AVENIR
COMMUNITY DEVELOPMENT DISTRICT CITY OF PALM BEACH GARDENS, FLORIDA FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023

AVENIR COMMUNITY DEVELOPMENT DISTRICT CITY OF PALM BEACH GARDENS, FLORIDA

TABLE OF CONTENTS

Page

INDEPENDENT AUDITOR’S REPORT	1-2	
MANAGEMENT’S DISCUSSION AND ANALYSIS	3-6	
BASIC FINANCIAL STATEMENTS		
Government-Wide Financial Statements:		
Statement Net Position	7	
Statement of Activities	8	
Fund Financial Statements:		
Balance Sheet – Governmental Funds	9	
Reconciliation of the Balance Sheet – Governmental Funds		
to the Statement of Net Position	10	
Statement of Revenues, Expenditures and Changes in Fund Balances –
Governmental Funds	
11	
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of Activities	
12	
Notes to Financial Statements	13-23	
REQUIRED SUPPLEMENTARY INFORMATION		
Schedule of Revenues, Expenditures and Changes in Fund Balance –
Budget and Actual – General Fund	
24	
Notes to Required Supplementary Information	25	
OTHER INFORMATION		
Data Elements required by FL Statute 218.39 (3) (c)	26	
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS	

27-28	
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE WITH THE REQUIREMENTS OF SECTION 218.415, FLORIDA STATUTES, REQUIRED BY RULE 10.556(10)
OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA	

29	
MANAGEMENT LETTER REQUIRED BY CHAPTER 10.550 OF THE RULES OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA	
30-31	

INDEPENDENT AUDITOR’S REPORT
To the Board of Supervisors
Avenir Community Development District City of Palm Beach Gardens, Florida

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

Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities and each major fund of Avenir Community Development District, City of Palm Beach Gardens, Florida (“District”) as of and for the fiscal year ended September 30, 2023, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and each major fund of the District as of September 30, 2023, and the respective changes in financial position thereof for the fiscal year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the District and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements
The District’s management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America; and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the District’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the District’s internal control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the District’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and budgetary comparison information be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information Included in the Financial Report
Management is responsible for the other information included in the financial report. The other information comprises the information for compliance with FL Statute 218.39 (3) (c) but does not include the financial statements and our auditor's report thereon. Our opinions on the financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated July 26, 2024, on our consideration of the District’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the District’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District’s internal control over financial reporting and compliance.

July 26, 2024

MANAGEMENT’S DISCUSSION AND ANALYSIS

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

FINANCIAL HIGHLIGHTS

The assets of the District exceeded its liabilities at the close of the most recent fiscal year resulting in a net position balance of $36,065,658.

The change in the District’s total net position in comparison with the prior fiscal year was $8,013,686, an increase. The key components of the District’s net position and change in net position are reflected in the table in the government-wide financial analysis section.

At September 30, 2023, the District’s governmental funds reported combined ending fund balances of
$67,861,880, an increase of $36,937,089 in comparison with the prior fiscal year. The total fund balance is restricted for debt service and capital projects, non-spendable for deposits, and the remainder is unassigned fund balance which is available for spending at the District’s discretion.
OVERVIEW OF FINANCIAL STATEMENTS

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

The government-wide financial statements are designed to provide readers with a broad overview of the District’s finances, in a manner similar to a private-sector business.
The statement of net position presents information on all the District’s assets and liabilities with the residual amount being reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the District is improving or deteriorating.

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

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

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 outflow of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a District’s near-term financing requirements.

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

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

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

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

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

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

	NET POSITION
SEPTEMBER 30	
,		
		2023	2022	
Current and other assets		$	75,298,720	$	34,835,378	
Capital assets, net of depreciation		223,289,435	180,423,382	
Total assets		298,588,155	215,258,760	
Current liabilities		12,838,255	7,721,850	
Long-term liabilities		249,684,242	179,484,938	
Total liabilities		262,522,497	187,206,788	
Net position				
Net investment in capital assets	20,835,444	27,261,566	
Restricted	14,665,492	617,150	
Unrestricted	564,722	173,256	
Total net position	$	36,065,658	$	28,051,972	

GOVERNMENT-WIDE FINANCIAL ANALYSIS (Continued)

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

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

The District’s net position increased during the most recent fiscal year. The majority of the increase represents the extent to which ongoing program revenues exceeded the cost of operations and depreciation expense.
Key elements of the change in net position are reflected in the following table:

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

Revenues: Program revenues
Charges for services	$	29,683,019	$	5,689,418	
Operating grants and contributions	6,627,306	12,343,654	
Capital grants and contributions	2,225,860	-	
General revenues
Unrestricted investment earnings	
39,833	
988	
Miscellaneous	42,542	-	
Total revenues	38,618,560	18,034,060	
Expenses:
General government	
201,226	
429,523	
Maintenance and operations	3,580,101	2,657,095	
Recreation	1,784,684	-	
Conveyance of capital assets	11,221,525	-	
Interest	12,020,513	9,476,585	
Cost of issuance	1,796,825	-	
Total expenses	30,604,874	12,563,203	
Change in net position	8,013,686	5,470,857	
Net position - beginning	28,051,972	22,581,115	
Net position - ending	$	36,065,658	$	28,051,972	

