Remington Community Development District

ANNUAL FINANCIAL REPORT

September 30, 2017

Remington Community Development District

ANNUAL FINANCIAL REPORT

September 30, 2017

TABLE OF CONTENTS

	Page		
	Number		
REPORT OF INDEPENDENT AUDITORS	1-2		
MANAGEMENT’S DISCUSSION AND ANALYSIS	3-8		
BASIC FINANCIAL STATEMENTS			
Government-wide Financial Statements			
Statement of Net Position	9		
Statement of Activities	10		
Fund Financial Statements			
Balance Sheet – Governmental Funds	11		
Reconciliation of Total Governmental Fund Balances			
to Net Position of Governmental Activities	12		
Statement of Revenues, Expenditures and Changes in			
Fund Balances – Governmental Funds	13		
Reconciliation of the Statement of Revenues, Expenditures			
and Changes in Fund Balances of Governmental Funds			
to the Statement of Activities	14		
Statement of Revenues, Expenditures and Changes in Fund			
Balances – Budget and Actual – General Fund	15		
Notes to Financial Statements	16-29		
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL		
REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN			
AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH	30-31		
GOVERNMENT AUDITING STANDARDS			
MANAGEMENT LETTER	32-33		
INDEPENDENT ACCOUNTANT’S REPORT/COMPLIANCE WITH			
SECTION 218.415, FLORIDA STATUTES	34		

Remington Community Development District

MANAGEMENT’S DISCUSSION AND ANALYSIS

For the Year Ended September 30, 2017

Management’s discussion and analysis of Remington Community Development District’s (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; net investment in capital assets, restricted, and 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 debt service.

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

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Remington 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 statement is designed to provide the reader with a broad overview of the District’s finances, in a manner similar to a private sector business. In the government-wide statement of net position, the governmental activities column is presented on a consolidated basis and is reported on a full-accrual economic resource basis, which recognizes all non-current assets and receivables as well as all non- current debt and obligations. The effect of interfund activity has been eliminated from the government-wide financial statements. In contrast, the governmental fund financial statements are grouped into funds to account for and to maintain control over resources that have been segregated for specific activities or objectives. The fund financial statements are presented using the current financial resources measurement focus and the modified accrual basis where as revenues are recorded when collected in the current period or within 60 days of year-end and expenditures are recorded when a liability is incurred. The difference between the two statements arises primarily from the long-term economic focus of the Statement of Activities versus the current financial resources focus of the governmental funds. A reconciliation of the government-wide and the fund financial statement is provided to illustrate these differences.

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 exceeded total liabilities by $8,829,147 (net position). Unrestricted net position for Governmental Activities was $1,542,959. Net investment in capital assets was $7,089,925. Restricted net position was $196,263.

♦	Governmental activities revenues totaled $1,736,452 while governmental activities expenses totaled $1,744,102.

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Remington 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	$	332,430	$	434,542	
Restricted assets		1,476,889			1,355,351	
Capital assets		8,137,381			8,647,497	
Total Assets		9,946,700			10,437,390	
Deferred amount on refunding		30,498			50,830	
Current liabilities		605,097			581,500	
Non-current liabilities		542,954			1,069,923	
Total Liabilities		1,148,051			1,651,423	
Net investment in capital assets		7,089,925			7,113,404	
Net position - restricted		196,263			188,927	
Net position - unrestricted		1,542,959			1,534,466	
Total Net Position	$	8,829,147		$	8,836,797	

The decrease in current assets and increase in restricted assets is a result of the transfers to the capital projects fund in the current year.

The decrease in capital assets is related to current year depreciation.

The decrease in non-current liabilities is due to the principal payments made on the bonds in the current year.

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Remington 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		
		2017				2016	
Program Revenues							
Charges for services	$	1,727,289	$	1,727,715	
General Revenues							
Miscellaneous revenues		5,441				7,304	
Investment earnings		3,722				3,342	
Total Revenues		1,736,452				1,738,361	
Expenses							
General government		186,648				197,860	
Physical environment		1,473,474				1,396,727	
Interest on long term debt		83,980				104,230	
Total Expenses		1,744,102				1,698,817	
Change in Net Position		(7,650)				39,544	
Net Position - Beginning of Year		8,836,797				8,797,253	
Net Position - End of Year	$	8,829,147	$	8,836,797	

The increase in physical environment expenses was primarily due to maintenance costs and utilities incurred in the current year.

