New Port Tampa Bay

Community Development District

ANNUAL FINANCIAL REPORT

September 30, 2016

New Port Tampa Bay Community Development District		
ANNUAL FINANCIAL REPORT		
Fiscal Year Ended September 30, 2016		
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	17-29	
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	30-31	
Management Letter	32-35	
Independent Accountant’s Report/Compliance with Section 218.415 Florida Statutes	36	

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Berger,	Toombs,	Elam,		
Gaines	&	Frank			
Certified Public Accountants	Pl			
600 Citrus Avenue					
Suite 200						
Fort Pierce, Florida	34950				
772/461-6120	// 461-1155				
FAX: 772/468-9278			REPORT OF INDEPENDENT AUDITORS		

To the Board of Supervisors						
New Port Tampa Bay Community Development District					
Hillsborough County, Florida						
Report on the Financial Statements						
We  have  audited  the  accompanying  basic financial  statements  of  New Port Tampa	Bay		
Community Development District as of and	for the year ended September 30,	2016,	and	the		
related notes to	financial statements, which	collectively comprise the District'sbasic financial		
statements as listed in the table of contents.						
1	Responsibility for the Financial Statements					
Management s						
Management  is	responsible  for  the  preparation  and  fair  presentation  of  these  financial		
statements in accordance with accounting principles generally accepted in the United States of		
America; this includes the design, implementation, and maintenance of internal control relevant		
to the preparation and fair presentation of financial statements that are free	from	material		
misstatement, whether due to fraud or error.						

Auditor

1

s

Responsibility

Our responsibility is to	express an opinion on these financial statements based on our audits.	
We conducted our audits	in accordance	with auditing standards generally accepted	in	the	
United  States  of  America	and	the	standards  applicable  to	financial  audits  contained  in	
Government Accounting Standards,	issued	by the Comptroller General of the United States.	
Those standards require that we plan	and	perform the audit to obtain reasonable assurance	
about whether the financial statements	are	free	from material misstatement.				
An audit involves performing  procedures	to	obtain audit evidence about the amounts	and	
disclosures in the financial statements.  The procedures selected depend on the auditor's	
judgment,  including the assessment of the risks  of material  misstatement of the financial	
statements, whether due to fraud or error.	In making those risk assessments, the auditor	
considers  internal  control	relevant	to  the	entity's preparation	and	fair	presentation	of	the	
financial  statements	in	order	to	design  audit  procedures  that	are	appropriate	in	the	
circumstances, but not for the purpose of expressing	an	opinion on	the effectiveness of	the	
entity'sinternal control.	Accordingly,	we	express no	such opinion.	An	audit also includes	
evaluating  the  appropriateness  of  accounting  policies	used	and	the	reasonableness  of	
significant accounting  estimates  made  by	management,	as well  as  evaluating the  overall	
presentation of the financial statements.											

We believe that the audit evidence basis for our audit opinion.

we

have

obtained

is

sufficient

and

appropriate to provide a

Fort Pierce / Stuart

Member

AICPA

- 1 - Member AICPA Division For CPA Firms

Private Companies Practice Section

Member

FICPA

rR, Berger, Toombs, Elam, qj7 Gaines & Frank

To the Board of Supervisors
New Port Tampa Bay Community Development District

Summary of Opinions

Opinion Unit	Type of Opinion	
Governmental Activities	Unmodified	
Discretely Presented Component Unit	Adverse	
General Fund	Unmodified	
Debt Service Fund	Unmodified	
Capital Projects Fund	Unmodified	

Basis for Adverse Opinion on the Discretely Presented Component Unit

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

Adverse Opinion

In our opinion, because of the significance of the matter discussed in the "Basis for Adverse Opinion on the Discretely Presented Component Unit", the financial statements referred to above do not present fairly, the financial position of the discretely presented component unit of the District as of September 30, 2016, or the changes in financial position thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Qualified Opinion

In our opinion, except for the effects of the matter described in the "Basis for Adverse Opinion on the Discretely Presented Component Unit" paragraph, the financial statements referred to above present fairly, in all material respects, the financial position of the aggregate remaining fund information of the District as of September 30, 2016, and the respective changes in financial position thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Unmodified Opinions

In our opinion, the financial statements referred to previously present fairly, in all material respects, the respective financial position of the governmental activities and each major fund of the District, as of September 30, 2016, 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.

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~ Be,:ger, Toombs, Elam,
(o,, Gaines & Frank

To the Board of Supervisors
New Port Tampa Bay Community Development District

Other Matters

Required Supplementary Information

Governmental accounting principles generally accepted in the United States of America require that the Management Discussion and Analysis and budgetary comparison be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures 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'sresponses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued a report dated May 2, 2017 on our consideration of the District'sinternal 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 New Port Tampa Bay Community Development District'sinternal control over financial reporting and compliance.

