Bannon Lakes Community Development District
ANNUAL FINANCIAL REPORT

September 30, 2025

Bannon Lakes Community Development District ANNUAL FINANCIAL REPORT
September 30, 2025 TABLE OF CONTENTS
Page Number
REPORT OF INDEPENDENT AUDITORS	1-3
MANAGEMENT’S DISCUSSION AND ANALYSIS	4-9
BASIC FINANCIAL STATEMENTS:
Government-wide Financial Statements:
Statement of Net Position	10
Statement of Activities	11
Fund Financial Statements:
Balance Sheet – Governmental Funds	12
Reconciliation of Total Governmental Fund Balances
to Net Position of Governmental Activities	13
Statement of Revenues, Expenditures and Changes in Fund
Balances – Governmental Funds	14
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds
to the Statement of Activities	15
Statement of Revenues, Expenditures and Changes in Fund
Balances – Budget and Actual – General Fund	16
Notes to Financial Statements	17-31
INDEPENDENT AUDITORS’ 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	32-33
MANAGEMENT LETTER	34-37
INDEPENDENT ACCOUNTANTS’ REPORT/COMPLIANCE WITH
SECTION 218.415, FLORIDA STATUTES	38

REPORT OF INDEPENDENT AUDITORS

To the Board of Supervisors
Bannon Lakes Community Development District St. Johns County, Florida
Report on Audit of the Financial Statements

Opinion

We have audited the financial statements of the governmental activities and each major fund of Bannon Lakes Community Development District (the “District”), as of and for the year ended September 30, 2025, and the related notes to financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents.

In our opinion, the accompanying 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, 2025, and the respective changes in financial position and the budgetary comparison for the General Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion

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 (Government Auditing Standards). 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 opinion.
Responsibilities of Management for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

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To the Board of Supervisors
Bannon Lakes Community Development District

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 one year beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditor’s Responsibility 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 and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS and Government Auditing Standards, we:

Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts, and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of 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 be presented to supplement the basic financial statements.

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To the Board of Supervisors
Bannon Lakes Community Development District

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 GAAS, 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 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

Management is responsible for the other information included in the financial report. The other information comprises the information for compliance with Florida Statutes 218.39(3)(c) but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic 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 basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic 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 a report dated June 25, 2026 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 and contracts and grant agreements and other matters.

The purpose of that report is 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.

Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL
Fort Pierce, Florida
June 25, 2026
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Management’s discussion and analysis of Bannon Lakes Community Development District's (the “District”) financial performance provides an objective and easily readable analysis of the District’s financial activities. The analysis provides summary financial information for the District and should be read in conjunction with the District’s financial statements.
OVERVIEW OF THE FINANCIAL STATEMENTS

The District’s basic financial statements comprise three components; 1) Government-wide financial statements, 2) Fund financial statements, and 3) Notes to financial statements. The Government-wide financial statements present an overall picture of the District’s financial position and results of operations. The Fund financial statements present financial information for the District’s major funds. The Notes to financial statements provide additional information concerning the District’s finances.

The Government-wide financial statements are the statement of net position and the statement of activities. These statements use accounting methods similar to those used by the private-sector. Emphasis is placed on the net position of governmental activities and the change in net position. Governmental activities are primarily supported by special assessments.
The statement of net position presents information on all assets and liabilities of the District, with the difference between assets and liabilities reported as net position. Net position is reported in three categories; 1) net investment in capital assets, 2) restricted and 3) unrestricted. Assets, liabilities, and net position are reported for all governmental activities.

The statement of activities presents information on all revenues and expenses of the District and the change in net position. Expenses are reported by major function and program revenues relating to those functions are reported, providing the net cost of all functions provided by the District. To assist in understanding the District’s operations, expenses have been reported as governmental activities. Governmental activities funded by the District include general government, physical environment, culture/recreation, and debt service.

Fund financial statements present financial information for governmental funds. These statements provide financial information for the major funds of the District. Governmental fund financial statements provide information on the current assets and liabilities of the funds, changes in current financial resources (revenues and expenditures), and current available resources.

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Fund financial statements include a balance sheet and a statement of revenues, expenditures and changes in fund balances for all governmental funds. A statement of revenues, expenditures, and changes in fund balances – budget and actual, is provided for the District’s General Fund. Fund financial statements provide more detailed information about the District’s activities. Individual funds are established by the District to track revenues that are restricted to certain uses or to comply with legal requirements.

The government-wide financial statements and the fund financial statements provide different pictures of the District. The government-wide financial statements provide an overall picture of the District’s financial standing. These statements are comparable to private-sector companies and give a good understanding of the District’s overall financial health and how the District paid for the various activities, or functions, provided by the District. All assets of the District, including capital assets, are reported in the statement of net position. All liabilities, including principal outstanding on bonds, are included. The statement of activities includes depreciation on all long-lived assets of the District, but transactions between the different functions of the District have been eliminated in order to avoid “doubling up” the revenues and expenses. The fund financial statements provide a picture of the major funds of the District. In the case of governmental activities, outlays for long lived assets are reported as expenditures and long-term liabilities, such as special assessment bonds, are not included in the fund financial statements. To provide a link from the fund financial statements to the government-wide financial statements, reconciliations are provided from the fund financial statements to the governmentwide financial statements.
Notes to financial statements provide additional detail concerning the financial activities and financial balances of the District. Additional information about the accounting practices of the District, investments of the District, capital assets, and long-term debt are some of the items included in the notes to financial statements.
Financial Highlights:

The following are the highlights of financial activity for the year ended September 30, 2025.

The District’s total assets were exceeded by total liabilities by $(4,402,737) (net position). Net investment in capital assets was $(2,169,548) and restricted net position was $677,888. Unrestricted net position was $(2,911,077).

