New Port-Tampa Bay Community Development District

ANNUAL FINANCIAL REPORT

September 30, 2019

New Port-Tampa Bay Community Development District ANNUAL FINANCIAL REPORT
September 30, 2019 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

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

600 Citrus Avenue
Suite 200
Fort Pierce, Florida 34950
7721461-6120 II 461-1155

FAX: 7721468-9278
REPORT OF INDEPENDENT AUDITORS

To the Board of Supervisors
New Port-Tampa Bay Community Development District Tampa, 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, 2019, and the related notes to financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; 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’s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit.  We conducted our audit 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’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 we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Member AICPA

Fort Pierce I Stuart
- 1 -
Member AICPA Division for CPA Firms Private Companies practice Section

Member FICPA

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’s primary 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, 2019, 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, 2019, 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, 2019, 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.

-OJ Gaines & Frank

�rr...p Berger, Toombs,  Elam,

Certified PublicAccountants Pl

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 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’s responses 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 July 15, 2020 on our consideration of the District’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations and contracts. The purpose  of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering New Port-Tampa Bay Community Development District’s internal control over financial reporting and compliance.

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

Fort Pierce, Florida July 15, 2020

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.

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, 2019.

The District’s total assets were exceeded by total liabilities by $(33,604,263) (deficit net position). Net investment in capital assets for the District was $4,011,892. Unrestricted net position for Governmental Activities was $(37,749,313). Governmental activities restricted net position was $133,158.

Governmental activities revenues totaled $56,662 while governmental activities  expenses and refund of contributions totaled $7,200,830.

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
	2019	2018	
Current assets	$	247,780	$	1,616,737	
Restricted assets	15,851	41,448	
Capital assets	26,184,223	29,760,322	
Total Assets	26,447,854	31,418,507	
Current liabilities	18,521,464	15,321,367	
Non-current liabilities	41,530,653	42,557,235	
Total Liabilities	60,052,117	57,878,602	

Net Position			
Net investment in capital assets	4,011,892	5,314,723	
Restricted	133,158	813,012	
Unrestricted	(37,749,313)	(32,587,830)	

Total Net Position	$ (33,604,263)	$ (26,460,095)

The decrease in current assets was related to additions to construction in progress in the current year.

The decrease in capital assets is related to the conveyance of certain capital assets to another governmental entity.

The increase in current liabilities is primarily due to the increase in matured bond principal and matured interest payable in the current year related to the nonpayment of current year debt service.

The decrease in restricted assets is related to the current year capital additions.

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	2019	2018	
Charges for services	$	55,428	$	55,356	
Grants and contributions	-	12,176,883	
General Revenues			
Miscellaneous revenues	642	2,085	
Investment earnings	592	10,735	
Total Revenues	56,662	12,245,059	

Expenses			
General government	117,767	89,716	
Physical environment	151,934	-	
Interest and other charges	2,849,157	3,015,193	
Total Expenses	3,118,858	3,104,909	
Conveyance of assets	4,081,972	-	
Refund of contributions	-	2,871,941	
Change in Net Position	(7,144,168)	6,268,209	
Net Position - Beginning of Year	(26,460,095)	(32,728,304)	
Net Position - End of Year	$ (33,604,263)	$ (26,460,095)	

The increase in general government is primarily due to the increase in contingency expenses in the current year.
The District did not receive any contributions from the bondholders and a developer in the current year.
The District refunded a prior year contribution to the bondholders in the prior year and conveyed assets to another government in the current year.

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

C apital Assets Activity

The following schedule provides a summary of the District’s capital assets as of September 30, 2019 and 2018.

Governmental Activities 2019	2018

Construction in progress

  $ 26,184,223 

  $ 29,760,322 

In the current year, $505,873, was added to construction in progress and $4,081,972 was conveyed to other governments.
G eneral Fund Budgetary Highlights
The actual expenditures were less than budgeted amounts primarily because miscellaneous expenditures were less than anticipated.
The September 30, 2019 budget was amended for contingency expenditures not anticipated in the original budget.
D ebt 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, 2019, the Series 2006A and 2006B Bonds were in default and matured bonds payable totaled $13,465,000. The balance not yet matured outstanding at September 30, 2019 was $35,320,000.

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 terminate on the five-year anniversary date of the note. The balance outstanding at September 30, 2019 was $7,500,000.

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

E conomic Factors and Next Year’s Budget

The District conveyed certain land in exchange for the cancellation of the outstanding bond debt in October 2019.

