Somerset Community Development District
www.somersetcdd.org

Adopted Budget for Fiscal Year 2023-2024 Presented by: Rizzetta & Company, Inc.

120 Richard Jackson Boulevard, Ste #220 Panama City Beach, FL 32407
Phone: 850-334-9055

rizzetta.com

Table of Contents

Page
General Fund Budget for Fiscal Year 2022/2023	1
Reserve Fund Budget for Fiscal Year 2022/2023	4
Debt Service Fund Budget for Fiscal Year 2022/2023	5
Assessments Charts for Fiscal Year 2022/2023	6
General Fund Budget Account Category Descriptions	8
Reserve Fund Budget Account Category Descriptions	11
Debt Service Fund Budget Account Category Descriptions	12

1
Adopted Budget
Somerset Community Development District General Fund
Fiscal Year 2023/2024

Chart of Accounts Classification	
Budget for 2023/2024	
		
REVENUES		
		
Special Assessments		
Tax Roll	$	594,758	
Off Roll	$	280,494	
		
TOTAL REVENUES	$	875,252	
		
Balance Forward from Prior Year	$	-	
		
TOTAL REVENUES AND BALANCE FORWARD	$	875,252	
		
EXPENDITURES - ADMINISTRATIVE		
		
Legislative		
Supervisor Fees	$	5,500	
Financial & Administrative		
Administrative Services	$	6,292	
District Management	$	30,283	
District Engineer	$	19,500	
Disclosure Report	$	1,500	
Trustees Fees	$	3,950	
Assessment Roll	$	6,050	
Financial & Revenue Collections	$	6,050	
Accounting Services	$	21,230	
Auditing Services	$	4,500	
Arbitrage Rebate Calculation	$	500	
Public Officials Liability Insurance	$	3,730	
Legal Advertising	$	2,000	
Dues, Licenses & Fees	$	175	
Miscellaneous Fees	$	250	
ADA Website Hosting, Maintenance,
Remediation and Compliance	
$	7,500	
Legal Counsel		
District Counsel	$	15,000	
		
Administrative Subtotal	$	134,010	
		
EXPENDITURES - FIELD OPERATIONS		
		
Electric Utility Services		
Utility - Street Lights	$	6,450	
Utility - Irrigation	$	36,500	
Stormwater Control		
Lake/Pond Bank Maintenance & Repair	$	5,000	

2
Adopted Budget
Somerset Community Development District General Fund
Fiscal Year 2023/2024

Chart of Accounts Classification	
Budget for 2023/2024	
Stormwater System Maintenance	$	675	
Pond Liner Repair	$	500	
Other Physical Environment		
Facility Management	$	59,592	
Dune Maintenance	$	107,500	

General Liability Insurance & Property Insurance	
$	28,700	
Landscape Maintenance	$	110,500	
Irrigation Maintenance & Repair	$	10,500	
Facilities Management - Additional Oversight	$	-	
Well Maintenance	$	66,575	
Landscape Replacement - Plants, Shrubs, Palms, Sod	
$	45,000	
Irrigation System - Supply Pump Maintenance	$	14,000	
NPDES Inspections	$	30,000	
Irrigation System - Feeder Pump Maintenance	$	2,000	
Irrigation System - Feeder Pump Chemicals	$	1,750	

Landscape Tree Services	
$	28,500	
Pedestrian Path Lighting Maintenance	$	70,000	
Beach and Dune Feasability Study	$	15,000	
Road & Street Facilities		
Slip Lane Maintenance	$	20,000	
Crosswalk Maintenance	$	7,500	
Crosswalk Installation	$	-	
Stormwater System Maintenance	$	25,000	
Street Light/Decorative Light Maintenance	$	40,000	
Contingency		
Miscellaneous Contingency	$	10,000	
		
Field Operations Subtotal	$	741,242	
		
TOTAL EXPENDITURES	$	875,252	
		
EXCESS OF REVENUES OVER EXPENDITURES	$	-	

3
Adopted Budget
Somerset Community Development District Reserve Fund
Fiscal Year 2023/2024

Chart of Accounts Classification	
Budget for 2023/2024	
		
REVENUES		
		
Special Assessments		
Tax Roll	$  489,260	
Off Roll	$  230,740	
		
TOTAL REVENUES	$  720,000	
		
TOTAL REVENUES AND BALANCE FORWARD	$  720,000	

EXPENDITURES		
		
Contingency		
Capital Reserves	$  650,000	
30A Traffic Management	$	70,000	
		
TOTAL EXPENDITURES	$  720,000	
		
EXCESS OF REVENUES OVER EXPENDITURES	$	-	

4
Somerset Community Development District Debt Service
Fiscal Year 2023/2024

Chart of Accounts Classification	Series 2022 (Refunding)	Budget for 2023/2024	
			
REVENUES			
Special Assessments			
Net Special Assessments	$963,480.69	$963,480.69	
			