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

Fort Pierce, Florida

May 2, 2017

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New Port Tampa Bay Community Development District

MANAGEMENT’S DISCUSSION AND ANALYSIS

For the Year Ended September 30, 2016

Management’s discussion and analysis of New Port Tampa Bay Community Development District (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 and interest in long-term debt.

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

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New Port Tampa Bay Community Development District
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Year Ended September 30, 2016

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, 2016.

•	The District’s total assets were exceeded by total liabilities by $50,971,069 (deficit net position). Net investment in capital assets for the District was $2,934,699. Unrestricted net position for Governmental Activities was $(53,944,175). Governmental activities restricted net position was $38,407.

•	Governmental activities revenues totaled $100,241 while governmental activities expenses totaled $2,962,748 and conveyed land totaled $20,000,000.

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New Port Tampa Bay Community Development District

MANAGEMENT’S DISCUSSION AND ANALYSIS

For the Year Ended September 30, 2016

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		
			2016			2015		
Current assets	$	37,042	$	30,105		
Restricted assets		45,310			30,929		
Capital assets		17,535,198			37,535,198		
Total Assets			17,617,550			37,596,232		
Current liabilities		31,653,219			27,907,812		
Non-current liabilities		36,935,400			37,796,982		
Total Liabilities			68,588,619			65,704,794		
Net Position		2,934,699			2,123,117		
Net investment in capital assets							
Restricted		38,407			42,089		
Unrestricted			(53,944,175)			(30,273,768)		
Total Net Position	$	(50,971,069)	$	(28,108,562)		

The reduction in capital assets and net position - unrestricted is primarily due to the conveyance of land to New Port Tampa CDD Holdings, LLC (SPE).

The increase in current liabilities is primarily due to unpaid bond principal and interest in the current year.

The decrease in non-current liabilities is the result of reclassification of the current portion of bonds payable.

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New Port Tampa Bay Community Development District

MANAGEMENT’S DISCUSSION AND ANALYSIS

For the Year Ended September 30, 2016

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		
Program Revenues		2016			2015		
							
Operating grants and contributions	$	100,217	$	75,271		
General Revenues							
Investment earnings		24			6		
Total Revenues		100,241			75,277		
Expenses							
General government		101,777			54,367		
Physical environment		1,186			5,859		
Interest on long-term debt		2,859,785			2,859,352		
Total Expenses		2,962,748			2,919,578		
Conveyance of land		20,000,000			-		
Change in Net Position		(22,862,507)			(2,844,301)		
Net Position - Beginning of Year		(28,108,562)			(25,264,261)		
Net Position - End of Year	$	(50,971,069)	$	(28,108,562)		

The increase in general government is primarily due to an increase in legal services and legal advertising in the current year.

The conveyance of land in the current year was conveyed to the SPE to facilitate future development of the District.

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New Port Tampa Bay Community Development District

MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Year Ended September 30, 2016

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, 2016 and 2015.

		Governmental Activities	
		2016			2015	
Land and improvements	$	-	$	20,000,000	
Construction in progress		17,535,198			17,535,198	
Governmental Activities Capital Assets	$	17,535,198	$	37,535,198	

In the current year, the District's land was conveyed to New Port Tampa CDD Holdings, LLC (SPE).

General Fund Budgetary Highlights

The budget exceeded governmental expenditures primarily because landscape and common area maintenance expenditures were lower than anticipated.

There were no amendments to the September 30, 2016 budget.

Debt Management

Governmental Activities debt includes the following:

•	In February 2006, the District issued $43,510,000 Series 2006A Special Assessment Bonds and $6,055,000 Series 2006B Special Assessment Bonds. These bonds were issued to finance the acquisition and construction of certain land and infrastructure improvements within the District. As of September 30, 2016, the Series 2006A and 2006B Bonds were in default and matured bonds payable totaled $10,920,000. The balance not yet matured outstanding at September 30, 2016 was $38,100,000.

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New Port Tampa Bay Community Development District

MANAGEMENT’S DISCUSSION AND ANALYSIS

For the Year Ended September 30, 2016

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Economic Factors and Next Year’s Budget

On December 13, 2016, the District issued a Promissory note with New Port Tampa CDD Holdings, LLC (SPE), not to exceed $7,500,000. The note is to be used to complete the Phase 1 Improvements.

Request for Information

The financial report is designed to provide a general overview of New Port Tampa Bay 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 New Port Tampa Bay Community Development District, Fishkind & Associates, Inc., 12051 Corporate Blvd., Orlando, Florida 32817.

