INDIGO
COMMUNITY DEVELOPMENT DISTRICT

The regular meeting of the Board of Supervisors of the Indigo Community Development District was held Thursday, November 19, 2020 at 1:00 p.m. in the Holiday Inn Daytona Beach LPGA Boulevard, Ballroom, 137 Automall Circle, Daytona Beach, Florida.

Present and constituting a quorum were:

John McCarthy Donald Parks Robert E. Welsh Mark McCommon Kevin Kilian

Chainnan  Vice Chairman
Assistant Secretary Assistant secretary Assistant Secretary

Also Present were:

James Perry Wes Haber Mark Spelling
Kurt von der Osten Jamie Rountree

District Manager
District Counsel by telephone District Engineer
Field Operations Manager Team Rountree

FIRST ORDER OF BUSINESS	Roll Call
Mr. Perry called the meeting to order at 1:00 p.m. and called the roll.

SECOND ORDER OF BUSINESS	Audience Comments
There being none, the next item followed.

THIRD ORDER OF BUSINESS	Organizational Matters
Oath of Office for Newly Elected Supervisors
Mr. Perry being a notary public of the State of Florida administered the oath of office to Mr. Kilian and Mr. Parks.

Consideration of Resolution 2021-01 Designating Officers
Mr. Perry stated after each election we designate officers. Currently Mr. McCarthy is chairman, Mr. Parks is vice chairman, I am secretary and treasurer, Patti Powers in my office is

assistant treasurer, Mr. Lovera in my office is assistant treasurer and Mr. Oliver and Mr. Torres in my office are assistant secretaries and the remaining three supervisors who are not chair or vice chair will be assistant secretaries.

On MOTION by Mr. Kilian seconded by Mr. Welsh with all in favor Resolution 2021-01 was approved reflecting the same slate of officers.

FOURTH ORDER OF BUSINESS	Approval of the Minutes of the October 28,
2020 Meeting

On MOTION by Mr. Parks seconded by Mr. McCommon with all in favor the minutes of the October 28, 2020 meeting were approved as presented.

FIFTH ORDER OF BUSINESS	Discussion of District Underwriter
Mr. Perry stated at the last meeting there was some discussion and a request by Lennar to potentially change underwriters. I spoke with them a few days ago and at this point in time they are still evaluating and they do not want to make a formal request to the board at this time. Our next meeting is in January and they should be able to decide what they would like to do by that time.

SIXTH ORDER OF BUSINESS	Ratification of Engagement Letter with Grau
& Associates for the Fiscal Year 2020 Audit
Mr. Perry stated next is ratification of the engagement letter with Grau & Associates to perform the fiscal year 2020 audit in the amount of $5,000. That is consistent with what we budgeted for this year and consistent with their bid.

On MOTION by Mr. McCarthy seconded by Mr. Parks with all in favor the engagement letter with Grau & associates to perform the fiscal year 2020 audit in the amount of$5,000 was ratified.

SEVENTH ORDER OF BUSINESS
District Counsel

Staff Reports

Mr. Haber stated I checked with Katie before the meeting and she asked me to let the board know there is no update on the litigation.

District Engineer
Mr. Spelling stated Lennar had a preconstruction meeting with the city and they are setting one up with the county, they hope to be under construction before the end of the year and they also had some discussion regarding preparing the engineer's report for the Phase 2 portion of the project.

District Manager
Mr. Perry stated we started working on the audit schedules with Grau & Associates.

Field Operational Manager
Mr. von der Osten stated in the last month there was some flooding on International Golf Drive and Rountree helped pump some water off the road. Since then we had the city cleaning out the drainage system and we will monitor that and make sure it is helping that matter. It is a very low area that we know is subject to flooding.
As far as general maintenance we are doing well right now. All the replacements and
money we spent throughout the year on lighting replacement and the fountain rebuilding has helped. We seem to lose a light here and there. We reset the lights for daylight savings time, we keep replacing the timers. Once in a while we get a power outage that throws them off.
Mr. Kilian asked where are we on the paver and pothole situation?
Mr. von der Osten stated the city has the work orders, but I will follow-up. We submitted the documentation online so there is always a record of that.
Mr. McCommon asked are we pretty much done with all the landscaping that we were
going to do at the entrance?
Mr. von der Osten stated there is still a little bit at the International Golf Drive entrance, but it is pretty far along. I know he was behind with the rain, but I think we are about to hit a drier season.
Mr. McCommon stated the main entrance off Champions where we changed all the trees,
that is done, right.

November 19, 2020	Indigo Community Development District

Mr. von der Osten stated yes.

