Waterstone Community Development District
May 7, 2020

Waterstone
Community Development District

5385 N. Nob Hill Road, Sunrise, Florida 33351 Phone: 954-721-8681 - Fax: 954-721-9202

April 29, 2020

Board of Supervisors
Waterstone Community Development District

Dear Board Members:

A communications media technology meeting of the Board of Supervisors of the Waterstone Community Development District will be held on May 7, 2020 at 11:00 a.m. In accordance with Office of the Governor, Executive Order 20-69 (Emergency Management - COVID-19 - Local Government Public Meetings), authorizing the use of communications media technology, such as telephonic conferencing , as provided in Section 120.54(5)(b)2, Florida Statutes, the Board of Supervisors and members of the public may attend and participate in the meeting utilizing the following call-in information: from your computer, tablet or smartphone go to: https://global.gotomeeting.comj/oin /581165213 or by dialing +1 (872) 240-3311and Access Code: 581- 165-213 and are further encouraged to submit comments or questions in advance of the meeting by email to info@gmssf.com or by telephone by calling 954-721-8681. Following is the advance agenda for the meeting:

Roll Call

Approval of the Minutes of the October 3, 2019 Meeting

Ratification of Authorization for K. Hovnanian to Install Monument Sign on COD Property

Consideration of Resolution #2020-02 Approving the Proposed Fiscal Year 2021 Budget and Setting the Public Hearing

Consideration of Resolution #2020-03 Setting a Rules Public Hearing

Acceptance of Audit for Fiscal Year Ending September 30, 2019

Discussion of Procedures for the Landowners Election - November 5, 2020

Staff Reports
Attorney

Engineer

Manager

Supervisors Requests and Audience Comments

Financial Statements
Approval of Check Run Summary

Balance sheet and Income statement

Adjournment

Meetings are open to the public and may be continued to a time, date and place certain. For more information regarding this CDD please visit the website: http://www.waterstonecd.dcom

WATERSTONE COMMUNITY DEVELOPMENT DISTRICT
5385 North Nob Hill Road Sunrise, FL 33351

April 13, 2020

St. Lucie County Building Department Plan Review
2300 Virginia Avenue Fort Pierce, FL 34982

Re: Monument Sign on the Waterstone Community Development District ("CDD")
Property

To Whom It May Concern:

This letter is provided on behalf of K. Hovnanian Aspire At Waterstone, LLC, a Florida Limited Liability Company ("KHOV"), who has purchased Lots 1 through 59, Block 3, WATERSTONE
- PHASE ONE, according to the Plat thereof, as recorded in Plat Book 52, at.Page 35, of the Public Records of St. Lucie County, Florida.

KHOV would like to install a monument sign, as illustrated in Exhibit "A" attached  hereto ("Sign"), on property that is currently owned by  the  CDD,  which  location  is  depicted  in Exhibit "B" attached hereto ("CDD Property"). Waterstone Community Development District hereby authorizes KHOV to construct the Sign on the CDD Property.

If any additional information is needed, please do not hesitate to contact the undersigned at 954-439-2689.

Thank you.

Very truly yours,
WATERSTONE COMMUNITY DEVELOPMENT DISTRICT

Matthew Markofsky Vice-Chairman

Enclosures

EXHIBIT "A"

Illustration  of Monument Sign

ASPIRE AT WATERSTONE - SUBDIVISION WALL

SAMPLE - FOUNDATION PLAN VIEW· CREATE AS FLORIDA STANDARD
3'-6"

10'-0"

MATCH ENTRY

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COLOR, TRIM llND BODY

PROJECT:	
ASPIRE AT
 	WATERSTONE	
EDITED BY
MAYA CHOCRON

DATE
11-04-19

SCALE

3/8" = 1'

LEDGE STONE BRISTOL CORNERS
n	

4'-0"

E, 1/2"

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ACRYLIC 1 /2" OFF WALL PIN MOUNTED + 3" KHOV LETTERS 1 /4" ACRYLIC PIN FLUSH MOUNTED - BRONZE

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MATCH ENTRY FEATURE FOR COMMUNITY

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EXHIBIT "B"

Location of Monument Sign on CDD Property

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RESOLUTION 2020-02
A RESOLUTION OF THE WATERSTONE COMMUNITY DEVELOPMENT DISTRICT  APPROVING  THE  DISTRICT'S PROPOSED BUDGET FOR FISCAL YEAR 2021 AND SETTING A PUBLIC HEARING THEREON PURSUANT TO FLORIDA LAW

WHEREAS, the District Manager has prepared the proposed budget for the Fiscal Year 2021; and
WHEREAS, the Board of Supervisors approves the proposed budget for purpose of submitting said budget to the local governing authorities not less than 60 days prior to the public hearing date in accordance with Chapter 190.00S(b), Florida Statutes: and
WHEREAS, the Board of Supervisors desires to set the public hearing date;

NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF SUPERVISORS OF THE WATERSTONE  COMMUNITY DEVELOPMENT DISTRICT:

The proposed budget for Fiscal Year 2021 is hereby approved for the purpose of conducting a public hearing to adopt said budget.
A public hearing on said approved budget is hereby declared and set for the following date, hour and place:

Date:	 Hour:	 Place:      	

Notice of public hearing shall be published in accordance with Florida Law. Adopted this 	of day of 	,

ChairmanNice Chairman

Secretary/Assistant Secretary

Proposed Budget
Fiscal Year 2021

Waterstone Community Development District

May 7, 2020

GMS

Govc1nn1onl'11l
?v1ZlIHi:(J($ffl.;nt S>trYkcs

Waterstone
Community Development District

TABLE OF CONTENTS

General Fund Budget Narrative

Page 1-2
Page 3-6

	Adopted
Budget		Actual
Thru		Projected
Next		Total
Projected		Proposed
Budget		
Description		FY 2020		3/31/2020		6 Months		9/30/2020		FY 2021		

Revenues												
Carry Forward Surplus		$60,239		$55,769		$0		$55,769		$45,729		
Maintenance Assessments-Direct		$352,040		$79,370		$272,681		$352,051		$352,035		
Total Revenues		$412,279		$135,139		$272,681		$407,820		$397,764		

Expenditures												
Administrative												
Supervisor Fees		$4,800		$200		$600		$800		$2,400		
Fica		$367		$15		$46		$61		$184		
Engineering Fees		$3,000		$1,628		$1,373		$3,000		$3,000		
Arbitrage		$1,200		$0		$600		$600		$600		
Dissemination Agent		$4,000		$4,000		$0		$4,000		$4,000		
Attorney Fees		$20,000		$8,535		$11,465		$20,000		$20,000		
Annual Audit		$5,800		$5,500		$0		$5,500		$5,600		
Trustee Fees		$6,000		$7,543		. $0		$7,543		$7,600		
Management Fees		$30,900		$15,450		$15,450		$30,900		$30,900		
Computer Time		$1,000		$500		$500		$1,000		$1,000		
Website Compliance		$1,000		$500		$500		$1,000		$1,000		
Telephone		$25		$4		$21		$25		$50		
Postage		$100		$79		$21		$100		$250		
Printing & Binding		$200		$57		$143		$200		$1,000		
Insurance		$5,922		$5,922		$0		$5,922		$6,415		
Legal Advertising		$1,000		$0		$1,000		$1,000		$1,000		
Other Current Charges		$600		$296		$304		$600		$600		
Office Supplies		$25		$18		$7		$25		$150		
Dues, Licenses & Subscriptions		$175		$175		$0		$175		$175		
Capital Outlay		$750		$0		$0		$0		$600		
Total Administrative		$86,864		$50,421		$32,030		$82,451		$86,524		

Field												
Field Management		$12,000		$0		$0		$0		$12,000		
Electric Streetlights		$20,000		$9,226		$9,226		$18,452		$20,000		
Electric Pumps/Well/Guardhouse		$0		$1,364		$5,136		$6,500		$6,500		
Water/Sewer		$0		$620		$620		$1,239		$1,500		
Landscape Maintenance		$100,000		$29,970		$37,530		$67,500		$78,000		
Tree Service		$30,000		$0		$30,000		$30,000		$30,000		
Lake Maintenance		$19,140		$1,180		$9,440		$10,620		$19,140		
Irrigation Maintenance		$6,000		$0		$6,000		$6,000		$6,000		
Repairs and Maintenance		$10,000		$0.		$10,000		$10,000		$10,000		
Street Maintenance		$10,000		$0		$10,000		$10,000		$10,000		
Sign Maintenance		$2,500		$0		$2,500		$2,500		$2,500		
Gate & Fence Maintenance		$2,500		$0		$2,229		$2,229		$2,500		
Preserve Maintenance		$21,975		$16,650		$16,650		$33,300		$33,300		
Contingency		$5,000		$0		$0		$0		$0		
Total Field		$239,115		$59,009		$139,331		$198,341		$231,440		

	FY 2020	
!Per Unit Lots	720	$488.94	

Description			Adopted Budget
FY 2020		Actual Thru
3/31/2020		Projected Next
6 Months	Total Projected
9/30/2020		Proposed Budget
 	FY 2021 	

Recreational Building_											
Security System			$2,600		$0		$2,600	$2,600		$2,600	
Cable & Internet			$1,200		$0		$1,200	$1,200		$1,200	
Electric			$18,000		$0		$18,000	$18,000		$18,000	
Water/Sewer			$6,000		$0		$6,000	$6,000		$4,500	
Insurance			$10,000		$0		$10,000	$10,000		$10,000	
Pool, Heated Seasonally (Solar)			$12,000		$0		$12,000	$12,000		$12,000	
Solar System Maintenance			$1,000		$0		$1,000	$1,000		$1,000	
Equipment Maintenance			$8,000		$0		$8,000	$8,000		$8,000	
Janitorial Maintenance			$12,000		$0		$12,000	$12,000		$12,000	
Sporting Courts Maintenance			$6,000		$0		$6,000	$6,000		$6,000	
Playground Maintenance			$1,500		$0		$1,500	$1,500		$1,500	
Pest Control			$2,000		$0		$2,000	$2,000		$2,000	
Licenses, Permits, Fees			$1,000		$0		$1,000	$1,000		$1,000	
Contingency			$5,000		$0		$0	$0		$0	
Total Recreational Building			$86,300		$0		$81,300	$81,300		 	$79,800	
											
Total Expenditures			$412,279		$109,430		$252,661	$362,091		 	$397,764	
											
Net change in Fund balance			$0		$25,709		$20,020	$45,729		 	$0	
											
										FY2021	
										$488.94	

REVENUES:

Maintenance Assessments- Direct
The District will levy new owners as the lots are being sold, any needed funds will be billed to the builder.

EXPENDITURES:

Administrative:

Supervisor Fees
The Florida Statutes allows each board member to receive $200 per meeting  not to exceed $4,800  in one year. The amount for the fiscal year is based upon all five supervisors attending the estimated four annual meetings.

FICA Expense
These expenses represent the Employer's share of Social Security and Medicare taxes withheld from the Board of Supervisors checks.

Engineering Fees
The District's engineer will be providing general engineering services to the District, i.e. attendance and preparation for monthly board meetings, review invoices, etc.

Arbitrage
The District is required to annually have an arbitrage rebate calculation on the District's Bonds.

Dissemination
The District is required by the Security and Exchange Commission to comply with Rule 15(c)(2)-12(b)(5), which relates to additional reporting requirements for un-rated bond issues.

Attorney
The District's legal counsel will be providing general legal services to the District, i.e. attendance and preparation for monthly meetings, review operating & maintenance contracts, etc. The District has contracted with Straley Robin Vericker for these services.

Annual Audit
The District is required to annually conduct an audit of its financial records by an Independent Certified Public Accounting Firm. The fee is based on similar Community Development Districts and includes the GASB 34 pronouncement.

Trustee Fees
The amount of the trustee fees is based on the agreement between U.S. Bank and the District.

Management Fees
The District receives Management, Accounting and Administrative services as part of a Management Agreement with Governmental Management Services ...,. South Florida, LLC. These services are further outlined in Exhibit "A" of the Management Agreement.

Administrative: (continued)

Computer Time
The District processes all its financial activities, i.e. accounts payable, financial statements, etc. on a main frame computer leased by Governmental Management Services - South Florida, LLC.

Website Compliance
Per Chapter 2014-22, Laws of Florida, all Districts must have a website by October 1, 2015 to provide detailed information on the CDD as well as links to useful websites regarding Compliance issues. This  website  is maintained by GMS-SF, LLC and updated monthly.

Telephone
Cost for telephone and fax machine.

Postage
Mailing of agenda packages, overnight deliveries, correspondence, etc.

Insurance
The District will bind General Liability & Public Officials Liability Insurance with a firm that 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 that incurred during the year.

Office Supplies
Miscellaneous office supplies for agendas.

Dues, Licenses & Subscriptions
The District is required to pay an annual fee to the Department of Economic Opportunity for $175. This is the only expense under this category for the District.

Capital Outlay
Represents any minor capital expenditures the District may need to make during the Fiscal Year such as a file cabinet for District files.

Field Management

The District's field manager or the HOA will provide oversight of the property and its contractors.

Electric
FPL provides electricity for street 56 lights within the District.

Landscape Maintenance
Represents mowing and maintain of grounds within the District.

Tree Service
Represents costs to trim trees within the District.

Lake Maintenance
Represents the maintenance of the (14) fourteen lakes within the District.

Irrigation Maintenance
Represents the repair and maintenance of the irrigation system within the District.

Repairs & Maintenance
Represents any expenditures such as repairs and maintenance the District may need to make during the Fiscal Year.

Street Maintenance
Represents the maintenance of the streets within the District.

Sign Maintenance
Represents estimated cost for repairing or replacing street and amenities signage.

Gate & Fence Maintenance
Represents the maintenance of the gates and fences within the District.

Preserve Maintenance
Represents protection costs of wetlands, waterways, and preserves within the District.

Recreational Building:

Security System
Represents security system costs for the recreational building

Cable/Internet
Cable and internet services for the Recreational Building.

