New Port Tampa Bay

Community Development District

ANNUAL FINANCIAL REPORT

September 30, 2017

New Port Tampa Bay Community Development District		
ANNUAL FINANCIAL REPORT		
Fiscal Year Ended September 30, 2017		
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	17-30	
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	31-32	
MANAGEMENT LETTER	33-36	
INDEPENDENT ACCOUNTANT’S REPORT/COMPLIANCE WITH		
SECTION 218.415 FLORIDA STATUTES	37	

~~ti ,t)J

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		
										30, 2017,	and			the		
Community Development		District	as	of	and	for the		year ended September							
									which collectively comprise the District'sbasic financial		
related notes	to financial statements,			
statements	as	listed in the table of contents.																							
Management'sResponsibility 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		
					maintenance	of internal control relevant		
								implementation, and				
America; this includes the design,					
															
					of financial statements that are free from material		
to the preparation	and fair	presentation			
misstatement, whether due	to	fraud or error.																							
Auditor'sResponsibility																																	
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		
											in		
																							
			and	the  standards  applicable  to  financial  audits  contained			
United  States		of	America						
									
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		
							the	auditor's		
									The procedures		selected depend on				
disclosures	in		the	financial	statements.							
																								
										of the  risks		of material  misstatement of the financial		
judgment,		including	the	assessment					
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		
											on	the	effectiveness of			the		
					purpose	of expressing	an	opinion								
circumstances,	but not for the												
entity's internal	control.		Accordingly,	we	express		no	such opinion.	An	audit also	includes		
evaluating	the	appropriateness	of	accounting  policies		used	and	the	reasonableness		of		
													
significant		accounting  estimates	made	by	management,	as	well		as  evaluating	the	overall		

presentation of the financial statements.																									

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

we

have obtained

is

sufficient and

appropriate

to

provide a

Member

AICPA

Fort Pierce / Stuart

- 1 - Member AICPA Division For CPA Firms

Private Companies Practice Section

Member

FICPA

f:~tl ...o,,

Berger,	Toombs,	
Gaines	& Frank	
Cenlfted Public AcmunWlts	rL	

Elam,

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	separ~te		
component	unit.	Accounting	principles			generally accepted in	the  United States of America		
							unit to	be reported with the financial	data of the		
require the financial data for the component					
								
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		
						position of the discretely presented component unit of		
above do not present fairly, the financial					
							in financial position thereof for the year		
the District	as	of September 30,	2017, or the changes			
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,	2017,  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,	2017, and the respective changes	in financial position and the		
budgetary  comparison	for the		General			Fund  for the  year then  ended  in  accordance	with		
										
					in the United States of America.							
accounting principles generally accepted									

-2-

~~Q ,OJ

Berger,	Toombs,	
Gaines	& Frank	
cenm~d Pubnc Ac:a>unWIII	l'l	

Elam,

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		
						
		Analysis  and  budgetary comparison  be  presented to		
that the	Management Discussion  and			
supplement the basic financial statements.	Such information, although not a part		of	the basic		
	Governmental  Accounting  Standards  Board  who		
financial	statements,  is  required  by	the			
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		
		supplementary	information	in  accordance  with		
certain  limited  procedures  to  the  required					
auditing	standards	generally  accepted	in	the United  States	of America,	which	consisted  of		
											the		
						of preparing the information and comparing			
inquiries	of management about the methods				
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.		
								
			on the information because the limited		
We do not express an opinion or provide any assurance			
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 June		
27, 2018 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		
				reporting		
of that report is to describe the scope	of our testing	of	internal control over financial			
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		
				
					considering  New  Port  Tampa  Bay		
accordance  with	Government  Auditing  Standards	in			
Community Development District'sinternal control over financial reporting and compliance.				
2.M4tfi, Jotmfocv (1()/!!v
0)()atiuJ 4  J1tfWJ
Berger, Toombs, Elam, Gaines & Frank

Certified Public Accountants PL

Fort Pierce, Florida

June 27, 2018

- 3 -

New Port Tampa Bay Community Development District

MANAGEMENT’S DISCUSSION AND ANALYSIS

For the Year Ended September 30, 2017

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.

