3501 Quadrangle Blvd., Suite 270, Orlando, FL 32817

Phone: 407-723-5900

Fax: 407-723-5901

https://universityparkrd.com/

The meeting of the Finance Committee of the University Park Recreation District will be held on
Wednesday, May 20 at 3:00 pm at the Business Offices located at 8301 The Park Boulevard, University Park, FL 34201 and or virtually.

Meeting ID: 873 3546 9545 Passcode: 899142

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Finance Committee Meeting Agenda

Organizational Matters
Call to Order




Roll Call to Confirm Quorum
Public Comment Period [for any members of the public desiring to speak on any proposition before the Committee]

Administrative Matters
1.  Review & Approval of Finance Committee Minutes:

a.
b.
c.

3/16/2026 Meeting Minutes
4/13/2026 Workshop Minutes 4/15/2026 Meeting Minutes

Staff Matters
Review of April Financial Summaries and Membership Report
Review, Discuss, and Approve Final Draft of Capital Expenditure Approval Process

Business Matters
1. Discuss & Recommend Proposed Operating Budget (Enterprise Fund) FY 2027

2. Discuss & Recommend 2025 Audit Report

Review of Progress on Country Club Management Agreement Review
Presenter: Alan Port

Review of Progress on Cost of Ownership Project
Presenter: Tony Crisafio

Review Status of Line of Credit Proposal
Presenter: Craig Dwight

6. Schedule Reserve Review by Department

Next Meeting Scheduled

Finance Committee Member Requests & Comments

Public Comments

Adjournment

Date

Meeting Type

Time

Location

Note

June 17, 2026

Finance Committee Meeting

3:00 pm

Business Offices

In person or by Zoom

Approval of Finance Committee Minutes

3/16/2026 Meeting Minutes
4/13/2026 Workshop Minutes
4/15/2026 Meeting Minutes

MINUTES OF MEETING

UNIVERSITY PARK RECREATION DISTRICT FINANCE COMMITTEE MEETING
Monday, March 16, 2026
3:00 pm
Business Offices
8301 The Park Boulevard, University Park, FL 34201

Finance Committee Members present:

Richard Crouch Cathie Schaffer Alan Port
Tony Crisafio
Craig Dwight

Chair Vice-chair Secretary Member
Member

Also, present in person or via Zoom:

Steve Swanson John Fetsick Paul Fay
Sydney Johnson

Treasurer – University Park Recreation District General Manager – University Park Country Club Controller – University Park Country Club
Communications Director – University Park Country Club

Various members of the public

FIRST ORDER OF BUSINESS

Organizational Matters:
Call to Order, Roll Call, Pledge of Allegiance

Mr. Crouch called the meeting to order at approximately 3:00 PM. Roll call was conducted, and a quorum was confirmed. The Committee then stood and recited the Pledge of Allegiance.
Public Comments
Mr. Steve Ludmerer provided comments regarding the proposed Capital Expenditure Approval Process. He suggested consideration of increasing the capitalization threshold from $2,500 to $5,000, including the Treasurer in department review communications, and distinguishing replacement of existing facilities from new or expanded facilities in capital presentations. Mr. Ludmerer also commented on financing flexibility within an enterprise

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fund framework and clarified that any borrowing entity would likely need to be the District and/or enterprise fund rather than a specific amenity being the country club.
There being no further public comments, the public comment period was closed.

SECOND ORDER OF BUSINESS

Administrative Matters: CONSIDERATION OF MINUTES

Mr. Crouch referenced the February 18, 2026 Finance Committee Meeting Minutes and the

March 2, 2026 Joint Finance Committee and Strategic Planning Committee Workshop Minutes.

A clarification was noted for the March 2 workshop minutes to reflect that the benchmarking figures presented were unadjusted and that direct comparisons to benchmarks without adjustment were not entirely appropriate.

On MOTION by Mr. Port, seconded by Mr. Crisafio, with all in favor, approval of the February 18, 2026 Finance Committee Meeting Minutes and the March 2, 2026 Joint Workshop Minutes, as clarified, was approved.

THIRD ORDER OF BUSINESS

REVIEW OF CAPITAL EXPENDITURE APPROVAL PROCESS

Mr. Fay reviewed the revised Capital Expenditure Approval Process and explained that the document had been updated to reflect prior Committee feedback.

Discussion included increasing the capitalization threshold from $2,500 to $5,000, requiring Board approval for capital expenditures that exceed the authorized budgeted amount by more than 20 percent, reporting project variances to the Committee and Board upon completion, and removing the emergency capital section. Committee members also discussed revisions to improve clarity in certain language and to better identify funding sources.

Management indicated it was comfortable with the revised $5,000 capitalization threshold and noted that items in the $2,500 to $5,000 range would still be internally reviewed to ensure no significant assets were overlooked.

On MOTION by Mr. Crouch, seconded by Ms. Schaffer, with all in favor, the Capital Expenditure Approval Process was approved, as revised and discussed, including an increase in the capitalization threshold to $5,000.

Mr. Fay stated he would update the document and present it to the committee at a future meeting.

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FOURTH ORDER OF BUSINESS

Staff Reports:
REVIEW OF FEBRUARY FINANCIAL SUMMARY

Mr. Fay reviewed the February 2026 financial summary and reported that year-to-date total revenues were favorable to budget, while operating expenses were also favorable, resulting in a positive net operating surplus variance of approximately $268,000.

Mr. Fay noted favorable performance in golf operations, including outside rounds and merchandise sales, as well as favorable dining variances related to cost of goods sold and payroll. He also reported a favorable variance in general and administrative expenses.

Discussion followed regarding the District’s cash position compared to the prior year, including the impact of amounts advanced to the irrigation fund. It was noted that if bond proceeds do not materialize, available cash would be materially reduced.

Mr. Fay also reviewed the revised membership report format, which now reflects activity on a calendar-year basis and includes additions, resignations, conversions, and net changes. Committee members expressed support for the revised presentation format.

Mr. Fetsick also reviewed recently approved initiation fee increases adopted by the Board of Supervisors and clarified implementation dates and grandfathering of certain waitlisted applicants.

The Committee also discussed simplifying the sources and uses schedule to separate major projects over $250,000 and more clearly break out current-year sources such as initiation fees, capital income, and outside golf.

No formal action was taken.

FIFTH ORDER OF BUSINESS

Business Matters:
RECOMMENDATION REGARDING CURRENT IRRIGATION FINANCING NOTE

Mr. Crouch reviewed the status of the current irrigation financing note and summarized

recent discussions with bond counsel and the District’s financial advisor. He explained that repayment of the note could only be made from bond proceeds or from the related non-ad valorem assessments.

Mr. Crouch stated that while a two-year extension of the note may be possible, such an extension would result in approximately $500,000 in additional interest expense. He further

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noted that any long-term financing beyond five years would likely require a new referendum and bond validation process.

The Committee discussed whether to recommend extending the note in the event bond proceeds are not available in time to meet the tax roll deadline. Committee members expressed concern regarding the additional interest cost associated with an extension and the lack of certainty that a new referendum process would avoid similar legal challenges.

On MOTION by Mr. Crouch, seconded by Mr. Port, with all in favor, the Committee recommended that if bond proceeds are not available by the tax roll deadline, the Board proceed with assessment rather than extend the current note.

The Committee also expressed that it did not recommend initiating a new referendum and bond validation process at this time.

SIXTH ORDER OF BUSINESS

REVIEW OF FINANCING ALTERNATIVES SUMMARY

Mr. Crouch continued the discussion regarding financing alternatives if bond proceeds are not available for the broader capital improvement plan.
Three options were reviewed:
A non-ad valorem assessment phased according to projected project cash flow over a three- to four-year period;
A one-time assessment for the full project amount;
Successive short-term financing or term-loan style borrowing over five years.

The Committee discussed the relative advantages and disadvantages of each option. Members generally agreed that successive short-term borrowing would be the least practical due to cost and complexity.

The Committee also discussed the benefits and drawbacks of a phased assessment versus a one-time assessment, including the impact on residents and the overall administrative approach.

Mr. Fetsick suggested that if a one-time assessment were considered, the District could explore whether a financial institution such as Regions Bank may be willing to offer financing options directly to residents.

Committee consensus favored the phased assessment approach tied to cash flow as the most sensible option at this time, while acknowledging that a one-time assessment remained a viable alternative.

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Mr. Crouch and Mr. Fay stated they would prepare an advantages and disadvantages summary for presentation to the Board on March 31, 2026.

SEVENTH ORDER OF BUSINESS

REVIEW OF FRONT NINE MAINTENANCE / CAPITAL PROJECT SCOPE

The Committee reviewed the proposed Front Nine maintenance and capital project scope, including several high-priority improvements that could proceed without a full closure of the front nine.

Discussion included bulkhead replacement at Hole No. 5, drainage improvements, cart path and curb repairs, tree replacement, and landscape enhancements. The total estimated cost of these projects was approximately $400,000.

Mr. Fetsick also reviewed the condition of the boardwalk area in front of the Varsity Club and stated that the Board supported moving forward with improvements, but requested that management explore alternatives beyond a like-for-like wood replacement. He noted that possible alternatives may include composite materials and a broader design approach that could better integrate the space as an outdoor extension of the Varsity Club. Estimated cost for the boardwalk work was discussed in the range of approximately $150,000 to
$200,000.

On MOTION by Mr. Crouch, seconded by Mr. Crisafio, the Committee recommended that the RD Board of Supervisors approve approximately $600,000 in capital expenditures, consisting of approximately $400,000 for Front Nine projects and approximately $150,000 to $200,000 for boardwalk replacement or renovation.

Upon a vote, the motion passed 4-1.

EIGHTH ORDER OF BUSINESS

CONTINUED DISCUSSION OF CAPITAL INCOME OPTIONS AND RESERVE REǪUIREMENTS

Ms. Schaffer presented additional analysis regarding capital income options, including transfer fee scenarios and capital dues increase models.

Discussion focused primarily on a potential transfer fee to be imposed in connection with property sales within the community. Various scenarios were reviewed, including 0.5 percent, 0.75 percent, 1 percent, and 2 percent structures, based on recent sales activity. Committee members generally expressed strong support for continuing to evaluate the transfer fee concept as a potential long-term capital funding source.

The Committee discussed whether the fee should be designated to the buyer or seller or left to negotiation between the parties, and whether a flat percentage would be preferable

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to a tiered structure. Legal authority, comparable community practices, and implementation considerations were also discussed.

Committee direction was given for continued research and coordination with appropriate legal counsel and outside contacts regarding the implementation process and comparable transfer fee structures used elsewhere.

The Committee also reviewed scenarios for increasing capital dues across membership categories. It was the consensus of the Committee to defer further consideration of capital dues increases until there is more clarity regarding the bond situation, assessments, and broader capital funding strategy.

No formal action was taken.

NINTH ORDER OF BUSINESS

DISCUSSION OF BANKING RELATIONSHIP OPPORTUNITIES

Mr. Dwight led a discussion regarding banking relationship opportunities, including a purchasing card program, a revolving line of credit, and a non-revolving line of credit for equipment purchases.

The Committee discussed the potential benefit of establishing broader banking services to support operating liquidity, purchasing controls, emergency reserves, and equipment financing. It was also suggested that maintaining more than one banking relationship could provide both risk management and competitive leverage.

Mr. Fetsick reported that management had begun discussions with Regions Bank and that the bank had expressed strong interest in providing banking and credit services. It was also noted that the HOA may have an interest in participating in a broader banking relationship discussion.

No formal action was taken.

TENTH ORDER OF BUSINESS

CONTINUED DISCUSSION OF COST OF OWNERSHIP ANALYSIS

Mr. Crisafio presented an updated analysis comparing University Park with other communities based on homeownership costs, taxes, fees, and amenities.

Discussion followed regarding the challenges of comparing communities with differing amenity packages, HOA structures, non-ad valorem assessments, and included services. Committee members generally agreed that the analysis supported the conclusion that University Park’s overall costs are not materially out of line with comparable communities.

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Committee members discussed the need to simplify the presentation for broader community use and to gather more detailed HOA-related information directly from contacts within comparable communities.

Mr. Crisafio agreed to continue refining the analysis and prepare a list of questions for Committee members to use in gathering additional comparison information.

No formal action was taken.

ELEVENTH ORDER OF BUSINESS

BUDGET WORKSHOP SCHEDULING

The Committee discussed scheduling a budget workshop to review the proposed Fiscal Year 2027 operating and capital budgets.

Consensus was reached to hold the budget workshop on April 9, 2026, at 2:00 p.m., with in-person attendance and a Zoom option available.

It was noted that the workshop would be used to review the proposed budgets and related presentation materials in advance of the Committee’s recommendation to the Board.

Next Meeting Scheduled

Committee Member Comments G Requests:
Mr. Swanson and other participants also offered comments related to community comparisons, the complexity of HOA cost comparisons across neighborhoods, and the importance of presenting conclusions in a clear and simplified manner for residents.
Committee discussion also emphasized the need for practical and understandable communication regarding future capital funding options and the District’s competitive position relative to comparable communities.

Public Comment:

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Date

Meeting Type

Time

Location

Note

April 9, 2026

Finance Committee Workshop

2:00 PM

Business
Offices

In person or by Zoom

Mr. Ludmerer provided comments regarding transfer fee authority, capitalization thresholds, the structure of capital presentations, and financing flexibility within an enterprise fund framework.
Adjournment
There being no further business to come before the Committee, the meeting was adjourned at 5:25 PM.

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MINUTES OF MEETING

UNIVERSITY PARK RECREATION DISTRICT FINANCE COMMITTEE WORKSHOP
Monday, April 13, 2026
11:00 AM
Business Offices
8301 The Park Boulevard, University Park, FL 34201

Finance Committee Members present in person or via Zoom:

Richard Crouch Alan Port
Tony Crisafio
Craig Dwight Absent:
Cathie Schaffer

Chair Secretary Member
Member

Vice Chair

Also, present in person or via Zoom:

Steve Swanson John Fetsick Paul Fay Sydney Johnson
Kwame Jackson

Treasurer – University Park Recreation District General Manager – University Park Country Club Controller – University Park Country Club
Communications Director – University Park Country Club
Assistant District Manager – PFM

Various members of the public

FIRST ORDER OF BUSINESS

Organizational Matters
Call to Order, Roll Call, Pledge of Allegiance, Public Comment

The workshop was called to order at approximately 11:00 AM by Mr. Crouch. A quorum was confirmed with four directors attending in person. The Pledge of Allegiance was recited.
The public comment period was opened. No public comments were made.

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SECOND ORDER OF BUSINESS

Business Matters
REVIEW G DISCUSS PROPOSED OPERATING BUDGET (ENTERPRISE FUND) FY 2027

Chair Crouch stated the meeting was a workshop for discussion purposes only and that no final decisions would be made. He noted a recommendation is expected to be made at the regular Finance Committee Meeting scheduled for April 15, 2026.
Chair Crouch also discussed procedural considerations regarding inclusion of any assessment increases in the preliminary budget to be presented to the Board of Supervisors. Staff indicated legal counsel would confirm requirements prior to the next meeting.
Controller Paul Fay reviewed the budget development process, explaining that department heads were provided budget workbooks in February containing prior-year actuals, current-year budgets, rolling 12-month performance, and forecasts. Department heads submitted FY2027 proposals which were reviewed and refined by staff and management over the past 6–8 weeks.
The proposed FY2027 Enterprise Fund Operating Budget reflects:
Revenue: $14.335 million
Expenses: $13.854 million
Operating Income: $481,000
Capital Allocation: $1.387 million Revenue Discussion
Discussion included the primary revenue streams:
Membership Dues: $7.056 million
Golf Operations: $3.672 million
Racquets G Fitness: $86,000
Dining: $3.215 million Membership Dues
Mr. Fay reviewed the proposed 6% increase in membership dues.
Examples discussed included:
Full Family Membership: $12,425 (up $710)

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Full Single Membership: $6,450 (up $540)
Racquets Family Membership: $5,355 (up $305)
Racquets Single Membership: $4,015 (up $230)
Social Family Membership: $1,650 (up $100)
Social Single Membership: $1,275 (up $75)
The budget assumes annual full memberships remain capped at 450.
Minimal increases were also proposed for certain passes, including:
Pickleball Pass
Twilight Pass
Social Access Pass
Social Driving Range Pass
Committee members clarified that dues and pass increases would take effect January 1, 2027. The Fitness Pass add-on will remain unchanged due to current facility limitations.
Initiation Fees, Capital Funding G Capital Dues
Initiation fees are proposed to remain flat following recent increases.
Capital dues remain at:
Resident: 5% of dues
Non-resident: 10% of dues
The Committee discussed whether capital dues percentages could be increased prior to final budget adoption in August.
Staff noted the initiation fee budget was conservatively estimated at $680,000 based on recent home sale and membership conversion trends.
Discussion also included recent increases in initiation fees to:
Resident Full: $25,000
Non-Resident Full: $50,000
Staff noted the market response will continue to be monitored. Golf Operations
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Mr. Fay reviewed assumptions for golf rounds:
Member Rounds: 44,446
Outside Rounds: 28,281
Total Rounds: 72,727
Staff noted the continued prioritization of member access and experience.
The Committee discussed outside rounds assumptions, public play trends, and impacts from prior-year hurricane closures.
Trail Fee Increases
Trail fee increases were proposed as follows:
Resident Single: $1,650
Non-Resident Single: $2,650
Resident Family: $2,450
Non-Resident Family: $3,675
Mr. Fetsick explained the club alternates cart fee and trail fee increases.
He also clarified that non-resident trail fees are no longer sold and are only maintained for existing grandfathered participants.
Dining Operations
Staff reviewed dining assumptions, including:
modest revenue increases from menu price adjustments;
no disruption assumed from kitchen renovations;
improved efficiencies under Chef Justin.
A 3% menu price increase is included in the budget.
Food cost assumptions include:
Food: 46%
Wine: 40%
Liquor: 31%
Beer: 32%
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Soda: 34%
The Committee discussed the dining subsidy and whether future increases should be covered by menu pricing or dues.
Labor
Payroll assumptions include:
no significant headcount changes;
4–5% increases for salaried staff;
3–4% discretionary increases for hourly staff;
minimum wage increases effective September 2026.
Payroll is projected at 54% of total revenue, consistent with industry benchmarks.
Staff compensation assumptions took into account Club Benchmarking, RSM compensation reports, and local club comparisons.
Food & Beverage Minimum
The FY2027 budget includes approximately $40,000 in food and beverage minimum revenue.
The Committee discussed potentially removing the food and beverage minimum in future years. Staff noted any such change would likely affect FY2028 due to timing of fiscal year recognition.
Operating Surplus Philosophy
The Committee discussed why FY2027 operating income is budgeted lower than the FY2026 forecast.
Staff explained the budget uses conservative assumptions for variable revenues while maintaining reliable dues revenue.
The Committee also discussed allocation of future operating surpluses to capital or operating reserves. Staff noted current operating reserves are approximately $400,000.
The Committee requested that in future comparison schedules that the percentage increase or decrease be included in the analyses.

