WaterGrass Community Development District II May 20, 2020 ... · 2020/05/20 · WaterGrass Community Development District II Agenda Inframark, Infrastructure Management Services

WaterGrass Community

Development District II

May 20, 2020

Meeting

Agenda Package

Meeting URL: https://us02web.zoom.us/j/86163447085 Meeting ID: 861-6344-7085

Call in number: (929) 205-6099

Agenda Page 1

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WaterGrass Community Development District II Inframark, Infrastructure Management Services

210 North University Drive, Suite 702 • Coral Springs, Florida 33071 Telephone: (954) 603-0033 • Fax: (954) 345-1292

May 13, 2020 Board of Supervisors WaterGrass Community Development District II Dear Board Members: The regular meeting of the Board of Supervisors of the WaterGrass Community Development District II

will be held on Wednesday, May 20, 2020 at 5:00 p.m. via Zoom: Meeting

URL: https://us02web.zoom.us/j/86163447085, Meeting ID: 861-6344-7085, Call in Number:

(929) 205-6099. The following is the advance agenda for the meeting:

1. Roll Call 2. Approval of Consent Agenda

A. January 15, 2020 Meeting Minutes B. Financial Statements C. Acceptance of Fiscal Year 2019 Audit D. Resolution 2020-3 General Election E. Number of Registered voters (793)

3. Staff Reports A. Amenity Manager B. District Manager

i. Consideration of Resolution 2020-4 Approving the Fiscal Year 2021 Budget and Setting a Public Hearing

4. Supervisor Requests 5. Audience Comments 6. Adjournment

All supporting documentation is enclosed or will be distributed at the meeting. The balance of the agenda is routine in nature and staff will give their reports at the meeting. In the meantime, if you have any questions, please contact me. Sincerely,

Andrew P. Mendenhall, PMP Andrew P. Mendenhall, PMP District Manager

Agenda Page 2



Second Order of Business

Agenda Page 3

2A.

Agenda Page 4

unapproved

MINUTES OF MEETING

WATERGRASS

COMMUNITY DEVELOPMENT DISTRICT II The regular meeting of the Board of Supervisors of the WaterGrass Community

Development District II was held on Wednesday, January 15, 2020 at 10:00 a.m. in the offices of

Inframark, 2654 Cypress Ridge Blvd., Suite 101, Wesley Chapel, Florida.

Present and constituting a quorum were: Paul Nettina Chairman Craig Weber Vice Chairperson Julie Clayton Assistant Secretary Pete Williams Assistant Secretary Also present were: Andy Mendenhall District Manager Gabe Mena Clubhouse Manager Ronald Marcus Down to Earth Jay Hunting Florida Land Design and Permitting Laura Miles Florida Native Nursery Virgil Stiles Florida Native Nursery Numerous Residents The following is a summary of the discussions and actions taken.

FIRST ORDER OF BUSINESS Roll Call

SECOND ORDER OF BUSINESS Approval of Consent Agenda

A. October 16, 2019 Meeting Minutes

B. Financial Statements

C. Resolution 2020-2 Records Retention Adoption State Guidelines

D. Release of Special Assessment Liens

On MOTION by Mr. Weber seconded by Mr. Nettina with all in favor the consent agenda was approved.

Agenda Page 5

January 15, 2020 WaterGrass CDD II

unapproved

2

THIRD ORDER OF BUSINESS Audience Comments on Agenda Items

• Residents commented on driving golf carts on sidewalks; lack of police presence; pond

maintenance; adding shrubs as noise buffer behind Villas by Over Pass Road; landscape

maintenance; and location of CDD meetings.

• Representatives from Florida Natives Nursery and Florida Land Design and Permitting

addressed vegetation in the ponds; controlling duckweed and pickleweed; herbicide

application; and aeration systems.

• Questions and comments were addressed.

• The Board requested pond plants be thinned out; and aeration proposals be obtained for

discussion during the budget process.

FOURTH ORDER OF BUSINESS Staff Reports

A. Amenity Manager

• Mr. Mena commented on the broken camera in the clubhouse; efficiency upgrade of

clubhouse lighting; resurfacing of the tennis court; summer sport camp; 5k race

insurance/traffic control; and movie nights.

• There was consensus from the Board to replace the clubhouse camera.

B. District Manager

• None

FIFTH ORDER OF BUSINESS Supervisors’ Requests

• None

SIXTH ORDER OF BUSINESS Adjournment

On MOTION by Mr. Weber seconded by Mr. Nettina with all in favor the meeting was adjourned.

Paul Nettina Chairman

Agenda Page 6

2B.

Agenda Page 7

Watergrass

Community Development District II

Financial Report

April 30, 2020

Agenda Page 8

WATERGRASS


FINANCIAL STATEMENTS

Balance Sheet - All Funds ……………….……..…………...…………………… Page 1

Statement of Revenues, Expenditures and Changes in Fund Balance

General Fund ……………….……..…………...…………………… Page 2 - 4

Debt Service Funds ……………….……..…………...…………………… Page 5 - 7

Project Fund ……………….……..…………...…………………… Page 8

SUPPORTING SCHEDULES

Non-Ad Valorem Special Assessments ……………….……..…………...…………………… Page 9

Cash and Investment Schedule ……………….……..…………...…………………… Page 10

Check Register ……………….……..…………...…………………… Page 11 - 18

Table of Contents

Agenda Page 9

April 30, 2020

Watergrass


Financial Statements

(Unaudited)

Agenda Page 10

WATERGRASS


Balance SheetApril 30, 2020

Governmental Funds

ACCOUNT DESCRIPTION

GENERAL

FUND

SERIES 2018

DEBT

SERVICE

FUND

2018

PROJECT

FUND TOTAL

ASSETS

Cash - Checking Account 210,417$ -$ -$ 210,417$

Accounts Receivable 3,010 - - 3,010

Investments:

Money Market Account 426,225 - - 426,225

Construction Fund - - 329,475 329,475

Reserve Fund - 258,753 - 258,753

Revenue Fund - 441,489 - 441,489

Prepaid Items 1,120 - - 1,120

Deposits 3,226 - - 3,226

TOTAL ASSETS 643,998$ 700,242$ 329,475$ 1,673,715$

LIABILITIES

Accounts Payable 62,772$ -$ -$ 62,772$

TOTAL LIABILITIES 62,772 - - 62,772

FUND BALANCES

Nonspendable:

Prepaid Items 1,120 - - 1,120

Deposits 3,226 - - 3,226

Restricted for:

Debt Service - 700,242 - 700,242

Capital Projects - - 329,475 329,475

Assigned to:

Reserves - Capital Projects 50,000 - - 50,000

Unassigned: 526,880 - - 526,880

TOTAL FUND BALANCES 581,226$ 700,242$ 329,475$ 1,610,943$

TOTAL LIABILITIES & FUND BALANCES 643,998$ 700,242$ 329,475$ 1,673,715$

Report Date: 5/8/2020 1

Agenda Page 11

WATERGRASS

Community Development District II General Fund

ANNUAL YTD ACTUAL

ADOPTED YEAR TO DATE YEAR TO DATE VARIANCE ($) AS A % OF

ACCOUNT DESCRIPTION BUDGET BUDGET ACTUAL FAV(UNFAV) ADOPTED BUD

REVENUES

Interest - Investments 2,920$ 1,701$ 1,501$ (200)$ 51.40%Interlocal Agreement (21,268) (21,268) - 21,268 0.00%Interest - Tax Collector - - 238 238 0.00%Rents or Royalties 3,358 1,960 2,596 636 77.31%Special Assmnts- Tax Collector 918,672 918,672 915,418 (3,254) 99.65%Special Assmnts- CDD Collected 249,328 186,996 186,996 - 75.00%Special Assmnts- Discounts (36,747) (36,747) (32,801) 3,946 89.26%Developer Contribution 340,000 340,000 173,712 (166,288) 51.09%Other Miscellaneous Revenues - - 5 5 0.00%Access Cards 225 133 212 79 94.22%

TOTAL REVENUES 1,456,488 1,391,447 1,247,877 (143,570) 85.68%

EXPENDITURES

Administration

P/R-Board of Supervisors 2,000 1,169 400 769 20.00%ProfServ-Engineering 5,000 2,919 - 2,919 0.00%ProfServ-Legal Services 5,000 2,919 9,407 (6,488) 188.14%ProfServ-Property Appraiser 150 - - - 0.00%ProfServ-Web Site Maintenance 1,000 581 1,759 (1,178) 175.90%Auditing Services 3,700 3,700 3,700 - 100.00%Contracts-Mgmt Services 35,000 20,419 20,417 2 58.33%Postage and Freight 500 294 824 (530) 164.80%Public Officials Insurance 2,525 2,525 2,295 230 90.89%Printing and Binding 1,200 700 584 116 48.67%Legal Advertising 2,200 1,281 - 1,281 0.00%Misc-Assessmnt Collection Cost 18,373 18,373 17,652 721 96.08%Dues, Licenses, Subscriptions 735 175 3,256 (3,081) 442.99%

Total Administration 77,383 55,055 60,294 (5,239) 77.92%

Utility Services

Electricity - Streetlighting 170,400 99,400 80,551 18,849 47.27%Utility - Irrigation & Landscape Lighting 4,800 2,800 3,004 (204) 62.58%Building Utilities 25,200 14,700 13,231 1,469 52.50%

Total Utility Services 200,400 116,900 96,786 20,114 48.30%

Statement of Revenues, Expenditures and Changes in Fund Balances

For the Period Ending April 30, 2020


Agenda Page 12

WATERGRASS


ANNUAL YTD ACTUAL





Garbage/Solid Waste Services

Utility - Refuse Removal 624 364 742 (378) 118.91%Solid Waste Disposal Assessm. 625 625 690 (65) 110.40%

Total Garbage/Solid Waste Services 1,249 989 1,432 (443) 114.65%

Water-Sewer Comb Services

Utility Services 24,000 14,000 26,792 (12,792) 111.63%Total Water-Sewer Comb Services 24,000 14,000 26,792 (12,792) 111.63%

Flood Control/Stormwater Mgmt

Contracts-Lakes 44,520 25,970 25,634 336 57.58%Stormwater Assessment 2,000 2,000 2,493 (493) 124.65%R&M-Mitigation 32,500 18,956 7,300 11,656 22.46%R&M-Water Plant 5,000 2,919 - 2,919 0.00%

Total Flood Control/Stormwater Mgmt 84,020 49,845 35,427 14,418 42.16%

Other Physical Environment

Contracts-Landscape 454,903 265,363 291,535 (26,172) 64.09%Security-Roving Parking Patrol 10,000 5,831 192 5,639 1.92%Insurance - Property 10,669 10,669 9,699 970 90.91%Insurance - General Liability 23,828 23,828 16,511 7,317 69.29%R&M-Fertilizer 62,000 36,169 22,799 13,370 36.77%R&M-Mulch 75,000 - 63,800 (63,800) 85.07%R&M-Pest Control 30,000 17,500 400 17,100 1.33%R&M-Playscape 30,000 17,500 - 17,500 0.00%R&M-Annuals 10,000 5,831 1,603 4,228 16.03%R&M-Wall 4,000 2,331 - 2,331 0.00%R&M-Plant&Tree Replacement 13,000 7,581 13,479 (5,898) 103.68%R&M-Pressure Washing 20,000 11,669 21,885 (10,216) 109.43%Miscellaneous Maintenance 3,000 1,750 13,615 (11,865) 453.83%Irrigation Maintenance 65,236 38,052 23,118 14,934 35.44%Irrigation Repairs & Replacem. 6,000 3,500 - 3,500 0.00%Holiday Lighting & Decorations 15,000 15,000 25,250 (10,250) 168.33%Capital Outlay - Utility Vehicle 15,000 15,000 - 15,000 0.00%

Total Other Physical Environment 847,636 477,574 503,886 (26,312) 59.45%


Agenda Page 13

WATERGRASS


ANNUAL YTD ACTUAL





Road and Street Facilities

R&M-Sidewalks 14,000 8,169 2,500 5,669 17.86%R&M-Street Signs 500 294 - 294 0.00%R&M-Streetlights 500 294 - 294 0.00%R&M-Roads 5,000 2,919 4,586 (1,667) 91.72%

Total Road and Street Facilities 20,000 11,676 7,086 4,590 35.43%

Parks and Recreations

Payroll-Other 15,000 8,750 14,879 (6,129) 99.19%Contracts-On-Site Management 64,500 37,625 37,625 - 58.33%Contracts-Security Services 3,840 2,240 7,520 (5,280) 195.83%Contracts-Pools 27,600 16,100 21,525 (5,425) 77.99%Contracts-Cleaning Services 19,680 11,480 6,595 4,885 33.51%Telephone/Fax/Internet Services 5,280 3,080 4,169 (1,089) 78.96%R&M-Air Conditioning 1,000 581 600 (19) 60.00%R&M-Court Maintenance 2,500 1,456 11,514 (10,058) 460.56%R&M-Pet Waste Station 2,400 1,400 - 1,400 0.00%R&M-Playground 2,500 1,456 - 1,456 0.00%Maintenance & Repairs 3,000 1,750 7,319 (5,569) 243.97%Misc-Contingency 31,500 18,375 14,309 4,066 45.43%Office Supplies 1,000 581 8,845 (8,264) 884.50%Capital Outlay 8,000 8,000 - 8,000 0.00%

Total Parks and Recreations 187,800 112,874 134,900 (22,026) 71.83%

Special Events

Misc-Special Events 14,000 8,169 3,475 4,694 24.82%Total Special Events 14,000 8,169 3,475 4,694 24.82%

TOTAL EXPENDITURES 1,456,488 847,082 870,078 (22,996) 59.74%

Excess (deficiency) of revenuesOver (under) expenditures - 544,365 377,799 (166,566) 0.00%

Net change in fund balance -$ 544,365$ 377,799$ (166,566)$ 0.00%

FUND BALANCE, BEGINNING (OCT 1, 2019) 203,427 203,427 203,427

FUND BALANCE, ENDING 203,427$ 747,792$ 581,226$


Agenda Page 14

WATERGRASS

Community Development District II Series 2007 A/B Debt Service Fund

ANNUAL YTD ACTUAL



REVENUES

Interest - Investments -$ -$ -$ -$ 0.00%Special Assmnts- Tax Collector 511,633 511,633 509,822 (1,811) 99.65%Special Assmnts- Prepayment - - 1,070,014 1,070,014 0.00%Special Assmnts- CDD Collected 157,530 118,147 - (118,147) 0.00%Special Assmnts- Discounts (20,465) (20,465) (18,268) 2,197 89.26%

TOTAL REVENUES 648,698 609,315 1,561,568 952,253 240.72%

EXPENDITURES

Administration

Misc-Assessmnt Collection Cost 10,233 10,233 9,831 402 96.07%Total Administration 10,233 10,233 9,831 402 96.07%

TOTAL EXPENDITURES 10,233 10,233 9,831 402 96.07%

Excess (deficiency) of revenuesOver (under) expenditures 638,465 599,082 1,551,737 952,655 243.04%

OTHER FINANCING SOURCES (USES)

