ACFR - FY2020 5-28-21 FINAL - Flipbook - Page 60
NOTES TO FINANCIAL STATEMENTS
CITY OF EUSTIS, FLORIDA
(Continued)
Note 1 - Description of Funds and Summary of Significant Accounting Policies (Continued)
Assets, Liabilities and Fund Equity (Continued)
The laws of the State regulating tax assessments are also designed to assure a
consistent property valuation method statewide. State Statutes permit municipalities to
levy property taxes at a rate of up to 10 mills. The City’s millage for 2020 was 7.5810
mills. All real and tangible personal property taxes are due and payable on the levy date
of November 1 of each year or as soon thereafter as the assessment roll is certified by
the Lake County Property Appraiser (levy date). Lake County (the "County") mails to
each property owner on the assessment roll a notice of the taxes due and the County
collects the taxes for the City. Taxes may be paid upon receipt of such notice from the
County, with discounts at the rate of four percent (4%) if paid in the month of November,
three percent (3%) if paid in the month of December, two percent (2%) if paid in the
month of January, and one percent (1%) if paid in the month of February. Taxes paid
during the month of March are without discount and all unpaid taxes on real and
tangible property become delinquent on April 1 (the lien date) of the year following the
year in which taxes were assessed. Procedures for collecting delinquent taxes,
including applicable tax certificate sales, are provided for by the Laws of Florida.
Accounts Receivable
Water and Sewer Utility System Fund operating revenues are generally recognized on
the basis of cycle billings rendered monthly. Revenues for services delivered during the
last month of the fiscal year that have not been read by September 30 are accrued
based on meter readings for the applicable consumption taken at the beginning of
October and billed in October The Water and Sewer Utility System uses the allowance
method of bad debt recognition. All receivables are shown net of an allowance for
doubtful accounts of $ 1,279,489 at September 30, 2020. Listed below is the allowance
for doubtful accounts:
Allowance for Doubtful Accounts
General
Fund
$ 100,963
Water & Sewer
Utility System
Fund
$ 1,052,510
Stormwater
Fund
$ 126,016
Total
$ 1,279,489
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Inventories
Inventories are valued at cost using the first-in, first-out method. Inventories of
governmental funds are recorded as expenditures when consumed rather than when
purchased.
■
Prepaid
Certain payments to vendors reflect costs applicable to future accounting periods are
recorded as prepaid items in both government-wide and fund financial statements.
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