Minutes of Meeting Canopy Community Development District The regular meeting of the Board of Supervisors of the Canopy Community Development District was held Wednesday, August 9, 2023 at 6:05 p.m. at the Canopy Amenity Center, 2877 Crestline Road, Tallahassee, Florida. Present and constituting a quorum were: Jason Ghazvini Vice Chairman John “Al” Russell Supervisor Colleen Castille Supervisor David Brady Supervisor Also present were: Jim Oliver District Manager Roy Van Wyk District Counsel Laura Kalinoski Events Coordinator About 15 Residents FIRST ORDER OF BUSINESS Roll Call Mr. Oliver called the meeting to order at 6:00 p.m. and called the roll. SECOND ORDER OF BUSINESS Public Comment Period Comments were: Trees on the Florida Gas Transmission line flagged for trimming, overgrown pond banks need regular maintenance, pool attendants will have name tags and polos, contractor has been hired to deal with cracks in pool, new treadmills will be delivered shortly, timing of dog park construction, future plans for Dempsey Mayo, Crestline and roundabout of Miccosukee, rules breaking at the pool, rule breakers are subject to losing amenity privileges. THIRD ORDER OF BUSINESS Approval of the Minutes of the May 23, 2023 Meeting DocuSign Envelope ID: 0827E844-CEBE-4E61-9018-F13FA2FACFAB August 9, 2023 Canopy CDD 2 On MOTION by Ms. Castille seconded by Mr. Ghazvini with all in favor the minutes of the May 23, 2023 meeting were approved as presented. FOURTH ORDER OF BUSINESS Acceptance of Minutes of the May 23, 2023 Audit Committee Meeting On MOTION by Mr. Brady seconded by Ms. Castille with all in favor the minutes of the May 23, 2023 audit committee meeting were accepted. FIFTH ORDER OF BUSINESS Fiscal Year 2024 Budget A. Overview of Budget Mr. Oliver gave an overview of the budget process and stated there is no increase in assessments in the proposed budget. The budget has grown to about $52,000 and that is covered by an increase in developer contributions. There are five funds, the general fund to keep the district operating, there are four other funds, that are the debt service budgets for the four series of bonds that were issued in 2018 to build the infrastructure. We had the assessment hearing for those in 2018 when we issued the bonds and they are 30-year bonds and the assessments stay the same for the life of the bonds unless at some point after the call period of about ten years interest rates are such that you can refinance those at a lower interest rate. You won’t approach that until we get to FY28. In the general fund budget there is a revenue section of how you fund this budget then the expenditures, broken into administrative, maintenance, and amenity center. The developer contribution funds about half of the budget for FY23 and it goes up about $52,000 for FY24. There is about a $6,000 increase in administrative costs, the biggest driver of the $43,000 increase in the maintenance fund is landscape maintenance, which is not uncommon for a district that is in its growth period. The next section is the amenity center that goes from $199,000 to $219,000 and the biggest driver there is utilities. The debt service budgets make the semi-annual interest payments on November 1st and May 1st each year as well as the principal payment on May 1st of each year. We think this is the buildout budget in terms of assessments. The amount on the tax bill is grossed up by 7% and if a homeowner or their lender pays the assessments by November 30th there is a 4% discount on those assessments and that is true for everything on the tax bill. DocuSign Envelope ID: 0827E844-CEBE-4E61-9018-F13FA2FACFAB August 9, 2023 Canopy CDD 3 B. Board Discussion Ms. Castille stated the maintenance assessment on page 1 line 1, the assessments to the residents that is going to remain the same, but we know there are increased costs and the developer is carrying all the increases. Mr. Oliver stated that is correct. Mr. Ghazvini asked what are porter services? Ms. Kalinoski stated that is janitorial. Mr. Ghazvini stated street cleaning and sidewalks. C. Public Hearing Adopting the Budget for Fiscal Year 2024 On MOTION by Mr. Ghazvini seconded by Ms. Castille with all in favor the public hearing was opened. A resident asked is the anticipation that the assessments will over time go down? Mr. Oliver stated I don’t think you will see assessments go down, I think you are where you need to be. As more units come online and lots are platted, more assessments will be collected and as the assessment collections go up you will see the developer contributions will slowly decline because the idea will be for the CDD to be fully self-sustaining. A resident stated it was mentioned when we bought the house that in time we would see the assessments go down. Mr. Oliver stated I’ve never seen that happen in any of my districts. Ms. Castille asked is the debt service 20 years or 30 years? Mr. Oliver stated 30 years. On MOTION by Mr. Ghazvini seconded by Ms. Castille with all in favor the public hearing was closed. 1. Consideration of Resolution 2023-06 Relating to the Annual Appropriations and Adopting the Budget for Fiscal Year 2024 Mr. Van Wyk stated Resolution 2023-06 is the annual appropriations resolution. You are approving the budget as presented and the district manager is making provisions for it to be posted DocuSign Envelope ID: 0827E844-CEBE-4E61-9018-F13FA2FACFAB August 9, 2023 Canopy CDD 4 on the district’s website and makes provisions for how the budget can be amended in the future and you are making appropriations based on line items that were in the budget. On MOTION by Ms. Castille seconded by Mr. Ghazvini with all in favor Resolution 2023-06 was approved. 