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THIRD ORDER OF BUSINESS

REVIEW G DISCUSS PROPOSED CAPITAL BUDGET (ENTERPRISE FUND) FY 2027
Mr. Fay presented the proposed FY2027 Capital Budget totaling approximately $1.583 million.
The budget includes assets identified as requiring replacement in FY2027, including:

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Golf course improvements; Golf operations assets; Park Grille equipment; Varsity Club equipment; Fitness equipment; and
Racquets equipment.

The list includes, but is not limited to:

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$1.2 million in golf course improvements;
roof assembly/cart barn flat roof membrane repairs;
cart barn wall repairs;
starter structure improvements; recumbent bikes;
racquets ball machine;
refrigeration and beverage equipment replacements; and various golf course maintenance vehicles and equipment.

Mr. Fay explained that these items were identified through the capital reserve study and through meetings with department heads regarding assets that are beyond useful life or in need of replacement during FY2027.
A second list of items totaling approximately $123,846 was also presented as items that may need replacement but could potentially be deferred depending on operational needs and future capital improvement planning.
Committee discussion focused on the necessity and timing of the proposed expenditures. Staff noted that some items may overlap with future capital improvement projects, including kitchen renovation and broader facility enhancements.
Staff noted current capital account balances are approximately $1.1 million, with a portion already committed toward front nine improvements.

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Committee members generally agreed the listed items were reasonable and necessary.

FOURTH ORDER OF BUSINESS

REVIEW G DISCUSS PROPOSED GENERAL FUND BUDGET FY 2027
Mr. Fay reviewed the proposed General Fund Budget totaling $342,700.
Revenue sources include:





Prior Year Surplus: $2,878 Debt Service Transfer: $70,000
Country Club Transfer: $269,822

Discussion focused on increased District Counsel expenses of :150,000, due to:

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

bond-related matters;
bond anticipation note matters; litigation;
public records matters; and election-related matters.

Mr. Fetsick noted additional legal matters may continue to increase these costs. Insurance costs were increased to $24,200 based on broker recommendations. Election costs were removed for FY2027.
Website maintenance and management expenses were also adjusted slightly.

FIFTH ORDER OF BUSINESS

REVIEW G DISCUSS PROPOSED DEBT SERVICE FUND BUDGET FY 2027
Mr. Fay reviewed the proposed Debt Service Fund Budget.
Revenue:
Series 2019 Bonds Special Assessments: $1,594,068.75
Expenditures:

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Interest Payment (11/1/2026): $333,856.25
Interest Payment (5/1/2027): $333,856.25
Principal Payment (5/1/2027): $600,000.00
Funds available for the November 1, 2027, interest payment were also reviewed.

SIXTH ORDER OF BUSINESS

REVIEW G DISCUSS PROPOSED CAPITAL IRRIGATION FUND BUDGET FY 2027
Mr. Fay reviewed the proposed Capital Irrigation Fund Budget.
Revenue:
Series 2024 Note Special Assessments: $5,000,000.00
Expenditure:
Series 2024 Note due August 11, 2027: $5,000,000.00

The Committee discussed the relationship between the irrigation note and future financing considerations.

Next Meeting Scheduled

Finance Committee Member Requests
The Committee requested:
percentages be added to the budget presentation slides for Board review where practical;
additional detail and follow-up from department-specific budget meetings; and
continued review of operating and capital assumptions prior to formal recommendation.
Committee members generally expressed comfort with the operating budget assumptions, while noting risks related to:
golf maintenance costs;

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Date

Meeting Type

Time

Location

Note

April 15, 2026

Finance Committee Meeting

3:00 PM

Business
Offices

In person or by Zoom

fuel and fertilizer pricing; and
legal expenses.
Public Comment
No public comments were made.
Adjournment
There being no further business, the workshop of the Finance Committee was adjourned at approximately 12:38 PM.

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MINUTES OF MEETING

UNIVERSITY PARK RECREATION DISTRICT FINANCE COMMITTEE MEETING
Wednesday, April 15, 2026
3:00 pm
Business Offices
8301 The Park Boulevard, University Park, FL 34201

Finance Committee Members present:

Richard Crouch Cathie Schaffer Alan Port
Tony Crisafio
Craig Dwight

Chair Vice-chair Secretary Member
Member

Also, present in person or via Zoom:

Steve Swanson John Fetsick Paul Fay
Sydney Johnson

Treasurer – University Park Recreation District General Manager – University Park Country Club Controller – University Park Country Club
Communications Director – University Park Country Club

Various members of the public

FIRST ORDER OF BUSINESS

Organizational Matters:
Call to Order, Roll Call, Pledge of Allegiance

The meeting was called to order at 3:00 pm by Richard Crouch. A quorum was established. The Pledge of Allegiance was recited.

Public Comments

No public comments were made.

SECOND ORDER OF BUSINESS

Staff Matters:
REVIEW OF MARCH FINANCIAL SUMMARIES AND MEMBERSHIP REPORT

Paul Fay presented the March financial summaries and membership report as included in the agenda packet. The Committee engaged in discussion of operating performance, capital position, and key performance metrics. The following points were noted:

Net operating surplus reflects a $354,000 favorable variance year-to-date, with
$93,000 attributable to March.
Golf operations revenue contributed approximately $196,000 in favorable variance, driven by 1,424 additional outside rounds year-to-date.
Merchandise sales were approximately $43,000 favorable to budget.
Dining operations and general and administrative expenses combined produced approximately $193,000 in favorable variance.
Year-to-date surplus of approximately $912,000 is projected to normalize to approximately $750,000 by fiscal year-end as seasonal activity declines.
Cash decreased by approximately $62,000 in March, with capital reserves and short-term investments totaling approximately $1.478 million.
Including irrigation-related loaned funds, capital reserves could approximate $3.3 million assuming bond proceeds; otherwise, only $600,000–$700,000 is expected if the bond is not issued.
Year-to-date initiation fees total approximately $761,000, exceeding the budget of
$500,000.
The year-to-date adjusted net operating margin is approximately 14%, compared to 2.5% in FY2025. Labor expense remains acceptable at approximately 55% of operating revenue.

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Membership levels are as follows:
Full: 458
Racquets: 107
Social: 767
Outside rounds exceeded budget by 1,424 year-to-date, while member rounds were below budget, creating capacity for public play.
Discussion included sustainability of current favorable variances, seasonal performance expectations, and operational impacts of late tee time cancellations and no-shows.
Management noted that a proposal addressing tee time policies will be presented to the Golf Advisory Committee.

Conclusion:
Operating performance remains favorable to budget, with strong revenue performance offsetting expected seasonal moderation. Capital reserves remain stable but require continued monitoring and strengthening relative to future commitments.

THIRD ORDER OF BUSINESS

REVIEW AND DISCUSS AUDIT REPORT DRAFT

The Committee reviewed the draft audit report for the fiscal year ending September 30, 2025.

The draft audit report was distributed for Committee review.
The final audit report will be provided prior to the May 20 Finance Committee meeting.
The audit will be presented to the Board of Supervisors on June 2, 2026, with submission required prior to the June 30 deadline.
The Enterprise Fund reflects an operating loss due to depreciation and storm-related expenses; however, adjusted results reflect underlying operational profitability.

Discussion noted that the government accounting presentation is complex and differs from operational reporting, with Enterprise Fund results providing the most meaningful management perspective.

Conclusion:
Committee members will review the audit report in detail and provide comments prior to the next meeting.

FOURTH ORDER OF BUSINESS

REVIEW AND DISCUSS CAPITAL EXPENDITURE APPROVAL PROCESS

The Committee discussed proposed revisions to the capital expenditure approval process.
The capitalization threshold will remain at $2,500.
The Treasurer will be added to the approval process.
A variance threshold was established as the lesser of 20% of the project cost or
$50,000.
Unplanned capital expenditures will be limited to:
$50,000 per project
$100,000 annually

Emergency expenditure language will be added to address situations involving operational continuity, asset preservation, and safety.

Discussion included clarification of approval requirements for large capital projects and the need to prevent excessive budget overruns while maintaining flexibility for operational needs.

Conclusion:
The revised capital expenditure approval process will be incorporated into the operating agreement.

FIFTH ORDER OF BUSINESS

Business Matters:
FY2027 PRELIMINARY BUDGETS

The Committee discussed the proposed FY2027 budgets, including the Enterprise Fund (Operating), Capital, General Fund, Debt Service Fund, and Capital Irrigation Fund budgets.

Discussion included overall expense trends, including the increase in golf operations expenses over time, and the need for additional analysis to distinguish between payroll and direct operating costs. The Committee also discussed balancing operating expenditures with capital funding needs and evaluating opportunities to reduce discretionary spending.

The Committee reviewed timing requirements for budget adoption, noting that the preliminary budget must be approved by the Board of Supervisors by May 8, 2026, with final adoption required by September 15, 2026.

The Committee further discussed capital funding considerations, including the Capital Irrigation Fund (note repayment) and the potential need to include a kitchen project assessment in the preliminary budget if the Board intends to levy the assessment in the current tax cycle. It was noted that assessment amounts may be reduced after the preliminary budget but cannot be increased.

Motion:
A motion was made by Mr. Dwight to recommend to the Board of Supervisors approval of the FY2027 Preliminary Operating Budget (Enterprise Fund), Capital Budget (Enterprise Fund), General Fund Budget, and Debt Service Fund Budget, subject to continued review and refinement of expenses prior to final adoption.
Second:
The motion was seconded by Ms. Schaffer.
Vote:
The motion passed unanimously.

Motion:
A motion was made by Mr. Port to recommend that the Board approve the FY2027 Capital Irrigation Fund Budget and consider inclusion of a kitchen project assessment in the preliminary budget if funding is to occur within the current tax cycle.
It is anticipated that further kitchen project expense analysis will be completed prior to final budget approval.
Second:
The motion was seconded by Ms. Schaffer.
Vote:
The motion passed unanimously.

SIXTH ORDER OF BUSINESS

COST OF OWNERSHIP COMPARISON STUDY

Tony Crisafio presented an update on the ongoing Cost of Ownership comparison study.

The study is focused on comparing University Park to peer communities, including Laurel Oaks, Waterlefe, Country Club East, Lakewood Ranch Country Club, University Place, and Waterside.

The analysis centers on total cost of ownership, including HOA fees, special assessments, CDD taxes, and other related costs.

Approximately 300 data points have been collected to date, with a goal of obtaining 3–5 responses per community to establish a representative sample.

The study focuses on single-family homes in the $500,000 to $2 million range to ensure comparability.

Committee members were asked to identify any contacts they may have within these communities who might provide additional information to refine the data.

Discussion emphasized that the purpose of the study is to support future financial planning discussions, including capital funding strategies, transfer fees, and overall cost positioning relative to comparable communities.

Conclusion:
The Committee will continue data collection efforts, with results to inform future discussions regarding capital income strategies and long-term financial planning.

Next Meeting Scheduled

Committee Member Comments G Requests:
Request for a five-year analysis of golf operations expenses, including separation of payroll and direct operating costs
Continued discussion of capital funding strategies, including transfer fees and capital dues, to be addressed at a future meeting
Committee members to assist in gathering data for the Cost of Ownership comparison study
Concern raised regarding tee time cancellations and no-shows, with management noting a proposal will be presented to the Golf Advisory Committee
Request for review of governing documents, including the Operating Agreement and Mutual Cooperation Agreement, to identify any inconsistencies

Public Comment:
No public comments were made.

Adjournment
The meeting was adjourned at approximately 4:58 pm.

Date

Meeting Type

Time

Location

Note

May 20, 2026

Finance Committee Meeting

3:00 PM

Business
Offices

In person or by Zoom

STAFF REPORT:
April Financial Summaries Membership Report

UNIVERSITY PARK COUNTRY CLUB STATEMENT OF OPERATIONS

5/13/2026

1/4

YTD OPERATING RESULTS, 7 MONTHS THROUGH 4/30/26

Actual Results of UPCC Operations

Budget

$ Variance

% Change

COMMENTS

Total Revenues

$9,307

$9,138

$169

1.8%

Less: Outside Golf Capital Allocation

(211)

(192)

(19)

10.2%

10% of Outside Golf Allocated to Capital

Total Revenues, Less Capital Allocation

9,096

8,947

149

1.7%

Total Expenses

8,044

8,186

142

1.7%

Net Operating Surplus (Deficit)

1052

761

291

38.3%

Net Operating impact

Revenues and Expenses, Details

Actual

Budget

$ Variance

% Change

Dues revenue

$3,745

$3,790

($ 45)

(1.2%)

Golf operations revenue

2,915

2,712

203

7.5%

Outside rounds exceeded the budget by 1,666 rounds. Merchandise sales $55K favorable to budget.

Dining operations revenue

2,236

2,287

(51)

(2.2%)

Racquets/Fitness/Other operations revenue

200

157

43

27.2%

Subtotal, Revenues

9,096

8,947

149

1.7%

Golf operations

1,156

1,150

(7)

(0.6%)

Golf maintenance

2,162

2,081

(81)

(3.9%)

Projects that were budgeted for later in the year completed early

Dining operations

2,780

2,942

163

5.5%

COGS 68k, Payroll 30k, Linens 30k, waste and supplies

Racquets & Fitness operations

421

405

(16)

(3.9%)

General & Adm

1,525

1,607

82

5.1%

Payroll 30k, Advertising 19k,Ins.12k, CC Fees 10k & other various expenses

Subtotal, Expenses

8,044

8,186

142

1.7%

Net Operating Surplus (Deficit), net of $211k outside golf capital allocation

$1,052

$ 761

$ 291

38.3%

Variance is $291k, 38.3% from budget

UNIVERSITY PARK COUNTRY CLUB COMPARATIVE BALANCE SHEET AS OF APRIL 30, 2026 AND 2025

5/13/2026

2/4

UPCC Operating Fund

Capital Irrigation Fund

Assets

Unaudited 4/30/26

Unaudited 4/30/25

Unaudited 4/30/26

Unaudited 4/30/25

Comments & Assumptions

Operating Cash & Short-Term Investments

$3,880

$2,754

Accounts Receivable

763

800

Inventory

336

332

Deposits & Prepaids

590

485

FY26 - Prepaid Insurance & Prepaid Cart Lease, software, sales tax etc.

Future Assessments based on BAN or Long-Term Bonds

6,013

5,744

Amounts drawn from BAN, $4,140 + 38k Accrued Interest + Amounts borrowed from UPCC Capital Reserves, $1,835

Subtotal, operating assets

5,569

4,371

6,013

5,744

Board Designated Cash & Investments & Receivable from Irrigation Fund:

Operating Reserves

400

400

BOS designated for future use.

Capital Reserves & Short-Term Investments

1,528

958

Capital Reserves Used for Irrigation Project--Due from Capital Irrigation Fund

1,835

1,835

Portion of irrigation project paid out of UPCC reserve funds

Sub total, Board Designated Cash, Capital Reserves & Capital Irrigation Fund Receivable

3,763

3,193

-

-

Property and Equipment - Net

26,734

25,422

Property and Equipment - CIP

227

173

-

-

TotaI Assets

$36,293

$33,159

$6,013

$5,744

Liabilities & Net Position:

Accounts Payable

Operations Related

$454

$379

Accrued Liabilities & Other Payables

353

289

38

-

Gift Cards & Store Credits

140

123

Subtotal, operating liabilities

947

792

38

-

Deferred Revenue

4,081

3,748

Capital Lease Obligations

2,009

418

New cart lease and GCM Equipment

Capital Projects Payable

8

-

Due to UPCC Operating Fund

$1,835

$1,835

BAN Payable to Bank

4,140

3,909

Total Liabilities

7,046

4,958

6,013

5,744

Beginning Balance, Purchase of UPCC assets in 2019

16,750

16,750

-

-

Due From Capital Irrigation Fund

1,835

1,835

Prior Years' Operating Surplus

9,868

7,281

Current Period Operating Surplus

794

2,335

Net Position

29,247

28,201

-

-

Total Liabilities & Net Position

$36,293

$33,159

$6,013

$5,744

UNIVERSITY PARK COUNTRY CLUB CAPITAL SOURCES AND USES AS OF APRIL 30, 2026

5/13/2026

3/4

Sources

Notes

2019, Construction Fund after UPCC club purchase

$4,157

2021, Loan Forgiveness

856

2024-5, Bond Anticipation Note for Irrigation Project

3,757

$1,835 was paid out of Operating Cash and needs to be repaid from either BAN assessment or 2024 Bond funds when available.

