CYPRESS BLUFF 

COMMUNITY DEVELOPMENT DISTRICT 

CITY OF JACKSONVILLE, FLORIDA 

FINANCIAL REPORT 

FOR THE FISCAL YEAR ENDED 

SEPTEMBER 30, 2023 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 CYPRESS BLUFF COMMUNITY DEVELOPMENT DISTRICT 

CITY OF JACKSONVILLE, FLORIDA 

 

 

TABLE OF CONTENTS 

 

 

 

 

Page 



INDEPENDENT AUDITOR’S REPORT 

1-2 

 

 

MANAGEMENT’S DISCUSSION AND ANALYSIS 

3-6 

 

 

BASIC FINANCIAL STATEMENTS 

 

 Government-Wide Financial Statements: 

 

Statement of Net Position 

7 

 Statement of Activities 

8 

Fund Financial Statements: 

 

 Balance Sheet – Governmental Funds 

9 

 Reconciliation of the Balance Sheet - Governmental Funds to the 

 Statement of Net Position 

10 

 Statement of Revenues, Expenditures and Changes in Fund Balances – 

 Governmental Funds 

11 

 Reconciliation of the Statement of Revenues, Expenditures and Changes in 

 Fund Balances of Governmental Funds to the Statement of Activities 

 

12 

 Notes to the Financial Statements 

13-23 

 

 

REQUIRED SUPPLEMENTARY INFORMATION 

 

Schedule of Revenues, Expenditures and Changes in Fund Balance – 

Budget and Actual – General Fund 

 

24 

Notes to Required Supplementary Information 

25 

 

OTHER INFORMATION 

 

 Data Elements required by FL Statute 218.39 (3) (c) 

26 

 

 

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 

27-28 

 

 

INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE WITH THE REQUIREMENTS 

OF SECTION 218.415, FLORIDA STATUTES, REQUIRED BY RULE 10.556(10) 

OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA 

 

 

29 

 

 

MANAGEMENT LETTER REQUIRED BY CHAPTER 10.550 OF THE RULES 

OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA 

30-31 



 

 


INDEPENDENT AUDITOR’S REPORT 

 

To the Board of Supervisors 

Cypress Bluff Community Development District 

City of Jacksonville, Florida 

 

Report on the Audit of the Financial Statements 

Opinions 

We have audited the accompanying financial statements of the governmental activities and each major fund 
of Cypress Bluff Community Development District, City of Jacksonville, Florida (“District”) as of and for the 
fiscal year ended September 30, 2023, and the related notes to the financial statements, which collectively 
comprise the District’s basic financial statements as listed in the table of contents. 

In our opinion, the financial statements referred to above 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, 2023, 
and the respective changes in financial position thereof for the fiscal year then ended in accordance with 
accounting principles generally accepted in the United States of America. 

Basis for Opinions 

We conducted our audit in accordance with auditing standards generally accepted in the United States of 
America (GAAS) and the standards applicable to financial audits contained in Government Auditing 
Standards, issued by the Comptroller General of the United States. Our responsibilities under those 
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements 
section of our report. We are required to be independent of the District and to meet our other ethical 
responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the 
audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 

Responsibilities of Management for the Financial Statements 

The District’s management is responsible for the preparation and fair presentation of the financial statements 
in accordance with accounting principles generally accepted in the United States of America; and for 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. 

In preparing the financial statements, management is required to evaluate whether there are conditions or 
events, considered in the aggregate, that raise substantial doubt about the District’s ability to continue as a 
going concern for twelve months beyond the financial statement date, including any currently known 
information that may raise substantial doubt shortly thereafter. 

Auditor’s Responsibilities for the Audit of the Financial Statements 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free 
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our 
opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is 
not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement 
when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one 
resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the 
override of internal control. Misstatements are considered material if there is a substantial likelihood that, 
individually or in the aggregate, they would influence the judgment made by a reasonable user based on the 
financial statements. 


In performing an audit in accordance with GAAS, we: 

• Exercise professional judgment and maintain professional skepticism throughout the audit. 
• Identify and assess the risks of material misstatement of the financial statements, whether due to 
fraud or error, and design and perform audit procedures responsive to those risks. Such procedures 
include examining, on a test basis, evidence regarding the amounts and disclosures in the financial 
statements. 
• Obtain an understanding of internal control relevant to the audit 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 District’s internal control. Accordingly, no such opinion is expressed. 
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant 
accounting estimates made by management, as well as evaluate the overall presentation of the 
financial statements. 
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that 
raise substantial doubt about the District’s ability to continue as a going concern for a reasonable 
period of time. 


We are required to communicate with those charged with governance regarding, among other matters, the 
planned scope and timing of the audit, significant audit findings, and certain internal control–related matters 
that we identified during the audit. 

Required Supplementary Information 

Accounting principles generally accepted in the United States of America require that the management’s 
discussion and analysis and budgetary comparison information be presented to supplement the basic 
financial statements. Such information is the responsibility of management and, 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 Information Included in the Financial Report 

Management is responsible for the other information included in the financial report. The other information 
comprises the information for compliance with FL Statute 218.39 (3) (c) but does not include the financial 
statements and our auditor's report thereon. Our opinions on the financial statements do not cover the other 
information, and we do not express an opinion or any form of assurance thereon. In connection with our audit 
of the financial statements, our responsibility is to read the other information and consider whether a material 
inconsistency exists between the other information and the financial statements, or the other information 
otherwise appears to be materially misstated. If, based on the work performed, we conclude that an 
uncorrected material misstatement of the other information exists, we are required to describe it in our report. 

Other Reporting Required by Government Auditing Standards 

In accordance with Government Auditing Standards, we have also issued our report dated March 18, 2024, 
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, contracts, grant agreements and other matters. The purpose of 
that report is solely 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 the effectiveness of the District’s 
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 the District’s internal control over financial 
reporting and compliance. 

 

 

March 18, 2024 

 


MANAGEMENT’S DISCUSSION AND ANALYSIS 

 

Our discussion and analysis of Cypress Bluff Community Development District, City of Jacksonville, Florida 
(“District”) provides a narrative overview of the District’s financial activities for the fiscal year ended 
September 30, 2023. Please read it in conjunction with the District’s Independent Auditor’s Report, basic 
financial statements, accompanying notes and supplementary information to the basic financial statements. 

 

FINANCIAL HIGHLIGHTS 

 

• The assets of the District exceeded its liabilities at the close of the most recent fiscal year resulting in 
a net position balance of $1,098,966. 


 

• The change in the District’s total net position in comparison with the prior fiscal year was $602,157, 
an increase. The key components of the District’s net position and change in net position are 
reflected in the table in the government-wide financial analysis section. 


 

• At September 30, 2023, the District’s governmental funds reported combined ending fund balances of 
$2,183,467, a decrease of ($7,112) in comparison with the prior fiscal year. A portion of fund balance 
is restricted for debt service and capital projects, nonspendable for prepaids and deposits, assigned 
for subsequent year’s expenditures and the remainder is unassigned fund balance which is available 
for spending at the District’s discretion. 


 

OVERVIEW OF FINANCIAL STATEMENTS 

 

This discussion and analysis are intended to serve as the introduction to the District’s basic financial 
statements. The District’s basic financial statements are comprised of three components: 1) government-
wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report 
also contains other supplementary information in addition to the basic financial statements themselves. 

