ACFR FY 2023 Final - Flipbook - Page 80
FINANCIAL SECTION
City of Eustis, Florida
NOTES TO FINANCIAL STATEMENTS
Note 1 - Description of Funds and Summary of Signiocant Accounting Policies (Continued)
Restricted: This classiocation 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 classioed Fines and Forfeitures are
restricted because State Statute limits their use for police investigative expendituresÿ
Redevelopment funds are restricted to the City9s designated area and are exclusive to that area aloneÿ
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 specioc
developer agreements obligating funds to a particular useÿ
Committed: This classiocation includes amounts that can be used only for specioc purposes under
constraints imposed by formal action of the City Commissionÿ These amounts cannot be used for
any other purpose unless the City Commission removes or changes the specioed use by taking the
same type of action (ordinance) employed when the funds were initially committed. This classiocation also includes contractual obligations to the extent that existing resources have been committed
explicitly for use in satisfying those contractual requirementsÿ
Assigned: This classiocation includes amounts constrained by the City9s intent to be used for a
specioc 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 processÿ This classiocation also includes monies allocated to future oscal years to weather the current economic crisis.
Unassigned: This classiocation includes prepaid expenses, inventory, and the residual fund balance
for the General Fund and the amount established for minimum Fund balance, representing the portion
of the General Fund balance established by Resolution 11-59, as amended as resolutions neededÿ
E. Revenues, Expenditures, Expenses, and Leases
ï
Interest Income
Interest income resulting from cash pooling in a master bank account is allocated to the respective
fund based on its proportionate share of investment fundsÿ
ï
Capital Contributions
Subsidies to proprietary funds, which onance either capital or current operations, are recorded as
non-operating revenue when earnedÿ The City9s policy requires the restriction of all money collected
as impact feesÿ These fees represent a capacity charge for the proportionate share of the cost of
expanding, separating, or constructing new additions to the water and sewer systemÿ The City is
obligated to expend these funds only to expand the system9s capacityÿ
Deposits received that reserve capacity in the City9s future water and sewer facilities are recorded
as a liability upon receiptÿ After completion of all legal requirements as stipulated by the City9s
Water and Sewer Treatment policy, the money is recorded as non-operating revenue in the year
the requirements are metÿ The City has pledged impact fees to meet expansion bond debt service
requirements, and any additional revenue (by bond covenant) is set aside as a restriction of net
position to be used for either further system expansion projects or principal repaymentÿ
ï
80
Interfund Transactions
Annual Comprehensive Financial Report | September 30, 2023
Back to TOC
