle Harbor GC. Revenue EHGC generated $1.71 million in total revenue in FY2014, down 1.3% from the $1.734 million in FY2013. Overall, total EHGC revenue is down by about 8.6% from a recent high in FY201 ~. When compared to industry averages, we see that Eagle Harbor is operating- with revenues that are much higher than the average for 'Standard' courses-(middleiee)~ T=he U.S. -average revenue for Standard public golf courses was $1,047,000 (18 holes) irr2012, inclusive of all facility revenue. In addition, the NGF recorded a decline, experienced by the golf-course industry between 2009 and 2012 in golf fee income of around 12.5% between 2007 and A summary of revenue at Eagie Harbor as organized by NGF is shown below: National Golf Foundation Consulting, Inc. - Eagle Harbor Golf Club 2015 Update Review - 4

53 Eagle Harbor Golf Club Total Facility Gross Revenue FY Income User Fees I Dues $417,977 $404,344 $374,511 $353,505 Green/Cart Fees 813, , , ,321 Merchandise Sales 118, , , ,300 Total F & B Sales 388, , , ,418 Rental Income 18, ,086 15,298 16,222 Membership (Other) 59,681 57,863 49,613 50,530 Misc. Income 56,330 52,310 46,907 43,713 Total Revenue $1,872,716 $1,841,242 $1,734,243 $1,711,009 Annual Change in Revenue -1.7% -5.8% -1.3% Total Decline (FY11-FY14) -8.6% Source: Eagle Harbor Golf Club The first five months of FY2015 show improvement in revenue, despite the comparable total rounds activity. The most significant gains have been in the food & beverage segment, consistent with a stronger push in that area as per previous NGF recommendations. The clubhouse upgrades scheduled for FY2015 should lead to even greater improvement in this segment beginning in FY2016. Eagle Harbor Golf Club Total Facility Gross Revenue First Five Months (FY ) 1st 5 1st 5 Income Months Months Change FY2014 FY2015 User Fees I Dues $140,057 $139,479 ($578) Green/Cart Fees 282, ,397 ($5,409) Merchandise Sales 39,116 51,281 $12,165 Total F & B Sales 153, ,335 $47,763 Rental Income 8,199 4,879 ($3,320) Membership (Other) 17,255 20,490 $3,235 Misc. Income 16,424 16,144 ($280) Total Revenue $657,429 $711,005 $53,576 Source: Eagle Ha[bor Golf Club I Average Revenue - Analysis -Of average revenue shows generally consistent performance through FY2014, with an increase in the first five months of FY2015, reflecting the peak season months and higher rate. The average for Standard public golf courses in the U.S. was $23.51 for total golf revenue per round (green, cart, membership), plus an additional $9.70 in ancillary spending. National Golf Foundation Consulting, Inc. - Eagle Harbor Golf Club 2015 Update Review - 5

54 Eagle Harbor Golf Club Average Revenue per Round FY * Months 2015 Total Rounds 34,675 34,167 30,395 30,877 11,809 Average per Round User Fees I Dues $12.05 $11.83 $12.32 $11.45 $11.81 Green/Cart Fees $23.45 $23.29 $24.70 $23.59 $23.49 Merchandise Sales $3.42 $3.50 $3.32 $3.41 $4.34 Total F & B Sales $11.21 $11.57 $13.04 $13.39 $17.05 Rental Income Membership (Other) $1.72 $1.69 $1.63 $1.64 $1.74 Misc. Income $1.62 $1.53 $1.54 $1.42 $1.37 Total Revenue $54.01 $53.89 $57.06 $55.41 $60.21 Source: Eagle Harbor Golf Club. *First 5-months of FY2015 Cost of Sales - Cost of goods sold at EHGC is in line with accepted industry averages in its food and beverage concession area and pro shop, with figures in both areas very consistent year over year. The cost of sales being within industry norms is viewed by NGF Consulting as an indicator of appropriate management practices and employee controls. Eagle Harbor Golf Club Cost of Goods Sold (COGS) FY Eagle Harbor Industry Total Actual% of "Standard" % COGS Revenue of Revenue Pro Shop Merchandise $333, % 70% Food and Beverage $706, %* 40% Source: Eagle Harbor Golf Club and NGF Consulting. * F & B revenue Includes room rental fees. Expenses Basic expenses to operate the facility totaled around $1.66 million in FY2014, excluding depreciation and debt service (interest and principal). This amount represents an increase of 2.3%; bringing the total back close to the FY2012 level. The figures below account for direct expenses to operate the 18-hole facility and do not account for additional items such as depreciation or other fo1ancing charges. The overall expenses