Sub total, Bond Proceeds and Loan Forgiveness

8,769

Bonds & Loan Forgiveness

FY 2021 -2025 Initiation Fees

3,554

FY 2021-2025 10% Outside Golf

1,530

FY 2023-2025 Capital Dues

872

FY 2026 Initiation Fees

826

FY 2026 10% Outside Golf

211

FY 2026 Capital Dues

392

Sub total, Init Fees, Capital Dues & 10% Outside Golf

7,385

Capital raised through Operations

Total Sources of Capital

16,154

Uses

2022, Parking Lot - Asphalt

136

2021-2025, Golf Course Improvement & Irrigation

7,412

2023, Tennis/Pickleball Courts

810

2022-2023, Buildings - Renovations, A/C and Upgrades

291

2023-2025, Range Picker, Bag Drop/Pro Shop FF&E

123

2022-2024, Grille - Kitchen Equipment

289

2023, Golf Course Maintenance Equipment

459

2023, IT Equipment - Computers, Server etc

91

2023-2024, Racquets And Fitness Equipmet

89

2021-2023, Indoor Dining Renovation

1,066

2023-2024, Outdoor Dining (Cafe) Renovation

2,326

Subtotal, Uses

13,092

FY2026 Uses

2026, Golf Course Maintenance Equipment

36

2026, Back 9 Renovation

1,164

2026, Buildings, Varsity Club, Admin & Locker Room Renovation, Cart Barn Garage Doors

87

2026, Golf Club Rentals

12

2026, Grille - Kitchen Equipment

26

2026, Admin Furniture

3

Subtotal, FY2026 Uses

1,328

Construction In Progress

2020, Master Plan Project

168

Security Cameras

9

Front 9 Project

37

Subtotal, CIP

215

Total Uses

14,635

Remaining Capital Reserves

1,519

Capital Account Balance at 4/30/2026

Due to operating capital from BAN or Bond

1,835

Total Capital Reserves

3,354

Balance with Irrigation Project repayment

UNIVERSITY PARK COUNTRY CLUB STATEMENT OF CASH FLOWS AS OF APRIL 30, 2026

5/13/2026

4/4

MTD & YTD STATEMENT OF CASH FLOWS, 7 MONTHS THROUGH 4/30/26

April

MTD

YTD

Cash Flows From Operating Activities:

Cash Receipts From Members & Guests

$ 1,166

$ 11,276

Cash Payments To Vendors & Suppliers

(546)

(4,040)

Cash Payments To PBM Staff Serving UPCC & UPRD

(533)

(4,366)

Net Cash Provided (Used) By Operating Activities

87

2,870

Cash Flows From Capital, Financing, And Other Non-Operating Activities:

Initiation Fees

$ 72

$ 833

Capital Dues

11

392

Purchase Of Equipment & Capital Projects

(68)

(438)

FEMA Proceeds

8

8

Transfer to General Fund

(237)

Interest From Investments

3

Net Cash Provided (Used) By Capital And Other Non-Operating Activities

23

560

Net Increase (Decrease) In Cash

110

3,431

Cash At Beginning Of Period

5,697

2,378

Cash At End Of Period

$ 5,808

$ 5,808

University Park Recreation District Summary Operating Data
As of April 30, 2026

Rounds of Golf (as of April 30, 2026):

Rounds of Golf (as of April 30, 2025):

Overall revenue is $149k favorable to budget, driven primarily by Golf operations. Golf revenue is $203k favorable to budget (net of capital allocation), with higher outside rounds producing an $164k favorable variance in greens fees. Merchandise sales also surpassed budget, contributing an additional $55k favorable variance.
Golf course maintenance expenses continue to remain over budget due to various projects that were scheduled for later in the year but were completed earlier. We anticipate this trend will continue over the next couple of months, with expenses realigning to budget by the end of summer.

April

YTD

Actual

Budget

Variance

Actual

Budget

Variance

Member Rounds

5,018

4,702

316

28,924

32,013

(3,089)

Outside Rounds

2,689

2,635

54

17,552

19,917

(2,365)

7,707

7,337

370

46,476

51,930

(5,454)

April

YTD

Actual

Budget

Variance

Actual

Budget

Variance

Member Rounds

4,505

4,722

(217)

29,628

31,936

(2,308)

Outside Rounds

2,552

2,310

242

20,412

18,746

1,666

7,057

7,032

25

50,040

50,682

(642)

University Park Recreation District Summary Operating Data
As of April 30, 2026

Membership

*137 grandfathered non-members (Same as prior month), 182 grandfathered members (-2 to prior month)
**292 non-resident memberships (-2 to prior month)

CYTD Change

Beg. Mar.

Additions

Resignations

Conversions

Total

Golf

Family - Resident

1

179

2

-

(2)

179

Family - Non Resident

1

78

-

(2)

-

76

Single - Resident

5

131

-

-

(3)

128

Single - Non Resident

-

71

-

-

-

71

7

459

2

(2)

(5)

454

Racquets & Fitness

Family - Resident

2

30

-

-

-

30

Family - Non Resident

(1)

15

-

-

(1)

14

Single - Resident

1

38

-

-

-

38

Single - Non Resident

-

24

-

(1)

2

25

2

107

-

(1)

1

107

Social

Family - Resident

(3)

454

4

(5)

2

455

Family - Non Resident

-

54

-

(2)

-

52

Single - Resident

1

206

1

-

2

209

Single - Non Resident

(5)

53

-

-

-

53

(7)

767

5

(7)

4

769

Total Memberships

2

1,333

7

(10)

-

1,330

Passes

CYTD Change

Beg. Mar.

Net Change

Total

Fitness

(6)

139

-

139

Range

4

58

1

59

Pickleball

2

52

-

52

Twilight Tennis

(1)

18

-

18

SAP

7

136

1

137

6

403

2

405

For Review & Recommendation
Final Draft: Capital Expenditure Approval Process

Capital Expenditure Approval Process
University Park Country Club
A capital expenditure is any purchase or project that: Has a useful life greater than one year, and exceeds the Club’s capitalization threshold of $2,500, and results in the acquisition, improvement, or replacement of a fixed asset.

Roles and Responsibilities

Management
Review and update capital budget

•
•
•
•

Identify capital needs and prepare capital request form(s) Provide operation justification for each request
Obtain quote and attach to form
Manage approved projects within budget and scope

General Manager

•
•

Review and approve capital expenditures within authorized limits Make recommendations to the Board

Finance Committee G Treasurer

•
•
•
•
•

Review of the annual capital plan and proposed capital budget Provide recommendations to the Board of Supervisors
Review Capital Expenditure Requests for alignment with the approved budget Evaluate financial impact, including reserve balances and cash flow
Monitor progress of approved capital projects and receive periodic updates from Management

Controller

•
•

Ensures expenditures are properly recorded and tracked by project Evaluate impact on reserves, debt, and operating budgets

Board of Supervisors

•
•
•

Review and approve capital expenditures
Ensure alignment with the Club’s strategic and master plans Approve funding methods (reserves, assessments, financing)

Capital Planning/Budgeting Process

1. The Controller annually updates the Capital Reserve Study and prepares a proposed capital budget. The budget includes all existing capital assets, identifies assets currently due for replacement, and outlines assets scheduled for replacement in the upcoming fiscal year.

2. Department Managers meet with the controller and a member of the Finance Committee to review and revise the asset listings relevant to their areas, including remaining useful life, lifecycle assumptions, and estimated replacement costs. Managers will then categorize each asset as:





Need to Have Like to Have Deferrable

The Finance Committee and Treasurer will review the capital plan and proposed capital budget on an annual basis and provide recommendations as necessary.
The Board of Supervisors approves the annual capital budget as part of the overall Club budgeting process.

Capital Expenditure Request Process

1.

Management submits a completed Capital Expenditure Request form that includes the project description, purpose, estimated cost, and supporting vendor quotes.
The Controller, Finance Committee and Treasurer review the request to confirm alignment with the approved capital budget and assess the impact on reserve balances and cash flow. If a capital expenditure that was included in the original approved budget exceeds the authorized amount by the lesser of $50,000 or 20%, it must receive additional approval from the Board of Supervisors.
Management is responsible for project execution and vendor oversight. Projects are expected to be completed within the approved scope, timeline, and budget.
Management will provide periodic progress updates to the Finance Committee and the Board.
Upon completion, actual project costs are compared to the approved budget and reported to the Board of Supervisors. Capital assets are recorded in the Club’s fixed asset register, and reserve schedules are updated as necessary.

2.

3.

4.

Approval authority for unplanned capital expenditures necessary to protect assets, ensure safety and maintain operational continuity is as follows:
Management: Limited to $50,000 per project or expenditure and no more than $100,000 per year.
Board of Supervisors: Approval for expenditures exceeding Management authority

For Discussion & Recommendation
Proposed Operating Budget (Enterprise Fund) FY 2027

UNIVERSITY PARK RECREATION DISTRICT

FY 2027 Budget
October 2026 – September 2027

May 2026 Presentation

FY2027 Budget Process

Departmental workbooks are pre-populated with PY actuals, CY budget, CY forecast, and rolling 12 and are distributed to department directors

Directors prepare the FY2027 budget using the workbook, general ledger, and variance reports

Review meetings are held with each director, the General Manager, Controller, and an assigned Finance Committee member

Final budget is presented to the Finance Committee for recommendation to the Board of Supervisors

Final budget is presented to the Board of Supervisors for approval

Enterprise Fund – Executive Summary

FY'27 Budget

FY'26 Forecast

FY'26 Budget

Revenue

14,495

13,858

13,702

Expenses

13,841

13,059

13,299

Operating Surplus

655

800

403

Capital Allocation

1,406

1,450

1,174

Total Revenue Breakdown

MEMBERSHIP DUES
RACQUETS & FITNESS

GOLF OPERATION
DINING INCOM

Total Revenue: $14,495
Membership Dues $7,056

22%

Golf Operations

$4,133

*Racquets & Fitness $86

1%

49%

Dining

$3,215

*Revenue for Racquets & Fitness is the club’s portion of the revenue generated from lessons, classes, clinics and personal training.

28%

Total Expense Breakdown

Payroll Expense $7,782

$ 885
$ 1,867
$ 405

Direct Expense $6,058

$ 1,027

$ 1,336

$ 187

$ 406

$ 805

$ 507

$ 2,584

$ 2,041

$ 1,789

Golf Operation Dining Oper Ex General & Adm
Dining CG

Racquets & Fitness
Golf Course Maintenance Property Insurance

Golf Operation Dinin
General & Administrativ

Racquets & Fitness
Golf Course Maintenance

Key Assumptions – Membership Dues

Annual Dues Increases (~6%):
Full: $710 / $540
Racquets: $305 / $230
Social: $100 / $75
Annual Full Membership capped at 450

Minimal Pass Increases:
Pickleball Pass $800 (+$50)
Twilight Pass $800 (+$50)
Social Access Pass $550 (+$50)
Social Driving Range Pass $500 (+$50)
Fitness Pass $500 (no increase)

Family

Single

2027 Budget

2026 Actual

2027 Budget

2026 Actual

Full Memberships

$	12,425

$	11,715

$	9,450

$	8,910

Racquets Memberships

$	5,355

$	5,050

$	4,015

$	3,785

Social Memberships

$	1,650

$	1,550

$	1,275

$	1,200

Initiation Fees, Capital Funding, & Capital Dues

Initiation Fees:

Continued Outside Golf Allocation (10%)
Capital Dues – Same percentages as 2023–2026
Resident: 5% of Dues
Non-Resident: 10% of Dues
Capital Dues rates remain flat & competitive locally

2026 / 2027 Fees

2025 / 2026 Fees

Resident

Non-Resident

Resident

Non-Resident

Full

$	25,000

$	50,000

$	20,000

$	30,000

Racquets

4,500

5,500

4,000

5,000

Social/Resident

3,500

N/A

2,500

N/A

Key Assumptions – Golf Operations

Golf Rounds

Continue prioritizing member rounds and experience
More Full Members – capacity available for members
10% Social Member Discount
Trail Fee Increase

2027 Fees

2026 Fees

Resident

Non-Resident

Resident

Non-Resident

Single

$	1,950

$	2,950

$	1,750

$	2,650

Family

2,450

3,675

2,200

3,300

2027 Budget

2025 Actual

Last 12 Mths

Member Rounds

43,458

41,706

42,921

Outside Rounds

29,692

26,639

29,634

Total

73,150

68,345

72,555

Key Assumptions – Dining Operations

No disruption due to Renovation of Kitchen considered
Similar hours of operation to FY2026
Revenue reflects modest increase aligned with menu price adjustments
Wage expenses increased for minimum wage & cost-of-living adjustments
Food costs reduced due to refined kitchen processes & procedures, and

optimized menu design
Cost of goods sold is aligned with both the forecast and the rolling 12-month period.

2026

Rolling

2027

Forecast

12 Months

Budget

FOOD

44.5%

45.5%

46.0%

WINE

39.1%

44.4%

40.0%

LIQUOR

30.5%

27.6%

31.0%

BEER

31.5%

30.7%

32.0%

SODA

37.6%

31.4%

34.0%

Key Assumptions – Labor

No salaried headcount increases or decreases
Blended 3-4% increase for salaried employees
Hourly Wages:
– FL Minimum wage increase
– $10.98 to $11.98 (tipped)
– $14.00 to $15.00 (non-tipped)
– Discretionary increases generally around 3–4%
Total Payroll reflects 54% of Total Revenue, at industry standard

Enterprise Fund – Executive Summary

FY’27 Budget

FY’26 Forecast

F

6 Budget

13,858

Revenue

14,495

13,702

13,841

13,059

13,299

Expenses

Operating Surplus

800

403

655

1,406

1,450

1,174

Capital Allocation

University Park Country Club 2027 Budget

SUMMARY INCOME STATEMENT

2025

2026

2026

Rolling

2027
Budget

7,055,981
4,132,755
86,217
3,214,730
5,480

2027 Budget

FISCAL YEARS ENDING SEPTEMBER 30

Actual

Budget

Forecast

12 Months

vs. 2026 FC

COUNTRY CLUB OPERATIONS:

REVENUE:

MEMBERSHIP DUES

6,131,043

6,724,088

6,687,222

6,380,181

368,759

GOLF OPERATIONS

3,451,413

3,759,858

3,963,157

3,920,372

169,598

RACQUETS & FITNESS CENTRE

58,549

77,324

88,458

74,491

(2,241)

DINING INCOME

3,010,876

3,135,420

3,108,631

3,084,146

106,099

OTHER INCOME

13,499

5,480

10,835

12,185

(5,355)

TOTAL REVENUE

12,665,380

13,702,170

13,858,303

13,471,376

14,495,164

885,464
405,457
2,584,038
2,040,886
1,866,560

636,861

EXPENSES:

PAYROLL & RELATED:

GOLF OPERATIONS

719,677

856,026

811,399

744,724

74,064

RACQUETS & FITNESS CENTRE

359,929

386,008

380,896

369,329

24,562

DINING

2,308,561

2,435,666

2,406,961

2,334,481

177,077

GOLF COURSE MAINTENANCE

1,833,506

2,068,992

1,999,032

1,891,414

41,854

GENERAL & ADMINISTRATIVE

1,675,776

1,834,071

1,804,263

1,768,332

62,297

TOT PAYROLL & RELATED

6,897,450

7,580,764

7,402,550

7,108,280

7,782,405

1,027,198
186,837
1,336,151
805,415
1,789,315
506,890
406,436

379,855

DIRECT EXPENSES:

GOLF OPERATIONS

1,016,726

1,018,068

1,039,786

1,073,913

(12,588)

RACQUETS & FITNESS CENTRE

131,816

161,459

166,268

147,312

20,569

DINING CGS

1,249,831

1,306,757

1,244,500

1,270,256

91,651

DINING OPER EXP

755,303

782,785

732,236

737,096

73,179

GOLF COURSE MAINTENANCE

1,611,411

1,566,167

1,645,755

1,664,759

143,560

GENERAL & ADMIN

446,790

493,443

456,395

464,048

50,495

PROPERTY INSURANCE

335,919

390,000

371,063

354,191

35,372

TOTAL DIRECT EXPENSES

5,547,796

5,718,679

5,656,003

5,711,575

6,058,242

402,239

OPERATING INCOME/(LOSS)

220,133

402,726

799,749

651,520

654,516

(145,233)

680,400
284,679
440,948

CAPITAL ALLOCATION:

INITIATION FEES

853,150

510,800

774,000

1,392,550

(93,600)

CAPITAL ALLOCATION- GOLF OPS

252,656

248,670

261,299

257,158

23,380

CAPITAL DUES

380,552

414,769

415,092

397,051

25,856

TOTAL CAPITAL ALLOCATION

1,486,358

1,174,239

1,450,391

2,046,759

1,406,028

(44,363)

For Discussion & Recommendation
Discuss & Recommend 2025 Audit Report

UNIVERSITY PARK RECREATION DISTRICT

FINANCIAL STATEMENTS

SEPTEMBER 30, 2025

UNIVERSITY PARK RECREATION DISTRICT

TABLE OF CONTENTS

SEPTEMBER 30, 2025

Independent Auditor's Report

1
4

Management's Discussion and Analysis (MD&A)

PART I.

FINANCIAL SECTION

Basic Financial Statements:

Government-Wide Financial Statements: Statement of Net Position
Statement of Activities

16
17

Fund Financial Statements:
Balance Sheet - Governmental Funds
Reconciliation of the Governmental Funds Balance Sheet To the Statement of Net Position
Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities
Statement of Net Position - Proprietary Fund
Statement of Revenues, Expenses and Changes in Net Position - Proprietary Fund
Statement of Cash Flows - Proprietary Fund

18

19

20

21
22

23
24

Notes to Financial Statements

25

PART II.

REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MD&A

Schedule of Revenues and Expenditures Budget and Actual - General Fund

41

PART III.

SUPPLEMENTARY INFORMATION

Schedule of Revenues and Expenditures
Budget and Actual - Debt Service 2019 Fund

42

PART IV.

OTHER REPORTS

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

43

Independent Auditor's Report on Compliance with Section 218.415, Florida Statutes
Management Letter

45
46

INDEPENDENT AUDITOR'S REPORT

Nathan A. Phillips, CPA

Stephanie J.
David N.

CPA
MBA

Courtney L. Cound, CPA

John M.
Michelle V.

CPA
CPA

To the Board of Supervisors
UNIVERSITY PARK RECREATION DISTRICT
University Park, Florida 34201

Shannon L. Huber, CPA
Keith S. Boyle, CPA Bethany A. Bohall, CPA

Opinions

We have audited the accompanying financial statements of the governmental activities, the business-type activities and each major fund of UNIVERSITY PARK RECREATION DISTRICT ("the District") as of and for the year ended September 30, 2025, 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, the business-type activities and each major fund of UNIVERSITY PARK RECREATION DISTRICT as of September 30, 2025, and the respective changes in financial position and, where applicable, cash flows thereof for the 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 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 UNIVERSITY PARK RECREATION 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

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 UNIVERSITY PARK RECREATION 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.

Certified Public Accountants 801 Laurel Oak Drive, Suite 303, Naples, FL 34108
P 239 566 1600 | F 239 566 1901 | pfgcpa.com

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Board of Supervisors
UNIVERSITY PARK RECREATION DISTRICT
Page 2

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 generally accepted auditing standards and Government Auditing Standards 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 generally accepted auditing standards and Government Auditing Standards, 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 UNIVERSITY PARK RECREATION 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 UNIVERSITY PARK RECREATION 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 General Fund 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.

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Board of Supervisors
UNIVERSITY PARK RECREATION DISTRICT
Page 3

Required Supplementary Information (Continued)

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.

Supplementary Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the District's basic financial statements as a whole. The Debt Service 2019 Fund budgetary comparison information is presented for purposes of additional analysis and is not a required part of the financial statements. Such information is the responsibility of management and was derived from, and relates directly to, the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Debt Service 2019 Fund budgetary comparison information is fairly stated, in all material respects, in relation to the financial statements as a whole.

