ACFR - FY2020 5-28-21 FINAL - Flipbook - Page 64
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)
Restricted: This classification 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 classified Fines and Forfeitures as being restricted because
their use is restricted by State Statute for police investigative expenditures. The
redevelopment funds are restricted to a designated area of the City and as such are
exclusive to that area alone. Infrastructure Projects are restricted by State Statute and
County laws and are legally segregated for funding of infrastructure improvements.
Other funds are restricted to library operations as well as other specific developer
agreements obligating funds to a specific use.
Committed: This classification includes amounts that can be used only for specific
purposes pursuant to constraints imposed by formal action of the City Commission.
These amounts cannot be used for any other purpose unless the City Commission
removes or changes the specified use by taking the same type of action (ordinance)
that was employed when the funds were initially committed. This classification also
includes contractual obligations to the extent that existing resources have been
specifically committed for use in satisfying those contractual requirements.
Assigned: This classification includes amounts that are constrained by the City’s
intent to be used for a specific purpose but are neither restricted nor committed. This
intent can be expressed by the City Commission or through the City Commission
delegating this responsibility to the City manager through the budgetary process. This
classification also includes monies allocated to future budgetary years to assist in
weathering the current economic crisis.
Unassigned: This classification includes the residual fund balance for the General
Fund and the amount established for Minimum Funding, which represents the portion
of the General Fund balance that has been established by Resolution 11-59, as,
amended throughout the year by resolutions as needed.
E. Revenues, Expenditures, and Expenses
■
■
Interest Income
Interest income resulting from pooling of cash in a master bank account is allocated to
the respective fund based on its proportionate share.
Capital Contributions
Subsidies to proprietary funds, which finance either capital or current operations, are
recorded as non-operating revenue when earned. The City’s policy requires restriction
of all moneys collected as impact fees. These fees represent a capacity charge for the
proportionate share of the cost of expanding, over sizing, separating or constructing
new additions to the water and sewer system. The City is obligated to expend these
funds only to provide expanded capacity to the system.
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