Special District Services, Inc.

2501A Burns Road

Palm Beach Gardens, FL 33410

www.sdsinc.org

Special Districts

What a Special District Can Do

Sell tax-exempt bonds to finance the acquisition and/or construction of certain public improvements.

Dedicate to the City/County those facilities that the developer is required to dedicate by the project’s development order.

Assume the maintenance responsibilities for the improvements.

Levy non-ad valorem special assessments which are co-equal with City/County taxes and other special assessments.

Purchase, finance and construct “public infrastructure”

What is “Public Infrastructure”

Water and wastewater infrastructure Storm water management infrastructure Parks, recreational facilities and civic sites Conservation preserves and buffer landscaping Entry features and landscaping Permitting, testing and engineering Off-site improvements required by a development

order Roadways

– sidewalks, bike paths, lighting and landscaping

What a Special District Cannot Do

Take any actions which are inconsistent with the comprehensive plans, ordinances and regulations of the City/County.

Adopt its own comprehensive plan, building code or land development code.

Conflict with applicable City/County laws, rules, regulations, and policies governing planning and permitting of the development.

Allow its debt to constitute a burden on the City/County.

Provide any services or facilities which will be incompatible with the capacity and uses of the City/County’s community development services and facilities.

Allow its special assessments to impact millage caps of either the City/County or School Board or any other government.

Reporting Requirements for Special Districts

Must follow all applicable procedural and reporting rules required of municipal governments under Florida Statutes including:

– Elections– Bidding and awarding of contracts– Advertising of meetings and holding meetings in the “Sunshine”

Must fulfill governmental reporting requirements including:– Preparation and distribution of minutes to appropriate governmental

agencies– Maintenance of official records– Reporting and filling of financial information

Must establish and administer internal accounting controls.

Must disclose to potential landowners the existence of the CDD and the amount of the special assessments levied by the CDD for both debt service and operation and maintenance.

Benefits to the City/County

Growth pays for itself: “fiscal neutrality” Increase in tax base High quality improvements and amenities. CDD outlives the developer Liability for assessments limited to individual

parcels Property values maintained at higher level

Benefits to the Residents

High quality improvements and amenities Assessments must be disclosed in sales contracts Residents have the option to prepay at anytime without penalty. Resident participation and input is encouraged. Stability of collection of assessments. Liability for assessments limited to individual parcels. Meetings advertised and held in the “Sunshine”. Property values maintained at higher level. Residents gain control of the CDD over a six to eight year

period.

Benefits to Developers

Provides flexibility in initial home price points Low cost of financing Sales tax exemption on construction costs funded by the CDD Non-recourse Ability to fund off-site improvements Strong collection method for operation and maintenance

assessments

Team of Professionals for Special Districts

District

DistrictManager

District Engineer

BondCounsel

Financial Advisor

DistrictCounsel

Underwriter

Trustee

Underwriter’s Counsel