MINUTES OF MEETING ROLLING HILLS COMMUNITY DEVELOPMENT DISTRICT The regular meeting of the Board of Supervisors of the Rolling Hills Community Development District was held Tuesday, June 10, 2025 at 6:00 p.m. in the Rolling Hills Amenity Center, 3212 Bradley Creek Parkway, Green Cove Springs, Florida. Present and constituting a quorum were: Billy Gibbons Vice Chairman Helana Cormier Supervisor Susan Gibbons Supervisor Also present were: Marilee Giles District Manager Katie Buchanan by phone District Counsel Freddie Oca Riverside Management Keith Hadden District Engineer Jay Soriano GMS The following is a summary of the actions taken at the June 10, 2025 regular meeting of the Board of Supervisors of the Rolling Hills Community Development District. FIRST ORDER OF BUSINESS Roll Call Ms. Giles called the meeting to order at 6:00 p.m. and called roll. Three Board members were present constituting a quorum. SECOND ORDER OF BUSINESS Audience Comments Ms. Giles opened the public comment period for agenda items only. Ms. Giles noted there were several audience members in attendance and there were copies of the agenda provided. She added comments are limited to 3 minutes. Ms. Giles clarified that the public comment period is open for all audience members, not just residents and is limited to comments on the agenda. She added there is a time during the end of the meeting where other comments on anything are accepted. She stated this is required by Florida statutes Chapter 190. An audience member asked about the HOA attending the meeting and about contacting the HOA. He asked how to reach them and if they could attend the meeting. He was concerned he could not get a response from the HOA. Ms. Giles noted the HOA could be invited to the meeting as a member of the public, but they would not want the HOA to be on the agenda due to the fact they would charge for the time. Mr. Soriano stated the HOA could be invited. Ms. Giles noted they would not want the HOA on the agenda because the CDD staff is considered professional services paid by the hour, using district funds. THIRD ORDER OF BUSINESS Approval of Corrected Minutes of the February 11, 2025 Meeting Ms. Giles presented the corrected minutes from the February 11, 2025 Board of Supervisors meeting for approval. She stated a supervisor had asked for even more corrections. Ms. Cormier stated the comments were in reference to the April 8, 2025 meeting. On MOTION by Ms. Susan Gibbons, seconded by Mr. Billy Gibbons, with all in favor, the Corrected Minutes of the February 11, 2025 Meeting, were approved 3-0. FOURTH ORDER OF BUSINESS Approval of the Minutes of the April 8, 2025 Meeting Ms. Giles presented the minutes from the April 8, 2025 Board of Supervisors meeting for approval. She asked if there were any comments, corrections, or changes. Ms. Comier asked about her corrections. Ms. Giles noted the email was received late on a Friday, and they were not able to make any corrections to the agenda. Ms. Cormier stated the minutes were only received 7 days prior to the meeting, and it was hard trying to go through and read through them. She submitted the request and there were significant comments from our attorney and engineer, and she asked if now was the time for amendments. Ms. Giles stated there is no requirement in the Florida statutes to have the minutes verbatim, only a requirement for a summary. She stated the decision is up to the Board on how detailed they wanted the minutes. She noted she had sent the minutes to everyone. She added the comments were to modify what the engineer and District counsel said. She stated it was open for Board discussion. Ms. Cormier stated the engineer had commented about paying $15 for the conservation land and he was willing to sublet it back to us or give it back to us. She wanted the community to know that was part of the comments and would be a detail to have in there. She added she reviewed the actual verbiage, so that was the recording and my paraphrase. She commented about asking the attorney and comments about the developer wanting to do this without having to utilize the not to exceed of $5,000. Those 2 details she would greatly appreciate being included in the minutes. Ms. Buchanan made comments about the attorney’s comments. Ms. Cormier wanted to have the audio reviewed and the comments in the minutes. Ms. Giles asked the Board for their input and noted they could replay and have someone listen to the recordings. Mr. Gibbons stated he had reviewed the minutes and did not feel those comments changed the minutes. Ms. Giles stated they don’t. He added he did not think the residents would read them and the comments did not have a lot of value. He noted he was okay with the minutes and would like them posted sooner rather than later. Ms. Cormier stated she still strongly disagreed, and really wanted those details verified and added. She added if they are irrelevant to other Board members that is fine but if someone wants to go back and read them later, and have them there, at least they are there. On MOTION by Mr. Billy Gibbons, seconded by Ms. Susan Gibbons, with Mr. Gibbons and Ms. Gibbons in favor, and Ms. Cormier Opposed, the Minutes of the April 8, 2025 Meeting, were approved 2-1. FIFTH ORDER OF BUSINESS Discussion of Suspension Letters Ms. Giles stated the suspension letter is not in the agenda package, but it was emailed to the Board. She asked the public if the resident was in attendance and noted that there was a minor involved. She cautioned not to use the minor’s name, but the family name can be mentioned. She noted the suspension letter was dated April 21, 2025 and the minor was already suspended until October 14, 2025. She added staff had witnessed him on property violating that suspension several times. She asked the Board for discussion. She added this family was also involved in the previous incident where the three families had to repay the insurance payment. She noted this was the only family so far that has made the payment. She stated that does not have to weigh on the Board’s decision. Ms. Buchanan had no further comments. Mr. Gibbons asked for clarification if the suspension was for 6 months just for the minor. Ms. Giles stated this letter reminded him he had a current suspension and let him know this would be a public suspension hearing for the Board to discuss. She added the Board could suspend him further than the October 14th suspension or the Board can take no further action. Mr. Gibbons stated since he had violated this several times he would suggest adding the 6 months onto the suspension. Ms. Giles clarified the letter was telling them the Board would meet tonight to have a suspension hearing to discuss. Discussion ensued on sending officers, CCSO going to the resident’s home and speaking to the dad, the original act that caused the suspension, violation act, no further incidents occurred, and he had not been seen on property since. Ms. Cormier asked about allowing more time to see if he respects what CCSO told him and what would be the process if he violates. Ms. Giles stated they had called CCSO before and they talked to the parents. Further comments were made they were not going to do anything, child being well under the age of being here, (since the age requirement is 14 and older), he falls under the parent’s responsibility, and clarification on exactly where he is allowed. Ms. Buchanan added comments about that being the age of parent responsibility, and that was a difficult decision. Ms. Giles clarified he was 10. She noted that technically the parent could be held responsible. Mr. Soriano noted the Board did discuss this. Ms. Cormier noted she felt the parents could be held responsible on this and discussed possible suspension of the parents. Ms. Buchanan stated they could act on that. Ms. Cormier discussed family impact. The Board discussed how many times he had already violated the rule, a possibility of waiting until October to see if there were any further violations, sending another letter clarifying the action, and other options were discussed. A letter will be sent to the family, and Ms. Giles will coordinate with Ms. Buchanan on the legal wording. On MOTION by Ms. Cormier, seconded by Ms. Susan Gibbons, with all in favor, Authorizing Staff and District Counsel to Draft a Warning Letter to the Parents of the Suspended Resident, was approved 3-0. SIXTH ORDER OF BUSINESS Ratification of Audit Engagement Letter with Grau & Associates for Fiscal Year 2024 Ms. Giles stated the next item is for ratification of the audit letter with Grau & Associates for Fiscal Year 2024. She noted this documents the auditor’s scope to conduct this audit. Ms. Cormier stated she reviewed the letter about the management being responsible for informing the audit company and addressed the work that has happened with Riverside Management and the $40,000 maintenance items, and operation items. She wanted to know if it was in their best interest to have subcontractors. Mr. Soriano stated they were looking to see if the spending was done appropriately. Ms. Giles added the auditors follow Florida statute requirement when they do audits and respond to internal controls and auditor requirements. On MOTION by Ms. Susan Gibbons, seconded by Mr. Billy Gibbons, with all in favor, the Audit Engagement Letter with Grau & Associates for Fiscal Year 2024, was ratified. SEVENTH ORDER OF BUSINESS Consideration of Proposal from Riverside Management Services for Fiscal Year 2026 Services Ms. Giles stated this proposal is from Riverside Management Services for Fiscal Year 2026. Mr. Soriano reviewed the proposal, the increases, budget requirements, the in-house pool maintenance, janitorial, the 5% increase. He added this came about due to wanting more hours, rules, lifeguards, etc. Ms. Cormier asked about the contract on the time period, if they would come back to honor their contract, and if this was a renewal or a new year start? Mr. Soriano stated this is not a tie in contract, the Board could look at this month-to-month wording, reasonable cost, cancellation process, changing vendors, fees, and possible increases. It was noted the current agreement states the contract shall automatically renew for additional one year term unless terminated pursuant to the terms, similar to the landscape contract. Ms. Cormier stated she wants this to go out for bid, not an ongoing renewal. Ms. Giles explained the RFP process, sending notices to vendors, and she recommended approval for budget numbers to be set aside. Ms. Buchanan commented she could get numbers on the contract and pull numbers to compare. Mr. Soriano explained how to compare numbers with other vendors. Mr. Gibbons made comments about the effort and money put into this, and he was happy with Riverside and did not want to go out for bid on other vendors. Ms. Cormier stated she felt like they should have job descriptions and was unsure what the staff was doing. She commented on reading the contract, job descriptions, duty of staff, staff (Laney) wanted more hours, not needing training for skimming a pool, sending texts to Mr. Oca, hiring of employees, doing better with another vendor, fees that were charged, GMS working with Riverside, extra services, if a particular vendor is wanted they will look for others, and comments about the need for licensed jobs. On MOTION by Ms. Susan Gibbons, seconded by Mr. Billy Gibbons, with Ms. Susan Gibbons, Mr. Billy Gibbons in favor and Ms. Cormier Opposed, the Proposal from Riverside Management Services for Fiscal Year 2026, was approved 2-1. Ms. Cormier stated she still wanted to make a motion to put this out for bid. On MOTION by Ms. Cormier to Go Out for Bid for Onsite Services, there being no second the motion failed. EIGHTH ORDER OF BUSINESS Consideration of Resolution 2025-03, Approving the Proposed Budget for Fiscal Year 2026 and Setting a Public Hearing Date for Adoption (August 12, 2025) Ms. Giles stated this item was for approving the proposed budget for Fiscal Year 2026 and setting a public hearing date for adoption. She recommended August 12, 2025 for the public hearing at 6:00 p.m. at the same location. Ms. Buchanan stated this will allow for adoption of the budget and allow the District to publish the budget and hold a public hearing. Ms. Giles noted a copy of the budget was provided to the audience. Ms. Giles provided an overview of the budget to include the general funds, capital reserve fund, and debt service fund for bonds. She reviewed the product types, and the assessments for 2026 shows no increase for the residents. She noted very little had been put aside for capital reserve in the past years. Mr. Gibbons asked the question on field operations and irrigation and streetlights amount with a 100% increase. Mr. Soriano commented on the increase and discussed areas and utilities that are not all transferred over to the District. Ms. Giles commented on the narrative section and deeper explanations of the amount, and this amount is based on past utility bills. Comments were made on the increased cost in landscaping, maintenance hours, actuals as of April, projects completed and planned by District, capital outlay, repairs and maintenance line, moving funds, capital reserve expectations, and the annual target dates and amount of $970,000 to be fully funded, and expended $640,000 in capital reserve this year and expenditures. Ms. Giles noted this was a very healthy District. She noted they can begin to fix things and move forward. Mr. Soriano discussed some specific project expenditures for next year like appliances. He noted the study may cover serval units. Mr. Gibbons asked how the $400,000 capital outlay came to be. Ms. Giles explained trying to get to the recommended year-end balance in the capital reserves and this should be less in the years to come. She noted each year’s input helps with the end balance. On MOTION by Mr. Billy Gibbons, seconded by Ms. Cormier, with all in favor, Resolution 2025-03 Approving the Proposed Budget for