VillaMar
Community Development District ANNUAL FINANCIAL REPORT
September 30, 2022

VillaMar Community Development District ANNUAL FINANCIAL REPORT
September 30, 2022 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	10
Statement of Activities	11
Fund Financial Statements:
Balance Sheet – Governmental Funds	12
Reconciliation of Total Governmental Fund Balances
to Net Position of Governmental Activities	13
Statement of Revenues, Expenditures and Changes in Fund
Balances – Governmental Funds	14
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds
to the Statement of Activities	15
Statement of Revenues, Expenditures and Changes in Fund
Balances – Budget and Actual – General Fund	16
Notes to Financial Statements	17-31
INDEPENDENT AUDITORS’ 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	32-33
MANAGEMENT LETTER	34-36
INDEPENDENT ACCOUNTANTS’ REPORT/COMPLIANCE WITH
SECTION 218.415, FLORIDA STATUTES	37

REPORT OF INDEPENDENT AUDITORS

To the Board of Supervisors
VillaMar Community Development District Winter Haven, Florida

Report on Audit of the Financial Statements

Opinion

We have audited the financial statements of the governmental activities and each major fund of VillaMar Community Development District (the “District”), as of and for the year ended September 30, 2022, and the related notes to financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents.

In our opinion, the accompanying financial statements present fairly, in all material respects, the respective financial position of the governmental activities and each major fund of VillaMar Community Development District as of September 30, 2022, 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.

Basis for Opinion

We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS), and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the District and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Responsibilities of Management 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; and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

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To the Board of Supervisors
VillaMar Community Development District

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the District’s ability to continue as a going concern for one year beyond the financial statement date, including currently known information that may raise substantial doubt thereafter.

Auditor’s Responsibility for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore, is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users made on the basis of these financial statements.

In performing an audit in accordance with GAAS and Government Auditing Standards, we:

Exercise professional judgement and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the District’s internal control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgement, there are conditions or events, considered in the aggregate, that raise substantial doubt about the District’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.

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To the Board of Supervisors
VillaMar Community Development District

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that Management’s Discussion and Analysis be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge 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 September 28, 2023 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 VillaMar Community Development District’s internal control over financial reporting and compliance.

Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL
Fort Pierce, Florida September 28, 2023

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Management’s discussion and analysis of VillaMar Community Development District’s (the “District”) financial performance provides an objective and easily readable analysis of the District’s financial activities. 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.

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, culture/recreation 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.

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 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, reconciliations are 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, 2022.

The District’s total assets exceeded total liabilities by $3,909,901 (net position). Net investment in capital assets was $3,756,901. Restricted net position was $99,960 and unrestricted net position was $53,040.

Governmental activities revenues totaled $4,618,443 while governmental activities expenses and conveyances totaled $3,424,942.

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

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
	2022		2021	

Current assets	
$	476,616		
$	3,082,518	
Restricted assets	1,410,491		1,966,389	
Capital assets		23,477,143 			17,247,055 	
Total Assets		25,364,250 			22,295,962 	
Current liabilities	1,288,669		4,730,363	
Non-current liabilities		20,165,680 			14,849,199 	
Total Liabilities		21,454,349 			19,579,562 	

Net Position				
Net investment in capital assets	3,756,901	2,566,547	
Restricted	99,960	227,262	
Unrestricted		53,040 		(77,409)	
Total Net Position	 $	3,909,901 	 $	2,716,400 	

The decrease in current assets is related to the decrease in due from developer in the current year.

The decrease in restricted assets and the increase in capital assets is related to the issuance of long-term debt and the associated capital project in the current year.

The decrease in current liabilities is related to the decrease in contracts/retainage payable in the current year.

The increase in non-current liabilities is related to the issuance of long-term debt in the current year.

The increase in net position is the result of revenues exceeding expenses in the current year.

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

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
	2022		2021	
Program Revenues				
Charges for services	$	1,414,858		$	977,599	
Operating contributions	6,988		23,424	
Capital contributions	3,191,610		1,280,676	
General Revenues				
Miscellaneous revenues	28	-	
Investment earnings		4,959 		214 	
Total Revenues		4,618,443 		2,281,913 	

Expenses				
General government	126,855	141,983	
Physical environment	416,064	134,486	
Culture/recreation	71,442	31,868	
Interest and other charges		1,045,549 		836,306 	
Total Expenses		1,659,910 		1,144,643 	
Conveyance of capital assets		(1,765,032)		- 	
Change in Net Position	1,193,501	1,137,270	
Net Position - Beginning of Period		2,716,400 		1,579,130 	
Net Position - End of Period	 $	3,909,901 	 $	2,716,400 	

The increase in capital contributions is related to the capital project activity in the current year.

The decrease in general government is related to the decrease in boundary amendment and legal advertising expenses in the current year.

The increase in physical environment is related to the increase in depreciation in the current year.

The increase in interest and other charges is related to the cost of issuance in the current year.

