Tranquility
Community Development District Agenda
August 14, 2024

Agenda

Tranquility
Community Development District

August 7, 2024

Dear Board Members:

219 East Livingston Street, Orlando, Florida 32801 Phone: 407-841-5524 – Fax: 407-839-1526

The regular meeting of the Board of Supervisors of Tranquility Community Development District will be held Wednesday, August 14, 2024 at 2:00 PM at 5445 S. Washington Ave. Floor, Titusville, FL 37780. Following is the advance agenda for the meeting:

Board of Supervisors Meeting

Roll Call
Public Comment Period
Approval of Minutes of the May 8, 2024 Board of Supervisors Meetings
Public Hearing
	Consideration of Resolution 2024-04 Adopting Fiscal Year 2025 Proposed Budget and Appropriating Funds
Consideration of 2024/2025 Developer Funding Agreement
Presentation of Fiscal Year 2023 Financial Audit Report
Staff Reports
Attorney
Engineer
District Manager’s Report
Balance Sheet and Income Statement
Ratification of Funding Requests No. 23-25
Adoption of District Goals and Objectives
Approval of Fiscal Year 2025 Meeting Schedule
Other Business
Supervisors Requests
Adjournment

Minutes

MINUTES OF MEETING TRANQUILITY
COMMUNITY DEVELOPMENT DISTRICT

The regular meeting of the Board of Supervisors of the Tranquility Community Development District was held on Wednesday, May 8, 2024 at 2:00 p.m. at 5445 S. Washington Ave., Titusville, Florida.

Present and constituting a quorum were:
Gary Allen Jr.	Chairman
Kenneth Belshe by phone	Vice Chairman
William Livingston	Assistant Secretary
David Lusby	Assistant Secretary
Clint Smith	Assistant Secretary Also, present were:
Jeremy LeBrun	GMS, Manager
Rodney Honeycutt	District Engineer

The following is a summary of the discussions and actions taken at the May 8, 2024 Tranquility Community Development District’s Regular Board of Supervisor’s Meeting.

FIRST ORDER OF BUSINESS	Roll Call
Mr. LeBrun called the meeting to order at 2:04 p.m. Four Supervisors were in attendance in person. Mr. Kenneth Belshe joined by phone.

SECOND ORDER OF BUSINESS	Public Comment Period
Mr. LeBrun asked if any members of the public wish to make a comment. Hearing no comments, the next item followed.

THIRD ORDER OF BUSINESS	Approval of Minutes of the November 8, 2023
Audit Committee and Board of Supervisors Meetings
Mr. LeBrun presented the minutes of the November 8, 2023 Audit Committee and Board of Supervisor’s meetings and asked for any comments, corrections, or questions. Hearing none, he asked for a motion of approval.

On MOTION by Mr. Smith, seconded by Mr. Allen, with all in favor, the Minutes of the November 8, 2023 Audit Committee and Board of Supervisors meetings, were approved.

FOURTH ORDER OF BUSINESS	Consideration	of	Resolution	2024-02
Approving the Fiscal Year 2025 Proposed Budget and Setting a Public Hearing
Mr. LeBrun stated this is the same version that was circulated in the email to the Board. This is pretty similar to the current fiscal year budget. It is still reflecting developer contribution but wanted to make sure the Board is aware this is not showing an O&M assessment and also not reflecting any maintenance costs. This is based on what they have up to this point. As of now, they are still looking at finalizing some of the numbers and getting more detailed data for that. This would be approving the proposed budget but not actually adopting the budget until the August 14th meeting. It starts the process for Fiscal Year 2025 budget. There are slight increases in management fees and website maintenance.
Mr. Belshe noted the developer is anticipating a bond issue in the calendar year of 2024, does that allow this to be changed so that they move to more of a landowner, lot owner, home owner funded operation as opposed to the developer contributions of $140,000. When does this transition happen? Mr. LeBrun noted if the Board is looking to go to an O&M assessment, this meeting can be continued to June to factor in the maintenance assessments or if they are looking at any turnover in the next fiscal year for those maintenance costs. The next meeting is June 12th and by law there has to be a proposed budget by June 15th. Mr. Belshe asked without a bond issue is there such a thing as Trustee fees. Mr. LeBrun will check with the Trustee or accounting. The Board wants to approve this as is and if it needs to be amended, it will be done at the June 12th regular scheduled meeting.

On MOTION by Mr. Smith, seconded by Mr. Livingston, with all in favor, Resolution 2024-02 Approving the Fiscal Year 2025 Proposed Budget and Setting a Public Hearing for August 14, 2024 at 2:00 p.m., was approved.

FIFTH ORDER OF BUSINESS	Consideration of Resolution 2024-03 Setting
Date, Time and Location of Landowners’ Election and Meeting
Mr. LeBrun noted the Landowners’ Election will be November 5, 2024 at 2:00 p.m. at this location. Seats 3, 4, and 5 will be up for landowners’ election. The landowners’ election date will be noticed per statute.

On MOTION by Mr. Lusby, seconded by Mr. Smith, with all in favor, Resolution 2024-03 Setting November 5, 2024 at 2 p.m. at this Location for Landowners’ Election and Meeting, was approved.

SIXTH ORDER OF BUSINESS	Ratification	of	Fiscal	Year	2023	Audit
Engagement Letter
Mr. LeBrun noted Grau & Associates was selected as the auditor for the Districts FY2023 audit. As District Manager, we executed this on the Boards behalf so looking for ratification by the Board.

On MOTION by Mr. Smith, seconded by Mr. Livingston, with all in favor, the Fiscal Year 2023 Audit Engagement Letter, was ratified.

SEVENTH ORDER OF BUSINESS	Staff Reports
Attorney
Review of Reminder Memo Regarding Florida Laws for Public Officials
Mr. LeBrun reviewed the 4 hours of ethics training completed this calendar year to be reported on next year’s Form 1 electronically. You self-certify that you did the training. There are links to training in the agenda. Form 1 is due in July, electronically.

Engineer
Mr. Honeycutt had nothing to report.

District Manager’s Report
Balance Sheet and Income Statement
Mr. LeBrun presented the unaudited financials through March 31, 2024 on page 39 of the agenda. No action is required by the Board.

Ratification of Funding Requests No. 17-22
Mr. LeBrun presented funding requests No. 17-22 and asked for ratification.

On MOTION by Mr. Lusby, seconded by Mr. Smith, with all in favor, Funding Requests No. 17-22, were ratified.

Presentation of Registered Voters – 0
Mr. LeBrun stated each year the District is required to report the number of registered voters. As of April 15, 2024, there was 0 registered voters.

EIGHTH ORDER OF BUSINESS	Other Business
There being no comments, the next item followed.

NINTH ORDER OF BUSINESS	Supervisors Requests
There being no comments, the next item followed.

TENTH ORDER OF BUSINESS	Adjournment
Mr. LeBrun asked for a motion to adjourn the meeting.

On MOTION by Mr. Smith, seconded by Mr. Lusby, with all in favor, the meeting was adjourned.