to operate this facility are considerably higher than the average for ptiblic golf courses of $998,000 for 18 holes, although this is viewed by NGF as appropriate give11 the high quality nature of the operation and the also higher-than-standard level of total revenue. The division of-expenses for EHGC remains a strong match to industry standarels, providing further evidence of appropriate management. Total labor expense remains at or below 50% in this operation, despite high labor expenses becoming a common problem observed by NGF in our consulting engagements. It is a real strength in the operation that EHGC has held labor cost in appropriate proportion. Another issue is related to the value of services provided, particularly inthe golf course maintenance area where golf playing conditions were 0bserved to be above standard. In sum, it does appear to NGF that the CDD is getting very good value on golf course maintenance services, thus drastic change ts not recommended. National Golf Foundation Consulting, Inc. - Eagle Harbor Golf Club 2015 Update Review - 6

55 Further analysis of total Eagle Harbor expenses follows the summary table below: Eagle Harbor Golf Club Total Facility Expenses FY Expense Salaries & Wages $722,978 $703,310 $695,224 $671,821 Casual Labor/Bonus ,633 Employee expenses 109, , , ,653 Employee Uniforms 621 1,957 1,397 2,493 Employee Advertising/Training 2, ,182 1,455 Janitorial Expense 15,457 14,002 14,100 9,930 Tournament & Events 8,389 12,858 11,472 10,774 Centralized Services 14,471 22,867 19,096 76,032 Course & Grounds 11,366 33,385 35,066 17,426 All Repairs 53, ,251 57,057 54,541 Operating Supplies 52,722 53,319 53,661 66,772 Office Supplies 3,590 6,296 5,076 3,733 Postage + Printing 1, Utilities 82,503 73,843 63,609 69,644 Fuel+ Oil 46,519 42,870 41,628 37,873 Refuse + Portables 11,759 14,157 12, ,280 Telephone 4,695 7,053 8,692 7,839 License I Permits I Contracts 18,270 19,365 21,993 25,702 Music I Cable 2,181 1,944 1,964 2,149 Chemicals I Fertilizer 61,087 70,005 83,365 66,811 Sand I Seed I Dressing 14,332 15,491 14,675 15,284 Trustee Fees 28,412 32,544 31, ,993 Management Fees - Hampton 97,231 97,848 89,701 86,400 Insurance 13,500 18,237 20,084 16,914 Management Fees - GMS 19,675 12,470 19, , 100 Rentals I Leases 200, , , ,536 Other (Incl. Lake Maint. Beg. 2014) (43,388) 23,860 48,303 Total Expense $1,597,504 $1,657,120 $1,626,292 $1,663,389 Annual Change in Expenses 3.7% -1.9% 2.3% Total Increase (FY11-FY14) 4.1% Source: Eagle Harbor Golf Club Summary Total loss on operations for EHGC was just under $145,000 in 2013, reflecting the low rounds activity of that year. Production in 2014 was similar (however the CDD was able to generate a strong excess in the bond refunding deal in 2014, leaving a surplus close to $1.865 million that may be, in part, available for golf capital improvements.) Tb is level of loss on operations is not comparable to the industry, where NGF has estimated that 67% of all public-sector (municipal or agency) golf courses earn revenue to cover basic day-to-day expenses, while only 33% earn enough to cover overhead, depreciation and debt service. It shollld be noted that many of these public-sector golf courses will make severe cuts in expenses to meet the coverage of day-to-day expenses and thereby jeopardize the condition of the golf course, leading to further reductions in revenue. it is clear that EHGC has resisted National Golf Foundation Consulting, Inc. - Eagle Harbor Golf Club 2015 Update Review- 7

56 that strategy and maintained the facility to a high standard, thereby providing a realistic opportunity for fiscal recovery. Eagle Harbor Golf Club Summary of Golf Facility Performance FY Total Revenue $1,872,716 $1,841,242 $1,734,243 $1,711,009 Less: Cost of Sales: $249,248 $259,474 $252,937 $278,344 Total Expense $1,597,504 $1,657,120 $1,626,292 $1,663,389 Net Ordinary Income $25,963 ($75,352) ($144,986) ($230,724) Less: Depreciation $95,597 $75, Net After Depreciation {$69,634) ($151,149) ($144,986) ($230,724) Other Income Other Income $852 $1,102 $427 $2,504,889 2 Club Subsidy $148,400 $150,000 $150,000 $150,000 Total Other Income $149,252 $151,102 $150,427 $2,654,889 Other Expense Interest Expense $299,640 $431,607 $312,510 $312,510 Bond Principal $235,000 $220,000 $235,000 $235,000 Non-Recurring Capital $19,930 $2,800 Other $9,000 $13,047 $8,500 Total Other Expense $563,570 $651,607 $560,557 $558,810 Net Other Income ($414,318) ($500,505) ($410,130) $2,096,079 Net Income ($483,952) ($651,654) ($555,117) $1,865,355 1 Depreciation for FY13-14 not available at time of NGF Consulting report 2 one-time write-off of Developer Note + Line of Credit (bond refunding deal 2014) Physical Condition Review In completing this review for the COD, NGF Consulting has conducted a "Summary of the physical condition of the Eagle-Harbor GC. We note that this summary is not based on a formal il'.lspection of all facilities, but the most recent cursory review completed by NGF in March The Eagle-Harbor golf course appears to be in good condition, with no obvious urgent problems that would need to be addressed immediately to prevent the loss of revenue or entail large capital expense. However, the NGF has previous recommended upgrades to the clubhouse (mainly expansion) and greens, both of which will be addressed in There are also other items at EHGC that could be addressed to keep up with the expected useful life of certain items, as_weli as other investrnents that can-be made to help improve revenue and/or reduce expense in the operation. NGF has provided a prioritized list in our recommendations and also includes NGF's opinion on new investments that are "need to have" vs. "nice to have." The most important areas of upcoming (post 2016) capital investment at EHGC include: National Golf Foundation Consulting, Inc. - Eagle Harbor Golf Club 2015 Update Review - 8

57 Bridges: Ten bridges on the golf course cross various water features, creeks, and streams. These bridges also date back to the original construction in The lone exception would be the bridge on hole #14 that was re-built in-house in 2008 using the original bridge structure and a wood plank overlay and new guardrails. This system appears to have worked very well, and the job was completed with golf course staff in a one-day period at a total hard cost of $4,000. This could be repeated throughout the golf course on other bridges over the next ten years. Drainage: Generally, it appears that EHGC drains relatively well, with only a few locations creating problems. The 2013 calendar year was a particularly wet one, and while the course was closed frequently during rain periods, it tended to re-open quickly after the precipitation ceased. Any poorly drained areas should be stripped and re-contoured to develop a minimum 2% slope to catch basins, then piped to a nearby lake or tied into an existing catch basin. The NGF team does not expect any significant capital investment will be required to improve the drainage of this golf course, but some improvement to the drainage systems will help, but is not deemed to be critical and should not be overly expensive. Review of Fees and Charges The overall fee structure for Eagle Harbor Golf Club is presented in the table below. The table shows very little change in fees since our last review in 2014, with only a reduction in nonresident rates changing for 2015 (highlighted). The NGF believes that EHGC is priced appropriately, given its relative quality and position in the market. As we discuss, rack rates are meaning less and less in this golf market due to the prevalence of fee discounting. Eagle Harbor Fees (2015) Monthly Fees Patron Golden Eagle Executive 1 Active Military Senior Single $225 $190 $190 $190 Family $255 $210 $210 $210 Eagle Harbor Resident Golf Rates Before 12pm From 12-2pm After 2pm After 5pm Mon-Thur. Weekday $34 $29 $25 $20 Fri-Sat-Sun-Holiday $42 $35 $25 $20 Public Golf Rates 3 Before 12pm From 12-2pm After2pm After 5pm Mon-Thllr~ \.\f ~ l~d_a.y $39 ~35 $29 NIA Fri...:Sat-$~n-Holiday $49 $35 $29 N/A Cart Fees 9-Hole Cart $12 18-Hole Cart $20 9 Hole Walking $5 18-Hole Walking $10 Half Trail Fees Sin_gle Annual $400 Family Annual $600 9-Hole (Per Round) $7 18-Hole (Per Round) $12 Daily Fees do not include tax 1 Executiv~under age 40 2 Senior Monday-Friday only 3 Includes cart ,,...,,..,_.. National Golf Foundation Consulting, Inc. - Eagle Harbor Golf Club 2015 Update Review- 9 I

