1	MINUTES OF BUDGET WORKSHOP	
2	HARMONY COMMUNITY DEVELOPMENT DISTRICT	
3			
4	A budget workshop of the Board of Supervisors of the Harmony Community Development District	
5	(“CDD” or “District”) was held Thursday, April 25, 2024, at 4:30 p.m. at the Jones Model Home,	
6	3285 Songbird Circle, Saint Cloud, FL 34773.	
7			
8	Present were:		
9			
10	Mark LeMenager	Chairman	
11	Daniel Leet	Vice Chairman	
12	Lucas Chokanis	Assistant Secretary	
13	Kerul Kassel	Assistant Secretary	
14	Joellyn Phillips (via Zoom)	Assistant Secretary	
15
16	Also present, either in person or via Zoom Video Communications, were:
17								
18	Angel Montagna	District Manager, Inframark				
19	Howard Neal	District Manager, Inframark				
20	David Hamstra	District Engineer, Pegasus Engineering		
21	Jorge Baez	Field Services Supervisor, Inframark			
22	Brenda Burgess	Project Manager, Inframark				
23	Residents and Members of the Public							
24								
25	This is not a certified or verbatim transcript but rather represents a recap of the discussions at the	
26	workshop. The full recording is available in audio format upon request. Contact the District Office	
27	for any related costs for an audio copy.							
28								
29	FIRST ORDER OF BUSINESS	Call to Order and Roll Call				
30	Mr. LeMenager called the workshop to order at 4:34 p.m.	
31	Mr. LeMenager called the roll.							
32								
33	SECOND ORDER OF BUSINESS	Audience Comments				
34	There being no comments, the next order of business followed.				
35
36	THIRD ORDER OF BUSINESS	Discussion of Fiscal Year 2025 Preliminary	
37		Budget						
38	Mr. LeMenager suggested rather than tying assessments to total expenditures, to increase them	
39	the rate of inflation. Putting $305,000 into reserves instead of $412,000 results in a 3.5% increase.	
40	Ms. Montagna reminded the Board since VC-1	was	paid off, 5.14	acres	were	removed,	
41	resulting in 2.2% increase. The contribution to reserves, at whatever dollar, has not been earmarked	
42	for any specific purpose. The current year contribution was designed for the maintenance facility.	
43	Mr. LeMenager pointed out the ending fund balance is still $1 million.				

Ms. Montagna provided information regarding issuing bonds at several dollar amounts
showing net bond proceeds and resulting assessments for each product type. Each bond area needs
to be built out at least 90% to be able to issue new bonds. Mr. Hamstra confirmed the community
is 90.4%. Mr. LeMenager asked if this bond could have a different methodology than previous
bond issues, suggesting it be equalized for all properties in the amount of about $100 per unit.
Mr. Leet reminded the Board once approved, the assessments can only go down and suggested
approving at 4% to give some cushion to get down to 3.5%. Mr. LeMenager pointed out the amount
of assessment collection revenue is significantly under budget through March.
Ms. Montagna suggested having a realistic increase for purposes of mailed notice, so as not to
panic residents who may or may not understand the budget can be trimmed by the hearing.
The Board discussed budget line items, notably the items highlighted in yellow on the
workbook.
Expenditures:
	ProfServ-Engineering: $70,000.
	ProfServ-Legal Services: $60,000.
	ProfServ-Recording Secretary: $4,456.
o Reduced due to not providing verbatim minutes.
	Auditing Services: $5,000.
	Insurance-General Liability: $27,000.
o This includes all insurance: general liability, public officers liability (POL), and
property.
	Rental-Meeting Room: $7,500.
o Other options are being considered since the current meeting location is for sale.
o Ms. Kassel offered the First Nature Ranch as a meeting place. Former counsel
suggested even though Ms. Kassel was not receiving Supervisor fees that it was
a bad idea to meet at her ranch. Staff will consult with legal counsel.
	Misc-Assessment Collection Cost: $59,358.
o This is formula driven and changes based on assessment revenue.
	Landscape Services-Miscellaneous Services: $50,000.
o Actuals have never been as high as $50,000.
o Ms. Kassel prefers to keep at $50,000 due to projects and refurbishments the
Board has discussed doing.