- 4 -

New Port Tampa Bay Community Development District

MANAGEMENT’S DISCUSSION AND ANALYSIS

For the Year Ended September 30, 2017

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, 2017.

♦	The District’s total assets were exceeded by total liabilities by $(32,728,304) (deficit net position). Net investment in capital assets for the District was $670,882. Unrestricted net position for Governmental Activities was $(37,609,199). Governmental activities restricted net position was $4,210,013.

♦	Governmental activities revenues totaled $21,173,750 while governmental activities expenses totaled $2,930,985.

-	5 -

New Port Tampa Bay Community Development District

MANAGEMENT’S DISCUSSION AND ANALYSIS

For the Year Ended September 30, 2017

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	
				2017			2016	
Current assets	$	7,092,390	$	37,042	
Restricted assets		64,281			45,310	
Capital assets		25,628,129			17,535,196	
Total Assets			32,784,800			17,617,548	
Current liabilities		21,989,286			31,653,219	
Non-current liabilities		43,523,818			36,935,400	
Total Liabilities				65,513,104			68,588,619	
Net Position						
Net investment in capital assets		670,882			2,934,699	
Restricted		4,210,013			38,407	
Unrestricted			(37,609,199)			(53,944,175)	
Total Net Position	$	(32,728,304)	$	(50,971,069)	

The increase in total assets and net position was related to a significant contribution from the bondholders.

The decrease in current liabilities is primarily due to payments made on matured bond principal and matured interest payable in the current year.

The increase in non-current liabilities is the result of a new note payable in the current year.

- 6 -

New Port Tampa Bay Community Development District

MANAGEMENT’S DISCUSSION AND ANALYSIS

For the Year Ended September 30, 2017

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		2017			2016		
							
Grants and contributions	$	21,171,712	$	100,217		
General Revenues							
Investment earnings		2,038			24		
Total Revenues		21,173,750			100,241		
Expenses							
General government		162,153			101,777		
Physical environment		-			1,186		
Interest on long-term debt		2,768,832			2,859,785		
Total Expenses		2,930,985			2,962,748		
Conveyance of land		-			20,000,000		
Change in Net Position		18,242,765			(22,862,507)		
Net Position - Beginning of Year		(50,971,069)			(28,108,562)		
Net Position - End of Year	$	(32,728,304)	$	(50,971,069)		

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

The District received significant contributions from the bondholders and a developer to pay down matured principal and interest and fund capital improvements.

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

- 7 -

New Port Tampa Bay Community Development District

MANAGEMENT’S DISCUSSION AND ANALYSIS

For the Year Ended September 30, 2017

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, 2017 and 2016.

		Governmental Activities	
		2017		2016	
Construction in progress	$  25,628,129	$  17,535,198	

In the current year $8,092,931 was added to construction in progress.

General Fund Budgetary Highlights

The budget exceeded governmental expenditures primarily because maintenance expenditures were lower than anticipated.

There were no amendments to the September 30, 2017 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, 2017, the Series 2006A and 2006B Bonds were in default and matured bonds payable totaled $11,795,000 The balance not yet matured outstanding at September 30, 2017 was $37,225,000.

•	In December 2016, the District entered into a promissory note for $7,500,000 with an interest rate of 6.75% to complete Phase 1 improvements. If the note is not paid, the loan will automatically terminated on the five-year anniversary date of the note. The balance outstanding at September 30, 2017 was $7,500,000.

- 8 -

New Port Tampa Bay Community Development District

MANAGEMENT’S DISCUSSION AND ANALYSIS

For the Year Ended September 30, 2017

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Economic Factors and Next Year’s Budget

The District does not anticipate any economic factors to significantly affect operations for 2018.

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.