58 Marketing and Technology In 2014, the NGF observed that Hampton Golf's marketing and technology was relatively strong for EHGC, and that the management firm was implementing all of the key activities that are proven to increase sales at golf facilities (website, smartphone app, POS system, program, online tee times, etc.). In 2015, it appears that there has been some upgrade of POS issues and other platforms are continuing to function at a high level. Observations of note in our 2015 review include: Marketing Budget - NGF recommends marketing budgets for golf courses of at least 2% of total gross facility revenue, or roughly $34,000 for Eagle Harbor in Review of budgets shows approximately $19,000 spent on advertising in 2013 (Centralized Services), down from $22,000 in 2012, plus Hampton Golf has a fulltime marketing director with direct cost not tied to EHGC but included with the management fee. Centralized services budget was over $68,500 in FY2014, inclusive of some items not related to direct marketing. POS Upgrade - EHGC uses the /BS POS system for tee time reservations, operations I accounting reporting, retail point-of-purchase reporting, and overall management information systems. The system is provided via Hampton Golf as this POS is in place at all Hampton Golf facilities. The facility reports an upgrade to the system to expand the use in Key upgrades include improvements to online teetimes, customer tracking and performance reporting. Tournaments, outings, groups, programs, lessons - EHGC remains active in these areas. - EHGC currently captures addresses when golfers sign up for 'Coupons & Specials' and via the website's Eagle Harbor mailing list sign-up, and also has access to Hampton Golf's full database. Website - At present, has a link to and this site includes basic information about the golf facility, noting memberships are available and directing prospective golfers to an online tee time reservation system. Hampton Golf reports 4,000 "hits" daily to the website. It appears that Hampton Golf has improved the website since NG F's recommendation in 2014, as the site is less 'busy' and includes more rate information. However, NGF still believes that EHGC would benefit from having a dedicated website with more EHGC-specific information (scorecard, visuals, etc.). Smartphone App - One area where the NGF Consulting review has shown EHGC to be "ahead of the curve" in modern marketing is the new Hampton Golf/Eagle Harbor smartphone app. The smartphone app is a new technology platform for mari<eting golf courses, and Hampton Golfs program is as advanced as any reviewed by NGF. The Hampton Golf smartphone app is free to golfers and includes: o o o o o o o Ability to book tee times directly from your phone Listing of special offers The Eagle Harbor golf course scorecard GPS caddie with distance from t~e phone to the green marketing pro ram tbrough Hampton Golf-database Weather information Mobile texting marketing-of promotions, discounts, specials, etc. Nafional Golf Foundation Consulting, Inc. - Eagle Harbor Golf Club 2015 Update Review - 1 O

59 Marketing and Technology Summary NGF Consulting believes that the Hampton Golf marketing plan, if most or all of its components are being implemented, is a comprehensive program that should result in increased business, or at least maintaining market share. The changes proposed for 2015 will require considerable marketing and promotion to let customers know about the changes and the systems in place at EHGC should help to capture a strong share of the golf market, and the newer clubhouse (banquets, parties, weddings) market that will have to be developed in 2016 and beyond. This review of the POS and other technology systems at Eagle Harbor Golf Club course shows this facility to be relatively advanced in its use of technology when compared to the golf course industry in general. This high quality use of technology will help Eagle Harbor understand its business better and provide assistance in marketing and customer tracking. One area where NGF does see opportunity for improvement is the website for Eagle Harbor, where the present system is somewhat "disjointed," with separate Eagle Harbor community website and the Hampton Golf website (more