As noted above and in the statement of activities, the cost of all governmental activities during the fiscal year ended September 30, 2023 was $30,604,874. The costs of the District’s activities were primarily funded by program revenues, which include assessments, landowner contributions, and improvement fees. In total, revenues increased over the prior fiscal year mainly as a result of an in prepaid assessments and improvement fees received in the current year. In total, expenses including depreciation, increased from the prior fiscal year, the majority of the increase was the result of the conveyance of capital assets in the current year, and increase in interest expense associated with Series 2023 Bonds issued in the current year, and an increase in maintenance and recreation expenses in the current year.

An operating budget was adopted and maintained by the governing board for the District pursuant to the requirements of Florida Statutes. The budget is adopted using the same basis of accounting that is used in preparation of the fund financial statements. The legal level of budgetary control, the level at which expenditures may not exceed budget, is in the aggregate. Any budget amendments that increase the aggregate budgeted appropriations must be approved by the Board of Supervisors. The general fund budget for the fiscal year ended September 30, 2023 was amended to increase revenues by $515,077 and increase appropriations by $452,840.
CAPITAL ASSETS AND DEBT ADMINISTRATION

Capital Assets

At September 30, 2023, the District had $225,371,585 invested in capital assets for its governmental activities. In the government-wide financial statements depreciation of $2,082,150 has been taken, which resulted in a net book value of $223,289,435. More detailed information about the District’s capital assets is presented in the notes of the financial statements.
Capital Debt
At September 30, 2023, the District had $255,669,000 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

Subsequent to fiscal year end, the District issued $3,000,000 of Series 2024A Bonds and $9,385,000 of Series 2024B Bonds. The Series 2024A Bonds consist of multiple term bonds with due dates ranging from May 1, 2031 to May 1, 2055 and fixed interest rates ranging from 4.875% to 6%. The Series 2024B Bonds are due May 1, 2055 and have a fixed interest rate of 6.25%. The Bonds were issued to finance the acquisition and construction of certain improvements for the benefit of the District.
The District anticipates an increase in general operations as the District is built out. 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 Avenir Community Development District’s management services at Special District Services, Inc., 2501A Burns Road, Palm Beach Gardens, Florida, 33410.

AVENIR COMMUNITY DEVELOPMENT DISTRICT CITY OF PALM BEACH GARDENS, FLORIDA STATEMENT OF NET POSITION
SEPTEMBER 30, 2023

	Governmental
	Activities		
ASSETS		
Cash	$	827,126	
Assessments receivable	28,218	
Landowner contributions receivable	295,000	
Deposits	555	
Restricted assets:		
Investments	74,147,821	
Capital assets:		
Nondepreciable	162,906,994	
Depreciable, net		60,382,441 	
Total assets		298,588,155 	

LIABILITIES		
Accounts payable	298,338	
Contracts and retainage payable	7,138,502	
Accrued interest payable	5,401,415	
Non-current liabilities:		
Due within one year	2,130,000	
Due in more than one year		247,554,242 	
Total liabilities		262,522,497 	

NET POSITION		
Net investment in capital assets	20,835,444	
Restricted for debt service	14,665,492	
Unrestricted		564,722 	
Total net position	 $	36,065,658 	

See notes to the financial statements

AVENIR COMMUNITY DEVELOPMENT DISTRICT CITY OF PALM BEACH GARDENS, FLORIDA STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023

Program Revenues

Net (Expense) Revenue and Changes in Net Position

Functions/Programs	Expenses Primary government:
Governmental activities:

Charges for Services

Operating Grants and Contributions

Capital Grants and Contributions

Governmental Activities

General government	$	201,226	$	201,226	$	295,000	$	-	$	295,000	
Maintenance and operations	3,580,101	3,296,726	-	2,225,860	1,942,485	
Recreation	1,784,684	-	-	-	(1,784,684)	
Conveyance of capital assets	11,221,525	-	-	-	(11,221,525)	
Interest on long-term debt	12,020,513	26,185,067	6,332,306	-	20,496,860	
Cost of issuance	1,796,825	-	-	-	(1,796,825)	
Total governmental activities	30,604,874	29,683,019	6,627,306	2,225,860	7,931,311	

General revenues:
Unrestricted investment earnings	39,833	
Miscellaneous		42,542 	
Total general revenues		82,375 	
Change in net position		8,013,686 	
Net position - beginning		28,051,972 	
Net position - ending	 $	36,065,658 	

See notes to the financial statements

BALANCE SHEET GOVERNMENTAL FUNDS SEPTEMBER 30, 2023

	Major Funds	

Total Governmental

	General	Debt Service	Capital Projects	Funds	
ASSETS
Cash	
$	827,126	
$	-	
$	-	
$	827,126	
Investments	-	19,779,068	54,368,753	74,147,821	
Assessments receivable	28,218	-	-	28,218	
Landowner contributions receivable	295,000	-	-	295,000	
Due from other funds	-	287,839	-	287,839	
Deposits	555	-	-	555	
Total assets	 $  1,150,899	$ 20,066,907	$ 54,368,753	$ 75,586,559 	

LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable	

$	298,338	

$	-	

$	-	

$	298,338	
Contracts and retainage payable	-	-	7,138,502	7,138,502	
Due to other funds	287,839	-	-	287,839	
Total liabilities	586,177	-	7,138,502	7,724,679	

Fund balances: Nonspendable:
Deposits	555	-	-	555	
Restricted for:					
Debt service	-	20,066,907	-	20,066,907	
Capital projects	-	-	47,230,251	47,230,251	
Unassigned	564,167	-	-	564,167	
Total fund balances	564,722	20,066,907	47,230,251	67,861,880	

Total liabilities and fund balances	
$  1,150,899	
$ 20,066,907	
$ 54,368,753	
$ 75,586,559	

See notes to the financial statements

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

Fund balance - governmental funds	$	67,861,880
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	225,371,585
Accumulated depreciation	   (2,082,150)    223,289,435
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.
Accrued interest payable	(5,401,415)
Bonds payable	 (249,684,242) (255,085,657)  Net position of governmental activities		$ 36,065,658

See notes to the financial statements

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

	Major Funds	

Total Governmental

General

Debt Service	Capital Projects

Funds

REVENUES		
Assessments	$  3,497,952	$ 26,185,067	$	-	$ 29,683,019	
Landowner contributions	295,000	-	56,123	351,123	
Interest	39,833	778,654	2,125,890	2,944,377	
Improvement fees	-	5,553,652	-	5,553,652	
Miscellaneous	42,542	-	43,847	86,389	
Total revenues	3,875,327	32,517,373	2,225,860	38,618,560	

EXPENDITURES
Current:
General government	201,226	-	-	201,226	
Maintenance and operations	2,023,876	-	-	2,023,876	
Recreation	1,258,759	-	-	1,258,759	
Debt service:
Principal	
-	
22,796,000	
-	
22,796,000	
Interest	-	10,195,736	-	10,195,736	
Cost of issuance	-	-	1,796,825	1,796,825	
Capital outlay	-	-	56,169,728	56,169,728	
Total expenditures	3,483,861	32,991,736	57,966,553	94,442,150	

Excess (deficiency) of revenues over (under) expenditures	

391,466	

(474,363)	

(55,740,693)	

(55,823,590)	

OTHER FINANCING SOURCES (USES)
Bond proceeds	

-	

12,706,483	

82,043,517	

94,750,000	
Original issue discount	-	-	(1,989,321)	(1,989,321)	
Total other financing sources (uses)	-	12,706,483	80,054,196	92,760,679	

Net change in fund balances	
391,466	
12,232,120	
24,313,503	
36,937,089	
Fund balances - beginning	173,256	7,834,787	22,916,748	30,924,791	

Fund balances - ending	
$	564,722	
$ 20,066,907	
$ 47,230,251	
$ 67,861,880	

See notes to the financial statements

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

Net change in fund balances - total governmental funds	$	36,937,089 Amounts reported for governmental activities in the statement of activities
are different because:
Governmental funds report capital outlays as expenditures, however, in the statement of activities, the cost of those assets is eliminated and capitalized
as capital assets.	56,169,728
Depreciation of capital assets is not recognized in the governmental fund financial statements, but is reported as an expense in the statement of
activities.	(2,082,150)
Repayment of long-term liabilities are reported as expenditures in the governmental fund financial statements, but such repayments reduce liabilities in the statement of net position and are eliminated in the statement
of activities.	22,796,000
Amortization of Bond discounts/premiums is not recognized in the governmental fund financial statements, but is reported as an expense in
the statement of activities.	(234,625)
Conveyance of previously capitalized infrastructure is shown on the
statement of activities but not on the fund financial statements.	(11,221,525)
Proceeds from the issuance of bonds are shown as other financing sources on the fund financial statements but amounts are shown as long
term debt on the government wide financial statements	(94,750,000)
In connection with the issuance of the Bonds, the original issue discount/premium is reported as a financing use/source when debt is first issued, whereas this amount is eliminated in the statement of activities and
reduces/increases long-term liabilities in the statement of net position.	1,989,321
The change in accrued interest on long-term liabilities between the current and prior fiscal years is recorded in the statement of activities, but not in
the governmental fund financial statements.			(1,590,152)  Change in net position of governmental activities		$		8,013,686

See notes to the financial statements

NOTES TO FINANCIAL STATEMENTS

NOTE 1 – NATURE OF ORGANIZATION AND REPORTING ENTITY

Avenir Community Development District ("District") was created on January 5, 2017, by Ordinance 17, 2016 of the City Council of the City of Palm Beach Gardens, Florida, pursuant to 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 (the "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, 2023, all of the Board members are associated with Avenir Holdings, LLC, the Landowner/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. There are no entities considered to be component units of the District; therefore, the financial statements include only the operations of the District.
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Government-Wide and Fund Financial Statements
The basic financial statements include both government-wide and fund financial statements.
The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the non-fiduciary activities of the primary government. For the most part, the effect of interfund activity has been removed from these statements.
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment; operating-type special assessments for maintenance and debt service are treated as charges for services and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Other items not included among program revenues are reported instead as general revenues.

