TWO RIDGES COMMUNITY DEVELOPMENT DISTRICT

FINANCIAL STATEMENTS

SEPTEMBER 30, 2025

TWO RIDGES COMMUNITY DEVELOPMENT DISTRICT TABLE OF CONTENTS
SEPTEMBER 30, 2025

Pages
1-2

Independent Auditor s Report

Unaudited)

3-5

Financial Statements:
Government-wide Financial Statements: Statement of Net Position Statement of Activities
Fund Financial Statements:
Balance Sheet	Governmental Funds
Reconciliation of the Balance Sheet	Governmental Funds to the Statement of Net Position
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances	Governmental Funds to the Statement of Activities
Notes to the Financial Statements

6
7

8

9

10

11
12-18

Required Supplementary Information:
Budgetary Comparison Schedule	General Fund Note to Required Supplementary Information

19
20

Other Information and Reports:
Report on Internal Control Over Financial Reporting and on Compliance Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With

21-22

Management letter in Accordance with the

of the

State of Florida

23-24

Independent Accountant's Report on Compliance with Section 218.415, Florida Statutes

25

The Board of Supervisors
Two Ridges Community Development District:
Opinions
We have audited the accompanying financial statements of the governmental activities and each major fund

of Two Ridges Community Development District (the

) as of and for the year ended September 30,

2025, and the related notes to the financial statements, which collectively comprise the District 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, 2025, and the respective changes in financial position thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of

America and the standards applicable to financial audits contained in

,

issued by the Comptroller General of the United States. Our responsibilities under those standards are

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
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
going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are

includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing

standards and

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.

1

In performing an audit in accordance with generally accepted auditing standards and
, 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
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
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

discussion and analysis and budgetary comparison information be presented to supplement the financial statements. Such information, although not a part of the financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the 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

during our audit of the 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 Reporting Required by

In accordance with
our consideration of the District

, we have also issued our report dated April 20, 2026 on

with certain provisions of laws, regulations, 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 internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance

with

in considering the District's internal control over financial reporting.

Miami, Florida April 20, 2026

2

TWO RIDGES COMMUNITY DEVELOPMENT DISTRICT
(UNAUDITED)
SEPTEMBER 30, 2025

This section of Two Ridges Community Development District (the District ) financial statements presents management's analysis of the financial performance for the fiscal year ended September 30, 2025. This discussion addresses whether or not the District as a whole is better off or worse off as a result of this

Overview
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.
Further, the District is governed by the Board of Supervisors ("Board"), which is composed of five members. The Board of Supervisors of the District exercise all powers granted to the District pursuant to Chapter 190, Florida Statutes.
Financial Highlights
The District was established on January 28, 2025, and as a result, the balances as of and for the period ended September 30, 2025 are for less than an twelve month period.
Due to the accrual of debt service, the liabilities of the District exceeded its assets at the close of its most recent fiscal year by $333,335. Of this amount, $9,380,900 was restricted for capital projects, $563,750 was restricted for debt service, resulting in $(10,277,985) (unrestricted deficit) available to meet the District
At the close of the current fiscal year, the District
balances of $9,958,528. This increase was a result of the issuance of bonds during the 2025.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the District

The District

1) government-wide financial

statements; 2) fund financial statements; and 3) notes to the financial statements. In addition, the District reports, as required supplementary information, a budget to actual comparison and notes to the required supplementary information.
Government-wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview of the

District

-sector business. The statement of net position presents

information on all of the District

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 District
in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of the 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 Developer revenues. The District does not have any business-type activities. The governmental activities of the District include the general government (management) maintenance function.
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.
3

TWO RIDGES COMMUNITY DEVELOPMENT DISTRICT
(UNAUDITED)
SEPTEMBER 30, 2025

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 expendable resources, as well as on balances of expendable resources available at the end of the fiscal year. Such
-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 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 Agency maintains three individual governmental funds during fiscal year 2025.

Information is

presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for each governmental fund.
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.
Financial Analysis

Government-wide Analysis
Our analysis of the financial statements of the District begins below. The Statement of Net Position and the Statement of Activities report information about the District
the position of the District. A summary of net position and changes in net position are shown below.

