Blackburn Creek Community Development District

Financial Statements

September 30, 2021

Table of Contents

REPORT
Independent Auditors’ Report ........................................................................................	1
FINANCIAL STATEMENTS
Management’s Discussion And Analysis (required supplemental information) ............	3
Basic Financial Statements Government‐Wide Financial Statements
Statement of Net Position .......................................................................................	9
Statement of Activities .............................................................................................	10
Fund Financial Statements
Balance Sheet – Governmental Funds......................................................................	11
Reconciliation of the Balance Sheet of Governmental Funds to the Statement
of Net Position ..........................................................................................................	12
Statement of Revenue, Expenditures and Changes in Fund Balances –
Governmental Funds ...............................................................................................	13
Reconciliation of the Statement of Revenue, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of Activities ...................	14
Notes to Financial Statements ........................................................................................	15
Required Supplemental Information (other than MD&A)
Budget to Actual Comparison Schedule ‐ General Fund .............................................	26
Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance With Government Auditing Standards..................................	27
Management Letter ........................................................................................................	29
Independent Accountants’ Report on Compliance with Section 218.415, Florida
Statutes ...........................................................................................................................	32

INDEPENDENT AUDITORS’ REPORT

To the Board of Supervisors
Blackburn Creek Community Development District Sarasota County, Florida

Report on the Financial Statements

We have audited the accompanying financial statements of the governmental activities and each major fund of Blackburn Creek Community Development District (hereinafter referred to as “District”), as of and for the year ended September 30, 2021, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Opinions

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, 2021, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Other Matters

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, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated June 29, 2022, on our consideration of the District's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and 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.

CARR, RIGGS & INGRAM, LLC

Miramar Beach, Florida June 29, 2022

Management’s Discussion And Analysis

Our discussion and analysis of the Blackburn Creek Community Development District's financial performance provides an overview of the District’s financial activities for the fiscal year ended September 30, 2021. Please read it in conjunction with the District’s financial statements, which begin on page 9.

FINANCIAL HIGHLIGHTS

At September 30, 2021, the liabilities of the District exceeded its assets by approximately
$2.2 million (deficit net position).

During the fiscal year ended September 30, 2021, the District conveyed capital asset infrastructure totaling approximately $1.7 million to the County, incurred approximately
$1.4 million of interest expenditures and repaid $642,000 of outstanding long‐term bond principal.

USING THE ANNUAL REPORT

This annual report consists of a series of financial statements. The Statement of Net Position and the Statement of Activities on pages 9 – 10 provide information about the activities of the District as a whole and present a longer‐term view of the District’s finances. Fund financial statements start on page 11. For governmental activities, these statements tell how these services were financed in the short‐term as well as what remains for future spending. Fund financial statements also report the District’s operations in more detail than the government‐wide statements by providing information about the District’s most significant funds.

Reporting the District as a Whole

Our analysis of the District as a whole begins on page 4. One of the most important questions asked about the District’s finances is, “Is the District as a whole better off or worse off as a result of the year’s activities?” The Statement of Net Position and the Statement of Activities report information about the District as a whole and about its activities in a way that helps answer this question. These statements include all assets and liabilities using the accrual basis of accounting, which is similar to the accounting used by most private‐sector companies. All of the current year’s revenues and expenses are taken into account regardless of when cash is received or paid.

These two statements report the District’s net position and related changes during the current year. You can think of the District’s net position – the difference between assets and liabilities – as one way to measure the District’s financial health, or financial position. Over time, increases or decreases in the District’s net position is one indicator of whether its financial health is improving or deteriorating. You will need to consider other nonfinancial factors; however, such as changes in the District’s assessment base and the condition of the District’s infrastructure, to assess the overall health of the District.

Reporting the District’s Most Significant Funds

Our analysis of the District’s major funds begins on page 6. The fund financial statements begin on page 11 and provide detailed information about the most significant funds – not the District as a whole. Some funds are required to be established by State law and by bond covenants. All of the District’s funds are governmental fund‐types.

Governmental funds – All of the District’s basic services are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year‐ end that are available for spending. The governmental fund statements provide a detailed short‐term view of the District’s general government operations and the basic services it provides. Governmental fund information helps you determine whether there are more or fewer financial resources that can be spent in the near future to finance the District’s programs. We describe the relationship (or differences) between governmental activities and governmental funds in a reconciliation with the fund financial statements.

THE DISTRICT AS A WHOLE

The following table reflects the condensed Statement of Net Position and is compared to the prior year.