Measurement Focus, Basis of Accounting and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Assessments are recognized as revenues in the year for which they are levied. Grants and similar items are to be recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures are recorded only when payment is due.
Assessments
Assessments are non-ad valorem assessments on certain land and all platted lots within the District. Assessments are levied each November 1 on property of record as of the previous January. The fiscal year for which annual assessments are levied begins on October 1 with discounts available for payments through February 28 and become delinquent on April 1. For debt service assessments, amounts collected as advance payments are used to prepay a portion of the Bonds outstanding. Otherwise, assessments are collected annually to provide funds for the debt service on the portion of the Bonds which are not paid with prepaid assessments.

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

The District reports the following major governmental funds:

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

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

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

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

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

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

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 Interlocal Cooperation Act;
Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency;
Interest bearing time deposits or savings accounts in qualified public depositories;
Direct obligations of the U.S. Treasury.
Securities listed in paragraph c and d shall be invested to provide sufficient liquidity to pay obligations as they come due. In addition, surplus funds may be deposited into certificates of deposit which are insured and any unspent Bond proceeds are required to be held in investments as specified in the Bond Indenture.

The District records all interest revenue related to investment activities in the respective funds. Investments are measured at amortized cost or reported at fair value as required by generally accepted accounting principles.
Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements.
Capital Assets
Capital assets, which include property, plant and equipment, and infrastructure assets (e.g., roads, sidewalks and similar items) are reported in the government activities columns in the government-wide financial statements. Capital assets are defined by the government as assets with an initial, individual cost of more than $5,000 (amount not rounded) and an estimated useful life in excess of two years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation.

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

Property, plant and equipment of the District are depreciated using the straight-line method over the following estimated useful lives:
Assets	Years	
Surface water management Clubhouse
Open space & recreation
Roadways	30
30
30
30	

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

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

Long-Term Obligations
In the government-wide financial statements long-term debt and other long-term obligations are reported as liabilities in the statement of net position. Bond premiums and discounts are deferred and amortized 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.

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

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

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

NOTE 3 – BUDGETARY INFORMATION

The District is required to establish a budgetary system and an approved Annual Budget. Annual Budgets are adopted on a basis consistent with generally accepted accounting principles for the general fund. All annual appropriations lapse at fiscal year-end.
The District follows these procedures in establishing the budgetary data reflected in the financial statements.
Each year the District Manager submits to the District Board a proposed operating budget for the fiscal year commencing the following October 1.
Public hearings are conducted to obtain public comments.
Prior to October 1, the budget is legally adopted by the District Board.
All budget changes must be approved by the District Board.
The budgets are adopted on a basis consistent with generally accepted accounting principles.
Unused appropriation for annually budgeted funds lapse at the end of the year.

NOTE 4 – DEPOSITS 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 loss.

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

Amortized cost	Fair Value	Credit Risk	Maturities

Weighted average of fund

Fidelity Government Portfolio

$	43,550,255	$

-	S&P AAAm

portfolio: 29 days

United States Treasury Note	-	2,160,951	N/A	October 15, 2023	
United States Treasury Note	-	2,106,891	N/A	April 15, 2024	
United States Treasury Note	-	4,353,802	N/A	February 29, 2024	
United States Treasury Note	-	4,378,847	N/A	January 31, 2024	
United States Treasury Note	-	4,425,000	N/A	September 30, 2023	
United States Treasury Note	-	4,407,654	N/A	October 31, 2023	
United States Treasury Note	-	4,389,910	N/A	November 30, 2023	
United States Treasury Note		-	4,374,511 	N/A	December 31, 2023	
Total Investments	 $	43,550,255	$	30,597,566 			

Custodial credit risk – For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the District will not be able to recover the value of the investments or collateral securities that are in the possession of an outside party. The District has no formal policy for custodial risk.

The U.S. Treasury investments are held by the trustee or agent but not in the District’s name.

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

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

Interest rate risk – The District does not have a formal policy that limits investment maturities as a means of managing exposure to fair value losses arising from increasing interest rates.
However, the Bond Indenture limits the type of investments held using unspent proceeds.

Fair Value Measurement – When applicable, the District measures and records its investments using fair value measurement guidelines established in accordance with GASB Statements. The framework for measuring fair value provides a fair value hierarchy that prioritizes the inputs to valuation techniques.
These guidelines recognize a three-tiered fair value hierarchy, in order of highest priority, as follows:
Level 1: Investments whose values are based on unadjusted quoted prices for identical investments in active markets that the District has the ability to access;
Level 2: Investments whose inputs - other than quoted market prices - are observable either directly or indirectly; and,
Level 3: Investments whose inputs are unobservable.
The fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the entire fair value measurement. Valuation techniques used should maximize the use of observable inputs and minimize the use of unobservable inputs.
Money market investments that have a maturity at the time of purchase of one year or less and are held by governments other than external investment pools should be measured at amortized cost. Accordingly, the District’s investments have been reported at amortized cost above.