Fiscal Year 2026 and Setting a Public Hearing for August 12, 2025, was approved 3-0. NINTH ORDER OF BUSINESS Staff Reports A. Attorney Ms. Buchanan provided an update on the financial overview of the initial bond process, how the money was spent, and improvement projects. She noted there is no action needed on this item. She discussed the offering memorandum packets process, construction account fund process, the developer didn’t pay, and the District could pay, and bond expenditures. She will mail this out to the Board. Ms. Buchanan provided a follow-up on the conversation and direction given to her to try and review the entitlement associated with this property. She reviewed the records and talked to the developer and discussed if they would be able to convey the easement land to the District. There is a cost to acquiring the property, enhancement of property that would have to create rules and have policies and monitoring to maintain at the same quality. She added there are pieces of land that are not being conveyed. She added the District does not have the oversight on the development regarding what other lands would be used for and ensure there are no legal issues with not taking the land, and the CDD never made a commitment or signed anything to accept this land. Mr. Gibbons commented on the $300,000 bridge that would have to be replaced. Discussion ensued with Ms. Cormier stating she had not received it earlier for Board review. Ms. Cormier stated these conservation lands are supposed to be part of our budget and there is verbiage that states it is supposed to be conservation for our community and stated that research indicates that Clay County is currently reviewing how it will respond if the CDD chose not to take the conservation easement land. She noted research indicates for the intended land to be developed there are 200 acres that will remain in its natural state and provide lots of recreation space and open space. This acreage will be conveyed to the CDD. It was noted they would not be able to be put in things such as bike trails. Ms. Cormier noted she had asked for clarification for that and some of the documents on Phase 1 from the original developer dictated in the conveyance of the land. This one dictates the bridge, and the conservation company that bought it and the original plans were supposed to look like some other communities, this land is here for the community and to bring in joy for the residents here, and she stated it does not sit well with her for it to be put into the Hadden family trust. She noted this would be a disservice to the community for the Board to even think that was appropriate. She noted she has reached out to the county and asked for guidance and still does not know what they will say. Ms. Giles and Ms. Buchanan stated if the Board agrees and the Board wants to accept the conservation areas that the owner is offering, Ms. Buchanan stated she did not see that the county needed to oversee. If the Board wants to do something consistent, it should be easy. She wants the Board to understand the cost associated with it to monitor and maintain the area. Ms. Giles stated this is standard and there is nothing unusual if the Board wants to accept these conservation areas from the owner. The onsite staff is very familiar with the St. John’s Water Management restrictions and they are very involved in the community, they know when dirt bikes arrive and they are not supposed to be. Ms. Giles noted that CCSO are often chasing people out of the existing conservation area. There is nothing unusual about the CDD accepting this. Ms. Buchanan and Ms. Giles noted if the Board is divided, there needs to be a discussion if the Board doesn’t want to accept the conservation area. Ms. Giles stated the Board needed to have discussion on their decision. She added Ms. Cormier has stated she wants the land as it was originally designated in the design from 2004. Mr. Gibbons stated he did not think they should make a vote tonight without the two other Board members. He added he could care less about the conservation easements and doesn’t believe they will be utilized anyway. He stated he believes the bridge is going to be a continued costs for the District. Ms. Giles stated it could be sold it is still within the boundaries with rules placed on it with limitations. She asked Ms. Buchanan why they did not want to convey the uplands and was there a reason. Mr. Gibbons noted there is dollar value associate with the uplands and very little dollar associated with the wetlands. Discussion ensued regarding tracts being conveyed one at a time, they were told it was all of conservation land or nothing, problems with building, huge concerns of liability, animals in the area, no benefit to the District, neglected maintenance, and other concerns noted by Mr. Soriano. Ms. Giles stated Mr. Gibbons did not want to make decision without the other Board members and asked Ms. Buchanan for guidance on how to prepare for the next meeting in August to try and move forward. Ms. Buchanan noted there were repercussions for the District, the costs for repairs, and she noted that they need an actual number for the bridge repair, the county may want to move forward before August, and the Board would need a special meeting for a decision. Mr. Soriano can get a quote on bridge repair. Mr. Gibbons asked the engineer if this was the same deal they were proposing to him with only the wetlands and not the uplands. It was asked about the county repairing the sidewalks, if accepted could they shut the bridge for the county to create a sidewalk. Mr. Hadden made comments on the process on the land, the lack of transfer to the county, the county saying it is not their responsibility, equipment for repair, paths on the land, and other options for the bridge. Mr. Soriano made comments regarding repairs on the bridge, closing the bridge, walkway for the schools, and county responsibility. Ms. Cormier commented on grants that could be used for safe walking paths, the issue with students’ only way to school, timeframes, challenges of the bridge, talking points for not conveying, and the urgency of the developer wanting to do something by the end of the year. Ms. Cormier asked about the uplands they plan to keep, they didn’t do an amenity center, and conveying that land for other possible plans. Ms. Buchanan noted they could ask but she knew the answer would be they would not. Ms. Cormier requested she ask. She had concerns with what the developer didn’t do and what they didn’t get. Ms. Buchanan made comments on concerns of the area. It was discussed it could be used for storage. B. Engineer Mr. Hadden stated he had no further comments. C. Manager 1. Report on the Number of Registered Voters (934) Ms. Giles stated the number of registered voters in the District as of April 15, 2025 was 934 and added last year the number was of 775 and reflects an increase. She added this is required by Florida statutes 190. 2. Annual Form 1 Filing & Annual Ethics Training Ms. Giles reminded the Board of the filing of Form 1 that is due by July 1st. She noted two Board members have not filed. She remined them of the ethics training due by December 31st. She noted there were no Board members that had completed this requirement. She added there are new opportunities for training and will send the links to all members. D. Operations/Amenity Manager 1. Report 2. Monthly Quality Inspection Report Mr. Soriano made comments on his absence from last meeting. He provided updates on the roof work, email shared with members, vendors came in and gave plans, public adjuster was involved, he felt the public adjuster report laid acquisitions on the District. Another vendor reviewed the work and have started the work, other comments about the adjusters, and the insurance carrier. He will do the claim and stay with the roofing company they choose. Ms. Cormier asked if they had to use the adjuster, insurance company must pay the adjuster, and involvement. Ms. Soriano replied they do not have too. Other comments from the Board were that they did not search out that adjuster, there are roof issues and missing shingles, should be covered, not wanting a contract, or pay the adjuster which they agreed to during the meeting, roofing company aware of claim and not intending on paying the adjuster. Mr. Soriano stated he corrected the two lines in the contract and does not want to pay them. Mr. Gibbons asked if their insurance carries became aware of this because of the roofing company and the public adjuster, the clarification was made that they took it as we went right to the public adjuster and hired our own. Mr. Soriano stated he told them that was not how it worked out. He added they will use the roofing company they choose and will not pay anyone. Mr. Soriano added the claim for the flooring in the fitness center did take about 4 months. This claim should be about the same amount of time. Mr. Soriano noted the next item is for proposal for Blue Solutions repair of the pump. He explained the specifics and discussed changing to a traditional pool pump. His concerns were the placement of the pumps, the possibility of moving electrical wiring, and the need to create a pool house to hide and protect the motor. Mr. Soriano noted the landscaping is separate and provided updates on proposals from Tree Amigos and they could not meet the not to exceed amount of $9,000. He added other comments on quotes, number of plants, and noted that they agreed to come back with another quote. Discussion on the installation, maintaining, coverage, plants, and problems with two different vendors. Mr. Soriano noted staff direction was under the not to exceed amount and there is not a motion needed. The Board wanted to solve the issue. Mr. Soriano updated the Board on the fencing and proposals. He noted the numbers to change the two gates, the specifics of the gates, estimate to change out and use the same materials was $4,800 for each gate. He asked for an increase of $10,000. He added labor is not included from $30,000 or more. Total estimate would be $85,000 for enclosing the community. It was clarified that chain link will be placed to 8ft iron, using old materials was discussed, and new fencing link by the pool to match other parts of the gate, and the tennis court chain link section was discussed. Comments were voiced on the cost at around $90,000. Mr. Soriano needed approval for fencing if the Board desires, the estimate is good for now, but not sure on what it will be in the future, this would be out of capital reserves as the big project, and the reference to the budget and capital balance at $669,000. Other comments were made on other projects, budget status, proposals for playground, shade structure, furniture, other projects. Comment was made on the security issues with short fence. Mr. Gibbons asked for labor quotes at the next meeting. Ms. Cormier asked if they could approve the design and not the costs. Other quotes were needed. Ms. Cormier noted a concern from parents about the jungle gym and lack of fencing, water area and safety concerns, and using the old fencing to replace the shrubs. The Board asked for more fencing options and discussed number of gates, locations, and options for fencing areas and the need for quotes. Mr. Soriano discussed budget, expectations, emergency replacements, and looking at other projects. He mentioned areas for various projects, sodding, maintenance, benches, bike racks, parks, dog parks, creation of walkway or track, developer money deposits, and other issues. Comments were made on the issue with the dog park and playground being too close together. Concerns were noted on the 4-foot fencing being the minimum for the dog park. Ms. Cormier commented on parks, dog parks, playground structures, costs, state regulations, safety of the community, addressing the requirements, proper protocol, and sidewalk costs. Ms. Cormier asked for pictures of projects from other communities that cost $90,000. Ms. Giles asked what the Board wanted to prioritize and they could bring back renderings and proposals. The Board asked for the first priority for the park area, and Paddle Creek area be the second priority. Mr. Gibbons stated he would like each park to have a dedicated purpose, orientation for kids under 5, viewing area, benches, and other areas desired for dedicated purposes. Ms. Giles wanted guidance from Board for staff on bringing back proposals and they decided to have Mr. Gibbons work with staff on this. Mr. Soriano commented on the LGI lot, warranty, conveyance with issues, inspections, Mr. Soriano’s recommendations, how many structures are needed, Florida statutes, county recommendations, and qualification of this land. Ms. Cormier is working diligently with the county on the issues such as Florida statues for sex offenders, the county requirements are needed for this piece of land to be dedicated as a park, and LGI contributions and designs. Mr. Oca commented on the Easter event and numbers of participants, upcoming Halloween and Christmas events, the bridge issues, light issue, pool deck, break-ins, attendance at pool, gate monitor, and officers for weekends. TENTH ORDER OF BUSINESS Supervisors Requests Mr. Gibbons commented on zero entry splashpad re-coat quote from Blue Solutions, electrical company for pool lights, walk-through for landscape lighting, secondary Board on slide, complaints on gym equipment needs updates, insurance policy on equipment, liability issues, free weights, resistance table, swim clock needed on pool deck, bathrooms painted, bathroom lighting, and a replacement of the nylon lane rope replacement with a sturdier option. Ms. Cormier stated the spoke with Freddie and an email was sent, lifeguards concern with pond and two islands, request for installation of water debt markers on the pool islands. Discussion ensued on plans for the pool, rule for free form pools, building department issue, place sign for depths, requests for completion in the