Adopted Budget Book FY 23-24 Final with TOC links - Flipbook - Page 72
Strategic → CiTy of eusTis long - range finanCial Plan
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Community Well-Being: Ultimately, a well-executed strategic plan aims to improve the overall
well-being of the community. It enhances services, infrastructure, and quality of life for residents, making the City a more desirable place to live, work, and invest.
Competitive Advantage: Implementing a strategic plan can give the City a competitive advantage by identifying unique strengths and opportunities for growth. This can attract businesses,
tourism, and investment to the area.
An updated strategic plan is a valuable tool for guiding the City’s growth and development. It
ensures that resources are used effectively, decisions are aligned with long-term goals, and the
community’s needs are met. Ultimately, it contributes to a thriving and resilient City that benefits
both current and future generations of residents.
2. Water & Sewer Rates Study: In FY 2020, the City’s Finance Department conducted a Water
Rates Study, leading to the approval by the City Commission of a 2.5% annual increase adjustment.
However, due to high inflation in FY 2021-22, the City management recommended an unplanned
Water and Wastewater Rates study in FY 2022-23. The purpose of this study, conducted by an independent consulting company, is to provide an unbiased assessment of the City’s current revenues,
expenditures, and capital projects. The consultant will determine whether the City’s operating revenues are sufficient to cover expenses, operations and maintenance costs, upcoming replacements,
debt service, and help formulate capital improvement plans for water and sewer systems during the
implementation period. This consulting effort aligns with the Competent and Effective Government
Priority, Goal #3 Strategic Priority 1 of the City’s Strategic Plan - Maintain the financial viability of
the City.
Conducting a comprehensive study on water and wastewater rates can bring several significant
benefits to the City and its residents:
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Financial Sustainability: A rate study ensures that water and wastewater utilities are financially
self-sustaining. By accurately assessing the costs of providing these essential services, the
City can set rates that cover operational expenses, maintenance, and necessary infrastructure
investments. This financial stability reduces the burden on the City’s general fund and ensures
the long-term viability of these utilities.
Equitable Billing: Rate studies help establish fair and equitable billing structures. They take into
account factors such as consumption patterns, customer categories (residential, commercial,
industrial), and affordability considerations. This ensures that customers are billed fairly based
on their usage and ability to pay.
Compliance and Quality: Ensuring that water and wastewater rates cover operational costs is
essential for meeting regulatory compliance and maintaining water quality standards. Adequate
funding allows the City to invest in advanced treatment processes and maintain the highest
water quality for residents.
Predictable Budgeting: Accurate rate setting based on a thorough study provides predictability
for the City’s budgeting process. It enables the City to anticipate revenue streams, plan for
future expenses, and make informed financial decisions.
Creditworthiness: Maintaining stable and self-sustaining water and wastewater utilities
enhances the City’s creditworthiness. This can lead to lower borrowing costs for infrastructure
projects and reflects positively on the City’s financial management practices.
Customer Satisfaction: Fair and reasonable rates contribute to customer satisfaction. When
customers see that their bills reflect the true cost of service delivery and necessary improveCity of Eustis, Florida
Adopted Budget
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