FY 2023 ADOPTED BUDGET AS OF 9-22-22 - Flipbook - Page 62
Strategic → CiTy of eusTis long range finanCial Plan
City of Eustis Long Range Financial Plan
A long-range financial plan (LRFP) gives the chance to conduct Strengths, Weaknesses,
Opportunities and financial threats analysis. This critical planning exercise can help to evaluate
potential opportunities and risks - and operate more proactively and efficiently.
Long-term financial planning relates to strategic planning, developing financial policies, capital
improvement planning, and budgeting. Each process fulfills a different combination of planning
purposes.
The Long-Term Financial Plan (LRFP) for Fiscal Year 2022-23 through Fiscal Year 2024-2027 forecasts
the City’s revenues, expenditures, and resulting fund balance for all funds over a five-year planning
period. The LRFP is not intended to predict the future, but rather to create awareness regarding financial
challenges and opportunities that the City could possibly face and inform the City’s financial and
operational decision making to account for such possibilities. Financial planning uses forecasts to
provide insights into future financial capacity so that strategies can be developed to achieve long-term
sustain-ability considering the governmental service objectives and financial challenges.
City of Eustis identifies four major long-range goals:
1. The City Manager offered to include a City Strategic Plan process FY 2022-23 to expand and update
the existing, outdated Strategic Plan. The City of Eustis is growing rapidly, and the City’s vision, mission,
core values, priorities and strategies need to be updated accordingly. The consultant planning is under
Competent and Effective Government Priority, Goal #3 strategy 1 of City’s Strategic Plan.
2. In FY 2020 City Finance Department performed Water Rates Study, and as a result, 2.5% annual
increase adjustment was approved by the City Commission. Due to high inflation of 9.0-9.1% in
June and July 2022 the City management recommended that the City Commission proceed with
unplanned Water and Wastewater Rates study at the beginning of FY 2022-23. The survey needs
to be performed by an independent consulting company, to have an unbiased opinion of the City’s
current revenues, expenditures and capital projects. The consultant will have to determine whether
City’s operating revenues are sufficient to meet City’s expenses, the cost of operations and
maintenance, upcoming or needed replacements, debt service, and to help the City make water &
sewer capital improvement corrections during the implementation plan period. The consultant
planning is under Competent and Effective Government Priority, Goal #3 strategy 1 of the City’s
Strategic Plan.
3. In FY 2022-23 or 2023-2024, staff will recommend that five - year stormwater utility rates be
increased. This recommendation is consistent with a study performed in FY 2020 by the City of
Eustis Finance Department. A potential increase would ensure that the City’s stormwater utility
rates meet City’s annual revenue requirements, support Capital Improvements Plan projects, and
support the current level of national utility rates as well as Lake County local rates. The current
stormwater utility rate is $6 for residential and $12 for commercial. Rates have not changed since
FY 2000. The consultant planning is under Competent and Effective Government Priority, Goal #3
strategy 1 of City’s Strategic Plan.
4. In 2023-2024, the City is planning the Bates Ave Wastewater Plant expansion. This project is
included in FY 2023-2027 Capital Improvements Plan. To meet project requirements, the City is
planning to execute $9,369,685 of the American Rescue Plan funds that the City partially received
last year and will receive the second tranche in October-November, 2022. Due to high inflation,
the City will have to revise project expenditures. The project is included under Competent and
Effective Government Priority, Goal #1 strategy 8 of the City’s Strategic Plan.
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City of Eustis, Florida
Adopted Annual Budget