Other NonOperating Uses (638,465) (638,465) (1,551,737) (913,272) 243.04%

TOTAL FINANCING SOURCES (USES) (638,465) (638,465) (1,551,737) (913,272) 243.04%

Net change in fund balance -$ (39,383)$ -$ 39,383$ 0.00%

FUND BALANCE, BEGINNING (OCT 1, 2019) - - -

FUND BALANCE, ENDING -$ (39,383)$ -$




Agenda Page 15

WATERGRASS

Community Development District II Series 2018 Debt Service Fund

ANNUAL YTD ACTUAL



REVENUES

Interest - Investments -$ -$ 2,862$ 2,862$ 0.00%Special Assmnts- Tax Collector 234,579 234,579 233,748 (831) 99.65%Special Assmnts- CDD Collected 297,388 223,041 223,041 - 75.00%Special Assmnts- Discounts (9,383) (9,383) (8,376) 1,007 89.27%

TOTAL REVENUES 522,584 448,237 451,275 3,038 86.35%

EXPENDITURES

Administration

ProfServ-Trustee Fees 3,718 3,718 3,717 1 99.97%Misc-Assessmnt Collection Cost 4,692 4,692 4,507 185 96.06%

Total Administration 8,410 8,410 8,224 186 97.79%

Debt Service

Principal Debt Retirement 120,000 - - - 0.00%Interest Expense 397,028 198,514 198,514 - 50.00%

Total Debt Service 517,028 198,514 198,514 - 38.40%

TOTAL EXPENDITURES 525,438 206,924 206,738 186 39.35%

Excess (deficiency) of revenuesOver (under) expenditures (2,854) 241,313 244,537 3,224 -8568.22%


Operating Transfers-Out - - (3,785) (3,785) 0.00%Contribution to (Use of) Fund Balance (2,854) - - - 0.00%

TOTAL FINANCING SOURCES (USES) (2,854) - (3,785) (3,785) 132.62%

Net change in fund balance (2,854)$ 241,313$ 240,752$ (561)$ -8435.60%

FUND BALANCE, BEGINNING (OCT 1, 2019) 459,490 459,490 459,490

FUND BALANCE, ENDING 456,636$ 700,803$ 700,242$




Agenda Page 16

WATERGRASS


ANNUAL YTD ACTUAL



REVENUES

Interest - Investments -$ -$ -$ -$ 0.00%Special Assmnts- Tax Collector - - 12,753 12,753 0.00%Special Assmnts- Discounts - - (457) (457) 0.00%

TOTAL REVENUES - - 12,296 12,296 0.00%

EXPENDITURES

Administration

Misc-Assessmnt Collection Cost - - 246 (246) 0.00%Total Administration - - 246 (246) 0.00%

TOTAL EXPENDITURES - - 246 (246) 0.00%

Excess (deficiency) of revenuesOver (under) expenditures - - 12,050 12,050 0.00%


Other NonOperating Uses - - (12,050) (12,050) 0.00%

TOTAL FINANCING SOURCES (USES) - - (12,050) (12,050) 0.00%

Net change in fund balance -$ -$ -$ -$ 0.00%

FUND BALANCE, BEGINNING (OCT 1, 2019) - - -

FUND BALANCE, ENDING -$ -$ -$




Agenda Page 17

WATERGRASS

Community Development District II 2018 Project Fund

ANNUAL YTD ACTUAL



REVENUES

Interest - Investments -$ -$ 2,110$ 2,110$ 0.00%

TOTAL REVENUES - - 2,110 2,110 0.00%

EXPENDITURES

TOTAL EXPENDITURES - - - - 0.00%

Excess (deficiency) of revenuesOver (under) expenditures - - 2,110 2,110 0.00%


Interfund Transfer - In - - 3,785 3,785 0.00%

TOTAL FINANCING SOURCES (USES) - - 3,785 3,785 0.00%

Net change in fund balance -$ -$ 5,895$ 5,895$ 0.00%

FUND BALANCE, BEGINNING (OCT 1, 2019) - - 323,580

FUND BALANCE, ENDING -$ -$ 329,475$




Agenda Page 18

WATERGRASS


DISCOUNT/ GROSS SERIES 2007 SERIES 2018 SERIES 2019

DATE NET AMOUNT (PENALTIES) COLLECTION AMOUNT GENERAL DEBT SERVICE DEBT SERVICE DEBT SERVICE

RECEIVED RECEIVED AMOUNT COSTS RECEIVED FUND FUND FUND FUND

Assessments Levied 1,677,682$ 918,671$ 511,633$ 234,579$ 12,798$Allocation % 100% 55% 30% 14% 1%

11/08/19 3,795$ 215$ 77$ 4,087$ 2,238$ 1,246$ 571$ 31$11/15/19 60,846$ 2,587$ 1,242$ 64,674$ 35,415$ 19,723$ 9,043$ 493$11/22/19 120,972$ 5,143$ 2,469$ 128,584$ 70,410$ 39,213$ 17,979$ 981$11/27/19 82,981$ 3,528$ 1,693$ 88,203$ 48,298$ 26,899$ 12,333$ 673$12/06/19 530,434$ 22,552$ 10,825$ 563,811$ 308,734$ 171,942$ 78,834$ 4,301$12/16/19 166,880$ 7,040$ 3,406$ 177,326$ 97,101$ 54,078$ 24,794$ 1,353$12/20/19 561$ 18$ 11$ 590$ 323$ 180$ 83$ 5$12/20/19 8,396$ 265$ 171$ 8,832$ 4,837$ 2,694$ 1,235$ 67$01/10/20 38,819$ 1,225$ 792$ 40,836$ 22,361$ 12,454$ 5,710$ 312$02/11/20 531,897$ 16,717$ 10,855$ 559,469$ 306,356$ 170,618$ 78,227$ 4,268$03/10/20 17,615$ 611$ 359$ 18,585$ 10,177$ 5,668$ 2,599$ 142$04/03/20 16,409$ -$ 335$ 16,744$ 9,169$ 5,106$ 2,341$ 128$

TOTAL 1,579,603$ 59,901$ 32,237$ 1,671,741$ 915,418$ 509,822$ 233,748$ 12,753$

% COLLECTED 100% 100% 100% 100% 100%

TOTAL OUTSTANDING 5,942$ 3,253$ 1,812$ 831$ 45$

Non-Ad Valorem Special Assessments

(Pasco County Tax Collector - Monthly Collection Distributions)For the Fiscal Year Ending September 30, 2020

ALLOCATION


Agenda Page 19

April 30, 2020

Watergrass


Supporting Schedules

Agenda Page 20

ACCOUNT NAME BANK NAME MATURITY YIELD BALANCE

GENERAL FUND

Operating Checking Account CenterState N/A 0.00% $210,417Subtotal $210,417

Money Market Bank United N/A 0.25% $426,225Subtotal $426,225

DEBT SERVICE FUND

Series 2018 Reserve US Bank N/A 0.02% $258,753

Series 2018 Revenue US Bank N/A 0.02% $441,489Subtotal $700,242

CAPITAL PROJECTS FUND

Series 2018 Construction Fund US Bank N/A 0.02% $329,475Subtotal $329,475

Total $1,666,359

Note: Interest rates are subject to change daily.

Community Development District IIWATERGRASS

Cash and Investment Balances

April 30, 2020


Agenda Page 21

DatePayee

TypePayee Invoice No. Payment Description Invoice / GL Description G/L Account #

Amount

Paid

CENTERSTATE GF CHECKING - (ACCT#XXXXX1928)

CHECK # 2202

03/05/20 Vendor STRALEY ROBIN VERICKER 18014 GEN COUNSEL THRU 2/15/20 ProfServ-Legal Services 001-531023-51401 $1,156.45

Check Total $1,156.45

CHECK # 2203

03/05/20 Vendor SECURITEAM, INC 12869 MAR-MAY QTRLY VIDEO MONITORING Misc-Contingency 001-549900-57200 $2,400.00

03/05/20 Vendor SECURITEAM, INC 12868 MAR-MAY QTRLY MONITOR C.HSE/FIT CTR Misc-Contingency 001-549900-57200 $960.00


CHECK # 2204

03/05/20 Vendor UNITED BUILDING MAINTENANCE, INC 58 FEB CLEANING POOL, GYM, CLUBHOUSE Contracts-Cleaning Services 001-534082-57200 $390.00

03/05/20 Vendor UNITED BUILDING MAINTENANCE, INC 59 FEB CLEANING - POMENADE PRK/DOG PRK Contracts-Cleaning Services 001-534082-57200 $500.00

Check Total $890.00

CHECK # 2205

03/05/20 Vendor TIMOTHY SANBORN 8840 FEB PEST CONTROL R&M-Pest Control 001-546070-53900 $50.00

Check Total $50.00

CHECK # 2206

03/06/20 Vendor SUNCOAST POOL SERVICE 6089 MAR POOL MAINT Contracts-Pools 001-534078-57200 $2,300.00

03/06/20 Vendor SUNCOAST POOL SERVICE 6090 MAR POOL MAINT Contracts-Pools 001-534078-57200 $775.00


CHECK # 2207

03/06/20 Vendor WATERGRASS II C/O WELLS FARGO 030320 XFER OF TAX RECEIPTS (SERIES 2007A) Due From Other Funds 131000 $162,209.57


CHECK # 2208

03/06/20 Vendor WATERGRASS II C/O WELLS FARGO 030320-2 TRFR TAX RECEIPTS 2019 SERIES Due From Other Funds 131000 $4,057.65


CHECK # 2209

03/12/20 Vendor STAHL & ASSOCIATES INSURANCE, INC 021720 RENEW UTILITY BOND-WREC 4/4/20 Insurance - General Liability 001-545002-53900 $13,142.00


WATERGRASS

(Sorted by Check / ACH No.)

Payment Register by Bank Account

For the Period from 3/1/20 to 4/30/20



Agenda Page 22

DatePayee


Amount

Paid

WATERGRASS





CHECK # 2210

03/12/20 Vendor SSS DOWN TO EARTH OPCO LLC 58594 DRAINAGE STONEBROOK MAIL KIOSK Irrigation Maintenance 001-546930-57200 $3,010.00

03/12/20 Vendor SSS DOWN TO EARTH OPCO LLC 58753 IRR REPRS Irrigation Maintenance 001-546930-57200 $408.47

03/12/20 Vendor SSS DOWN TO EARTH OPCO LLC 58754 IRR REPRS Irrigation Maintenance 001-546930-57200 $467.11

03/12/20 Vendor SSS DOWN TO EARTH OPCO LLC 58752 IRR REPRS - HAND CART ROAD Irrigation Maintenance 001-546930-57200 $473.20

03/12/20 Vendor SSS DOWN TO EARTH OPCO LLC 58757 CLB HSE ENTRANCE IMPROVEMENTS R&M-Annuals 001-546140-57200 $1,077.75

03/12/20 Vendor SSS DOWN TO EARTH OPCO LLC 59089 1/6/20 MOW HANDCART RD Contracts-Landscape 001-534050-57200 $320.00

03/12/20 Vendor SSS DOWN TO EARTH OPCO LLC 59094 1/27/20 MOW HANDCART RD Contracts-Landscape 001-534050-57200 $320.00


CHECK # 2211

03/12/20 Vendor SOUTHERN AUTOMATED ACCESS SERVICES 7480 PHONE SERVICE 813-528-3389 Telephone/Fax/Internet Services 001-541009-57200 $49.95

Check Total $49.95

CHECK # 2212

03/12/20 Vendor WATERGRASS II C/O US BANK 030320-1 TRFR TAX RECEIPTS 2018 SERIES Due From Other Funds 131000 $74,371.52


CHECK # 2213

03/12/20 Vendor DYMOND HEATING AND COOLING INC 8861 A/C #1 MAINT R&M-Air Conditioning 001-546004-57200 $600.00

Check Total $600.00

CHECK # 2214

03/12/20 Vendor FLORIDA LAND DESIGN & PEMITTING, INC, 10089 12/21/19-1/31/2020 ENVIRONMENTAL SERVICE Misc-Contingency 001-549900-58000 $330.00

Check Total $330.00

CHECK # 2215

03/17/20 Vendor FEDERAL EXPRESS 6-946-21536 FEB POSTAGE Postage and Freight 001-541006-51301 $51.40

Check Total $51.40

CHECK # 2216

03/17/20 Vendor WATERGRASS CDD II 03092020 TRFR FUNDS TO BU MMA 9932 Cash with Fiscal Agent 103000 $200,000.00


CHECK # 2217

03/17/20 Vendor RIPA & ASSOCIATES RA200203 RE-GRADE COMMON AREA - WINDCHASE R&M-Roads 001-546139-54101 $4,586.00



Agenda Page 23

DatePayee


Amount

Paid

WATERGRASS





CHECK # 2218

03/17/20 Vendor SSS DOWN TO EARTH OPCO LLC INV58594 IRR DRAINAGE STONEBROOK MAIL KIOSK Irrigation Maintenance 001-546930-57200 $3,010.00

03/17/20 Vendor SSS DOWN TO EARTH OPCO LLC 59834 TURF FERTILIZATION R&M-Fertilizer 001-546026-57200 $6,151.00

03/17/20 Vendor SSS DOWN TO EARTH OPCO LLC 59628 MAR LANDSCAPE MAINT Contracts-Landscape 001-534050-53900 $41,297.58

03/17/20 Vendor SSS DOWN TO EARTH OPCO LLC 59628 MAR LANDSCAPE MAINT Irrigation Maintenance 001-546930-53900 $1,414.00


CHECK # 2219

03/20/20 Vendor WATERGRASS II C/O WELLS FARGO 031220-2 XFER OF TAX RECEIPTS SERIES 2019 Due From Other Funds 131000 $134.38

Check Total $134.38

CHECK # 2220

03/20/20 Vendor WATERGRASS II C/O WELLS FARGO 031220 XFER OF TAX RECEIPTS SERIES 2007A Due From Other Funds 131000 $5,371.89


CHECK # 2221

03/20/20 Vendor FEDERAL EXPRESS 6-952-05572 MAR POSTAGE Postage and Freight 001-541006-51301 $25.76

Check Total $25.76

CHECK # 2222

03/20/20 Vendor PASCO COUNTY UTILITIES SVC - ACH 03172020 CHK 01/13-2/12/20 WTR UTILITY Utility Services 001-543063-53601 $881.62

Check Total $881.62

CHECK # 2223

03/20/20 Vendor WATERGRASS II C/O US BANK 031220-1 XFER OF TAX RECEIPTS SERIES 2018 Due From Other Funds 131000 $2,462.96


CHECK # 2224

03/26/20 Vendor INFRAMARK, LLC 49847 MAR MGMNT SERVICES Contracts-Mgmt Services 001-534001-51301 $2,916.67

03/26/20 Vendor INFRAMARK, LLC 49847 MAR MGMNT SERVICES Contracts-On-Site Management 001-534029-57200 $5,375.00

03/26/20 Vendor INFRAMARK, LLC 49847 MAR MGMNT SERVICES Printing and Binding 001-547001-51301 $31.85

03/26/20 Vendor INFRAMARK, LLC 49847 MAR MGMNT SERVICES Postage and Freight 001-541006-51301 $20.50


