Rivers Edge
Community Development District Revised Agenda

Wednesday	Meeting via Zoom:
June 10, 2020	Dial-in: (646) 876-9923
11:00 a.m.	Online: https://zoom.us/j/99990833520 Meeting ID #: 999 9083 3520
www.RiversEdgeCDD.com

Roll Call

Audience Comments

Organizational Matters
Consideration of Appointment of New Supervisor to Fill Seat 5 Vacancy (2020)
Resumes Received in Conformity with Adopted Vacancy Policy and Vacancy Notice

Resumes Not Received in Conformity with Policy (i.e. Only received via email, or received mailed copy past deadline)

Oath of Office for Newly Appointed Supervisor

Consideration of Resolution 2020-06, Designating Officers

Approval of the Minutes of the May 20, 2020 Meeting

Consideration of Proposal from VerdeGo for Playground Mulch in HomeStead Park

Acceptance of the Draft Fiscal Year 2019 Audit Report

Consideration of Resolution 2020-07, Approving a Proposed Budget for Fiscal Year 2021 and Setting a Public Hearing Date for Adoption

Staff Reports
Attorney

Engineer

District Manager

General Manager
Report

Discussion of Amenity Facility Hours of Operation and Capacities

Supervisors’ Requests and Audience Comments

Other Business

Financial Reports
Balance Sheet & Income Statement

Assessment Receipt Schedule

Approval of Check Register

Next Scheduled Meeting – July 15, 2020 @ 11:00 a.m.

Adjournment

River's Edge Community Development District

ANNUAL FINANCIAL REPORT

September 30, 2019

Rivers Edge Community Development District ANNUAL FINANCIAL REPORT
September 30, 2019

TABLE OF CONTENTS

. Page Number

REPORT OF INDEPENDENT AUDITORS MANAGEMENT'S DISCUSSION AND ANALYSIS

1-2

3-8

BASIC FINANCIAL STATEMENTS:
Government-wide Financial Statements:
Statement  of Net Position	9
Statement of Activities	1O
Fund Financial Statements:
Balance Sheet - Governmental Funds	11
Reconciliation of Total Governmental Fund Balances
to Net Position of Governmental Activities	12
Statement of Revenues, Expenditures and Changes in Fund
Balances - Governmental Funds	13
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds
to the Statement of Activities	14
Statement of Revenues, Expenditures and Changes in Fund
Balances -  Budget and Actual -  General Fund	15
Notes to Financial Statements	16-31
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	32-33
MANAGEMENT LETTER	34-35
INDEPENDENT ACCOUNTANT'S REPORT/COMPLIANCE WITH
SECTION 218.415, FLORIDA STATUTES	36

REPORT OF INDEPENDENT AUDITORS

To the Board of Supervisors
Rivers Edge Community Development District St. Johns County, Florida

Report on the Financial Statements

We have audited the accompanying financial statements of Rivers Edge Community Development District as of and for the year ended September 30, 2019, and the related notes to 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 an opinion on these financial statements based on our audit. We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Accounting 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 opinion.

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To the Board of Supervisors
Rivers Edge Community Development District

Opinion

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 Rivers  Edge Community Development  District, as of September  30, 2019, and the respective  changes in financial position and the budgetary comparison  for the General Fund for the year then ended in conformity 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 Discussion and Analysis 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  a report  dated June XX, 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  and  contracts.  The purpose of that report is 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 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 Rivers Edge Community Development District's internal control over financial reporting and compliance.

Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL
Fort Pierce, Florida June XX, 2020
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Rivers Edge Community Development District
MANAGEMENT'S DISCUSSION AND ANALYSIS
For the Year Ended September 30, 2019

Management's discussion and analysis of Rivers Edge Community Development District (the "District") financial performance provides an objective and easily readable analysis  of  the District's financial activities. The analysis provides summary financial information for the District and should be read in conjunction with the District's financial statements.

OVERVIEW OF THE FINANCIAL STATEMENTS

The District's basic financial statements comprise three components; 1) Government-wide financial statements, 2) Fund financial statements, and 3) Notes to financial statements. The Government-wide financial statements present an overall picture of  the  District's  financial position and results of operations. The Fund financial statements  present financial  information  for the District's major funds. The Notes to financial statements provide additional information concerning the District's finances.

The Government-wide financial statements are the statement of net position and the statement of activities. These statements use accounting methods similar to those used by private-sector companies. Emphasis is placed on the net position of governmental activities and the change in net position. Governmental activities are primarily supported by special assessments.

The statement of net position presents information on all assets and liabilities  of the District, with the difference between assets and liabilities reported as net position. Assets, liabilities, and net position are reported for all Governmental activities.

The statement of activities presents information on all revenues and expenses  of the District and the change in net position. Expenses are reported by major function and program revenues relating to those functions are reported, providing the net cost of all functions provided by the District. To assist in understanding the District's operations, expenses have been reported as governmental activities. Governmental activities financed by the District include general government, physical environment, culture/recreation and debt service.

Fund financial statements present financial information for governmental funds. These statements provide financial information for the major funds of the District. Governmental fund financial statements provide information on the current assets and liabilities of the funds, changes in current financial resources (revenues and expenditures), and current available resources.

Rivers Edge Community Development District MANAGEMENT'S DISCUSSION AND ANALYSIS
For the Year Ended September 30, 2019

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Fund financial statements include a balance sheet and a  statement  of  revenues, expenditures and changes in fund balances for all governmental funds. A statement of revenues, expenditures, and changes in fund balances - budget and actual is provided  for the District's General Fund. Fund financial statements provide more detailed  informatfon  about the District's activities. Individual funds are established by the District to track revenues that are restricted to certain uses or to comply with legal requirements.

The government-wide financial statements and the fund financial statements provide different pictures of the District. The government-wide financial statements  provide  an overall picture  of the District's financial standing. These statements are comparable  to private-sector companies and give a good understanding of the District's overall  financial health and how the District paid  for the various activities, or functions, provided by the District.  All  assets  of  the  District,  including construction in progress, are reported in the statement of net position. All liabilities, including principal outstanding on bonds are included. In the statement  of  activities, transactions between the different functions of the District have  been  eliminated  in  order  to avoid "doubling up" the revenues and expenses.  The  fund  financial  statements  provide  a picture of the major funds of the District. In the case of governmental activities, outlays for long lived assets are reported as expenditures and long-term liabilities, such as general obligation bonds, are not included in the fund financial statements. To provide  a  link  from  the  fund financial statements to the government-wide financial statements, reconciliation is provided from the fund financial statements to the government-wide financial statements.

