ACFR - FY2020 5-28-21 FINAL - Flipbook - Page 24
Management’s Discussion and Analysis
As management of the City of Eustis, we offer readers of the City’s financial statement this narrative overview
and analysis of the financial activities of the City for the fiscal year ended September 30, 2020. We encourage
readers to consider the information presented here, in conjunction with additional information that is furnished
in the City’s financial statements.
Financial Highlights
The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of
resources at the close of the fiscal year 2020 by $115,083,396 (net position). Of this amount, $8,655,478
(unrestricted net position) may be used to meet the government’s ongoing obligation to citizens and creditors.
The City’s net position increased by $1,243,972 of which governmental activities net position increased by
$596,080 and proprietary funds net position increased by $647,892.
At September 30, 2020, the City’s governmental funds reported combined ending fund balance of $14,612,530,
which is a decrease of total fund balance $694,862 from prior year. Contributing to the decrease in fund balance
were reduction in revenue due to COVID-19 and increase in operating expenditures in the General Fund. The
decrease is in net revenues is in Street Improvements, Stormwater, Sales Tax, Law Enforcement Trust, Impact
Fee and Public Library Trust funds; the increase in current year operating expenditures is in the Public Safety,
Finance & Administration, Legal and Development Services funds.
The City’s capital assets increased overall by $3,339,770 with business-type activities contributing a decrease
in capital assets of $853,182 and governmental activities responsible for over $4 million increase. The majority
of the increase in the government-type activities is due to the Community Redevelopment Trust Fund land
purchasing: $3,000,000. Variety of Improvements have been made over the fiscal year 2020 such as Palmetto
Point, Hazelton Dog Park, Ferran Park and Ardice / Ruleme Improvements. Several vehicle replacements and
equipment for Police, Fire and Public Works Departments have been purchased as well. While business
activities include purchase of replacement laptops and equipment for Water and Wastewater departments, two
vehicle replacements for Wastewater department, specialized machinery for Public Works and various
Infrastructure Improvements to City streets.
The City’s total long-term debt increased by $1,485,991. Governmental long-term debt increased by
$2,752,525 and business-type activities long-term debt decreased by $1,266,534. The increase in
governmental activities is a due to $3,000,000 CRA land purchase project and business type activities
decrease is due to regularly scheduled debt service payments.
Overview of the Financial Statements
The discussion and analysis are intended to serve as an introduction to the City’s basic financial statements.
The City’s basic financial statements consist of three components:
1. Government-wide financial statements.
2. Fund financial statements.
3. Notes to the financial statements.
The basic financial statement present two different views of the City through the presentation of governmentwide statements and fund financial statements. In addition to the basic financial statements, this report contains
other supplemental information that will enhance the reader’s understanding of the financial condition of the
City of Eustis.
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