Secretary/Assistant Secretary	Chairman/Vice Chairman

Section IV

Section A

RESOLUTION 2024-04
THE ANNUAL APPROPRIATION RESOLUTION OF THE TRANQUILITY COMMUNITY DEVELOPMENT DISTRICT RELATING TO THE ANNUAL APPROPRIATIONS AND ADOPTING THE BUDGET FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2024, AND ENDING SEPTEMBER 30, 2025; AUTHORIZING BUDGET AMENDMENTS; AND PROVIDING AN EFFECTIVE DATE.

WHEREAS, the District Manager has, prior to the fifteenth (15th) day in June, 2024, submitted to the Board of Supervisors (“Board”) of the Tranquility Community Development District (“District”) proposed budget (“Proposed Budget”) for the fiscal year beginning October 1, 2024 and ending September 30, 2025 (“Fiscal Year 2024/2025”) along with an explanatory and complete financial plan for each fund of the District, pursuant to the provisions of Section 190.008(2)(a), Florida Statutes; and

WHEREAS, at least sixty (60) days prior to the adoption of the Proposed Budget, the District filed a copy of the Proposed Budget with the local governing authorities having jurisdiction over the area included in the District pursuant to the provisions of Section 190.008(2)(b), Florida Statutes; and
WHEREAS, the Board set a public hearing thereon and caused notice of such public hearing to be given by publication pursuant to Section 190.008(2)(a), Florida Statutes; and
WHEREAS, the District Manager posted the Proposed Budget on the District’s website at least two (2) days before the public hearing; and
WHEREAS, Section 190.008(2)(a), Florida Statutes, requires that, prior to October 1st of each year, the Board, by passage of the Annual Appropriation Resolution, shall adopt a budget for the ensuing fiscal year and appropriate such sums of money as the Board deems necessary to defray all expenditures of the District during the ensuing fiscal year; and

WHEREAS, the District Manager has prepared a Proposed Budget, whereby the budget shall project the cash receipts and disbursements anticipated during a given time period, including reserves for contingencies for emergency or other unanticipated expenditures during the fiscal year.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF SUPERVISORS OF THE TRANQUILITY COMMUNITY DEVELOPMENT DISTRICT:

SECTION 1.  BUDGET
The Board has reviewed the Proposed Budget, a copy of which is on file with the office of the District Manager and at the District’s Local Records Office, and hereby approves certain amendments thereto, as shown in Section 2 below.
The Proposed Budget, attached hereto as Exhibit “A,” as amended by the Board, is hereby adopted in accordance with the provisions of Section 190.008(2)(a), Florida Statutes (“Adopted Budget”), and incorporated herein by reference; provided, however, that the comparative figures contained in the Adopted Budget may be subsequently revised as deemed necessary by the District Manager to reflect actual revenues and expenditures.

The Adopted Budget, as amended, shall be maintained in the office of the District Manager and at the District’s Local Records Office and identified as “The Budget for the Tranquility Community Development District for the Fiscal Year Ending September 30, 2025.”
The Adopted Budget shall be posted by the District Manager on the District’s official website within thirty (30) days after adoption and shall remain on the website for at least two (2) years.
SECTION 2.	APPROPRIATIONS

There is hereby appropriated out of the revenues of the District, for Fiscal Year 2024/2025, the sum of $	to be raised to be raised by levy of assessments or otherwise, which sum is deemed by the Board to be necessary to defray all expenditures of the District during said budget year, to be divided and appropriated in the following fashion:

TOTAL GENERAL FUND	$	

TOTAL ALL FUNDS	$	

SECTION 3.	BUDGET AMENDMENTS
Pursuant to Section 189.016, Florida Statutes, the District at any time within Fiscal Year 2024/2025 or within sixty (60) days following the end of the Fiscal Year 2024/2025 may amend its Adopted Budget for that fiscal year as follows:
A line-item appropriation for expenditures within a fund may be decreased or increased by motion of the Board recorded in the minutes, and approving the expenditure, if the total appropriations of the fund do not increase.

The District Manager or Treasurer may approve an expenditure that would increase or decrease a line-item appropriation for expenditures within a fund if the total appropriations of the fund do not increase and if either (i) the aggregate change in the original appropriation item does not exceed the greater of $15,000 or 15% of the original appropriation, or (ii) such expenditure is authorized by separate disbursement or spending resolution.

Any other budget amendments shall be adopted by resolution and consistent with Florida law.

The District Manager or Treasurer must ensure that any amendments to the budget under paragraph
c. above are posted on the District’s website within five (5) days after adoption and remain on the website for at least two (2) years.

SECTION 4.	EFFECTIVE DATE.	This Resolution shall take effect immediately upon adoption.
PASSED AND ADOPTED THIS 14th DAY OF AUGUST 2024.

ATTEST:	TRANQUILITY COMMUNITY
DEVELOPMENT DISTRICT

Secretary/Assistant Secretary

By:	 Its:	

Exhibit A:	Fiscal Year 2024/2025 Budget

Tranquility
Community Development District

Proposed Budget
FY2025

6M3

Table of Contents

1		General Fund

2-4		General Fund Narrative

Community Development District Proposed Budget
General Fund

	Adopted Budget	Actuals Thru	Projected Next	Total Thru	Proposed Budget	
Description	FY2024	6/30/24	3 Months	9/30/24	FY2025	

Revenues						
Developer Contributions	$	140,021	$	37,246	$	34,444	$	71,690	$	142,891	
Total Revenues	$	140,021	$	37,246	$	34,444	$	71,690	$	142,891	

Expenditures						
General & Administrative						
Supervisor Fees	$	12,000	$	1,600	$	1,800	$	3,400	$	12,000	
FICA Expense	$	900	$	122	$	137	$	260	$	900	
Engineering	$	15,000	$	1,150	$	3,750	$	4,900	$	15,000	
Attorney	$	25,000	$	-	$	6,250	$	6,250	$	25,000	
Annual Audit	$	6,000	$	3,200	$	-	$	3,200	$	6,000	
Assessment Administration	$	5,000	$	-	$	-	$	-	$	5,000	
Arbitrage	$	450	$	-	$	-	$	-	$	450	
Dissemination	$	5,000	$	-	$	-	$	-	$	5,000	
Trustee Fees	$	4,071	$	-	$	-	$	-	$	4,071	
Management Fees	$	40,000	$	30,000	$	10,000	$	40,000	$	42,500	
Information Technology	$	1,800	$	1,350	$	450	$	1,800	$	1,890	
Website Maintenance	$	1,200	$	900	$	300	$	1,200	$	1,260	
Telephone	$	300	$	-	$	75	$	75	$	300	
Postage & Delivery	$	1,000	$	17	$	250	$	267	$	1,000	
Insurance	$	5,500	$	5,200	$	-	$	5,200	$	5,720	
Printing & Binding	$	1,000	$	9	$	250	$	259	$	1,000	
Legal Advertising	$	10,000	$	445	$	2,500	$	2,945	$	10,000	
Other Current Charges	$	5,000	$	354	$	1,250	$	1,604	$	5,000	
Office Supplies	$	625	$	1	$	156	$	157	$	625	
Dues, Licenses & Subscriptions	$	175	$	175	$	-	$	175	$	175	
Total Expenditures	$	140,021	$	44,522	$	27,168	$	71,690	$	142,891	
						
Excess Revenues/(Expenditures)	$	-	$	(7,276)	$	7,276	$	-	$	-	

Revenues:

Developer Contributions

The District will enter into a funding agreement with the Developer to fund the General Fund expenditures for the Fiscal Year.