 

Government-Wide Financial Statements 

 

The government-wide financial statements are designed to provide readers with a broad overview of the 
District’s finances, in a manner similar to a private-sector business. 

 

The statement of net position presents information on all the District’s assets, deferred outflows of resources, 
liabilities, and deferred inflows of resources with the residual amount being reported as net position. Over 
time, increases or decreases in net position may serve as a useful indicator of whether the financial position 
of the District is improving or deteriorating. 

 

The statement of activities presents information showing how the government’s net position changed during 
the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving 
rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are 
reported in this statement for some items that will only result in cash flows in future fiscal periods. 

 

The government-wide financial statements include all governmental activities that are principally supported by 
special assessments. The District does not have any business-type activities. The governmental activities of 
the District include the general government (management), recreation and maintenance functions. 

 

Fund Financial Statements 

 

A fund is a grouping of related accounts that is used to maintain control over resources that have been 
segregated for specific activities or objectives. The District, like other state and local governments, uses fund 
accounting to ensure and demonstrate compliance with finance-related legal requirements. The District has 
one fund category: governmental funds. 


OVERVIEW OF FINANCIAL STATEMENTS (Continued) 

 

Governmental Funds 

 

Governmental funds are used to account for essentially the same functions reported as governmental 
activities in the government-wide financial statements. However, unlike the government-wide financial 
statements, governmental fund financial statements focus on near-term inflows and outflows of spendable 
resources, as well as on balances of spendable resources available at the end of the fiscal year. Such 
information may be useful in evaluating a District’s near-term financing requirements. 

 

Because the focus of governmental funds is narrower than that of the government-wide financial statements, 
it is useful to compare the information presented for governmental funds with similar information presented for 
governmental activities in the government-wide financial statements. By doing so, readers may better 
understand the long-term impact of the District’s near-term financing decisions. Both the governmental fund 
balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund 
balances provide a reconciliation to facilitate this comparison between governmental funds and governmental 
activities. 

 

The District maintains three governmental funds for external reporting. Information is presented separately in 
the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and 
changes in fund balances for the general fund, debt service fund and capital projects fund which are 
considered major funds. 

 

The District adopts an annual appropriated budget for its general and debt service funds. A budgetary 
comparison schedule has been provided for the general fund to demonstrate compliance with the budget. 

 

Notes to the Financial Statements 

 

The notes provide additional information that is essential to a full understanding of the data provided in the 
government-wide and fund financial statements. 

 

GOVERNMENT-WIDE FINANCIAL ANALYSIS 

 

As noted earlier, net position may serve over time as a useful indicator of an entity’s financial position. In the 
case of the District, assets exceeded liabilities at the close of the most recent fiscal year. 

 

Key components of the District’s net position are reflected in the following table: 

 

 
20232022Assets, excluding capital assets2,199,519$ 2,200,643$ 
Capital assets, net of depreciation26,001,151 26,001,920 
Total assets28,200,670 28,202,563 
Liabilities, excluding long-term liabilities509,377 511,599 
Long-term liabilities26,592,327 27,194,155 
Total liabilities27,101,704 27,705,754 
Net PositionNet investment in capital assets(591,176) (1,192,235) 
Restricted 1,258,146 1,197,342 
Unrestricted431,996 491,702 
Total net position1,098,966$ 496,809$ 
NET POSITIONSEPTEMBER 30, 

 

 

 

 


GOVERNMENT-WIDE FINANCIAL ANALYSIS (Continued) 

 

The District’s net position reflects its investment in capital assets (e.g. land, land improvements, and 
infrastructure) less any related debt used to acquire those assets that is still outstanding. These assets are 
used to provide services to residents; consequently, these assets are not available for future spending. 
Although the District’s investment in capital assets is reported net of related debt, it should be noted that the 
resources needed to repay this debt must be provided from other sources, since the capital assets 
themselves cannot be used to liquidate these liabilities. 

 

The restricted portion of the District’s net position represents resources that are subject to external restrictions 
on how they may be used. The remaining balance of unrestricted net position may be used to meet the 
District’s other obligations. 

 

The District’s net position increased during the most recent fiscal year. The majority of the increase 
represents the extent to which ongoing program revenues exceeded the cost of operations. 

 

Key elements of the change in net position are reflected in the following table: 

 

 
20232022Revenues:
Program revenuesOperating grants and contributions2,688,110$ 2,746,532$ 
Capital grants and contributions69,270 502,392 
General revenuesMiscellaneous18,778 11,623 
Unrestricted investment earnings9,978 2,156 
Total revenues2,786,136 3,262,703 
Expenses:
General government130,239 148,408 
Maintenance and operations458,936 411,023 
Amenity center398,933 298,540 
Interest on long-term debt1,195,871 1,188,696 
Bond issue costs- 216,137 
Total expenses2,183,979 2,262,804 
Change in net position602,157 999,899 
Net position - beginning496,809 (503,090) 
Net position - ending1,098,966$ 496,809$ 
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,
CHANGES IN NET POSITION

As noted above and in the statement of activities, the cost of all governmental activities during the fiscal year 
ended September 30, 2023 was $2,183,979. The majority of the costs of the District’s activities were paid by 
program revenues. Program revenues are comprised primarily of assessments. The remainder of the current 
fiscal year revenue includes miscellaneous revenue, and interest revenue. The decrease in revenues is the 
result of Developer contributions received in the prior year. The decrease in total expenses is primarily due to 
the bond issue costs incurred in the prior year. 

 

GENERAL BUDGETING HIGHLIGHTS 

 

An operating budget was adopted and maintained by the governing board for the District pursuant to the 
requirements of Florida Statutes. The budget is adopted using the same basis of accounting that is used in 
preparation of the fund financial statements. The legal level of budgetary control, the level at which 
expenditures may not exceed budget, is in the aggregate. Any budget amendments that increase the 
aggregate budgeted appropriations must be approved by the Board of Supervisors. The general fund budget 
for the fiscal year ended September 30, 2023 was amended to increase revenues by $10,811 and increase 
appropriations by $84,541. Actual general fund expenditures did not exceed appropriations for the fiscal year 
ended September 30, 2023. 

 


CAPITAL ASSETS AND DEBT ADMINISTRATION 

 

Capital Assets 

 

At September 30, 2023, the District had $26,030,723 invested in capital assets. In the government-wide 
financial statements depreciation of $29,572 has been taken, which resulted in a net book value of 
$26,001,151. More detailed information about the District’s capital assets is presented in the notes of the 
financial statements. 

 

Capital Debt 

 

At September 30, 2023, the District had $26,585,000 in Bonds outstanding. Additionally, the District had a 
$30,739 liability for financed purchases. More detailed information about the District’s capital debt is 
presented in the notes of the financial statements. 

 

ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS 

 

For the subsequent fiscal year, the District anticipates that the cost of general operations will remain fairly 
constant. 

 

CONTACTING THE DISTRICT’S FINANCIAL MANAGEMENT 

 

This financial report is designed to provide our citizens, land owners, customers, investors and creditors with 
a general overview of the District’s finances and to demonstrate the District’s accountability for the financial 
resources it manages and the stewardship of the facilities it maintains. If you have questions about this report 
or need additional financial information, contact the Cypress Bluff Community Development District’s Finance 
Department at 475 West Town Place, Suite 114, St. Augustine, Florida, 32092. 