September 30,	2021	2020	Change	
Assets
Current and other assets	
$	2,964,136	
$	2,930,243	
$	33,893	
Capital assets, net	20,778,831	23,053,793	(2,274,962)	

Total assets	
$	
23,742,967	
$	
25,984,036	
$	
(2,241,069)	
Liabilities
Current liabilities	
$	987,767	
$	1,002,998	
$	(15,231)	
Other liabilities	24,970,030	25,635,030	(665,000)	
Total liabilities	25,957,797	26,638,028	(680,231)	

Net position
Net investment in capital assets	10,581,247	10,687,288	(106,041)	
Restricted for:				
Debt service	937,421	529,654	407,767	
Capital projects	183,485	407,767	(224,282)	
Unrestricted	(13,916,983)	(12,278,701)	(1,638,282)	
Total net position (deficit)	(2,214,830)	(653,992)	(1,560,838)	

Total liabilities and net position	
$	23,742,967	
$  25,984,036	
$	(2,241,069)	

For more detailed information, see the accompanying Statement of Net Position.

During the fiscal year ended September 30, 2021, total assets and liabilities decreased from the prior year by approximately $2.2 million and $680,000, respectively. The decrease in assets is due to capital asset conveyances to the County as well as current year depreciation expense. The decrease in liabilities is largely the result of scheduled principal payments on the Series 2013, 2015, 2018, and 2019 Bonds.

The following schedule compares the Statement of Activities for the current and previous fiscal year.

For the year ended September 30,	2021	2020	Change	
Revenue:
Program revenue: Charges for services	

$	2,253,781	

$	2,699,451	

$	(445,670)	
Capital grants and contributions	‐	15,023	(15,023)	
General revenue:
Interest and other revenue	
152	
5,338	
(5,186)	

Total revenue	
2,253,933	
2,719,812	
(465,879)	

Expenses:
General government	

113,108	

102,401	

10,707	
Maintenance and infrastructure	631,276	210,751	420,525	
Interest	1,396,593	1,439,001	(42,408)	
Conveyance expense	1,673,794	3,215,155	(1,541,361)	

Total expenses	
3,814,771	
4,967,308	
(1,152,537)	

Change in net position	
(1,560,838)	
(2,247,496)	
686,658	
Net position (deficit), beginning of year	(653,992)	1,593,504	(2,247,496)	

Net position (deficit), end of year	
$	(2,214,830)	
$	(653,992)	
$	(1,560,838)	

For more detailed information, see the accompanying Statement of Activities.

Revenue and expenses decreased from the prior year by approximately $466,000 and $1.2 million, respectively. Revenue decreased primarily due to a decrease in assessment rates as well as the District receiving fewer prepayments of debt service assessments during the current year. Expenses decreased primarily due to increased conveyances made in the prior year. The overall result was a
$1,560,838 decrease in net position for the fiscal year 2021.

THE DISTRICT’S FUNDS

As the District completed the year, its governmental funds (as presented in the balance sheet on page 11) reported a combined fund balance of approximately $3 million, which is an increase from prior year's balance that totaled approximately $2.9 million. Significant transactions are discussed below.

During the fiscal year ended September 30, 2021, the District incurred approximately $1.4 million of interest expenditures and repaid $642,000 of outstanding long‐term bond principal.

The overall increase in fund balance for the year ended September 30, 2021 totaled approximately
$58,000.

CAPITAL ASSET AND DEBT ADMINISTRATION

Capital Assets

At September 30, 2021, the District had approximately $20.8 million invested in capital assets (net of accumulated depreciation). This amount represents a net decrease of approximately $2.3 million from the fiscal year 2020 total.

A listing of capital assets by major category for the current and prior year follows:

September 30,	2021	2020	Change	

Capital assets not being depreciated	
$	‐	$  17,630,646	
$ (17,630,646)	
Capital assets being depreciated	22,347,466	6,360,506	15,986,960	

Total, prior to depreciation	
22,347,466	23,991,152	
(1,643,686)	
Accumulated depreciation	1,568,635	937,359	631,276	

Net capital assets	
$	20,778,831	$  23,053,793	
$	(2,274,962)	

More information about the District's statements.	
capital assets is presented in Note 4	
to the financial	

Debt

At September 30, 2021, the District had approximately $25.4 million of long‐term debt outstanding. This amount represents a net decrease of approximately $642,000 from the fiscal year 2020 total. A listing of debt amounts outstanding for the current and prior year is as follows:

September 30,	2021	2020	Change	

Series 2013A	$	4,225,000	$	4,345,000	
$	(120,000)	
Series 2015A‐1	2,725,000	2,775,000	(50,000)	
Series 2015A‐2	1,055,000	1,095,000	(40,000)	
Series 2018A‐1	9,231,000	9,424,000	(193,000)	
Series 2018A‐2	1,708,000	1,877,000	(169,000)	
Series 2019A‐1	3,195,000	3,245,000	(50,000)	
Series 2019A‐2	1,405,000	1,425,000	(20,000)	
Due to Developer	1,833,030	1,833,030	‐	

$	25,377,030	$  26,019,030	
$	(642,000)	

More information about the District’s long‐term debt is presented in Note 5 statements.	
to the financial	

GOVERNMENTAL FUNDS BUDGETARY HIGHLIGHTS

An Operating budget was established by the governing board for the District pursuant to the requirements of Florida Statutes. The budget to actual comparison for the general fund, including the original budget and final adopted budget, is shown at page 26.

