FINANCIALS (CON’T)

2700 North Military Trail * Suite 350 Boca Raton, Florida 33431
(561) 9994-9299 * (800) 299-4728
Fax (561) 994-5823
www.graucpa.com

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
Key Marco Community Development District Collier County, Florida
We have audited, in accordance with the 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 the major fund of Key Marco Community Development District, Collier County, Florida (‘District’) as of and for the fiscal year ended September 30, 2016, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements, and have issued our opinion thereon dated June 14, 2017.

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 our 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 of operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or defect and correct misstatements on a timely basis. A material weakness is 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 was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses of, significant deficiencies. Given those limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weakness 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, and contracts, and 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 entity’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 entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

June 14, 2017

2700 North Military Trail * Suite 350 Boca Raton, Florida 33431
(561) 9994-9299 * (800) 299-4728
Fax (561) 994-5823
www.graucpa.com

INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE WITH THE REQUIREMENTS OF SECTION 218.415, FLORIDA STATUTES, REQUIRED BY RULE 10.556(10) OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA

To the Board of Supervisors
Key Marco Community Development District Collier County, Florida

We have examined Key Marco Community Development District, Collier County, Florida’s (‘District’) compliance with the requirements of Section 218.4415, Florida Statutes, in accordance with Rule 10.556(10) of the Auditor General of State of Florida during the fiscal year ended September 30, 2016. Management is responsible for the 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, 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 fiscal year ended September 30, 2016.

This report 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, management, and the Board of Supervisors of Key Marco Community Development District, Collier County, Florida and is not intended to be and should not be used by anyone other than these specified parties.

June 14, 2017

2700 North Military Trail * Suite 350 Boca Raton, Florida 33431
(561) 9994-9299 * (800) 299-4728
Fax (561) 994-5823
www.graucpa.com

MANAGEMENT LETTER PURSUANT TO THE RULES OF THE AUDITOR GENERAL FOR THE STATE OF FLORIDA

To the Board of Supervisors
Key Marco Community Development District Collier County, Florida

Report on the Financial Statements

We have audited the accompanying basic financial statements of Key Marco Community Development District (“District”) as of and for the fiscal year ended September 30, 2016, and have issued our report thereon dated June 14, 2017.

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 Florida Auditor General.

Other Reports and Schedule

We have issued our Independent Auditor’s Report on Internal Control over Financial Reporting and Compliance and Other Matters based on an audit of the financial statements performed in accordance with Government Auditing Standards; and Independent Auditor’s Report on an examination conducted in accordance with A/CPA Professional Standards, Section 601, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated June 14, 2017, should be considered in conjunction with this management letter.

Purpose of this Letter

The purpose of this letter is to comment on those matter’s required by Chapter 10.550 of the Rules of the Auditor General for the State of Florida. Accordingly, in connection with our audit of the financial statements of the District, as described in the first paragraph, we report the following:

Current year findings and recommendations.
Status of prior year findings and recommendations.
Compliance with the Provisions of the Auditor General of the State of Florida.

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 Representative, the Florida Auditor General, Federal and other Granting agencies, as applicable, management, and the Board of Supervisors of Key Marco Community Development District, Collier County. Florida and is not intended to be and should not be used by anyone other these specified parties.

We wish to thank Marco Community Development District, Collier County, Florida and the personnel associated with it, for the opportunity to be of service to them in this endeavor as well as future engagements and the courtesies extended to us.

June 14, 2017

REPORT TO MANAGEMENT

CURRENT YEAR FINDINGS AND RECOMMENDATIONS None
PRIOR YEAR FINDINGS AND RECOMMENDATIONS None
COMPLIANCE WITH THE PROVISIONS OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA

Unless otherwise required to be reported in the auditor’s report on compliance and internal controls, the management letter shall include, but not be limited to the following:

A statement as to whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report.

There were no significant findings and recommendations made in the preceding annual financial audit report for the fiscal year ended September 30, 2015.

Any recommendations to improve the local government entity’s financial management.

There were no such matters discovered by, or that came to the attentions of, the auditor, to be reported for the fiscal year ended September 30, 2016.

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.

There were no such matters discovered by, or that came to the attention of, the auditor, to be reported, for the fiscal year ended September 30, 2016.
The name or official title and legal authority of the District are disclosed in the notes to the financial statements.

The financial report filed with the Florida Department of Financial Service pursuant to Section 218.32(1)(a), Florida Statutes agrees with the September 30, 2016 financial report.

The District has not met one or more of the financial emergency conditions described in Section 218.503.(1), Florida Statutes.

We applied financial condition assessment procedures and no deteriorating financial conditions were noted as of September 30, 2016. It is management’s responsibility to monitor financial condition, and our financial conditions assessment was based in part on representations made by management and the review of financial information provided by same.