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Capital Assets Activity

The following schedule provides a summary of the District’s capital assets as of September 30, 2022 and 2021:

Governmental Activities
	Description			2022			2021		
Construction in progress	$  17,167,950	$  17,200,687	
Buildings and improvements	503,609	-	
Improvements other than buildings	1,918,512	-	
Infrastructure	4,000,097	-	
Equipment	106,368	46,368	
Accumulated depreciation		(219,393)		- 	
Total	 $  23,477,143 	 $  17,247,055 	

Capital asset activity for the year consisted of additions to construction in progress of
$8,154,513, improvements other than buildings of $1,918,512, buildings and improvements,
$503,609, infrastructure of $4,000,097, and equipment of $60,000. Depreciation was $219,393, and transfers from construction in progress were $8,187,250.

General Fund Budgetary Highlights

Actual expenditures exceeded the final budget in the current year because a financed purchase was initiated in the current year.

The September 30, 2022 budget was not amended.

Debt Management

Governmental Activities debt includes the following:

In June 2019, the District issued $7,180,000 Special Assessment Bonds, Series 2019. These bonds were issued to finance a portion of the cost of the planning, financing, acquisition, construction, installation, and equipping of the Series 2019 Project. The balance outstanding on the Series 2019 Bonds at September 30, 2022 was $6,230,000.

In November 2020, the District issued $6,500,000 Special Assessment Bonds, Series 2020. These bonds were issued to finance a portion of the cost of the planning, financing, acquisition, construction, installation, and equipping of the Series 2020 Project. The balance outstanding on the Series 2020 Bonds at September 30, 2022 was $6,375,000.

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Debt Management (Continued)

In February 2022, the District issued $3,040,000 Special Assessment Bonds, Series 2022 (Phase 3 Project). These bonds were issued to finance a portion of the cost of the planning, financing, acquisition, construction, installation, and equipping of the Phase 3 Project. The balance outstanding on the Series 2022 Bonds(Phase 3) at September 30, 2022 was
$3,040,000.

In February 2022, the District issued $4,295,000 Special Assessment Bonds, Series 2022 (Phase 4 Project). These bonds were issued to finance a portion of the cost of the planning, financing, acquisition, construction, installation, and equipping of the Phase 4 Project. The balance outstanding on the Series 2022 Bonds(Phase 4) at September 30, 2022 was
$4,295,000.

During the fiscal year ended September 30, 2022, the Developer advanced the District
$1,186,614 to fund certain capital project expenditures. The Developer will be repaid from the proceeds of a future long-term debt issuance. The balance outstanding on the Developer Advance at September 30, 2022 was $578,098.

Economic Factors and Next Year’s Budget

VillaMar Community Development District will continue with capital projects. In addition VillaMar Community Development District issued $7,940,000 Special Assessment Bonds, Series 2023 in May 2023. The District cannot anticipate the effect of the financial position or results of operations of the District in fiscal year 2023.

Request for Information

The financial report is designed to provide a general overview of VillaMar 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 VillaMar Community Development District’s Finance Department at Government Management Services, LLC, 5385 North Nob Hill Road, Sunrise, Florida 33351.

VillaMar Community Development District STATEMENT OF NET POSITION
September 30, 2022

ASSETS	
Current Assets	
Cash	
Assessments receivable	
Due from developer	
Prepaid expenses	
Total Current Assets	
Non-Current Assets	
Restricted Assets	
Investments	
Capital Assets, Not Being Depreciated	
Construction in progress	
Capital Assets, Being Depreciated	
Buildings and improvements	
Improvements other than buildings	
Infrastructure	
Equipment	
Accumulated depreciation	
Total Non-Current Assets	
Total Assets	

LIABILITIES	
Current Liabilities	
Accounts payable and accrued expenses	
Contracts/retainage payable	
Bonds payable	
Financed purchase	
Accrued interest	
Total Current Liabilities	
Non-Current Liabilities	
Bonds payable, net	
Developer advance	
Financed purchase	
Total Non-current Laibilities	
Total Liabilities	

NET POSITION	
Net investment in capital assets	
Restricted for debt service	
Unrestricted	
Total Net Position	

See accompanying notes to financial statements.

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Governmental Activities

$	54,874	
172,756	
224,262	
	24,724 	
	476,616 	

1,410,491

17,167,950

503,609	
1,918,512	
4,000,097	
106,368	
      (219,393)	
     24,887,634 	
     25,364,250 	

29,570	
450,438	
425,000	
15,921	
       367,740 	
      1,288,669 	

19,508,503	
578,098	
       79,079 	
     20,165,680 	
     21,454,349 	

3,756,901	
99,960	
	53,040 	
 $	3,909,901 	

VillaMar Community Development District STATEMENT OF ACTIVITIES
For the Year Ended September 30, 2022

$	(126,855)	
(416,064)	
(71,442)	
	(1,045,549)	
 $ (1,659,910)	

$	144,235	
248,818	
56,112	
	965,693 	
 $  1,414,858 	

$	2,244	
3,871	
873	
	- 	
 $	6,988 	

$	-	
3,191,610	
-	
	- 	
 $	3,191,610 	

$	19,624	
3,028,235	
(14,457)	
	(79,856)	
2,953,546	

General Revenues	
Miscellaneous revenues	
Investment income	
Total General Revenues	