The District experienced a favorable variance expenditures as compared to the budget in the amount of $66,647, while revenues substantially agreed to budget. The variance in expenditures was primarily due to fewer engineering and legal expenditures incurred during the year than anticipated.

FUTURE FINANCIAL FACTORS

Blackburn Creek Community Development District is an independent special district that operates under the provisions of Chapter 190, Florida Statutes. The District operates under an elected Board of Supervisors, which establishes policy and sets assessment rates. Assessment rates for fiscal year 2022 were established to provide for the operations of the District as well as the necessary debt service requirements.

CONTACTING THE DISTRICT’S FINANCIAL MANAGEMENT

This financial report is designed to provide a general overview of the District’s finances. If you have questions about this report or need additional financial information, contact the Blackburn Creek Community Development District's management company at 3501 Quadrangle Blvd., Suite 270, Orlando, FL, 32817.

Basic Financial Statements

September 30,	2021	
	Governmental	
	Activities	
Assets
Cash and cash equivalents	
$	2,464,662	
Investments	494,239	
Interest receivable	14	
Prepaid expenses	5,221	
Capital Assets:
Depreciable, net	
20,778,831	

Total assets	
23,742,967	

Liabilities
Accounts payable	

5,252	
Accrued interest payable	575,515	
Non‐current liabilities:
Due within one year	
407,000	
Due in more than one year	24,970,030	

Total liabilities	
25,957,797	

Net position
Net investment in capital assets	

10,581,247	
Restricted for:
Debt service	
937,421	
Capital projects	183,485	
Unrestricted	(13,916,983)	

Total net position (deficit)	$	(2,214,830)

For the year ended September 30,		2021		

Program Revenue	Net (Expense)
Revenue and Changes in Net Position	

Functions/Programs	
Expenses	Charges for Services	Governmental Activities	
Primary government:
Governmental activities: General government	

$	(113,108)	

$	148,617	

$	35,509	
Unallocated depreciation	(631,276)	‐	(631,276)	
Interest	(1,396,593)	2,105,164	708,571	
Asset conveyance	(1,673,794)	‐	(1,673,794)	

Total governmental activities	
$	(3,814,771)	
$	2,253,781	
(1,560,990)	

General revenue

Interest and other revenue	152	

Change in net position	
(1,560,838)	
Net position (deficit) ‐ beginning of year	(653,992)	

Net position (deficit) ‐ end of year	
$	(2,214,830)	

September 30,		2021		
			Total	
		Capital	Governmental	
	General	Debt Service	Projects	Funds	
Assets
Cash and cash equivalents	
$ 144,009	
$ 1,633,127	$	687,526	
$	2,464,662	
Investments	‐	494,239	‐	494,239	
Interest receivable	‐	10	4	14	
Prepaid expenditures	5,221	‐	‐	5,221	

Total assets	
$ 149,230	
$ 2,127,376	$	687,530	
$	2,964,136	

Liabilities and Fund Balances				
Liabilities
Accounts payable	
$	5,252	
$	‐	$	‐	
$	5,252	

Total liabilities	
5,252	
‐	‐	
5,252	

Fund balances
Nonspendable	5,221		‐		‐		5,221	
Restricted for debt service	‐		2,127,376		‐		2,127,376	
Restricted for capital projects	‐		‐		687,530		687,530	
Unassigned	138,757		‐		‐		138,757	
Total fund balances	143,978		2,127,376		687,530		2,958,884	

Total liabilities and fund balances	
$ 149,230	
$	
2,127,376	
$	
687,530	
$	
2,964,136	

	Net Position	
September 30,	2021	

Total fund balances, governmental funds	
$	2,958,884	
Capital assets used in governmental activities are not financial resources		
and therefore are not reported in the fund financial statements.	20,778,831	
Liabilities not due and payable from current resources, including accrued interest, are not reported in the fund level statements.	
(25,952,545)	

Total net position (deficit) ‐ governmental activities	
$	(2,214,830)	

