City of Suffolk, Virginia
POPULAR ANNUAL FINANCIAL REPORT For Fiscal Year Ended June 30, 2023
TABLE OF
Contents Note to Our Readers 2 Message from the City Manager 2 City Leadership & Governance 3 Organizational Chart 4 About Suffolk 5 Growth Management & Comprehensive Planning 6 Public Education 6 Accomplishments & Milestones – A Year in Review 7 Economic Development 7 Public Works 8 Public Transportation 9 Public Safety 9 Leisure, Health & Wellness 10 Broadband Initiatives 10 Projects on the Horizon 10 Financial Highlights 11 Statement of Net Position 11 Debt 12 City Reserve Requirements 12 Capital Assets 13 Property Tax 13 Tax Revenues 14 Governmental Funds 14 General Fund 15 Economic Factors 16 Financial Awards & Accomplishments 17 Glossary of Terms 18 Your Feedback 18
NOTE TO OUR
Readers
Thank you for reading the City of Suffolk Popular Annual Financial Report (PAFR)! The 2023 Popular Annual Financial Report (PAFR) is a report for our citizens. It provides you and other interested parties with an overview of the City’s financial standing. This report is prepared to increase awareness throughout the community of the City’s financial operations, therefore, it is written in a user-friendly manner. The information is derived from the audited financial statements in the City’s 2023 Annual Comprehensive Financial Report (ACFR), our formal annual report. To conform to Generally Accepted Accounting Principles (GAAP), the ACFR must include the City’s component units and the presentation of individual funds in much more detail, as well as a full disclosure of all material events, financial and non-financial. The 2023 ACFR was audited by Cherry Bekaert LLP and has received an unmodified or “clean” audit opinion. Unlike the ACFR, the PAFR is not an audited document and it does not include details by fund nor does it include the other disclosures required by GAAP. The PAFR is not required to present the same level of detail as the ACFR and, therefore, does not fully conform to GAAP. This report, in a summarized version, highlights the overall financial condition and trends of the City. For more in-depth information, you may obtain a copy of the ACFR on the City’s website by visiting https://www.suffolkva. us/341/Finance or by contacting the Finance Department at (757) 514-7500.
MESSAGE FROM THE
City Manager Dear Citizens of Suffolk, I am delighted to present the City of Suffolk Popular Annual Financial Report, ending June 30, 2023. As your City Manager, I am privileged to offer this comprehensive overview of our city’s financial health and accomplishments over the past year. In these pages, you will find a detailed account of how your tax dollars are allocated and how they have been put to work to enhance our community. We remain committed to fiscal responsibility, ensuring every dollar is spent wisely and transparently. Over the past year, our city has continued to grow and evolve. We have invested in critical infrastructure projects, improved public services, and supported local businesses. These efforts have made our city a better place to live and contributed to our economic prosperity. I want to express my gratitude to all of you, our dedicated
citizens, for your ongoing support and engagement in the well-being of our community. Your input and involvement are invaluable, and they continue to shape the future of our city. As we move forward, my administration remains committed to working tirelessly for the betterment of our beloved city. We will continue prioritizing fiscal responsibility, sustainability, and inclusivity in all our endeavors. This annual financial report is a testament to our commitment to transparency and accountability. We encourage you to explore the report’s contents, ask questions, and engage with your local government. Your feedback is essential in helping us make informed decisions that benefit everyone.
Al Moor City Manager 2023 Popular Annual Financial Report | 2
CITY
Leadership & Governance The City of Suffolk is governed by an at-large official Mayor and seven City Council members who are elected by borough. Appointed by the Council, the City employs a full-time City Manager, Albert Moor II, P.E., to oversee the operations.
Al Moor, City Manager
L to R: John Rector, Suffolk Borough; Leotis L. Williams, Whaleyville Borough; Roger W. Fawcett, Sleepy Hole Borough; Michael D. Duman, Mayor; Lue R. Ward, Jr., Vice Mayor, Nansemond Borough; Timothy J. Johnson, Holy Neck Borough; Leroy Bennett, Cypress Borough; Shelly Butler Barlow, Chuckatuck Borough.
A Transparent Government All Suffolk City Council meeting dates, agendas, and instructions for speaking at a council meeting can be found online at suffolkva.us/ CouncilMeetingInformation. Both live streamed meetings, as well as archived meetings, can be viewed at suffolkva.us/tv and on the local Charter Spectrum cable channel 190.