Other Reporting Required by Cov'ernmenf Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated March 27, 2026, on our consideration of the UNIVERSITY PARK RECREATION DISTRICT's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the UNIVERSITY PARK RECREATION 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 UNIVERSITY PARK RECREATION DISTRICT's internal control over financial reporting and compliance.

PHIL

S FEL

ROADP.A.

Certified Public Accountants

Naples, Florida March 27, 2026

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UNIVERSITY PARK RECREATION DISTRICT

MANAGEMENT'S DISCUSSION AND ANALYSIS

University Park Recreation District (the “District”) Administration offers readers of the District's financial statements this narrative overview and analysis of the financial activities of the District for the fiscal years ended September 30, 2025, and September 30, 2024. Please read it in conjunction with the accompanying financial statements.

	September 30,	

Increase/

	2025	2024	Decrease	

Total net position
Unrestricted net position available for future use Governmentalnet position
Total revenuesfromallsources Governmentalrevenues TotalcostofDistrictprograms Governmental change in net position
General fund revenues (under) over expenditures Generalfund unassigned fund balance
As a percentage of general fund expenditures Country Club operating income (loss)
Country Club change in net position
Change in total long-termdebtforthe District

$
$
$
$
$
$
$
$
$

24,076
(3,904)
(2,542)
14,459
1,394
924
(2,627)
(20)
(1)
-0.33%
(1,146)
2,587
3,573

$
$
$
$
$
$
$
$
$

24,115
(1,106)
85
14,216
1,392
904
(1,536)
(11)
19
6.15%
(881)
1,745
874

$
$
$
$
$
$
$
$
$

(39)
(2,798)
(2,627)
243
2
20
(1,091)
(9)
(20)
-6.48%
(265)
842
2,699

$
$
$

$
$
$

$
$
$

USING THIS ANNUAL REPORT

This annual report consists of a series of financial statements.

The three components of the financial

statements are: 1. Government-wide financial statements that include the Statement of Net Position and the Statement of Activities. These statements provide information about the activities of the District as a whole.
2. Fund financial statements tell how these services were financed, as well as what remains for future spending. Fund financial statements also report the District's operations in more detail than the government-wide statements by providing information about the District's most significant funds. 3. Notes to the basic financial statements expand upon information reported in the government-wide and funds financial statements.

REPORTING ON THE DISTRICT AS A WHOLE

Statement of Net Position and the Statement of Activities (Government-wide)
A frequently asked question regarding the District's financial health is whether the year's activities contributed positively to the overall financial well-being. The Statement of Net Position and the Statement of Activities report information about the District as a whole and about its activities in a way that helps answer this question. These statements include all assets, deferred outflows of resources, liabilities and deferred inflows of resources using the accrual basis of accounting, which is similar to the accounting used by most private-sector entities. All of the District's revenues and expenses are considered, regardless of when cash is received or paid.

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UNIVERSITY PARK RECREATION DISTRICT

MANAGEMENT'S DISCUSSION AND ANALYSIS

These two statements report the District's net position and changes therein. Net position, the difference between assets plus deferred outflows of resources and liabilities plus deferred inflows of resources, is one way to measure the District's financial health, or financial position. Over time, increases or decreases in net position are an indicator of whether the financial health is improving or deteriorating.

The Statement of Net Position and the Statement of Activities present information about the following:

•

Governmental activities - All of the District's basic services are considered to be governmental activities, including general government and recreation. Assessments and fees finance most of these activities.

•

Proprietary activities/Business-type activities - The District charges fees to its members and non-members (i.e., public) to cover all or most of the cost of the services provided. The District's Country Club operations (University Park Country Club) are reported in this category.

REPORTING THE DISTRICT'S MOST SIGNIFICANT FUNDS

Fund Financial Statements
Fund financial statements provide detailed information about the most significant funds - not the District as a whole. Some funds are required to be established by State law. However, management may establish other funds at times, which aid in the management of resources for particular purposes or meet legal responsibilities associated with the usage of certain taxes, grants, and other resources. The District's two types of funds — governmental and proprietary - use different accounting approaches as explained below.

•

Governmental funds
Most of the District's basic services are reported in governmental funds. Governmental funds focus on how resources flow in and out, with balances available for spending remaining at year-end. These funds are reported using an accounting method called the modified accrual accounting method, which measures cash and all other financial assets that can be readily converted to cash. The governmental fund statements provide a detailed short-term view of the District's general government operations and the basic services it provides. Governmental fund information shows whether there are more or fewer financial resources that can be spent in the near future to finance the District's programs.

The District maintains four individual governmental funds as follows:

1. 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.

2. Debt Service 2019 Fund - The Debt Service 2019 Fund accounts accumulated resources for, and the payment of, general long-term principal, interest and related costs for the 2019 project consisting of the acquisition of the existing 27-hole University Park golf course, clubhouse, restaurant, lounge, fitness center, tennis center, and other facilities and approximately 100 acres of additional land and certain renovations and upgrades to such facilities.

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UNIVERSITY PARK RECREATION DISTRICT

MANAGEMENT'S DISCUSSION AND ANALYSIS

3.

Acquisition and Construction Fund - The Acquisition and Construction Fund accounts for the construction and acquisition of capital assets including the acquisition of the University Park golf course, clubhouse, restaurant, lounge, fitness center, tennis center, and other facilities and approximately 100 acres of additional land and certain renovations and upgrades to such facilities, as well as certain defined capital improvements described in the 2019 Bond Series Indenture.

4.

Capital Irrigation Fund - The Capital Irrigation Fund is a fund used to manage financial resources for the replacement of the Golf Course Irrigation System. This fund accounts for the Bond Anticipation Note (BAN), a short-term financing instrument, that was used to obtain temporary funding. The Series 2024 Bond Anticipation Note, also known as the Series 2024 Note or Series 2024 BAN, offered up to
$5,000,000 in funding with a 2-year maturity. In September 2025, the Board of Supervisors approved a resolution extending the maturity date of the note by one additional year.

The basic governmental fund financial statements can be found on pages 16 through 20 of the report.

The District maintains one proprietary fund for its business-type activities:

Proprietary Fund - The District's Proprietary Fund is the Country Club Fund, which accounts for charges to members and non-members (i.e., public) for the services it provides and for expenses incurred to provide services. Proprietary funds are reported in the same way that all activities are reported in the Statement of Net Position and the Statement of Activities. The basic proprietary fund financial statements can be found on pages 22 through 24 of this report.

GOVERNMENT-WIDE FINANCIAL ANALYSIS

As noted earlier, over time the net position may serve as a useful indicator of a government's financial position. In the case of the District, the net position was $24,076,010 and $24,115,454 at September 30, 2025, and September 30, 2024, respectively.

A significant portion of the District's net position reflects its investment in capital assets (e.g., land, golf course and related improvements, buildings, machinery and equipment and tennis courts), less any related debt outstanding, which was used to acquire those assets. The District uses these capital assets to provide services to property owners of the District, as well as to members and non-members; consequently, these assets are not available for future spending.

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UNIVERSITY PARK RECREATION DISTRICT

MANAGEMENT'S DISCUSSION AND ANALYSIS

NET POSITION AT SEPTEMBER 30, 2025, and 2024

Governmental Activities

Business-Type Activities

Total

2025

2024

2025

2024

2025

2024

Assets:
Cash and other assets Receivables
Due from another fund Inventories
Prepaid expenses Other assets Restricted cash
Right of use leased assets, net Capital assets, net
Total assets

$

12,449
21,296,602

$

32,335
21,863,679

$

1,607,811
364,524

$

979,835
392,581

$ 1,620,260
21,661,126

$ 1,012,170
22,256,260

315,054
293,061
4,315
769,865
2,023,205
25,875,368

287,664
175,469
11,899
180,112
401,926
25,040,878

315,054
571,200
4,315
2,388,187
2,023,205
25,875,368

287,664
465,068
11,899
1,828,614
401,926
25,040,878

278,139

289,599

1,618,322

1,648,502

-

-

23,205,512

23,834,115

31,253,203

27,470,364

54,458,715

51,304,479

Deferred outflows of resources:

Liabilities:
Current liabilities: Accounts payable Accrued interest Capital Leases
Accrued payroll and other Deferred dues
Long-term liabilities
Capital Leases 2019 Bond
Bond anticipation note
Total liabilities

13,507
318,054
-
-
-

13,201
301,663
-
-
-

362,116
51,542
513,610
632,624
1,579,171

696,340
2,679
118,951
854,947
1,467,103

375,623
369,596
513,610
632,624
1,579,171

709,541
304,342
118,951
854,947
1,467,103

- 21,356,969
4,059,274

- 21,929,734
1,505,000

1,495,838
-

299,407
-

1,495,838
21,356,969
4,059,274

299,407
21,929,734
1,505,000

25,747,804

23,749,598

4,634,901

3,439,427

30,382,705

27,189,025

Net position:
Net investment in capital assets Restricted
Unrestricted
Total net position

25,875,368
769,865
(26,931)

25,040,878
180,112
(1,190,053)

25,875,368
2,104,702
(3,904,060)

25,040,878
1,457,217
(2,382,641)

1,334,837
(3,877,129)

1,277,105
(1,192,588)

yw

$ (2,542,292)

$

84,517

$ 26,618,302

$ 24,030,937

$ 24,076,010

$ 24,115,454

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UNIVERSITY PARK RECREATION DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
Governmental Activities
Changes in net position show revenue and expenses for governmental and business-type activities of the District, along with transfers between District funds.
Changes In Net Position

Total

Governmental Activities

Business-Type Activities

2025

2024

2025

2024

2025

2024

REVENUES:
Non-ad valorem assessments Charges fôr services
Other revenues and interest Total Revenues
EXPENSES:
Current:
General government Debt service:
Principal Interest Capital Fund:
Interest and debt issuance Country Club:
Operating Expenses Interest Expense Amortization Expense
Depreciation Expense

$

1,390,723
- 3,726

$

1,392,260
-
97

$

-

$

- 12,784,369
39,638

$ 1,390,723
13,035,242
33,125

$ 1,392,260
12,784,369
39,735

13,035,242
29,399

1,394,449

1,392,357

13,064,641

12,824,007

14,459,090

14,216,364

353,994

351,599

-

-

353,994

351,599

570,000
696,588

555,000
710,463

-
-

-
-

570,000
696,588

540,000
710,463

223,942

106,800

-

-

106,800

-

-
-
-
-

-
-
-
-

12,164,500
110,882
581,189
1,464,544

12,090,173
31,841
476,183
1,138,873

12,164,500
31,841
581,189
1,464,544

12,090,173
46,951
476,183
1,138,873

Total Expenses

1,844,524

1,723,862

14,321,115

13,737,070

15,969,456

15,460,932

Excess (deficiency) of revenues
over (under) expenses

(450,075)

(331,505)

(1,256,474)

(913,063)

(1,706,549)

(1,244,568)

Contributions, transfers and other Capital transfers in (out) Transfers in (out)
Other income/expenses (net)

(2,352,500)
175,766
-

(1,404,000)
200,000
-

2,352,500
(175,766)
1,667,105

1,404,000
(200,000)
1,453,766

-
- 1,667,105

-
- 1,453,766

Total Contributions, Transfers
and other

(2,176,734)

(1,204,000)

3,843,839

2,657,766

1,667,105

1,453,766

Net change in net positions

(2,626,809)

(1,535,505)

2,587,365

1,744,703

(39,444)

209,198

Net position-beginning of year

84,517

1,620,022

24,030,937

22,286,234

24,115,454

23,906,256

$ (2,542,292)

$

84,517

$26,618,302

$

24,030,937

$24,076,010

$24,115,454

Net position-end of year

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UNIVERSITY PARK RECREATION DISTRICT

MANAGEMENT'S DISCUSSION AND ANALYSIS

Changes in Net Position (Continued)
Note - the District acquired the University Park County Club on November 22, 2019, using proceeds from the issuance of its non-ad valorem assessment bonds series 2019.
The District's governmental activities programs include general government and debt service. Each program's net cost (total cost, less revenues generated by the activities) is presented above. The net cost shows the extent to which the District's general taxes support each of the District's programs.
Business-Type Activities
For the fiscal year ended September 30, 2025, the Country Club's total revenues for Business-type activities totaled $13,064,641, and total expenses were $12,275,377. Excluding depreciation and amortization of
$2,045,733, the Club generated an excess of revenues over expenses of $789,264, reflecting the Country Club's ability to meet its operating obligations and demonstrating a financially sound and profitable operation. After incorporating depreciation and amortization, the net result for the fiscal year was an excess of expenses over revenues of $1,256,469. In addition, investments in capital assets of $2,352,500 were paid through transfers from the Capital Irrigation Fund in the same amount. During the year, $175,766 was transferred from the Propriety Fund to the General Fund to pay a portion of Governmental expenditures. The net position of the Proprietary Fund (Country Club) at September 30, 2025, was $26,618,302.

For the fiscal year ended September 30, 2024, the Country Club's total revenues for Business-type activities totaled $12,824,007, and total expenses were $12,122,014. Excluding depreciation and amortization of
$1,615,056, the Club generated an excess of revenues over expenses of $701,993, reflecting the Country Club's ability to meet its operating obligations and demonstrating a financially sound and profitable operation. After incorporating depreciation and amortization, the net result for the fiscal year was an excess of expenses over revenues of $913,063. In addition, investments in capital assets of $1,404,000 were paid through transfers from the Capital Irrigation Fund in the same amount. During the year, $200,000 was transferred from the Propriety Fund to the General Fund to pay a portion of Governmental expenditures. The net position of the Proprietary Fund (Country Club) at September 30, 2024, was $24,030,937.
FINANCIAL ANALYSIS OF THE DISTRICT'S FUNDS
As noted earlier, the District uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.
Governmental Funds
The objective of the District's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the District's financing requirements. In particular, unrestricted (unassigned/assigned) fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year.
At September 30, 2025, the combined fund balance for all Governmental Funds was $1,902,005, a decrease from the September 30, 2024 fund balance of $1,960,908 less than 1% of the combined ending fund balance
$1,902,005 constitutes unrestricted (unassigned/assigned) fund balance, which reflects a deficit of ($1,059) at year-end. This temporary deficit in the General Fund is not unusual for the District and is attributable to the timing of accounts payable invoices at fiscal year-end, as the District's practice is to transfer funds only as needed rather than maintaining excess liquid balances. The remainder of fund balance $1,903,063 is restricted (non-spendabIe/restricted) to indicate that it is not available for new spending because it has already been committed for debt service, acquisition, and construction.

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UNIVERSITY PARK RECREATION DISTRICT

MANAGEMENT'S DISCUSSION AND ANALYSIS

Governmental Funds (Continued)
At September 30, 2024, the combined fund balance for all Governmental Funds was $1,960,908, a decrease from the September 30, 2023 fund balance of $1,994,565. Less than 1% of the combined ending fund balance
$1,960,908 constitutes unrestricted (unassigned/assigned) fund balance totaling $19,128, which is available for spending at the District's discretion. The remainder of fund balance $1,941,780 is restricted (non-spendable/restricted) to indicate that it is not available for new spending because it has already been committed for debt service, acquisition, and construction.

General Fund
The General Fund is the chief operating fund of the District. At the end of the current fiscal year, the total fund balance of the General Fund was unassigned, this amount was ($1,059). As a measure of the General Fund's liquidity, it is helpful to compare the total fund balance which is -.33% of total general fund expenditures of
$322,108.
The General Fund unassigned fund balance of ($1,059) represents a decrease of $20,186 from the 2024 unassigned General Fund balance of $19,128.

At the end of September 30, 2024, the total fund balance of the General Fund was unassigned, this amount was $19,128. As a measure of the General Fund's liquidity, it is helpful to compare the total fund balance which is 6.15% of total general fund expenditures of $311,060.

General Fund Budgetary Highlights
There was a formal General Fund budget amendment executed during the year to reclass certain appropriations among its total appropriated expenditures. The General Fund's 2025 total appropriations adopted was $322,107.

General Fund Budget Analysis
As shown on page 41 of this report, in the Schedule of Revenues and Expenditures Budget and Actual - General Fund, there was no expenditure variance.

Debt Service 2019 Fund and Capital Acquisition and Construction Fund and Capital Irrigation Fund The District formally adopted a budget for its Debt Service 2019 Fund but had no adopted budget for its Acquisition and Construction Fund since those funds were created initially upon the issuance of the District's Non-Ad Valorem Assessments Bonds Series 2019 and had no adopted budget for its newly formed Capital Irrigation Fund associated with the District's BAN issuance.

CAPITAL ASSET AND DEBT ADMINISTRATION

Capital Assets
Capital assets of the District are those assets that are used in the performance of the District's functions. Capital assets include land, golf course and related improvements, buildings, machinery and equipment, and tennis courts. There are no Governmental Activities capital assets at September 30, 2025, and September 30, 2024, respectively.

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UNIVERSITY PARK RECREATION DISTRICT

MANAGEMENT'S DISCUSSION AND ANALYSIS

CAPITAL ASSETS (INCLUDING LEASES) AT SEPTEMBER 30, 2025 AND SEPTEMBER 30, 2024
Business-Type Activities

2025
8,525,000
135,876
1,216,177
12,239,070
3,326,671
3,391,611
1,730,730
1,044,221
2,486,052

2024
8,525,000
135,876
5,002,618
6,332,840
3,225,054
3,391,611
1,658,058
1,044,221
1,011,134

Land
Land Improvements Construction in progress
Golf course and improvements Buildings
Dining Renovations Machinery and equipment Tennis/Pickleball courts Leased assets
Total assets
Less accumulated depreciation Less accumulated amortization
Net capital assets

34,095,408
(5,733,988)
(462,847)

30,326,412
(4,274,400)
(609,208)

	27,898,573	25,442,804 

On November 22, 2019, the District acquired, for $16,750,000, through designated bond proceeds, certain recreation facilities consisting of a 27-hole golf course and practice facilities, a pro shop, a clubhouse with dining facilities and a kitchen, administrative and community facilities, tennis courts, a croquet court, a fitness center, a golf cart storage and other facilities with parcels of land within the University Park Country Club community. These capital assets are included as transfers from the Capital Acquisition and Construction Fund, net of other capital asset activity during the periods. The Proprietary Fund recorded amortization and depreciation of $2,045,733 for the year ended September 30, 2025, and $1,615,056 for the year ended September 30, 2024.

The District's investment in capital assets for its business-type activities as of September 30, 2025, and September 20, 2024, was $25,875,368 and $25,040,878, respectively (net of accumulated depreciation). The District had no investment in capital assets for its governmental activities in either fiscal year 2025 or 2024.

