naturewalk community development district

NatureWalk Community Development District

Board of Supervisors’ Special Meeting

May12, 2021

District Office: 120 Richard Jackson Blvd, Suite 220

Panama City Beach, Florida 32407850-334-9055

www.naturewalkcdd.org

www.naturewalkcdd.org

NATUREWALK COMMUNITY DEVELOPMENT DISTRICT AGENDA

Rizzetta & Company, Inc., 120 Richard Jackson Boulevard, Suite 220, Panama City Beach, FL 32407

District Board of Supervisors Jonette Coram Todd Egizii

Chairman Vice Chairman

Mike Grubbs Sandra Waisley

Assistant Secretary Assistant Secretary

James Sater Assistant Secretary

District Manager Kimberly O’Mera Rizzetta & Company, Inc.

District Counsel Carl Eldred Hopping Green & Sams, P.A.

District Engineer James Martelli, P.E. Innerlight Engineering Corporation

Bond Counsel Cynthia E. Wilhelm Nabors, Giblin & Nickerson, P.A.

All Cellular phones and pagers must be turned off.

The Audience Comment portion of the agenda is where individuals may make comments on matters that concern the District. Individuals are limited to a total of three (3) minutes to make comments during this time.

Pursuant to provisions of the Americans with Disabilities Act, any person requiring special accommodations to participate in this meeting/hearing/workshop is asked to advise the District Office at least forty-eight (48) hours before the meeting/hearing/workshop by contacting the District Manager at (850) 334-9055. If you are hearing or speech impaired, please contact the Florida Relay Service by dialing 7-1-1, or 1-800-955-8771 (TTY)1-800-955-8770 (Voice), who can aid you in contacting the District Office.

A person who decides to appeal any decision made at the meeting/hearing/workshop with respect to any matter considered at the meeting/hearing/workshop is advised that person will need a record of the proceedings and that accordingly, the person may need to ensure that a verbatim record of the proceedings is made including the testimony and evidence upon which the appeal is to be based.

NATUREWALK COMMUNITY DEVELOPMENT DISTRICT DISTRICT OFFICE • 120 RICHARD JACKSON BLVD., SUITE 220, PANAMA CITY BEACH, FL 32407

http://naturewalkcdd.org/

May 5, 2021

Board of SupervisorsNatureWalk CommunityDevelopment District AGENDA

Dear Board Members:

A special meeting of the Board of Supervisors of the NatureWalk Community Development District will be held on Wednesday, May 12, 2021 at 11:00 a.m. (Central Time) at the Walton County Coastal Branch Library, located at 437 Greenway Trail, Santa Rosa Beach, FL 32459. The following is the agenda for this meeting:

BOARD OF SUPERVISORS’ MEETING: 1. CALL TO ORDER/ROLL CALL 2. AUDIENCE COMMENTS 3. BUSINESS ADMINISTRATION

A. Consideration of Minutes of the Board of Supervisors’ Meeting Held on February 4, 2021……………………………………………………………Tab 1

B. Ratification of Operations and Maintenance Expenditures for January 2021 – March 2021…………………………………………………………Tab 2

4. BUSINESS ITEMS A. Presentation of Proposed Budget for Fiscal Year 2021/2022……………………Tab 3

1. Consideration of Resolution 2021-05, Approving Proposed Budget and setting a Public Hearing………………………………………..Tab 4

B. Presentation of Fiscal Year 2019-2020 Audit………………………………………Tab 5 C. Consideration of Request for Easement………………………………………...….Tab 6 D. Consideration of Request to Add Boulder on CDD Property……………………..Tab 7 E. Discussion of Fence Maintenance on Pond 12…………………………………….Tab 8 F. Consideration of Palm Tree Trimming………………………………………………Tab 9 G. Consideration of Holiday Lighting……………………………………………………Tab 10 H. Discussion Regarding Encroachment and Access Concerns

5. STAFF REPORTS A. District Counsel B. 1. Consideration of E-Verify Memo of Understanding/Requirements……….Tab 11 C. District Engineer D. District Manager

1. Presentation of Registered Voter Count…………………………………….Tab 12 6. SUPERVISOR REQUESTS 7. ADJOURNMENT

I look forward to seeing you at the meeting. In the meantime, if you have any questions, please do not hesitate to call me at 850-334-9055.

Sincerely, Kimberly O’Mera Kimberly O’Mera District Manager

http://naturewalkcdd.org/

NATUREWALK COMMUNITY DEVELOPMENT DISTRICT February 4, 2021

Minutes of Meeting Page 1

1 2 MINUTES OF MEETING 3 4 Each person who decides to appeal any decision made by the Board with respect 5 to any matter considered at the meeting is advised that the person may need to 6 ensure that a verbatim record of the proceedings is made, including the testimony 7 and evidence upon which such appeal is to be based. 8 9 NATUREWALK

10 COMMUNITY DEVLOPMENT DISTRICT 11 12 The special meeting of the Board of Supervisors of the NatureWalk Community 13 Development District was held on Thursday, February 4, 2021 at 3:30 p.m. (CST) at 14 the Walton County Coastal Branch Library, located at 437 Greenway Trail, Santa 15 Rosa Beach, FL 32459. 16 17 Present and constituting a quorum: 18 19 Jonette Coram Board Supervisor, Chairman 20 Todd Egizii Board Supervisor, Vice Chairman 21 Sandra Waisley Board Supervisor, Assistant Secretary 22 Mike Grubbs Board Supervisor, Assistant Secretary 23 24 Also present were: 25 26 Kimberly O’Mera District Manager, Rizzetta & Company, Inc. 27 Matt Huber Regional Manager, Rizzetta & Company, Inc. 28 (via speaker phone) 29 Carl Eldred District Counsel, Hopping Green & Sams, P.A. 30 (via speaker phone) 31 Jim Martelli, PE District Engineer, Innerlight Engineering Corporation 32 (via speaker phone) 33 Audience Present 34 35 36 FIRST ORDER OF BUSINESS Call to Order 37 38 Ms. O’Mera called the meeting to order at 3:30p.m. 39 40 SECOND ORDER O F BUSINESS Audience Comments 41 42 There were no audience comments. 43 44



45 THIRD ORDER OF BUSINESS Consideration of Minutes of the 46 Landowners’ Election and Regular 47 Board of Supervisors Meeting held 48 on November 5, 2020 49

On a Motion by Ms. Coram, seconded by Mr. Egizii, with all in favor, the Board of Supervisors approved Minutes of the Landowners’ Election and Regular Board of Supervisors’ Meeting held November 5, 2020 for NatureWalk Community Development District.

50 51 FOURTH ORDER O F BUSINESS Consideration of Minutes of the 52 Regular Board of Supervisors’ Meeting 53 Held on December 17, 2020 54

On a Motion by Ms. Coram, seconded by Mr. Egizii, with all in favor, the Board of Supervisors approved the minutes of the Regular Board of Supervisors’ Meeting held December 17, 2020 for NatureWalk Community Development District.

55 56 FIFTH ORDER OF BUSINESS Ratification of Operation and 57 Maintenance Expenditures for 58 November 2020 and December 2020 59 60 Ms. O’Mera presented and reviewed the Operation and Maintenance expenditures 61 for November and December 2020 with the Board, noting that December expenditures 62 included November and December monthly landscaping maintenance invoices, engineering 63 services, and pine s traw placement. 64 65

On a Motion by Mr. Egizii, seconded by Ms. Coram, with all in favor, the Board of Supervisors ratified the Operation and Maintenance expenditures for November 2020 in the a mount of $15,225.39 and December 2020 in t he amount of $81,393.64 for NatureWalk Community Development District.

66 67 SIXTH ORDER OF BUSINESS Public Hearing on Traffic Enforcement/ 68 Parking Policy 69 70 On a motion by Ms. Coram, seconded by Ms. Waisley, with all in favor, the Board of 71 Supervisors opened the P ublic Hearing on Traffic Enforcement/Parking Policy for 72 NatureWalk Community Development District. 73 74



75 SEVENTH ORDER OF BUSINESS Presentation of Resolution 76 2021-04, Adopting Traffic 77 Enforcement/ Parking P olicy 78 79 Mr. Eldred provided an overview of the Traffic Enforcement/Parking Policy for those 80 In attendance. 81 82 Ms. Waisley presented concerns about the lack of No Parking signs 83 around fire hydrants regarding loading and unloading. Discussion ensued. 84 85 Mr. Egizii provided suggestions to revise Definitions, Letter F, Recreational 86 Vehicles “golf carts” should be placed within Section D, Vehicles. 87 88 Phil Baughn, audience member, requested that The Gathering Place (25 Sage 89 Circle) be included for consideration within the parking policy and inquired about trailers. 90 91 Mr. Egizii inquired if the parking spaces within the Sage Circle could have a policy 92 applied to restrict overnight parking. Discussion ensued. Mr. Eldred stated the parking 93 spaces within 25 Sage Circle could be included as an exception to the policy. Discussion 94 ensued. No overnight parking within the designated parking areas within Sage Circle with 95 overnight hours of 11:00 pm – 6:00 am. 96 97 98 On a motion by Mr. Egizii, seconded by Mr. Grubbs, with all in favor, the Board closed 99 the Public Hearing for NatureWalk Community Development District.

100 101 EIGHTH ORDER OF BUSINESS Consideration of 2021-04, Adopting 102 Traffic Enforcement/Parking Policy 103

On a Motion by Mr. Egizii, seconded by Ms. Waisley, with all in favor, the Board of Supervisors adopted Resolution 2021-04, Adopting the Traffic Enforcement/Parking, as revised, for NatureWalk Community Development District.

104 105 106 107 108 109 110 111 112



113 NINTH ORDER OF BUSINESS Discussion of Flock License R eader 114 and Proactive NCIC/Local Sheriff 115 Lookup/Pro 116 Ms. O’Mera turned the discussion of the placement of the Flock License Reader 117 over to Ms. Coram. Ms. Coram presented that the HOA is seeking permission from the 118 District to place the reader on District Property. The Reader would be solar powered, 119 Mr. Egizii inquired if the District needed a possible land lease agreement. Mr. 120 Eldred recommended the District enter into a License Agreement to allow the HOA to 121 install and maintain the reader on District property. 122 Mr. Egizii inquired about mirroring the same dates of the License Agreement in 123 place with the HOA, two years. Mr. Eldred agreed that the District can create the 124 agreement with the same dates as the agreement in place with the HOA. 125 Mr. Secor (audience member) wanted to know the cost for this. The HOA is 126 bearing the cost of the equipment. Mr. Eldred stated that the License Agreement would 127 require that the HOA indemnifies the District for any damages or liability associated 128 with the reader. 129

On a motion by Ms. Waisley, seconded by Mr. Egizii, with all in favor, the Board approved the placement of the Flock License Reader and Proactive NCIC Local Sheriff Lookup/Pro on District Property, with an executed License Agreement prior to placement, for NatureWalk Community Development District.

130 131 132 TENTH ORDER OF BUSINESS Consideration of Vacant Supervisor 133 Seat 134 135 Ms. O’Mera stated she only received one formal letter of interest for vacant Seat 136 #4 from James Sater. Mr. Sater is a full-time resident of the District as presented to the 137 Board in the Agenda. Also present in the audience, Victoria Hughes, property owner of 138 large parcels within NatureWalk not yet developed. Ms. Hughes announced her interest 139 to join the Board of Supervisors for consideration. Mr. Eldred requested that the Board 140 allow him the opportunity to confirm the eligibility of Ms. Hughes. Mr. Eldred explained 141 that the Board has the opportunity to table this discussion to allow him to review the 142 eligibility of the additional interested party or consider the appointment of Mr. Sater as 143 presented. 144

On a motion by Mr. Grubbs, seconded by Ms. Waisley, by majority vote, with Mr. Egizii opposed, the Board appointed James Sater to the Vacant Supervisor Seat, #4, for NatureWalk Community Development District.

145 146 147 148



149 150 151 152 ELEVENTH ORDER OF BUSINESS Staff Reports 153 154 A. District Counsel 155 Mr. Eldred reminded the Board, as public officials, they are subject to Florida 156 Sunshine Law Requirements and that all District business and communications be 157 performed at a noticed m eeting. Mr. Eldred encouraged the Board to reach out to 158 him with any questions. 159 160 B. District Engineer 161 Mr. Martelli updated the Board that the regulatory signage should be installed 162 beginning next week. 163 164 C. District Manager 165 Ms. O’Mera reminded the Board that the next Board of Supervisors meeting is 166 May 6, 2021. Ms. O’Mera explained that upon review of the current financial status 167 of the District funds she had invited Green E arth the District Landscaper to provide 168 a presentation to consider a reduction of services in an effort to avoid a potential 169 deficit. 170 171 TWELFTH ORDER OF BUSINESS Landscaping Presentation – Green 172 Earth 173 174 Brian Henderson with Green Earth provided an overview of the proposed 175 reduction of services for consideration. 176 • Pruning services will move from 3 pruning services to 1. This is the heaviest 177 reduction/cost. CDD areas in front of the homes would still be maintained. 178 The ponds and the CDD entrance and the entrance to the Gathering Place 179 would not receive a trimming this season through September 30, 2021 and 180 through December 31, 2021. 181 • Replacing the reel mow (manicured mowing service) with a rotary mow. 182 • Reduced irrigation au dits from 12 to 10, would not audit during the winter. 183 • Eliminate rye grass install in October 2021. 184 • Insecticide applications would be reduced from 3 to 1. Although 2 should be 185 sufficient if a third is needed, it would be billed outside of the contract. 186 • Plant fertilizer applications would be reduced from 2 to 0. In the past, 187 flowering shrubs were fertilized but is not believed to be a necessary 188 expense this year and going a year or so without should not affect the health 189 of the plants. 190 • Proposed keeping turf fertilizer at 2 applications. 191 • Reducing the herbicide applications from 5 to 3. Any additional applications 192 would be billed additionally outside of the contract.



193 • Turf preemergent would have no adjustments as it takes 6 months to a year 194 to get that process established. 195 • Reducing bed preemergent from 2 applications to 0. 196 • Reduce the annual flower rotation at the entrance from 2 to 0 through 197 December 31, 2021. 198 • Proposed to reduce the cost of pine straw application by not placing pine 199 straw in strategic locations. This would save the District approximately 200 $8,000.00. 201 Ms. Coram inquired about the trimming of Flatwoods Forest Loop pond with the 202 fountain lacking trimming. Brandon advised it is being trimmed today. 203 General discussion en sued. 204 Ms. O’Mera recapped that this proposal of reduction of services is estimated to 205 save the District approximately $18,814.94, according to preliminary estimates from 206 Green Earth through the remainder of the Fiscal Year. 207 Mr. Grubbs asked for clarification of the cost for flowers at the front entrance, 208 being $9,000.00/year including 2 installations and costs associated with treating. 209 Mr. Huber, Regional Manager with Rizzetta and Company recommended the 210 CDD sending communications to the Association regarding the reduction of services, if 211 approved. 212

On a motion by Ms. Coram, seconded by Ms. Waisley, with all in favor, the Board approved the Reduction in Landscaping Services through December 2021, subject to a contract put into writing with review by Counsel, for NatureWalk Community Development District.

213 214 THIRTEENTH ORDER OF BUSINESS Supervisor Requests 215 216 Ms. Coram brought up the concerns with some residents exceeding their lot lines 217 after receiving approval from the H OA for the al terations. She expressed a need to s et policy 218 regarding, for example, those that have attached fences to a District owned fence as well 219 as altering D istrict property, possibly causing d amage. 220 Mr. Eldred offered two o ptions: 221 1. Regardless of whether the District establishes policy, to the extent that 222 anyone is altering District property without permission (structures, landscaping, fences, etc.), 223 the District can a sk them to remove those encroachments that at their cost as that would b e 224 trespass on District property. 225 2. Adopt a Formal policy that would spell out the requirements. 226 227 General discussion ensued regarding t he HOA Architectural Review Committee 228 process and District involvement. The Board agreed to add this to the upcoming May 6, 229 2021 meeting with t he Supervisors providing t heir feedback to Ms. O’Mera between meeting 230 dates to compile.

https://8,000.00


Minutes of MeetingPage 7

231 Ms. Coram agreed to be the point of contact to work with the HOA President, Mr. 232 Baughn to bring i n suggestions to t he Board pertaining considering a pr ocess to open 233 HOA/CDD communication. In the meantime, Ms. O’Mera will send individual applications 234 approved for work to b e performed on lots adjacent to District property to the Board of 235 Supervisors. 236 237 238 The Board of Supervisors will send their individual suggestions regarding the 239 HOA/ARC/District discussions to Ms. O’Mera. 240 Mr. Egizii requested a bid for the Boardwalk that runs between Flatwoods Forest 241 Loop and Sandgrass Boulevard into Phase 3, to look similar to the remaining boardwalks in 242 the District, for budgeting purposes. 243 Mr. Egizii requested a bid for the structural deficiencies noted in the recent bridge 244 inspections. 245 Ms. Waisley inquired about the r eason f or inspecting bridge 4 off Beargrass Way. Mr. 246 Eldred explained that the bridge was constructed by the District and is actively engaged in 247 the previously authorized work to survey the property pertaining to District property interests. 248 Ms. O’Mera offered that the inspections also offer a tool to the Supervisors to obtain bids to 249 plan for future needed repairs. 250 Mr. Egizii asked w hat the exact cost is for a budget workshop. Ms. O’Mera stated a 251 legal add t o notice the meeting is estimated at $500 in addition to Supervisor fees. 252

On a motion by Mr. Egizii, seconded by Ms. Waisley, with all in favor, the Board approved staff setting a Budget Workshop, for NatureWalk Community Development District.