Governmental Funds

For the year ended September 30,	2021
	General	

Debt Service	
Capital Projects	Total
Governmental
Funds	
Revenue
Assessment revenue	
$ 148,617	
$ 1,793,270	
$	‐	
$	1,941,887	
Prepayment revenue	‐	311,894	‐	311,894	
Interest and other revenue	3	108	41	152	
Total revenue	148,620	2,105,272	41	2,253,933	

Expenditures
Current:
General government
Debt service:	113,108	‐	‐	113,108	
Principal	‐	642,000	‐	642,000	
Interest	‐	1,410,901	‐	1,410,901	
Capital outlay	‐	‐	30,108	30,108	
Total expenditures	113,108	2,052,901	30,108	2,196,117	

Excess (deficit) of revenue over					
expenditures	35,512	52,371	(30,067)	57,816	

Other financing sources (uses)
Transfers in	

‐	

92,102	

‐	

92,102	
Transfers out	‐	‐	(92,102)	(92,102)	
Total other financing sources (uses)	‐	92,102	(92,102)	‐	

Net change in fund balances	
35,512	
144,473	
(122,169)	
57,816	
Fund balances, beginning of year	108,466	1,982,903	809,699	2,901,068	

Fund balances, end of year	
$ 143,978	
$ 2,127,376	
$	687,530	
$	2,958,884	

Balances of Governmental Funds to the Statement of Activities

For the year ended September 30,	2021

Net change in fund balances ‐ governmental funds	$	57,816	
Capital outlay, reported as expenditures in the governmental funds, is		
shown as capital assets on the Statement of Net Position, whereas the		
conveyance of fixed assets is recorded as an expense on the Statement of		
Activities, but not in the fund financial statements.	30,108	
Depreciation on capital assets is not recognized in the fund financial		
statements but is reported as an expense in the Statement of Activities.	(631,276)	
Repayment of long‐term liabilities are reported as expenditures in the		
governmental fund statement but such repayments reduce liabilities in		
the Statement of Net Position and are eliminated in the Statement of Activities.	
642,000	
The change in accrued interest between the current and prior year is		
recorded on the Statement of Activities but not on the fund level statements.	
14,308	
The conveyance of capital assets has no impact on the fund level financial		
statements but is treated as an expense in the government‐wide		
Statement of Activites.	(1,673,794)	

Change in net position of governmental activities	
$	(1,560,838)	

NOTE 1: NATURE OF ORGANIZATION

The Blackburn Creek Community Development District (the “District”) was established on November 9, 2010 pursuant to the Uniform Community Development District Act of 1980, otherwise known as Chapter 190, Florida Statutes, by Sarasota County Ordinance 2010‐070. 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 expanded by approximately 190 acres in December 2014 by Ordinance No. 2014‐094, and by approximately 119 acres in March 2018 by Ordinance No. 2018‐004.

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 a Board of Supervisors (“Board”), which is comprised of five members. The Supervisors are elected on an at large basis by the owners of the property within the District. The Board of Supervisors of the District exercises all powers granted to the District pursuant to Chapter 190, Florida Statutes. At September 30, 2021, certain Board members were affiliated with Resource Conservation of Sarasota, LLC (“the Developer”).

The Board has the final responsibility for:
Assessing and levying 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.

In evaluating how to define the government, for financial reporting purposes, management has considered all potential component units. The decision to include or exclude a potential component unit in the reporting entity was made by applying the criteria set forth by Generally Accepted Accounting Principles (GAAP) as defined by the Governmental Accounting Standards Board (GASB). Based on the foregoing criteria, no potential component units were found.

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accounting policies of the District conform to GAAP as applicable to governments in accordance with those promulgated by GASB. The following is a summary of the more significant 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 the non‐fiduciary activities of the primary government. Governmental activities, which normally are supported by assessments, are reported separately from business‐type activities, which rely to a significant extent on fees and charges for support. The business‐type activities are reported separately in government‐wide financial statements; however, at September 30, 2021, the District did not have any significant business‐type activities. Therefore, no business‐type activities are reported. Assessments and other items not properly included as program revenues (i.e., charges to customers or applicants who purchase, use, or directly benefit from goods or services) are reported as general revenues.

Separate financial statements are provided for governmental funds. Major individual governmental funds are reported as separate columns in the fund financial statements.

Measurement Focus, Basis of Accounting and Basis of 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 the related cash flows. Assessments are recognized as revenues in the year for which they are levied. Grants and other 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 District considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures are recorded only when payment is due.