- 9 -

New Port Tampa Bay Community Development District				
STATEMENT OF NET POSITION				
September 30, 2017				
		Governmental		
ASSETS		Activities		
				
Current Assets				
Cash	$	7,059,735		
Accounts receivable		29,022		
Prepaid expenses		3,633		
Total Current Assets		7,092,390		
Non-Current Assets				
Restricted Assets				
Investments - debt service		33,712		
Investments - capital projects		30,569		
Capital Assets, Not Being Depreciated				
Construction in progress		25,628,129		
Total Non-Current Assets		25,692,410		
Total Assets		32,784,800		
LIABILITIES				
Current Liabilities				
Accounts payable and accrued expenses		2,474,541		
Retainage payable		435,009		
Matured bonds payable		11,795,000		
Matured interest payable		5,307,989		
Bonds payable		925,000		
Accrued interest		1,051,747		
Total Current Liabilities		21,989,286		
Non-Current Liabilities				
Bonds payable, net		36,023,818		
Note payable		7,500,000		
Total Non-Current Liabilities		43,523,818		
Total Liabilities		65,513,104		
NET POSITION				
Net investment in capital assets		670,882		
Restricted - capital projects		4,210,013		
Unrestricted		(37,609,199)		
Total Net Position	$	(32,728,304)		

See accompanying notes to financial statements.

- 10 -

New Port Tampa Bay Community Development District

STATEMENT OF ACTIVITIES

For the Year Ended September 30, 2017

											Net (Expenses)	
											Revenues and	
												Changes in	
						Program Revenues			Net Position	
					Operating Grants			Capital Grants		Governmental	
Functions/Programs			Expenses	and Contributions		and Contributions			Activities	
Governmental Activities													
General government	$	(162,153)		$	140,641	$	-	$	(21,512)	
Physical environment			-			-			4,816,397			4,816,397	
Interest on long-term debt			(2,768,832)			16,214,674			-			13,445,842	
Total Governmental Activities		$	(2,930,985)		$	16,355,315			4,816,397			18,240,727	
		General Revenues								
		Investment income							2,038	
			Change in Net Position						18,242,765	
		Net Position - October 1, 2016						(50,971,069)	
		Net Position - September 30, 2017					$	(32,728,304)	

See accompanying notes to financial statements.

- 11 -

New Port Tampa Bay Community Development District

BALANCE SHEET

GOVERNMENTAL FUNDS

September 30, 2017

										Total		
					Debt		Capital		Governmental		
		General			Service		Projects			Funds		
ASSETS												
Cash	$	2,721,583	$	-	$ 4,338,152	$	7,059,735		
Accounts receivable		29,022			-	-			29,022		
Due from other funds		-			-	2,718,187			2,718,187		
Prepaid expenses		-			-	3,633			3,633		
Restricted assets												
Investments, at fair value		-			33,712	30,569			64,281		
Total Assets	$	2,750,605		$	33,712		$ 7,090,541		$	9,874,858		
LIABILITIES AND FUND BALANCES												
												
LIABILITIES												
Accounts payable and accrued expenses	$	29,022	$	-	$ 2,445,519	$	2,474,541		
Retainage payable		-			-	435,009			435,009		
Due to other funds		2,718,187			-	-			2,718,187		
Matured bonds payable		-	11,795,000	-			11,795,000		
Matured interest payable		-			5,307,989	-			5,307,989		
Total Liabilities		2,747,209		17,102,989		2,880,528			22,730,726		
DEFERRED INFLOWS OF RESOURCES												
Unavailable revenues		5,872			-	-			5,872		
FUND BALANCES												
Nonspendable - prepaid expenses		-			-	3,633			3,633		
Restricted:												
Capital projects		-			-	4,206,380			4,206,380		
Unassigned		(2,476)	(17,069,277)	-	(17,071,753)		
Total Fund Balances		(2,476)		(17,069,277)		4,210,013		(12,861,740)		
Total Liabilities, Deferred Inflows												
and Fund Balances	$	2,750,605	$	33,712	$ 7,090,541	$	9,874,858		

See accompanying notes to financial statements.