253 254 Ms. Waisley inquired about the street light audits on the A ction Item List, being limited 255 funds, offered to monitor and r eport these herself. Mrs. O’Mera will reach out to the 256 County/City for any records of the p hotometrics plan showing where lights are located. 257 Mr. Eldred provided an update of the three p arcels previously owned by New 258 NatureWalk, LLC. They are now owned by David Starkey, Kara Starkey, and Victoria 259 Hughes. They filed a quiet title action against New NatureWalk, LLC regarding outstanding 260 assessments, to clear the title. The District has sought to intervene in that case, the hearing 261 is set for April 1, 2021. Mr. Eldred reminded the Supervisors, since there is pending litigation, 262 if any receive requests or communications regarding this matter or the parcels in question, 263 please direct them to him. 264 265 266 267 268 269 270 271


Minutes of MeetingPage 8

272 FOURTEENTH ORDER OF BUSINESS Adjournment 273

On a Motion by Ms. Coram, seconded by Ms. Waisley, with all in favor, the Board adjourned the meeting at 5:13 p.m. CDT, for the NatureWalk Community Development District.

274 275 276 277 278 Secretary/Assistant Secretary Chairman/ Vice Chairman

__________________________________


DISTRICT OFFICE · 120 RICHARD JACKSON BLVD · SUITE 220 · PANAMA CITY BEACH, FL 32407

Operations and Maintenance Expenditures January 2021

For Board Approval

Attached please find the check register listing the Operation and Maintenance expenditures paid from January 1, 2021 through January 31, 2021. This does not include expenditures previously approved by the Board.

The total items being presented: $76,113.86

Approval of Expenditures:

______Chairperson

______Vice Chairperson

______Assistant Secretary

https://76,113.86

NatureWalk Community Development District Paid Operation & Maintenance Expenditures

January 1, 2021 Through January 31, 2021

Vendor Name Check # Invoice Number Invoice Description Invoice Amount

Atlas Engineering & Consulting, 001810 011521 Deposit Bridge Assessment Retainer 25% 750.00 LLC Atlas Engineering & Consulting, 001816 156216-000078 CDD 20/21 2,250.00 LLC CHELCO 001803 Electric Summary CHELCO Electric Summary 12/2020 1,780.85

12/2020 ElectricWeaver, Inc. 001811 112020-1 Electric Repairs 11/20 270.00

ElectricWeaver, Inc. 001811 112020-2 Electric Repairs Emtrance Bridge 11/20 360.00

ElectricWeaver, Inc. 001811 112020-3 CDD 20/21 120.00

ElectricWeaver, Inc. 001811 112020-4 Electric Repair Entrance 11/20 150.00

GreenEarth Landscape 001804 71535 Irrigation Repair 12/20 145.00 Services LLC GreenEarth Landscape 001812 71742 Monthly Landscape Maintenance 01/21 8,682.00 Services LLC GreenEarth Landscape 001808 71820 Irrigation Repair 01/04 85.00 Services LLC GreenEarth Landscape 001812 71966 Erosion Repairs-Pond 1/21 2,940.00 Services LLC GreenEarth Landscape 001817 71977 Lighting Repair 01/21 75.00 Services LLC Hopping Green & Sams 001805 119330 General Legal Counsel 11/20 5,770.63

Hopping Green & Sams 001818 119756 General Legal Counsel 12/20 13,299.30

Newagetutors, LLC dba 001809 2278 Website ADA Compliance 01/21 300.00 VGlobaltech

https://13,299.30

https://5,770.63

https://2,940.00

https://8,682.00

https://1,780.85

https://2,250.00

Pat Shea's Concrete, Inc. 001814 5590 CDD 20/21 30,080.00

Rizzetta & Company, Inc. 001806 INV0000055462 District Management Fees 01/21 3,327.08

Rizzetta & Company, Inc. 001815 INV0000055596 Dissemination Agent Fee FY 20/21 5,000.00

Rizzetta Technology Services, 001807 INV0000006697 Email & Website Hosting Services 01/21 175.00 LLC The Lake Doctors, Inc. 001813 550482 Acct # 717754 Monthly Water Management 393.00

01/21 The Lake Doctors, Inc. 001813 551400 Acct #721546 Fountain Cleaning 01/21 161.00

Report Total $ 76,113.86

__________________________________



Operations and Maintenance Expenditures February 2021

For Board Approval

Attached please find the check register listing the Operation and Maintenance expenditures paid from February 1, 2021 through February 28, 2021. This does not include expenditures previously approved by the Board.



______Chairperson



https://16,580.54


February 1, 2021 Through February 28, 2021


CHELCO 001825 Electric Summary CHELCO Electric Summary 01/2021 $ 1,670.67 01/2021

GateHouse Media DBA 001828 2030768-0121 Acct# 2030768 Legal Advertising 01/2021 $ 446.79 Northwest Florida Papers GreenEarth Landscape 001820 72054 Irrigation Repair 01/21 $ 225.00 Services LLC GreenEarth Landscape 001829 72182 Monthly Landscape Maintenance 02/21 $ 8,682.00 Services LLC Jonette Anne Coram 001826 JC02042021 Board Of Supervisors Meeting 02/04/21 $ 200.00

Jonette Anne Coram 001819 JC121720 Board Of Supervisors Meeting 12/17/20 $ 200.00

Newagetutors, LLC dba 001824 2354 Website ADA Compliance 02/21 $ 300.00 VGlobaltech Rizzetta & Company, Inc. 001821 INV0000056000 District Management Fees 02/21 $ 3,327.08

Rizzetta Technology Services, 001822 INV0000006796 Email & Website Hosting Services 02/21 $ 175.00 LLC Sandra Lee Waisley 001831 SLW02042021 Board Of Supervisors Meeting 02/04/21 $ 200.00

Sandra Lee Waisley 001823 SW121720 Board Of Supervisors Meeting 12/17/20 $ 200.00

The Lake Doctors, Inc. 001830 556329 Acct # 717754 Monthly Water Management $ 393.00 02/21

https://3,327.08

https://8,682.00

https://1,670.67

The Lake Doctors, Inc. 001830 557206 Acct #721546 Fountain Cleaning 02/21 $ 161.00

Todd B. Egizii 001827 TE02042021 Board Of Supervisors Meeting 02/04/21 $ 200.00

Todd B. Egizii 001832 TE121720 Board Of Supervisors Meeting 12/17/2020 $ 200.00


__________________________________



Operations and Maintenance Expenditures March 2021

For Board Approval

Attached please find the check register listing the Operation and Maintenance expenditures paid from March 1, 2021 through March 31, 2021. This does not include expenditures previously approved by the Board.



______Chairperson



https://37,272.80


March 1, 2021 Through March 31, 2021


AAG Electric Motors & Pumps, 001839 Inc. CHELCO 001840

Coastal Seal Coating & Striping 001841 of NWF, Inc Emerald Coast Associates, Inc. 001844

21686A

Electric Summary 02/21 1555

62657

Miscellaneous Services 11/20

CHELCO Electric Summary 02/21

Signage 02/21

Land Surveying 03/21

2,039.16

1,564.70

10,890.00

2,000.00

GreenEarth Landscape Services LLC GreenEarth Landscape Services LLC GreenEarth Landscape Services LLC GreenEarth Landscape Services LLC GreenEarth Landscape Services LLC GreenEarth Landscape Services LLC Gulf Glo Banners & Signs

001833

001842

001837

001837

001837

001845

001846

72461

72648

72713

72714

72715

72841

53732

Irrigation Repair 01/28/21

Monthly Landscape Maintenance 03/21

Irrigation Repair #14152 02/21



Install Towing Signs 03/21

Street Signs 03/21

85.00

6,583.33

270.00

315.00

1,300.00

414.28

642.75

Hopping Green & Sams 001834 120303 General Legal Counsel 01/21 6,812.50

Newagetutors, LLC dba 001838 2431 Website ADA Compliance 03/21 300.00 VGlobaltech Rizzetta & Company, Inc. 001835 INV0000056967 District Management Fees 03/21 3,327.08

Rizzetta Technology Services, 001836 INV0000006895 Email & Website Hosting Services 03/21 175.00 LLC The Lake Doctors, Inc. 001843 562238 Acct # 717754 Monthly Water Management 393.00

03/21 The Lake Doctors, Inc. 001843 563184 Acct #721546 Fountain Cleaning 03/21 161.00


https://3,327.08


http://naturewalkcdd.org

Proposed Budget for Fiscal Year 2021-2022

Presented by: Rizzetta & Company, Inc.

120 Richard Jackson Blvd. Suite 220

Panama City Beach, FL 32407Phone: 850-334-9055

rizzetta.com

https://rizzetta.com

http://naturewalkcdd.org

TABLE OF CONTENTS

Page

General Fund Budget for Fiscal Year 2021-2022 1

Reserve Fund Budget for Fiscal Year 2021-2022 3

Debt Service Fund Budget for Fiscal Year 2021-2022 4

Assessment Charts for Fiscal Year 2021-2022 5

General Fund Budget Account Category Descriptions 7

Reserve Fund Budget Account Category Descriptions 14

Debt Service Fund Budget Account Category Descriptions 15

Proposed Budget NatureWalk Community Development District Community Development District

General Fund Fiscal Year 2021-2022

Chart of Accounts Classification

Actual YTD

through 03/31/21

Projected Annual Totals

2020/2021

Annual Budget for 2020/2021

Projected Budget

variance for 2020/2021

Budget for 2021/2022

Budget Increase

(Decrease) vs 2020/2021

Comments

1 2 REVENUES 3 4 Special Assessments 5 Tax Roll* $ 234,817 $ 303,036 $ 303,036 $ - $ 563,712 $ 260,676 Tax Roll allocations to be determined upon final roll certifications. 6 7 TOTAL REVENUES $ 234,817 $ 303,036 $ 303,036 $ - $ 563,712 $ 260,676 8 9 Balance Forward from Prior Year $ 75,924 $ 75,924 $ 75,924 $ - $ - $ (75,924) 10 11 TOTAL REVENUES AND BALANCE FORWARD $ 310,741 $ 378,960 $ 378,960 $ - $ 563,712 $ 184,752 12 13 *Allocation of assessments between the Tax Roll and Off Roll are estimates only and subject to change prior to certification. 14 15 EXPENDITURES - ADMINISTRATIVE 16 17 Legislative 18 Supervisor Fees $ 2,400 $ 4,800 $ 4,000 $ (800) $ 4,800 $ 800 Based on 6 meetings, 4 paid Supervisors. 19 Financial & Administrative 20 Administrative Services $ 2,250 $ 4,500 $ 4,500 $ - $ 4,500 $ - Maintained at same rate. 21 District Management $ 7,913 $ 15,826 $ 15,825 $ (1) $ 15,825 $ - Maintained at same rate. 22 District Engineer $ 21,820 $ 43,640 $ 7,500 $ (36,140) $ 32,000 $ 24,500 Average of 10 hours/month 23 Disclosure Report $ 5,000 $ 5,000 $ 5,000 $ - $ 5,000 $ - Maintained at same rate. 24 Trustees Fees $ - $ 7,000 $ 7,000 $ - $ 7,000 $ - Maintained at same rate. 25 Assessment Roll $ 5,000 $ 5,000 $ 5,000 $ - $ 5,000 $ - Maintained at same rate. 26 Financial & Revenue Collections $ 1,800 $ 3,600 $ 3,600 $ - $ 3,600 $ - Maintained at same rate. 27 Accounting Services $ 8,000 $ 16,000 $ 16,000 $ - $ 16,000 $ - Maintained at same rate. 28 Auditing Services $ - $ 3,100 $ 3,100 $ - $ 3,100 $ - Per agreement. 29 Arbitrage Rebate Calculation $ - $ 600 $ 600 $ - $ 450 $ (150) Per agreement. Amtec $450 annually. 30 Public Officials Liability Insurance $ 2,421 $ 2,421 $ 2,537 $ 116 $ 2,663 $ 126 Based on renewal projections provided by Egis. 31 Legal Advertising $ 1,186 $ 2,372 $ 2,600 $ 228 $ 2,600 $ - Increased based on projections. 32 Dues, Licenses & Fees $ 175 $ 175 $ 175 $ - $ 175 $ - Payable to State annually. 33 Website Hosting, Maintenance, Backup (and $ 2,550 $ 5,700 $ 5,700 $ - $ 5,700 $ - . 34 Legal Counsel 35 District Counsel $ 43,497 $ 62,500 $ 18,000 $ (44,500) $ 40,000 $ 22,000 Increased based on projections. 36 37 Administrative Subtotal $ 104,012 $ 182,234 $ 101,137 $ (81,097) $ 148,413 $ 47,276 38 39 EXPENDITURES - FIELD OPERATIONS 40 41 Electric Utility Services


General Fund Fiscal Year 2021-2022


Actual YTD

through 03/31/21


2020/2021


Projected Budget

variance for 2020/2021


Budget Increase

(Decrease) vs 2020/2021

Comments

42 Utility Services $ 10,601 $ 21,202 $ 19,000 $ (2,202) $ 21,600 $ 2,600 Increased based on projections. 43 Stormwater Control 44 Aquatic Maintenance $ 2,358 $ 5,100 $ 5,100 $ - $ 7,332 $ 2,232 Based on proposed increase to add ponds. 45 Fountain Service Repairs & Maintenance $ 966 $ 1,932 $ 1,932 $ - $ 1,932 $ - Maintained at same rate. 46 Stormwater Pond Bank Maintenance $ - $ - $ - $ - $ 5,000 $ 5,000 Suggested added line item for pond bank repairs. 47 Stormwater System Maintenance $ 4,979 $ 9,958 $ 1,000 $ (8,958) $ 1,000 $ - Maintained at same rate. 48 General Liability Insurance $ 2,823 $ 2,823 $ 2,958 $ 135 $ 3,105 $ 147 Based on renewal projections provided by Egis. 49 Property Insurance $ 699 $ 699 $ 699 $ - $ 20,000 $ 19,301 Increased to add property coverage. Monitor prior to final. 50 Rust Prevention/Misc. Expense $ - $ 1,700 $ 1,700 $ - $ 1,700 $ - Maintained at same rate. 51 Landscape Maintenance $ 49,993 $ 99,986 $ 104,184 $ 4,198 $ 105,000 $ 816 Increased due to projections. 52 Ornamental Lighting & Maintenance $ - $ 1,243 $ 1,000 $ (243) $ 2,000 $ 1,000 Increase per known projects. 53 Tree Trimming Services $ - $ 1,500 $ 1,700 $ 200 $ 6,700 $ 5,000 Increased per projections. 54 Irrigation Repairs $ 12,349 $ 16,500 $ 12,000 $ (4,500) $ 12,000 $ - Maintained at same rate. 55 Landscape Replacement Plants, Shrubs, Trees $ 4,295 $ 8,590 $ 8,000 $ (590) $ 10,000 $ 2,000 Increased to replace declining Bermuda grass. 56 Annual Mulching $ 28,200 $ 56,400 $ 55,000 $ (1,400) $ 61,230 $ 6,230 Increased based on projections. 57 Fence Repair/Replacement $ - $ 5,000 $ 5,000 $ - $ 5,000 $ - Maintained at same rate. 58 Road & Street Facilities 59 Street Light Decorative Light Maintenance $ 1,575 $ 6,000 $ 5,000 $ (1,000) $ 6,000 $ 1,000 Increased to account for necessary repairs. 60 Sidewalk Repair & Maintenance $ - $ 2,150 $ 2,750 $ 600 $ 2,500 $ (250) Maintained at same rate. 61 Street Sign Repair & Replacement $ 11,947 $ 11,947 $ 800 $ (11,147) $ 38,000 $ 37,200 Increased per capital project. 62 Roadway Repair & Maintenance $ 30,080 $ 60,160 $ 30,000 $ (30,160) $ 12,500 $ (17,500) Decreased due to projections. 63 Parks & Recreation 64 Boardwalk and Bridge Maintenance $ 6,882 $ 13,764 $ 20,000 $ 6,236 $ 90,000 $ 70,000 Increased due to projected repairs. 65 Contingency 66 Miscellaneous Contingency $ - $ - $ - $ - $ 2,700 $ 2,700 Allocation for unforseen expenses. 67 68 Field Operations Subtotal $ 167,747 $ 326,654 $ 277,823 $ (48,831) $ 415,299 $ 137,476 69 70 Contingency for County TRIM Notice 71 72 TOTAL EXPENDITURES $ 271,759 $ 508,888 $ 378,960 $ (129,928) $ 563,712 $ 184,752 73 74 EXCESS OF REVENUES OVER $ 38,982 $ (129,928) $ - $ (129,928) $ - $ -75


Reserve Fund Fiscal Year 2021-2022


Actual YTD

through 03/31/21


2020/2021


Projected Budget

variance for

2020/2021


Budget Increase (Decrease) vs 2020/2021 Comments

1 2 REVENUES 3 4 Special Assessments 5 Tax Roll* $ - $ - $ - $ - $ 50,000 $ 50,000 6 7 TOTAL REVENUES $ - $ - $ - $ - $ 50,000 $ 50,000 8 9 Balance Forward from Prior Year $ - $ - $ - $ - $ - $ -10 11 TOTAL REVENUES AND BALANCE $ - $ - $ - $ - $ 50,000 $ 50,000 12 13 *Allocation of assessments between the Tax Roll and Off Roll are estimates only and subject to change prior to 14 15 EXPENDITURES 16 17 Contingency 18 Capital Reserves $ - $ - $ - $ 50,000 $ 50,000 19 20 TOTAL EXPENDITURES $ - $ - $ - $ - $ 50,000 $ 50,000 21 22 EXCESS OF REVENUES OVER $ - $ - $ - $ - $ - $ -23

NatureWalk Community Development District Debt Service

Fiscal Year 2021/2022

4

Chart of Accounts Classification Series 2007A Budget for 2021/2022

REVENUES Special Assessments Net Special Assessments (1) $ 413,704.82 $ 413,704.82

TOTAL REVENUES $ 413,704.82 $ 413,704.82

EXPENDITURES Administrative Financial & Administrative Debt Service Obligation $ 413,704.82 $ 413,704.82 Administrative Subtotal $ 413,704.82 $ 413,704.82

TOTAL EXPENDITURES $ 413,704.82 $ 413,704.82

EXCESS OF REVENUES OVER EXPENDITURES $0.00 $0.00

Collection Costs (2%) and Early Payment Discount (4%) applicable to the county: 6.0%

Gross assessments $ 440,111.51

Notes: Tax Roll Collection Costs (2%) and Early Payment Discount (4%) for Walton County is 6.0% of Tax Roll. Budgeted net of tax roll assessments. See Assessment Table.