On October 1, 2021, the District adopted the lease accounting standard GASB 87, which replaced the previous lease accounting method. GASB 87 is based on the principle that leases are financings of the right to use an asset and requires lessees to recognize an intangible right-of-use asset. These intangible right-of-use assets (Capital Leases) totaled $2,486,052 with accumulated amortization of $462,847 as of September 30, 2025, and totaled $1,011,134 with accumulated amortization of $609,208 as of September 30,2024.

Debt
Currently, the District uses debt financing on an as-needed basis each year. At September 30, 2025, the District had total long-term debt of $27,425,691 consisting of $25,416,242 (including unamortized bond premium of $66,969 and Bond Anticipation Note of $4,059,274) in governmental activities and $2,009,448 (Capital leases) in business-type activities. None of the District's long-term debt comprises debt backed by the full faith and credit of the County and Federal government.

- 11 -

UNIVERSITY PARK RECREATION DISTRICT

MANAGEMENT'S DISCUSSION AND ANALYSIS

OUTSTANDING DEBT AT SEPTEMBER 30, 2025 and SEPTEMBER 30, 2024

Governmental Activities

Business-Type Activities

Total

2025

2024

2025

2024

2025

2024

Series 2019 Bonds Capital leases Loan payable
Bond Anticipation Note Equipment loans
Plus: Bond premium, net Total

$ 21,290,000
-

$ 21,860,000
-

$

- 2,009,448

$

- 418,358

$ 21,290,000
2,009,448

$ 21,860,000
418,358

-

4,059,274

-

4,059,274

1,505,000

-

66,969

69,734

-

-

66,969

69,734

$ 25,416,242

"$ 23,434,734

$ 2,009,448

$

418,358

$ 27,425,691

$ 22,348,092

NEXT YEAR'S BUDGET AND ECONOMIC FACTORS

FY2026 Budget

The District's Board of Supervisors adopted the preliminary FY2026 Budget for the Enterprise Fund (Country Club), General Fund, and Debt Service Fund on September 2, 2025. The FY2026 Budget reflects stabilized operations, disciplined expense management, and continued investment in infrastructure and service delivery.

Revenue projections were developed using historical performance trends, current membership levels, and anticipated seasonal activity. Expenditure assumptions incorporate known inflationary pressures in labor, insurance, utilities, and food and beverage costs. The District continues to apply conservative forecasting methods to preserve financial flexibility while maintaining service standards.

The FY2026 Budget supports operational stability, capital maintenance, and long-term asset preservation while remaining adaptable to economic variability and pending legal developments related to bond financing.

Results of Operations - Proprietary Fund, Enterprise - Country Club Fund
Club operations in fiscal year 2025 were affected by hurricane cleanup and repair activity. Cleanup and repair costs totaled $431,297 and were offset by $448,675 in FEMA and insurance proceeds, including business interruption coverage. Net recovery proceeds exceeded direct cleanup costs; however, operational disruptions and associated indirect impacts affected performance during the fiscal year.

Golf Operations experienced a decline in total rounds played compared to the prior fiscal year, primarily due to the hurricane and colder in-season weather. Reduced play levels contributed to lower dining sales during peak seasonal months. Despite these factors, overall operating revenue increased 1.8% compared to the prior year, reflecting pricing adjustments, membership stabilization, and continued demand for club services.

Total operating expenses exceeded operating revenues, resulting in an operating loss for the fiscal year. The primary drivers of this variance were hurricane-related expenditures and depreciation expense associated with completed capital improvements. Non-operating revenues, including FEMA and insurance recoveries, contributed positively to overall results, resulting in a net increase in position when considering total activities.

The District continues to maintain appropriate liquidity levels and operational reserves to support ongoing activities and capital maintenance needs.

- 12 -

UNIVERSITY PARK RECREATION DISTRICT

MANAGEMENT'S DISCUSSION AND ANALYSIS

Golf Course Renovations

The renovation of Holes 19-27 was completed in October 2025. The project focused on maintaining and enhancing course safety, playability, and long-term sustainability. Improvements included tee expansions, fairway and bunker renovations, and replacement of bridges and cart paths.

The next planned phase is the renovation of Holes 1-9, anticipated to commence in the summer of 2026. This phase is expected to include improvements to certain tees, bulkheads, bunkers, bridges, and cart paths. These capital investments are intended to extend asset life, reduce long-term maintenance risk, and enhance overall course conditions.

Master Plan, Golf Course Irrigation, Kitchen Renovations, Fitness Center, Staff Workspace

The planned issuance of the Series 2024 Bond was approved by the Board of Supervisors and received support from approximately 62% of voters in referendum. The bond issuance was appealed and remains subject to a pending court decision by the Supreme Court of Florida.

The irrigation system replacement was completed in fiscal year 2025 and represented a significant milestone within the District's Master Plan. The modernization of the irrigation system reduces long-term water management risk and improves operational efficiency.

Remaining Master Plan projects, including kitchen renovation and expansion, fitness center renovation and expansion, and staff workspace improvements, are currently on hold pending the court's ruling on the bond matter. The Board of Supervisors and management continue to monitor developments, coordinate with legal counsel, and evaluate interim capital strategies where feasible.

Economic Factors

The District continues to operate in an economic environment characterized by:

•
•
•
•

Elevated property and casualty insurance premiums Ongoing labor market competition and wage pressures
Inflationary impacts on food, beverage, and maintenance supplies Weather-related variability affecting seasonal golf activity

Management actively monitors these factors and incorporates them into budget development, pricing strategy, and operational planning.

Additionally, the court's decision regarding the Series 2024 Bond may influence the timing and sequencing of future capital improvements. The District remains positioned to adjust capital planning strategies based on the outcome of that ruling and prevailing economic conditions.

- 13 -

UNIVERSITY PARK RECREATION DISTRICT

MANAGEMENT'S DISCUSSION AND ANALYSIS

Formation of New Committees

Finance Committee

The District's Board of Supervisors adopted Resolution 2025-13 establishing a Finance Committee to strengthen fiscal oversight, accountability, and long-term financial planning. The Committee monitors financial performance, reviews budget-to-actual results, and provides recommendations to the Board of Supervisors and management regarding financial sustainability and capital planning.

The establishment of this committee enhances transparency, strengthens internal oversight processes, and supports prudent financial management.

Strategic Planning Committee

Through Resolution 2025-14, the District's Board of Supervisors established a Strategic Planning Committee to guide short-term and long-term strategic initiatives. The Committee reviews and updates the District's Strategic Plan and provides recommendations regarding implementation priorities.

These advisory committees reflect the District's continued commitment to governance best practices, structured planning, and responsible financial stewardship.

Memberships

In fiscal year 2024, the Board of Supervisors and management introduced a cap on Full Memberships to manage course capacity and preserve tee time availability. Trial memberships were limited to residents. These measures stabilized the full membership roster and improved predictability in revenue planning while protecting member access to club amenities.

Social Membership classifications were evaluated due to activity and dining capacity constraints. As a result, Non-resident Social Memberships are no longer being offered to prospective members. This change has reduced the total Social Membership counts and improved availability for resident and active members.

A summary of memberships as of December 31, 2025, and 2024 follows:

Category

YE 2025

YE 2024

Difference

% Change

Full Tennis/Racquets Social/Resident

447
105
776

445
108
786

2
(3)
(10)

0.4%
-2.8%
-1.3%

Total

1,328

1,339

(11)

-0.8%

- 14 -

UNIVERSITY PARK RECREATION DISTRICT

MANAGEMENT'S DISCUSSION AND ANALYSIS

Memberships (Continued)

Active Activity Passes as of December 31, 2025: Annual Fitness Passes: 145
Social Access Passes: 130 Twilight Tennis Passes: 19 Pickleball Passes: 50

As of December 31, 2025, approximately 2,400 individuals are members of the Club.

CONTACTING THE DISTRICT'S FINANCIAL MANAGEMENT

This financial report is designed to provide our citizens, taxpayers, guests, club members, and creditors with a general overview of the District's finances and to show the District's accountability for the resources it receives and consumes. If you have questions about this report or need additional financial information, please contact the General Manager at (941) 355-3888.

John Fetsick, General Manager University Park, FL

- 15 -

UNIVERSITY PARK RECREATION DISTRICT STATEMENT OF NET POSITION
SEPTEMBER 30, 2025

GOVERNMENTAL ACTIVITIES

BUSINESS-TYPE ACTIVITIES

TOTAL

ASSETS
Cash and cash equivalents Receivables
Inventories Prepaid expenses Other assets Restricted assets:
Cash, restricted for debt and/or capital investments Right of use leased assets, net of amortization
Capital assets, net:
Non-depreciable assets
Depreciable assets (net of depreciation) Total capital assets, net

12,449
21,296,602
- 278,139

$

1,607,811
364,524
315,054
293,061
4,315

$

1,620,260
21,661,126
315,054
571,200
4,315

1,618,322
-

769,865
2,023,205

2,388,187
2,023,205

-
-
-

9,741,177
16,134,191
25,875,368

9,741,177
16,134,191
25,875,368

Total assets

 $	23,205,512	$	31,253,203	$ 54,458,715 

LIABILITIES
Accounts payable
Accrued expenses and other Accrued interest payable Unearned revenue
Non-current obligations: Portion due within one year Portion due after one year

13,507
- 318,054
-

$

362,116
632,624
51,542
1,579,171

$

375,623
632,624
369,596
1,579,171

585,000
24,831,243

513,610
1,495,838

1,098,610
26,327,081

25,747,804

Total Liabilities

4,634,901

30,382,705

NET POSITION
Net investment in capital assets Net position-restricted:
Debt service
Capital projects allocation Unrestricted:

-

25,875,368

25,875,368

1,334,837

- 769,865
(26,931)

1,334,837
769,865
(3,904,060)

(3,877,129)

Total Net Position

$

(2,542,292)

$

26,618,302

$

24,076,010

The accompanying notes are an integral part of these financial statements.
- 16 -

UNIVERSITY PARK RECREATION DISTRICT STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2025

NET (EXPENSES) REVENUES AND
CHANGES IN NET POSITION

CHARGES FOR SERVICES

GOVERNMENTAL ACTIVITIES

BUSINESS-TYPE
ACTIVITIES

TOTAL ACTIVITIES

EXPENSES

FUNCTIONS/PROGRAMS
Primary Government

Governmental activities General government Interest on long term debt

$

425,273
849,251
1,274,524

$

820,723
- 820,723

$

395,450
(849,251)
(453,801)

$

-
-
-

$

395,450
(849,251)
(453,801)

410,631
410,631

Business-type activities - Country Club Total business-type activities

14,371,129
14,371,129

14,781,760
14,781,760

410,631
410,631

Total government

15,645,653

15,602,483

(453,801)

410,631

(43,170)

General Revenues and Transfers:
Interest income Transfers-cash
Total general revenues and transfers

3,726
(2,176,734)

3,726

2,176,734

(2,173,008)

2,176,734

3,726

Change in net position

(2,626,809)

2,587,365

(39,444)

Net position, beginning of year

84,517

24,030,937

24,115,454

Net position, end of year

$

(2,542,292)

$

26,618,302

$

24,076,010

The accompanying

notes are an integral part of these financial statements.
- 17 -

UNIVERSITY PARK RECREATION DISTRICT
BALANCE SHEET - GOVERNMENTAL FUNDS SEPTEMBER 30, 2025

MAJOR FUNDS

TOTAL GOVERNMENTAL FUNDS

DEBT SERVICE 2019

ACQUISITION AND CONSTRUCTION

CAPITAL IRRIGATION

GENERAL

ASSETS
Cash and cash equivalents Receivables
Prepaid bond insurance Prepaid expenses
Total Assets

12,449
-

$

1,618,318
21,296,602

$

4

$

-

$

1,630,771
21,296,602
278,139

278,139

12,449

$

22,914,920

$

278,143

$

-

$

23,205,512

LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable Total Liabilities
Deferred Inflows of Resources:
Unavailable revenue-special assessments
Total Liabilities and Deferred Inflows of Resources

13,507

$

13,507

13,507

13,507

21,290,000

-

21,290,000

-

$

21,303,507

13,507

21,290,000

Fund Balances:
Reserved for:
Non-spendable Restricted Committed Assigned Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of Resources and Fund Balances

278,139
4

-
-

278,139
1,624,924

1,624,920

(1,058)

-

(1,058)

(1,058)

1,624,920

278,143

-

1,902,005

12,449

$

22,914,920

$

278,143

$

-

$

23,205,512

The accompanying notes are an integral part of these financial statements.
- 18 -

UNIVERSITY PARK RECREATION DISTRICT

RECONCILIATION OF THE GOVERMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET POSITION

SEPTEMBER 30, 2025

Total Governmental Fund Balance (Page 18)

$

1,902,005

Amounts reported for governmental activities in the statement of net position are different because:

The focus of governmental funds is on short-term financing, some assets will not be available to pay for current-period expenditures. Those assets (assessments receivable) are offset by deferred inflow in the governmental funds and thus are not included in fund balance:

Adjustment of deferred inflows - unavailable revenue

$

21,290,000

Long-term liabilities, including notes and bonds payable, are not due and payable in the current period and therefore are not reported in the funds. The amount borrowed is received in the governmental funds
and increases fund balance. Also, the difference between those amounts are the amortization of bond premium and insurance costs over the life
of the debt as well as year-end interest accrual adjustment in the statement of activities. Balance at year-end consist of:

Series 2019 Bonds outstanding 2024 BAN outstanding
Less: unamortized bond premium/other
Less: accrued interest payable on long-term debt

$ (21,290,000)
(4,059,274)
(66,969)
	(318,054)

	(25,734,297)

$	(2,542,292)

Total Net Position (Page 16)

The accompanying notes are an integral part of these financial statements.
- 19 -

UNIVERSITY PARK RECREATION DISTRICT
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2025

MAJOR FUNDS

TOTAL GOVERNMENTAL FUNDS

DEBT SERVICE 2019

ACQUISITION AND CONSTRUCTION

CAPITAL IRRIGATION

GENERAL

REVENUES
Non-ad valorem assessments Other revenues and interest Total Revenues
EXPENDITURES
Current:
General government Debt service:
Principal
Interest
Debt issuance costs
Bond insurance amortization Total Expenditures
(Deficiency) excess of revenues over expenditures OTHER FINANCING SOURCES AND USES
Proceeds from debt issuance Transfers in (out)
Total Financing Sources (Uses) Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year

-
-

$

1,390,723
3,726

$

-
-

$

1,390,723
3,726

1,394,449

-

1,394,449

322,108

28,964

351,072

570,000
696,586

570,000
827,061
71,299
11,460

130,475
71,299

11,460

322,108

1,295,550

11,460

201,774

1,830,892

(322,108)

98,899

(11,460)

(201,774)

(436,443)

2,554,274
(2,352,500)

2,554,274
(2,176,734)

301,922

(126,156)

301,922

(126,156)

201,774

377,540

(20,186)
19,128

(27,257)
1,652,177

(11,460)
289,603

-
-

(58,903)
1,960,908

(1,058)

$

1,624,920

$

278,143

$

-

$

1,902,005

The accompanying notes are an integral part of these financial statements.
- 20 -

UNIVERSITY PARK RECREATION DISTRICT

RECONCILIATION OF THE STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL TO THE STATEMENT OF ACTIVITIES

FUNDS

FOR THE YEAR ENDED SEPTEMBER 30, 2025

Net Change in Fund Balances - Total Governmental Funds (Page 20)

$

(58,903)

Amounts reported for governmental activities in the statement of activities are different because:

Governmental funds report annual collections of non-ad valorem assessments as revenue, including the portion collected for principal repayment. However, in the statement of activities, the principal repayment portion is eliminated and instead reduces the deferred inflows of resources on the balance sheet.

(570,000)

The issuance of long-term debt (e.g. bond anticipation note (BAN)) provides current financial resources to governmental funds, while the repayment of the of the principal of the long-term debt consumes the current resources of governmental funds. This amount denoted is the net effect of these differences in the treatment of long-term debt and related items.

(2,554,274)

Interest expense/other in the statement of activities differs from the amount reported in governmental funds for two reasons. The net effect of
accrued interest on long-term debt (difference between amount that would have been accrued in the current year accrual), and adjustments arising from bond premium and bond insurance being amortized.

Net effect of accrued interest on long-term debt Amortization of bond premium

(16,391)
	2,759

(13,632)

Repayments of long-term liabilities are reported as expenditures in the governmental fund statement, however, such repayments reduce liabilities in the statement of net position and are eliminated in the statement of activities.