- 12 -

New Port Tampa Bay Community Development District

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

September 30, 2017

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 ($(37,225,000)) net of bond discount, net ($276,182) and note payable ($(7,500,000)) are not due and payable in the current period and therefore, are not reported
at the governmental fund level.

Certain receivables are not recognized at the fund level because they are not received timely, however, at the government-wide level revenue is recognized when earned. This is the amount of receivables that were deferred inflows of resources at the 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

$ (12,861,740)

25,628,129

(44,448,818)

5,872

(1,051,747)

$ (32,728,304)

See accompanying notes to financial statements.

- 13 -

New Port Tampa Bay Community Development District

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES

IN FUND BALANCES - GOVERNMENTAL FUNDS

For the Year Ended September 30, 2017

											Total	
					Debt			Capital		Governmental	
		General			Service			Projects			Funds	
REVENUES												
Contributions	$	134,769	$	16,214,674	$	4,816,397	$	21,165,840	
Investment income		-			1,902			136			2,038	
Total Revenues		134,769			16,216,576			4,816,533			21,167,878	
EXPENDITURES												
Current												
General government		138,918			15,259			7,976			162,153	
Capital outlay		-			-			8,092,931			8,092,931	
Debt service												
Principal		-			875,000			-			875,000	
Interest		-			2,845,109			-			2,845,109	
Other		-			-			44,020			44,020	
Total Expenditures		138,918			3,735,368			8,144,927			12,019,213	
Excess of revenues over (under) expenditures		(4,149)			12,481,208			(3,328,394)			9,148,665	
Other Financing Sources (Uses)												
Issuance of long-term debt		-			-			7,500,000			7,500,000	
Net Change in Fund Balances		(4,149)			12,481,208			4,171,606			16,648,665	
Fund Balances - October 1, 2016		1,673			(29,550,485)			38,407			(29,510,405)	
Fund Balances - September 30, 2017	$	(2,476)	$	(17,069,277)	$	4,210,013	$	(12,861,740)	

See accompanying notes to financial statements.

- 14 -

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, 2017

Net Change in Fund Balances - Total Governmental Funds	$	16,648,665	
Amounts reported for governmental activities in the Statement of Activities are			
different because:			
Additions to capital assets are treated as a capital outlay expenditure at the fund level,			
but are added to capital assets at the government-wide level. This is the amount			
of capital outlay in the current year.		8,092,931	
The proceeds from a note payable is recognized as an other financing source at the fund			
level, however, at the government-wide level the proceeds increase long-term			
liabilities.		(7,500,000)	
Repayments of bond principal are expenditures in the governmental funds			
statements, but the repayment reduces long-term liabilities in the Statement			
of Net Position.		875,000	
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.		(13,418)	
Interest is reported at the fund level when paid, but is reported as incurred at the			
government-wide level. This is the change in accrued interest in the current year.		133,715	
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.			5,872	
Change in Net Position of Governmental Activities	$	18,242,765	

See accompanying notes to financial statements.

- 15 -

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, 2017

										Variance with		
										Final Budget		
	Original			Final						Positive		
REVENUES	Budget		Budget			Actual		(Negative)		
													
Contributions	$	203,000	$	203,000	$	134,769	$	(68,231)		
EXPENDITURES													
Current													
General government		53,500			53,500			138,918			(85,418)		
Physical environment		149,500			149,500			-			149,500		
Total Expenditures		203,000			203,000			138,918			64,082		
Net Change in Fund Balances		-			-			(4,149)			(4,149)		
Fund Balances - October 1, 2016		-			-			1,673			1,673		
Fund Balances - September 30, 2017	$	-	$	-	$	(2,476)	$	(2,476)		

See accompanying notes to financial statements.

- 16 -

New Port Tampa Bay Community Development District

NOTES TO FINANCIAL STATEMENTS

September 30, 2017

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.

