BOGGY BRANCH COMMUNITY DEVELOPMENT DISTRICT
CITY OF JACKSONVILLE, FLORIDA FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2025

BOGGY BRANCH COMMUNITY DEVELOPMENT DISTRICT CITY OF JACKSONVILLE, 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 the Balance Sheet – Governmental Funds
to the Statement of Net Position	
10	
Statement of Revenues, Expenditures and Changes in Fund Balances –
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	13-23	
REQUIRED SUPPLEMENTARY INFORMATION		
Schedule of Revenues, Expenditures and Changes in Fund Balance –
Budget and Actual – General Fund	
24	
Notes to Required Supplementary Information	25	
OTHER INFORMATION
Data Elements required by FL Statute 218.39 (3) (c)	
26	
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	

27-28	
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	

29	
MANAGEMENT LETTER REQUIRED BY CHAPTER 10.550 OF THE RULES OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA	
30-31	

INDEPENDENT AUDITOR’S REPORT
To the Board of Supervisors
Boggy Branch Community Development District City of Jacksonville, Florida

1001 W. Yamato Road ▪ Suite 301 Boca Raton, Florida 33431
(561) 994-9299 ▪ (800) 299-4728
Fax (561) 994-5823
www.graucpa.com

Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities and each major fund of Boggy Branch Community Development District, City of Jacksonville, Florida ("District") as of and for the fiscal year ended September 30, 2025, which collectively comprise the District’s basic financial statements as listed in the table of contents.
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, 2025, 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.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the District and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements
The District’s management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America; and for 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.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the District’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit 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 District’s internal control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the District’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit.
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 is the responsibility of management and, 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.
Other Information Included in the Financial Report
Management is responsible for the other information included in the financial report. The other information comprises the information for compliance with FL Statute 218.39 (3) (c) but does not include the financial statements and our auditor's report thereon. Our opinions on the financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated June 23, 2026 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 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 effectiveness of the District’s 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.

June 23, 2026

MANAGEMENT’S DISCUSSION AND ANALYSIS

The management of the Boggy Branch Community Development District, City of Jacksonville, Florida (“District”) would like to offer the readers of the District’s financial statements this discussion and analysis of the District’s financial activities for the fiscal year ended September 30, 2025. 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 liabilities of the District exceeded its assets at the close of the most recent fiscal year resulting in a net position deficit balance of ($465,761).

The change in the District’s total net position in comparison with the prior fiscal year was $274,139, an increase. 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, 2025, the District’s governmental funds reported combined ending fund balances of
$18,860,818, a decrease of ($5,261,295) in comparison with the prior fiscal year. A portion of fund balance is restricted for debt services and capital projects, non-spendable for prepaid items, assigned for subsequent year’s expenditures and the remainder is unassigned fund balance which is available for spending at the District’s discretion.
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 statement of net position presents information on all the District’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources 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 assessments. The District does not have any business-type activities. The governmental activities of the District include the general government (management), recreation 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 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.

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 District’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balance provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The District maintains three governmental funds for external reporting. 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, all of which are considered major funds.

The District adopts an 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, liabilities exceeded assets at the close of the most recent fiscal year.
Key components of the District’s net position are reflected in the following table:

NET POSITION
SEPTEMBER 30,		
2025	2024	
Current and other assets	$  21,266,037	$	25,942,542	
Capital assets, net of depreciation	49,001,572	37,474,128	
Total assets	70,267,609	63,416,670	
Current liabilities	3,386,351	2,867,517	
Long-term liabilities	67,347,019	61,289,053	
Total liabilities	70,733,370	64,156,570	
Net investment in capital assets	(18,345,447)	(23,814,925)	
Restricted	17,323,554	22,746,777	
Unrestricted	556,132	328,248	
Total net position	$	(465,761)	$	(739,900)	

GOVERNMENT-WIDE FINANCIAL ANALYSIS (Continued)

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 services to residents; consequently, these assets are not available for future spending. Although the District’s investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.

The restricted portion of the District’s net position represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position may be used to meet the District’s other obligations.