Expenditures:

General & Administrative:

Supervisor Fees

Chapter 190, Florida Statutes, allows for each Board member to receive $200 per meeting, not to exceed
$4,800 per year paid to each Supervisor for the time devoted to District business and meetings.

FICA Expense

Represents the Employer’s share of Social Security and Medicare taxes withheld from Board of Supervisor checks.

Engineering

The District's engineer, Honeycutt & Associates, Inc provides general engineering services to the District,
e.g. attendance and preparation for monthly board meetings, review invoices and various projects as directed by the Board of Supervisors and the District Manager.

Attorney

The District's legal counsel, Cob Cole, provides general legal services to the District, e.g. attendance and preparation for meetings, preparation and review of agreements, resolutions, etc. as directed by the Board of Supervisors and the District Manager.

Annual Audit

The District is required by Florida Statutes to arrange for an independent audit of its financial records on an annual basis.

Assessment Administration

The District will contract to levy and administer the collection of non-ad valorem assessment on all assessable property within the District. Governmental Management Services – Central Florida, LLC provides these services.

Arbitrage

The District will contract with an independent certified public accountant to annually calculate the District’s Arbitrage Rebate Liability on an anticipated bond issuance.

Dissemination

The District is required by the Security and Exchange Commission to comply with Rule 15c2-12(b)(5) which relates to additional reporting requirements for unrated bond issues. This cost is based upon an anticipated bond issuance. Governmental Management Services – Central Florida, LLC provides these services.

Trustee Fees

The District will incur trustee related costs with the issuance of its’ issued bonds.

Management Fees

The District receives Management, Accounting and Administrative services as part of a Management Agreement with Governmental Management Services-Central Florida, LLC. The services include but are not limited to, recording and transcription of board meetings, administrative services, budget preparation, all financial reports, annual audits, etc.

Information Technology

Represents various cost of information technology for the District such as video conferencing, cloud storage and servers, positive pay implementation and programming for fraud protection, accounting software, tablets for meetings, Adobe, Microsoft Office, etc. Governmental Management Services – Central Florida, LLC provides these services.

Website Maintenance

Represents the costs associated with monitoring and maintaining the District’s website created in accordance with Chapter 189, Florida Statutes. These services include site performance assessments, security and firewall maintenance, updates, document uploads, hosting and domain renewals, website backups, etc. Governmental Management Services – Central Florida, LLC provides these services.

Telephone

Telephone and fax machine.

Postage & Delivery

The District incurs charges for mailing of Board meeting agenda packages, overnight deliveries, correspondence, etc.

Insurance

The District’s general liability and public official’s liability insurance coverage is provided by the Florida Insurance Alliance (FIA). FIA specializes in providing insurance coverage to governmental agencies.

Printing & Binding

Printing and Binding agenda packages for board meetings, printing of computerized checks, stationary, envelopes, etc.

Legal Advertising

The District is required to advertise various notices for monthly Board meetings, public hearings, etc. in a newspaper of general circulation.

Other Current Charges

Bank charges and any other miscellaneous expenses incurred during the year.

Office Supplies

Any supplies that may need to be purchased during the fiscal year, e.g., paper, minute books, file folders, labels, paper clips, etc. Governmental Management Services – Central Florida, LLC provides these services.

Dues, Licenses & Subscriptions

The District is required to pay an annual fee to the Florida Department of Commerce for $175. This is the only expense under this category for the District.

Section B

TRANQUILITY COMMUNITY DEVELOPMENT DISTRICT FISCAL YEAR 2025 DEVELOPER FUNDING AGREEMENT

THIS	FISCAL	YEAR	2025	DEVELOPER	FUNDING	AGREEMENT	(the
“Agreement”) is made and entered into this 	 day of August 2024, by and between:

TRANQUILITY COMMUNITY DEVELOPMENT DISTRICT, a local unit of
special-purpose government, established pursuant to Chapter 190, Florida Statutes, and located in the City of Titusville, Brevard County, Florida (hereinafter “District”), and
CAROLINA HOLDINGS II, LLC, a Nevada limited liability company and a landowner in the District (hereinafter “Developer”).
Recitals
WHEREAS, the District was established by Ordinance Number 04-2022 of the City Council of Titusville, Florida (the “City Council”), pursuant to the Uniform Community Development District Act of 1980, Chapter 190, Florida Statutes, as amended, (the “Act”) for the purpose of planning, financing, constructing, operating and/or maintaining certain infrastructure, including a storm water management system, roadways, water distribution and sewer collection systems, landscaping, recreational facilities and other infrastructure; and

WHEREAS, the District, pursuant to the Act, is authorized to levy such taxes, special assessments, fees and other charges as may be necessary in furtherance of the District’s activities and services; and
WHEREAS, Developer presently owns and/or is developing real property within the District, which property will benefit from the timely construction and acquisition of the District’s facilities, activities and services and from the continued operations of the District; and
WHEREAS, the District is adopting its general fund budget for the fiscal year beginning October 1, 2024 and ending September 30, 2025 (“the Budget”); and

WHEREAS, the Budget, which both parties recognize may be amended from time to time in the sole discretion of the District, are attached hereto and incorporated herein by reference as Exhibit “A”; and

WHEREAS, the District has or will levy non ad valorem special assessments on all land within the District that will benefit from the District activities, operations and services set forth in Exhibit “A”; and
WHEREAS, the Developer agrees that the activities, operations and services provide a special and peculiar benefit equal to or in excess of the costs reflected on Exhibit “A” to the property owned by the Developer within the District (the “Property”); and

WHEREAS, in lieu of initially certifying for collection special assessments on the Property, the District is willing to allow the Developer to provide such funds as are necessary to allow the District to proceed with its operations as described in Exhibit “A” so long as payment is timely provided; and

WHEREAS, the District desires to secure the funding of the Budget through the imposition of a continuing lien against the Property and otherwise as provided herein and in any resolutions of the District pertaining to the imposition of a lien for special assessments.

WHEREAS, the Developer agrees to enter into the Agreement in lieu of having the District collect any non-ad valorem assessments as authorized by law against the Property located within the District for the activities, operations, and services set forth in the Budget.

NOW THEREFORE, based upon good and valuable consideration and the mutual covenants of the parties, the receipt of which and sufficiency of which is hereby acknowledged, the parties agree as follows:
The Developer agrees to make available to the District the monies necessary for the operation of the District based on actual expenditures of the District as called for in the budget attached hereto as Exhibit “A” (and as Exhibit “A” may be amended from time to time), within thirty (30) days of written request by the District. Amendments to the District’s Budget as shown in Exhibit “A” adopted by the District at a duly noticed meeting shall have the effect of amending this Agreement without further action of the parties. The funds provided under this Agreement shall be placed in the District’s general checking account. These payments are made by the Developer in lieu of the collection of special assessments that might otherwise be collected by the District.