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New Port Tampa Bay Community Development District				
STATEMENT OF NET POSITION				
September 30, 2016				
		Governmental		
ASSETS		Activities		
				
Current Assets				
Cash	$	1,685		
Accounts receivable		29,560		
Prepaid expenses		5,797		
Total Current Assets		37,042		
Non-Current Assets				
Restricted Assets				
Investments - debt service		8,459		
Investments - capital projects		36,851		
Capital Assets, Not Being Depreciated				
Construction in progress		17,535,198		
Total Non-Current Assets		17,580,508		
Total Assets		17,617,550		
LIABILITIES				
Current Liabilities				
Accounts payable and accrued expenses		29,572		
Unearned revenue		4,241		
Matured bonds payable		10,920,000		
Matured interest payable		18,638,944		
Bonds payable		875,000		
Accrued interest		1,185,462		
Total Current Liabilities		31,653,219		
Non-Current Liabilities				
Bonds payable, net		36,935,400		
Total Liabilities		68,588,619		
NET POSITION				
Net investment in capital assets		2,934,699		
Restricted - capital projects		38,407		
Unrestricted		(53,944,175)		
Total Net Position	$	(50,971,069)		

See accompanying notes to financial statements.

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New Port Tampa Bay Community Development District

STATEMENT OF ACTIVITIES

For the Year Ended September 30, 2016

								Net (Expenses)	
								Revenues and	
						Program			Changes in	
						Revenues			Net Position	
					Operating Grants		Governmental	
Functions/Programs			Expenses	and Contributions			Activities	
Governmental Activities										
General government	$	(101,777)		$	87,115	$	(14,662)	
Physical environment			(1,186)			1,015			(171)	
Interest on long-term debt			(2,859,785)			12,087			(2,847,698)	
Total Governmental Activities		$	(2,962,748)		$	100,217			(2,862,531)	
		General Revenues					
		Investment income				24	
		Land conveyed to the SPE			(20,000,000)	
			Change in Net Position			(22,862,507)	
		Net Position - October 1, 2015			(28,108,562)	
		Net Position - September 30, 2016		$	(50,971,069)	

See accompanying notes to financial statements.

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New Port Tampa Bay Community Development District

BALANCE SHEET

GOVERNMENTAL FUNDS

September 30, 2016

											Total		
					Debt			Capital		Governmental		
		General			Service			Projects			Funds		
ASSETS													
Cash	$	1,685	$	-	$	-	$	1,685		
Accounts receivable		29,560			-			-			29,560		
Prepaid expenses		4,241			-			1,556			5,797		
Restricted assets													
Investments, at fair value		-			8,459			36,851			45,310		
Total Assets	$	35,486		$	8,459		$	38,407		$	82,352		
LIABILITIES AND FUND BALANCES													
													
LIABILITIES													
Accounts payable and accrued expenses	$	29,572	$	-	$	-	$	29,572		
Unearned revenue		4,241			-			-			4,241		
Matured bonds payable		-	10,920,000			-			10,920,000		
Matured interest payable		-		18,638,944			-			18,638,944		
Total Liabilities		33,813	29,558,944			-			29,592,757		
FUND BALANCES													
Nonspendable - prepaid expenses		4,241			-			1,556			5,797		
Restricted:													
Capital projects		-			-			36,851			36,851		
Unassigned		(2,568)	(29,550,485)			-		(29,553,053)		
Total Fund Balances		1,673	(29,550,485)			38,407	(29,510,405)		
Total Liabilities and Fund Balances	$	35,486	$	8,459		$	38,407		$	82,352		

See accompanying notes to financial statements.

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New Port Tampa Bay Community Development District

RECONCILIATION OF TOTAL GOVERNMENTAL FUND BALANCES TO NET POSITION OF GOVERNMENTAL ACTIVITIES

September 30, 2016

Total Governmental Fund Balances

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

Capital assets, construction in progress, used in governmental activities are not current financial resources and therefore, are not reported at the governmental fund level.

Long-term liabilities, including bonds payable ($(38,100,000)) net of bond discount, net ($289,600) are not due and payable in the current period and therefore, are not reported at the governmental fund level.

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

Net Position of Governmental Activities

$ (29,510,405)

17,535,198

(37,810,400)

(1,185,462)

$ (50,971,069)

See accompanying notes to financial statements.