Assessments, including debt service assessments along with operation and maintenance assessments, are non‐ad valorem special assessments imposed on all lands located within the District and benefited by the District’s activities. Assessments are levied and certified for collection by the District prior to the start of the fiscal year which begins October 1st and ends on September 30th. Operation and maintenance special assessments are imposed upon all benefited lands located in the District. Debt service special assessments are imposed upon certain lots and lands as described in each resolution imposing the special assessment for each series of bonds issued by the District. Certain debt service assessments are collected upon the closing of those lots subject to debt and are used to prepay a portion of the bonds outstanding.

Assessments and interest associated with the current fiscal period are all considered to be susceptible to accrual and have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the District.

The District reports the following major governmental funds:

General Fund – The General Fund is the primary operating fund of the District. It is used to account for all financial resources except those required to be accounted for in other funds.

Debt Service Fund – The Debt Service Fund is used to account for the accumulation of resources for the annual payment of principal and interest on long‐term debt.

Capital Project Fund – This fund accounts for the financial resources to be used for the acquisition or construction of major infrastructure within the District.

For the year ended September 30, 2021, the District does not report any proprietary funds.

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 District’s policy to use restricted resources first, then unrestricted resources as they are needed. When committed, assigned, or unassigned resources are available for use in the governmental fund financial statements, it is the government’s policy to use committed resources first, followed by assigned resources, then unassigned resources as needed.

Cash, Deposits and Investments

The District maintains deposits with "Qualified Public Depositories" as defined in Chapter 280, Florida Statutes. All Qualified Public Depositories must place with the Treasurer of the State of Florida securities in accordance with collateral requirements determined by the State’s Chief Financial Officer. In the event of default by a Qualified Public Depository, the State Treasurer will pay public depositors all losses. Losses in excess of insurance and collateral will be paid through assessments between all Qualified Public Depositories.

Under this method, all the District's deposits are fully insured or collateralized at the highest level of security as defined by GASB, Statement Number 40, Deposits and Investment Disclosures (An Amendment of GASB, Statement Number 3).

The District is authorized to invest in financial instruments as established by Section 218.415, Florida Statutes. The authorized investments include among others direct obligations of the United States Treasury; the Local Government Surplus Trust Funds as created by Section 218.405, Florida Statutes; SEC registered money market funds with the highest credit quality rating from a nationally recognized rating agency; and interest‐bearing time deposits or savings accounts in authorized financial institutions.

Capital Assets

Capital assets, which include primarily infrastructure assets (e.g., roads, sidewalks, water management systems and similar items), are reported in the governmental activities column in the government‐wide financial statements. Capital assets are defined by the District as assets with an initial/individual cost of more than $5,000 and an estimated useful life in excess of two years. Such assets are recorded at historical cost and estimated historical cost if purchased or constructed. Donated assets are recorded at estimated fair market value at the date of donation.

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed.

Property, plant and equipment of the primary government are depreciated using the straight‐line method over the estimated useful lives. Estimated useful lives for financial reporting purposes are as follows: Infrastructure: 25 – 75 years.

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

Long‐Term Obligations

In the government‐wide financial statements, long‐term debt and other long‐term obligations are reported as liabilities in the Statement of Net Position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight‐line or effective interest method. Bonds payable are reported net of these premiums or discounts. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as current period expenses.

In the fund financial statements, governmental fund types recognize bond premiums and discounts during the current period. The face amount of the 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 Net Position and Balance Sheet – Governmental Funds 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. The District does not have any of this type of item at September 30, 2021.

In addition to liabilities, the Statement of Net Position and Balance Sheet – Governmental Funds 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. The District does not have any of this type of item at September 30, 2021.

Fund Equity

Net position in the government‐wide financial statements represents the difference between assets and deferred outflows of resources and liabilities and deferred inflows of resources and is categorized as net investment in capital assets, restricted or unrestricted. Net investment in capital assets represents assets related to infrastructure and property, plant and equipment, net of any related debt. Restricted net position represents the assets restricted by the District’s bond covenants.

Governmental fund equity is classified as fund balance. Fund balance is further classified as nonspendable, restricted, committed, assigned, or unassigned. Nonspendable fund balance cannot be spent because of its form. Restricted fund balance has limitations imposed by creditors, grantors, or contributors or by enabling legislation or constitutional provisions. Committed fund balance is a limitation imposed by the District board through approval of resolutions. Assigned fund balance is a limitation imposed by a designee of the District board. Unassigned fund balance in the General Fund is the net resources in excess of what can be properly classified in one of the above four categories. Negative unassigned fund balance in other governmental funds represents excess expenditures incurred over the amounts restricted, committed, or assigned to those purposes.

Prepaid Expenses

Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid expenses on the Statement of Net Position. These items will be expensed over the applicable usage period.