District shall have the right to file a continuing lien upon the Property described in Exhibit “A” for all payments due and owing under the terms of this Agreement and for interest thereon, and for reasonable attorneys’ fees, paralegals’ fees, expenses, and court costs incurred by the District incident to the collection of funds under this Agreement and for enforcement of this lien, and all sums advanced and paid by the District for taxes and payment on account of superior interests, liens, and encumbrances in order to preserve and protect the District’s lien. The lien shall be effective as of the date and time of the recording of a “Notice of Lien for FY 2025 Budget” in the public records of Brevard County, Florida, stating among other things, the description of the real property and the amount due as of the recording of the Notice, and the existence of this Agreement. The District Manager, in its sole discretion, is hereby authorized by the District to file the Notice of Lien for the Budget on behalf of the District, without need of further Board action authorizing or directing such filing. At the District Manager’s direction, the District may also bring an action at law against the record title holders to the Property to pay the amount due under this Agreement, or may foreclose the lien against the Property in any manner authorized by law. In the event the Developer sells any of the Property after the execution of this Agreement, the Developers’ rights and obligations under this Agreement shall remain the same, provided however that the District shall only have the right to file a lien upon the remaining Property owned by the Developer.

The District has found that the activities, operations and services set out in Exhibit “A” provide a special and peculiar benefit to the Property, as described in the legal description attached hereto and incorporated herein as Exhibit “B”. The Developer agrees that the activities, operations and services set forth in Exhibit “A” provide a special and peculiar benefit to the Property equal to or in excess of the costs set out in Exhibit “A”, as described in Exhibit “B”. Therefore, in the alternative or in addition to the other methods of collection set forth in this Agreement, or in any resolution of the District regarding the imposition and collection of special assessments, the District, in its sole discretion, and upon failure of the Developer to make payment as provided for in this Agreement, may choose to certify for collection amounts due hereunder as a non ad valorem assessment on all or any part of the Property for collection, either through the Uniform Method of Collection set forth in Chapter 197 or under any method of direct bill and collection on a future years tax roll and collected by the Brevard County Tax Collector, collected pursuant to a foreclosure action, or, at the District’s discretion, collected in any other method authorized by law.

In the event the District is required to certify non ad valorem special assessments for collection as a result of the Developer’s failure to provide the funds as required under this Agreement, the amount of funds received by the District from Developer under this Agreement shall be credited pro-rata to all lands subject to special assessments in the manner provided in the District’s assessment methodology of operation and maintenance.
District and Developer agree that the FY 2025 Budget shall be revised at the end of the fiscal year to reflect the actual expenditures for the District for the period beginning October 1, 2024 and ending September 30, 2025. Developer shall not be responsible for any costs other than those costs provided for in the Budget, as so amended.

This instrument shall constitute the final and complete expression of the agreement between the parties relating to the subject matter of this Agreement. Amendments to and waivers of the provisions contained in this Agreement may be made only by an instrument in writing that is executed by both of the parties hereto.

The execution of this Agreement has been duly authorized by the appropriate body or official of all parties hereto, each party has complied with all the requirements of law and each party has full power and authority to comply with the terms and provisions of this instrument.

This Agreement may be assigned, in whole or in part, by either party only upon the written consent of the other, which consent shall not be unreasonably withheld.
A default by either party under this Agreement shall entitle the other to all remedies available at law or in equity, which shall include, but not be limited to, the right of damages, injunctive relief and specific performance and specifically including the ability of the District to enforce any and all payment obligations under this Agreement through the imposition and enforcement of a contractual or other lien on property owned by the Developer, and in the manner described in paragraph 3 above.

In the event that either party is required to enforce this Agreement by court

proceedings or otherwise, then the parties agree that the prevailing party shall be entitled to recover from the other party all costs incurred, including reasonable attorneys’ fees and costs for trial, alternative dispute resolution or appellate proceedings.

This Agreement is solely for the benefit of the formal parties herein and no right or cause of action shall accrue upon or by reason hereof, to or for the benefit of any third party not a formal party hereto. Nothing in this Agreement expressed or implied is intended or shall be construed to confer upon any person or corporation other than the parties hereto any right, remedy or claim under or by reason of this Agreement or any provisions or conditions hereof; and all of the provisions, representations, covenants and conditions herein contained shall inure to the sole benefit of and shall be binding upon the parties hereto and their respective representatives, successors and assigns.

This Agreement and the provisions contained herein shall be construed, interpreted and controlled according to the laws of the State of Florida.
This Agreement has been negotiated fully between the parties as an arm’s length transaction. The parties participated fully in the preparation of this Agreement with the assistance of their respective counsel. In the case of a dispute concerning the interpretation of any provision of this Agreement, the parties are each deemed to have drafted, chosen and elected the language, and the doubtful language will not be interpreted or construed against any party.
The Agreement shall be effective after execution by both parties. The enforcement provisions of this Agreement shall survive its termination until all payments due under this Agreement are paid in full.
[SIGNATURES ON FOLLOWING PAGE]

SIGNATURE PAGE TO TRANQUILITY COMMUNITY DEVELOPMENT DISTRICT FY 2025 DEVELOPER FUNDING AGREEMENT

In witness whereof, the parties execute this agreement the day and year first written above.

Attest:	TRANQUILITY COMMUNITY DEVELOPMENT DISTRICT, a Florida
community development district.

By: 			By: 	 Name: 			Name: 		 Title: Assistant Secretary			Title: Chairman, Board of Supervisors

CAROLINA HOLDINGS II, LLC, a Nevada
limited liability company

By: 	 	By: 		 Name:		Name: 		 Title: Witness		Title:	

(Fiscal Year 2025 Budget)

[SEE ATTACHED]

(Legal Description)

[SEE ATTACHED]

Section V

TRANQUILITY COMMUNITY DEVELOPMENT DISTRICT
CITY OF TITUSVILLE, FLORIDA FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023

TRANQUILITY COMMUNITY DEVELOPMENT DISTRICT CITY OF TITUSVILLE, FLORIDA

TABLE OF CONTENTS

	  Page		
INDEPENDENT AUDITOR’S REPORT	1-2	
MANAGEMENT’S DISCUSSION AND ANALYSIS	3-5	
BASIC FINANCIAL STATEMENTS		
Government-Wide Financial Statements:		
Statement of Net Position	6	
Statement of Activities	7	
Fund Financial Statements:		
Balance Sheet – Governmental Funds	8	
Reconciliation of the Balance Sheet – Governmental Funds
to the Statement of Net Position	
9	
Statement of Revenues, Expenditures and Changes in Fund Balances –
Governmental Funds	
10	
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of Activities	
11	
Notes to the Financial Statements	12-17	
REQUIRED SUPPLEMENTARY INFORMATION		
Schedule of Revenues, Expenditures and Changes in Fund Balance –
Budget and Actual – General Fund	
18	
Notes to Required Supplementary Information	19	
OTHER INFORMATION		
Data Elements Required by Florida Statute 218.39(3)(c)	20	
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS	

21-22	
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	

23	
MANAGEMENT LETTER REQUIRED BY CHAPTER 10.550 OF THE RULES OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA	
24-25	

INDEPENDENT AUDITOR’S REPORT
To the Board of Supervisors
Tranquility Community Development District City of Titusville, Florida

951 Yamato Road ▪ Suite 280 Boca Raton, Florida 33431
(561) 994-9299 ▪ (800) 299-4728
Fax (561) 994-5823
www.graucpa.com

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 Tranquility Community Development District, City of Titusville, 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 May 6, 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.