Governmental activities revenues totaled $2,802,561 while governmental activities expenses totaled $2,331,193.

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Financial Analysis of the District

The following schedule provides a summary of the assets, liabilities and net position of the District.

Net Position

	Governmental Activities	
		2025				2024		
Current assets	$	430,950		$	415,538	
Restricted assets	2,888,792		2,943,844	
Capital assets	18,557,637		18,852,301	
Total Assets	21,877,379		22,211,683	

Current liabilities	
1,051,067		
1,263,198	
Non-current liabilities	25,229,049		25,822,590	
Total Liabilities	26,280,116		27,085,788	
Net position - net investment in capital assets	

(2,169,548)		

(1,856,985)	
Net position-restricted	677,888		549,796	
Net position-unrestricted	(2,911,077)		(3,566,916)	
Total Net Position	$  (4,402,737)		$  (4,874,105)	

The decrease in restricted assets is primarily due to expenditures in excess of revenues in the Debt Service Fund in the current year.
The decrease in capital assets is related to depreciation exceeding capital asset additions in the current year.

The decrease in current liabilities is mainly related to the decrease in contracts payable in the current year.
The decrease in non-current liabilities is related to the principal payments in the current year.

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)
Financial Analysis of the District (Continued)
The following schedule provides a summary of the changes in net position of the District.
Change in Net Position
	Governmental Activities	
		2025			2024		
Program Revenues			
Charges for services	$	2,661,521	$	2,532,125	
General Revenues	
Investment earnings	139,140	149,686	
Miscellaneous revenues		1,900 		368 	
Total Revenues		2,802,561 		2,682,179 	
Expenses	
General government	161,919	159,215	
Physical environment	628,989	563,780	
Culture and recreation	443,261	340,877	
Interest and other charges		1,097,024 		1,117,409 	
Total Expenses		2,331,193 		2,181,281 	
Change in Net Position	471,368	500,898	
Net Position - Beginning of Year		(4,874,105)		(5,375,003)	
Net Position - End of Year	 $	(4,402,737)	 $	(4,874,105)	

The increase in charges for services is primarily related to the increase in special assessments in the current year.

The increase in physical environment is related to the increase in landscape and mitigation expenses in the current year.

The increase in culture/recreation is primarily related to the amenity and fitness center roof replacement in the current year.
The decrease in interest and other charges is related to the decrease in bonds outstanding in the current year.

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Capital Assets Activity

The following schedule provides a summary of the District’s capital assets as of September 30, 2025 and 2024.
	Governmental Activities	
	Description			2025			2024		
Construction in progress	$	12,073,873	$	12,073,873	
Buildings and improvements	3,713,738	3,713,738	
Infrastructure	4,721,061	4,721,061	
Equipment	218,513	200,614	
Accumulated depreciation		(2,169,548)		(1,856,985)	
Total Capital Assets (Net)	 $	18,557,637 	 $	18,852,301 	
During the year, depreciation was $312,563 and additions to equipment totaled $17,899.
General Fund Budgetary Highlights
Final budgeted expenditures exceeded actual expenditures primarily because capital outlay was less than anticipated.
The September 30, 2025 budget was amended primarily to increase capital outlay that was more than anticipated.
Debt Management
Governmental Activities debt includes the following:
In January 2016, the District issued $11,850,000 Special Assessment Bonds, Series 2016. The Bonds were issued to provide funds to finance the cost of acquisition, construction, installation, and equipping of the 2016 Project. The balance outstanding at September 30, 2025 was $10,185,000.
In January 2021, the District issued $7,415,000 Special Assessment Bonds, Series 2021. The Bonds were issued to provide funds to finance the cost of acquisition, construction, installation, and equipping of the 2021 Project. The balance outstanding at September 30, 2025 was $6,785,000.
In March 2022, the District issued $9,135,000 Special Assessment Bonds, Series 2022. The Bonds were issued to provide funds to finance the cost of acquisition, construction, installation, and equipping of the 2022 Project. The balance outstanding at September 30, 2025 was $8,725,000.

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Economic Factors and Next Year’s Budget

Bannon Lakes Community Development District does not expect any economic factors to have a significant effect on the financial position or the results of operations of the District in fiscal year 2026.
Request for Information

The financial report is designed to provide a general overview of District’s finances for all those with an interest. Questions concerning any of the information provided in this report or requests for additional information should be addressed to Bannon Lakes Community Development District, C/O Governmental Management Services, 475 West Town Place, Suite 114, St. Augustine, Florida 32092.

September 30, 2025

ASSETS	
Current Assets	
Cash and cash equivalents	
Investments	
Due from other governments	
Prepaid expenses	
Deposits	
Total Current Assets	
Non-current Assets	
Restricted assets	
Investments	
Capital assets, not being depreciated	
Construction in progress	
Capital assets, being depreciated	
Infrastructure	
Buildings and improvements	
Equipment	
Less: accumulated depreciation	
Total Non-current Assets	
Total Assets	

LIABILITIES	
Current Liabilities	
Accounts payable and accrued expenses	
Accrued interest	
Bonds payable	
Total Current Liabilities	
Non-current Liabilities	
Bonds payable, net	
Total Liabilities	

NET POSITION	
Net investment in capital assets	
Restricted for debt service	
Unrestricted	
Total Net Position	

See accompanying notes to financial statements.

