WHERE DOES OUR MONEY GO? GO? VILLAGES HOMEOWNERS ASSOCIATION - - PowerPoint PPT Presentation

WHERE DOES OUR MONEY GO? GO?

VILLAGES HOMEOWNERS ASSOCIATION NORTH WORKSHOP

CLEARING THE AIR…… ACRONYMS

VCCDD

Village Center Community Development District

VCDDs

Numbered Village Community Development Districts (North of CR466 are VCDD 1, 2, 3 & 4.)

AAC

Amenity Authority Committee

VPSD

Villages Public Safety Department

SLCDD

Sumter Landing Community Development District

NSCUDD

North Sumter County Utility Dependent District

LL/LC

Lady Lake/Lake County portion of The Villages

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THERE IS NO MYSTERY!

There are 15 Special Districts If you live in Lady Lake/Lake County you receive services from one District: VCCDD - Amenities, VPSD, Utilities, Deed Compliance If you live in Marion or Sumter County (North of CR466) you receive services from three Districts: VCCDD - Amenities, VPSD, Utilities NSCUDD - Sanitation (Garbage) VCDD 1, 2, 3 or 4 – Maintenance, Deed Compliance

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ELECTED OFFICIALS

VCDD 1 – Seat 1, Kathy Porter; Seat 2, Ellen Cora, Vice Chair; Seat 3, Paul Sykes; Seat 4,Clyde Long; Seat 5, Bill Mapel, Chair VCDD 2 – Seat 1, Bryan Lifsey, Vice Chair; Seat 2, Robert Gilmartin; Seat 3, John Blum, Chair; Seat 4, Nick Jones; Seat 5, Bart Zoellner VCDD 3 – Seat 1, Steffan Franklin; Seat 2, Bill Ray, Chair; Seat 3, Charlie Cook;Seat 4,Tilman Dean; Seat 5, Gail Lazenby, Vice Chair VCDD 4 – Seat 1, Jim Brockman; Seat 2, Chuck Kazlo, Vice Chair Seat 3, Jim Murphy, Chair; Seat 4, Paul Kelly; Seat 5, Don Deakin VCCDD – Seat 1, Steve Kurtz; Seat 2, Steve Drake, Chair; Seat 3, Art Rowe; Seat 4, Gary Moyer; Seat 5, Tom Brooks, Vice Chair NSCUDD – Seat 1, Bob Risser; Seat 2, Charlie Smith, Vice Chair; Seat 3, Gary Davis, Chair; Seat 4, Dominic Berardi; Seat 5, Allen Vanover; Seat 6, Patricia Francis; Seat 7, Diane Spencer. All emails are first name.last name @ Districtgov.org

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THERE IS NO MYSTERY!

• All Districts are separate government

entities (like Wildwood, Bushnell and Sumter County) and are each governed by State of Florida elected officials.

• Each District Budget is independent of the
• thers.
• All Districts must abide by all applicable State

Statutes for Public Records, Open Meetings, Sunshine Laws, Ethics, Auditing, etc.

• All financial records, audits, minutes, agendas,

and related information are on the web site www.districtgov.org All records are public and are available through a simple request to District Staff (753-4508).

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THERE IS NO MYSTERY!

A copy of this power point presentation is available to anyone who requests it. Please provide an email address if you would like it emailed to you. If you would prefer a hard copy please provide a mailing address or advise if you would like to pick up a copy at our Sumter Landing Office. There are sign up sheets in the back of the room when you leave the presentation this evening or email me at janet.tutt@districtgov.org

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Your District

• ur District Dollar

Dollars! s! Bond Assessments Amenity Fees Utilities Maintenance Assessments Sanitation Services

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Bond on Your Home

• Annually on

your tax bill

• r in whole

at any time (except LL/LC and VCDD 1 after Fiscal Year 2015)

Maintenance Assessments Districts 1, 2, 3 & 4

• Annually on your

Tax Bill

Amenity Fee (VCCDD)

• Monthly

Bill MONEY MONEY AND AND THE THE DISTRICT DISTRICTS WHE WHERE RE DOE DOES S IT GO? IT GO?