o Tree trimming has its own line item, which is still projected to be under budget.
Community-wide tree trimming was last done in fiscal year 2023, so
recommendation to budget for fiscal year 2025.
	Operation & Maintenance, R&M-Ponds/Buck Lake: $100,000.
o The District confirmed it owns the golf course ponds through Mr. Hamstra’s
review and research, and the District is obligated to perform maintenance,
which ponds have never been treated, resulting in more chemicals and
treatments, as well as the Buck Lake committee agreement.
o Discussion ensued regarding the South Florida Water Management District
(“SFWMD”) permit.
o Ms. Kassel suggested perhaps combining this line item with R&M-Invasive
Plant Maintenance since some of the pond maintenance is management of
invasives, to be cleaner.
	Operation & Maintenance, R&M-Invasive Plant Maintenance: $105,000.
o This is strictly conservation areas Mr. Brad Vinson treats. As some point, the
District may need to hire a vendor to perform a treatment due to one person not
able to keep up with it, which cost is included in the $105,000. Due to the
dangerous nature and location of the work, another staff member has to
accompany Mr. Vinson.
o Mr. Vinson is certified to provide treatments. A previous Board considered
proposals from vendors to provide pond treatments, but they were not approved
at the time.
o Discussion ensued regarding projections for the year of $10,000 but a proposed
budget of $105,000. Ms. Kassel provided the history of spending $200,000 two
or three years ago because the invasives got out of hand, and a vendor had to
get them under control. Proposals were received. Mr. Leet indicated the Board
approved the cheaper one for $50,000, but the consultant, Ms. Catherine
Bowman, rejected it. Ms. Montagna confirmed the Board then approved a
proposal for $194,000. Ms. Bowman informed the Board the invasives will
come back quickly, and Mr. Vinson will not be able to keep up with it according
to the requirements of SFWMD. The Board at the time agreed to budget
$100,000  in  case  the  vendor—Mr.  Bill  Snidely  with  Aquatic  Weed
Management—needed to be hired again for another cleanup.

o The Board gave consensus to leave at $105,000.
o Mr. Hamstra commented on the Old World Climbing Fern as one of his projects
and recommended keeping $100,000 in the budget. Ms. Bowman found another
hotspot on the golf course that will spread quickly during the summer. Ms.
Kassel suggested contacting Mr. Snidely for an update, and Mr. Hamstra will
follow up. His previous proposal was $94,000. It might be better to spend a
little money now.
	Operation & Maintenance, Reserve-Other: $412,000.
o Reducing to $305,000 results in an assessment increase of 3.5%.
o Mr. Hamstra discussed alleys. C-1 and C-2 (Cypress) were done last year. The
reserve study recommends doing A-1 (Ashley Park) and G (Green) in fiscal
year 2025 and beyond, which is estimated at $850,000 and could be split over
two fiscal years.
o Mr. Hamstra recommended including $25,000 for cattail removal and general
maintenance of the stormwater system (e.g., pipe cleaning, camera work). Some
cattail removal was performed in the community for $7,000, but more ponds
are getting out of control. Mr. Hamstra clarified typical stormwater pond
maintenance includes cattail removal, pipe cleaning, and skimmer blades. The
cattail removal and pipe cleaning work done this fiscal year is included in
R&M-Ponds/Buck Lake. Mr. Hamstra indicated the District has 35 ponds, and
six were treated this year. Ms. Montagna suggested putting a plan in place so
work elements can be prioritized and included in the budget as needed.
o Regarding alleys, Mr. Hamstra reviewed previous reports recommending the
alleys to be done next fiscal year and indicated the alleys still look good and
could perhaps wait another year. He will provide numbers for planning
purposes. The cost was about $100 per linear foot for the C-1 and C-2 alleys,
which will be the cost basis for future alleys to be paved in the next one to five
years. Mr. Leet asked about the curb work proposed to be done for Blazing Star
Lane alley, which could be done in milling and resurfacing. Mr. Chokanis
suggested keeping the cost allocated for this year to build reserves even if the
alleys are paved in one to five years.
o Mr. LeMenager suggested other large capital projects be included if the District
chooses and is able to issue bonds to purchase the golf maintenance facility.