The decrease in interest on long-term debt was primarily due to a decrease in the principal balance of the bonds.

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Remington 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 2017 and 2016.

Description			Governmental Activities		
			2017			2016		
Land and improvements	$	755,075	$	755,075		
Buildings and other improvements			1,159,828			1,100,027		
Infrastructure			16,156,678			16,120,861		
Accumulated depreciation			(9,934,200)			(9,328,466)		
Total Capital Assets (Net)	$	8,137,381	$	8,647,497		

During the year, depreciation was $605,734 and additions to buildings and other improvements and infrastructure were $59,801 and $35,817 respectively.

General Fund Budgetary Highlights

Actual governmental expenditures did not exceed budgeted expenditures for the year primarily because security and irrigation expenses were less than anticipated.

There were no amendments to the September 30, 2017 budget.

Debt Management

Governmental Activities debt includes the following:

♦	On February 1, 2008, the District issued Series 2008-2 Term Special Assessment Revenue Refunding Bonds in two portions; $2,915,000 and $2,580,000, with fixed interest rates of 3.75% and 4%, respectively. These bonds were issued to refund the District’s outstanding series 1997A Special Assessment Bond. The balance outstanding at September 30, 2017 was $1,090,000. More detailed information about the District's debt is presented in the accompanying notes to the financial statements.

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Remington 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

Remington Community Development District does not expect any economic factors to have any significant effect on the financial position or results of operations of the District in fiscal year 2018.

Request for Information

The financial report is designed to provide a general overview of Remington 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 Remington Community Development District, Governmental Management Services, 135 W. Central Blvd, Suite 320, Orlando, FL 32801.

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Remington Community Development District		
STATEMENT OF NET POSITION				
September 30, 2017				
	Governmental		
ASSETS		Activities		
				
Current Assets				
Cash	$	89,309		
Investments		194,742		
Due from other governments		9,603		
Prepaid expenses		38,776		
Total Current Assets		332,430		
Non-Current Assets				
Restricted:				
Cash		806,887		
Investments		670,002		
Capital Assets Not Being Depreciated:				
Land and improvements		755,075		
Capital Assets Being Depreciated:				
Buildings and other improvements		1,159,828		
Infrastructure		16,156,678		
Less: accumulated depreciation		(9,934,200)		
Total Non-Current Assets		9,614,270		
Total Assets		9,946,700		
DEFERRED OUTFLOWS OF RESOURCES				
Deferred amount on refunding		30,498		
LIABILITIES				
Current Liabilities				
Accounts payable and accrued expenses		51,930		
Accrued interest		18,167		
Bonds payable-current		535,000		
Total Current Liabilities		605,097		
Non-Current Liabilities				
Bonds payable		542,954		
Total Liabilities		1,148,051		
NET POSITION				
Net investment in capital assets		7,089,925		
Restricted for debt service		196,263		
Unrestricted		1,542,959		
Total Net Position	$	8,829,147		

See accompanying notes to financial statements.

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Remington Community Development District

STATEMENT OF ACTIVITIES

For the Year Ended September 30, 2017

								Net (Expenses)		
								Revenues and		
						Program			Changes in		
						Revenues			Net Position		
					Charges for		Governmental		
Functions/Programs			Expenses		Services			Activities		
Primary government											
Governmental Activities	$	(186,648)		$	203,559	$	16,911		
General government									
Physical environment			(1,473,474)			946,358			(527,116)		
Interest and other costs			(83,980)			577,372			493,392		
Total Governmental Activities		$	(1,744,102)		$	1,727,289			(16,813)		

General revenues:			
Investment earnings		3,722	
Miscellaneous revenues		5,441	
Total General Revenues		9,163	
Change in Net Position		(7,650)	
Net Position - October 1, 2016		8,836,797	
Net Position - September 30, 2017	$	8,829,147	

See accompanying notes to financial statements.