Recreational Building: (continued)

Water/Sewer
Represents Water and Sewer services provided by St. Lucie County Utilities.

Insurance
The District will bind Property Insurance with a firm that specializes in providing insurance coverage  to governmental agencies.

Pool, Heated Seasonally (Solar)
Represents services to heat the pool during winter season.

Solar System Maintenance
Represents costs for maintaining the solar system.

Equipment Maintenance
Represents scheduled maintenance on equipment.

Janitorial Maintenance
Represents cleaning of the recreational building.

Sporting Courts Maintenance
Represents costs associated with repairs of basketball, tennis courts within the District.

Playground Maintenance
Represents costs associated with repairs and maintenance of the playground within the District.

Pest Control
Represents monthly pest control service.

Licenses, Permits, Fees
Represents pool licenses and inspections on an annual basis.

RESOLUTION 2020-03

A RESOLUTION OF THE BOARD OF SUPERVISORS OF THE WATERSTONE COMMUNITY DEVELOPMENT DISTRICT TO DESIGNATE DATE, TIME AND PLACE OF PUBLIC HEARING AND AUTHORIZATION TO PUBLISH NOTICE OF SUCH HEARING FOR THE PURPOSE OF ADOPTING AMENDED AND RESTATED RULES OF PROCEDURE; AND PROVIDING AN EFFECTIVE DATE

WHEREAS, Waterstone Community Development District (the "District") is a local unit of special-purpose government created and existing pursuant to Chapter 190, Florida Statutes, being situated entirely within St. Lucie County, Florida; and

WHEREAS, the Board of Supervisors of the District (the "Board") is authorized by Section 190.011(5), Florida Statutes, to adopt rules and orders pursuant to Chapter 120, Florida Statutes.

NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF SUPERVISORS OF THE WATERSTONE COMMUNITY DEVELOPMENT DISTRICT:

SECTION 1. A Public Hearing will be held to adopt the District's Amended and Restated

Rules	of	Procedure	on	 	

20_,	at	 	

.m.,	at

SECTION 2.	The District Secretary is directed to publish notice of the hearing in accordance with Section 120.54, Florida Statutes.

SECTION 3. This Resolution shall become effective immediately upon its adoption.

PASSED AND ADOPTED this 		day of 	,20_

ATTEST:	WATERSTONE COMMUNITY DEVELOPMENT DISTRICT

Secretary/Assistant Secretary	Chairman, Board of Supervisors

WATERSTONE COMMUNITY DEVELOPMENT DISTRICT
Amenity Facility Policies December 2019

DEFINITIONS

"Amenity Facility" or "Amenity Facilities" - shall mean the properties and areas owned by the District and intended for recreational use and shall include, but not specifically be limited to, the amenity center, together with their appurtenant facilities and areas.

"Amenity Facility Policies" or "Amenity Facilities Policies" - shall mean the District's Amenity Facility Policies document(s), including without limitation, pool rules and fitness center rules, as amended from time to time.

"Amenity Manager" or "Amenity Staff' - shall mean the District Manager or that person or firm so designated by the District's Board of Supervisors, including their employees.

"Board" - shall mean the District's governing Board of Supervisors.

"Guest" - shall mean any person or persons who are invited by a Patron to participate in the use of the Amenity Facilities.

"District" - shall mean the Waterstone Community Development District.

"District Manager" - shall mean the professional management company with which the District has contracted to provide management services to the District.

"Key Card" - shall mean an electronic key card or fob distributed by the Amenity Manager or Amenity Staff to residents of the District to access the Amenity Facilities.

"Members" - shall mean Property Owners, Tenants, and Non-Resident Users of the Amenity Facilities.

"Non-Resident(s)" - shall mean any person or group of persons who are not a Resident(s) of the District.

"Non-Resident User" - shall mean any person or persons not owning property in the District who is paying the Non-Resident User Fee to the District for use of the Amenity Facilities.

"Non-Resident User Fee" shall mean the fee established by the District for any person who is not a Resident and wishes to become a Non-Resident User of the Amenity Facilities. The amount of the Non-Resident User Fee set forth herein is subject to periodic change by Board action.

"Patron" or "Patrons" - shall mean Property Owners, Guests, Residents, Non-Resident Users, and Tenants who are eighteen (18) years of age and older and their immediate family members residing in the same unit within the District, who are obligated to use the Amenity Facilities in a lawful manner and in accordance with the Amenity Facility Policies.

"Property Owner" - shall mean that person or persons having fee simple ownership or legal title to land within the District.

"Renter" - shall mean persons or entities renting the Waterstone Clubhouse meeting room for private events.

"Resident" - shall mean any person, spouse or registered domestic partner of a person, and/or immediate family, including minor and/or dependent children, lawfully residing in a residence within the District.

"Tenant" - shall mean any tenant lawfully residing in a Property Owner's home located within the District and pursuant to a valid rental or lease agreement.

AMENITY FACILITIES HOURS OF OPERATION

The Amenity Facilities hours of operation will be established and published by the District considering the season of the year and other circumstances. The Amenity Facilities will be closed on the following Holidays: Christmas Day, Thanksgiving Day, and New Year's Day. The Amenity Facilities may close early on Easter Sunday, Memorial Day, Mother's Day, Father's Day, Independence Day, Labor Day, Christmas Eve, and New Year's Eve.

GENERAL AMENITY CENTER PROVISIONS

The Board reserves the right to amend or modify these policies when necessary and will notify Patrons of any changes.

The Board, Amenity Manager and Amenity Staff have full authority to enforce these policies.

Disregard for any of the Amenity Facility Policies may result in suspension of use of Amenity Facility privileges, as defined in the Suspension section below.

Patrons shall treat all Amenity Staff with courtesy and respect.

No Patron is allowed in the employee only service areas of the Amenity Facility.

Patrons must use their assigned Key Card to enter the Amenity Facilities.

Two facility Key Cards will be issued by the Amenity Manager or Amenity Staff to the property-owning person or entity at the time they are closing upon their purchase of property within the District. The fee for each initial card will be $30.00. Proof of property ownership may be required annually. All Patrons must use their Key Card for entrance to the Amenity Facilities. A Key Card should not be issued to Non-Residents unless they are a Non-Resident User.

Lost, Damaged or Stolen Key Card Fee. Residents, Tenants and Non-Residents will be charged thirty dollars ($30.00) to obtain a new or replacement Key Card. Patrons must contact the Amenity Manager for instructions on how to obtain a replacement Key Card and to initiate the replacement process. Damaged Key Cards must be mailed or delivered to the Amenity Manager's office prior to obtaining a replacement. All lost or stolen Key Cards will be permanently deactivated for security reasons.

Children under seventeen (17) years of age must be accompanied by a parent or adult Patron.

Alcoholic beverages shall not be served or sold at the Amenity Facilities. Alcohol may only be brought to the Clubhouse by residents and consumed in the Clubhouse at private or Clubhouse-sponsored adults-only events. These events must be pre-approved by the Amenity Manager, acting on behalf of the Board.

CDD and HOA Board meetings take precedence over other activities m scheduling conflicts.

No Patron wearing a wet bathing suit will be allowed to sit on the indoor clubhouse furniture.

Dogs and all other pets (with the exception of certified service animals) are not permitted on or at the Amenity Facilities. Where dogs are permitted on the grounds, they must be leashed. Patrons are responsible for picking up after all pets.

Vehicles must be parked in designated areas. Vehicles shall not be parked on grass lawns, or in any way that blocks the normal flow of traffic. Overnight parking for vehicles of any kind in the Clubhouse parking lot will be only be allowed with permission from the Amenity Manager or designated Amenity Staff.

Fireworks of any kind are not permitted anywhere at the Amenity Facilities or adjacent areas.

Smoking and the use of smokeless tobacco products, including e-cigarettes, are banned from all Amenity Facilities.

Except for designated parking areas, motorized off-road bikes, vehicles, scooters, and ATVs are prohibited on all property owned, maintained, and operated by the District, including the Amenity Facilities. Only motorized vehicles owned and operated by the District, if any, are permitted on District property.

The Amenity Facilities will not offer child care services to Patrons.

Skateboarding is not allowed on any Amenity Facility property, including but not limited to: the amenity center, tennis and game courts, pool area, fields, playground area, parking lot, and sidewalks surrounding this area.

Loss OR DESTRUCTION OF PROPERTY OR INSTANCES OF PERSONAL INJURY

Any Patron or other person who makes use of the Amenity Facilities for any purpose whatsoever does so at his or her own risk, and as a condition precedent to such use, waives any and all claims and holds the District, its officers, agents and employees harmless for any and all losses, costs, claims, injuries, damages or liability sustained or resulting from such use.

Patrons are solely responsible for personal property brought onto the Amenity Facilities. The District is not responsible for the loss or damage to any personal property used or brought onto the Amenity Facilities.

All Patrons using the Amenity Facilities are required to conduct themselves in a responsible, courteous and safe manner in compliance with all policies and rules of the District governing the Amenity Facilities. Violation of the District's policies and/or misuse or destruction of Amenity Facility property or equipment may result in the Short-Term or Long-Term Suspension of Amenity Facility privileges with respect to the offending Patron, to be determined at the discretion of the Board. The District may pursue further legal action and restitution in regard to destruction of Amenity Facility property or equipment. No person shall remove from the room in which it is placed or from the Amenity Facilities any property or furniture belonging to the District or its contractors without proper authorization. Patrons shall be liable for any property damage and/or personal injury caused by them at the Amenity Facilities. The District reserves all legal and equitable remedies for losses due to property damage or personal injury.

INDEMNIFICATION

Each organization, group or individual using or reserving the use of the Amenity Facilities shall indemnify and hold the District, and its officers, employees and agents harmless from any and all liability, claims, actions, suits or demands by any person, corporation or other entity, for injuries, death, and property damage of any nature, arising out of or in connection with the use of the Amenity Facilities and/or other District property, including attorneys' fees, litigation related costs, and appellate proceedings related thereto. Nothing herein shall constitute or be construed as a waiver of the District's sovereign immunity granted pursuant to Section 768.28, Florida Statutes.

The District and its agents, employees and officers shall not be liable for, and as a condition for use and access to the Amenity Facilities, the Patrons release all such parties from claims for injury or damage to or loss of personal property or to the person, sustained by the user or any person claiming through the Patron resulting from any fire, accident, occurrence, theft or condition in or upon the District's lands, premises and/or facilities.

GENERAL SWIMMING POOL & WADING POOL RULES

Patrons and Guests may only gain access to the pool area through the use of the Patron(s)' assigned Key Card(s). At any given time, a Patron may accompany up to four (4) Guests at the swimming pool.

The Board reserves the right to authorize all programs and activities, including specifying the number of guest participants, allowable equipment, supplies, usage, etc., conducted at the pool, including swim lessons, aquatic or recreational programs, and pool parties. Pool rentals for parties or special events to occur after normal operating hours may be approved by Amenity Staff on behalf of the Board. Organized activities such as swim lessons or recreational programs must first be approved by the Board.

Swimming hours will be posted at the pool and no lifeguard will be on duty. Patrons swim at their own risk and must adhere to swimming pool rules. Swimming is permitted only during posted swimming hours. Swimming after dusk is prohibited.

No access will be allowed, by a Patron before or after posted swimming pool hours. Trespassing may be prosecuted as a criminal offense and may lead to the loss of the Key Card and suspension of access to the Amenity Facilities. Any person swimming during non-posted swimming hours may be suspended from using the Amenity Facilities pursuant to the provisions of the Suspension section below.

Pool availability may be rotated in order to facilitate maintenance of the Amenity Facilities, or for inclement weather. Maintenance may require the pool to be closed for one (1) full day at the discretion of the Amenity Manager or Amenity Staff. Depending upon the intensity of pool usage, Amenity Staff may close the pool for additional periods of time to facilitate maintenance and to ensure compliance with applicable Florida health codes.

Children under three (3) years of age, and those who are not reliably toilet trained, must wear rubber lined swim diapers, as well as a swim suit over the swim diaper, to reduce the health risks associated with human waste in the swimming pool/deck area. The changing of diapers or clothes is not allowed at pool side. Changing tables are provided in the restroom facility.

Showers are required before entering the pools. All Patrons shall wear proper swim attire while using the pool. Proper swim attire is traditional swimwear such as one-piece swimsuits, two-piece swimsuits, swim trunks and/or board shorts. Clothing including but not limited to jean shorts, athletic shorts, underwear, "thong" swimsuits and other similar items are not proper swim attire.

Pool entrances must be kept clear at all times. Pool furniture is not to be removed from the pool area.

Children under seventeen (17) years of age must be accompanied by a Parent or adult Patron at all times for usage of the pool facility.

Loud, profane, or abusive language is prohibited. No diving, jumping, pushing, running or other horseplay is allowed in the pool or on the pool deck area. No swinging on ladders, fences, or railings is allowed. Alcoholic beverages, gum, and glass containers are not permitted in the pool area, with the exception of alcoholic beverages at a private event rental as stated above. Pets, bicycles, skateboards, roller blades, scooters, radio-controlled watercraft, and golf carts are not permitted on the pool deck area inside the pool gates at anytime.

Play equipment, such as floats, rafts, snorkels, dive sticks, and :flotation devices must meet with Amenity Staff approval prior to use. The Amenity Staff reserves the right to discontinue usage of such play equipment during times of peak or scheduled activity at the pool, or if the equipment provides a safety concern. Ear buds or headphones must be used while listening to radios or other personal audio devices at the pool.

SWIMMING POOL & WADING POOL: FECES POLICY

No Patron shall pollute the pool. Any Patron who does pollute the pool is liable for any costs incurred in treating and reopening the pool. If contamination occurs, the pool will be closed for the requisite time provided for by Florida law and the water will be treated or shocked with chlorine to kill all bacteria, as necessary.

Parents should take their children to the restroom before entering the pool. Children under three (3) years of age, and those who are not reliably toilet trained, must wear rubber lined swim diapers and a swimsuit over the swim diaper.