Notes to financial statements provide additional detail concerning the financial activities and financial balances of the District. Additional information about the accounting practices of the District, investments of the District, capital assets and long-term debt are some of the items included in the notes to financial statements.

Financial Highlights

The following are the highlights of financial activity for the year ended September 30, 2019.

The District's total assets and deferred outflows of resources exceeded total liabilities by
$55,486,780 (net position). Net investment in capital assets was $55,112,565, restricted net position was $57,582 and unrestricted net position was $316,633.

Governmental activities revenues totaled $3,402,172 while governmental activities expenses totaled $5,169,267.

Rivers Edge Community Development District MANAGEMENT'S DISCUSSION AND ANALYSIS
For the Year Ended September 30, 2019

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Financial Analysis of the District

The following schedule provides a summary of the assets, deferred outflows of resources, liabilities and net position of the District and is presented by category for comparison purposes

Net Position
Governmental Activities 2019	2018

Current assets	$	380,162	$	647,823	
Restricted assets	1,151,678	1,356,054	
Capital assets, net	77,246,421	79,369,804	
Deferred outflows	 	407,408	430,042	
Total Assets and Deferred Outflows	 	79,185,669	81,803,723	
Current liabilities	1,123,627	1,263,256	
Non-current liabilities	 	22,575,262	23,286,592	
Total Liabilities	 	23,698,889	24,549,848	
Net investment in capital assets	55,112,565	55,683,212	
Net position - restricted	57,582	977,936	
Net position - unrestricted	 	316,633	592,727	
Total Net Position	$55,486,780	$57,253,875	

The decrease in current assets is related to the decrease in the amount due from others in the current year.

The decrease in restricted assets is related to the use of the capitalized interest account to pay interest in the current year.

The decrease in capital assets is primarily the result of current year depreciation.

The decrease in total liabilities is mainly the result of the principal payments made in the current year.

The decrease in net position is mainly the result of depreciation on capital assets in the current year.

Rivers Edge Community Development District MANAGEMENT'S DISCUSSION AND ANALYSIS
For the Year Ended September 30, 2019

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Financial Analysis of the District (Continued)

The following schedule provides a summary of the changes in net position of the District and is presented by category for comparison purposes.

Change in Net Position

	 	Governmental  Activities		
	 	2019	2018		
Program Revenues		
Charges for services	$	3,031,796	$	2,886,969	
Grants and contributions	5,436	2,407,505	
General Revenues		
Investment earnings	37,750	28,210	
Miscellaneous	 	327,190		
Total Revenues	 	3,402,172	5,322,684	

Expenses

General government	190,825	931,628	
Maintenance and operations
Physical environment	
2,792,145	4,135,439	
Culture/recreation	1,033,569		
Interest  and other charges	 	1,152,728	1,164,891 Total Expenses		5,169,267	6,231,958

Change in Net Position	(1,767,095)	(909,274)

Net Position - Beginning of Year	 		57,253,875		58,163,149 Net Position - End of Year		$   55,486,780	$ 57,253,875
The decrease in grants and contributions is related to the completion of  the capital  project  and the bond issuance in the prior year.

The reduction in total expenses is related to the issuance costs for the new bonds issued in the prior year.

DRAFT

Rivers Edge Community Development District MANAGEMENT'S DISCUSSION AND ANALYSIS
For the Year Ended September 30, 2019

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Capital Assets Activity

The following schedule provides a summary of the District's capital assets as of September 30, 2019 and 2018.

 	Governmental Activities	
2019	2018

Land and improvements	$ 23,918,886	$ 23,918,886
Buildings and improvements	4,603,449	4,603,449
Infrastructure	59,266,566	59,261,130
Less: accumulated depreciation	{10,542,480}	{8,413,661}
Total	$ 77,246,421	$ 79,369,804

Current year activity consisted of additions to infrastructure of $5,436 and depreciation of
$2,128,819.

General Fund Budgetary Highlights

Budgeted expenditures exceeded actual expenditures primarily due to less landscape maintenance than was anticipated.

The September 30, 2019 budget was amended to reallocate certain revenues.

Debt Management

Governmental Activities debt includes the following:

In October 2016, the District issued $10,765,000 Series  2016  Capital  Improvement  Revenue and Refunding Bonds. These bonds were issued to finance the acquisition and construction of certain improvements for the benefit of the property owners within the District and to refund and redeem a portion of the Series 2008 Capital  Improvement  Revenue  Bonds.  As  of September 30, 2019, the balance outstanding was $10,250,000.

In May 2018, the District issued $7,050,000 Series 2018 Capital Improvement Revenue Bonds. These bonds were issued to finance  the acquisition  and construction  of certain  improvements for the benefit of the property owners within the District. As of September 30, 2019, the balance outstanding was $7,050,000.

DRAFT

Rivers Edge Community Development District MANAGEMENT'S DISCUSSION AND ANALYSIS
For the Year Ended September 30, 2019

OVERVIEW OF THE FINANCIAL STATEMENTS {CONTINUED)

Debt Management {Continued)

In July 2018, the District issued $3,940,000 Series 2018A-1 Capital Improvement Revenue Refunding Bonds. These bonds were issued to finance the acquisition  and  construction  of certain improvements for the benefit of the property owners within the District and to refund and redeem a portion of the Series 2008 Capital Improvement  Revenue  Bonds.  As  of September 30, 2019, the balance outstanding was $3,725,000.

In July 2018, the District issued $2,335,000 Series 2018A-2 Capital Improvement Revenue Refunding Bonds. These bonds were issued to finance the acquisition  and  construction  of certain improvements for the benefit of the property owners within the District and to refund and redeem a portion of the Series 2008 Capital  Improvement  Revenue  Bonds.  As of September 30, 2019, the balance outstanding was $2,220,000.

