ACFR FY 2023 Final - Flipbook - Page 79
FINANCIAL SECTION
City of Eustis, Florida
NOTES TO FINANCIAL STATEMENTS
Note 1 - Description of Funds and Summary of Signiocant Accounting Policies (Continued)
deferred inflows of resources related to pension plans, pension expense, information about the net
oduciary position, and additions to/deductions from the net oduciary position have been determined
on the same basis as the plans report them, for this purpose, beneot payments (including refunds of
employee contributions) are recognized when due and payable by the beneot terms. Investments
are reported at fair valueÿ The City allocated the net pension liability, deferred outflows for pensions,
deferred inflows for pensions, and pension expense to funds and functions/activities based on their
respective contributions made to the pension plans during the measurement yearÿ
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Deferred Outflows and Inflows of Resources
In addition to assets, the Statement of Net position reports a separate section for deferred outflows of
resources. This individual onancial statement element, deferred outflows of resources, represents a
consumption of net assets that applies to a future period(s) and will not be recognized as an outflow
of resources (expense/expenditure) until that timeÿ The deferred outflows of resources reported in
the City9s Statement of Net position represents differences between expected and actual economic
experience, changes in actuarial assumptions, the net difference between projected and actual
earnings on investments, changes in the proportion and differences between the City9s contributions
and proportionate share of contributions, and the City9s contributions after the measurement date,
relating to the City9s deoned beneot pension plans. The City also has deferred outflows of resources
due to the implementation of GASb 75 related to the OpEb planÿ These amounts will be recognized
as expenses in future yearsÿ
In addition to liabilities, the Statement of Net position reports a separate section for deferred inflows
of resources. This individual onancial statement element, deferred inflows of resources, represent
an acquisition of net assets that applies to future period(s), and will not be recognized as an inflow of
resources (revenue) until that time the deferred inflows of resources reported in the City9s Statement
of Net position represent the difference between expected and actual economic experience and
changes in the proportion and differences between the City9s contributions and proportionate share
of contributions relating to the City9s deoned beneot pension plans. The City also has deferred
inflows of resources due to the implementation of GASb 75 related to the OpEb planÿ These amounts
will be recognized as reductions in expenses in future yearsÿ
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Fund Balances
The City adopted a policy that will set aside funds for maintaining sufocient working capital. This is
approximately equal to two to three months of operating expensesÿ The 25% balance set aside will
be calculated as a percentage of ordinary operating expenses exclusive of debt service, capital
outlay, and other onancing uses. This amount is required to cover short-term cash flow variations,
economic downturns, and emergenciesÿ The City Commission will also approve an amount set aside
for contingencies such as catastrophic events or unforeseen losses through insurance or litigation
as part of the annual budget processÿ
The City has classioed governmental fund balances as follows:
Non-Spendable: This classiocation includes amounts that cannot be spent because they are either (a)
not in spendable form or (b) are legally or contractually required to be maintained intact, it includes
prepaid expenses and inventoryÿ The City has donations to the Library Trust Fund, requiring maintaining the principalÿ Only the interest earnings may be usedÿ
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Annual Comprehensive Financial Report | September 30, 2023
79
