FY 2023 ADOPTED BUDGET AS OF 9-22-22 - Flipbook - Page 94
Budget-In-Brief → Debt
State Revolving Fund Loans 350300 and 350302 - These loan agreements with the Florida Department
of Environmental Protection are secured by water and sewer annual revenue after operations
and maintenance and senior debt obligations. The original loan amounts totaled $10,211,163 and
were used for wastewater plant upgrades in compliance with Environmental Protection
Agency nitrification regu-lations. The interest rates range from 1.29% to 3.21% and payment of
principal and interest will be complete in the Fiscal Year 2032. Debt service payments are being
made from the City’s Sewer Impact Trust Fund. The remaining balance for notes payables SRF 350300
and 350302, at the end of FY 2021 was $3,173,359. Bond rating is at the lowest risk investments: AAA
by Standard & Poor’s.
Series 2016 Water & Sewer Utility Revenue Bond - This approximately $8,184,691 issue is a funding
source for the City’s FY17 through FY21 Water and Sewer Capital Improvement Plan implemented in
October of 2016. It is secured by utility system revenues with an interest rate of 3.21% and a maturity
date of October 2036. Debt service payments are being made from the City’s Water and Sewer Revenue
Fund. Principal balance at the end of FY 2021: $6,676,704 after principal and interest payments. Bond
rating is at the lowest risk investments: AAA by Standard & Poor’s.
Series 2017 Water & Sewer Revenue Note - This approximately $1.8 Million banknote is one of the funding
sources for the City’s FY17 through FY21 Water and Sewer Capital Improvement Plan implemented in
October of 2016. It is secured in a subordinate position by utility system revenues with an interest rate of
1.79% and a maturity date of April 2022. Debt service payments are being made from the City’s Water
and Sewer Revenue Fund. Principal balance at the end of FY 2021: it was paid off in April of FY 2022:
$361,100.
CRA Loan 2020 - In September of FY 2020, City contracted with USB bank to provide financing in the
amount of $3,000,000 for CRA -Community Redevelopment Trust Fund projected three large land
blocks, located at the City of Eustis Downtown purchase. The Five-Year financing balloon loan is at a
fixed interest rate of 2.88%. Principal and interest payments of $10,004 are paid monthly, commencing
October 2020. The total principal and interest debt service payments in the FY 2022-23 will be $120,051.
Legal Debt Limits
The City of Eustis currently has no legal debt limitations imposed on its ability to borrow funds.
Capital Improvement Policy
The City will develop multi-year business plans every five years for capital improvements. These plans
will be updated as necessary and used for future annual and five-year capital budgets.
The five-year Capital Improvement Plan will be incorporated into the City’s Comprehensive Plan.
In the development of the Capital Improvement Projects, the City will review the operational impact of
each project.
Capital Asset Policy
Purchased and constructed capital assets are reported at cost or estimated historical cost. Capital
assets include property, plant, equipment, and infrastructure assets (e.g., roads,
bridges, sidewalks, and similar items. They are reported in the applicable governmental or
business-type activ-ities columns in the government-wide financial statements. Property, plant,
and equipment with initial, individual costs equal to or exceeding $5,000 and estimated useful lives
of over one year are recorded as capital assets. Roads, bridges, and sidewalks are capitalized
when their initial costs equal or exceed $25,000 and possess estimated useful lives of
more than one year. Purchased or constructed, capital assets are recorded at historical or
estimated historical costs. Donated capital assets are recorded at the acquisition value at the
date of donation.
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City of Eustis, Florida
Adopted Annual Budget