MINUTES OF MEETING ANABELLE ISLAND COMMUNITY DEVELOPMENT DISTRICT The regular meeting of the Board of Supervisors of the Anabelle Island Community Development District was held Tuesday, August 15, 2023 at 2:00 p.m. at Plantation Oaks Amenity Center, 845 Oakleaf Plantation Parkway, Orange Park, Florida. Present and constituting a quorum: Jim McDade by phone Chairman Derek Citino Vice Chairman Darren Gowens Supervisor Rose Bock Supervisor Also present were: Marilee Giles District Manager Jennifer Kilinski District Counsel David Taylor by phone District Engineer FIRST ORDER OF BUSINESS Roll Call Ms. Giles called the meeting to order. Three Board members were present in person constituting a quorum. SECOND ORDER OF BUSINESS Audience Comments There being no comments, the next item followed. THIRD ORDER OF BUSINESS Organizational Matters A. Acceptance of Resignation Letters Ms. Giles presented the resignation letter from Supervisor Joe Jennesse on page seven of the agenda. She asked for a motion to accept the resignation. DocuSign Envelope ID: D8345BF6-32BC-412E-A26D-B42B4B78D4BE August 15, 2023 Anabelle Island CDD 2 On MOTION by Ms. Bock, seconded by Mr. Gowens, with all in favor, Accepting the Resignation Letter from Joseph Jennesse, was approved. B. Appointment of New Supervisor(s) to Fill Unexpired Terms(s) of Office Ms. Giles asked if there was a recommendation for appointment of a new Supervisor at this time. Mr. Citino recommended appointing Maston Crapps. On MOTION by Mr. Citino, seconded by Mr. Gowens, with all in favor, the Appointment of Mr. Maston Crapps as New Supervisor, was approved. C. Oath of Office for Newly Appointed Supervisor(s) Items C was tabled to a future meeting. D. Resolution 2023-01, Election of Officers Ms. Giles stated until Mr. Crapps is sworn in, I don’t know that we can make him an officer on this yet so we will table that if that is alright. FOURTH ORDER OF BUSINESS Consideration of Minutes of the June 13, 2023 Meeting Ms. Giles asked if there were any comments, corrections, or changes to the July 13, 2023 meeting minutes. The Board had no changes to the minutes. On MOTION by Ms. Bock, seconded by Mr. Gowens, with all in favor, the Minutes of the June 13, 2023 Meeting, were approved. FIFTH ORDER OF BUSINESS Ratification of Pay Requisitions (21-22) Ms. Giles stated on page 15 of the agenda are pay requisitions 21-22. She noted David is on the line if he is needed to go over any of these, but if not, I would ask for a motion to ratify. On MOTION by Mr. Citino, seconded by Mr. Gowens, with all in favor, Pay Requisitions (21-22), were ratified. DocuSign Envelope ID: D8345BF6-32BC-412E-A26D-B42B4B78D4BE August 15, 2023 Anabelle Island CDD 3 SIXTH ORDER OF BUSINESS Fiscal Year 2024 Budget A. Overview of Budget Ms. Giles stated on page 27 of the agenda is the Fiscal Year 2024 budget. Today we will have a public hearing to consider both the annual appropriations and adopting the budget and then also consider imposing special assessments and certifying assessment roll. This is an overview of the budget. You will see on page 30 at the bottom is a table. This budget has two funds right now, the general fund budget which is for the O&M and then debt service fund. At the bottom is platted on roll at 211 and then unplatted with direct bill is 158. B. Board Discussion Ms. Giles stated we will have to open and close the public hearing but asked if there was any Board discussion before they do that. Ms. Kilinski stated the important thing for the Board to know is on page 2 of the agenda is the assessment table, broken down to platted units which is 211 so there is $752 O&M assessment net with a gross up on collection cost from Clay County. It is going to be $800 a unit per year. Then there is an admin assessment on the undeveloped property at 158 units, gross per unit collected is $326 undeveloped unit directly collected by you at $51,000. The 211 will actually be collected on the tax roll which means it will go on the tax bill and we won’t have to directly send them anything. The $51,000 is going to be the assessment amount. C. Public Hearing Adopting the Budget for Fiscal Year 2024 Ms. Giles asked for a motion to open the public hearing. On MOTION by Mr. Citino, seconded by Mr. Gowens, with all in favor, Opening the Public Hearing, was approved. Ms. Giles stated there are no members of the public present so looking for a motion to close the public hearing. On MOTION by Mr. Citino, seconded by Mr. Gowens, with all in favor, Closing the Public Hearing, was approved. DocuSign Envelope ID: D8345BF6-32BC-412E-A26D-B42B4B78D4BE August 15, 2023 Anabelle Island CDD 4 1. Consideration of Resolution 2023-03, Relating to the Annual Appropriations and Adopting the Budget for Fiscal Year 2024 Ms. Giles stated Resolution 2023-03 is the Boards opportunity to have open discussion. Unless there are any other comments or questions or the Board wants to further discuss the budget, she asked for a motion to adopt Resolution 2023-03. Mr. McDade asked about billing normal inflation into the budget. What are we doing in that regard. Ms. Kilinski stated this year my understanding and seeing some of the correspondence is that KB from a disclosure perspective has a target O&M of $800 per unit times 211 units for this fiscal year so the numbers that are in the 2024 Fiscal Year budget include at least in the admin portion the admin numbers based on a couple of years of history