	570,000

Change in Net Position of Governmental Activities (Page 17)

$	(2,626,809)

The accompanying notes are an integral part of these financial statements.
- 21 -

UNIVERSITY PARK RECREATION DISTRICT STATEMENT OF NET POSITION PROPRIETARY FUND
SEPTEMBER 30, 2025

Enterprise
(Country Club)

ASSETS
Current assets
Cash and cash equivalents Accounts receivable (net) Inventories
Prepaid expenses Other assets
Restricted assets: cash and cash equivalents Total current assets

$

1,607,811
364,524
315,054
293,061
4,315

	769,865 
	3,354,630 

Non-current assets
Right of use leased assets, net of amortization Capital assets, net
Total non-current assets

2,023,205
	25,875,368 
	27,898,573 

Total assets

 $	31,253,203 

LIABILITIES
Current liabilities Accounts payable
Accrued expenses and other Accrued interest payable Unearned revenue
Lease liabilities
Total current liabilities

$

362,116
632,624
51,542
1,579,171

	513,610 
	3,139,063 

Non-current liabilities Lease liabilities
Total non-current liabilities

	1,495,838 
1,495,838

Total liabilities

4,634,901

NET POSITION
Net investment in capital assets Net position-restricted:
Capital projects allocation Unrestricted

25,875,368

769,865
(26,931)

$

26,618,302

Total net position

The accompanying notes are an integral part of these financial statements.
- 22 -

UNIVERSITY PARK RECREATION DISTRICT
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION PROPRIETARY FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2025

Enterprise
(Country Club)

Operating revenue Membership dues Green/cart fees and other Dining revenues Racquets and fitness fees Miscellaneous
Total operating revenues

$

5,988,800
3,727,168
3,010,874
308,398

	28,977 
	13,064,217 

Operating expenses
Golf course maintenance Golf and pro shop operations Dining operations
Racquets and fitness Administrative and general Insurance
Depreciation and amortization Total operating expenses

3,094,536
1,734,230
4,320,401
627,441
2,051,972
335,919
	2,045,733 
	14,210,232 

(1,146,015)

Operating (loss)

Nonoperating revenues (expenses) Initiation fees
Capital dues
Insurance proceeds Interest expense Nonoperating expenses Miscellaneous and other
Total nonoperating revenues (expenses)

837,250
380,552
448,675
(110,882)
(50,015)
	51,066 
	1,556,646 

Contributions and transfers
Transfers in from Capital Irrigation Fund Transfer out to General Fund
Total contributions and transfers

2,352,500
	(175,766) 
	2,176,734 

Change in net position

2,587,365

Net position, beginning of year

24,030,937

$

26,618,302

Net position, ending of year

The accompanying notes are an integral part of these financial statements.
- 23 -

UNIVERSITY PARK RECREATION DISTRICT STATEMENT OF CASH FLOWS PROPRIETARY FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2025

Enterprise (Country Club)

Cash flows from operating activities: Receipts from members and customers Payments to suppliers for goods or services
Payments to contracted employees for services Net cash provided by operating activities
Cash flows from capital and related financing activities: Transfers in from Capital Irrigation Fund
Transfer to general fund
Principal paid on lease obligations and loans Initiation fees
Capital dues
Insurance proceeds/other
Increase in construction in progress Acquisition of capital assets, net
Net cash provided by capital and related financing activities
Net increase in cash and cash equivalents Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year
Reconciliation of operating income to net cash provided by operating activities:
Operating (loss)
Adjustments to reconcile operating income to net cash provided by operating activities:
Depreciation and amortization Interest expense
Change in assets and liabilities:
Decrease in accounts receivable Increase in inventories
Increase in prepaid expenses Decrease in other assets Decrease in accounts payable
Decrease in accrued payroll and other Increase in accrued interest payable Increase in unearned revenue
Total adjustments
Net cash provided by operating activities
Supplemental disclosures of cash flow information:
Capital assets obtained from transfers in from Capital Irrigation Fund Non-cash asset financing activity-leases

$

13,204,342
(7,211,357)

	(5,709,106) 
	283,879 

2,352,500
(175,766)
(611,378)
837,250
380,552
449,726
(1,216,177)
	(1,082,857) 
	933,850 
1,217,729
1,159,947

$

2,377,676

 $	(1,146,015) 

2,045,733
(110,882)

28,057
(27,390)
(117,592)
7,584
(334,224)
(223,979)
50,519
	112,068 
	1,429,894 
 $	283,879 

 $	2,352,500 
 $	2,202,468 

The accompanying notes are an integral part of these financial statements.
- 24 -

UNIVERSITY PARK RECREATION DISTRICT

NOTES TO FINANCIAL STATEMENTS

NOTE 1 - REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reporting Entity
The UNIVERSITY PARK RECREATION DISTRICT ("the District") was created on August 3, 2018 pursuant to provisions of Chapters 418 and 189, Florida Statutes, as amended (the "Act"), created by Ordinance No.18-29 enacted by the Board of County Commissioners of Manatee County, Florida and operates within the criteria established. The District was established for the purposes of acquiring and improving recreation facilities benefitting property consisting of 1,226 gross acres of land and 1,201 residential units to be served by the District. The District has undertaken the acquisition, financing, renovation and improvement, in various stages of the recreation facilities known as “University Park County Club” and associated professional fees and incidental costs related thereto for the special benefit of the District lands, pursuant to the Act. The District is authorized to issue bonds for the purpose, among others, of financing, funding, planning, establishing, acquiring, constructing or re-constructing, enlarging or extending, equipping, operating and basic infrastructure for recreational facilities of all kinds, including, but not limited to real property, personal property, roads, parking lots, sidewalks, trails, paths, parks, ponds, lakes, preserves, lighting, landscaping, irrigation, signage, water sewer and parking within boundaries of the UNIVERSITY PARK RECREATION DISTRICT. The District is governed by a five-member Board of Supervisors, who are elected within certain defined terms.
The financial statements were prepared in accordance with Governmental Accounting Standards Board (“GASB”) Statements related to the Financial Repoding Unit, which establishes standards for defining and reporting on the financial reporting entity. Under the provisions of those standards, the definition of the financial reporting entity is based upon the concept that elected officials are accountable to their constituents for their actions. One of the objectives of financial reporting is to provide users of financial statements with a basis for assessing the accountability of the elected officials. The financial reporting entity consists of the District 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. The District is financially accountable for a component unit if it appoints a voting majority of the organization's governing board and it is able to impose its will on that organization or there is a potential for the organization to provide specific financial benefits to, or impose specific financial burdens on, the District, or the District has operational responsibility on the organization. Based upon the application of these criteria, there were no entities that met the criteria described above. Therefore, the financial statements include only the operations of the District.
The District's financial statements include both government wide and fund financial statements:
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 District. Governmental activities, which normally are supported by taxes, are reported separately from business-type activities of which the District had such activities during 2025. For the most part, the effect of inter-fund 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 are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include (1) charges to members, customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment. and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Other items not properly included among program revenues are reported instead as general revenues.

-25-

UNIVERSITY PARK RECREATION DISTRICT

NOTES TO FINANCIAL STATEMENTS

NOTE 1 - REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Government-Wide and Fund Financial Statements (Continued)
Separate financial statements are provided for governmental funds even though such funds are excluded from the government-wide financial statements. All governmental funds of the District are reported as major individual funds.

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. Non-ad valorem assessments are
recognized as revenues in the year for which they are levied. Grants and similar items are 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 all revenues available if they are collected within 60 days after year-end. Expenditures generally are recorded when the related fund liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. The primary revenue sources associated with the current fiscal period that are susceptible to accrual are non-ad valorem assessments and any investment interest. All other revenue items become measurable and available only when cash is received by the District and are recognized as revenue at that time.

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 2019 Fund - This Debt Service 2019 Fund accounts accumulated resources for, and the payment of, general long-term principal, interest and related costs for the 2019 Project consisting of the acquisition of an existing 27-hole University Park championship golf course, clubhouse, restaurant, lounge, fitness center, tennis center, and other facilities and approximately 100 acres of additional land and certain renovations and upgrades to such facilities.

Acquisition and Construction Fund - This Acquisition and Construction Fund accounts for the construction and acquisition of capital assets such as acquisition of University Park club facilities as well as certain defined capital improvements noted in the 2019 Bond Series Indenture.

Capital Irrigation Fund - The Capital Irrigation Fund accounts for the golf course irrigation capital project and related debt funding.

The District reports the following major (and only) proprietary fund:

Enterprise (Country Club) Fund - This Fund accounts for the activities related to the University Park Country Club.
-26-

UNIVERSITY PARK RECREATION DISTRICT

NOTES TO FINANCIAL STATEMENTS

NOTE 1 - REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Proprietary fund distinguishes operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and selling goods in connection with the proprietary fund's principal ongoing operations. The principal operating revenues of the District's Enterprise (Country Club) Fund are charges to members and the public for sales and services. Operating expenses for the Enterprise Fund include the cost of sales and amenity services, administrative expenses and depreciation and amortization of capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.

Budgetary Process
The District's General Fund, Debt Service 2019 Fund and Proprietary Fund budgets and amendments are approved by the Board of Supervisors. There were no formal budgets adopted for the District's Acquisition and Construction and Capital Irrigation Funds during this fiscal year. The District's Debt Service 2019 Fund and Acquisition and Construction Funds are adhering to and following the specific mandates as delineated in the 2019 Bond Series Indenture. The adopted budgets are prepared on a basis consistent with U.S. generally accepted accounting principles except the Proprietary Fund does not budget for depreciation. The adopted budget amounts presented in the accompanying basic financial statements are originally adopted, unless subsequently amended, by the District's Board of Supervisors. Budgetary control is established by the District through the appropriated budget for all applicable Funds.

The annual budgets serve as the legal authorization for expenditures. Expenditure cannot legally exceed the total amounts budgeted. All budget amendments, which change the legally adopted total appropriation, are approved by the Board of Supervisors. Appropriations, if any, lapse at the year-end.

The District follows these procedures in establishing the budgetary data reflected in the financial statements.

a)

Each year the District management team submits to the District Board a proposed operating budget for the fiscal year commencing the following October 1.
A public hearing is conducted to obtain taxpayer comments.
Prior to October 1, the budget is legally adopted via resolution by the District Board. All budget changes must be approved by the District Board.
All 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.

b)
c)
d)
e)
f}

Encumbrances
Encumbrance accounting under which purchase orders and other commitments for expenditures of monies are recorded is not employed by the District and thus no amount has been included in these financial statements for encumbrances.

Due To and From Other Funds
Interfund receivables and payables, if any, arise from interfund transactions and are recorded by funds affected in the period in which transactions are executed. There were no amounts due to and from other funds on September 30, 2025, in the accompanying fund statements.

- 27 -

UNIVERSITY PARK RECREATION DISTRICT

NOTES TO FINANCIAL STATEMENTS

NOTE 1 - REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Total Column on the Statement of Net Position, Statement of Activities, Balance Sheet - Governmental Funds and the Statement of Revenues, Expenditures and Chanqes in Fund Balances - Governmental Funds
The total columns on the statement of net position, statement of activities, balance sheet - governmental funds and the statement of revenues, expenditures and changes in fund balances - governmental funds is presented only to facilitate financial analysis and also is utilized for reconciliation purposes to the government-wide financial statements. Data in this column does not present financial position or results of operations in conformity with generally accepted accounting principles, and such data is not comparable to a consolidation.

Cash and Cash Equivalents
Cash consists of petty cash, deposits in checking accounts, money market accounts. Cash equivalents are short-term investment items with a maturity of three months or less when purchased.

Accounts Receivable
Accounts receivable in the Enterprise Fund are stated at the amount management expects to collect from outstanding balances. These accounts represent member charges for goods and/or services provided. It is the District's policy to charge off uncollectible amounts when management determines the receivable will not be collected. There were no accounts receivable written-off during the year and $3,000 was included as an allowance for any uncollectible accounts at September 30, 2025. The District's collection policy includes contacting members at 15 days past the payment due date via phone call and email notification advising that the account is past due. At 30 days past the payment due date, the member's account will be suspended and an email notification will be issued. At 60 days past the payment due date, a certified letter from management will be sent regarding the status of the account. Accounts remaining unpaid at 90 days past the payment due date will be referred to a collection attorney for further action. Members who join the Club after January 1 each year will have their dues prorated to the effective date of membership.

Assessments Receivable/Unavailable Revenue
Assessments receivable recorded in the Debt Service 2019 Fund represent the balance of outstanding assessments levied at the time the related debt issuance was authorized. The receivables are collected in annual installments together with assessments for interest and collection costs in amounts sufficient to meet the annual 2019 Bond Series debt service requirements.
The District reports unavailable revenue as a deferred inflow of resources in the fund financial statements in an amount equal to the assessments receivable since this revenue (totaling $21,290,000 as of September 30, 2025) will be collected in future years. This assessment revenue is not deferred in the government-wide financial statements. Instead, it is recognized as revenue at the time the assessments are levied.
Restricted Assets
Certain resources set aside for the repayment of the District's special assessment bond proceeds are classified as restricted assets on the statement of net position because they are maintained in separate bank accounts and their use is limited by applicable bond covenants. The “Cash”, restricted for principal and interest account is used to segregate resources accumulated for future debt service payments as shown in the 2019 Bond Series Indenture.

-28-

UNIVERSITY PARK RECREATION DISTRICT

NOTES TO FINANCIAL STATEMENTS

NOTE 1 - REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Investments
Investments, if any, are reported and are equal or equivalent to fair value. The District follows Florida Statutes Section 218.415 (17) when investments are acquired. For any investments held, the District categorizes its fair value measurement within the fair value hierarchy established by generally accepted accounting principles.
The hierarchy is based on the valuation input used to measure the fair values of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs. All District funds held with US Bank (Bond Trustee) at September 30, 2025 are in money market accounts. Investments held at year-end by the District were considered cash equivalents due to their maturation date upon purchase.

Inventories
Inventories in the Enterprise (Country Club) Fund are stated at the lower of cost (first-in, first-out method) or net realizable value and consist of food, beverage, and merchandise held for sale in the pro shop. The costs of governmental fund type inventory, if any, are recorded as expenditures when consumed rather than when purchased.

Prepaid Items
Payments made to vendors for services that will be benefit periods beyond September 30, 2025, in the governmental funds are recorded as prepaid items using the consumption method by recording an asset for the prepaid amount and showing the expenditure/expense in the year in which the services are consumed. At the fund reporting level, an equal amount of the fund balance is classified as non-spendable, as this amount is not available for general appropriation.

Capital Assets and Depreciation
Capital assets, which include land, golf course and related improvements, buildings, machinery and equipment and tennis courts are reported in the business-type activities columns in the government-wide financial statements (see Note 3). The District had no governmental capital assets at September 30, 2025. Capital assets are defined by the District as assets with an initial, individual cost of more than $2,500 and an estimated useful life in excess of one year. Capital assets are carried at historical cost or estimated fair value at date of purchase. Contributed assets are recorded at acquisition value as of the date received. As the District constructs or acquires capital assets each period, such assets are capitalized and reported at historical cost.
The reported value excludes normal maintenance and repairs which are essentially amounts spent in relation to capital assets that do not increase the capacity or efficiency of the item or extend its useful life.

The District's golf course and improvements (excluding land), buildings, machinery and equipment and tennis courts are being depreciated using the straight-line method over the following estimated useful lives.

  YEARS 
15
28
5 - 7
7

Golf course and improvements Buildings
Machinery and equipment Tennis courts

- 29 -

UNIVERSITY PARK RECREATION DISTRICT

NOTES TO FINANCIAL STATEMENTS

NOTE 1 - REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Payables and Accruals
Payable and accrual amounts are recorded as expenses and liabilities when incurred in the government wide financial statements and as expenditures and liabilities in the fund financial statements when expected to be liquidated with available current expendable financial resources.

Compensated Absences
The District's staff are granted compensated absence pay for vacation and sick leave in varying amounts based on length of service and other adopted policies. Compensated absences are accrued when earned in the government-wide and proprietary financial statements.

Unearned Revenue
The District reports unearned revenue on its government-wide and proprietary fund statements of net position. Unearned revenue arises when assets are recognized before revenue recognition criteria have been satisfied. On both the government-wide statements and proprietary fund statement, unearned revenues represent the corresponding liability for cash advances received, related primarily to club membership dues and fees to fund future expected expenditures. In subsequent periods, when revenue recognition criteria are met the revenue will be recognized and the unearned revenue will be released.

Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position may report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The District had no items that qualify for reporting in this category. In addition to liabilities, the statement of net position may report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The District has only one type of item, which arises only under a modified accrual basis of accounting, that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental Debt Service 2019 fund reported unavailable revenues from the balance of outstanding assessments levied by the District to repay outstanding debt. These amounts are deferred and recognized as an inflow of resources in the future periods that the amounts become available.

Long-Term Obligations
2019 Series bond payable is reported as a liability in the government-wide statement of net position. This liability is not reported in the fund financial statements as they are considered to be current liabilities. In the government-wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method which approximates the effective interest method. Bonds are reported net of the applicable bond premium or discount. Bond issuance costs, other than prepaid insurance, are expensed at issuance. Prepaid insurance associated with the issuance of debt is reported as an asset and amortized over the term of the related debt. Related interest is expensed in the accompanying statement of activities.

- 30 -

UNIVERSITY PARK RECREATION DISTRICT

NOTES TO FINANCIAL STATEMENTS

NOTE 1 - REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued}

Long-Term Obliqations (Continued}
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as issuance costs, during the current period. The face amount of debt issued is reported as another financing source. Premiums received on debt issuances are reported as another financing source while discounts on debt issuances are reported as another financing use. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Related principal and interest payments are reported as expenditures in such statement.
Net Position
Net Position in the legally approved government-wide statements is displayed in three categories: (1) investment in capital assets, net (2) restricted or (3) unrestricted. Investment in capital assets, net, consist of capital assets reduced by accumulated depreciation and by any outstanding debt/liabilities. Restricted net position represents the assets restricted by the District's bond covenants net of accrued interest payable, as well as other internal restrictions approved by the Board of Supervisors for specific use. Unrestricted net position consists of the remaining net position that does not meet the definition of either of the other two categories.

Revenue and Expenses
Operating Revenues and Expenses
Operating revenues and expenses are those that result from providing and delivering goods and/or services. It also includes all revenue and expenses not related to financing or investing activities.

Nonoperating Revenues and Expenses
Nonoperating revenues and expenses represent revenue and expense items that are not incurred from the normal user activity of the District. This classification primarily includes revenues received from investments, interest received on special assessments, capital assessments, new member and initiation fees, deferred maintenance assessments, and interest expense and fiscal costs.
Fund Balances
The District establishes fund balance classifications that comprise a hierarchy based primarily on the extent to which a government is bound to observe constraints imposed upon the use of resources reported in governmental funds. The District's fund balances classifications are: Non-spendable, Restricted, Committed, Assigned and Unassigned. These classifications reflect not only the nature of funds, but also provide clarity to the level of restrictions placed upon fund balance. Fund balances can have different levels of restraint, such as external versus internal compliance requirements. Unassigned fund balance is a residual classification within the General Fund. The General Fund should be the only fund that reports a positive unassigned balance. In all other funds, unassigned is limited to negative residual fund balance. For further details of various fund balance classifications refer to Note 8.
Net Position Flow Assumption 
At times the District will fund outlays for a particular purpose from both restricted and unrestricted resources. In order to calculate the amount to report as restricted-net position and unrestricted-net position in the government-wide financial statements, a flow assumption must be made about the order in which resources are considered to be applied. It is the District's policy to consider restricted-net position to have been depleted before unrestricted-net position is applied.

- 31 -

UNIVERSITY PARK RECREATION DISTRICT

NOTES TO FINANCIAL STATEMENTS

NOTE 1 - REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Fund Balance Flow Assumption
At times the District will fund outlays for a particular purpose from both restricted and unrestricted resources (total of committed, assigned and unassigned fund balance). In order to calculate the amount to report as restricted, committed, assigned and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which resources are considered to be applied.

It is the District's policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of the unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance.
Unassigned fund balance is applied last.

Risk Management
The District is exposed to various risks of loss related to torts; theft, damage, and destruction of assets; errors and omissions; and natural disasters. Insurance coverage for such losses is purchased from third-party carriers. The financial impact of the District's risk management activities are reported in the General and Enterprise (Country Club) funds. Liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated.

There was no such type of occurrence during fiscal 2025. No accrual has been provided for claims and incidents not reported to the insurer. Claims made have not exceeded the insurance coverage for the current year.