(1) Maximum Annual Debt Service less Prepaid Assessments received.

https://440,111.51

6% $667,078.26

Nature Walk Community Development District

FISCAL YEAR 2021/2022 O&M & DEBT SERVICE ASSESSMENT SCHEDULE

5

2021/2022 O&M Budget $613,712.00 Collection Cost @ 2% $13,057.70

Early Payment Discount @ 4% $26,115.40 2021/2022 Total: $652,885.11

2020/2021 O&M Budget $303,036.00 2021/2022 O&M Budget $613,712.00

Total Difference: $310,676.00

PER UNIT ANNUAL ASSESSMENT Proposed Increase / Decrease 2020/2021 2021/2022 $ %

Debt Service - Single Family 35' $1,138.28 $1,138.28 $0.00 0.00% Operations/Maintenance - Single Family 35' $598.77 $1,212.64 $613.87 102.52% Total $1,737.05 $2,350.92 $613.87 35.34%

Debt Service - Single Family 45' $1,463.51 $1,463.51 $0.00 0.00% Operations/Maintenance - Single Family 45' $772.42 $1,564.30 $791.88 102.52% Total $2,235.93 $3,027.81 $791.88 35.42%

Debt Service - Office Building (1) $0.00 $0.00 $0.00 0.00% Operations/Maintenance - Office Building $2,197.49 $4,450.39 $2,252.90 102.52% Total $2,197.49 $4,450.39 $2,252.90 102.52%

Debt Service - Multifamily $978.92 $978.92 $0.00 0.00% Operations/Maintenance - Multifamily $514.94 $1,042.87 $527.93 102.52% Total $1,493.86 $2,021.79 $527.93 35.34%

(1) Prepaid Debt Service Assessment

https://2,021.79

https://1,493.86

https://1,042.87

https://2,252.90

https://4,450.39

https://2,197.49

https://2,252.90

https://4,450.39

https://2,197.49

https://3,027.81

https://2,235.93

https://1,564.30

https://1,463.51

https://1,463.51

https://2,350.92

https://1,737.05

https://1,212.64

https://1,138.28

https://1,138.28

https://310,676.00

https://613,712.00

https://303,036.00

https://652,885.11

https://26,115.40

https://13,057.70

https://613,712.00

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6

NATURE WALK COMMUNITY DEVELOPMENT DISTRICT

FISCAL YEAR 2021/2022 O&M & DEBT SERVICE ASSESSMENT SCHEDULE

TOTAL O&M BUDGET $613,712.00 COLLECTION COSTS @ 2.0% $13,057.70 EARLY PAYMENT DISCOUNT@ 4.0% $26,115.40 TOTAL O&M ASSESSMENT $652,885.11

UNITS ASSESSED SERIES 2007A ALLOCATION OF O&M ASSESSMENT

DEBT TOTAL % TOTAL TOTAL LOT SIZE O&M SERVICE (1) (2) EAU FACTOR EAU's EAU's O&M BUDGET

Platted Parcels SINGLE FAMILY 35 143 83 1.00 143.00 26.56% $173,407.45 SINGLE FAMILY 45 153 85 1.29 197.37 36.66% $239,338.66 OFFICE BUILDING 1 0 3.67 3.67 0.68% $4,450.39

Total Platted 297 168 344.04 63.90% $417,196.49

MULTIFAMILY 226 226 0.86 194.36 36.10% $235,688.61

Total Unplatted 226 226 194.36 36.10% $235,688.61

Total Community 523 394 538.40 100.00% $652,885.11

LESS: Walton County Collection Costs (2%) and Early Payment Discount Costs (4%) ($39,173.11)

Net Revenue to be Collected $613,712.00

(1) Reflects 129 (one hundred twenty nine) prepayments.

(2) Reflects the number of total lots with Series 2007A debt outstanding.

PER LOT ANNUAL ASSESSMENT

O&M 2007A DEBT SERVICE (3) TOTAL (4)

$1,212.64 $1,564.30 $4,450.39

$1,138.28 $1,463.51

$0.00

$2,350.92 $3,027.81 $4,450.39

$1,042.87 $978.92 $2,021.79

(3) Annual debt service assessment per lot adopted in connection with the Series 2007A bond issue. Annual assessment includes principal, interest, Walton County collection costs and early payment discount costs.

(4) Annual assessment that will appear on November 2021 Walton County property tax bill. Amount shown includes all applicable collection costs. Property owner is eligible for a discount of up to 4% if paid early.

https://613,712.00

https://39,173.11

https://652,885.11

https://235,688.61

https://235,688.61

https://417,196.49

GENERAL FUND BUDGET ACCOUNT CATEGORY DESCRIPTION

7

The General Fund Budget Account Category Descriptions are subject to change at any time depending on its application to the District. Please note, not all General Fund Budget Account Category Descriptions are applicable to the District indicated above. Uses of the descriptions contained herein are intended for general reference.

REVENUES:

Interest Earnings: The District may earn interest on its monies in the various operating accounts.

Tax Roll: The District levies Non-Ad Valorem Special Assessments on all of the assessable property within the District to pay for operating expenditures incurred during the Fiscal Year. The assessments may be collected in two ways. The first is by placing them on the County’s Tax Roll, to be collected with the County’s Annual Property Tax Billing. This method is only available to land properly platted within the time limits prescribed by the County.

Off Roll: For lands not on the tax roll and that is by way of a direct bill from the District to the appropriate property owner.

Developer Contributions: The District may enter into a funding agreement and receive certain prescribed dollars from the Developer to off-set expenditures of the District.

Event Rental: The District may receive monies for event rentals for such things as weddings, birthday parties, etc.

Miscellaneous Revenues: The District may receive monies for the sale or provision of electronic access cards, entry decals etc.

Facilities Rentals: The District may receive monies for the rental of certain facilities by outside sources, for such items as office space, snack bar/restaurants etc.

EXPENDITURES – ADMINISTRATIVE:

Supervisor Fees: The District may compensate its supervisors within the appropriate statutory limits of $200.00 maximum per meeting within an annual cap of $4,800.00 per supervisor.

https://4,800.00

8

Administrative Services: The District will incur expenditures for the day to today operation of District matters. These services include support for the District Management function, recording and preparation of meeting minutes, records retention and maintenance in accordance with Chapter 119, Florida Statutes, and the District’s adopted Rules of Procedure, preparation and delivery of agenda, overnight deliveries, facsimiles and phone calls.

District Management: The District as required by statute, will contract with a firm to provide for management and administration of the District’s day to day needs. These services include the conducting of board meetings, workshops, overall administration of District functions, all required state and local filings, preparation of annual budget, purchasing, risk management, preparing various resolutions and all other secretarial duties requested by the District throughout the year is also reflected in this amount.

District Engineer: The District’s engineer provides general engineering services to the District. Among these services are attendance at and preparation for monthly board meetings, review of construction invoices and all other engineering services requested by the district throughout the year.

Disclosure Report: The District is required to file quarterly and annual disclosure reports, as required in the District’s Trust Indenture, with the specified repositories. This is contracted out to a third party in compliance with the Trust Indenture.

Trustee’s Fees: The District will incur annual trustee’s fees upon the issuance of bonds for the oversight of the various accounts relating to the bond issues.

Assessment Roll: The District will contract with a firm to maintain the assessment roll and annually levy a Non-Ad Valorem assessment for operating and debt service expenses.

Financial & Revenue Collections: Services include all functions necessary for the timely billing and collection and reporting of District assessments in order to ensure adequate funds to meet the District’s debt service and operations and maintenance obligations. These services include, but are not limited to, assessment roll preparation and certification, direct billings and funding request processing as well as responding to property owner questions regarding District assessments. This line item also includes the fees incurred for a Collection Agent to collect the funds for the principal and interest payment for its short-term bond issues and any other bond related collection needs. These funds are collected as prescribed in the Trust Indenture. The Collection Agent also provides for the release of liens on property after the full collection of bond debt levied on particular properties.

Accounting Services: Services include the preparation and delivery of the District’s financial statements in accordance with Governmental Accounting Standards, accounts payable and accounts receivable functions, asset tracking, investment tracking, capital program administration and requisition processing, filing of annual reports required by the State of Florida and monitoring of trust account activity.

9

Auditing Services: The District is required annually to conduct an audit of its financial records by an Independent Certified Public Accounting firm, once it reaches certain revenue and expenditure levels, or has issued bonds and incurred debt.

Arbitrage Rebate Calculation: The District is required to calculate the interest earned from bond proceeds each year pursuant to the Internal Revenue Code of 1986. The Rebate Analyst is required to verify that the District has not received earnings higher than the yield of the bonds.

Travel: Each Board Supervisor and the District Staff are entitled to reimbursement for travel expenses per Florida Statutes 190.006(8).

Public Officials Liability Insurance: The District will incur expenditures for public officials’ liability insurance for the Board and Staff.

Legal Advertising: The District will incur expenditures related to legal advertising. The items for which the District will advertise include, but are not limited to meeting schedules, special meeting notices, and public hearings, bidding etc. for the District based on statutory guidelines

Bank Fees: The District will incur bank service charges during the year.

Dues, Licenses & Fees: The District is required to pay an annual fee to the Department of Economic Opportunity, along with other items which may require licenses or permits, etc.

Miscellaneous Fees: The District could incur miscellaneous throughout the year, which may not fit into any standard categories.

Website Hosting, Maintenance and Email: The District may incur fees as they relate to the development and ongoing maintenance of its own website along with possible email services if requested.

District Counsel: The District’s legal counsel provides general legal services to the District. Among these services are attendance at and preparation for monthly board meetings, review of operating and maintenance contracts and all other legal services requested by the district throughout the year.

EXPENDITURES - FIELD OPERATIONS:

Deputy Services: The District may wish to contract with the local police agency to provide security for the District.

10

Security Services and Patrols: The District may wish to contract with a private company to provide security for the District.

Electric Utility Services: The District will incur electric utility expenditures for general purposes such as irrigation timers, lift station pumps, fountains, etc.

Streetlights: The District may have expenditures relating to streetlights throughout the community. These may be restricted to main arterial roads or in some cases to all streetlights within the District’s boundaries. Utility - Recreation Facility: The District may budget separately for its recreation and or amenity electric separately.

Gas Utility Services: The District may incur gas utility expenditures related to district operations at its facilities such as pool heat etc.

Garbage - Recreation Facility: The District will incur expenditures related to the removal of garbage and solid waste.

Solid Waste Assessment Fee: The District may have an assessment levied by another local government for solid waste, etc.

Water-Sewer Utility Services: The District will incur water/sewer utility expenditures related to district operations.

Utility - Reclaimed: The District may incur expenses related to the use of reclaimed water for irrigation.

Aquatic Maintenance: Expenses related to the care and maintenance of the lakes and ponds for the control of nuisance plant and algae species.

Fountain Service Repairs & Maintenance: The District may incur expenses related to maintaining the fountains within throughout the Parks & Recreational areas

Lake/Pond Bank Maintenance: The District may incur expenditures to maintain lake banks, etc. for the ponds and lakes within the District’s boundaries, along with planting of beneficial aquatic plants, stocking of fish, mowing and landscaping of the banks as the District determines necessary.

Wetland Monitoring & Maintenance: The District may be required to provide for certain types of monitoring and maintenance activities for various wetlands and waterways by other governmental entities.

Mitigation Area Monitoring & Maintenance: The District may be required to provide for certain types of monitoring and maintenance activities for various mitigation areas by other governmental entities.

11

Aquatic Plant Replacement: The expenses related to replacing beneficial aquatic plants, which may or may not have been required by other governmental entities.

General Liability Insurance: The District will incur fees to insure items owned by the District for its general liability needs

Property Insurance: The District will incur fees to insure items owned by the District for its property needs

Entry and Walls Maintenance: The District will incur expenditures to maintain the entry monuments and the fencing. Landscape Maintenance: The District will incur expenditures to maintain the rights-of-way, median strips, recreational facilities including pond banks, entryways, and similar planting areas within the District. These services include but are not limited to monthly landscape maintenance, fertilizer, pesticides, annuals, mulch, and irrigation repairs.

Irrigation Maintenance: The District will incur expenditures related to the maintenance of the irrigation systems.

Irrigation Repairs: The District will incur expenditures related to repairs of the irrigation systems.

Landscape Replacement: Expenditures related to replacement of turf, trees, shrubs etc.

Field Services: The District may contract for field management services to provide landscape maintenance oversight.

Miscellaneous Fees: The District may incur miscellaneous expenses that do not readily fit into defined categories in field operations.

Gate Phone: The District will incur telephone expenses if the District has gates that are to be opened and closed.

Street/Parking Lot Sweeping: The District may incur expenses related to street sweeping for roadways it owns or are owned by another governmental entity, for which it elects to maintain.

Gate Facility Maintenance: Expenses related to the ongoing repairs and maintenance of gates owned by the District if any.

Sidewalk Repair & Maintenance: Expenses related to sidewalks located in the right of way of streets the District may own if any.

Roadway Repair & Maintenance: Expenses related to the repair and maintenance of roadways owned by the District if any.

12

Employees - Salaries: The District may incur expenses for employees/staff members needed for the recreational facilities such as Clubhouse Staff.

Employees - P/R Taxes: This is the employer’s portion of employment taxes such as FICA etc.

Employee - Workers’ Comp: Fees related to obtaining workers compensation insurance.

Management Contract: The District may contract with a firm to provide for the oversight of its recreation facilities.

Maintenance & Repair: The District may incur expenses to maintain its recreation facilities.

Facility Supplies: The District may have facilities that required various supplies to operate.

Gate Maintenance & Repairs: Any ongoing gate repairs and maintenance would be included in this line item.

Telephone, Fax, Internet: The District may incur telephone, fax and internet expenses related to the recreational facilities.

Office Supplies: The District may have an office in its facilities which require various office related supplies.

Clubhouse - Facility Janitorial Service: Expenses related to the cleaning of the facility and related supplies.

Pool Service Contract: Expenses related to the maintenance of swimming pools and other water features.

Pool Repairs: Expenses related to the repair of swimming pools and other water features.

Security System Monitoring & Maintenance: The District may wish to install a security system for the clubhouse

Clubhouse Miscellaneous Expense: Expenses which may not fit into a defined category in this section of the budget

Athletic/Park Court/Field Repairs: Expense related to any facilities such as tennis, basketball etc.

Trail/Bike Path Maintenance: Expenses related to various types of trail or pathway systems the District may own, from hard surface to natural surfaces.

13

Special Events: Expenses related to functions such as holiday events for the public enjoyment

Miscellaneous Fees: Monies collected and allocated for fees that the District could incur throughout the year, which may not fit into any standard categories.

Miscellaneous Contingency: Monies collected and allocated for expenses that the District could incur throughout the year, which may not fit into any standard categories.

Capital Outlay: Monies collected and allocated for various projects as they relate to public improvements.

RESERVE FUND BUDGET ACCOUNT CATEGORY DESCRIPTION

14

The Reserve Fund Budget Account Category Descriptions are subject to change at any time depending on its application to the District. Please note, not all Reserve Fund Budget Account Category Descriptions are applicable to the District indicated above. Uses of the descriptions contained herein are intended for general reference.

REVENUES:

Tax Roll: The District levies Non-Ad Valorem Special Assessments on all of the assessable property within the District to pay for operating expenditures incurred during the Fiscal Year. The assessments may be collected in two ways. The first is by placing them on the County’s Tax Roll, to be collected with the County’s Annual Property Tax Billing. This method is only available to land properly platted within the time limits prescribed by the County.