in marketing and recommendations sections). Food and Beverage Operation The Food & Beverage operation at EHGC Club includes the 'Talon's' brand name and is under the direct operation of the overall facility operator, Hampton Golf. In 2014, the NGF documented the key aspects of the F & B service areas, including: 1. Dining Room - The main dining area in the Eagle Harbor clubhouse includes a bar area, complete with beer/liquor service and three big screen televisions. This main dining area has seating for up to 50 patrons, plus an additional 8 barstools for direct bar service. The area is a menu restaurant operation with tableside service. There are also six to eight tables located just outside the dining room area for outdoor seating. The 'Talon's Terrace' is a walk-up window convenient to the 1st and 10 1 h tees and is used by golfers for convenient food/beverage purchases. 2. Florida Room - Located immediately adjacent to the main dining room is a "Florida" room with additional seating for up to 50 patrons. The room is connected to the main dining room via three glass doors, and is within the building's HVAC system. The space is more open, with full-length windows, a high ceiling, and tile flooring. The tile flooring seems to make the space much noisier than the main dining room. 3. Bogey Room - A separate conference room for small meetings located just behind the main bar, the Bogey Room has seating available for 15 patrons. There is a direct pass through to the bar area for direct service with smaller private parties or functions. The space is equipped with some modern audio-visual (A/V) amenities to help attract smaller corporate meetings to the space. 4. Beverage Cart - The Eagle Harbor cart lease includes one beverage cart for use as the on-course food and beverage service vehicle. Eagle Harbor staff reported using the beverage cart on week-ends, tournament days, and other busy per'iods. 5. Functions - Eagle f-:larbor is capable of hosting large events (wedd'ings, _dinners, parties, etc.) of up to 100 patrons (per-haps as many as 150), when combing the dining room, Florida room and Bogey room for single events, 6. Event Pavilion - The Eagle Harbor outdoor facility is sometimes used for catered events. Eagle Harbor also has a wedding gazebo on the island near the clubhouse. Talon's is open to the public for breakfast, lunch, and-specialty dinners, though there r-emains a perception among some of the public, even people who live in Eagle Harbor, that the restaurant is a private facility (this incorrect perception is reportedly decreasing over time). The staff at National Golf Foundation Consulting, Inc. - Eagle Harbor Golf Club 2015 Update Review - 11

60 EHGC reported to NGF that as much as half of total food and beverage revenues are derived from non-golf patrons and activities. Hampton Golf has been marketing the F & B component of the EHGC extensively, adding several key "theme" nights, including: Mondays: 50-cent wing night+ happy hour through Monday Night Football. Tuesdays: $5 pasta night. Wednesdays: Trivia night with buffet menu. Fridays: Pub night with light fare menu. Sundays: Sunday brunch special $9.95 adults and $6.95 kids. These newer theme nights were added in recent years and have been expanded due to success. Hampton Golf is also actively promoting the wedding/banquet services that are available at Eagle Harbor. Management is also promoting small meetings among civic and professional groups (e.g., Business Network Group on Tuesdays), though corporate events are more difficult to draw due to Eagle Harbor's location. The club employs an F & B manager who is also responsible for selling banquets and large parties. The result of these new initiatives has been improvement in F & B income in FY2014 and early A summary of F & B operations at EHGC in follows: Eagle Harbor GC Food and Beverage Concession Review 1st 5 1st 5 Income Months Months Rental Revenue $18,166 $16,086 $15,298 $16,222 $8,199 $4,879 Total F & B Sales $388,859 $395,342 $396,278 $413,418 $153,572 $201,335 Total Revenue $407,026 $411,428 $411,575 $429,640 $161,771 $206,214 Total Rounds 34,675 34,167 30,395 30,877 11,841 11,809 F & B Rev. per Round $11.71 $12.04 $13.54 $13.92 $ $17.46 Less Cost of