KEY MARCO COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA
FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016

KEY MARCO COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA

TABLE OF CONTENTS

	Page	
INDEPENDENT AUDITOR’S REPORT	1-2	
MANAGEMENT’S DISCUSSION AND ANALYSIS	3-6	
BASIC FINANCIAL STATEMENTS

Government-Wide Financial Statements:		
Statement of Net Position	7	
Statement of Activities	8	
Fund Financial Statements:		
Balance Sheet – Governmental Funds	9	
Reconciliation of Balance Sheet – Governmental Funds		
to Statement of Net Position	10	
Statement of Revenues, Expenditures and Changes in Fund Balance – Governmental Funds	
11	
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of Activities	
12	
Notes to the Financial Statements	13-19	
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – General Fund	

20	
Notes to Required Supplementary Information	21	
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	

22-23	
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE WITH THE REQUIREMENTS OF SECTION 218.415, FLORIDA STATUTES, REQUIRED BY RULE 10.556(10) OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA	

24	
MANAGEMENT LETTER REQUIRED BY CHAPTER 10.550 OF THE RULES OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA	
25-26	

2700 North Military Trail * Suite 350 Boca Raton, Florida 33431
(561) 9994-9299 * (800) 299-4728
Fax (561) 994-5823
www.graucpa.com

INDEPENDENT AUDITOR’S REPORT

To the Board of Supervisors
Key Marco Community Development District Collier County, Florida

Report on the Financial Statements

We have audited the accompanying financial statements of the governmental activities and the major fund of Key Marco Development District, Collier County, Florida (‘District’) as of and for the fiscal year ended September 30, 2016, 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

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 risks 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 policies 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 the major fund of the District as of September 30, 2016, and the respective changes in financial position thereof for the fiscal 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 and budgetary comparison information be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the 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 statement, and other knowledge we obtained during 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.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated June 14, 2017, on our consideration of the District’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters. The purpose of that report is 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 internal on 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.

Report on Other Legal and Regulatory Requirements

We have also issued our report dated June 14, 2017, on our consideration of the District’s compliance with the requirements of Section 218, 415, Florida Status, as required by Rule 10.556(10) of the Auditor General of the State of Florida. The purpose of that report is to provide an opinion based on our examination conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants.

June 14, 2017

MANAGEMENT’S DISCUSSION AND ANALYSIS

Our discussion and analysis of Key Marco Community Development District, Collier County, Florida (‘District’) provides a narrative overview of the District’s financial activities for the fiscal year ended September 30, 2016. Please read it in conjunction with the District’s Independent Auditor’s Report, basic financial statements, accompanying notes and supplementary information to the basic financial statements.

FINANCIAL HIGHLIGHTS

The assets of the District exceeded its liabilities at the close the most recent fiscal year resulting in a net position balance of $5,698.848.

The change in the District’s total net position in comparison with the prior fiscal year was ($220.290), a decrease. The key components of the District’s net position and change in net position are reflected in the table in the government-wide financial analysis section.

At September 30, 2016, the District’s governmental fund reported an ending fund balance of
$860,853, an increase of $16,732 in comparison with the prior fiscal year. The total fund balance is unassigned fund balance which is available for spending at the District’s discretion.

During fiscal year 2016, the District implemented Governmental Accounting Standards  Boards (‘GASB’) Statement No. 72, Fair Value Measurement and Application, GASB Statement No. 76, The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments, and GASB Statement No. 79, Certain External Investment Pools and Pool Participants. Please see New Accounting Standards Adopted in Note 2 of the financial statements for additional information.
OVERVIEW OF FINANCIAL STATEMENTS
This discussion and analysis are intended to serve as the introduction to the District’s basic financial statements. The District’s basic financial statements are comprised of three components: 1) government –wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves.
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 statements of net position presents information on all the District’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources with the residual amount being 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 in 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 the general government (management) and maintenance functions.

Fund Financial Statements

A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated 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.

OVERVIEW OF FINANCIAL STATEMENTS (Continued)

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 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.
Because the focus of governmental funds is narrower than that of the government –wide financial statements, it is useful to compare information presented for governmental funds with similar information presented or governmental activities in the government –wide financial statements. By doing so, readers may better understand the long –term impact of the District’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 one governmental fund for external reporting. Information is presented in the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances for the general fund. The general fund is considered a major fund.
The District adopts and annual appropriated budget for its general fund. A budgetary comparison schedule has been provided for the general fund to demonstrate compliance with the budget.
Notes to the 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
As noted earlier, net position may serve over time as a useful indicator of an entity’s financial position. In the case of the District, assets exceeded liabilities at the close of the most recent fiscal year.
Key components of the District’s net position are reflected in the following table:

NET POSTION SEPTEMBER 30,
Current and other assets	 		2015		2015		
Capital assets, net of depreciation	$914.643	$ 801.811	
Install assets	 		4,837.985		5, 075.017 	
Current liabilities	 		5,752.638		5,936.828 	
Total liabilities	 		53,790		17,890 	
Net Position	 		53,700		17,080 	
Investment in capital assets	4,837.905	5,075,017	
Unrestricted	 		880,853		844,121 	
Total Net position	 		$5,688,848		$5,919,138 	

The District’s net position reflects its investment in capital assets (e.g. land, land improvements, and infrastructure) less any related debt used to acquire those assets that is still outstanding. These assets are used to provide service to residents; consequently, these assets are not available for future spending.

The remaining balance of unrestricted net position may be used to meet the District’s other obligations.

4
GOVERNMENT –WIDE FINANCIAL ANALYSIS (Continued)

The Districts’ net position decreased during the most recent fiscal year. The majority of the decrease represents the extent to which the cost of operations and depreciation expense exceeded ongoing program revenues.