FITNESS CENTER POLICIES

All Patrons using the fitness center within the Amenity Facility are expected to conduct themselves in a responsible, courteous and safe manner in compliance with this Amenity Facilities Policy. A Patron's disregard or violation of this policy, misuse of the fitness center, or destruction of fitness center equipment may result in the suspension of fitness center privileges pursuant to the provisions of the Suspension section below.

Please note the fitness center is an unattended facility, persons using the facility do so at their own risk. Amenity Staff is not present to provide personal training or exercise consultation to Patrons. Patrons interested in using the fitness center are encouraged to consult with a physician prior to commencing a fitness program.

Hours: The fitness center is open for use by Patrons during normal operating hours to be established and posted by the District. No access will be allowed, by a Patron or any other person, before or after fitness center hours, except for Amenity Staff to perform official duties and tasks. Trespassing may be prosecuted as a criminal offense and may lead to the loss of the Key Card and/or suspension of access to the Amenity Facilities pursuant to the provisions of the Suspension section below.

Emergencies: All emergencies and injuries must be promptly reported to the Amenity Staff as well as the District Manager at (954) 582-2861.

Eligible Users: Patrons sixteen (16) years of age and older are permitted to use the fitness center during designated operating hours. No children under the age of sixteen (16) are allowed in the fitness center at any time. Patrons use all Amenity Facilities at their own risk.

Proper Attire: Appropriate clothing and athletic footwear (covering the entire foot) must be worn at all times. Appropriate clothing includes t-shirts, shorts, leotards, and/or sweat suits.

Food and Beverage: Food (including chewing gum) is not permitted. Non-alcoholic beverages, however, are permitted if contained in non-breakable containers with screw top or sealed lids. Glass containers and alcoholic beverages are not permitted.

Miscellaneous Policies:

Each Patron is responsible for wiping off fitness equipment after use.
Use of personal trainers is not permitted.
Hand chalk is not permitted.
Music and/or digital media players are not permitted unless they are personal units equipped and used with headphones.
No bags, gear, or jackets are permitted on the floor of the fitness center or on the fitness equipment.
Smoking and smokeless tobacco products are not permitted.
Weights or other fitness equipment may not be removed from the fitness center.
Patron use of cardiovascular equipment shall be limited to thirty (30) minute periods.
Patrons shall alternate between multiple sets on weight equipment if other individuals are waiting.
Patrons must return weights and other fitness equipment to the proper location after use.
Patrons should not drop free weights. Free weights should be placed only on the floor or on equipment made specifically for storage of the weights.
Any fitness program operated, established, and run by Amenity Staff may have priority over other users of the fitness center.
Televisions are available for use at volumes courteous to other Patrons using the fitness center. Patrons must turn off the TV when finished watching the television.

SPORTS FACILITIES POLICY

All Patrons using the District's tennis courts or fields (the "Sports Facilities") are expected to conduct themselves in a responsible, courteous and safe manner, and in compliance with this Amenity Facilities Policy. Disregard or violation of the District's policies and rules and misuse

or destruction of Sports Facility equipment may result in the suspension of Sports Facilities and/or Amenity Facilities privileges pursuant to the Suspension Section below. Guests may use the Sports Facilities if accompanied by an adult Resident or Non-Resident User.

Please note that the Sports Facilities are unattended. All persons using the Sports Facilities do so at their own risk. Persons interested in using the Amenity Facilities and/or Sports Facilities are encouraged to consult with a physician prior to using the facility.

Hours: The Sports Facilities ate available for use by Patrons from dawn to dusk. No access will be allowed, by a Patron or any other person, before or after dawn to dusk. Trespassing may be prosecuted as a criminal offense and may lead to suspension of that Patron's Key Card and/or the suspension of access to the Amenity Facilities pursuant to the Suspension section below.

Emergencies: All emergencies and injuries must be reported to the Amenity Staff as well as the District Manager at (954) 582-2861.

Proper Attire: Proper athletic apparel and athletic shoes are required at all times while using the Sports Facilities. Proper attire shall consist of athletic shoes with non-marking soles, shirts, and shorts or athletic pants. No cutoffs, swimsuits, or jeans are allowed to be worn at the Sports Facilities.

Reservations: The Sports Facilities may not be rented nor reserved. The Sports Facilities are on a first come, first serve basis. Use of the Sports Facilities is limited to one (1) hour when other Patrons are waiting.

General Policies:

Proper sportsmanship and etiquette shall be adhered to at all times. The use of profanity or disruptive behavior is prohibited.
Persons using the Sports Facilities must supply their own equipment.
Each Sport Facility is for the play of its intended sport only. Pets, roller blades, bikes, skates, skateboards, and scooters are prohibited from use at all Sports Facilities.
Beverages are permitted at the Sports Facilities if contained in non-breakable containers with screw top or sealed lids. No glass containers are permitted. Alcoholic beverages are not permitted at the Sports Facilities.
No chairs other than those provided by the District are permitted at the Sports Facilities.
Children under the age of twelve (12) shall not use the Sports Facilities without a seventeen (17) year-old or older Resident or Non:..Resident User present.

PLAYGROUND POLICY

No one over the age of eight (8) is allowed on the equipment. Children under the age of seventeen (17) must be accompanied by an adult Patron.

No roughhousing on the playground.

Patrons using the playground must clean up all food, beverages and miscellaneous trash brought to the playground. Smoking and smokeless tobacco products, e-cigarettes, alcoholic beverages, and glass containers are not permitted on or near the playground.

Use of the playground may be limited from time to time due to sponsored events which must be approved in advance by the Amenity Manager.

The use of profanity or disruptive behavior at the playground is prohibited.

AMENITY FACILITIES NON-RESIDENT USER FEE

(1) Non-Resident Users may purchase an annual membership for use of the Amenity Facilities on a year to year basis. The Non-Resident User Fee is$  	,per Family, payable in advance. "Family" being defined as immediate family members residing in the same unit within the District. The rate for an individual is the same as for a Family. Upon purchase of the membership, the Non-Resident User is entitled to two (2) Key Cards for a Family unit. Non-Resident User membership becomes effective upon the date full payment of the Non-Resident User Fee and the Non-Resident User Application are received by the District. A sample Non-Resident User Application is attached to this Amenity Facility Policy. To renew the membership for another year, the Non-Resident User must pay the Non-Resident User Fee on or before the expiration date of the prior term. The Non­ Resident User Fee rate is subject to change from year to year based upon the costs of operation of the Amenity Facilities. Due to the size and capacity limitations of the Amenity Facilities, the number of Non-Resident Users is limited to twenty-five (25) memberships.

GUEST PRIVILEGES

All Guests must be registered at the amenity center by Amenity Staff and accompanied by a Member at all times. Members are permitted to bring a maximum of four (4) Guests per visit. Guests are not limited to a certain number of visits, so long as they are accompanied by a Member. Members who have a Guest are responsible for any and all actions taken by such Guest. Violations of the Amenity Facility Policies by a Guest may result in suspension of that Member's privileges.

TENANT'S PRIVILEGES

Property Owners who rent out or lease out their residential unit(s) in the District shall have the right to designate the Tenant of their residential unit(s) as the beneficial users of the Property Owners' Amenity Facilities privileges.

A Tenant who is designated as the beneficial user of the Property Owner's privileges shall be entitled to the same rights and privileges to use the Amenity Facilities as the Property Owner and other Residents.

During the period when a Tenant is designated as the beneficial user of the  Property Owner's privilege to use the Amenity Facilities,  the Property  Owner  shall not  be entitled  to use the Amenity Facilities with respect to that property, unless the Property Owner is a Guest or a paying Non-Resident User.

Property Owners shall be responsible for all charges incurred by their Tenants which remain unpaid after the customary billing and collection procedure established by the District. Property Owners are responsible for the deportment of their respective Tenants.

All Tenants are required to obtain a Key Card from the Property Owner and register the Key-Card with the Amenity Manager.

Tenants shall be subject to such other rules and regulations as the Board may adopt from time to time, and all policies applicable to the Amenity Facilities.

FACILITY RENTAL POLICIES

Members and/or non-residents of the District (referred to as "Non-Residents" for purposes of this section) may reserve for rental the Clubhouse meeting room for private events. The pool and pool deck area are not available for private rental during normal operating hours and shall remain open to Patrons during normal operating hours. Reservations may not be made more than four
(4) months prior to the event. In addition, each Member household may rent the Clubhouse meeting room only once per quarter of the calendar year.

All Amenity Facility Polices remain in force for rental events. The Clubhouse meeting room may not be rented for political activities or events for political candidates, nor for events where the Renter would receive a direct financial benefit or gain.

Please see the Amenity Manager for details relating to additional rental cost, staffing cost and availability, and facility availability for the anticipated date and time of the event. Please note that the room rental is not available for the month of December of each calendar year and for private events on the following holidays:

Easter Sunday Labor Day Weekend Christmas Day

Memorial Day Weekend Thanksgiving
New Year's Eve

Fourth of July Christmas Eve

Private Rental of Clubhouse Meeting Room: The Clubhouse meeting room is the only room available for private rental. Maximum rental time is five (5) total hours, which includes time for set-up and post-event cleanup. All persons renting the Clubhouse must abide by limitations on the room capacity and must pay the rental fee described below. Anyone renting the Clubhouse shall be responsible for any and all damage and expenses arising from the event.

Clubhouse Meeting Room Reservation and Rental Process:

Any person interested in reserving the Clubhouse meeting room must submit to the Amenity Manager, no later than thirty (30) days prior to the event, a completed Clubhouse Rental Information Form. The Amenity Manager will review the Clubhouse Rental Information Form on a case-by-case basis and has the authority to reasonably deny a request. Denial of a request may be appealed to the Board for reconsideration.

A Member desiring to reserve the Clubhouse meeting room must pay a refundable reservation deposit in the amount of two hundred fifty dollars ($250.00), made payable electronically to the District at the time of the reservation pursuant to the guidelines established by Amenity Staff. A Non-Resident desiring to reserve the Clubhouse meeting room must pay a refundable reservation deposit in the amount of five hundred dollars ($500.00), made payable electronically to the District at the time of the reservation pursuant to the guidelines established by Amenity Staff. The deposit will be returned following the rental event, provided the Amenity Manager determines that there has been no damage to the facility and the facility has been properly cleaned after use. If the facility is not properly cleaned, the deposit will be retained by the Amenity Manager for this purpose.

Members shall pay a room rental fee in the amount of one hundred dollars ($100.00), and Non-Residents shall pay a room rental fee in the amount of three hundred dollars ($300.00). Rental fees are due and payable a minimum of thirty
(30) days prior to the rental event. Renters must pay electronically to the District. In addition, the Renter shall provide to the Amenity Manager an estimated number of guests to use the Clubhouse no less than five days prior to the date of the rental. The number of guests shall not exceed the allowable number or capacity authorized by the fire marshal. Failure to provide an estimated number of guests for the event may result in the cancellation of the rental at the discretion of the Amenity Manager.

Refund of Reservation Deposit: The Amenity Manager shall determine the amount of deposit to return, if any. To be eligible to receive a full refund of the deposit, the renting person must ensure the following actions are completed:

Ensure that all garbage is removed and placed in the dumpster. Remove all displays, favors or remnants of the event.
Restore the furniture and other items to their original position(s). Wipe off counters, table tops and sinl<: area.
Replace garbage liner(s).

Clean out and wipe down the refrigerator, and all cabinets and appliances used. Clean any windows and doors in the rented room. Floor should be swept clean.
Ensure that no damage has occurred to the Amenity Facility and its property.

In addition, a person or group remaining in the rented room after the allotted rental time will cause the Renter to be billed $25.00 per half hour, to be subtracted from the reservation deposit.

If additional cleaning is required, the Renter will be liable for any expenses incurred by the District to hire an outside cleaning contractor. Additional cleaning costs shall first be subtracted from the amount of reservation deposit. If the reservation deposit is insufficient to cover all such cleaning costs, the Amenity Manager shall bill the Renter for the remaining balance. The Renter may also opt to pay for the actual cost of cleaning by a professional cleaning service hired by the District.

Room Cancellations: The room reservation must be cancelled at least fifteen (15) days  prior to the reserved date by notifying the Amenity Manager by phone or in writing. If the room reservation is cancelled less than fifteen (15) days prior to the scheduled rental, one half of the rental deposit will be retained as a cancellation fe'e.

General Rental Policies: During a scheduled rental event, the Renter shall ensure all attendees abide by the following rules:

All attendees must adhere to the Amenity Facility Policies set forth herein.
The volume of live or recorded music must not violate applicable St. Lucie County noise ordinances.
No glass, breakable items or alcohol are permitted in or around the pool deck area.
Additional liability insurance coverage naming the District as an additional insured will be required for all events that are approved to serve alcoholic beverages. This policy also pertains to certain events the District determines should require additional liability coverage on a case by case basis to be reviewed by the Amenity Manager and/or Board.
The kitchen may be only used by the Renter during their approved events. Otherwise, the refrigerator and the items within the refrigerator and within the cabinet are not for residential use.
Only the Amenity Staff may operate the dishwasher.
During days when there are events sponsored by the District or reserved by the Renter, the meeting room will not be available for rental.

SUSPENSION OF PRIVILEGES

To ensure the use and enjoyment of the Amenity Facilities by all Patrons, the following policy shall be followed for those Patrons who are not adhering to the rules and regulations. This policy will be enforced and applied unifmmly in a standard way to all Patrons, without prejudice.

Patrons and Amenity Staff are expected to act, at all times, in a courteous and respectful manner. A Patron displaying aggressive or argumentative behaviors may be subject to immediate suspension by Amenity Staff. Any Patron who is physically or verbally abusive to other Patrons or Amenity Staff or who engages in other impermissible behavior may be immediately suspended for up to twenty (20) days, without prior notice, at the discretion of the Amenity Manager (a "Short-Term Suspension"). Suspensions of a time period longer than twenty (20) days shall be determined by the Board (a "Long-Term Suspension"). For each rule violation, the Amenity Staff shall fill out an incident report. A sample incident report is attached to this Amenity Facility Policy.

