Adopted Budget Book FY 23-24 Final with TOC links - Flipbook - Page 128
Budget-In-Brief → DebT
Regarding Short-term debt/leases, debt for less than five-year periods shall be avoided, unless a
debt mechanism is in place that provides decreased costs of issuance. Leases or lease purchases
are allowed when the total costs of the lease and maintenance are less than the total costs of the
purchase and maintenance or if there are other special factors to be considered.
Interfund loans are allowed as well unless otherwise prohibited by law. In such cases where interfund loans are made, interest will be paid to the loaning fund equal to the interest it would have
received under the normal investment performance of the City’s cash management program.
The City currently has three State Revolving Fund Loan issues, a Water and Sewer Revenue Bond,
a Water & Sewer Bank Note, and both a loan and a lease for fire equipment:
Series 2018 Capital Improvement Revenue Note - This $800,000 capital equipment note for a Fire
Ladder Truck is secured by covenant to budget appropriations and has a fixed interest rate of 2.29% and
a maturity date of April 2023. Debt service payments are being made from the City’s Sales Tax Revenue
Fund. Principal balance: $160,000 matured and paid off in April of FY 2023.
State Revolving Fund Loans 350300 and 350302 - These loan agreements with the Florida
Department of Environmental Protection are secured by water and sewer annual revenue after operations and maintenance and senior debt obligations. The original loan amounts totaled $10,211,163 and
were used for wastewater plant upgrades in compliance with Environmental Protection Agency nitrification regulations. The interest rates range from 1.29% to 3.21% and payment of principal and interest
will be complete in the Fiscal Year 2032. Debt service payments are being made from the City’s Sewer
Impact Trust Fund. The remaining balance for notes payables SRF 350300 and 350302, at the end of FY
2023 was $2,920,832. Bond rating is at the lowest risk investments: AAA by Standard & Poor’s.
Series 2016 Water & Sewer Utility Revenue Bond - This approximately $8,184,691 issue is a funding
source for the City’s FY 2017 through FY 2036 Water and Sewer Capital Improvement Plan implemented
in October of 2016. It is secured by utility system revenues with an interest rate of 3.21% and a maturity
date of October 2036. Debt service payments are being made from the City’s Water and Sewer Revenue
Fund. Principal balance at the end of FY 2023: $6,265,000 after principal and interest payments. Bond
rating is at the lowest risk investments: AAA by Standard & Poor’s.
CRA Loan 2020 - In September of FY 2020, City contracted with USB bank to provide financing in
the amount of $3,000,000 for CRA - Community Redevelopment Trust Fund projected three large land
blocks, located at the City of Eustis Downtown purchase. The Five-Year financing balloon loan is at a
fixed interest rate of 2.88%. Principal and interest payments of $16,512 are paid monthly, commencing
October 2020. The total principal and interest debt service payments in the FY 2023-24 will be $198,148.
Legal Debt Limits
The City of Eustis currently has no legal debt limitations imposed on its ability to borrow funds.
Capital Improvement Policy
The City will develop multi-year business plans every five years for capital improvements. These plans
will be updated as necessary and used for future annual and five-year capital budgets.
The five-year Capital Improvement Plan will be incorporated into the City’s Comprehensive Plan.
In the development of the Capital Improvement Projects, the City will review the operational impact of
each project.
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City of Eustis, Florida
Adopted Budget
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