and the field has got the expectation that we are going to have $100,000 landscaping maintenance, $20,000 in contingency and amenity center assumptions assuming that it is going to open in February. She stated next year these numbers will definitely go up as you will have a full year of operation. This year was more of a targeted flat assessment rate for platted units with the expectation to be deficit funded by KB for any difference between those two amounts this year. Next year you will probably want to come in a little closer to the actual numbers because you will have more likely all of the units platted or pretty close to it. Ms. Giles stated there is really only one provider in Florida for insurance traditionally but at another District we actually found another provider, a second provider that used to provide insurance for CDDs that got out of the market and is back in the market and their rates are pretty competitive. Ms. Giles also stated on the budget there are columns that read actuals and projected and projected by September 30th so once the District starts paying some of these bills, we will be able to monitor the actuals for those lines. She noted her and Derek went over all of these lines when approving the budget. The landscape line is accurate for what we have now with ULO and some of the other ones were just a really good, estimated costs but as invoices start coming in, we will be able to monitor the actual lines and will have a better feel for it going into 2025. On MOTION by Mr. Citino, seconded by Mr. Gowens, with all in favor, Resolution 2023-03, Relating to the Annual Appropriations and Adopting the Budget for Fiscal Year 2024, was approved. DocuSign Envelope ID: D8345BF6-32BC-412E-A26D-B42B4B78D4BE August 15, 2023 Anabelle Island CDD 5 2. Consideration of Resolution 2023-04, Imposing Special Assessments and Certifying an Assessment Roll for Fiscal Year 2024 Ms. Kilinski stated this resolution levies the assessment securing the budget that you just approved. In particular, you will want to notice section two and section three which is the imposition of assessments but then this tax roll versus direct bill assessment and the way the direct bill assessment is contemplated right now. She noted they are due 50% December 1st largely because of insurance. We do not get tax roll assessments in right away because bills do not even go out until November and then do it more on a 25% basis. This is the first time we are levying assessments which is why we are having the assessment hearing. On MOTION by Mr. Citino, seconded by Mr. Gowens, with all in favor, Resolution 2023-04, Imposing Special Assessments and Certifying an Assessment Roll for Fiscal Year 2024, was approved. D. Consideration of Deficit Funding Agreement Ms. Giles stated on page 49 is an agreement between the District and KB Jacksonville stating that the District and the landowner desire to arrange for direct collection of the District Special Assessments. Ms. Kilinski stated this is intended to be the deficit funding agreement, so we talked about the difference between the $397,000 and $210,000 just recognizing to the extent there is a gap. Mr. Citino stated we do not know if that gap is real but if there is a gap then the developer will stand up and pay for the gap. KB Home will deficit fund. On MOTION by Mr. Citino, seconded by Mr. Gowens, with all in favor, the Consideration of Deficit Funding Agreement with KB Home Jacksonville, LLC and Anabelle Island CDD, was approved. SEVENTH ORDER OF BUSINESS Staff Reports A. Attorney Ms. Kilinski had nothing further to report but stated she would be happy to answer any questions. She noted the memo on ethics training that is required starting next calendar year and the intention will be to do a one stop shop for the Board. B. Engineer Mr. Taylor had nothing to report. DocuSign Envelope ID: D8345BF6-32BC-412E-A26D-B42B4B78D4BE August 15, 2023 Anabelle Island CDD 6 C. Manager – Discussion of Fiscal Year 2024 Meeting Schedule Ms. Giles stated on page 56 is the proposed Fiscal Year 2024 meeting schedule. I did not see any conflicts with any holidays on that so unless there are any conflicts from the Board, I am looking for a motion to accept it. On MOTION by Mr. Citino, seconded by Mr. Gowens, with all in favor, the Fiscal Year 2024 Meeting Schedule, was approved. EIGHTH ORDER OF BUSINESS Supervisors Requests There being no comments, the next item followed. NINTH ORDER OF BUSINESS Audience Comments There being no comments, the next item followed. TENTH ORDER OF BUSINESS Consideration of Funding Request No. 20 Ms. Giles presented funding request No. 20 for $13,702.97. On MOTION by Mr. Citino, seconded by Ms. Bock, with all in favor, Funding Request No. 20, was approved. ELEVENTH ORDER OF BUSINESS Financial Statements as of July 31, 2023 Ms. Giles presented the financial statements as of July 31, 2023. I did not see any unusual variances there. TWELFTH ORDER OF BUSINESS Next Scheduled Meeting – September 12, 2023 @ 2:00 p.m. Ms. Giles stated the next scheduled meeting will be September 12, 2023 at 2:00 p.m. THIRTEENTH ORDER OF BUSINESS Adjournment On MOTION by Mr. Citino, seconded by Mr. Gowens, with all in favor, the meeting was adjourned. DocuSign Envelope ID: D8345BF6-32BC-412E-A26D-B42B4B78D4BE August 15, 2023 Anabelle Island CDD 7 Secretary/Assistant Secretary Chairman/Vice Chairman DocuSign Envelope ID: D8345BF6-32BC-412E-A26D-B42B4B78D4BE