At the discretion of Amenity Staff, children between the ages of sixteen (16) and eighteen
(18) years old who violate the rules and policies may be expelled from the facility for one
(1) day. Upon such expulsion, a written incident report shall be prepared detailing the name of the child, the prohibited act of offense committed and the date. This report will be kept on file with the District. Any child who is expelled from the facility three (3) times in a one (1) year period, shall, until the child reaches the age of eighteen (18), only be entitled to use the facility if accompanied by a parent or adult Patron at all times.

All other rule violations shall be handled by the Amenity Manager and/or Amenity Staff in the following manner:

1ST Violation: Verbal Warning 2nd  Violation:   Written Warning
3rd Violation: 1 to 20 day Short-Term Suspension
Multiple violations and/or impermissible behavior: Referral to the Board for suspens10n.

Patrons' Amenity Facility privileges may be subject to a Short-Term Suspension or Long­ Term Suspension by the Board, to be determined at the Board's discretion, if a Patron behaves in a manner described below in this non-exhaustive list of impermissible behavior:

Permits unauthorized use of his or her assigned Key Card by another person
Exhibits unsatisfactory behavior, manners or appearance
Fails to abide any portion of the Amenity Facility Policies
Treats the Amenity Staff in an umeasonable or abusive manner
Engages in conduct that is improper or likely to endanger the welfare, safety or reputation of the District, the Amenity Facility or Amenity Staff.

Any Patron receiving a notice for rules violation will have the violation removed if they receive no further violations within a ninety (90) day period following the notification. If the member corrects the situation which is a violation on the spot, then no notice (oral or written) will be issued.

In any disciplinary case coming before the Board for suspension of Amenity Facility Privileges or an appeal of a Short-Term Suspension, the suspension hearing or appeal will be conducted as follows:

At least ten (10) days in advance of the Board meeting, the District Manager will provide mailed written notice to the affected Patron, as appropriate, stating the date, time and place for the suspension or appeal hearing.
At the meeting, the District Manager or Amenity Manager/Amenity Staff shall describe the relevant events and occurrences surrounding the alleged violation, present evidence and incident reports related to the violation, and any past history of violations.
The affected Patron (and Property Owner in the case of a minor, immediate family or Tenant) shall be entitled to respond, and present a rebuttal and relevant evidence to the Board.
The Board shall deliberate and deliver a ruling. The Amenity Manager shall notify the offender of the results of the appeal.

Incident Report

Date of Incident: --------	Time of Incident: 	(am/pm)
Party Involved: 	Sex: Male/Female

Is this person 18 years or older?	Yes/No

If not, name of Parent or Guardian:  	

Mailing Address: 	_ Was local law enforcement called? Yes/No
Description of what happened (include location):

Names, phone numbers, and addresses of who witnessed the incident:

Immediately Suspended: Yes/No

If yes, the reason: 	_

Recommendation:			 Name of Staff Member writing this report: 	_ Signature of Staff Member writing this report: 		_
Date:  	

Non-Resident User Application

Date of Application: 	Date of Non-Resident User Fee Payment: 	_ Mailing Address: 				_ Phone Number:  						  Alternate Phone Number:  						 Email Address(es): 					_ Total Number oflmmediate Family Members: 	_
Names of Adult Members:  	

Names of Dependent Children Aged 18-22 and Ages: 	_

Number of Minor Children Age 16 or Older: 		_

Number of Minor Children Age 15 or Younger: 		_

Names of Minor Children and Ages: 	

Emergency Contact Information:

Primary Emergency Contact:

Name(s): 	Phone Number(s): 	_

By executing this application, I agree to abide and be bound by all terms and conditions of the Amenity Facility Policy, including, without limitation, the indemnity and release provisions set forth in the policy, and acknowledge that my use of the District Amenity Facility is at my own risk. I understand and acknowledge that I may access the Amenity Facility Policy online at the District website at any time or may request a paper copy from the District Manager. I further acknowledge that I have read or had the opportunity to read the Amenity Facility Policy prior to signing this agreement.

 		By: 	_
(signature)	(print name)

WATERSTONE COMMUNITY DEVELOPMENT DISTRICT
ST. LUCIE COUNTY, FLORIDA FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2019

WATERSTONE COMMUNITY DEVELOPMENT DISTRICT ST. LUCIE COUNTY, FLORIDA

TABLE OF CONTENTS

INDEPENDENT AUDITOR'S REPORT MANAGEMENT'S DISCUSSION AND ANALYSIS
BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements: Statement of Net Position
Statement of Activities Fund Financial Statements:
Balance Sheet - Governmental Funds
Reconciliation of the Balance Sheet - Governmental Funds to the Statement of Net Position
Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities
Notes to the Financial Statements

REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - General Fund
Notes to Required Supplementary Information

Page
1-2

3-6

7
8

9

10

11

12
13-21

22
23

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	24-25
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH THE REQUIREMENTS OF SECTION 218.415, FLORIDA STATUTES, REQUIRED BY RULE 10.556(10)
I	OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA	26
MANAGEMENT LETTER REQUIRED BY CHAPTER 10.550 OF THE RULES
OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA	27-28

Grau& Associates
CERTIFIED  PUBLIC ACCOUNTANTS

INDEPENDENT AUDITOR'S REPORT

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

To the Board of Supervisors
Waterstone Community Development District St. Lucie County, Florida

Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities and each major fund of Waterstone Community Development District, St. Lucie County, Florida ("District") as of and for the fiscal year ended September 30, 2019, 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.

Auditor's Responsibility

Our responsibility is to express opinions on these financial statements based on our audit. Except as discussed in the following paragraphs, 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 auditor's 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, 2019, 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.

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 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 January 23, 2020, 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.
i?44vJ-..
January 23, 2020

MANAGEMENT'S DISCUSSION AND ANALYSIS

Our discussion and analysis of Waterstone Community Development District, St. Lucie County, Florida ("District") provides a narrative overview of the District's financial activities for the fiscal year ended September 30, 2019. 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 position deficit balance of ($2,677,946).

The District's total net position increased by $13,166,539 in comparison with the prior fiscal year. 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, 2019, the District's governmental funds reported combined ending fund balances of
$450,998, an increase of $25,477,671 in comparison with the prior fiscal year. The fund balance is restricted for debt service, nonspendable for prepaid items and assigned to subsequent year's expenditures.

OVERVIEW OF FINANCIAL STATEMENTS

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

Government-Wide Financial Statements

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

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

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

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

Fund Financial Statements

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

OVERVIEW OF FINANCIAL STATEMENTS (Continued)

Governmental Funds

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

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

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

Notes to the Financial Statements

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

GOVERNMENT-WIDE FINANCIAL ANALYSIS

As noted earlier, net position may serve over time as a useful indicator of an entity's financial position. In the case of the District, liabilities exceeded assets at the close of the fiscal year ended September 30, 2019.

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

NET POSrTION SEPTEMBER 30,
 	2019	2018	
Assets, excluding capital assets		$		464,744	$		234,538 Capital assets, net of depreciation	 		10,431,971		9,562,261 
Total assets	 	10,896,715	9,796,799 
Liabilities, excluding long-term liabilities			127,314	25,641,284 Long-term liabilities	 	13,447,347		
Total liabilities	 	13,574,661	25,641,284 Net position
Net investment in capital assets	(3,015,376)	(7,022,739)
Restricted	281,661	673
Unrestricted	 	55,769	(8,822,419)
Total net position	 $ (2,677,946) $ (15,844,485) 

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

GOVERNMENT-WIDE FINANCIAL ANALYSIS (Continued)

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

The District's net position increased during the most recent fiscal year. The majority of the increase was due to the recognition of gain on bond restructuring.

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

CHANGES IN NET POSrrlON
FOR THE FISCAL YEAR ENDBJ SEPrEMBER 30,
2019	2018

Revenues:

Program revenues
Operating grants and contributions Capital grants and contributions
Total revenues Expenses:

$	1,099	$	433,750
 	869,732	7
 	870,831	433,757 

General government	85,565	61,430	
Maintenance and operations	33,088	21,043	
SPEcosts		376,176	
Interest	367,167	912,175	
Bond issuance costs	301,837		
Loss on impairment of capital assets	 	5,112,136 	
Total expenses	 	787,657	6,482,960 	
Special item - Restructuring gain	 	13,083,365		

Change in net position Net position - beginning Net position - ending

13,166,539	(6,049,203)
     (15,844,485)	(9,795,282)
$     (2,677,946)     $ (15,844,485)

As noted above and in the statement of activities, the cost of all governmental activities during the fiscal year ended September 30, 2019 was $787,657. Program revenues, which were comprised primarily of Developer contributions, increased from the prior fiscal year mainly as the result of a contribution from the Developer as part of the land sale agreement in the current year. Expenditures decreased from the prior fiscal year due to the impairment loss on capital assets during the prior fiscal year.

GENERAL BUDGETING HIGHLIGHTS

An operating budget was adopted and maintained by the governing board for the District pursuant to the requirements of Florida Statutes. The budget is adopted using the same basis of accounting that is used in preparation of the fund financial statements. The legal level of budgetary control, the level at which expenditures may not exceed budget, is in the aggregate. Any budget amendments that increase the aggregate budgeted appropriations must be approved by the Board of Supervisors. Actual general fund expenditures did not exceed appropriations for the fiscal year ended September 30, 2019.

CAPITAL ASSETS AND DEBT ADMINISTRATION

Capital Assets
At September 30, 2019, the District had $10,431,971 invested in capital assets for its governmental activities. No depreciation has been taken as the depreciable assets have not been placed in service. More detailed information about the District's capital assets is presented in the notes of the financial statements.

Capital Debt

At September 30, 2019, the District had $13,447,347 in Bonds outstanding for its governmental activities. More detailed information about the District's capital debt is presented in the notes of the financial statements.

ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND OTHER EVENTS

For the subsequent fiscal year the District is expecting a significant increase in maintenance expenses and an increase in assessment revenue to cover the expenses.

CONTACTING THE DISTRICT'S FINANCIAL MANAGEMENT

This financial report is designed to provide our citizens, land owners, customers, investors and creditors with a general overview of the District's finances and to demonstrate the District's accountability for the financial resources it manages and the stewardship of the facilities it maintains. If you have questions about this report or need additional financial information, contact the Waterstone Community Development District's Finance Department at 5385 N. Nob Hill Road Sunrise, Florida 33351.

WATERSTONE COMMUNITY DEVELOPMENT DISTRICT ST. LUCIE COUNTY, FLORIDA
STATEMENT OF NET POSITION SEPTEMBER 30, 2019

Governmental
	   Activities		
ASSETS		
Cash	$	63,593	
Prepaid items	5,922	
Restricted assets:		
Investments	395,229	
Capital assets:		
Nondepreciable	10,431,971	
Total assets	 	10,896,715 	

LIABILITIES		
Accounts payable	13,746	
Accrued interest payable	113,568	
Non-current liabilities:		
Due in more than one year	13,447,347	
Total liabilities	 	13,574,661 	

NET POSITION		
Net investment in capital assets	(3,015,376)	
Restricted	281,661	
Unrestricted	 	55,769 	
Total net position	$ 	{2,677,946}	

See notes to the financial statements

WATERSTONE COMMUNITY DEVELOPMENT DISTRICT ST. LUCIE COUNTY, FLORIDA STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2019

Net (Expense) Revenue and Changes in Net
Program Revenues	Position	 Operating	Capital Grants
Grants and	and	Governmental
Functions/Programs
Governmental activities:	Expenses	Contributions	Contributions	Activities		
General government	$	85,565	$	$	$	(85,565)	
Maintenance and operations	33,088	869,732	836,644	
Interest on long-term debt	367,167	1,099	(366,068)	
Bond issuance costs	301,837	(301,837}	
Total governmental activities	 	787,657	1,099	869,732	83,174 

Special item - Restructuring Gain Change in net position
Net position - beginning Net position - ending

13,083,365
 	13,166,539 
(15,844,485}
$	(2,677,946}

See  notes to the financial statements

8

BALANCE SHEET GOVERNMENTAL FUNDS SEPTEMBER 30, 2019

Major Funds	Total
Capital	Governmental
 	General	Debt Service	Projects	Funds	
ASSETS
Cash	$	63,593	$		$	$		63,593 Investments				395,229			395,229
Prepaid items	 			5,922						5,922 Total assets	 	$	69,515	$	395,229	$	$	464,744

LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable	 	$	13,746	$		$	$	13,746                                                                                              Total liabilities	 		13,746				13,746

Fund balances:
Nonspendable:
Prepaid items	5,922	5,922 Assigned to:
Subsequent year's expenditures	49,847	49,847 Unassigned
Debt service fund	 		395,229	395,229 Total fund balances	 	55,769	395,229	450,998

Total liabilities  and fund balances	 $	69,515	$	395,229	$	$	464,744 

See notes to the financial statements

RECONCILIATION OF THE BALANCE SHEET-GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION
SEPTEMBER  30, 2019

Fund balance - governmental funds
Amounts reported for governmental activities in the statement of net position are different because:
Capital assets used in governmental activities are not financial resources and, therefore, are not reported as assets in the governmental funds. The statement of net position includes those capital assets, net of any accumulated depreciation, in the net position of the government as a whole.
Cost of capital assets	10,431,971
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.

