FY 2026 Adopted Budget - Flipbook - Page 105
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, excluding 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 are 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.
The City’s budget has two primary components: operating and capital. The City Commission holds
one public hearing on the proposed budgets and one public hearing on the final budgets.
The CIP budget funds major improvements to City facilities and infrastructure and is based on the
first year of capital needs in the five-year period of FY 2026-2030. The CIP Budget also includes
anticipated operating costs associated with significant capital maintenance and improvements.
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 and required mandates. The CIP
is a five-year plan organized into the same functional groupings used for the operating budget. The
CIP reflects 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 are included in the CIP. Minor capital
outlays of less than $5,000 are included in the regular operating budget. The CIP differentiates the
financing of high-cost long-lived physical improvements from low-cost “consumable” equipment
and repairs. The CIP is revised annually and guides the City’s investments in public facilities and
infrastructure during a five-year time horizon.
The CIP budget is comprised of various funds: General Fund, Sales Tax Capital Projects Fund, Street
Improvements Fund, Community Redevelopment Fund, Stormwater Fund, various utility funds, and
impact fees funds. The CIP budget includes different funding sources such as bonds (debt), grants,
cash, transfers from other funds as well as other smaller sources of funding.
The impact of capital projects affects current and future operating budgets as they result in either
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