The District’s net position increased during the most recent fiscal year. The majority of the increase is the result of an increase in assessments from the Developer to cover scheduled debt service payments.
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,
2025	2024

Revenues:
Program revenues
Charges for services	$	8,241,550	$	1,422,319	
Operating grants and contributions	134,791	114,279	
Capital grants and contributions	726,721	714,110	
General revenues
Miscellaneous	
9,000	
-	
Total revenues	9,112,062	2,250,708	
Expenses:	
General government	161,782	147,047	
Maintenance and operations	364,223	222,469	
Conveyance of infrastructure	5,033,653	-	
Recreation	792,162	-	
Interest	2,486,103	1,766,870	
Bond issue costs	-	767,150	
Total expenses	8,837,923	2,903,536	
Change in net position	274,139	(652,828)	
Net position - beginning	(739,900)	(87,072)	
Net position - ending	$	(465,761)	$	(739,900)	

As noted above and in the statement of activities, the cost of all governmental activities during the fiscal year ended September 30, 2025, was $8,837,923. The costs of the District’s activities were primarily funded by program revenues. Program revenues are comprised primarily of assessments. The remainder of the current fiscal year revenue is interest revenue. The majority of the increase in program revenues is the result of the increase in assessments from the Developer to cover scheduled debt service payments. The increase in current fiscal year expenses is primarily the result of conveyances of completed infrastructure to other entities. Additional information related to the District’s capital assets is reflected in the notes to the financial statements.

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. The general fund budget for the fiscal year ended September 30, 2025 was amended to increase appropriations by $28,799. Actual general fund expenditures did not exceed appropriations for the fiscal year ended September 30, 2025.

CAPITAL ASSETS AND DEBT ADMINISTRATION

Capital Assets
At September 30, 2025, the District had $49,320,812 invested in capital assets. In the government-wide financial statements depreciation of $319,240 has been taken, which resulted in a net book value of
$49,001,572. More detailed information about the District’s capital assets is presented in the notes of the financial statements.
Capital Debt

At September 30, 2025, the District had $46,130,000 Bonds outstanding and $21,015,010 in Developer advance liability for its governmental activities. At September 30, 2025, the District also reported a lease liability of $87,211 for its governmental activities. More detailed information about the District’s capital debt is presented in the notes of the financial statements.

ECONOMIC FACTORS AND NEXT YEAR’S BUDGET

It is anticipated that the construction of infrastructure and general operations and maintenance of the District will increase as the District is being built out.
CONTACTING THE DISTRICT’S FINANCIAL MANAGEMENT

This financial report is designed to provide property owners, customers, investors and creditors with a general overview of the District’s finances and to demonstrate 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 Boggy Branch Community Development District’s Finance Department at 3501 Quadrangle Boulevard, Suite 270, Orlando, FL 32817.

BOGGY BRANCH COMMUNITY DEVELOPMENT DISTRICT CITY OF JACKSONVILLE, FLORIDA
STATEMENT OF NET POSITION SEPTEMBER 30, 2025

	Governmental
	Activities		
ASSETS
Cash	
$	589,677	
Assessments receivable	662,262	
Due from Developer	5,000	
Interest receivable	60,335	
Prepaid items	22,934	
Restricted assets:
Investments	
19,925,829	
Capital assets:
Nondepreciable	
40,298,629	
Depreciable, net		8,702,943 	
Total assets		70,267,609 	
LIABILITIES
Accounts payable	
61,479	
Contracts and retainage payable	2,343,740	
Accrued interest payable	981,132	
Non-current liabilities:
Due within one year	
508,373	
Due in more than one year		66,838,646 	
Total liabilities		70,733,370 	
NET POSITION
Net investment in capital assets	
(18,345,447)	
Restricted for debt service	3,857,047	
Restricted for capital projects	13,466,507	
Unrestricted		556,132 	
Total net position	 $	(465,761) 	

See notes to the financial statements

BOGGY BRANCH COMMUNITY DEVELOPMENT DISTRICT CITY OF JACKSONVILLE, FLORIDA
STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2025

Program Revenues
Charges	Operating	Capital

Net (Expense) Revenue and Changes in Net Position

for		Grants and		Grants and	Governmental Functions/Programs	Expenses	Services	Contributions	Contributions		Activities Primary government:
Governmental activities:

General government

$	161,782	$

161,782	$

-	$	-	$	-

Maintenance and operations	364,223	1,079,458	-	726,721	1,441,956	
Recreation	792,162	-	-	-	(792,162)	
Interest on long-term debt	2,486,103	7,000,310	134,791	-	4,648,998	
Conveyance of infrastructure	5,033,653	-	-	-	(5,033,653)	
Total governmental activities	8,837,923	8,241,550	134,791	726,721	265,139	
		
General revenues:				
		Miscellaneous income				9,000 	
		Total general revenues				9,000 	
		Change in net position			274,139	
		Net position - beginning				(739,900) 	
		Net position - ending			 $	(465,761) 	