TOTAL REVENUES	$963,480.69	$963,480.69	

EXPENDITURES			
Administrative			
Financial & Administrative			
Debt Service Obligation	$963,480.69	$963,480.69	
Administrative Subtotal	$963,480.69	$963,480.69	
			
TOTAL EXPENDITURES	$963,480.69	$963,480.69	
			
EXCESS OF REVENUES OVER EXPENDITURES	$0.00	$0.00	

Walton County Collecction Costs (2%) and Early Payment Discounts (4%):	6.0%

Gross assessments	$1,024,979.46

Notes:
1. Tax Roll Collection Costs and Early Payment Discounts are 6.0% of Tax Roll. Budgeted net of tax roll assessments. See Assessment Table.

SOMERSET COMMUNITY DEVELOPMENT DISTRICT

FISCAL YEAR 2023/2024 O&M & DEBT SERVICE ASSESSMENT SCHEDULE

(1) Due to a change in development plan and increase in unit density, the Series 2022 debt service assessments
have been reallocated.

5

2023/2024 O&M Budget		$1,595,252.00	
Waslton County Collection Costs @	2%	$33,941.53	
Early Payment Discount @	4%	$67,883.06	
2023/2024 Total		$1,697,076.60	

2022/2023 O&M Budget	$1,516,648.00		
2023/2024 O&M Budget	$1,595,252.00		
Total Difference	
$78,604.00		

PER UNIT ANNUAL ASSESSMENT	

Proposed Increase / Decrease	
	2022/2023	2023/2024	$	%	

Bond Series 2022 Debt Service - Commercial(1)	
$939.33	
$939.33	
$0.00	
0.00%	
Operations/Maintenance - Commercial	$1,478.63	$1,522.95	$44.32	3.00%	
Total	$2,417.96	$2,462.28	$44.32	1.83%	

Bond Series 2022 Debt Service - Single Family(1)	
$1,252.44	
$1,252.44	
$0.00	
0.00%	
Operations/Maintenance - Single Family	$1,971.51	$2,030.60	$59.09	3.00%	
Total	$3,223.95	$3,283.04	$59.09	1.83%	

6

SOMERSET COMMUNITY DEVELOPMENT DISTRICT

FISCAL YEAR 2023/2024 O&M & DEBT SERVICE ASSESSMENT SCHEDULE

TOTAL O&M BUDGET		$1,595,252.00	
COLLECTION COSTS @	2.0%	$33,941.53	
EARLY PAYMENT DISCOUNT @	4.0%		$67,883.06		
TOTAL O&M ASSESSMENT		  $1,697,076.60		

PER LOT ANNUAL ASSESSMENT	
	SERIES 2022		
	(REFUNDING)		
O&M (2)	DEBT SERVICE (3)(5)	TOTAL (4)	

$2,030.60	
$1,252.44	
$3,283.04	
$1,522.95	$939.33	$2,462.28	

$2,030.60	

$1,252.44	

$3,283.04	
$1,522.95	$939.33	$2,462.28	

	UNITS ASSESSED			ALLOCATION OF O&M ASSESSMENT		TOTAL SERIES 2022

LOT SIZE PLATTED LOTS	
O&M	(REFUNDING)
DEBT SERVICE (1)		
EAU FACTOR	TOTAL EAU's	% TOTAL EAU's	TOTAL O&M BUDGET		SERIES 2022 (REFUNDING)
DEBT SERVICE ASSESSMENT	

SINGLE & MULTI FAMILY	
558	
558		
1.00	
558.00	
66.77%	
$1,133,076.57		
$698,861.52	
COMMERCIAL	13.22	13.22	1K sf	0.75	9.92	1.19%	$20,133.43		$12,417.94	
Total Platted	571.22	571.22			567.92	67.95%	$1,153,210.00		$711,279.46	

UNPLATTED LOTS										
SINGLE & MULTI FAMILY	229	229		1.00	229.00	27.40%	$465,008.12		$268,214.76	
COMMERCIAL	51.78	51.78	1K sf	0.75	38.84	4.65%	$78,858.47		$45,485.24	
Total Unplatted	280.78	280.78			267.84	32.05%	$543,866.60		$313,700.00	
										
TOTAL COMMUNITY	852	852			835.75	100.00%	$1,697,076.60		$1,024,979.46	

 	 	

LESS: Walton County Collection Costs (2%) and Early Payment Discounts (4%):	($101,824.60)	($61,498.77)

Net Revenue to be Collected:	  $1,595,252.00 	$963,480.69

	PER ACRE ASSESSMENTS - UNPLATTED	

UNPLAT BY ACREAGE (2)	
34.53	
34.53	
$543,866.60	
$313,700.00	O&M
$15,751.92	DEBT SERVICE
$9,085.64	TOTAL
$24,837.56	

(1) Reflects the number of total lots with Series 2022 debt outstanding.

