Adopted Budget Book FY 23-24 Final with TOC links - Flipbook - Page 113
Budget-In-Brief → buDgeT oVerView
Authorized investment instruments are detailed in the policy document and consist of an array of
conservative instruments including government-backed securities, certain bankers’ acceptances,
commercial paper, and CD and savings accounts in U.S. banks.
Capital Planning & Budget
Capital Planning refers to the process of identifying and prioritizing City capital needs for determining which capital projects should be funded in the capital budget as resources become available. Citywide planning is guided by the City’s Strategic Plan and City Mission, Vision, and Core
Values. These plans provide long-term direction for the growth and development of the City.
The City’s Annual Budget has two primary components: The Operating Budget and the Capital
Budget. City Commission holds public hearings on the proposed operating and capital budgets and
then approves the budgets in September for the following fiscal year.
The Capital Budget funds major improvements to City facilities and infrastructure, and is based on
the first year of needs in the five-year FY 2024-2028 Capital Improvements Program Plan (CIP), it
is also included anticipated operating costs associated with significant capital maintenance and
improvements, for example, are Community Center landscaping and Floating Dock repairs in FY
2023-24.
The purpose of the CIP is to systematically plan, schedule and finance capital projects to ensure
cost-effectiveness as well as conformance with established policies. The CIP is a five-year plan
organized into the same functional groupings used for the operating programs. The ClP will reflect
a balance between capital replacement projects that repair, replace, or enhance existing facilities,
equipment, or infrastructure; and capital facility projects that significantly expand or add to the
City’s existing fixed assets.
Construction projects and capital purchases of $5,000 or more will be included in the Capital
Improvement Plan; minor capital outlays of less than $5,000 will be included in the regular operating budget. The Capital Improvement Plan (CIP) differentiates the financing of high-cost longlived physical improvements from low-cost “consumable” equipment items.
CIP is an annually revised document that guides the City’s investments in public facilities and infrastructure during a five-year time horizon.
The Capital Budget is supported through multiple funding sources: General Fund, Sales Tax Capital
Projects fund, Street Improvements fund, Cap, Community Redevelopment fund, Stormwater fund,
Water & Sewer R&R fund, and Water Impact fund. CIP includes different types of bonds (debt),
grants, and cash as well as other smaller sources of funding.
The impact of capital projects affects current and future operating budgets, due to an increase or
decrease in maintenance costs or by providing capacity for new future programs/projects. The
operating impact of capital projects is analyzed and taken into consideration during the extensive
CIP prioritization process. Estimated new revenues and operational efficiency savings associated
with projects are also taken into consideration (net operating costs). The cost of operating new
or expanded facilities or infrastructure is included in the operating budget in the fiscal year the
asset becomes operational. Debt service payments on any debt issued for capital projects are also
included in the operating budget, contained in the operating budget. CIP items may be funded
through debt financing or current revenues while operating budget items are annual or routine in
nature and should only be financed from.
Back to TOC
City of Eustis, Florida
Adopted Budget
111