See notes to the financial statements

BALANCE SHEET GOVERNMENTAL FUNDS SEPTEMBER 30, 2025

Major Funds

Capital

Total Governmental

	General	Debt Service	Projects	Funds	
ASSETS
Cash	
$	589,677	
$	-	
-	
$	589,677	
Investments	-	4,163,521	15,762,308	19,925,829	
Assessments receivable	-	662,262	-	662,262	
Due from Developer	5,000	-	-	5,000	
Interest receivable	-	12,396	47,939	60,335	
Prepaid items	22,934	-	-	22,934	
Total assets	 $	617,611	$ 4,838,179	$ 15,810,247	$ 21,266,037 	

LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable	

$	61,479	

$	-	

$	-	

$	61,479	
Contracts and retainage payable	-	-	2,343,740	2,343,740	
Total liabilities	61,479	-	2,343,740	2,405,219	

Fund balances: Nonspendable:
Prepaid items	22,934	-	-	22,934	
Restricted for:					
Debt service	-	4,838,179	-	4,838,179	
Capital projects	-	-	13,466,507	13,466,507	
Assigned for:	
Subsequent year's expenditures	140,979	-	-	140,979	
Unassigned	392,219	-	-	392,219	
Total fund balances	556,132	4,838,179	13,466,507	18,860,818	

Total liabilities and fund balances	
$	617,611	
$ 4,838,179	
$ 15,810,247	
$ 21,266,037	

See notes to the financial statements

RECONCILIATION OF THE BALANCE SHEET – GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION
SEPTEMBER 30, 2025

Total fund balances - governmental funds	$ 18,860,818

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 as assets in the governmental funds. The statement of net position includes those capital assets in the net position of the government as a whole.
Cost of capital assets	49,320,812
Accumulated depreciation	   (319,240)   49,001,572
Liabilities not due and payable from current available resources are not reported as liabilities in the governmental fund statements. All liabilities, both current and long-term, are reported in the government-wide financial statements.
Accrued interest payable	(981,132)
Long-term liabilities	  (67,347,019)  (68,328,151) 
Net position of governmental activities	 $	(465,761) 

See notes to the financial statements

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2025

Major Funds

Total
	Capital	Governmental	
		General	Debt Service		Projects		Funds	
REVENUES
Assessments	
$	
1,241,240	
7,000,310	
$	
-	
$	
8,241,550	
Interest income		-	134,791		726,721		861,512	
Miscellaneous income		9,000	-		-		9,000	
Total revenues		1,250,240	7,135,101		726,721		9,112,062	

EXPENDITURES
Current:
General government		

161,782	

-		

-		

161,782	
Maintenance and operations		364,223	-		-		364,223	
Recreation Debt service:
Principal		474,554

14,000	-

2,965,000		-

-		474,554

2,979,000	
Interest		7,751	2,548,735		-		2,556,486	
Capital outlay		-	-		16,878,705		16,878,705	
Total expenditures		1,022,310	5,513,735		16,878,705		23,414,750	

Excess (deficiency) of revenues over (under) expenditures		

227,930	

1,621,366		

(16,151,984)		

(14,302,688)	
OTHER FINANCING SOURCES (USES)
Interfund transfers		
(46)	
(34,312)		
34,358		
-	
Developer proceeds		-	-		9,041,393		9,041,393	
Total other financing sources (uses)		(46)	(34,312)		9,075,751		9,041,393	

Net change in fund balances		
227,884	
1,587,054		
(7,076,233)		
(5,261,295)	
Fund balances - beginning		328,248	3,251,125		20,542,740		24,122,113	

Fund balances - ending	
$	
556,132	
$ 4,838,179	
$	
13,466,507	
$	
18,860,818	

See notes to the financial statements

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2025

Net change in fund balances - total governmental funds
Amounts reported for governmental activities in the statement of activities are different because:
Governmental funds report capital outlays as expenditures; however, the cost of capital assets is eliminated in the statement of activities and capitalized in the statement of net position.
Governmental funds report Developer advances as financial resources when cash is received, whereas these amounts are

$	(5,261,295)

16,878,705

eliminated in the statement of activities and recognized as long-term liabilities in the statement of net position.	
(9,041,393)	
Repayments of long-term liabilities are reported as expenditures in the governmental fund financial statements, but such repayments reduce liabilities in the statement of net position and are eliminated in the statement of activities.	

2,979,000	
The change in accrued interest on long-term liabilities between the current and prior fiscal years is recorded in the statement of activities, but not in the governmental fund financial statements.	