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New Port Tampa Bay Community Development District

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES

IN FUND BALANCES - GOVERNMENTAL FUNDS

For the Year Ended September 30, 2016

											Totals	
					Debt			Capital		Governmental	
	General			Service			Projects			Funds	
REVENUES												
Contributions	$	91,238	$	-	$	12,087	$	103,325	
Investment income		-			4			20			24	
Total Revenues		91,238			4			12,107			103,349	
EXPENDITURES												
Current												
General government		85,988			-			15,789			101,777	
Physical environment		1,186			-			-			1,186	
Debt service												
Principal		-			825,000			-			825,000	
Interest		-			2,845,108			-			2,845,108	
Other		-			1,259			-			1,259	
Total Expenditures		87,174			3,671,367			15,789			3,774,330	
Net Change in Fund Balances		4,064			(3,671,363)			(3,682)			(3,670,981)	
Fund Balances - October 1, 2015		(2,391)			(25,879,122)			42,089			(25,839,424)	
Fund Balances - September 30, 2016	$	1,673	$	(29,550,485)	$	38,407	$	(29,510,405)	

See accompanying notes to financial statements.

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New Port Tampa Bay Community Development District

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS

TO THE STATEMENT OF ACTIVITIES

For the Year Ended September 30, 2016

Net Change in Fund Balances -Total Governmental Funds

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

During the year, land was conveyed to New Port Tampa CDD Holdings, LLC (SPE). This amount was recognized as an expenditure in a prior year at the governmental fund level.

Repayments of bond principal are expenditures in the governmental funds statements, but the repayment reduces long-term liabilities in the Statement of Net Position.

Amoritization of bond discounts does not require the use of current financial resources and therefore, is not reported in the governmental funds. This is the amount of amortiziation in the current period.

Revenues in the Statement of Activities that do not provide current financial resources are deferred in the governmental fund statements. This is the change in deferred inflows of resources in the current period.

Change in Net Position of Governmental Activities

$  (3,670,981)

(20,000,000)

825,000

(13,418)

(3,108)

$ (22,862,507)

See accompanying notes to financial statements.

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New Port Tampa Bay Community Development District

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN

FUND BALANCES - BUDGET AND ACTUAL - GENERAL FUND

For the Year Ended September 30, 2016

										Variance with		
										Final Budget		
	Original			Final						Positive		
REVENUES	Budget		Budget			Actual		(Negative)		
													
Contributions	$	108,500	$	108,500	$	91,238	$	(17,262)		
EXPENDITURES													
Current													
General government		73,500			73,500			85,988			(12,488)		
Physical environment		35,000			35,000			1,186			33,814		
Total Expenditures		108,500			108,500			87,174			21,326		
Net Change in Fund Balances		-			-			4,064			4,064		
Fund Balances - October 1, 2015		-			-			(2,391)			(2,391)		
Fund Balances - September 30, 2016	$	-	$	-	$	1,673	$	1,673		

See accompanying notes to financial statements.

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New Port Tampa Bay Community Development District

NOTES TO FINANCIAL STATEMENTS

September 30, 2016

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.

1.	Reporting Entity

	The District was established on August 25, 2005, pursuant to the Uniform Community Development District Act of 1980, Chapter 190, Florida Statutes, and was adopted as Hillsborough County Ordinance 97-12, 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 New Port Tampa Bay Community Development District. The District is governed by a Board of Supervisors who are elected to four year terms. The District operates within the criteria established by Chapter 190.

	As required by GAAP, these financial statements present the New Port Tampa Bay 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 by the Governmental Accounting Standards Board, the District has identified one component unit.

	New Port Tampa CDD Holdings, Inc. (the “SPE”) is a special purpose entity consistent with provisions in the Trust indenture for the 2006A and 2006B Special Assessment Revenue Bonds for the temporary purpose of owning, maintaining, selling or disposing of the property related to the bonds.

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New Port Tampa Bay Community Development District

NOTES TO FINANCIAL STATEMENTS

September 30, 2016

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

2.	Measurement Focus and Basis of Accounting

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

•	Government-wide financial statements

•	Fund financial statements

•	Notes to financial statements

a.	Government-wide Financial Statements

	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 contributions and interest. Program revenues are netted with program expenses in the statement of activities to present the net cost of each program.

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

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

b.	Fund Financial Statements

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

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

-	18 -

New Port Tampa Bay Community Development District

NOTES TO FINANCIAL STATEMENTS

September 30, 2016

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 classifies 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.

-	19 -

New Port Tampa Bay Community Development District

NOTES TO FINANCIAL STATEMENTS

September 30, 2016

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

2.	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. Interest associated with the current fiscal period is considered to be an accrual item and so has been recognized as revenue of the current fiscal period.

	Under the current financial resources measurement focus, only current assets and current liabilities are generally included on the balance sheet. The reported fund balance is considered to be a measure of “available spendable resources”.

	Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of “available spendable resources” during a period.

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

	Amounts expended to acquire capital assets are recorded as expenditures in the year that resources 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.