Governmental Activities

$	137,705	
228,794	
23,370	
41,031	
	50 	
	430,950 	

2,888,792

12,073,873

4,721,061	
3,713,738	
218,513	
   (2,169,548)	
   21,446,429 	
   21,877,379 	

20,195	
455,872	
     575,000 	
    1,051,067 	

	25,229,049 
	26,280,116 

(2,169,548)	
677,888	
	(2,911,077)	
 $	(4,402,737)	

For the Year Ended September 30, 2025

Net (Expense)	
Revenues and	
Program	Changes in	
Revenues	Net Position	
Charges for	Governmental
Services	Activities	

$	(161,919)	
(628,989)	
(443,261)	
	(1,097,024)	
 $	(2,331,193)	

Functions/Programs	Expenses

$	165,432	$	
356,125	
420,042	
	1,719,922  		
 $	2,661,521 	

Governmental Activities General government Physical environment Culture and recreation Interest and other charges
Total Governmental Activities

General Revenues	
Investment earnings	
Miscellaneous revenues	
Total General Revenues	

3,513
(272,864)
(23,219)
622,898 
330,328

139,140
	1,900 
	141,040 

Changes in Net Position	471,368	
Net Position - October 1, 2024		(4,874,105)	
Net Position - September 30, 2025	 $	(4,402,737)	

See accompanying notes to financial statements.

Bannon Lakes Community Development District BALANCE SHEET -
GOVERNMENTAL FUNDS
September 30, 2025

Total	
Governmental	
Funds	

Debt	
Service	

Capital	
Projects	

$	137,705	
228,794	
8,377	
41,031	
50	

$	-	
-	
14,993	
-	
-	

$	-	
-	
-	
-	
-	

$	137,705	
228,794	
23,370	
41,031	
50	

2,888,792	
$ 3,319,742	

General

ASSETS	
Cash and cash equivalents	
Investments	
Due from other governments	
Prepaid expenses	
Deposits	
Restricted assets	
Investments	
Total Assets	

	
-	
$	415,957	

1,955,492	
$ 1,970,485	

933,300	
$	933,300	

LIABILITIES AND FUND BALANCES	
Liabilities:	
Accounts payable and accrued expenses	

41,081	
-	
-	
26,630	
328,051	
395,762	
$	415,957	

-	
933,300	
-	
-	
-	
933,300	
$	933,300	

$

Fund Balances:	
Nonspendable - prepaid expenses/deposits	
Restricted - capital projects	
Restricted - debt service	
Assigned capital projects	
Unassigned	
Total Fund Balances	
Total Liabilities and Fund Balances	

See accompanying notes to financial statements.

20,195	$	-	$

-	
-	
1,970,485	
-	
-	
1,970,485	
$ 1,970,485	

-	$	20,195

41,081	
933,300	
1,970,485	
26,630	
328,051	
3,299,547	
$ 3,319,742	

Bannon Lakes Community Development District RECONCILIATION OF TOTAL GOVERNMENTAL FUND BALANCES TO NET POSITION OF GOVERNMENTAL ACTIVITIES
September 30, 2025

Total Governmental Fund Balances

Amounts reported for governmental activities in the Statement of Net Position	
are different because:	

Long-term liabilities, including bonds payable, $(25,695,000), and bond premium,	
net, $(184,458), net of bond discount, net, $75,409, are not due and payable	
in the current period and; therefore, are not reported at the fund level.	

$	3,299,547

Capital assets, construction in progress, $12,073,873, buildings and	
improvements, $3,713,738, infrastructure, $4,721,061, and equipment,	
$218,513, net of accumulated depreciation, $(2,169,548), used in governmental	
activities are not current financial resources and; therefore, are not reported	
at the fund level.	

18,557,637

(25,804,049)

Accrued interest expense for long-term debt is not a current financial use and;	
therefore, is not reported at the fund level.	

	(455,872)

Net Position of Governmental Activities	$	(4,402,737)

See accompanying notes to financial statements.

Bannon Lakes Community Development District STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - GOVERNMENTAL FUNDS
For the Year Ended September 30, 2025

	Total	
	Debt	Capital	Governmental	
	General			Service			Projects			Funds		

Revenues	
Special assessments	
Investment earnings	
Miscellaneous revenues	
Total Revenues	

	
$	941,599	
22,269	
	1,900 	
	965,768 	

	
$	1,719,922	
78,410	
         - 	
    1,798,332 	

	
$	-	
38,461	
        - 	
    38,461 	

	
$	2,661,521	
139,140	
      1,900 	
    2,802,561 	

161,919	
348,563	
411,124	
17,899	

-	
-	
-	
-	

-	
-	
-	
-	

161,919	
348,563	
411,124	
17,899	

Expenditures	
Current	
General government	
Physical environment	
Culture and recreation	
Capital outlay	
Debt service	
Principal	
Interest	
Total Expenditures	

-	570,000	-	570,000
	-  	1,108,725  	-  	1,108,725 
	939,505  	1,678,725  	-  	2,618,230 

26,263	119,607	38,461	184,331	

Net change in fund balances

Fund Balances - October 1, 2024		369,499  	1,850,878  	894,839  	3,115,216 

Fund Balances - September 30, 2025

 $	395,762 

 $	1,970,485 

 $	933,300 

 $	3,299,547 

   

See accompanying notes to financial statements.

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
For the Year Ended September 30, 2025

Net Change in Fund Balances - Total Governmental Funds

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

The change in accrued interest on long-term liabilities is recorded in the Statement	
of Activities but not in the fund level financial statements.	

$	184,331

Governmental funds report capital outlays as expenditures. However, in the Statement	
of Activities, the cost of those assets are allocated over their estimated useful lives	
as depreciation. This is the amount that depreciation, $(312,563), exceeded	
capital outlay, $17,899, in the current period.	(294,664)	

Repayments of bond principal are expenditures at the governmental fund level, but the	
repayments reduce long-term liabilities in the Statement of Net Position.	570,000	

Amortization of bond premium/discount reported at the government-wide level does not	
require the use of current financial resources and therefore, is not reported	
as an expenditure at the fund level. This is the current net change.	