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Remington Community Development District

BALANCE SHEET

GOVERNMENTAL FUNDS

September 30, 2017

			Governmental Funds					Total		
					Debt							
					Service		Capital		Governmental		
ASSETS		General		Series 2008-2				Projects			Funds		
Cash	$	89,309	$	-			$	-	$	89,309		
Investments		194,742			-				-			194,742		
Due from other governments		6,393			3,210				-			9,603		
Prepaid expenses		38,776			-				-			38,776		
Restricted assets:														
Investments, at fair value		-			211,220				458,782			670,002		
Cash		-			-				806,887			806,887		
Total Assets	$	329,220		$	214,430			$	1,265,669		$	1,809,319		
LIABILITIES AND FUND BALANCES														
														
LIABILITIES														
Accounts payable and accrued expenses	$	47,670	$	-			$	4,260	$	51,930		
FUND BALANCES														
Nonspendable - Prepaid expenses		38,776			-				-			38,776		
Restricted for debt service		-			214,430				-			214,430		
Committed for pavement management		-			-				1,261,409			1,261,409		
Unassigned		242,774			-				-			242,774		
Total Fund Balances		281,550			214,430				1,261,409			1,757,389		
Total Liabilities and Fund Balances	$	329,220	$	214,430			$	1,265,669	$	1,809,319		

See accompanying notes to financial statements.

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Remington 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 not being depreciated (land and improvements) used in governmental activities are not current financial resources and therefore, are not reported
in the governmental funds.

Capital assets being depreciated (buildings and other improvements ($1,159,828), infrastructure ($16,156,678) net of accumulated depreciation ($(9,934,200))) used in governmental activities are not current financial resources

and therefore, are not reported in the governmental funds.

Bond discount ($88,247), net of amortization ($(76,201)) used in governmental

activities are not current financial resources and therefore, are not reported in the funds.

Long-term liabilities, including bonds payable and notes payable are not due and payable in the current period, and therefore are not reported in the governmental funds.

Deferred charges on refunding ($223,415), net of accumulated amortization ($(192,917)) are not current financial resources and therefore, are not reported as assets in the governmental funds.

Accrued interest expense for long-term debt is not a current financial use and; therefore is not reported in the governmental funds.

Net Position of Governmental Activities

$	1,757,389

755,075

7,382,306

12,046

(1,090,000)

30,498

(18,167)

$	8,829,147

See accompanying notes to financial statements.

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Remington Community Development District

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -

GOVERNMENTAL FUNDS

For the Year Ended September 30, 2017

				Governmental Funds					Totals		
														
				Debt Service			Capital			Governmental		
Revenues		General			2008-2			Projects				Funds		
														
Special assessments	$	1,149,917	$	577,372	$	-	$	1,727,289		
Miscellaneous revenues		5,441			-			-				5,441		
Investment earnings		2,123			581			1,018				3,722		
Total Revenues		1,157,481			577,953			1,018				1,736,452		
Expenditures														
Current														
General government		178,623			-			8,025				186,648		
Physical environment		858,640			-			9,100				867,740		
Capital outlay		-			-			95,618				95,618		
Debt service														
Principal		-			515,000			-				515,000		
Interest		-			64,200			-				64,200		
Total Expenditures		1,037,263			579,200			112,743				1,729,206		
Other financing sources (uses)														
Transfers in		-			-			230,394				230,394		
Transfers out		(230,394)			-			-				(230,394)		
Total other financing sources (uses)		(230,394)			-			230,394				-		
Net change in fund balances		(110,176)			(1,247)			118,669				7,246		
Fund Balances - October 1, 2016		391,726			215,677			1,142,740				1,750,143		
Fund Balances - September 30, 2017	$	281,550	$	214,430	$	1,261,409	$	1,757,389		

See accompanying notes to financial statements.
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Remington 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

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

Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over their estimated useful lives as depreciation. This is the amount of current year depreciation ($(605,734)) in excess of capital outlay ($95,618).

Repayments of bond principal are expenditures in the governmental funds and reduce long-term liabilities in the Statement of Net Position.