May 6, 2024

MANAGEMENT’S DISCUSSION AND ANALYSIS

The management of the Tranquility Community Development District, Brevard, Florida (“District”) would like to offer the readers of the District’s financial statements this discussion and analysis 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 liabilities of the District exceeded its assets at the close of the most recent fiscal year resulting in a net deficit balance of ($12,025).

The change in the District’s total net position in comparison with the prior fiscal year was $1,254, 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 $10,857 an increase of $1,554 in comparison with the prior fiscal year. The total fund balance 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 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 Developer contributions. The District does not have any business-type activities. The governmental activities of the District include the general government (management) function.
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, the governmental funds.

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 balance provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The District maintains two governmental fund 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 and capital projects fund, which are considered major funds.

The District adopts an annual appropriated budget for its general fund. 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 basic 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, liabilities exceeded assets at the close of the fiscal year ended September 30, 2023.

Key components of the District’s net position are reflected in the following table:
NET POSITION SEPTEMBER 30,
	2023	2022	
Current and other assets	$	11,272	$	20,390	
Total assets	11,272	20,390	
Current liabilities	415	11,087	
Long-term liabilities	22,882	22,582	
Total liabilities	23,297	33,669	
Net position
Unrestricted	
(12,025)	
(13,279)	
Total net position	$	(12,025)	$	(13,279)	

The District’s net position increased during the most recent fiscal year.

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

CHANGES IN NET POSITION
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,
2023	2022

Revenues:
Program revenues
Operating grants and contributions	$	61,236	$	54,270	
Total revenues	61,236	54,270	
Expenses:
General government	
59,682	
44,967	
Bond issue costs	300	22,582	
Total expenses	59,982	67,549	
Change in net position	1,254	(13,279)	
Net position - beginning	(13,279)	-	
Net position - ending	$	(12,025)	$	(13,279)	
As noted above and in the statement of activities, the cost of all governmental activities during the during the fiscal year ended September 30, 2023 was $59,982. The costs of the District’s activities were primarily funded by program revenues. Program revenues of the District are comprised of Developer contributions.

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. Actual general fund expenditures did not exceed appropriations for the fiscal year ended September 30, 2023.

ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND OTHER EVENTS

The Board has initiated discussions to issue Bonds to fund the construction of the District infrastructure; however, the Bonds have not been issued as of the date of the report.
CONTACTING THE DISTRICT’S FINANCIAL MANAGEMENT

This financial report is designed to provide our citizens, taxpayers, 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 Tranquility Community Development District’s Finance Department at 219, East Livingston Street, Orlando FL 32801.

TRANQUILITY COMMUNITY DEVELOPMENT DISTRICT CITY OF TITUSVILLE, FLORIDA STATEMENT OF NET POSITION
SEPTEMBER 30, 2023

	Governmental
	Activities		
ASSETS		
Cash	$	5,422	
Due from Developer		5,850 	
Total assets		11,272 	
LIABILITIES		
Accounts payable	415	
Noncurrent liabilities:		
Developer advances		22,882 	
Total liabilities		23,297 	
	.	
NET POSITION		
Unrestricted		(12,025) 	
Total net position	 $	(12,025) 	

See notes to the financial statements

STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023

Net (Expense) Revenue and Changes in Net
 Program Revenues Position  Operating Grants
and	Governmental
Functions/Programs		Expenses	Contributions	Activities	 Primary government:
Governmental activities:

General government

$	59,682	$

61,236	$

1,554

Bond issue costs			300		-		(300)  Total governmental activities		59,982	61,236	1,254 

Change in net position	1,254	
Net position - beginning		(13,279) 	
Net position - ending	 $	(12,025) 	

See notes to the financial statements

BALANCE SHEET GOVERNMENTAL FUNDS SEPTEMBER 30, 2023

	  Major Fund	

General	Total Governmental
Funds	
ASSETS
Cash	
$	5,422	
$	5,422	
Due from Developer	5,850	5,850	
Total assets	$	11,272	$	11,272	

LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable	$	415	$	415	
Total liabilities	415	415	

Fund balances: Unassigned:	

10,857	

10,857	
Total fund balances	10,857	10,857	

Total liabilities and fund balances	
$	11,272	
$	11,272	

See notes to the financial statements

RECONCILIATION OF THE BALANCE SHEET - GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION
SEPTEMBER 30, 2023

Total fund balances - governmental funds	$	10,857

Liabilities not due and payable from current available resources are not reported as liabilities in the governmental fund statements. All liabilities, both current and long-term, are reported in the government-wide financial statements.
Developer advance		(22,882)	(22,882)
Net position of governmental activities	 $	(12,025)

See notes to the financial statements

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023

	Major Funds		Total

REVENUES

General

Capital Projects

Governmental Funds

Developer contributions	$	61,236	$	-	$	61,236	
Total revenues	61,236	-	61,236	

EXPENDITURES
Current:
General government	59,682	-	59,682	
Bond issue costs	-	300	300	
Total expenditures	59,682	300	59,982	
Excess (deficiency) of revenues over (under) expenditures	

1,554	

(300)	

1,254	

OTHER FINANCING SOURCES (USES)
Developer advances	-	300	300	
Total other financing sources (uses)	-	300	300	

Net change in fund balances	
1,554	
-	
1,554	

Fund balances - beginning	
9,303	
-	9,303	

Fund balances - ending	
$	10,857	
$	-	$	10,857	

See notes to the financial statements

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	$
Amounts reported for governmental activities in the statement of activities are different because:

1,554

Governmental funds report Developer advances as financial resources whereas these amounts are eliminated in the statement of activities and recognized as long-term liabilities in the statement of net position.

	(300) 

Change in net position of governmental activities	 $	1,254 

See notes to the financial statements

NOTES TO FINANCIAL STATEMENTS

NOTE 1 – NATURE OF ORGANIZATION AND REPORTING ENTITY

Tranquility Community Development District ("the District") was created on February 22, 2022, pursuant to the Uniform Community Development District Act of 1980, otherwise known as Chapter 190, Florida Statutes, by City of Titusville Ordinance 2022-04. 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 ("the District") which is composed of five members. The Supervisors are elected by landowners of the District. The Board of Supervisors of the District exercise all powers granted to the District pursuant to Chapter 190, Florida Statutes. Two of the Board members are affiliated with Carolina Holdings II, LLC (the “Developer”) as of September 30, 2023.
The District has the final responsibility for:
Assessing and levying maintenance taxes and special assessments.
Approving budgets.
Exercising control over facilities and properties.
Controlling the use of funds generated by the District.
Approving the hiring and firing of key personnel.
Financing improvements.

The financial statements were prepared in accordance with Governmental Accounting Standards District (“GASB”) Statements. Under the provisions of those standards, the financial reporting entity consists of the primary government, organizations for which the Board of Supervisors 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.

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 benefitted property within the District. Operating and Maintenance Assessments are based upon adopted budget and levied annually. 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 (Chapter 197.3632, Florida Statutes). Direct collected assessments are due as determined by annual assessment resolution adopted by the Board of Supervisors. Assessments collected under the uniform method are mailed by County Tax Collector on November 1 and due on or before May 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.
Capital Projects Fund
This fund accounts for the financial resources to be used for the acquisition or construction of major infrastructure and repairs and maintenance within the District.

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.

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.

