FY 2023 ADOPTED BUDGET AS OF 9-22-22 - Flipbook - Page 82
Budget-In-Brief → Taxes
The City shall transfer a portion of the budgeted operating revenue in the Water and Sewer Utility
Revenue Fund to the General Fund as a return on the City’s investment in the utility infrastructure
and for administrative purposes.
Fund Balance Policy
The City has established a Fund Balance Policy in accordance with Governmental Accounting
Standards Board Statement No. 54, Fund Balance Reporting and Governmental Fund Type
Definitions as adopted in Resolution 11-2292. Fund Balances have been designated as nonspendable, restricted, committed, assigned, and unassigned fund amounts. Actual fund
balances and classifications are determined annually in the preparation of the Comprehensive
Annual Financial Report (ACFR).
A 90-day reserve balance in the General Fund will be calculated as an amount of budgeted operating expenses not inclusive of debt service, capital outlay, and transfers out. This reserve will be
used to cover short-term cash flow variations, economic downturns, and emergencies.
Fund balance reserves for the Water & Sewer Utility Revenue Fund are calculated as 90 days of
budgeted water and sewer operating expenses. This reserve will be used to cover short-term cash
flow variations, economic downturns, and contingencies.
The projected fund balance for budgetary purposes will be calculated using the actual fund balance
from the prior year’s ACFR, current year budget amendments, and a projection of what the budgeted
fund balance would be if the current year’s budget is fully consumed.
Investment Policy
The City will comply with all applicable Florida Statutes guiding investment policies of local
governments and the current Investment Policy of the City of Eustis.
The investment objectives are: 1) protection of the City’s funds 2) liquidity to meet operating
requirements, 3) maximize investment return while minimizing investment risk, and 4) setting
procedures to control risks and diversify investments.
Authorized investment instruments are detailed in the policy document and consist of an array of
conservative instruments including government-backed securities, certain bankers’ acceptances,
commercial paper, and CD and savings accounts in U.S. banks.
Capital Planning & Budget
Capital Planning refers to the process of identifying and prioritizing City capital needs for determining which capital projects should be funded in the capital budget as resources become
available. Citywide planning is guided by the City’s Strategic Plan and City Mission, Vision, and
Core Values. These plans provide long-term direction for the growth and development of the City.
The City’s Annual Budget has two primary components: The Operating Budget and the Capital
Budget. City Commission holds public hearings on the proposed operating and capital budgets and
then approves the budgets in September for the following fiscal year.
The Capital Budget funds major improvements to City facilities and infrastructure, and is based
on the first year of needs in the five-year FY2022-26 Capital Improvements Program Plan (CIP),
it is also included anticipated operating costs associated with significant capital maintenance and
improvements, for example, are Community Center landscaping and Floating Dock repairs in FY
2022-23.
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City of Eustis, Florida
Adopted Annual Budget