proper way, looking for explanations and answers, cannot change depth markers due to health department permit, process to update permit, opening door to other issues, request for markers, and concern for safety issues. ELEVENTH ORDER OF BUSINESS Audience Comments Ms. Giles asked for audience comments. Resident commented on responsibility of roads, recommend reaching out to county, mainline breaks, and it is not a CDD issue. Other discussion was held on the FDOT regulations, street signs in need or repair, reflective tape option, decorative light poles and signs need attention, cost issues, county responsibility, and a request for replacement of poles. TWELFTH ORDER OF BUSINESS Financial Reports A. Balance Sheet & Income Statement Ms. Giles presented the balance sheet and income statement for April 20 , 2025. B. Assessment Receipt Schedule Ms. Giles referenced the assessment receipt reflecting 98% collected. C. Check Register Ms. Giles presented the check register for $126, 197.18 for March and April. She stated there were no unusual variances. On MOTION by Ms. Susan Gibbons, seconded by Mr. Billy Gibbons, with all in favor, the Check Register, was approved 3-0 THIRTEENTH ORDER OF BUSINESS Next Schedule Meeting: August 12, 2025 @ 6:00 p.m. at the Rolling Hills Amenity Center Ms. Giles stated the next meeting is scheduled for August 12, 2025 at 6:00 p.m. at this location. FOURTEENTH ORDER OF BUSINESS Adjournment Ms. Giles asked for a motion to adjourn. On MOTION by Ms. Susan Gibbons, seconded by Ms. Cormier, with all in favor, the meeting adjourned. Secretary/Assistant Secretary Chairman/Vice Chairman Jason E. Merritt Tel 850.425.8535 Fax 850.681.0207 merrittj@gtlaw.com July 8, 2025 Via Electronic Mail Katie S. Buchanan, Esq. Kutak Rock LLP 107 W. College Avenue Tallahassee, Florida 32301 katie.buchanan@kutakrock.com Re: Non-developable Parcels within Rolling Hills Community Development District (“CDD”) owned by CBCP Rolling Hills Landco, LLC (“Landco”) Dear Katie: This letter is a follow-up to my correspondence to you of June 7, 2025 and your e-mail to me of June 11, 2025. As has been informally communicated to you by reply e-mail, this letter will confirm that Landco is agreeable to the CDD deferring its consideration of the issues presented in my June 11, 2025 letter until its regular meeting scheduled to be held August 12, 2025. Additionally, Landco owns four uplands tracts within the community which are identified on the attached Exhibit A as Upland Parcel 1, Upland Parcel 2, Upland Parcel 3, and Upland Parcel 4, respectively, that it presently plans to retain and which are being evaluated for their potential conservation value.1 As you are aware and has been required in connection with the grant of prior conservation easements within the community, the St. Johns River Water Management District (the “WMD”) requires that any construction easements running in favor of the CDD be released and that the CDD agree to subordinate its assessment liens to the WMD’s conservation easement before the WMD will approve property for mitigation purposes. Accordingly, Landco requests that the CDD consider and approve the enclosed easement releases and subordinations relating to these four tracts at its August 12th meeting as well. Securing these enclosed approvals from the CDD prior to the WMD’s evaluation of these tracts for mitigation purposes will facilitate the WMD’s review process and ultimately will expedite getting these uplands tracts placed under conservation easements assuming that Landco ultimately elects to do so. However, because the final decision to place some or all of these tracts under conservation easements are subject to factors and contingencies which are not fully known (including, but not limited to the WMD’s determination of each tract’s mitigation value 1 Note that Upland Parcel 5 consisting of the remaining 37.68 acres of developable property is not included in this discussion. and third party demand for upland mitigation), Landco cannot guaranty when or if any or all of these tracts will ultimately be preserved for conservation. Accordingly, Landco is agreeable that the CDD’s approval and delivery of the enclosed releases and subordination instruments be contingent upon Landco’s agreement to ultimately impose a conservation easement upon the subject tract. I am hopeful that the CDD’s supervisors will agree it will benefit the community to allow Landco to explore the possibility to preserve some, if not all, of these tracts in their natural state. On behalf of Landco, I appreciate your assistance with these issues. Should you have any questions, please do not hesitate to contact me, and I would be happy to discuss them with you. Very truly yours, Jason E. Merritt Shareholder JEM: Enclosures cc: L. William Huck (via e-mail) Ellen Jamason (via e-mail) Exhibit A Depiction of Landco Retained Lands A map of a land with different colored areas AI-generated content may be incorrect. Jason E. Merritt Tel 850.425.8535 Fax 850.681.0207 merrittj@gtlaw.com June 7, 2025 Via Electronic Mail Katie S. Buchanan, Esq. Kutak Rock LLP 107 W. College Avenue Tallahassee, Florida 32301 katie.buchanan@kutakrock.com Re: Non-developable Parcels within Rolling Hills Community Development District owned by CBCP Rolling Hills Landco, LLC Dear Katie: As you know, this firm represents CBCP Rolling Hills Landco, LLC (“Landco”), which owns various parcels of real property within the boundaries of the Rolling Hills Community Development District (the “District”). Landco is in the process of developing strategies for the winddown of its affairs and formulating plans for the disposition of its remaining property. Among the properties owned by Landco is approximately 211.60 acres of land which is depicted on Exhibit A attached hereto and incorporated by reference (the “Conservation Land”). Landco believes that the Conservation Land is appropriate for conveyance to the District for ownership and maintenance and is interested in determining what interest, if any, the District has in acquiring title to the Conservation Land. It would be appreciated if the District’s Board of Supervisors could give consideration to this matter at its upcoming meeting on June 10th. In the event that there is interest, then I believe makes sense for us to communicate further in order to work out details of the transfer with the objective of generating a memorandum of understanding or other agreement to address the conveyance of the Conservation Land to the District. While Landco does not contemplate any consideration be received for any of the parcels, Landco does expect to convey the Conservation Land in its present AS IS, WHERE IS condition and Landco does not intend to undertake any maintenance or repair to any improvements which may be located on the Conservation Land. The Conservation Land is encumbered with various easements in favor of the St. Johns River Water Management District, as briefly identified below: • Conservation Easement recorded in Official Records Book 4905, Page 2061 affecting 69.61 acres of the Conservation Land, which, among other provisions, requires compliance with the Management Plan attached as Exhibit C to the subject easement Katie S. Buchanan, Esq. June 7, 2025 Page 2 requiring prevention of spread of exotic and nuisance vegetation within conservation easement area. • Conservation Easement recorded in Official Records Book 4908, Page 355 affecting 22.83 acres of the Conservation Land, which, among other provisions, requires compliance with the Management Plan attached as Exhibit C to the subject easement requiring prevention of spread of exotic and nuisance vegetation within conservation easement area. • Conservation Easement recorded in Official Records Book 4848, Page 2057 affecting 58.40 acres of the Conservation Land, which, among other provisions, requires compliance with the Management Plan attached as Exhibit C to the subject easement requiring prevention of spread of exotic and nuisance vegetation within conservation easement areal • Conservation Easement recorded in Official Records Book 2818, Page 1540 affecting 58.65 acres of the Conservation Land. • Permanent Access Easement in favor of SJRWMD recorded in Official Records Book 4905, Page 2084. Additionally, as you are likely aware, there is a wooden bridge located on the northern portion of the Conservation Land which is generally adjacent to Sandridge Road. This bridge requires significant deferred maintenance. Landco will not agree to undertake any deferred maintenance with respect to this bridge in connection with any conveyance of the Conservation Land nor will Landco agree to be responsible in any way for the costs of such deferred maintenance. In addition to the Conservation Land, Landco owns an additional parcel depicted below located in the general vicinity of State Road 23 that it believes may be appropriate for conveyance to the District. To the extent that the District is interested in this parcel in addition to the Conservation Land, please advise. Parcel ID 27-05-25-010109-001-03 Parcel Details: Acreage 6.54 On behalf of Landco, the District’s consideration of this matter is appreciated. I look forward to hearing from you once the District’s Board of Supervisors has had the opportunity to review and discuss this matter. However, please note that due to the requirements of Landco to Greenberg Traurig, P.A. | Attorneys at Law www.gtlaw.com ACTIVE 711743292v3 move forward with its winddown planning, should Landco not hear from the District following its upcoming June 10 meeting regarding its interest in the above-referenced property, Landco will proceed on the assumption that the District has no interest in acquiring this property and will move forward with alternate disposition arrangements. Very truly yours, Jason E. Merritt Shareholder JEM: EXHIBIT A Depiction of the Conservation Land This instrument prepared by and should be returned to: Jason E. Merritt Greenberg Traurig, P.A. 101 East College Avenue Tallahassee, Florida 32301 PARTIAL RELEASE OF EASEMENT THIS PARTIAL RELEASE OF EASEMENT (“Release”) is executed on August 12, 2025 by ROLLING HILLS COMMUNITY DEVELOPMENT DISTRICT, a local unit of specialpurpose government established pursuant to Chapter 190, Florida Statutes, which has an address of 475 West Town Place, Suite 114, St. Augustine, Florida 32092 (the “CDD”) in favor of CBCP ROLLING HILLS LANDCO, LLC, a Delaware limited liability company. RECITALS: A. The CDD is the owner and holder of a construction easement as more particularly described in that certain Grant of Construction Easement dated October 20, 2006 and recorded December 12, 2006 in Official Records Book 2830, Page 114 of the Public Records of Clay County, Florida (the “Easement Agreement”). B. The Easement Agreement affects certain lands as more particularly described on on Exhibit A attached (the “Released Property”) which Released Property is non-developable land within the boundaries of the CDD. C. CDD desires to release the Released Property from the operation and effect of the Easement Agreement. NOW, THEREFORE, in consideration of the foregoing premises and other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the CDD hereby terminates the Easement Agreement with respect to the Released Property, and the Released Property is released from any and all covenants, conditions, restrictions, requirements, obligations, encumbrances, easements, licenses, reservations, claims, or other matters under the Easement Agreement so that the Easement Agreement and the provisions thereof no longer burden the Released Property in any manner whatsoever. Provided however, all provisions of the Easement Agreement shall remain in effect in accordance with the terms thereof other than as to the Released Property. [Remainder of Page Intentionally Left Blank] IN WITNESS WHEREOF, the CDD has executed this Release as of the date above. CDD: Witnesses: Print Name: Address: Print Name: Address: ROLLING HILLS COMMUNITY DEVELOPMENT DISTRICT, a local unit of special-purpose government established pursuant to Chapter 190, Florida Statutes By: _______________________________ Name: Title: STATE OF FLORIDA ) ) ss: COUNTY OF CLAY ) The foregoing instrument was acknowledged before me by means of [ ] physical presence or [ ] online notarization on _________________ 2025, by _____________________________________, as ________________________ of ROLLING HILLS COMMUNITY DEVELOPMENT DISTRICT, a local unit of special-purpose government established pursuant to Chapter 190, Florida Statutes, who [ ] is personally known to me or [ ] produced ________________________________ for identification [check appropriate box]. Notary: _____________________________ [NOTARIAL SEAL] Print Name: _________________________ Notary Public, State of Florida My commission expires: _______________ EXHIBIT A Description of Released Property This instrument prepared by and should be returned to: Jason E. Merritt Greenberg Traurig, P.A. 101 East College Avenue Tallahassee, Florida 32301 PARTIAL RELEASE OF EASEMENT THIS PARTIAL RELEASE OF EASEMENT (“Release”) is executed on August 12, 2025 by ROLLING HILLS COMMUNITY DEVELOPMENT DISTRICT, a local unit of specialpurpose government established pursuant to Chapter 190, Florida Statutes, which has an address of 475 West Town Place, Suite 114, St. Augustine, Florida 32092 (the “CDD”) in favor of CBCP ROLLING HILLS LANDCO, LLC, a Delaware limited liability company. RECITALS: A. The CDD is the owner and holder of a construction easement as more particularly described in that certain Grant of Construction Easement dated October 20, 2006 and recorded December 12, 2006 in Official Records Book 2830, Page 114 of the Public Records of Clay County, Florida (the “Easement Agreement”). B. The Easement Agreement affects certain lands as more particularly described on on Exhibit A attached (the “Released Property”) which Released Property is non-developable land within the boundaries of the CDD. C. CDD desires to release