CYPRESS SHADOWS COMMUNITY DEVELOPMENT DISTRICT …

CYPRESS SHADOWS COMMUNITY DEVELOPMENT DISTRICT

BOARD OF SUPERVISORS PUBLIC HEARING & REGULAR MEETING

AUGUST 30, 2017

1

CYPRESS SHADOWS

COMMUNITY DEVELOPMENT DISTRICT AGENDA AUGUST 30, 2017 at 4:00 p.m.

The Preserve at Corkscrew Clubhouse 20021 Cypress Shadows Blvd., Estero, FL 33928

District Board of Supervisors Chair Louis Frattarelli Vice-Chair Madelyn Isaacs Supervisor George Zalucki Supervisor Charlie Bawtinheimer Supervisor Kim Brierley District Manager Meritus Brian Lamb

District Attorney Coleman, Yovanovich &Koester, PA Greg Urbancic District Engineer Banks Engineering Services, LLC David Underhill, Jr.

All cellular phones and pagers must be turned off while in the meeting room

The District Agenda is comprised of four different sections:

The meeting will begin at 4:00 p.m. The third section is called Business Items. The Business Items section contains items that require the review and approval of the District Board of Supervisors as a normal course of business. Agendas can be reviewed by contacting the Manager’s office at (813) 397-5120 at least seven days in advance of the scheduled meeting. Requests to place items on the agenda must be submitted in writing with an explanation to the District Manager at least fourteen (14) days prior to the date of the meeting. The fourth section is called Consent Agenda. The consent agenda section contains items for approval by the District Board of Supervisors that may require discussion, motion and votes on an item-by-item basis. If any member of the audience would like to speak on one of the consent agenda, they will need to register with the District Administrator prior to the presentation of that agenda item. The fifth section is called Staff Reports. This section allows the District Administrator, Engineer, and Attorney to update the Board of Supervisors on any pending issues that are being researched for Board action. The final section is called Supervisor Requests and Audience Comments. This is the section in which the Supervisors may request Staff to prepare certain items in an effort to meet residential needs. The Audience Comment portion of the agenda is where individuals may comment on matters that concern the District. Each individual is limited to three (3) minutes for such comment. The Board of Supervisors or Staff is not obligated to provide a response until sufficient time for research or action is warranted. IF THE COMMENT CONCERNS A MAINTENANCE RELATED ITEM, THE ITEM WILL NEED TO BE ADDRESSED BY THE DISTRICT ADMINSTRATOR OUTSIDE THE CONTEXT OF THIS MEETING. Public workshops sessions may be advertised and held in an effort to provide informational services. These sessions allow staff or consultants to discuss a policy or business matter in a more informal manner and allow for lengthy presentations prior to scheduling the item for approval. Typically no motions or votes are made during these sessions.

Pursuant to provisions of the Americans with Disabilities Act, any person requiring special accommodations to participate in this meeting is asked to advise the District Office at (813) 397-5120, at least 48 hours before the meeting. If you are hearing or speech impaired, please contact the Florida Relay Service at 1 (800) 955-8770, who can aid you in contacting the District Office. Any person who decides to appeal any decision made by the Board with respect to any matter considered at the meeting is advised that this same person will need a record of the proceedings and that accordingly, the person may need to ensure that a verbatim record of the proceedings is made, including the testimony and evidence upon which the appeal is to be based.

2

August 30, 2017

Board of Supervisors Cypress Shadows Community Development District

Dear Board Members:

The Public Hearing & Regular Meeting of the Board of Supervisors of the Cypress Shadows Community Development District will be held on Wednesday, August 30, 2017 at 4:00 p.m. at The Preserve at Corkscrew Clubhouse 20021 Cypress Shadows Blvd., Estero, FL 33928. Following is the Agenda for the Meeting:

Call In Number: 1-866-906-9330 Access Code: 4863181

1. CALL TO ORDER/ROLL CALL2. PUBLIC COMMENT ON AGENDA ITEMS3. PUBLIC HEARING ON PROPOSED FISCAL YEAR 2018 BUDGET

A. Open Public Hearing on Proposed Fiscal Year 2018 BudgetB. Staff PresentationsC. Public CommentD. Close Public Hearing on Proposed Fiscal Year 2018 BudgetE. Consideration of Resolution 2017-06; Adopting Fiscal Year 2018 Budget…………..………Tab 01

4. BUSINESS ITEMSA. Consideration of Resolution 2017-07; Assessment Resolution…………………………….…Tab 02 B. Consideration of Resolution 2017-08; Setting FY 2018 Meeting Schedule……………….… Tab 03 C. Transfer Ownership of Phase Two Mitigation Preserve from HOA to CDD ........................... Tab 04 D. Drainage Issue Status and Final Release of FundingE. Phase Two Mitigation Preserve Additional ReplantingF. General Matters of the District

5. CONSENT AGENDAA. Consideration of Minutes of the Board of Supervisors Meeting May 18, 2017 ....................... Tab 05 B. Consideration of Operations and Maintenance Expenditures July ........................................... Tab 06 C. Review of Financial Statements Month Ending July 31, 2017 ................................................. Tab 07

5. STAFF REPORTSA. District CounselB. District EngineerC. District Manager

6. SUPERVISOR REQUESTS AND AUDIENCE COMMENTS7. ADJOURNMENT

We look forward to seeing you at the meeting. In the meantime, if you have any questions, please do not hesitate to call us at (813) 397-5120.