 

 


CYPRESS BLUFF COMMUNITY DEVELOPMENT DISTRICT 

CITY OF JACKSONVILLE, FLORIDA 

STATEMENT OF NET POSITION 

SEPTEMBER 30, 2023 

 

 

 
ASSETSCash315,840$ 
Investments68,228 
Due from others775 
Deposits and prepaids68,568 
Restricted assets:
Cash97,674 
Investments1,648,434 
Capital assets:
Nondepreciable25,956,791 
Depreciable, net 44,360 
Total assets28,200,670 
LIABILITIES 
Accounts payable 16,052 
Accrued interest payable493,325 
Non-current liabilities:
Due within one year599,148 
Due in more than one year25,993,179 
Total liabilities27,101,704 
NET POSITIONNet investment in capital assets(591,176) 
Restricted for debt service1,252,783 
Restricted for capital projects5,363 
Unrestricted431,996 
Total net position1,098,966$ 
Governmental 
Activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See notes to the financial statements 


CYPRESS BLUFF COMMUNITY DEVELOPMENT DISTRICT 

CITY OF JACKSONVILLE, FLORIDA 

STATEMENT OF ACTIVITIES 

FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 

 

 

 
ChargesOperatingCapitalforGrants andGrants andGovernmentalFunctions/ProgramsExpensesServicesContributionsContributionsActivitiesPrimary government:
Governmental activities:
General government130,239$ 130,239$ -$ -$ -$ 
Maintenance and operations458,936 381,055 - 418 (77,463) 
Amenity center398,933 398,933 - - - 
Interest on long-term debt1,195,871 1,777,883 68,852 - 650,864 
Total governmental activities2,183,979 2,688,110 68,852 418 573,401 
General revenues:
Miscellaneous18,778 
Unrestricted investment earnings9,978 
Total general revenues 28,756 
Change in net position602,157 
Net position - beginning 496,809 
Net position - ending 1,098,966$ 
Program RevenuesNet (Expense) 
Revenue and 
Changes in Net 
Position

 

 

 

 

 

 

 

 

 

See notes to the financial statements 


CYPRESS BLUFF COMMUNITY DEVELOPMENT DISTRICT 

CITY OF JACKSONVILLE, FLORIDA 

BALANCE SHEET 

GOVERNMENTAL FUNDS 

SEPTEMBER 30, 2023 

 

 

 
DebtCapitalGeneralServiceProjectsASSETSCash315,840$ 97,674$ -$ 413,514$ 
Investments62,865 1,648,434 5,363 1,716,662 
Due from others775- - 775 
Deposits and prepaids 68,568 - - 68,568 
Total assets448,048$ 1,746,108$ 5,363$ 2,199,519$ 
LIABILITIES AND FUND BALANCESLiabilities:
Accounts payable16,052$ -$ - 16,052$ 
Total liabilities16,052 - - 16,052 
Fund balances:
Nonspendable:
Prepaids and deposits68,568 - - 68,568 
Restricted for:
Debt service- 1,746,108 - 1,746,108 
Capital projects - - 5,363 5,363 
Assigned to:
Subsequent year's expenditures194,145 - - 194,145 
Unassigned169,283 - - 169,283 
Total fund balances431,996 1,746,108 5,363 2,183,467 
Total liabilities and fund balances448,048$ 1,746,108$ 5,363$ 2,199,519$ 
Total 
Governmental 
FundsMajor Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See notes to the financial statements 


CYPRESS BLUFF COMMUNITY DEVELOPMENT DISTRICT 

CITY OF JACKSONVILLE, FLORIDA 

RECONCILIATION OF THE BALANCE SHEET - GOVERNMENTAL FUNDS 

TO THE STATEMENT OF NET POSITION 

SEPTEMBER 30, 2023 

 

 

 
Fund balance - governmental funds $ 2,183,467 
Amounts reported for governmental activities in the statement of 
net position are different because:
Cost of capital assets 26,030,723 
Accumulated depreciation (29,572) 26,001,151 
Accrued interest payable (493,325)
Bonds payable (26,592,327) (27,085,652)
Net position of governmental activities $ 1,098,966 
Capitalassetsusedingovernmentalactivitiesarenotfinancialresourcesand,therefore,arenotreportedasassetsinthegovernmentalfunds.Thestatementofnetpositionincludesthosecapitalassets,netofanyaccumulateddepreciation,inthenet position of the government as a whole.
Liabilitiesnotdueandpayablefromcurrentavailableresourcesarenotreportedasliabilitiesinthegovernmentalfundstatements.Allliabilities,bothcurrentandlong-term,arereported in the government-wide financial statements.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See notes to the financial statements


CYPRESS BLUFF COMMUNITY DEVELOPMENT DISTRICT 

CITY OF JACKSONVILLE, FLORIDA 

STATEMENT OF REVENUES, EXPENDITURES, 

AND CHANGES IN FUND BALANCES 

GOVERNMENTAL FUNDS 

FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 

 

 

 
DebtCapitalGeneralServiceProjectsREVENUESAssessments910,227$ 1,777,883$ -$ 2,688,110$ 
Interest 9,978 68,852 418 79,248 
Miscellaneous revenues18,778 - - 18,778 
Total revenues938,983 1,846,735 418 2,786,136 
EXPENDITURESCurrent:
General government130,239 - - 130,239 
Maintenance and operations458,936- - 458,936 
Amenity center384,147- - 384,147 
Debt Service:
Principal22,728 580,000 - 602,728 
Interest2,639 1,200,542 - 1,203,181 
Capital outlay- - 14,01714,017 
Total expenditures998,689 1,780,542 14,017 2,793,248 
Excess (deficiency) of revenuesover (under) expenditures(59,706) 66,193 (13,599) (7,112) 
OTHER FINANCING SOURCES (USES)
Interfund transfer in (out)- 6,486 (6,486) - 
Total other financing sources (uses)- 6,486 (6,486) - 
Net change in fund balance(59,706) 72,679 (20,085) (7,112) 
Fund balances - beginning491,702 1,673,429 25,448 2,190,579 
Fund balances - ending431,996$ 1,746,108$ 5,363$ 2,183,467$ 
Major FundsTotal 
Governmental 
Funds

 

 

 

 

 

 

 

 

 

 

See notes to the financial statements 


CYPRESS BLUFF COMMUNITY DEVELOPMENT DISTRICT 

CITY OF JACKSONVILLE, FLORIDA 

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN 

FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES 

FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 

 

 

 
Net change in fund balances - total governmental funds $ (7,112)
Amounts reported for governmental activities in the statement of activities 
are different because:
Depreciationoncapitalassetsisnotrecognizedinthegovernmentalfundstatementbutisreportedasanexpenseinthestatementofactivities. (14,786)
Governmentalfundsreportcapitaloutlaysasexpenditures;however,
thecostofcapitalassetsiseliminatedinthestatementofactivitiesand capitalized in the statement of net position. 14,017 
Repaymentoflong-termliabilitiesarereportedasexpendituresinthegovernmentalfundfinancialstatements,butsuchrepaymentsreduceliabilitiesinthestatementofnetpositionandareeliminatedinthestatement of activities. 602,728 
Thechangeinaccruedinterestonlong-termliabilitiesbetweenthecurrentandpriorfiscalyearisrecordedinthestatementofactivitiesbut not in the fund financial statements. 8,210 
AmortizationofBonddiscounts/premiumsisnotrecognizedinthegovernmentalfundfinancialstatements,butisreportedasanexpense in the statement of activities. (900)
Change in net position of governmental activities $ 602,157 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See notes to the financial statements 


CYPRESS BLUFF COMMUNITY DEVELOPMENT DISTRICT 

CITY OF JACKSONVILLE, FLORIDA 

NOTES TO FINANCIAL STATEMENTS 

 

NOTE 1 – NATURE OF ORGANIZATION AND REPORTING ENTITY 

 

Cypress Bluff Community Development District ("District") was established by Ordinance 2018-335-E of the 
Board of County Commissioners of City of Jacksonville, pursuant to the Uniform Community Development 
District Act of 1980, and otherwise known as Chapter 190, Florida Statutes and expanded by City of 
Jacksonville Ordinance 2019-599-E on October 22, 2019. 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 a portion of the infrastructure necessary for community development within the 
District. 