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ORGANIZATIONAL
Chart
Citizens
Constitutional Officers
City Council City Manager
Deputy City Manager
Deputy City Manager
Planning & Community Development
Capital Programs & Facilities
Suffolk Police Department
Information Technology
Economic Development
Public Works
Suffolk Fire & Rescue
Media & Community Relations
Parks & Recreation
Public Utilities
Finance
Social Services
Human Resources
Libraries
2023 Popular Annual Financial Report | 4
ABOUT
Suffolk A wonderful blend of agricultural and urban landscapes, Suffolk encompasses 400 square miles of land and 30 square miles of water that is home to the Great Dismal Swamp - making it the largest city in the state by land mass. The City provides a full range of municipal services authorized by statute or charter for its residents. These services include police protection, fire, paramedical services, public health and social services, planning and zoning management, code enforcement, street maintenance, traffic control, parks and cemeteries operation and maintenance, recreation and library services, economic development, solid waste, water, storm water management, and general administrative services.
Demographics Population Estimated as of July 2022:
99,179
Median Home Income:
$87,758
Median Home Cost:
$314,400
Unemployment Rate:
3.1%
Median Age:
38.2
$
Sources: Weldon Cooper Center for Public Service, Virginia Employment Commission Bureau of Economic Analysis, U.S. Census Bureau
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GROWTH MANAGEMENT &
Comprehensive Planning The Comprehensive Plan is intended to guide and assist City staff, the public, development community, City Council, Planning Commission, and other officials in decisions related to development, redevelopment, growth, preservation, and the provision of public services. The elements of the plan establish policy statements to guide decisions about growth, housing availability, transportation, public facilities and services, and the preservation and enhancement of natural and cultural resources. By statute, The Code of Virginia requires the plan be reviewed at least once every five years by the local planning commission to determine whether it is advisable to amend the plan. The comprehensive planning process is as important as ever as Suffolk’s population trend is projected to continue growing over the foreseeable future. By 2040, Suffolk’s population is expected to see a 30 percent increase. Plan Principles and Values: 1.
Maintain an efficient transportation network with effective choices for mobility.
2.
Define and enhance the various unique character types and development patterns within the City.
3. Promote a diverse housing stock, providing options in terms of type, location, and affordability. 4. Protect the natural, cultural, and historical assets of the City. 5. Maintain high-quality services and facilities as growth occurs. 6. Preserve the agricultural heritage and character of the City. 7.
Keep jobs and schools near population centers.
To view the full 2035 Comprehensive Plan, visit https://www. suffolkva.us/578/Comprehensive-Planning.
PUBLIC
Education The City Council and City Management places a high priority on education which continues to be one of the City’s highest priorities. The City spent $66.5 million for public education in fiscal year 2023 which represents 23% of total governmental expenses in Suffolk. Suffolk Public Schools has 2,300 employees and 13,330 students (average daily enrollment).
Suffolk Public Schools Maintains: 11 Elementary Schools 4 Middle Schools 3 High Schools 1 Alternative School
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ACCOMPLISHMENTS & MILESTONES
A Year in Review
The information in this section reflects the data for calendar year 2022. Suffolk is the fastest growing city in Hampton Roads and is well positioned for continued growth and prosperity. With a diverse and skilled workforce, proximity to the Port of Virginia, available land for development, efficient transportation access, high quality of life, a regard for its historic past and a dynamic vision for the future, Suffolk continues to attract new businesses and investment opportunities, create jobs, and provide an invigorating economic climate for expansion. Noted nationally for job creation and as one of the most livable cities, Suffolk continues to capitalize on its assets in a top-ranked business-friendly state.
ECONOMIC DEVELOPMENT The City of Suffolk experienced another strong year of economic growth in calendar year 2022 with an influx of investments from both domestic and international companies across various sectors including technology and logistics, healthcare, food and beverage, and retail. •
Amazon Robotics and Fulfillment Center officially opened in October 2022, employs approximately 1,500 people, and now composes 2.5% of the city’s assessed taxable value.
•
Bon Secours Mercy Health celebrated the groundbreaking of their new Harbour View Hospital. The new three-story hospital will be 98,000 square feet and cost nearly $80 million to construct. The surgicallyfocused hospital will feature 18 medical/surgical beds, up to four operating rooms, a 15-bed emergency department, on-site lab, and an imaging services area to include CT, MRI, and X-ray technology.
•
Sentara Health invested $10.6 million in its local operations to include major improvements to its health care technology, medical equipment, and physical plant, including the addition of a new outpatient unit, laparoscopic equipment upgrades, CT and X-ray expansion, Cath/EP lab replacement, and outpatient rehab expansions.
•
Lowe’s opened a 1.5 million square foot regional distribution center estimated at $75 million in the Virginia Port Logistics Park. The new center is expected to create 100 new jobs.
