Adopted Budget Book FY 23-24 Final with TOC links - Flipbook - Page 112
Budget-In-Brief → buDgeT oVerView
The City will balance its budget year so that each fund’s anticipated revenues equal the anticipated
expenditures. The utilization of the existing fund balance as a revenue source to meet current needs
will be monitored.
The City will monitor budget to actual activity to ensure compliance with budgetary policy.
Revenue Policies:
The City shall maintain, as permitted by State law, a diversified revenue base to offset the effects of
short-term fluctuations in any one revenue source and reduce reliance on any one revenue source.
This City shall estimate its annual revenues as part of the budgetary process through a conservative,
objective, and analytical process. It will review and evaluate new revenue sources to fund operating
expenditures consistent with City Commission’s goals and objectives.
The City shall establish all user charges and fees to recover all or a portion of the cost of providing
a service. The City shall review user fees/charges periodically to ensure they are fair and equitable
to all users.
The City shall transfer a portion of the budgeted operating revenue in the Water and Sewer Utility
Revenue Fund to the General Fund as a return on the City’s investment in the utility infrastructure
and for administrative purposes.
Fund Balance Policy
The City has established a Fund Balance Policy in accordance with Governmental Accounting
Standards Board Statement No. 54, Fund Balance Reporting and Governmental Fund Type
Definitions as adopted in Resolution 11-2292. Fund Balances have been designated as non-spendable, restricted, committed, assigned, and unassigned fund amounts. Actual fund balances and
classifications are determined annually in the preparation of the Comprehensive Annual Financial
Report (ACFR).
A 90-day reserve balance in the General Fund will be calculated as an amount of budgeted operating expenses not inclusive of debt service, capital outlay, and transfers out. This reserve will be
used to cover short-term cash flow variations, economic downturns, and emergencies.
Fund balance reserves for the Water & Sewer Utility Revenue Fund are calculated as 90 days of
budgeted water and sewer operating expenses. This reserve will be used to cover short-term cash
flow variations, economic downturns, and contingencies.
The projected fund balance for budgetary purposes will be calculated using the actual fund balance
from the prior year’s ACFR, current year budget amendments, and a projection of what the budgeted
fund balance would be if the current year’s budget is fully consumed.
Investment Policy
The City will comply with all applicable Florida Statutes guiding investment policies of local governments and the current Investment Policy of the City of Eustis.
The investment objectives are: 1) protection of the City’s funds 2) liquidity to meet operating requirements, 3) maximize investment return while minimizing investment risk, and 4) setting procedures
to control risks and diversify investments.
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City of Eustis, Florida
Adopted Budget
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