 

The District is governed by the Board of Supervisors ("Board"), which is composed of five members. The 
Supervisors are elected by the qualified electors of the District. The Board of Supervisors of the District 
exercise all powers granted to the District pursuant to Chapter 190, Florida Statutes. As of September 30, 
2023, one of the Board members was affiliated with E-Town Development Inc, one of the Developers within 
the District. 

 

The Board has the responsibility for: 

1. Assessing and levying assessments. 

2. Approving budgets. 

3. Exercising control over facilities and properties. 

4. Controlling the use of funds generated by the District. 

5. Approving the hiring and firing of key personnel. 

6. Financing improvements. 

 

The financial statements were prepared in accordance with Governmental Accounting Standards Board 
(“GASB”) Statements. Under the provisions of those standards, the financial reporting entity consists of the 
primary government, organizations for which the District is considered to be financially accountable and other 
organizations for which the nature and significance of their relationship with the District are such that, if 
excluded, the financial statements of the District would be considered incomplete or misleading. There are no 
entities considered to be component units of the District; therefore, the financial statements include only the 
operations of the District. 

 

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 

 

Government-Wide and Fund Financial Statements 

The basic financial statements include both government-wide and fund financial statements. 

 

The government-wide financial statements (i.e., the statement of net position and the statement of activities) 
report information on all of the non-fiduciary activities of the primary government. For the most part, the effect 
of interfund activity has been removed from these statements. 

 

The statement of activities demonstrates the degree to which the direct expenses of a given function or 
segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific 
function or segment. Program revenues include 1) charges to customers who purchase, use or directly 
benefit from goods, services or privileges provided by a given function or segment. (Operating-type special 
assessments for maintenance and debt service are treated as charges for services.); and 2) grants and 
contributions that are restricted to meeting the operational or capital requirements of a particular function or 
segment. Other items not included among program revenues are reported instead as general revenues. 

 


NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 

 

Measurement Focus, Basis of Accounting and Financial Statement Presentation 

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 related cash flows. Assessments are recognized as revenues 
in the year for which they are levied. Grants and similar items are to be recognized as revenue as soon as all 
eligibility requirements imposed by the provider have been met. 

 

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 are both 
measurable and available. Revenues are considered to be available when they are collectible within the 
current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the 
government considers revenues to be available if they are collected within 60 days of the end of the current 
fiscal period. Expenditures are recorded when a liability is incurred, as under accrual accounting. However, 
debt service expenditures are recorded only when payment is due. 

 

Assessments 

Assessments are non-ad valorem assessments on benefited property within the District. Operating and 
maintenance assessments are based upon the adopted budget and levied annually at a public hearing of the 
District. Debt service assessments are levied when Bonds are issued and assessed and collected on an 
annual basis. The District may collect assessments directly or utilize the “Uniform Method of Collection” 
under Florida Statutes. Direct collected assessments are due as set forth in the annual assessment 
resolution adopted by the Board of Supervisors. Assessments collected under the Uniform Method are 
noticed by the County Tax Collector on November 1 and due on or before March 31 of each year. Property 
owners may prepay a portion or all of the debt service assessments on their property subject to various 
provisions in the Bond documents. 

 

Assessments and interest associated with the current fiscal period are considered to be susceptible to accrual 
and so have been recognized as revenues of the current fiscal period. The portion of assessments receivable 
due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. 

 

The District reports the following major governmental funds: 

 

General Fund 

The general fund is the general operating fund of the District. It is used to account for all financial resources 
except those required to be accounted for in another fund. 

 

Debt Service Fund 

The debt service fund is used to account for the accumulation of resources for the annual payment of 
principal and interest on long-term debt. 

 

Capital Projects Fund 

The capital projects fund is used to account for the costs of major infrastructure acquired by the District and 
also to accumulate capital reserves for future maintenance costs and capital projects. 

 

As a general rule, the effect of interfund activity has been eliminated from the government-wide financial 
statements. 

 

When both restricted and unrestricted resources are available for use, it is the government’s policy to use 
restricted resources first for qualifying expenditures, then unrestricted resources as they are needed. 

 


NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 

 

Assets, Liabilities and Net Position or Equity 

 

Restricted Assets 

These assets represent cash and investments set aside pursuant to Bond covenants or other contractual 
restrictions. 

 

Deposits and Investments 

The District’s cash and cash equivalents are considered to be cash on hand and demand deposits (interest 
and non-interest bearing). 

 

The District has elected to proceed under the Alternative Investment Guidelines as set forth in Section 
218.415 (17) Florida Statutes. The District may invest any surplus public funds in the following: 

a) The Local Government Surplus Trust Funds, or any intergovernmental investment pool authorized 
pursuant to the Florida Inter-local Cooperation Act; 
b) Securities and Exchange Commission registered money market funds with the highest credit quality 
rating from a nationally recognized rating agency; 
c) Interest bearing time deposits or savings accounts in qualified public depositories; 
d) Direct obligations of the U.S. Treasury. 


 

The State Board of Administration’s (“SBA”) Local Government Surplus Funds Trust Fund (“Florida PRIME”) 
is a“2a-7 like” pool. A “2a-7 like” pool is an external investment pool that is not registered with the Securities 
and Exchange Commission (“SEC”) as an investment company, but nevertheless has a policy that it will, and 
does, operate in a manner consistent with the SEC’s Rule 2a-7 of the Investment Company Act of 1940, 
which comprises the rules governing money market funds. Thus, the pool operates essentially as a money 
market fund. The District has reported its investment in Florida PRIME at amortized cost for financial 
reporting purposes. 

 

Securities listed in paragraph c and d shall be invested to provide sufficient liquidity to pay obligations as they 
come due. In addition, surplus funds may be deposited into certificates of deposit which are insured and any 
unspent Bond proceeds are required to be held in investments as specified in the Bond Indenture. 

 

The District records all interest revenue related to investment activities in the respective funds. Investments 
are measured at amortized cost or reported at fair value as required by generally accepted accounting 
principles. 

 

Prepaid Items 

Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as 
prepaid items in both government-wide and fund financial statements. 

 

Capital Assets 

Capital assets which include property, plant and equipment, and infrastructure assets (e.g., roads, sidewalks 
and similar items) are reported in the government activities columns in the government-wide financial 
statements. Capital assets are defined by the government as assets with an initial, individual cost of more 
than $5,000 (amount not rounded) and an estimated useful life in excess of two years. Such assets are 
recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are 
recorded at acquisition 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 
assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects 
are constructed. 