Economic Factors and Next Year's Budget

Rivers Edge Community Development District does not expect any economic factors to have a significant effect on the financial position or results of operations  of the District  in fiscal  year 2020.

Request for Information

The financial report is designed to provide a general overview of Rivers Edge Community Development District's finances for all those with an interest. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the Rivers Edge Community Development District, Governmental Management Services, 475 West Town Place, Suite 114, St Augustine, Florida 32092.

River's Edge Community Development District STATEMENT OF NET POSITION
September 30, 2019

	Governmental
 	Activities		
ASSETS		
Current Assets		
Cash	$	102,764	
Investments	2,943	
Due from other governments	13,905	
Due from others	208,055	
Prepaid expenses	45,254	
Deposits	 	7,241 	
Total Current Assets	 	380,162 	
Non-Current Assets Restricted Assets
Investments	1,151,678
Capital Assets, Not Being Depreciated
Land and improvements	23,918,886
Capital Assets, Being Depreciated
Infrastructure	59,266,566	
Buildings and improvements	4,603,449	
Less: accumulated depreciation	{10,542,480}	
Total Non-Current Assets	 	78,398,099 	
Total Assets	 	78,778,261 	

DEFERRED OUTFLOWS OF RESOURCES
Deferred  amount on refunding	 	407,408 

LIABILITIES
Current Liabilities
Accounts payable	56,965	
Bonds payable	600,000	
Accrued interest	 	466,662 	
Total Current Liabilities	 	1,123,627 	
Non-Current Liabilities
Bonds payable, net	
 	22,575,262 	
Total Liabilities	23,698,889	
NET POSITION
Net investment in capital assets	
55,112,565	
Restricted for debt service	53,854	
Restricted for capital projects	3,728	
Unrestricted	 	316,633 	
Net Position	$ 	5514861780 	

See accompanying notes to financial statements.

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River's Edge Community Development District STATEMENT OF ACTIVITIES
For the Year Ended September 30, 2019

 Functions/Programs	
Governmental Activities

Program Revenues

Capital Grants
. Charges for	and
    Expenses	Services	Contributions

Net (Expense) Revenues and Changes in
  Net Position 

Governmental
 	Activities	

General government	$	(190,825)	$   172,683	$	$	(18,142)	
Physical environment	(2,792,145)	737,763	5,436	(2,048,946)	
Culture/recreation	(1,033,569)	796,445	(237,124)	
Interest and other charges	(1,152,728}	1,324,905	 	172,177 	
Total Governmental Activities	$	(511691267}	$31031z796	$	51436 	      (2,132,035)	
	General Revenues		
	Investment income	37,750	
	Miscellaneous revenues	 	327,190 	
	Total General Revenues	 	364,940 	
	Change in Net Position	(1,767,095)	
	Net Position - October 1, 2018	 	57,253,875 	
	Net Position - September 30, 2019	$ 55,486,780	

See accompanying notes to financial statements.

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River's Edge Community Development District
BALANCE SHEET -
GOVERNMENTAL FUNDS
September 30, 2019

Total
Debt	Capital	Governmental
 	General	Service	Projects	Funds
ASSETS		
Cash	$	102,764	$	$	$	102,764	
Investments	2,943		2,943	
Due from other governments	7,341	6,564	13,905	
Due from others	208,055		208,055	
Prepaid expenses	45,254		45,254	
Deposits
Restricted assets	7,241		7,241	
Cash and investments, at fair value		1,147,950	3,728	1,151,678	
Total Assets	 	$	373,598	$1,154,514	$	3,728	$	1,531,840	

LIABILITIES AND FUND BALANCES LIABILITIES
Accounts payable	 	$	56,965	$		$		$	56,965	

FUND BALANCES		
Nonspendable	52,495			52,495	
Restricted:					
Debt service		1,154,514		1,154,514	
Capital projects			3,728	3,728	
Assigned	13,035			13,035	
Unassigned	251,103			251,103	
Total Fund Balances	316,633	1,154,514	3,728	1,474,875	
Total Liabilities and Fund Balances	 	$	373,598	$1,154,514	$	3,728	$	1,531,840	

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See accompanying notes to financial statements.	0
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DRAFT

River's Edge Community  Development  District   RECONCILIATION OF TOTAL GOVERNMENTAL FUND BALANCES TO NET POSITION OF GOVERNMENTAL ACTIVITIES
September  30, 2019

Total Governmental Fund Balances

Amounts reported for governmental activities in the Statement of Net Position are different because:

$	1,474,875

Capital assets, land and improvements, $23,918,886, buildings and improvements, $4,603,449 and infrastructure, $59,266,566, net of accumulated depreciation, $(10,542,480), used in governmental activities are not current financial resources and therefore, are not reported at the fund level.

Deferred outflow of resources are not current financial resources and therefore, are not reported at the fund level.

Long-term liabilities, including bonds payable, $(23,245,000), net of bond discount, net, $69,738, are not due and payable in the current period and therefore, are not reported at the fund level.

Accrued interest expense for long-term debt is not a current financial use and therefore, is not reported at the governmental fund level.

Net Position of Governmental Activities

77,246,421

407,408

(23,175,262)

 	(466,662) 

$ 55,486,780

See accompanying notes to financial statements.

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River's Edge Community Development District STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES -  GOVERNMENTAL FUNDS
For  the Year Ended September 30, 2019

Revenues

Total
Debt	Capital	Governmental
 	General	Service	Projects	Funds

Special assessments	$1,706,891	$ 1,324,905	$	$	3,031,796	
Developer contributions			5,436	5,436	
Investment income	6,087	31,482	181	37,750	
Miscellaneous income	315,981			315,981	
Total Revenues	2,028,959	1,356,387 	5,617	3,390,963

Expenditures Current
General government	190,825				190,825	
Physical environment	815,274			1,500	816,774	
Culture and recreation	880,121				880,121	
Capital outlay
Debt service				5,436	5,436	
Principal		515,000			515,000	
Interest		1,035,630			1,035,630	
Other debt service costs				2,250	2,250	
Total Expenditures	1,886,220	1,550,630	 		9,186	 	  3,446,036	
Excess of revenues over/(under) expenditures	 	 142,739	(194,243)	 		(3,569)	 		(55,073)	
Other Financing Sources/(Uses)						
Insurance proceeds	11,209				11,209	
Transfers in Transfers out	
 		8,105		
(8,105)	8,105
 		(8,105)	
Total other financing sources/(uses)	 	   11,209	8,105	 		(8,105)	 		11,209	
Net Change in Fund Balances	153,948	(186,138)		(11,674)		(43,864)	
Fund Balances - October 1, 2018	 	 162,685	1,340,652	 		15,402	 		1,518,739	

Fund Balances - September 30, 2019	 	$   316,633	$  1,154,514	$	3,728	$ 1,474,875
See accompanying notes to financial statements.