Sincerely,

Brian Lamb District Manager

3

RESOLUTION 2017-06

A RESOLUTION OF THE CYPRESS SHADOWS COMMUNITY DEVELOPMENT DISTRICT ADOPTING THE FINAL BUDGET FOR THE FISCAL YEAR 2018 (BEGINNING OCTOBER 1, 2017 AND ENDING SEPTEMBER 30, 2018)

WHEREAS, the District Manager submitted to the Board of Supervisors (the “Board”) a proposed budget for the next ensuing fiscal year, pursuant to the provision of Chapters 190 and 197, Florida Statutes; and WHEREAS, the Board adopted said proposed budget and set August 30, 2017 as the date for a public hearing thereon, to receive public comments and caused notice of such public hearing to be given by mail and/or publication pursuant to Chapters 190 and 197, Florida Statutes; and WHEREAS, Florida Statutes require that the District Board, by resolution, adopt the final approved budget for the ensuing fiscal year; and

WHEREAS, the Board is empowered to impose special assessments upon the properties within the District. NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF SUPERVISORS OF CYPRESS SHADOWS COMMUNITY DEVELOPMENT DISTRICT THAT:

Section 1. The Proposed Budget (as amended, if applicable) for Fiscal Year 2018 and attached hereto as Exhibit A, is hereby approved and adopted as Final, pursuant to Florida Statutes and incorporated herein by reference.

Section 2. Pursuant to the assessment levy approved in conjunction with the Adoption of the Fiscal

Year 2018 Budget, attached hereto as Exhibit A. Section 3. The Appropriate Officer(s) of the District and the District Manager are authorized to

execute any and all necessary transmittals, certifications, or other acknowledgements or writings, as necessary, to comply with the intent of this Resolution.

Section 4. This Resolution shall become effective immediately upon adoption.

PASSED AND ADOPTED THIS 30TH DAY OF AUGUST, 2017.

CYPRESS SHADOWS

COMMUNITY DEVELOPMENT DISTRICT

CHAIRMAN

ATTEST:

SECRETARY

4

2018

5

SECTION DESCRIPTION PAGE I. BUDGET INTRODUCTION ................................................................................. 1 II. FISCAL YEAR 2017 BUDGET ANALYSIS ........................................................... 2 III. PROPOSED OPERATING BUDGET ................................................................... 3 IV. GENERAL FUND 001 DESCRIPTIONS .............................................................. 4 V. DEBT SERVICE FUNDS ....................................................................................... 7 VI. SCHEDULE OF ANNUAL ASSESSMENTS ........................................................ 9

6

Background Information

The Cypress Shadows Community Development District is a local special purpose government authorized by Chapter 190, Florida Statutes, as amended. The Community Development District (CDD) is an alternative method for planning, financing, acquiring, operating and maintaining community-wide infrastructure in master planned communities. The CDD also is a mechanism that provides a “solution” to the State’s needs for delivery of capital infrastructure to service projected growth without overburdening other governments and their taxpayers. CDDs represent a major advancement in Florida’s effort to manage its growth effectively and efficiently. This allows the community to set a higher standard for construction along with providing a long-term solution to the operation and maintenance of community facilities. The following report represents the District budget for Fiscal Year 2018, which begins on October 1, 2017. The District budget is organized by fund to segregate financial resources and ensure that the segregated resources are used for their intended purpose, and the District has established the following funds. Fund Number Fund Name Services Provided 001 General Fund 200 Debt Service Fund 201 Debt Service Fund

Facilities of the District

The District’s existing facilities include storm-water management (lake and water control structures), wetland preserve areas, street lighting, landscaping, entry signage, entry features, irrigation distribution facilities, recreational center, parks, pool facility, tennis courts and other related public improvements.

Maintenance of the Facilities In order to maintain the facilities, the District conducts hearings to adopt an operating budget each year. This budget includes a detailed description of the maintenance program along with an estimate of the cost of the program. The funding of the maintenance budget is levied as a non-ad valorem assessment on your property by the District Board of Supervisors.

Operations and Maintenance of

Community Facilities Financed by

Non-Ad Valorem Assessments

Collection of Special Assessments

for Debt Service on the Series 2011

Capital Improvement Revenue

Bonds

Collection of Special Assessments

for Debt Service on the Series 2012

Capital Improvement Revenue

Bonds

7

Fiscal Year 2017 Operating Budget

Current Period Actuals10/1/2016 - 3/31/2017

Projected Revenues & Expenditures 4/1/17 to

9/30/17

Total Actuals and Projections Through

09/30/17

Over/(Under) Budget Through 09/30/17

RevenuesSpecial AssessmentsOperations & Maintenance Assmts-Tax Roll 63,424.00 60,964.58 2,459.42 63,424.00 0.00

TOTAL SPECIAL ASSESSMENTS $63,424.00 $60,964.58 $2,459.42 $63,424.00 $0.00

Interest EarningsInterest Earnings 0.00 51.62 0.00 51.62 51.62

TOTAL INTEREST EARNINGS $0.00 $51.62 $0.00 $51.62 $51.62

Other Miscellaneous RevenuesUndesignated Reserves 8,286.00 0.00 38,485.00 38,485.00 30,199.00

TOTAL OTHER MISCELLANEOUS REVENUES $8,286.00 $0.00 $38,485.00 $38,485.00 $30,199.00

Total Revenues $71,710.00 $61,016.20 $40,944.42 $101,960.62 $30,250.62

ExpendituresFinancial & AdministrativeDistrict Manager 34,000.00 16,999.98 17,000.02 34,000.00 0.00Trustees Fees 10,185.00 7,942.20 2,242.80 10,185.00 0.00Auditing Services 4,400.00 500.00 3,400.00 3,900.00 (500.00)Financial Services 0.00 300.00 0.00 300.00 300.00Postage, Phone, Faxes, Copies 75.00 87.10 0.00 87.10 12.10Public Officials Insurance 2,350.00 245.44 1,554.56 1,800.00 (550.00)Legal Advertising 750.00 0.00 750.00 750.00 0.00Bank Fees 250.00 155.66 121.16 276.82 26.82Dues, Licenses & Fees 650.00 625.48 0.00 625.48 (24.52)Website Administration 200.00 0.00 0.00 0.00 (200.00)Transfers 0.00 38,485.00 0.00 38,485.00 38,485.00

TOTAL FINANCIAL & ADMINISTRATIVE $52,860.00 $65,340.86 $25,068.54 $90,409.40 $37,549.40

Legal CounselDistrict Counsel 10,000.00 1,543.75 6,456.25 8,000.00 (2,000.00)