3.	Basis of Presentation

a.	Governmental Major Funds

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

-	20 -

New Port Tampa Bay Community Development District

NOTES TO FINANCIAL STATEMENTS

September 30, 2016

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

3.	Basis of Presentation (Continued)

a.	Governmental Major Funds (Continued)

	Debt Service Funds - Accounts for debt service requirements to retire the special assessment bonds which were used to finance the construction of District infrastructure improvements.

	Capital Projects Funds – Accounts for financial resources to be used in the acquisition and construction of infrastructure improvements within the boundaries of the District.

b.	Non-current Governmental Assets/Liabilities

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

4.	Assets, Liabilities, and Net Position or Equity

a.	Cash and Investments

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

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

1.	Direct obligations of the United States Treasury;

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

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

4.	Securities and Exchange Commission, registered money market funds with the highest credit quality rating from a nationally recognized rating agency.

-	21 -

New Port Tampa Bay Community Development District

NOTES TO FINANCIAL STATEMENTS

September 30, 2016

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

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

b.	Restricted Net Position

	Certain net position of the District is classified as restricted assets on the statement of net position because their use is limited either by law through constitutional provisions or enabling legislation; or by restrictions imposed externally by creditors. In a fund with both restricted and unrestricted assets, qualified expenses are considered to be paid first from restricted net position and then from unrestricted net position.

c.	Capital Assets

	Capital assets, which include construction in progress, are reported in the governmental activities column.

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

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

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

d.	Unamortized Bond Discounts

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

e.	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.

-	22 -

New Port Tampa Bay Community Development District

NOTES TO FINANCIAL STATEMENTS

September 30, 2016

NOTE B – RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS

1.	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, $(29,510,405), differs from “Net Position” of governmental activities, $(50,971,069), 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 (land, buildings and improvements and infrastructure that are 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	$   17,535,198

Long-term debt transactions

Governmental Activities long-term liabilities are not due and payable in the current period and 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, 2016 were:

Bonds payable	$	(38,100,000)	
Bond discount, net		289,600	
Total long-term liabilities	$	(37,810,400)	

Accrued interest

Accrued liabilities in the Statement of Net Position differ from the amount reported in governmental funds due to the accrued interest on bonds.

Accrued interest	$   (1,185,462)	

2.	Explanation of Differences Between the Governmental Fund Operating Statements and the Statement of Activities

	The “net change in fund balances” for government funds, $(3,670,981), differs from the “change in net position” for governmental activities, $(22,862,507), 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 on the next page.

-	23 -

New Port Tampa Bay Community Development District

NOTES TO FINANCIAL STATEMENTS

September 30, 2016

NOTE B – RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS (CONTINUED)

2.	Explanation of Differences Between the Governmental Fund Operating Statements and the Statement of Activities (Continued)

	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 are allocated over their useful lives as depreciation expense. Therefore, when those assets are conveyed, a fund level expenditure is not recorded, but the undepreciated balance is shown as a special item in the Statement of Activities. The following is the amount of land conveyed.

Land conveyed to the SPE	$ (20,000,000)	

Long-term debt transactions

Repayments of bond principal are reported as an expenditure in the governmental funds and, thus, have the effect of reducing fund balance because current financial resources have been used.

Bond principal matured	$	825,000		
Bond discount amortization		(13,418)	
Total	$	811,582		

Deferred inflows of resources

Deferred inflows of resources reported in the governmental funds were recognized as revenues in a prior year in the Statement of Activities.

Deferred inflows of resources	$	(3,108)

- 24 -

New Port Tampa Bay Community Development District

NOTES TO FINANCIAL STATEMENTS

September 30, 2016

NOTE C - CASH AND INVESTMENTS

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

Custodial Credit Risk - Deposits

Custodial credit risk is the risk that in the event of a bank failure, the District's deposits may not be returned to it. The District does not have a formal deposit policy for custodial credit risk; however, they follow the provisions of Chapter 280, Florida Statutes regarding deposits and investments. As of September 30, 2016, the District's bank balance was $1,793 and the carrying value was $0. 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.

As of September 30, 2016, the District had the following investments and maturities:

Investment		Maturities			Fair Value	
Managed Money Market Account		N/A		$	45,310	

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 in Managed Money Market Accounts is considered a Level 1 assets.

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.

- 25 -

New Port Tampa Bay Community Development District

NOTES TO FINANCIAL STATEMENTS

September 30, 2016

NOTE C - CASH AND INVESTMENTS (CONTINUED)

Credit Risk

The District's investments in Managed Money Market Accounts 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 Managed Money Market Accounts were not rated by any nationally recognized rating agency.

Concentration of Credit Risk

The District places no limit on the amount it may invest in any one fund. The investments in Managed Money Market Accounts are 100% of the Districts total investments.