Budgets

The District is required to establish a budgetary system and an approved annual budget. Annual budgets are legally adopted on a basis consistent with GAAP for the General Fund. Any revision to the budget must be approved by the District Board. The budgets are compared to actual expenditures. In instances where budget appropriations and estimated revenues have been revised during the year, budget data presented in the financial statements represent final authorization amounts.

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.
A public hearing is conducted to obtain comments.
Prior to October 1, the budget is legally adopted by the District Board.
All budget changes must be approved by the District Board.
Budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America.

Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

Subsequent events

Management has evaluated subsequent events through the date that the financial statements were available to be issued, June 29, 2022, and determined there were no events that occurred that required disclosure No subsequent events occurring after this date have been evaluated for inclusion in these financial statements.

NOTE 3: INVESTMENTS

Custodial credit risk – For an investment, custodial credit risk is the risk that the District will not be able to recover the value of the investments or collateral securities that are in the possession of an outside party. The District has no formal policy for custodial risk. At September 30, 2021, the money market funds are not exposed to custodial credit risk because their existence is not evidenced by securities that exist in physical or book entry form.

Concentration risk – The District’s investment policy requires diversification, but does not specify limits on types of investments.

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

The District’s investments consist of money market funds and similar instruments in which shares are owned in the fund rather than the underlying investments. In accordance with GASB 72, Fair Value Measurement and Application, these amounts are reported at amortized cost.

The following is a summary of the District’s investments:
Weighted Avg
September 30,	2021	Credit Risk	Maturities

First American Government Obligations

$	494,239

S&P AAAm	14 days

NOTE 4: CAPITAL ASSETS

The following is a summary of changes in the capital assets for the year ended September 30, 2021:

Governmental Activities:
Capital assets not being depreciated

Beginning
Balance	Additions

Conveyances/ Transfers

Ending Balance

Infrastructure under construction Total capital assets, not being

$ 17,630,646	$

30,108

$ (17,660,754) $	‐

depreciated	17,630,646	30,108	(17,660,754)	‐

Capital assets being depreciated
Infrastructure	6,360,506	‐	15,986,960	22,347,466 Total capital assets, being
depreciated	6,360,506	‐	15,986,960	22,347,466

Less accumulated depreciation
Infrastructure	937,359		631,276	‐	1,568,635	
Total accumulated depreciation	937,359		631,276	‐	1,568,635	

Total capital assets, being depreciated, net	

5,423,147		

(631,276)	

15,986,960	

20,778,831	

Governmental activities capital assets, net	

$ 23,053,793	

$	

(601,168)	

$  (1,673,794)	

$ 20,778,831	

Blackburn Creek Community Development District
Notes to Financial Statements

NOTE 4: CAPITAL ASSETS (Continued)

Depreciation expense of $631,276 was reported as unallocated depreciation on the accompanying Statement of Activities.

The total projected cost of the infrastructure has been estimated at approximately $43 million, of which approximately $31 million is expected to be financed with the proceeds from the issuance of Bonds with the remainder to be funded by additional bond issuances or the Developer. The infrastructure will include potable water and wastewater systems, storm water drainage system improvements, offsite road improvements and utility extensions.

Upon completion, certain assets will be conveyed to other entities for ownership and/or maintenance. During the year ended September 30, 2021, the District conveyed completed infrastructure totaling approximately $1.7 million.

NOTE 5: LONG‐TERM LIABILITIES

On March 28, 2013 the District issued $5,455,000 of Special Assessment Bonds, Series 2013A due on May 1, 2043 with a fixed interest rate of 6.00%. The Bonds were issued to finance the acquisition and construction of certain improvements for the benefit of the District. Interest is to be paid semiannually on each May 1 and November 1. Principal on the Bonds is to be paid serially commencing May 1, 2014 through May 1, 2043.

On October 14, 2015, the District issued $8,765,000 of Special Assessment Bonds, Series 2015 consisting of $1,575,000 Series 2015A‐1 Term Bonds, $1,945,000 Series 2015A‐1 Term Bonds and
$5,245,000 of Series 2015A‐2 with interest rates of 6.25%, 6.50% and 6.25%, respectively. The Bonds were issued to finance the acquisition and construction of certain improvements for the benefit of the District. Interest is to be paid semiannually on each May 1 and November 1. Principal on the $1,575,000 Term Bonds is to be paid serially commencing May 1, 2016 through May 1, 2035. Principal on the $1,945,000 Term Bonds is to be paid serially commencing May 1, 2016 through May 1, 2045. Principal on the $5,245,000 Term Bonds is to be paid serially commencing May 1, 2016 through May 1, 2045.