- 17 -

New Port Tampa Bay Community Development District

NOTES TO FINANCIAL STATEMENTS

September 30, 2017

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, 2017

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, 2017

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, 2017

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, 2017

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, 2017

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

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

f.	Deferred Inflows of Resources

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

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, $(12,861,740), differs from “Net Position” of governmental activities, $(32,728,304), 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	$   25,628,129

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, 2017 were:

Bonds payable	$	(37,225,000)	
Note payable		(7,500,000)	
Bond discount, net		276,182		
Total long-term liabilities	$	(44,448,818)		

- 23 -

New Port Tampa Bay Community Development District

NOTES TO FINANCIAL STATEMENTS

September 30, 2017

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

1.	Explanation of Differences Between the Governmental Fund Balance Sheet and the Government-wide Statement of Net Position (Continued)

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	$   (1,051,747)	

Deferred Inflows of Resources

Certain receivables are not recognized as revenues because they are not currently available. At the government-wide level revenue is recognized when earned. This is the amount of revenue recognized as a deferred inflow of resources at the fund level.

Unavailable revenues	$	5,872

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

	The “net change in fund balances” for government funds, $16,648,665, differs from the “change in net position” for governmental activities, $18,242,765, 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 as follows.

	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 capitalized and the cost is allocated over their estimated useful lives as depreciation. This is the current year capital outlay.

Capital outlay	$   8,092,931

Long-term debt transactions

Proceeds from the issuance of debt are recognized as an other financing source at the fund level and increase long- term debt at the government-wide level. 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	$	875,000		
Note payable proceeds		(7,500,000)	
Bond discount amortization		(13,418)		
Total	$	(6,638,418)		

- 24 -

New Port Tampa Bay Community Development District

NOTES TO FINANCIAL STATEMENTS

September 30, 2017

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

Deferred inflows of resources

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

Deferred inflows of resources	$	5,872

Accrued interest

Interest is reported at the fund level when paid, however at the government-wide level interest is reported as incurred. This is the change in accrued interest in the current year.

Accrued interest	$   133,715

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, 2017, the District's bank balance was $8,020,423 and the carrying value was $7,059,735. 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, 2017, the District had the following investments and maturities:

Investment		Maturities			Fair Value	
Managed Money Market Account		N/A		$	64,281	

- 25 -

New Port Tampa Bay Community Development District

NOTES TO FINANCIAL STATEMENTS

September 30, 2017

NOTE C – CASH AND INVESTMENTS (CONTINUED)

Custodial Credit Risk – Deposits (Continued)

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.

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, 2017 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.

- 26 -

New Port Tampa Bay Community Development District

NOTES TO FINANCIAL STATEMENTS

September 30, 2017

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, 2017 was as follows:

	Balance							Balance		
	October 1,		Additions		Deletions		September 30,		
Governmental activities:	2016					2017		
										
Capital assets, not being depreciated:										
Construction in progress	$ 17,535,198	$ 8,092,931	$	-	$ 25,628,129		

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, 2017:

Long-term debt at October 1, 2016	$	38,100,000	
Note payable proceeds		7,500,000	
Principal payments		(875,000)	
Long-term debt at September 30, 2017		44,725,000	
Less: bond discount, net		(276,182)	
Bonds and Notes Payable, Net	$	44,448,818	

- 27 -

New Port Tampa Bay Community Development District

NOTES TO FINANCIAL STATEMENTS

September 30, 2017

NOTE F – LONG-TERM DEBT (CONTINUED)

Long-term debt is comprised of the following:

Special Assessment Bonds

$43,510,000 Series 2006A Special Assessment Bonds, due in	$	37,225,000	
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.			
Less: bond discount, net		(276,182)	
Bonds Payable, Net	$	36,948,818	

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, $11,795,000, and matured interest payable, $5,307,989, in the accompanying financial statements. During the year the District did pay $16,176,064 of the matured interest payable.