Off Roll: For lands not on the tax roll and that is by way of a direct bill from the District to the appropriate property owner.

Developer Contributions: The District may enter into a funding agreement and receive certain prescribed dollars from the Developer to off-set expenditures of the District.

Miscellaneous Revenues: The District may receive monies for the sale or provision of electronic access cards, entry decals etc.

EXPENDITURES:

Capital Reserve: Monies collected and allocated for the future repair and replacement of various capital improvements such as club facilities, swimming pools, athletic courts, roads, etc.

Capital Outlay: Monies collected and allocated for various projects as they relate to public improvements.

DEBT SERVICE FUND BUDGET ACCOUNT CATEGORY DESCRIPTION

15

The Debt Service Fund Budget Account Category Descriptions are subject to change at any time depending on its application to the District. Please note, not all Debt Service Fund Budget Account Category Descriptions are applicable to the District indicated above. Uses of the descriptions contained herein are intended for general reference.

REVENUES:

Special Assessments: The District may levy special assessments to repay the debt incurred by the sale of bonds to raise working capital for certain public improvements. The assessments may be collected in the same fashion as described in the Operations and Maintenance Assessments.

EXPENDITURES – ADMINISTRATIVE:

Bank Fees: The District may incur bank service charges during the year.

Debt Service Obligation: This would a combination of the principal and interest payment to satisfy the annual repayment of the bond issue debt.

RESOLUTION 2021-05

A RESOLUTION OF THE BOARD OF SUPERVISORS OF THE NATUREWALK COMMUNITY DEVELOPMENT DISTRICT APPROVING PROPOSED BUDGETS FOR FISCAL YEAR 2021/2022 AND SETTING A PUBLIC HEARING THEREON PURSUANT TO FLORIDA LAW; ADDRESSING TRANSMITTAL, POSTING AND PUBLICATION REQUIREMENTS; ADDRESSING SEVERABILITY; AND PROVIDING AN EFFECTIVE DATE.

WHEREAS, the District Manager has heretofore prepared and submitted to the Board of Supervisors (“Board”) of the NatureWalk Community Development District (“District”) prior to June 15, 2021, proposed budgets (“Proposed Budget”) for the fiscal year beginning October 1, 2021 and ending September 30, 2022 (“Fiscal Year 2021/2022”); and

WHEREAS, the Board has considered the Proposed Budget and desires to set the required public hearing thereon.

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

1. PROPOSED BUDGET APPROVED. The Proposed Budget prepared by the District Manager for Fiscal Year 2021/2022 attached hereto as Exhibit A is hereby approved as the basis for conducting a public hearing to adopt said Proposed Budget.

2. SETTING A PUBLIC HEARING. A public hearing on said approved Proposed Budget is hereby declared and set for the following date, hour and location:

DATE: August 05, 2021_________ __

HOUR: 3:30 p.m. (Central)_______________

LOCATION: Walton County Coastal Branch Library 437 Greenway Trail _______________ Santa Rosa Beach, FL 32459 ________

3. TRANSMITTAL OF PROPOSED BUDGET TO LOCAL GENERAL PURPOSE GOVERNMENTS. The District Manager is hereby directed to submit a copy of the Proposed Budget to Walton County at least 60 days prior to the hearing set above.

4. POSTING OF PROPOSED BUDGET. In accordance with Section 189.016, Florida Statutes, the District’s Secretary is further directed to post the approved Proposed Budget on the District’s website at least two days before the budget hearing date as set forth in Section 2, and shall remain on the website for at least 45 days.

5. PUBLICATION OF NOTICE. Notice of this public hearing shall be published in the manner prescribed in Florida law.

6. 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.

7. EFFECTIVE DATE. This Resolution shall take effect immediately upon adoption.

PASSED AND ADOPTED THIS ____ DAY OF ______________, 2021.

ATTEST: NATUREWALK COMMUNITY DEVELOPMENT DISTRICT

_____________________________ By:___________________________ Secretary Its:____________________________

NatureWalk CommunityDevelopment District

ANNUAL FINANCIAL REPORT

September 30, 2020


ANNUAL FINANCIAL REPORT

Fiscal Year Ended September 30, 2020

TABLE OF CONTENTS

Page Number

REPORT OF INDEPENDENT AUDITORS 1-3

MANAGEMENT’S DISCUSSION AND ANALYSIS 4-9

BASIC FINANCIAL STATEMENTS: Government-wide Financial Statements

Statement of Net Position Statement of Activities

Fund Financial Statements: Balance Sheet – Governmental Funds Reconciliation of Total Governmental Fund Balances

Position of Governmental Activities Statement of Revenues, Expenditures and Changes i

Balances – Governmental Funds Reconciliation of the Statement of Revenues, Expenditu

Changes in Fund Balances of Governmental FundsStatement of Activities

Statement of Revenues, Expenditures and Changes iBalances – Budget and Actual – General Fund

to Net

n Fund

res and to the

n Fund

10 11

12

13

14

15

16

Notes to Financial Statements 17-28

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 29-30

MANAGEMENT LETTER 31-33

INDEPENDENT ACCOUNTANT’S REPORT/COMPLIANCE WITH SECTION 218.415, FLORIDA STATUTES 34

Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL

600 Citrus Avenue Suite 200 Fort Pierce, Florida 34950

7721461-6120 II 461-1155 FAX: 7721468-9278

Member AICPA

Fort Pierce I Stuart

Member AICPA Division for CPA Firms Private Companies practice Section

Member FICPA

REPORT OF INDEPENDENT AUDITORS

To the Board of Supervisors NatureWalk Community Development District Walton County, Florida

Report on the Financial Statements

We have audited the accompanying financial statements of NatureWalk Community Development District as of and for the year ended September 30, 2020, and the related notes to 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 an opinion 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. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting 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 opinion.

- 1 -

r ... ~rp Berger, Toombs, Elam, -OJ Gaines & Frank

Certified PublicAccountants Pl

To the Board of Supervisors NatureWalk Community Development District

Basis for Adverse Opinion on the Discretely Presented Component Unit

The financial statements do not include financial data for the District’s legally separate component unit. Accounting principles generally accepted in the United States of America require the financial data for the component unit to be reported with the financial data of the District’s primary government unless the District also issues financial statements for the financial reporting entity that include the financial data for its component unit. The District has not issued such reporting entity financial statements. Because of this departure from accounting principles generally accepted in the United States of America, the assets, liabilities, net position, revenues, and expenses of the aggregate discretely presented component unit should have been presented.

Adverse Opinion

In our opinion, because of the significance of the matter discussed in the "Basis for Adverse Opinion on the Discretely Presented Component Unit", the financial statements referred to above do not present fairly, the financial position of the discretely presented component unit of the District as of September 30, 2020, or the changes in financial position thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Qualified Opinion

In our opinion, except for the effects of the matter described in the "Basis for Adverse Opinion on the Discretely Presented Component Unit" paragraph, the financial statements referred to above present fairly, in all material respects, the financial position of the aggregate remaining fund information of the District as of September 30, 2020, and the respective changes in financial position thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Unmodified Opinions

In our opinion, the financial statements referred to previously 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, 2020, and the respective changes in financial position and the budgetary comparison for the General Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America.

- 2 -



To the Board of Supervisors NatureWalk Community Development District

Other Matters

Required Supplementary Information

Governmental accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures in accordance with governmental auditing standards generally accepted in the United States of America, which consisted principally of inquires of management regarding 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 Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued a report dated March 10, 2021 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 and contracts.

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 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 NatureWalk Community Development District’s internal control over financial reporting and compliance.

Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL Fort Pierce, Florida

March 10, 2021

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audit

BTEGF

NatureWalk Community Development DistrictMANAGEMENT’S DISCUSSION AND ANALYSIS

For the Year Ended September 30, 2020

Management’s discussion and analysis of NatureWalk Community Development District (the “District”) financial performance provides an objective and easily readable analysis of the District’s financial activities for the fiscal year ended September 30, 2020. The analysis provides summary financial information for the District and should be read in conjunction with the District’s financial statements.

OVERVIEW OF THE FINANCIAL STATEMENTS

The District’s basic financial statements comprise three components; 1) Government-wide financial statements, 2) Fund financial statements, and 3) Notes to financial statements. The Government-wide financial statements present an overall picture of the District’s financial position and results of operations. The Fund financial statements present financial information for the District’s major funds. The Notes to financial statements provide additional information concerning the District’s finances. This report also contains other supplementary information in addition to the basic financial statements.

The Government-wide financial statements are the statement of net position and the statement of activities. These statements use accounting methods similar to those used by private-sector companies. Emphasis is placed on the net position of governmental activities and the change in net position. Governmental activities are primarily supported by special assessments.

The statement of net position presents information on all assets and liabilities of the District, with the difference between assets and liabilities reported as net position. Net position is reported in three categories; 1) net investment in capital assets, 2) restricted, and 3) unrestricted. Assets, liabilities, and net position are reported for all Governmental activities.

The statement of activities presents information on all revenues and expenses of the District and the change in net position. Expenses are reported by major function and program revenues relating to those functions are reported, providing the net cost of all functions provided by the District. To assist in understanding the District’s operations, expenses have been reported as governmental activities. Governmental activities financed by the District include general government, physical environment and debt service.

Fund financial statements present financial information for governmental funds. These statements provide financial information for the major funds of the District. Governmental fund financial statements provide information on the current assets and liabilities of the funds, changes in current financial resources (revenues and expenditures), and current available resources.

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OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Fund financial statements include a balance sheet and a statement of revenues, expenditures and changes in fund balances for all governmental funds. A statement of revenues, expenditures, and changes in fund balances – budget and actual is provided for the District’s General Fund. Fund financial statements provide more detailed information about the District’s activities. Individual funds are established by the District to track revenues that are restricted to certain uses or to comply with legal requirements.

The government-wide financial statements and the fund financial statements provide different pictures of the District. The government-wide financial statements provide an overall picture of the District’s financial standing. These statements are comparable to private-sector companies and give a good understanding of the District’s overall financial health and how the District paid for the various activities, or functions, provided by the District. All assets of the District, including land, buildings and improvements, and infrastructure are reported in the statement of net position. All liabilities, including principal outstanding on bonds are included. The statement of activities includes depreciation on all long-lived assets of the District, but transactions between the different functions of the District have been eliminated in order to avoid “doubling up” the revenues and expenses. The fund financial statements provide a picture of the major funds of the District. In the case of governmental activities, outlays for long lived assets are reported as expenditures and long-term liabilities, such as general obligation bonds, are not included in the fund financial statements. To provide a link from the fund financial statements to the government-wide financial statements, a reconciliation is provided from the fund financial statements to the government-wide financial statements.

Notes to financial statements provide additional detail concerning the financial activities and financial balances of the District. Additional information about the accounting practices of the District, investments of the District, capital assets and long-term debt are some of the items included in the notes to financial statements.

Financial Highlights

The following are the highlights of financial activity for the year ended September 30, 2020.

♦ The District’s total assets were exceeded by total liabilities by $(7,376,681) (net position). Unrestricted net position for Governmental Activities was $(3,010,851). Restricted for capital projects was $192,266. Net investment in capital assets was $(4,558,096).

♦ Governmental activities revenues totaled $477,794 while governmental activities expenses totaled $1,788,720.

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Financial Analysis of the District

The following schedule provides a summary of the assets, liabilities and net position of the District and is presented by category for comparison purposes.

Net Position

Governmental Activities 2020 2019

Current assets $ 161,860 $ 254,955 Restricted assets 1,604,675 1,460,718 Capital assets, net 7,486,398 8,177,487

Total Assets 9,252,933 9,893,160

Current liabilities 12,045,631 11,215,907 Non-current liabilities 4,583,983 4,743,008

Total Liabilities 16,629,614 15,958,915

Net Position Net investment in capital assets (4,558,096) (3,882,841) Restricted for capital projects 192,266 204,040 Unrestricted (3,010,851) (2,386,954)

Total Net Position $ (7,376,681) $(6,065,755)

The decrease in current assets is related to expenditures exceeding revenues at the fund level in the current year.

The decrease in capital assets is the result of depreciation in the current year.

The increase in current liabilities is related to the increase in matured bonds and interest payable.

The decrease in net position is primarily the result of the lack of funding to pay the current year debt service payments.

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Financial Analysis of the District (Continued)

The following schedule provides a summary of the changes in net position of the District and is presented by category for comparison purposes.

Change in Net Position

Governmental Activities

Program Revenues Charges for services Grants and contribution General Revenues Investment earnings Total Revenues

$

2020

461,990 2,000

13,804 477,794

$

2019

484,548 225,647

27,549 737,744

Expenses General government Physical environment Interest on long-term debt Total Expenses

133,569 930,490 724,661 1,788,720

170,402 1,021,681 724,661 1,916,744

Change in Net Position (1,310,926) (1,179,000)

Net Position - Beginning of Year (6,065,755) (4,886,755)

Net Position - End of Year $ (7,376,681) $ (6,065,755)

The decrease in grants and contributions is the result of developer capital contributions for the Construction Project in the prior year.

The decrease in general government is related to less audit, legal and trustee fees expenses in the current year.

The decrease in physical environment is related to decreased landscaping, mulching and irrigation repair costs in the current year.

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Capital Assets Activity

The following schedule provides a summary of the District’s capital assets as of September 30, 2020 and 2019.

Governmental Activities Description 2020 2019

Construction in progress $ 3,274,370 $ 3,272,370 Infrastructure 10,783,621 10,783,621 Stormwater management 1,917,033 1,917,033 Improvements other than buildings 478,116 467,331 Accumulated depreciation (8,966,742) (8,262,868)

Total Capital Assets (Net) $ 7,486,398 $ 8,177,487

The activity for the year consisted of additions to construction in progress of $2,000, additions to improvements other than buildings of $10,785 and $703,874 in depreciation.

General Fund Budgetary Highlights

Actual expenditures were less than the total budget for the year ended September 30, 2020 because of lower than anticipated mulching expenditures.

The budget for the year ended September 30, 2020 was not amended.

Debt Management

Governmental Activities debt includes the following:

♦ In March 2007, the District issued $8,295,000 Series 2007A and $11,705,000 Series 2007B Capital Improvement Revenue Bonds. These bonds were issued to finance the acquisition and construction of certain improvements for the benefit of the District. The District has failed to pay principal payments of $790,000 on the Series 2007A and $7,895,000 on the Series 2007B Bonds. These amounts are reflected as matured bonds payable in the financial statements. The balance outstanding for the Series 2007A Bonds at September 30, 2020 was $4,760,000.

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Economic Factors and Next Year’s Budget

NatureWalk Community Development District does not expect any economic factors to have any significant effect on the financial positions or results of operation of the District in fiscal year 2021.

Request for Information

The financial report is designed to provide a general overview of NatureWalk Community Development District’s finances for all those with an interest. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the NatureWalk Community Development District, Rizzetta & Company, 12750 Citrus Park Lane, Ste 115, Tampa, Florida 33625.