65,956	
Amortization of Bond premiums is not recognized in the governmental fund financial statements, but reduces interest expense in the		
statement of activities.	4,427	
Conveyances of infrastructure improvements to other governments of previously capitalized capital assets is recorded as an expense in the		
statement of activities.	(5,033,653)	
Depreciation of capital assets is not recognized in the governmental fund financial statements, but is reported as an expense in the		
statement of activities.		(317,608) 	
Change in net position of governmental activities	 $	274,139 	

See notes to the financial statements

CITY OF JACKSONVILLE, FLORIDA
NOTES TO FINANCIAL STATEMENTS

NOTE 1 – NATURE OF ORGANIZATION AND REPORTING ENTITY

Boggy Branch Community Development District ("District") was established on August 27, 2019 by Ordinance 2019-483-E of the City Council of the City of Jacksonville, Florida, 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, 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 by the owners of the property within the District. The Board exercises all general powers granted to the District pursuant to Chapter 190, Florida Statutes. At September 30, 2025, all of the Board members are affiliated with CND-ICI SEQ, LLC (“Developer”).

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 reporting entity consists of the primary government, organizations for which the District 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.
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 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 are 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. 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.

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 of 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 all assessable property within the District. Assessments are levied to pay for the operations and maintenance and debt service of the District. The fiscal year for which annual assessments are levied begins on October 1 and, if collected using the Uniform Method of Collection, with discounts available for payments through February 28 and become delinquent on April 1. Alternatively, the District adopts a resolution providing for the collection dates and directly collects the assessments.

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.

Debt Service Fund
The debt service fund is used to account for the accumulation of resources for the annual payment of principal and interest on long-term debt.
Capital Projects Fund
This 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 government’s policy to use restricted resources first for qualifying expenditures, then unrestricted resources as they are needed.
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 on hand and demand deposits (interest and non-interest bearing).
The District has elected to proceed under the Alternative Investment Guidelines as set forth in Section
218.415 (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 Interlocal 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 in 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. In addition, surplus funds may be deposited into certificates of deposit which are insured and any unspent Bond proceeds are required to be held in investments as specified in the Bond Indenture.

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 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 asset lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are completed and placed in service.

Property, plant and equipment of the District are depreciated using the straight-line method over the following estimated useful lives:

Assets	Years	
Amenity Center	30	
Right to use leased assets	5	

In the governmental fund financial statements, amounts incurred for the acquisition of capital assets, including right to use leased assets, are reported as fund expenditures. Depreciation expense is not reported in the governmental fund financial statements.

Leases
The District is a lessee for a non-cancellable lease of equipment. The District recognizes a lease liability and an intangible right-to-use lease asset (lease asset) in the government-wide financial statements. The District recognizes lease liabilities with an initial, individual value of $5,000 or more. At the commencement of a lease, the District initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The leased asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the commencement date, plus certain direct costs. Subsequently, the leased asset is amortized on a straight-line basis over its useful life.
Key estimates and judgments related to leases include how the District determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments.
The District uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the District generally uses its estimated incremental borrowing rate as the discount rate for leases.

The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the District is reasonably certain to exercise.

The District monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability. Lease assets are reported with other capital assets and lease liabilities are reported with long-term debt on the statement of net position.

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 net position. Bond premiums and discounts are deferred and amortized ratably over the life of the Bonds. Bonds payable are reported net of applicable premiums or 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
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.
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.

Fund Equity/Net Position
In the fund financial statements, governmental funds report nonspendable 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 of 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.
Assigned fund balance – Includes spendable fund balance amounts that are intended to be used for specific purposes that are neither considered restricted nor committed. The Board may also assign fund balance as it does when appropriating fund balance to cover differences in estimated revenue and appropriations in the subsequent year’s appropriated budget. Assignments are generally temporary and normally the same formal action need not be taken to remove the assignment.

The District first uses committed fund balance, followed by assigned fund balance and then unassigned fund balance when expenditures are incurred for purposes for which amounts in any of the unrestricted fund balance classifications could be used.
Net position is the difference between assets and deferred outflows of resources less liabilities and deferred inflows of resources. Net position in the government-wide financial statements are categorized as net investment in capital assets, restricted or unrestricted. Net investment in capital assets represents net position related to infrastructure and property, plant and equipment. Restricted net position represents the assets restricted by the District’s Bond covenants or other contractual restrictions. Unrestricted net position consists of the net position not meeting the definition of either of the other two components.

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.

NOTE 3 – BUDGETARY INFORMATION

The District is required to establish a budgetary system and an approved Annual Budget. Annual Budgets are adopted on a basis consistent with generally accepted accounting principles for the general fund. All annual appropriations lapse at fiscal year-end.