R equest 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, Public Financial Management, Inc., 12051 Corporate Blvd., Orlando, Florida 32817.

STATEMENT OF NET POSITION
September 30, 2019

ASSETS
Current Assets Cash

Governmental Activities

$	237,997

Assessments receivable	451
Interest receivable	23
Prepaid expenses	8,559
Deposits	 	750 
Total Current Assets	 	247,780 
Non-Current Assets Restricted Assets
Investments - debt service	6,913
Investments - capital projects	8,938
Capital Assets, Not Being Depreciated
Construction in progress	 	26,184,223 
Total Non-Current Assets	 	26,200,074 
Total Assets	 	26,447,854 

LIABILITIES
Current Liabilities
Accounts payable and accrued expenses	16,265	
Retainage payable	121,996	
Matured interest payable	2,831,474	
Matured bonds payable	13,465,000	
Bonds payable	1,040,000	
Accrued interest	 	1,046,729 	
Total Current Liabilities	 	18,521,464 	
Non-Current Liabilities
Bonds payable, net	
34,030,653	
Note payable	 	7,500,000 	
Total Non-Current Liabilities	 	41,530,653 	
Total Liabilities	 	60,052,117 	
NET POSITION
Net investment in capital assets	
4,011,892	
Restricted - capital projects	133,158	
Unrestricted	 	(37,749,313) 	
Total Net Position	  $	(33,604,263) 	

See accompanying notes to financial statements.

New Port-Tampa Bay Community Development District STATEMENT OF ACTIVITIES
For the Year Ended September 30, 2019

Functions/Programs	Expenses

Program Revenues
Charges for Services

Net (Expenses) Revenues and Changes in  Net Position

Governmental Activities

Governmental Activities
General government		
$	(117,767)		
$	55,428		
$	(62,339)	
Physical environment		(151,934)		-		(151,934)	
Interest and other charges		 	(2,849,157) 		 	- 		 	(2,849,157) 	
Total Governmental Activities		  $	(3,118,858) 		  $	55,428 		(3,063,430)	

General Revenues
Investment income	

592	
Miscellaneous revenues	 	642 	
Total General Revenues	 	1,234 	
Conveyance of assets	 	(4,081,972) 	
Change in Net Position	(7,144,168)	
Net Position - October 1, 2018	 	(26,460,095) 	
Net Position - September 30, 2019	  $	(33,604,263) 	

See accompanying notes to financial statements.

- 11 -

BALANCE SHEET – GOVERNMENTAL FUNDS
September 30, 2019

 	General		
Debt
 	Service		
Capital
 	Projects		Total Governmental
 	Funds		
ASSETS					
Cash	$ 152,051	$	-	$	85,946	$	237,997	
Assessments receivable	451	-	-	451	
Interest receivable	-	10	13	23	
Due from other funds	-	-	159,442	159,442	
Prepaid expenses	4,815	-	3,744	8,559	
Deposits	-	-	750	750	
Restricted assets					
Investments, at fair value	 	- 	 	6,913 	 	8,938 	 	15,851 	
Total Assets	   $ 157,317 	   $	6,923 	  $	258,833 	   $	423,073 	

Accounts payable and accrued expenses	$	12,586	$	-	$	3,679	$	16,265	
Retainage payable	-	-	121,996	121,996	
Due to other funds	159,442	-	-	159,442	
Matured interest payable	-	2,831,474	-	2,831,474	
Matured bonds payable	 	- 	 	13,465,000 	 	- 	 	13,465,000 	
Total Liabilities	 	172,028 	 	16,296,474 	 	125,675 	 	16,594,177 	

LIABILITIES AND FUND BALANCES LIABILITIES

Nonspendable - prepaid expenses/deposits	4,815	-	4,494	9,309	
Capital projects	-	-	128,664	128,664	
Unassigned	 	(19,526) 	    (16,289,551) 	 	- 	     (16,309,077) 	
Total Fund Balances	 	(14,711) 	    (16,289,551) 	 	133,158 	     (16,171,104) 	
Total Liabilities and Fund Balances	   $ 157,317 	   $	6,923 	  $	258,833 	   $	423,073 	

FUND BALANCES

Restricted:

See accompanying notes to financial statements.

RECONCILIATION OF TOTAL GOVERNMENTAL FUND BALANCES TO NET POSITION OF GOVERNMENTAL ACTIVITIES
September 30, 2019

Total Governmental Fund Balances	$ (16,171,104)

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.	26,184,223

Long-term liabilities, including bonds payable ($(35,320,000)) net of bond discount, net ($249,347) and note payable ($(7,500,000)) are not due and payable in the current period and therefore, are not reported
at the governmental fund level.	(42,570,653)

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

 	(1,046,729) 

Net Position of Governmental Activities	 $ (33,604,263) 

See accompanying notes to financial statements.