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NatureWalk Community Development District STATEMENT OF NET POSITION

September 30, 2020

Governmental Activities

ASSETS Current Assets

Cash $ 124,482 Investments 11 Accounts receivable 29,884 Deposits 5,943 Prepaid expenses 1,540

Total Current Assets 161,860 Non-Current Assets

Restricted assets Investments 1,604,675

Capital Assets, Not Being Depreciated Construction in progress 3,274,370

Capital Assets, Being Depreciated Infrastructure 10,783,621

Stormwater management 1,917,033 Improvements other than buildings 478,116 Less: accumulated depreciation (8,966,742)

Total Non-current Assets 9,091,073 Total Assets 9,252,933

LIABILITIES Current Liabilities

Accounts payable and accrued expenses 4,351 Accrued interest 301,536 Matured bonds payable 8,685,000 Matured interest payable 2,894,744 Bonds payable - current portion 160,000

Total Current Liabilities 12,045,631 Non-Current Liabilities

Bonds payable 4,583,983 Total Liabilities 16,629,614

NET POSITION Net investment in capital assets (4,558,096) Restricted for capital projects 192,266 Unrestricted (3,010,851)

Total Net Position $ (7,376,681)

See accompanying notes to financial statements. - 10 -

NatureWalk Community Development District STATEMENT OF ACTIVITIES


Net (Expense) Revenues and

Changes in Program Revenues Net Position

Charges for Capital Governmental Functions/Programs Expenses Services Contributions Activities Governmental Activities General government $ (133,569) $ 85,380 $ - $ (48,189) Physical environment (930,490) 207,192 2,000 (721,298) Interest and other charges (724,661) 169,418 - (555,243)

Total Governmental Activities $ (1,788,720) $ 461,990 $ 2,000 (1,324,730)

General revenues: Investment earnings 13,804

Change in Net Position (1,310,926)

Net Position - Beginning of year (6,065,755) Net Position - End of year $ (7,376,681)


NatureWalk Community Development District BALANCE SHEET -

GOVERNMENTAL FUNDS September 30, 2020

Total Debt Capital Governmental

General Service Projects Funds ASSETS

Cash $ 124,482 $ - $ - $ 124,482 Investments 11 - - 11 Assessments recevable 10,319 19,565 - 29,884 Prepaid items 5,943 - - 5,943 Deposits 1,540 - - 1,540 Restricted assets

Investments, at fair value - 1,088,605 516,070 1,604,675 Total Assets $ 142,295 $ 1,108,170 $ 516,070 $ 1,766,535

LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES

LIABILITIES Accounts payable and accrued expenses $ 4,351 $ - $ - $ 4,351 Matured bonds payable - 8,685,000 - 8,685,000 Matured interest payable - 2,894,744 - 2,894,744

Total Liabilities 4,351 11,579,744 - 11,584,095

DEFERRED INFLOWS OF RESOURCES Unavailable revenues 10,319 19,565 - 29,884

FUND BALANCES Nonspendable - prepaid expenses/deposits 7,483 - - 7,483 Restricted

Capital projects - - 516,070 516,070 Unassigned 120,142 (10,491,139) - (10,370,997) Total Fund Balances 127,625 (10,491,139) 516,070 (9,847,444)

Total Liabilities, Deferred Inflows of Resources and Fund Balances $ 142,295 $ 1,108,170 $ 516,070 $ 1,766,535


NatureWalk Community Development District RECONCILIATION OF TOTAL GOVERNMENTAL FUND BALANCES

TO NET POSITION OF GOVERNMENTAL ACTIVITIES September 30, 2020

Total Governmental Fund Balances $ (9,847,444)

Amounts reported for governmental activities in the Statement of Net Position are different because:

Capital assets, construction in progress, $3,274,370, infrastructure, $10,783,621 stormwater management, $1,917,033, and improvements other than buildings, $478,116, net of accumulated depreciation, $(8,966,742) are not current financial resources, and therefore are not reported at the fund level. 7,486,398

Long-term liabilities, including bonds payable, $(4,760,000), net of bond discounts, net, $16,017, are not due and payable in the current period, and therefore are not reported at the fund level. (4,743,983)

Special assessments receivable that are unavailable at year end are reported as deferred inflows of resources at the fund level, however these deferred inflows are recognized when earned at the government-wide level. 29,884

Accrued interest expense for long-term debt is not a current financial use, and therefore, is not reported in the fund level. (301,536)

Net Position of Governmental Activities $ (7,376,681)


NatureWalk Community Development District STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -

GOVERNMENTAL FUNDS For the Year Ended September 30, 2020

Total Debt Capital Governmental

General Service Projects Funds REVENUES

Special assessments $ 262,688 $ 169,418 $ - $ 432,106 Developer contributions - - 18,453 18,453 Investment earnings - 9,125 4,679 13,804

Total Revenues 262,688 178,543 23,132 464,363

EXPENDITURES Current

General government 93,385 40,184 - 133,569 Physical environment 226,616 - - 226,616 Capital outlay 10,785 - 2,000 12,785

Debt service Principal - 150,000 - 150,000

Interest - 723,686 - 723,686 Total Expenditures 330,786 913,870 2,000 1,246,656

Excess/(deficiency) of revenues over/(under) expenditures (68,098) (735,327) 21,132 (782,293)

Other Financing Sources/(Uses) Transfers in - - 2,095 2,095 Transfers out - (2,095) - (2,095) Total Other Financing Sources/(Uses) - (2,095) 2,095 -

Net change in fund balances (68,098) (737,422) 23,227 (782,293)

Fund Balances - Beginning of year 195,723 (9,753,717) 492,843 (9,065,151)

Fund Balances - End of year $ 127,625 $ (10,491,139) $ 516,070 $ (9,847,444)


NatureWalk Community Development District RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE

STATEMENT OF ACTIVITIES For the Year Ended September 30, 2020

Net Change in Fund Balances - Total Governmental Funds $ (782,293)

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

Governmental funds report capital outlays as expenditures; however, in the Statement of Activities, the cost of those assets is allocated over theirestimated useful lives as depreciation. This is the amount that capital outlay ($12,785) was exceeded by depreciation ($(703,874)) in the current period. (691,089)

Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities at the government-wide level. 150,000

Revenues that are unavailable at year end are recognized as a deferred inflow of resources at the fund level. Revenues are recognized when earned at the government-wide level. 13,431

Bond discounts are amortized over the life of the bonds as interest. This is the current period amortization. (975)

Change in Net Position of Governmental Activities $ (1,310,926)


NatureWalk Community Development District STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN

FUND BALANCES - BUDGET AND ACTUAL - GENERAL FUND For the Year Ended September 30, 2020

Revenues Special assessments

Original Budget

$ 303,036

Final Budget

$ 303,036 $

Actual

262,688

Variance with Final Budget

Positive (Negative)

$ (40,348)

Expenditures Current

General government Physical environment

Capital outlay Total Expenditures

96,945 236,833

-333,778

96,945 236,833

-333,778

93,385 226,616

10,785 330,786

3,560 10,217

(10,785) 2,992

Net change in fund balances (30,742) (30,742) (68,098) (37,356)

Fund Balances - Beginning of year 30,742 30,742 195,723 164,981

Fund Balances - End of year $ - $ - $ 127,625 $ 127,625


NatureWalk Community Development DistrictNOTES TO FINANCIAL STATEMENTS

September 30, 2020

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The financial statements of NatureWalk Community Development District (the “District”) have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The District's more significant accounting policies are described below.

1. Reporting Entity

The District was established on June 28, 2005 by Ordinance No. 05-23 of the Board of County Commissioners of Walton County, Florida. The District was established pursuant to the Uniform Community Development District Act of 1980, Chapter 190, Florida Statutes, as amended (the "Act"), as a Community Development District. The District was established for the purposes of financing and managing the acquisition, construction, maintenance and operation of the infrastructure necessary for community development within its jurisdiction. The District is governed by a five-member Board of Supervisors. The District operates within the criteria established by Chapter 190. The Board has the responsibility for allocating 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, and financing improvements.

The reporting entity for the District includes all functions of government in which the District’s Board exercises oversight responsibility. Oversight responsibility includes, but is not limited to, financial interdependency, designation of management, significant ability to influence operations and accountability for fiscal matters. As required by GAAP, these financial statements present the NatureWalk Community Development District, (the primary government) as a stand-alone government.

In a previous year, certain land within the District was deeded in lieu of foreclosure to Naturewalk, LLC, a Special Purpose Entity (SPE) formed in conformance with the Bond Indenture when the bonds went in default. The SPE qualifies as a stand-alone component unit of the District in accordance with GAAP. The District was not provided any information about the financial activity of the SPE, therefore, the SPE is not included in the accompanying financial statements as required by GAAP.

2. Measurement Focus and Basis of Accounting

The basic financial statements of the District are composed of the following:

• Government-wide financial statements

• Fund financial statements

• Notes to financial statements

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September 30, 2020

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

2. Measurement Focus and Basis of Accounting (Continued)

a. Government-wide Financial Statements

The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting.Government-wide financial statements report all non-fiduciary information about the reporting government as a whole. These statements include the governmental activities of the primary government. The effect of interfund activity has been removed from these statements.

Governmental activities are supported by special assessments and interest. Program revenues are netted with program expenses in the statement of activities to present the net cost of each program.

Amounts paid to acquire capital assets are capitalized as assets, rather than reported as an expenditure. Proceeds of long-term debt are recorded as liabilities in the government-wide financial statements, rather than as an other financing source.

Amounts paid to reduce long-term indebtedness of the reporting government are reported as a reduction of the related liability, rather than as an expenditure.

b. Fund Financial Statements

The underlying accounting system of the District is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.

Fund financial statements for the primary government’s governmental funds are presented after the government-wide financial statements. These statements display information about major funds individually.

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September 30, 2020



b. Fund Financial Statements (Continued)

Governmental Funds

The District has implemented the Governmental Accounting Standards Board Statement 54 – Fund Balance Reporting and Governmental Fund Type Definitions. The Statement requires the fund balance for governmental funds to be reported in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent.

The District has various policies governing the fund balance classifications.

Nonspendable Fund Balance – This classification consists of amounts that cannot be spent because they are either not in spendable form or are legally or contractually required to be maintained intact.

Restricted Fund Balance – This classification includes amounts that can be spent only for specific purposes stipulated by the state constitution, external resource providers, or through enabling legislation.

Assigned Fund Balance – This classification consists of the Board of Supervisors’ intent to be used for specific purposes, but are neither restricted nor committed. The assigned fund balances can also be assigned by the District’s management company.

Unassigned Fund Balance – This classification is the residual classification for the government’s general fund and includes all spendable amounts not contained in the other classifications. Unassigned fund balance is considered to be utilized first when expenditure is incurred for purposes for which amounts in any of those unrestricted fund balance classifications could be used.

Fund Balance Spending Hierarchy – For all governmental funds except special revenue funds, when restricted, committed, assigned, and unassigned fund balances are combined in a fund, qualified expenditures are paid first from restricted or committed fund balance, as appropriate, then assigned and finally unassigned fund balances.

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September 30, 2020



b. Fund Financial Statements (Continued)

Governmental Funds (Continued)

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are considered to be available when they are collected within the current period or soon thereafter to pay liabilities of the current period. For this purpose, the District considers revenues to be available if they are collected within 60 days of the end of the current fiscal period.

Expenditures generally are recorded when a liability is incurred, as under accrual accounting. Interest associated with the current fiscal period is considered to be an accrual item and so has been recognized as revenue of the current fiscal period.

Under the current financial resources measurement focus, only current assets and current liabilities are generally included on the balance sheet. The reported fund balance is considered to be a measure of “available spendable resources”. Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of “available spendable resources” during a period.

Because of their spending measurement focus, expenditure recognition for governmental fund types excludes amounts represented by non-current liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities.

Amounts expended to acquire capital assets are recorded as expenditures in the year that resources were expended, rather than as fund assets. The proceeds of long-term debt are recorded as an other financing source rather than as a fund liability.

Debt service expenditures are recorded only when payment is due.

3. Basis of Presentation

a. Governmental Major Funds

General Fund – The General Fund is the District’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.

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September 30, 2020


3. Basis of Presentation (Continued)

a. Governmental Major Funds (Continued)

Debt Service Fund – This Debt Service Fund accounts for the debt service requirements to retire the capital improvement revenue bonds.

Capital Projects – The Capital Project Fund accounts for financial resources to be used for the acquisition or construction of major infrastructure within the District.

b. Non-current Governmental Assets/Liabilities

GASB Statement 34 requires that non-current governmental assets, such as land and buildings, and non-current governmental liabilities, such as special assessment bonds, be reported in the governmental activities column in the government-wide Statement of Net Position.

4. Assets, Liabilities and Net Position or Equity

a. Cash and Investments

Florida Statutes require state and local governmental units to deposit monies with financial institutions classified as "Qualified Public Depositories," a multiple financial institution pool whereby groups of securities pledged by the various financial institutions provide common collateral from their deposits of public funds. This pool is provided as additional insurance to the federal depository insurance and allows for additional assessments against the member institutions, providing full insurance for public deposits.

The District is authorized to invest in those financial instruments as established by Section 218.415, Florida Statutes. The authorized investments consist of:

1. Direct obligations of the United States Treasury; 2. The Local Government Surplus Funds Trust or any intergovernmental investment

pool authorized pursuant to the Florida Interlocal Cooperative Act of 1969; 3. Interest-bearing time deposits or savings accounts in authorized qualified public

depositories; 4. Securities and Exchange Commission, registered money market funds with the

highest credit quality rating from a nationally recognized rating agency.

b. Receivables and Payables

Activities between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as “due to/from other funds”. Any residual balances outstanding between the governmental activities and business-type activities are reported as “internal balances”.

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September 30, 2020


4. Assets, Liabilities and Net Position or Equity (Continued)

c. Net Position

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 and other contractual restrictions. Unrestricted net position consists of the net position not meeting the definition of either of the other two components.

d. Capital Assets

Capital assets, which include construction in progress, land and improvements, infrastructure, buildings and equipment are reported in the applicable governmental activities column.

The District defines capital assets as assets with an initial, individual cost of $5,000 or more and an estimated useful life in excess of two years. The valuation basis for all assets is historical cost.

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend its useful life are not capitalized.

Major outlays for capital assets and improvements are capitalized as projects are constructed.

Depreciation of capital assets is computed and recorded by utilizing the straight-line method. Estimated useful lives of the various classes of depreciable capital assets are as follows:

Improvements other than buildings 15 years Infrastructure 15/20 years Stormwater management 25 years

e. Unamortized Bond Discounts

Bond discounts associated with the issuance of revenue bonds are amortized according to the straight line method of accounting. For financial reporting, unamortized bond discounts are netted against the applicable long-term debt.

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September 30, 2020


4. Assets, Liabilities and Net Position or Equity (Continued)

f. Budgets

Budgets are prepared and adopted after public hearings for the governmental funds, pursuant to Chapter 190, Florida Statutes. The District utilizes the same basis of accounting for budgets as it does for revenues and expenditures in its various funds. The legal level of budgetary control is at the fund level. All budgeted appropriations lapse at year end. Formal budgets are adopted for the general and debt service funds. As a result, deficits in the budget variance columns of the accompanying financial statements may occur.

g. Deferred Inflows of Resources

Deferred inflows of resources represent an acquisition of net position that applies to a future reporting period(s) and so will not be recognized as an inflow of resources (revenue) until then. The District only has one item that qualifies for reporting in this category. Unavailable revenues are reported only in the governmental funds balance sheet. This amount is deferred and recognized as an inflow of resources in the period that amounts become available.

h. 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 period. Actual results could differ from those estimates.

NOTE B – CASH AND INVESTMENTS

All deposits are held in qualified public depositories and are included on the accompanying balance sheet as cash and investments.

Custodial Credit Risk – Deposits

Custodial credit risk is the risk that in the event of a bank failure, the District's deposits may not be returned to it. The District does not have a formal deposit policy for custodial credit risk, however, they follow the provisions of Chapter 280, Florida Statutes regarding deposits and investments. As of September 30, 2020, the District's bank balance was $133,632 and carrying value was $124,482. Exposure to custodial credit risk was as follows. The District maintains all deposits in a qualified public depository in accordance with the provisions of Chapter 280, Florida Statutes, which means that all deposits are fully insured by Federal Depositors Insurance or collateralized under Chapter 280, Florida Statutes.

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September 30, 2020

NOTE B – CASH AND INVESTMENTS (CONTINUED)

Investments

As of September 30, 2020, the District had the following investments and maturities:

Investment Local Govt Surplus Funds Trust Fund U S Bank Managed Money Market

Total

Maturity 48 days*

N/A

Fair Value $ 11

1,604,675 $ 1,604,686

*Maturity is a weighted average maturity.

The District categorizes its fair value measurement within the fair value hierarchy established by generally accepted accounting principles. The fair value is the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. The District uses a market approach in measuring fair value that uses prices and other relevant information generated by market transactions involving identical or similar assets, liabilities, or groups of assets and liabilities.

Assets or liabilities are classified into one of three levels. Level 1 is the most reliable and is based on quoted price for identical assets, or liabilities, in an active market. Level 2 uses significant other observable inputs when obtained quoted prices for identical or similar assets, or liabilities, in markets that are not active. Level 3 is the least reliable and uses significant unobservable inputs that uses the best information available under the circumstances which includes the District's own data in measuring unobservable inputs.

Based on the criteria in the preceding paragraph, the investment in U S Bank Managed Money Market is a Level 1 asset.

Interest Rate Risk

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

Credit Risk

The District's investments are limited by state statutory requirements and bond compliance. The District has no investment policy that would further limit its investment choices. As of September 30, 2020, the District's investment in the U S Bank Managed Money Market noted above was not rated.

- 24 -


September 30, 2020

NOTE B – CASH AND INVESTMENTS (CONTINUED)

Concentration of Credit Risk

The District places no limit on the amount it may invest in any one fund. The investment in U S Bank Managed Money Market is essentially 100% of the District’s total investments.

The types of deposits and investments and their level of risk exposure as of September 30, 2020 were typical of these items during the fiscal year then ended. The District considers any decline in fair value for certain investments to be temporary.

NOTE C – SPECIAL ASSESSMENT REVENUES

Assessments are non-ad valorem assessments imposed on assessable lands located within the District. Assessments may be levied on property to pay for the operation and maintenance of the District, as well as to pay for debt service on the District's Bonds. The fiscal year for which annual assessments may be levied begins October 1 with discounts available for payments through February 28 and become delinquent on April 1. For debt service assessments, amounts collected as advance payments are used to prepay a portion of the Bonds outstanding. Otherwise, assessments are collected annually to provide funds for the debt service on the portion of the Bonds which are not paid with prepaid 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.

NOTE D – INTERFUND TRANSFERS

Interfund transfers for the year ended September 30, 2020, consisted for the following:

Transfers Out Transfers In Debt Service Fund Capital Projects Fund $ 2,095

The transfers relate to the transfer of interest income per the Trust Indenture.

- 25 -


September 30, 2020

NOTE E – CAPITAL ASSETS

Capital Asset activity for the year ended September 30, 2020 was as follows:

Governmental activities:

Balance October 1,

2019 Additions Disposals

Balance September 30,

2020

Capital assets, not being depreciated Construction in progress $ 3,272,370 $ 2,000 $ - $ 3,274,370

Capital assets, being depreciated: Infrastructure Stormwater management Improvements other than buildings

Total capital assets, being depreciated

10,783,621 1,917,033

467,331 13,167,985

--

10,785 10,785

----

10,783,621 1,917,033

478,116 13,178,770

Less accumulated depreciation for: Infrastructure Stormwater management Improvements other than buildings

Total accumulated depreciation Total capital assets being depreciated, net

(6,998,768) (898,028) (366,072)

(8,262,868) 4,905,117

(595,507) (76,681) (31,686)

(703,874) (693,089)

-----

(7,594,275) (974,709) (397,758)

(8,966,742) 4,212,028

Governmental activities capital assets, net $ 8,177,487 $ (691,089) $ - $ 7,486,398

Depreciation of $703,874 was charged to physical environment.