Sales: $167,892 $170,684 $179,181 $189,218 $73,473 $84,732 Cost of Sales % 41.2% 41.5% 43.5% 44.0% 45.4% 41.1% Sou~ce: Eagle Harbor GC The "typical" F & B concession at public golf courses pmduces approximately $6.1 O per round, including banquets, with approximately-40% cost of sales ard the labor of three full-time equivalents for the operation. The result is total net earnings on F & B for public goif courses falling close to 10% of revenue at best. Review of the financial records shows EHGC earning almost $430,000 in 2D14, up over 4% from F & B revenue in the first five rrwnths of FY2015 is also up from the strong 2014, with over $206,000 in revenue already generated, which is an increase of 27.5% over first 5 months of On a per-round basis, EHGC has been prodt1cing revenue-well above the standard, with significant increase _observed in the first five months of National Golf Foundation Consulting, Inc. - Eagle Harbor Golf Club 2015 Update Review - 12

61 The NGF noted in 2014 that F & B was an area with strong potential for improvement, and it appears that this improvement has occurred in Revenue has been enhanced through a greater emphasis on marketing, especially to the Eagle Harbor community, and further improvement can be expected with new investment to improve and expand F & B facilities. Specific improvements scheduled for 2015 include key areas previously recommended by NGF: The main dining room and Florida Room will be upgraded and improved with new flooring, paint, fixtures and furniture. The new combined space will allow for larger parties (150 +/-)to be seated comfortably. The entrance foyer will be upgraded for better entrance presentation, and space can be incorporated into the main dining area for the largest of gatherings. The kitchen will be improved and re-organized with little or no change in space. The existing pass-through window on the east side will be closed. The main bar will be moved away from the main dining area I banquet room, over to the west side of the clubhouse in the area presently occupied by the pro shop. The pro shop is moved to the west end of the building, with some reduction in size. The clubhouse will have a new west side entrance for golfers to come directly in to the pro shop for check in. The total amount of office space will be reduced, but mostly under-utilized areas in the office suite will be utilized to meet space requirements. The open outdoor area at the south (golf) side of the clubhouse will be improved, and the fountain removed to provide a more social outdoor space. These changes and expansion of the space will increase capacity and certainly make the clubhouse much more appealing for larger banquets and parties (weddings, etc.) that should bring enhanced revenue. As can be expected with this type of change, there will be increases in operating expenses and Hampton Golf has planned for a slight increase in F & B staff to account for a greater focus in that area of operation. Other Operational Observations In addition to the key operations issues identified above, NGF Consulting also observed several other areas where EHGC has shown improvement, or is otherwise worth noting in this review: Increasing Women's Participation: EHGC continues to be proactive in efforts to increase female participation. This includes enhanced marketing and the introduction of leagues and other social events. This represents a major "industry best practice" and is recommended by NGF in every golf course review of operations. There are many reasons why female golf participation is low, and increasing participation from women is key to increasing revenue and is fully achievable with minor adjustment The most common issues relating to lower female golf participation (course difficulty, retail selection, on-course services, F & B selection, programming, etc.) are all being addressed adequately by EHGC staff. EHGC is one of the few g0lf courses in this regior employing a female Head Golf Professional. Lessons: EHGC continues to be-active in, and places a high priority on, lessons and programs in an effortio drive new business to the facility. Professional golf instruction is available seven days a week. Private instruction can be arranged by appointment, and a number of group clinics are scheduled throughout the week. This active player development program is viewed by NGF Consulting as positive for-tbefuture of the facility and shows that Hampton Golf recognizes the importance. National Golf Foundation Consulting, Inc. - Eagle Harbor Golf Club 2015 Update Review- 13