CHECK # 2225

03/26/20 Vendor METCALF ENTERPRISES, LLC 20-017 LIGHT SWITCHES/GFI OUTLETS INSTALLED Maintenance & Repairs 001-546920-53900 $735.00

Check Total $735.00

CHECK # 2226

03/26/20 Vendor FLORIDA NATIVES NURSERY, INC 17053 MAR AQUATIC MAINT Contracts-Lakes 001-534084-53801 $3,662.00

03/26/20 Vendor FLORIDA NATIVES NURSERY, INC 17079 FEB WATERWAY MAINT Contracts-Lakes 001-534084-53801 $3,662.00

03/26/20 Vendor FLORIDA NATIVES NURSERY, INC 17104 MARCH WATERWAY MAINT Contracts-Lakes 001-534084-53801 $3,662.00



Agenda Page 24

DatePayee


Amount

Paid

WATERGRASS





CHECK # 2227

03/26/20 Vendor PASCO COUNTY UTILITIES SVC - ACH 03.17.2020 CHK 12/12-1/13/20 WTR UTILITY Utility Services 001-543063-53601 $585.85

Check Total $585.85

CHECK # 2228

03/26/20 Vendor WELCH TENNIS COURTS, INC 3650 TENNIS COURT RESURFACING PROJECT FINAL R&M-Court Maintenance 001-546017-57200 $5,475.00


CHECK # 2229

03/26/20 Vendor STAHL & ASSOCIATES INSURANCE, INC 031720 INCREASE RENEWAL UTILITY BOND- 4/4/20 Insurance - General Liability 001-545002-53900 $564.00

Check Total $564.00

CHECK # 2230

03/26/20 Vendor WASTE CONNECTIONS OF FLORIDA 708081 MAR WASTE SERVICES Utility - Refuse Removal 001-543020-53401 $106.00

Check Total $106.00

CHECK # 2231

03/26/20 Vendor TIMOTHY SANBORN 9153 MAR PEST CONTROL R&M-Pest Control 001-546070-53900 $50.00

Check Total $50.00

CHECK # 2232

04/02/20 Vendor FEDERAL EXPRESS 6-960-32029 MARCH POSTAGE Postage and Freight 001-541006-51301 $75.26


Check Total $101.14

CHECK # 2233

04/02/20 Vendor STRALEY ROBIN VERICKER 18130 GEN COUNSEL THRU 3/15/20 ProfServ-Legal Services 001-531023-51401 $1,508.30


CHECK # 2234

04/02/20 Vendor FLORIDA NATIVES NURSERY, INC 17097 MONITORING REPORTS R&M-Mitigation 001-546056-53801 $4,850.00


CHECK # 2235

04/02/20 Vendor FRONTIER 031620-1125 3/16-4/15/20 INT/PHN/TV SVC 813-907-0256 001-541009-57200 $443.76

Check Total $443.76

CHECK # 2236

04/02/20 Vendor MCDIRMIT DAVIS 44469 AUDIT FY 9/30/19- FINAL Auditing Services 001-532002-51301 $3,700.00


CHECK # 2237

04/02/20 Vendor PRESSURE POINTS, INC 031820 MARCH WATERFALL DEEP CLEANING R&M-Pressure Washing 001-546171-53900 $500.00

Check Total $500.00


Agenda Page 25

DatePayee


Amount

Paid

WATERGRASS





CHECK # 2238

04/02/20 Vendor SSS DOWN TO EARTH OPCO LLC 60111 PINE BARK MULCH R&M-Mulch 001-546059-53900 $63,800.00


CHECK # 2239

04/02/20 Vendor STATE WILDLIFE TRAPPER 1343 MARCH WILDLIFE TRAPPING/HOG REMOVAL Miscellaneous Maintenance 001-546922-53900 $1,300.00


CHECK # 2240

04/02/20 Vendor SOUTHERN AUTOMATED ACCESS SERVICES 7629 Mar Park Cellular Controller 813-528-3389 Telephone/Fax/Internet Services 001-541009-57200 $49.95

Check Total $49.95

CHECK # 2241

04/02/20 Vendor METRO GATES 0123 300 CARMANISO CARDS Misc-Contingency 001-549900-57200 $1,065.00


CHECK # 2242

04/02/20 Vendor VINCENT BEACH 03152020 REIMBURSEMENT OF SUPPLIES Misc-Contingency 001-549900-57200 $17.10

Check Total $17.10

CHECK # 2243


Check Total $51.28

CHECK # 2244

04/10/20 Vendor SECURITEAM, INC 8057032520 3/25/20 CAMERA TECH SERVICES Misc-Contingency 001-549900-57200 $220.00

Check Total $220.00

CHECK # 2245

04/10/20 Vendor FLORIDA NATIVES NURSERY, INC 17109 QUARTERLY MIT MAINT R&M-Mitigation 001-546056-53801 $2,450.00


CHECK # 2246

04/10/20 Vendor MIKE FASANO, TAX COLLECTOR P1000-0000 36-25-20-0030-P1000-0000 Stormwater Assessment 001-538001-53801 $151.94

04/10/20 Vendor MIKE FASANO, TAX COLLECTOR P1400-0000 36-25-20-0020-P1400-0000 Stormwater Assessment 001-538001-53801 $151.94

Check Total $303.88

CHECK # 2247

04/10/20 Vendor UNITED BUILDING MAINTENANCE, INC 60 MARCH CLEANING POOL, GYM, CLUBHOUSE Contracts-Cleaning Services 001-534082-57200 $475.00

04/10/20 Vendor UNITED BUILDING MAINTENANCE, INC 61 MARCH CLEANING - POMENADE PRK/DOG PRK Contracts-Cleaning Services 001-534082-57200 $500.00

Check Total $975.00


Agenda Page 26

DatePayee


Amount

Paid

WATERGRASS





CHECK # 2248

04/10/20 Vendor WASTE CONNECTIONS OF FLORIDA 710103 APRIL WASTE SERVICES Utility - Refuse Removal 001-543020-53401 $106.00

Check Total $106.00

CHECK # 2249

04/10/20 Vendor SSS DOWN TO EARTH OPCO LLC 61336 IRR REPAIRS Irrigation Maintenance 001-546930-57200 $306.64

Check Total $306.64

CHECK # 2250

04/10/20 Vendor METRO GATES 0220 TENNIS COURT - LOCK INTERMITTENT R&M-Court Maintenance 001-546017-57200 $489.00

Check Total $489.00

CHECK # 2251

04/10/20 Vendor WATERGRASS II C/O WELLS FARGO 040620-2 TRANSFER OF TAX RECEIPTS (SERIES 2019) Due From Other Funds 131000 $125.18

Check Total $125.18

CHECK # 2252

04/10/20 Vendor WATERGRASS II C/O WELLS FARGO 04062020 TRANSFER OF TAX RECEIPTS(SERIES 2007A) Due From Other Funds 131000 $5,004.17


CHECK # 2253

04/10/20 Vendor WATERGRASS II C/O US BANK 040620-1 XFER OF TAX RECEIPTS SERIES 2018 Due From Other Funds 131000 $2,294.37


CHECK # 2254

04/23/20 Vendor INFRAMARK, LLC 50687 APRIL MGMNT SERVICES Contracts-Mgmt Services 001-534001-51301 $2,916.67

04/23/20 Vendor INFRAMARK, LLC 50687 APRIL MGMNT SERVICES Contracts-On-Site Management 001-534029-57200 $5,375.00

04/23/20 Vendor INFRAMARK, LLC 50687 APRIL MGMNT SERVICES Printing and Binding 001-547001-51301 $70.00

04/23/20 Vendor INFRAMARK, LLC 50687 APRIL MGMNT SERVICES Postage and Freight 001-541006-51301 $11.50


CHECK # 2255

04/23/20 Vendor FEDERAL EXPRESS 6-984-72933 APRIL POSTAGE Postage and Freight 001-541006-51301 $24.90

Check Total $24.90

ACH #DD371

03/08/20 Vendor BRIGHT HOUSE NETWORK 084093302022120 ACH 2/20-3/19/20 Int/Phone 0933-02 Telephone/Fax/Internet Services 001-541009-57200 $74.98

ACH Total $74.98

ACH #DD372

03/03/20 Vendor BRIGHT HOUSE NETWORK 084036402022120 2/20-3/19/20 INTERNET/PHONE SERVICE Telephone/Fax/Internet Services 001-541009-57200 $125.35

ACH Total $125.35


Agenda Page 27

DatePayee


Amount

Paid

WATERGRASS





ACH #DD373

03/31/20 Vendor PASCO COUNTY UTILITIES SVC - ACH 032020 ACH 2/12-3/13/20 WTR UTILITY Utility Services 001-543063-53601 $1,176.72


ACH Total $4,035.15

ACH #DD374

03/31/20 Vendor W.R.E.C. - ACH 030920 ACH 2/6-3/4/2020 ELEC ACH Electricity - Streetlighting 001-543013-53150 $10,935.54

03/31/20 Vendor W.R.E.C. - ACH 030920 ACH 2/6-3/4/2020 ELEC ACH Utility - Irrigation & Landscape Lighting 001-543037-53150 $415.82

03/31/20 Vendor W.R.E.C. - ACH 030920 ACH 2/6-3/4/2020 ELEC ACH Building Utilities 001-543067-53150 $1,796.66

ACH Total $13,148.02

ACH #DD375

03/31/20 Vendor INNOVATIVE EMPLOYER SOLUTIONS - ACH 073784 PAYROLL P/E 03/07/20 429-20206 ACH 429-20206 001-512004-57200 $946.90

ACH Total $946.90

ACH #DD376

04/02/20 Vendor CARD SERVICE SCENTER - ACH 031020 ACH 2/21-3/6/20 PURCHASES Office Supplies 001-551002-57200 $1,630.45

ACH Total $1,630.45

ACH #DD377

03/27/20 Vendor INNOVATIVE EMPLOYER SOLUTIONS - ACH 074046 PAYROLL P/E 03/21/20 429-20207 ACH 429-20202 001-512004-57200 $1,046.57

ACH Total $1,046.57

ACH #DD378

03/12/20 Vendor PASCO COUNTY UTILITIES SVC - ACH 022120 ACH 1/13-2/12/20 WTR UTILITY Utility Services 001-543063-53601 $724.14


03/12/20 Vendor PASCO COUNTY UTILITIES SVC - ACH CM 022120 ACH ACH WITHDREW DIFFERENT AMOUNT Utility Services 001-543063-53601 ($8.84)

ACH Total $2,333.70

ACH #DD379

03/12/20 Vendor PASCO COUNTY UTILITIES SVC - ACH 022120 ACH A Invoice 003349 Utility Services 001-543063-53601 $1.00

ACH Total $1.00

ACH #DD380

03/27/20 Vendor W.R.E.C. - ACH 031320 ACH 2/11-3/10/2020 ELEC ACH Electricity - Streetlighting 001-543013-53150 $1,957.49

ACH Total $1,957.49

ACH #DD381

04/10/20 Vendor INNOVATIVE EMPLOYER SOLUTIONS - ACH 074346 ACH PAYROLL P/E 04/04/20 429-20208 ACH 429-20202 001-512004-57200 $941.86

ACH Total $941.86


Agenda Page 28

DatePayee


Amount

Paid

WATERGRASS





ACH #DD382

04/24/20 Vendor INNOVATIVE EMPLOYER SOLUTIONS - ACH 074649 ACH PAYROLL P/E 04/18/20 429-20209 ACH 429-20202 001-512004-57200 $643.99

ACH Total $643.99

ACH #DD383

04/24/20 Vendor W.R.E.C. - ACH 040820 ACH B 3/4-4/3/2020 ELEC ACH Electricity - Streetlighting 001-543013-53150 $10,910.27

04/24/20 Vendor W.R.E.C. - ACH 040820 ACH B 3/4-4/3/2020 ELEC ACH Utility - Irrigation & Landscape Lighting 001-543037-53150 $428.80

04/24/20 Vendor W.R.E.C. - ACH 040820 ACH B 3/4-4/3/2020 ELEC ACH Building Utilities 001-543067-53150 $1,811.60

ACH Total $13,150.67

ACH #DD384

04/29/20 Vendor FLORIDA DEPT OF HEALTH 042820-1877959 ACH INTERACTIVE WATER FEATURE PERMIT Misc-Contingency 001-549900-57200 $290.35

ACH Total $290.35

Account Total $699,986.45

BANK UNITED MMA - (ACCT#XXXXX9932)

CHECK # 0018

03/20/20 Vendor WATERGRASS CDD II 032020 TRANSFER FUNDS TO CHECKING- 1928 Due From Other Funds 131000 $35,000.00


Account Total $35,000.00

Total Amount Paid $734,986.45


Agenda Page 29

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Agenda Page 30

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Agenda Page 31

Watergrass Community Development District II Table of Contents

PageI. Financial Section:

Independent Auditor's Report 1Management's Discussion and Analysis 3Financial Statements:

Government-Wide Financial Statements:Statement of Net Position 7Statement of Activities 8

Fund Financial Statements:Balance Sheet - Governmental Funds 9Statement of Revenues, Expenditures and Changes in Fund Balances -

Governmental Funds 10Reconciliation of the Statement of Revenues, Expenditures and Changes -

in Fund Balance of Governmental Funds to the Statements of Activities 11Statement of Revenues, Expenditures and Changes in Fund Balance -

Budget and Actual - General Fund 12Notes to Financial Statements 13

II. Compliance Section:Independent Auditor's Report on Internal Control over Financial Reporting and on

Compliance and Other Matters Based on an Audit of Financial StatementsPerformed in Accordance with Government Auditing Standards 22

Management Comments 23Independent Auditor's Report on Compliance with the Requirements

of Section 218.415, Florida Statutes 25

Agenda Page 32

934 North Magnolia Avenue, Suite 100 Orlando, Florida 32803

407-843-5406 www.mcdirmitdavis.com

the trusted partner

INDEPENDENT AUDITOR'S REPORT

To the Board of Supervisors WaterGrass Community Development District II Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, and each major fund of the WaterGrass Community Development District II (the “District”), as of and for the year ended September 30, 2019, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements The District's management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting principles used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, and each major fund of the District as of September 30, 2019, and the respective changes in financial position thereof and the respective budgetary comparison for the General Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis starting on page 3, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Agenda Page 33

Page | 2

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued a report dated, March 27, 2020, on our consideration of the District’s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District’s internal control over financial reporting and compliance.

Orlando, Florida March 27, 2020

Agenda Page 34

Watergrass Community Development District II Management’s Discussion and Analysis

Page | 3

Our discussion and analysis of the WaterGrass Community Development District II’s, (the “District”) financial accomplishments provide an overview of the District’s financial activities for the year ended September 30, 2019. Please read it in conjunction with the District’s Independent Auditor’s Report, financial statements and accompanying notes. This information is being presented to provide additional information regarding the activities of the District and to meet the disclosure requirements of Government Accounting Standards Board Statement (GASB) No. 34, Basic Financial Statements - and Management’s Discussion and Analysis - for State and Local Governments issued June 1999. Financial Highlights The assets of the District exceeded its liabilities at September 30, 2019 by $3,513,981 an increase of $1,998,860 in

comparison with the prior year. At September 30, 2019, the District’s governmental funds reported a combined fund balance of $986,495 a decrease of

$472,297 in comparison with the prior year. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the WaterGrass Community Development District II’s financial statements. The District’s financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements and 3) notes to financial statements.

