ACFR - FY2021 FINAL 5-13-22 USE THIS ONE - Flipbook - Page 31
Management’s Discussion and Analysis
The City of Eustis discussion and analysis is designed to provide an objective and accessible read overview
of the City’s financial activities focusing on significant financial achievements and issues, as well as identifying
material deviations from the adopted budget, changes in the City’s financial position (its ability to address the
current and subsequent year challenges), and individual fund issues or concerns.
The Management’s Discussion and Analysis (MD&A) focuses on the current year’s activities, resulting in
changes and currently known facts. The information contained within the MD&A should be considered only as
a part of the City’s Annual Financial Report.
As management of the City of Eustis, we offer readers of the City’s financial statement this narrative overview
and analysis of the City’s financial activities for the fiscal year ended September 30, 2021. We encourage
readers to consider the information presented in the City’s financial statements.
Financial Highlights
The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of
resources at the close of the fiscal year 2021 by $121,757,263 (net position). Of this amount, $10,665,719
(unrestricted net position) may be used to meet the government’s ongoing obligation to citizens and creditors.
The City’s net position increase is $6,673,867, of which governmental activities net position increase is
$4,438,382, and proprietary funds net position increase is $2,235,485.
On September 30, 2021, the City’s governmental funds reported a combined ending fund balance of
$18,357,522, an increase from the total fund balance of $3,744,992 from the prior year. Contributing to the
increase in fund balance was the growth of revenue due to lifting COVID-19 restrictions and a decrease in
operating expenditures in the General Fund. The increase in net revenues is in Street Improvements,
Community Redevelopment, Stormwater Utilities, Sales Tax Capital Projects, Law Enforcement Trust, and
Impact Fee funds; the decrease in current year operating expenditures are in the Building Services, Law
Enforcement Education, Economic Development, and Library Contribution funds.
Compared with the previous fiscal year, the City’s capital assets decreased by $841,132, with business-type
activities contributing to a decrease in capital assets of $210,766. Governmental activities are responsible for
a $630,366 reduction. Most of the decrease in government-type activities is due to furniture and equipment
disposals. $1,115,203 of governmental improvements have been made over the fiscal year 2021, such as
Commission Chamber complete renovation, Ferran Park - phase 4 finalization, Eustis Mobility Plan additions,
Police department various improvements, Fire Station 22 renovations, Buena Vista Dr., and Exeter St.
stormwater drainage reconstructions, CRA street rehabilitations, and tree planting, and Lake Eustis seawall
improvements. $2,376,217 of business-type improvements have been made: Haselton storage tank
rehabilitation reclaimed water improvements, Main WWTP extensions, Ardice tower hydro tank and ground
storage installations, Umatilla interconnection additions, Woodward sewer system, and Sprayfield pumps
transfers. At the same time, business activities include purchasing water meter replacements and chemical
feed systems, and water pump service equipment for the Water and Wastewater departments. In addition, as
a part of business-type activities, Sprayfield land has been sold in the fiscal year 2021 at the price of
$1,061,664, with a profit of $674,502.
The City’s total long-term debt decreased by $1,478,884. Governmental long-term debt decreased by
$361,422, and business-type activities’ long-term debt decreased by $1,117,462. The decrease in
governmental and business-type activities is due to regularly scheduled debt service payments.
21