Interfund receivables and payables at September 30, 2023 were as follows:

 Fund	Receivable	Payable	
General	$	-	$	287,839	
Debt service		287,839	-		
Total	 $	287,839  $	287,839 	

The outstanding balances between funds result primarily from the time lag between the dates that transactions are recorded in the accounting system and payments between funds are made. In the case of the District, the balances between the general fund and the debt service fund relate to assessments collected in the general fund that have not yet been transferred to the debt service fund.

NOTE 6 – CAPITAL ASSETS
Capital asset activity for the fiscal year ended September 30, 2023 was as follows:

Beginning Balance

Additions	Reductions

Ending Balance

Governmental activities
Capital assets, not being depreciated		
Land	$	54,128,833	$	-	$	-	$	54,128,833	
Infrastructure under construction	126,294,549	56,169,728	(73,686,116)	108,778,161	
Total capital assets, not being depreciated	180,423,382	56,169,728	(73,686,116)	162,906,994	

Capital assets, being depreciated Surface water management	

-	

30,228,139	

-	

30,228,139	
Clubhouse	-	15,777,751	-	15,777,751	
Open space & recreation	-	4,014,455	-	4,014,455	
Roadways	-	12,444,246	-	12,444,246	
Total capital assets, being depreciated	-	62,464,591	-	62,464,591	

Less accumulated depreciation for: Surface water management	

-	

1,007,604	

-	

1,007,604	
Clubhouse	-	525,925	-	525,925	
Open space & recreation	-	133,815	-	133,815	
Roadways	-	414,806	-	414,806	
Total accumulated depreciation	-	2,082,150	-	2,082,150	

Total capital assets, being depreciated, net	
-	
60,382,441	
-	
60,382,441	

Governmental activities capital assets, net	
$ 180,423,382	
$	116,552,169	
$	(73,686,116)	
$ 223,289,435	
The infrastructure intended to serve the District will include roadways, potable water and wastewater systems, and land improvements, including wetland mitigation areas. In addition, the project will include irrigation, parks, and recreational facilities. A portion of the project costs was expected to be financed with the proceeds from the issuance of Bonds with the remainder to be funded by the Developer and conveyed to the District. Upon completion, certain infrastructure improvements are to be conveyed to others for ownership and maintenance responsibilities. During the current fiscal yar the District conveyed a total of $11,221,525 of infrastructure improvements to other entities for ownership and maintenance.

Depreciation expense was charged to function/programs as follows:

Governmental activities:
Maintenance and operations	$	1,556,225	
Recreation		525,925 	
Total depreciation expense	 $	2,082,150 	

NOTE 7 – LONG TERM LIABILITIES
Series 2018
In May 2018, the District issued $66,210,000 of Series 2018 Special Assessment Bonds, consisting of Series 2018‐1 Bonds, Series 2018‐2 tax‐exempt Bonds, Series 2018‐2 taxable Bonds, and Series 2018‐3 Bonds with interest rates of 5.50%, 5.85%, 7.0%, and 5.75%, respectively. The bonds were issued to finance the acquisition and construction of Assessment Area One and the Clubhouse. Interest is paid semiannually on each May 1 and November 1. Principal payments on the series 2018‐1 and 2018‐2 taxable bonds are made serially commencing on May 1, 2020 through May 1, 2049. Principal payments on the series 2018‐2 tax‐exempt and 2018‐3 bonds are due in full on May 1, 2029.

Series 2019
In April 2019, the District issued $15,700,000 of Series 2019 Special Assessment Bonds with an interest rate of 5.60%. The bonds were issued to finance the acquisition and construction of Assessment Area One Parcels A‐6 through A‐9. Interest is paid semiannually on each May 1 and November 1. Principal payments on the series 2019 bonds are made serially commencing on May 1, 2021 through May 1, 2050.

Series 2019B
In December 2019, the District issued $4,300,000 of Series 2019B Special Assessment Bonds and
$2,200,000 of Series 2019B Taxable Special Assessment Bonds with interest rates of 5.250% and 6.875%, respectively. The bonds were issued to finance the acquisition and construction of the Parcel A‐ 4 Project. Interest is paid semiannually on each May 1 and November 1. Principal payments are due in full on May 1, 2029.

Series 2020
In July 2020, the District issued $22,600,000 of Series 2020 Impact Fee Credit Revenue Bonds with an interest rate of 4.750%. The bonds were issued to finance the acquisition and construction of certain public infrastructure relating to certain offsite and on‐site roadways. The District does not impose or collect any impact fees. Those fees are collected by the County and City and are remitted to the District as improvement fees. Interest is paid semiannually on each May 1 and November 1. Principal payments are due in full on November 1, 2050.
Series 2021
In September 2021, the District issued $95,770,000 of Series 2021 Special Assessment Bonds, consisting of series 2021A‐1 bonds, series 2021A‐2 bonds, and series 2021B bonds with interest rates of 2.25%‐ 3.4%, 5.125%, and 5.125%, respectively. The bonds were issued to finance the acquisition and construction of infrastructure within the District. Interest is paid semiannually on each May 1 and November 1. Principal payments on the series 2021A‐1 and 2021A‐2 bonds are made serially commencing on May 1, 2023 through May 1, 2052. Principal on the series 2021B bonds is due in full on May 1, 2041.