NOTE F – LONG-TERM DEBT

In March 2007, the District issued $8,295,000 Series 2007A and $11,705,000 Series 2007B Capital Improvement Revenue Bonds maturing on May 1, 2038 and May 1, 2016, respectively, with fixed interest rates of 5.50% and 5.30%. These bonds were issued to finance a portion of the cost of acquisition, construction, installation, and equipping of the Series 2007 Project. The balance outstanding on the Series 2007A Bonds at September 30, 2020 was $4,760,000.

The following is a summary of activity for long-term debt of the District for the year ended September 30, 2020:

Long-term debt at October 1, 2019 $ 4,910,000 Principal payments (150,000)

Long-term debt at September 30, 2020 4,760,000 Less bond discount, net (16,017)

Total long-term debt, September 30, 2020 $ 4,743,983

- 26 -


September 30, 2020

NOTE F – LONG-TERM DEBT (CONTINUED)

The Bonds have an additional $8,685,000 in matured bonds outstanding for past due principal payments on the Series 2007A and Series 2007B Bonds. The District did not make the scheduled debt service payments on November 1, 2019 and May 1, 2020.

The annual requirements to amortize the principal and interest of bonded debt outstanding as of September 30, 2020 are as follows:

Year Ending September 30, Principal Interest Total

2021 $ 160,000 $ 261,800 $ 421,800 2022 170,000 253,000 423,000 2023 180,000 243,650 423,650 2024 185,000 233,750 418,750 2025 200,000 223,575 423,575

2026-2030 1,170,000 941,050 2,111,050 2031-2035 1,540,000 581,350 2,121,350 2036-2038 1,155,000 129,250 1,284,250

Totals $ 4,760,000 $ 2,867,425 $ 7,627,425

Summary of Significant Bonds Resolution Terms and Covenants The District levies special assessments pursuant to Section 190.022, Florida Statutes and the assessment rolls are approved by resolutions of the District Board. The collections are to be strictly accounted for and applied to the debt service of the bond series for which they were levied. The District covenants to levy special assessments in annual amounts adequate to provide for payment of principal and interest on the bonds. Payment of principal and interest is dependent on the money available in the debt service fund and the District’s ability to collect special assessments levied.

The Series 2007A Bonds are subject to redemption prior to maturity, in whole on any date, or in part at any time on or after May 1, 2017. The Series 2007A Bonds are subject to extraordinary mandatory redemption prior to their selected maturity date in the manner determined by the Bond Registrar if certain events occurred as outlined in the Bond Indenture.

The bond indenture provides for Debt Service Reserve Funds, which shall be held by the Trustee separate and apart from all other funds. The following is a schedule of reserve requirements and balances in the reserve accounts at September 30, 2020:

Reserve Reserve Balance Requirement

Series 2007A $ 170,803 $ 379,254 Series 2007B $ 59,323 $ 418,435

- 27 -


September 30, 2020

NOTE G – 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; natural disasters; and environmental remediation. The District has obtained commercial insurance from independent third parties to mitigate the costs of these risks; coverage may not extend to all situations. Settled claims from these risks have not exceeded commercial insurance coverage over the past three years.

- 28 -



7721461-6120 II 461-1155 FAX: 7721468-9278

Member AICPA



Member FICPA

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 NatureWalk Community Development District Walton 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 NatureWalk Community Development District, as of and for the year ended September 30, 2020, and the related notes to the financial statements, and have issued our report thereon dated March 10, 2021.

Internal Control Over Financial Reporting

In planning and performing our audit, we considered NatureWalk Community Development District's internal control over financial reporting (internal control) as a basis for designing 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 NatureWalk Community Development District’s internal control. Accordingly, we do not express an opinion on the effectiveness of NatureWalk Community Development 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 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 may exist that have not been identified.

- 29 -



Board of Supervisors NatureWalk Community Development District

Compliance and Other Matters

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

We noted certain matters that we reported to management in a separate letter dated March 10, 2021. See pages 31 to 33.

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.


March 10, 2021

- 30 -

audit

BTEGF

MANAGEMENT LETTER

To the Board of SupervisorsNatureWalk Community Development DistrictWalton County, Florida

Report on the Financial Statements

We have audited the financial statements of the NatureWalk Community Development District as of and for the year ended September 30, 2020, and have issued our report thereon dated March 10, 2021.

Auditor’s Responsibility

We conducted our audit in accordance with auditing standards generally accepted in the United States; 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 on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and our Independent Auditor’s Report on an examination conducted in accordance with AICPA Professionals Standards, AT-C Section 315 regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in that report, which is dated March 10, 2021, should be considered in conjunction with this management letter.

Prior Audit Findings

Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been made to address findings and recommendations made in the preceding financial audit report. The following findings or recommendations were made in the preceding financial audit report:

15-01 – Failure to Include Component Unit Financial Statements in the Financial Report

Finding: The District failed to include the financial statements of the SPE as a discretely presented component unit in their financial statements as required by governmental accounting standards.

Recommendation: We recommend that the District include the SPE financial statements in future annual reports.

Management Response: Due to the lack of control by the District and the opinion that the primary beneficiaries are the Bondholders, The District does not believe that the SPE is a component unit of the District.

- 31 -

To the Board of SupervisorsNatureWalk Community Development District

12-01 – Failure to Meet Debt Service Reserve Requirements

Finding: The Trust Indenture requires the District to maintain certain minimum amounts in Debt Service Reserve Accounts. The District has not maintained the required reserve amounts for several years.

Recommendation: We recommend that the District utilize all legal remedies available to collect assessments and replenish the Debt Service Reserve Accounts.

Management Response: The District and the bondholders have been working to alleviate this issue. It is uncertain when and if the Reserve Accounts will be replenished with funds received in accordance with the Forbearance Agreement dated February 11, 2011.

12-02 – Failure to Make Bond Debt Service Payments When Due

Finding: The District has been unable to make the required debt service payments when due since November 2015.

Recommendation: We recommend the District use all legal remedies available to collect delinquent assessments and bring debt service payments current.

Management Response: The District paid all past due principal and interest during the fiscal year ended September 30, 2015 at the direction of the bondholders. The Trustee, on behalf of the Bondholders, has told the District to hold all debt service assessments in abeyance. The District does not expect to make debt service payments as long as debt service assessments are in abeyance.

Financial Condition

Section 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, requires us to apply appropriate procedures and communicate the results of our determination as to whether or not NatureWalk Community Development District has met one or more of the conditions described in Section 218.503(1), Florida Statutes, and to identify the specific conditions met. In connection with our audit, we determined that the NatureWalk Community Development District did not meet any of the conditions described in Section 218.503(1), Florida Statutes (See Finding 12-02 above).

Pursuant to Sections 10.554(1)(i)5.c. and 10.556(8), Rules of the Auditor General, we applied financial conditions assessment procedures as of September 30, 2020 for the NatureWalk Community Development District. It is management’s responsibility to monitor the NatureWalk Community Development District’s financial condition; our financial condition assessment was based in part on the representations made by management and the review of the financial information provided by the same.

- 32 -



To the Board of SupervisorsNatureWalk Community Development District

Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate anyrecommendations to improve financial management. In connection with our audit, we did not have any such recommendations.

Additional Matters

Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not note any such findings.

Purpose of this Letter

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


March 10, 2021

- 33 -

audit

BTEGF



7721461-6120 II 461-1155 FAX: 7721468-9278

Member AICPA



Member FICPA

INDEPENDENT ACCOUNTANT’S REPORT/COMPLIANCE WITHSECTION 218.415, FLORIDA STATUTES

To the Board of SupervisorsNatureWalk Community Development DistrictWalton County, Florida

We have examined NatureWalk Community Development District's compliance with Section 218.415, Florida Statutes during the year ended September 30, 2020. Management is responsible for NatureWalk Community Development District’s compliance with those requirements. Our responsibility is to express an opinion on NatureWalk Community Development 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 NatureWalk Community Development 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 NatureWalk Community Development District's compliance with the specified requirements.

In our opinion, NatureWalk Community Development District complied, in all material respects, with the aforementioned requirements during the year ended September 30, 2020.


March 10, 2021

- 34 -

audit

BTEGF



7721461-6120 II 461-1155 FAX: 7721468-9278

Member AICPA



Member FICPA

Board of Supervisors NatureWalk Community Development District Walton County, Florida

We are pleased to provide the following information related to our audit of the NatureWalk Community Development District for the year ended September 30, 2020 to assist you in your oversight responsibility of the financial reporting process of the District.

Our responsibility under the auditing standards has been described to you in our engagement letter dated March 3, 2020.

Management is responsible for the appropriateness of the accounting policies used by the District. During the year, no significant new accounting policies were adopted nor were there any changes in the existing accounting policies.

We did not discuss with Management any significant or unusual transactions, nor did we discuss any alternative treatments available under generally accepted accounting policies during the current audit period.

Any audit adjustments provided by Management or communicated to Management have been reported to and agreed upon by Management. If you would like a detailed listing of all audit adjustments for the current period, please contact us.

We did not encounter immaterial uncorrected misstatements during the course of our audit.

There are no disagreements with Management over the application of significant accounting principles, the basis for judgments made by Management on any significant matters, the scope of the audit or significant disclosures to be included in the financial statements.

We are not aware of any consultations Management had with other accountants about accounting or auditing matters.



Board of Commissioners NatureWalk Community Development District Page 2

There were no significant issues that were discussed during the course of the audit.

The Debt Service Fund had a deficit fund balance at September 30, 2020.

We did not encounter any difficulties in dealing with Management during the audit process.

Management has made certain written representations to us as part of the audit process. Please contact us if you would like a copy of those representations.

This letter is intended solely for the information and use of the Board of Commissioners and Management and is not intended to be and should not be used by anyone other than the intended parties. Please contact J. W. Gaines should you have any questions concerning this letter. We greatly appreciate the opportunity to be of service to the NatureWalk Community Development District.


March 10, 2021

audit

BTEGF

______________________________________________________________________________

This Instrument prepared by: Matthews & Jones, LLP 4475 Legendary Drive Destin, FL 32541 850-837-3662

Easement Agreement

This Easement Agreement (“Agreement”) is entered into this _____ day of ___________________, 2021, by and between Naturewalk Community Development District (herein “Grantor”), and John R. Leahy and Lesley C. Leahy, Trustees of The John R. Leahy and Lesley C. Leahy Revocable Living Trust dated the 25th day of March, 2009 (herein “Grantee”).

WHEREAS, Grantor is the owner of certain real property located in Walton County, Florida, which is more particularly described on Exhibit “A” attached hereto and made a part hereof (“Easement Area”); and

WHEREAS, Grantee is the owner of certain real property located adjacent to the Easement Area in Walton County, Florida, which is more particularly described on Exhibit “B” attached hereto and made a part hereof (“Grantee’s Property”); and

WHEREAS, Grantor intends to hereby grant to Grantee a perpetual exclusive easement for improvements and access across the Easement Area, on certain terms and conditions as more particularly set forth herein.

NOW THEREFORE, for ten dollars and other good and valuable consideration, and subject to the terms, conditions, and reservations set forth below, Grantor does hereby grant and convey unto Grantee, its successors and assigns, a perpetual exclusive easement upon, under, through, across and over the real property described on Exhibit “A” (“Easement Area”), which easement, rights and privileges herein granted shall be used for the following purposes: (1) ingress and egress by golf carts and similar small vehicles, bicycles and pedestrians to and from the Grantee’s Property; (2) maintenance, repair and replacement of a retaining wall and other improvements located on the Easement Area; (3) landscaping, regrading and paving of the Easement Area and (4) such other purposes as described herein (collectively “Easement Purposes”).

This grant is made subject to the following terms, conditions, and reservations:

1. Covenants Running with the Land. This instrument and the easement granted herein shall constitute a covenant running with the land and shall be binding on, and shall inure to the benefit of, the heirs, executors, administrators, successors and assigns of the parties hereto.

2. Maintenance, & Repair. Grantee shall, at its own cost and expense, keep and maintain any and all existing improvements on the Easement Area in good condition, and shall make all necessary repairs and replacements thereto.

3. Additional Improvements. Grantee may construct additional improvements in the Easement Area in its sole discretion at its sole cost. If Grantee constructs said improvements the Easement Area, the additional improvements shall be used exclusively by the Grantee.

1

4. Amendment or Modification. This Agreement constitutes the entire agreement between the parties and any amendment or modification hereto must be in writing executed by both parties and recorded in the official records of Walton County, Florida.

5. Governing Law, Venue. This Agreement has been entered into in the State of Florida and shall be construed in accordance with and governed by the laws thereof. Venue for any litigation arising pursuant to this Agreement shall be in Walton County, Florida.

6. Waiver of Jury Trial. THE PARTIES HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT ANY OF THEM MAY HAVE TO A TRIAL BY JURY IN RESPECT TO ANY LITIGATION BASED HEREON OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY RELATING TO THE SUBJECT MATTER OF THIS AGREEMENT. THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE PARTIES TO ENTER INTO THIS AGREEMENT.

7. Attorneys’ Fees and Recoverable Costs.

a. In the event of a legal action or other proceeding arising under this Agreement or a dispute regarding any alleged breach, default, claim, or misrepresentation arising out of this Agreement, whether or not a lawsuit or other proceeding is filed, the prevailing party shall be entitled to recover its reasonable attorneys’ fees and costs, whether incurred before suit, during suit, or at the appellate level. The prevailing party shall also be entitled to recover any attorneys’ fees and costs incurred in litigating the entitlement to attorneys’ fees and costs, as well as in determining or quantifying the amount of attorneys’ fees and costs due to it.

b. Recoverable Costs. The reasonable costs that the prevailing party shall be entitled to recover pursuant to this Agreement shall include any costs that are taxable pursuant to any applicable statute, rule, or guideline (including, but not limited to, the Statewide Uniform Guidelines for Taxation of Costs), as well as costs not taxable thereunder. Such recoverable costs shall specifically include, but not be limited to, 1) costs of investigation; 2) costs of copying documents and other materials, whether for discovery, filing with the court, internal review, or any other purpose; 3) costs for electronic discovery; 4) Westlaw, Lexis Nexis, or other electronic research service charges; 5) telephone charges; 6) mailing, commercial delivery service, and courier charges; 7) travel expenses, whether for investigation, depositions, hearings, trial, or any other purpose; 8) information technology support charges; 9) any and all consultant or expert witness fees, whether or not such fees are incurred in connection with a court-ordered report or testimony at a deposition, hearing, or trial; 10) court reporter and transcript fees, whether for deposition, trial, or an evidentiary or non-evidentiary hearing; 11) mediator fees; and 12) any other reasonable cost incurred by the prevailing party in connection with the dispute.

8. Waiver/ Estoppel. No waiver by Grantor or Grantee of any default by the other or of any event, circumstance or condition permitting either to terminate this Agreement shall constitute a waiver of any other default or other such event, circumstance or condition, whether of the same or of any other nature or type and whether preceding, concurrent or succeeding; and no failure or delay by Grantor or Grantee to exercise any right arising by reason of any default by the other shall prevent the exercise of such right while the defaulting Party continues in default, and no waiver of any default shall operate as a waiver of any other default or as a modification of this Agreement. The failure to enforce any provision of this Agreement for any period of time

2

shall not be deemed a waiver or estoppel to assert said covenant, condition, restriction or obligation at a later date.

9. Interpretation. Each party to this Agreement and their counsel have reviewed and revised this Agreement. The normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement or of any amendments or exhibits to this Agreement.

[Remainder of the page left intentionally blank]

[Signatures appear on the following pages]

3

____________________________________

IN WITNESS WHEREOF, the undersigned parties have executed this Agreement on the date set forth below their signatures.

WITNESSES: Naturewalk Community Development District

Print Name: By: Its:

Print Name:

STATE OF FLORIDA COUNTY OF

I HEREBY CERTIFY that on this day, before me by means of __ physical presence or __ online notarization, an officer duly authorized in the state aforesaid and in the county aforesaid to take acknowledgments, personally appeared __________________________________________ as _________________________________ of Naturewalk Community Development District, personally known to me or who has produced _______________________________________ as identification, to be the person described in and who executed the foregoing Amended and Restated Easement Agreement and he/she acknowledged before me that he/she executed same.

WITNESS my hand and official seal in the county and state last aforesaid this ______ day of ________________________, 2021.

NOTARY PUBLIC My Commission Expires:________

4

____________________________________

IN WITNESS WHEREOF, the undersigned parties have executed this Agreement on the date set forth below their signatures.

WITNESSES: __________________________________

Print: John R. Leahy

Print: _________________________________ Lesley C. Leahy

STATE OF FLORIDA COUNTY OF

I HEREBY CERTIFY that on this day, before me by means of __ physical presence or __ online notarization, an officer duly authorized in the state aforesaid and in the county aforesaid to take acknowledgments, personally appeared John R. Leahy and Lesley C. Leahy, personally known to me or who has produced ____________________________________ as identification, to be the person described in and who executed the foregoing Amended and Restated Easement Agreement and he acknowledged before me that he executed same.