28	
       4,959 	
       4,987 	

Functions/Programs	
Governmental Activities	
General government	
Physical environment	
Culture/recreation	
Interest and other charges	
Total Governmental Activities	

Program Revenues	

Charges for Services	Operating Grants and Contributions	Capital Grants and Contributions	

Net (Expenses)	
Revenues and	
Change in	
Net Position	

Governmental Activities	

Expenses

Conveyance of capital assets	(1,765,032)	
Change in Net Position	1,193,501	
Net Position - October 1, 2021		2,716,400 	
Net Position - September 30, 2022	 $	3,909,901 	

See accompanying notes to financial statements.

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VillaMar Community Development District BALANCE SHEET –
GOVERNMENTAL FUNDS
September 30, 2022

Total	
Governmental	
Funds	

Capital	
Projects	

Debt

1,410,491	
 $  1,887,107 	

General	Service

ASSETS		
Cash	$	53,909		$	-	
Assessments receivable	424		172,332	
Due from developer	3,553		-	
Prepaid expenses	24,724		-	
Restricted assets				

 	
$	965	
-	
220,709	
-	

 	
$	54,874	
172,756	
224,262	
24,724	

-		1,124,960		285,531	
 $	82,610 		 $	1,297,292 		 $	507,205 	

Investments, at fair value Total Assets

LIABILITIES AND FUND BALANCES

LIABILITIES		
Accounts payable and accrued expenses	$	29,570	$	-	$	-	
Contracts and retainage payable	-	-	450,438	
Total Liabilities	
29,570	
-	
450,438	

$	29,570	
450,438	
480,008	

24,724

  

FUND BALANCES		
Nonspendable-prepaid expenses	24,724	-	-	
Restricted:		
Debt service	-	1,297,292	-	
Capital projects	-	-	56,767	
Unassigned	28,316	-	-	
Total Fund Balances	53,040	1,297,292	56,767	

1,297,292	
56,767	
28,316	
1,407,099	

Total Liabilities and Fund Balances

$	82,610

$	1,297,292	$

507,205

$  1,887,107

See accompanying notes to financial statements.

VillaMar Community Development District RECONCILIATION OF TOTAL GOVERNMENTAL FUND BALANCES
TO NET POSITION OF GOVERNMENTAL ACTIVITIES
September 30, 2022

Total Governmental Fund Balances

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

Long-term liabilities, bonds payable, $(19,940,000), net of bond discount, net,	
$6,497, developer advance, $(578,098) and financed purchase,	
$(95,000), are not due and payable in the current period, and therefore,	
are not reported at the fund level.	

$	1,407,099

Capital assets, construction in progress, $17,167,950,	
buildings and improvements, $503,609, infrastructure, $4,000,097,	
improvements other than buildings, $1,918,512, and equipment, $106,368,	
net of accumulated depreciation, $(219,393), used in governmental	
activities are not current financial resources, and therefore, are not reported	
at the fund level.	

23,477,143

(20,606,601)

Accrued interest expense for long-term debt is not a current financial use, and	
therefore, is not reported at the fund level.	

	(367,740)

Net Position of Governmental Activities	 $	3,909,901 

See accompanying notes to financial statements.

VillaMar Community Development District STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES – GOVERNMENTAL FUNDS
For the Year Ended September 30, 2022

Total
Debt	Capital	Governmental

REVENUES	
Special assessments	
Developer contributions	
Miscellaneous revenues	
Investment income	
Total Revenues	

$	449,165	
6,988	
28	
        - 	
    456,181 	

$	965,693	
-	
-	
	3,767 	
	969,460 	

$	-	
3,191,610	
-	
     1,192 	
   3,192,802 	

$	1,414,858	
3,198,598	
28	
      4,959 	
   4,618,443 	

	General	 	Service	 	Projects	 	Funds	

EXPENDITURES	
Current	
General government	
Physical environment	
Culture/recreation	
Capital outlay	
Debt service	
Principal	
Interest	
Other	
Total Expenditures	

126,820	
218,776	
49,337	
60,000	

-	
-	
-	
-	

126,855	
218,776	
49,337	
8,214,513	

35
-
- 8,154,513

7,468	
5,478	
        - 	
    467,879 	

255,000	
536,919	
        - 	
    791,919 	

2,804,447	
-	
    359,091 	
  11,318,086 	

3,066,915	
542,397	
    359,091 	
   12,577,884 	

Excess of revenues over/(under) expenditures 	(11,698) 	177,541  	(8,125,284) 	(7,959,441)

OTHER FINANCING SOURCES/(USES)	
Issuance of long-term debt	
Initiate financed purchase	
Transfer in	
Transfer out	
Total Other Financing Sources/(Uses)	

-	
60,000	
-	
        - 	
     60,000 	

441,866	
-	
-	
   (184,450)	
    257,416 	

8,079,748	
-	
184,450	
        - 	
   8,264,198 	

8,521,614	
60,000	
184,450	
    (184,450)	
   8,581,614 	

Net Change in Fund Balance	48,302	434,957	138,914	622,173	
Fund Balances - October 1, 2021		4,738 		862,335 		(82,147)		784,926 	
Fund Balances - September 30, 2022	 $	53,040 	 $ 1,297,292 	 $	56,767 	 $	1,407,099 	

See accompanying notes to financial statements.