(2) Assessments are allocated on an equal assessment per acre basis until lots are platted.

(3) Annual debt service assessment per lot adopted in connection with the Series 2022 bond issue. Annual assessment includes principal, interest, Walton County collection costs and early payment discounts.

(4) Annual assessment that will appear on November 2023 Walton County property tax bill. Amount shown includes all applicable collection costs and early payment discounts (up to 4% if paid early).

7

GENERAL FUND BUDGET ACCOUNT CATEGORY DESCRIPTION

The General Fund Budget Account Category Descriptions are subject to change at any time depending on its application to the District. Please note, not all General Fund Budget Account Category Descriptions are applicable to the District indicated above. Uses of the descriptions contained herein are intended for general reference.

REVENUES:

Tax Roll: The District levies Non-Ad Valorem Special Assessments on all of the assessable property within the District to pay for operating expenditures incurred during the Fiscal Year. The assessments may be collected in two ways. The first is by placing them on the County’s Tax Roll, to be collected with the County’s Annual Property Tax Billing. This method is only available to land properly platted within the time limits prescribed by the County.

EXPENDITURES – ADMINISTRATIVE:

Supervisor Fees: The District may compensate its supervisors within the appropriate statutory limits of
$200.00 maximum per meeting within an annual cap of $4,800.00 per supervisor.

Administrative Services: The District will incur expenditures for the day to today operation of District matters. These services include support for the District Management function, recording and preparation of meeting minutes, records retention and maintenance in accordance with Chapter 119, Florida Statutes, and the District’s adopted Rules of Procedure, preparation and delivery of agenda, overnight deliveries, facsimiles, and phone calls.

District Management: The District as required by statute, will contract with a firm to provide for the management and administration of the District’s day-to-day needs. These services include the conducting of board meetings, workshops, the overall administration of District functions, all required state, and local filings, preparation of the annual budget, purchasing, risk management, preparing various resolutions, and all other secretarial duties requested by the District throughout the year is also reflected in this amount.

District Engineer: The District’s engineer provides general engineering services to the District. Among these services are attendance at and preparation for monthly board meetings, review of construction invoices and all other engineering services requested by the district throughout the year.

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Disclosure Report: The District is required to file quarterly and annual disclosure reports, as required in the District’s Trust Indenture, with the specified repositories. This is contracted out to a third party in compliance with the Trust Indenture.

Trustee’s Fees: The District will incur annual trustee’s fees upon the issuance of bonds for the oversight of the various accounts relating to the bond issues.

Assessment Roll: The District will contract with a firm to prepare, maintain and certify the assessment roll(s) and annually levy a non-ad Valorem assessment for operating and debt service expenses.

Financial & Revenue Collections: Services of the Collection Agent include all functions necessary for the timely billing and collection and reporting of District assessments in order to ensure adequate funds to meet the District’s debt service and operations and maintenance obligations. The Collection Agent also maintains and updates the District’s lien book(s) annually and provides for the release of liens on the property after the full collection of bond debt levied on particular properties.

Accounting Services: Services include the preparation and delivery of the District’s financial statements in accordance with Governmental Accounting Standards, accounts payable and accounts receivable functions, asset tracking, investment tracking, capital program administration and requisition processing, filing of annual reports required by the State of Florida and monitoring of trust account activity.

Auditing Services: The District is required annually to conduct an audit of its financial records by an Independent Certified Public Accounting firm, once it reaches certain revenue and expenditure levels, or has issued bonds and incurred debt.

Arbitrage Rebate Calculation: The District is required to calculate the interest earned from bond proceeds each year pursuant to the Internal Revenue Code of 1986. The Rebate Analyst is required to verify that the District has not received earnings higher than the yield of the bonds.

Public Officials Liability Insurance: The District will incur expenditures for public officials’ liability insurance for the Board and Staff.

Legal Advertising: The District will incur expenditures related to legal advertising. The items for which the District will advertise include, but are not limited to meeting schedules, special meeting notices, and public hearings, bidding etc. for the District based on statutory guidelines

Bank Fees: The District will incur bank service charges during the year.