Key elements of the change in net position are reflected in the following table:

CHANGES IN NET POSITION
FOR THE FISCAL YEAR ENDED SEPTEMBER 30.
	 	2016		2015		
Revenue: Program revenues
Changes for services	

 	$ 623,434		

$ 623,453 	
General revenues	 	8, 373		6,331 	
Total Revenues	 	631,837		629,784 	
Expenses:	 			
General government	167,130	174,518	
Maintenance and operations	 	689,997		603,300 	
Total expenses	 	852,197		777,818 	
Charge in not position	 	(220,290)		(148,034) 	
Net position beginning	 	5,919,138		6,0657,172 	
Net position –ending	 	$ 5,598,848		$ 5, 919,138	

As noted above and in the statement of activities, the cost of all governmental activities during the fiscal year ended September 30, 2016 was $852,127. The cost of the District’s activities was primarily funded by program revenues. Program revenues are comprised primarily of assessments. In total, expenses, including depreciation, increased from the prior fiscal year. The majority of the increase was the result of was the result of an increase in professional services including the landscape maintenance and repairs.

GENERAL BUDGETING 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. The legal level of budgetary control, the level at which expenditures may not exceed budget, is in the aggregate. Any budget amendments that increase the aggregate budgeted appropriations must be approved by the Board of Supervisors. Actual general fund expenditures did not exceed appropriations for the fiscal year ended September 30, 2016.

Actual general fund expenditures for the fiscal year ended September 30, 2016 were less than appropriations due primarily to anticipated costs which not incurred in the current fiscal year.

CAPITAL ASSETS

At September 30, 2016, the District had $9,630, 192 invested in in capital assets for its governmental activities. In the government –wide financial statements depreciation of $4,792, 197 has been taken, which resulted in a net book value of $4,837, 995. More detailed information about the District’s capital assets is presented in the notes of the financial statements.

 ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND OTHER EVENTS

The District does not anticipate any major projects or significant changes to its infrastructure maintenance program for the subsequent fiscal year.

 CONTACTING THE DISTRICT’S FINANCIAL MANAGEMENT

This financial report is designed to provide our citizens, land owners, taxpayers, customers, investors and creditors with a general overview of the District’s finances and to demonstrated the District’s accountability for the financial resources it manages and the stewardship of the facilities it maintains. If you have questions about this report or need additional financial information, contact the Key Marco Community Development District’s management services at Dorrill Management Group, Inc. 5672 Strand Court, Suite 1, Naples, Florida 34110.

KEY MARCO COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA
STATEMENT OF NET POSITION SEPTEMBER 30, 2016
	Government
Activities	
ASSETS		
Cash	$ 909,831	
Assessments receivable	4,812	
Capital Assets:		
Depreciable	 	2,868,792 	
Non depreciable	1,969,203	
Total assets	 	5,752,638 	
LIABILITIES		
Accounts payable	53,790	
Total liabilities	 	53,790 	
NET POSITION		
Investment in capital assets	4,837,955	
Unrestricted	 	860,853 	
Total net position	 	$ 5, 698,848	

KEY MARCO COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016

			Net (Expense) Revenue and	
		Program Revenues	Changes in Net Position	
Functions/Programs	Expenses	Charges for
Service	Governmental Activities	
Primary government				
Governmental activities:				
General government	$ 162, 130	$ 174,518	$ 12, 388	
Maintenance and operations	689,997	448,946	(241,051)	
Total governmental activities	852,127	623,464	(228,663)	
	General revenues:			
	Interest and other revenues	8,373	
	Total general revenues	8,373	
	Change in not position		(220,290)	
	Net position – beginning		5,919,138	
	Net position – ending		$ 5,698,848	

See notes to the financial statements

KEY MARCO COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA
BALANCE SHEET GOVERNMENTAL FUNDS SEPTEMBER 30, 2016
		Total	
 	Major Fund		Governmental	
 	General			Funds	
ASSETS	 			
Cash	 		$ 909,831		$ 909,831 	
Assessments receivable	 		4,812		4,812 	
Total assets	 		$ 914, 643		$ 914,643 	
Liabilities and Fund Balances			
Liabilities:			
Accounts payable	 		$ 53,790		$ 53,790 	
Total liabilities	 		53,790		53,790 	
Funds balance:			
Unassigned	 		860,853		860,853 	
Total fund balances	 		860,853		860,853 	
Total liabilities and fund balances	 		$ 914, 643		$ 914,643 	

See notes to the financial statements

KEY MARCO COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA
RECONCILIATION OF BALANCE SHEET – GOVERNMENTAL FUNDS TO STATEMENT OF NET POSITION
GOVERNMENTAL FUNDS SEPTEMBER 30, 2015

Total fund balances – governmental funds		$ 860, 853	
Amounts reported governmental activities in the state statement of net position are different because:	
Capital assets used in governmental activities are not financial recourses and therefore, are not reported as assets in the government funds. The statement of net position includes those capital assets, net of any accumulated depreciation, in the net position of the government
as whole.	
Cost of capital assets	9,630,192		
Accumulated depreciation	   (4,792, 197)		4,837,995		
Net position of governmental activities		    $ 5,698,848 	