$	450,998

10,431,971

Accrued interest payable	(113,568)
Bonds payable	(13,447,347)
Net position of governmental activities	=$===(2=,6=7=7='=94=6===)

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2019

REVENUES

Major Funds	
Capital
 	General	Debt Service	Projects

Total Governmental
Funds	

Interest
Total revenues

   $	$	1,099	$	22	$	1,121 
 	1,099	22	1,121 

EXPENDITURES
Current:
General government	79,497	6,068	85,565	
Maintenance and operations	33,088		33,088	

Debt Service:
Bond issuance costs Total expenditures

Excess (deficiency) of revenues

 	301,837	301,837 
 	112,585	6,068	301,837	420,490 

over (under) expenditures	(112,585)	(4,969)	(301,815)	(419,369)	
OTHER FINANCING SOURCES					
Transfer in (out)		(39,505)	39,505		
Bond proceeds		10,323,868	261,637	10,585,505	

Gain on restructuring
Total other financing sources

 	15,311,535	15,311,535 
 	25,595,898	301,142	25,897,040 

Net change in fund balances

(112,585)

25,590,929

(673)

25,477,671

Fund balances - beginning

 	168,354	(25,195,700)

673	(25,026,673)

Fund balances - ending

   $	55,769	$	395,229	$	$	450,998 

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, 2019

Amounts reported for governmental activities in the statement of
activities are different because:
Net change in fund balances - total governmental funds	
$	25,477,671	
The statement of activities reports noncash contributions as revenues, but these revenues are not reported in the governmental fund financial statements.	

869,710	
Governmental funds report the face amount of Bonds issued as financial resources when debt is first issued,  whereas  these  amounts  are eliminated in the statement of activities and recognized as long-term liabilities in the statement of net position.	

(10,585,505)	
Principal and interest due to bondholders that were previously recorded in the fund financial statements were  reclassified  as  long-term  liabilites  in the current fiscal year.	

(2,608,243)	
Accreted interest on Bonds are recognized as a component of interest expense in the statement of activities.	
(253,599)	
The change in accrued interest on long-term liabilities between the current and prior fiscal year is recorded in the statement of activities but not in the fund financial statements.	

266,505	
Change in net position of governmental activities	$	13,166,539	

NOTES TO FINANCIAL STATEMENTS

NOTE 1- NATURE OF ORGANIZATION AND REPORTING ENTITY

Waterstone Community Development District ("the District") was created on May 16, 2006 pursuant to Ordinance No. 06-016 enacted by the Board of County Commissioners of St. Lucie County, Florida, under the "Uniform Community Development District Act of 1980", otherwise known as Chapter 190, Florida Statutes. The Act provides among other things, the power to manage basic services for community development, power to borrow money and issue Bonds, and to levy and assess non-ad valorem assessments for the financing and delivery of capital infrastructure.

The District was established for the purposes of financing and managing the acquisition, construction, maintenance and operation of a portion of the infrastructure necessary for community development within the District.

The District is governed by the Board of Supervisors ("Board"), which is composed of five members. The Supervisors are elected by the owners of the property within the District. The Board of Supervisors of the District exercise all powers granted to the District pursuant to Chapter 190, Florida Statutes. At September 30, 2019, four of the Board Members are affiliated with Waterstone Builders, 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.

The financial statements were prepared in accordance with Governmental Accounting Standards Board ("GASB") Statements. Under the provisions of those standards, the financial reporting entity consists of the primary government, organizations for which the District is considered to be financially accountable, and other organizations for which the nature and significance of their relationship with the District are such that, if excluded, the financial statements of the District would be considered incomplete or misleading. A blended component unit includes entities that provide services entirely, or almost entirely, to the primary government or otherwise exclusively, or almost exclusively, benefit the primary government even though it does not provide services directly to it. Blended component units, although legally separate entities, are, in substance, part of the government's operations and therefore should be included as an integral part of the primary government.

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.

Government-Wide and Fund Financial Statements (Continued)
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. Debt Service Assessments will be collected directly by the District on a semi-annual basis when interest payments are due. Operating and Maintenance Assessments are based upon adopted budget and levied annually at a public hearing of the District. The District may collect assessments directly or utilize the uniform method of collection (Chapter 197.3632, Florida Statutes). Assessments collected under the uniform method are mailed by County Tax Collector on November 1 and due on or before March 31 of each year. Property owners may prepay a portion or all of the Debt Service Assessments on their property subject to various provisions in the Bond documents.

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

The District did not levy assessments for the fiscal year ended September 30, 2019. The District reports the following major governmental funds:
General Fund
The general fund is the general operating fund of the District. It is used to account for all financial resources except those required to be accounted for in another fund.

Debt Service Fund
The debt service fund is used to account for the accumulation of resources for the annual payment of principal and interest on debt.

Capital Projects Fund
The capital projects fund is used to account for the financial resources to be used for the acquisition or construction of major infrastructure within the District. The fund was closed out during the current fiscal year.

Measurement Focus, Basis of Accounting and Financial Statement Presentation (Continued)
As a general rule, the effect of inter-fund 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.

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

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

The Local Government Surplus Trust Funds, or any intergovernmental investment pool authorized pursuant to the Florida lnterlocal 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 in both government-wide and fund financial statements.

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

No depreciation has been taken as all depreciable capital assets are considered under construction. In the governmental fund financial statements, amounts incurred for the acquisition of capital assets are reported as fund expenditures. Depreciation expense is not reported in the governmental fund financial statements.

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

Assets, Liabilities and Net Position or Equity (Continued)

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 ratably over the life of the Bonds. Bonds payable are reported net of applicable premiums or discounts. Bond issuance costs are expensed when incurred.

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

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

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

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

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 generally 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 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 AND INVESTMENTS

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

Investments
The District's investments were held as follows at September 30, 2019:

Investment	Maturities	Amortized Cost	Credit Risk	
US Bank Money Market	NIA	$	395,229	NIA	

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

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

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

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

-!-

NOTE 4 - DEPOSITS AND INVESTMENTS (Continued)

Investments (Continued)

Fair Value Measurement - When applicable, the District measures and records its investments using fair value measurement guidelines established in accordance with GASB Statements. The framework for measuring fair value provides a fair value hierarchy that prioritizes the inputs to valuation techniques.
These guidelines recognize a three-tiered fair value hierarchy, in order of highest priority, as follows:
Level 1: Investments whose values are based on unadjusted quoted prices for identical investments in active markets that the District has the ability to access;
Level 2: Investments whose inputs - other than quoted market prices - are observable either directly or indirectly; and,
Level 3: Investments whose inputs are unobservable.

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

Money market investments that have a maturity at the time of purchase of one year or less and are held by governments other than external investment pools should be measured at amortized cost. Accordingly, the District's investments have been reported at amortized cost above.

NOTE 5 - INTERFUND TRANSFERS

lnterfund transfers for the fiscal year ended September 30, 2019 were as follows:

 	Transfer in	Transfer out 

Debt service Capital projects
Total

$	$	(39,505)
 	39,505	
$	39,505	$	(39,505)

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

NOTE 6 - CAPITAL ASSETS

Capital assets activity for the fiscal year ended September 30, 2019 was as follows:
Beginning
Balance	Increases	Decreases

Ending Balance

Governmental activities	 Capital assets, not being depreciated
Land and land improvements	$    4,619,280	$
CIP - Stormiv ater	2,592,360
CIP- Entrance Features	868,200
CIP- Roads	1,081,211

$	$    4,619,280
2,592,360
868,200
1,081,211

CIP- Amenity Center	401,210 	869,710	1,270,920 	
Total capital assets, not being depreciated	9,562,261 	869,710	10,431,971 	
Governmental activities capital assets	    $    9,562,261	$	869,710	$	$ 10,431,971 	
The project has been revised from its original intent. The total cost of the revised project has been estimated at approximately $13,662,881 and will include, stormwater systems, roads, amenity improvements, and other improvements. The Developer contributed certain improvements as part of the bond restructuring during the current and prior years.

NOTE 7 - LONG TERM LIABILITIES

Series 2007
On April 12, 2007, the District issued $17,000,000 of Capital Improvement Revenue Bonds, Series 2007B. The Bonds are due May 1, 2018 with a fixed interest rate of 5.5%. 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 and the principal was to be paid in one lump sum on May 1, 2018, however the amount was not paid as described below.

The former Developer stopped making payment on the special assessments which ultimately secure the Bonds during a prior fiscal year. Furthermore, the District did not have sufficient funds to make any of the interest payments subsequent to November 1, 2008 and the lump sum principal payment of $16,585,000 due on May 1, 2018, resulting in events of default. The events of default were remedied as a result of the current year bond bifurcation as described in the paragraph below.

Series 2018 Bifurcation
During the current fiscal year, the District bifurcated the $16,585,000 Series 2007B Bonds into the $2,608,243 Unexchanged Series 2007B Bonds, $3,391,252 Cancelled Series 2007B Bonds which were cancelled, and
$10,585,505 Exchanged Series 2007B Bonds. The Exchanged Series 2007B Bonds were exchanged for the
$1,360,734 Series 2018A Convertible Capital Appreciation Bonds and $9,224,771 Series 2018B Capital Appreciation  Bonds.  The Series 2018A  and 2018B Bonds are being issued at initial principal amounts of
$1,360,734 and $9,224,771, respectively, but will accrete in value to $3,040,000 and $11,230,000, respectively, in accordance with the Bond indenture. The Unexchanged Series 2007B Bonds of $2,608,243 are to be repaid from Excess Series 2018A Special Assessments which are to be held in the Series 2018A Excess Revenue account in accordance with the terms of the Bond indenture. The District did not collect sufficient excess Series 2018A Special Assessments in the current fiscal year. As a result, no payments were made on the Series 2007B Bonds. The accrued interest on the Series 2007B Bonds have not been recorded at the fund level but the accrued interest has been recorded at the government wide level. The non-payment is not considered an event of default. The terms related to t e Capital Appreciation Bonds are as follows:
Conversion
Initial Principal	Date Accreted	Interest	Principal Payments Interest Payments

Series 2018A
2018B

Amount	Value	Rate	Commencing	Commencing
$   1,360,734	$	3,040,000	6.88%	May 1, 2031	May 1, 2031
9,224,771	11,230,000	2.00%    November 1, 2028*	NIA

$ 10,585,505	$ 14,270,000

*Full accreted amount of $11,230,000 due on November 1, 2028.

In connection with the Bond restructuring, the District recognized a gain of $13,083,365 on the government wide statements and $15,311,535 on the fund financial statements in the current fiscal year.

The Series 2018A and 2018B Bonds are not subject to optional redemption. The Bonds are subject to extraordinary mandatory redemption prior to their selected maturity in the manner determined by the Bond Registrar if certain events occurred as outlined in the Bond Indenture.

The Bond Indenture established a debt service reserve requirement as well as other restrictions and requirements relating principally to the use of proceeds to pay for the infrastructure improvements and the procedures to be followed by the District on assessments to property owners. The District agrees to levy special assessments in annual amounts adequate to provide payment of debt service and to meet the reserve requirements. The debt service Reserve Requirement was met at September 30, 2019.

NOTE 7 - LONG TERM LIABILITIES (Continued)

Long-term Debt Activity
Changes in long-term liability activity for the fiscal year ended September 30, 2019 were as follows:

	Beginning
Balance	
Increases	Bond
Accretion	
Decreases	Bond
Cancellation	Ending
Balance	DueWthin
One Year		
Governmental activities										
Bonds payable:										
Series 20078 (Unexchanged)		$ 16,585,000	$	$	$ 10,585,505	$ 3,391,252	$ 2,608,243	$		
Series 2018A			1,360,734	105,569			1,466,303			
Series 20188			9,224,771	148,030			9,372,801			
Total		$ 16,585,000	$ 10,585,505	$253,599	$ 10,585,505	$ 3,391,252	$ 13,447,347	$		

At September 30, 2019, the scheduled debt service requirements based on the fully accreted bonds as were as follows:
Year ending	 	Governmental Activities	
September 30:	Principal*	Interest		Total	
2020	$	$	$		
2021					
2022					
2023					
2024					
2025-2029	11,230,000			11,230,000	
2030-2034	1,555,000	317,681		1,872,681	

2035-2037
Total

 	1,485,000	93,618	1,578,618 
$ 14,270,000	$	411,299	$ 14,681,299

* Includes accreted interest
The Unexchanged bonds are not included in the amortization schedule.

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.

The District presently owns and intends to continue to construct and/or acquire, at some time in the future, various systems, facilities and infrastructure including, but not limited to, entry and landscape areas, stormwater management facilities, and wetland mitigation areas requiring inspection, operation and maintenance services for which the District desires to retain an independent contractor. As such, the District has entered into a Facility Management and Maintenance Agreement with the Waterstone Homeowners Association of St. Lucie, Inc. (the "Association"). The Association's obligations shall include: be responsible for the management and maintenance of District property; conduct regular inspections of all District property; make, cause to be made, such routine work or normal maintenance to District property as may be required for the operation or physical protection of District property. The term of the agreement is for a period of three years ending on October 1, 2010 and renews automatically for a period of one year, unless either party provides the other at least sixty days written notice of its intent not to renew.

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 during the past three years.

NOTE10-SUBSEQUENTEVENTS
Subsequent to fiscal year end, the District did not collect sufficient excess Series 2018A Special Assessments. As a result, no payments were made on the Series 2007B Bonds. The non-payment is not considered an event of default.

)

WATERSTONE COMMUNITY DEVELOPMENT DISTRICT ST. LUCIE COUNTY, FLORIDA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - GENERAL FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2019

	Variance with	
Budgeted
Amounts	
Actual	Final Budget -
Positive	
Original & Final	Amounts	(Negative}	
REVENUES
Assessments	$ 	135,128	$	$		(135,128} Total revenues		 	135,128				(135,128}

EXPENDITURES
Current:
General government	89,187	79,497	9,690
Maintenance and operations	 	47,000	33,088	13,912 	
Total expenditures	 	136,187	112,585	23,602 	
Excess (deficiency) of revenues		
over (under) expenditures	(1,059)	(112,585)	(111,526)	
OTHER FINANCING SOURCES				
Carry forward surplus	1,059		(1,059}	

Total other financing sources		 	1,059					(1,059} Net  change in fund balances	$ 			(112,585)    $		(112,585}
Fund balance - beginning	168,354
Fund balance - ending	 $	55,769 

See notes to required supplementary information

WATERSTONE COMMUNITY DEVELOPMENT DISTRICT ST. LUCIE COUNTY, FLORIDA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION

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

The legal level of budgetary control, the level at which expenditures may not exceed budget, is in the aggregate. Any budget amendments that increase the aggregate budgeted appropriations must be approved by the Board of Supervisors. Actual general fund expenditures did not exceed appropriations for the fiscal year ended September 30, 2019.