Governmental funds report bond discounts as an expenditure. However, in the Statement of Activities, this cost is allocated over the life of the bond as amortization expense. This is the amount of amortization expense in the current period related to the bond discount.

Some expenses reported in the statement of activities do not require the use of current resources and therefore, are not reported as expenditures in the governmental funds. This is the amount of amortization expense
in the current period related to the deferred amount on refunding.

In the Statement of Activities, interest is accrued on outstanding and matured bonds; whereas in governmental funds, interest expenditures are reported when due. This is the change in accrued interest from the prior year.

Change in Net Position of Governmental Activities

$	7,246

(510,116)

515,000

(8,031)

(20,332)

8,583

$	(7,650)

See accompanying notes to financial statements.
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Remington 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)		
													
Special assessments	$	1,137,222	$	1,137,222	$	1,149,917	$	12,695		
Miscellaneous revenues		5,000			5,000			5,441			441		
Investment earnings		750			750			2,123			1,373		
Total Revenues		1,142,972			1,142,972			1,157,481			14,509		
Expenditures													
Current													
General government		170,774			170,774			178,623			(7,849)		
Physical environment		873,219			873,219			858,640			14,579		
Total Expenditures		1,043,993			1,043,993			1,037,263			6,730		
Other financing uses													
Transfers out		(230,394)			(230,394)			(230,394)			-		
Net change in fund balances		(131,415)			(131,415)			(110,176)			21,239		
Fund Balances - October 1, 2016		131,415			131,415			391,726			260,311		
Fund Balances - September 30, 2017	$	-	$	-	$	281,550	$	281,550		

See accompanying notes to financial statements.

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Remington Community Development District

NOTES TO FINANCIAL STATEMENTS

September 30, 2017

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The financial statements of Remington Community Development District (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 February 28, 1994, pursuant to Osceola County Ordinance Number 94-2 and Chapter 190, Florida Statutes. The Act provides, among other things, the power to manage basic services for community development, power to borrow money and issue bonds, and to levy and assess non-ad valorem assessments for the financing and delivery of capital infrastructure. 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 governed by a five-member Board of Supervisors who are elected for two and four year terms. The Board of Supervisors of the District exercises the powers granted to the District pursuant to Chapter 190, Florida Statutes.

As required by GAAP, these financial statements present the Remington 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 in GAAP as defined by the Governmental Accounting Standards Board, the District has not identified any discretely-presented component units.

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

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Remington 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)

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 special assessments. Program revenues include charges for services and payments made by parties outside of the reporting government’s citizenry if that money is restricted to a particular program. 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 another 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.

	The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of the related cash flows. Assessments are recognized as revenues in the year they are levied.

b.	Fund Financial Statements

	Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they become measureable and available. 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.

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Remington 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)

	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.

	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.

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Remington 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 the 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 the state 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 – 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.

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Remington Community Development District

NOTES TO FINANCIAL STATEMENTS

September 30, 2017

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

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.

Debt Service Fund 2008 Bonds – Accounts for debt service requirements to retire the special assessment revenue bonds which were used, among other things, to retire the debt of the bond anticipation notes and to finance the acquisition and construction of certain master infrastructure improvements within the District.

Capital Projects Fund – The Capital Projects Fund accounts for construction of certain 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 buildings, and non-current governmental liabilities, such as general obligation bonds, 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

	Chapter 280, 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.

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Remington 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)

a.	Cash and Investments (Continued)

	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 Fund 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.

Cash equivalents include time deposits, certificates of deposit and all highly liquid debt instruments with original maturities of three months or less held in a qualified public depository.

b.	Restricted Assets

	Certain net position of the District will be 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.

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Remington 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)

c.	Capital Assets

	Capital assets, which include primarily infrastructure (e.g. roads, sidewalks, and similar items), are reported in governmental activities in the government-wide financial statements.

	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. Donated assets are recorded at estimated fair market value at the date of donation.

	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.