On February 22, 2018, the District issued $12,595,000 of Capital Improvement Revenue Bonds, Series 2018 consisting of $1,660,000 Series 2018A‐1 Term Bonds, $2,890,000 Series 2018A‐1 Term Bonds, $5,165,000 Series 2018A‐1 Term Bonds and $2,880,000 of Series 2018A‐2 with interest rates of 5.25%, 5.75%, 5.90% and 5.90%, respectively. The Bonds were issued to finance the acquisition and construction of certain improvements for the benefit of the District. Interest is to be paid semiannually on each May 1 and November 1. Principal on the $1,660,000 Term Bonds is to be paid serially commencing May 1, 2019 through May 1, 2028. Principal on the $2,890,000 Term Bonds is to be paid serially commencing May 1, 2029 through May 1, 2038. Principal on the $5,165,000 Term Bonds is to be paid serially commencing May 1, 2021 through May 1, 2048.  Principal on the
$2,880,000 Term Bonds is to be paid serially commencing May 1, 2021 through May 1, 2048.

In February 2019, the District issued $4,740,000 of Capital Improvement Revenue Refunding Bonds, Series 2019 consisting of $3,295,000 Series 2019 A‐1 Bonds and $1,445,000 of Series 2019 A‐2 with interest rates from 4.75% to 5.60% and 5.60%, respectively. The Series 2019 bonds were issued to finance the 2019 Capital Improvement Project. Interest is paid semiannually on each May 1 and November 1. Principal payments on the Series 2019 A‐1 and A‐2 Bonds are made serially commencing on May 1, 2020 through May 1, 2049.

The Bond Indentures require that the District maintain adequate funds in reserve accounts to meet the debt service reserve requirements as defined in the Indentures. The requirements have been met for the fiscal year ended September 30, 2021.

The Bond Indentures have certain restrictions and requirements relating principally to the use of proceeds to pay for the infrastructure improvements and the procedure to be followed by the District on assessments to property owners. The District agreed to levy special assessments in annual amounts adequate to provide payment of debt service and to meet the reserve requirements. The District is in compliance with the requirements of the Bond Indentures.

Long‐term liability activity for the year ended September 30, 2021, was as follows:

	Beginning
Balance	
Additions	
Reductions	Ending
Balance	Due Within
One Year	
Governmental Activities						
Bonds Payable:						
Series 2013A	$  4,345,000	$	‐	$	(120,000)	$  4,225,000	$	95,000	
Series 2015A‐1	2,775,000	‐	(50,000)	2,725,000	50,000	
Series 2015A‐2	1,095,000	‐	(40,000)	1,055,000	15,000	
Series 2018A‐1	9,424,000	‐	(193,000)	9,231,000	151,000	
Series 2018A‐2	1,877,000	‐	(169,000)	1,708,000	26,000	
Series 2019A‐1	3,245,000	‐	(50,000)	3,195,000	50,000	
Series 2019A‐2	1,425,000	‐	(20,000)	1,405,000	20,000	
Due to Developer	1,833,030	‐	‐	1,833,030	‐	

$ 26,019,030	
$	‐	
$	(642,000)	
$ 25,377,030	
$ 407,000	

At September 30, 2021, the scheduled debt service requirements on bonds payable were as follows:

For the year ending September 30,	
Principal	
Interest	Total Debt
Service	

2022	
$	407,000	
$	1,379,513	
$	1,786,513	
2023	442,000	1,357,538	1,799,538	
2024	462,000	1,333,096	1,795,096	
2025	488,000	1,307,172	1,795,172	
2026	520,000	1,280,087	1,800,087	
2027 ‐ 2031	3,091,000	5,926,233	9,017,233	
2032 ‐ 2036	4,137,000	4,915,819	9,052,819	
2037 ‐ 2041	5,548,000	3,545,027	9,093,027	
2042 ‐ 2046	6,039,000	1,752,523	7,791,523	
2047 ‐ 2049	2,410,000	260,978	2,670,978	
	
$	23,544,000	
$	23,057,986	
$	46,601,986	

NOTE 6: 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 maintains commercial insurance coverage to mitigate the risk of loss. Coverage may not extend to all situations. Management believes such coverage is sufficient to preclude any significant uninsured losses to the District. There have been no claims since inception of the District.

NOTE 7: MANAGEMENT COMPANY

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 (Board appointed non‐voting positions) of the District. Under the agreement, the District compensates the management company for management, accounting, financial reporting, and other administrative costs.

NOTE 8: RELATED PARTY TRANSACTIONS

A significant portion of the District’s activity is dependent upon the continued involvement of the Developer. The loss of significant involvement could have a material adverse effect on the District’s operations.