KEY MARCO COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016

		Total	
	Major Fund	Governmental	
	General	Funds	
REVENUES			
Assessments	$ 623,464	$ 623, 464	
Interest and other revenues	 	8,373		8,373		
Total Revenues	 	631,837		631,837		
EXPENDITURES			
General government	162,130	162,130	
Maintenance and operations	 	452,975		452,975		
Total expenditures	 	615,105		615,105		
Excess (deficiency) of revenues			
over (under) expenditures	16,732	16,732	
Fund balances – beginning	 	844,121		844,121		
Fund balances – ending	 	$ 860, 853		$ 860, 853		

KEY MARCO COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA
RECONCILIATION OF STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016

Net change in fund balance – total government funds	$ 16,732	
Amounts reported for governmental activities in the statements of activities are different because:		
Depreciation on capital assets is not recognized in the governmental fund financial statement but is reported as an expense in the statement of activities.	
(237,022)	

Change in net position of governmental activities	
 	$ (220,290)		

See notes to the financial statements

KEY MARCO COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA
NOTES TO FINANCIAL STATEMENTS

NOTE 1 – NATURE OF ORGANIZATION AND REPORTING ENTITY

Key Marco Community Development District (‘District”) was created on July 7, 1992 pursuant to the Uniform Community Development District Act of 1980, otherwise known as Chapter 190. Florida Statutes, under Collier County Ordinance 92-45. The Act provides among other things, the power to manage basic services for community development, power to borrow money and issue bonds, and to levy and assess non-ad valorem assessments for the financing and delivery of capital infrastructure.

The District was established for the purposes 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 is governed by the Board of Supervisors (“Board”) which is composed of five members. The Supervisors are elected on an at large basis by owners of the property within the District. Ownership of land within the District entitles the owner to one vote per acre. The Board of Supervisors of the District exercise all powers granted to the District pursuant to Chapter 190, Florida Statutes.

The Board has the final responsibility for:
Assessing and levying assessments.
Approving budgets.
Exercising control over facilities and properties.
Controlling the use of funds generated by the District.
Approving the hiring and firing of key personnel.
Financing improvements.

The financial statements were prepared in accordance with Governmental Accounting Standards Board (“GASB”) Statements. Under the provisions of those standards, the financial entity consists of the primary government organizations of which the District is considered to be financially accountable and other organizations of 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 Districts; therefore, the financial statements include only the operations of the District.

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Government –Wide and Fund Financial Statements
The basic financial statements include both government –wide and fund financial statements.

The governments –wide financial statements (i.e. the statement of not 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 inter fund 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 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 (Operating – type special assessments for maintenance and debt service are treated as charges for services.) and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Other items not included among program revenues are reported instead as general revenues.

NOTE 2 – 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 to be recognized as revenue 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 or the current period. For this purpose, the government 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
Assessments are non-ad valorem assessments on certain land and all platted lots within the District. Assessments are levied each November 1 on property of record as of the precious January. The fiscal year for which annual assessments are levied begins on October 1 with discounts available for payments through February 28 and become delinquent on April 1.

Assessments and interest associated with the current fiscal period are considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. The portion of assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period.

The District reports the following major governmental funds:

General Fund
The general fund is the general operating fund of the District. It is used to account for all financial resources except those required to be accounted for in another fund.

When both restricted and unrestricted resources are available for use, it is the government’s policy to use restricted resources first for qualifying expenditures, then unrestricted resources as they are needed.

New Accounting Standards Adopted
During fiscal year 2016, the District adopted three new accounting standards as follows:

GASB 72, Fair Value Measurement and Application
The Statement improves financial reporting by clarifying the definition of fair value for financial reporting purposes, establishing general principles for measuring fair value, providing additional fair value application guidance, and enhancing disclosures about fair value measurements. These improvements are based in part on the concepts and definitions established in Concepts Statement No. 6, Measurement of Elements of Financial Statements, and other relevant literature.

GASB 76- The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments The Statement identifies – in the context of the current governmental financial reporting environment – the sources of accounting principles uses to prepare financial statements of state and local government entities in conformity with generally accepted accounting principles (GAAP) and the framework for selecting those principles.

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

New Accounting Standards Adopted (Continued)

GASB 79 – Certain External Investments Pools and Pool Participants
This Statement establishes accounting and financial reporting standards for qualifying external investment pools that elect to measure for financial reporting purposes all of their investments at amortized cost. This Statement also establishes accounting and financial reporting standards for state and local governments that participate in qualifying external investment pool that measures for financial reporting purposes all of its investments at amortized cost.

Assets, Liabilities and Net Position or Equity

Restricted Assets
These assets represent cash and investments set aside pursuant to Bond covenants or other contractual restrictions.

Deposits and Investments
The District’s cash and cash equivalents are considered to be cash and demand deposits (interest and non-interest bearing).

The District has elected to proceed under the Alternative Investment Guidelines as set forth in Section
28.415 (17) Florida Statutes. The District may invest any surplus public funds in the following:
The Local Government Surplus Trust Funds, or any intergovernmental investment pool authorized pursuant to the Florida Inter local Cooperation Act;
Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency;
Interest bearing time deposits or savings accounts inn qualified public depositories;
Direct obligations of the U.S. Treasury

Securities listed in paragraph c and d shall be invested to provide sufficient liquidity to pay obligations as they come due. I addition, surplus funds may be deposited into certificates of deposit which are insured.

