ACFR - FY2020 5-28-21 FINAL - Flipbook - Page 56
NOTES TO FINANCIAL STATEMENTS
CITY OF EUSTIS, FLORIDA
Note 1 - Description of Funds and Summary of Significant Accounting Policies
The financial statements of the City of Eustis (the “City”) have been prepared in conformity
with generally accepted accounting principles (GAAP) as applied to government units.
The Governmental Accounting Standards Board (GASB) is the accepted standard-setting
body for establishing governmental accounting and financial reporting principles.
Significant City accounting policies are described below.
A. The Reporting Entity
The City was incorporated in 1883 under the laws of the State of Florida and operates
under the council manager form of government under its charter adopted pursuant to the
"Municipal Home Rule Powers Act" as defined in Florida Statutes, Chapter 166. The
original charter was effective January 1, 1958, and became a law without the Governor's
approval. The City Charter was adopted by laws of Florida Chapter 57-1314 and
amended by ordinance 91-74 and 94-04 adopted by referendum on March 11, 1992 and
April 6, 1994.
The legislative branch of the City is composed of a five (5) member elected Commission,
which includes a Citywide elected Mayor. The City Commission governed by the City
Charter, and by state and local laws and regulations. The City Commission is responsible
for the establishment and adoption of policy. The execution of such policy is the
responsibility of the Commission-appointed City Manager.
■ City of Eustis Community Redevelopment Trust Fund
The accompanying financial statements present the City and its component unit, an entity
for which the City is financially accountable. A blended component unit, although legally
separate, is in substance, part of the City’s operations. The City has only one blended
component unit, the Community Redevelopment Trust Fund (CRA). The City created the
Downtown and East Town Redevelopment Agency in December of 1990 with a base year
value of $36,752,072. In May of 2018 the area was expanded with an additional base
year value of $343,092. The CRA is an incremental tax district established in accordance
with Florida Statutes Chapter 163 to finance and redevelop the City's designated
redevelopment areas. Even though the CRA is a legally separate entity, it is reported as
if it were part of the City because the City commission also serves as the CRA Board.
The Commission reviews and approves the CRA’s budget, provides funding, and
performs all accounting functions for the CRA. The CRA’s services benefit the City by
supporting the City's redevelopment in the designated community redevelopment areas.
The CRA has been presented as a blended component unit classified as a special
revenue fund. Separately issued financial statements for the CRA can be obtained in the
Finance Department of the City. The City has no discretely presented component units.
B. Government-wide and Fund Financial Statements
The government-wide financial statements (i.e., the Statement of Net Position and the
Statement of Activities) report information on all of the non-fiduciary activities of the
primary government and its component units. For the most part, the effect of interfund
activity has been removed from these statements. Governmental activities, which
normally are supported by taxes and intergovernmental revenues, are reported
separately from business-type activities, which rely to a significant extent on fees and
charges for support.
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