Government-Wide Financial Statements The government-wide financial statements are designed to provide readers with a broad overview of the District’s finances, in a manner similar to a private-sector business. The statement of net position presents information on all of the District’s assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the District is improving or deteriorating. The statement of activities presents information showing how the government’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods. The government-wide financial statements include all governmental activities that are principally supported by special assessment revenues. The District does not have any business-type activities. The governmental activities of the District include general government, physical environment, roads and streets, and culture and recreation related functions. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The District, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The District has one fund category: Governmental Funds.

Governmental Funds Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a District’s near-term financing requirements.

Agenda Page 35


Page | 4

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The District maintains three individual governmental funds. Information is presented separately in the governmental fund balance sheet and the governmental fund statement of revenues, expenditures and changes in fund balances for the general fund, debt service fund and capital projects fund which are considered to be major funds. The District adopts an annual appropriated budget for its general fund. There were no budget amendments for the fiscal year. A budgetary comparison schedule has been provided for the general fund to demonstrate compliance with the budget.

Notes to Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. Government-Wide Financial Analysis Statement of Net Position - The District’s net position was $3,513,981 at September 30, 2019. The following analysis focuses on the net position of the District’s governmental activities.

2019 2018

Assets, excluding capital assets 1,207,639$ 1,490,012$ Capital Assets, net 10,364,202 7,915,666

Total assets 11,571,841 9,405,678

Liabilities, excluding long-term liabilities 212,860 45,557Long-term liabilities 7,845,000 7,845,000

Total liabilities 8,057,860 7,890,557

Net Position:Net investment in capital assets 2,519,202 70,666 Restricted for debt service 294,061 686,660 Restricted for capital projects 323,580 375,281 Unrestricted 377,138 382,514

Total net position 3,513,981$ 1,515,121$

Agenda Page 36


Page | 5

The following is a summary of the District’s Governmental activities for the fiscal years ended September 30, 2019 and 2018.

2019 2018Revenues:Program revenues 4,677,422$ 3,427,331$

General revenues 9,188 10,131

Total revenues 4,686,610 3,437,462

Expenses:General government 127,097 307,654

Physical environment 835,108 620,253

Roads and streets 12,926 15,842

Culture and recreation 183,210 158,308

Interest 394,822 14,337

Debt service transfers to WaterGrass I 1,134,587 2,560,411

Total expenses 2,687,750 3,676,805

Change in net position 1,998,860 (239,343)

Net position, beginning 1,515,121 1,754,464

Net position, ending 3,513,981$ 1,515,121$

As noted above and in the statement of activities, the cost of all governmental activities during the year ended September 30, 2019 was $2,687,750. The majority of these costs are comprised of debt service transfers to WaterGrass I.

Financial Analysis of the Government’s Funds The District uses fund accounting to ensure and demonstrate compliance with finance related legal requirements. The focus of the District’s governmental funds is to provide information on near-term inflows, outflows and balances of spendable resources. Such information is useful in assessing the District’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. At September 30, 2019, the District’s governmental funds reported combined ending fund balances of $986,495. Of this total, $5,146 is nonspendable, $50,000 is assigned, $783,069 is restricted and the remainder of $148,280 is unassigned. For the year ended September 30, 2019, the fund balance of the general fund decreased by $179,088 due to an increase in expenditures. The debt service fund balance decreased by $241,508 due to increases in debt service expenditures. The capital projects fund decreased by $51,701 due to bond issuance costs. General Fund Budgetary Highlights An operating budget was adopted and maintained by the governing board for the District pursuant to the requirements of Florida Statutes. The budget is adopted using the same basis of accounting that is used in preparation of the fund financial statements. There were no amendments to the September 30, 2019 general fund budget. The legal level of budgetary control is at the fund level.

Agenda Page 37


Page | 6

Capital Asset and Debt Administration Capital Assets At September 30, 2019, the District had $10,364,202 invested in assets, net of accumulated depreciation. More detailed information about the District’s capital assets is presented in the notes to the financial statements. Capital Debt At September 30, 2019, the District had $7,845,000 in bonds outstanding. More detailed information about the District’s capital debt is presented in the notes to the financial statements. Requests for Information If you have questions about this report or need additional financial information, contact the WaterGrass Community Development District II’s Finance Department at 210 N. University Drive, Suite 702, Coral Springs, Florida 33071.

Agenda Page 38

FINANCIAL STATEMENTS

Agenda Page 39

Watergrass Community Development District II Statement of Net Position September 30, 2019

The accompanying Notes to Financial Statements are an integral part of this statement. Page | 7

Governmental Activities

Assets:Cash 243,907$ Due from other governments 1,805Accounts Receivable 173,712Prepaid costs and deposits 5,146Restricted assets:

Temporarily restricted investments 783,069 Capital assets: Capital assets not being depreciated 2,526,630 Capital assets being depreciated, net 7,837,572

Total assets 11,571,841

Liabilities:Accounts payable and accrued expenses 47,432 Accrued interest payable 165,428 Noncurrent liabilities:

Due within one year 120,000 Due in more than one year 7,725,000

Total liabilities 8,057,860

Net Position:Net investment in capital assets 2,519,202Restricted for:

Debt Service 294,061Capital projects 323,580

Unrestricted 377,138

Total net position 3,513,981$

Agenda Page 40

Watergrass Community Development District II Statement of Activities Year Ended September 30, 2019


Net (Expense) Revenue and

Changes in Net Position

Operating Grants Capital GrantsCharges for and and Governmental

Functions/Programs Expenses Services Contributions Contributions ActivitiesGovernmental activities:

General government 127,097$ 112,700$ -$ -$ (14,397)$ Physical environment 835,108 743,554 - 2,500,000 2,408,446 Roads and streets 12,926 11,509 - - (1,417) Culture and recreation 183,210 163,588 - - (19,622) Interest 394,822 - - - (394,822) Intergovernmental transfer-WaterGrass I 1,134,587 1,146,071 - - 11,484

Total governmental activities 2,687,750$ 2,177,422$ -$ 2,500,000$ 1,989,672

General Revenues:Investment and miscellaneous income 9,188

Total general revenues 9,188

Change in net position 1,998,860

Net position, beginning 1,515,121

Net position, ending 3,513,981$

Program Revenue

Agenda Page 41

Watergrass Community Development District II Balance Sheet Governmental Funds September 30, 2019


General Debt Service Capital Projects

Total Governmental

FundsAssets:Cash 243,907$ -$ -$ 243,907$ Investments - 459,489 323,580 783,069 Due from other governmental units 1,805 - - 1,805 Due from developer 173,712 - - 173,712 Prepaid costs and deposits 5,146 - - 5,146

Total assets 424,570$ 459,489$ 323,580$ 1,207,639$

Liabilities and Fund Balances:Liabilities:

Accounts payable and accrued expenses 47,432$ -$ -$ 47,432$

Total liabilities 47,432 - - 47,432

Deferred Inflows:Unavailable revenue 173,712 - - 173,712

Fund Balances:Nonspendable 5,146 - - 5,146 Restricted for:

Debt service - 459,489 - 459,489 Capital projects - - 323,580 323,580

Assigned for capital reserves 50,000 - 50,000 Unassigned 148,280 - 148,280

Total fund balances 203,426 459,489 323,580 986,495

Total liabilities and fund balances 424,570$ 459,489$ 323,580$ 1,207,639

10,364,202

173,712

Accrued interest payable (165,428) Bonds payable (7,845,000) (8,010,428)

Net position of governmental activities (page 7) 3,513,981$

Amounts reported for governmental activities in the statement of net position are different because:

Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds.

Liabilities not due and payable from current available resources are not reported in governmental fund statements. All liabilities, both current and long-term, are reported in the government-wide statements.

Other long-term assets are not available to pay for current period expenditures and, therefore, are deferred in the funds

Agenda Page 42

Watergrass Community Development District II Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds Year Ended September 30, 2019


General Debt Service Capital Projects

Total Governmental

Funds Revenues:Special assessments 857,639$ 676,298$ -$ 1,533,937$ Special assessments - prepayments - 469,773 - 469,773 Investment and miscellaneous income 5,699 2,223 1,266 9,188

Total revenues 863,338 1,148,294 1,266 2,012,898

Expenditures:Current:

General government 62,646 16,951 - 79,597 Physical environment 783,644 - - 783,644 Roads and streets 12,926 - - 12,926 Culture and recreation 183,210 - - 183,210

Current:Interest - 243,731 - 243,731 Bond issuance costs - - 47,500 47,500

Capital outlay - - - -

Total expenditures 1,042,426 260,682 47,500 1,350,608

Excess (Deficit) of Revenues OverExpenditures (179,088) 887,612 (46,234) 662,290

Other Financing Sources (Uses):Transfers In - 5,467 - 5,467 Transfers Out - - (5,467) (5,467) Intergovernmental transfer-WaterGrass I - (1,134,587) - (1,134,587)

Total other financing sources (uses) - (1,129,120) (5,467) (1,134,587)

Net change in fund balances (179,088) (241,508) (51,701) (472,297)

Fund balances, beginning of year 382,514 700,997 375,281 1,458,792

Fund balances, end of year 203,426$ 459,489$ 323,580$ 986,495$

Agenda Page 43

Watergrass Community Development District II Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds Year Ended September 30, 2019


(472,297)$

Capital outlay - Depreciation expense (51,464) (51,464)

2,500,000

173,712

Change in accrued interest (151,091) (151,091)

1,998,860$

Net change in fund balances - total governmental funds (page 10)

Amounts reported for Governmental Activities in the Statement of Activities are different because:

Change in net position of governmental activities (page 8)

Governmental funds report outlays for capital assets as expenditures because such outlays use current financial resources. In contrast, the Statement of Activities reports only a portion of the outlay as expense. The outlay is allocated over the assets' estimated useful lives as depreciation expense for the period.

Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds:

Revenues in the statement of activities that do not provide current financial resources are not reported as revenue in the funds

Contributions of capital assets are not reported as revenues in governmental funds

Agenda Page 44

Watergrass Community Development District II Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual - General Fund Year Ended September 30, 2019


Budgeted Amounts Actual Amounts

Variance with Final Budget

Positive (Negative)

Original FinalRevenues:Special assessments 850,647$ 850,647$ 857,639$ 6,992$ Developer contributions 500,000 500,000 - (500,000) Investment and miscellaneous income 5,773 5,773 5,699 (74)

Total revenues 1,356,420 1,356,420 863,338 (493,082)

Expenditures:Current:

General government 52,669 52,669 62,646 (9,977) Physical environment 1,001,960 1,001,960 783,644 218,316 Roads and streets 20,000 20,000 12,926 7,074 Culture and recreation 322,400 322,400 183,210 139,190

Total expenditures 1,397,029 1,397,029 1,042,426 354,603

Net change in fund balances (40,609)$ (40,609)$ (179,088) (138,479)$

Fund balance, beginning of year 382,514$

Fund balance, end of year 203,426$

Agenda Page 45

NOTES TO FINANCIAL STATEMENTS

Agenda Page 46

Watergrass Community Development District II Notes to Financial Statements Year Ended September 30, 2019

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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Reporting Entity The WaterGrass Community Development District II (the “District”) was established by County Ordinance 13-05 enacted on March 5, 2013 pursuant to the Uniform Community Development District Act of 1980, otherwise known as Chapter 190, Florida Statutes. The Act provides, among other things, the power to manage basic services for community development, the power to borrow money and issue bonds, and the power to levy and assess non-ad valorem assessments for the financing and delivery of capital infrastructure. The District was established for the purpose of financing and managing the acquisition, construction, maintenance and operation of a portion of the infrastructure necessary for community development within the District. The District was established through a petition for contraction from WaterGrass Community Development District I. WaterGrass II basically encompasses the eastern portion of the Original District land area, at a size of approximately 771 acres. Concurrently with, or immediately following the establishment of WaterGrass II, WaterGrass I was contracted to form the Contracted District (WaterGrass CDD I). Collectively, WaterGrass II and the Contracted District, WaterGrass I, comprise the total land area of the Original District. The District and WaterGrass I entered into an interlocal agreement regarding the payment of the assessments. The District is governed by the Board of Supervisors (the “Board”), which is composed of five members. The Supervisors are elected on an at large basis by the owners of the property within the District. The Board of Supervisors of the District exercises all powers granted to the District pursuant to Chapter 190, Florida Statutes. Four of the Board members are associated with CKB Development, LLC, (the “Developer”) at September 30, 2019. The District is economically dependent on the Developer. The Board has the final responsibility for: 1. Allocating and levying assessments. 2. Approving budgets. 3. Exercising control over facilities and properties. 4. Controlling the use of funds generated by the District. 5. Approving the hiring and firing of key personnel. 6. Financing improvements. The financial statements were prepared in accordance with GASB Statements 14, 39 and 61. Under the provisions of those standards, the financial reporting entity consists of the primary government, organizations for which the District Board of Supervisors is considered to be financially accountable, and other organizations for which the nature and significance of their relationship with the District are such that, if excluded, the financial statements of the District would be considered incomplete or misleading. There are no entities considered to be component units of the District; therefore, the financial statements include only the operations of the District. Government-Wide and Fund Financial Statements The financial statements include both government-wide and fund financial statements. The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the non-fiduciary activities of the primary government. For the most part, the effect of interfund activity has been removed from these statements. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment and 2) grants, contributions and investment income that are restricted to meeting the operational or capital requirements of a particular function or segment and 3) operating-type special assessments that are treated as charges for services (including assessments for maintenance and debt service). Other items not included among program revenues are reported instead as general revenues.

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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Measurement Focus, Basis of Accounting and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Assessments are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenues as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the District considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures are recorded only when payment is due. Assessments, including debt service assessments and operation and maintenance assessments, are non-ad valorem assessments imposed on all lands located within the District and benefited by the District’s activities. Operations and maintenance assessments are levied by the District prior to the start of the fiscal year which begins October 1st and ends on September 30th. These special assessments are imposed upon all benefited lands located in the District. Debt service special assessments are imposed upon certain lots and lands as described in each resolution imposing the special assessment for each series of bonds issued by the District. Certain debt service assessments are collected upon the closing of those lots subject to short term debt and are used to prepay a portion of the bonds outstanding. Assessments and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the District. The District reports the following major governmental funds:

General Fund is the District’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. Debt Service Fund accounts for the accumulation of resources for the payment of debt assessments on long-term debt (See Note 5). Capital Projects Fund accounts for the financial resources to be used for the acquisition or construction of major infrastructure within the District. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. When both restricted and unrestricted resources are available for use, it is the District’s policy to use restricted resources first, then unrestricted resources as they are needed.