WITNESS my hand and official seal in the county and state last aforesaid this ______ day of ________________________, 2021.

NOTARY PUBLIC My Commission Expires:________

5

Exhibit A

Grantor’s Property/Easement Area

6

Exhibit B

Grantee’s Property

Lot 11, Naturewalk at Seagrove Replat, according to the map or plat thereof, as recorded in Plat Book 18, Page(s) 8 of the Public Records of Walton County, Florida.

Property Appraiser’s Parcel Identification No. 11-3S-19-25010-000-0110

7

DocuSign Envelope ID: D083C296-6896-44FF-8127-FF180B605A6E

1086 Sandgrass Blvd Santa Rosa Beach, FL 32459

[email protected]

Due to damage caused by large heavy duty trucks like WM cutting into the corner, the driveway will need to

3/9/2021

3/9/2021Scott Rayer

Homeowner has requested that we add in a large boulder and 2 yaupon holly shrubs to prevent future damage.

be repaired to its original state. We will repack and level sand, then have pavers re-installed as original.

512-426-9702

NATUREWALK HOMEOWNERS’

ASSOCIATION, INC.

ALTERATION APPLICATION

OWNER’S NAME: DATE:

ADDRESS: PHONE:

E-MAIL:

DESCRIBE IN DETAIL, TYPE OF ALTERATION AND MATERIALS TO BE USED:

(IF MORE SPACE IS REQUIRED, PLEASE ATTACH TO THIS FORM. THANK YOU)

An application requesting approval for any alteration which occurs outside the exterior walls of the building MUST BE ACCOMPANIED BY A COPY OF YOUR LOT SURVEY WITH A SKETCH INDICATING LOCATION, SIZE AND TYPE OF CONSTRUCTION AND MATERIAL LISTING FROM THE CONTRACTOR, IF APPLICABLE. Applications are submitted to the Architectural Review Committee on the last Friday of the month for planned review by the 10th or 11th of the following month.

If approval is granted, it is not to be construed to cover approval of any County Code Requirements. A building permit from the appropriate building department is needed on most property alterations and/or improvements. The Association shall have no liability or obligation to determine whether such improvement, alteration or addition complies with any applicable law, rule, regulation, code or ordinance.

As a condition precedent to granting approval of any request for a change, alteration or addition to an existing basic structure, the applicant, their heirs and assigns thereto, hereby assume sole responsibility for the repair, maintenance or replacement of any such change, alteration or addition. IT IS UNDERSTOOD AND AGREED THAT THE NATUREWALK HOMEOWNERS’ ASSOCIATION, INC. AND RIZZETTA & COMPANY, INC., ARE NOT REQUIRED TO TAKE ANY ACTION TO REPAIR, REPLACE OR MAINTAIN ANY SUCH APPROVED CHANGE, ALTERATION OR ADDITION, OR ANY STRUCTURE OR ANY OTHER PROPERTY. THE HOMEOWNER AND ITS ASSIGNS ASSUME ALL RESPONSIBILITY AND COST FOR ANY ADDITION OR CHANGE AND ITS FUTURE UPKEEP AND MAINTENANCE.

DATE: OWNER’S SIGNATURE:

ACTION TAKEN BY THE ASSOCIATION: DATE: ___________________ APPROVED: _____________ NOT APPROVED: _______________

AUTHORIZED SIGNATURE FOR THE ASSOCIATION

CONDITIONS OF APPROVAL, IF APPLICABLE.

Rizzetta & Company, Inc. 120 Richard Jackson Boulevard, Suite 220 Panama City Beach, FL 32407 Telephone: 850-334-9055 Fax: 850-257-8101 [email protected]

mailto:[email protected]

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Fencing behind 10 Salamander Circle

Work Order WO# 14002

Work Order Authorization This Work Order Authorization (the "Work Order") dated 2/16/21 by and between GreenEarth Landscape services and Customer.

Billing Address: Property Address: Rizzetta & Company Nature Walk CDD c/o Rizetta & Company 120 Richard Jackson Blvd, Suite 220 Santa Rosa Beach, FL 32459 Panama City Beach, FL 32407

This agreement constitutes the entire Work Order between the aforementioned parties and includes the scope of service, guarantees terms and conditions, pricing and payment responsibilities for landscape management services provided at property address.

Work Order Scope:

SaveATree will trim the palms located at the gathering place and at the bridge on prairie pass.

Total: $1,150.00 plus applicable taxes

Authorized For: Authorized For: Rizzetta & Company GreenEarth Southeast, LLC

Signature Date Signature Date

Printed Name: Printed Name: Jessica Guthrie

Title: Title: Client Relations Manager

Page 1/1

Tab 10

Tab 11

Company ID Number: __________________

THE E-VERIFY MEMORANDUM OF UNDERSTANDING

FOR EMPLOYERS

ARTICLE I PURPOSE AND AUTHORITY

The parties to this agreement are the Department of Homeland Security (DHS) and the _____________________(Employer). The purpose of this agreement is to set forth terms and conditions which the Employer will follow while participating in E-Verify.

E-Verify is a program that electronically confirms an employee’s eligibility to work in the United States after completion of Form I-9, Employment Eligibility Verification (Form I-9). This Memorandum of Understanding (MOU) explains certain features of the E-Verify program and describes specific responsibilities of the Employer, the Social Security Administration (SSA), and DHS.

Authority for the E-Verify program is found in Title IV, Subtitle A, of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (IIRIRA), Pub. L. 104-208, 110 Stat. 3009, as amended (8 U.S.C. § 1324a note). The Federal Acquisition Regulation (FAR) Subpart 22.18, “Employment Eligibility Verification” and Executive Order 12989, as amended, provide authority for Federal contractors and subcontractors (Federal contractor) to use E-Verify to verify the employment eligibility of certain employees working on Federal contracts.

ARTICLE II RESPONSIBILITIES

A. RESPONSIBILITIES OF THE EMPLOYER

1. The Employer agrees to display the following notices supplied by DHS in a prominent place that is clearly visible to prospective employees and all employees who are to be verified through the system:

a. Notice of E-Verify Participation b. Notice of Right to Work

2. The Employer agrees to provide to the SSA and DHS the names, titles, addresses, and telephone numbers of the Employer representatives to be contacted about E-Verify. The Employer also agrees to keep such information current by providing updated information to SSA and DHS whenever the representatives’ contact information changes. 3. The Employer agrees to grant E-Verify access only to current employees who need E-Verify access. Employers must promptly terminate an employee’s E-Verify access if the Page 1 of 13 E-Verify MOU for Web Services Employers | Revision Date 06/01/13

employee is separated from the company or no longer needs access to E-Verify. 4. The Employer agrees to become familiar with and comply with the most recent version of the E-Verify User Manual. 5. The Employer agrees that any Employer Representative who will create E-Verify cases will complete the E-Verify Tutorial before that individual creates any cases.

a. The Employer agrees that all Employer representatives will take the refresher tutorials when prompted by E-Verify in order to continue using E-Verify. Failure to complete a refresher tutorial will prevent the Employer Representative from continued use of E-Verify.

6. The Employer agrees to comply with current Form I-9 procedures, with two exceptions:

a. If an employee presents a "List B" identity document, the Employer agrees to only accept "List B" documents that contain a photo. (List B documents identified in 8 C.F.R. § 274a.2(b)(1)(B)) can be presented during the Form I-9 process to establish identity.) If an employee objects to the photo requirement for religious reasons, the Employer should contact E-Verify at 888-464-4218. b. If an employee presents a DHS Form I-551 (Permanent Resident Card), Form I-766 (Employment Authorization Document), or U.S. Passport or Passport Card to complete Form I-9, the Employer agrees to make a photocopy of the document and to retain the photocopy with the employee’s Form I-9. The Employer will use the photocopy to verify the photo and to assist DHS with its review of photo mismatches that employees contest. DHS may in the future designate other documents that activate the photo screening tool.

Note: Subject only to the exceptions noted previously in this paragraph, employees still retain the right to present any List A, or List B and List C, document(s) to complete the Form I-9.

7. The Employer agrees to record the case verification number on the employee's Form I-9 or to print the screen containing the case verification number and attach it to the employee's Form I-9. 8. The Employer agrees that, although it participates in E-Verify, the Employer has a responsibility to complete, retain, and make available for inspection Forms I-9 that relate to its employees, or from other requirements of applicable regulations or laws, including the obligation to comply with the antidiscrimination requirements of section 274B of the INA with respect to Form I-9 procedures.

a. The following modified requirements are the only exceptions to an Employer’s obligation to not employ unauthorized workers and comply with the anti-discrimination provision of the INA: (1) List B identity documents must have photos, as described in paragraph 6 above; (2) When an Employer confirms the identity and employment eligibility of newly hired employee using E-Verify procedures, the Employer establishes a rebuttable presumption that it has not violated section 274A(a)(1)(A) of the Immigration and Nationality Act (INA) with respect to the hiring of that employee; (3) If the Employer receives a final nonconfirmation for an employee, but continues to employ that person, the Employer must notify DHS and the Employer is subject to a civil money penalty between $550 and $1,100 for each failure to notify DHS of continued employment

Page 2 of 13 E-Verify MOU for Web Services Employers | Revision Date 06/01/13

following a final nonconfirmation; (4) If the Employer continues to employ an employee after receiving a final nonconfirmation, then the Employer is subject to a rebuttable presumption that it has knowingly employed an unauthorized alien in violation of section 274A(a)(1)(A); and (5) no E-Verify participant is civilly or criminally liable under any law for any action taken in good faith based on information provided through the E-Verify. b. DHS reserves the right to conduct Form I-9 compliance inspections, as well as any other enforcement or compliance activity authorized by law, including site visits, to ensure proper use of E-Verify.

9. The Employer is strictly prohibited from creating an E-Verify case before the employee has been hired, meaning that a firm offer of employment was extended and accepted and Form I-9 was completed. The Employer agrees to create an E-Verify case for new employees within three Employer business days after each employee has been hired (after both Sections 1 and 2 of Form I-9 have been completed), and to complete as many steps of the E-Verify process as are necessary according to the E-Verify User Manual. If E-Verify is temporarily unavailable, the three-day time period will be extended until it is again operational in order to accommodate the Employer's attempting, in good faith, to make inquiries during the period of unavailability. 10. The Employer agrees not to use E-Verify for pre-employment screening of job applicants, in support of any unlawful employment practice, or for any other use that this MOU or the E-Verify User Manual does not authorize. 11. The Employer must use E-Verify for all new employees. The Employer will not verify selectively and will not verify employees hired before the effective date of this MOU. Employers who are Federal contractors may qualify for exceptions to this requirement as described in Article II.B of this MOU. 12. The Employer agrees to follow appropriate procedures (see Article III below) regarding tentative nonconfirmations. The Employer must promptly notify employees in private of the finding and provide them with the notice and letter containing information specific to the employee’s E-Verify case. The Employer agrees to provide both the English and the translated notice and letter for employees with limited English proficiency to employees. The Employer agrees to provide written referral instructions to employees and instruct affected employees to bring the English copy of the letter to the SSA. The Employer must allow employees to contest the finding, and not take adverse action against employees if they choose to contest the finding, while their case is still pending. Further, when employees contest a tentative nonconfirmation based upon a photo mismatch, the Employer must take additional steps (see Article III.B. below) to contact DHS with information necessary to resolve the challenge. 13. The Employer agrees not to take any adverse action against an employee based upon the employee's perceived employment eligibility status while SSA or DHS is processing the verification request unless the Employer obtains knowledge (as defined in 8 C.F.R. § 274a.1(l)) that the employee is not work authorized. The Employer understands that an initial inability of the SSA or DHS automated verification system to verify work authorization, a tentative nonconfirmation, a case in continuance (indicating the need for additional time for the government to resolve a case), or the finding of a photo mismatch, does not establish, and should not be interpreted as, evidence that the employee is not work authorized. In any of such cases, the employee must be provided a full and fair opportunity to contest the finding, and if he or she does so, the employee


may not be terminated or suffer any adverse employment consequences based upon the employee’s perceived employment eligibility status (including denying, reducing, or extending work hours, delaying or preventing training, requiring an employee to work in poorer conditions, withholding pay, refusing to assign the employee to a Federal contract or other assignment, or otherwise assuming that he or she is unauthorized to work) until and unless secondary verification by SSA or DHS has been completed and a final nonconfirmation has been issued. If the employee does not choose to contest a tentative nonconfirmation or a photo mismatch or if a secondary verification is completed and a final nonconfirmation is issued, then the Employer can find the employee is not work authorized and terminate the employee’s employment. Employers or employees with questions about a final nonconfirmation may call E-Verify at 1-888-464-4218 (customer service) or 1-888-897-7781 (worker hotline). 14. The Employer agrees to comply with Title VII of the Civil Rights Act of 1964 and section 274B of the INA as applicable by not discriminating unlawfully against any individual in hiring, firing, employment eligibility verification, or recruitment or referral practices because of his or her national origin or citizenship status, or by committing discriminatory documentary practices. The Employer understands that such illegal practices can include selective verification or use of E-Verify except as provided in part D below, or discharging or refusing to hire employees because they appear or sound “foreign” or have received tentative nonconfirmations. The Employer further understands that any violation of the immigration-related unfair employment practices provisions in section 274B of the INA could subject the Employer to civil penalties, back pay awards, and other sanctions, and violations of Title VII could subject the Employer to back pay awards, compensatory and punitive damages. Violations of either section 274B of the INA or Title VII may also lead to the termination of its participation in E-Verify. If the Employer has any questions relating to the anti-discrimination provision, it should contact the Immigrant and Employee Rights Section, Civil Rights Division, U.S. Department of Justice at 1-800-255-8155 or 1-800-237-2515 (TTY) or go to https://www.justice.gov/ier. 15. The Employer agrees that it will use the information it receives from E-Verify only to confirm the employment eligibility of employees as authorized by this MOU. The Employer agrees that it will safeguard this information, and means of access to it (such as PINS and passwords), to ensure that it is not used for any other purpose and as necessary to protect its confidentiality, including ensuring that it is not disseminated to any person other than employees of the Employer who are authorized to perform the Employer's responsibilities under this MOU, except for such dissemination as may be authorized in advance by SSA or DHS for legitimate purposes. 16. The Employer agrees to notify DHS immediately in the event of a breach of personal information. Breaches are defined as loss of control or unauthorized access to E-Verify personal data. All suspected or confirmed breaches should be reported by calling 1-888-464-4218 or via email at [email protected]. Please use “Privacy Incident – Password” in the subject line of your email when sending a breach report to E-Verify. 17. The Employer acknowledges that the information it receives from SSA is governed by the Privacy Act (5 U.S.C. § 552a(i)(1) and (3)) and the Social Security Act (42 U.S.C. 1306(a)). Any person who obtains this information under false pretenses or uses it for any purpose other than as provided for in this MOU may be subject to criminal penalties. 18. The Employer agrees to cooperate with DHS and SSA in their compliance monitoring and evaluation of E-Verify, which includes permitting DHS, SSA, their contractors and



https://www.justice.gov/ier

other agents, upon reasonable notice, to review Forms I-9 and other employment records and to interview it and its employees regarding the Employer’s use of E-Verify, and to respond in a prompt and accurate manner to DHS requests for information relating to their participation in E-Verify. 19. The Employer shall not make any false or unauthorized claims or references about its participation in E-Verify on its website, in advertising materials, or other media. The Employer shall not describe its services as federally-approved, federally-certified, or federally-recognized, or use language with a similar intent on its website or other materials provided to the public. Entering into this MOU does not mean that E-Verify endorses or authorizes your E-Verify services and any claim to that effect is false. 20. The Employer shall not state in its website or other public documents that any language used therein has been provided or approved by DHS, USCIS or the Verification Division, without first obtaining the prior written consent of DHS. 21. The Employer agrees that E-Verify trademarks and logos may be used only under license by DHS/USCIS (see M-795 (Web)) and, other than pursuant to the specific terms of such license, may not be used in any manner that might imply that the Employer’s services, products, websites, or publications are sponsored by, endorsed by, licensed by, or affiliated with DHS, USCIS, or E-Verify. 22. The Employer understands that if it uses E-Verify procedures for any purpose other than as authorized by this MOU, the Employer may be subject to appropriate legal action and termination of its participation in E-Verify according to this MOU.