Series 2023
On January 31, 2023, the District issued $79,750,000 of Special Assessment Bonds, Series 2023, consisting of multiple term bonds with due dates ranging from May 1, 2030 to May 1, 2054 and fixed interest rates ranging from 4.5% to 5.625%. The bonds were issued to finance the acquisition and construction of infrastructure within the District. Interest is paid semiannually on each May 1 and November 1. Principal payments on the Series 2023 Bonds are made serially commencing on May 1, 2025 through May 1, 2054.

Series 2023 Town Center
On June 15, 2023, the District issued $15,000,000 of Special Assessment Bonds, Series 2023 due on May 1, 2054 with a fixed interest rate of 6.125%. The bonds were issued to finance the acquisition and construction of the Town Center project. Interest is paid semiannually on each May 1 and November 1. Principal payments on the Series 2023 Bonds are made serially commencing on May 1, 2028 through May 1, 2054.

Bond 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. This occurred during the current fiscal year as the District collected assessments from lot closings and prepaid $580,000,
$2,275,000, $25,000, $100,000, $1,435,000, $735,000, $25,000, $35,000, and $11,700,000 of the Series
2018-2 tax exempt, Series 2018-2 taxable, Series 2018-3, Series 2019, Series 2019B tax exempt, Series 2019B taxable, Series 2021A-1, Series 2021A-2, and Series 2021B Bonds, respectively. In addition, the District collected $5,553,652 of improvement fees and prepaid $3,851,000 of the Series 2020 Impact Fee Credit Revenue Bonds during the current fiscal year.
Bond Compliance
The Bond Indentures established a debt service reserve requirement as well as other restrictions and requirements relating principally to the use of proceeds to pay for the infrastructure improvements and the procedures to be followed by the District on assessments to property owners. The District agrees to levy special assessments in annual amounts adequate to provide payment of debt service and to meet the reserve requirements. The District was in compliance with the requirements at September 30, 2023.
Long-term Debt Activity
Changes in long-term liability activity for the fiscal year ended September 30, 2023 were as follows:
Due Within

Beginning Balance

Additions	Reductions

Ending Balance

One Year

Governmental activities
Bonds payable:		
Series 2018-1	$	29,490,000	$	-	$	(490,000)	$	29,000,000	$	520,000	
Less original issue discount	(541,357)	-	20,076	(521,281)	-	
Series 2018-2 Tax-exempt	815,000	-	(580,000)	235,000	-	
Less original issue discount	(56,622)	-	8,545	(48,077)	-	
Series 2018-2 Taxable	3,170,000	-	(2,275,000)	895,000	-	
Less original issue discount	(222,213)	-	33,536	(188,677)	-	
Series 2018-3	11,095,000	-	(200,000)	10,895,000	185,000	
Less original issue discount	(297,997)	-	11,192	(286,805)	-	
Series 2019	15,210,000	-	(330,000)	14,880,000	240,000	
Series 2019B Tax-exempt	4,070,000	-	(1,435,000)	2,635,000	-	
Less original issue discount	(54,991)	-	8,346	(46,645)	-	
Series 2019B Taxable	2,085,000	-	(735,000)	1,350,000	-	
Less original issue discount	(23,722)	-	3,600	(20,122)	-	
Series 2020 IF	22,010,000	-	(3,851,000)	18,159,000	-	
Less original issue discount	(2,055,730)	-	74,645	(1,981,085)	-	
Series 2021A-1	27,305,000	-	(600,000)	26,705,000	590,000	
Less original issue discount	(551,558)	-	18,630	(532,928)	-	
Series 2021A-2	39,305,000	-	(600,000)	38,705,000	595,000	
Series 2021B	29,160,000	-	(11,700,000)	17,460,000	-	
Less original issue discount	(425,872)	-	22,900	(402,972)	-	
Series 2023	-	79,750,000	-	79,750,000	-	
Less original issue discount	-	(1,246,821)	20,780	(1,226,041)	-	
Series 2023 Town Center	-	15,000,000	-	15,000,000	-	
Less original issue discount	-	(742,500)	12,375	(730,125)	-	
Total	 $	179,484,938  $  92,760,679  $	(22,561,375) $ 249,684,242  $	2,130,000 	

Long-term Debt Activity (Continued)
At September 30, 2023, the scheduled debt service requirements on the long-term debt were as follows:

Year ending

	Governmental Activities	

  September 30:	Principal	Interest	Total	
2024	$	2,130,000	$  13,187,982	$	15,317,982	
2025	3,370,000	13,091,536	16,461,536	
2026	3,525,000	12,938,836	16,463,836	
2027	3,685,000	12,778,529	16,463,529	
2028	4,090,000	12,600,510	16,690,510	
2029-2033	28,845,000	58,576,527	87,421,527	
2034-2038	30,535,000	51,567,022	82,102,022	
2039-2043	57,010,000	41,049,072	98,059,072	
2044-2048	51,445,000	26,867,722	78,312,722	
2049-2053	64,639,000	10,654,746	75,293,746	
2054		6,395,000	331,532	6,726,532 	
Total	 $ 255,669,000  $ 253,644,014  $	509,313,014 	

NOTE 8 – LANDOWNER/DEVELOPER TRANSACTIONS

The Landowner/Developer owns a portion of land within the District; therefore, assessment revenues in the general and debt service funds include the assessments levied on those lots owned by the Landowner/Developer.
The Landowner/Developer has agreed to fund the general operations of the District. In connection with that agreement, Landowner/Developer contributions to the general fund were $295,000, which is recorded as a receivable as of September 30, 2023.

During the current fiscal year, the District reimbursed the Landowner/Developer approximately $3.7 million for infrastructure costs paid by the Landowner/Developer on behalf of the District.
NOTE 9 – CONCENTRATION

The District’s activity is dependent upon the continued involvement of the Developers, the loss of which could have a material adverse effect on the District’s operations.
NOTE 10 – COMMITMENTS

As of September 30, 2023, the District had open contracts for various construction projects. The contracts totaled approximately $111.6 million, of which approximately $35 million was uncompleted at September 30, 2023.

NOTE 11 – MANAGEMENT COMPANY

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

NOTE 12 – RISK MANAGEMENT

The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters. The District has obtained commercial insurance from independent third parties to mitigate the costs of these risks; coverage may not extend to all situations. There were no settled claims during the past three years that exceeded this commercial coverage.

NOTE 13 – SUBSEQUENT EVENTS

Bond Issuance
Subsequent to fiscal year end, the District issued $3,000,000 of Series 2024A Bonds and $9,385,000 of Series 2024B Bonds. The Series 2024A Bonds consist of multiple term bonds with due dates ranging from May 1, 2031 to May 1, 2055 and fixed interest rates ranging from 4.875% to 6%. The Series 2024B Bonds are due May 1, 2055 and have a fixed interest rate of 6.25%. The Bonds were issued to finance the acquisition and construction of certain improvements for the benefit of the District.

Bond Payments
Subsequent to fiscal year end, the District prepaid a total of $65,000, $820,000, $420,000, $7,924,000,
$2,690,000, and $15,270,000 of the Series 2019, Series 2019B tax exempt, Series 2019B taxable, Series 2020, Series 2021B, and Series 2023 Bonds, respectively. The prepayments were considered extraordinary mandatory redemptions as outlined in the Bond Indenture.

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

		Budgeted Amounts	 Original	Final

Actual Amounts

Variance with Final Budget - Positive (Negative)

REVENUES		
Assessment	$  3,334,556	$ 3,469,736	$ 3,497,952	$	28,216	
Landowner contributions	-	315,123	295,000	(20,123)	
Interest	-	40,083	39,833	(250)	
Miscellaneous	17,601	42,292	42,542	250	
Total revenues	3,352,157	3,867,234	3,875,327	8,093	

EXPENDITURES
Current:
General government	225,195	217,348	201,226	16,122	
Maintenance and operations	1,615,000	2,171,123	2,023,876	147,247	
Recreation	1,511,962	1,416,526	1,258,759	157,767	
Total expenditures	3,352,157	3,804,997	3,483,861	321,136	

Excess (deficiency) of revenues					
over (under) expenditures	 $	-	$	62,237 	391,466	 $	329,229 	

Fund balance - beginning		173,256 

Fund balance - ending	 $	564,722 

See notes to required supplementary information

NOTES TO REQUIRED SUPPLEMENTARY INFORMATION

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

The legal level of budgetary control, the level at which expenditures may not exceed budget, is in the aggregate. Any budget amendments that increase the aggregate budgeted appropriations must be approved by the Board of Supervisors. The general fund budget for the fiscal year ended September 30, 2023 was amended to increase revenues by $515,077 and increase appropriations by $452,840.