3,541

8,160

Change in Net Position of Governmental Activities	$	471,368

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - GENERAL FUND

	Variance with	
	Final Budget	
Original	Final		Positive	
Budget	Budget	Actual	(Negative)	

For the Year Ended September 30, 2025

Revenues	
Special assessments	
Investment earnings	
Miscellaneous revenues	
Total Revenues	

$  928,675		
$  928,675		
$	941,599		
$	12,924	
8,500		8,803		22,269		13,466	
300		300		1,900		1,600	
937,475		937,778		965,768		27,990	

Expenditures	
Current	
General government	
Physical environment	
Culture and recreation	
Capital outlay	
Total Expenditures	

149,691		149,691		161,919		(12,228)	
410,912		375,005		348,563		26,442	
369,792		369,792		411,124		(41,332)	
-		86,066		17,899		68,167	
930,395		980,554		939,505		41,049	

Net change in fund balances	7,080	(42,776)	26,263	69,039

72,480	69,406	369,499	300,093	

$	79,560	$	26,630	$	395,762	$	369,132	

Fund Balances - October 1, 2024

Fund Balances - September 30, 2025

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the District have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The District's more significant accounting policies are described below.
Reporting Entity
The District was established on September 21, 2015, by Ordinance 2015-60 of the St. Johns County, Florida Board of County Commissioners, pursuant to the Uniform Community Development District Act of 1980, otherwise known as Chapter 190, Florida Statutes. The District was established for the purposes of financing and managing the acquisition, construction, maintenance and operation of the infrastructure necessary for community development within its jurisdiction. The District is authorized to issue bonds for the purpose, among others, of financing, funding, planning, establishing, acquiring, constructing or re-constructing, enlarging or extending, equipping, operating and maintaining water management, bridges or culverts, district roads, landscaping, streetlights and other basic infrastructure projects within or without the boundaries of the Bannon Lakes Community Development District. The District is governed by a five-member Board of Supervisors who are elected for four year terms. The District operates within the criteria established by Chapter 190, Florida Statutes.
As required by GAAP, these financial statements present Bannon Lakes Community Development District (the primary government) as a local unit of special-purpose government. The reporting entity for the District includes all functions of government in which the District’s Board exercises oversight responsibility including, but not limited to, financial interdependency, selection of governing authority, designation of management, significant ability to influence operations and accountability for fiscal matters.
Based upon the application of the above-mentioned criteria, as set forth by the Governmental Accounting Standards Board, the District has identified no component units.
Measurement Focus and Basis of Accounting

The basic financial statements of the District are composed of the following:

Government-wide financial statements

Fund financial statements

Notes to financial statements

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Measurement Focus and Basis of Accounting (Continued)

Government-wide Financial Statements

The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Government-wide financial statements report all non-fiduciary information about the reporting government as a whole. These statements include all the governmental activities of the primary government. The effect of interfund activity has been removed from these statements.

Governmental activities are primarily supported by special assessments and interest. Program revenues are netted with program expenses in the Statement of Activities to present the net cost of each program.
Amounts paid to acquire capital assets are capitalized as assets, rather than reported as an expenditure. Proceeds of long-term debt are recorded as liabilities in the government-wide financial statements, rather than as an other financing source.

Amounts paid to reduce long-term indebtedness of the reporting government are reported as a reduction of the related liability, rather than as an expenditure.
Fund Financial Statements

The underlying accounting system of the District is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.
Fund financial statements for the primary government’s governmental funds are presented after the government-wide financial statements. These statements display information about major funds individually.

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

2.	Measurement Focus and Basis of Accounting (Continued)

b. Fund Financial Statements (Continued) Governmental Funds
The District classifies fund balance in accordance with Governmental Accounting Standards Board Statement 54 – Fund Balance Reporting and Governmental Fund Type Definitions. The Statement requires the fund balance for governmental funds to be reported in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent.

The District has various policies governing the fund balance classifications.
Nonspendable Fund Balance – This classification consists of amounts that cannot be spent because they are either not in spendable form or are legally or contractually required to be maintained intact.
Restricted Fund Balance – This classification includes amounts that can be spent only for specific purposes stipulated by constitution, external resource providers, or through enabling legislation.
Committed Fund Balance – This classification consists of amounts that can only be used for specific purposes pursuant to the constraints imposed by a formal action of the government’s highest level of decision making authority.
Assigned Fund Balance – This classification consists of the Board of Supervisors’ intent to be used for specific purposes, but are neither restricted nor committed. The assigned fund balances can also be assigned by the District’s management company.
Unassigned Fund Balance – This classification is the residual classification for the government’s general fund and includes all spendable amounts not contained in the other classifications. Unassigned fund balance is considered to be utilized first when an expenditure is incurred for purposes for which amounts in any of those unrestricted fund balance classifications could be used.
Fund Balance Spending Hierarchy – When restricted, committed, assigned, and unassigned fund balances are combined in a fund, qualified expenditures are paid first from restricted or committed fund balance, as appropriate, then assigned and finally unassigned fund balances.

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Measurement Focus and Basis of Accounting (Continued)

b. Fund Financial Statements (Continued) Governmental Funds (Continued)
Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are considered to be available when they are collected within the current period or soon thereafter, to pay liabilities in the current year periods. For this purpose, the District considered revenues to be available if they are collected within 60 days of the end of the current fiscal period.

Expenditures generally are recorded when a liability is incurred, as under accrual accounting. Interest associated with the current fiscal period is considered to be an accrual item and so has been recognized as revenue of the current fiscal period.
Under the current financial resources measurement focus, only current assets and current liabilities are generally included on the balance sheet. The reported fund balance is considered to be a measure of “available spendable resources”.

Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of “available spendable resources” during a period.
Because of their spending measurement focus, expenditure recognition for governmental fund types excludes amounts represented by non-current liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities.

Amounts expended to acquire capital assets are recorded as expenditures in the year that resources are expended, rather than as fund assets. In addition, the proceeds of long-term debt are recorded as an other financing source rather than as a fund liability.

Debt service expenditures are recorded only when payment is due.

Basis of Presentation
Governmental Major Funds

General Fund – The General Fund is the District’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Basis of Presentation (Continued)

Governmental Major Funds (Continued)

Debt Service Fund – The Debt Service Fund accounts for debt service requirements to retire the special assessment bonds. The bond series are secured by a pledge of all available special assessment revenues in any fiscal year related to the improvements and a first lien on the special assessment revenues from the District lien on all acreage of benefited land.

Capital Projects Fund – The Capital Projects Fund accounts for construction of infrastructure improvements within the District.
Non-current Governmental Assets/Liabilities

GASB Statement 34 requires that non-current governmental assets, such as capital assets, and non-current governmental liabilities, such as special assessment bonds, be reported in the governmental activities column in the government-wide Statement of Net Position.
Assets, Liabilities, and Net Position or Equity
Cash and Investments

Florida Statutes require state and local governmental units to deposit monies with financial institutions classified as "Qualified Public Depositories," a multiple financial institution pool whereby groups of securities pledged by the various financial institutions provide common collateral from their deposits of public funds. This pool is provided as additional insurance to the federal depository insurance and allows for additional assessments against the member institutions, providing full insurance for public deposits.
The District is authorized to invest in those financial instruments as established by Section 218.415, Florida Statutes. The authorized investments consist of:

Direct obligations of the United States Treasury;

The Local Government Surplus Funds Trust or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperative Act of 1969;
Interest-bearing time deposits or savings accounts in authorized qualified public depositories;
Securities and Exchange Commission, registered money market funds with the highest credit quality rating from a nationally recognized rating agency.

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
4. Assets, Liabilities, and Net Position or Equity (Continued)

Restricted Net Position

Certain assets of the District are classified as restricted on the statement of net position because their use is limited either by law through constitutional provisions or enabling legislation, or by restrictions imposed externally by creditors. In a fund with both restricted and unrestricted assets, qualified expenses are considered to be paid first from restricted net position and then from unrestricted net position.
Capital Assets

Capital assets, which include construction in progress, buildings and improvements, infrastructure, and equipment, are reported in the governmental activities column in the government-wide statements.

The District defines capital assets as assets with an initial, individual cost of $5,000 or more and an estimated useful life in excess of two years. The valuation basis for all assets is historical cost.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend its useful life are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed.
Depreciation of capital assets is computed and recorded by utilizing the straight-line method. Estimated useful lives of the various classes of depreciable capital assets are as follows:

Infrastructure	30 years
Buildings and improvements	10-30 years Equipment		7 years
Budgets

Budgets are prepared and adopted after a public hearing for the governmental funds, pursuant to Chapter 190, Florida Statutes. The District utilizes the same basis of accounting for budgets as it does for revenues and expenditures in its various funds. The legal level of budgetary control is at the fund level. All budgeted appropriations lapse at year end. Formal budgets are adopted for the general and debt service funds.

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
4. Assets, Liabilities, and Net Position or Equity (Continued)
Unamortized Bond Premium/Discount
Bond premiums/discounts are presented on the government-wide financial statements. The premium/discount is amortized over the life of the bonds using the straight-line method. For financial reporting, the unamortized bond premium/discount is netted with the applicable long-term debt.
Use of Estimates

The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumption that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the financial statements date and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates.
NOTE	B	–		RECONCILIATION	OF	GOVERNMENT-WIDE	AND	FUND	FINANCIAL STATEMENTS
Explanation of Differences Between the Governmental Fund Balance Sheet and the Government-wide Statement of Net Position
“Total fund balances” of the District’s governmental funds, $3,299,547, differs from “net position” of governmental activities, $(4,402,737), reported in the Statement of Net Position. This difference primarily results from the long-term economic focus of the Statement of Net Position versus the current financial resources focus of the Governmental Fund Balance Sheet. The effect of the differences is illustrated below.
Capital related items
When capital assets that are to be used in governmental activities are purchased or constructed, the cost of those assets is reported as expenditures at the fund level. However, the Statement of Net Position included those capital assets among the assets of the District as a whole.

Construction in progress	$	12,073,873	
Buildings and improvements	3,713,738	
Infrastructure	4,721,061	
Equipment	218,513	
Accumulated depreciation		(2,169,548)	
Total	$	18,557,637 	

NOTE	B	–		RECONCILIATION	OF	GOVERNMENT-WIDE	AND	FUND	FINANCIAL STATEMENTS (CONTINUED)
Explanation of Differences Between the Governmental Fund Balance Sheet and the Government-wide Statement of Net Position (Continued)
Long-term debt transactions
Long-term liabilities applicable to the District’s governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities. All liabilities (both current and long-term) are reported in the Statement of Net Position.

Bonds payable	$  (25,695,000)	
Bond discount, net	75,409	
Bond premium, net		(184,458)	
Total	$  (25,804,049)	
Accrued interest		
Accrued liabilities in the Statement of Net Position	differ from the amount reported at the	
governmental fund level due to the accrued interest on bonds.
Accrued interest	$	(455,872)
Explanation of Differences Between the Governmental Fund Operating Statements and the Statement of Activities
The “net change in fund balances” for government funds, $184,331, differs from the “change in net position” for governmental activities, $471,368, reported in the Statement of Activities. The differences arise primarily from the long-term economic focus of the Statement of Activities versus the current financial resources focus at the governmental fund level. The effect of the differences is illustrated below.
Capital related items
When capital assets that are to be used in governmental activities are purchased or constructed, the resources expended for those assets are reported as expenditures at the governmental fund level. However, in the Statement of Activities, the costs of those assets are allocated over their estimated useful lives as depreciation.