Utility Charge

• Monthly

Bill

Sanitation Charge

• Monthly Bill

(except LL/LC)

ALTHOUGH NOT INCLUDED IN THE PRESENTATION, IF YOU HAVE QUESTIONS REGARDING THE FOLLOWING I WILL BE MORE THAN GLAD TO ADDRESS THEM

NUMBERED DISTRICT BOND ASSESSMENTS paid annually or in full at any time and pays for infrastructure required to build home that is maintained through the District Maintenance Assessment. VCCDD UTILITIES Little Sumter Service Area (LSSA) or Village Center Service Area (VCSA) paid monthly based on consumption. SANTITATION North Sumter County Utility Dependent District (NSCUDD) paid monthly at a fixed rate.

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WHAT IS THE DIFFERENCE BETWEEN MY AMENITY FEE AND MAINTENANCE ASSESSMENT?

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AMENITY FEES AND MAINTENANCE ASSESSMENTS

Landscaping (ROW & Common Areas) Stormwater System and retention basins Community Watch Recreation Centers and Activities Gates and Postal Facilities Executive Golf Courses Villages Public Safety Deed Compliance (Lady Lake/Lake County)

MAINTENANCE ASSESSMENTS FOR EACH DISTRICT PAID ANNUALLY ON TAX BILL

Landscaping (ROW & Common Areas) Stormwater System and retention basins Multi Modal Paths Fences Street Lights Sign Walls Villa Roads (and all roads within Marion County except Buena Vista Blvd.) Deed Compliance 11

AMENITY FEES PAID MONTHLY ON BILL WITH SANITATION AND UTILITIES

AMENITY FEES

WHAT ARE THEY? WHAT DO THEY PAY FOR? WHAT ARE REVENUES AND EXPENDITURES?

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AMENITY FEES

• Payment of the Amenity Fee is required through the

Contract you signed when you bought your home. The Contract requires you to adhere to the Declaration of Restrictions (Restrictions) for your unit/lot.

• Amenity Fee is paid in exchange for Amenity Services - It is

a FEE FOR SERVICES.

• Depending on your Restrictions, your Amenity Fee

increases either every year or every three years.

• Depending on your Restrictions, your Amenity Fee increase

is based on when you purchased your property or signed your contract.

• The Amenity Fee increase is based on the CPI and CAN

NOT be increased greater than that amount each year(or every three years depending on your Restrictions).

• The current rate for all new homebuyers is $145.00/month
• There is currently a deferral at $155 which means no

resident pays more than $155 per month

AMENITY FEES

• 21,707 Amenity Fees North of CR466 purchased

from the Developer and there are 240 Amenity Fees paid by Freedom Point = total 21,947

(As information there were 31,141 Amenity Fees south of CR466 as of 12/31/14)

• FY 2014-15 Original Adopted Recreation

Amenity Division Budget is $41,457,396

(Budget year begins 10/1 and ends 9/30 of each year)

RECREATION AMENITY DIVISION (RAD) FY2014/15 BUDGET

$41,457,306

Major Revenues

• $ 37,228,747 - Amenity Fees
• $ 503,180 - General Government (i.e., Late

penalty Fee, Gate Repair, Access Card Fee, electric reimbursement)

• $ 110,700 - Public Safety Charges & Fees (i.e.,

Home/Business Watch, Special Events)

• $ 1,433,304 - Parks & Recreation (i.e., Trail Fees,

Recreation Events, Green Fees and Cart rental)

• $ 1,585,758 - General R&R and Working Capital
• $ 582,207 - Rental Royalties (i.e., RV fees, Room

Rentals and Catering)

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RECREATION AMENITY DIVISION (RAD) FY2014/15 BUDGET

$41,457.306

Major Expenditures

• $ 7,370,820 - Professional Services (i.e., Administrative,

Community Watch, Property Management, Recreation, Engineering, legal, Deed Compliance, Technology)

• $ 3,132,866 - Contractual Services (i.e., Janitorial, VPSD, Golf

Management Services, Systems Management Support)

