ACFR - FY2021 FINAL 5-13-22 USE THIS ONE - Flipbook - Page 42
Financial Analysis of The City’s Funds
Governmental Funds
The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and
balances of usable resources. Such information helps assess the City’s financing requirements.
The City’s most significant governmental fund is the General Fund. The General Fund is the primary operating
fund of the City. At the end of 2021, the total fund balance equaled $11,729,134. Of this amount, $11,323,261
or 96.54% is unassigned and can be used to meet the government’s obligations.
The General Fund has restricted the assigned fund balance for Emergency Contingency to $405,873. The
current year, the total fund balance is increased by $2,250,013. This increase is attributable to property tax
revenue as taxable assessed values have increased along with state sharing revenues.
The City has five other major governmental funds: Street Improvement, Sales Tax Capital Projects, Community
Redevelopment, Building Services, and Stormwater Utility Fund. The fund balance increased for the Street
Improvement Fund by $621,181. Building Services’ fund balance decreased by $82,708, offset by a
Stormwater Utility increase of $77,864. Sales Tax Capital Projects fund balance increased by $554,867. The
fund balance increased in the General Fund by $2,250,013. The Community Redevelopment fund balance
increased by $352,727, which is on the approximate increase level as the prior year. Other Non-Major
governmental funds decreased by $28,953 because $38,963 has been transferred to the General Fund from
the Library Contribution fund to keep library fines and fees accounted for in the General Fund. The net result
was a cumulative increase of $3,744,992 for major and non-major funds.
The Street Improvement Fund was established to account for gas tax revenues brought in from the state and
county to make repairs and maintain streets and roads owned by the City. The most significant expenditures
are grounds, street maintenance, and street lighting. Transportation expenditures of $1,423,843 exceeded gas
tax revenues of $807,661 and transfers in of $885,000 increasing fund balance to $328,509.
The Community Redevelopment Fund was established to revitalize downtown and east town improvements.
The funding source is an incremental increase in property values in these areas. Tax revenue increased by
$45,256 over revenue reported for fiscal 2020. The most significant expenditure related to the Downtown
development and sidewalk rehabilitation is the land purchased in the fiscal year 2020, three blocks right in the
heart of the City of Eustis Downtown. This land purchase increased the total capital outlay in the prior year.
The City has a five-year balloon loan with annual principal and interest payments. In FY 2021, this amount was
$198,148.
The Building Services Fund was established in 2019 to account for resources related to building activity within
the City. Revenue in this fund, generated by permits and fees for construction occurring during the year,
reached $595,820; COVID-19 economic challenges increased this amount by $104,240 compared to the prior
year’s building construction permit collections. Expenditures of $678,528 primarily consist of personal and
contractual services procured to provide plan review and building inspection services; the total fund balance
decreased by $82,708 because of the total increase in spending of $228,538.
The Stormwater Utility Fund accounts for the recurring billing of utility customers within the City. Total
expenditures of $514,006 included Buena Vista Dr., Exeter St., and stormwater drainage improvements. The
fund’s most significant non-capital expenditures were street sweeping and drainage maintenance. The fund
balance increased by $77,864, reflecting a current fund balance of $740,513.
The Sales Tax Capital Projects Fund accounts for projects authorized by the one-cent sales tax assessed on
retail sales. The more significant capital expenditures during 2021 included: Ferran Park Improvements, Ardice
ground storage tank assembling, Ardice tower hydro tank installation, Umatilla interconnection additions,
Haselton generator replacement, and Eleven Oaks new subdivision water lines development and installation,
as well as Eustis Mobility Plan execution along street resurfacing. Overall, the fund balance increased by
$554,867, with expenditures decreasing by $1,920,867 compared to the prior year providing an ending fund
balance of $1,427,062.
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