TOTAL LEGAL COUNSEL $10,000.00 $1,543.75 $6,456.25 $8,000.00 ($2,000.00)

Other Physical EnvironmentProperty & Casualty Insurance 8,850.00 3,551.22 0.00 3,551.22 (5,298.78)

TOTAL OTHER PHYSICAL ENVIRONMENT $8,850.00 $3,551.22 $0.00 $3,551.22 ($5,298.78)

Total Expenditures $71,710.00 $70,435.83 $31,524.79 $101,960.62 $30,250.62

EXCESS OF REVENUES OVER/(UNDER) EXPENDITURES $0.00 ($9,419.63) $9,419.63 $0.00 $0.00

8

Fiscal Year 2017 Operating Budget

Total Actuals and Projections Through

09/30/17

Over/(Under) Budget Through 09/30/17

Fiscal Year 2018 Proposed Operating

Budget

Increase / (Decrease) from FY 2017 to FY 2018

RevenuesSpecial AssessmentsOperations & Maintenance Assmts-Tax Roll 63,424.00 63,424.00 0.00 63,424.00 0.00

TOTAL SPECIAL ASSESSMENTS $63,424.00 $63,424.00 $0.00 $63,424.00 $0.00

Interest EarningsInterest Earnings 0.00 51.62 51.62 0.00 0.00

TOTAL INTEREST EARNINGS $0.00 $51.62 $51.62 $0.00 $0.00

Other Miscellaneous RevenuesUndesignated Reserves 8,286.00 38,485.00 30,199.00 8,286.00 0.00

TOTAL OTHER MISCELLANEOUS REVENUES $8,286.00 $38,485.00 $30,199.00 $8,286.00 $0.00

Total Revenues $71,710.00 $101,960.62 $30,250.62 $71,710.00 $0.00

ExpendituresFinancial & AdministrativeDistrict Manager 34,000.00 34,000.00 0.00 34,000.00 0.00Trustees Fees 10,185.00 10,185.00 0.00 10,185.00 0.00Auditing Services 4,400.00 3,900.00 (500.00) 4,400.00 0.00Financial Services 0.00 300.00 300.00 0.00 0.00Postage, Phone, Faxes, Copies 75.00 87.10 12.10 75.00 0.00Public Officials Insurance 2,350.00 1,800.00 (550.00) 2,350.00 0.00Legal Advertising 750.00 750.00 0.00 750.00 0.00Bank Fees 250.00 276.82 26.82 250.00 0.00Dues, Licenses & Fees 650.00 625.48 (24.52) 650.00 0.00Website Administration 200.00 0.00 (200.00) 200.00 0.00Transfers 0.00 38,485.00 38,485.00 0.00 0.00

TOTAL FINANCIAL & ADMINISTRATIVE $52,860.00 $90,409.40 $37,549.40 $52,860.00 $0.00

Legal CounselDistrict Counsel 10,000.00 8,000.00 (2,000.00) 10,000.00 0.00

TOTAL LEGAL COUNSEL $10,000.00 $8,000.00 ($2,000.00) $10,000.00 $0.00

Other Physical EnvironmentProperty & Casualty Insurance 8,850.00 3,551.22 (5,298.78) 8,850.00 0.00

TOTAL OTHER PHYSICAL ENVIRONMENT $8,850.00 $3,551.22 ($5,298.78) $8,850.00 $0.00

Total Expenditures $71,710.00 $101,960.62 $30,250.62 $71,710.00 $0.00

EXCESS OF REVENUES OVER/(UNDER) EXPENDITURES $0.00 $0.00 $0.00 $0.00 $0.00

9

Financial & Administrative

This item relates to the fee assessed for the annual administration of bonds outstanding, as

required within the bond indentures.

District Manager

The District retains the services of a consulting manager, who is responsible for the daily

administration of the District's business, including any and all financial work related to the

Bond Funds and Operating Funds of the District, and preparation of the minutes of the Board of

Supervisors. In addition, the District Manager prepares the Annual Budget(s), implements all

policies of the Board of Supervisors, and attends all meetings of the Board of Supervisors.

District Engineer

Consists of attendance at scheduled meetings of the Board of Supervisors, offering advice and

consultation on all matters related to the works of the District, such as bids for yearly contracts,

operating policy, compliance with regulatory permits, etc.

Disclosure Reporting

On a quarterly and annual basis, disclosure of relevant district information is provided to the

Muni Council, as required within the bond indentures.

Trustees Fees

The District carries Public Officials Liability in the amount of $1,000,000.

Auditing Services

The District is required to annually undertake an independent examination of its books, records

and accounting procedures. This audit is conducted pursuant to State Law and the Rules of the

Auditor General.

Postage, Phone, Fax, Copies

This item refers to the cost of materials and service to produce agendas and conduct day-to-day

business of the District.

Miscellaneous AdministrationThis is required of the District to store its official records.

Public Officials Insurance

Legal Advertising

This is required to conduct the official business of the District in accordance with the Sunshine

Law and other advertisement requirements as indicated by the Florida Statutes.

Bank FeesThe District operates a checking account for expenditures and receipts.

Dues, Licenses & FeesThe District is required to file with the County and State each year.

10

Cost of daily supplies required by the District to facilitate operations.

Miscellaneous FeesTo provide for unbudgeted administrative expenses.

Investment Reporting FeesThis is to provide an investment report to the District on a quarterly basis.

Office Supplies

This item is for street lights, pool, recreation facility and other common element electricity

Technology ServicesThis is to upgrade and keep current the operating components to comply with new governmental

accounting standards along with basic website maintenance.

Website AdministrationThis is for maintenance and administration of the Districts official website.

Capital OutlayThis is to purchase new equipment as required.

Legal CounselDistrict Counsel

Requirements for legal services are estimated at an annual expenditures on an as needed and

also cover such items as attendance at scheduled meetings of the Board of Supervisor's, Contract

preparation and review, etc.

Electric Utility ServicesElectric Utility Services

Property & Casualty Insurance

Garbage/Solid Waste Control ServicesGarbage Collection

This item is for pick up at the recreation facility and parks as needed.