Restricted Assets
These assets represent cash and investments set aside pursuant to Bond covenants or other contractual restrictions.
Deposits and Investments
The government’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:

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

Securities listed in paragraph c and d shall be invested to provide sufficient liquidity to pay obligations as they come due.
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.

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.

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

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

Long-Term Obligations (Continued)
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.

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.
Each year the District Manager submits to the District Board a proposed operating budget for the fiscal year commencing the following October 1.
Public hearings are conducted to obtain public comments.
Prior to October 1, the budget is legally adopted by the District Board.
All budget changes must be approved by the District Board.
The budgets are adopted on a basis consistent with generally accepted accounting principles.
Unused appropriation for annually budgeted funds lapse at the end of the year.

NOTE 4 – 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.

NOTE 5 – LONG TERM LIABILITIES
During the current year the Developer advanced the District $300, to provide funding for expenses that will be reimbursed from a future Bond issuance. A total of $22,882 has been advanced as of the year ended September 30, 2023 which would be reimbursed to the Developer upon issuance of the Bonds. If Bonds are not issued within 5 years then the advance will be considered a Developer contribution. The Bonds have not been issued as of the date of the report.

	Beginning
Balance	
Additions	
Reductions	Ending
Balance	Due Within One
Year	
Governmental activities
Developer advances	
$	22,582	
$	300	
$	-	$	
22,882	
$	-	
Total	$	22,582	$	300	$	-	$	22,882	$	-	

The Developer has agreed to fund the general operations of the District. In connection with that agreement, Developer contributions to the general fund were $61,236 as well as a receivable of $5,850 as of September 30, 2023.
NOTE 7 – CONCENTRATION

The District’s activity is dependent upon the continued involvement of the Developer the loss of which could have a material adverse effect on the District’s operations.
NOTE 8 – MANAGEMENT AGREEMENTS

The 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 of the District. Under the agreement, the District compensates the management company for management, accounting, financial reporting, computer and other administrative costs.

NOTE 9 – 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 since the creation of the district.

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – GENERAL FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023

	
Budgeted
	Amounts	 Adopted Budget	

Actual Amounts	Variance with Final Budget - Positive
(Negative)	
REVENUES				
Developer contributions	$	136,860	$	61,236	$	(75,624)	
Total revenues	136,860	61,236	(75,624)	

EXPENDITURES
Current:				
General government	136,860	59,682	77,178	
Total expenditures	136,860	59,682	77,178	

Excess (deficiency) of revenues over (under) expenditures	

 $	-		

1,554	

 $	1,554 	
Fund balance - beginning			9,303 		
Fund balance - ending		 $	10,857 		

See notes to required supplementary information

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. Actual general fund expenditures did not exceed appropriations for the fiscal year ended September 30, 2023.

OTHER INFORMATION – DATA ELEMENTS REQUIRED BY FL STATUTE 218.39(3)(C)
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 UNAUDITED

Element	Comments
Number of District employees compensated in the last pay period of the District’s
fiscal year being reported.	0	
Number of independent contractors compensated to whom nonemployee compensation was paid in the last month of the District’s fiscal year being
reported.	
3	
Employee compensation	$1,800.00	
Independent contractor compensation	$57,853.20	
Construction projects to begin on or after October 1; ($65K)	Not applicable	

Budget variance report	See the Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual -
General Fund	
Ad Valorem taxes;	Not applicable	
		
Non ad valorem special assessments;		
Special assessment rate	Operations and maintenance - $ 0
Debt service - $ 0	
Special assessments collected	$0	
Outstanding Bonds:	Not applicable	

951 Yamato Road ▪ Suite 280 Boca Raton, Florida 33431
(561) 994-9299 ▪ (800) 299-4728
Fax (561) 994-5823
www.graucpa.com

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
Tranquility Community Development District City of Titusville, 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 Tranquility Community Development District, City of Titusville, 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 May 6, 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 may exist that have not been 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.

May 6, 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
Tranquility Community Development District City of Titusville, Florida
We have examined Tranquility Community Development District, City of Titusville, 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.

In our opinion, the District complied, in all material respects, with the aforementioned requirements during 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 Tranquility Community Development District, City of Titusville, Florida and is not intended to be and should not be used by anyone other than these specified parties.

May 6, 2024

MANAGEMENT LETTER PURSUANT TO THE RULES OF THE AUDITOR GENERAL FOR THE STATE OF FLORIDA
To the Board of Supervisors
Tranquility Community Development District City of Titusville, Florida
Report on the Financial Statements

We have audited the accompanying basic financial statements of Tranquility Community Development District ("District") as of and for the for the fiscal year ended September 30, 2023 and have issued our report thereon dated May 6, 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 May 6, 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:
Current year findings and recommendations.
Status of prior year findings and recommendations.
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 Tranquility Community Development District, City of Titusville, Florida and is not intended to be and should not be used by anyone other than these specified parties.

We wish to thank Tranquility Community Development District, City of Titusville, 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.

May 6, 2024

REPORT TO MANAGEMENT

CURRENT YEAR FINDINGS AND RECOMMENDATIONS
None.

PRIOR YEAR FINDINGS AND RECOMMENDATIONS

None.
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:

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.
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.
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.
The name or official title and legal authority of the District are disclosed in the notes to the financial statements.
The District has not met one or more of the financial emergency conditions described in Section 218.503(1), Florida Statutes.
We applied financial condition assessment procedures and no deteriorating financial conditions were noted as of September 30, 2023. 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.

Management has provided the specific information required by Section 218.39(3)(c) in the Other Information section of the financial statements on page 20.

Section VI

Section C

Section 1

Tranquility
Community Development District

Unaudited Financial Reporting
June 30, 2024

Table of Contents

	Balance Sheet

	General Fund

	Month to Month

Combined Balance Sheet
	June 30, 2024		
	General Fund	Capital Projects	Totals
Fund	Governmental Funds	
Assets:
Cash:
Operating Account	

$	7,171	

$	-	$	7,171	
Total Assets	$	7,171	$	-	$	7,171	
Liabilities:
Accounts Payable	

$	3,589	

$	-	$	3,589	
Total Liabilites	$	3,589	$	-	$	3,589	
Fund Balance:
Unassigned	

$	3,581	

$	-	$	3,581	
Total Fund Balances	$	3,581	$	-	$	3,581	
			
Total Liabilities & Fund Balance	$	7,171	$	-	$	7,171	

General Fund
Statement of Revenues, Expenditures, and Changes in Fund Balance
For The Period Ending June 30, 2024

	Adopted	Prorated Budget	Actual		
	Budget	Thru 06/30/24	Thru 06/30/24	Variance	

Revenues:					
Developer Contributions	$	140,021	$	37,246	$	37,246	$	-	
Total Revenues	$	140,021	$	37,246	$	37,246	$	-	