The District follows these procedures in establishing the budgetary data reflected in the financial statements.
Each year the District Manager submits to the District Board a proposed operating budget for the fiscal year commencing the following October 1.
Public hearings are conducted to obtain public comments.
Prior to October 1, the budget is legally adopted by the District Board.
All budget changes must be approved by the District Board.
The budgets are adopted on a basis consistent with generally accepted accounting principles.
Unused appropriation for annually budgeted funds lapse at the end of the year.

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’s investments were held as follows at September 30, 2025:

 Amortized Cost	Credit Risk	Maturities	

First American Treasury Obligations Fund CL D
Total Investments

$	19,925,829
 	
 $	19,925,829 

S&P AAAm	Weighted average of the
portfolio: 48 days

Credit risk – For investments, credit risk is generally the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Investment ratings by investment type are included in the preceding summary of investments.

Concentration risk – The District places no limit on the amount the District may invest in any one issuer.

Interest rate risk – The District does not have a formal policy that limits investment maturities as a means of managing exposure to fair value losses arising from increasing interest rates.

However, the Bond Indenture limits the type of investments held using unspent proceeds.
Fair Value Measurement – When applicable, the District measures and records its investments using fair value measurement guidelines established in accordance with GASB Statements. The framework for measuring fair value provides a fair value hierarchy that prioritizes the inputs to valuation techniques.

These guidelines recognize a three-tiered fair value hierarchy, in order of highest priority, as follows:
Level 1: Investments whose values are based on unadjusted quoted prices for identical investments in active markets that the District has the ability to access;
Level 2: Investments whose inputs - other than quoted market prices - are observable either directly or indirectly; and,
Level 3: Investments whose inputs are unobservable.
The fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the entire fair value measurement. Valuation techniques used should maximize the use of observable inputs and minimize the use of unobservable inputs.

Money market investments that have a maturity at the time of purchase of one year or less and are held by governments other than external investment pools should be measured at amortized cost. Accordingly, the District’s investments have been reported at amortized cost above.

 Fund	Transfer in	Transfer out 
General	$	-	$	46	
Debt service	-	34,312	
Capital projects		34,358	-		
Total	 $	34,358  $	34,358 	
Transfers are used to move revenues from the fund where collection occurs to the fund where funds have been reallocated for use. In the case of the District, transfers from the debt service fund to the capital projects fund were made in accordance with the Bond Indentures. The transfer from the general fund to the capital projects fund was nominal and did not have a material impact on fund balances.

NOTE 6 – CAPITAL ASSETS

Capital asset activity for the fiscal year ended September 30, 2025 was as follows:

Governmental activities
Capital assets, not being depreciated

Beginning Balance

Additions	Reductions

Ending Balance

Construction in progress	 $	37,374,549	$	7,957,733	$ (5,033,653)  $	40,298,629 
Total capital assets, not being depreciated	37,374,549	7,957,733	(5,033,653)	40,298,629	

Capital assets, being depreciated Recreational buildings and facilities	

-	

8,920,972	

-	

8,920,972	
Right-to-use leased equipment	101,211	-		101,211	
Total capital assets, being depreciated	101,211	8,920,972	-	9,022,183	

Less accumulated depreciation for: Recreational buildings and facilities	

-	

297,366	

-	

297,366	
Right-to-use leased equipment	1,632	20,242	-	21,874	
Total accumulated depreciation	1,632	317,608	-	319,240	

Total capital assets, being depreciated, net	
99,579	
8,603,364	
-	
8,702,943	

Governmental activities capital assets	
$	37,474,128	
$ 16,561,097	
$ (5,033,653)	
$	49,001,572	

The infrastructure intended to serve the District has been estimated at a total cost of approximately
$101,126,006. A portion of the project costs was expected to be financed with the proceeds from the issuance of Bonds with the remainder to be funded by the Developer and conveyed to the District. Upon completion, certain improvements are to be conveyed to others for ownership and maintenance responsibilities. This happened during the current fiscal year as the District conveyed infrastructure costing
$5,033,653 to the County for ownership and maintenance responsibilities.

During the current fiscal year, the District acquired the Amenity Center from the Developer for $8,920,972 which will be repaid with future bond proceeds. This amount has been added to the Developer advance liability and was still outstanding as of the date of the report. Additionally, the District acquired pickleball improvements from the Developer for $308,373.

Depreciation expense was charged to the recreation function.