EIGHTH ORDER OF BUSINESS	Supervisors
Comments

Requests	and	Audience

Mr. McCommon asked can you give a summary of where our bonds are?
Mr. Perry stated there are three sets of bonds: the 1999A Bonds are on a limited assessment area and those bonds are currently current and no working issues with those bonds. We also have the series 1999C Bonds, which are spread over all the units within the CDD, we refer to the south section and the north section, the 1999Cs are layered on every parcel in the district. Those bonds are still in default, they have been for a number of years and the reason is obviously with the downturn there was significant land holdings by different investor groups and once they defaulted on the bonds, they have been in the process of being worked out with the trustee so there has been some sales and purchases of land associated with those lands that are in default but not all of it has been cured and some of it is related to the foreclosure process with the bondholders. The 2005 Bonds basically the same scenario but they are only layered on lands within the south portion of the project. Most of the homes within the district that have been constructed they do not have any 2005 debt; it is only the homes in the south area and the lands there. They are also in default because a lot of those lands weren't developed and went into default and eventually into the foreclosure process since the investors and landowners did not make their payments.
That is a quick overview and the reason we are in such good shape with our general fund  is because in the 2010 timeframe we assessed directly the O&M related to those lands that were delinquent, tax certificates were sold on those lands and we have been able to recoup all our assessments basically. We have been consistently reducing assessments on operations and maintenance over the last four to five years. Other than the bonds, the district is in really good shape.

2025.

Mr. Mccommon stated they are all 30-year bonds so the 1995s will be fully paid off in

Mr. Perry stated there are no 1995 bonds, the 1999s will be in 2029 and the 2005 Bonds

will be paid off in regard to the parcels that are not in default. What will happen is in 2029 your house that has 1999C bonds assessed to it won't have that going forward. Unless these are cured out of default we will still have debt for the district but it won't be on your parcel.
Mr. Mccommon stated then you will only assess the maintenance.

Mr. Perry stated that is correct.
Mr. Welsh asked are there any delinquents?
Mr. Perry stated everything is on the assessment roll so it is on the tax bills. Those properties that are in default are delinquent on their debt portion. We have been fortunate where we have collected almost all of our O&M assessments, so we are in good shape.
Mr. McCommon stated at one point a few months ago one or more of the buyers were working out, modifying the potential amount due to the bondholders.
Mr. Perry stated correct. Those are still in process. The best scenario is this; all those lands that are in default if they came to an agreement with the bondholders and for example the person who wants to buy the land will pay 70¢ on the dollar and the bondholders accept that so those are now all current, all the residential is current, we would have the opportunity then to refinance those bonds. I'm not going to say that it is likely that is going to happen, but even ifwe could get to the point where we have 90% not in default you may be able to refinance and get a lower rate because our rates are high for these bonds.

NINTH ORDER OF BUSINESS	Approval of Check Register

On MOTION by Mr. Parks seconded by Mr. McComrnon with all in favor the check register was approved.

TENTH ORDER OF BUSINESS	Financial Statements as of October 31, 2020
Mr. Perry stated the financials are included in the agenda package and that is only one month of the operations of the district. In the general fund at the end of October we had approximately  $2.4 million  in cash and  available  funds, our budget on an annual  basis is  about
$1.1 million for expenditures.   We almost  have twice what you need  to cash flow the district for
two years. What we always do with community development districts is we want to have a minimum of about three to four months' worth of cash flow and this district  has two years.  That is a result of the actions of this board related to those defaulted properties so hopefully, we will be able to continue to reduce assessments going forward and that will eat way into that $2.2 million.
Mr. McCommon stated we lowered them for this year, and we had projects that were over and above what we anticipated for expenditures. What do you anticipate our cash position will be in 12 months?

Mr. Perry stated I expect it is will probably right at $2 million.
Mr. McCarthy asked there is no limit on the amount of fund balance you can carry, is there?
Mr. Perry stated no, there is no restriction. The only guideline is the industry standard of practice is to have three to four months at a minimum.
Mr. McCommon stated if there were a sizable project, we wanted to undertake those funds
could be used for that.
Mr. Perry stated correct.
Mr. McCommon asked are you recommending that we do something with that?
Mr. Perry stated no, I'm just pointing out where you are because it is a little unusual to be in default on the bonds and to have adequate supplies of cash on hand.
Mr. Mccommon asked are there any projects that are not needed but would be nice to
have?
Mr. von der Osten stated you can see what is left on that list. We had that list at one time
and Jim will have to say what you are allowed to do.
Mr. McCarthy stated there are a number of oak trees that need to be replaced.
Mr. von der Osten stated I can come up with a list, the entry monuments the stucco is cracking and falls off and we patch it, so fresh monuments and signage is something. You might want to look at all that before you start to draw down on the amount.
Mr. McCommon asked is that something we ought to talk about at the January meeting if
there are a couple of things that you want to bring to our attention and what they might cost?
Mr. Perry stated we can do that.

ELEVENTH ORDER OF BUSINESS	Next	Scheduled	Meeting	-	Wednesday,
January 27, 2021 at 1:00 p.m. @Holiday Jun
Mr. Perry stated the next scheduled meeting is Wednesday, January 27, 2021 at 1:00 p.m. in the same location.

On MOTION by Mr. Welsh seconded by Mr. Parks with all in favor the meeting adjourned at 1:27 p.m.

Secretary

Chairman/Vice Chairman