Use of Estimates
The preparation of financial statements in conformity with U.S. 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 2 - CASH (DEPOSITS) AND CASH EQUIVALENTS

Cash (deposits) and cash equivalents held at September 30, 2025, by each governmental major fund consisted of:

DEBT SERVICE
	GENERAL	 	2019	
$	12,449 $ 1,618,322

ACQUISITION AND
 CONSTRUCTION 
$	4

CAPITAL
  IRRIGATION	 	TOTAL	
$	- $	1,630,771

Demand Deposits

- 32 -

UNIVERSITY PARK RECREATION DISTRICT

NOTES TO FINANCIAL STATEMENTS

NOTE 2 - CASH (DEPOSITS) AND CASH EQUIVALENTS {Continued)

Deposits
All District depositories are banks designated by the Florida State Treasurer as qualified public depositories. Chapter 280 of the Florida Statutes "Florida Security for Public Deposits Act" provides procedures for public depositories to ensure public monies in banks and saving and loans are collateralized with the Treasurer as agent for the public entities. Chapter 280 defines deposits as demand deposit accounts, time deposit accounts, and certificates of deposit.
Financial institutions qualifying as public depositories shall deposit with the Florida State Treasurer eligible collateral pursuant to the specific requirements provided in Chapter 280. The Public Deposit Security Trust Fund has a procedure to allocate and recover losses in the event of a default or insolvency. When public deposits are made in accordance with Chapter 280, no public depositor shall be liable for any loss thereof, and therefore the District is not exposed to custodial credit risk.

The District participates in a deposit placement agreement in which balances are placed with participating banks in deposit accounts up to the maximum Federal Deposit Insurance Corporation (FDIC) coverage of
$250,000. At times there are balances waiting to be allocated to participating banks, these amounts are subject to a single FDIC maximum of $250,000. As of September 30, 2025, the District had approximately excess funds of $1,266,000 deposits in this program which were not covered by FDIC.

Cash Equivalents
The District's investment policy is to follow Florida Statue 218.415(17), the District is authorized to make investments in:

•

Local Government Surplus Funds Trust Fund, or any intergovernmental investment pool authorized pursuant to the Florida lnterlocal Cooperation Act of 1969, as provided in s. 163.01;

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, as defined in Florida Statute 280.02; and

Direct obligations of the U.S. Treasury.

Other investments authorized by law and/or denoted at Section 218.415 (16) of the Florida Statutes.

•

•

•

•

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.

- 33 -

UNIVERSITY PARK RECREATION DISTRICT

NOTES TO FINANCIAL STATEMENTS

NOTE 3 - CAPITAL ASSETS, NET

Capital asset activity for the fiscal year ended September 30, 2025, was as follows:

BEGINNING
  BALANCE	

TRANSFERS
 (DELETIONS) 

ENDING
  BALANCE	

  ADDITIONS	

Governmental activities: (None for the year)

$	

 	

 	

 	

Business-type activities:

Capital assets, not being depreciated: Land
Construction in progress
Total capital assets, not being depreciated

$ 8,525,000
	5,002,618
 13,527,618

$

-

$

-

$ 8,525,000
	1,216,177
	9,741,177

	1,216,177
	1,216,177

  (5,002,618)
  (5,002,618)

Capital assets, being depreciated: Golf course and improvements Land improvements
Buildings
Dining renovations Machinery and equipment Tennis courts
Total capital assets being depreciated

6,332,840
135,876
3,225,054
3,391,611
1,658,057
	1,044,221
 15,787,659

5,906,229

-
-
-
- (4,956)
	-
	(4,956)

12,239,069
135,876
3,326,672
3,391,611
1,730,728
	1,044,221
 21,868,177

101,618

77,627
 	
	6,085,474

Less accumulated depreciation for: Golf course and improvements Land improvements
Buildings
Dining renovations Machinery and equipment Tennis courts
Total accumulated depreciation

(1,917,669)
(34,717)
(597,638)
(488,751)
(903,334)
	(332,290)
  (4,274,399)

(739,305)
(19,411)
(135,775)
(276,510)
(164,531)
	(129,012)
  (1,464,544)

-
-
-
- 4,956
	1
	4,957

(2,656,974)
(54,128)
(733,413)
(765,261)
(1,062,909)
	(461,301)
  (5,733,986)

Total capital assets, being depreciated, net

 11,513,260

	4,620,930

	1

 16,134,191

Business-type activities capital assets, net

$ 25,040,878

$ 5,837,107

$ (5,002,617)

$ 25,875,368

The Enterprise (Country Club) Fund depreciation and amortization expenses for the year ending September 30, 2025, totaled $1,464,544 and $581,189 respectively. Of the $7,301,651 in capital asset additions above,
$2,352,500 were paid with transfers from the Capital Irrigation Fund during the fiscal year.

NOTE 4 - LONG-TERM OBLIGATIONS AND PLEDGED FUTURE REVENUES

Long term obligations are comprised of limited obligations bonds (special assessment debt), Series 2019 bond premium loans, Bond Anticipation Note (BAN) Series 2024, office and equipment leases, and equipment loans.

- 34 -

UNIVERSITY PARK RECREATION DISTRICT

NOTES TO FINANCIAL STATEMENTS

NOTE 4 - LONG-TERM OBLIGATIONS AND PLEDGED FUTURE REVENUES (Continued)

Changes in long-term liability activity for the fiscal year ended September 30, 2025 was as follows:

BALANCE SEPTEMBER 30,
	2024	

BALANCE SEPTEMBER 30,
	2025	

DUE
WITHIN
	ONE YEAR	

	ADDITIONS	

 (REDUCTIONS) 

Governmenta/ activities: Series 2019 Bonds Plus: bond premium Series 2024 BAN
Business-type activities:
Office/equipment leases

$	21,860,000
69,734
1,505,000

$

-

$

(570,000)
(2,765)
-

$	21,290,000
66,969
4,059,274

$

585,000
-
-

2,554,274

	418,358
$	23,853,092

	2,024,880
$	4,579,154

	(433,790)
$	(1,006,555)

	2,009,448	513,610
$	27,425,691 $	1,098,610

Gov'ernmenf \cf/v/f/es
Specia/ tssessmenf Oegf with Governmenfa/ Comm/fmenf
Special assessment debt with governmental commitment is not backed by the full faith and credit of the District but is payable solely from the secured lien on and pledge of (non-ad valorem assessments) of the properties benefited by the improvements.

Non-Ad Valorem Assessment Bonds, Series 2019

The District adopted Resolution No. 2019-20 on February 8, 2019 and Resolution No. 2020-02 as ratified and reaffirmed on November 4, 2019 (the “Resolution”), and a Master Trust Indenture (the “Indenture”, as amended) on November 1, 2019, authorizing the issuance of Non-Ad Valorem Revenue Assessment Bonds, Series 2019, in one or more Series in the aggregate. Total bonds issued of $24,000,000 were used to finance the cost of acquiring recreation facilities known as the “University Park Country Club”, make certain defined improvements to such facilities and to fund the 2019 bond reserve requirements, the 2020 interest payments and various issuance costs including municipal bond insurance. The Bonds are secured by a covenant to budget and appropriate legally available non-ad valorem revenues of the District.

The Series 2019 Bonds is a tax-exempt issuance for $24,000,000 bearing interest at rates from 2.5% to 3.5%. Interest is paid semiannually on each May 1 and November 1 and principal is paid annually each May 1.
Principal payments began May 1, 2021 totaling $515,000 with increases of $15,000 in principal each year thereafter. The final principal payment of $1,225,000 is due on May 1, 2050.

The Series 2019 Bonds are subject to optional redemption prior to their stated date of maturity beginning May 1, 2029. The Series 2019 Bonds maturing on May 1, 2031 are subject to mandatory sinking fund redemption requirements beginning May 1, 2030 and thereafter as defined in the Indenture. The Series 2019 Bonds are subject to extraordinary mandatory redemption prior to maturity, in whole or in part on any date at the redemption price of 100% of the principal amount plus accrued interest to the redemption date as denoted or defined in the Indenture.

- 35 -

UNIVERSITY PARK RECREATION DISTRICT

NOTES TO FINANCIAL STATEMENTS

NOTE 4 - LONG-TERM OBLIGATIONS AND PLEDGED FUTURE REVENUES (Continued)

Non-Ad Valorem Assessment Bonds, Series 2019 (Continued)

The Bond Indenture required establishment of certain funds. The District's key major funds established upon issuance were:

(1) Debt Service 2019 Fund; and

(2) Acquisition and Construction Fund.

The Indenture requires a reserve requirement for the Series 2019 Bonds at an amount (calculated from time to time) equal to maximum annual debt service on the Series 2019 Bonds outstanding, initially of $1,270,244. The Series 2019 Bonds reserve requirement was met for fiscal year ended September 30, 2025.

In addition, the District has established in these accompanying financial statements a Proprietary Fund-Enterprise (Country Club) Fund for the University Park Country Club acquisition.
At September 30, 2025, the scheduled future debt service requirements on the District's outstanding Series 2019 Bonds are as follows:
	SERIES 2019 BONDS	
YEAR ENDING

	PRINCIPAL	

	INTEREST	

	TOTAL	

 SEPTEMBER 30 

2026
2027
2028
2029
2030
2031 - 2035
2036 - 2040
2041 - 2045
2046 - 2050
Total

$

585,000
600,000
615,000
630,000
645,000
3,535,000
4,120,000

$

682,338
667,713
652,713
637,338
620,800
2,801,600
2,221,563

$

1,267,338
1,267,713
1,267,713
1,267,338
1,265,800
6,336,600
6,341,563

4,835,000
	5,725,000
$	21,290,000

1,502,050
	615,124
$	10,401,239

6,337,050
	6,340,124
$	31,691,239

Bond Anticipation Note (“BAN”), Series 2024

The District adopted Resolution No. 2024-20 on June 27, 2024 , authorizing the issuance of Bond Anticipation Note , Series 2024 not to exceed $5,000,000 with Regions Capital Advantage, Inc. Total BAN proceeds (not to exceed $5m) will be used to: (1) finance the golf course irrigation improvements; (2) fund interest through and including maturity, and (3) pay the District's related costs of issuance. The BAN is secured by non-ad valorem assessments as delineated in the District's adopted Resolution No. 2024-12 adopted on November 3, 2023.
BAN is bearing interest at a variable rate per annum equal to 79% of month SOFR plus eight basis points (0.0080). Interest is paid semiannually on February 12 and August 12 each year. Principal is due upon maturity. BAN matures on August 12, 2026. The BAN outstanding balance at September 30, 2025 was
$4,059,274. The BAN was extended to August 11, 2027 pursuant to the District's Resolution No. 2025-20.

- 36 -

UNIVERSITY PARK RECREATION DISTRICT

NOTES TO FINANCIAL STATEMENTS

NOTE 4 - LONG-TERM OBLIGATIONS AND PLEDGED FUTURE REVENUES (Continued)

Business Type Activities

Lease Obligations
The District has entered into agreements with certain vendors for use of office equipment, golf course maintenance equipment, and golf carts.
Amortization and interest expenses related to these leases for the year ended September 30, 2025
, consisted of the following:

Lease Expense
Amortization expense by class of underlying asset Equipment
Copy machines
Total amortization expense Interest on lease liabilities Variable lease expense
Total Lease Expense

$

560,655

	20,534 
581,189
110,882
 	
  $	692,070 

The following is a schedule by years of future minimum lease payments as of September 30, 2025:
Maturity Analysis
for Years Ending

September 30,
2026
2027
2028
2029
Total Future Payments

	Principal	

	Interest	

 Total Payments 

$

513,610
554,214
569,259

$

141,948
101,344
58,132

$

655,558
655,558
627,391

	372,365 
 $	2,009,448 

	17,461 
  $	318,885 

	389,826 
 $	2,328,333 

Principal and interest payments are due monthly. As of September 30, 2025, the principal amounts outstanding were $2,009,448 and the net book value of the equipment was $2,023,205. Amortization of leased equipment under right-of-use assets is grouped with depreciation expense. The interest or discount rates on the leases range from 6.00% to 13.46%. The lease agreements include a provision that upon the occurrence of any event of default, the lessor may retake possession of the equipment under lease.

Right-of-use assets included on the statement of net position and the related accumulated amortization as of September 30, 2025, were as follows:

Cost
Accumulated depreciation

$	2,486,052
$	462,847

Right-of-use assets, net

$	2,023,205

- 37 -

UNIVERSITY PARK RECREATION DISTRICT

NOTES TO FINANCIAL STATEMENTS

NOTE 5 - INTERFUND TRANSACTIONS

Transfers of resources from a fund receiving revenue to the fund through which the resources will be expended are recorded as transfers and are reported as other financing sources (uses) in the governmental or
proprietary funds. Non-recurring or non-routine transfers of equity between funds are also reported as transfers. These transfers were made in the year from the Capital Irrigation Fund to the Enterprise (Country Club) Fund for specific District funds expended to make certain capital improvements as provided in Resolution No.2024-20, as well as other transfers of excess income from the Debt Service 2019 and Enterprise (Country Club) Fund to the General Fund for operation and management purposes.
Following is a summary of transfers individually by Major Funds and the Enterprise (Country Club) Fund for the year and also between governmental activities and business-type activities in the government-wide statement of activities:

 TRANSFERS IN 

 TRANSFERS OUT 

Major Funds:
Capital Irrigation Fund Debt Service 2019 Fund General Fund
Proprietary Fund:
Enterprise (Country Club) Fund

-
- 301,922

$

(2,352,500)
(126,156)
-

	2,352,500

	(175,766)

Total Interfund Transfers

$	2,654,422

$	(2,654,422)

Activity between funds that is representative of lending/borrowing arrangements outstanding at the end of the fiscal year, if any, are referred to as "due to/from other funds". There were no amounts due from and to other funds on September 30, 2025.

NOTE 6 - RETIREMENT PLAN

The District offers a 401(k) retirement plan through its management company for the benefit of its staff. Each eligible employee is permitted to make a contribution to the plan in amounts as provided by Internal Revenue Service regulations. The current plan does not require matching contributions by the District of the employee's deferral amount. Consequently, there was no contribution expense for the year ended September 30, 2025.

NOTE 7 - MANAGEMENT CONTRACTS 

The District has contracted with PFM Group Consulting, LLC, a management company, through September 30, 2025 to perform management advisory services. One employee of the management company serves as Secretary of the District. Under the agreement, the District compensated the management company for administrative, management, and other ancillary costs, in the amount of $83,748 during the year ending September 30, 2025. Additionally, the District paid $6,858 to US Bank for bond administration costs.
The District has contracted with Park Boulevard Management, LLC (“PBM”), a management company, through September 30, 2025 to perform the management, operation, organization, administration and maintenance of the University Park Country Club in accordance with the terms of the agreement.

- 38 -

UNIVERSITY PARK RECREATION DISTRICT

NOTES TO FINANCIAL STATEMENTS

NOTE 7 - MANAGEMENT CONTRACTS (Continued)

Park Boulevard Management, LLC is owned by the University Park Community Association, Inc (“the Association”). PBM is a company active in the management of the Association and the District. PBM acts as an agent on behalf of the Association and the District and provides payroll services to the Association and the District. As an agent in 2025, PBM has no net income as all charges for payroll services are paid out as salary or payroll taxes.

The District entered into a Collection Agreement with PFM Grouping Consulting, LLC to act as collection agent (the “Collection Agent”) to monitor payments of the Series 2019 Non-Ad Valorem Assessments. The Collection Agent is required to maintain a lien book for the assessed properties evidencing the requirement of payment of the Series 2019 Non-Ad Valorem Assessments including any prepayment of the such assessments on subjected properties. The Collection Agent is authorized to release the applicable lien upon receipt of each Series 2019 Non-Ad Valorem Assessment. The Collection Agreement established procedures for the Collection Agent to monitor properties subject to the assessment lien and to assure payment is being delivered to the Trustee. Total Collection Agent fees paid for 2025 were $10,000.

NOTE 8 - FUND BALANCE DISCLOSURE

In accordance with GASB No. 54, the District classifies governmental fund balances (as applicable) as follows:

•

Non-spendable - includes fund balance amounts that cannot be spent either because they are not in spendable form or because of legal or contractual requirements.
Restricted - includes fund balance amounts that are constrained for specific purposes which are externally imposed by providers, such as creditors, lenders or amounts constrained due to constitutional provisions or enabling legislation.

•

•

Committed - includes fund balance amounts that are constrained for specific purposes that are internally imposed by the District through a formal action of the highest level of decision-making authority.
Assigned - includes fund balance amounts that are intended to be used for specific purposes that are neither considered restricted or committed. Fund balances may be assigned by the Supervisors to assign amounts for specific purposes.
Unassigned - includes residual positive fund balance within the General Fund which has not been classified within the other above classifications. Unassigned fund balance may include negative balances for any governmental fund is expenditures exceed amounts restricted, committed, or assigned for those specific purposes.

•

•

The District uses restricted amounts to be spent first when both restricted and unrestricted fund balance is available unless there are legal documents and/or contracts that prohibit doing this, such as grant agreements requiring certain dollars spent. Additionally, the District would first use committed, then assigned, and lastly unassigned amounts of unrestricted fund balance when expenditure is made.

-39-

UNIVERSITY PARK RECREATION DISTRICT

NOTES TO FINANCIAL STATEMENTS

NOTE 8 - FUND BALANCE DISCLOSURE (Continued)

A schedule of the District's government fund balances at September 30, 2025 is as follows:

	MAJOR FUNDS	

DEBT
SERVICE
	2019	

ACQUISITION
AND
 CONSTRUCTION 

TOTAL
GOVERNMENTAL
	FUNDS	

CAPITAL
  IRRIGATION	

	GENERAL	

Non-spendable Restricted Committed Assigned Unassigned
Total

$

-
-

$

-
1,624,920

$

278,139
4

$

-
-

$

278,139
1,624,924

	(1,058)
$	(1,058)

	-
$	1,624,920

	-
$	278,143

	-
$	-

	(1,058)
$	1,902,005

The District's enterprise fund balance has restricted fund balances for various capital allocations of $769,865.

NOTE 9 - SUBSEQUENT EVENTS

In preparing the financial statements, the District has evaluated events and transactions for potential recognition or disclosure through March 27, 2026, the date that the financial statements were available to be issued. The following matters were identified as subsequent events:

1. In November 2025, the District paid interest of $341,169 on the Series 2019 Bonds.

NOTE 10 - LITIGATION AND DISPUTES

The District deals with various legal matters involving District residents and certain government agencies arising in the ordinary course of its governmental activities and services. The District believes that these various legal matters will not adversely affect the overall District's financial position. The outcome of any legal matters is uncertain and thus it is not possible to predict with any degree of certainty the outcome or result of any such litigation nor is it possible to predict with any degree of certainty the impact of any such litigation on the District.