In the prior fiscal year, the District entered into a 60-month equipment lease agreement as a lessee. As a result, an initial lease liability and intangible right-to-use leased equipment asset was recorded in the amount of $101,211 related to the equipment lease. The lease liability was measured using a discount rate of 9.79%. The lease requires monthly payments of $2,175. The final payment is due on November 15, 2029. The equipment has a five-year estimated useful life. The value of the right-to-use asset as of the end of the current fiscal year was $101,211 and had accumulated amortization of $21,874.
The future principal and interest lease payments as of September 30, 2025, were as follows:

Year ending

	Governmental Activities	

  September 30:	Principal	Interest	Total	
2026	$	18,373	$	7,728	$	26,101	
2027	20,254	5,846	26,100	
2028	22,328	3,772	26,100	
2029	24,615	1,485	26,100	
2030	1,641	13	1,654	
	$	87,211	$	18,844	$	106,055	

NOTE 8 – LONG-TERM LIABILITIES

Series 2021
On January 20, 2021, the District issued $14,870,000 of Special Assessment Bonds, Series 2021 consisting of various Term Bonds with due dates from May 1, 2026 to May 1, 2051 and fixed interest rates ranging from 2.50% to 4.00%. The Bonds were issued to finance the acquisition and construction of certain improvements for the benefit of the District. Interest is to be paid semiannually on each May 1 and November 1. Principal on the Bonds is to be paid serially commencing May 1, 2022 through May 1, 2051.

The Series 2021 Bonds are subject to redemption at the option of the District prior to their maturity. The Bonds are subject to extraordinary mandatory redemption prior to their selected maturity in the manner determined by the Bond Registrar if certain events occurred as outlined in the Bond Indenture.

The Bond Indenture established a debt service reserve requirement as well as other 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 agrees to levy special assessments in annual amounts adequate to provide payment of debt service and to meet the reserve requirements. Upon satisfaction of certain conditions, a portion of the original reserve requirements will be released to the Developer for construction costs paid on behalf of the District; this did not occur during the current fiscal year. The District was in compliance with the requirements at September 30, 2025.
Series 2024
On January 31, 2024, the District issued $11,060,000 Special Assessment Bonds, Series 2024A-1 and
$24,120,000 Special Assessment Bonds, Series 2024A-2 (together the “Series 2024A Bonds”). The Series 2024A-1 bonds consist of various Term Bonds with due dates from May 1, 2031 to May 1, 2054 and fixed interest rates ranging from 4.70% to 5.85%. The Series 2024A-2 Bonds are due on May 1, 2036 with a fixed interest rate of 5.75%. The Series 2024A Bonds were issued to finance the acquisition and construction of certain improvements for the benefit of the District. Interest is to be paid semiannually on each May 1 and November 1. Principal on the Bonds is to be paid serially commencing May 1, 2025 through May 1, 2054.

The Series 2024A-1 Bonds are subject to redemption at the option of the District prior to their maturity. The Series 2024A-2 Bonds are not subject to optional redemption. Both Series are subject to extraordinary mandatory redemption prior to their selected maturity in the manner determined by the Bond Registrar if certain events occurred as outlined in the Bond Indenture. This occurred during the current fiscal year as the District collected assessments from lot closings and prepaid $2,485,000 of the Series 2024A-2 Bonds. See Note 14 - Subsequent Events for additional call amounts subsequent to the fiscal year end.

Series 2024 (Continued)
The Bond Indenture established a debt service reserve requirement as well as other 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 agrees to levy special assessments in annual amounts adequate to provide payments of debt service and to meet the reserve requirements. Upon satisfaction with certain conditions, a portion of the original reserve requirements will be released to the Developer for construction costs paid on behalf of the District; this did not occur during the current fiscal year. The District was in compliance with the requirements at September 30, 2025.
Developer Advance
It was anticipated that the Series 2021 proceeds would not be sufficient to complete the project. Therefore, the District entered into a construction completion agreement with the Developer whereby the Developer agreed to make available to the District the funds necessary to enable the District to proceed with the project. The District agreed to reimburse the Developer from proceeds of future bond issuances, should said future issuances occur. Additionally, during the current fiscal year, the District acquired the Amenity Center from the Developer which cost will also be repaid with future bond proceeds. The District will reimburse the Developer until full reimbursement is made or until all funds generated by the anticipated financing are exhausted. In total, the Developer advanced a total of $9,041,393 to the District in the current fiscal year.