Depreciation	$	(312,563)	
Capital outlay		17,899 	
Total	$	(294,664) 	

NOTE	B	–		RECONCILIATION	OF	GOVERNMENT-WIDE	AND	FUND	FINANCIAL STATEMENTS (CONTINUED)
Explanation of Differences Between the Governmental Fund Operating Statements and the Statement of Activities (Continued)
Long-term debt transactions

The repayments of bond principal are reported as an expenditure at the fund level and, thus, has the effect of decreasing fund balance because current financial resources have been provided or used.

Bond principal payments	$	570,000

Some expenses reported in the Statement of Activities do not require the use of current financial resources, therefore, are not reported as expenditures at the fund level.
Change in accrued interest payable	$	8,160

Amortization of bond premium/discount, net	$	3,541

NOTE C – CASH AND INVESTMENTS
All deposits are held in qualified public depositories and are included on the accompanying balance sheet and statement of net position as cash and investments.
Custodial Credit Risk – Deposits

Custodial credit risk is the risk that in the event of a bank failure, the District’s deposits may not be returned. The investment policy of the District follows the provisions of Chapter 280, Florida Statutes regarding deposits and investments. As of September 30, 2025, the District’s bank balance was $141,651 and the carrying value was $137,705. Exposure to custodial credit risk was as follows. The District controls its exposure to custodial credit risk because it maintains all deposits in a qualified public depository in accordance with the provisions of Chapter 280, Florida Statutes, which means that all deposits are fully insured by the Federal Deposit Insurance Corporation or collateralized under Chapter 280, Florida Statutes.

NOTE C – CASH AND INVESTMENTS
Investments
As of September 30, 2025, the District had the following investments and maturities.

	Investment		  Maturity			Fair Value		
Dreyfus Treasury Obligation			
Cash Management	54 days*	$	2,888,792	
Florida PRIME	47 days*		228,794 	
Total		 $	3,117,586 	

* Weighted Average Maturity
The District categorizes its fair value measurements within the fair value hierarchy recently established by generally accepted accounting principles. The fair value is the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. The District uses a market approach in measuring fair value that uses prices and other relevant information generated by market transactions involving identical or similar assets, liabilities, or groups of assets and liabilities.
Assets or liabilities are classified into one of three levels. Level 1 is the most reliable and is based on quoted price for identical assets, or liabilities, in an active market. Level 2 uses significant other observable inputs when obtaining quoted prices for identical or similar assets, or liabilities, in markets that are not active. Level 3 is the least reliable and uses significant unobservable inputs that use the best information available under the circumstances, which includes the District’s own data in measuring unobservable inputs.

Based on the criteria in the preceding paragraph, the investments in Dreyfus Treasury Obligation Cash Management are Level 1 assets.
The District’s investment policy allows management to invest funds in investments permitted under Section 218.415, Florida Statutes. The investment in Florida PRIME is measured at amortized cost. Florida PRIME has established policies and guidelines regarding participant transactions and the authority to limit or restrict withdrawals or impose a penalty for an early withdrawal. As of September 30, 2025, there were no redemption fees, maximum transaction amounts, or any other requirement that would limit daily access to 100 percent of the account value.

NOTE C – CASH AND INVESTMENTS (CONTINUED)

Interest Rate Risk

The District monitors investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates.
Credit Risk

The District's investments are limited by state statutory requirements and bond compliance. The District has no investment policy that would further limit its investment choices. The District’s investment in Dreyfus Treasury Obligation Cash Management and Florida PRIME were rated AAAm by Standard & Poor’s.
Concentration of Credit Risk
The District places no limit on the amount it may invest in any one fund. The investment in Florida PRIME was 7% of the District's total investments as of September 30, 2025. The investment in Dreyfus Treasury Obligation Cash Management was 93% of the District's investments.
The types of deposits and investments and their level of risk exposure as of September 30, 2025 were typical of these items during the fiscal year then ended. The District considers any decline in fair value for certain investments to be temporary.

NOTE D – SPECIAL ASSESSMENT REVENUES
Special assessment revenues recognized for the 2024-2025 fiscal year were levied in August 2024. All assessments are payable on November 1 or as soon as the assessment roll is certified and delivered to the Tax Collector. Per Section 197.162, Florida Statutes, discounts are allowed for early payment at the rate of 4% in November, 3% in December, 2% in January, and 1% in February. Assessments paid in March are without discount.
All unpaid assessments become delinquent as of April 1. Virtually all unpaid assessments that were on the assessment roll certified and delivered to the Tax Collector are collected via the sale of tax certificates on or prior to June 1. For certain parcels, the District bills and collects the annual assessments.

NOTE E – CAPITAL ASSETS
Capital asset activity for the year ended September 30, 2025 was as follows:

Governmental Activities:
Capital assets, not being depreciated: Construction in progress

Balance	Balance
October 1,	September 30,
	2024	  Additions	 	Deletions	 	2025	

 $ 12,073,873   $	-   $	-   $  12,073,873 

Capital assets, being depreciated:
Infrastructure	4,721,061	-	-	4,721,061	
Buildings and improvements	3,713,738	-	-	3,713,738	
Equipment		200,614  	17,899  	-  	218,513 	
Total Capital Assets, Being Depreciated		8,635,413  	17,899  	-  	8,653,312 	
Less accumulated depreciation for:		
Infrastructure	(944,214)	(157,369)	-	(1,101,583)	
Buildings and improvements	(748,322)	(125,256)	-	(873,578)	
Equipment		(164,449)		(29,938)		-  	(194,387)	
Total Accumulated Depreciation		(1,856,985)		(312,563)		-  	(2,169,548)	
Governmental Activities Capital Assets	 $ 18,852,301 	 $ (294,664)	 $	-   $  18,557,637 	

Depreciation	of	$280,426	was	charged	to	physical	environment	and	$32,137	to culture/recreation during the year.