Summary of Net Position

FY 2025
25,369
	9,944,650 
	9,970,019 
11,491
	10,291,863 
	10,303,354 

Cash
Restricted investments
Total assets
Accounts payable Non-current liabilities
Total liabilities
Net position:
Restricted for capital projects Restricted for debt service Unrestricted (deficit)
Total net position

$

9,380,900
563,750
	(10,277,985)
	(333,335)

$

restrictions on how they may be used. The remaining balance of unrestricted net position (deficit) may be

ending net position is a deficit for the fiscal year ended September 30, 2025. The deficit was mainly the result of the bond issue costs from the issuance of bonds during the fiscal year.

4

TWO RIDGES COMMUNITY DEVELOPMENT DISTRICT
(UNAUDITED)
SEPTEMBER 30, 2025

Summary of Changes in Net Position

FYE 2025

Revenues:
General revenues:
Unrestricted investment income Program revenues:
Operating grants and contributions Capital grants and contributions
Total revenues
Expenses:
General government Bond issue costs
Total expenses
Change in net position Net position, beginning of year
Net position, end of year

$

5

72,792
	67,256 
	140,053 

54,877
	418,511 
	473,388 
(333,335)
	- 
	(333,335)

$

Governmental Activities
As noted above and in the statement of activities, the cost of all governmental activities during the fiscal year ended September 30, 2025 was $473,388
revenues and general revenues. Program revenues were comprised primarily of Developer contributions and investment income earned in the capital projects and debt service funds.
Budgetary 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. The fiscal year 2025 general fund budget was amended to decrease revenues by $14,875 and decrease appropriations by
$21,780. Actual general fund expenditures did not exceed appropriations for the fiscal year ended September 30, 2025.
Long-term Debt
At September 30, 2025, the District had $10,291,863 in Bonds outstanding. More detailed information about

This financial report is designed to provide our citizens, land owners, taxpayers, customers, investors and

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 Two Ridges Community Development
Beach Gardens, Florida 33410.

5

TWO RIDGES COMMUNITY DEVELOPMENT DISTRICT STATEMENT OF NET POSITION
SEPTEMBER 30, 2025

Governmental
	Activities	

ASSETS
Cash
Restricted assets: Investments
Total assets

$

25,369

	9,944,650
	9,970,019

LIABILITIES
Accounts payable Noncurrent liabilities:
Due within one year: Bonds payable
Due in more than one year: Bonds payable
Total liabilities

11,491

145,000

	10,146,863
	10,303,354

NET POSITION
Restricted for capital projects Restricted for debt service Unrestricted (deficit)
Total net position

9,380,900
563,750
	(10,277,985)
$	(333,335)

The accompanying notes are an integral part of the basic financial statements.

6

TWO RIDGES COMMUNITY DEVELOPMENT DISTRICT STATEMENT OF ACTIVITIES
YEAR ENDED SEPTEMBER 30, 2025

Program
	Revenues	

Net Revenue (Expense) and Changes in Net
	Position	

Operating Grants and
 Contributions 

Capital Grants and
 Contributions 

  Expenses	

Functions/Programs Governmental Activities:
General government Maintenance and operations Interest on long-term debt Bond issue costs
Total governmental activities

$

54,877
-
-

$

68,750
- 4,042

$

- 67,256
-

$

13,873
67,256
4,042

	418,511

	-	
$	72,792

	-	
$	67,256

	(418,511)
	(333,340)

$	473,388

General revenues:
Unrestricted investment income Total general revenues
Change in net position
Net position - beginning of year
Net position - end of year

	5
	5
(333,335)
	-	
$	(333,335)

The accompanying notes are an integral part of the basic financial statements.