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Page | 15


Assets, Liabilities, Deferred Outflows/Inflows of Resources and Net Position/Fund Balance Restricted Assets These assets represent cash and investments set aside pursuant to bond covenants. Deposits and Investments The District’s cash and cash equivalents are considered to be cash on hand and demand deposits. Investments of the District are reported at fair value and are categorized within the fair value hierarchy established in accordance with GASB Statement No. 72, Fair Value Measurement and Application. The District’s investments consist of investments authorized in accordance with Section 218.415, Florida Statutes. Prepaid Items Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. Capital Assets Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, sidewalks and similar items), are reported in the applicable governmental activities column in the government-wide financial statements. Capital assets are defined by the government as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of two years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Property, plant and equipment of the District are depreciated using the straight-line method over the following estimated useful lives: Assets Years

Infrastructure 10Recreational facilities 30

Deferred Outflows/Inflows of Resources In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The District does not have any item that qualifies for reporting in this category for the year ended September 30, 2019. In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The District does has one item that qualifies for reporting in this category for the year ended September 30, 2019. Net Position Flow Assumption Sometimes the District will fund outlays for a particular purpose from both restricted and unrestricted resources. In order to calculate the amounts to report as restricted - net position and unrestricted - net position in the government-wide financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the District’s policy to consider restricted - net position to have been depleted before unrestricted-net position is applied.

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Fund Balance Flow Assumptions Sometimes the District will fund outlays for a particular purpose from both restricted and unrestricted resources (total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied. It is the District’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last. Fund Balance Policies Fund balance of governmental funds is reported in various categories based on the nature of any limitations requiring the use of resources for specific purposes. The District itself can establish limitations on the use of resources through either commitment (committed fund balance) or an assignment (assigned fund balance). The committed fund balance classification includes fund balance amounts that can be used only for the specific purposes determined by a formal action of the government’s highest level of decision-making authority. The Board of Supervisors is the highest level of decision-making authority for the government that can, by adoption of an ordinance or resolution prior to the end of the fiscal year, commit fund balance. Once adopted, the limitation imposed by the ordinance or resolution remains in place until a similar action is taken to remove or revise the limitation. Amounts in the assigned fund balance classification are intended to be used by the government for specific purposes but do not meet the criteria to be classified as committed. The Board of Supervisors has authorized the District Manager to assign amounts for specific purposes. The Board of Supervisors may also assign fund balance as it does when appropriating fund balance to cover a gap between estimated revenue and appropriations in the subsequent year’s appropriated budget. Unlike commitments, assignments generally only exist temporarily. In other words, an additional action does not normally have to be taken for the removal of an assignment. Conversely, as discussed above an additional action is essential to either remove or revise a commitment. Other Disclosures Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates. New Accounting Standards In fiscal year 2019, the District implemented Government Accounting Standards Board (GASB) Statement No. 88, Certain Disclosures Related to Debt, Including Direct Borrowings and Direct Placements. This statement requires additional note disclosures for certain debt issues. There was no effect on beginning balances of the District. Additionally, the GASB has issued Statement No. 83, Certain Asset Retirement Obligations that is effective for this fiscal year. The District has reviewed this statement and determined that this pronouncement has no discernable impact on these financial statements.

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NOTE 2 STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY

Budgetary Information The District is required to establish a budgetary system and an approved annual budget for the General Fund. Annual budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America. All annual appropriations lapse at the fiscal year end. The legal level of budgetary control is at the fund level. Any budget amendments that increase the aggregate budgeted appropriations, at the fund level, must be approved by the Board of Supervisors. The District follows these procedures in establishing the budgetary data reflected in the financial statements. 1. Each year the District Manager submits to the District Board a proposed operating budget for the fiscal year

commencing the following October 1. 2. A public hearing is conducted to obtain comments. 3. Prior to October 1, the budget is legally adopted by the District Board. 4. All budget changes must be approved by the District Board. 5. The budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of

America.

NOTE 3 DEPOSITS AND INVESTMENTS Deposits The District’s cash balances were entirely covered by federal depository insurance or by a collateral pool pledged to the State Treasurer. Florida Statutes Chapter 280, “Florida Security for Public Deposits Act”, requires all qualified depositories to deposit with the Treasurer or another banking institution eligible collateral equal to various percentages of the average daily balance for each month of all public deposits in excess of any applicable deposit insurance held. The percentage of eligible collateral (generally, U.S. Governmental and agency securities, state or local government debt, or corporate bonds) to public deposits is dependent upon the depository’s financial history and its compliance with Chapter 280. In the event of a failure of a qualified public depository, the remaining public depositories would be responsible for covering any resulting losses. Investments The District categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The fair value is the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Under GASB 72, assets or liabilities are classified into one of three levels. Level 1 is the most reliable and is based on quoted prices for identical assets, or liabilities, in an active market. Level 2 uses significant other observable inputs when obtaining quoted prices for identical or similar assets, or liabilities, in markets that are not active. Level 3 is the least reliable, and uses significant unobservable inputs that uses the best information available under the circumstances, which includes the District’s own data in measuring unobservable inputs. Instead of establishing a written investment policy, the District elected to limit investments to those approved by Florida Statutes and the District Trust Indenture. Authorized District investments include, but are not limited to: 1. The Local Government Surplus Funds Trust Fund (SBA); 2. Securities and Exchange Commission Registered Money Market Funds with the highest credit quality rating from

nationally recognized rating agency; 3. Interest-bearing time deposits or savings accounts in qualified public depositories; 4. Direct obligations of the U.S. Treasury;

Investments made by the District at September 30, 2019 are summarized below. In accordance with GASB 31, investments are reported at fair value.

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NOTE 3 DEPOSITS AND INVESTMENTS (CONTINUED)

Investment Type Fair Value Credit RatingWeighted Average

Maturity

U.S. Bank Commercial Paper Sweep 783,069$ NA NA

Credit Risk: The District’s limits credit risk by restricting authorized investments to those described which are either backed by the full faith and credit of the United States Government or maintain the highest credit quality ratings of Moody’s or S&P. Custodial Credit Risk: In the case of deposits, this is the risk that in the event of a bank failure, the District’s deposits may not be returned to it. The District’s requires that bank deposits be secured as provided by Chapter 280, Florida Statutes. This law requires local governments to deposit funds only in financial institutions designated as qualified public depositories by the Chief Financial Officer of the State of Florida, and creates the Public Deposits Trust Fund, a multiple financial institution pool with the ability to assess its member financial institutions for collateral shortfalls if a default or insolvency has occurred. At September 30, 2019, all of the District’s bank deposits were in qualified public depositories. For an investment, this is the risk that, in the event of the failure of the counterparty, the government will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. At September 30, 2019, none of the investments listed are exposed to custodial credit risk because their existence is not evidenced by securities that exist in physical or book entry form. Concentration of Credit Risk: There is no limit on the amount the District may invest in any one issuer. Interest Rate Risk: The District does not specifically address interest rate risk; however, their practice is to apply the prudent-person rule: Investments are made as a prudent person would be expected to act, with discretion and intelligence, to seek reasonable income, preserve capital, and in general, avoid speculative investments. The District invests to provide sufficient liquidity to pay obligations as they come due.

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NOTE 4 CAPITAL ASSETS Capital asset activity for the year ended September 30, 2019 was as follows:

Beginning Balance Additions Disposals

Ending Balance

Governmental Activities:Capital assets not being depreciated:

Land 26,630$ 2,500,000$ -$ 2,526,630$ Construction Work In Progress 6,514,822 . (6,514,822) -

Total capital assets, not being depreciated 6,541,452 2,500,000 (6,514,822) 2,526,630

Capital assets, being depreciated:Recreational Facilities 1,500,000 - - 1,500,000 Infrastructure 14,642 6,514,822 - 6,529,464

Total capital assets, being depreciated 1,514,642 6,514,822 - 8,029,464

Less accumulated depreciation for:Recreational facilities (137,500) (50,000) - (187,500) Infrastructure (2,928) (1,464) - (4,392)

Total accumulated depreciation (140,428) (51,464) - (191,892)

Total capital assets, being depreciated, net 1,374,214 6,463,358 - 7,837,572

Governmental activities capital assets, net 7,915,666$ 8,963,358$ (6,514,822)$ 10,364,202$

Depreciation was charged to physical environment for the current year.

NOTE 5 RELATED DISTRICTS

Common Area Expenses The District entered into an Inter-Local Agreement which allocates costs between WaterGrass Community Development District II (“WaterGrass II”) and WaterGrass Community Development District I (“WaterGrass I”). At September 30, 2019 there was no balance due between the Districts. Debt Service Assessments Due to the contraction of WaterGrass I District’s boundaries (as discussed in Note 1), the District entered into an Inter-Local Agreement between WaterGrass II and WaterGrass I. WaterGrass I has outstanding Special Assessment Revenue Bonds totaling $13,080,000 as of September 30, 2019 and continues to be responsible to make debt service payments on the outstanding debt. Since some of the land transferred to the boundaries of WaterGrass II from WaterGrass I continues to be subject to special assessments for debt service, WaterGrass II ratifies and confirms its obligation under the Bond indentures to assess and collect special assessments necessary to pay the portion of the Bonds benefiting the lands with WaterGrass II. These assessments and collections began in a prior year ended (September 30, 2014). Debt service assessments transferred to WaterGrass I for the year ended September 30, 2019 was $1,134,587. Conveyance of Infrastructure Due to the contraction of WaterGrass I (as discussed in Note 1), WaterGrass I will at some future date, convey to WaterGrass II certain infrastructure improvements that are located in the boundaries of WaterGrass II.

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NOTE 6 LONG-TERM LIABILITIES Series 2018 Special Assessment Revenue Bonds: In September 2018, the District issued $7,845,000 of Special Assessment Revenue Bonds Series 2018 consisting of $510,000 Term Bonds due May 1, 2023 with a fixed interest rate of 4.0%, $775,000 Term Bonds due May 1, 2028 with an interest rate of 4.45%, $2,260,000 Term Bonds due May 1, 2038 with an interest rate of 5.15%, and $4,300,000 Term Bonds due May 1, 2049 with an interest rate of 5.25%. Interest is due semiannually on each May 1 and November 1. The Bonds were issued to finance the construction, acquisition, equipping and/or improvement of a portion of the 2018 capital project, pay capitalized interest, fund the 2018 Reserve Account established for such 2018 Bonds in an amount equal to the 2018 Reserve Account Requirement, and pay certain costs associated with the issuance of such 2018 Bonds. Principal on the Series 2018 Bonds is due annually commencing May 1, 2020 through May 1, 2049.

The Series 2018 Bonds are subject to redemption at the option of the District prior to their maturity on or after May 1, 2028 and extraordinary mandatory redemption prior to their maturity in the manner determined by the Bond Indenture. In the event of default, all principal and interest of the Bonds will become immediately due and payable. The Bond Indenture requires that the District maintain adequate funds in a reserve account to meet the debt service reserve requirement as defined in the Indenture. The requirement was met at September 30, 2019. The Bond Indenture has certain restrictions and requirements relating principally to the use of proceeds to pay for the infrastructure improvements and the procedures to be followed by the District on assessments to property owners. The District agreed to levy special assessments in annual amounts adequate to provide payment of debt service and to meet the reserve requirements. The principal and interest on the Series 2018 Special Assessment Revenue Bonds issued under the Indenture are secured by all revenues received by the District from Series 2018 assessments levied and collected on the District lands benefited by the 2018 Project. The District is in compliance with the requirements of the Bond Indenture. As of September 30, 2019, total principal and interest remaining on the Series 2018 Special Assessment Revenue Bonds totaled $15,638,928. For the year ended September 30, 2019, no principal was paid but interest of $243,731 was paid, and no special assessment revenue was pledged. Long-term debt activity for the year ended September 30, 2019 was as follows:

Beginning Balance Increases Decreases Ending Balance

Due Within One Year

Governmental activities:Bonds payable:

Series 2018 7,845,000$ -$ -$ 7,845,000$ (120,000)$ Governmental activity long-

term liabilities 7,845,000$ -$ -$ 7,845,000$ (120,000)$

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NOTE 6 LONG-TERM LIABILITIES (CONTINUED) At September 30, 2019, the scheduled debt service requirements on the bonds payable were as follows:

Year Ending September 30, Principal Interest2020 120,000$ 397,027$ 2021 125,000 392,227 2022 130,000 387,227 2023 135,000 382,028 2024 140,000 376,628 2025 - 2029 815,000 1,782,790 2030 - 2034 1,035,000 1,563,667 2035 - 2039 1,340,000 1,266,770 2040 - 2044 1,745,000 877,276 2045 - 2049 2,260,000 368,288

7,845,000$ 7,793,928$

Governmental Activities

NOTE 7 DEVELOPER TRANSACTIONS A significant portion of the current year assessments was received from the Developer. The Developer’s portion of special assessment revenue for the year ended September 30, 2019 totaled $771,459 which is 39% of total special assessment revenue. The District is economically dependent on the Developer. NOTE 8 MANAGEMENT COMPANY

The District has contracted with a management company to perform management advisory services, which include financial advisory and accounting services. Certain employees of the management company also serve as officers (Board appointed non-voting positions) of the District. Under the agreement, the District compensates the management company for management, accounting, financial reporting and other administrative costs. NOTE 9 RISK MANAGEMENT The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters. These risks are covered by commercial insurance from independent third parties. The District has not filed any claims under this commercial coverage during the last three years.

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COMPLIANCE SECTION

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Tel. 407-843-5406 www.mcdirmitdavis.com

the trusted partner Page | 22

INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT

OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

To the Board of Supervisors WaterGrass Community Development District II

We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities and each major fund of the WaterGrass Community Development District II (the “District”) as of and for the year ended September 30, 2019, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements and have issued our report thereon dated March 27, 2020. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the District’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the District’s internal control. Accordingly, we do not express an opinion on the effectiveness of the District’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be material weaknesses or significant deficiencies. Given these limitations, during our audit, we did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

Compliance and Other Matters As part of obtaining reasonable assurance about whether the District’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the District’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.


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MANAGEMENT COMMENTS Board of Supervisors WaterGrass Community Development District II Report on the Financial Statements We have audited the financial statements of the WaterGrass Community Development District II, (the “District”) as of and for the fiscal year ended September 30, 2019, and have issued our report thereon dated March 27, 2020. Auditor’s Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States and Chapter 10.550, Rules of the Auditor General. Reporting Requirements We have issued our Independent Auditor’s Report on Internal Control over Financial Reporting and Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and Independent Accountant’s Report on an examination conducted in accordance with AICPA Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated March 27, 2020, should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i.)1., Rules of the Auditor General, require that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. There were no such findings in the preceding annual financial audit report. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. This information has been disclosed in the notes to the financial statements. Financial Condition and Management Section 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, require us to apply appropriate procedures and communicate the results of our determination as to whether or not the District has met one or more of the conditions described in Section 218.503(1), Florida Statutes, and to identify of the specific condition(s) met. In connection with our audit, we determined that the District did not meet any of the conditions described in Section 218.503(1), Florida Statutes. Pursuant to Sections 10.554(1)(i)5.b. and 10.556(8), Rules of the Auditor General, we applied financial condition assessment procedures for the District. It is management’s responsibility to monitor the District’s financial condition, and our financial condition assessment was based in part on representations made by management and the review of financial information provided by same. Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management letter any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Additional Matters Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not note any such findings.