In December 2016, New Port Tampa Bay Community Development District entered into a promissory note for $7,500,000 with an interest rate of 6.75% to complete Phase 1 Improvements. If not sooner paid, the loan will automatically terminate on the five year anniversary date of the Note.

The annual requirements to amortize the principal and interest of bonded debt outstanding as of September 30, 2017 are as follows:

Year Ending																
September 30,				Principal				Interest				Total	
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				1,170,000					1,949,031					3,119,031		
2023-2027				7,000,000					8,627,438					15,627,438		
2028-2032				9,395,000					6,305,931					15,700,931		
2033-2037				12,610,000					3,190,419					15,800,419		
2038				3,000,000					176,250					3,176,250		
Totals	$	37,225,000		$	28,657,663		$	65,882,663		

- 28 -

New Port Tampa Bay Community Development District

NOTES TO FINANCIAL STATEMENTS

September 30, 2017

NOTE F – LONG-TERM DEBT (CONTINUED)

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.

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.

- 29 -

New Port Tampa Bay Community Development District

NOTES TO FINANCIAL STATEMENTS

September 30, 2017

NOTE H – INTERFUND BALANCES

The interfund balances at year end were as follows:

Interfund Payable

Interfund Receivables

Capital Projects Fund

General Fund

$	2,718,187

The balances relate to construction costs being paid out of the General Fund operating account.

NOTE I – 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.

- 30 -

~~tt ,O,,

Berger,	Toombs,	
Gaines	& Frank	
Certified Public Accountants	PL	
600 Citrus Avenue		
Suite 200			
Fort Pierce, Florida 34950	
772/461-6120	// 461-11	55	
FAX: 772/468-9278		

Elam,

INDEPENDENT AUDITOR'SREPORT ON INTERNAL CONTROL OVER FINANCIAL				
REPORTING AND	ON	COMPLIANCE	AND OTHER MATTERS BASED	ON AN AUDIT				
					WITH				
				PERFORMED IN	ACCORDANCE					
	OF FINANCIAL STATEMENTS								
										
				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		
									contained in	Government		
					applicable to financial ·audits				
States of America	and the standards					
													
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, 2017, and the related	notes to the financial statements, and have issued		
our report thereon dated June 27,	2018.																								
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		
									of		
financial statements,	but not for the purpose	of expressing an	opinion on the effectiveness			
				do		
New Port Tampa Bay Community Development District'sinternal	control.	Accordingly, we				
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		
		the normal		course of performing	their assigned	functions,		to		
management or employees,	in									
							material  weakness  is	a		
			misstatements	on	a timely	basis. A				
prevent,  or	detect	and correct								
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 js a deficiency, or a		
											than a material weakness, yet		
		in	internal control that	is less severe			
combination of deficiencies,						
																
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		
												
					weaknesses or significant deficiencies.  Given these		
in internal control	tha~	might	be material			
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.																																			

Member AICPA

Fort ~1:ff ~ Stuart

Member AICPA Division For CPA Firms

Private Companies Practice Section

Member

FICPA

~~rt ,OJ

Berger,
Gaines

Toombs,
& Frank

Elam,

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		
		of our audit, and accordingly, we do not express such		
with those provisions was not an	objective			
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.													

Berger, Toombs, Elam, Gaines

Certified Public Accountants

Fort Pierce, Florida

June 27, 2018

&

Frank

- 32 -

~~tt ,OJ

Berger,	Toombs,	
Gaines	& Frank	
Certified 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 financial statements of the New Port Tampa Bay Community Development		
District as of and for the year ended September	30,	2017, and have issued our report thereon		
				
dated June 27, 2018.				
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, AT-C Section 315	
regarding compliance requirements	in	accordance with Chapter 10.550, Rules	of the Auditor	
General.  Disclosures in that report, which is dated June 27, 2018, 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	
corrective actions have been made to	address	findings and recommendations made	
preceding financial audit report.  The following findings or recommendations were made	
preceding financial audit report:				

or in in

not the the

Member

AICPA

Fort Pierce	/ Stuart	
- 33	-	
Member AICPA Division For CPA Firms	
Private Companies Practice Section	