The types of deposits and investments and their level of risk exposure as of September 30, 2016 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 – ECONOMIC DEPENDENCY AND RELATED PARTIES

A substantial portion of the District’s activity is dependent upon the continued involvement of the bondholder controlled SPE, the loss of which could have a materially adverse effect on the District. In addition, the Board of Supervisors is comprised entirely of individuals affiliated with the project.

NOTE E – CAPITAL ASSETS

Capital Asset activity for the year ended September 30, 2016 was as follows:

		Balance									Balance		
		October 1,		Additions			Deletions		September 30,		
Governmental activities:		2015								2016		
													
Capital assets, not being depreciated:													
Land and land improvements	$	20,000,000	$	-	$	(20,000,000)	$	-		
Construction in progress		17,535,198			-			-			17,535,198		
Total Capital Assets, Not Depreciated		37,535,198			-			(20,000,000)			17,535,198		
Governmental Activities Capital Assets	$	37,535,198		$	-		$	(20,000,000)		$	17,535,198		

- 26 -

New Port Tampa Bay Community Development District

NOTES TO FINANCIAL STATEMENTS
September 30, 2016

NOTE F – LONG-TERM DEBT

The following is a summary of activity in the long-term debt account group of the District for the year ended September 30, 2016:

Long-term debt at October 1, 2015

Principal payments moved to matured bonds payable Long-term debt at September 30, 2016

Less: bond discount, net Bonds Payable, Net

Long-term debt is comprised of the following:

Special Assessment Bonds

$43,510,000 Series 2006A Special Assessment Bonds, due in annual principal installment beginning May 1, 2009, maturing May 1, 2038. Interest at a rate of 5.875% is due on May 1 and November 1 beginning May 1, 2006.

$	38,925,000

825,000

38,100,000

(289,600)

$	37,810,400

$  38,100,000

Less: bond discount, net	(289,600)	
Bonds Payable, Net	$  37,810,400	

The District has not paid a scheduled debt service payment on Series 2006A and 2006B Bonds since fiscal year 2010. As a result, the Series 2006A and 2006B Bonds are in default. The Series 2006B bond fully matured in November 2012. The past due payments on the Series 2006A and Series 2006B are reflected as matured bonds payable, $10,920,000, and matured interest payable, $18,638,944, in the accompanying financial statements.

- 27 -

New Port Tampa Bay Community Development District

NOTES TO FINANCIAL STATEMENTS

September 30, 2016

NOTE F – LONG-TERM DEBT (CONTINUED)

The annual requirements to amortize the principal and interest of bonded debt outstanding as of September 30, 2016 are as follows:

Year Ending										
September 30,			Principal			Interest			Total	
2017	$	875,000	$	2,238,375	$	3,113,375	
2018			925,000			2,186,969			3,111,969	
2019			980,000			2,132,625			3,112,625	
2020			1,040,000			2,075,050			3,115,050	
2021			1,105,000			2,013,950			3,118,950	
2022-2026			6,600,000			9,015,188			15,615,188	
2027-2031			8,860,000			6,826,456			15,686,456	
2032-2036			11,890,000			3,888,956			15,778,956	
2037-2038			5,825,000			518,469			6,343,469	
Totals	$	38,100,000	$	30,896,038	$	68,996,038	

Significant Bond Provisions

The Series 2006A Bond is subject to redemption at the option of the District prior to their maturity, in whole or in part, at any time after May 1, 2016, at a redemption price of par, plus accrued interest at the time of redemption. The Series 2006B Bond is not subject to optional redemption. The 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 Bond indenture.

The Bond Indenture established certain amounts be maintained in a reserve account. In addition, the Bond 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.

- 28 -

New Port Tampa Bay Community Development District

NOTES TO FINANCIAL STATEMENTS

September 30, 2016

NOTE F – LONG-TERM DEBT (CONTINUED)

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:

Reserve Fund - The 2006A and 2006B Reserve Accounts are funded from the proceeds of the 2006 Bonds in amounts equal to the Reserve Account Percentage times the Deemed Outstanding Principal for each respective bond. Monies held in the reserve accounts will be used only for the purposes established in the Trust Indenture.

		Reserve			Reserve	
		Balance		Requirement	
						
Series 2006A Special Assessment Revenue Bonds	$	-	$	3,049,444	
Series 2006B Special Assessment Revenue Bonds	$	8,459	$	160,458	

NOTE G – RISK MANAGEMENT

The District is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; and natural disasters for which the government carries commercial insurance. Settled claims from these risks have not exceeded commercial insurance coverage over the past three years.

