ACFR - FY2021 FINAL 5-13-22 USE THIS ONE - Flipbook - Page 73
NOTES TO FINANCIAL STATEMENTS
CITY OF EUSTIS, FLORIDA
(Continued)
Note 1 - Description of Funds and Summary of Significant Accounting Policies (Continued)
Revenues, Expenditures, and Expenses (Continued)
A. Revenues, Expenditures, and Expenses
■
Interest Income
Interest income resulting from cash pooling in a master bank account is allocated to the
respective fund based on its proportionate share.
■
Capital Contributions
Subsidies to proprietary funds, which finance either capital or current operations, are
recorded as non-operating revenue when earned. The City’s policy requires the
restriction of all money collected as impact fees. These fees represent a capacity
charge for the proportionate share of the cost of expanding, oversizing, separating, or
constructing new additions to the water and sewer system. The City is obligated to
expend these funds only to expand the system’s capacity.
Deposits received that reserve capacity in the City’s future water and sewer facilities are
recorded as a liability upon receipt. After completion of all legal requirements as stipulated
by the City’s water and sewer treatment policy, the money is recorded as non-operating
revenue in the year the requirements are met. The City has pledged impact fees to meet
expansion bond debt service requirements, and any additional revenue (by bond covenant)
is set aside as a restriction of net position to be used for either further system
expansion projects or principal repayment.
■ Interfund Transactions
Interfund services provided and used are accounted for as revenues, expenditures, or
expenses. Transactions that constitute reimbursements to a fund for
expenditures/expenses initially made from it that are adequately applicable to another fund
are recorded as expenditures/ expenses in the fund reimbursed. All interfund transactions
are reported as transfers (see Note 11).
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