Member

FICPA

~~( ~

Be~ger, Toombs,
Gaines & Frank

Elam,

To the Board of Supervisors																		
New Port Tampa Bay Community Development District														
IC 2009-002																				
Finding: The District is not	in	compliance with certain provisions of	its bond indenture	including		
those related to 1) levying	and collecting assessments to provide payment of debt service,	2)		
				
		in	the debt service reserve accounts,	and	3)	making	semi-annual		
maintaining adequate funds								
debt service principal and interest payments.														
Recommendation: The District should continue pursuing available remedies to ensure funds are		
available to make the debt service payments.														
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,	2017.	In the prior 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. During the year certain lands were		
sold by the SPE and proceeds	were transferred to the District and a significant payment was		
made on the matured interest	payable.														
																	
Finding 2015-001 Financial Condition Assessment														
Finding: The District'sfinancial condition continues to deteriorate.	As of September	30, 2017,		
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, 2017.	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, 2017.									

- 34 -

~~tt ~

Berger, Toombs,	
Gaines & Frank	
Ccrtllled fub/",cAa:oonLlnU	Pl	

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 us to apply		
						as to whether or not		
appropriate procedures	and communicate	the results of our determination				
											
New Port Tampa Bay 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		
								Bay  Community		
connection	with	our  audit,	we			determined  that  the  New  Port  Tampa			
Development District did meet one of the conditions	described	in Section 218.503(1),	Florida		
							
				.																											
Statutes (See findings above)																											
									c.	and	10.556(8), Rules of the Auditor	General, we	applied		
Pursuant to Sections 10.554(1)(i)5.									30,	2017 for the New Port Tampa		
financial conditions assessment	procedures as of September				
					District.			It					responsibility to monitor the New		
Bay Community Development					is management's				our financial condition		
Port Tampa Bay Community Development District'sfinancial condition;				
assessment was based	in part	on		the representations made by management and the review	of		
the financial information provided by the same.																	
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																									
Annual Financial Report																												
Section 10.554(1 )(i)5.b.	and	10.556(7),	Rules of the Auditor General,	requires that we apply		
								as	to whether the		
appropriate procedures	and	communicate	the results of our determination				
										
annual financial	report for the New Port Tampa Bay Community Development District for the		
fiscal year ended September	30,		2017,	filed with the Florida	Department of Financial Services		
							with the annual financial		
pursuant to	Section 218.32(1)(a),		Florida	Statutes, is in	agreement			
														we		
audit report for the fiscal year ended	September 30,	2017.	In	connection with our audit,			
determined that these two reports		were		in agreement.																	
																									
Additional Matters																													
Section  10.554(1)(i)3.,	Rules		of	the  Auditor  General,  requires		us	to	communicate		
noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred,		
or are likely to have occurred,	that have	an effect on	the financial statements that is less than		
material but which warrants the attention of those charged	with governance.	In	connection	with		
							
our audit, we did not note any such findings.																	

- 35 -

~~t< ~

Berger, Toombs,	
Gaines & Frank	
CeltlfledPul;,lk-Aa::o,.ml.ints	PL	

Elam,

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		
			of Supervisors,	and		
Florida Auditor General, Federal and other granting agencies,	the Board				
					
applicable management, and is not intended to be and should not be used by anyone other than		
these specified parties.								

21,UJt1t, Jam/ool 0:0().MJ,J q-

fl/)/!A., J/4ru}j

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

June 27, 2018

-

36-

~~~t -OJ

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

Elam,

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, 2017. 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	
respects, with the aforementioned requirements during the year	

District complied, in all material ended September 30, 2017.

'.3110/::}r:g~

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

&

Frank

June 27, 2018

Member

AICPA

Fort P~e~ /_Stuart

Member AICPA  Division For CPA Firms

Private Companies Practice Section

Member

FICPA