ACFR FY 2022 FINAL BOOK - Flipbook - Page 76
FINANCIAL SECTION
City of Eustis, Florida
NOTES TO FINANCIAL STATEMENTS
Note 1 - Description of Funds and Summary of Significant Accounting Policies (Continued)
prepaid expenses and inventory� The City has donations to the Library Trust Fund, maintaining the
principal� Only the interest earnings may be used�
Restricted: This classification includes amounts for which constraints have been placed on the
use of the resources either (a) externally imposed by creditors (such as through a debt covenant),
grantors, contributors, or laws or regulations of other governments, or (b) imposed by law through
constitutional provisions or enabling legislation� The City has classified Fines and Forfeitures are
restricted because State Statute limits their use for police investigative expenditures�
The redevelopment funds are restricted to a City’s designated area and are exclusive to that area
alone� Infrastructure projects are restricted by State Statute and County laws and are legally segregated to fund infrastructure improvements� Other funds are restricted to library operations and
other specific developer agreements obligating funds to a particular use�
Committed: This classification includes amounts that can be used only for specific purposes under
constraints imposed by formal action of the City Commission� These amounts cannot be used for
any other purpose unless the City Commission removes or changes the specified use by taking the
same type of action (ordinance) employed when the funds were initially committed� This classification also includes contractual obligations to the extent that existing resources have been committed
explicitly for use in satisfying those contractual requirements�
Assigned: This classification includes amounts constrained by the City’s intent to be used for a
specific purpose but is neither restricted nor committed� The City Commission can express this
intent or delegate this responsibility to the City manager through the budgetary process� This classification also includes monies allocated to future fiscal years to weather the current economic crisis�
Unassigned: This classification includes prepaid expenses, inventory, and the residual fund balance
for the General Fund and the amount established for minimum Funding, representing the portion
of the General Fund balance established by Resolution 11-59, as amended throughout the year by
resolutions needed�
E. Revenues, Expenditures, Expenses, and Leases
●
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
76
Annual Comprehensive Financial Report | September 30, 2022