B. RESPONSIBILITIES OF FEDERAL CONTRACTORS

1. If the Employer is a Federal contractor with the FAR E-Verify clause subject to the employment verification terms in Subpart 22.18 of the FAR, it will become familiar with and comply with the most current version of the E-Verify User Manual for Federal Contractors as well as the E-Verify Supplemental Guide for Federal Contractors. 2. In addition to the responsibilities of every employer outlined in this MOU, the Employer understands that if it is a Federal contractor subject to the employment verification terms in Subpart 22.18 of the FAR it must verify the employment eligibility of any “employee assigned to the contract” (as defined in FAR 22.1801). Once an employee has been verified through E-Verify by the Employer, the Employer may not create a second case for the employee through E-Verify.

a. An Employer that is not enrolled in E-Verify as a Federal contractor at the time of a contract award must enroll as a Federal contractor in the E-Verify program within 30 calendar days of contract award and, within 90 days of enrollment, begin to verify employment eligibility of new hires using E-Verify. The Employer must verify those employees who are working in the United States, whether or not they are assigned to the contract. Once the Employer begins verifying new hires, such verification of new hires must be initiated within three business days after the hire date. Once enrolled in E-Verify as a Federal contractor, the Employer must begin verification of employees assigned to the contract within 90 calendar days after the date of enrollment or within 30 days of an employee’s assignment to the contract, whichever date is later. b. Employers enrolled in E-Verify as a Federal contractor for 90 days or more at the time of a contract award must use E-Verify to begin verification of employment


http://www.uscis.gov/USCIS/Verification/E-Verify/everifytrademark.pdf

eligibility for new hires of the Employer who are working in the United States, whether or not assigned to the contract, within three business days after the date of hire. If the Employer is enrolled in E-Verify as a Federal contractor for 90 calendar days or less at the time of contract award, the Employer must, within 90 days of enrollment, begin to use E-Verify to initiate verification of new hires of the contractor who are working in the United States, whether or not assigned to the contract. Such verification of new hires must be initiated within three business days after the date of hire. An Employer enrolled as a Federal contractor in E-Verify must begin verification of each employee assigned to the contract within 90 calendar days after date of contract award or within 30 days after assignment to the contract, whichever is later. c. Federal contractors that are institutions of higher education (as defined at 20 U.S.C. 1001(a)), state or local governments, governments of Federally recognized Indian tribes, or sureties performing under a takeover agreement entered into with a Federal agency under a performance bond may choose to only verify new and existing employees assigned to the Federal contract. Such Federal contractors may, however, elect to verify all new hires, and/or all existing employees hired after November 6, 1986. Employers in this category must begin verification of employees assigned to the contract within 90 calendar days after the date of enrollment or within 30 days of an employee’s assignment to the contract, whichever date is later. d. Upon enrollment, Employers who are Federal contractors may elect to verify employment eligibility of all existing employees working in the United States who were hired after November 6, 1986, instead of verifying only those employees assigned to a covered Federal contract. After enrollment, Employers must elect to verify existing staff following DHS procedures and begin E-Verify verification of all existing employees within 180 days after the election. e. The Employer may use a previously completed Form I-9 as the basis for creating an E-Verify case for an employee assigned to a contract as long as:

i. That Form I-9 is complete (including the SSN) and complies with Article II.A.6,

ii. The employee’s work authorization has not expired, and iii. The Employer has reviewed the Form I-9 information either in person or

in communications with the employee to ensure that the employee’s Section 1, Form I-9 attestation has not changed (including, but not limited to, a lawful permanent resident alien having become a naturalized U.S. citizen).

f. The Employer shall complete a new Form I-9 consistent with Article II.A.6 or update the previous Form I-9 to provide the necessary information if:

i. The Employer cannot determine that Form I-9 complies with Article II.A.6, ii. The employee’s basis for work authorization as attested in Section 1 has

expired or changed, or iii. The Form I-9 contains no SSN or is otherwise incomplete.

Note: If Section 1 of Form I-9 is otherwise valid and up-to-date and the form otherwise complies with Article II.C.5, but reflects documentation (such as a U.S. passport or Form I-551) that expired after completing Form I-9, the Employer shall


not require the production of additional documentation, or use the photo screening tool described in Article II.A.5, subject to any additional or superseding instructions that may be provided on this subject in the E-Verify User Manual.

g. The Employer agrees not to require a second verification using E-Verify of any assigned employee who has previously been verified as a newly hired employee under this MOU or to authorize verification of any existing employee by any Employer that is not a Federal contractor based on this Article.

3. The Employer understands that if it is a Federal contractor, its compliance with this MOU is a performance requirement under the terms of the Federal contract or subcontract, and the Employer consents to the release of information relating to compliance with its verification responsibilities under this MOU to contracting officers or other officials authorized to review the Employer’s compliance with Federal contracting requirements.

C. RESPONSIBILITIES OF SSA

1. SSA agrees to allow DHS to compare data provided by the Employer against SSA’s database. SSA sends DHS confirmation that the data sent either matches or does not match the information in SSA’s database. 2. SSA agrees to safeguard the information the Employer provides through E-Verify procedures. SSA also agrees to limit access to such information, as is appropriate by law, to individuals responsible for the verification of Social Security numbers or responsible for evaluation of E-Verify or such other persons or entities who may be authorized by SSA as governed by the Privacy Act (5 U.S.C. § 552a), the Social Security Act (42 U.S.C. 1306(a)), and SSA regulations (20 CFR Part 401). 3. SSA agrees to provide case results from its database within three Federal Government work days of the initial inquiry. E-Verify provides the information to the Employer. 4. SSA agrees to update SSA records as necessary if the employee who contests the SSA tentative nonconfirmation visits an SSA field office and provides the required evidence. If the employee visits an SSA field office within the eight Federal Government work days from the date of referral to SSA, SSA agrees to update SSA records, if appropriate, within the eight-day period unless SSA determines that more than eight days may be necessary. In such cases, SSA will provide additional instructions to the employee. If the employee does not visit SSA in the time allowed, E-Verify may provide a final nonconfirmation to the employer.

Note: If an Employer experiences technical problems, or has a policy question, the employer should contact E-Verify at 1-888-464-4218.

D. RESPONSIBILITIES OF DHS

1. DHS agrees to provide the Employer with selected data from DHS databases to enable the Employer to conduct, to the extent authorized by this MOU:

a. Automated verification checks on alien employees by electronic means, and b. Photo verification checks (when available) on employees.


2. DHS agrees to assist the Employer with operational problems associated with the Employer's participation in E-Verify. DHS agrees to provide the Employer names, titles, addresses, and telephone numbers of DHS representatives to be contacted during the E-Verify process. 3. DHS agrees to provide to the Employer with access to E-Verify training materials as well as an E-Verify User Manual that contain instructions on E-Verify policies, procedures, and requirements for both SSA and DHS, including restrictions on the use of E-Verify. 4. DHS agrees to train Employers on all important changes made to E-Verify through the use of mandatory refresher tutorials and updates to the E-Verify User Manual. Even without changes to E-Verify, DHS reserves the right to require employers to take mandatory refresher tutorials. 5. DHS agrees to provide to the Employer a notice, which indicates the Employer's participation in E-Verify. DHS also agrees to provide to the Employer anti-discrimination notices issued by the Immigrant and Employee Rights Section, Civil Rights Division, U.S. Department of Justice. 6. DHS agrees to issue each of the Employer’s E-Verify users a unique user identification number and password that permits them to log in to E-Verify. 7. DHS agrees to safeguard the information the Employer provides, and to limit access to such information to individuals responsible for the verification process, for evaluation of E-Verify, or to such other persons or entities as may be authorized by applicable law. Information will be used only to verify the accuracy of Social Security numbers and employment eligibility, to enforce the INA and Federal criminal laws, and to administer Federal contracting requirements. 8. DHS agrees to provide a means of automated verification that provides (in conjunction with SSA verification procedures) confirmation or tentative nonconfirmation of employees' employment eligibility within three Federal Government work days of the initial inquiry. 9. DHS agrees to provide a means of secondary verification (including updating DHS records) for employees who contest DHS tentative nonconfirmations and photo mismatch tentative nonconfirmations. This provides final confirmation or nonconfirmation of the employees' employment eligibility within 10 Federal Government work days of the date of referral to DHS, unless DHS determines that more than 10 days may be necessary. In such cases, DHS will provide additional verification instructions.

ARTICLE III REFERRAL OF INDIVIDUALS TO SSA AND DHS

A. REFERRAL TO SSA

1. If the Employer receives a tentative nonconfirmation issued by SSA, the Employer must print the notice as directed by E-Verify. The Employer must promptly notify employees in private of the finding and provide them with the notice and letter containing information specific to the employee’s E-Verify case. The Employer also agrees to provide both the English and the translated notice and letter for employees with limited English proficiency to employees. The Employer agrees to provide written referral instructions to employees and instruct affected employees to bring the English copy of


the letter to the SSA. The Employer must allow employees to contest the finding, and not take adverse action against employees if they choose to contest the finding, while their case is still pending. 2. The Employer agrees to obtain the employee’s response about whether he or she will contest the tentative nonconfirmation as soon as possible after the Employer receives the tentative nonconfirmation. Only the employee may determine whether he or she will contest the tentative nonconfirmation. 3. After a tentative nonconfirmation, the Employer will refer employees to SSA field offices only as directed by E-Verify. The Employer must record the case verification number, review the employee information submitted to E-Verify to identify any errors, and find out whether the employee contests the tentative nonconfirmation. The Employer will transmit the Social Security number, or any other corrected employee information that SSA requests, to SSA for verification again if this review indicates a need to do so. 4. The Employer will instruct the employee to visit an SSA office within eight Federal Government work days. SSA will electronically transmit the result of the referral to the Employer within 10 Federal Government work days of the referral unless it determines that more than 10 days is necessary. 5. While waiting for case results, the Employer agrees to check the E-Verify system regularly for case updates. 6. The Employer agrees not to ask the employee to obtain a printout from the Social Security Administration number database (the Numident) or other written verification of the SSN from the SSA.

B. REFERRAL TO DHS

1. If the Employer receives a tentative nonconfirmation issued by DHS, the Employer must promptly notify employees in private of the finding and provide them with the notice and letter containing information specific to the employee’s E-Verify case. The Employer also agrees to provide both the English and the translated notice and letter for employees with limited English proficiency to employees. The Employer must allow employees to contest the finding, and not take adverse action against employees if they choose to contest the finding, while their case is still pending. 2. The Employer agrees to obtain the employee’s response about whether he or she will contest the tentative nonconfirmation as soon as possible after the Employer receives the tentative nonconfirmation. Only the employee may determine whether he or she will contest the tentative nonconfirmation. 3. The Employer agrees to refer individuals to DHS only when the employee chooses to contest a tentative nonconfirmation. 4. If the employee contests a tentative nonconfirmation issued by DHS, the Employer will instruct the employee to contact DHS through its toll-free hotline (as found on the referral letter) within eight Federal Government work days. 5. If the Employer finds a photo mismatch, the Employer must provide the photo mismatch tentative nonconfirmation notice and follow the instructions outlined in paragraph 1 of this section for tentative nonconfirmations, generally. 6. The Employer agrees that if an employee contests a tentative nonconfirmation based upon a photo mismatch, the Employer will send a copy of the employee’s Form I-551, Form I-766, U.S. Passport, or passport card to DHS for review by:


a. Scanning and uploading the document, or b. Sending a photocopy of the document by express mail (furnished and paid for by the employer).

7. The Employer understands that if it cannot determine whether there is a photo match/mismatch, the Employer must forward the employee’s documentation to DHS as described in the preceding paragraph. The Employer agrees to resolve the case as specified by the DHS representative who will determine the photo match or mismatch. 8. DHS will electronically transmit the result of the referral to the Employer within 10 Federal Government work days of the referral unless it determines that more than 10 days is necessary. 9. While waiting for case results, the Employer agrees to check the E-Verify system regularly for case updates.

ARTICLE IV SERVICE PROVISIONS

A. NO SERVICE FEES

1. SSA and DHS will not charge the Employer for verification services performed under this MOU. The Employer is responsible for providing equipment needed to make inquiries. To access E-Verify, an Employer will need a personal computer with Internet access.

ARTICLE V MODIFICATION AND TERMINATION

A. MODIFICATION

1. This MOU is effective upon the signature of all parties and shall continue in effect for as long as the SSA and DHS operates the E-Verify program unless modified in writing by the mutual consent of all parties. 2. Any and all E-Verify system enhancements by DHS or SSA, including but not limited to E-Verify checking against additional data sources and instituting new verification policies or procedures, will be covered under this MOU and will not cause the need for a supplemental MOU that outlines these changes.

B. TERMINATION

1. The Employer may terminate this MOU and its participation in E-Verify at any time upon 30 days prior written notice to the other parties. 2. Notwithstanding Article V, part A of this MOU, DHS may terminate this MOU, and thereby the Employer’s participation in E-Verify, with or without notice at any time if deemed necessary because of the requirements of law or policy, or upon a determination by SSA or DHS that there has been a breach of system integrity or security by the Employer, or a failure on the part of the Employer to comply with established E-Verify procedures and/or legal requirements. The Employer understands that if it is a Federal contractor, termination of this MOU by any party for any reason may negatively affect the Page 10 of 13 E-Verify MOU for Web Services Employers | Revision Date 06/01/13

performance of its contractual responsibilities. Similarly, the Employer understands that if it is in a state where E-Verify is mandatory, termination of this by any party MOU may negatively affect the Employer’s business. 3. An Employer that is a Federal contractor may terminate this MOU when the Federal contract that requires its participation in E-Verify is terminated or completed. In such cases, the Federal contractor must provide written notice to DHS. If an Employer that is a Federal contractor fails to provide such notice, then that Employer will remain an E-Verify participant, will remain bound by the terms of this MOU that apply to non-Federal contractor participants, and will be required to use the E-Verify procedures to verify the employment eligibility of all newly hired employees. 4. The Employer agrees that E-Verify is not liable for any losses, financial or otherwise, if the Employer is terminated from E-Verify.

ARTICLE VI PARTIES

A. Some or all SSA and DHS responsibilities under this MOU may be performed by contractor(s), and SSA and DHS may adjust verification responsibilities between each other as necessary. By separate agreement with DHS, SSA has agreed to perform its responsibilities as described in this MOU. B. Nothing in this MOU is intended, or should be construed, to create any right or benefit, substantive or procedural, enforceable at law by any third party against the United States, its agencies, officers, or employees, or against the Employer, its agents, officers, or employees. C. The Employer may not assign, directly or indirectly, whether by operation of law, change of control or merger, all or any part of its rights or obligations under this MOU without the prior written consent of DHS, which consent shall not be unreasonably withheld or delayed. Any attempt to sublicense, assign, or transfer any of the rights, duties, or obligations herein is void. D. Each party shall be solely responsible for defending any claim or action against it arising out of or related to E-Verify or this MOU, whether civil or criminal, and for any liability wherefrom, including (but not limited to) any dispute between the Employer and any other person or entity regarding the applicability of Section 403(d) of IIRIRA to any action taken or allegedly taken by the Employer. E. The Employer understands that its participation in E-Verify is not confidential information and may be disclosed as authorized or required by law and DHS or SSA policy, including but not limited to, Congressional oversight, E-Verify publicity and media inquiries, determinations of compliance with Federal contractual requirements, and responses to inquiries under the Freedom of Information Act (FOIA). F. The individuals whose signatures appear below represent that they are authorized to enter into this MOU on behalf of the Employer and DHS respectively. The Employer understands that any inaccurate statement, representation, data or other information provided to DHS may subject the Employer, its subcontractors, its employees, or its representatives to: (1) prosecution for false statements pursuant to 18 U.S.C. 1001 and/or; (2) immediate termination of its MOU and/or; (3) possible debarment or suspension. G. The foregoing constitutes the full agreement on this subject between DHS and the


Employer.

To be accepted as an E-Verify participant, you should only sign the Employer’s Section of the signature page. If you have any questions, contact E-Verify at 1-888-464-4218.

Approved by:

E-Verify Employer Name (Please Type or Print) Title

Signature Date

Department of Homeland Security – Verification Division Name (Please Type or Print) Title

Signature Date

Information Required for E-Verify

Information relating to your Company: Company Name: Company Facility Address: Company Alternate Address:

County or Parish: Page 12 of 13 E-Verify MOU for Web Services Employers | Revision Date 06/01/13

Employer Identification Number: North American Industry

Classification Systems

Code: Parent Company: Number of Employees:

Number of Sites Verified for: Are you verifying for more than one site? If yes, please provide the number of sites verified for in each State:

State Number of Site(s) sites

Information relating to the Program Administrator(s) for your Company on policy questions or operational problems:

Name:

Telephone Number:

Fax Number:

E-mail Address:

Name:

Telephone Number:

Fax Number:

E-mail Address:


Tab 12

Contact Information Bobby Beasley, Supervisor

of Elections Walton County [email protected]

Address 571 US Hwy 90 East, Suite 102

DeFuniak Springs, FL 32433

Tel: (850) 892-8112 Fax: (850) 892-8113

Bobby Beasley Supervisor of Elections

Walton County

April 15, 2021

Kimberly O'Mera, District Manager Naturewalk CDD 120 Richard Jackson Blvd, Ste 220 Panama City Beach, FL 32407

Re: Naturewalk Community Development District

Dear Ms. O'Mera:

This letter is in response to your request for the number of registered voters within the

NatureWalk Community Development District.

We are showing that there were 245 (two hundred and forty-five) registered voters in that

district as of April 15, 2021.

Sincerely,

Bobby Beasley, Supervisor of Elections

votewalton.com

https://votewalton.com


Bobby Beasley Date 4/15/2021 Supervisor of Elections WALTON COUNTY, FL

Time 01:28 PM Active Voters by District/Precinct

Nature Walk Dem Rep NPA Other Total White Black Hispanic Other Male Female Other

530 Pt Washington - Vision Chu re 27 164 ===

45 9 245 ====

237 0 7 107 ===

136 2 ===

Nature Walk 27 164 45 9 245 237 0 I 7 107 136 2 === ===

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naturewalk community development district

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