• $ 1,565,553 - Utilities
• $ 589,902 - Insurance
• $ 7,694,153 - Repairs and Maintenance (i.e., Landscape, Buildings,

Pools, gates, Irrigation)

• $ 681,231 - Operating Supplies (i.e., Fuel, Recreation Supplies,

Operating Supplies, Recreation Supplies, FF&E)

• $ 1,280,214 - Capital Outlay (Buildings, Infrastructure, Capital FF&E)
• $16,451,951 - Debt Service
• $ 2,000,000 - Transfer to General Reserve

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MAINTENANCE ASSESSMENTS

WHAT ARE THEY? WHAT DO THEY PAY FOR? WHAT ARE REVENUES AND EXPENDITURES?

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MAINTENANCE ASSESSMENTS DISTRICTS 1, 2, 3 & 4

What are they? Annual non-ad valorem Maintenance Assessments (non-ad valorem means they are not based on the value of your home) paid by the numbered district residents for the

• peration of the District owned infrastructure (built with

bonds levied on homes) or infrastructure such as retention basins required for construction of the district and deed compliance enforcement. During the budget process, each numbered district Board determines the assessment amount based on the annual operating needs and planned future needs. These fees are calculated considering the amount of revenue needed and distributing that amount to owners based on the acreage and number of lots.

MAINTENANCE ASSESSMENT BUDGETS

DISTRICTS 1, 2, 3 & 4

REVENUES

• Maintenance Assessments- levied on your annual tax bill
• Other Revenues (Interest, Sumter County Road Reimbursement, etc.)

EXPENDITURES

• Administrative Costs (insurance, legal, staffing, overhead, etc.)
• Landscape (right-of-way and common areas, ongoing and replacement)
• Professional Fees (Engineers, Attorneys, etc.)
• Electricity (pumps, street lights, sign walls, etc.)
• Stormwater Facilities (including retention basins)
• Transportation Paths
• Maintenance costs (paint, fence, sign walls, villa roads, etc.)
• Reserves for future expenditures
• Deed Compliance

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ANNUAL MAINTENANCE ASSESSMENT PAYMENT

The Maintenance Assessments are billed annually on the Non-Ad Valorem portion of your annual Property Tax Bill.

NUMBERED D DISTRICTS (RESIDENTIAL)

Districts 1-4 Budgets Reviewed and Approved by Board of Supervisors FISCAL YEAR 2014-2015 ADOPTED BUDGETS District Operating Debt Service Total

1 $1,211,431

• $1,211,431

2 $1,147,098 $475,856 $1,622,954 3 $1,225,743 $1,201,713 $2,427,456 4 $1,718,162 $1,302,295 $3,020,457

Operating, Debt Service and Total Budget can not be compared between numbered districts. Multiple factors go into the budget/fiscal needs/requirements: Size of district, number of homes, amount of infrastructure to maintain, years in existence, etc.

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DISTRICTS 1, 2, 3 & 4 FINANCIAL POSITION

• Each numbered district has

reserves and are financially strong.

• 5 year Capital Improvement

Program

• Investment Advisory

Committee

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CAPITAL IMPROVEMENT PLAN

What is it? What are the Benefits?

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CAPITAL IMPROVEMENT PLAN

 What is a Capital Improvement Plan?

 A management tool to help plan and provide for the

sustainability of the Districts. The CIP provides a breakdown of capital and major maintenance projects for the next 5 years and how the projects will be funded.

 Benefits of a Capital Improvement Plan

 Provides an overview of planned capital/major projects and how

they will be funded.

 Supervisors able to set priorities and make informed decisions

with consideration of future projects

 Management, planning, budget and financial tool.  Allows residents to participate and become better informed on

what and when projects will be done.

 More efficient administration and coordination of capital/major

projects.

INVESTMENT MANAGEMENT SERVICES EACH DISTRICT DEVELOPS ITS OWN INVESTMENT POLICY AND PARTICIPATES IN A DISTRICT WIDE COMMITTEE

Operating Funds

• Citizens First Bank

$ 7,572,394

• State Board of Administration

$ 42,863,352

• Florida Municipal Investment Trust

$ 40,494,033

• Florida Local Government Investment Trust

$ 46,811,080 Trust Funds

• USB Federated

$ 56,245,891

• USB Fidelity

$ 68,316,883 TOTAL: $ 262,302,635

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

Over $262 million in bank, investment and trust accounts, as of September 30, 2014



The Investment Advisory Committee (IAC) was established in 2007.



