1. 1 Riverwood Community Governance Forum March 7, 2011 Cal Teague Riverwood C.D.D. District Manager

2. 2 Why were Community Development Districts created?  1980 – Florida Statute Chapter 190 – The Uniform Community Development Act :  To address the need for uniform, focused, fair procedures for the creation, power, operation and duration of independent districts to manage and finance basic community development services  The intent was to provide a timely, efficient, effective, responsive and economic way to deliver basic services  It was seen as a solution to Florida’s planning, management and financing needs to delivery capital infrastructure to service projected growth without overburdening other governments and their taxpayers

3. 3 Specifically what does Chapter 190 allow?  Provides for units of Special Purpose Government- CDD’s  Authorizes use of low-cost, tax exempt financing for infrastructure: roads, storm water systems, water & sewer systems, and streetlights.  Authorization to issue bonds, borrow funds, levy ad valorem taxes, non-ad valorem assessments and special assessments

4. 4 Florida Statue Chapter 190 cont...  Grants the board authority to exercise powers under this act.  Establishes board election procedures/terms of office  Establishes budgeting and reporting standards  Allows for establishing fees for use of district facilities

5. 5 Community Development Districts Special Powers  Finance, fund, plan, establish, acquire, construct or reconstruct, enlarge or extend, equip, operate and maintain basic infrastructure:  Water management and control  Water supply, sewer and wastewater management, reclamation and reuse  Bridges, culverts, roads, street lights  Public transportation facilities and equipment  Parking improvements and related signage  Conservation areas, mitigation areas and wildlife habitats  Other improvements as agreed upon by the local government having jurisdiction  Parks and recreational, cultural and educational facilities  Fire prevention and control  School building and related services  Security  Mosquito control  Waste collection and disposal

6. 6 Funding Mechanisms  Revenue bonds  Special obligation of a CDD  Payable from proceeds of a enterprise fund activity such as a water, sewer or irrigation system.  Special assessments for maintenance needs  Fees and charges  Tax free bonds  Special assessment bonds  Special obligation of a CDD  Payable from proceeds of a special assessment  Used for construction of public improvements  Those who specifically benefit pay for improvements

7. 7 CDD – HOA Differences  HOA/CDD functions are unique and different.  An HOA is a private contractual organization which exists to manage commonly owned private property for the benefit of its members.  A CDD is a local unit of government which exists for the sole purpose to manage the construction, acquisition and maintenance of public government infrastructure whether the property being benefited and burdened is private or public.

8. 8 HOA Responsibilities  A private contractual organization which exists to manage commonly owned private property for the benefit of its members. 1.Typical property management examples include private property landscaping, irrigation systems, condo parking lots, neighborhood swimming pools, clubhouses if not CDD financed and etc. 2.Collecting dues for fulfilling responsibilities. 3.Enforcing private property maintenance codes.

9. 9 CDD Responsibilities  A local unit of government which exists for the sole purpose to manage the construction, acquisition and maintenance of public government infrastructure whether the property being benefited and burdened is private or public. It is legally mandated to do the following: 1.Maintain the public infrastructure and fulfill the requirements of any environmental permits. Failure could result in fines being levied. 2.Fiduciary responsibility to the property owners of the District. 3.Operate in the “Sunshine” and follow the mandated Code of Ethics. 4.Adopt an annual financial plan – The Operating Budget.

10. 10 CDD/HOA Differences  Under Ch. 280, ALL District funds are protected even above the FDIC limits.  Ability to borrow “tax free” money to meet maintenance and other obligations of the District.  As a non-profit the District is exempt from property and sales tax.  The CDD can’t spend District money’s on non- public expenses.

11. 11 CDD/HOA Differences (continued)  District assessments are government liens equal in dignity to property tax liens, superior to even bank liens for mortgages.  Assessments are almost always 100% collected, if not it goes into tax sale.  CDD’s enjoy governmental immunity for law suites and judgments are capped at $200,000/injury, $300,000/event and then limits of insurance.