the Released Property from the operation and effect of the Easement Agreement. NOW, THEREFORE, in consideration of the foregoing premises and other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the CDD hereby terminates the Easement Agreement with respect to the Released Property, and the Released Property is released from any and all covenants, conditions, restrictions, requirements, obligations, encumbrances, easements, licenses, reservations, claims, or other matters under the Easement Agreement so that the Easement Agreement and the provisions thereof no longer burden the Released Property in any manner whatsoever. Provided however, all provisions of the Easement Agreement shall remain in effect in accordance with the terms thereof other than as to the Released Property. [Remainder of Page Intentionally Left Blank] IN WITNESS WHEREOF, the CDD has executed this Release as of the date above. CDD: Witnesses: Print Name: Address: Print Name: Address: ROLLING HILLS COMMUNITY DEVELOPMENT DISTRICT, a local unit of special-purpose government established pursuant to Chapter 190, Florida Statutes By: _______________________________ Name: Title: STATE OF FLORIDA ) ) ss: COUNTY OF CLAY ) The foregoing instrument was acknowledged before me by means of [ ] physical presence or [ ] online notarization on _________________ 2025, by _____________________________________, as ________________________ of ROLLING HILLS COMMUNITY DEVELOPMENT DISTRICT, a local unit of special-purpose government established pursuant to Chapter 190, Florida Statutes, who [ ] is personally known to me or [ ] produced ________________________________ for identification [check appropriate box]. Notary: _____________________________ [NOTARIAL SEAL] Print Name: _________________________ Notary Public, State of Florida My commission expires: _______________ EXHIBIT A Description of Released Property This instrument prepared by and should be returned to: Jason E. Merritt Greenberg Traurig, P.A. 101 East College Avenue Tallahassee, Florida 32301 PARTIAL RELEASE OF EASEMENT THIS PARTIAL RELEASE OF EASEMENT (“Release”) is executed on August 12, 2025 by ROLLING HILLS COMMUNITY DEVELOPMENT DISTRICT, a local unit of specialpurpose government established pursuant to Chapter 190, Florida Statutes, which has an address of 475 West Town Place, Suite 114, St. Augustine, Florida 32092 (the “CDD”) in favor of CBCP ROLLING HILLS LANDCO, LLC, a Delaware limited liability company. RECITALS: A. The CDD is the owner and holder of a construction easement as more particularly described in that certain Grant of Construction Easement dated October 20, 2006 and recorded December 12, 2006 in Official Records Book 2830, Page 114 of the Public Records of Clay County, Florida (the “Easement Agreement”). B. The Easement Agreement affects certain lands as more particularly described on on Exhibit A attached (the “Released Property”) which Released Property is non-developable land within the boundaries of the CDD. C. CDD desires to release the Released Property from the operation and effect of the Easement Agreement. NOW, THEREFORE, in consideration of the foregoing premises and other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the CDD hereby terminates the Easement Agreement with respect to the Released Property, and the Released Property is released from any and all covenants, conditions, restrictions, requirements, obligations, encumbrances, easements, licenses, reservations, claims, or other matters under the Easement Agreement so that the Easement Agreement and the provisions thereof no longer burden the Released Property in any manner whatsoever. Provided however, all provisions of the Easement Agreement shall remain in effect in accordance with the terms thereof other than as to the Released Property. [Remainder of Page Intentionally Left Blank] IN WITNESS WHEREOF, the CDD has executed this Release as of the date above. CDD: Witnesses: Print Name: Address: Print Name: Address: ROLLING HILLS COMMUNITY DEVELOPMENT DISTRICT, a local unit of special-purpose government established pursuant to Chapter 190, Florida Statutes By: _______________________________ Name: Title: STATE OF FLORIDA ) ) ss: COUNTY OF CLAY ) The foregoing instrument was acknowledged before me by means of [ ] physical presence or [ ] online notarization on _________________ 2025, by _____________________________________, as ________________________ of ROLLING HILLS COMMUNITY DEVELOPMENT DISTRICT, a local unit of special-purpose government established pursuant to Chapter 190, Florida Statutes, who [ ] is personally known to me or [ ] produced ________________________________ for identification [check appropriate box]. Notary: _____________________________ [NOTARIAL SEAL] Print Name: _________________________ Notary Public, State of Florida My commission expires: _______________ EXHIBIT A Description of Released Property This instrument prepared by and should be returned to: Jason E. Merritt Greenberg Traurig, P.A. 101 East College Avenue Tallahassee, Florida 32301 PARTIAL RELEASE OF EASEMENT THIS PARTIAL RELEASE OF EASEMENT (“Release”) is executed on August 12, 2025 by ROLLING HILLS COMMUNITY DEVELOPMENT DISTRICT, a local unit of specialpurpose government established pursuant to Chapter 190, Florida Statutes, which has an address of 475 West Town Place, Suite 114, St. Augustine, Florida 32092 (the “CDD”) in favor of CBCP ROLLING HILLS LANDCO, LLC, a Delaware limited liability company. RECITALS: A. The CDD is the owner and holder of a construction easement as more particularly described in that certain Grant of Construction Easement dated October 20, 2006 and recorded December 12, 2006 in Official Records Book 2830, Page 114 of the Public Records of Clay County, Florida (the “Easement Agreement”). B. The Easement Agreement affects certain lands as more particularly described on on Exhibit A attached (the “Released Property”) which Released Property is non-developable land within the boundaries of the CDD. C. CDD desires to release the Released Property from the operation and effect of the Easement Agreement. NOW, THEREFORE, in consideration of the foregoing premises and other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the CDD hereby terminates the Easement Agreement with respect to the Released Property, and the Released Property is released from any and all covenants, conditions, restrictions, requirements, obligations, encumbrances, easements, licenses, reservations, claims, or other matters under the Easement Agreement so that the Easement Agreement and the provisions thereof no longer burden the Released Property in any manner whatsoever. Provided however, all provisions of the Easement Agreement shall remain in effect in accordance with the terms thereof other than as to the Released Property. [Remainder of Page Intentionally Left Blank] IN WITNESS WHEREOF, the CDD has executed this Release as of the date above. CDD: Witnesses: Print Name: Address: Print Name: Address: ROLLING HILLS COMMUNITY DEVELOPMENT DISTRICT, a local unit of special-purpose government established pursuant to Chapter 190, Florida Statutes By: _______________________________ Name: Title: STATE OF FLORIDA ) ) ss: COUNTY OF CLAY ) The foregoing instrument was acknowledged before me by means of [ ] physical presence or [ ] online notarization on _________________ 2025, by _____________________________________, as ________________________ of ROLLING HILLS COMMUNITY DEVELOPMENT DISTRICT, a local unit of special-purpose government established pursuant to Chapter 190, Florida Statutes, who [ ] is personally known to me or [ ] produced ________________________________ for identification [check appropriate box]. Notary: _____________________________ [NOTARIAL SEAL] Print Name: _________________________ Notary Public, State of Florida My commission expires: _______________ EXHIBIT A Description of Released Property Prepared by: Greenberg Traurig, P.A. Jason E. Merritt 101 East College Avenue Tallahassee, Florida 32301 Return to: St. Johns River Water Management District 4049 Reid Street Palatka, Florida 32177 Joinder, Consent, and Subordination of Rolling Hills Community Development District For Ten Dollars ($10.00) and other good and valuable consideration, the adequacy and receipt of which are hereby acknowledged, Rolling Hills Community Development District, a local unit of special purpose government established pursuant to Chapter 190, Florida Statutes (the “District”), which has imposed certain special assessments upon certain lands located within the boundaries of the District (collectively, the “Special Assessments”) as evidenced by that certain Rolling Hills Community Development District’s Notice of 2006 Special Assessments recorded in Official Records Book 2830, Page 110 and by that certain Amended and Restated Notice of Special Assessments and Lien of Record of the Rolling Hills Community Development District recorded in Official Records Book 3815, Page 1420, all of the Public Records of Clay County, Florida, which Special Assessments encumber the real property described on Exhibit "B" attached hereto ("Conservation Easement Area"), hereby joins in, consents to and subordinates the lien of its Special Assessments as the same may pertain to the Conservation Easement Area encumbered under the foregoing Conservation Easement granted by CBCP Rolling Hills Landco LLC to the St. Johns River Water Management District as said Conservation Easement may be modified, amended, and assigned from time to time, with the intent that the Special Assessments shall be subject and subordinate to the Conservation Easement as to the Conservation Easement Area. IN WITNESS WHEREOF, this Joinder, Consent, and Subordination is made this day of , 2024. ROLLING HILLS COMMUNITY DEVELOPMENT DISTRICT, a local unit of special purpose government established pursuant to Chapter 190, Florida Statutes By: (Signature) Name: Title: (Print) WITNESSES: By: By: (Signature) (Signature) Name: Name: (Print) (Print) Address: Address: STATE OF FLORIDA COUNTY OF The foregoing instrument was acknowledged before me by means of [ ] physical presence or [ ] online notarization this _____ day of _____________, 2024, by (print name), as (title) of Rolling Hills Community Development District, a local unit of special purposes government established pursuant to Chapter 190, Florida Statutes, on its behalf. He/She is personally known to me or has produced a (state) driver’s license as identification. IN WITNESS WHEREOF, I hereunto set my hand and official seal. NOTARY PUBLIC, STATE OF FLORIDA (Signature) (Name) My Commission Expires: EXHIBIT B Description of Conservation Easement Area Prepared by: Greenberg Traurig, P.A. Jason E. Merritt 101 East College Avenue Tallahassee, Florida 32301 Return to: St. Johns River Water Management District 4049 Reid Street Palatka, Florida 32177 Joinder, Consent, and Subordination of Rolling Hills Community Development District For Ten Dollars ($10.00) and other good and valuable consideration, the adequacy and receipt of which are hereby acknowledged, Rolling Hills Community Development District, a local unit of special purpose government established pursuant to Chapter 190, Florida Statutes (the “District”), which has imposed certain special assessments upon certain lands located within the boundaries of the District (collectively, the “Special Assessments”) as evidenced by that certain Rolling Hills Community Development District’s Notice of 2006 Special Assessments recorded in Official Records Book 2830, Page 110 and by that certain Amended and Restated Notice of Special Assessments and Lien of Record of the Rolling Hills Community Development District recorded in Official Records Book 3815, Page 1420, all of the Public Records of Clay County, Florida, which Special Assessments encumber the real property described on Exhibit "B" attached hereto ("Conservation Easement Area"), hereby joins in, consents to and subordinates the lien of its Special Assessments as the same may pertain to the Conservation Easement Area encumbered under the foregoing Conservation Easement granted by CBCP Rolling Hills Landco LLC to the St. Johns River Water Management District as said Conservation Easement may be modified, amended, and assigned from time to time, with the intent that the Special Assessments shall be subject and subordinate to the Conservation Easement as to the Conservation Easement Area. IN WITNESS WHEREOF, this Joinder, Consent, and Subordination is made this day of , 2025. ROLLING HILLS COMMUNITY DEVELOPMENT DISTRICT, a local unit of special purpose government established pursuant to Chapter 190, Florida Statutes By: (Signature) Name: Title: (Print) WITNESSES: By: By: (Signature) (Signature) Name: Name: (Print) (Print) Address: Address: STATE OF FLORIDA COUNTY OF The foregoing instrument was acknowledged before me by means of [ ] physical presence or [ ] online notarization this _____ day of _____________, 2025, by (print name), as (title) of Rolling Hills Community Development District, a local unit of special purposes government established pursuant to Chapter 190, Florida Statutes, on its behalf. He/She is personally known to me or has produced a (state) driver’s license as identification. IN WITNESS WHEREOF, I hereunto set my hand and official seal. NOTARY PUBLIC, STATE OF FLORIDA (Signature) (Name) My Commission Expires: EXHIBIT B Description of Conservation Easement Area Prepared by: Greenberg Traurig, P.A. Jason E. Merritt 101 East College Avenue Tallahassee, Florida 32301 Return to: St. Johns River Water Management District 4049 Reid Street Palatka, Florida 32177 Joinder, Consent, and Subordination of Rolling Hills Community Development District For Ten Dollars ($10.00) and other good and valuable consideration, the adequacy and receipt of which are hereby acknowledged, Rolling Hills Community Development District, a local unit of special purpose government established pursuant to Chapter 190, Florida Statutes (the “District”), which