New Port-Tampa Bay Community Development District STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES – GOVERNMENTAL FUNDS
For the Year Ended September 30, 2019

REVENUES

Total
Debt	Capital	Governmental
 	General	 	Service	 	Projects	 	Funds	

Special assessments

$	55,428	$

-	$	-	$

55,428

Miscellaneous revenues	-	-	642	642
Investment income	 	- 	173 	419 	592 
Total Revenues	 	55,428 	173 	1,061 	56,662 

EXPENDITURES
Current
General government	93,489	1,170	23,108	117,767	
Physical environment	-	-	151,934	151,934	
Capital outlay	-	-	505,873	505,873	
Debt service					
Principal	-	980,000	-	980,000	
Interest	-	2,831,475	-	2,831,475	
Other	 	- 	 	2,117 	 	- 	 	2,117 	
Total Expenditures	 	93,489 	 	3,814,762 	 	680,915 	 	4,589,166 	
Net Change in Fund Balances	(38,061)	(3,814,589)	(679,854)	(4,532,504)	
Fund Balances - October 1, 2018	 	23,350 	 	(12,474,962) 	 	813,012 	 	(11,638,600) 	
Fund Balances - September 30, 2019	   $	(14,711) 	   $ (16,289,551) 	  $	133,158 	   $ (16,171,104) 	

See accompanying notes to financial statements.

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
For the Year Ended September 30, 2019

Net Change in Fund Balances - Total Governmental Funds	$ (4,532,504)

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
that conveyances, ($4,081,972), exceeded capital outlay, $505,873, in the current year.	(3,576,099)

Repayments of bond principal are expenditures in the governmental funds statements, but the repayment reduces long-term liabilities in the Statement
of Net Position.	980,000

Amortization 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 amortization 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.	(2,147)

Change in Net Position of Governmental Activities	 $   (7,144,168) 

See accompanying notes to financial statements.

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES – BUDGET AND ACTUAL – GENERAL FUND
For the Year Ended September 30, 2019

REVENUES

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

Special assessments

  $ 53,500 

  $ 55,428 

  $	55,428 

   $	- 

EXPENDITURES
Current
General government	 	53,500 	 	94,705 	 	93,489 	 	1,216 	
Net Change in Fund Balances	-	(39,277)	(38,061)	1,216	
Fund Balances - October 1, 2018	 	- 	 	39,277 	 	23,350 	 	(15,927) 	
Fund Balances - September 30, 2019	  $	- 	  $	- 	  $	(14,711) 	   $	(14,711) 	

See accompanying notes to financial statements.

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The financial statements of the District have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The District's more significant accounting policies are described below.

Reporting Entity

The District was established on August 25, 2005, pursuant to the Uniform Community Development District Act of 1980, Chapter 190, Florida Statutes, and was adopted as City of Tampa Ordinance 2005-233, 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 by the landowners of the District. 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, LLC (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.

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

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
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.

Fund Financial Statements

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

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

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

2. Measurement Focus and Basis of Accounting (Continued)

b. Fund Financial Statements (Continued) Governmental Funds
The District 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.

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Measurement Focus and Basis of Accounting (Continued)

b. Fund Financial Statements (Continued) Governmental Funds (Continued)
Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are considered to be available when they are collected within the current period or soon thereafter to pay liabilities of the current period. For this purpose, the District considers revenues to be available if they are collected within 60 days of the end of the current fiscal period.

Expenditures generally are recorded when a liability is incurred, as under accrual accounting. 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.

Basis of Presentation

Governmental Major Funds

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

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Basis of Presentation (Continued)

Governmental Major Funds (Continued)

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

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

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.

Assets, Liabilities, and Net Position or Equity

Cash and Investments

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

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

Direct obligations of the United States Treasury;

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

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

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

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

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

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.

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.

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.

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

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

Explanation of Differences Between the Governmental Fund Balance Sheet and the Government-wide Statement of Net Position

“Total fund balances” of the District’s governmental funds, $(16,171,104), differs from “Net Position” of governmental activities, $(33,604,263), 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.

