ACFR - FY2021 FINAL 5-13-22 USE THIS ONE - Flipbook - Page 112
NOTES TO FINANCIAL STATEMENTS
CITY OF EUSTIS, FLORIDA
(Continued)
Note 10 - Long-Term Debt (Continued)
Provisions of the loan mandate that rates of the water and sewer system will be enough
to provide coverage of 1.15 times the sum of the semiannual payments, utilities will not
provide any free service; all connections are mandatory and consistent with applicable
laws. The government shall not allow any competing services within the city limits and the
government must use its best efforts to collect all rates, fees, and other charges.
Water and Sewer Revenue Bonds, Series 2016
On November 3, 2016, the City issued $7,680,000 in Water and Sewer Revenue Bonds to
finance the costs of certain improvements to the City’s combined water and sewer systems.
Principal and interest for 2021 were $553,256, equal to 9.29% of the current year’s pledged
revenue. The remaining outstanding principal and interest will be $8,279,894. The bond
reflects a fixed interest rate of 3.21%, with payments due annually.
Note Payable
The City contracted with United Southern Bank to provide financing for $1,805,500 over
five years. The funding aims to acquire various water and sewer vehicles and equipment.
The five-year financing agreement is at a fixed interest rate of 1.79%, with the value of the
equipment to be used as the collateral to support the loan. Principal and interest for the
current year are $374,027.
Note 11 - Interfund Transactions
Interfund transfers usually are recurring and approved by City Commission during the
budget process or by separate resolutions. Transfers from the water and sewer system
fund to the general fund support general government operations. Other transfers are for
debt service requirements and City grant matches. Greenwood cemetery transfer is the
transfer from General Fund for the cemetery lot sales. In FY 2021, water and sewer impact
fees were waived for the new residential construction to stimulate City’s business
development. The adequate amount of impact fees was transferred from Water and Sewer
fund to Water and Sewer Impact Fee funds.
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