7

TWO RIDGES COMMUNITY DEVELOPMENT DISTRICT BALANCE SHEET - GOVERNMENTAL FUNDS SEPTEMBER 30, 2025

	Major funds	

Total governmental
	funds	

  General fund 

 Capital projects 

  Debt service 

ASSETS
Cash
Restricted assets: Investments
Total assets

$

25,369

$

-

$

-

$

25,369

	-	
$	25,369

	9,380,900
$	9,380,900

	563,750
$	563,750

	9,944,650
$	9,970,019

LIABILITIES
Accounts payable

$	11,491

$	-	

$	-	

$	11,491

FUND BALANCES
Restricted for:
Capital projects Debt service
Unassigned
Total fund balances
Total liabilities and fund balances

-
-
	13,878
	13,878
$	25,369

9,380,900
-
	-	
	9,380,900
$	9,380,900

- 563,750
	-	
	563,750
$	563,750

9,380,900
563,750
	13,878
	9,958,528
$	9,970,019

The accompanying notes are an integral part of the basic financial statements.

8

TWO RIDGES COMMUNITY DEVELOPMENT DISTRICT RECONCILIATION OF THE BALANCE SHEET - GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION YEAR ENDED SEPTEMBER 30, 2025

Total fund balance - governmental funds
Amounts reported for governmental activities in the statement of net position consist of:
Liabilities not due and payable from current available resources are not reported as liabilities in the governmental fund financial statements. All liabilities, both current and long-term, are reported in the government-wide financial statements.
Bonds payable
Net position of governmental activities

$

9,958,528

	(10,291,863)
$	(333,335)

The accompanying notes are an integral part of the basic financial statements.

9

TWO RIDGES COMMUNITY DEVELOPMENT DISTRICT
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
YEAR ENDED SEPTEMBER 30, 2025

	Major funds	

Total governmental
	funds	

 General fund 

 Capital projects 

  Debt service 

REVENUES
Developer contributions Investment income
Total revenues
EXPENDITURES
Current:
General government Debt service:
Bond issue costs
Total expenditures
Excess (deficiency) of revenues over
(under) expenditures

$

68,750
5

$

- 67,256

$

- 4,042

$

68,750
71,303

68,755

67,256

4,042

140,053

54,877

-

-

54,877

-

418,511

-

418,511

54,877

418,511

-

473,388

13,878

(351,255)

4,042

(333,335)

OTHER FINANCING SOURCES (USES)
Bond proceeds
Bond premium (discount)
Total other financing sources (uses)

-
-

9,740,292
(8,137)

559,708
-

10,300,000
(8,137)

-

9,732,155

559,708

10,291,863

Net change in fund balances
Fund balances - beginning of year Fund balances - end of year

13,878
-

9,380,900
-

563,750
-

9,958,528
-

$

13,878

$

9,380,900

$

563,750

$

9,958,528

The accompanying notes are an integral part of the basic financial statements.

10

TWO RIDGES COMMUNITY DEVELOPMENT DISTRICT
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
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 issuance of long-term debt provides current financial resources to governmental funds, while the repayment of principal of long-term debt consumes the current financial resources of governmental funds.
Neither transaction has any effect on net position. Also, governmental funds report the effect of premiums, discounts and similar items when debt is first issued, whereas these amount are deferred and amortized on the statement of activities.
Bonds issued Bond discount
Change in net position of governmental activities

$

9,958,528

(10,300,000)
	8,137

  (10,291,863)
$	(333,335)

The accompanying notes are an integral part of the basic financial statements.

11

TWO RIDGES COMMUNITY DEVELOPMENT DISTRICT
NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2025

1.

Summary of Significant Accounting Policies
This summary of Two Ridges Community Development District (the District ) significant accounting policies is presented to assist the reader in interpreting the financial statements. The policies are considered essential and should be read in conjunction with the financial statements.
The accounting policies of the District conform to accounting principles generally accepted in the United States of America applicable to governmental units. This report, the accounting systems and classification of accounts conform to standards of the Governmental Accounting Standards Board (GASB), which is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The following is a summary of the more significant policies:
Reporting Entity
The District was created on January 28, 2025, and is governed by the Board of Supervisors ("Board"), which is composed of five members. The Board exercises all powers granted to the District pursuant to Chapter 190, Florida Statutes. 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. Amongst other things, The District has the power to manage basic services for community development, the 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 Board has the final 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; and 6) financing improvements.
For financial reporting purposes, the District is an independent agency and is not a component unit of any government agency.
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 the nonfiduciary activities of the District. 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 are offset by program revenues. specific function or segment.

are those that are clearly identifiable with a 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

.