Water-Sewer Combination ServicesWater Utility Services

This item is for the potable and non-potable water used for irrigation.

Other Physical EnvironmentWaterway Management System

This item is for maintaining the multiple waterways that compose the District's waterway

management system and aids in controlling nuisance vegetation that may otherwise restrict the

flow of water.

The District carries $1,000,000 in general liability and also has sovereign immunity.

Entry & Walls MaintenanceThis item is for maintaining the main entry feature and other common area walls.

11

Irrigation Maintenance

Landscape Maintenance

The District contracts with a professional landscape firm to provide service through a public bid

process. This fee does not include replacement material or irrigation repairs.

Miscellaneous Landscape

This item is for any unforeseen circumstances that may effect the appearance of the landscape

program.

Plant Replacement ProgramThis item is for landscape items that may need to be replaced during the year.

Property TaxesThis item is for property taxes assessed to lands within the District.

Repairs necessary for everyday operation of the irrigation system to ensure its effectiveness.

Pool MaintenanceThis item is necessary to contract with a vendor to maintain the pool within state guidelines for

Clubhouse MaintenanceThis item provides for operations, maintenance, and supplies to the District's Amenity Center.

12

CDD Debt Service Assessments 112,598$

TOTAL REVENUES 112,598$

Series 2011 May Bond Interest Payment 46,299$

Series 2011 November Bond Principal Payment 20,000$

Series 2011 November Bond Interest Payment 46,299$

TOTAL EXPENDITURES 112,598$

EXCESS OF REVENUES OVER EXPENDITURES -$

Bonds Outstanding - Period Ending 11/1/2017 1,250,000$

Principal Payment Applied Toward Series 2011 Bonds 20,000$


REVENUES

EXPENDITURES

ANALYSIS OF BONDS OUTSTANDING

13

CDD Debt Service Assessments 206,106$

TOTAL REVENUES 206,106$

Series 2012 May Bond Interest Payment 80,553$

Series 2012 November Bond Principal Payment 45,000$

Series 2012 November Bond Interest Payment 80,553$

TOTAL EXPENDITURES 206,106$

EXCESS OF REVENUES OVER EXPENDITURES -$


Principal Payment Applied Toward Series 2012 Bonds 45,000$


REVENUES

EXPENDITURES

ANALYSIS OF BONDS OUTSTANDING

14

Single Family 50' 1.00 78 $640 $150 $790 $640 $150 $790 $0Single Family 60' 1.20 46 $840 $150 $990 $840 $150 $990 $0Single Family 75' 1.50 33 $1,040 $150 $1,190 $1,040 $150 $1,190 $0

Single Family 50' 1.00 119 $640 $150 $790 $640 $150 $790 $0Single Family 60' 1.20 133 $840 $150 $990 $840 $150 $990 $0Single Family 75' 1.50 32 $1,040 $150 $1,190 $1,040 $150 $1,190 $0

SERIES 2012 BONDS

SERIES 2011 BONDS

Lot Size EAU Value Unit CountDebt Service

Per UnitO&M Per Unit

FY 2016 Total

Assessment

Debt Service

Per UnitO&M Per Unit

FY 2017 Total

Assessment

Total Increase /

(Decrease) in

Annual Assmt

Fiscal Year 2017 Fiscal Year 2018

15

1

RESOLUTION 2017-07

A RESOLUTION OF THE BOARD OF SUPERVISORS OF THE CYPRESS SHADOWS COMMUNITY DEVELOPMENT DISTRICT IMPOSING SPECIAL ASSESSMENTS; PROVIDING FOR COLLECTION AND ENFORCEMENT OF SPECIAL ASSESSMENTS; ADOPTING AND CERTIFYING AN ASSESSMENT ROLL; PROVIDING FOR AMENDMENT OF THE ASSESSMENT ROLL; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE.

WHEREAS, the Cypress Shadows Community Development District (the “District”) is a local unit of special-purpose government established pursuant to Chapter 190, Florida Statutes for the purpose of providing, operating and maintaining infrastructure improvements, facilities and services to the lands within the District; and WHEREAS, the District is located in Lee County, Florida (the “County”); and WHEREAS, the District owns and operates various infrastructure improvements and provides certain services in accordance with Chapter 190, Florida Statutes; and WHEREAS, the Board of Supervisors (the “Board”) of the District hereby determines to undertake various operations and maintenance activities described in the District’s budget for fiscal year 2017/2018 (“Operations and Maintenance Budget”), attached hereto as Exhibit “A” and incorporated as a material part of this Resolution by this reference; and WHEREAS, the District must obtain sufficient funds to provide for the operation and maintenance services and facilities provided by the District as described in the District’s Operation and Maintenance Budget; and WHEREAS, the provision of such services, facilities, and operations is a benefit to lands within the District; and WHEREAS, Chapter 190, Florida Statutes, provides that the District may impose special assessments on benefitted lands within the District; and WHEREAS, Chapter 197, Florida Statutes, provides a mechanism pursuant to which such special assessments may be placed on the County Tax Roll and collected by the County Tax Collector (“Uniform Method”); and WHEREAS, the District has, by resolution and public notice, previously evidenced its intention to utilize the Uniform Method; and WHEREAS, the District has approved an agreement with the County Property Appraiser and County Tax Collector to provide for the collection of special assessments under the Uniform Method; and

16

2

WHEREAS, it is in the best interests of the District to proceed with the imposition of the special assessments on all assessable lands for operations and maintenance in the amount contained in the Operation and Maintenance Budget; and WHEREAS, the District desires to levy and collect special assessments reflecting each parcel’s portion of the District’s Operations and Maintenance Budget; and WHEREAS, it is in the best interests of the District to adopt the Assessment Roll of the District (the “Assessment Roll”) attached to this Resolution as Exhibit “B” and incorporated as a material part of this Resolution by this reference, and to certify a portion of the Assessment Roll on the parcels designated in Exhibit “B” to the County Tax Collector pursuant to the Uniform Method and to directly collect a portion of the assessments on the parcels designated in Exhibit “B” through the direct collection method pursuant to Chapter 190, Florida Statutes; and WHEREAS, it is in the best interests of the District to permit the District Manager to amend the Assessment Roll adopted herein, including that portion certified to the County Tax Collector by this Resolution, as the County Property Appraiser updates the property roll for the County, for such time as authorized by Florida law.

NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF SUPERVISORS OF THE CYPRESS SHADOWS COMMUNITY DEVELOPMENT DISTRICT:

SECTION 1. BENEFIT. The provision of the services, facilities and operations as

described in Exhibit “A” confer a special and peculiar benefit to the lands within the District, which benefits exceed or equal the costs of the assessments. The allocation of the costs to the specially benefited lands is shown in Exhibits “A” and “B”.

SECTION 2. ASSESSMENT IMPOSITION. Pursuant to Chapter 190 of the Florida Statutes, and using procedures authorized by Florida law for the levy and collection of special assessments, a special assessment for operation and maintenance is hereby imposed and levied on benefited lands within the District in accordance with Exhibits “A” and “B”. The lien of the special assessments for operations and maintenance imposed and levied by this Resolution shall be effective upon passage of this Resolution.

SECTION 3. COLLECTION AND DUE DATE. A. Uniform Method Assessments. The collection of the previously levied debt

service assessments and operation and maintenance special assessments on a portion of the platted lots and developed lands shall be at the same time and in the same manner as County taxes in accordance with the Uniform Method, as set forth in Exhibits “A” and “B.”

B. Direct Bill Assessments. The annual installment for the previously levied

debt service assessments, and the annual operations and maintenance assessments, on a

17

3

portion of any undeveloped platted lots and/or any undeveloped lands may be collected directly by the District in accordance with Florida law, as set forth in Exhibits “A” and “B.” Assessments directly collected by the District are due in full on December 1, 2017; provided, however, that, to the extent permitted by law, the assessments due may be paid in several partial, deferred payments and according to the following schedule: 50% due no later than December 1, 2017, 25% due no later than February 1, 2018 and 25% due no later than May 1, 2018. In the event that an assessment payment is not made in accordance with the schedule stated above, the whole assessment – including any remaining partial, deferred payments for Fiscal Year 2018/2019, as well as any future installments of special assessments securing debt service – shall immediately become due and payable; shall accrue interest, penalties in the amount of one percent (1%) per month, and all costs of collection and enforcement; and shall either be enforced pursuant to a foreclosure action, or, at the District’s sole discretion, collected pursuant to the Uniform Method on a future tax bill, which amount may include penalties, interest, and costs of collection and enforcement. Any prejudgment interest on delinquent assessments shall accrue at the applicable rate of any bonds or other debt instruments secured by the special assessments, or, in the case of operations and maintenance assessments, at the applicable statutory prejudgment interest rate. In the event an assessment subject to direct collection by the District shall be delinquent, the District Manager and District Counsel, without further authorization by the Board, may initiate foreclosure proceedings pursuant to Chapter 170 of the Florida Statutes or other applicable law to collect and enforce the whole assessment, as set forth herein.

C. Future Collection Methods. The decision to collect special assessments by

any particular method – e.g., on the tax roll or by direct bill – does not mean that such method will be used to collect special assessments in future years, and the District reserves the right in its sole discretion to select collection methods in any given year, regardless of past practices. The District certifies all assessments for debt service and operations and maintenance for collection pursuant to Chapters 190 and 197, Florida Statutes. All assessments collected by the County Tax Collector shall be due and payable as provided in Chapter 197, Florida Statutes.

SECTION 4. ASSESSMENT ROLL. The District's Assessment Roll, attached to this Resolution as Exhibit “B”, is hereby certified and adopted.

SECTION 5. ASSESSMENT ROLL AMENDMENT. The District Manager shall keep apprised of all updates made to the County property roll by the County Property Appraiser after the date of this Resolution, and shall amend the Districts Assessment Roll in accordance with any such updates, for such time as authorized by Florida law. After any amendment of the Assessment Roll, the District Manager shall file the updates to the tax roll in the District records.

SECTION 6. SEVERABILITY. The invalidity or unenforceability of any one or more provisions of this Resolution shall not affect the validity or enforceability of the remaining portions of this Resolution, or any part thereof.

18

4

SECTION 7. EFFECTIVE DATE. This Resolution shall take effect upon the passage and adoption of this Resolution by the Board. PASSED AND ADOPTED this 30th day of August, 2017. ATTEST: CYPRESS SHADOWS COMMUNITY DEVELOPMENT DISTRICT By: By: Name: Assistant Secretary Chair of the Board of Supervisors Exhibit “A” – Fiscal Year 2017/2018 Budget

19

RESOLUTION 2017-08

A RESOLUTION OF THE BOARD OF SUPERVISORS OF THE CYPRESS SHADOWS COMMUNITY DEVELOPMENT DISTRICT DESIGNATING DATE, TIME AND LOCATION FOR REGULAR MEETINGS OF THE BOARD OF SUPERVISORS AND PROVIDING FOR AN EFFECTIVE DATE HEREOF

WHEREAS, Cypress Shadows Community Development District (hereinafter the “District”) is a local unit of

special-purpose government created and existing pursuant to Chapter 190, Florida Statutes, being situated entirely within Lee, Florida; and

WHEREAS, the District’s Board of Supervisors (hereinafter the “Board”), is statutorily authorized to exercise

the powers granted to the District, but has not heretofore met; and

WHEREAS, all meetings of the Board shall be open to the public and governed by the provisions of Chapter 286, Florida Statutes; and

WHEREAS, the Board is statutorily required to file annually, with the local governing authority and the Florida Department of Community Affairs, a schedule of its regular meetings.

NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF SUPERVISORS OF CYPRESS

SHADOWS COMMUNITY DEVELOPMENT DISTRICT THAT: Section 1. Regular meetings of the Board of Supervisors of the Cypress Shadows Community Development District, for the Fiscal Year 2018, shall be held as provided on the schedule, which is attached hereto and made a part heretofore, as Exhibit A. Section 2. In accordance with Section 189.417(1), Florida Statutes, the District’s Secretary is hereby directed to file annually, with the Lee County and the Florida Department of Community Affairs, a schedule of the District’s regular meetings.

Section 3. This Resolution shall become effective immediately upon its adoption.

PASSED AND ADOPTED THIS 30th DAY OF AUGUST, 2017. CYPRESS SHADOWS

COMMUNITY DEVELOPMENT DISTRICT

CHAIRMAN

ATTEST:

SECRETARY

20

EXHIBIT A

CYPRESS SHADOWS COMMUNITY DEVELOPMENT DISTRICT BOARD OF SUPERVISORS REGULAR MEETING SCHEDULE

FISCAL YEAR 2017/2018

May 17, 2018 4:00 p.m.

August 16, 2018 4:00 p.m.

All meetings will convene at 4:00 p.m. at The Preserve at Corkscrew Clubhouse located at 20021 Cypress Shadows Blvd. Estero, FL 33928

21

22

23

24

25

26

27

28

CYPRESS SHADOWS COMMUNITY DEVELOPMENT DISTRICT May 18, 2017 Minutes of the Regular Meeting

Minutes of the Regular Meeting 1 2

The Regular Meeting of the Board of Supervisors of the Cypress Shadows Community 3 Development District was held on Thursday, May 18, 2017 at 2:00 p.m. at The Preserves at 4 Corkscrew Clubhouse located at 20021 Cypress Shadows Blvd., Estero, Florida 33928. 5

6 1. CALL TO ORDER/ROLL CALL7

8 Mr. Lamb called the Regular Meeting and Public Hearing of the Board of Supervisors of the 9 Cypress Shadows Community Development District to order on Thursday, May 18, 2017 at 10 approximately 2:00 p.m. 11

12 Board Members Present and Constituting a Quorum: 13 Louis Frattarelli Chairman 14 George Zalucki Supervisor 15 Charlie Bawtinheimer Supervisor 16 Kim Brierley Supervisor 17

18 Staff Members Present: 19 Brian Lamb District Manager, Meritus 20 Greg Urbancic District Counsel, Coleman Yovanovich Koester 21

22 There were some audience members/residents in attendance. 23

24 25

2. PUBLIC COMMENT ON AGENDA ITEMS26 27

Mr. Lamb briefly went over the agenda. 28 29

A resident thanked the CDD for helping with the HOA and funding. He asked about getting a 30 survey of the pipes completed before the rainy season and also talked about the study about the 31 storm water drainage system and erosion, as well as maintenance of the lakes. 32

33 Another resident brought up flooding in the community and provided photos for the record. 34

35 Mr. Lamb stated that the District has assigned the operations of all of its assets to the HOA in 36 regards to the drainage in general, including the pipes and lake banks. Mr. Lamb said the HOA has 37 been working towards a resolution, and there is a report about the matter for the Board to review 38 and discuss later during the meeting. 39

40 41

3. BUSINESS ITEMS42 A. Consideration of Resolution 2017-03; Approving Proposed Fiscal Year 201843 Budget & Setting Public Hearing44

45

DRAFT

29

CYPRESS SHADOWSCOMMUNITY DEVELOPMENT DISTRICT Minutes of the Regular Meeting

May 18, 2017 Page 2

Mr. Lamb explained the resolution and how the budget process works. He also went over the 46 budget line items, answered the Board’s questions, and explained the debt service to residents. 47 The public hearing date is scheduled for Wednesday, August 30, 2017 at 4:00 p.m. at this 48 location. 49 50 The full discussion is available on audio recording. 51 52 There was a motion to approve Resolution 2017-03; however, after discussion, the Board 53 decided to rescind the motion and table this item until later in the meeting so they can more 54 review the infrastructure issues and have a better idea of how much repairs will cost. 55 56

B. Consideration of Resolution 2017-04; Re-Designating of Treasurer 57 58 Mr. Lamb explained the resolution to the Board. 59

60

MOTION TO: Approve Resolution 2017-04. 61 MADE BY: Supervisor Frattarelli 62 SECONDED BY: Supervisor Zalucki 63 DISCUSSION: None further 64 RESULT: Called to Vote: Motion PASSED 65 4/0 - Motion Passed Unanimously 66

67 C. Consideration of Resolution 2017-05; Re-Designating Qualified Public 68 Depository 69

70 Mr. Lamb went over the Resolution with the Board and said he recommends SunTrust as an 71 economical choice for the District. 72 73

MOTION TO: Approve Resolution 2017-05. 74 MADE BY: Supervisor Bawtinheimer 75 SECONDED BY: Supervisor Frattarelli 76 DISCUSSION: None further 77 RESULT: Called to Vote: Motion PASSED 78 4/0 - Motion Passed Unanimously 79

80 D. Annual Disclosure of Qualified Electors 81 82

Mr. Lamb announced that Cypress Shadows CDD has 721 qualified electors. 83 84 E. Update on HOA Wetland Conveyance 85

86

DRAFT

30


May 18, 2017 Page 3

Supervisor Frattarelli provided an update on the HOA Wetland Conveyance. There was a notion 87 that the District might consider accepting certain wetland areas, but that has been taken off the 88 table as the Village of Estero has requested that those areas be transferred to the Village. 89 90

G. Appointment of Audit Committee 91 92 Mr. Lamb went over the audit process and answered the Board’s questions. 93 94

MOTION TO: Appoint the Board as the Audit Committee. 95 MADE BY: Supervisor Frattarelli 96 SECONDED BY: Supervisor Zalucki 97 DISCUSSION: None further 98 RESULT: Called to Vote: Motion PASSED 99 4/0 - Motion Passed Unanimously 100

101 H. General Matters of the District 102

103 104

4. CONSENT AGENDA 105 A. Consideration of Minutes of the Board of Supervisors Meeting December 7, 2016 106

B. Consideration of Operations and Maintenance Invoices April 2017 107 C. Review of Financial Statements Month Ending April 30, 2017 108 109 The Board reviewed the Consent Agenda. 110 111