Agenda Page 58

Page | 24

Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, the Board of Supervisors, and applicable management, and is not intended to be and should not be used by anyone other than these specified parties.


Agenda Page 59




INDEPENDENT ACCOUNTANT’S REPORT ON COMPLIANCE WITH THE REQUIREMENTS OF SECTION 218.415, FLORIDA STATUTES

To the Board of Supervisors WaterGrass Community Development District II We have examined WaterGrass Community Development District II’s (the “District”) compliance with the requirements of Section 218.415, Florida Statutes, during the year ended September 30, 2019. Management is responsible for the District’s compliance with those requirements. Our responsibility is to express an opinion on District’s compliance based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and the standards applicable to attestation engagements contained in Government Auditing Standards issued by the Comptroller General of the United States, and, accordingly, included examining, on a test basis, evidence about the District’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the District’s compliance with specified requirements. In our opinion, the District complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2019.


Agenda Page 60

2D.

Agenda Page 61

RESOLUTION 2020-3

A RESOLUTION OF THE BOARD OF SUPERVISORS OF THE WATERGRASS COMMUNITY DEVELOPMENT DISTRICT II CONFIRMING THE DISTRICT’S USE OF THE PASCO COUNTY SUPERVISOR OF ELECTIONS TO CONDUCT THE DISTRICT’S ELECTION OF SUPERVISORS IN CONJUNCTION WITH THE GENERAL ELECTION WHEREAS, the WaterGrass Community Development District II (hereinafter the

“District”) is a local unit of special-purpose government created and existing pursuant to Chapter 190, Florida Statutes, being situated entirely within Pasco County, Florida; and

WHEREAS, the Board of Supervisors of WaterGrass Community Development District II (hereinafter the “Board”) seeks to implement section 190.006(3)(A)(2)(c), Florida Statutes and to instruct the Pasco County Supervisor of Elections (the “Supervisor”) to conduct the District’s General Elections.

WHEREAS, the Supervisor has requested the District adopt a resolution confirming the

District’s use of the Supervisor for the purpose of conducting the District’s future supervisor elections in conjunction with the General Election; and

WHEREAS, the District desires to use the Supervisor for the purpose of conducting the

District’s supervisor elections in conjunction with the General Election.

NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF SUPERVISORS OF THE WATERGRASS COMMUNITY DEVELOPMENT DISTRICT II:

Section 1. The Board is currently made up of the following individuals: Peter Williams,

Julie Clayton, Paul Nettina, and Craig Weber.

Section 2. The term of office for each member of the Board is as follows: Supervisor Williams Seat 1 four year - expires 11/2020 VACANT Seat 2 four year – expires 11/2020 Supervisor Clayton Seat 3 four year – expires 11/2020 Supervisor Nettina Seat 4 four year – expires 11/2022 Supervisor Weber Seat 5 four year – expires 11/2022 Section 3. Seat 1 currently held by Peter Williams, and Seat 2 which is currently Vacant

are scheduled for the General Election in November 2020. Seat 3 currently held by Julie Clayton will be elected by Landowner Election.

Section 4. Pursuant to section 190.006(8), Florida Statutes, members of the Board shall

be entitled to receive for his or her services an amount not to exceed $200 per meeting of the

Agenda Page 62

Board, not to exceed $4,800 per year per member. Section 5. The term of office for the individuals to be elected to the Board in the

November 2020 General Election is four years. Section 6. The new Board members shall assume office on the second Tuesday

following their election. Section 7. The District hereby instructs the Supervisor to conduct the District’s elections

in conjunction with the General Election. The District understands that it will be responsible to pay for its proportionate share of the General Election cost and agrees to pay same within a reasonable time after receipt of an invoice from the Supervisor.

PASSED AND ADOPTED THIS 20TH DAY OF MAY 2020. ATTEST: WATERGRASS COMMUNITY

DEVELOPMENT DISTRICT II ________________________________ __________________________________ Secretary Chairman

Agenda Page 63

2E.

Agenda Page 64

Brian E. Corley Supervisor of Elections Post Office Box 300

**FREEDOM * Requires Responsibility

Dode City, FL 33526-0300

April 16, 2020

Sandra H. Demarco, Recording Manager Inframark 210 N University Drive Suite 702 Coral Springs FL 33071

Dear Ms. Demarco:

VOTE PASCO

Pursuant to your request, the following voter registration statistics are provided for their respective community development districts as of April 15, 2020.

• Estancia at Wiregrass Community Development District 1, 109 • Heritage Springs Community Development District 2,175 • Lake Bernadette Community Development District 1,535 • Lexington Oaks Community Development District 2,996 • Meadow Pointe I Community Development District 3,034 • Meadow Pointe II Community Development District 3,636 • Oakstead Community Development District 2,196 • Oak Creek Community Development District 1,084 • Watergrass II Community Development District 793

As always, please call me if you have any questions or need additional information.

Tiffannie A. Alligood Chief Administrative Officer

East Pasco Government Center Dade City

(352) 521-4302

Central Pasco Professlonal Center land O' lakes

(813) 929-2788

pascovotes.com

West Pasco Government Center New Port Richey (727) 847-8162

Agenda Page 65

sdemarco

Highlight

Third Order of Business

Agenda Page 66

3Bi.

Agenda Page 67

WATERGRASSCommunity Development District II

Annual Operating and Debt Service Budget

Fiscal Year 2021

Prepared by:

Version 2 - Proposed Budget:

(Printed on 5/8/2020 2pm)

Agenda Page 68

Page #

OPERATING BUDGET

General Fund

Summary of Revenues, Expenditures and Changes in Fund Balances …………………………….. 1-3

Budget Narrative …………………………………………………………………………………………… 4-9

Exhibit A - Allocation of Fund Balances …………………………………………………………………. 10

DEBT SERVICE BUDGETS

Series 2007

Summary of Revenues, Expenditures and Changes in Fund Balances …………………………….. 11

Series 2018


Amortization Table…………………………………………………………………………………………… 13-14

Series 2019


Budget Narrative ………………………………………………………………………………………………… 16

SUPPORTING BUDGET SCHEDULES

2021-2020 Non-Ad Valorem Assessment Summary ……………………………………………………….. 17

Table of Contents

Agenda Page 69

Fiscal Year 2021

Watergrass


Operating Budget

Agenda Page 70

WATERGRASS


ADOPTED ACTUAL PROJECTED TOTAL ANNUAL

ACTUAL ACTUAL BUDGET THRU MAY - PROJECTED BUDGET

ACCOUNT DESCRIPTION FY 2018 FY 2019 FY 2020 APR-2020 SEP-2020 FY 2020 FY 2021

Interest - Investments 3,177$ 5,490$ 2,920$ 1,501$ 1,072$ 2,573$ 3,785$

Interlocal Agreement (456) (1,712) (21,268) - (21,268) (21,268) (22,037)

Interest - Tax Collector 94 212 - 238 - 238 -

Rents or Royalties 3,463 - 3,358 2,596 1,854 4,450 3,350

Special Assmnts- Tax Collector 586,159 586,159 918,672 915,418 3,254 918,672 1,292,376

Special Assmnts- CDD Collected 289,647 289,647 249,328 186,996 62,332 249,328 221,715

Special Assmnts- Discounts (19,062) (18,168) (36,747) (32,801) - (32,801) (51,695)

Developer Contribution - - 340,000 173,712 267,703 441,415 -

Other Miscellaneous Revenues 6 - - 5 - 5 -

Access Cards 140 - 225 212 151 363 400

Insurance Reimbursements 3,253 - - - - - -

TOTAL REVENUES 866,421 861,628 1,456,488 1,247,877 315,099 1,562,976 1,447,894

EXPENDITURES

Administrative

P/R-Board of Supervisors 400 1,200 2,000 400 286 686 2,000

ProfServ-Engineering - 520 5,000 - 1,000 1,000 1,000

ProfServ-Legal Services 9,997 10,574 5,000 9,407 879 10,286 11,500

ProfServ-Property Appraiser 150 150 150 - 150 150 150

ProfServ-Web Site Maintenance 1,000 2,661 1,000 1,759 - 1,759 1,759

Auditing Services 3,700 3,700 3,700 3,700 - 3,700 3,700

Contracts-Mgmt Services 11,550 24,000 35,000 20,417 14,583 35,000 40,000

Postage and Freight 975 1,739 500 824 533 1,357 1,350

Public Officials Insurance 2,295 2,295 2,525 2,295 - 2,295 2,525

Printing and Binding 1,345 1,048 1,200 584 613 1,197 1,200

Legal Advertising 3,861 1,877 2,200 - - - 2,200

Misc-Assessmnt Collection Cost 7,068 10,995 18,373 17,652 721 18,373 25,848

Bank Fees 46 - - - - - -

Dues, Licenses, Subscriptions 735 175 735 3,256 560 3,816 3,816

Total Administrative 43,122 60,934 77,383 60,294 19,324 79,618 97,048

Utility Services

Electricity - Streetlighting 84,882 105,919 170,400 80,551 64,000 144,551 153,600

Utility - Irrigation & Landscape Lighting 5,141 4,860 4,800 3,004 2,250 5,254 5,400

Building Utilities 23,921 24,159 25,200 13,231 10,500 23,731 25,200Total Utility Services 113,944 134,938 200,400 96,786 76,750 173,536 184,200


Utility - Refuse Removal 624 743 624 742 530 1,272 1,272

Solid Waste Disposal Assessm. 623 635 625 690 - 690 690Total Garbage/Solid Waste Services 1,247 1,378 1,249 1,432 530 1,962 1,962


Utility Services 18,380 33,313 24,000 26,792 19,500 46,292 46,800Total Water-Sewer Comb Services 18,380 33,313 24,000 26,792 19,500 46,292 46,800

REVENUES

Summary of Revenues, Expenditures and Changes in Fund Balances

Fiscal Year 2021 Proposed Budget

Annual Operating and Debt Service BudgetFiscal Year 2021 1

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WATERGRASS








Contracts-Lakes 21,895 38,320 44,520 25,634 18,310 43,944 43,944

Stormwater Assessment 2,200 2,010 2,000 2,493 - 2,493 2,200

R&M-Mitigation 15,100 16,230 32,500 7,300 8,365 15,665 32,500

R&M-Water Plant - - 5,000 - 5,000 5,000 5,000Total Flood Control/Stormwater Mgmt 39,195 56,560 84,020 35,427 31,675 67,102 83,644


Contracts-Landscape 224,265 364,818 454,903 291,535 208,463 499,998 500,311

Security-Roving Parking Patrol - 8,944 10,000 192 9,808 10,000 10,000

Insurance - Property 9,148 9,699 10,669 9,699 - 9,699 10,669

Insurance - General Liability 12,652 21,662 23,828 16,511 - 16,511 18,162

R&M-Fertilizer 20,255 13,724 62,000 22,799 10,000 32,799 20,000

R&M-Mulch 44,440 47,740 75,000 63,800 - 63,800 50,000

R&M-Pest Control 13,320 9,856 30,000 400 11,188 11,588 12,000

R&M-Playscape - - 30,000 - - - 30,000

R&M-Annuals 525 1,103 10,000 1,603 - 1,603 1,000

R&M-Wall - - 4,000 - - - 4,000

R&M-Plant&Tree Replacement 3,725 3,231 13,000 13,479 - 13,479 5,000

R&M-Pressure Washing 19,491 19,750 20,000 21,885 2,000 23,885 20,000

Miscellaneous Maintenance 10,324 22,045 3,000 13,615 8,925 22,540 75,000

Irrigation Maintenance 30,190 19,883 65,236 23,118 1,919 25,037 26,968

Irrigation Repairs & Replacem. - - 6,000 - - - -

Holiday Lighting & Decorations 7,688 15,000 15,000 25,250 - 25,250 15,000

Capital Outlay - Utility Vehicle - - 15,000 - 15,000 15,000 -Total Other Physical Environment 396,023 557,455 847,636 503,886 267,302 771,188 798,110

Road and Street Facilities

R&M-Sidewalks - 5,366 14,000 2,500 1,786 4,286 10,000

R&M-Street Signs 5,340 - 500 - 500 500 500

R&M-Streetlights - - 500 - 500 500 500

R&M-Roads 10,502 7,560 5,000 4,586 4,445 9,031 9,500Total Road and Street Facilities 15,842 12,926 20,000 7,086 7,231 14,317 20,500


Payroll-Other 15,390 16,612 15,000 14,879 10,065 24,944 23,790

Contracts-On-Site Management 62,000 64,500 64,500 37,625 26,875 64,500 64,500

Contracts-Security Services 3,840 3,840 3,840 7,520 5,600 13,120 13,440

Contracts-Pools 27,600 30,313 27,600 21,525 15,375 36,900 36,900

Contracts-Cleaning Services 7,375 10,405 19,680 6,595 4,875 11,470 11,700

Expense Reimbursement 50 - - - - - -

Telephone/Fax/Internet Services 5,183 6,256 5,280 4,169 3,125 7,294 7,500

R&M-Air Conditioning 525 - 1,000 600 400 1,000 1,000

R&M-Court Maintenance 6,558 2,761 2,500 11,514 - 11,514 4,700

R&M-Pet Waste Station - - 2,400 - - - -

R&M-Playground 2,400 - 2,500 - 1,200 1,200 2,500

Maintenance & Repairs 4,332 7,234 3,000 7,319 2,000 9,319 6,000

Misc-Contingency 13,676 32,038 31,500 14,309 8,548 22,857 31,600


Agenda Page 72

WATERGRASS







Office Supplies 956 3,851 1,000 8,845 2,000 10,845 5,000

Capital Outlay - - 8,000 - 8,000 8,000 -Total Parks and Recreations 149,885 177,810 187,800 134,900 88,063 222,963 208,630

Special Events

Misc-Special Events 8,423 5,400 14,000 3,475 3,437 6,912 7,000Total Special Events 8,423 5,400 14,000 3,475 3,437 6,912 7,000

TOTAL EXPENDITURES 786,061 1,040,714 1,456,488 870,078 513,812 1,383,890 1,447,894

Excess (deficiency) of revenuesOver (under) expenditures 80,360 (179,086) - 377,799 (198,713) 179,086 -


Contribution to (Use of) Fund Balance - - - - - - -

TOTAL OTHER SOURCES (USES) - - - - - - -

Net change in fund balance 80,360 (179,086) - 377,799 (198,713) 179,086 -

FUND BALANCE, BEGINNING 302,153 382,513 203,427 203,427 - 203,427 382,513

FUND BALANCE, ENDING 382,513$ 203,427$ 203,427$ 581,226$ (198,713)$ 382,513$ 382,513$


Agenda Page 73

WATERGRASSCommunity Development District II General Fund

Budget NarrativeFiscal Year 2021

Annual Operating and Debt Service BudgetFiscal Year 2021

REVENUES

Interest-Investments

Interest earned on money market account investments.

Miscellaneous-Interlocal Agreement

This amount is transferred between Watergrass Community Development District I and Watergrass CommunityDevelopment District II per the budget and interlocal agreement to level assessments.

Rents or Royalties

The District receives rental revenue for the rental of the clubhouse and district facilities.