C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government-wide financial statements are reported using the

and the

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

and the

Revenues are recognized as soon as they are both

measurable and available.	Revenues are considered

when they are collectible within the

current period or soon enough thereafter to pay liabilities of the current period.
12

TWO RIDGES COMMUNITY DEVELOPMENT DISTRICT NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2025

1.

Summary of Significant Accounting Policies (Continued)
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Cont.)
For this purpose, the District considers 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. However, debt service expenditures are recorded only when payment is due.
When both restricted and unrestricted resources are available for use, it is the District
restricted resources first for qualifying expenditures, then unrestricted resources as they are needed. Assessments
Assessments are non-ad valorem assessments on certain land and all platted lots within the District.
Assessments are levied each November 1 on property of record as of the previous January. The fiscal year for which annual assessments are levied begins on October 1 with discounts available for payments through February 28 and become delinquent on April 1. For debt service assessments, amounts collected as advance payments are used to prepay a portion of the Bonds outstanding. Otherwise, assessments are collected annually to provide funds for the debt service on the portion of the Bonds which are not paid with prepaid assessments.
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:
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;
is used to account for the financial resources to be used for the acquisition or construction of major infrastructure within the District; and
is used to account for the accumulation of resources for the annual payment of principal and interest on long-term debt.
D. Restricted Assets
Restricted assets represent investments set aside pursuant to Bond covenants or other contractual restrictions.
E. Deposits and Investments
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: 1) the Local Government Surplus Trust Funds, or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act; 2) Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency; 3) interest bearing time deposits or savings accounts in qualified public depositories; and 4) direct obligations of the U.S. Treasury. Securities listed in 3) and 4) above shall be invested to provide sufficient liquidity to pay obligations as they come due.
Investments are reported at fair value on a recurring basis, as defined by GASB Statement No. 72,
, which establishes a fair value hierarchy. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 are significant unobservable inputs.
13

TWO RIDGES COMMUNITY DEVELOPMENT DISTRICT NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2025

1.

Summary of Significant Accounting Policies (Continued)
E. Deposits and Investments (Continued)

The District records all

interest income related to investment activities in the respective funds.
F. 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 ratably 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.
G. Deferred Outflows/Inflows of Resources
In addition to assets and liabilities, the statement of financial position will, from time to time, report separate sections for deferred outflows and deferred inflows of resources. Deferred outflows of resources represent a consumption of net position that applies to a future period(s) and, as such, will not be recognized as an outflow of resources (expense/expenditure) until then. Deferred inflows of resources represent an acquisition of net position that applies to a future period(s) and, as such, will not be recognized as an inflow of resources (revenue) until that time.
H. Fund Balance / Net Position
Fund Balance
Fund balances for governmental funds are 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, as follows:
Non spendable fund balance - amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact.
Restricted fund balance - amounts that are restricted to specific purposes when constraints placed on the use of resources are either by (a) externally imposed by creditors (such as debt covenants), grantors, contributors, or laws or regulations of other governments; or (b) imposed by law through constitutional provisions or enabling legislations.
Committed fund balance - amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the government's highest level of decision-making authority.
Assigned fund balance - amounts that are constrained by the government's intent to be used for specific purposes, but are neither restricted nor committed.
Unassigned fund balance - amounts that have not been assigned to other funds and that have not been restricted, committed, or assigned to specific purpose within the general fund.
When both restricted and unrestricted amounts are available for use, it is the District's practice to use restricted resources first. Additionally, the District would first use committed, then assigned, and lastly unassigned amounts of unrestricted fund balance.

14

TWO RIDGES COMMUNITY DEVELOPMENT DISTRICT NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2025

1.