The District records all interest revenue related to investment activities in the respective funds. Investments are measured at amortized cost or reported at fair value as required by generally accepted accounting principles.

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 and equipment, and infrastructure assets (e.g., roads, sidewalks and similar items) are reported in the government activities columns 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 (amount not rounded) 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 estimated fair market 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.

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Assets, Liabilities and Net Position or Equity (Continued)

Capital Assets (Continued)
Property, plant and equipment of the District are deprecated using the straight-line method over the following estimated useful lives:
Assets	Year	
Building and improvements	10-30	
Infrastructure assets	10-40	
Machinery and equipment	6-15	

In the governmental fund financial statements, amounts incurred for the acquisition of capital are reported as fund expenditures. Depreciation expense is not reported in the governmental fund financial statements.

Unearned Revenue
Governmental funds report unearned revenue in connection with resources that have been received, but not yet earned.

Long-Term Obligations
In the government-wide financial statements long-term debt and other long-term obligations are reported as liabilities in the statement of not position. Bond premiums and discounts are deferred and amortized ratably over the life of the Bonds. Bonds payable are reported net of applicable premiums of discounts. Bond issuance costs are expensed when incurred.

In the fund financial statements, governmental fund types recognize premiums and discounts, as well as issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

Deferred Outflows/Inflows of Resources
Deferred outflows of resources represent a consumption of net position that applies to future reporting period9s). For example, the District would record deferred outflows of resources on the statement of net position related to debit amounts resulting from current and advance refunding resulting in the defeasance of position related to debt amounts resulting from current and advance refunding’s resulting in the defeasance of debt (i.e. when there are differences between the reacquisition price and the net carrying amount of the old debt).

Deferred inflows of resources represent an acquisition of net position that applies to future reporting period(s). For example, when an asset is recorded in the governmental fund financial statements, but the revenue is unavailable, the District reports a deferred inflow of resources on the balance sheet until times as the revenue becomes available.

Fund Equity/Net Position
In the fund financial statements, governmental funds report non spendable and restricted fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Assignments of fund balance represent tentative management plans that are subject to change.

The District can establish limitations on the use of fund balance as follows:

Committed fund balance –Amounts that can be used only for the specific purposes determined by a formal action (resolution) of the Board Supervisors. Commitments may be changed or lifted only by the Board of Supervisors taking the same formal action (resolution) that imposed the constraint originally. Resources accumulated pursuant to stabilization arrangements sometimes are reported in this category.

::

,   ,v  .i:,i .:, roa§    -=-

-

iu	r !iia

x- -	...

--

rt '

t;c-1" r;;.,;, -

.,ijr !

i::;- ·:~;..3·..·..-..i;....-. .,,

"

! -" "i-" -  i:!a§ijo· -;'  §w;'	-

Ii	r 11
..,m:;

ilir

i

..,.. !.I   r-   '!"'" ti    !:1':,J'rf	;=j

ocl"'

---i ....:-!;  i	c ,00 1 -il-	oo fo[(	ie-i

,;	ie
"-

- ., -  . l	''	-	l?.::J

...	i ";:;·"'

;i; ·	.

0
, :, [ ( -

<>-=> ijj Jifil §ii"0:f	1

.. a
ii

::!•-

,	I>" .	!'- -

!!  1
.,	;,r ·

ij ,!l!.jJ§:.t! "ij

.....Q  '    ijH!!ij	6,

.'2..: .l:9
i
j

-"	Q '   -	- - ""' i

:l. "

,,	ClCI

l

a-	i ""
F.I

r'!

' !:! JUI"'	.. -

! !-:	;

N

( "" '	-

...
ii=t

r..

ii

t:. E

- ai i- jRJ-i-jf!_gti

r;;v-§ o	!

j:
...
5.i

j!',!	-;  -i:;t .!.:-ii;r':-! ..I:.J!-!A!-i-i:i!  ;!-"---

,,11:	-

l	ij!:!"'§"'<>   -	d..
=a,=

a ::::□l ij ij

--

....::::

.H... .:

ru-

;

;r;;"'	- ·

i · -

..,

t c. - a .:.

"- i.-   -yR ,2---! - ,--	i	1..<1

.,

j	i	-
-

r-	:ii=

1iji ::r·r:;:

8°"'·•r-	·-r-        -

-	.-r  n" : ..	;;-;;ij-§i,i•i-j-!iji fl ;ii	i

z 9.....!..U,.."'""  i-:!_ §

11	·-

-	-	-·-	...

...

I J i !ii §!-! -	-	- !!

'll	-:::::l• O  Ci  Ci C. 10•	:;!	:;:::: . .,,
h	-	..-  · -  -	I'll	:'!	:;!!"'

.e·-f
!a!! '"'

ii,,

"II

n = ;l;i" "'	""a:....t "H""" i" ....

ww--1	i(	!   -=- -=- -       -=- i::a	!C'! -:I  QI

"II

a1: -
>I . 1 1:11
' I
,..