NOTE F – LONG-TERM DEBT
The following is a summary of activity in the long-term debt of the District for the year ended September 30, 2025:

Long-term debt is comprised of the following:		
Long-term debt at October 1, 2024	$	26,265,000	
Principal payments		(570,000)	
Long-term debt at September 30, 2025	25,695,000	
Less: bond discount, net	(75,409)	
Plus: bond premium, net		184,458 	
Long-term Debt, Net at September 30, 2025	$	25,804,049 	
Long-term debt for Governmental Activities is comprised of the following:		
$11,850,000 Special Assessment Bonds, Series 2016 due in		
annual principal installments beginning November 2019. Interest		
rates ranging from 4.50% to 5.00% is due May 1 and November		
1 beginning May 2016. Current portion is $230,000.	$	10,185,000	
$7,415,000 Special Assessment Bonds, Series 2021 are due in		
annual principal installments beginning May 2022 maturing May		
2051. Interest at various rates between 2.50% and 4.00% is due		
May 1 and November 1 beginning May 2021. Current portion is		
$165,000.	6,785,000	
$9,135,000 Special Assessment Bonds, Series 2022 are due in		
annual principal installments beginning May 2024 maturing May		
2053. Interest at various rates between 2.875% and 4.00% is		
due May 1 and November 1 beginning May 2022. Current
portion is $180,000.		8,725,000

Bonds Payable at September 30, 2025	$	25,695,000

NOTE F – LONG-TERM DEBT (CONTINUED)
The annual requirements to amortize the principal and interest of long-term debt outstanding as of September 30, 2025 are as follows:
Year Ending
  September 30, 		Principal			Interest			Total		
2026	$	575,000	$	1,088,919	$	1,663,919	
2027	595,000	1,068,444	1,663,444	
2028	615,000	1,045,775	1,660,775	
2029	645,000	1,021,380	1,666,380	
2030	670,000	995,755	1,665,755	
2031-2035	3,775,000	4,546,400	8,321,400	
2036-2040	4,675,000	3,655,075	8,330,075	
2041-2045	5,800,000	2,531,000	8,331,000	
2046-2050	6,485,000	1,118,250	7,603,250	
2051-2053		1,860,000 		134,200 		1,994,200 	
Totals	 $	25,695,000 	 $	17,205,198 	 $	42,900,198 	
Summary of Significant Bonds Resolution Terms and Covenants
The Series 2016 Bonds are subject to redemption at the option of the District prior to their maturity, in whole or in part, at any time after November 1, 2028 at a redemption price equal to the principal amount of the Series 2016 Bonds, together with accrued interest to the date of redemption.
The Series 2021 Bonds are subject to redemption at the option of the District prior to their maturity, in whole or in part, at any time after May 1, 2031 at a redemption price equal to the principal amount of the Series 2021 Bonds, together with accrued interest to the date of redemption.
The Series 2022 Bonds are subject to redemption at the option of the District prior to their maturity, in whole or in part, at any time after May 1, 2032 at a redemption price equal to the principal amount of the Series 2022 Bonds, together with accrued interest to the date of redemption.
The Series 2016, 2021, and 2022 Bonds are subject to extraordinary mandatory redemption prior to maturity in the manner determined by the Bond Registrar if certain events occurred as outlined in the Trust Indentures.
The Trust Indentures require certain amounts be maintained in a reserve account. In addition, the Trust Indenture has certain 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.

NOTE F – LONG-TERM DEBT (CONTINUED)
Depository Funds
The bond resolutions establish certain funds and determines the order in which revenues are to be deposited into these funds. A description of the significant funds, including their purposes, is as follows:

1. Reserve Fund – The Series 2016, 2021, and 2022 Reserve Accounts were funded from the proceeds of the Series 2016, 2021, and 2022 Bonds, respectively, in amounts equal to 50% of the maximum annual debt service requirement for the Series 2016, 2021, and 2022 Bonds. Monies held in the reserve accounts will be used only for the purposes established in the Trust Indenture.
Special Assessment Revenue
		Bonds		 Reserve		Reserve
	Balance	  Requirement	
Series 2016	$	370,375	$	370,375
Series 2021	$	206,950	$	206,950
Series 2022	$	259,400	$	259,400

NOTE G – 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. These risks are covered by commercial insurance from independent third parties. There have been no claims or settled claims from these risks that have exceeded commercial coverage over the past three years.

NOTE H – SUBSEQUENT EVENTS

In November 2025, the District made a total of $35,000 prepayments on the Series 2016, 2021, and 2022 Special Assessment Revenue Bonds.

In May 2026, the District made a total of $20,000 prepayments on the Series 2016, 2021, and 2022 Special Assessment Revenue Bonds.

INDEPENDENT AUDITORS’ 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
Bannon Lakes Community Development District St. Johns 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 (Government Auditing Standards), the financial statements, as listed in the table of contents, of Bannon Lakes Community Development District, as of and for the year ended September 30, 2025, and the related notes to the financial statements, which collectively comprise the basic financial statements and have issued our report thereon dated June 25, 2026.