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, 2022

Net Change in Fund Balances - Total Governmental Funds

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

Repayment of principal is an expenditure at the fund level, but the repayment	
reduces long-term liabilities at the government-wide level.	

The issuance of long-term debt, $(8,521,614), and financed purchase, $(60,000),	
are recognized as other financing sources at the fund level, however,	
they increase liabilities at the government-wide level.	

Governmental funds report bond discounts as expenditures. However, in the	
Statement of Activities, the cost is allocated as amortization expense.	

$	622,173

Governmental funds report capital outlay as expenditures. However, in the	
Statement of Activities, the cost of those assets is allocated over their estimated	
useful lives as depreciation expense. This is the amount that capital outlay, $8,214,513	
exceeds depreciation, $(219,393), in the current period.	

7,995,120

3,066,915

(8,581,614)

(235)

The conveyence of capital assets to another entity does not use current resources,	
and therefore, is not recognized at the fund level.	(1,765,032)	

In the Statement of Activities, interest is accrued on outstanding bonds;		
whereas in the governmental funds, interest expenditures are reported when		
due. This is the change in accrued interest in the current period.		(143,826)	

Change in Net Position of Governmental Activities	 $	1,193,501 

See accompanying notes to financial statements.

$	448,445	
-	
	- 	
448,445	

$	448,445	
-	
	-		
448,445	

$	449,165		
$	720	
6,988		6,988	
	28 			28 	
456,181		7,736	

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES – BUDGET AND ACTUAL – GENERAL FUND
For the Year Ended September 30, 2022

	Variance with	
	Final Budget	
Original	Final		Positive	
Budget	Budget	Actual	(Negative)	

Revenues	
Special assessments	
Developer contributions	
Miscellaneous revenues	
Total Revenues	

140,725	
249,900	
57,820	
-	

140,725	
249,900	
57,820	
-	

126,820	
218,776	
49,337	
60,000	

13,905	
31,124	
8,483	
(60,000)	

Expenditures	
Current	
General government	
Physical environment	
Culture/recreation	
Capital outlay	
Debt service	
Principal	
Interest	
Total Expenditures	

-	-	7,468	(7,468)
	-  	-  	5,478  	(5,478)
	448,445  	448,445  	467,879  	(19,434)

Revenues over/(under) Expenditures	-	-	(11,698)	(11,698)

Other Financing Sources/(Uses)	
Initiate financed purchase	

-	-	60,000	60,000

-	-	4,738	4,738	

 $	-   $	-   $	53,040   $	53,040 	

Net Change in Fund Balances	-	-	48,302	48,302 Fund Balances - October 1, 2021
Fund Balances - September 30, 2022

See accompanying notes to financial statements.

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The financial statements of 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.

Reporting Entity

The District was established on November 30, 2018, pursuant to the Uniform Community Development District Act of 1980, Chapter 190, Florida Statutes, and City of Winter Haven Ordinance 018-70, 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 authorized to issue bonds for the purpose, among others, of financing, funding, planning, establishing, acquiring, constructing district roads, landscaping, and other basic infrastructure projects within or outside the boundaries of the VillaMar Community Development District. The District is governed by a Board of Supervisors who are elected by the landowners of the District. The District operates within the criteria established by Chapter 190, Florida Statutes.

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

Based upon the application of the above-mentioned criteria as set forth in Governmental Accounting Standards the District has identified no component units.

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

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Measurement Focus and Basis of Accounting (Continued)

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 all 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 developer contributions. 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.

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.

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

2. Measurement Focus and Basis of Accounting (Continued)

b. Fund Financial Statements (Continued) Governmental Funds
The District reports fund balance according to 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 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 an 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.

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Measurement Focus and Basis of Accounting (Continued)

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.

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 are 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.

Basis of Presentation

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.

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Basis of Presentation (Continued)

Governmental Major Funds (Continued)

Debt Service Fund – The Debt Service Fund accounts for debt service requirements to retire the Special Assessment Revenue Bonds issued to finance a portion of the cost of acquisition, construction, installation, and equipping of District projects.

Capital Projects Fund – The Capital Projects Fund accounts for acquisition and construction of infrastructure improvements located within the boundaries of the District.

Non-current Governmental Assets/Liabilities

GASB Statement 34 requires that non-current governmental assets, such as construction in progress, and non-current governmental liabilities, such as general obligation bonds be reported in the governmental activities column in the government-wide Statement of Net Position.