I
I

Grau& Associates
CERTIFIED   PUBLIC ACCOUNTANTS

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
Waterstone Community Development District St. Lucie 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 Waterstone Community Development District, St. Lucie County, Florida ("District") as of and for the fiscal year ended September 30, 2019, and the related notes to the financial statements, which collectively comprise the District's basic financial statements and have issued our opinion thereon dated January 23, 2020.
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.
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.
i?-¾M' ..
January 23, 2020

25

Grau & Associates
CERTlfIED   PUBLIC ACCOUNTANTS

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 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
Waterstone Community Development District St. Lucie County, Florida

We have examined Waterstone Community Development District, St. Lucie County, 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, 2019. 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 for the fiscal year ended September 30, 2019.

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 Waterstone Community Development District, St. Lucie County, Florida and is not intended to be and should not be used by anyone other than these specified parties.

January 23, 2020

Grau & Associates
CERTIFIED  PUBLIC ACCOUNTANTS

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

MANAGEMENT LETTER PURSUANT TO THE RULES OF THE AUDITOR GENERAL FOR THE STATE OF FLORIDA

To the Board of Supervisors
Waterstone Community Development District St. Lucie County, Florida

Report on the Financial Statements

We have audited the accompanying basic financial statements of Waterstone Community Development District ("District") as of and for the fiscal year ended September 30, 2019, and have issued our report thereon dated January 23, 2020.

Auditor's Responsibility

Except as discussed in the explanatory paragraphs, we conducted our audit in accordance with auditing standards generally accepted in the United States of America; Government Auditing Standards, issued by the Comptroller General of the United States; and Chapter 10.550, Rules of the Florida Auditor General. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.

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 A/CPA 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 January 23, 2020, 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.
Ill. 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 the District and the Auditor General of the State of Florida and is not intended to be and should not be used by anyone other than these specified parties.

We wish to thank Waterstone Community Development District, St. Lucie County, 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.

January 23, 2020

REPORT TO MANAGEMENT

CURRENT YEAR FINDINGS AND RECOMMENDATIONS

None.

PRIOR YEAR FINDINGS AND RECOMMENDATIONS

2009-02: Financial Condition Assessment 2010-02: Financial Condition Assessment 2011-04: Financial Condition Assessment 2012-04: Financial Condition Assessment 2013-03: Financial Condition Assessment 2014-01: Financial Condition Assessment 2015-01: Financial Condition Assessment 2016-01: Financial Condition Assessment 2017-01: Financial Condition Assessment 2018-01: Financial Condition Assessment

Current Status: Matter was resolved in the current fiscal year.

Ill. 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, 2018, except as noted above.

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, 2019.

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, 2019.

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, 2019. 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.

Sample
Waterstone
Community Development District Landowners Meeting Agenda

Thursday November 5, 2020
11:00 a.m.

2160 N.W. Reserve Park Trace Port St. Lucie, Florida

Call to Order

Election of a Chairman for the Purpose of Conducting the Landowners Meeting

Determination of Number of Voting Units Represented

Nominations for the Position of Supervisors

Casting of Ballots

Tabulation of Ballots and Announcement of Results

Adjournment

OFFICIAL BALLOT WATERSTONE
COMMUNITY DEVELOPMENT DISTRICT ST. LUCIE, FLORIDA
LANDOWNERS MEETING TUESDAY NOVEMBER 5, 2020

For Interval Elections (3 Supervisors): The two candidates receiving the most votes will each receive a four (4) year term; the recipient of the next highest vote count will receive a two (2) year term.

The undersigned certifies that they are the fee simple owner or proxy holder of the landowner (proxy form attached) of the land described in the attachment hereto, which land lies within the boundaries of the Waterstone Community DevelopmentDistrict;

***LEGAL DESCRIPTION OF PROPERTY ATTACHED***

and cast their vote(s) for the following:

NAME OF CANDIDATE	NUMBER OF VOTES
1. _	_	_	_	_	_	_	_	(Seat 2)	 	
2.	(Seat 3)	  	 3. 	(Seat 4)	 	

Dated: -	-	-	-

Signed: _ _ _ _ _ _ _ _ _
Name: - - - - - - - - - -

Sample
Landowner Proxy LandownersMeeting - November 5, 2020
WATERSTONE C OMMUNITYD EVELOPMENT DISTRICT ST. LUCIE C OUNTY, FLORIDA

NOW ALL MEN BY THESE PRESENTS, that the undersigned, the fee simple owner of the lands described herein, hereby constitutes and appoints:

Proxy Holder

for and on behalf of the undersigned, to vote as proxy at the meeting of the landowners of the Waterstone Community Development District to be held at 2160 NW Reserve Park Trace, Port St. Lucie, Florida. Port St. Lucie, Florida on November 5, 2020 at 11:00 a.m. and at any continuances or adjournments thereof, according to the number of acres of unplatted land and/or platted lots owned by the undersigned landowner which the undersigned would be entitled to vote if then personally present, upon any question, proposition, or resolution or any other matter or thing which may be considered at said meeting including, but not limited to, the election of members of the Board of Supervisors. Said Proxy Holder may vote in accordance with their discretion on all matters not known or determined at the time of solicitation of this proxy, which may legally be considered at said meeting.

Any proxy heretofore given by the undersigned for said meeting is hereby revoked. This proxy is to continue in full force and effect from the date hereof until the conclusion of the annual meeting and any adjournment or adjournments thereof, but may be revoked at any time by written notice of such revocation presented at the annual meeting prior to the Proxy Holder exercising the voting rights conferred herein.

Printed Name of Fee Simple Landowner

Signature of Fee Simple Landowner	Date

Parcel Description	Acreage	Authorized Votes*

[Insert above the street address of each parcel, the legal description of each parcel, or the tax identification number of each parcel. If more space is needed, identification of Parcels owned may be incorporated by reference to an attachment hereto.]

Total Number of Authorized Votes:

*Pursuant to section 190.006(2)(b), Florida Statutes (2004), a fraction of an acre is treated as one (1) acre entitling the landowner to one vote with respect thereto.

If the fee simple landowner is not an individual, and is instead a corporation, limited liability company, limited partnership or other entity, evidence that the individual signing on behalf of the entity has the authority to do so should be attached hereto. (e.g., bylaws, corporate resolut ion, etc.)

INSTRUCTIONS RELATING TO LANDOWNERS MEETING OF THE
WATERSTONE COMMUNITY DEVELOPMENT DISTRICT FOR THE ELECTION OF SUPERVISORS
DATE OF LANDOWNERS MEETING: NOVEMBER 5, 2020 TIME: 11:00 A.M.
LOCATION: 2160 NW RESERVE PARK TRACE, PORT ST. LUCIE, FLORIDA
Pursuant to Chapter 190, Florida Statutes, after a Community Development District ("District") has been established and the landowners have held their initial election, there shall be a subsequent landowner s' meeting for the purpose of electing members of the Board of Supervisors every two years until the District qualifies to have its board members elected by the qualified electors of the district. The following instructions on how all landowners may participate in the election is intended to comply with Section 190.006(2)(b), Florida Statutes, as amended by Chapter 2004-353, Laws of Florida.

A landowner may vote in person at the Landowner's Meeting, or the landowner may nominate a proxy holder to vote at the meeting in place of the landowner. Whether in person or by proxy, each landowner shall be entitled to cast one vote per acre of land owned by him or her and located within the District, for each person that the landowner desires to elect to a position on the Board of Supervisors that is open for election for the upcoming term (three (3) seats on the Board will be up for election). A fraction of an acre shall be treated as one (1) acre, entitling the landowner to one vote with respect thereto. Please note that a particular real property is entitled to only one vote for each eligible acre of land or fraction thereof; therefore, two or more people who own real property in common, that is one acre or less, are together entitled to only one vote for that real property.

At the Landowners Meeting , the first step is to elect a chair for the meeting, who may be any person present at the meeting. The landowners' shall also elect a secretary for the meeting who may be any person present at the meeting. The secretary shall be responsible for the minutes of the meeting. The chair shall conduct the nominations and the voting. If the chair is a landowner or proxy holder of a landowner, he or she may nominate candidates and make and second motions. Candidates must be nominated and then shall be elected by a vote of the landowners. Nominees may be elected only to a position on the Board of Supervisors that is open for election for the upcoming term. The two candidates receiving the highest number of votes shall be elected for a term of four (4) years, and the remaining c ndidate elected shall serve for a two (2) year term. The term of office for each successful candidate shall commence upon election. Thereafter, there shall be an election of supervisors for the District every two (2) years in November on a date established by the Board of Supervisors upon proper notice until the District qualifies to have its board members elected by the qualified electors of the District.

A proxy is available upon request. To be valid, each proxy must be signed by one of the legal owners of the property for which the vote is cast and must contain the typed or printed name of the individual who signed the proxy; the street address, legal description of the property or tax parcel identification number; and the number of authorized votes. If the proxy authorizes more than one vote, each property must be listed and the number of acres of each property must be included. The signature on a proxy does not need to be notarized.

	Waterstone		
	Community Development District		
	Check Register Summary		
	May 7, 2020		

Check Date	
Check#	
Total Amount	
10/1/2019	691-693	$	4,412.08	
10/8/2019	694	$	660.00	
10/18/2019	695-696	$	3,343.45	
10/24/2019	697-698	$	81.67	
11/5/2019	699-700	$	1,367.21	
11/8/2019	701-702	$	4,789.51	
11/13/2019	703-704	$	8,456.67	
11/14/2019	705	$	3,000.00	
11/20/2019	706-707	$	1,344.95	
11/25/2019	708	$	3,000.00	
12/5/2019	709-711	$	7,190.90	
12/10/2019	712	$	181.00	
12/16/2019	713	$	84.95	
12/18/2019	714-716	$	9,845.00	
12/20/2019	717	$	2,775.00	
1/7/2020	718-721	$	8,735.58	
1/10/2020	722-724	$	7,615.49	
1/27/2020	725-726	$	2,147.56	
2/5/2020	727-728	$	2,605.07	
2/6/2020	729-730	$	3,221.79	
2/7/2020	731	$	3,500.00	
2/11/2020	732	$	7,542.51	
3/1/2020	733-735	$	5,864.77	
3/6/2020	736-738	$	7,201.88	
3/11/2020	739	$	257.57	
3/20/2020	740-743	$	10,555.00	
3/27/2020	744-745	$	1,955.11	
4/8/2020	746-750	$	10,756.21	
Total		$	122,490.93	

CHECK	VEND#	.....INVOICE........EXPENSED TO...		VENDOR NAME DATE			DATE	INVOICE	YRMO	DPT ACCT# SUB	SUBCLASS

STATUS

AMOUNT	....CHECK.....
AMOUNT	#

10/01/19 00030

9/23/19 45272-79 201909 320-54100-43000
ELECTRIC 8/22-9/23/19

*	1,192.21

10/01/19 00004

10/01/19
10/01/19
10/01/19

174
OCT 19-
174
OCT 19-
174

FPL
201910 310-51300-34000
MGMT FEE
201910 310-51300-35100
COMPUTER TIME
201910 310-51300-31300

1,192.21 000691
- - - - - - - - - - - - - - -
*	2,575.00
*	83.33
*	333.33

OCT 19- DISSEMINATION

10/01/19
10/01/19
10/01/19
10/01/19

174
OCT 19-
174
OCT 19-
174
OCT 19-
174
OCT 19-

201910 310-51300-35110
WEBSITE ADMIN
201910 310-51300-51000
OFFICE SUPPLIES
201910 310-51300-42000
POSTAGE
201910 310-51300-42500
COPIES

*	83.33
*	3.00
*	29.10
*	19.05

GMS - SO FLORIDA, LLC

10/01/19	00028	9/18/19	

10/08/19	
00034	
9/30/19	

10/18/19	
00033	
10/07/19	

10/18/19	
00003	
12/11/18	
	12/11/18	
	12/11/18	
	12/11/18	

11921-34 201909 320-54100-43100
WATER/SEWER 8/12-9/16/19

-   -   -   -   -   -   -   -   - -
*	93.73

3,126.14 000692

10/24/19 00028

ST LUCIE COUNTY UTILITIES
17557	201909 310-51300-31500
LEGAL SV THRU 9/15/19
STRALEY ROBIN VERICKER
5277	201909 310-51300-31100
ENGINEERING THRU 9/27/19
ALVAREZ ENGINEERS
34464444 201909 310-51300-42000
INV#6-394-74085
34464444 201909 310-51300-42000
INV#6-403-61230
34464444 201909 310-51300-42000
INV#6-353-78450
34464444 201909 310-51300-42000
COLLECTION AGENCY FEES
FEDEX
10/16/19 11921-34 201910 320-54100-43100
WATER 9/16-10/14/19

93.73 000693

- - -

-  -	- - - - - - - - - -
*	660.00
660.00 000694
- - - - - - - - - - - - - - -
*	3,151.50
3,151.50 000695
- - - - - - - - - - - - - - -
*	87.16
*	48.59
*	32.63
*	23.57
191.95 000696
- - - - - - - - - - - - - - -
*	81.67

ST LUCIE COUNTY UTILITIES	81.67 000697

WATS WATERSTONE	TCESSNA

	DATE	INVOICE	YRMO  DPT ACCT# SUB	SUBCLASS			AMOUNT	#	
00005	9/04/19	00036175 201909 310-51300-48000
NOTIVE OF MEETINGS	*	131.67			
	9/04/19	00036175 201909 310-51300-48000
REVERSE APRIL AD	*	125.40-			
	9/04/19	00036175 201909 310-51300-48000	V	131.67-			
9/04/19	NOTIVE OF MEETINGS
00036175 201909 310-51300-48000	V	125.40
REVERSE APRIL AD	

CHECK VEND#	.....INVOICE........EXPENSED TO...	VENDOR NAME DATE
10/24/19

STATUS

AMOUNT

....CHECK.....