Report on Internal Control Over Financial Reporting
In planning and performing our audit, we considered Bannon Lakes Community Development District's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Bannon Lakes Community Development District’s internal control. Accordingly, we do not express an opinion on the effectiveness of Bannon Lakes Community Development 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 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.

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To the Board of Supervisors
Bannon Lakes Community Development District

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

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the 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.

Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL
Fort Pierce, Florida June 25, 2026

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MANAGEMENT LETTER

To the Board of Supervisors
Bannon Lakes Community Development District St. Johns County, Florida

Report on the Financial Statements
We have audited the financial statements of Bannon Lakes Community Development District as of and for the year ended September 30, 2025, and have issued our report thereon dated June 25, 2026.
Auditor’s Responsibility
We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States and Chapter 10.550, Rules of the Florida Auditor General.
Other Reports and Schedule
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 Financial Statements Performed in Accordance with Government Auditing Standards and our 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 25, 2026, should be considered in conjunction with this management letter.
Prior Audit Findings
Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been made to address findings and recommendations made in the preceding financial audit report. There were no findings or recommendations in the preceding financial audit report.

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To the Board of Supervisors
Bannon Lakes Community Development District
Financial Condition and Management
Section 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, requires us to apply appropriate procedures and communicate the results of our determination as to whether or not Bannon Lakes Community Development District met one or more of the conditions described in Section 218.503(1), Florida Statutes, and to identify the specific condition(s) met. In connection with our audit, we determined that Bannon Lakes Community Development District did not meet any of the conditions described in Section 218.503(1), Florida Statutes.
Pursuant to Sections 10.554(1)(i)5.b. and 10.556(8), Rules of the Auditor General, we applied financial condition assessment procedures for Bannon Lakes Community Development District. It is management’s responsibility to monitor Bannon Lakes Community Development District’s financial condition; and our financial condition assessment was based in part on the representations made by management and the review of the financial information provided by the same.
Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations.
Specific Information

The information below was provided by management and has not been audited by us; therefore, we do not express an opinion or provide any assurance on the information.

As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)7, Rules of the Auditor General, Bannon Lakes Community Development District reported:
The total number of District employees compensated in the last pay period of the District’s fiscal year as: 5
The total number of independent contractors, to whom nonemployee compensation was paid in the last month of the District’s fiscal year as: 17
All compensation earned by or awarded to employees, whether paid or accrued, regardless of contingency as: $10,158.50
All compensation earned by or awarded to nonemployee independent contractors, whether paid or accrued, regardless of contingency: $810,755.83
Each construction project with a total cost of at least $65,000 approved by the District that is scheduled to begin on or after October 1, 2024, together with the total expenditures for such project as: N/A
A budget variance based on the budget adopted under Section 189.016(4), Florida Statutes, before the beginning of the fiscal year being reported if the District amends a final adopted budget under Section 189.016(6), Florida Statutes: See Original Budget vs. Actual below:

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To the Board of Supervisors
Bannon Lakes Community Development District

Revenues

Original
Budget	Actual

Variance with Original Budget Positive (Negative)

Special assessments	$	928,675	$	941,599	$	12,924	
Miscellaneous revenues	300	1,900	1,600	
Interest earnings		8,500 		22,269 		13,769 	
Total Revenues		937,475 		965,768 		28,293 	

Expenditures Current
General government	149,691		161,919		(12,228)	
Physical environment	410,912		348,563		62,349	
Culture/recreation	369,792		411,124		(41,332)	
Capital outlay	-		17,899		(17,899)	
Total Expenditures	930,395		939,505		(9,110)	
Net changes in fund balance	7,080		26,263		19,183	
Fund Balances - October 1, 2024	72,480		369,499		297,019	
Fund Balances - September 30, 2025	 $	79,560 		 $	395,762 		 $	316,202 	

As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)9, Rules of the Auditor General, Bannon Lakes Community Development District reported:

The rate or rates of non-ad valorem special assessments imposed by the District:
$1,001.98 for the General Fund and $937.08 - $1,875.31 for the Debt Service Fund
The amount of special assessments collected by or on behalf of the District: $2,486,311.45
The total amount of outstanding bonds issued by the District and the terms of such bonds are as follows: $10,185,000 Series 2016, due November 1, 2048; $6,785,000 Series 2021, due May 1, 2051; and $8,725,000 Series 2022, due May 1, 2053. See Note F for additional details.

Additional Matters
Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate noncompliance with provisions of contracts or grant agreements, or fraud, waste, or abuse, that has occurred or is likely to have occurred, that has an effect on the financial statements that is less than material, but which warrants the attention of those charged with governance. In connection with our audit, we did not note any such findings.

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To the Board of Supervisors
Bannon Lakes Community Development District

Purpose of this Letter

Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, the Board of Supervisors, and applicable management, and is not intended to be and should not be used by anyone other than these specified parties.

Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL
Fort Pierce, Florida June 25, 2026

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INDEPENDENT ACCOUNTANTS’ REPORT/COMPLIANCE WITH SECTION 218.415, FLORIDA STATUTES

To the Board of Supervisors
Bannon Lakes Community Development District St. Johns County, Florida

We have examined Bannon Lakes Community Development District's compliance with Section 218.415, Florida Statutes during the year ended September 30, 2025. Management is responsible for Bannon Lakes Community Development District’s compliance with those requirements. Our responsibility is to express an opinion on Bannon Lakes Community Development 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 and, accordingly, included examining, on a test basis, evidence about Bannon Lakes Community Development District’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on Bannon Lakes Community Development District’s compliance with the specified requirements.

In our opinion, Bannon Lakes Community Development District complied, in all material respects, with the aforementioned requirements during the year ended September 30, 2025.

Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL
Fort Pierce, Florida June 25, 2026

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