Assets, Liabilities, and Net Position or Equity

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:

Direct obligations of the United States Treasury;

The Local Government Surplus Funds Trust or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperative Act of 1969;

Interest-bearing time deposits or savings accounts in authorized qualified public depositories;

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Assets, Liabilities, and Net Position or Equity (Continued)
Cash and Investments (Continued)
Securities and Exchange Commission, registered money market funds with the highest credit quality rating from a nationally recognized rating agency.
Cash and cash equivalents include time deposits, certificates of deposit, money market funds, and all highly liquid debt instruments with original maturities of three months or less.
Capital Assets
Capital assets, which includes construction in progress, buildings and improvements, improvements other buildings, infrastructure, and equipment, is 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. Donated capital assets are recorded at estimated fair market value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend 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.
Equipment	5-20 years
Buildings and improvements	30 years
Infrastructure	30 years
Improvements other than buildings	30 years
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 columns of the accompanying financial statements may occur.
Bond Discounts
Bond discounts are amortized over the life of the bonds.

NOTE	B	–		RECONCILIATION	OF	GOVERNMENT-WIDE	AND	FUND	FINANCIAL STATEMENTS
Explanation of Differences Between the Governmental Fund Balance Sheet and the Government-wide Statement of Net Position
“Total fund balances” of the District’s governmental funds, $1,407,099, differs from “net position” of governmental activities, $3,909,901, reported in the Statement of Net Position. This difference primarily results from the long-term economic focus of the Statement of Net Position versus the current financial resources focus of the governmental fund balance sheet. The effect of the differences is illustrated below:
Capital related items
When capital assets (infrastructure that is to be used in governmental activities) are purchased or constructed, the cost of those assets is reported as expenditures in governmental funds. However, the Statement of Net Position included those capital assets among the assets of the District as a whole.

Construction in progress	$	17,167,950	
Buildings and improvements	503,609	
Improvements other than buildings	1,918,512	
Infrastructure	4,000,097	
Equipment	106,368	
Accumulated depreciation		(219,393)	

Total	$	23,477,143
Long-term debt transactions

Long-term liabilities applicable to the District’s governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities. All liabilities (both current and long-term) are reported in the Statement of Net Position. Balances at September 30, 2022 were:
Bonds payable	$	(19,940,000)
Bond discount, net	$	6,497
Developer advance	$	(578,098)
Financed purchase	$	(95,000)

Accrued interest
Accrued liabilities in the statement of net position differ from the amount reported in governmental funds due to accrued interest on bonds.

Accrued interest on bonds payable	$	(367,740)

NOTE	B	–		RECONCILIATION	OF	GOVERNMENT-WIDE	AND	FUND	FINANCIAL STATEMENTS (CONTINUED)
Explanation of Differences Between the Governmental Fund Operating Statements and the Statement of Activities
The “net change in fund balances” for government funds, $622,173, differs from the “change in net position” for governmental activities, $1,193,501, reported in the Statement of Activities. The differences arise primarily from the long-term economic focus of the Statement of Activities versus the current financial resources focus of the governmental funds. The effect of the differences is illustrated below:
Capital related items
When capital assets that are to be used in governmental activities are purchased or constructed, the resources expended for those assets are reported as expenditures in governmental funds. However, in the Statement of Activities, the costs of those assets is allocated over their estimated useful lives and reported as depreciation expense. As a result, fund balances decrease by the amount of financial resources expended, whereas net position increases by the amount of capital outlay for the year.

Capital outlay	$	8,214,513	
Depreciation		(219,393)	
Total	$	7,995,120	
Long-term debt transactions
When long-term debt is issued for governmental activities, the resources obtained are recognized as an other financing source at the fund level. At the government-wide level, however, the new debt increases non-current liabilities. Also, interest is recognized when due at the fund level, but is accrued at the government-wide level.

Issuance of long-term debt	$	(8,521,614)	
Initiation of financed purchase	$	(60,000)	
Principal payments on long-term debt	$	3,066,915	
Some expenses reported in the Statement of Activities do not require the use of current financial resources, therefore, are not reported as expenditures in governmental funds.
Bond discount amortization	$	(235)
Change in accrued interest	$	(143,826)
Conveyance of capital assets
The conveyance of capital assets does not use current resources and is not recognized at the fund level.
Conveyance	$	(1,765,032)

NOTE C – CASH AND INVESTMENTS

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

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, 2022, the District's bank balance was $138,791 and the carrying value was $54,874. 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.

	Investment	  Maturities   Fair Value	
First American Treasury Obligation	9 days*	 $ 1,410,491 

* Weighted Average Maturity

The District categorizes its fair value measurements within the fair value hierarchy recently 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 obtaining 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 listed above is a Level 1 asset.

NOTE C – CASH AND INVESTMENTS (CONTINUED)

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. However, the District follows Section 218.415, Florida Statutes for their investments.

Credit Risk

The District's investments in treasury funds, money markets, and government loans are limited by state statutory requirements and bond compliance. The District has no investment policy that would further limit its investment choices. The District's investments in government loans are limited by state statutory requirements and bond compliance. As of September 30, 2022, the District's investments in the First American Treasury Obligation were rated AAAm by Standard & Poor's.