 


NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 

 

Assets, Liabilities and Net Position or Equity (Continued) 

 

Capital Assets (Continued) 

Property, plant and equipment of the District are depreciated using the straight-line method over the following 
estimated useful lives: 

Assets 

Years 

Equipment 

5 



 

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. 

 

Unearned Revenue 

Governmental funds report unearned revenue in connection with resources that have been received, but not 
yet earned. 

 

Long-Term Obligations 

In the government-wide financial statements long-term debt and other long-term obligations are reported as 
liabilities in the statement of net position. Bond premiums and discounts are deferred and amortized over the 
life of the Bonds. Bonds payable are reported net of applicable premiums or discounts. Bond issuance costs 
are expensed when incurred. 

 

In the fund financial statements, governmental fund types recognize premiums and discounts, as well as 
issuance costs, during the current period. The face amount of debt issued is reported as other financing 
sources. Premiums received on debt issuances are reported as other financing sources while discounts on 
debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual 
debt proceeds received, are reported as debt service expenditures. 

 

Deferred Outflows/Inflows of Resources 

In addition to assets, the statement of financial position will sometimes report a separate section for deferred 
outflows of resources. This separate financial statement element, deferred outflows of resources, represents 
a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of 
resources (expense/expenditure) until then. 

 

In addition to liabilities, the statement of financial position will sometimes report a separate section for 
deferred inflows of resources. This separate financial statement element, deferred inflows of resources, 
represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an 
inflow of resources (revenue) until that time. 

 

Fund Equity/Net Position 

In the fund financial statements, governmental funds report non spendable and restricted fund balance for 
amounts that are not available for appropriation or are legally restricted by outside parties for use for a 
specific purpose. Assignments of fund balance represent tentative management plans that are subject to 
change. 

 


NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 

 

Assets, Liabilities and Net Position or Equity (Continued) 

 

Fund Equity/Net Position (Continued) 

 

The District can establish limitations on the use of fund balance as follows: 

 

Committed fund balance – Amounts that can be used only for the specific purposes determined by a 
formal action (resolution) of the Board of Supervisors. Commitments may be changed or lifted only by the 
Board of Supervisors taking the same formal action (resolution) that imposed the constraint originally. 
Resources accumulated pursuant to stabilization arrangements sometimes are reported in this category. 

 

Assigned fund balance – Includes spendable fund balance amounts established by the Board of 
Supervisors that are intended to be used for specific purposes that are neither considered restricted nor 
committed. The Board may also assign fund balance as it does when appropriating fund balance to cover 
differences in estimated revenue and appropriations in the subsequent year’s appropriated budget. 
Assignments are generally temporary and normally the same formal action need not be taken to remove 
the assignment. 

 

The District first uses committed fund balance, followed by assigned fund balance and then unassigned fund 
balance when expenditures are incurred for purposes for which amounts in any of the unrestricted fund 
balance classifications could be used. 

 

Net position is the difference between assets and deferred outflows of resources less liabilities and deferred 
inflows of resources. Net position in the government-wide financial statements are categorized as net 
investment in capital assets, restricted or unrestricted. Net investment in capital assets represents net 
position related to infrastructure and property, plant and equipment. Restricted net position represents the 
assets restricted by the District’s Bond covenants or other contractual restrictions. Unrestricted net position 
consists of the net position not meeting the definition of either of the other two components. 

 

Other Disclosures 

 

Use of Estimates 

The preparation of financial statements in conformity with generally accepted accounting principles requires 
management to make estimates and assumptions that affect the reported amounts of assets and liabilities, 
and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported 
amounts of revenues and expenditures during the reporting period. Actual results could differ from those 
estimates. 

 

NOTE 3 – BUDGETARY INFORMATION 

 

The District is required to establish a budgetary system and an approved Annual Budget. Annual Budgets are 
adopted on a basis consistent with generally accepted accounting principles for the general fund. All annual 
appropriations lapse at fiscal year-end. 

 

The District follows these procedures in establishing the budgetary data reflected in the financial statements. 

a) Each year the District Manager submits to the District Board a proposed operating budget for the fiscal 
year commencing the upcoming October 1. 

b) Public hearings are conducted to obtain comments. 

c) Prior to October 1, the budget is legally adopted by the District Board. 

d) All budget changes must be approved by the District Board. 

e) The budgets are adopted on a basis consistent with generally accepted accounting principles. 

f) Unused appropriation for annually budgeted funds lapse at the end of the year. 

 


NOTE 4 – DEPOSITS AND INVESTMENTS 

 

Deposits 

The District’s cash balances were entirely covered by federal depository insurance or by a collateral pool 
pledged to the State Treasurer. Florida Statutes Chapter 280, "Florida Security for Public Deposits Act", 
requires all qualified depositories to deposit with the Treasurer or another banking institution eligible collateral 
equal to various percentages of the average daily balance for each month of all public deposits in excess of 
any applicable deposit insurance held. The percentage of eligible collateral (generally, U.S. Governmental 
and agency securities, state or local government debt, or corporate bonds) to public deposits is dependent 
upon the depository's financial history and its compliance with Chapter 280. In the event of a failure of a 
qualified public depository, the remaining public depositories would be responsible for covering any resulting 
losses. 

 

Investments 

The District’s investments were held as follows at September 30, 2023: 

 
Amortized costCredit RiskMaturitiesDreyfus Government Cash Management $ 1,653,797 Not availableN/AInvestment in Local Government Surplus Funds Trust Fund 
(Florida PRIME) 62,865 S&P AAAmWeighted average of the fund 
portfolio: 35 days1,716,662$ 

Credit risk – For investments, credit risk is generally the risk that an issuer of an investment will not fulfill its 
obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally 
recognized statistical rating organization. Investment ratings by investment type are included in the preceding 
summary of investments. 

 

Concentration risk – The District places no limit on the amount the District may invest in any one issuer. 

 

Interest rate risk – The District does not have a formal policy that limits investment maturities as a means of 
managing exposure to fair value losses arising from increasing interest rates. 

 

However, the Bond Indenture limits the type of investments held using unspent proceeds. 

 

Fair Value Measurement – When applicable, the District measures and records its investments using fair 
value measurement guidelines established in accordance with GASB Statements. The framework for 
measuring fair value provides a fair value hierarchy that prioritizes the inputs to valuation techniques. 

 

These guidelines recognize a three-tiered fair value hierarchy, in order of highest priority, as follows: 

• Level 1: Investments whose values are based on unadjusted quoted prices for identical investments 
in active markets that the District has the ability to access; 
• Level 2: Investments whose inputs - other than quoted market prices - are observable either directly 
or indirectly; and, 
• Level 3: Investments whose inputs are unobservable. 


 

The fair value measurement level within the fair value hierarchy is based on the lowest level of any input that 
is significant to the entire fair value measurement. Valuation techniques used should maximize the use of 
observable inputs and minimize the use of unobservable inputs. 

 

Money market investments that have a maturity at the time of purchase of one year or less and are held by 
governments other than external investment pools should be measured at amortized cost. For external 
investment pools that qualify to be measured at amortized cost, the pool’s participants should also measure 
their investments in that external investment pool at amortized cost for financial reporting purposes. 
Accordingly, the District’s investments have been reported at amortized cost above. 