In addition, the District initially took steps to issue a $21,000,000 bond for improvements to the District in 2024. A certain District resident opposed the proposed improvements and the issuance of the Bonds. Presently, this matter is awaiting a decision by the Supreme Court or an Order requiring Oral Argument. As such bond issuance is in dispute, the District authorized in 2024 the issuance of a Bond Anticipation Note, Series 2024 not to exceed $5,000,000 with Regions Capital Advantage, Inc. The BAN Series 2024 outstanding balance at September 30, 2025, was $4,059,274, see Note 4. The District borrowed funds of $2,554,274 during the year for the golf course irrigation project.

- 40 -

PART II.	REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MD&A

UNIVERSITY PARK RECREATION DISTRICT
SGHEDULEOFREVENUESANDEXPENDITURES BUDGETANDACTUAL-GENERALFUND
FOR THE YEAR ENDED SEPTEMBER 30, 2025

GENERAL FUND

VARIANCE
WITH FINAL BUDGET
POSITIVE (NEGATIVE)

BUDGETED AMOUNTS

ACTUAL AMOUNT

REVENUES

ORIGINAL

FINAL

Prior Year Surplus
Inter-Fund Transfers from Debt Service Inter-Fund Transfers from Country Club Total Revenues

$

7,734
70,000
175,766

$

20,186
126,156
175,766

$

- 126,156
175,766

$

(20,186)
-
-

253,500

322,108

301,922

(20,186)

EXPENDITURES
Current:
General government Capital outlay
Contingency/revenue reserve
Debt service: Principal retirement Interest
Total Expenditures

239,500

320,890

320,890

14,000

1,218

1,218

-

253,500

322,108

322,108

(Deficiency) excess of revenues over expenditures
OTHER FINANCING SOURCES AND (USES)
Inter-Fund Transfers from Debt Service Inter-Fund Transfers from Country Club Total Other Financing Sources and (Uses)

-

(20,186)

(20,186)

Net Change in Net Position

-

(20,186)

$

(20,186)

Net Position, Beginning
Net Position, Ending

	19,128 

$

(1,058)

The accompanying notes are an integral part of these financial statements.
- 41 -

PART III.

SUPPLEMENTARY INFORMATION

UNIVERSITY PARK RECREATION DISTRICT
SCHEDULE OF REVENUES AND EXPENDITURES BUDGET AND ACTUAL - DEBT SERVICE 2019
FOR THE YEAR ENDED SEPTEMBER 30, 2025

DEBT SERVICE 2019

VARIANCE
WITH
FINAL BUDGET POSITIVE (NEGATIVE)

BUDGETED AMOUNTS

ACTUAL
AMOUNT

REVENUES

ORIGINAL

FINAL

Non ad valorem assessments Interest income
Total Revenues

$

1,607,755
-

$

1,759,279
3,597

$

1,390,723
3,726

$

(368,556)
129

1,607,755

1,762,876

1,394,449

(368,427)

EXPENDITURES
Current:
General government Capital outlay
Contingency/revenue reserve
Debt service: Principal retirement Interest
Total Expenditures

-

28,963

28,964

(1)

570,000
696,588

570,000
696,588

570,000
696,586

2

1,266,588

1,295,551

1,295,550

1

(Deficiency) excess of revenues over expenditures
OTHER FINANCING SOURCES AND (USES)
Inter-Fund Transfers Inter-Fund Transfers out
Total Other Financing Sources and (Uses)

341,167

467,325

98,899

(368,426)

-
-

(126,156)
(126,156)

(126,156)
(126,156)

Net Change in Net Position

$

341,167

$

341,169

(27,257)

$

(368,426)

Net Position, Beginning
Net Position, Ending

	1,652,177 
$ 1,624,920

The accompanying notes are an integral part of these financial statements.
- 42 -

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

Nathan A. Phillips, CPA

Stephanie J.
David N.

CPA
MBA

Courtney L. Cound, CPA

John M.
Michelle V.

CPA
CPA

Shannon L. Huber, CPA
Keith S. Boyle, CPA Bethany A. Bohall, CPA

March 27, 2026

To the Board of Supervisors
UNIVERSITY PARK RECREATION DISTRICT
University Park, Florida 34201

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, business — type activities and each major fund of UNIVERSITY PARK RECREATION DISTRICT, as of and for the year ended September 30, 2025, and the related notes to the financial statements, which collectively comprise the UNIVERSITY PARK RECREATION DISTRICT'S basic financial statements, and have issued our report thereon dated March 27, 2026.

Report on Internal Control Over Financial Reporting

In planning and performing our audit of the financial statements, we considered UNIVERSITY PARK RECREATION DISTRICT'S internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of UNIVERSITY PARK RECREATION DISTRICT'S internal control. Accordingly, we do not express an opinion on the effectiveness of UNIVERSITY PARK RECREATION 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 District'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 have not been identified.

Certified Public Accountants

- 43 -

801 Laurel Oak Drive, Suite

Naples, FL 34108

P 239 566 1600 | F 239 566 1901 | pfgcpa.com

To the Board of Supervisors
UNIVERSITY PARK RECREATION DISTRICT
March 27, 2026

Regort on Compliance and Other Matters

As part of obtaining reasonable assurance about whether UNIVERSITY PARK RECREATION DISTRICT'S financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the District's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing

Standards in considering the District's internal control and compliance. suitable for any other purpose.

Accordingly, this communication is not

H

PS

A	GR

.A.

Certified Public Accountants Naples, Florida

- 44 -

Nathan A. Phillips, CPA

INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH SECTION 218.415, FLORIDA STATUTES

Stephanie J.
David N.

CPA
MBA

Courtney L. Cound, CPA

John M.
Michelle V.

CPA
CPA

March 27, 2026

Shannon L. Huber, CPA
Keith S. Boyle, CPA Bethany A. Bohall, CPA

To the Board of Supervisors
UNIVERSITY PARK RECREATION DISTRICT
University Park, Florida 34201

We have examined UNIVERSITY PARK RECREATION DISTRICT's compliance with Section 218.415, Florida Statutes, regarding the investment of public funds during the year ended September 30, 2025. UNIVERSITY PARK RECREATION DISTRICT's management is responsible for compliance with those requirements. Our responsibility is to express an opinion on UNIVERSITY PARK RECREATION 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 UNIVERSITY PARK RECREATION DISTRICT complied, in all material respects, with those requirements. An examination involves performing procedures to obtain evidence about whether UNIVERSITY PARK RECREATION DISTRICT complied with those 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 UNIVERSITY PARK RECREATION DISTRICT's compliance with the specified requirements.

We are required to be independent of the District and to meet our ethical responsibilities, in accordance with the relevant ethical requirements relating to our attestation engagement

In our opinion, UNIVERSITY PARK RECREATION DISTRICT complied, in all material respects, with Section
218.415 of the Florida Statutes for the year ended September 30, 2025.

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

PHILLIPS FELDMAN GROUP, P.A.
Certified Public Accountants Naples, Florida

Certified Public Accountants

801 Laurel Oak Drive, Suite

Naples, FL 34108

- 45 -

P 239 566 1600 | F 239 566 1901 | pfgcpa.com

MANAGEMENT LETTER
LOCAL GOVERNMENT ENTITIES

Nathan A. Phillips, CPA

Stephanie J.
David N.

CPA
MBA

Courtney L. Cound, CPA

March 27, 2026

John M.
Michelle V.

CPA
CPA

Shannon L. Huber, CPA

Keith S. Boyle, CPA
Bethany A. Bohall, CPA

To the Board of Supervisors
UNIVERSITY PARK RECREATION DISTRICT
University Park, Florida 34201

Board of Supervisors:

Report on the Financial Statements

We have audited the financial statements of UNIVERSITY PARK RECREATION DISTRICT, Florida, as of and for the fiscal year ended September 30, 2025, and have issued our report thereon dated March 27, 2026.

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 on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards; and Independent Accountant's Report on an examination conducted in accordance with AICPA Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated March 27, 2026, should be considered in conjunction with this management letter.

Prior Audit Findings

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

Official Title and Legal Authority

Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. The District discloses this information in the notes to the financial statements. The District does not have any component units as of September 30, 2025.

Certified Public Accountants

- 46 -

801 Laurel Oak Drive, Suite

Naples, FL 34108

P 239 566 1600 | F 239 566 1901 | pfgcpa.com

To the Board of Supervisors
UNIVERSITY PARK RECREATION DISTRICT
March 27, 2026

Financial Condition and Management

Sections 10.554(1)(i)5.a and 10.556(8), Rules of the Auditor General, requires us to apply appropriate procedures and communicate the results of our determination as to whether or not UNIVERSITY PARK RECREATION DISTRICT met one or more of the conditions described in Section 218.503(1), Florida Statutes, and to identify the specific condition(s) met. In connection with our audit, we determined that UNIVERSITY PARK RECREATION DISTRICT did not meet any of the conditions described in the Section 218.503(1), Florida Statutes.

Pursuant to Sections 10.554(1)(i)5.b. and 10.556(8), Rules of the Auditor General, we applied financial condition assessment procedures for UNIVERSITY PARK RECREATION DISTRICT. It is management's responsibility to monitor UNIVERSITY PARK RECREATION DISTRICT's financial condition, and our financial condition assessment was based in part on representations made by management and the review of financial information provided by same.

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

Specific Information

As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)6, Rules of the Auditor General, UNIVERSITY PARK RECREATION DISTRICT reported:

a.

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

b.

The total number of independent contractors to whom nonemployee compensation were paid in the last month of the District's fiscal year as 55.

C.

All compensation earned by or awarded to contracted employees, whether paid or accrued, regardless of contingency as $5,917,058.

d.

All compensation earned by or awarded to nonemployee independent contractors, whether paid or accrued, regardless of contingency as $823,862.

e.

Each construction project with a total cost of at least $65,000 approved by the District that
is scheduled to begin on or after October 1 of the fiscal year being reported: Back 9 Renovation, with associated project cost of $1,164,233.

f.

A budget variance report based on the budget adopted under Section 189.016(4), Florida Statutes, before the beginning of the fiscal year being reported if the District amends a final
adopted budget under Section 189.016(6), Florida Statutes, as included below: the 2025 budget for the District's Enterprise and General funds were amended, see pages 41-42.

- 47 -

To the Board of Supervisors
UNIVERSITY PARK RECREATION DISTRICT
March 27, 2026

Specific Information (Continued)

As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)7, Rules of the Auditor General, the UNIVERSITY PARK RECREATION DISTRICT reported:

a. The rate or rates of non-ad valorem special assessments imposed by the District as 2.5% to 3.5%.

b. The total amount of special assessments collected by or on behalf of the District as $1,394,450.

c. The total amount of outstanding bonds issued by the District and the terms of such bonds as $21,290,000.

Additional Matters

Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not 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, thé Board of Supervisors, and applicable management, and is not intended to be and should not be used by anyone other than these specified parties.

I

GRO	, “ .A

Certified Public Accountants Naples, Florida

-48-

Country Club Management Agreement Review

Memo

FROM: TO:
RE:

Paul Fay and Alan Port UPRD Finance Committee
Review of Management Agreement, dated 12/13/24, and Cooperation Agreement, dated 12/13/19
May 15, 2026

DATE:

This memorandum describes the action plan that we have outlined for the review of the Management Agreement and the Cooperation Agreement, as well as the progress that has been made to date. We recommend that the following steps be included in the process of review.

1.

We recommend coordination with the board. Scott Hubner has been designated the board member who has responsibility for matters of governance. Alan has spoken with Scott about this project. Scott has commented as follows: “There will be overlaps between governance and financial. Both groups need to review and sign off on final recommendations.”

2.

Paul, who is intimately familiar with UPRD operations, will perform the first review of both agreements with the intention of determining whether the agreements are consistent with practical operations and to determine whether the agreements contain errors. Alan will perform a second review.

3.

We welcome input as to which other individuals and/or entities should review the agreements in whole or in part. For example, the insurance provisions of the Management Agreement (Section 6 and subsections) should be reviewed by our internal property and casualty consultant, Jim Heller, and by UPRD’s property and casualty broker. Are there others within UPRD’s operational structure who should provide input?

4.

As of the date of this memo, Paul and Alan have completed their first review of the Management Agreement. Their comments on the Management Agreement are attached. No review of the Cooperation Agreement has yet occurred.

5.

We believe that the Management Agreement should refer to primary policies for the operation of the UPRD’s business. The UPRD board should have the latitude to amend those primary policies from time to time as it sees fit.

6.

The Management Agreement references a purchasing policy. At this point, we have not been able to determine whether such a policy exists. Paul and Alan are aware of Investment Guidelines, dated September 26, 2018, and the Capital Expenditure Policy, on which the Finance Committee is currently working. The Investment Guidelines are not referenced in the Management Agreement. Such policies should be specifically identified by date or version. See the Investment Guidelines as an example.

7.

The agreements should, of course, be reviewed by legal counsel.

8.

We look for guidance from the Committee as to whether Paul and Alan should attempt to draft the changes to the agreements, or whether it is better to provide our comments to legal counsel, so that counsel can draft the revised documents.

For completeness, copies of the Investment Guidelines, as adopted, and the Capital Expenditure Policy, which is in process, are attached.

9.

Country Club Management Agreement Review Prepared by Paul Fay 5/4/2026
Further Comments (in red) by Alan Port 5/15/2026

Park Boulevard Management is misspelled in the 1st paragraph.
Background A. Commas or semicolons should be used consistently. One mention of “tennis courts” should be eliminated.
Section 2.2 Operational Standards – references UPRD’s policies and procedures related to purchasing. We are looking into this document. This provision should also reference the UPRD Investment Guidelines and the UPRD Capital Expenditure Approval Process (when adopted). Language regarding “as adopted from time to time” should pertain to all such guidelines/policies/procedures.
Section 3.1 Should the agreement automatically renew from year to year to avoid inadvertent expiration? Note that there is safety for all parties per Section 3.2’s 90 day termination without cause.
Section4.1 Should the word “directly” before “employed” be eliminated because it may raise the question: “Employed by whom?” Section 5.3 states that all employees at the Club are the Manager’s employees.
Section 4.2 Does the timing adhere to Florida Statutes? Section 4.1.5 states submission date of May 1st. Thirty days is the “Business Plan Review Period” and UPRD will approve with thirty days following. Does the statute allow for 60 days after May 1st? “In the event of” should be replaced with “In the event that	”
Section 4.4 — Operating Expenses References "Section 5.2 and subject to items (i), (ii) and (iii) of Section 4.5.2" Section 4.5.2 does not exist. Section 4.5 covers Capital Expenditures only, with no subsections.
Section 4.4.2 — Unbudgeted Expenses References "Section 4.5.3" in the sentence: "Except as provided in Section 4.5.3, if the Manager deviates from the Annual Operating Budget..." Section 4.5.3 does not exist. Section 4.5 has no subsections at all. (S/B 4.4.3?)
Section 4.4.3 The clause “provided that the aggregate Operating Expenses in the applicable department in the annual Budget will remain unaffected,	” does not make
sense to me unless “department” is changed to “departments.”
Section 4.5 — Capital Expenditures – There may be some changes to this section depending on the adoption of the Capital Expenditure Approval process document being reviewed by the Finance Committee.

Country Club Management Agreement Review Prepared by Paul Fay 5/4/2026
Further Comments (in red) by Alan Port 5/15/2026

Section 5.1.1 – “…of the Property in accordance with the Operational Standards the Annual Business Plan (including the Annual Operating Budget), the terms of this Agreement, and subject to available working capital...”
This section reads awkwardly due to a missing comma, after Operational Standards should reference section 2.2.
Section 5.1.1 — Annual Business Plan References "Section 4.3" for preparation and submission of the Annual Business Plan. Section 4.3 exists and covers "Changes to Annual Business Plan” however, the more appropriate reference for preparation and submission would be Section 4.1.5 (which defines the Annual Business Plan) or Section 4.2 (which covers UPRD approval). This appears to be an incorrect cross-reference pointing to the wrong subsection.
Section 5.1.7 — Hazardous Situations References "Section 4.5.2.(ii)" for authority to remedy unsafe situations. Section 4.5.2 does not exist The reference should be to Section
4.4.2 (ii).
Section 5.2 – “signature authority is limited to $50,000 (except transfers to pay payroll); expenditures greater than $50,000 (except transfers to pay payroll) shall require a counter signature by either the UPRD Board Chairman or Treasurer.” This section should be reviewed. Does this threshold apply to each disbursement to a vendor, even if the disbursement includes multiple invoices or charges? Should this threshold be increased?
Section 5.2.5 (a) – “except preparation of the UPRD's federal income tax returns.” This should be removed.
Section 5.3.2 – “Any such amounts ("Compensation") that are not paid when due because of insufficient revenues of the Property will accrue interest at a rate of3% per year and UPRD will pay such unpaid Compensation in full no later than the earlier of (i) five years from the date the Compensation was originally due, and (ii) termination of agreement, subject to the UPRD Annual Operating Budget.” I think this language should be reviewed and possibly removed.
Section 5.4 – Can the last sentence of this section be broadened in any way to avoid inadvertent violations? Presumably any capital property financed with UPRD bonds will be disposed of only when it has salvage value at most.

Country Club Management Agreement Review Prepared by Paul Fay 5/4/2026
Further Comments (in red) by Alan Port 5/15/2026

Sections 6.1 and 6.3 – Review all sections with internal insurance consultant and broker for reasonablity and availability of coverage in the market.
Section 6.1.1 G 6.1.2 – Review and revise the no-co-insurance provision. In 6.6.1 and 6.6.2 in the parentheticals change “if available” to “if reasonably available.” Such insurance may be available but at an unreasonable price.
Section 6.1.3 – “Comprehensive public liability insurance, including bodily injury, personal injury, property damage, products liability, contractual liability covering the provisions of this Agreement, and liquor liability, in an amount not less than Five Million Dollars ($5,000,000.00) single limit combined primary and umbrella coverage.” Review and revise so that it clearly states that the $5,000,000 total can be met by combining the primary and umbrella policies together.
Section 6.2 – I don’t think that insurance coverage and limits receive UPRD Board prior approval. Coverage is most typically bound in a rush as expirations approach so that UPRD Board approval prior to renewal is mostly impracticable. Perhaps reference the budget?