ACFR - FY2020 5-28-21 FINAL - Flipbook - Page 65
NOTES TO FINANCIAL STATEMENTS
CITY OF EUSTIS, FLORIDA
(Continued)
Note 1 - Description of Funds and Summary of Significant Accounting Policies (Continued)
Revenues, Expenditures, and Expenses (Continued)
Deposits received which reserve capacity in the City’s future water and sewer facilities are
recorded as a liability upon receipt. After completion of all legal requirements as stipulated
by the City’s water and sewer treatment policy, the moneys are recorded as non-operating
revenue in the year the requirements are met. The City has pledged impact fees to meet
expansion bond debt service requirements, and any additional revenue (by bond covenant)
is set aside as a restriction of net position to be used for either additional system expansion
projects or principal repayment.
■ Interfund Transactions
Interfund services provided and used are accounted for as revenues, expenditures or
expenses. Transactions that constitute reimbursements to a fund for
expenditures/expenses initially made from it that are properly applicable to another fund,
are recorded as expenditures/ expenses in the fund that is reimbursed. All interfund
transactions are reported as transfers (see Note 11).
COVID-19 Revenue Volatility
The US economy in 2020 has been impacted by Coronavirus pandemic COVID -19.
During the year, numerous COVID related expenditures were added to municipal budget.
As a result of economic downturns, the pandemic has reduced local revenues. The Federal
Cares Act was provided funds for Public Safety departments, public defense and public
information equipment; many of purchased items provided safety elements to the public
and staff of the City during productions of major events and the maintenance of a clean
environment within the buildings and parks throughout the City. The need to upgrade some
specific public safety equipment was also found to be an immediate need as well as security
items to protect people and staff as they performed work. Furthermore, local government
is at the forefront of the response to the pandemic in City and will likely need to increase
spending to provide crucial public health services and help local communities adapt to
social distancing guidelines. Pandemic revenue effects will continue to effect revenue in
the next fiscal year, and the next Fiscal Year City will adjusted the budget accordingly.
Note 2 - Stewardship, Compliance and Accountability
Budgetary Requirements
The following procedures used to establish the budgetary data reflected in the financial
statements:
1) By August of each year, the City Manager submits to the City Commission a proposed
operating budget for the fiscal year commencing the following October 1.
2) Two public hearings held to obtain taxpayer comments.
3) Prior to October 1, the budget is legally enacted through the passage of a resolution.
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