During the year ended September 30, 2021, the Developer was assessed $47,126 and $747,121 for operations and maintenance and debt service costs, respectively. The due to Developer amount of
$1,833,030 is related to long‐term developer advances to fund the construction of infrastructure. The activity for the year is detailed in Note 5.

Required Supplemental Information (Other Than MD&A)

For the year ended September 30,		2021		
	Original and	Actual	Variance with	
	Final Budget	Amounts	Final Budget	
Revenue
Assessment revenue	
$	144,755	
$	148,617	
$	3,862	
Interest and other revenue	‐	3	3	
Total revenue	144,755	148,620	3,865	

Expenditures
General government	

177,880	

113,108	

64,772	
Maintenance and operations	1,875	‐	1,875	
Total expenditures	179,755	113,108	66,647	

Excess (deficit) of revenue over expenditures	
(35,000)	
35,512	
70,512	

INDEPENDENT AUDITORS’ 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
Blackburn Creek Community Development District Sarasota County, 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 Blackburn Creek Community Development District (hereinafter referred to as the “District”), as of and for the year ended September 30, 2021, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements, and have issued our report thereon dated June 29, 2022.

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) as a basis for designing 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 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 the 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.

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 grant agreements, noncompliance with which could have a direct and material effect on the financial statements. 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 District’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 District’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

CARR, RIGGS & INGRAM, LLC

Miramar Beach, Florida June 29, 2022

MANAGEMENT LETTER

To the Board of Supervisors
Blackburn Creek Community Development District Sarasota County, Florida

Report on the Financial Statements

We have audited the financial statements of the Blackburn Creek Community Development District (“District”) as of and for the fiscal year ended September 30, 2021, and have issued our report thereon dated June 29, 2022.

Auditors’ 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 Auditors' Report on Internal Control over Financial Reporting and Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards and Independent Accountants' 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 report, which are dated June 29, 2022, should be considered in conjunction with this management letter.

Prior Audit Findings

Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. There were no recommendations made in the preceding annual audit report.

Official Title and Legal Authority

Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. The information required is disclosed in the notes to the financial statements.

Financial Condition and Management

Section 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, require us to communicate whether or not the District has met one or more of the conditions described in Section 218.503(1), Florida Statutes, and to identify the specific condition(s) met. In connection with our audit, we determined that the District did not meet any of the conditions described in Section 218.503(1), Florida Statutes.

Pursuant to Sections 10.554(1)(i)5.b. and 10.556(8), Rules of the Auditor General, we applied financial condition assessment procedures for the District. It is management’s responsibility to monitor the District’s 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.

Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations.

Specific Information

As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)6, Rules of the Auditor General, the Blackburn Creek Community Development District reported:

The total number of district employees compensated in the last pay period of the district’s fiscal year as 0.

The total number of independent contractors to whom nonemployee compensation was paid in the last month of the district’s fiscal year as 0.

All compensation earned by or awarded to employees, whether paid or accrued, regardless of contingency as $0.

All compensation earned by or awarded to nonemployee independent contractors, whether paid or accrued, regardless of contingency as $0.

The District does not have any construction projects with a total cost of at least $65,000 that are scheduled to begin on or after October 1 of the fiscal year being reported.

The District did not amend its final adopted budget under Section 189.016(6), Florida Statutes.

As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)7, Rules of the Auditor General, the Blackburn Creek Community Development District reported:

The rate or rates of non‐ad valorem special assessments imposed by the District as $1,250 to $2,079 per lot.

The total amount of special assessment collected by or on behalf of the district as
$1,941,887.

The total amount of outstanding bonds issued by the district as $23,544,000.

Additional Matters

Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not have any such findings.

Purpose of this Letter

Our management letter is intended solely for the information and use of Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, the Board of Supervisors, and applicable management, and is not intended to be and should not be used by anyone other than these specified parties.

CARR, RIGGS & INGRAM, LLC

Miramar Beach, Florida June 29, 2022

INDEPENDENT ACCOUNTANTS’ REPORT

To the Board of Supervisors
Blackburn Creek Community Development District Sarasota County, Florida

We have examined Blackburn Creek Community Development District’s compliance with the requirements of Section 218.415, Florida Statutes, Local Government Investment Policies, during the year ended September 30, 2021. Management of Blackburn Creek Community Development District is responsible for the District’s compliance with the specified requirements. Our responsibility is to express an opinion on the 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 performed the examination to obtain reasonable assurance about whether the District complied, in all material respects, with the specified requirements referenced above. 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 judgement, 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 for the year ended September 30, 2021.

This report is intended solely for the information and use of management and the State of Florida Auditor General and is not intended to be and should not be used by anyone other than these specified parties.

CARR, RIGGS & INGRAM, LLC

Miramar Beach, Florida June 29, 2022