	Harmony CDD	
	April 25, 2024, budget workshop	
142	Discussion ensued regarding two options: issue a larger bond series resulting in	
143	assessments to all owners over a period of time, or increasing a particular year’s	
144	budget as needed. Mr. LeMenager prefers stable, reliable numbers.	
145
146	Ms. Phillips commented on the proposed assessment increase of 3.5% to follow consumer	
147	price index (“CPI”) and suggested inflation might be as high as consumer product index. In dollars,	
148	an increase of 7.6% results in $275 as the highest increase, from $3,627 to $3,902. Most increases	
149	are less than $150. Going from 7.6% to 3.5% is not a huge increase in dollars to the owners but	
150	makes a big impact in the budget. Ms. Phillips is in favor of a 7.6% increase and suggested keeping	
151	the increase one more year before dropping it to a lower rate, where the District might not need to	
152	increase assessments much at all.	
153	Mr. LeMenager reviewed a conversation on Facebook with Ms. Kassel prior to his appointment	
154	on the Board that perhaps the District should have been increasing assessments at the rate of	
155	inflation all along, which might have avoided a shocking increase two years ago. Mr. LeMenager	
156	agrees with an increase at the rate of inflation every year, putting the extra money in reserves. Mr.	
157	Chokanis agreed and reminded the Board a lot of catching up needed to be done after ten or more	
158	years of no increases. Two years ago was a large increase (31%) and another big increase (15%)	
159	last year. The District still has a lot to catch up on.	
160	Mr. Hamstra reviewed his projects: alley repairs ($850,000), cattail removal ($25,000),	
161	conservation area maintenance ($100,000), drainage maintenance, and maintenance facility.	
162	Discussion ensued regarding showing increases in percentages or dollars. Due to the many	
163	different product types and assessment levels, the percentage basis is more uniform.	
164	Mr. LeMenager reviewed the ending fund balance projected to be $1,122,380 at the end of	
165	fiscal year 2025. Removing $107,000 will still leave $1,015,380. Not included in the budget is the	
166	alley repaving estimate of $850,000.	
167	Mr. Leet asked if all Mr. Hamstra’s projects are included, which they are except for alley	
168	repaving. Every $30,000 results in 1% increase, so a contribution to reserves of $320,000 results	
169	in a 4% increase, which is Mr. Leet’s preferred starting point.	
170	Mr. Chokanis agreed not starting with 3.5% increase but recommends 7.6% increase this year	
171	to avoid keeping it 3.5% this year and potentially having to increase higher than inflation rate next	
172	year.	
173	Ms. Montagna reviewed the history of increases, which have been decreasing in percentage.	
174	Most districts increase by inflation every year, which money builds up in reserves if not used. Ms.	

Montagna does not recommend a 0% increase because costs increase every year. Mr. LeMenager
wants to get back to normal and target the rate of inflation. Mr. Chokanis would like to get to the
rate of inflation more slowly than just going straight there now.
Ms. Phillips commented with a 3.5% increase and things come up to be done, then the Board
has to decide what has to be cut.
Mr. Leet indicated the District has monies in reserves for normal maintenance activities. For
extraordinary damages, such as hurricanes, the District can recover costs through bonds or other
means versus a budget increase.
Mr. Leet prefers 4% increase.
Ms. Kassel prefers 7.6% increase as the most feasible.
Ms. Phillips reminded the Board the maximum dollar increase for 7.6% is $250 annually, or
$20 monthly, and the Board has a fiduciary responsibility.
Mr. LeMenager believes Harmony assessments are cheap, but many residents may be in a tight
financial situation and will wonder why assessments are increasing higher than inflation. He does
not want to simply add dollars to fund balance without a plan to utilize those funds for rainy days.
Mr. Hamstra indicated neighborhood B (Birchwood) alley is coming up soon, as well as D-1
(Drake) and others. Alleys have about a 15-year lifespan, and B was done about ten years ago,
which will be targeted again for 2030.
Ms. Phillips commented her assessment is $1,200 annually and enjoys the community and its
amenities. Three Supervisor positions will be elected in November 2024, and there is potential that
three people will be elected who want to slash the budget and start going backward. Having money
in reserves will help that situation. Mr. LeMenager believes people will still be reasonable even
if they have a different viewpoint. Sitting as a Board member, you realize what needs to be done.
Ms. Phillips is in favor of 7.6% increase and reviewed additional enhancements.
Ms. Montagna summarized the budget process, and the proposed budget has to be approved
prior to June 15.
Mr. Chokanis asked how much other communities have in their reserves. Ms. Montagna
indicated it depends on the assets owned. Using Celebration CDD as an example, it has very few
assets because the homeowners association owns literally everything. Celebration CDD owns
common areas, ponds, a few shade structures, street light poles, benches, and things like that.
Celebration CDD contributes about $350,000 annually to reserves. Their reserve study suggested
adding $1.5 million, which will probably never happen. Harmony will have $1 million in fund
balance, and Celebration will have about $3 million in fund balance with virtually no assets and a

