Adopted Budget Book FY 23-24 Final with TOC links - Flipbook - Page 75
Strategic → CiTy of eusTis long - range finanCial Plan
growing population, the city demonstrates forward-thinking urban planning and infrastructure
development.
The expansion of the Bates Avenue Wastewater Treatment Plant represents a proactive and forwardlooking investment in the city’s infrastructure, environment, and community well-being. It supports
growth, protects the environment, ensures regulatory compliance, and contributes to the long-term
financial stability of the municipality. This project reflects Eustis’ commitment to responsible urban
development and environmental stewardship.
5. Downtown Land Sale or Loan Refinance: In FY 2020, the City issued a CRA balloon five-year
loan for three parcels located in the Downtown area. The intention was to develop a new business
market area comprising a food court, shopping center, hotel, and lakeview apartments. Currently,
the City is in negotiations with potential developers. FY 2023 marks the fourth year of the five-year
loan term, and the City plans to either sell the Downtown land to a new developer or refinance the
loan in FY 2024 if the agreement and contract negotiations are unsuccessful. This project falls under
the Competent and Effective Government Priority, specifically Goal #1 Strategic Priority 9 of the
City’s Strategic Plan - Maintain the character and charm of Eustis.
Land loan refinancing is a financial strategy that City might seek to replace an existing land loan
with a new one, usually with more favorable terms and conditions:
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Lower Interest Rates: With the improved creditworthiness the City can refinance a land loan
with a secure lower interest rate. This can lead to significant long-term savings.
Reduced Monthly Payments: Lower interest rates not only save money over the life of the loan
but also result in reduced monthly payments. This can free up cash flow for other expenses or
investments.
Improved Loan Terms: The City can use land loan refinancing to modify loan terms. For example,
the City can opt for a shorter loan term to pay off the debt more quickly or choose a longer term
to reduce monthly payments.
Access to Equity: If the value of the land has increased since the original loan was secured, the
City may be able to tap into the equity by refinancing. This can provide funds for other investments, or property improvements.
Improved Credit Profile: Successfully refinancing a land loan with better terms can have a positive impact on the City’s credit profile. This can lead to improved credit scores and better
access to credit in the future.
The land loan refinancing can be a valuable financial tool for the City, seeking to improve the loan
terms, access equity, or streamline debt obligations. However, it should be approached with careful
consideration and a clear understanding of the potential benefits and costs involved.
6. Impact Fees Rate Study: In current FY 2023 City is performing the impact fee rate study. Impact
fees haven’t been reviewed for the past 22 years. In FY 2024 the City will implement new impact
fees. A comprehensive impact fees study is a crucial undertaking for a city as it has far-reaching
implications for both the City and the community it serves. Here are some benefits to consider
regarding a City’s impact fees study:
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Revenue Generation: The primary objective of an impact fees study is to assess and quantify
the impact of new developments on a City’s infrastructure and services. By doing so, it determines the appropriate fees that developers should pay to mitigate these impacts. This generates
revenue that can be used to fund infrastructure projects and maintain service levels.
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City of Eustis, Florida
Adopted Budget
73