NOTE H - TRI-PARTY AGREEMENT

On August 2, 2016, the District entered into a tri-party agreement with New Port Tampa CDD Holdings, LLC (SPE) and the City of Tampa for the development of certain infrastructure within the District. The development and improvements are to be completed in two or more phases which will be funded by New Port Tampa CDD Holdings, LLC (SPE). As each phase is completed, the infrastructure is to be conveyed to the City of Tampa.

NOTE I – SUBSEQUENT EVENT

On December 13, 2016, the District issued a Promissory note with New Port Tampa Holdings, LLC, not to exceed $7,500,000. The note is to be used to complete the Phase 1 Improvements.

- 29 -

~~~l Berger, Toombs, Elam, ,QI Gaines & Frank

Certified Public AccountanlS	Pl

600 Citrus Avenue

Suile 200

Fort Pierce, Florida 34950

772/461-6120 // 461-1155 FAX: 772/468-9278

INDEPENDENT AUDITOR'SREPORT 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

New Port Tampa Bay Community Development District
Hillsborough County, Florida

We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of New Port Tampa Bay Community Development District, as of and for the year ended September 30, 2016, and the related notes to the financial statements, and have issued our report thereon dated May 2, 2017.

Internal Control Over Financial Reporting

In planning and performing our audit, we considered New Port Tampa Bay Community Development District'sinternal control over financial reporting to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of New Port Tampa Bay Community Development District'sinternal control. Accordingly, we do not express an opinion on the effectiveness of New Port Tampa Bay Community Development District'sinternal control over financial reporting.

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'sfinancial 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 over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

fort Pie!~6 SJuarl

Member AICPA	Member AICPA Division For CPA Firms	Member FICPA

Private Companies Practice Section

~ Berger, Toombs, Elam,
Q;p Gaines & Frank

To the Board of Supervisors

New Port Tampa Bay Community Development District

Compliance and Other Matters

As part of obtaining reasonable assurance about whether New Port Tampa Bay Community Development District'sfinancial 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. Certain findings are addressed in the accompanying Management Letter.

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.

r;	/	,	':•'"
.J£Jafk:. V«hlkXY: f1,

Berger,4a~.'t3~4:t

Certified Public Accountants Fort Pierce, Florida

May 2, 2017

- 31 -

~~~t ...o,,

Berger,	Toombs,	
Gaines	& Frank	
Certilied Public Accountants	PL	
600 Citrus Avenue		
Suite 200			
Fort Pierce, Florida 34950		
772/461-6120	// 461-1155		
FAX: 772/468-9278		

Elam,

MANAGEMENT

LETTER

To the Board of Supervisors
New Port Tampa Bay Community Development District
Hillsborough County, Florida

Report on the Financial Statements

We have audited the District as of and for dated May 2, 2017.

financial the year

statements of the New ended September 30,

Port Tampa Bay Community Development 2016, and have issued our report thereon

Auditor'sResponsibility

We conducted our audit in accordance with auditing standards generally	
States;  the  standards  applicable  to  financial  audits  contained	in	
Standards, issued by the Comptroller General of the United States and	
of the Florida Auditor General.		

accepted in the United Government Auditing Chapter 10.550, Rules

Other Reports and Schedule

We have issued our Independent Auditor'sReport on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and our Independent Auditor'sReport on an examination conducted in accordance with AICPA Professionals Standards, Section 601 regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in that report, which is dated May 2, 2017, 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 address in the Management Letter, if not already addressed in the auditor'sreport on compliance and internal controls, whether or not recommendations made in the preceding annual financial report have been followed. The following recommendations were made in a preceding audit report:

IC

2009-002

Finding: The District is not in compliance with certain provisions of those related to 1) levying and collecting assessments to provide maintaining adequate funds in the debt service reserve accounts, debt service principal and interest payments.

its bond indenture including payment of debt service, 2) and 3) making semi-annual

Recommendation: The District should continue pursuing available remedies to ensure funds are available to make the debt service payments.

Member AICPA

Fort Pi~r<:f2~tuart

Member AICPA Division For CPA Firms

Private Companies Practice Section

Member

FICPA

~ Ber:ger, Toombs, Elam, qj1 Gaines & Frank

To the Board of Supervisors
New Port Tampa Bay Community Development District

IC 2009-002 (Continued}

Management Response: The District has successfully foreclosed on the property within the District securing the repayment of the District'sbond debt. Thus, the District is in compliance with the terns of applicable bond trust indentures requiring the District to foreclose in the event of default.

Current Status: This finding has not been corrected as of September 30, 2016. In the current year, the District conveyed land to the SPE for the purpose of reconfiguring certain land ownership and to facilitate development and sale to third parties. Some of the land may be be exchanged within land owned by the SPE, or the SPE will cause bonds to be cancelled corresponding to the value of the property converted to private ownership.