Special Assessments-Tax Collector

The District will levy a Non-Ad Valorem assessment on all the assessable property within the District to pay for theoperating expenditures during the Fiscal Year.

Special Assessments-CDD Collected

The District will directly bill the developer for their portion of property within the District to pay for the operatingexpenditures during the Fiscal Year.

Special Assessments-DiscountsPer Section 197.162, Florida Statutes, discounts are allowed for early payment of assessments. The budgeted amountfor the fiscal year is calculated at 4% of the anticipated Non-Ad Valorem assessments.

Access CardsThe District collects a nominal fee for each access device distributed.

EXPENDITURES

Administrative

P/R-Board of SupervisorsChapter 190 of the Florida Statutes allows for members of the Board of Supervisors to be compensated $200 per meetingat which they are in attendance. The amount for the Fiscal Year is based upon one supervisor attending 10 meetings.

Professional Services-Engineering

The District's engineer provides general engineering services to the District as requested.

Professional Services-Legal Services

The District’s Attorney provides general legal services to the District, i.e., attendance and preparation for monthly Boardmeetings, review of contracts, review of agreements and resolutions, and other research as directed or requested by theBoard of Supervisors and the District Manager.

Professional Services-Property Appraiser

The Property Appraiser provides the District with a listing of the legal description of each property parcel within the Districtboundaries, and the names and addresses of the owners of such property. The District reimburses the PropertyAppraiser for necessary administrative costs incurred to provide this service. Per the Florida Statutes, administrativecosts shall include, but not be limited to, those costs associated with personnel, forms, supplies, data processing,computer equipment, postage, and programming. The budgeted amount for property appraiser costs was based onhistorical cost.

4

Agenda Page 74




EXPENDITURES

Administrative (continued)

Professional Services – Web Site MaintenanceADA compliance services, e-mail and domain renewals.

Auditing Services

The District is required to conduct an annual audit of its financial records by an Independent Certified Public AccountingFirm. The budgeted amount is estimated based on prior year fees.

Contracts-Management Services

The District receives Management, Accounting and Administrative services as part of a Management Agreement withInframark Infrastructure Management Services. The budgeted amount for the fiscal year is based on the contracted feesoutlined in Exhibit "B" of the Management Agreement.

Postage and Freight

Actual postage and/or freight used for District mailings including agenda packages, vendor checks and othercorrespondence.

Public Officials Insurance

The District's Public Officials Liability Insurance policy is with Stahl & Associates. The budgeted amount allows for aprojected increase in the premium.

Printing and Binding

Printing and Binding agenda packages for board meetings, printing of computerized checks, stationary, envelopes, budgetand audit copies, et cet.

Legal Advertising

The District is required to advertise various notices for monthly Board meetings and other public hearings in a newspaperof general circulation.

Miscellaneous-Assessment Collection Costs

The District reimburses the Tax Collector for her or his necessary administrative costs. Per the Florida Statutes,administrative costs shall include, but not be limited to, those costs associated with personnel, forms, supplies, dataprocessing, computer equipment, postage, and programming. The District also compensates the Tax Collector for theactual cost of collection or 2% on the amount of special assessments collected and remitted, whichever is greater. Thebudgeted amount for collection costs was based on a maximum of 2% of the anticipated assessment collections.

Dues, Licenses and Subscriptions

The District is required to pay an annual fee to the Department of Economic Opportunity Division of CommunityDevelopment in the amount of $175. Pool permit and annual movie licensing costs are also recorded here.

Utility Services

Electricity-Streetlighting

Electricity for street lighting is provided by W.R.E.C.

Utility-Irrigation and Landscape Lighting

Electricity for irrigation and landscape lighting is provided by W.R.E.C.

5

Agenda Page 75




EXPENDITURES

Utility Services (continued)

Building Utilities

Electricity for the clubhouse is provided by W.R.E.C.


Utility-Refuse Removal

Refuse removal services are provided by Progressive Waste Solutions.

Solid Waste Disposal Assessment

The District incurs an annual solid waste disposal assessment paid to Pasco County Utilities Service Branch.


Utility Services

Water and sewer services throughout the District are provided by Pasco County Utilities Service Branch.


Contracts-Lakes

The District receives monthly lake maintenance provided under contract with Florida Natives Nursery.

Stormwater Assessments

The District incurs an annual stormwater assessment paid to Mike Fasano, Tax Collector.

R&M-Mitigation

Florida Natives Nursery provides wetland monitoring and mitigation services.

R&M-Water Plant

Maintenance and replacement of aquatic plants throughout the District.


Contracts-Landscape

The District receives monthly landscape maintenance provided under contract.

Security-Roving Parking Patrol

The District anticipates arranging for roving security services.

Insurance-Property

Property insurance is currently provided by Egis Insurance Advisors.

6

Agenda Page 76




EXPENDITURES

Other Physical Environment (continued)

Insurance-General Liability

General liability insurance is currently provided by Stahl & Associates. Inc.

R&M-Fertilizer

Fertilizer costs are incurred as needed.

R&M-Mulch

Mulch installation throughout the District.

R&M-Pest Control

Vivicon provides periodic pest control services as needed. Fire ant prevention is included here.

R&M-Playscape

Costs to maintain the playground areas, including the purchase and installation of mulch at the playground site.

R&M-Annuals

Installation of flowers throughout the district

R&M-Wall

Anticipated costs for repair and maintenance of the wall structures.

R&M-Plant and Tree Replacement

Flower installations and other costs associated with the installation and replacement of plants and trees.

R&M-Pressure Washing

Pressure washing services throughout the District including entrances, park sidewalks and clubhouse.

Miscellaneous Maintenance

Various ancillary maintenance costs not included within another budget line item.

Irrigation Maintenance

Repair and maintenance of the District’s irrigation system.

Holiday Lighting & Decorations

Includes costs for professional holiday lighting installation and removal.

Roads and Street Facilities

R&M-Sidewalks

Repair and maintenance of sidewalks throughout the District.

R&M-Street Signs

Repair and maintenance of street signs throughout the District.

7

Agenda Page 77




EXPENDITURES

Roads and Street Facilities (continued)

R&M-Streetlights

Repair and maintenance of streetlights throughout the District.

R&M-Roads

Repair and maintenance of roads throughout the District.


Payroll-Other

Payroll processed by Innovative for office staff.

Contracts-On-Site Management

Amenity management services are provided as contracted by Inframark.

Contracts-Security Services

Securiteam provides video monitoring of the clubhouse, fitness center and park.

Contracts-Pools

Monthly pool maintenance services are provided by Suncoast.

Contracts-Cleaning Services

The District has contracted with United Building Maintenance to provide cleaning services for the clubhouse, pool, gym anddog park.

Telephone/Fax/Internet Services

Telephone, internet and park cell controller services are provided by Frontier, Bright House and Southern AutomatedAccess.

R&M-Air Conditioning

Costs to repair and maintain four (4) air conditioning units four (4) times per year.

R&M-Court Maintenance

Costs to maintain the tennis courts throughout the District.

R&M-PlaygroundRepair and maintenance costs associated with District playgrounds.

Maintenance and Repairs

Various ancillary park and recreation maintenance and repair costs not included within another budgeted line item.

8

Agenda Page 78




EXPENDITURES

Parks and Recreation (continued)

Miscellaneous-Contingency

This line item captures costs not budgeted for within another line item.

Office Supplies

Various office supplies for the District including ink, envelopes, paper, business cards and other supplies purchased asneeded for the operation of the District.

Special Events

Miscellaneous-Special Events

The District occasionally holds special events for the benefit of the public.

9

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WATERGRASS


AVAILABLE FUNDS

Amount

Beginning Fund Balance - Fiscal Year 2021 382,513$

Net Change in Fund Balance - Fiscal Year 2021 -

Reserves - Fiscal Year 2021 Additions -

Total Funds Available (Estimated) - 9/30/2021 382,513

Nonspendable Fund Balance

Deposits 3,226Subtotal 3,226

Operating Reserve - First Quarter Operating Capital 241,316 (1)

Assigned Fund Balance

Reserves-Capital Reserves (Prior Years) 50,000Reserves-Capital Reserves (FY 2021) -

Subtotal 50,000

Total Allocation of Available Funds 294,542

Total Unassigned (undesignated) Cash 87,971$

Notes

(1) Represents approximately 2 months of operating expenditures. First quarter operating is listed forreference only and has not been assigned as of this report date.

ALLOCATION OF AVAILABLE FUNDS

Allocation of Fund BalancesExhibit "A"


Agenda Page 80

Watergrass


Debt Service BudgetsFiscal Year 2021

Agenda Page 81

WATERGRASS





Interest - Investments -$ -$ -$ -$ -$ -$ -$

Special Assmnts- Tax Collector 511,634 511,634 511,633 509,822 1,811 511,633 511,633

Special Assmnts- Prepayment 1,800,803 469,773 - 1,070,014 - 1,070,014 -

Special Assmnts- CDD Collected 260,991 166,702 157,530 - 141,231 141,231 112,395

Special Assmnts- Discounts (16,638) (15,858) (20,465) (18,268) (2,197) (20,465) (20,465)

TOTAL REVENUES 2,556,790 1,132,251 648,698 1,561,568 140,845 1,702,413 603,563

EXPENDITURES

Administrative

Misc-Assessmnt Collection Cost 9,900 11,173 10,233 9,831 402 10,233 10,233

Total Administrative 9,900 11,173 10,233 9,831 402 10,233 10,233

TOTAL EXPENDITURES 9,900 11,173 10,233 9,831 402 10,233 10,233

Excess (deficiency) of revenuesOver (under) expenditures 2,546,890 1,121,078 638,465 1,551,737 140,443 1,692,180 593,330


Other NonOperating Uses (2,546,889) (1,121,078) (638,465) (1,551,737) (140,443) (1,692,180) (593,330)Contribution to (Use of) Fund Balance - - - - - - -

TOTAL OTHER SOURCES (USES) (2,546,889) (1,121,078) (638,465) (1,551,737) (140,443) (1,692,180) (593,330)

Net change in fund balance 1 - - - - - -

FUND BALANCE, BEGINNING (1) - - - - - -

FUND BALANCE, ENDING -$ -$ -$ -$ -$ -$ -$

REVENUES




Agenda Page 82

WATERGRASS





Interest - Investments -$ 2,223$ -$ 2,862$ 2,044$ 4,906$ 5,509$

Special Assmnts- Tax Collector - - 234,579 233,748 831 234,579 550,949

Special Assmnts- CDD Collected - - 297,388 223,041 74,347 297,388 -

Special Assmnts- Discounts - - (9,383) (8,376) - (8,376) (22,038)

TOTAL REVENUES - 2,223 522,584 451,275 77,222 528,497 534,421

EXPENDITURES

Administrative

ProfServ-Trustee Fees - 5,467 3,718 3,717 - 3,717 3,718

Misc-Assessmnt Collection Cost - - 4,692 4,507 185 4,692 11,019

Total Administrative - 5,467 8,410 8,224 185 8,409 14,737

Non-Operating

Underwriter 156,900 - - - - - -Total Non-Operating 156,900 - - - - - -

Debt Service

Principal Debt Retirement - - 120,000 - 120,000 120,000 125,000

Interest Expense - 243,731 397,028 198,514 198,514 397,028 392,228Total Debt Service - 243,731 517,028 198,514 318,514 517,028 517,228

TOTAL EXPENDITURES 156,900 249,198 525,438 206,738 318,699 525,437 531,964

Excess (deficiency) of revenuesOver (under) expenditures (156,900) (246,975) (2,854) 244,537 (241,476) 3,061 2,456


Interfund Transfer - In - 5,467 - - - - -

Debt Proceeds 857,897 - - - - - -

Operating Transfers-Out - - - (3,785) - (3,785) -Contribution to (Use of) Fund Balance - - (2,854) - - - 2,456

TOTAL OTHER SOURCES (USES) 857,897 5,467 (2,854) (3,785) - (3,785) 2,456

Net change in fund balance 700,997 (241,508) (2,854) 240,752 (241,476) (724) 2,456

FUND BALANCE, BEGINNING 1 700,998 459,490 459,490 - 459,490 458,766

FUND BALANCE, ENDING 700,998$ 459,490$ 456,636$ 700,242$ (241,476)$ 458,766$ 461,222$

REVENUES




12

Agenda Page 83

WATERGRASS


Period

Ending

Outstanding

Principal Balance Principal Interest Debt Service

Annual Debt

Service

11/1/2020 $7,725,000 $196,114 $196,114 $514,628

5/1/2021 $7,725,000 $125,000 $196,114 $321,114

11/1/2021 $7,600,000 $193,614 $193,614 $514,728

5/1/2022 $7,600,000 $130,000 $193,614 $323,614

11/1/2022 $7,470,000 $191,014 $191,014 $514,628

5/1/2023 $7,470,000 $135,000 $191,014 $326,014

11/1/2023 $7,335,000 $188,314 $188,314 $514,328

5/1/2024 $7,335,000 $140,000 $188,314 $328,314

11/1/2024 $7,195,000 $185,199 $185,199 $513,513

5/1/2025 $7,195,000 $150,000 $185,199 $335,199

11/1/2025 $7,045,000 $181,861 $181,861 $517,060

5/1/2026 $7,045,000 $155,000 $181,861 $336,861

11/1/2026 $6,890,000 $178,413 $178,413 $515,274

5/1/2027 $6,890,000 $160,000 $178,413 $338,413

11/1/2027 $6,730,000 $174,853 $174,853 $513,265

5/1/2028 $6,730,000 $170,000 $174,853 $344,853

11/1/2028 $6,560,000 $171,070 $171,070 $515,923

5/1/2029 $6,560,000 $180,000 $171,070 $351,070

11/1/2029 $6,380,000 $166,435 $166,435 $517,505

5/1/2030 $6,380,000 $185,000 $166,435 $351,435

11/1/2030 $6,195,000 $161,671 $161,671 $513,106

5/1/2031 $6,195,000 $195,000 $161,671 $356,671

11/1/2031 $6,000,000 $156,650 $156,650 $513,321

5/1/2032 $6,000,000 $205,000 $156,650 $361,650

11/1/2032 $5,795,000 $151,371 $151,371 $513,021

5/1/2033 $5,795,000 $220,000 $151,371 $371,371

11/1/2033 $5,575,000 $145,706 $145,706 $517,078

5/1/2034 $5,575,000 $230,000 $145,706 $375,706

11/1/2034 $5,345,000 $139,784 $139,784 $515,490

5/1/2035 $5,345,000 $240,000 $139,784 $379,784

11/1/2035 $5,105,000 $133,604 $133,604 $513,388

5/1/2036 $5,105,000 $255,000 $133,604 $388,604

11/1/2036 $4,850,000 $127,038 $127,038 $515,641

5/1/2037 $4,850,000 $270,000 $127,038 $397,038

11/1/2037 $4,580,000 $120,085 $120,085 $517,123

5/1/2038 $4,580,000 $280,000 $120,085 $400,085

11/1/2038 $4,300,000 $112,875 $112,875 $512,960

5/1/2039 $4,300,000 $295,000 $112,875 $407,875

11/1/2039 $4,005,000 $105,131 $105,131 $513,006

5/1/2040 $4,005,000 $315,000 $105,131 $420,131

11/1/2040 $3,690,000 $96,863 $96,863 $516,994

5/1/2041 $3,690,000 $330,000 $96,863 $426,863

11/1/2041 $3,360,000 $88,200 $88,200 $515,063

5/1/2042 $3,360,000 $350,000 $88,200 $438,200

11/1/2042 $3,010,000 $79,013 $79,013 $517,213

5/1/2043 $3,010,000 $365,000 $79,013 $444,013

Series 2018 Amortization Table


13

Agenda Page 84

WATERGRASS


Period

Ending

Outstanding

Principal Balance Principal Interest Debt Service

Annual Debt

Service

Series 2018 Amortization Table

11/1/2043 $2,645,000 $69,431 $69,431 $513,444

5/1/2044 $2,645,000 $385,000 $69,431 $454,431

11/1/2044 $2,260,000 $59,325 $59,325 $513,756

5/1/2045 $2,260,000 $405,000 $59,325 $464,325

11/1/2045 $1,855,000 $48,694 $48,694 $513,019

5/1/2046 $1,855,000 $430,000 $48,694 $478,694

11/1/2046 $1,425,000 $37,406 $37,406 $516,100

5/1/2047 $1,425,000 $450,000 $37,406 $487,406

11/1/2047 $975,000 $25,594 $25,594 $513,000

5/1/2048 $975,000 $475,000 $25,594 $500,594

11/1/2048 $500,000 $13,125 $13,125 $513,719

5/1/2049 $500,000 $500,000 $13,125 $513,125

11/1/2049 $0 $513,125

$7,725,000 $7,396,900 $15,121,900 $15,440,414


14

Agenda Page 85

WATERGRASS





Interest - Investments -$ -$ -$ -$ -$ -$ -$

Special Assmnts- Tax Collector - - - 12,753 45 12,798 12,798

Special Assmnts- Discounts - - - (457) - (457) (512)

