Government-wide Financial Statements Exhibit 1: Statement of Net Position

a capital reserve fund. The City has set the unassigned fund balance percentage at 20%. At June 30, 2022, the fund balance ratio exceeded the target. The City was also able to establish the budget stabilization fund at 2.5% and has put $21.9 million in the capital reserve fund.

Financial policies were developed for the Utility Fund which provided for written documentation of many sound business practices. Categories include financial independence, target percentage for unrestricted cash and long term investments, debt service coverage ratios, plus policies for asset replacement and system extension. The Utility Fund is further governed by revenue bond Master Trust Indenture requirements.

Awards and Recognition

Bond Ratings – Maintain rating of AAA

In August 2022, the City’s bond ratings were reaffirmed by all three rating agencies: Moody’s (Aaa), Fitch Rating Agency (AAA), and Standard and Poor’s (AAA). These ratings reflect the City’s commitment to strong financial management.

Annual Comprehensive Financial Report

The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting (Certificate) to the City of Suffolk, Virginia for its annual comprehensive financial report for the fiscal year ended June 30, 2021, representing the 37th consecutive year that the City has received this award. The Certificate is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government financial reports.

In order to be awarded a Certificate, a governmental unit must publish an easily readable and efficiently organized comprehensive annual financial report, whose contents conform to program standards. Such reports must satisfy both accounting principles generally accepted in the United States of America and applicable legal requirements.

Citizen Reporting

The City of Suffolk received the GFOA Award for Outstanding Achievement in Popular Annual Financial Reporting for its Popular Annual Financial Report (PAFR) for fiscal year ended June 30, 2020. This is the sixth year that the City received the award. The report provides an overview of the City’s financial results and is designed to increase awareness throughout the community of the City’s financial operations in a user-friendly manner. The information is derived from the audited financial statements in the City’s 2020 Annual Comprehensive Financial Report.

Annual Budget

The GFOA presented a Distinguished Budget Presentation Award to the City of Suffolk, Virginia for its annual budget for the fiscal year beginning July 1, 2021. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communications device. This is the twelfth consecutive year for this recognition and it is valid for a one-year period.