TREASURE COAST NEWSPAPERS

11/05/19	00002	10/01/19	74314
SPECIAL	

11/05/19	
00030	
10/23/19	
45272-79	

201910 310-51300-54000
DISTRICT FEE FY20

- - - - - - - - - - -
*	175.00

.00 000698

DEPARTMENT OF ECONOMIC OPPORTUNITY
201910 320-54100-43000
ELECTRIC 9/23-10/23/19

175.00 000699

- -

-   -    -  -   -	- - - - - - - -
*	1,192.21

- - - - - - - - - - - - -
11/08/19 00004	11/01/19 175
NOV 19-
11/01/19 175
NOV 19-
11/01/19 175

FPL
201911 310-51300-34000
MGMT FEE
201911 310-51300-35100
COMPUTER TIME
201911 310-51300-31300

1,192.21 000700

- -

-  -  -	- - - - - - - - - -
*	2,575.00
*	83.33
*	333.33

NOV 19- DISSEMINATION

11/01/19 175
NOV 19-
11/01/19 115
NOV 19-
11/01/19 175
NOV 19-
11/01/19 175
NOV 19-
11/01/19 175
NOV 19-

201911 310-51300-35110
WEBSITE ADMIN
201911 310-51300-51000
OFFICE SUPPLIES
201911 310-51300-42000
POSTAGE
201911 310-51300-42500
COPIES
201911 310-51300-41000
TELEPHONE

*	83.33
*	15.00
*	28.22
*	29.70
*	3.60

GMS - SO FLORIDA, LLC
11/08/19 00034	10/31/19 17664	201910 310-51300-31500
LEGAL SV THRU 10/31/19
STRALEY ROBIN VERICKER

11/13/19	00005	9/04/19	

11/13/19	
00037	
7/31/19	

00036175 201909 310-51300-48000
NOTICE OF MEETINGS
TREASURE COAST NEWSPAPERS
1815	201907 320-54100-46800
JUL 19- MITIGATION

3,151.51 000701

-	-

-   -   -   -   -   -	-	- - - - - -
*	1,638.00
1,638.00 000702
- - - - - - - - - - - - - - -
*	131.67
131.67 000703
- - - - - - - - - - - - - - -
*	2,775.00

WATS WATERSTONE	TCESSNA

CHECK VEND#	.....INVOICE..... ...EXPENSED TO...		VENDOR NAME DATE		DATE	INVOICE	YRMO	DPT ACCT# SUB	SUBCLASS

		8/28/19	
		9/26/19	

11/14/19	
00036	
10/01/19	

11/20/19	
00033	
11/13/19	

11/20/19	
00028	
11/13/19	

11/25/19	
00036	
11/01/19	

12/05/19	
00030	
11/21/19	

1844	201908 320-54100-46800
AUG 19- MITIGATION
1871	201909 320-54100-46800
SEP 19- MITIGATIN

STATUS

*
*

AMOUNT	....CHECK.....
AMOUNT	#
2,775.00
2,775.00

ECOTECH ENVIRONMENTAL LLC
9829	201910 320-54100-46200
OCT 19- LAWN MAINT

- - - - - - - - - - -

8,325.00
-   -   -  -	000704	

3,000.00
-   -   -   -	
000705	

1,260.00	
000706	

84.95	
000707	

3,000.00
-   -   -   -  -	
000708	

1,184.16	
000709	

*	3,000.00

ROBERTSON'S LAWNS INC
5329	201910 310-51300-31100
ENGINEERING THRU 11/8/19

- - - - - - - - - - -
*	1,260.00

ALVAREZ ENGINEERS
11921-34 201911 320-54100-43100
WATER 10/14-11/11/19

-   -   -   -   -   -  -  -  - -
*	84.95

ST LUCIE COUNTY UTILITIES
9919	201911 320-54100-46200
NOV 19- LAWN MAIN

- - - - - - - - - -
*	3,000.00

ROBERTSON'S LAWNS INC
45272-79 201911 320-54100-43000
ELECTRIC 10/23-11/21/19

-   -   -   -   -  -  -   -   - -
*	1,184.16

- - - - - - - - - -
12/05/19 00004	12/01/19 176
DEC 12/01/19 176
DEC 12/01/19 176

	12/01/19	
	12/01/19	
	12/01/19	

12/05/19 00034	
11/25/19	

12/10/19 00030	
12/06/19	

DEC
176
DEC 176
DEC 176
DEC

FPL
201912 310-51300-34000
19- MGMT FEE
201912 310-51300-35100
19- COMPUTER TIME
201912 310-51300-31300
19- DISSEMINATION
201912 310-51300-35110
19- WEBSITE ADMIN
201912 310-51300-42000
19- POSTAGE
201912 310-51300-42500
19- COPIES

- - - - - - - - - - - - - - -
*	2,575.00
*	83.33
*	333.33
*	83.33
*	4.60
*	.15

GMS - SO FLORIDA, LLC
17752	201911 310-51300-31500
LEGAL SV THRU 11/15/19
STRALEY ROBIN VERICKER
3139609	201912 320-54100-43000
GUARANTEE DEPOSIT

3,079.74 000710
- - - - - - - - - - - - - - -
*	2,927.00
2,927.00 000711
- - - - - - - - - - - - - - -
*	46.00

WATS WATERSTONE	TCESSNA

AP300R	YEAR-TO-DATE ACCOUNTS PAYABLE PREPAID/COMPUTER CHECK REGISTER
***   CHECK DATES 09/18/2019 - 04/20/2020 ***	WATERSTONE - GENERAL FUND
BANK A WATERSTONE - GENERAL

RUN	4/20/20	PAGE	4

CHECK VEND#	.....INVOICE........EXPENSED TO...		VENDOR NAME DATE		DATE	INVOICE	YRMO	DPT ACCT# SUB	SUBCLASS
12/06/19 6014353	201912 320-54100-43000
GUARANTEE DEPOSIT
12/06/19 8610863	201912 320-54100-43000
GUARANTEE DEPOSIT
12/06/19 9379355	201912 320-54100-43000
GUARANTEE DEPOSIT
12/06/19 9802460	201912 320-54100-43000
GUARANTEE DEPOSIT

STATUS

*
*
*
*

AMOUNT

25.00
25.00
60.00
25.00

....CHECK.....
AMOUNT	#

FPL
12/16/19 00028	12/11/19 11921-34 201912 320-54100-43100
WATER 11/11-12/9/19
ST LUCIE COUNTY UTILITIES

12/18/19	00037	12/02/19	

12/18/19	
00015	
12/02/19	

12/18/19	
00036	
12/01/19	
		12/17/19	

12/20/19	
00037	
10/29/19	

1/07/20	
00030	
12/21/19	
		12/21/19	

1/07/20	
00004	
1/01/20	
		1/01/20	

1940	201912 320-54100-46800
DEC 19 - MITIGATION

*	84.95
- - - - - - - - - -
*	2,775.00

181.00 000712

84.95 000713

ECOTECH ENVIRONMENTAL LLC
18921	201912 310-51300-32200
AUDIT PROGRESS FY 09/2019
GRAU & ASSOCIATES
9994	201912 320-54100-46200
DEC 19 - LANDSCAPE
10079	201912 320-54100-46200
MOWED PONDS/BERMS
ROBERTSON'S LAWNS INC
1909	201910 320-54100-46800
OCT 19 - MITIGATION
ECOTECH ENVIRONMENTAL LLC
12/6-12/ 201912 320-54100-43000
ELECTRIC 12/6-12/21/19
12/6-12/ 201912 320-54100-43001
ELECTRIC 12/6-12/21/19

2,775.00 000714

-

-   -   -   -   -   -   -   -   -   - -  -	- -
*	1,000.00
1,000.00 000715
- - - - - - - - - - - - - - -
*	3,000.00
*	3,070.00

- - -

6,070.00 000716
-	- - - - - - - - - - -
*	2,775.00
2,775.00 000717
- - - - - - - - - - - - - - -
*	1,193.34
*	122.30

1/01/20

177
JAN 177
JAN 177

FPL
202001 310-51300-34000
20 - MANAGEMENT FEES 202001 310-51300-35100
20 - COMPUTER TIME
202001 310-51300-31300

1,315.64 000718

- -

-   -   -   -   -   -   -   -   -   -   -   -	-
*	2,575.00
*	83.33
*	333.33

JAN 20 - DISSEMINATION

1/01/20

177

202001 310-51300-35110

*	83.33

JAN 20 - WEBSITE ADM

WATS WATERSTONE

TCESSNA

CHECK VEND#	.....INVOICE........EXPENSED TO...		VENDOR NAME DATE		DATE	INVOICE	YRMO  DPT ACCT# SUB	SUBCLASS
1/01/20 177	202001 310-51300-42000
JAN 20 - POSTAGE
1/01/20 177	202001 310-51300-42500
JAN 20 - COPIES

STATUS

*
*

AMOUNT

4.00
1. 50

....CHECK.....
AMOUNT	#

GMS - SO FLORIDA, LLC	3,080.49 000719

1/07/20 00034

12/23/19 17846	201912 310-51300-31500
LEGAL SV THRU 12/15/19

*	339.45

STRALEY ROBIN VERICKER

1/07/20	00031	10/14/19	209	201910 310-51300-31300
FY19/20 ANNUAL DISCLOSURE	

1/10/20	
00037	
12/31/19	
1961	201912 320-54100-46800
DEC 19- MITIGATION MAINT
ECOTECH ENVIRONMENTAL LLC	

*
LERNER REPORTING SERVICES, INC.
*

4,000.00

2,775.00

339.45 000720

4,000.00 000721

2,775.00 000722

1/10/20	00030	1/06/20	34306-12
DEPOSIT	201912 320-54100-43001
GUARANTEE	*	213.00	
		1/06/20	34306-12 201912 320-54100-43001
ELECTRIC 12/6-12/26/19
FPL	*	127.49	

1/10/20	00015	1/03/20	

1/27/20	
00028	
1/15/20	

1/27/20	
00034	
1/27/20	

2/05/20	
00030	
1/23/20	

19005	202001 310-51300-32200
AUDIT FY19 IN PROGRESS
GRAU & ASSOCIATES
11921-34 201912 320-54100-43100
WATER/SEWER 12/9-1/13/20

*	4,500.00

340.49	000723	

4,500.00	
000724	

167.11
-   -   -   -   -	
000725	

1,980.45
-   -   -   -   -	
000726	

1,188.48	
000727	

*	167.11

ST LUCIE COUNTY UTILITIES
17974	202001 310-51300-31500
LEGAL SV THRU 1/15/20

- - - - - - - - - -
*	1,980.45

STRALEY ROBIN VERICKER
45272-79 202001 320-54100-43000
ELECTRIC 12/21/19-1/23/20

-   -   -   -   -   -   -   -   -   -
*	1,188.48

-   -   -   -   -   -   -   -   -   -   - -  -	- - - - - - - - - - -

FPL

- - - - - - - - - - - - - - -

2/05/20 00004	2/01/20 178
FEB 20

202002 310-51300-34000
- MANAGEMENT FEES

*	2,575.00

2/01/20 178	202002 310-51300-35100
FEB 20  - COMPUTER TIME 2/01/20 178	202002 310-51300-35110
FEB 20 - WEBSITE ADM

*	83.33
*	83.33

WATS WATERSTONE	TCESSNA

DATE		DATE	
		2/01/20	
		2/01/20	
		2/01/20	

2/06/20	
00030	
1/23/20	
	1/23/20	
	1/23/20	
	1/23/20	
	1/23/20	
	1/27/20	

CHECK VEND#	.....INVOICE........EXPENSED TO...	VENDOR NAME
INVOICE	YRMO	DPT ACCT# SUB	SUBCLASS
178	202002 310-51300-42000
FEB 20 - POSTAGE
178	202002 310-51300-42500
FEB 20 - COPIES
178	202002 310-51300-31300

- SO	FLORIDA,	LLC			1,416.59	000728	
	*	12.25			
	*	12.25			
	*	38.08			
	*	12.25			
	*	32.41			
	*	114.55			

RF - DISSEMINATION OCT-JA

STATUS

*
*
*

AMOUNT

6.00
2.25
1,333.32-

....CHECK.....
AMOUNT	#

GMS
41077-25 202001 320-54100-43001
ELECTRIC 12/21-1/23/20
48211-22 202001 320-54100-43001
ELECTRIC 12/21-1/23/20
62143-32 202001 320-54100-43001
ELECTRIC 12/21-1/23/20
89028-45 202001 320-54100-43000
ELECTRIC 12/21-1/23/20
90367-22 202001 320-54100-43001
ELECTRIC 12/21-1/23/20
34306-12 202001 320-54100-43001
ELECTRIC 12/26-1/27/20

2/11/20 00017

FPL

2/06/20	00036	1/01/20	10075
JAN 20	

2/07/20	
00036	
1/01/20	
10163	

202001 320-54100-46200
- LAWN LANDS MAINT
ROBERTSON'S LAWNS INC
202001 320-54100-46200
JAN 20- BERM/POND MAINT
ROBERTSON'S LAWNS INC
1/24/20 5626681	202001 310-51300-32300
SERIES 2018B 1/1-12/31/20 1/24/20 5626886	202001 310-51300-32300
SERIES 2018A 1/1-12/31/20
US BANK

3/01/20	00037	1/31/20	1987
JAN 20	

3/01/20	
00036	
2/01/20	
10140	

202001 320-54100-46800
- MITIGATION MAINT
ECOTECH ENVIRONMENTAL LLC
202002 320-54100-46200
FEB 20- LAWN LANDSC MAINT

221.79 000729
- - - - - - - - - - - - - - -
*	3,000.00
3,000.00 000730
- - - - - - - - - - - - - - -
*	3,500.00
3,500.00 000731
- - - - - - - - - - - - - - -
*	3,501.88
*	4,040.63
7,542.51 000732
- - - - - - - - - - - - - - -
*	2,775.00
2,775.00 000733
- - - - - - - - - - - - - - -
*	3,000.00

