FY 2025 BUDGET BOOK - Flipbook - Page 107
Interfund loans are also permitted 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 two State Revolving Fund Loan issues, a Water and Sewer Revenue Bond, a
Community Development Bank Note, a Water & Sewer Bank Note, and both a loan and a lease for
fire equipment:
State Revolving Fund Loans 350300 and 350302 - These loan agreements with the Florida
Department of Environmental Protection are secured by water and sewer revenues. The original loan
amounts totaled $3,397,992 and were used for wastewater plant upgrades in compliance with
Environmental Protection Agency nitrification regulations. The interest rates range from 1.28% to
1.46% and both loans extend through FY 2031/32. 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 $2,661,665. The bond rating is at the lowest risk investments: AAA by Standard &
Poor’s.
Series 2016 Water & Sewer Utility Revenue Bond - This issue of $8,184,691 provides funding for the
City’s 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 has a maturity date of October 2036. Debt
service payments are being made from the City’s Water and Sewer Revenue Fund. The principal
balance at the end of FY 2022/23 was $5,989,318. The bond rating is at the lowest risk investments,
AAA by Standard & Poor’s.
CRA Loan 2020 - In September of FY 2020, the City’s Community Redevelopment Trust Fund
secured financing of $3,000,000 with USB Bank for the purchase of three large lots in Downtown
Eustis. The five-year financing balloon loan is at a fixed interest rate of 2.88%. Principal balance at the
end of FY 2023 was $2,653,462. A balloon payment is due in September 2025. At that time the City
will need to decide whether to refinance or sell the properties.
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 develops a five-year capital improvement plan every year. The plan is updated each year
during the annual budget process and is incorporated into the City’s Comprehensive Plan.
In the development of the Capital Improvement Plan, the City will review the operational impact of each
project.
Capital Asset Policy
Purchased and constructed capital assets are reported at cost or estimated historical cost. Capital
assets include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks) and similar items. They are reported in the applicable governmental or business-type
activities columns in the government-wide financial statements. Property, plant, and equipment with
an initial, individual cost equal to or exceeding $5,000 with useful lives of over one year are recorded
as capital assets. Roads, bridges, and sidewalks are capitalized when their initial costs equal or
exceed $25,000 and they have an estimated useful life of more than one year. Capital assets are
recorded at historical or estimated historical costs. Donated capital assets are recorded at the
acquisition value at the date of donation. Significant outlays for capital assets and improvements are
capitalized as projects are constructed. Interest incurred during the construction phase of capital
assets of major business-type activities is included as part of the capitalized cost of the assets
constructed. Capital asset purchases are recorded as capital outlay expenditures at the fund level in
the year of acquisition.
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