TOTAL REVENUES - - - 12,296 45 12,341 12,287

EXPENDITURES

Administrative

Misc-Assessmnt Collection Cost - - - 246 1 247 256

Total Administrative - - - 246 1 247 256

TOTAL EXPENDITURES - - - 246 1 247 256

Excess (deficiency) of revenuesOver (under) expenditures - - - 12,050 44 12,094 12,031


Other NonOperating Uses - - - (12,050) (44) (12,094) (12,031)Contribution to (Use of) Fund Balance - - - - - - -

TOTAL OTHER SOURCES (USES) - - - (12,050) (44) (12,094) (12,031)

Net change in fund balance - - - - - - -

FUND BALANCE, BEGINNING - - - - - - -

FUND BALANCE, ENDING -$ -$ -$ -$ -$ -$ -$

REVENUES




Agenda Page 86

WATERGRASSCommunity Development District II Debt Service Funds



REVENUES

Special Assessments-Tax Collector

The District will levy a Non-Ad Valorem assessment on all the assessable property within the District to pay for the debtservice expenditures during the Fiscal Year.

Special Assessments-CDD Collected

The District will directly bill the developer for their portion of assessable property within the District to pay for the debtservice expenditures during the Fiscal Year.

Special Assessments-DiscountsPer Section 197.162, Florida Statutes, discounts are allowed for early payment of assessments. The budgeted amountfor the fiscal year is calculated at 4% of the anticipated Non-Ad Valorem assessments.

EXPENDITURES

Administrative

ProfServ-Trustee FeesUS Bank provides trustee services for the series 2018 bond.

Miscellaneous-Assessment Collection Cost

The District reimburses the County Tax Collector for her or his necessary administrative costs. Per the FloridaStatutes, administrative costs shall include, but not be limited to, those costs associated with personnel, forms,supplies, data processing, computer equipment, postage, and programming. The District also compensates theTax Collector for the actual cost of collection or 2% on the amount of special assessments collected and remitted,whichever is greater. The budgeted amount for collection costs was based on a maximum of 2% of the anticipatedassessment collections.

Other Non-Operating Uses

Net revenues received will be transferred to the appropriate trust accounts of Watergrass Community DevelopmentDistrict I.

16

Agenda Page 87

Supporting Budget SchedulesFiscal Year 2021

WatergrassCommunity Development District II

Agenda Page 88

WATERGRASSCommunity Development District II

FY 2021 FY 2020

Admin Field FY 2021 FY 2020 Total Total

Platted* Total Total Total 2019 Total 2007 Total 2018 ERU Per Total Admin %age Total Field %age Admin Field Total O&M Total O&M Percent 2019 2007 2018 Annual Annual Percent

Product Parcel District Admin Units Field Units Units Units Units Product ERUS of EAUs ERUS of EAUs per Unit Per Unit Per Unit Per Unit Change DS Per Unit DS Per Unit DS Per Unit Assessment Assessment Change

55' A-1 Watergrass 87.00 87.00 1.38 119.63 4.65% 119.63 4.64% 92.64$ 994.76$ 1,087.40$ 1,089.14$ 0% 837.99$ -$ -$ 1,925.39$ 1,927.13$ -0.1%

40' A-2 Watergrass 87.00 87.00 1.00 87.00 3.38% 87.00 3.37% 67.37$ 723.46$ 790.84$ 792.10$ 0% 609.45$ -$ -$ 1,400.29$ 1,401.55$ -0.1%

60' B-1 Watergrass 60.00 60.00 1.5 90.00 3.50% 90.00 3.49% 101.06$ 1,085.19$ 1,186.26$ 1,188.15$ 0% 914.17$ -$ -$ 2,100.43$ 2,102.32$ -0.1%

75' B-2 Watergrass 60.00 60.00 1.88 112.50 4.38% 112.50 4.36% 126.33$ 1,356.49$ 1,482.82$ 1,485.19$ 0% 1,142.17$ -$ -$ 2,624.99$ 2,627.36$ -0.1%

75' B-3 Watergrass 61.00 61.00 1.88 114.38 4.45% 114.38 4.43% 126.33$ 1,356.49$ 1,482.82$ 1,485.19$ 0% 1,142.17$ -$ -$ 2,624.99$ 2,627.36$ -0.1%

65' B-4 Watergrass 76.00 76.00 1.63 123.50 4.80% 123.50 4.79% 109.48$ 1,175.63$ 1,285.11$ 1,287.17$ 0% 990.35$ -$ -$ 2,275.46$ 2,277.52$ -0.1%

70' B5-B6 Watergrass II 46.00 46.00 46.00 1.75 80.50 3.13% 80.50 3.12% 117.91$ 1,266.06$ 1,383.96$ 1,386.18$ 0% -$ 1,189.91$ -$ 2,573.87$ 2,576.09$ -0.1%

Villas Phase III Watergrass II 126.00 126.00 126.00 0.80 100.80 3.92% 100.80 3.91% 53.90$ 578.77$ 632.67$ 633.68$ 0% -$ -$ 524.00$ 1,156.67$ 1,157.68$ -0.1%

40' Phase III Watergrass II 120.00 130.00 120.00 1.00 120.00 4.67% 130.00 5.04% 67.37$ 723.46$ 790.84$ 792.10$ 0% -$ -$ 680.00$ 1,470.84$ 1,472.10$ -0.1%

50' Phase III Watergrass II 130.00 130.00 130.00 1.25 162.50 6.32% 162.50 6.30% 84.22$ 904.33$ 988.55$ 990.10$ 0% -$ -$ 850.00$ 1,838.55$ 1,840.10$ -0.1%

55' Phase III Watergrass II 114.00 114.00 114.00 1.38 156.75 6.10% 156.75 6.07% 92.64$ 994.76$ 1,087.40$ 1,089.14$ 0% -$ -$ 935.00$ 2,022.40$ 2,024.14$ -0.1%

65' Phase III Watergrass II 82.00 82.00 82.00 1.63 133.25 5.18% 133.25 5.16% 109.48$ 1,175.63$ 1,285.11$ 1,287.17$ 0% -$ -$ 1,105.00$ 2,390.11$ 2,392.17$ -0.1%

75' Phase III Watergrass II 75.00 75.00 75.00 1.88 140.63 5.47% 140.63 5.45% 126.33$ 1,356.49$ 1,482.82$ 1,485.19$ 0% -$ -$ 1,275.00$ 2,757.82$ 2,760.19$ -0.1%

Office/Comm Office/Commercial Watergrass II 3.36 3.36 10 33.60 1.31% 33.60 1.30% 673.75$ 7,234.62$ 7,908.37$ 7,921.02$ 0% -$ -$ -$ 7,908.37$ 7,921.02$ -0.2%

40' C-1 Watergrass II 21.00 21.00 21.00 1.00 21.00 0.82% 21.00 0.81% 67.37$ 723.46$ 790.84$ 792.10$ 0% 609.45$ -$ -$ 1,400.29$ 1,401.55$ -0.1%

40' C-1 Watergrass II 42.00 42.00 42.00 1.00 42.00 1.63% 42.00 1.63% 67.37$ 723.46$ 790.84$ 792.10$ 0% -$ 679.95$ -$ 1,470.79$ 1,472.05$ -0.1%

Villas C-2 Watergrass II 126.00 126.00 126.00 0.80 100.80 3.92% 100.80 3.91% 53.90$ 578.77$ 632.67$ 633.68$ 0% -$ 523.90$ -$ 1,156.57$ 1,157.58$ -0.1%

65' D-1 Watergrass II 91.00 91.00 91.00 1.63 147.88 5.75% 147.88 5.73% 109.48$ 1,175.63$ 1,285.11$ 1,287.17$ 0% -$ 1,104.92$ -$ 2,390.03$ 2,392.09$ -0.1%

65' D-2 Watergrass II 35.00 35.00 35.00 1.63 56.88 2.21% 56.88 2.20% 109.48$ 1,175.63$ 1,285.11$ 1,287.17$ 0% -$ 1,104.92$ -$ 2,390.03$ 2,392.09$ -0.1%

75' D-3 Watergrass II 40.00 40.00 40.00 1.88 75.00 2.92% 75.00 2.91% 126.33$ 1,356.49$ 1,482.82$ 1,485.19$ 0% -$ 1,274.91$ -$ 2,757.73$ 2,760.10$ -0.1%

85' D-4 Watergrass II 68.00 68.00 68.00 2.13 144.84 5.64% 144.84 5.61% 143.51$ 1,540.97$ 1,684.48$ 1,687.18$ 0% -$ 1,444.89$ -$ 3,129.37$ 3,132.07$ -0.1%

55' DD-1 Watergrass II 79.00 79.00 79.00 1.38 108.63 4.23% 108.63 4.21% 92.64$ 994.76$ 1,087.40$ 1,089.14$ 0% -$ 934.93$ -$ 2,022.33$ 2,024.07$ -0.1%

Unplatted**

TCMF - FR Towncenter Watergrass II 295.00 295.00 0.10 29.50 1.15% 29.50 1.14% 6.33$ 68.01$ 74.34$ 74.46$ 0% -$ -$ -$ 74.34$ 74.46$ -0.2%

TCMF - FS Towncenter Watergrass II 75.00 75.00 0.75 56.25 2.19% 56.25 2.18% 47.50$ 510.04$ 557.54$ 558.43$ 0% -$ -$ -$ 557.54$ 558.43$ -0.2%

Office/Comm Office/Commercial Watergrass II 21.25 21.25 10 212.50 8.27% 212.50 8.24% 633.32$ 6,800.54$ 7,433.87$ 7,445.75$ 0% -$ -$ -$ 7,433.87$ 7,445.75$ -0.2%

2,570.29 100% 2,580.29 100%

* Platted Lands include 6% Gross Up for Discounts and Collection Costs

** Unplatted Lands are net the Discounts and Collection Costs

Summary of Assessments


Agenda Page 89

RESOLUTION 2020-04

A RESOLUTION OF THE BOARD OF SUPERVISORS OF THE

WATERGRASS COMMUNITY DEVELOPMENT DISTRICT II

APPROVING PROPOSED BUDGET FOR FISCAL YEAR 2020/2021 AND

SETTING A PUBLIC HEARING THEREON PURSUANT TO FLORIDA

LAW; ADDRESSING TRANSMITTAL, POSTING AND PUBLICATION

REQUIREMENTS; AND PROVIDING AN EFFECTIVE DATE.

WHEREAS, the District Manager has heretofore prepared and submitted to the Board of

Supervisors (“Board”) of the WaterGrass Community Development District II (“District”) prior

to June 15, 2020, proposed budget (“Proposed Budget”) for the fiscal year beginning October 1,

2020 and ending September 30, 2021 (“Fiscal Year 2020/2021”); 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

WATERGRASS COMMUNITY DEVELOPMENT DISTRICT II:

1. PROPOSED BUDGET APPROVED. The Proposed Budget prepared by the

District Manager for Fiscal Year 2020/2021 attached hereto as Exhibit A is hereby approved as

the basis for conducting a public hearing to adopt said Proposed Budget.

2. SETTING A PUBLIC HEARING. A public hearing on said approved Proposed

Budget is hereby declared and set for the following date, hour and location:

DATE: August 19, 2020

HOUR: 5:00 p.m.

LOCATION: WaterGrass Club

32711 Windelstraw Drive

Wesley Chapel, Florida

At the time of adoption of this Resolution 2020-04, there is currently in place federal, state, and

local emergency declarations (“Declarations”). In the event the Declarations remain in effect or if

future orders or declarations authorize, the hearing may be conducted remotely, using

communications media technology pursuant to Executive Orders 20-52 and 20-69 issued by

Governor DeSantis on March 9, 2020, and March 20, 2020, as such orders may be extended,

respectively, and pursuant to Section 120.54(5)(b)2., Florida Statutes. Information regarding

participation in any remote hearing may be found at the District’s website

www.watergrass2cdd.com

Agenda Page 90

http://www.watergrass2cdd.com/

http://www.watergrass2cdd.com/

3. TRANSMITTAL OF PROPOSED BUDGET TO LOCAL GENERAL-

PURPOSE GOVERNMENT. The District Manager is hereby directed to submit a copy of the

Proposed Budget to Pasco County at least 60 days prior to the hearing set above.

4. POSTING OF PROPOSED BUDGET. In accordance with Section 189.016,

Florida Statutes, the District’s Secretary is further directed to post the approved Proposed Budget

on the District’s website at least two days before the budget hearing date as set forth in Section 2,

and shall remain on the website for at least 45 days.

5. PUBLICATION OF NOTICE. Notice of this public hearing shall be published

in the manner prescribed in Florida law.

6. EFFECTIVE DATE. This Resolution shall take effect immediately upon

adoption.

PASSED AND ADOPTED THIS 20th DAY OF MAY, 2020.

ATTEST: WATERGRASS COMMUNITY

DEVELOPMENT DISTRICT II

_____________________________ ___________________________

Andrew P. Mendenhall Paul Nettina

Secretary Chairman

Exhibit A: Approved Proposed Budget for Fiscal Year 2020/2021

Agenda Page 91

Documents

WaterGrass Community Development District II May 20, 2020 ... · 2020/05/20 · WaterGrass Community Development District II Agenda Inframark, Infrastructure Management Services