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River's Edge Community Development District RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
For the Year Ended September 30, 2019

Net Change in Fund Balances -Total Governmental Funds	$	(43,864)

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 allocated over their estimated useful lives as depreciation. This is the amount that depreciation,

the repayments reduce long-term liabilities in the Statement of Net Position.	515,000	
The deferred amount on refunding is amortized at the government-wide level as		
interest over the life of the associated bonds payable. This is the current year
amortization.	
(22,634)	

$(2,128,819) exceeded capital outlay, $5,436, in the current period.	(2,123,383) Repayments of principal are expenditures at the fund level, but

Bond discounts are amortized over the life of the bonds as interest. This is the
current period amortization.	(3,670)

At the fund level interest is recognized when due. At the government-wide level
interest is accrued  on outstanding  debt. This is the current year accrual.	 			(88,544) Change in  Net Position of Governmental Activities		$	(1,767,095)

River's Edge Community Development District STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - GENERAL FUND
For the Year Ended September 30, 2019

Variance with Final Budget
Original	Final	Positive

Revenues	 	Budget	Budget	Actual	{Negative) 	
Special assessments	$2,100,101	$2,100,101	$1,706,891	$	(393,210)	
Investment income	6,087	6,087	
Miscellaneous revenues	 	11,000	11,000	315,981	304,981 	
Total Revenues	 	2,111,101	2,111,101	2,028,959		(82,142)	

Expenditures Current
General government	149,510	149,510	190,825	(41,315)	
Physical environment	1,264,365	1,264,365	815,274	449,091	
Culture/recreation	689;726	689,726	880,121	(190,395)	
Capital outlay	 	7,500	7,500	7,500 	
Total Expenditures	 	2,111,101	2,111,101	1,886,220	224,881 	
Excess of revenues over/(under) expenditures	
142,739	142,739	

Other Financing Sources/(Uses)		
Insurance proceeds	 	11,209	11,209 	
Net Change in Fund Balances	153,948	153,948	
Fund Balances - October 1, 2018	 	162,685	162,685 	
Fund Balances - September 30, 2019	 	$	$	$   3161633	$	3161633 	

Rivers Edge Community Development District NOTES TO FINANCIAL STATEMENTS
September 30, 2019

NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The financial statements of the District have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The District's more significant accounting policies are described below.

Reporting Entity

The District was established on November 1, 2006, pursuant to the Uniform Community Development District Act of 1980, Chapter 190, Florida Statutes, as amended (the "Act"), by Rule 42FFF-1.001, et seq, Florida Administrative Code, of the Florida Land and Water Adjudicatory Commission as amended September 6, 2011, and June 27, 2017 as a Community Development District. The District was established for the purposes of financing and managing the acquisition, construction, maintenance and operation of the infrastructure necessary for community development within its jurisdiction. The District is authorized to issue bonds for the purpose, among others, of financing, funding, planning, establishing, acquiring, constructing district roads, landscaping, and other basic infrastructure projects within or outside the boundaries of the Rivers Edge Community Development District. The District contracted its boundaries by approximately 2500 acres to approximately 1677 acres on June 27, 2017. The District is governed by a Board of Supervisors who are elected on at large basis by the owners of property within the District. The District operates within the criteria established by Chapter 190.

As required by GAAP, these financial statements present the Rivers Edge Community Development District (the primary government) as a stand-alone government. The reporting entity for the District includes all functions of government in which the District's Board exercises oversight responsibility including, but not limited to, financial interdependency, selection of governing authority, designation of management, significant ability to influence operations and accountability for fiscal matters.

Based upon the application of the above-mentioned criteria as set forth in Governmental Accounting Standards, the District has identified no component units.

Measurement Focus and Basis of Accounting

The basic financial statements of the District are composed of the following:

Government-wide financial statements

Fund financial statements

Notes to financial statements

Rivers Edge Community Development District NOTES TO FINANCIAL STATEMENTS
September 30, 2019

NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Measurement Focus and Basis of Accounting (Continued)

Government-wide Financial Statements

Government-wide financial statements report all non-fiduciary information about the reporting government as a whole. These statements include all the governmental activities of the primary government. The effect of interfund activity has been removed from these statements.

Governmental activities are supported by special assessments.  Program revenues  are netted with program expenses in the statement of activities  to present  the net  cost of each program.

Amounts paid to acquire capital assets are capitalized as assets,  rather  than  reported as an expenditure. Proceeds of long-term debt are recorded as liabilities in the government-wide financial statements, rather than as an other financing source.

Amounts paid to reduce long-term indebtedness of the reporting government are reported as a reduction of the related liability, rather than as an expenditure.

Fund Financial Statements

The underlying accounting system of the District is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self­ balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they  are to be spent and the means by which spending activities are controlled.

Fund financial statements for the primary government's governmental funds are presented after ·the government-wide financial statements. These statements display information about major funds individually.

DRAFT

Rivers Edge Community Development District
NOTES TO FINANCIAL STATEMENTS
September 30, 2019

NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

2. Measurement Focus and Basis of Accounting (Continued)

b. Fund Financial Statements (Continued) Governmental Funds
The District reports fund balance according to Governmental Accounting Standards Board Statement 54 - Fund Balance Reporting and Governmental Fund Type Definitions. The Statement requires the fund balance for governmental funds to be reported in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes  for  which amounts in those funds can be spent.