Depreciation of capital assets is computed and recorded by utilizing the straight- line method. Estimated useful lives of the various classes of depreciable capital assets are as follows:

Buildings and other improvements	5-30 years	
Infrastructure	25-30 years	

In the governmental fund financial statements, amounts incurred for the acquisition of capital assets are reported as fund expenditures. Depreciation expense is not reported in the governmental fund financial statements.

d.	Deferred Outflows/Inflows of Resources

	In addition to assets and liabilities, the Statement of Net Position will sometimes included a separate section for deferred outflows or inflows of resources. These separate financial statement elements represent a consumption of or acquisition of net position that applies to a future period(s) and so will not be recognized as an expense or revenue until that time.

	The District has one item qualifying as a deferred outflow of resources, deferred amount on refunding. This resulted from the difference in the carrying value of the refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt.

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Remington 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)

e.	Net Position

	Equity in the government-wide statement of net position is displayed in three categories:

1)	net investment in capital assets, 2) restricted and 3) unrestricted. Net position investment in capital assets, consists of capital assets reduced by accumulated depreciation and by any outstanding debt incurred to acquire, construct, or improve those assets. Net position is reported as restricted when there are legal limitations imposed on their use by District legislation or external restrictions by other governments, creditors, or grantors. Unrestricted net position consists of all net position that does not meet the definition of either of the other two components.

f.	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. Formal budgets are adopted for the general fund. The legal level of budgetary control is at the fund level. As a result, deficits in the budget variance columns of the accompanying financial statements may occur. All budgeted appropriations lapse at year end.

g.	Unamortized Bond Discount

Bond discounts are presented on the government- wide financial statements. The costs are amortized over the life of the bonds using the method of accounting. For financial reporting, the unamortized bond discount is netted against the applicable long-term debt.

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, $1,757,389, differs from “net position” of governmental activities, $8,829,147, 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 as follows.

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Remington 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)

	Capital related items

	When capital assets (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.

Land and improvements	$	755,075		
Buildings and other improvements			1,159,828		
Infrastructure			16,156,678		
Accumulated depreciation			(9,934,200)		
Total	$	8,137,381		

Deferred outflows of resources

Deferred outflows of resources applicable to the District’s governmental activities are not current financial resources and therefore, are not reported as assets in the governmental funds.

Deferred amount on refunding, net	$	30,498

Long-term debt transactions

Long-term liabilities applicable to the District’s governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities. All liabilities are reported in the Statement of Net Position. Balances at September 30, 2017 were:

Bonds payable	$	(1,090,000)	
Bond discount costs, net		12,046		
Total	$	(1,077,954)		

Accrued interest

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

Accrued interest	$	(18,167)

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Remington Community Development District

NOTES TO FINANCIAL STATEMENTS

September 30, 2017

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

	The “net change in fund balances” for government funds, $7,246, differs from the “change in net position” for governmental activities, $(7,650), 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 below.

	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 is allocated over their estimated useful lives and reported as depreciation expense. As a result, fund balances decrease by the amount of financial resources expended, whereas net position decrease by the amount of depreciation charged for the year.

Capital outlay	$	95,618	
Depreciation		(605,734)	
Total	$	(510,116)	

Deferred outflows of resources

Amortization of deferred outflows of resources does not require the use of current resources and therefore, are not reported as expenditures in the government funds.

Amortization of deferred amount on refunding	$	(20,332)

Long-term debt transactions

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

Bond principal payments	$	515,000		
Amortization of bond discounts			(8,031)	
Total		$	506,969		

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Remington Community Development District

NOTES TO FINANCIAL STATEMENTS

September 30, 2017

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)

	Long-term debt transactions (Continued)

Some expenses reported in the Statement of Activities do not require the use of current financial resources, therefore, are not reported as expenditures in governmental funds.

Net decrease in accrued interest payable	$	8,583

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

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 follows the provisions of Chapter 280, Florida Statutes regarding deposits and investments. As of September 30, 2017, the District's carrying value was $896,196 and the bank balance was $917,183. 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 Accounts		N/A		$	670,002	
Local Gov Surplus Funds Trust Fund		51 days*			189,500	
First American Treasury Obligation Cl Z		31 days*			5,242	
Total				$	864,744	

* Weighted Average Maturity

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Remington Community Development District

NOTES TO FINANCIAL STATEMENTS

September 30, 2017

NOTE C – CASH AND INVESTMENTS (CONTINUED)

Custodial Credit Risk (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 investments in Managed Money Market Accounts and First American Treasury Obligation Cl Z are Level 1 assets.