has imposed certain special assessments upon certain lands located within the boundaries of the District (collectively, the “Special Assessments”) as evidenced by that certain Rolling Hills Community Development District’s Notice of 2006 Special Assessments recorded in Official Records Book 2830, Page 110 and by that certain Amended and Restated Notice of Special Assessments and Lien of Record of the Rolling Hills Community Development District recorded in Official Records Book 3815, Page 1420, all of the Public Records of Clay County, Florida, which Special Assessments encumber the real property described on Exhibit "B" attached hereto ("Conservation Easement Area"), hereby joins in, consents to and subordinates the lien of its Special Assessments as the same may pertain to the Conservation Easement Area encumbered under the foregoing Conservation Easement granted by CBCP Rolling Hills Landco LLC to the St. Johns River Water Management District as said Conservation Easement may be modified, amended, and assigned from time to time, with the intent that the Special Assessments shall be subject and subordinate to the Conservation Easement as to the Conservation Easement Area. IN WITNESS WHEREOF, this Joinder, Consent, and Subordination is made this day of , 2025. ROLLING HILLS COMMUNITY DEVELOPMENT DISTRICT, a local unit of special purpose government established pursuant to Chapter 190, Florida Statutes By: (Signature) Name: Title: (Print) WITNESSES: By: By: (Signature) (Signature) Name: Name: (Print) (Print) Address: Address: STATE OF FLORIDA COUNTY OF The foregoing instrument was acknowledged before me by means of [ ] physical presence or [ ] online notarization this _____ day of _____________, 2025, by (print name), as (title) of Rolling Hills Community Development District, a local unit of special purposes government established pursuant to Chapter 190, Florida Statutes, on its behalf. He/She is personally known to me or has produced a (state) driver’s license as identification. IN WITNESS WHEREOF, I hereunto set my hand and official seal. NOTARY PUBLIC, STATE OF FLORIDA (Signature) (Name) My Commission Expires: EXHIBIT B Description of Conservation Easement Area Prepared by: Greenberg Traurig, P.A. Jason E. Merritt 101 East College Avenue Tallahassee, Florida 32301 Return to: St. Johns River Water Management District 4049 Reid Street Palatka, Florida 32177 Joinder, Consent, and Subordination of Rolling Hills Community Development District For Ten Dollars ($10.00) and other good and valuable consideration, the adequacy and receipt of which are hereby acknowledged, Rolling Hills Community Development District, a local unit of special purpose government established pursuant to Chapter 190, Florida Statutes (the “District”), which has imposed certain special assessments upon certain lands located within the boundaries of the District (collectively, the “Special Assessments”) as evidenced by that certain Rolling Hills Community Development District’s Notice of 2006 Special Assessments recorded in Official Records Book 2830, Page 110 and by that certain Amended and Restated Notice of Special Assessments and Lien of Record of the Rolling Hills Community Development District recorded in Official Records Book 3815, Page 1420, all of the Public Records of Clay County, Florida, which Special Assessments encumber the real property described on Exhibit "B" attached hereto ("Conservation Easement Area"), hereby joins in, consents to and subordinates the lien of its Special Assessments as the same may pertain to the Conservation Easement Area encumbered under the foregoing Conservation Easement granted by CBCP Rolling Hills Landco LLC to the St. Johns River Water Management District as said Conservation Easement may be modified, amended, and assigned from time to time, with the intent that the Special Assessments shall be subject and subordinate to the Conservation Easement as to the Conservation Easement Area. IN WITNESS WHEREOF, this Joinder, Consent, and Subordination is made this day of , 2025. ROLLING HILLS COMMUNITY DEVELOPMENT DISTRICT, a local unit of special purpose government established pursuant to Chapter 190, Florida Statutes By: (Signature) Name: Title: (Print) WITNESSES: By: By: (Signature) (Signature) Name: Name: (Print) (Print) Address: Address: STATE OF FLORIDA COUNTY OF The foregoing instrument was acknowledged before me by means of [ ] physical presence or [ ] online notarization this _____ day of _____________, 2025, by (print name), as (title) of Rolling Hills Community Development District, a local unit of special purposes government established pursuant to Chapter 190, Florida Statutes, on its behalf. He/She is personally known to me or has produced a (state) driver’s license as identification. IN WITNESS WHEREOF, I hereunto set my hand and official seal. NOTARY PUBLIC, STATE OF FLORIDA (Signature) (Name) My Commission Expires: EXHIBIT B Description of Conservation Easement Area ROLLING HILLS COMMUNITY DEVELOPMENT DISTRICT CLAY COUNTY, FLORIDA FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 ROLLING HILLS COMMUNITY DEVELOPMENT DISTRICT CLAY COUNTY, FLORIDA TABLE OF CONTENTS Page INDEPENDENT AUDITOR’S REPORT 1-2 MANAGEMENT’S DISCUSSION AND ANALYSIS 3-6 BASIC FINANCIAL STATEMENTS Government-Wide Financial Statements: Statement of Net Position 7 Statement of Activities 8 Fund Financial Statements: Balance Sheet – Governmental Funds 9 Reconciliation of the Balance Sheet - Governmental Funds to the Statement of Net Position 10 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds 11 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 12 Notes to the Financial Statements 13-22 REQUIRED SUPPLEMENTARY INFORMATION Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – General Fund 23 Notes to Required Supplementary Information 24 OTHER INFORMATION Data Elements required by FL Statute 218.39 (3) (c) 25 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 26-27 INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE WITH THE REQUIREMENTS OF SECTION 218.415, FLORIDA STATUTES, REQUIRED BY RULE 10.556(10) OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA 28 MANAGEMENT LETTER REQUIRED BY CHAPTER 10.550 OF THE RULES OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA 29-30 INDEPENDENT AUDITOR’S REPORT To the Board of Supervisors Rolling Hills Community Development District Clay County, Florida Report on the Audit of the Financial Statements Opinions We have audited the accompanying financial statements of the governmental activities and each major fund of Rolling Hills Community Development District, Clay County, Florida (“District”) as of and for the fiscal year ended September 30, 2024, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and each major fund of the District as of September 30, 2024, and the respective changes in financial position thereof for the fiscal year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the District and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements The District’s management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America; and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the District’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the District’s internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the District’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and budgetary comparison information be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Included in the Financial Report Management is responsible for the other information included in the financial report. The other information comprises the information for compliance with FL Statute 218.39 (3) (c) but does not include the financial statements and our auditor's report thereon. Our opinions on the financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 23, 2025, on our consideration of the District’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the District’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District’s internal control over financial reporting and compliance. June 23, 2025 MANAGEMENT’S DISCUSSION AND ANALYSIS Our discussion and analysis of Rolling Hills Community Development District, Clay County, Florida (“District”) provides a narrative overview of the District’s financial activities for the fiscal year ended September 30, 2024. Please read it in conjunction with the District’s Independent Auditor’s Report, basic financial statements, accompanying notes and supplementary information to the basic financial statements. FINANCIAL HIGHLIGHTS • The assets plus deferred outflows of resources of the District exceeded its liabilities at the close of the most recent fiscal year resulting in a net position balance of $10,073,793. • The change in the District’s total net position in comparison with the prior fiscal year was $2,177,096, an increase. The key components of the District’s net position and change in net position are reflected in the table in the government-wide financial analysis section. • At September 30, 2024, the District’s governmental funds reported combined ending fund balances of $3,070,806, an increase of $795,995 in comparison with the prior fiscal year. A portion of fund balance is restricted for debt service and capital projects, non-spendable for prepaids and deposits, assigned for capital reserves and the remainder is unassigned fund balance which is available for spending at the District’s discretion. OVERVIEW OF FINANCIAL STATEMENTS This discussion and analysis are intended to serve as the introduction to the District’s basic financial statements. The District’s basic financial statements are comprised of three components: 1) governmentwide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-Wide Financial Statements The government-wide financial statements are designed to provide readers with a broad overview of the District’s finances, in a manner similar to a private-sector business. The statement of net position presents information on all the District’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources with the residual amount being reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the District is improving or deteriorating. The statement of activities presents information showing how the government’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods. The government-wide financial statements include all governmental activities that are principally supported by special assessments. The District does not have any business-type activities. The governmental activities of the District include the general government (management), recreation and maintenance functions. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The District, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The District has one fund category: governmental funds. OVERVIEW OF FINANCIAL STATEMENTS (Continued) Governmental Funds Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a District’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the District’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The District maintains three governmental funds for external reporting. Information is presented separately in the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances for the general fund, debt service fund and capital projects fund which are considered major funds. The District adopts an annual appropriated budget for its general and debt service funds. A budgetary comparison schedule has been provided for the general fund to demonstrate compliance with the budget. Notes to the Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. GOVERNMENT-WIDE FINANCIAL ANALYSIS As noted earlier, net position may serve over time as a useful indicator of an entity’s financial position. In the case of the District, assets plus deferred outflow of resources exceeded liabilities at the close of the most recent fiscal year. Key components of the District’s net position are reflected in the following table: GOVERNMENT-WIDE FINANCIAL ANALYSIS (Continued) The District’s net position reflects its investment in capital assets (e.g. land, land improvements, and infrastructure) less any related debt used to acquire those assets that is still outstanding. These assets are used to provide services to residents; consequently, these assets are not available for future spending. Although the District’s investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. The restricted portion of the District’s net position represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position may be used to meet the District’s other obligations. The District’s net position increased during the most recent fiscal year. The majority of the increase represents the extent to which ongoing program revenues exceeded the cost of operations and depreciation expense. Key elements of the change in net position are reflected in the following table: As noted above and in the statement of activities, the cost of all governmental activities during the fiscal year ended September 30, 2024 was $2,249,444. The majority of the costs of the District’s activities were paid by program revenues. Program revenues are comprised primarily of assessments. The District also receives revenue from Developer contributions and interest income. Revenues decreased over the prior year due to a decrease in Developer contributions. In total, expenses increased over the prior year primarily as the result of an increase in maintenance expenses. GENERAL BUDGETING HIGHLIGHTS An operating budget was adopted and maintained by the governing board for the District pursuant to the requirements of Florida Statutes. The budget is adopted using the same basis of accounting that is used in preparation of the fund financial statements. The legal level of budgetary control, the level at which expenditures may not exceed budget, is in the aggregate. Any budget amendments that increase the aggregate budgeted appropriations must be approved by the Board of Supervisors. Actual general fund expenditures did not exceed appropriations for the fiscal year ended September 30, 2024. CAPITAL ASSETS AND DEBT ADMINISTRATION Capital Assets At September 30, 2024, the District had $30,548,041 invested in capital assets for its governmental activities. In the government-wide financial statements depreciation of $6,947,966 has been taken, which resulted in a net book value of $23,600,075. More detailed information about the District’s capital assets is presented in the notes of the financial statements. Capital Debt At September 30, 2024, the District had $16,405,000 in Bonds outstanding. More detailed information about the District’s capital debt is presented in the notes of the financial statements. ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS The District anticipates the continuation of the infrastructure improvement project for the subsequent year. In addition, it is anticipated that the general operations of the District will continue to increase. CONTACTING THE DISTRICT’S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, land owners, customers, investors and creditors with a general overview of the District’s finances and to demonstrate the District’s accountability for the financial resources it manages and the stewardship of the facilities it maintains. If you have questions about this report or need additional financial information, contact the Rolling Hills Community Development District’s Finance Department at 5385 N. Nob Hill Road, Sunrise, Florida 33351. ROLLING HILLS COMMUNITY DEVELOPMENT DISTRICT CLAY COUNTY, FLORIDA STATEMENT OF NET POSITION SEPTEMBER 30, 2024 See notes to the financial statements ROLLING HILLS COMMUNITY DEVELOPMENT DISTRICT CLAY COUNTY, FLORIDA STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 See notes to the financial statements ROLLING HILLS COMMUNITY DEVELOPMENT DISTRICT CLAY COUNTY, FLORIDA BALANCE SHEET GOVERNMENTAL FUNDS SEPTEMBER 30, 2024 See notes to the financial statements ROLLING HILLS COMMUNITY DEVELOPMENT DISTRICT CLAY COUNTY, FLORIDA RECONCILIATION OF THE BALANCE SHEET - GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION SEPTEMBER 30, 2024 See notes to the financial statements ROLLING HILLS COMMUNITY DEVELOPMENT DISTRICT CLAY COUNTY, FLORIDA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 See notes to the financial statements ROLLING HILLS COMMUNITY DEVELOPMENT DISTRICT CLAY COUNTY, FLORIDA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 See notes to the financial statements ROLLING HILLS COMMUNITY DEVELOPMENT DISTRICT CLAY COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS NOTE 1 – NATURE OF ORGANIZATION AND REPORTING ENTITY Rolling Hills Community Development District ("District") was established by Ordinance 2006-9 of the Board of County Commissioners of Clay County, pursuant to the Uniform Community Development District Act of 1980, and otherwise known as Chapter 190, Florida Statutes. The Act provides among other things, the power to manage basic services for community development, power to borrow money and issue Bonds, and to levy and assess non-ad valorem assessments for the financing and delivery of capital infrastructure. The District was established for the purposes of financing and managing the acquisition, construction, maintenance and operation of a portion of the infrastructure necessary for community development within the District. The District is governed by the Board of Supervisors ("Board"), which is composed of five members. The Supervisors are elected by the qualified electors of the District. The Board of Supervisors of the District exercise all powers granted to the District pursuant to Chapter 190, Florida Statutes. As of September 30, 2024, certain Board members are affiliated with the Developer. The Board has the responsibility for: 1. Assessing and levying assessments. 2. Approving budgets. 3. Exercising control over facilities and properties. 4. Controlling the use of funds generated by the District. 5. Approving the hiring and firing of key personnel. 6. Financing improvements. The financial statements were prepared in accordance with Governmental Accounting Standards Board (“GASB”) Statements. Under the provisions of those standards, the financial reporting entity consists of the primary government, organizations for which the District is considered to be financially accountable and other organizations for which the nature and significance of their relationship with the District are such that, if excluded, the financial statements of the District would be considered incomplete or misleading. There are no entities considered to be component units of the District; therefore, the financial statements include only the operations of the District. NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Government-Wide and Fund Financial Statements The basic financial statements include both government-wide and fund financial statements. The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the non-fiduciary activities of the primary government. For the most part, the effect of interfund activity has been removed from these statements. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment. (Operating-type special assessments for maintenance and debt service are treated as charges for services.); and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Other items not included among program revenues are reported instead as general revenues. NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Measurement Focus, Basis of Accounting and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Assessments are recognized as revenues in the year for which they are levied. Grants and similar items are to be recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures are recorded only when payment is due. Assessments Assessments are non-ad valorem assessments on benefited property within the District. Operating and maintenance assessments are based upon the adopted budget and levied annually at a public hearing of the District. Debt service assessments are levied when Bonds are issued and assessed and collected on an annual basis. The District may collect assessments directly or utilize the “Uniform Method of Collection” under Florida Statutes. Direct collected assessments are due as set forth in the annual assessment resolution adopted by the Board of Supervisors. Assessments collected under the Uniform Method are noticed by the County Tax Collector on November 1 and due on or before March 31 of each year. Property owners may prepay a portion or all of the debt service assessments on their property subject to various provisions in the Bond documents. Assessments and interest associated with the current fiscal period are considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. The portion of assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. The District reports the following major governmental funds: General Fund The general fund is the general operating fund of the District. It is used to account for all financial resources except those required to be accounted for in another fund. Debt Service Fund The debt service fund is used to account for the accumulation of resources for the annual payment of principal and interest on long-term debt. Capital Projects Fund The capital projects fund is used to account for the costs of major infrastructure acquired by the District and also to accumulate capital reserves for future maintenance costs and capital projects. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. When both restricted and unrestricted resources are available for use, it is the government’s policy to use restricted resources first for qualifying expenditures, then unrestricted resources as they are needed. NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Assets, Liabilities and Net Position or Equity Restricted Assets These assets represent cash and investments set aside pursuant to Bond covenants or other contractual restrictions. Deposits and Investments The District’s cash and cash equivalents are considered to be cash on hand and demand deposits (interest and non-interest bearing). The District has elected to proceed under the Alternative Investment Guidelines as set forth in Section 218.415 (17) Florida Statutes. The District may invest any surplus public funds in the following: a) The Local Government Surplus Trust Funds, or any intergovernmental investment pool authorized pursuant to the Florida Inter-local Cooperation Act; b) Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency; c) Interest bearing time deposits or savings accounts in qualified public depositories; d) Direct obligations of the U.S. Treasury. The State Board of Administration’s (“SBA”) Local Government Surplus Funds Trust Fund (“Florida PRIME”) is a“2a-7 like” pool. A “2a-7 like” pool is an external investment pool that is not registered with the Securities and Exchange Commission (“SEC”) as an investment company, but nevertheless has a policy that it will, and does, operate in a manner consistent with the SEC’s Rule 2a-7 of the Investment Company Act of 1940, which comprises the rules governing money market funds. Thus, the pool operates essentially as a money market fund. The District has reported its investment in Florida PRIME at amortized cost for financial reporting purposes. Securities listed in paragraph c and d shall be invested to provide sufficient liquidity to pay obligations as they come due. In addition, surplus funds may be deposited into certificates of deposit which are insured and any unspent Bond proceeds are required to be held in investments as specified in the Bond Indenture. The District records all interest revenue related to investment activities in the respective funds. Investments are measured at amortized cost or reported at fair value as required by generally accepted accounting principles. Prepaid Items Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. Capital Assets Capital assets which include property, plant and equipment, and infrastructure assets (e.g., roads, sidewalks and similar items) are reported in the government activities columns in the government-wide financial statements. Capital assets are defined by the government as assets with an initial, individual cost of more than $5,000 (amount not rounded) and an estimated useful life in excess of two years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Assets, Liabilities and Net Position or Equity (Continued) Capital Assets (Continued) Property, plant and equipment of the District are depreciated using the straight-line method over the following estimated useful lives: Assets Years Buildings and Improvements 20 - 40 Infrastructure 35 Unearned Revenue Governmental funds report unearned revenue in connection with resources that have been received, but not yet earned. Long-Term Obligations In the government-wide financial statements long-term debt and other long-term obligations are reported as liabilities in the statement of net position. Bond premiums and discounts are deferred and amortized over the life of the Bonds. Bonds payable are reported net of applicable premiums or discounts. Bond issuance costs are expensed when incurred. In the fund financial statements, governmental fund types recognize premiums and discounts, as well as issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Deferred Outflows/Inflows of Resources In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. Fund Equity/Net Position In the fund financial statements, governmental funds report non spendable and restricted fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Assignments of fund balance represent tentative management plans that are subject to change. NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Assets, Liabilities and Net Position or Equity (Continued) Fund Equity/Net Position (Continued) The District can establish limitations on the use of fund balance as follows: Committed fund balance – Amounts that can be used only for the specific purposes determined by a formal action (resolution) of the Board of Supervisors. Commitments may be changed or lifted only by the Board of Supervisors taking the same formal action (resolution) that imposed the constraint originally. Resources accumulated pursuant to stabilization arrangements sometimes are reported in this category. Assigned fund balance – Includes spendable fund balance amounts established by the Board of Supervisors that are intended to be used for specific purposes that are neither considered restricted nor committed. The Board may also assign fund balance as it does when appropriating fund balance to cover differences in estimated revenue and appropriations in the subsequent year’s appropriated budget. Assignments are generally temporary and normally the same formal action need not be taken to remove the assignment. The District first uses committed fund balance, followed by assigned fund balance and then unassigned fund balance when expenditures are incurred for purposes for which amounts in any of the unrestricted fund balance classifications could be used. Net position is the difference between assets and deferred outflows of resources less liabilities and deferred inflows of resources. Net position in the government-wide financial statements are categorized as net investment in capital assets, restricted or unrestricted. Net investment in capital assets represents net position related to infrastructure and property, plant and equipment. Restricted net position represents the assets restricted by the District’s Bond covenants or other contractual restrictions. Unrestricted net position consists of the net position not meeting the definition of either of the other two components. Other Disclosures Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates. NOTE 3 – BUDGETARY INFORMATION The District is required to establish a budgetary system and an approved Annual Budget. Annual Budgets are adopted on a basis consistent with generally accepted accounting principles for the