MOTION TO: Approve the Consent Agenda. 112 MADE BY: Supervisor Frattarelli 113 SECONDED BY: Supervisor Zalucki 114 DISCUSSION: None further 115 RESULT: Called to Vote: Motion PASSED 116 4/0 - Motion Passed Unanimously 117

118 3. BUSINESS ITEMS (cont.) 119

F. Update on Drainage Inspection 120 121 The CDD Board and the HOA Board representatives discussed the Drainage Inspection and 122 drainage issues. Mr. Lamb recommended to move on the cleaning of the pipes as soon as 123 possible based on the report. The CDD Board, HOA Board representatives, and Mr. Lamb 124 continued to discuss the drainage, proposals, costs, and timelines for cleaning and repairs. 125 126 The full discussion is available on audio recording. 127

DRAFT

31


May 18, 2017 Page 4

128 A. Consideration of Resolution 2017-03; Approving Proposed Fiscal Year 2018 129

Budget & Setting Public Hearing (cont.) 130 131 Mr. Lamb stated that he does not recommend any changes to the proposed budget based on the 132 information provided from the HOA representatives during the meeting regarding the Drainage 133 Report and drainage issues. The Board continued to discuss some of the budget line items and 134 assessments. 135 136 The full discussion is available on audio recording. 137 138

MOTION TO: Approve Resolution 2017-03. 139 MADE BY: Supervisor Frattarelli 140 SECONDED BY: Supervisor Zalucki 141 DISCUSSION: None further 142 RESULT: Called to Vote: Motion PASSED 143 4/0 - Motion Passed Unanimously 144

145 146 5. STAFF REPORTS 147

A. District Counsel 148 149 Mr. Urbancic went over the recent legislation and some changes regarding the attorney’s fees and 150 public records requests. 151 152

B. District Engineer 153 C. District Manager 154

155 156 6. SUPERVISOR REQUESTS AND AUDIENCE COMMENTS 157 158 There was a question about the developer’s liability if the drainage issues are found to be caused 159 by construction debris. 160 161 A resident brought up a large gasoline stain found on the roadway. 162 163 164

165

DRAFT

32


May 18, 2017 Page 5

7. ADJOURNMENT 166 167

MOTION TO: Adjourn. 168 MADE BY: Supervisor Brierley 169 SECONDED BY: Supervisor Frattarelli 170 DISCUSSION: None further 171 RESULT: Called to Vote: Motion PASSED 172 4/0 - Motion Passed Unanimously 173

174 *These minutes were done in summary format. 175 176 *Each person who decides to appeal any decision made by the Board with respect to any matter 177 considered at the meeting is advised that person may need to ensure that a verbatim record of the 178 proceedings is made, including the testimony and evidence upon which such appeal is to be based. 179 180 Meeting minutes were approved at a meeting by vote of the Board of Supervisors at a publicly noticed 181 meeting held on ________________________. 182 183 184 Signature Signature 185 186 187 Printed Name Printed Name 188 189 Title: Title: 190 □ Chairman □ Secretary 191 □ Vice Chairman □ Assistant Secretary 192 193 194 Recorded by Records Administrator 195 196 197 198 Signature 199 200 201

Date 202

Official District Seal

DRAFT

33

July--2017 Meeting

Cypress Shadows Community Development District

Summary of Operations and Maintenance Invoices

Vendor

Invoice/Account

Number

Amount

Vendor

Total

Comments/Description

Meritus Districts 7940 $ 2,838.08 Management Services - July

Monthly Contract Sub-Total $ 2,838.08

Coleman, Yovanovich & Koester, P.A. 6858 001M 8 $ 1,153.75 Professional Fees - thru 05/31/17

Variable Contract Sub-Total $ 1,153.75

Utilities Sub-Total $ 0.00

Grau and Associates 15882 $ 1,000.00 FY16 Audit - 06/30/17

Regular Services Sub-Total $ 1,000.00

Additional Services Sub-Total $ 0.00

TOTAL: $ 4,991.83

Approved (with any necessary revisions noted):

Signature Printed Name

Title (check one):

Monthly Contract

Variable Contract

Utilities

Regular Services

Additional Services

34

July--2017 Meeting


Summary of Operations and Maintenance Invoices

Vendor

Invoice/Account

Number

Amount

Vendor

Total

Comments/Description

[ ] Chairman [ ] Vice Chairman [ ] Assistant Secretary

35

RE

VIE

WE

Ddthom

as 7/5/2017

36

RE

VIE

WE

Ddthom

as 8/1/2017

37

RE

VIE

WE

Ddthom

as 8/1/2017

38

Cypress Shadows

Community Development District

Financial Statements (Unaudited)

Period Ending July 31, 2017

Meritus Corporation 2005 Pan Am Circle ~ Suite 120 ~ Tampa, FL 33607-1775

Phone (813) 873-7300 ~ Fax (813) 873-7070

39

These notes are to be read in conjunction with the attached compilation report.

Meritus Corp Cypress Shadows CDD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE MONTH ENDED JUNE 2017

At the current time, we did not have access to the bank statements to show the reconciliation. Will be reflected in the following month.

1. O&M Revenue Line 0001 Interest: budget needed.

2. O&M Expense Line 3205 Financial Services: budget needed.

3. O&M Expense Line 4101 Postage, Phone, Faxes, Copies: under budgeted. Budget line requires review/adjustment with Board for the current year and future years.

4. O&M Expense Line 9101 Transfers: budget needed.

5. DS 11 Revenue Line 0001 Interest: budget needed.

6. DS 11 Expense Line 7002 Principal Payments: over budget due to three prepayments of

$5,000. Budget line requires review/adjustment with Board for the current year and future years.