"r  - - -

ij;n -·
!!o,r

[.	.J:.. • ,;..,·'	.,,.

ei =- 1	.	..

- "	"U "' .,, ijfU  "UI!""I	i!	S! r	wwu-,-,

!Ii

C	!H!"' j ""c,	!"f- !-I-J'fi, . , "' I	ifiJ	i!!

-

!	".;;'"
~
=i

! 21=::a<> -

..

r"igeauu

'!'" -

-.

o:o :;i .. a "'

l	r- i_ "lr - N

I

\ i,-	! M-

.f..
e,:
:;

l'f	-	. -· =--	:ii-	!ii""	-

i W'' H i

-.·

l1.1  ·n  .-.§. ;;:.-	iu rrr

l.·,r	,,.  ;:i-   ·  .  -
:!

-   .,.,.	;! ..  a	-	i!

'

il!;l' "'' "'"'	s:8'   ..	J"'u.nu

"';i;i-u_;..Pr	..-...	.,..,	=,

!

" .P"!
.".".
f.i

- .. !!'"! f ::; = N IM l!!i- ':=

-  -	P.l

a ::-

r

l-
i

l5

"'!!!

U l "'- OC'	! ,11 1,_!;-!!!§	!	H·tt ", ..

,! ! !

!""- .

,!	---- -ft	.

-	r·

r	i ij- i	i 0  ii

•

"'

y	-        -         '!'"!I"'	-
i

r	F, s:ii:::a:"'i!.0    -§	H!

i ..	!;  ,:o!H!'	I i ;l i!!l .1!!	! "' ! H5 .	I	f! Hw i•!	wrn
!::at
Fl'

RESOLUTION 2017-07

A RESOLUTION OF THE BOARD OF SUPERVISORS OF KEY MARCO COMMUNITY DEVELOPMENT DISTRICT RELATING TO THE ANNUAL APPROPRIATIONS OF THE DISTRICT AND ADOPTING THE BUDGET FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2017, AND ENDING SEPTEMBER 30, 2018, AND REFERENCING THE MAINTENANCE AND BENEFIT SPECIAL ASSESSMENTS TO BE LEVIED BY THE DISTRICT FOR SAID FISCAL YEAR; PROVIDING FOR AN EFFECTIVE DATE.

WHERE AS, the District Manager has, prior to the fifteenth (15th) day in June, 2017, submitted to the Board of Supervisors (the “Board”) a proposed budget for the next ensuing budget year along with an explanatory and complete financial plan for each fund of the Key Marco Community Development District (the “D   istrict”), pursuant to the provisions of Section 190.008(2)(a), Florida Statutes: and

WHEREAS, at least sixty (60) days prior to the adoption of the proposed annual budget and any proposed long term financial plan program of the District for future operations (the “Proposed Budget”) the District filed a copy of the Proposed Budget with the general purpose local governing authorities having jurisdiction over the area included in the District pursuant to the provisions of Section 190.008(2)(b). Florida Statutes; and

WHEREAS, District further posted the Proposed Budget on its website as required pursuant to Section 189.016, Florida Statutes; and

WHEREAS, the Board set August 24, 2017, as the date for a public hearing thereon and caused notice of such public hearing to be given by publication pursuant to Section 190.008(2)(a), Florida Statutes; and

WHEREAS, Section 190.008(2)(a), Florida Statutes requires that, prior to October 1 of each year, the Board by passage of the Annual Appropriation Resolution shall adopt a budget for the ensuing fiscal year and appropriate such sums of money as the Board deems necessary to defray all expenditures of the District during the ensuing fiscal year, and

WHEREAS, the District Manager has prepared a Proposed Budget on a Cash Flow Budget basis, whereby the budget shall project the cash receipts and disbursements anticipated during a given time period, including reserves for contingencies for emergency or other unanticipated expenditures during the fiscal year; and

WHEREAS, Section 190.021, Florida Statutes provides that the Annual Appropriation Resolution shall also fix the Maintenance Special Assessments and Benefit Special Assessments upon each piece of property within the boundaries of the District benefited, specifically and peculiarly, by the maintenance and/or capital improvement programs of the District, such levy representing the amount of District assessments necessary to provide for payment during the ensuing budget year of all property authorized expenditures to be incurred by the District, including principal and interest of special revenue, capital improvement and/or benefit assessment bonds, in order for the District to exercise its various general and special powers to implement its single and specialized infrastructure provision purpose; and

1

WHEREAS, the Board finds and determines that the non-ad valorem special assessments it imposes and levies by this Resolution for maintenance on the parcels of property involved will constitute a mechanism by which the property owners lawfully and validly will reimburse the District for those certain special and peculiar benefits the District has determined are received by, and flow to, the parcels of property from the systems, facilities and services being provided, and that the special and peculiar benefits are apportioned in a manner that is fair and reasonable in accordance with applicable assessment methodology and related case law; and

WHEREAS, the Chari of the Board may designate the District Manager or other person to certify the non-ad valorem assessment roll to the Tax Collector in and for Collier County political subdivision on compatible electronic medium tied to the property identification number no later than September 15, 2017 so that the Tax Collector may merge that roll with others into the collections roll from which the November tax notice is to be printed and mailed; and

WHEREAS, the proceeds from the collections of these imposed and levied non-ad valorem assessments shall be paid to the District; and

WHEREAS, the Tax Collector, under the direct supervision of the Florida Department of Revenue performs the state work in preparing, mailing out, collecting and enforcing against delinquency the non-ad valorem assessments of the District using the Uniform Collections Methodology for non-ad valorem assessments; and

WHEREAS, if the Property Appraiser and the Tax Collector have adopted a different technological procedure for certifying and merging the rolls, then that procedure must be worked out and negotiated with Board approval through the auspices of the District Manager before there are any deviations from the provisions of Section 197.3632, Florida Statutes, and Rule 12D-18, Florida Administrative Code.

NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF SUPERVISORS OF KEY MARCO COMMUNITY DEVELOPEMENT DISTRICT;

Section 1, Recitals. The foregoing recitals are true and correct and incorporated herein by reference.

Section 2. Budget.

The Board has reviewed the District Manager’s Proposed Budget, a copy of which is on file with the office of the District Treasurer and the office of the Recording Secretary, and is hereby attached to this Resolution, and hereby approves certain amendments thereto, as referenced herein.

The District Manager’s Proposed Budget, as amended by the Board, is adopted hereby in accordance with the provisions of Section 190.008(2)(a), Florida Statutes and incorporated herein by reference: provided, however, that the comparative figures contained in the adopted budget may be revised subsequently as deemed necessary by the District Manager to reflect actual revenues and expenditures for Fiscal Year 2016-2017 and/or revised projections for Fiscal Year 2017-2018.

The adopted budget, as amended, shall be maintained in the office of the District Treasurer and the District Recording Secretary and identified as “The Budget for the Key Marco Community Development District for the Fiscal Year Ending September 30, 2018, as adopted by the Board of Supervisors on August 24, 2017.

Section 3. Appropriations. There is hereby appropriated out of the revenues of the District, for Fiscal Year beginning October 1, 2017, and ending September 30, 2018 the sum of 	
 	($	) to be raised by the applicable imposition and levy by the Board of applicable non-ad valorem special assessments and otherwise, which sum is deemed by the Board of Supervisors to be necessary to defray all expenditures of the District during said budget year, to be divided and appropriated in the following fashion:

TOTAL GENERAL FUND	$   		
Total All Funds	$   		

Section 4. Supplemental Appropriations. The Board may authorize by resolution supplemental appropriations or revenue changes for any lawful purpose form funds on hand or estimated to be to be received within the fiscal year as follows:

The Board may authorize a transfer of the unexpended balance or portion thereof of any appropriation item.

The Board may authorize an appropriation from the inappropriate balance any fund.

The Board may increase any revenue or income budget account to reflect receipt of any additional unbudgeted monies and make the corresponding change to appropriations or the inappropriate balance.

The District Manager and Treasurer shall have the power within a given fund to authorize the transfer of any unexpended balance of any appropriation item or any portion thereof, provided such transfers do not exceed Ten Thousand ($10,000) Dollars or have the effect or causing more than 10% increase, previously approved transfers included, to the original budget appropriation for the receiving program. Transfers within a program or project may be approved by the applicable department director and the District Manager or Treasurer. The District Manager or Treasurer must establish administrative procedures, which require information on the request forms proving that such requests comply with this section.

Section 5. maintenance Special Assessment Levy: Fixed Referenced and to be Levied by the Board.

The	Fiscal	Year	2017-2018	Maintenance	Special	Assessment	Levy	(the
 “Assessment Levy”) for the assessment upon all the property within the boundaries of the District based upon the special and peculiar benefit revived and further based upon reasonable and fair apportionment of the special benefit, shall be accordance with the attached Exhibit A, which levy represents the amount of District assessments necessary to provide for payment during the aforementioned budget year of all properly authorized expenditures to be incurred by the District, including principal and interest of special revenue, capital improvement and/or benefit assessment bonds. The Assessment Levy shall be distributed as follows:

General Fund O & M	S [See Assessment Levy Resolution 2017- 	]

3

The designee of the Chair of the Board shall be the Manager or the Treasurer of the District Designated to certify the non-ad valorem assessment roll to the Tax Collector in and for the Collier County political subdivision, in accordance with applicable provisions of State law (Chapters 170, 190 and 197, Florida Statutes) and applicable rules (Rule 12D-18, Florida Administrative Code) which shall include not only the maintenance special assessment levy but also total for the debt service levy, as required by and pursuant to law.

Section 6. Effective Date. This Resolution shall be effective immediately upon its adoption.

PASSED AND ADOPTED at a meeting of the Board of Supervisors of Key Marco Community Development District this 24th day of August, 2017.

Attest:

Secretary/Assistant Secretary	KEY MARCO COMMUNITY DEVELOPER DISTRICT

Manureen McFarland, Chair	

4

RESOLUTION 2017-08

A RESOLUTION OF THE BOARD OF SUPERVISORS OF KEY MARCO COMMUNITY DEVELOPMENT DISTRICT LEVYING AND IMPOSING NON AD VALOREM MAINTENANCE SPECIAL ASSESSMENTS FOR KEY MARCO COMMUNITY DEVELOPMENT DISTRICT AND CERTIFYING AN ASSESSMENT ROLL FOR FISCAL YEAR 2017-2018; PROVIDING A SEVERABILITY CLAUSE; PROVIDING FOR CONFLICT AND PROVIDING AN EFFECTIVE DATE.