•
Birdsong Peanuts announced a $25.1 million investment to modernize and automate production lines in its Suffolk peanut shelling facility.
•
Massimo Zanetti Beverage USA announced a $29 million investment to consolidate and expand operations at its coffee roasting facility in Suffolk creating 80 jobs.
Total Capital Expenditures
$359 Million
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New Jobs Created
600+
Square Footage Impacted
3 Million
Business Highlights by Industry Advanced Manufacturing $38.4 M Square Footage: 165.3 K
Warehouse & Distribution $279.5 M Square Footage: 2.5 M New Jobs: 276
Medical $16.8 M Square Footage: 17 K New Jobs: 85
Retail $22.8 M Square Footage: 296 K New Jobs: 234
Office & Administration $531 K Square Footage: 37.8 K New Jobs: 22
Hospitality & Other $1.8 M Square Footage: 7.4 K New Jobs: 3
PUBLIC WORKS Completed major projects •
Carolina Road Bridge Replacement
•
East Washington Bridge Replacement
•
Downtown Drainage Project
•
Elwood Road Bridge Replacement
•
140 miles of road repaving (over triple the amount from previous year)
Ongoing major projects •
Route 58/Holland Road Widening project
•
Shoulders Hill Road / Bridge Road Expansion project
•
Nansemond Parkway / Wilroy Road Overpass
43,915 tons of residential waste collected 5.5 tons of recycling collected 81,569 special bulk pickups 3,093 potholes repaired 3,193 service requests completed
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PUBLIC TRANSPORTATION •
75,077 Passengers transported via Suffolk Transit.
•
Awarded a $565,000 Grant from the competitive FTA Low or No Emission Grant Program for two electric buses and two charging stations.
•
City-wide bus stop improvements to include concrete pads, benches and trashcans.
•
Completed and submitted a SMART Scale application for a SuffolkWindsor Commuter Route.
PUBLIC SAFETY •
Established public safety committee that will facilitate increased citizen engagement and provide a forum for public safety officials to gather frequently.
•
Suffolk Police Department received re-accreditation from the Commission on Accreditation for Law Enforcement Agencies (CALEA).
•
Completed crisis intervention training for mental health first aid with 100% of Suffolk Police officers and communications operators.
•
Hosted National Night Out and won third place in our population category.
•
Suffolk Fire & Rescue received accreditation from the Commission on Fire Accreditation International (CFAI), the world’s leading assessor of professionalism.
•
Graduated largest class in the history from the Suffolk Fire & Rescue Academy with 33 recruits.
•
Suffolk Fire & Rescue responded to more than 19,000 calls for service.
Public Safety by the Numbers
565
Full Time Police & Fire Positions
14
Engine Companies 9 | 2023 Popular Annual Financial Report
3
Police Stations
3
Ladder Companies
9
Fire & Rescue Stations
8
ALS Medic Units
LEISURE, HEALTH & WELLNESS •
Opened Bennett’s Creek Recreation Center which boasts a fitness center, a game room, a computer lab, outdoor walking path, and a multipurpose space.
•
Completed renovations at the Cypress Park Pool to include expanded locker rooms, zero depth entry, and a fun water feature.
•
Began design of the next section of the Suffolk Seaboard Coastline Trail which will span Nansemond Parkway to the Cedar Lake Shores neighborhood.
•
Parks and Recreation Department received accreditation from the Commission for Accreditation of Parks and Recreation Agencies (CAPRA).
BROADBAND INITIATIVES In today’s day and age, access to high-speed broadband internet is paramount for success across all stages of life. Suffolk City Council and City Staff are committed to obtaining the Governor of Virginia’s goal of universal broadband coverage by 2024, focusing on the large portions of rural, outlying areas that have little to no viable internet access. The City has taken advantage of a variety of funding opportunities which have made closing the digital divide significantly easier. These opportunities will result in City-wide universal broadband coverage in a relatively short time frame. •
Coronavirus Aid, and Economic Security Act (CARES Act) funding
•
Virginia Telecommunication Initiative (VATI) Grant Award
•
Federally administered Federal Communications (FCC) funding
PROJECTS ON THE HORIZON The City’s adopted Capital Improvement Program and Plan identifies physical improvements over the next decade. Priorities include schools, transportation, public safety, village and neighborhoods, parks and recreation, utilities, storm water, fleet, and information technology projects which are estimated at $381.9 million over the next five years. Many of these improvements will be funded by bonds. The City has achieved Triple A (Aaa/AAA) bond ratings from Moody’s, Fitch, and Standard & Poor’s Rating Services. These ratings are strong indicators of the City’s credit worthiness, financial condition, and fiscal management practices which contribute to the overall economic health of Suffolk. Our strong financial position has allowed us to fund upcoming projects such as: •
Downtown Library
•
Downtown Festival Park
•
Fire Station 11
•
Joint Public Safety Training Facility
•
Diverging Diamond Interchange
•
Nansemond Parkway & Bennett’s Pasture Road Improvements 2023 Popular Annual Financial Report | 10
FINANCIAL
Highlights STATEMENT OF NET POSITION Suffolk’s fiscal year (FY) runs July 1 to June 30. The City’s statement of activities for fiscal years ending June 30, 2021, 2022, and 2023 are shown in the chart below. The statement of Net Position presents information on all city assets and deferred outflows of resources and liabilities and deferred inflows of resources, with the difference reported as net position. This data is inclusive of all the activities of the city but does not include city component units. Net position is one way to measure the city’s financial health, or financial position.