7. DS 12 Revenue Line 0001 Interest: budget needed.

40


Balance Sheet

As of 7/31/2017

(In Whole Numbers)

General Fund Series 2011Debt Service -

Series 2012ADebt Service -

2012AProjects- Series

Capital

GroupAssets Account General Fixed

Long-Term DebtGeneral

Total

Assets

Cash-Operating Account 67,516 0 0 0 0 0 67,516

Bank-Investment Revenue 2011 (001) 0 67,327 0 0 0 0 67,327

Bank-Investment Reserve 2011 (007) 0 113,605 0 0 0 0 113,605

Bank-Investment Interest 2012A (000) 0 0 3 0 0 0 3

Bank-Investment Reserve 2012A (004) 0 0 157,682 0 0 0 157,682

Bank-Investment Revenue 2012A (005) 0 0 178,087 0 0 0 178,087

Bank-Investment Construction 2012A PH4 (009) 0 0 0 0 0 0 0

Prepaid General Liability Insurance 732 0 0 0 0 0 732

Prepaid Trustee Fees 3,020 0 0 0 0 0 3,020

Improvements Other Than Buildings 0 0 0 0 1,280,026 0 1,280,026

Construction Work In Progress 0 0 0 0 8,278,316 0 8,278,316

Amount Available-Debt Service 0 0 0 0 0 623,135 623,135

Amount To Be Provided-Debt Service 0 0 0 0 0 3,321,865 3,321,865

Other 410 0 0 0 0 0 410

Total Assets 71,677 180,932 335,771 0 9,558,342 3,945,000 14,091,722

Liabilities

Accounts Payable 0 0 0 0 0 0 0

Accounts Payable Other 0 0 0 0 0 0 0

Due To Debt Service Fund (0) 0 0 0 0 0 (0)

Revenue Bonds Payable-LT-2011 0 0 0 0 0 1,260,000 1,260,000

Revenue Bonds Payable-Series 2012A 0 0 0 0 0 2,685,000 2,685,000

Other 0 0 0 0 0 0 0

Total Liabilities (0) 0 0 0 0 3,945,000 3,945,000

Fund Equity & Other Credits

Fund Balance-All Other Reserves 0 181,896 333,047 0 0 0 514,943

Fund Balance-Unreserved 92,924 0 0 0 0 0 92,924

Investment In General Fixed Assets 0 0 0 0 9,558,342 0 9,558,342

Other (21,247) (965) 2,725 0 0 0 (19,487)

Total Fund Equity & Other Credits 71,677 180,932 335,771 0 9,558,342 0 10,146,722

Total Liabilities & Fund Equity 71,677 180,932 335,771 0 9,558,342 3,945,000 14,091,722

41


Statement of Revenues and Expenditures

001 - General Fund

From 10/1/2016 Through 7/31/2017

(In Whole Numbers)

Annual Budget Current Period Actual VarianceBudget to Actual

RemainingBudget Percentage

Revenues

Special Assessments - Service Charges

Operations & Maintenance Assmts-Tax Roll 63,424 63,609 185 0 %

Interest Earnings

Interest Earnings 0 52 52 0 %

Other Miscellaneous Revenues

Undesignated Reserves 8,286 0 (8,286) (100)%

Total Revenues 71,710 63,661 (8,049) (11)%

Expenditures

Financial & Administrative

District Manager 34,000 28,333 5,667 17 %

Trustees Fees 10,185 6,421 3,764 37 %

Auditing Services 4,400 2,546 1,854 42 %

Financial Services 0 300 (300) 0 %

Postage, Phone, Faxes, Copies 75 93 (18) (24)%

Public Officials Insurance 2,350 2,295 55 2 %

Legal Advertising 750 0 750 100 %

Bank Fees 250 156 94 38 %

Dues, Licenses & Fees 650 625 25 4 %

Website Administration 200 0 200 100 %

Legal Counsel

District Counsel 10,000 2,698 7,303 73 %

Other Physical Environment

Property & Casualty Insurance 8,850 2,956 5,894 67 %

Transfers 0 38,485 (38,485) 0 %

Total Expenditures 71,710 84,908 (13,198) (18)%

Excess of Revenues Over (Under) Expenditures 0 (21,247) (21,247) 0 %

Excess of Revenue/Other Sources Over Expenditures/Other Uses

0 (21,247) (21,247) 0 %

Fund Balance, Beginning of Period

0 92,924 92,924 0 %

Fund Balance, End of Period 0 71,677 71,677 0 %

42



200 - Debt Service - Series 2011

From 10/1/2016 Through 7/31/2017

(In Whole Numbers)



Revenues

Special Assessments - Capital Improvements

Debt Service Assmts - Tax Roll 114,368 118,160 3,792 3 %

Interest Earnings


Total Revenues 114,368 118,465 4,097 4 %

Expenditures

Debt Service Payments

Interest Payments 94,368 94,430 (62) (0)%

Principal Payments 20,000 25,000 (5,000) (25)%

Total Expenditures 114,368 119,430 (5,062) (4)%

Excess of Revenues Over (Under) Expenditures 0 (965) (965) 0 %


0 (965) (965) 0 %


0 181,896 181,896 0 %


43



201 - Debt Service - Series 2012A

From 10/1/2016 Through 7/31/2017

(In Whole Numbers)



Revenues

Special Assessments - Capital Improvements

Debt Service Assmts - Tax Roll 208,786 211,857 3,071 1 %

Interest Earnings


Total Revenues 208,786 212,402 3,616 2 %

Expenditures

Debt Service Payments

Interest Payments 163,786 164,678 (892) (1)%

Principal Payments 45,000 45,000 0 0 %

Total Expenditures 208,786 209,678 (892) (0)%

Excess of Revenues Over (Under) Expenditures 0 2,725 2,725 0 %


0 2,725 2,725 0 %


0 333,047 333,047 0 %


44



301 - Capital Projects- Series 2012A

From 10/1/2016 Through 7/31/2017

(In Whole Numbers)



Excess of Revenues Over (Under) Expenditures 0 0 0 0 %


0 0 0 0 %


0 0 0 0 %

Fund Balance, End of Period 0 0 0 0 %

45

Documents

CYPRESS SHADOWS COMMUNITY DEVELOPMENT DISTRICT …