FY 2025 BUDGET BOOK - Flipbook - Page 103
replacement.
The City will balance its budget year so that each fund’s budgeted revenues equal the budgeted
expenditures. The utilization of the existing fund balance as a revenue source to meet current needs
will be minimized as much as possible.
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 the 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 from 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 nonspendable, restricted, committed, assigned, or unassigned. Actual fund balances and classifications
are reported annually in the City’s Annual Comprehensive Financial Report (ACFR).
Per policy, a 90-day reserve balance for the General Fund is calculated as the amount of budgeted
operating expenses, exclusive of debt service, capital outlay, and transfers out. This reserve may
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, contingencies, and emergencies.
The projected fund balance for budgetary purposes will be calculated using the actual fund balance
from the prior year’s ACFR, current year estimates, and a projection of what the budgeted fund
balance would be if the current year estimated expenditures considered.
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.
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 the City’s capital needs to
determine which capital projects should be funded in the capital budget based on funding
availability. City-wide 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.
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