C apital 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	$	26,184,223

L ong-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, 2019 were:

Bonds payable	$	(35,320,000)	
Note payable	(7,500,000)	
Bond discount, net	 	249,347	
Total long-term liabilities	$	(42,570,653)	

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	$	(1,046,729)

NOTE	B	–		RECONCILIATION	OF	GOVERNMENT-WIDE	AND	FUND	FINANCIAL STATEMENTS (CONTINUED)
Explanation of Differences Between the Governmental Fund Operating Statements and the Statement of Activities
The “net change in fund balances” for government funds, $(4,532,504), differs from the “change in net position” for governmental activities, $(7,144,168), 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.
C apital 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	$	505,873	
Conveyance of assets	 	(4,081,972)	
Total	$	(3,576,099)	
L ong-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	$	980,000	
Bond discount amortization	 	(13,418)	
Total	 $	966,582	

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)

A ccrued 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	$	(2,147)

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.

C ustodial 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, 2019, the District's bank balance was $238,004 and the carrying value was $237,997. 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, 2019, the District had the following investments and maturities:

Investment	Maturities	Fair Value
 	 	
Managed Money Market Account	N/A	 $	15,851 

NOTE C – CASH AND INVESTMENTS (CONTINUED)

C ustodial 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 asset.

I nterest 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.

C redit 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 investment in Managed Money Market Accounts was not rated by any nationally recognized rating agency.

C oncentration 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, 2019 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 – RELATED PARTIES
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, 2019 was as follows:

 Governmental activities:
Capital assets, not being depreciated:

Balance	Balance
October 1,	September 30,
2018	 Additions	 	Deletions		2019

Construction in progress	 $ 29,760,322   $	505,873 $ (4,081,972) $ 26,184,223 

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, 2019:

Long-term debt at October 1, 2018	$	43,800,000

Principal payments	 	(980,000) 

Long-term debt at September 30, 2019		42,820,000 Less: bond discount, net	 		(249,347) 
Bonds and Notes Payable, Net	 $	42,570,653 

NOTE F – LONG-TERM DEBT (CONTINUED)

Long-term debt is comprised of the following:

S pecial 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	$ 35,320,000	
beginning May 1, 2006.		
Less: bond discount, net	 	(249,347) 	
Bonds Payable, Net	$ 35,070,653	

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, $13,465,000, in the accompanying financial statements.

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 balance outstanding at September 30, 2019 was $7,500,000.

The annual requirements to amortize the principal and interest of bonded debt outstanding as of September 30, 2019 are as follows:

Year Ending
    September 30, 	 	Principal		 	Interest		 	Total		
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	1,240,000	1,880,294	3,120,294	
2024	1,315,000	1,807,444	3,122,444	
2025-2029	7,875,000	7,779,969	15,654,969	
2030-2034	10,570,000	5,168,531	15,738,531	
2035-2038	 	11,005,000 	 	1,663,800 	 	12,668,800 	
Totals	  $	35,320,000 	  $	24,338,069 	  $	59,658,069 	

NOTE F – LONG-TERM DEBT (CONTINUED)

S ignificant 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.

D epository 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:

R eserve 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 Balance

Reserve Requirement

 	

Series 2006A Special Assessment Revenue Bonds	$		-	$ 3,034,894 Series 2006B Special Assessment Revenue Bonds	$	6,140	$	159,663

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 – INTERFUND BALANCES

The interfund balances at year end were as follows:

 Interfund Receivables	
Capital Projects Fund

    Interfund Payable	

General Fund

  $	159,442 

The balances relate to construction proceeds deposited in 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.

NOTE J – SUBSEQUENT EVENT

In October 2019, the final distribution to Bondholders was made and all remaining Special Assessments Bonds, Series 2006A and Series 2006B were subsequently cancelled. As part of the terms of the cancellation, the Tri-Party Agreement between the District, the Trustee and The SPE, among other agreements, was terminated.

Berger, Toombs, Elam, Gaines & Frank
Certified Public Accountants PL
600 Citrus Avenue
Suite 200
Fort Pierce, Florida 34950
7721461-6120 II 461-1155
FAX: 7721468-9278

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

To the Board of Supervisors
New Port-Tampa Bay Community Development District Tampa, 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, 2019, and the related notes to the financial statements, and have issued our report thereon dated July 15, 2020.

Internal Control Over Financial Reporting

In planning and performing our audit, we considered New Port-Tampa Bay Community Development District's internal 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’s internal control. Accordingly, we do not express an opinion on the effectiveness of New Port-Tampa Bay Community Development District's internal 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's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control 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.

