ACFR - FY2020 5-28-21 FINAL - Flipbook - Page 59
NOTES TO FINANCIAL STATEMENTS
CITY OF EUSTIS, FLORIDA
(Continued)
Note 1 - Description of Funds and Summary of Significant Accounting Policies (Continued
Additionally, the City reports the following non-major fund types:
■
The Special Revenue Funds account for the proceeds of specific revenue sources that
are legally restricted to expenditure for specified purposes.
■
The Pension Trust Funds account for the activities of the City’s Police Officers’ and
Firefighters’ Pension Plan, which accumulates resources for pension benefit payments
to qualified police and fire employees. They are excluded from the government-wide
financial statements because they are fiduciary in nature and do not represent
resources available for operations.
Proprietary funds distinguish operating revenues and expenses from non-operating
revenues and expenses. Operating revenues and expenses generally result from providing
services and producing and delivering goods in connection with a proprietary fund’s
principal ongoing operations. The principal operating revenues of the City water and sewer
utility system fund is charges to customers for sales and services. Operating expenses for
enterprise funds include the cost of sales and services, administrative expenses, and
depreciation on capital assets. All revenues and expenses not meeting this definition are
reported as non-operating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the City’s policy
to use restricted resources first, and then unrestricted resources, as they are needed for
their intended purposes.
D. Assets, Liabilities and Fund Equity
■
Cash, Cash Equivalents, and Investments
Cash and cash equivalents include cash on hand, demand deposits, as well as shortterm investments with an original maturity date within three months of the date acquired
by the government. Governmental fund investments, proprietary fund investments, and
pension fund investments are reported at fair market value in accordance with GASB
No. 72, Fair Value Measurement and Application. Accordingly, the change in fair value
is recognized as an increase or decrease to investment assets and investment income.
With exception of the pension fund investments, the City's investments include
certificates of deposit and U.S. Treasury notes with maturities at purchase of greater
than one year. The certificates of deposit are recorded at cost plus accrued interest.
There was no concentration of credit risk at September 30, 2020.
■
Receivables
Property Taxes Receivable
Under Florida law, the assessment of all properties and the collection of all county,
municipal and school board property taxes are consolidated in the offices of the Lake
County Property Appraiser and Lake County Tax Collector.
42
