FY 2011 August 26, 2010

2  Special Purpose District created under Chapter 190, Florida Statutes  CDDs have limited powers which are defined in Chapter 190.  Subject to Government in the Sunshine and Ethics Laws  Subject to public records laws

3  Must adopt annual budgets in accordance with Florida Statutes and the Truth in Millage Act.  Required to have an annual independent audit  Disclosure requirements ◦ Chapter 190 requires that the following language be inserted in the sales contract in bold conspicuous type immediately preceding the signature: "THE (Name of District) COMMUNITY DEVELOPMENT DISTRICT MAY IMPOSE AND LEVY TAXES OR ASSESSMENTS, OR BOTH TAXES AND ASSESSMENTS, ON THIS PROPERTY. THESE TAXES AND ASSESSMENTS PAY THE CONSTRUCTION, OPERATION, AND MAINTENANCE COSTS OF CERTAIN PUBLIC FACILITIES AND SERVICES OF THE DISTRICT AND ARE SET ANNUALLY BY THE GOVERNING BOARD OF THE DISTRICT. THESE TAXES AND ASSESSMENTS ARE IN ADDITION TO COUNTY AND OTHER LOCAL GOVERNMENTAL TAXES AND ASSESSMENTS AND ALL OTHER TAXES AND ASSESSMENTS PROVIDED FOR BY LAW."

 Reunion East and West CDDs were created in 2001 by separate Osceola County Ordinances  Bonds Issued for Infrastructure (30 year terms) ◦ Reunion East CDD Series  2002  2003  2005 ◦ Reunion West CDD Series  2004

 Planned Infrastructure ◦ Roadways  On-site and Off-site ◦ Water, Wastewater & Stormwater Facilities ◦ Recreation Facilities

 Direct Bills Not Being Paid DistrictLandownderTotal O & MTotal DebtTotal Due Reunion East Ginn Reunion Borrowers (FY 2010)$960,889$2,729,714$3,690,603 DistrictLandownderTotal O & MTotal DebtTotal Due Reunion WestGinn Reunion Borrowers (FY 2010)$257,607.00$736,107.00$993, Fourth Quarter Properties (FY 2009 and FY 2010) $1,628,494$4,661,562$6,290,056

 Foreclosure Process ◦ Delinquent Direct Bill Property Owners  Ginn Reunion Borrowers – Working on a Forbearance Agreement ◦ Fourth Quarter Properties  Proceeding with Foreclosure Process

 Uncollected Assessments (FY 09 and FY 10): ◦ Reunion East  O & M – Approx $960 K  Debt Service – Approx $2.7 M ◦ Reunion West  O & M – Approx $1.88 M  Debt Service – Approx $5.39 M

 Reduced Landscape Contract Services levels 5 times for a total annual savings of $866 K ◦ Reduced Mowing Frequency ◦ Replacement of Annuals w/Perennials

 Eliminated Street Sweeping for an Annual Savings of Approx. $20K  Shut Down Seven Eagles Fountain Saving Electricity and Maintenance  Enter into Agreement with Developer of Terraces to fund the electricity and maintenance of fountain

 Reduced Utility Expenses by shutting off heat to selected pools  Reduced Security Costs to the CDD by Reducing Annual payments from $228,000 to $140K for East and from $172,000 to $1 for West

 Option 1: Increase Assessments – Current Level of Service (Revised Proposed Budget) ◦ Reflects Budget Adjustments made in FY 2010 ◦ Maintains Current Levels of Service ◦ Reflects Adjusted Allocation of Shared Costs ◦ Brings Budget in line with Actuals ◦ Funds a Reserve for Timing of Direct Bill Payments ◦ Reduces Management Services Agreement by $60k ◦ Eliminates Some Contingency Funds

 Option 2: Increase Assessments – Reduce Level of Service ◦ All Items Found in Option 1, Plus:  Landscaping  Reduces frequency of cuts on Zoysia from 36 to 32 annually  Reduces frequency of cuts on Bahia from 24 to 12 annually (except for Patriots Landing)  Additional Option 2A: Eliminate Annuals, Mulching, and Tree Trimming  Pool Aquatic Cleaning  Reduces frequency from 7 days a week to 5 days and 3 days based on season  Pool Janitorial Cleaning  Reduce frequency from 7 days to 3 days

 Option 3: No Increase Assessments – Reduce Level of Service ◦ All Items in Option 2A plus:  Eliminates Security  Electric Reduction of $50K  Close Pools  Limited pool cleaning and electric costs  Eliminate gas & propane costs  Reduce Landscaping LOS further  Reduce LOS on 532 and 545 from 32 cuts to 16 cuts

Reunion East Option 1Option 2Option 2AOption 3 Operating$143,923 Shared$1,285,955$1,164,855$1,056,355$848,455 Security$140,000 $0 Direct Bill Res.$1,388,759$1,279,095$1,183,269$962,663 Reserve$0 $63,125 Total Expenses$2,958,637$2,727,873$2,523,547$2,018,166 Reunion West Option 1Option 2Option 2AOption 3 Operating$130,780 Shared$551,123$499,223$452,723$363,623 Security$1 $0 Direct Bill Res.$1,536,902$1,419,885$1,315,043$1,114,153 Total Expenses$2,218,806$2,049,889$1,898,547$1,608,556

Reunion East 2011 FY 2008FY 2009FY 2010ProposedOption 1Option 2Option 2AOption 3 Commercial$ $568.09$478.67$ $ $ Hotel/Condo$ $568.09$478.67$ $ $ Multi-Family$ $852.14$718.00$ $ $ Single-Family$ $1,136.18$957.34$ $ $ Golf$ $568.09$478.67$ $ $332.15

Reunion West 2011 FY 2008FY 2009FY 2010ProposedOption 1Option 2Option 2AOption 3 Commercial$ $590.77$501.15$462.99$ $ Hotel/Condo$ $590.77$501.15$462.99$ $ Multi-Family$ $886.15$751.73$694.49$ $ Single-Family$ $1,181.53$1,002.30$925.99$ $ Golf$ $590.77$501.15$462.99$ $349.99

 Current Level – Option 1

 Options 2 and 2A

 Option 3