Finding 2015-001 Financial Condition Assessment

Finding - The District'sfinancial condition continues to deteriorate. As of September 30, 2016, the District reported a fund balance deficit for which sufficient resources were not available to cover the deficit in the debt service fund. The District has not had sufficient funds to make a scheduled debt service payment since May 2010 and the Series 2006 Bonds remain in default.

Recommendation - The District should continue taking the necessary steps to improve the deteriorating financial condition.

Management Response - The District is working directly with the Trustee and Bondholders to resolve all financial issues related to the non-payment of assessments which resulted in a foreclosure lawsuit, settlement agreement, insufficient funds to meet debt service requirements, fund balance deficits and failure to meet Debt Service Reserve Fund requirements.

Current Status: This finding has not been corrected as of September 30, 2016. The District failed to make the current year scheduled principal payment. Additionally, the Distrcit had a net deficit fund balance in the Debt Service Fund at September 30, 2016.

- 33-

~ ~

Berger,
Gaines

Toombs,
& Frank

Elam,

To the Board of Supervisors																													
New Port Tampa Bay Community Development District																			
Financial Condition																																
Section 10.554(1 )(i)5.a. and	10.556(7), Rules of the Auditor General, requires			that we apply		
										
appropriate procedures	and	report the results of our determination		as to whether or not New		
									the	conditions		
Port Tampa	Bay Community Development District has	met	one or more of					
						conditions		
described in	Section	218.503(1), Florida Statutes, and identification of the specific			
								
met. In connection	with our audit, we determined that the New Port Tampa Bay Community		
															described in	Section	218.503(1),	Florida		
Development District has one or more of the conditions						

Statutes.																																			
Pursuant to Sections 10.554(1)(i)5.c. and 10.556(8), Rules of the Auditor	General, we applied		
									the		
													.								responsibility to monitor			
														It is management's														
financial conditions assessment procedures																our financial		
New Port Tampa  Bay	Community	Development  District's financial  condition;			
					and	the		
condition assessment	was based in	part on the representations	made by management				

review of the financial information provided	by the same.																		
																							
Annual Financial Report																													
				.b. and	10.556(7),	Rules of the Auditor General, requires that we apply		
Section 10.554(1)(i)5		and report the results of our determination	as to whether the	annual		
appropriate procedures					
					for the fiscal year		
financial report for the New Port Tampa Bay Community Development District			
								to		
ended September	30,	2016, filed	with the Florida Department of Financial Services pursuant			
						is in agreement	with the annual financial audit report for		
Section 218.32(1 )(a), Florida Statutes,				
				with our audit, we determined that		
the fiscal year ended September	30,	2016.	In	connection			
																					
		.																									
																																			
these two reports	were in agreement																									
																																		
Other Matters																																		
Section  10.554(1)(i)2	.,	Rules  of	the	Auditor	General,		requires		that	we	address	in	the		
												In	connection	with		
												management.					
Management Letter any recommendations to improve financial						

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

which warrants the attention of those charged with governance															
did not have any such findings.																												

-

34-

00 Berger, Toombs, Elam,
'-0'Caines & Frank

To the Board of Supervisors
New Port Tampa Bay Community Development District

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 .
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Berger, o~m, Gaines & Frank Certified Public Accountants PL
Fort Pierce, Florida

May 2, 2017

- 35-

~~tl Berger, Toombs, Elam, ,O,, Gaines & Frank

Cenified Public Accountants	Pl

600 Citrus Avenue

Suite 200

Fort Pierce, Florida 34950

772/461-6120 /1461-1155 FAX: 772/468-9278

INDEPENDENT ACCOUNTANT'SREPORT/COMPLIANCE

WITH SECTION 218.415, FLORIDA STATUTES

To the Board of Supervisors
New Port Tampa Bay Community Development District
Hillsborough County, Florida

We have examined New Port Tampa Bay Community Development District'scompliance with Section 218.415, Florida Statutes during the year ended September 30, 2016. Management is responsible for New Port Tampa Bay Community Development District'scompliance with those requirements. Our responsibility is to express an opinion on New Port Tampa Bay Community Development District'scompliance 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 New Port Tampa Bay Community Development District'scompliance 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 New Port Tampa Bay Community Development District'scompliance with the specified requirements.

In our opinion, New Port Tampa Bay Community Development District complied, in all material respects, with the aforementioned requirements during the year ended September 30, 2016.
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Berger, Toombs, Elam, Gaines & Frank
Certified Public Accountants PL
Fort Pierce, Florida

May 2, 2017

Fort !i~ff! Stuart

Member AICPA	Member AICPA Division For CPA firms	Member FICPA

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