3/01/20 00028

ROBERTSON'S LAWNS INC
2/12/20 11921-34 202001 320-54100-43100
WATER/SEWER 1/13-2/10/20

*	89.77

3,000.00 000734
- - - -

ST LUCIE COUNTY UTILITIES	89.77 000735

WATS WATERSTONE	TCESSNA

AP300R	YEAR-TO-DATE ACCOUNTS PAYABLE PREPAID/COMPUTER CHECK REGISTER
***   CHECK DATES 09/18/2019 - 04/20/2020 ***	WATERSTONE - GENERAL FUND
BANK A WATERSTONE - GENERAL

RUN	4/20/20	PAGE	7

CHECK DATE	VEND#	.....INVOICE........EXPENSED TO...
DATE	INVOICE	YRMO	DPT ACCT# SUB	SUBCLASS	VENDOR	NAME	STATUS	AMOUNT	....CHECK.....
AMOUNT	#	
3/06/20	00030	2/25/20
2/25/20	45272-79 202002 320-54100-43000
ELECTRIC 9/23-10/23/19
45272-79 202002 320-54100-43000
ELECTRIC 10/23-11/21/19	*
*	21.36
414.92	
		2/25/20
2/25/20	45272-79 202002 320-54100-43000
ELECTRIC 11/21-12/21/19
45272-79 202002 320-54100-43000
ELECTRIC 12/21-1/23/20	*
*	411.63
413.33	
		2/25/20	45272-79 202002 320-54100-43000	*	1,603.33	

ELECTRIC 1/23-2/21/20

FPL

2,864.57 000736

3/06/20 00004

3/01/20
3/01/20

179
MAR 20
179
MAR 20

202003 310-51300-34000
MANAGEMENT FEES 202003 310-51300-35100
COMPUTER TIME

*	2,575.00
*	83.33

3/01/20

179	202003 310-51300-35110
MAR 20 - WEBSITE ADM

*	83.33

3/01/20

179
MAR 20

202003 310-51300-42000
POSTAGE

*	7.15

3/01/20

179
MAR

202003 310-51300-42500
20 - COPIES

*	4.50

3/06/20 00034

GMS -    so
-   -   -   -   -   -     -     -   -   -   -   -   -   -   -   -
3/02/20 18095	202002 310-51300-31500
LEGAL SV THRU 02/15/2020

FLORIDA, LLC

*	1,584.00

2,753.31 000737

STRALEY ROBIN VERICKER	1,584.00 000738

3/11/20 00030	2/21/20	34306-12 202002 320-54100-43001	*	143.24	
		ELECTRIC 1/27-2/25/20			
	2/21/20	41077-25 202002 320-54100-43001	*	12.26	
		ELECTRIC 1/23-2/21/20			
	2/21/20	48211-22 202002 320-54100-43001	*	12.26	
		ELECTRIC 1/23-2/21/20			
	2/21/20	62143-32 202002 320-54100-43001
ELECTRIC 1/23-2/21/20	*	23.21	
	2/21/20	89028-45 202002 320-54100-43001
ELECTRIC 1/23-2/21/20	*	12.26	
	2/21/20	90367-22 202002 320-54100-43001	*	54.34	

ELECTRIC 1/23-2/21/20

FPL

257.57 000739

3/20/20 00038

3/18/20 115804	202001 320-54100-46300
1/21-3/23/20 14 PONDS

*	1,180.00

MALLARD ENVIRONMENTAL SRVS LLC	1,180.00 000740

WATS WATERSTONE	TCESSNA

CHECK VEND#	.....INVOICE..... ...EXPENSED TO...		VENDOR NAME	STATUS DATE		DATE	INVOICE	YRMO	DPT ACCT# SUB	SUBCLASS
3/20/20 00036	3/12/20 10235	202003 320-54100-46200	*
BERM MOWING/POND MOW MAIN
3/12/20 10235	202003 320-54100-46200	*
FERTILIZTION/PEST CONT

AMOUNT

3,000.00
600.00

....CHECK.....
AMOUNT	#

3/27/20 00030

3/23/20
3/23/20
3/23/20
3/23/20
3/23/20
3/25/20
3/25/20

ROBERTSON'S LAWNS INC

3/20/20	00037	3/02/20	2011
FEB 20	

3/20/20	
00036	
3/01/20	
10205	

202002 320-54100-46800
- MITIGATION MAINT
ECOTECH ENVIRONMENTAL LLC
202003 320-54100-46200
MAR 20 - LAWN LNDSCP MAIN
ROBERTSON'S LAWNS INC
41077-25 202003 320-54100-43001
PUMP B 2/21-3/23/20
45272-79 202003 320-54100-43000
STREETL 2/21-3/23/20
48211-22 202003 320-54100-43001
WELL #2 2/21-3/23/20
89028-45 202003 320-54100-43001
PUMP C 2/21-3/23/20
90367-22 202003 320-54100-43001
WATERST BLVD 2/21-3/23/20 34306-12 202003 320-54100-43001
PUMP B 2/25-3/25/20
62143-32 202003 320-54100-43001
GUARD 2/21-2/23/20

3,600.00 000741

- - - - -

- - - - - - - - - -
*	2,775.00
2,775.00 000742
- - - - - - - - - - - - - - -
*	3,000.00
3,000.00 000743
- - - - - - - - - - - - - - -
*	12.26
*	1,603.33
*	12.26
*	12.26
*	72.29
*	107.76
*	23.70

3/27/20 00028

4/08/20 00033

FPL
3/18/20 11921-34 202003 320-54100-43100
ELECTRIC 2/10-3/16/20
ST LUCIE COUNTY UTILITIES
3/10/20 5441	202002 310-51300-31100
ENGINEERING SV THRU 2/29

1,843.86 000744
- - - - - - - - - - - - - - -
*	111.25
111.25 000745
- - - - - - - - - - - - - - -
*	367.50

4/08/20 00037

ALVAREZ ENGINEERS
3/31/20 2043	202003 320-54100-46800
MAR 20-MITIGATION

*	2,775.00

367.50 000746

ECOTECH ENVIRONMENTAL LLC	2,775.00 000747

4/08/20	00004	4/01/20	180	202004 310-51300-34000	*	2,575.00	
		4/01/20	180	202004 310-51300-35100	*	83.33	

CHECK VEND#	.....INVOICE........EXPENSED TO...		VENDOR NAME DATE		DATE	INVOICE	YRMO  DPT ACCT# SUB	SUBCLASS

STATUS

AMOUNT

....CHECK.....
AMOUNT	#

	4/01/20	180
APR 20-	202004 310-51300-35110				*	83.33		
	4/01/20	180
APR 20-	202004 310-51300-42000				*	5.15		
	4/01/20	180
APR 20-	202004 310-51300-42500
GMS	
-	
SO FLORIDA,	
LLC	*	.90	
2,747.71	
000748	
4/08/20	00036	3/30/20
4/01/20	10286
MAR 20-
10274
APR 20-	202003 320-54100-46200
202004 320-54100-46200				*
*	1,800.00
3,000.00			

WEBSITE ADMIN POSTAGE COPIES

MOWING BERM/POND LANDSCAPE SV

ROBERTSON'S LAWNS INC

4,800.00 000749

4/08/20 00034

4/03/20 18197	202003 310-51300-31500
LEGAL SV THRU 3/15/20

*	66.00

STRALEY ROBIN VERICKER	66.00 000750

TOTAL	FOR BANK A	122,490.93	
TOTAL	FOR REGISTER	122,490.93	

WATS WATERSTONE	TCESSNA

COMBINED  BALANCE SHEET
March 31, 2020

 	Major Funds	Total	

Governmental
 	General	Series 2018A/B	Funds	

ASSETS:

Cash

Investments:	$30,718		$30,718	
Reserve A		$273,200	$273,200	
Reserve B		$112,613	$112,613	
Revenue A		$9,715	$9,715	
TOTAL ASSETS	$30,718	$395,528	$426,246	

LIABILITIES:				
Accounts Payable	$5,009		$5,009	

TOTAL LIABILITIES	 	$5,009	$0	$5,009

FUND BALANCES:

Restricted:
Debt Service	$395,528	$395,528
Unassigned:
General Fund	$25,709	$25,709

TOTAL FUND BALANCES	 	$25,709	$395,528	$421,238

TOTAL LIABILITES AND
FUND BALANCES	$30,718	$395,528	$426,246

DESCRIPTION	ADOPTED BUDGET	PRORATED BUDGET THRU 03/31/20	ACTUAL THRU 03/31/20	
VARIANCE	

REVENUES:					
Maintenance Assessments-Direct	$352,040	$176,020	$79,370	($96,650)	
Miscellaneous Income	$0	$0	$0	$0	
TOTAL REVENUES	$352,040	$176,020	$79,370	($96,650)	

EXPENDITURES:					
Administrative					
Supervisor Fees	$4,800	$200	$200	$0	
Fica	$367	$15	$15	$0	
Engineering Fees	$3,000	$1,250	$1,628	($378)	
Arbitrage	$1,200	$0	$0	$0	
Dissemination Agent	$4,000	$4,000	$4,000	$0	
Attorney Fees	$20,000	$8,333	$8,535	($202)	
Annual Auditing	$5,800	$5,800	$5,500	$300	
Trustee Fees	$6,000	$6,000	$7,543	($1,543)	
Management Fees	$30,900	$12,875	$15,450	($2,575)	
Computer Time	$1,000	$417	$500	($83)	
Website Compliance	$1,000	$417	$500	($83)	
Telephone	$25	$10	$4	$7	
Postage	$100	$42	$79	($37)	
Printing & Binding	$200	$83	$57	$26	
Insurance	$5,922	$5,922	$5,922	$0	
Legal Advertising	$1,000	$417	$0	$417	
Other Current Charges	$600	$250	$296	($46)	
Office Supplies	$25	$10	$18	($8)	
Dues, Licenses & Subscriptions	$175	$175	$175	$0	
Capital Outlay	$750	$313	$0	$313	
TOTAL ADMINISTRATIVE	$86,864	$46,529	$50,421	($3,892)	

Field					
Field Management	$12,000	$5,000	$0	$5,000	
Electric Streetlights	$20,000	$8,333	$9,226	($893)	
Electric Pumps/Well/Guardhouse	$0	$0	$1,364	($1,364)	
Water/Sewer	$0	$0	$620	($620)	
Landscape Maintenance	$100,000	$41,667	$29,970	$11,697	
Tree Service	$30,000	$12,500	$0	$12,500	
Lake Maintenance	$19,140	$7,975	$1,180	$6,795	
Irrigation Maintenance	$6,000	$2,500	$0	$2,500	
Repairs and Maintenance	$10,000	$4,167	$0	$4,167	
Street Maintenance	$10,000	$4,167	$0	$4,167	
Sign Maintenance	$2,500	$1,042	$0	$1,042	
Gate & Fence Maintenance	$2,500	$1,042	$0	$1,042	
Preserve Maintenance	$21,975	$9,156	$16,650	($7,494)	
Contingency	$5,000	$2,083	$0	$2,083	
TOTAL FIELD	 	$239,115 	 	$99,631 	 	$59,009 	 	$40,622 	

    

 DESCRIPTION	

ADOPTED BUDGET

PRORATED BUDGET	ACTUAL
THRU 03/31/20	THRU 03/31/20	VARIANCE

Recreational Building		
Security System	$2,600	$1,083	$0	$1,083	
Cable & Internet	$1,200	$500	$0	$500	
Electric	$18,000	$7,500	$0	$7,500	
Water/Sewer	$6,000	$2,500	$0	$2,500	
Insurance	$10,000	$4,167	$0	$4,167	
Pool, Heated Seasonally (Solar)	$12,000	$5,000	$0	$5,000	
Solar System Maintenance	$1,000	$417	$0	$417	
Equipment Maintenance	$8,000	$3,333	$0	$3,333	
Janitorial Maintenance	$12,000	$5,000	$0	$5,000	
Sporting Courts Maintenance	$6,000	$2,500	$0	$2,500	
Playground Maintenance	$1,500	$625	$0	$625	
Pest Control	$2,000	$833	$0	$833	
Licenses, Permits, Fees	$1,000	$417	$0	$417	
Contingency	$5,000	$2,083	$0	$2,083	
TOTAL FIELD	
 	$86,300	$35,958	 	$0	$35,958 	
TOTAL EXPENDITURES	 	$412,279	$182,119	 	$109,430	$72,688 	
Excess (deficiency) of revenues				
over (under) expenditures	 	($60,239)	($6,099)	($30,060)	($23,961)	
NET CHANGE IN FUND BALANCE	 	($60,239)	($6,099)	($30,060)	($23,961)	
FUND BALANCE - Beginning	$60,239		$55,769		
FUND BALANCE - Ending	$0		$25,709		

TOTAL EXPENDITURES

Excess (deficiency) of revenues	 	$4,673	 	$0	$0	$0	
over (under) expenditures	 	$0	 	$0	$300	$300	
NET CHANGE IN FUND BALANCE	 	$0	 	$0	$300	$300	
FUND BALANCE· Beginning	$385,229	$395,229	
FUND BALANCE - Ending	$385,229	$395,528	

Waterstone
COMMUNITY DEVELOPMENT DISTRICT DEBT SERVICE FUND • SERIES 2018A/B
Statement of Revenues, Expenditures and Changes in Fund Balance For the Period Ended March 31, 2020

 DESCRIPTION			ADOPTED
 	BUDGET		PRORATED BUDGET THRU 03/31/20	ACTUAL THRU 03/31/20		
 	VARIANCE		
REVENUES:							
Interest Earned		$0	$0	$300		$300	
Special Assessments - Direct		$4,673	$0	$0		$0	
TOTAL REVENUES		 	$4,673 	 	$0 	 	$300 		 	$300 	
EXPENDITURES:							
Series 2018 A							
Interest - 11/1		$2,297	$0	$0		$0	
Interest - 5/1		$2,376	$0	$0		$0