MINUTES OF MEETING INDIGO EAST COMMUNITY DEVELOPMENT DISTRICT The regular meeting of the Board of Supervisors of the Indigo East Community Development District was held on Tuesday, June 17, 2025 at 9:00 a.m. at Circle Square Commons, 8395 SW 80th Street, Ocala, Florida. Present and constituting a quorum: John Gysen Chairman Terrance Solan Vice Chairman Bob Hutson Assistant Secretary Harold Brouillard Assistant Secretary Also present were: George Flint District Manager Gerald Colen District Counsel Rachel Wagoner District Counsel Andy Jorgenson OTOW Bryan Schmalz BLCDD Robert Stepp Colen Built FIRST ORDER OF BUSINESS Roll Call Mr. Flint called the meeting to order. Four members of the Board were present, constituting a quorum. SECOND ORDER OF BUSINESS Public Comment Period Mr. Flint: Are there any public comments at this time? I am not hearing any, so we will move on. THIRD ORDER OF BUSINESS Consideration of Resolution 2025-04 Amending Resolution 2025-03 to Approve a Revised Proposed Budget Mr. Flint: When you approved the proposed budget at your last meeting, I mentioned that there were some changes that needed to be made that would likely result in an assessment increase, however the statutory requirement states the budget must be approved by June 15, 2025. You approved the version that you had at the last meeting and decided to continue the meeting to further the discussion. We have continued to work on the proposed budget and revised the proposed budget that is included in the agenda. I also have provided you with a hard copy. It is the same as what you have in the agenda. You can see, the maintenance assessments have gone up about $33,000, and we will talk about why we are suggesting that. The administrative expenses have not changed significantly since you last have seen them. The District Management related line items all have a 3% increase. You are not approving that today. You can see under dissemination assessment and the management assessment roll fee have a 3% increase. The insurance line item will go up, based on what the insurance providers told us. We will know the actual number before the hearing in August. In total, you can see that the Administrative expenses are about $2,500 higher than the current adopted budget. On page 2, for the Operation & Maintenance expenses, the main cause in the increase of assessments is streetlighting and SECO is the provider. You have a streetlight lease where the CDD leases the poles and then you pay an electric expense monthly. There is a capital expense on it and an electric component of that streetlight lease. SECO owns the lights, and we have a lease agreement with them. As you can see, they implemented a significant rate increase that started on October 1, 2024, and said they provided notice. The address they provided notice to is an address that was not deliverable. Regardless, we would not have been able to change the increase. It is a utility wide increase that was approved by the Public Service Commission. The reality of it is the electric expense line item has gone up about $26,000. The other line items are almost the same. We have bumped the contingency up to $10,000 and increased the transfer-out back up to $25,000. The result is a proposed increase in the annual O&M assessments for the homes in Indigo East from $587 a year to $644 a year. This is a $57 a year increase. Anytime the Board is proposing an assessment increase, there is a mailed noticed that is required to be sent out to all of the homeowners in the District, advising them of the date, place, and time of the public hearing. We have the narrative included behind the budget. On the bottom of page 5 is where the streetlighting is. We have a contingency in there of $2,100. On the bottom of page 6 is the Landscape Maintenance breakdown and the contract with Yellowstone. It is $129,600 a year and was a three-year engagement. This is the first of the three years and there would be two more years of the same price. I know we have some discussion that needs to happen when it comes to landscape maintenance, but I will continue with the budget first. If you go to the last page, it is the Capital Reserve Fund. We came into the current year with $444,000 in that line item, when we anticipated $436,000. We had no expenses budgeted this year. We had repaving in the prior Fiscal Year and are anticipating sign replacement. That is what the $1,600 is in the third column. For next year, we are anticipating that we will bring forward $486,00 and contribute an extra $25,000 from the transfer-in. We have some money in there for road resurfacing, which is the next section that we anticipate on getting done. I have added a line item titled “landscape refurbishment.” It currently has nothing in that line item, but we are working with a vendor to come up with costs on landscape refurbishment and we believe that is an acceptable expense because it is basically a replacement of the landscape and not a maintenance issue. I have cashflowed out the next 20 years and asked for updated estimates on road repaving and striping to make sure that we can accommodate the landscape refurbishment in here and not compromise anything for the road repaving program. We should be able to accommodate that under the current budget. We may phase the refurbishment instead of doing it all at once. After this, you will have the August budget hearing and final proposals, and you can take action on that at that time. Any questions on the revised proposed budget? Mr. Gysen: I have none. Mr. Flint: You are not approving the final budget today; you are just approving this for purposes of the public hearing. This will require a mailed notice at least 30 days before the hearing. The hearing is August 19, 2025 at 9:00 a.m. in this location. The only thing that will change would be the Exhibit A to the resolution, which is the proposed budget. Any questions on the resolution or proposed budget? Mr. Gysen: No questions. Mr. Flint: Is there a motion to approve Resolution 2025-04? On MOTION by Mr. Gysen, seconded by Mr. Hutson, with all in favor, Resolution 2025-04 Amending Resolution 2025-03 to Approve A Revised Proposed Budget, was approved. FOURTH ORDER OF BUSINESS Other Business Mr. Flint: Any further discussion from the Board on anything? We are going to try to work with Yellowstone to try and improve their performance. The have committed some additional resources. Last week they had 12 additional crew members here. They are showing some improvement, but there are still concerns on if they will be able to perform in the long run. Between now and the August meeting, we will try and manage that contract and evaluate what alternatives there may be. Mr. Hutson? Mr. Hutson: As far as what we have with the upcoming storms in the summer, when we get the weekend storms and there are limbs all over the road, previously other companies would come out and blow stuff of the roads, but now we have to wait until Tuesday, sometimes Wednesday, for them to come clean up. I actually ran over a big branch because I could not get around that big island. Can we at least have someone paying attention to the storms? Mr. Jorgenson: Storm debris is considered “an act of God,” and is not actually in the contract. You also need to remember, they manage other communities. If you want them to come out on a Monday when they are not scheduled, that means they are not doing work where they are supposed to be doing work. With the previous contractor, we had it nice because they were here six days a week. Yellowstone just picked up another contract, and that means they will be here somewhere on the property Monday through Friday. If we have a storm like that, we can tell them to run through and clean the roads. Depending on the number of debris, it may be an additional charge. FIFTH ORDER OF BUSINESS Supervisors Requests Mr. Flint: Are there any Supervisor requests? SIXTH ORDER OF BUSINESS Adjournment Mr. Flint: Is there a motion to adjourn? On MOTION by Mr. Solan, seconded by Mr. Gysen, with all in favor, the meeting was adjourned. _______________________________ ______________________________ Secretary / Assistant Secretary Chairman / Vice Chairman