WHEREAS, Key Marco Community Development District (the “District”) is a local unit of special-purpose government established pursuant to Chapter 190, Florida Statutes for the purpose of providing, operating and maintaining infrastructure improvements, facilities and services to the lands within the District; and

WHEREAS, the District has constructed or acquired certain public improvements within the District and provides certain services in accordance with Chapter 190, Florida Statutes; and

WHEREAS, the Board of Supervisors of the District (“Board”) hereby determines to undertake various operations and maintenance activities described in the District’s general fund budget for Fiscal Year 2017/2018 attached hereto as E xhibit “A” and incorporated by reference herein (“Operations and Maintenance Budget”); and

WHEREAS, the District must obtain sufficient funds to provide for the operation and maintenance of the services and facilities provided by the District as described in the Operations and Maintenance Budget for Fiscal Year 2017/2018; and

WHEREAS, the provision of such services, facilities, and operations is a benefit to lands within the District; and

WHEREAS, Chapter 197, Florida Statutes, provides a mechanism pursuant to which such special assessments may be placed on the tax roll and collected by the local tax collector (“Uniform Method”); and

WHEREAS, the District has previously evidenced its intention to utilize the Uniform Method;
and

WHEREAS, the District has approved an Agreement with the Property Appraiser and Tax Collector of the County to provide for the collection of the special assessments under the Uniform Method; and

1

WHEREAS, the Board finds the District’s total Operations and Maintenance operation assessments, taking into consideration other revenue sources during Fiscal Year 2017/2018 (defined as October 1, 2017 through September 30, 2018), will amount to $ 	; and

WHEREAS, the Board finds that the non-ad valorem special assessments it levies and imposes by this resolution for operation and maintenance on the parcels of property involved will reimburse the District for certain special and peculiar benefits received by the property flowing from the maintenance of the improvements, facilities and services apportioned in a manner that is fair and reasonable, in accordance with the applicable assessment methodology as adopted by the District; and

WHEREAS, it is in the best interests of the District to proceed with the imposition of the special assessments; and

WHEREAS, it is in the best interests of the District to adopt the Assessment Roll of the District (the “Assessment Roll”) attached to this Resolution as E xhibit “B” and incorporated as a material part of this Resolution by this reference, and to certify the Assessment Roll to the County Tax Collector pursuant to the Uniform Method; and

WHEREAS, it is in the best interests of the District to permit the District Manager to amend the Assessment Roll, certified to the County Tax Collector by this Resolution, as the Property Appraiser updates the property roll for the County, for such time as authorized by Florida law,

NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF SUPERVISORS OF KEY MARCO COMMUNITY DEVELOPMENT DISTRICT OF COLLIER COUNTY, FLORIDA;

Section 1, Recitals. The foregoing recitals are true and correct and incorporated herein by reference.

Section 2. Benefit. The provision of the services, facilities, and operations as described in
 Exhibit “A” confer a special and peculiar benefit to the lands within the District, which benefits exceed or equal the costs of the Assessments (as defined below). The allocation of the costs to the specially benefitted lands is shown in Exhibits “A” and “B”.

Section 3. Assessment Imposition. A special assessment for operations and maintenance as provided for in Chapter 190, Florida Statutes is hereby imposed and levied on the benefitted lands within the District in accordance with Exhibits “A” and “B” (the “Assessment”). The lien of the Assessments imposed and levied by this Resolution shall be effective upon passage of this Resolution.

Section 4. Collection. The collection of the Assessments shall be at the same time and in the same manner as County taxes in accordance with the Uniform Method.

Section 5. Assessment Roll. The District’s Assessment Roll, attached to this Resolution as Exhibit “B,” is hereby certified to the County Tax Collector and shall be collected by the County Tax Community Development District; The Chari of the Board designates the District Manager to perform the certification duties. A copy of this Resolution be transmitted to the proper public officials so that its purpose and effect may be carried out in accordance with law.

Section 6. Assessment Roll Amendment. The District Manager shall keep apprised of all updates made to County property tax roll by the Property Appraiser after the date of this Resolution, and shall amend the District’s Assessment Roll in accordance with any such updates, for such time as authorized by

2

Florida law, to the County property tax roll. After any amendment of the Assessment Roll, the District Manager shall file the updates to the property tax roll in the District records.

Section 7. Conflict. All Resolutions, sections or parts of sections of any Resolutions or actions of the Board in conflict are hereby repealed to the extent of such conflict.

Section 8. Severability. The invalidity or unenforceability of any one or more provisions of this Resolution shall not affect the validity or enforceability of the remaining portions of this Resolution, or any part thereof.

Section 9. Effective Date. This Resolution shall take effect upon the passage and adoption of this Resolution by the Board of the District.

PASSED AND ADOPTED at a meeting of the Board of Supervisors of Key Marco Community Development District this 24th day of August, 2017.

Attest:

Secretary/Assistant Secretary	KEY MARCO COMMUNITY DEVELOPER DISTRICT

Manureen McFarland, Chair	

Exhibit “A”

Exhibit “B”