 


NOTE 4 – DEPOSITS AND INVESTMENTS (Continued) 

 

Investments (Continued) 

 

External Investment Pool – With regard to redemption gates, Chapter 218.409(8)(a), Florida Statutes, states 
that “The principal, and any part thereof, of each account constituting the trust fund is subject to payment at 
any time from the moneys in the trust fund. However, the Executive Director may, in good faith, on the 
occurrence of an event that has a material impact on liquidity or operations of the trust fund, for 48 hours limit 
contributions to or withdrawals from the trust fund to ensure that the Board can invest moneys entrusted to it 
in exercising its fiduciary responsibility. Such action must be immediately disclosed to all participants, the 
Trustees, the Joint Legislative Auditing Committee, the Investment Advisory Council, and the Participant 
Local Government Advisory Council. The Trustees shall convene an emergency meeting as soon as 
practicable from the time the Executive Director has instituted such measures and review the necessity of 
those measures. If the Trustees are unable to convene an emergency meeting before the expiration of the 48-
hour moratorium on contributions and withdrawals, the moratorium may be extended by the Executive 
Director until the Trustees are able to meet to review the necessity for the moratorium. If the Trustees agree 
with such measures, the Trustees shall vote to continue the measures for up to an additional 15 days. The 
Trustees must convene and vote to continue any such measures before the expiration of the time limit set, but 
in no case may the time limit set by the Trustees exceed 15 days.” With regard to liquidity fees, Florida 
Statute 218.409(4) provides authority for the SBA to impose penalties for early withdrawal, subject to 
disclosure in the enrollment materials of the amount and purpose of such fees. At present, no such disclosure 
has been made. 

 

As of September 30, 2023, there were no redemption fees or maximum transaction amounts, or any other 
requirements that serve to limit a participant’s daily access to 100% of their account value. 

 

NOTE 5 – INTERFUND TRANSFERS 

 

Interfund transfers for the fiscal year ended September 30, 2023 were as follows: 

 
FundTransfers inTransfers outDebt service6,486$ -$ 
Capital projects- 6,486 
6,486$ 6,486$ 

Transfers are used to move revenues from the fund where collection occurs to the fund where funds have 
been reallocated for use. In the case of the District, transfers from the debt service fund to the capital projects 
fund were made in accordance with the Bond Indentures. 

 

NOTE 6 – CAPITAL ASSETS 

 

Capital asset activity for the fiscal year ended September 30, 2023 was as follows: 

 

 
AdditionsReductionsGovernmental activitiesCapital assets, not being depreciatedInfrastructure in progress25,942,774$ 14,017$ -$ 25,956,791$ 
Total capital assets, not being depreciated25,942,774 14,017 - 25,956,791 
Capital assets, being depreciatedEquipment73,932 - - 73,932 
Total capital assets, being depreciated73,932 - - 73,932 
Less accumulated depreciation for:
Equipment14,786 14,786 - 29,572 
Total accumulated depreciation14,786 14,786 - 29,572 
Total capital assets, being depreciated, net59,146 (14,786) - 44,360 
Governmental activities capital assets, net26,001,920$ (769)$ -$ 26,001,151$ 
Beginning 
BalanceEnding 
Balance

 

 


NOTE 6 – CAPITAL ASSETS (Continued) 

 

The infrastructure intended to serve the District has been estimated at a total cost of approximately 
$28,104,584 for the Series 2019 and 2020 projects, $7,708,526 for the Series 2020A project, and $1.8 million 
for the Series 2021 project. The infrastructure will include roadways, utilities, landscapes, hardscapes, 
electrical improvements, and recreational improvements. A portion of the project costs was expected to be 
financed with the proceeds from the issuance of Bonds with the remainder to be funded by the Developer and 
conveyed to the District. Upon completion, certain improvements are to be conveyed to others for ownership 
and maintenance responsibilities. 

 

During a prior fiscal year, the District acquired from the Developers assets costing a total of $5,228,339, of 
which $495,422 was contributed by the Developers. 

 

In connection with the 2019, 2020, and 2020A and 2021 projects (“projects”), if the amount by which the cost 
of the projects or portion thereof to be conveyed by the Developer to the District pursuant to the Acquisition 
Agreements exceeds the amount actually paid by the District for the projects or portion thereof from proceeds 
of the Series 2019, 2020, 2020A, and 2021 Bonds, it may be determined that deferred obligations exist. Upon 
completion of the projects, certain funds available from the Bonds may be used to pay deferred obligations as 
outlined in the Bond Indenture. The District has not yet determined if a liability exists for deferred obligations. 

 

NOTE 7 – LONG TERM LIABILITIES 

 

Series 2019 

In January 2019 the District issued $11,565,000 of Special Assessment Bonds, Series 2019 consisting of 
multiple term bonds with due dates ranging from May 1, 2024 to May 1, 2048 and fixed interest rates ranging 
from 3.75% to 4.1%. The Bonds were issued to finance a portion of the cost of acquiring, constructing, and 
equipping the Series 2019 project. Interest is to be paid semiannually on each May 1 and November 1. 
Principal on the Series 2019 Bonds is paid serially commencing May 1, 2019 through May 1, 2048. 

 

The Bonds are subject to optional redemption prior to maturity as outlined in the Bond Indenture. The Bonds 
are subject to extraordinary mandatory redemption prior to their selected maturity in the manner determined 
by the Bond Registrar if certain events occurred as outlined in the Bond Indenture. This occurred during the 
current fiscal year as the District collected assessments from lot closings and prepaid $10,000 of the Series 
2019 Bonds. In addition, see Note – 13 Subsequent Events for extraordinary redemption amounts 
subsequent to fiscal year end. 

 

The Bond Indenture established a debt service reserve requirement as well as other 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, 2023. 

 

Series 2020 

In April 2020 the District issued $7,705,000 of Special Assessment Bonds, Series 2020 consisting of multiple 
term bonds with due dates ranging from November 1, 2025 to November 1, 2049 and fixed interest rates 
ranging from 3.9% to 5.2%. The Bonds were issued to finance a portion of the cost of acquiring, constructing, 
and equipping the Series 2020 project. Interest is to be paid semiannually on each May 1 and November 1. 
Principal on the Series 2020 Bonds is paid serially commencing November 1, 2020 through November 1, 
2049. 

 

The Bonds are subject to optional redemption prior to maturity as outlined in the Bond Indenture. The Bonds 
are subject to extraordinary mandatory redemption prior to their selected maturity in the manner determined 
by the Bond Registrar if certain events occurred as outlined in the Bond Indenture. 

 

The Bond Indenture established a debt service reserve requirement as well as other 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, 2023. 

 


NOTE 7 – LONG TERM LIABILITIES (Continued) 

 

Series 2020A 

In August 2020 the District issued $7,675,000 of Special Assessment Bonds, Series 2020A consisting of 
multiple term bonds with due dates ranging from May 1, 2025 to May 1, 2050 and fixed interest rates ranging 
from 2.7% to 3.8%. The Bonds were issued to finance a portion of the cost of acquiring, constructing, and 
equipping the Series 2020A project. Interest is to be paid semiannually on each May 1 and November 1. 
Principal on the Series 2020A Bonds is paid serially commencing May 1, 2021 through May 1, 2050. 