Expenditures:					
General & Administrative:					
Supervisor Fees	$	12,000	$	9,000	$	1,600	$	7,400	
FICA Expense	$	900	$	675	$	122	$	553	
Engineering	$	15,000	$	11,250	$	1,150	$	10,100	
Attorney	$	25,000	$	18,750	$	-	$	18,750	
Annual Audit	$	6,000	$	3,200	$	3,200	$	-	
Assessment Administration	$	5,000	$	5,000	$	-	$	5,000	
Arbitrage	$	450	$	450	$	-	$	450	
Dissemination	$	5,000	$	5,000	$	-	$	5,000	
Trustee Fees	$	4,071	$	4,071	$	-	$	4,071	
Management Fees	$	40,000	$	30,000	$	30,000	$	-	
Information Technology	$	1,800	$	1,350	$	1,350	$	-	
Website Maintenance	$	1,200	$	900	$	900	$	-	
Telephone	$	300	$	225	$	-	$	225	
Postage & Delivery	$	1,000	$	750	$	17	$	733	
Insurance	$	5,500	$	5,500	$	5,200	$	300	
Printing & Binding	$	1,000	$	750	$	9	$	741	
Legal Advertising	$	10,000	$	7,500	$	445	$	7,055	
Other Current Charges	$	5,000	$	3,750	$	354	$	3,397	
Office Supplies	$	625	$	469	$	1	$	468	
Dues, Licenses & Subscriptions	$	175	$	175	$	175	$	-	
Total Expenditures	$	140,021	$	108,765	$	44,522	$	64,243	
					
Excess (Deficiency) of Revenues over Expenditures	$	-		$	(7,276)		
					
Fund Balance - Beginning	$	-		$	10,857		
					
Fund Balance - Ending	$	-		$	3,581		

Tranquility
Community Development District Month to Month

Oct	Nov	Dec	Jan	Feb	March	April	May	June	July	Aug	Sept	Total

Revenues:

Developer Contributions	$	-	$	7,349	$	3,822	$	4,945	$	3,200	$	3,589	$	7,168	$	3,584	$	3,589	$	-	$	-	$	-	$	37,246	
Total Revenues	$	-	$	7,349	$	3,822	$	4,945	$	3,200	$	3,589	$	7,168	$	3,584	$	3,589	$	-	$	-	$	-	$	37,246	

Expenditures:											
General & Administrative:											
Supervisor Fees	$	400	$	600	$	-	$	-	$	-	$	-	$	-	$	600	$	-	$	-  $	-  $	-  $	1,600	
FICA Expense	$	31	$	46	$	-	$	-	$	-	$	-	$	-	$	46	$	-	$	-  $	-  $	-  $	122	
Engineering	$	-	$	-	$	-	$	1,150	$	-	$	-	$	-	$	-	$	-	$	-  $	-  $	-  $	1,150	
Attorney	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-  $	-  $	-  $	-	
Annual Audit	$	-	$	-	$	-	$	-	$	3,200	$	-	$	-	$	-	$	-	$	-  $	-  $	-  $	3,200	
Assessment Administration	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-  $	-  $	-  $	-	
Arbitrage	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-  $	-  $	-  $	-	
Dissemination	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-  $	-  $	-  $	-	
Trustee Fees	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-  $	-  $	-  $	-	
Management Fees	$	3,333	$	3,333	$	3,333	$	3,333	$	3,333	$	3,333	$	3,333	$	3,333	$	3,333	$	-  $	-  $	-  $	30,000	
Information Technology	$	150	$	150	$	150	$	150	$	150	$	150	$	150	$	150	$	150	$	-  $	-  $	-  $	1,350	
Website Maintenance	$	100	$	100	$	100	$	100	$	100	$	100	$	100	$	100	$	100	$	-  $	-  $	-  $	900	
Telephone	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-  $	-  $	-  $	-	
Postage & Delivery	$	1	$	5	$	4	$	-	$	5	$	1	$	-	$	0	$	-	$	-  $	-  $	-  $	17	
Insurance	$	5,200	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-  $	-  $	-  $	5,200	
Printing & Binding	$	-	$	1	$	2	$	-	$	-	$	-	$	-	$	-	$	6	$	-  $	-  $	-  $	9	
Legal Advertising	$	233	$	212	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-  $	-  $	-  $	445	
Other Current Charges	$	38	$	38	$	38	$	38	$	40	$	40	$	40	$	40	$	40	$	-  $	-  $	-  $	354	
Office Supplies	$	0	$	0	$	0	$	-	$	0	$	0	$	-	$	0	$	-	$	-  $	-  $	-  $	1	
Dues, Licenses & Subscriptions	$	175	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-  $	-  $	-  $	175	
Total Expenditures	$	9,661	$	4,486	$	3,627	$	4,772	$	6,829	$	3,625	$	3,623	$	4,269	$	3,629	$	-  $	-  $	-  $	44,522	
											
Excess (Deficiency) of Revenues over Expenditures	$	(9,661)	$	2,864	$	195	$	174	$	(3,629)	$	(36)	$	3,545	$	(686)	$	(40)	$	-  $	-  $	-  $	(7,276)	

Section 2

Tranquility
Community Development District

Funding Request #23
April 16, 2024

Bill to:	Carolina Holdings, LLC
General Fund
Payee	FY2024

1	Governmental Management Services		
	Invoice # 25 - Management Fees Mar 2024	$	3,584.67	
	Invoice # 26 - Management Fees April 2024	$	3,583.33	

$	7,168.00

Total

$	7,168.00

Please make check payable to:

Tranquility Community Development District
6200 Lee Vista Blvd, Suite 300 Orlando, FL 32822

Description	Hours/Qty	Rate	Amount

Management Fees - March 2024 Website Administration - March 2024 Information Technology - March 2024 Office Supplies
Postage	

I

,,	3,333.33
100.00
150.00	3,333.33
100.00
150.00
0.06
1.28	
			0.06		
		1.28		

Description	Hours/Qty	Rate	Amount

Management Fees - April 2024		 Website Administration - April 2024
Information Technology - April 2024		3,333.33
100.00
150.00	3,333.33
100.00
150.00	

Tranquility
Community Development District

Funding Request #24
May 14, 2024

Bill to:	Carolina Holdings, LLC
General Fund
Payee	FY2024

1	Governmental Management Services
Invoice # 27 - Management Fees May 2024

$	3,583.55

$	3,583.55

Total

$	3,583.55

Please make check payable to:

Tranquility Community Development District
6200 Lee Vista Blvd, Suite 300 Orlando, FL 32822

GMS-Central Florida, LLC
1001 Bradford Way
Kingston, TN 37763

Invoice

Bill To:
Tranquility CDD 219 E Livingston St. Orlando, FL 32801

Invoice#: 27
Invoice Date: 5/1/24
Due Date: 5/1/24
Case:
P.o. Number:

	
Description	Hours/Qty	Rate	Amount

Management Fees - May 2024 Website Administration - May 2024 Information Technology - May 2024
Office Supplies Postage

3,333.33
100.00
150.00
0.03
0.191

3,333.33
100.00
150.00
0.03
0.19

Total	$3,583.55	
Payments/Credits	$0.00	
Balance Due	$3,583.55	

Tranquility
Community Development District

Funding Request #25
June 17, 2024

Bill to:	Carolina Holdings, LLC
General Fund
Payee	FY2024

1	Governmental Management Services
Invoice # 28 - Management Fees June 2024

$	3,589.18

$	3,589.18

Total

$	3,589.18

Please make check payable to:

Tranquility Community Development District
6200 Lee Vista Blvd, Suite 300 Orlando, FL 32822