The District has various policies governing the fund balance classifications.

Nonspendable Fund Balance - This classification consists of amounts that cannot be spent because they are either not in spendable form or are legally or contractually required to be maintained intact.

Restricted Fund Balance - This classification includes amounts that can  be  spent  only for specific purposes stipulated by constitution, external resource providers, or through enabling legislation.

Assigned Fund Balance - This classification consists of the Board of Supervisors'  intent to be used for specific purposes, but are neither restricted nor committed. The assigned fund balances can also be assigned by  the  District's  management company.

Unassigned Fund Balance - This classification is the residual classification for the government's general fund and includes all spendable amounts not contain•ed in the other classifications. Unassigned fund balance is considered  to be utilized first when an expenditure is incurred for purposes for which amounts in any  of  those  unrestricted fund balance classifications could be used.

Fund Balance Spending Hierarchy - For all governmental funds except  special revenue funds, when restricted, committed, assigned, and unassigned fund balances are combined in a fund, qualified expenditures are paid first from restricted or committed fund balance, as appropriate, then assigned and finally unassigned fund balances.

Rivers Edge Community Development District NOTES TO FINANCIAL STATEMENTS
September  30, 2019

NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Measurement Focus and Basis of Accounting (Continued)

b. Fund Financial Statements (Continued) Governmental Funds (Continued)
Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of  accounting. Revenues are considered to be available when they are collected within the current period or soon thereafter to pay liabilities of the current period. For this purpose, the District considers revenues to be available if they are collected within 60 days o·f the end of the current fiscal period.

Expenditures generally are recorded when a liability is incurred, as under accrual accounting. Interest associated with the current fiscal period is considered to be an accrual item and so has been recognized as revenue of the current fiscal period.

Under the current financial resources measurement focus, only current assets and current liabilities are generally included on the balance sheet. The reported fund balance is considered to be a measure of "available spendable resources".

Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present  a  summary  of sources  and uses of "available spendable resources" during a period.

Because of their spending measurement focus, expenditure recognition for governmental fund types excludes amounts represented by non-current liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities.

Amounts expended to acquire capital assets are  recorded  as expenditures  in the year that resources are expended, rather than as fund assets. The proceeds of long­ term debt are recorded as an other financing source rather than as a fund liability.

Debt service expenditures are recorded only when payment is due.

Basis of Presentation

Governmental Major Funds

General Fund - The General Fund is the District's primary  operating  fund.  It  accounts for all financial resources of the general government, except those required to be accounted for in another fund.

Rivers Edge Community Development District NOTES TO FINANCIAL STATEMENTS
September  30, 2019

NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Basis of Presentation (Continued)

Governmental Major Funds (Continued)

Debt Service Fund - The Debt Service  Fund accounts  for debt service requirements to retire the Special Assessment and Capital Improvement Revenue Bonds, which were used to finance the construction of certain improvements within the District.

Capital Projects Fund - The Capital Projects Fund accounts for acquisition and construction of infrastructure improvements located within the boundaries of the District.

Non-current Governmental Assets/Liabilities

GASB Statement 34 requires that non-current governmental assets, such as construction in progress, and non-current governmental liabilities, such as general obligation bonds be reported in the governmental activities column in the government-wide Statement of Net Position.

Assets, Deferred Outflows of Resources, Liabilities, and Net Position

Cash and Investments

Florida Statutes require state and local governmental units to deposit monies with financial institutions classified as "Qualified Public Depositories," a multiple financial institution pool whereby groups of securities pledged by the various financial institutions provide common collateral from their deposits of public funds. This pool is provided as additional insurance to the federal depository insurance and allows for additional assessments against the member institutions, providing full insurance for public deposits.

The District is authorized to invest in those financial instruments as established by Section 218.415, Florida Statutes. The authorized investments consist of:

Direct obligations of the United States Treasury;

The Local Government Surplus Funds Trust or any intergovernmental investment pool authorized pursuant to the Florida lnterlocal Cooperative Act of 1969;

Interest-bearing time deposits or savings accounts in authorized qualified public depositories;

DRAFT

Rivers Edge Community Development District NOTES TO FINANCIAL STATEMENTS
September 30, 2019

NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES {CONTINUED)

Assets, Liabilities, Deferred Outflows of Resources and Net Position {Continued)
Cash and Investments {Continued)

4. Securities and Exchange Commission, registered money market funds with the highest credit quality rating from a nationally recognized rating agency.
Cash and investments include time deposits, certificates of deposit, money market funds, and all highly liquid debt instruments  with original  maturities  of three  months or less.
Restricted Assets
Certain net position of the District are classified as restricted assets on the Statement of Net Position because their use is limited either by law through constitutional provisions or enabling legislation; or by restrictions imposed externally by creditors. In a fund with both restricted and unrestricted net position, qualified expenses are considered to be paid first from restricted net position and then from unrestricted net position.

Capital Assets

Capital assets, which include land and improvements, buildings  and improvements and infrastructure are reported in the governmental activities column.

The District defines capital assets as assets with an initial,  individual  cost of  $5,000 or more and an estimated useful  life in excess  of one year.  The valuation  basis  for all assets is historical cost.

The costs of normal maintenance and repairs that do not add to the  value  of  the asset or materially extend its useful life are not capitalized.

Major outlays for capital assets and improvements are capitalized as projects are constructed.

Deferred Outflows of Resources

Deferred outflow of resources is the consumption of.net position by the government that is applicable to a future reporting period. Deferred amount on refunding is amortized and recognized as a component of interest expense over the life  of the bond.

Unamortized Bond Discount

Bond discounts are presented on the government-wide financial statements. The costs are amortized over the life of the bonds. For financial reporting, the unamortized bond discount is netted against the applicable long-term debt.

Rivers Edge Community Development District
NOTES TO FINANCIAL STATEMENTS
September 30, 2019

NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED}

4. Assets, Deferred Outflows of Resources, Liabilities, and Net Position (Continued)

Budgets

Budgets are prepared and adopted after public hearings for the governmental funds, pursuant to Chapter 190, Florida Statutes. The District utilizes the same basis of accounting for budgets as it does for revenues and expenditures in its various funds. The legal level of budgetary control is at the fund level. All budgeted appropriations lapse at year end. Formal budgets are adopted for the general  and debt service  funds. As a result, deficits in the budget columns of the accompanying financial statements may occur.