field staff of 25 at $1.3 million. Mr. Chokanis does not believe $1 million is a lot to have in fund
balance. Ms. Montagna shared another district contributes $12,500 to reserves annually and owns
everything; a storm came through and they had no reserves, so they had to take out a bank loan.
Harmony is financially healthy, but it is a Board decision. No district will ever be 100% funded in
reserves unless assessments are astronomical. Some districts have no reserves and others assess at
their expenses every year. Some districts increase 3% or 4% annually, regardless of expenses.
Celebration started with a build-out budget for assessments and had not increased in 27 years
because they used reserves to offset assessment increases.
Mr. Chokanis would like to get to 2% or 3% annually at some point.
Mr. Leet indicated $370,000 contribution to reserves results in a 6% increase.
Mr. LeMenager suggests a lot of cushion was added to invasives and ponds, $205,000,
compared to the projected actuals for the current year. Ms. Montagna indicated that more work
will be required due to maintaining golf course ponds, and invasives have not been assessed yet
this year.
Mr. Leet discussed the history of last year’s increase, which included a maintenance facility.
Ms. Kassel is not in favor of issuing bonds to purchase the golf facility. Mr. Leet indicated the
Board cannot fund that purchase from reserves. The Board intentionally increased the reserve
contribution last year that may not need to be done this year. Mr. Leet likes 3.5% or CPI as a goal.
Fund balance of $1.1 million sounds like a lot, but one big project can wipe it out.
Ms. Kassel and Mr. Chokanis like $412,000 contribution to reserves.
Mr. LeMenager likes $305,000.
Mr. Leet likes $370,000.
Ms. Phillips likes a 5% increase, or $345,000, but will support $412,000 since it can be
lowered.
Reserve to contribution will be shown at $412,000 for a 7.6% increase.
Ms. Phillips requested the mailed notice include the dollar amount the assessments will
increase. Ms. Burgess confirmed the letter that is mailed will show both: dollars and percent. Ms.
Kassel requested a monthly amount, as well.
Mr. LeMenager asked about H-1 (Rosewood) 25-foot lots, which are the west end off U.S.
Hwy 192 and are townhomes but classed as single-family homes on the assessment chart. Mr.
LeMenager asked where the new townhomes will be classed, if they will be multi-family. Ms.
Kassel indicated they are attached, just like Ashley Park. Mr. Leet indicated the rest of H-1 is
single family. Mr. LeMenager would like to codify multi-family applies to townhomes, triplexes,

Agenda Page #61
Harmony CDD
April 25, 2024, budget workshop
apartments, and condominiums at one flat rate. Ms. Kassel does not believe that is appropriate
because the sizes of the units and number of bedroom vary, but the same situation exists in Ashley
Park with different sizes and number of bedrooms. Ms. Montagna briefly reviewed that is the
purpose behind preparing a new methodology to be utilized next year if the Board agrees. Ms.
Kassel suggested using square footage as a way to assign assessments. Mr. LeMenager suggested
that methodology will increase assessments for the majority of residents. Larger homes and the
Estates subsidize a lot of what people pay. Mr. LeMenager and Ms. Kassel would benefit greatly
from changing the methodology and would have to recuse themselves from the vote. Ms. Kassel
would like to see the methodology for square footage. Ms. Montagna suggested scheduling a
workshop after the budget season to discuss methodology options. Mr. LeMenager believes
changing the methodology will cause too much confusion.
Questions arose what multi-family units in H-1 will be paying or how they are classed and if
they are detached homes on 25-foot lots or attached multi-family units because H-1 currently has
no multi-family units shown on the assessment chart.
The overall percentage is shown to the far right, and those who have paid off debt service will

257	Ms. Montagna confirmed a new bond	issuance could have assessments equalized over all	
258	product types.		
259			
260	FOURTH ORDER OF BUSINESS	Other Business, Update, and Supervisor	
261		Requests	

have an O&M increase of 7.6% but an overall 1.6% increase.

262	There being none, the next order of business followed. 263
FIFTH ORDER OF BUSINESS	Adjournment

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I The workshop adjourned at 5:47 p.m.	

�7- �v1-
secreta:;t::fsecretary	Chairman/vice Chairman

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