2. Consideration of Resolution 2023-07 Imposing Special Assessments and Certifying an Assessment Roll for Fiscal Year 2024 Mr. Van Wyk stated Resolution 2023-07 is our assessment resolution. Now that we have the budget adopted and we know the numbers, this resolution imposes the special assessments on each parcel that is benefited by the services outlined in the budget. It makes provisions for collection on the tax roll, it makes provisions for collection by direct bill on unplatted parcels so that the district can realize the cash in advance of the issuance of the tax bills. You are making findings of benefit to each one of the parcels and you are making findings with respect to the apportionment of the assessments on the various parcels located in the district. On MOTION by Ms. Castille seconded by Mr. Ghazvini with all in favor Resolution 2023-07 was approved. D. Consideration of Deficit Funding Agreement for Fiscal Year 2024 Mr. Van Wyk stated as noted earlier there is a developer contribution and this is an agreement that makes it known in writing that the developer is responsible for paying any of those costs that are not funded through special assessments. This is an agreement between the district and the developer for payment of those fees. On MOTION by Mr. Ghazvini seconded by Mr. Brady with all in favor the fiscal year 2024 deficit funding agreement with Ox Bottom Mortgage Holdings, LLC was approved. SIXTH ORDER OF BUSINESS Discussion of Rental Policies for Designated CDD Facilities Mr. Oliver stated as I reviewed the minutes from the last meeting there was a very robust discussion of the policies not only the existing policies for this district but a lot of other CDDs to compare with and some suggested policies that we received from one of the residents. It is my DocuSign Envelope ID: 0827E844-CEBE-4E61-9018-F13FA2FACFAB August 9, 2023 Canopy CDD 5 understanding that the decision was that the facility we are in right now could not be rented for private events, it could be used by the district for events open to all the residents. Otherwise, it is strictly categories of residents. Mr. Ghazvini stated I think from the developer’s standpoint and from my position on the board I think the goal was to allow there to be events for homeowners to be able to coordinate through Laura. We don’t want to specifically close out the space to homeowners to be able to utilize, we want it to be open for the homeowners to set up events with Laura that everybody can come and attend. That is why we made the decision to not rent out the space specifically for a private event yet for a neighborhood event. Ms. Castille asked are you saying that it is for rent? Mr. Ghazvini stated what I’m saying is the place can be chosen to be utilized by a neighborhood event, for example I want to have a book club at the clubhouse, I can reach out to Laura and say next Thursday evening I would like to have a book club and I want it to be open to the homeowners. Laura will send out a notice to all the homeowners and let everybody know that everybody is invited. That way it is open to all homeowners and everybody knows Thursday night the space is being utilized for that. It doesn’t exclude anyone from being able to be there but is still allows the homeowners to have these neighborhood events and utilize the space. A resident asked what about someone having a birthday party? Mr. Ghazvini stated no, but you can utilize the outdoor pavilion. Ms. Kalinoski stated the rules of the community remain, no more than four guests per household. It is not built to be an event space it was built to be an amenity for every one of you. You can come down here and enjoy what you paid for and it is not excluding anyone. A resident stated there is no change the policy. Mr. Ghazvini stated that is correct. A resident asked does that mean if someone has a birthday party and they invite other homeowners’ children, that is still okay/ Ms. Kalinoski stated yes. SEVENTH ORDER OF BUSINESS Consideration of Audit Engagement Letter from Grau & Associates DocuSign Envelope ID: 0827E844-CEBE-4E61-9018-F13FA2FACFAB August 9, 2023 Canopy CDD 6 On MOTION by Ms. Castille seconded by Mr. Brady with all in favor the engagement letter from Grau & Associates to perform the fiscal year 2023 audit in the amount of $4,500 was approved. EIGHTH ORDER OF BUSINESS Staff Reports A. Attorney There being none, the next item followed. B. Engineer There being none, the next item followed. C. Manager i. Approval of Check Register Summary and Requisition Summary On MOTION by Mr. Russell seconded by Mr. Brady with all in favor the check run summary and requisition summary were approved. ii. Balance Sheet and Income Statement A copy of the balance sheet and income statement were included in the agenda package. iii. Discussion of Fiscal Year 2024 Meeting Schedule On MOTION by Mr. Russell seconded by Ms. Castille with all in favor the fiscal year 2024 meeting schedule was approved reflecting the following dates: October 12, 2023, December 14, 2023, February 8, 2024, April 11, 2024, June 13, 2024 and August 7, 2024. NINTH ORDER OF BUSINESS Other Business There being none, the next item followed. TENTH ORDER OF BUSINESS Supervisors Requests There being none, the next item followed. DocuSign Envelope ID: 0827E844-CEBE-4E61-9018-F13FA2FACFAB August 9, 2023 Canopy CDD 7 ELEVENTH ORDER OF BUSINESS Next Scheduled Meeting – October 12, 2023 at 2:00 p.m. at the Canopy Amenity Center Mr. Oliver stated the next meeting will be held October 12, 2023 at 1:00 p.m. in the same location. On MOTION by Mr. Russell seconded by Ms. Castille with all in favor the meeting adjourned at 6:43 p.m. Secretary/Assistant Secretary Chairman/Vice Chairman DocuSign Envelope ID: 0827E844-CEBE-4E61-9018-F13FA2FACFAB