ACFR - FY2021 FINAL 5-13-22 USE THIS ONE - Flipbook - Page 68
NOTES TO FINANCIAL STATEMENTS
CITY OF EUSTIS, FLORIDA
(Continued)
Note 1 - Description of Funds and Summary of Significant Accounting Policies (Continued)
D. Assets, Liabilities, and Fund Equity
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Cash, Cash Equivalents, and Investments
Cash and cash equivalents include cash on hand, demand deposits, and short-term
investments with an original maturity date within three months of the date acquired by
the government. Governmental fund investments, proprietary fund investments, and
pension fund investments are reported at fair market value by GASB 72, Fair Value
Measurement and Application. Accordingly, the change in fair value is recognized as
an increase or decrease in investment assets and investment income.
Except for the pension fund investments, the City's investments include certificates of
deposit and U.S. Treasury notes with maturities at purchase more significant than one
year. The certificates of deposit are recorded at cost plus accrued interest. There was
no concentration of credit risk on September 30, 2021.
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Receivables
Property Taxes Receivable
Under Florida law, the assessment of all properties and the collection of all county,
municipal, and school board property taxes are consolidated in the offices of the Lake
County Property Appraiser and Lake County Tax Collector.
The State’s laws regulating tax assessments are also designed to assure a consistent
property valuation method statewide. State Statutes permit municipalities to levy
property taxes at a rate of up to 10 mills. The City’s millage for 2021 was 7.5810 mills.
All real and tangible personal property taxes are due and payable on the levy date of
November 1 of each year or as soon as the assessment roll is certified by the Lake
County Property Appraiser (levy date). Lake County (the "County") mails to each
property owner on the assessment roll a notice of the taxes due, and the County collects
the taxes for the City. Taxes may be paid upon receipt of such notice from the County,
with discounts at the rate of four percent (4%) if paid in November, three percent (3%)
if paid in December, two percent (2%) if paid in January, and one percent (1%) if paid
in February. Taxes paid during March are without discount, and all unpaid taxes on real
and tangible property become delinquent on April 1 (the lien date) of the year following
the year in which taxes were assessed. Procedures for collecting delinquent taxes,
including applicable tax certificate sales, are provided for by the Laws of Florida.
Accounts Receivable
The operating revenues of the Water and Sewer Utility System Fund are generally
recognized based on monthly cycle billings. Revenues for services delivered during the
last month of the fiscal year that has not been read by September 30 are accrued based
on meter readings for the applicable consumption taken at the beginning of October
and billed in October. The Water and Sewer Utility System uses the allowance method
of bad debt recognition. All receivables are shown net of an allowance for accounts of
$ 1,353,081 on September 30, 2021.
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