The IAC consists of one representative from the numbered residential Districts 1-10, Sumter Landing Community Development District, Village Center Community Development District, North Sumter County Utility Dependent District and the Amenity Authority Committee.

MANAGING YOUR AMENITY DOLLARS

VILLAGE CENTER COMMUNITY DEVELOPMENT DISTRICT AMENITY AUTHORITY COMMITTEE

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VILLAGE CENTER COMMUNITY DEVELOPMENT DISTRICT

• Community Development District is a

unit of special purpose government established through State Statute 190

• Geographically, the Village Center

Community Development District encompasses the commercial and District property between Spanish Springs and Rolling Acres road.

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VILLAGE CENTER COMMUNITY DEVELOPMENT DISTRICT

• Purchased the Amenity Fee Revenue

stream from the Villages of Lake Sumter, Inc.

• Responsible for providing amenity

services in exchange for the Amenity fee charged to the property.

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AMENITY AUTHORITY COMMITTEE

Lady Lake/Lake County Lowell Barker District 1 Carl Bell, Vice Chair District 2 Ann Forrester, Chair District 3 John Wilcox District 4 Don Deakin VCCDD Gary Moyer

Email address is first name.last name @ Districtgov.org 33

AMENITY AUTHORITY COMMITTEE (AAC)

• Established by Interlocal Agreement dated April 18, 2008
• Parties to the Interlocal Agreement are: Village Center

Community Development District (VCCDD), Districts 1, 2, 3, 4 and LL/LC

• The AAC consists of six members representing the

VCCDD, Districts 1, 2, 3, 4 and LL/LC

• Members of the AAC are selected through a vote of

landowners within each District ,LL/LC and the VCCDD designates a representative.

• All meetings of the AAC fall under Florida Statutes

relating to public meetings and, as such, all meetings are advertised and open to the public. 34

AMENITY AUTHORITY COMMITTEE (AAC) POWERS

• Discretion over expenditures of all non-bond required Amenity

Funds including fees for Villages Public Safety Department, Amenity Fees, Amenity Facility user fees and all other Amenity Division Revenues

• Rate setting of Amenity Facility user fees
• Operational control over Amenity Facilities and services.
• Approval/disapproval over future debt secured by Amenity Fees
• r Amenity Facilities
• Approval/disapproval over sale, assignment or trade of Amenity

Facilities within the VCCDD Service Territory

• Approval/disapproval of future areas to be brought within the

VCCDD Service Area (VCCDD can bring in up to 300 additional dwelling units without approval or consent)

• The AAC may establish a maximum Amenity Fee for the VCCDD

Service Territory

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AMENITY AUTHORITY COMMITTEE (AAC) LIMITATIONS

• AAC is not authorized to interfere with the day-to-day
• peration of the Amenity Facilities.
• All actions of the AAC shall comply with the terms,

provisions, covenants, representations and warranties described in the Bond Documents.

• AAC must act in compliance with the terms and

provisions of the various Declaration of Restrictions.

• AAC actions are subject to and must be in compliance

with local, state and federal laws and regulations.

• AAC can take no action that would result in a reduction
• f Amenity Facilities or services provided.

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AMENITY AUTHORITY COMMITTEE (AAC) LIMITATIONS

• AAC may not exercise any power over fire services or

funds related to fire services, or setting or allocating management fee by VCCDD or any other facility or activity unrelated to the operation of Amenity Facility or Amenity Fees.

• AAC is required to provide a seamless community and

all policies, procedures, fees and services relating to Amenity Fees and Services to residents by Sumter Landing Community Development District.