Dues, Licenses & Fees: The District is required to pay an annual fee to the Department of Economic Opportunity, along with other items which may require licenses or permits, etc.

Miscellaneous Fees: The District could incur miscellaneous throughout the year, which may not fit into any standard categories.

Website Hosting, Maintenance and Email: The District may incur fees as they relate to the development and ongoing maintenance of its own website along with possible email services if requested.

9

District Counsel: The District’s legal counsel provides general legal services to the District. Among these services are attendance at and preparation for monthly board meetings, review of operating and maintenance contracts and all other legal services requested by the district throughout the year.

EXPENDITURES - FIELD OPERATIONS:

Electric Utility Services: The District will incur electric utility expenditures for general purposes such as irrigation timers, lift station pumps, fountains, etc.

Street Lights: The District may have expenditures relating to street lights throughout the community. These may be restricted to main arterial roads or in some cases to all street lights within the District’s boundaries.

Aquatic Maintenance: Expenses related to the care and maintenance of the lakes and ponds for the control of nuisance plant and algae species.

Lake/Pond Bank Maintenance: The District may incur expenditures to maintain lake banks, etc. for the ponds and lakes within the District’s boundaries, along with planting of beneficial aquatic plants, stocking of fish, mowing and landscaping of the banks as the District determines necessary.

General Liability Insurance: The District will incur fees to insure items owned by the District for its general liability needs

Property Insurance: The District will incur fees to insure items owned by the District for its property needs

Landscape Maintenance: The District will incur expenditures to maintain the rights-of-way, median strips, recreational facilities including pond banks, entryways, and similar planting areas within the District. These services include but are not limited to monthly landscape maintenance, fertilizer, pesticides, annuals, mulch, and irrigation repairs.

Irrigation Maintenance: The District will incur expenditures related to the maintenance of the irrigation systems.

Irrigation Repairs: The District will incur expenditures related to repairs of the irrigation systems.

Landscape Replacement: Expenditures related to replacement of turf, trees, shrubs etc.

Miscellaneous Fees: The District may incur miscellaneous expenses that do not readily fit into defined categories in field operations.

Facilities Management Contract: The District may contract with a firm to provide for the oversight of its recreation facilities.

10

Miscellaneous Fees: Monies collected and allocated for fees that the District could incur throughout the year, which may not fit into any standard categories.

Miscellaneous Contingency: Monies collected and allocated for expenses that the District could incur throughout the year, which may not fit into any standard categories.

Capital Outlay: Monies collected and allocated for various projects as they relate to public improvements.

RESERVE FUND BUDGET ACCOUNT CATEGORY DESCRIPTION

The Reserve Fund Budget Account Category Descriptions are subject to change at any time depending on its application to the District. Please note, not all Reserve Fund Budget Account Category Descriptions are applicable to the District indicated above. Uses of the descriptions contained herein are intended for general reference.

REVENUES:

Tax Roll: The District levies Non-Ad Valorem Special Assessments on all of the assessable property within the District to pay for operating expenditures incurred during the Fiscal Year. The assessments may be collected in two ways. The first is by placing them on the County’s Tax Roll, to be collected with the County’s Annual Property Tax Billing. This method is only available to land properly platted within the time limits prescribed by the County.

Off Roll: For lands not on the tax roll and that is by way of a direct bill from the District to the appropriate property owner.

Developer Contributions: The District may enter into a funding agreement and receive certain prescribed dollars from the Developer to off-set expenditures of the District.

Miscellaneous Revenues: The District may receive monies for the sale or provision of electronic access cards, entry decals etc.

EXPENDITURES:

Capital Reserve: Monies collected and allocated for the future repair and replacement of various capital improvements such as club facilities, swimming pools, athletic courts, roads, etc.

Capital Outlay: Monies collected and allocated for various projects as they relate to public improvements.

11

DEBT SERVICE FUND BUDGET ACCOUNT CATEGORY DESCRIPTION

The Debt Service Fund Budget Account Category Descriptions are subject to change at any time depending on its application to the District. Please note, not all Debt Service Fund Budget Account Category Descriptions are applicable to the District indicated above. Uses of the descriptions contained herein are intended for general reference.

REVENUES:

Special Assessments: The District may levy special assessments to repay the debt incurred by the sale of bonds to raise working capital for certain public improvements. The assessments may be collected in the same fashion as described in the Operations and Maintenance Assessments.

EXPENDITURES – ADMINISTRATIVE:

Bank Fees: The District may incur bank service charges during the year.

Debt Service Obligation: This would a combination of the principal and interest payment to satisfy the annual repayment of the bond issue debt.