NOTE	B	-		RECONCILIATION	OF  GOVERNMENT-WIDE	AND	FUND	FINANCIAL STATEMENTS

1. Explanation of Differences Between the Governmental Fund Balance Sheet and the Government-wide Statement of Net Position

'Total fund balances" of the District's governmental funds ($1,474,875) differs from "net position" of governmental activities ($55,486,780) reported in the Statement of Net Position. This difference primarily results from the long-term economic focus of the Statement of Net Position versus the current financial resources focus of the
governmental fund balance sheet. The effect of the differences is illustrated as follows:

Capital related items

When capital assets (land, buildings and improvements and infrastructure that are to be used in governmental activities) are purchased  or constructed,  the cost  of those  assets is reported as expenditures in governmental funds. However, the Statement of  Net Position included those capital assets among the assets of the District as a whole.

Land and improvements	$	23,918,886	
Buildings and improvements	4,603,449	
Infrastructure	59,266,566	
Less: accumulated depreciation	(10,542.480)	
Total	$	77.246.421	

Rivers Edge Community Development District NOTES TO FINANCIAL STATEMENTS
September 30, 2019

NOTE	8	-		RECONCILIATION	OF	GOVERNMENT-WIDE	AND	FUND	FINANCIAL STATEMENTS (CONTINUED)

Explanation of Differences Between the Governmental Fund Balance Sheet and
the Government-wide Statement of Net Position (Continued) Long-term debt transactions
Long-term liabilities applicable to the District's governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities. All liabilities (both current and long-term) are reported in the Statement of Net Position. Balances at September 30, 2019 were:

Bonds payable	$ (23,245,000)	
Bond discount, net	69,738	
Total	$ (23,175,262)	

Deferred amount on refunding

The difference between the outstanding balance of the old debt and the cost of the new debt is a deferred outflow of resources. This balance is amortized over the life of the new debt. The unamortized balance is reflected as deferred amount on refunding.

Deferred amount on refunding, net

Accrued interest

$	407,408

Accrued liabilities in the Statement of Net Position differ from the amount reported in governmental funds due to the accrued interest on bonds.

Accrued interest	$	(466.662)

Explanation of Differences Between the Governmental Fund Operating Statements
and the Statement of Activities

The "net change in fund balances" for government funds ($(43,864)) differs from the "change in net position" for governmental activities ($(1,767,095)) reported in the Statement of Activities. The differences arise primarily from  the  long-term  economic focus of the Statement of Activities versus the current financial resources focus of the governmental funds. The effect of the differences is illustrated below:

Rivers Edge Community Development District NOTES TO FINANCIAL STATEMENTS
September  30, 2019

NOTE	8	-		RECONCILIATION	OF	GOVERNMENT-WIDE	AND	FUND	FINANCIAL STATEMENTS (CONTINUED)

2. Explanation of Differences Between the Governmental Fund Operating Statements and the Statement of Activities (Continued)

Capital related items

When capital assets that are to be used in governmental activities are purchased or constructed, the resources expended for those assets are reported as expenditures in governmental funds. However,  in the Statement  of Activities,  the costs  of those  assets is allocated over their estimated useful lives and reported as depreciation. As a  result, fund balances decrease by the amount of financial resources expended, whereas net position decrease by the amount of depreciation charged for the year.

Capital outlay Depreciation Total

$	5,436
(2,128,819)
$	(2,123.383)

Deferred amount on refunding

Amortization expense of the deferred amount on refunding does not require the use of current resources and therefore is not reported in the governmental funds.

Amortization  of deferred amount on refunding	$	(22.634)

Long-term debt transactions

When long-term debt is issued for governmental activities, the resources obtained are recognized as an other financing source at the fund level. At the government-wide level, however, the new debt increases non-current liabilities. Also, interest is recognized when due at the fund level, but is accrued at the government-wide level.

Principal payments on long-term debt	$	515,000	
Bond discount	(3,670)	
Accrued interest	(88,544)	
Total	$	422.786	

Rivers Edge Community Development District NOTES TO FINANCIAL STATEMENTS
September 30, 2019

NOTE C - CASH AND INVESTMENTS

All deposits are held in qualified public depositories and are included on the accompanying balance sheet as cash and investments.

Custodial Credit Risk - Deposits

Custodial credit risk is the risk that in the event of a bank failure, the District's deposits may not be returned to it. The District does not have a formal deposit policy for custodial credit risk, however, they follow the provisions of Chapter 280, Florida Statutes regarding deposits and investments. As of September 30, 2019, the District's bank balance was $172,979 and the carrying value was $102,764. Exposure to custodial credit risk was as follows. The District maintains all deposits in a qualified public depository in accordance with the provisions of Chapter 280, Florida Statutes, which means that all deposits are fully insured by Federal Depositors Insurance or collateralized under Chapter 280, Florida Statutes.

Investments

As of September 30, 2019, the District had the following investments and maturities:

 	Investment		Maturity Date	Fair Value	
First American Treasury Obligation	26 Days*	$	2,943	
First American Government Obligation	24 Days*	 	1,151,678 	
Total		$	1,154,621	

*Maturity is a weighted average maturity.

The District categorizes its fair value measurements within the fair value hierarchy recently established by generally accepted accounting principles. The fair value is the price that would be received to sell an asset,· or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. The District uses a market approach in measuring fair value that uses prices and other relevant information generated by market transactions involving identical or similar assets, liabilities, or groups of assets and liabilities.

Assets or liabilities are classified into one of three levels. Level 1 is the most reliable and is based on quoted price for identical assets, or liabilities, in an active market. Level 2 uses significant other observable inputs when obtaining quoted prices for identical or similar assets, or liabilities, in markets that are not active. Level 3 is the least reliable and uses significant unobservable inputs that use the best information available under the circumstances, which includes the District's own data in measuring unobservable inputs.

Based on the criteria ·in the preceding paragraph, the investments listed above are a Level 1 asset.