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

Element	Comments
Number of District employees compensated in the last pay
period of the District’s fiscal year being reported.	0	
Number of independent contractors compensated to whom nonemployee compensation was paid in the last month of the
District’s fiscal year being reported.	
11	
Employee compensation	Not applicable	
Independent contractor compensation	$191,695	
Construction projects to begin on or after October 1; ($65K)	Not applicable	
Budget variance report	See the Schedule of Revenues, Expenditures and Changes in Fund
Balance - Budget and Actual - General Fund	
Ad Valorem taxes;	Not applicable	
		
Non ad valorem special assessments;		
Special assessment rate	Ranges From $2,850.77 To $5,628.94 Per Unit	
Special assessments collected	$29,683,019	
Outstanding Bonds:		
Series 2018-1, due May 1, 2049	$29,000,000 - See Long Term Liabilities Note in report for details	
Series 2018-2 (Taxable), due May 1, 2029	$895,000 - See Long Term Liabilities Note in report for details	
Series 2018-2 (Tax Exempt), due May 1, 2029	$235,000 - See Long Term Liabilities Note in report for details	
Series 2018-3, due May 1, 2049	$10,895,000 - See Long Term Liabilities Note in report for details	
Series 2019, due May 1, 2050	$14,880,000 - See Long Term Liabilities Note in report for details	
Series 2019-B (Taxable), due May 1, 2029	$1,350,000 - See Long Term Liabilities Note in report for details	
Series 2019-B (Tax Exempt), due May 1, 2029	$2,635,000 - See Long Term Liabilities Note in report for details	
Series 2020, due November 1, 2050	$18,159,000 - See Long Term Liabilities Note in report for details	
Series 2021A-1, due May 1, 2052	$26,705,000 - See Long Term Liabilities Note in report for details	
Series 2021A-2, due May 1, 2052	$38,705,000 - See Long Term Liabilities Note in report for details	
Series 2021B, due May 1, 2041	$17,460,000 - See Long Term Liabilities Note in report for details	
Series 2023, due May 1, 2054	$79,750,000 - See Long Term Liabilities Note in report for details	
Series 2023TC due May 1, 2054	$15,000,000 - See Long Term Liabilities Note in report for details	

951 Yamato Road ▪ Suite 280 Boca Raton, Florida 33431
(561) 994-9299 ▪ (800) 299-4728
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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
Avenir Community Development District City of Palm Beach Gardens, 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 Avenir Community Development District, City of Palm Beach Gardens, Florida (“District”) as of and for the fiscal year ended September 30, 2023, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements, and have issued our opinion thereon dated July 26, 2024.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the District’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the District’s internal control. Accordingly, we do not express an opinion on the effectiveness of the District’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the District’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

July 26, 2024

INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE WITH THE REQUIREMENTS OF SECTION 218.415, FLORIDA STATUTES, REQUIRED BY RULE 10.556(10) OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA
To the Board of Supervisors
Avenir Community Development District City of Palm Beach Gardens, Florida
We have examined Avenir Community Development District, City of Palm Beach Gardens, Florida’s (“District”) compliance with the requirements of Section 218.415, Florida Statutes, in accordance with Rule 10.556(10) of the Auditor General of the State of Florida during the fiscal year ended September 30, 2023. Management is responsible for District’s compliance with those requirements. Our responsibility is to express an opinion on District’s compliance based on our examination.

Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the District complied, in all material respects, with the specified requirements referenced in Section 218.415, Florida Statutes. An examination involves performing procedures to obtain evidence about whether the District complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. Our examination does not provide a legal determination on the District’s compliance with specified requirements.

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

In our opinion, the District complied, in all material respects, with the aforementioned requirements for the fiscal year ended September 30, 2023.
This report is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, management, and the Board of Supervisors of Avenir Community Development District, City of Palm Beach Gardens, Florida and is not intended to be and should not be used by anyone other than these specified parties.

July 26, 2024

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

We have audited the accompanying basic financial statements of Avenir Community Development District, City of Palm Beach Gardens, Florida ("District") as of and for the fiscal year ended September 30, 2023 and have issued our report thereon dated July 26, 2024.
Auditor’s Responsibility

We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and Chapter 10.550, Rules of the Florida Auditor General.
Other Reporting Requirements

We have issued our Independent Auditor’s Report on Internal Control over Financial Reporting and Compliance and Other Matters based on an audit of the financial statements performed in accordance with Government Auditing Standards; and Independent Auditor’s Report on an examination conducted in accordance with AICPA Professional Standards, Section 601, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated July 26, 2024, should be considered in conjunction with this management letter.

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

Current year findings and recommendations.
Status of prior year findings and recommendations.
Compliance with the Provisions of the Auditor General of the State of Florida.

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

We wish to thank Avenir Community Development District, City of Palm Beach Gardens, 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.

July 26, 2024

REPORT TO MANAGEMENT

CURRENT YEAR FINDINGS AND RECOMMENDATIONS
None

PRIOR YEAR FINDINGS AND RECOMMENDATIONS

None
COMPLIANCE WITH THE PROVISIONS OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA

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

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

There were no significant findings and recommendations made in the preceding annual financial audit report for the fiscal year ended September 30, 2022.
Any recommendations to improve the local governmental entity's financial management.

There were no such matters discovered by, or that came to the attention of, the auditor, to be reported for the fiscal year ended September 30, 2023.
Noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance.

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

The name or official title and legal authority of the District are disclosed in the notes to the financial statements.
The District has not met one or more of the financial emergency conditions described in Section 218.503(1), Florida Statutes.
We applied financial condition assessment procedures and no deteriorating financial conditions were noted as of September 30, 2023. It is management’s responsibility to monitor financial condition, and our financial condition assessment was based in part on representations made by management and the review of financial information provided by same.

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