Summary of Significant Accounting Policies (continued)
H. Fund Balance / Net Position (continued)
Net Position
The government-wide financial statements utilize a net position presentation. Net position can be categorized as net investment in capital assets, restricted, or unrestricted. The first category represents capital assets, less accumulated depreciation and net of any outstanding debt associated with the acquisition of capital assets. Restricted net position represents amounts that are restricted by

requirement of

. Unrestricted net position

represents the net position of the District which are not restricted for any project or purpose.
I. Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Although these estimates are

may ultimately differ from actual results.
Deposits and Investments
Deposits

2.

The carrying amount of the District

at September 30, 2025 totals $25,369. All deposits are

fully insured by Federal Depository Insurance and are held in qualified public depositories pursuant to State of Florida Statutes Chapter 280, Florida Security for Public Deposits Act (the Act). Under the Act,

all qualified public depositories are required to pledge eligible collateral having a market value equal to

collateral pledging level. The pledging level is dependent
establishment period. All collateral must be deposited with an approved financial institution. Any losses to public depositors are covered by applicable deposit insurance, sale of securities pledged as collateral and, if necessary, assessments against other qualified public depositories of the same type as the depository in default.
Investments
Fair value of investments measured on a recurring basis at September 30, 2025, are as follows:
Quoted Prices in Active Markets for Identical Assets
	(Level 1)	

Money market funds

  $	9,944,650 

risk

is 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

does not have an available credit rating.
risk
single issuer. The District places no limit on the amount invested in any one issuer.

15

TWO RIDGES COMMUNITY DEVELOPMENT DISTRICT NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2025

2.

Deposits and Investments (Continued)
risk  is the risk that changes in the market interest rate will adversely affect the fair value of an investment. The District does not have provisions that limit investment maturity as a means of managing exposure to fair value losses arising from increasing interest rates. However, the bond indentures limit the type of investments held using unspent proceeds.
Information about the sensitivity of the fair value of the District's investments and market interest rate fluctuations, as of September 30, 2025, is as follows:

Weighted Avg.
Investment Maturities
	(in years)	
Less than 1 yr.

Money market funds
Long-Term Obligations

3.

On July 1, 2025, the District issued $10,300,000 of Special Assessment Bonds, due May 1, 2055 with interest rates of ranging from 4.27% to 6.00%. The Bonds were issued to provide funds to pay a portion of the costs of the planning, financing, acquisition, construction, equipping and installation of
. Interest is paid semiannually on each May 1 and November 1, commencing on November 1, 2025. Principal is paid serially commencing on May 1, 2026 through May 1, 2055.
The changes in the long-term obligations for the year ended September 30, 2025 are summarized as follows:
Amount due

Balance 9/30/2024

Balance 9/30/2025

within one year (a)

Additions

Deletions

Series 2025 Bonds
Less: original issue discount
Total long-term obligations

$

-
-

$ 10,300,000
(8,137)

$

-
-

$ 10,300,000  $
(8,137)

145,000
-

$

- $ 10,291,863

$

- $ 10,291,863  $

145,000

The annual requirements to amortize the bonds payable outstanding as of September 30, 2025, are as follows:

Fiscal Year(s)

Principal

Interest

Total

2026
2027
2028
2029
2030
2031-2035
2036-2040
2041-2045
2046-2050
2051-2055

$

145,000
150,000
160,000
165,000
175,000
1,000,000
1,300,000
1,735,000
2,330,000

$

487,083
578,338
571,962
565,163
558,150
2,662,362
2,372,688
1,951,787
1,378,800

$

632,083
728,338
731,962
730,163
733,150
3,662,362
3,672,688
3,686,787
3,708,800

	3,140,000	587,700	3,727,700 

$

10,300,000 $

11,714,033 $

22,014,033

16

TWO RIDGES COMMUNITY DEVELOPMENT DISTRICT NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2025

4.

Long-Term Obligations (Continued)
Redemption Provisions
The Bonds are subject to redemption at the option of the District prior to their maturity as outlined in the Bond Indenture. The Bonds are also subject to extraordinary mandatory redemption prior to their selected maturity in the manner determined by the Bond Registrar if certain events occur as outlined in the Bond Indenture.
Indenture Requirements
The Bond Indenture requires that the District maintain adequate funds in the reserve accounts to meet the debt service reserve requirements as defined in the Bond Indenture. In addition, the Bond 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. The District is in compliance with the reserve requirements outlined in the Bond Indenture at September 30, 2025.
Fund Balances
At September 30, 2025, the District reported the following governmental fund balances:
Restricted fund balance	these amounts are restricted to specific purposes stipulated by the bond indentures.