Rivers Edge Community Development District NOTES TO FINANCIAL STATEMENTS
September  30, 20-fb

NOTE C - CASH AND INVESTMENTS (CONTINUED)

Investments (Continued)

The District's investment policy allows management to invest funds in investments  permitted under Section 218.415(17) Florida Statutes. Among other investments, the policy allows the District to invest in Securities and Exchange Commission registered money  market  funds  with the highest credit quality rating from a nationally recognized rating agency.

Interest Rate Risk

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

Credit Risk

The District has no investment policy that would further limit its investment choices.

Concentration of Credit Risk

The District places no limit on the amount it may invest in any one fund. The investments in First American Treasury Obligation Funds represent .25% of the District's total investments. The investments in First American Government Obligation funds represent 99.75% of the  District's total investments. Both First American Treasury Obligation and First American Government Obligation were rated AAAm by Standards and Poor's.

The types of deposits and investments and their level of risk exposure  as  of  September  30, 2019 were typical of these items during the fiscal year then ended. The District considers any decline in fair value for certain investments to be temporary.

Rivers Edge Community Development District NOTES TO FINANCIAL STATEMENTS
September 30, 2019

NOTE D - CAPITAL ASSETS

Capital Asset activity for the year ended September 30, 2019 was as follows:

Balance	Balance
10/1/18	Additions	Deletions	09/30/19

Governmental Activities: Capital assets, not depreciated:
Land and improvements	$	23,918,886	$	-	$	$	23,918,886
Capital assets, being depreciated:
Infrastructure	59,261,130	5,436	59,266,566
Buildings and improvements	 	4,603,449	4,603,449 
Total Capital Assets, Being Depreciated 	63,864,579	5,436	63,870,015 
Less accumulated depreciation for:
Infrastructure	{7,953,316)	{1,975,371)	{9,928,687)
Buildings and improvemnets	 	{460,345)		{153,448)				{613,793) Total Accumulated Depreciation	 (8,413,661)        (2,128,819)				(10,542,480) Total Capital Assets Depreciated, Net          55,450,918	(2,123,383)				53,327,535 Governmental Activities Capital Assets     $   79,3691804    $ {2,1231383}  $	$ 77,246,421 

During the year depreciation of $1,975,371 was charged to physical environment and $153,448 was charged to culture/recreation.

Rivers Edge Community Development District NOTES TO FINANCIAL STATEMENTS
September 30, 2019

NOTE E-LONG-TERM DEBT

Long-term debt is comprised of the following:

Governmental Activities

The following is a summary of activity for long-term debt of the Governmental Activities for the year ended September 30, 2019:

Long-term debt at October 1, 2018	$	23,760,000	
Principal payments	 	(515,000)	
Long-term debt at September 30, 2019	$	23,245,000	
Less: bond discount, net	(69,738)	
Bonds Payable, Net at September 30, 2019	$	23,175.262	
Long-term debt for Governmental Activities is comprised of the following:		
Capital Improvement Revenue and Refunding Bonds
$10,765,000 Series 2016 Capital Improvement Revenue and Refunding Bonds are due in annual principal installments beginning May 2017 maturing May 2046.  Interest  at  various rates between 4.5% and 5.3% is due May and November
beginning May 2017. Current portion is $205,000.	$	10,250,000	
$7,050,000 Series 2018 Capital Improvement Revenue Bonds		
are due in annual principal installments beginning May 2020		
maturing May 2049. Interest at various rates between 4.1% and 5.35% is due May and November beginning November 2018. Current portion is $105,000.	

7,050,000	
$3,940,000	Series 2018A-1 Capital Improvement Revenue		
Bonds are due in annual principal installments beginning May		
2019 maturing May 2038. Interest at various rates between 2%		
and 3.75% is due May and November beginning November		
2018. Current portion is 185,000.	3,725,000	
$2,335,000 Series 2018A-2 Capital Improvement Revenue		
Bonds are due in annual principal installments beginning May		
2019 maturing May 2038. Interest at various rates between		
4.375% and 5% is due May and November beginning November 2018. Current portion is $105,000.	
2,220,000	
Bond payable	23,245,000	
Bond discount, net	(69,738)	
Bonds Payable, Net	$	23.175,262	

Rivers Edge Community Development District NOTES TO FINANCIAL STATEMENTS
September  30, 2019

NOTE E - LONG-TERM DEBT {CONTINUED)

The annual requirements to amortize the principal and interest of bonded debt outstanding as of September 30, 2019 are as follows:

Year Ending
September 30,	 	Principal	 	Interest		Total	

2020	$	600,000	$ 1,118,864	$ 1,718,864	
2021	530,000	1,097,250	1,627,250	
2022	550,000	1,077,336	1,627,336	
2023	575,000	1,056,514	1,631,514	
2024	595,000	1,034,265	1,629,265	
2025-2029	3,385,000	4,777,475	8,162,475	
2030-2034	4,265,000	3,920,595	8,185,595	
2035-2039	4,980,000	2,789,068	7,769,068	
2040-2044	4,365,000	1,627,790	5,992,790	
2045-2049	3,400,000	448,917	3,848,917	
Totals	$ 23,245,000	$18,948,074	$42,193,074	

Summary of Significant Bond Resolution Terms and Covenants

Capital Improvement Revenue and Refunding Bonds

Significant Bond Provisions

The Series 2016 Bonds are subject to redemption at the option of the District prior to their maturity, in whole or in part, at any time after May 1, 2026 at a redemption price set forth in the Trust Indenture. The Series 2016 are subject to extraordinary mandatory redemption prior to maturity in the manner determined  by the Bond Registrar  if certain events  occurred as outlined  in the Trust Indenture.

The Series 2018 Bonds are subject to redemption at the option of the District prior to their maturity, in whole or in part, at any time after May 1, 2028 at a redemption price set forth in the Trust Indenture. The Series 2018 are subject to extraordinary mandatory redemption prior to maturity  in the manner determined  by the Bond Registrar  if certain events occurred as outlined  in the Trust Indenture.