Concentration of Credit Risk

The District places no limit on the amount it may invest in any one fund. The investments in the First American Treasury Obligation represents 100% of the District’s total investments.

The types of deposits and investments and their level of risk exposure as of September 30, 2022 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 D – CAPITAL ASSETS

Capital asset activity for the year ended September 30, 2022 was as follows:

Balance	Balance
October 1,	September 30,
	2021	 	Additions	 	Deletions	 	2022	
Governmental Activities:		
Capital assets, not being depreciated:		
Construction in progress	 $ 17,200,687 	 $	8,154,513 	 $ (8,187,250)	 $ 17,167,950 	
Capital assets, being depreciated:					
Buildings and improvements	-	503,609	-	503,609	
Improvements other than buildings	-	1,918,512	-	1,918,512	
Infrastructure	-	4,000,097	-	4,000,097	
Equipment	46,368	60,000	-	106,368	
Accumulated depreciation		- 		(219,393)		- 		(219,393)	
Capital assets, being depreciated, net		46,368 		6,262,825 		- 		6,309,193 	
Total Capital Assets, net	 $ 17,247,055 	 $ 14,417,338 	 $ (8,187,250)	 $ 23,477,143 	

Depreciation of $197,288 was charged to physical environment and $22,105 to culture/recreation.

NOTE E – BONDS PAYABLE
The following is a summary of activity for long-term debt of the District for the year ended September 30, 2022:
Bonds Payable at October 1, 2021	$	15,055,931

Issuance of bonds payable	8,521,614
Principal payments		(3,059,447)
Long-term debt at September 30, 2022	$	20,518,098

Less: Bond discount		(6,497)
Bonds Payable, net, September 30, 2022	$	20,511,601

Bonds Payable for Governmental Activities is comprised of the following:
Special Assessment Bonds
In June 2019, the District issued $7,180,000 Special Assessment Bonds, Series 2019, due in annual principal installments beginning May 2021, maturing May 2050. Interest is due semi- annually on May 1 and November 1, beginning November 2019, at a rate of 3.75% on the $510,000 bonds, with a maturity date of May 1, 2024, 4.00% on the $750,000 bonds, with a maturity date of May 1, 2029, 4.625% on the $2,105,000 bonds, with a maturity date of May 1, 2039, and 4.87% on the $3,815,000 bonds, with a
maturity date of May 1, 2050. Current portion is $115,000.	$   6,230,000
In November 2020, the District issued $6,500,000 Special Assessment Bonds, Series 2020, due in annual principal installments beginning May 2021, maturing May 2051. Interest is due semi-annually on May 1 and November 1, beginning May 2021, at a rate of 2.625% on the $525,000 bonds, with a maturity date of May 1, 2025, 3.2% on the $750,000 bonds, with a maturity date of May 1, 2030, 3.75% on the $1,965,000 bonds, with a maturity date of May 1, 2040, and 4% on the $3,260,000 bonds,
with a maturity date of May 1, 2051. Current portion is $130,000.	$   6,375,000
In February 2022, the District issued $3,040,000 Special Assessment Bonds, Series 2022(Phase 3), due in annual principal installments beginning November 2022, maturing November 2051. Interest is due semi-annually on May 1 and November 1, beginning November 2022, at a rate of 3.125% on the $415,000 bonds, with a maturity date of November 1, 2027, 3.5% on the
$370,000 bonds, with a maturity date of November 1, 2032, 4.00% on the $2,255,000 bonds, with a maturity date of November 1,
2051. Current portion is $100,000.	$  3,040,000

NOTE E – BONDS PAYABLE (CONTINUED)
Special Assessment Bonds (Continued)
In February 2022, the District issued $4,295,000 Special Assessment Bonds, Series 2022(Phase 4), due in annual principal installments beginning May 2023, maturing May 2052. Interest is due semi-annually on May 1 and November 1, beginning November 2022 at a rate of 3.250% on the $425,000 bonds, with a maturity date of May 1, 2027, 3.625% on the $505,000 bonds, with a maturity date of May 1, 2032, 4.000% on the $1,340,000 bonds, with a maturity date of May 1, 2042, and 4.125% on the
$2,025,000 bonds, with a maturity date of May 1, 2052. Current
portion is $80,000.	$  4,295,000

The annual requirements to amortize the principal and interest of bonded debt outstanding as of September 30, 2022 are as follows:

Year Ending
  September 30,		
	Principal		
	Interest		
	Total		
2023	$	425,000	$	845,629	$	1,270,629	
2024	395,000	798,719	1,193,719	
2025	405,000	786,119	1,191,119	
2026	425,000	772,778	1,197,778	
2027	435,000	758,142	1,193,142	
2028-2032	2,420,000	3,552,283	5,972,283	
2033-2037	2,945,000	3,031,694	5,976,694	
2038-2042	3,630,000	2,366,769	5,996,769	
2043-2047	4,495,000	1,517,206	6,012,206	
2048-2052		4,365,000 		471,250 		4,836,250 	
Totals	 $  19,940,000 	 $  14,900,589 	 $  34,840,589 	
 		
Significant Bond Provisions

The Series 2019 Bonds are subject to redemption at the option of the District prior to their maturity, in whole or in part, at any time on or after May 1, 2029 at a redemption price equal to the principal amount of the Series 2019 Bonds to be redeemed, together with accrued interest to the date of redemption. The Series 2019 Bonds are subject to extraordinary mandatory redemption prior to maturity in the manner determined by the Bond Registrar if certain events occurred as outlined in the Trust Indenture.