GMS-Central Florida, LLC
1001 Bradford Way
Kingston, TN 37763

Invoice

Bill To:
Tranquility CDD 219 E Livingston St. Orlando, FL 32801

Invoice #: 28
Invoice Date: 6/1/24
Due Date: 6/1/24
Case:
P.O. Number:

Description	Hours/Qty	Rate	Amount

Management Fees - June 2024 Website Administration - June 2024 Information Technology - June 2024 Copies	

_,	3,333.33
100.00
150.00
5.85	3,333.33
100.00
150.00
5.85	

Total	$3,589.18	
Payments/Credits	$0.00	
Balance Due	$3,589.18	

Section 3

Memorandum
To: Board of Supervisors From: District Management Date: August 14, 2024
RE:	HB7013 – Special Districts Performance Measures and Standards

To enhance accountability and transparency, new regulations were established for all
special districts, by the Florida Legislature, during their 2024 legislative session. Starting on October 1, 2024, or by the end of the first full fiscal year after its creation (whichever comes later), each special district must establish goals and objectives for each program and activity, as well as develop performance measures and standards to assess the achievement of these goals and objectives. Additionally, by December 1 each year (initial report due on December 1, 2025), each special district is required to publish an annual
report on its website, detailing the goals and objectives achieved, the performance measures and standards used, and any goals or objectives that were not achieved.
District Management has identified the following key categories to focus on for Fiscal Year 2025 and develop statutorily compliant goals for each:
Community Communication and Engagement
Infrastructure and Facilities Maintenance
Financial Transparency and Accountability
Additionally, special districts must provide an annual reporting form to share with the public that reflects whether the goals & objectives were met for the year. District
Management has streamlined these requirements into a single document that meets both the statutory requirements for goal/objective setting and annual reporting.
The proposed goals/objectives and the annual reporting form are attached as exhibit A to this memo. District Management recommends that the Board of Supervisors adopt these goals and objectives to maintain compliance with HB7013 and further enhance their commitment to the accountability and transparency of the District.

Exhibit A:
Goals, Objectives and Annual Reporting Form

Tranquility Community Development District Performance Measures/Standards &
Annual Reporting Form
October 1, 2024 – September 30, 2025

 Community Communication and Engagement
Goal 1.1: Public Meetings Compliance
Objective: Hold at least three regular Board of Supervisor meetings per year to conduct CDD related business and discuss community needs.
Measurement: Number of public board meetings held annually as evidenced by meeting minutes and legal advertisements.
Standard: A minimum of three board meetings were held during the Fiscal Year.
Achieved: Yes ☐ No ☐

Goal 1.2: Notice of Meetings Compliance
Objective: Provide public notice of meetings in accordance with Florida Statutes, using at least two communication methods.
Measurement: Timeliness and method of meeting notices as evidenced by posting to CDD website, publishing in local newspaper and via electronic communication.
Standard: 100% of meetings were advertised per Florida statute on at least two mediums (i.e., newspaper, CDD website, electronic communications).
Achieved: Yes ☐ No ☐

Goal 1.3: Access to Records Compliance
Objective: Ensure that meeting minutes and other public records are readily available and easily accessible to the public by completing monthly CDD website checks.
Measurement: Monthly website reviews will be completed to ensure meeting minutes and other public records are up to date as evidenced by District Management’s records.
Standard: 100% of monthly website checks were completed by District Management.
Achieved: Yes ☐ No ☐

 Infrastructure and Facilities Maintenance
Goal 2.1: District Infrastructure and Facilities Inspections
Objective: District Engineer will conduct an annual inspection of the District’s infrastructure and related systems.
Measurement: A minimum of one inspection completed per year as evidenced by district engineer’s report related to district’s infrastructure and related systems.
Standard: Minimum of one inspection was completed in the Fiscal Year by the district’s engineer.
Achieved: Yes ☐ No ☐
 Financial Transparency and Accountability
Goal 3.1: Annual Budget Preparation
Objective: Prepare and approve the annual proposed budget by June 15 and final budget was adopted by September 30 each year.
Measurement: Proposed budget was approved by the Board before June 15 and final budget was adopted by September 30 as evidenced by meeting minutes and budget documents listed on CDD website and/or within district records.
Standard: 100% of budget approval & adoption were completed by the statutory deadlines and posted to the CDD website.
Achieved: Yes ☐ No ☐
Goal 3.2: Financial Reports
Objective: Publish to the CDD website the most recent versions of the following documents: Annual audit, current fiscal year budget with any amendments, and most recent financials within the latest agenda package.
Measurement: Annual audit, previous years’ budgets, and financials are accessible to the public as evidenced by corresponding documents on the CDD’s website.
Standard: CDD website contains 100% of the following information: Most recent annual audit, most recent adopted/amended fiscal year budget, and most recent agenda package with updated financials.
Achieved: Yes ☐ No ☐
Goal 3.3: Annual Financial Audit
Objective: Conduct an annual independent financial audit per statutory
requirements and publish the results to the CDD website for public inspection, and transmit to the State of Florida.
Measurement: Timeliness of audit completion and publication as evidenced by meeting minutes showing board approval and annual audit is available on the CDD’s website and transmitted to the State of Florida.
Standard: Audit was completed by an independent auditing firm per statutory requirements and results were posted to the CDD website and transmitted to the State of Florida.
Achieved: Yes ☐ No ☐

Chair/Vice Chair:		Date:	 Print Name:	 
Tranquility Community Development District

District Manager:		Date:	 Print Name:	 
Tranquility Community Development District

Section 4

BOARD OF SUPERVISORS MEETING DATES AND LOCATION TRANQUILITY COMMUNITY DEVELOPMENT DISTRICT FISCAL YEAR 2025

The Board of Supervisors of the Tranquility Community Development District will hold their regular meetings for Fiscal Year 2025 on the second Wednesday of each month at 2:00 p.m. at 5445 S. Washington Ave., Titusville, FL 32780, unless otherwise indicated, as follows:

October 19, 2024
November 13, 2024
December 11, 2024
January 8, 2025
February 12, 2025
March 12, 2025
April 9, 2025
May 14, 2025
June 11, 2025
July 9, 2025
August 13, 2025
September 10, 2025

The meetings are open to the public and will be conducted in accordance with the provision of Florida Law for Community Development Districts. The meetings may be continued to a date, time, and place to be specified on the record at the meeting. A copy of the agenda for these meetings may be obtained from the District Manager, Governmental Management Services – Central Florida, LLC, 219 E. Livingston Street, Orlando, FL 32801 or by calling
(407) 841-5524.

There may be occasions when one or more Supervisors or staff will participate by speaker telephone. Pursuant to provisions of the Americans with Disabilities Act, any person requiring special accommodations at this meeting because of a disability or physical impairment should contact the District Office at (407) 841-5524 at least 48 hours prior to the meeting. If you are hearing or speech impaired, please contact the Florida Relay Service by dialing 7-1-1, or 1-800-955-8771 (TTY) / 1-800-955-8770 (Voice), for aid in contacting the District Office.

A person who decides to appeal any decision made at the meeting with respect to any matter considered at the meeting is advised that person will need a record of the proceedings and that accordingly, the person may need to ensure that a verbatim record of the proceedings is made, including the testimony and evidence upon which such appeal is to be based.

District Manager
Governmental Management Services – Central Florida, LLC