Long-term debt activity
Changes in long-term liability activity for the fiscal year ended September 30, 2025 were as follows

Beginning
Balance	Additions	Reductions	Ending Balance

Due Within One Year

Governmental activities
Bonds payable:		
Series 2021	$  13,915,000	$	-	$	325,000	$	13,590,000	$	330,000	
Plus: original issue premium	119,225	-	4,427	114,798	-	
Series 2024	35,180,000	-	2,640,000	32,540,000	160,000	
Direct borrowings:						
Developer advances	11,973,617	9,041,393	-	21,015,010	-	
Leases Payable	101,211	-	14,000	87,211	18,373	
Total	$ 61,289,053	$	9,041,393	$	2,983,427	$	67,347,019	$	508,373	

At September 30, 2025, the scheduled debt service requirements on the long-term debt were as follows:

Year ending

	Governmental Activities	

  September 30:	Principal	Interest	Total	
2026	$	490,000	$	2,354,715	$	2,844,715	
2027	510,000	2,338,945	2,848,945	
2028	525,000	2,320,755	2,845,755	
2029	545,000	2,302,030	2,847,030	
2030	570,000	2,282,535	2,852,535	
2031-2035	3,195,000	11,066,718	14,261,718	
2036-2040	25,585,000	5,353,713	30,938,713	
2041-2045	4,925,000	3,163,685	8,088,685	
2046-2050	6,225,000	1,889,138	8,114,138	
2051-2054		3,560,000	446,288	4,006,288 	
	 $ 46,130,000  $ 33,518,522  $  79,648,522 	

The Developer owns a portion of land within the District; therefore, assessment revenues in the general and debt service funds include the assessments levied on those lots owned by the Developer. See Note 5 and 8 above for other Developer transactions. See Note 14 – Subsequent Events for additional Developer transactions subsequent to year end.

The District’s activity is dependent upon the continued involvement of the Developer, the loss of which could have a material adverse effect on the District’s operations.
NOTE 10 – INTERLOCAL AGREEMENT

In a prior year, the District and Ryals Creek Community Development District (“Ryals Creek CDD”) entered into an interlocal agreement to share in the cost to construct a certain system of infrastructure (the “improvements”) necessary for the full buildout of both Districts. Ryals Creek CDD is to construct the improvements, and the District is to pay Ryals Creek CDD for its portion of the cost of the improvements. The funding and construction of the improvements will occur in three phases. The District’s portion will not exceed
$6,108,006 for all three phases. Phase 1 was completed in a prior year and the District paid approximately
$1.9 million to Ryals Creek CDD for its portion of the costs to complete phase 1. Phases 2 and 3 have not yet begun. At the conclusion of the construction or installation of the improvements, each of the Districts will have ownership of the improvements lying within their respective geographic boundaries to the extent any improvements are not conveyed to others. The Districts also agreed to share in the costs to maintain the completed improvements. During the current fiscal year, the District contributed $54,712 toward the maintenance of phase 1 improvements.

NOTE 11 – MANAGEMENT COMPANY
The District has contracted with a management company to perform management advisory services, which include financial and accounting advisory 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 12 – COMMITMENTS AND CONTINGENCIES

As of September 30, 2025, the District had open contracts for various construction projects. The contracts totaled approximately $28.8 million, of which approximately $2.6 million was uncompleted at September 30, 2025.
NOTE 13 – 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. The District has obtained commercial insurance from independent third parties to mitigate the costs of these risks; coverage may not extend to all situations. There were no settled claims during the past three years.

Bond Payments
Subsequent to fiscal year end, the District prepaid a total of $5,730,000 of the Series 2024A-2 Bonds. The prepayments were considered extraordinary mandatory redemptions as outlined in the Bond Indenture.
Developer Transactions
Subsequent to fiscal year end, the District received assessments from the Developer totaling $3,357,604 which were mainly used to pay scheduled debt service payments.
Also subsequent to year end, the District reimbursed the Developer $382,563 of construction costs.

Reserve Release
Subsequent to the fiscal year, the District met the reserve release condition for the Series 2021 and released
$413,438 of the Series 2021 debt service reserve balance. This amount is expected to be used to reimburse the Developer.

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – GENERAL FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2025

Variance with Final Budget -
		Budgeted Amounts		Actual	Positive	
	Original	Final	Amounts	(Negative)	
REVENUES					
Assessments	$	1,240,992	$1,240,992	$	1,241,240	$	248	
Miscellaneous	-	-	9,000	9,000	
Total revenues	1,240,992	1,240,992	1,250,240	9,248	

EXPENDITURES
Current:
General government	

514,329	

509,773	

161,782	

347,991	
Maintenance and operations	219,450	219,450	364,223	(144,773)	
Recreation Debt service:
Principal	478,413

20,800	511,768

20,800	474,554

14,000	37,214

6,800	
Interest	8,000	8,000	7,751	249	
Total expenditures	1,240,992	1,269,791	1,022,310	247,481	

Excess (deficiency) of revenues over (under) expenditures	

-	

(28,799)	