The Series 2018A-1 and Series 2018A-2 Bonds are subject to redemption at the option of the District prior to their maturity, in whole or in part, at any time after May 1, 2028 at a redemption price equal to the principal amount of the Series 2018-1 Bonds and Series 2018A-2 Bonds to be redeemed, together with accrued interest to the date of redemption. The Series 2018-1  and Series 2018-2 Bonds are subject to extraordinary mandatory redemption prior to maturity in the manner determined by the Bond Registrar if certain events occurred as outlined in the Trust Indenture.

Rivers Edge Community Development District NOTES TO FINANCIAL STATEMENTS
September  30, 2019

NOTE E - LONG-TERM DEBT (CONTINUED)

Summary of Significant Bond Resolution Terms and Covenants (Continued)

Capital Improvement Revenue and Refunding Bonds (Continued)

Significant Bond Provisions (Continued)

The Trust Indenture established certain amounts be maintained in a reserve  account.  In  addition, the Trust Indenture has certain 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.

Depository Funds

The bond resolution establishes certain funds  and determines  the  order in which revenues  are to be deposited into these funds. A description  of the significant  funds, including their purposes, is as follows:

Reserve Funds - The Series 2016 Reserve Account shall not exceed 50%  of the maximum annual debt service requirement.  As of September  30, 2019, the reserve account balance  for  the Series 2016 was $216,010. As of September 30, 2019, the maximum  reserve  account balance for the Series 2016 was $216,010. The Series 2018 Reserve  Accounts  were  funded from the proceeds of the Series 2018 Bonds in amounts equal to 25 percent of the outstanding maximum annual debt service of the Series 2018 Bonds. The Series 2018A-1 and  Series  2018A-2 Reserve Accounts were funded from the proceeds of the Series 2018A-1 and Series 2018A-2 Bonds in amounts equal to 50 percent of the outstanding Series 2018A-1 and Series 201BA-2 Bonds. Monies held in the reserve accounts will be used only for the purposes established in the Trust Indenture.

The following is a schedule of required reserve balances as of September 30, 2019:

	Reserve
 	Balance		Reserve
Requirement	
Capital Improvement Revenue Bonds, Series 2018	$	117,511	$	117,511	
Capital Improvement Revenue Refunding Bonds, Series 2018A-1	. $	92,242	$	91,438	
Capital Improvement Revenue Refunding Bonds, Series 2018A-2	$	137,838	$	137,297	

Subsequent to year-end, the District made principal prepayments on the Series 2016, Series 2018A-1, and Series 2018A-2 Bonds. Principal prepayments were made on the Series 2016 Bonds of $5,000 in November 2019 and $15,000 of February 2020. Principal prepayments were made on the Series 2018A-1 Bonds of $25,000 in November 2019 and  $10,000  of February 2020. Principal prepayments were made on the Series 2018A-2 Bonds of $20,000 in November 2019 and $10,000 of February 2020. There principal prepayments are reflected in the current portion of bond payable at of September 30, 2019.

Rivers Edge Community Development District NOTES TO FINANCIAL STATEMENTS
September  30, 2019

NOTE F - ECONOMIC DEPENDENCY

The Developer owns a significant portion of land within the District; therefore,  assessment revenue in the general and debt service funds include the assessments levied on those lots and property owned by the Developer. At September 30, 2019, some of the board members were affiliated with the Developer.

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

NOTE G - 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 for which the  government carries commercial insurance. There were no claims or settled claims from these risks that exceeded commercial insurance coverage in the last three years.

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
Rivers Edge Community Development District St. Johns 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 Rivers Edge Community Development District, as of and for the year ended September 30, 2019, and the related notes to the financial statements, and have issued our report thereon dated June XX, 2020.

Internal Control Over Financial Reporting

In planning and performing our audit, we considered Rivers Edge Community Development District's internal control over financial reporting 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 Rivers Edge Community Development District's internal control. Accordingly, we do not express an opinion on the effectiveness of Rivers Edge Community Development District's internal control over financial reporting.

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 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 over financial reporting 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.

To the Board of Supervisors
Rivers Edge Community Development District

Compliance and Other Matters

As part of obtaining reasonable assurance about whether Rivers Edge Community Development District's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the 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.

Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL
Fort Pierce, Florida June XX, 2020

DRAFT

MANAGEMENT LETTER

To the Board of Supervisors
Rivers Edge Community Development District St. Johns County, Florida

Report on the Financial Statements

We have audited the financial statements of the Rivers Edge Community Development  District  as of and for the year ended September 30, 2019, and have issued our report thereon  dated  June XX, 2020.

Auditor's Responsibility

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

Other Reporting Requirements

We have issued our Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and our Independent Auditor's Report on an examination conducted in accordance with A/CPA Professionals 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 June XX, 2020, should be considered in conjunction with this management letter.

Prior Audit Findings

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

Financial Condition and Management

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

To the Board of Supervisors
Rivers Edge Community Development District

Pursuant to Sections 10.554(1)(i)5.c. and 10.556(8), Rules of the Auditor General, we applied financial condition assessment procedures for Rivers Edge Community Development  District.  It  is management's responsibility to monitor the Rivers Edge Community Development District's financial condition; our financial condition assessment was based in part on the representations made by management and the review of the financial information provided by the same as of September 30, 2019.

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

Additional Matters

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

Purpose of this Letter

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, the Board of Supervisors, and applicable management, and is not intended to be and should not be used by anyone other than these specified parties.·

Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL
Fort Pierce, Florida June XX, 2020

INDEPENDENT ACCOUNTANT'S REPORT/COMPLIANCE WITH SECTION 218.415, FLORIDA STATUTES

To the Board of Supervisors
Rivers Edge Community Development District St. Johns County, Florida

We have examined Rivers Edge Community Development District's compliance with Section 218.415, Florida Statutes during the year ended September 30, 2019. Management is responsible for Rivers Edge Community Development District's compliance with those requirements. Our responsibility is to express an opinion on Rivers Edge Community Development 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 and, accordingly, included examining, on a test basis, evidence about Rivers Edge Community Development District's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on Rivers Edge Community Development District's compliance with the specified requirements.

In our opinion, Rivers Edge Community Development District complied, in all material respects, with the aforementioned requirements during the year ended September 30, 2019.

Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL
Fort Pierce, Florida June XX, 2020