The Series 2020 Bonds are subject to redemption at the option of the District prior to their maturity, in whole or in part, at any time on or after May 1, 2030 at a redemption price equal to the principal amount of the Series 2020 Bonds to be redeemed, together with accrued interest to the date of redemption. The Series 2020 Bonds are subject to extraordinary mandatory redemption prior to maturity in the manner determined by the Bond Registrar if certain events occurred as outlined in the Trust Indenture.

NOTE E – BONDS PAYABLE (CONTINUED)
The Series 2022 Bonds are subject to redemption at the option of the District prior to their maturity, in whole or in part, at any time on or after May 1, 2032 at a redemption price equal to the principal amount of the Series 2022 Bonds to be redeemed, together with accrued interest to the date of redemption. The Series 2022 Bonds are subject to extraordinary mandatory redemption prior to maturity in the manner determined by the Bond Registrar if certain events occurred as outlined in the Trust Indenture.
The Trust Indenture established certain amounts be maintained in a reserve account. In addition, the Trust Indenture has certain restrictions and requirements relating principally to the use of proceeds to pay for the infrastructure improvements and the procedures to be followed by the District on assessments to property owners. The District agrees to levy special assessments in annual amounts adequate to provide payment of debt service and to meet the reserve requirements.
Depository Funds
The bond resolution establishes certain funds and determines the order in which revenues are to be deposited into these funds. A description of the significant funds, including their purposes, is as follows:
1. Reserve Fund – The 2019 Reserve Account is funded from the proceeds of the Series 2019 Bonds and is an amount equal to 50% of the maximum annual debt service requirement for all outstanding Series 2019 Bonds. Monies held in the reserve accounts will be used only for the purposes established in the Trust Indenture.

The 2020 Reserve Account is funded from the proceeds of the Series 2020 Bonds and initially is an amount equal to the maximum annual debt service requirement for all outstanding Series 2020 Bonds. Monies held in the reserve accounts will be used only for the purposes established in the Trust Indenture.

The 2022 Reserve Accounts are funded from the proceeds of the Series 2022 Bonds and initially is an amount equal to 50% of the maximum annual debt service requirement for all outstanding Series 2022 Bonds.

	Reserve
Balance		Reserve
Requirement	
Special Assessment Bonds, Series 2019	$	203,276		$	202,648	
Special Assessment Bonds, Series 2020	$	184,450		$	184,450	
Special Assessment Bonds, Series 2022, Phase 3	$	87,200		$	87,200	
Special Assessment Bonds, Series 2022, Phase 4	$	249,825		$	249,747	

NOTE F – DEVELOPER ADVANCE
In the current year, the Developer advanced the District a total of $1,186,614 to fund certain construction expenditures prior to the issuance of additional Bonds. Upon issuance of the Series 2022 Bonds, the District reimbursed the Developer $2,804,447. Developer advance was
$578,098 as of September 30, 2022.

NOTE G – FINANCED PURCHASE

The District entered into a financed purchase agreement for fitness equipment during the year ended September 30, 2021. The total acquisition cost of the equipment was $46,368. The term of the financed purchase is from February 1, 2021 to February 1, 2026 and is payable in monthly installments of $1,079.

The District entered into a financed purchase agreement for pool equipment during the year ended September 30, 2022. The total acquisition cost of the equipment was $60,000. The term of the financed purchase is from February 1, 2022 to November 1, 2027 and is payable in monthly installments of $1,396.

The annual requirements to amortize the principal and interest of the financed purchases as of September 30, 2022 were as follows:

Year Ending
  September 30, 	
	Principal		
	Interest		
	Total		
2023	$	15,921	$	16,586	$	32,507	
2024	19,872	9,828	29,700	
2025	22,839	6,859	29,698	
2026	18,430	3,719	22,149	
2027	15,192	1,561	16,753	
2028		2,746 		47 		2,793 	
 $	95,000 	 $	38,600 	 $	133,600 	

NOTE H – INTERFUND TRANSFERS
Interfund transfers for the year ended September 30, 2022, consisted for the following:

Transfers Out
Transfers In	Debt Service Fund
 	
Capital Projects Fund	$	184,450

Interfund transfers are in accordance with the Series 2020 Trust Indenture.

NOTE I – ECONOMIC DEPENDENCY

The Developer owns a significant portion of land within the District. The District’s activity is dependent upon the continued involvement of the Developer, the loss of which could have a material adverse effect on the District’s operations. At September 30, 2022, all board members are affiliated with the Developer.

NOTE J – RISK MANAGEMENT

The District is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; and natural disasters for which the government carries commercial insurance. The District has not filed any claims under this commercial coverage in the last three years.