 

The Bonds are subject to optional redemption prior to maturity as outlined in the Bond Indenture. The Bonds 
are subject to extraordinary mandatory redemption prior to their selected maturity in the manner determined 
by the Bond Registrar if certain events occurred as outlined in the Bond Indenture. This occurred during the 
current fiscal year as the District collected assessments from lot closings and prepaid $15,000 of the Series 
2020A Bonds. In addition, see Note – 13 Subsequent Events for extraordinary redemption amounts 
subsequent to fiscal year end. 

 

The Bond Indenture established a debt service reserve requirement as well as other 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, 2023. 

 

Series 2021 

In November 2021, the District issued $2,045,000 of Special Assessment Bonds, Series 2021 consisting of 
multiple term bonds with due dates ranging from May 1, 2026 to May 1, 2051, and fixed interest rates ranging 
from 2.3% to 4%. The bonds were issued to finance the cost of acquiring, constructing and equipping 
assessable improvements comprising the Series 2021 Project. Interest is to be paid semiannually on each 
May 1 and November 1. Principal on the Bonds is to be paid serially commencing May 1, 2022 through May 
1, 2051. 

 

The Bonds are subject to optional redemption prior to maturity as outlined in the Bond Indenture. The Bonds 
are subject to extraordinary mandatory redemption prior to their selected maturity in the manner determined 
by the Bond Registrar if certain events occurred as outlined in the Bond Indenture. 

 

The Bond Indenture established a debt service reserve requirement as well as other 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, 2023. 

 

Long-term Debt Activity 

Changes in long-term liability activity for the fiscal year ended September 30, 2023 were as follows: 

 

 
AdditionsReductionsGovernmental activitiesBonds payable:
Series 201910,515,000$ -$ 225,000$ 10,290,000$ 225,000$ 
Series 20207,285,000 - 135,000 7,150,000 140,000 
Series 2020A7,360,000 - 175,000 7,185,000 165,000 
Less: OID52,539 - 1,876 50,663 - 
Series 20212,005,000 - 45,000 1,960,000 45,000 
Plus: OIP28,227 - 976 27,251 - 
Financed purchases53,467 - 22,728 30,739 24,148 
Total27,194,155$ -$ 601,828$ 26,592,327$ 599,148$ 
Beginning 
BalanceEnding 
BalanceDue Within 
One Year


NOTE 7 – LONG TERM LIABILITIES (Continued) 

 

Long-term Debt Activity (Continued) 

At September 30, 2023, the scheduled debt service requirements on the long-term debt were as follows: 

 

 
Principal Interest Total2024575,000$ 1,181,250$ 1,756,250$ 
2025590,000 1,161,767 1,751,767 
2026610,000 1,140,830 1,750,830 
2027635,000 1,118,131 1,753,131 
2028660,000 1,093,906 1,753,906 
2029-20333,715,000 5,049,961 8,764,961 
2034-20384,635,000 4,149,379 8,784,379 
2039-20435,795,000 2,992,809 8,787,809 
2044-20487,330,000 1,480,858 8,810,858 
2049-20522,040,000 120,380 2,160,380 
Total26,585,000$ 19,489,271$ 46,074,271$ 
Governmental ActivitiesYear ending 
September 30:

 

NOTE 8 – FINANCE PURCHASES 

 

The District has the following agreements to finance the purchase of equipment: 

 

 
EquipmentEquipmentAgreementMonthlyTypeCostInceptionMaturityPaymentFitness77,205$ 1/25/202112/25/2024$1,792Fitness9,965 1/25/20222/25/2025322

Minimum payments for years ending after September 30, 2023 are as follows: 

 

 
202424,148$ 1,220$ 25,368$ 
20256,591 75 6,666 
Total30,739$ 1,295$ 32,034$ 
Year ending 
September 30:PrincipalInterestTotal 
payments

NOTE 9 – DEVELOPER TRANSACTIONS 

 

The Developers own a portion of land within the District; therefore, assessment revenues in the debt service 
funds include the assessments levied on those lots owned by the Developer. 

 

NOTE 10 – CONCENTRATION 

 

The District’s activity is dependent upon the continued involvement of the Developers, the loss of which could 
have a material adverse effect on the District’s operations. 

 

NOTE 11 – MANAGEMENT COMPANY 

 

The District has contracted with a management company to perform management advisory services, which 
include financial and accounting services. Certain employees of the management company also serve as 
officers of the District. Under the agreement, the District compensates the management company for 
management, accounting, financial reporting, computer and other administrative costs. 

 

NOTE 12 – 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. The District has obtained commercial insurance from 
independent third parties to mitigate the costs of these risks; coverage may not extend to all situations. There 
were no settled claims over the past three years. 

 

 

 


NOTE 13 – SUBSEQUENT EVENTS 

 

Bond Payments 

Subsequent to fiscal year end, the District prepaid a total of $15,000 of the Series 2019 Bonds, and $15,000 
of the Series 2020A Bonds. The prepayments were considered extraordinary mandatory redemptions as 
outlined in the Bond Indenture. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


CYPRESS BLUFF COMMUNITY DEVELOPMENT DISTRICT 

CITY OF JACKSONVILLE, FLORIDA 

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN 

FUND BALANCE - BUDGET AND ACTUAL – GENERAL FUND 

FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 

 

 

 
ActualOriginal FinalAmountsREVENUESAssessments907,175$ 910,227$ 910,227$ -$ 
Interest 1,000 9,981 9,978 (3) 
Miscellaneous income20,000 18,778 18,778 - 
Total revenues928,175 938,986 938,983 (3) 
EXPENDITURESCurrent:
General government146,667138,090130,239 7,851Maintenance and operations406,054 429,369458,936 (29,567) 
Amenity406,169475,972384,147 91,825Debt Service:
Principal- - 22,728(22,728) 
Interest- - 2,639(2,639) 
Total expenditures958,890 1,043,431 998,689 44,742 
Excess (deficiency) of revenuesover (under) expenditures(30,715) (104,445) (59,706) 44,739 
OTHER FINANCING SOURCESCarryforward surplus30,715 104,445 - (104,445) 
Total other financing sources30,715 104,445 - (104,445) 
Net change in fund balance-$ -$ (59,706) (59,706)$ 
Fund balance - beginning491,702 
Fund balance - ending431,996$ 
Variance with 
Final Budget - 
Positive 
(Negative)
Budgeted Amounts

 

 

 

 

 

 

 

 

 

 

 

 

See notes to required supplementary information 


CYPRESS BLUFF COMMUNITY DEVELOPMENT DISTRICT 

CITY OF JACKSONVILLE, FLORIDA 

NOTES TO REQUIRED SUPPLEMENTARY INFORMATION 

 

 

The District is required to establish a budgetary system and an approved Annual Budget for the general fund. 
The District’s budgeting process is based on estimates of cash receipts and cash expenditures which are 
approved by the Board. The budget approximates a basis consistent with accounting principles generally 
accepted in the United States of America (generally accepted accounting principles). 

 

The legal level of budgetary control, the level at which expenditures may not exceed budget, is in the 
aggregate. Any budget amendments that increase the aggregate budgeted appropriations must be approved 
by the Board of Supervisors. The general fund budget for the fiscal year ended September 30, 2023 was 
amended to increase revenues by $10,811 and increase appropriations by $84,541. Actual general fund 
expenditures did not exceed appropriations for the fiscal year ended September 30, 2023. 