• No actions of the AAC may result in residents of The

Villages outside the VCCDD Service Territory being treated differently than residents within the VCCDD Territory. 37

SETTLEMENT FUNDS

Proceeds Interest Projects Balances Future Payments

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SETTLEMENT FUNDS

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Proceeds Through November 2014 25,339,950.96 Interest 655,528.73 2005 Jr Bond Payoff (2,933,268.08) Projects Multi-Modal Path Revenue 900.00 Multi -Modal Path Expenses (9,055,667.11) De La Vista Multi-Modal Path (60,316.71) Paradise Park (1,135,864.48) Southside Renovation (202,270.11) Hacienda Pool Bath (575,309.11) Chula Vista Renovation (606,660.94) Silver Lake Renovation (629,207.80) El Santiago Club Building (465,821.46) Lindsey Golf Maintenance Facility (580,756.54) Woodshop Club Parking Lot (156,041.17) Saddlebrook Pavilion (79,744.28) Tierra del Sol (449,955.99) Gate Connectivity (765,340.73) November 2014 Balance 8,300,155.18

SETTLEMENT FUNDS

December 2014 Annuity Payment 2,767,800.00 December 2014 - September 2015 Interest 30,000.00 December 2014 - September 2015 Projects Paradise Park (873,708.00) Chula Vista Renovation (97.00) El Santiago Club Building (2,087,250.00) Lindsey Golf Maintenance Facility (68,939.00) Tierra del Sol (1,452,071.00) Gate Connectivity (208,541.00) September 2015 Balance 6,407,349.18

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SETTLEMENT FUNDS

Add Future Annuity Payments: December 2015 Annuity Payment 2,811,600.00 2015/16 Est. Interest 50,000.00 December 2016 Annuity Payment 2,229,900.00 2016/17 Est. Interest 50,000.00 December 2017 Est. Annuity Payment 2,482,800.00 2017/18 Est. Interest 50,000.00 December 2018 Annuity Payment 3,104,200.00 2018/19 Est. Interest 50,000.00 December 2019 Annuity Payment 1,004,200.00 2019/20 Est. Interest 50,000.00 December 2020 Annuity Payment 166,700.00

December 2020 Est. Balance

18,456,749.18

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FY2012-13 FY2013-14 FY2014-15 ACTUAL AMENDED FINAL BUDGET

RECREATION AMENITY DIVISION FUND BALANCE FORECAST (EXCLUDING SETTLEMENT FUNDS) FY 2011/12 – FY 2039/40

ASSUMPTIONS:

• Amenity Fee revenue increases 1.5% with deferment at $155 with

no re-sales beginning with FY 13/14

• Operating expenditures increase 2.5% beginning with FY13-14
• Debt service expenditures – Interest is on accrual basis and

principal is on a cash basis

• Capital Improvement Plan expenditures are based on the

FY12 –FY16/17 draft CIP presented to AAC in July 2012. FY 17/18 – FY21/22 based on CIP replacement methodology. FY22-23 – FY 39-40 includes $1,000,000 each year.

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RECREATION AMENITY DIVISION FUND BALANCE FORECAST FY 2011/12 – FY 2039/40

• Based on very conservative assumptions, the Recreation

Division Fund Balance is forecasted to be $65,484,365 (not including the settlement funds) in FY2039/40.

• This forecast was prepared prior to the refinancing of the

bonds for the Amenity Division which will increase the

• verall forecasted revenue by the gross savings of and

additional $12,000,000 over the next 20 years.

• The Amenity Division Fund is solid and adequate funds

are available to maintain facilities and provide services as required.

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SUMMARY

It is my pleasure to present this information to you this evening. Hopefully, your take away consists

• f the following:
• The Board Supervisors and AAC have built upon

the excellent model developed through the CDDs and have taken critical steps to guarantee this community’s financial sustainability.

• In addition to the Supervisors and AAC, credit is

also due our employees who approach stewardship with a passion.

• Fina

Finall lly, , tha thank nk y you

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r par artne tner, , the the Vil illa lage ges s Homeo Homeowne wners s Assoc Associa iati tion

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• r

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gemen ment t an and d ha hard d wor

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k to to ass assur ure the e the f futu uture of e of t this his un unique ique plac place e an and a mod d a model el for

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