227,930	

256,729	
OTHER FINANCING SOURCES (USES)
Transfer in (out)	
-	
-	
(46)	
(46)	
Total other financing sources (uses)	-	-	(46)	(46)	

Net change in fund balance	
 $	-	$  (28,799) 	
227,884	
 $	256,683 	
Fund balance - beginning				328,248 		
Fund balance - ending			 $	556,132 		

See notes to required supplementary information

NOTES TO REQUIRED SUPPLEMENTARY INFORMATION

The District is required to establish a budgetary system and an approved Annual Budget for the General Fund. The District’s budgeting process is based on estimates of cash receipts and cash expenditures which are approved by the Board. The budget approximates a basis consistent with accounting principles generally accepted in the United States of America (generally accepted accounting principles).

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. The general fund budget for the fiscal year ended September 30, 2025 was amended to increase appropriations by $28,799. Actual general fund expenditures did not exceed appropriations for the fiscal year ended September 30, 2025.

OTHER INFORMATION – DATA ELEMENTS REQUIRED BY FL STATUTE 218.39(3)(C)
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2025 UNAUDITED

Element	Comments
Number of District employees compensated in the last pay period of the District’s
fiscal year being reported.	0	
Number of independent contractors compensated to whom nonemployee compensation was paid in the last month of the District’s fiscal year being
reported.	
14	
Employee compensation	$0	
Independent contractor compensation	$162,924.45	
Construction projects to begin on or after October 1; ($65K)	$10,911,864.00	

Budget variance report	See the Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - General
Fund	
Ad Valorem taxes;	Not applicable	
		
Non ad valorem special assessments;		
Special assessment rate	Operations and maintenance - $1,408.58 - $1,813.98
Debt service - $1,343.67 - $2,149.88	
Special assessments collected	$8,241,550	
Outstanding Bonds:	See Note 8 for details	

1001 W. Yamato Road ▪ Suite 301 Boca Raton, Florida 33431
(561) 994-9299 ▪ (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
Boggy Branch Community Development District City of Jacksonville, 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 each major fund of Boggy Branch Community Development District, City of Jacksonville, Florida (“District”) as of and for the fiscal year ended September 30, 2025, 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 23, 2026.
Report on 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 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 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 or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.
Report on 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 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 23, 2026

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
Boggy Branch Community Development District City of Jacksonville, Florida
We have examined Boggy Branch Community Development District, City of Jacksonville, Florida’s (“District”) compliance with the requirements of Section 218.415, Florida Statutes, in accordance with Rule 10.556(10) of the Auditor General of the State of Florida during the fiscal year ended September 30, 2025. 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. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the District complied, in all material respects, with the specified requirements referenced in Section 218.415, Florida Statutes. An examination involves performing procedures to obtain evidence about whether the District complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. Our examination does not provide a legal determination on the District’s compliance with specified requirements.

We are required to be independent and to meet our other ethical responsibilities in accordance with relevant ethical requirements relating to the examination engagement.

In our opinion, the District complied, in all material respects, with the aforementioned requirements for the fiscal year ended September 30, 2025.
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 Boggy Branch Community Development District, City of Jacksonville, Florida and is not intended to be and should not be used by anyone other than these specified parties.

June 23, 2026

MANAGEMENT LETTER PURSUANT TO THE RULES OF THE AUDITOR GENERAL FOR THE STATE OF FLORIDA
To the Board of Supervisors
Boggy Branch Community Development District City of Jacksonville, Florida
Report on the Financial Statements

We have audited the accompanying basic financial statements of Boggy Branch Community Development District, City of Jacksonville, Florida ("District") as of and for the fiscal year ended September 30, 2025, and have issued our report thereon dated June 23, 2026.
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 Reporting Requirements

We have issued our Independent Auditor’s Report on Internal Control over Financial Reporting and on 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 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 June 23, 2026, should be considered in conjunction with this management letter.

Purpose of this Letter
The purpose of this letter is to comment on those matters 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 Representatives, the Florida Auditor General, Federal and other granting agencies, as applicable, management, and the Board of Supervisors of Boggy Branch Community Development District, City of Jacksonville, Florida and is not intended to be and should not be used by anyone other than these specified parties.

We wish to thank Boggy Branch Community Development District, City of Jacksonville, 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 23, 2026

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, 2024.
Any recommendations to improve the local governmental entity's financial management.

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, 2025.
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, 2025.

The name or official title and legal authority of the District are disclosed in the notes to the financial statements.
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. It is management’s responsibility to monitor 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.

Management has provided the specific information required by Section 218.39(3)(c) in the Other Information section of the financial statements on page 26.