NOTE K – SUBSEQUENT EVENTS

In May 2023, the District issued $7,940,000 Special Assessment Bonds, Series 2023 to finance all or a portion of the costs of the planning, financing, acquisition, construction, equipping, and installation of the Series 2023 Project.

The District made prepayments on the Series 2019 Bonds in November 2022 of $20,000 and on the Series 2022 (Phase 3) Bonds in May 2023 of $50,000.

In November 2022, the City of Winter Haven, Florida, amended the boundaries of the VillaMar Community Development District, with Ordinance No. O-22-68, resulting in an expansion of approximately 148.16 acres to a total of 583.79.

INDEPENDENT AUDITORS’ 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
VillaMar Community Development District Winter Haven, 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, as listed in the table of contents, of VillaMar Community Development District, as of and for the year ended September 30, 2022, and the related notes to the financial statements, which collectively comprise the basic financial statements and have issued our report thereon dated September 28, 2023.

Report on Internal Control Over Financial Reporting

In planning and performing our audit, we considered VillaMar 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 VillaMar Community Development District’s internal control. Accordingly, we do not express an opinion on the effectiveness of VillaMar 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 or significant deficiencies may exist that have not been identified.

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To the Board of Supervisors
VillaMar Community Development District

Report on Compliance and Other Matters

As part of obtaining reasonable assurance about whether VillaMar 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.

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.

Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL
Fort Pierce, Florida September 28, 2023

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MANAGEMENT LETTER

To the Board of Supervisors
VillaMar Community Development District Winter Haven, Florida

Report on the Financial Statements

We have audited the financial statements of the VillaMar Community Development District as of and for the year ended September 30, 2022, and have issued our report thereon dated September 28, 2023.

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 Reporting Requirements

We have issued our Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards. Disclosures in that report, which is dated September 28, 2023, 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 taken to address findings and recommendations made in the preceding financial audit report. There were no findings or recommendations in the preceding financial audit report.

Financial Condition and Management

Section 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, require us to apply appropriate procedures and communicate the results of our determination as to whether or not VillaMar 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 VillaMar Community Development District did not meet any of the conditions described in Section 218.503(1) Florida Statutes.

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To the Board of Supervisors
VillaMar Community Development District

Pursuant to Sections 10.554(1)(i)5.b. and 10.556(8), Rules of the Auditor General, we applied financial condition assessment procedures for VillaMar Community Development District. It is management’s responsibility to monitor the VillaMar 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 as of September 30, 2022.

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

Specific Information

The information provided below was provided by management and has not been audited; therefore, we do not express an opinion or provide any assurance on the information.
As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)6, Rules of the Auditor General, the VillaMar Community Development District reported:
The total number of district employees compensated in the last pay period of the District’s fiscal year: 0
The total number of independent contractors to whom nonemployee compensation was paid in the last month of the District’s fiscal year: 17
All compensation earned by or awarded to employees, whether paid or accrued, regardless of contingency: $0
All compensation earned by or awarded to nonemployee independent contractors, whether paid or accrued, regardless of contingency: $8,921,013
Each construction project with a total cost of at least $65,000 approved by the District that is scheduled to begin on or after October 1, 2021, together with the total expenditures for such project: Series 2022 A3, $2,661,401, and Series 2022 A4,
$3,958,682.
A budget variance based on the budget adopted under Section 189.016(4), Florida Statutes, before the beginning of the fiscal year being reported if the District amends a final adopted budget under Section 189.016(6), Florida Statutes: The budget was not amended.
As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)8, Rules of the Auditor General, the VillaMar Community Development District reported:
The rate or rates of non-ad valorem special assessments imposed by the District: The General Fund, $148 - $707, the Debt Service Fund, $1,304 - $1,452.
The amount of special assessments collected by or on behalf of the District: Total special assessments collected was $1,414,858.
The total amount of outstanding bonds issued by the District and the terms of such bonds:	Series 2019 Bonds, $6,230,000, maturing May 2050, Series 2020 Bonds,
$6,375,000, maturing May 2051, Series 2022 A3, $3,040,000 maturing November 2051 and Series 2022 A4, $4,295,000, maturing May 2052.

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To the Board of Supervisors
VillaMar Community Development District

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 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.

Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL
Fort Pierce, Florida September 28, 2023

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INDEPENDENT ACCOUNTANTS’ REPORT/COMPLIANCE WITH SECTION 218.415, FLORIDA STATUTES

To the Board of Supervisors
VillaMar Community Development District Winter Haven, Florida

We have examined VillaMar Community Development District's compliance with Section 218.415, Florida Statutes during the year ended September 30, 2022. Management is responsible for VillaMar Community Development District’s compliance with those requirements. Our responsibility is to express an opinion on VillaMar 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 VillaMar 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 VillaMar Community Development District’s compliance with the specified requirements.

In our opinion, VillaMar Community Development District complied, in all material respects, with the aforementioned requirements during the year ended September 30, 2022.

Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL
Fort Pierce, Florida September 28, 2023

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