5.

Unassigned fund balance

these amounts have not been assigned to other funds and have not

been restricted, committed, or assigned to specific purpose within the general fund.

Below is a table of fund balance categories and classifications, by fund, at September 30, 2025:

Capital
 Projects Fund 

Debt Service
	Fund	

 General Fund 

Restricted for: Capital projects Debt service
Unassigned
Total
Developer Contributions

$

-

$

9,380,900

$

-

-

-

563,750

	13,878 
 $	13,878 

	- 
 $	9,380,900 

	- 
 $	563,750 

6.

The Developer owns a portion of land within the District; therefore, assessment revenues in the general fund will include the assessments levied on those lots owned by the Developer. The Developer also provided $68,750 as Developer contributions for the general fund during the current fiscal year.
Management Company
The District has contracted with a management company to perform management advisory services, which include financial and accounting advisory 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.

7.

17

TWO RIDGES COMMUNITY DEVELOPMENT DISTRICT NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2025

8.

Risk Management
The District is exposed to various risks of losses related to torts; theft or damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The District purchases commercial insurance for the risks of loss to which it is exposed. Policy limits and deductibles are reviewed by management and established at amounts to provide reasonable protection from significant financial loss. There were no losses or claims incurred during the current fiscal year, and there were no settlements that exceeded insurance coverage during the past three fiscal years.
New Pronouncements Issued
The following pronouncements were recently issued, but were not yet effective for the District
ended September 30, 2025. Management will evaluate the effect that the following pronouncements will have on its financial statements:
GASB Statement No. 103, GASB Statement No. 104,

9.

10. Subsequent events
The District evaluated subsequent events through April 20, 2026, the date the financial statements were available to be issued, and does not believe that there are any such events or transactions that require disclosure.

18

TWO RIDGES COMMUNITY DEVELOPMENT DISTRICT BUDGETARY COMPARISON SCHEDULE - GENERAL FUND (REQUIRED SUPPLEMENTARY INFORMATION - UNAUDITED) YEAR ENDED SEPTEMBER 30, 2025

Variance with final budget - positive
  (negative)	

	Budgeted amounts	

	Original	

	Final	

	Actual	

REVENUES
Developer contributions Investment income
Total revenues
EXPENDITURES
Current:
General government Maintenance and operations
Total expenditures
Excess of revenues over expenditures / net change in fund balance
Fund balances - beginning of year Fund balances - end of year

$

83,625

$

68,750

$

68,750

$

-

	- 
	83,625

	- 
	68,750

	5

	5
	5

	68,755

81,625
	2,000
	83,625

61,845
	- 
	61,845

54,877
	- 
	54,877

6,968
	- 
	6,968

$	- 

$	6,905

13,878
	- 
$	13,878

$	(6,963)

The note to the required supplementary information is an integral part of this schedule.

19

TWO RIDGES COMMUNITY DEVELOPMENT DISTRICT NOTES TO SUPPLEMENTARY INFORMATION SEPTEMBER 30, 2025

1.

Budgetary Information
The District is required to establish a budgetary system and an approved annual budget for the General Fund. Annual budgets are adopted on a basis consistent with generally accepted accounting principles for the general fund.
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 following October 1.
Public hearings are conducted to obtain public comments.
Prior to October 1, the budget is legally adopted by the District Board. All budget changes must be approved by the District Board.
The budgets are adopted on a basis consistent with generally accepted accounting principles. Unused appropriation for annually budgeted funds lapse at the end of the year.

b)
c)
d)
e)
f)

approved by the Board. 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.

20

REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH

The Board of Supervisors
Two Ridges Community Development District:
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

issued

by the Comptroller General of the United States, the financial statements of the governmental activities and

the major fund of Two Ridges Community Development District (the

) as of and for the year ended

September 30, 2025, and the related notes to the financial statements, which collectively comprise the

District
Report on Internal Control Over Financial Reporting

April 20, 2026.