62 Tournaments and Outings: EHGC has been very active and aggressive in promoting outings and tournaments, and changes to the facility in 2015 will open more opportunities for expanding this area of the business. In 2014, EHGC had reported to NGF that some larger events were difficult to accommodate given the limitations of the clubhouse and the high rounds demand from both members and daily fee players during peak demand periods. The clubhouse expansion and greens improvement should make EHGC much more competitive in the tournament and outings market, thus leading to improved rounds and revenue from this source. Community Involvement: In all of our engagements with EHGC, the NGF has documented relatively low participation from non-residents of the Eagle Harbor community. Review of the membership roll shows all but 6 club members are residents of Eagle Harbor, and, as noted, the total membership is significantly reduced from just a decade ago. Activities leading to greater participation from within the Eagle Harbor development are seen as'key to growth in revenue at EHGC for both golf and F & B. Staff reports several community groups, such as tennis groups, not using the Eagle Harbor clubhouse for after-event gatherings. As such, some upgrade to the Eagle Harbor clubhouse will go a long way toward helping to increase involvement from the Eagle Harbor residential community. MARKET ANALYSIS/BENCHMARKING SUMMARY NGF made several key observations regarding the local Eagle Harbor area golf market, including national trends, local demand/supply, and area golf facility competition. Golf Industry Overview 2015 Golf continued its macro trend toward stabilization in 2014, in contrast to the sensational negative perceptions of the game as portrayed by mainstream media. Socio-demographic, financial and cultural headwinds certainly persist for recreational golf, and it remains highly competitive for golf-related businesses. Golfs pay-for-play green fee revenues and spending on the sport will always be vulnerable to outside forces including weather and the economy, but the game remains incredibly popular and fortunate to have a deep well of interested prospects to activate. Despite the gloomy scenarios portrayed by multiple media outlets and some industry pundits during the past 12 months, the "sky is not falling" on golf. Positive economic indicators, stabilization in participation and rounds played, an increase in weather-adjusted utilization, and the return of private equity funding to the industry are just a few of the under-reported developments in golf that tell the current story of the industry. Participation Despite poor weather that suppressed first-quarter play in 2014, rounds played finished the year only 1.7% behind On a positive note, average rounds per day open were up in 2014 despite a decrease in overall playable days. The increase in rounds played per day open is an encouraging indicator of demand and utilization. The golfer number {participation) appears to be continuing a stabilization trend, with 2014 as the fourth consecutive year at approximately 25 million golfers that played at least one round of golf in the past l2 months. The number of core golfers (eight or more rounds in the last year) also apl'jears to have heldsteady with 2013 figures. Golf Course Supply 20~ 4 - The correction in golf course supply continued in at a level comparable with the previous thr-ee years. According to NGF data, -since the market correction in golf course supply began in 2006, there has been a cumulative net reduction of hole equivalent golf courses, which rep~esents a drop of 4% off the peak supply year of For perspective, golf supply grew by 40% in the previous 20 years ( ). This much-needed move toward supply/demand equilibrium is expected to continue for the next several years. National Golf Foundation Consulting, Inc. - Eagle Harbor Golf Club 2015 Update Review - 14