Interest Rate Risk

The District does not have a formal investment policy for addressing interest credit risk; however, investments are made with discretion, to seek reasonable returns, preserve capital, and in general, avoid speculative investments. The District manages its exposure to declines in fair values from interest rate changes by reviewing the portfolio on an ongoing basis for changes in effective yield amounts.

Custodial Credit Risk

The District has no investment policy that would further limit its investment choices.

Concentration of Credit Risk

The District places no limit on the amount it may invest in any one investment. The investments in Managed Money Markets are 77% and in Local Government Surplus Funds are 23% of the District’s 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.

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Remington Community Development District

NOTES TO FINANCIAL STATEMENTS

September 30, 2017

NOTE D – CAPITAL ASSETS

Capital Asset activity for the year ended September 30, 2017 was as follows:

			Balance									Balance		
			October 1,								September 30,		
Governmental Activities:		2016			Additions		Deletions				2017		
													
Capital Assets, Not Being Depreciated:													
Land and improvements	$	755,075	$	-	$	-	$	755,075		
Total Capital Assets, Not Depreciated			755,075			-			-			755,075		
Capital Assets, Being Depreciated:													
Infrastructure		16,120,861			35,817			-			16,156,678		
Building and other improvements		1,100,027			59,801			-			1,159,828		
Total Capital Assets, Being Depreciated		17,220,888			95,618			-			17,316,506		
Less Accumulated Depreciation For:								-					
Infrastructure		(8,778,986)			(552,783)						(9,331,769)		
Building and other improvements		(549,480)			(52,951)			-			(602,431)		
Total Accumulated Depreciation		(9,328,466)			(605,734)			-			(9,934,200)		
Total Capital Assets Depreciated, Net		7,892,422			(510,116)			-			7,382,306		
Governmental Activities Capital Assets	$	8,647,497	$	(510,116)	$	-	$	8,137,381		

Depreciation of $605,734 was allocated to physical environment.

NOTE E – LONG-TERM DEBT

On February 1, 2008, the District issued Series 2008-2 Term Special Assessment Revenue Refunding Bonds in two portions; $2,915,000 and $2,580,000, with fixed interest rates of 3.75% and 4%, respectively. These bonds were issued to refund the District’s outstanding series 1997A Special Assessment Bond. Interest is paid semiannually on each May 1 and November 1. Principal is paid serially commencing May 1, 2008 through May 1, 2019.

The following is a summary of debt activity for the District for the year ended September 30, 2017:

Bonds principal at October 1, 2016	$	1,605,000	
Principal payments			(515,000)	
Bond principal balance at September 30, 2017			1,090,000	
Less: unamortized discount			(12,046)	
Bonds payable, net at September 30, 2017		$	1,077,954	

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Remington Community Development District

NOTES TO FINANCIAL STATEMENTS

September 30, 2017

NOTE E – LONG-TERM DEBT (CONTINUED)

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

Year Ending										
September 30,			Principal			Interest			Total	
2018			535,000			43,600			578,600	
2019			555,000			22,200			577,200	
Totals	$	1,090,000	$	65,800	$	1,155,800	

Summary of Significant Bonds Resolution Terms and Covenants

SPECIAL ASSESSMENT REVENUE BONDS, SERIES 2008

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. The District was in compliance with the requirements at September 30, 2017.

In addition, the Bond Indenture requires the District to maintain adequate funds in the reserve account to meet the debt service reserve requirement as defined in the Indenture. The reserve requirement for the 2008 Series Special Assessment Refunding Bond has been met by the District through the utilization of insurance

NOTE F – RISK MANAGEMENT

The government 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. Coverage may not extend in all situations. Management believes such coverage is sufficient to preclude any significant uninsured losses to the District.

NOTE G – MANAGEMENT COMPANY

Remington Community Development District has contracted with a management company to perform management advisory services, which include financial and accounting advisory services. Certain employees of the management company also serve as officers (Board appointed non-voting positions) of the District. Under the agreement, the District compensates the management company for management, accounting, financial reporting, and other administrative costs.

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