 

 

 

 


CYPRESS BLUFF COMMUNITY DEVELOPMENT DISTRICT 

CITY OF JACKSONVILLE, FLORIDA 

OTHER INFORMATION – DATA ELEMENTS 

REQUIRED BY FL STATUTE 218.39(3)(C) 

FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 

UNAUDITED 

 

 

 
ElementCommentsNumber of District employees compensated in the last pay period of the District’s 
fiscal year being reported.
0Number of independent contractors compensated to whom nonemployee 
compensation was paid in the last month of the District’s fiscal year being 
reported.
20Employee compensation$7,800 
Independent contractor compensation $1,443,873 
Construction projects to begin on or after October 1; ($65K)NoneBudget variance reportSee the Schedule of Revenues, Expenditures and 
Changes in Fund Balance - Budget and Actual - General 
FundAd Valorem taxesNot applicableNon ad valorem special assessments;
Special assessment rateOperations and maintenance:
$351.35 - $540.54Debt service:
Series 2019: $405.17 - $837.60Series 2020: $405.37 - $837.80Series 2020A: $723.64 - $1,085.46Series 2021: $404.86 - $836.38 
Special assessments collected $2,688,110 
Outstanding Bonds:see Note 7 for details

 

 


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 

Cypress Bluff Community Development District 

City of Jacksonville, 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 the governmental activities and 
each major fund of Cypress Bluff Community Development District, City of Jacksonville, Florida (“District”) as 
of and for the fiscal year ended September 30, 2023, and the related notes to the financial statements, which 
collectively comprise the District’s basic financial statements, and have issued our opinion thereon dated 
March 18, 2024. 

Report on Internal Control Over Financial Reporting 

In planning and performing our audit of the financial statements, we considered the District’s internal control 
over financial reporting (internal control) 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 the District’s internal control. Accordingly, we do not express 
an opinion on the effectiveness of the District’s internal control. 

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 a 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 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 or significant deficiencies 
may exist that were not identified. 

Report on Compliance and Other Matters 

As part of obtaining reasonable assurance about whether the District’s financial statements are free from 
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, 
contracts, and 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. The results 
of our tests disclosed no instances of noncompliance or other matters that are required to be reported under 
Government Auditing Standards. 

 


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. 

 

 

March 18, 2024 

 


INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE WITH THE 

REQUIREMENTS OF SECTION 218.415, FLORIDA STATUTES, REQUIRED BY 

RULE 10.556(10) OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA 

 

To the Board of Supervisors 

Cypress Bluff Community Development District 

City of Jacksonville, Florida 

 

We have examined Cypress Bluff Community Development District, City of Jacksonville, Florida’s (“District”) 
compliance with the requirements of Section 218.415, Florida Statutes, in accordance with Rule 10.556(10) of 
the Auditor General of the State of Florida during the fiscal year ended September 30, 2023. Management is 
responsible for District’s compliance with those requirements. Our responsibility is to express an opinion on 
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. Those standards require that we plan and perform the examination to 
obtain reasonable assurance about whether the District complied, in all material respects, with the specified 
requirements referenced in Section 218.415, Florida Statutes. An examination involves performing 
procedures to obtain evidence about whether the District complied with the specified requirements. The 
nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of 
the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained 
is sufficient and appropriate to provide a reasonable basis for our opinion. Our examination does not provide 
a legal determination on the District’s compliance with specified requirements. 

 

We are required to be independent and to meet our other ethical responsibilities in accordance with relevant 
ethical requirements relating to the examination engagement. 

 

In our opinion, the District complied, in all material respects, with the aforementioned requirements for the 
fiscal year ended September 30, 2023. 

 

This report 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, management, and 
the Board of Supervisors of Cypress Bluff Community Development District, City of Jacksonville, Florida and 
is not intended to be and should not be used by anyone other than these specified parties. 

 

 

 

March 18, 2024 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


MANAGEMENT LETTER PURSUANT TO THE RULES OF 

THE AUDITOR GENERAL FOR THE STATE OF FLORIDA 

 

To the Board of Supervisors 

Cypress Bluff Community Development District 

City of Jacksonville, Florida 

 

Report on the Financial Statements 

 

We have audited the accompanying basic financial statements of Cypress Bluff Community Development 
District, City of Jacksonville, Florida ("District") as of and for the fiscal year ended September 30, 2023, and 
have issued our report thereon dated March 18, 2024. 

 

Auditor’s Responsibility 

 

We conducted our audit in accordance with auditing standards generally accepted in the United States of 
America; 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 Reporting Requirements 

 

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 the Financial Statements Performed in Accordance with 
Government Auditing Standards; and Independent Auditor’s Report on an examination conducted in 
accordance with AICPA Professional Standards, AT-C Section 315, regarding compliance requirements in 
accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated 
March 18, 2024, should be considered in conjunction with this management letter. 

 

Purpose of this Letter 

 

The purpose of this letter is to comment on those matters required by Chapter 10.550 of the Rules of the 
Auditor General for the State of Florida. Accordingly, in connection with our audit of the financial statements 
of the District, as described in the first paragraph, we report the following: 

 

I. Current year findings and recommendations. 

II. Status of prior year findings and recommendations. 

III. Compliance with the Provisions of the Auditor General of the State of Florida. 

 

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, as applicable, management, and the Board of Supervisors of Cypress 
Bluff Community Development District, City of Jacksonville, Florida and is not intended to be and should not 
be used by anyone other than these specified parties. 

 

We wish to thank Cypress Bluff Community Development District, City of Jacksonville, Florida and the 
personnel associated with it, for the opportunity to be of service to them in this endeavor as well as future 
engagements, and the courtesies extended to us. 

 

 

 

March 18, 2024 


REPORT TO MANAGEMENT 

 

 

I. CURRENT YEAR FINDINGS AND RECOMMENDATIONS 

 

 None 

 

II. PRIOR YEAR FINDINGS AND RECOMMENDATIONS 

 

 None 

 

III. COMPLIANCE WITH THE PROVISIONS OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA 

 

Unless otherwise required to be reported in the auditor’s report on compliance and internal controls, the 
management letter shall include, but not be limited to the following: 

 

1. A statement as to whether or not corrective actions have been taken to address findings and 
recommendations made in the preceding annual financial audit report. 


There were no significant findings and recommendations made in the preceding annual financial 
audit report for the fiscal year ended September 30, 2022. 

2. Any recommendations to improve the local governmental entity's financial management. 


There were no such matters discovered by, or that came to the attention of, the auditor, to be 
reported for the fiscal year ended September 30, 2023. 

3. 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. 


There were no such matters discovered by, or that came to the attention of, the auditor, to be 
reported, for the fiscal year ended September 30, 2023. 

 

4. The name or official title and legal authority of the District are disclosed in the notes to the financial 
statements. 


 

5. The District has not met one or more of the financial emergency conditions described in Section 
218.503(1), Florida Statutes. 


 

6. We applied financial condition assessment procedures and no deteriorating financial conditions were 
noted. It is management’s responsibility to monitor financial condition, and our financial condition 
assessment was based in part on representations made by management and the review of financial 
information provided by same. 


 

7. Management has provided the specific information required by Section 218.39(3)(c) in the Other 
Information section of the financial statements on page 26.