Member AICPA

Fort P-ie3rc1e I- Stuart
Member AICPA Division for CPA Firms Private Companies practice Section

Member FICPA

-OJ Gaines & Frank

�rr...p Berger, Toombs,  Elam,

Certified PublicAccountants Pl

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's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. 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 & Frank Certified Public Accountants PL
Fort Pierce, Florida July 15, 2020

- 32 -

Berger, Toombs, Elam, Gaines & Frank
Certified Public Accountants PL
600 Citrus Avenue
Suite 200
Fort Pierce, Florida 34950
7721461-6120 II 461-1155
FAX: 7721468-9278

MANAGEMENT LETTER
To the Board of Supervisors
New Port-Tampa Bay Community Development District Tampa, 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, 2019, and have issued our report thereon dated July 15, 2020.
Auditor’s Responsibility

We conducted our audit in accordance with auditing standards generally accepted in the United States; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States and Chapter 10.550, Rules of the Florida Auditor General.
Other Reports and Schedule

We have issued our Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and our Independent Auditor’s Report 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 July 15, 2020, should be considered in conjunction with this management letter.
Prior Audit Findings

Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been made to address findings and recommendations made in the preceding financial audit report. The following findings or recommendations were made in the preceding financial audit report:

Member AICPA

Fort Pierce I Stuart
- 33 -
Member AICPA Division for CPA Firms Private Companies practice Section

Member FICPA

-OJ Gaines & Frank

�rr...p Berger, Toombs,  Elam,

Certified PublicAccountants Pl

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) maintaining adequate funds in the debt service reserve accounts, and 3) making semi-annual 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’s bond debt. Thus, the District is in compliance with the tems 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, 2019. 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 prior year, certain lands were sold by the SPE, the proceeds transferred to the District and a significant payment was made on the matured interest payable. Subsequent to year end, in October 2019, a final distribution was made to the bondholders and all remaining outstanding Series 2006A and Series 2006B bonds were cancelled.

Finding 2015-001 Financial Condition Assessment

Finding: The District’s financial condition continues to deteriorate. As of September 30, 2019, 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, 2019. The District failed to make the current year scheduled principal payment. Additionally, the District had a net deficit fund balance in the Debt Service Fund at September 30, 2019. The District had a deficit fund balance in the Debt Service Fund at September 30, 2019, however, subsequent to year end the remaining outstanding debt was canceled and this finding should be resolved in the next fiscal year.

- 34 -

-OJ Gaines & Frank

�rr...p Berger, Toombs,  Elam,

Certified PublicAccountants Pl

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

2018-01

Finding: The actual expenditures in the General Fund exceeded the budget which is a violation of Section 189.016, Florida Statutes.

Response: Management will review spending to ensure that expenditures do not exceed appropriations in the future.

Status: This finding was resolved in the current year.

Financial Condition

Section 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, requires us to apply appropriate procedures and communicate the results of our determination as to whether or not 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 connection with our audit, we determined that the New Port-Tampa Bay Community Development District met one of the conditions described in Section 218.503(1), Florida Statutes (See findings above).

Pursuant to Sections 10.554(1)(i)5.c. and 10.556(8), Rules of the Auditor General, we applied financial conditions assessment procedures as of September 30, 2018 for the New Port-Tampa Bay Community Development District. It is management’s responsibility to monitor the New Port-Tampa Bay Community Development District’s financial condition; our financial condition assessment was based in part on the representations made by management and the review of the financial information provided by the same.

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.

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 noted no such findings.

- 35 -

-OJ Gaines & Frank

�rr...p Berger, Toombs,  Elam,

Certified PublicAccountants Pl

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.

Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL
Fort Pierce, Florida July 15, 2020

- 36 -

Berger, Toombs, Elam, Gaines & Frank
Certified Public Accountants PL
600 Citrus Avenue
Suite 200
Fort Pierce, Florida 34950
7721461-6120 II 461-1155
FAX: 7721468-9278

INDEPENDENT ACCOUNTANT’S REPORT/COMPLIANCE WITH SECTION 218.415, FLORIDA STATUTES

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

We have examined New Port-Tampa Bay Community Development District's compliance with Section 218.415, Florida Statutes during the year ended September 30, 2019. Management is responsible for New Port-Tampa Bay Community Development District’s compliance with those requirements. Our responsibility is to express an opinion on New Port-Tampa Bay Community Development District’s compliance based on our examination.

Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about New Port-Tampa Bay Community Development District’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on New Port-Tampa Bay Community Development District’s compliance 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, 2019.

Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL
Fort Pierce, Florida July 15, 2020

Member AICPA

Fort Pierce I Stuart
- 37 -
Member AICPA Division for CPA Firms Private Companies practice Section

Member FICPA