general fund. All annual appropriations lapse at fiscal year-end. The District follows these procedures in establishing the budgetary data reflected in the financial statements. a) Each year the District Manager submits to the District Board a proposed operating budget for the fiscal year commencing the upcoming October 1. b) Public hearings are conducted to obtain comments. c) Prior to October 1, the budget is legally adopted by the District Board. d) All budget changes must be approved by the District Board. e) The budgets are adopted on a basis consistent with generally accepted accounting principles. f) Unused appropriation for annually budgeted funds lapse at the end of the year. NOTE 4 – DEPOSITS AND INVESTMENTS Deposits The District’s cash balances were entirely covered by federal depository insurance or by a collateral pool pledged to the State Treasurer. Florida Statutes Chapter 280, "Florida Security for Public Deposits Act", requires all qualified depositories to deposit with the Treasurer or another banking institution eligible collateral equal to various percentages of the average daily balance for each month of all public deposits in excess of any applicable deposit insurance held. The percentage of eligible collateral (generally, U.S. Governmental and agency securities, state or local government debt, or corporate bonds) to public deposits is dependent upon the depository's financial history and its compliance with Chapter 280. In the event of a failure of a qualified public depository, the remaining public depositories would be responsible for covering any resulting losses. Investments The District’s investments were held as follows at September 30, 2024: Credit risk – For investments, credit risk is generally the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Investment ratings by investment type are included in the preceding summary of investments. Concentration risk – The District places no limit on the amount the District may invest in any one issuer. Interest rate risk – The District does not have a formal policy that limits investment maturities as a means of managing exposure to fair value losses arising from increasing interest rates. However, the Bond Indenture limits the type of investments held using unspent proceeds. Fair Value Measurement – When applicable, the District measures and records its investments using fair value measurement guidelines established in accordance with GASB Statements. The framework for measuring fair value provides a fair value hierarchy that prioritizes the inputs to valuation techniques. These guidelines recognize a three-tiered fair value hierarchy, in order of highest priority, as follows: • Level 1: Investments whose values are based on unadjusted quoted prices for identical investments in active markets that the District has the ability to access; • Level 2: Investments whose inputs - other than quoted market prices - are observable either directly or indirectly; and, • Level 3: Investments whose inputs are unobservable. The fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the entire fair value measurement. Valuation techniques used should maximize the use of observable inputs and minimize the use of unobservable inputs. Money market investments that have a maturity at the time of purchase of one year or less and are held by governments other than external investment pools should be measured at amortized cost. For external investment pools that qualify to be measured at amortized cost, the pool’s participants should also measure their investments in that external investment pool at amortized cost for financial reporting purposes. Accordingly, the District’s investments have been reported at amortized cost above. NOTE 4 – DEPOSITS AND INVESTMENTS (Continued) Investments (Continued) External Investment Pool – With regard to redemption gates, Chapter 218.409(8)(a), Florida Statutes, states that “The principal, and any part thereof, of each account constituting the trust fund is subject to payment at any time from the moneys in the trust fund. However, the Executive Director may, in good faith, on the occurrence of an event that has a material impact on liquidity or operations of the trust fund, for 48 hours limit contributions to or withdrawals from the trust fund to ensure that the Board can invest moneys entrusted to it in exercising its fiduciary responsibility. Such action must be immediately disclosed to all participants, the Trustees, the Joint Legislative Auditing Committee, the Investment Advisory Council, and the Participant Local Government Advisory Council. The Trustees shall convene an emergency meeting as soon as practicable from the time the Executive Director has instituted such measures and review the necessity of those measures. If the Trustees are unable to convene an emergency meeting before the expiration of the 48- hour moratorium on contributions and withdrawals, the moratorium may be extended by the Executive Director until the Trustees are able to meet to review the necessity for the moratorium. If the Trustees agree with such measures, the Trustees shall vote to continue the measures for up to an additional 15 days. The Trustees must convene and vote to continue any such measures before the expiration of the time limit set, but in no case may the time limit set by the Trustees exceed 15 days.” With regard to liquidity fees, Florida Statute 218.409(4) provides authority for the SBA to impose penalties for early withdrawal, subject to disclosure in the enrollment materials of the amount and purpose of such fees. At present, no such disclosure has been made. As of September 30, 2024, there were no redemption fees or maximum transaction amounts, or any other requirements that serve to limit a participant’s daily access to 100% of their account value. NOTE 5 – CAPITAL ASSETS Capital asset activity for the fiscal year ended September 30, 2024 was as follows: NOTE 5 – CAPITAL ASSETS (Continued) The infrastructure is being built in phases. The current project includes Phase 3A and 3BC and is projected to cost approximately $14,500,000. The infrastructure will include various infrastructure improvements. A portion of the project costs was expected to be financed with the proceeds from the issuance of Bonds with the remainder to be funded by the Developer and conveyed to the District. Upon completion, certain improvements are to be conveyed to others for ownership and maintenance responsibilities. Depreciation was charged to the following functions: NOTE 6 – LONG TERM LIABILITIES Series 2015 In December 2015 the District issued $8,280,000 of Capital Improvement Revenue Refunding Bonds, Series 2015 consisting of multiple term bonds with due dates ranging from May 1, 2016 to May 1, 2037 and fixed interest rates ranging from 3.3% to 6.70%. The Bonds were issued to refund a portion of the District’s outstanding Capital Improvements Revenue Bonds, Series 2006 (the “Refunded Bonds”), acquire and construct certain assessable improvements (the “Project”), and pay certain costs associated with the issuance of the Bonds. Interest is to be paid semiannually on each May 1 and November 1. Principal on the Bonds is to be paid serially commencing May 1, 2016 through May 1, 2037. The District refunded $1,890,000 of the Series 2015A-3 Bonds during the current fiscal year. The refunding was a current refunding and left $380,000 owed on the Series 2015A-3 Bonds. The Series 2015 Bonds are subject to optional redemption prior to maturity as outlined in the Bond Indenture. The Series 2015 Bonds are also subject to extraordinary mandatory redemption prior to their selected maturity in the manner outlined in the Bond Indenture. The Bond Indenture established a debt service reserve requirement as well as other restrictions and requirements relating principally to the use of proceeds to pay for the infrastructure improvements and the procedures to be followed by the District on assessments to property owners. The District agrees to levy special assessments in annual amounts adequate to provide payment of debt service and to meet the reserve requirements. The District was in compliance with the requirements at September 30, 2024. Series 2020 In October 2020 the District issued $2,625,000 of Capital Improvement Revenue Bonds, Series 2020A-1 and $1,840,000 of Capital Improvement Revenue and Refunding Bonds, Series 2020A-2, consisting of multiple term bonds with due dates ranging from May 1, 2025 to May 1, 2050 and fixed interest rates ranging from 3.375% to 4.875%. The Bonds were issued to redeem a portion of the District’s Capital Improvement Revenue Refunding Bonds, Series 2015A-3 and to finance a portion of the cost of acquiring, constructing, and equipping the Series 2020 project. Interest is to be paid semiannually on each May 1 and November 1. Principal on the Series 2020 Bonds is paid serially commencing May 1, 2021 through May 1, 2050. The Series 2020 Bonds are subject to optional redemption prior to maturity as outlined in the Bond Indenture. The Series 2020 Bonds are also subject to extraordinary mandatory redemption prior to their selected maturity in the manner outlined in the Bond Indenture. This occurred during the current fiscal year as the District collected assessments from lot closings and prepaid $810,000 of the Series 2020A-2 Bonds. See Note 10 - Subsequent Events for additional call amounts subsequent to the fiscal year end. The Bond Indenture established a debt service reserve requirement as well as other restrictions and requirements relating principally to the use of proceeds to pay for the infrastructure improvements and the procedures to be followed by the District on assessments to property owners. The District agrees to levy special assessments in annual amounts adequate to provide payment of debt service and to meet the reserve requirements. The District was in compliance with the requirements at September 30, 2024. NOTE 6 – LONG TERM LIABILITIES (Continued) Series 2022 In February 2022 the District issued $6,130,000 of Capital Improvement Revenue Bonds, Series 2022A-1 and $4,740,000 of Capital Improvement Revenue and Refunding Bonds, Series 2022A-2, consisting of multiple term bonds with due dates ranging from May 1, 2027 to May 1, 2052 and fixed interest rates ranging from 3.125% to 4.0%. The Bonds were issued to redeem a portion of the District’s Capital Improvement Revenue Refunding Bonds, Series 2015A-3 and to finance a portion of the cost of acquiring, constructing, and equipping the Series 2022 project. Interest is to be paid semiannually on each May 1 and November 1. Principal on the Series 2022 Bonds is paid serially commencing May 1, 2023 through May 1, 2052. The Series 2022 Bonds are subject to optional redemption prior to maturity as outlined in the Bond Indenture. The Series 2022 Bonds are also subject to extraordinary mandatory redemption prior to their selected maturity in the manner outlined in the Bond Indenture. This occurred during the current fiscal year as the District collected assessments from lot closings and prepaid $430,000 of the Series 2022A-2 Bonds. See Note 10 - Subsequent Events for additional call amounts subsequent to the fiscal year end. The Bond Indenture established a debt service reserve requirement as well as other restrictions and requirements relating principally to the use of proceeds to pay for the infrastructure improvements and the procedures to be followed by the District on assessments to property owners. The District agrees to levy special assessments in annual amounts adequate to provide payment of debt service and to meet the reserve requirements. Upon satisfaction of certain conditions, a portion of the original reserve requirements will be released to the Developer for construction costs paid on behalf of the District; this did not occur during the current fiscal year. The District was in compliance with the requirements at September 30, 2024. Long-term Debt Activity Changes in long-term liability activity for the fiscal year ended September 30, 2024 were as follows: At September 30, 2024, the scheduled debt service requirements on the long-term debt were as follows: NOTE 7 – DEVELOPER TRANSACTIONS AND CONCENTRATION The Developer owns certain lots within the District therefore assessments in the general and debt service funds include amounts collected on Developer owned lots. In addition, the Developer contributed $348,624 to the District in order to fund the capital improvement project during the current fiscal year. The District’s activity is dependent upon the continued involvement of the Developer and major Landowners, the loss of which could have a material adverse effect on the District’s operations. NOTE 8 – MANAGEMENT COMPANY The District has contracted with a management company to perform management advisory services, which include financial and accounting services. Certain employees of the management company also serve as officers of the District. Under the agreement, the District compensates the management company for management, accounting, financial reporting, computer and other administrative costs. NOTE 9 – RISK MANAGEMENT The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters. The District has obtained commercial insurance from independent third parties to mitigate the costs of these risks; coverage may not extend to all situations. NOTE 10 – SUBSEQUENT EVENTS Subsequent to fiscal year end, the District prepaid a total of $580,000 of the Series 2020A-2 Bonds and $340,000 of the Series 2022A-2 Bonds. The prepayments were considered extraordinary mandatory redemptions as outlined in the Bond Indenture. ROLLING HILLS COMMUNITY DEVELOPMENT DISTRICT CLAY COUNTY, FLORIDA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – GENERAL FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 See notes to required supplementary information ROLLING HILLS COMMUNITY DEVELOPMENT DISTRICT CLAY COUNTY, FLORIDA NOTES TO REQUIRED SUPPLEMENTARY INFORMATION The District is required to establish a budgetary system and an approved Annual Budget for the general fund. The District’s budgeting process is based on estimates of cash receipts and cash expenditures which are approved by the Board. The budget approximates a basis consistent with accounting principles generally accepted in the United States of America (generally accepted accounting principles). The legal level of budgetary control, the level at which expenditures may not exceed budget, is in the aggregate. Any budget amendments that increase the aggregate budgeted appropriations must be approved by the Board of Supervisors. Actual general fund expenditures did not exceed appropriations for the fiscal year ended September 30, 2024. ROLLING HILLS COMMUNITY DEVELOPMENT DISTRICT CLAY COUNTY, FLORIDA OTHER INFORMATION – DATA ELEMENTS REQUIRED BY FL STATUTE 218.39(3)(C) FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 UNAUDITED INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Board of Supervisors Rolling Hills Community Development District Clay County, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities and each major fund of Rolling Hills Community Development District, Clay County, Florida (“District”) as of and for the fiscal year ended September 30, 2024, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements, and have issued our opinion thereon dated June 23, 2025. Report on Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the District’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the District’s internal control. Accordingly, we do not express an opinion on the effectiveness of the District’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified. Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the District’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. June 23, 2025 INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE WITH THE REQUIREMENTS OF SECTION 218.415, FLORIDA STATUTES, REQUIRED BY RULE 10.556(10) OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA To the Board of Supervisors Rolling Hills Community Development District Clay County, Florida We have examined Rolling Hills Community Development District, Clay County, Florida’s (“District”) compliance with the requirements of Section 218.415, Florida Statutes, in accordance with Rule 10.556(10) of the Auditor General of the State of Florida during the fiscal year ended September 30, 2024. Management is responsible for District’s compliance with those requirements. Our responsibility is to express an opinion on District’s compliance based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the District complied, in all material respects, with the specified requirements referenced in Section 218.415, Florida Statutes. An examination involves performing procedures to obtain evidence about whether the District complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. Our examination does not provide a legal determination on the District’s compliance with specified requirements. We are required to be independent and to meet our other ethical responsibilities in accordance with relevant ethical requirements relating to the examination engagement. In our opinion, the District complied, in all material respects, with the aforementioned requirements for the fiscal year ended September 30, 2024. This report is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, management, and the Board of Supervisors of Rolling Hills Community Development District, Clay County, Florida and is not intended to be and should not be used by anyone other than these specified parties. June 23, 2025 MANAGEMENT LETTER PURSUANT TO THE RULES OF THE AUDITOR GENERAL FOR THE STATE OF FLORIDA To the Board of Supervisors Rolling Hills Community Development District Clay County, Florida Report on the Financial Statements We have audited the accompanying basic financial statements of Rolling Hills Community Development District, Clay County, Florida ("District") as of and for the fiscal year ended September 30, 2024, and have issued our report thereon dated June 23, 2025. 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 Auditor’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 June 23, 2025, should be considered in conjunction with this management letter. Purpose of this Letter The purpose of this letter is to comment on those matters required by Chapter 10.550 of the Rules of the Auditor General for the State of Florida. Accordingly, in connection with our audit of the financial statements of the District, as described in the first paragraph, we report the following: I. Current year findings and recommendations. II. Status of prior year findings and recommendations. III. Compliance with the Provisions of the Auditor General of the State of Florida. Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, as applicable, management, and the Board of Supervisors of Rolling Hills Community Development District, Clay County, Florida and is not intended to be and should not be used by anyone other than these specified parties. We wish to thank Rolling Hills Community Development District, Clay County, Florida and the personnel associated with it, for the opportunity to be of service to them in this endeavor as well as future engagements, and the courtesies extended to us. June 23, 2025 REPORT TO MANAGEMENT I. CURRENT YEAR FINDINGS AND RECOMMENDATIONS None II. PRIOR YEAR FINDINGS AND RECOMMENDATIONS None III. COMPLIANCE WITH THE PROVISIONS OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA Unless otherwise required to be reported in the auditor’s report on compliance and internal controls, the management letter shall include, but not be limited to the following: 1. A statement as to whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. There were no significant findings and recommendations made in the preceding annual financial audit report for the fiscal year ended September 30, 2023. 2. Any recommendations to improve the local governmental entity's financial management. There were no such matters discovered by, or that came to the attention of, the auditor, to be reported for the fiscal year ended September 30, 2024. 3. Noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. There were no such matters discovered by, or that came to the attention of, the auditor, to be reported, for the fiscal year ended September 30, 2024. 4. The name or official title and legal authority of the District are disclosed in the notes to the financial statements. 5. The District has not met one or more of the financial emergency conditions described in Section 218.503(1), Florida Statutes. 6. We applied financial condition assessment procedures and no deteriorating financial conditions were noted as of September 30, 2024. It is management’s responsibility to monitor financial condition, and our financial condition assessment was based in part on representations made by management and the review of financial information provided by same. 7. Management has provided the specific information required by Section 218.39(3)(c) in the Other Information section of the financial statements on page 25. 1. Community Communication and Engagement Goal 1.1: Public Meetings Compliance Objective: Hold at least three regular Board of Supervisor meetings per year to conduct CDD related business and discuss community needs. Measurement: Number of public board meetings held annually as evidenced by meeting minutes and legal advertisements. Standard: A minimum of three board meetings were held during the Fiscal Year. Achieved: Yes . No . Goal 1.2: Notice of Meetings Compliance Objective: Provide public notice of meetings in accordance with Florida Statutes, using at least two communication methods. Measurement: Timeliness and method of meeting notices as evidenced by posting to CDD website, publishing in local newspaper and via electronic communication. Standard: 100% of meetings were advertised per Florida statute on at least two mediums (i.e., newspaper, CDD website, electronic communications). Achieved: Yes . No . Goal 1.3: Access to Records Compliance Objective: Ensure that meeting minutes and other public records are readily available and easily accessible to the public by completing monthly CDD website checks. Measurement: Monthly website reviews will be completed to ensure meeting minutes and other public records are up to date as evidenced by District Management’s records. Standard: 100% of monthly website checks were completed by District Management. Achieved: Yes . No . 2. Infrastructure and Facilities Maintenance Goal 2.1: Field Management and/or District Management Site Inspections Objective: Field Manager and/or District Manager will conduct inspections per District Management services agreement to ensure safety and proper functioning of the District’s infrastructure. Measurement: Field Manager and/or District Manager visits were successfully completed per management agreement as evidenced by Field Manager and/or District Manager’s reports, notes or other record keeping method. Standard: 100% of site visits were successfully completed as described within district management services agreement Achieved: Yes . No . 3. Financial Transparency and Accountability Goal 3.1: Annual Budget Preparation Objective: Prepare and approve the annual proposed budget by June 15 and final budget was adopted by September 30 each year. Measurement: Proposed budget was approved by the Board before June 15 and final budget was adopted by September 30 as evidenced by meeting minutes and budget documents listed on CDD website and/or within district records. Standard: 100% of budget approval & adoption were completed by the statutory deadlines and posted to the CDD website. Achieved: Yes . No . Goal 3.2: Financial Reports Objective: Publish to the CDD website the most recent versions of the following documents: Annual Audit, current fiscal year budget with any amendments, and most recent financials within the latest agenda package. Measurement: Annual Audit, previous years’ budgets, and financials are accessible to the public as evidenced by corresponding documents on the CDD’s website. Standard: CDD website contains 100% of the following information: Most recent Annual Audit, most recent adopted/amended fiscal year budget, and most recent agenda package with updated financials. Achieved: Yes . No . Goal 3.3: Annual Financial Audit Objective: Conduct an annual independent financial audit per statutory requirements and publish the results to the CDD website for public inspection, and transmit to the State of Florida. Measurement: Timeliness of audit completion and publication as evidenced by meeting minutes showing board accepted and annual audit is available on the CDD’s website and transmitted to the State of Florida. Standard: Audit was completed by an independent auditing firm per statutory requirements and results were posted to the CDD website and transmitted to the State of Florida. Achieved: Yes . No . Date:____________ Date: ___________ Rolling Hills Community Development District 3212 Bradley Creek Parkway · Green Cove Springs, FL 32043 Memorandum Date: August 12, 2025 To: Rich Gray, Operations Director From: Freddie Oca, RMS Operations Jay Soriano, GMS Operations Re: Rolling Hills CDD - Monthly Operations Report: May/June General . www.RollingHillsCDD.com website is up and running; documents such as annual audits, meeting minutes and annual budgets will be updated as they become available. . Pandan Leaves food truck was here on May 6th . Maine Lobster food truck was here on May 13th . Gallean Pizza food truck was here on May 20th . Emmangeo’s food truck was here on May 27th . Ryan’s Lobster food truck was here on June 3rd . Flip n Go Food truck was here on June 10th . El Agave Food truck was here on June 17th . Red Hawk Asian food truck was here on June 24th . Fork Around and Find Out Food Truck was here on June 31st . We had over 65 residents participate in the Summer Bash event . An off-duty Police Officer is continuing to patrol Rolling Hills twice a week. Operations: • Walk through inspection with Ruppert Landscape • Set-up vendors for the upcoming events • Coordinate with landscaping • Coordinate with Mechanical Engineering for the AC unit • Coordinate with Blue Solutions for the babbling brook • Coordinate with GloBug for holiday lighting • Coordinate with Liberty Electric for the lighting around the tennis courts • Coordinate with Big Branch for the trees around the tennis courts • Coordinate to have in service training for lifeguards Maintenance: . Southeast Fitness performed the preventative maintenance and made repairs of the fitness equipment. . Lake Doctors conducted their monthly maintenance on the ponds. . Integrated Access Services has adjusted the card access system . Ceiling fans were installed on the upper deck of the social room . The gate for the pool has been secured . Measured the tennis courts for wind screens . Backed up main lines have been repaired . The shower heads have been repaired . Signs have been installed on the pool deck . The bridge has been pressure washed. . The doggie station in the Adams subdivision has been repaired . The walkway in front of the amenity center has been repaired . Signage along the retention bank has been repaired . The volleyball net has been repaired . Loose boards on the bridge have been secured . The monthly inspection on the bridge has been completed. . The park locations are being policed weekly for debris. . All District Lakes are being inspected and cleaned bi-weekly. . Lake water out falls are inspected and cleaned on a monthly basis to ensure proper water flow. . Irrigation inspections and needed repairs are being completed on a monthly basis. . An inspection of the Amenity Center lighting was performed. . Trash can liners are being changed on a weekly basis. Resident Requests/Comments: Should you have any questions or comments regarding the above information, please feel free to contact Freddie at (904) 338-5723 or Jerry at (904) 807-2763