In planning and performing our audit of the financial statements, we considered the 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 the District's internal control. Accordingly, we do not express an opinion on the effectiveness of the District's internal control.

A

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

is a deficiency, or a combination of

deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of

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 and 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 grant 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

.

21

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance

control or on compliance. This report is an integral

part

of

an

audit

performed

in

accordance

with

communication is not suitable for any other purpose.

Miami, Florida
April 20, 2026

22

MANAGEMENT LETTER IN ACCORDANCE WITH THE
OF THE STATE OF FLORIDA

The Board of Supervisors
Two Ridges Community Development District:
Report on the Financial Statements
We have audited the financial statements of Two Ridges Community Development District (the
of and for the fiscal year ended September 30, 2025, and have issued our report dated April 20, 2026.
Auditor's Responsibility

) as

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

issued by

the Comptroller General of the United States; and Chapter 10.550, Rules of the Florida Auditor General.
Other Report Requirements

We have issued our Independent Auditor s Reports on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with
.	Disclosures in that report, which is dated April 20, 2026, should be considered in conjunction with this management letter.
Prior Audit Findings
Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. There were no such findings identified.
Official Title and Legal Authority
Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. Such disclosures are made in note 1 to the District
Financial Condition and Management
Section 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, requires that we report the results of our determination as to whether or not the District has met one or more of the conditions described in Section 218.503(1), Florida Statutes, and identification of the specific condition(s) met. In connection with our audit, we determined that the 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(1). and 10.556(8), Rules of the Auditor General, we applied financial condition assessment procedures as of September 30, 2025.  See current year finding below.  It is
District
assessment was based in part on representations made by management and the review of financial information provided by same.

23

Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations.
Specific Information
As required by Section 218.39(3)(a), Florida Statutes, and Section 10.554(1)(i)7, Rules of the Auditor General, the District reported:

a.
b.

There were no employees compensated in the last pay period of the District
There was 1 independent contractor to whom nonemployee compensation was paid in the last month of the District
There was no compensation earned by or awarded to employees, whether paid or accrued, regardless of contingency, for the fiscal year.
Total compensation earned by or awarded to nonemployee independent contractors, whether paid or accrued, regardless of contingency for the fiscal year totaled $11,975.
There were no construction projects with a total cost of at least $65,000 approved by the District that is scheduled to begin on or after October 1 of the fiscal year being reported.
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, is reported on page 19 of the financial statements.
required by Section 218.32(1)(e)5, Florida Statutes, and Section 10.554(1)(i)9, Rules of the Auditor

c.

d.

e.

f.

As

General, the WVID reported:

a.
b.
c.

There were no non-ad valorem special assessments imposed by the District for the fiscal year.
There were no special assessments collected by or on behalf of the District for the fiscal year.

The

outstanding bonds at fiscal year-end are as follows:

Additional Matters
Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not have any such findings.
Purpose of this Letter
Our management letter is intended solely for the information and use of the Florida Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, and the Board of Supervisors and management of the District, and is not intended to be and should not be used by anyone other than these specified parties.

Miami, Florida
April 20, 2026

24

Description

Balance at 9/30/2025

Series 2025, due May 1, 20255

$	10,300,000

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

The Board of Supervisors
Two Ridges Community Development District:
We have examined Two Ridges Community Development District (the specified requirements of Section 218.415, Florida Statutes,

) compliance with the

(specified requirements) during the period October 1, 2025 to September 30, 2025. Management of the District is responsible for the District's compliance with the specified requirements. Our responsibility is to express an opinion on the District's compliance with specified requirements 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 above. 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 requirements.
We are required to be independent and to meet our other ethical responsibilities in accordance with relevant ethical requirements relating to the engagement.
In our opinion, the District complied, in all material respects, with the specified requirements of Section

218.415, Florida Statutes
September 30, 2025.

during the period October 1, 2025 to

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 the District, and is not intended to be and should not be used by anyone other than these specified parties.

Miami, Florida April 20, 2026

25