FY2022-23 NET POSITION In FY23 the City reported $748.9 million on all City assets and deferred outflows of resources and liabilities and deferred inflows of resources, with the difference reported as net position. This data is inclusive of all the activities of the City but does not include City component units. Net position is one way to measure the City’s financial health, or financial position. Net Position Governmental Activities
Business-type Activities
Total
2021
2022
2023
2021
2022
2023
2021
2022
2023
Current and other assets
$271.5
$325.3
$391.3
$93.8
$96.1
$104.1
$365.3
$421.4
$495.4
Capital and other non-current assets
568.3
576.4
601.0
467.3
465.1
459.3
1,035.6
1,041.5
1,060.3
$839.8
$901.7
$992.3
$561.1
$561.2
40.8
36.8
36.5
28.9
26.5
Total assets Deferred Outflows of Resources
$563.4 $1,400.9 $1,462.9 $1,555.7 25.5
69.7
63.3
62.0
Current and other liabilities
38.8
44.4
72.1
6.4
6.7
23.5
45.2
51.1
95.6
Long-term liabilities
409.8
367.1
355.0
414.7
391.3
365.6
824.5
758.4
720.6
Total liabilities
$448.6
$411.5
$427.1
$421.1
$398.0
$389.1
$869.7
$809.5
$816.2
13.7
54.6
47.7
0.2
6.4
4.9
13.9
61.0
52.6
Net investment in capital assets
319.4
325.9
344.4
111.4
128.9
137.4
430.8
454.8
481.8
Restricted
12.2
28.4
32.4
2.6
2.7
2.8
14.8
31.1
35.2
Unrestricted
86.7
118.1
177.2
45.6
51.7
54.7
132.3
169.8
231.9
Net position
$418.3
$472.4
$554.0
$168.7
$183.3
$194.9
$587.0
$655.7
$748.9
Deferred Inflows of Resources Net position:
The City of Suffolk’s overall net position increased $93.2 million from the prior fiscal year. The three components of net position are net investment in capital assets, restricted net position, and unrestricted net position.
NET INVESTMENT IN CAPITAL ASSETS The most significant portion of net position ($481.8 million) is invested in capital assets to provide a variety of public goods and services to its citizens. For that reason, these assets are not available for future spending. Suffolk’s investment in capital assets is reported net of related debt. Net investment funds are 64.3% of the net position.
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RESTRICTED NET POSITION This portion of net position ($35.2 million) is restricted, representing funds that are limited to construction activities, payment of debt, or specific programs by law. Restricted funds are 4.7% of the net position.
UNRESTRICTED NET POSITION The remaining portions of net position ($231.9 million) is unrestricted, representing resources that are available for services. Unrestricted funds are 26% of the net position.
DEBT Long-term debt represents the borrowings used to finance the construction and purchase of capital assets used by the city. These comprise items for governmental and business-type activities. At the end of Fiscal Year 2023, the city had a total outstanding debt of $705.2 million, including general government, school construction, and utility fund debt.
Outstanding Debt (in millions) Governmental Activities
Business-type Activities
Total
2022*
2023
2022*
2023
2022*
2023
Bonds payable
$283.8
$289.3
$367.9
$358.4
$651.7
$647.7
Bond Premiums
17.4
18.0
15.2
14.3
32.6
32.3
Lease Liabilities
21.6
21.4
4.1
3.6
25.7
25.0
-
0.2
-
-
-
0.2
$322.8
$328.9
$387.2
$376.3
$710.0
$705.2
Subscription Liabilities Total
CITY RESERVE REQUIREMENTS The City has financial policies that are vital for maintaining consistency and focus. One of the financial policies continually reviewed is that of fund balance levels. The ratio of unassigned General Fund balance as a percentage of budgeted governmental funds expenditures (net of the general fund contribution to the Schools, transfers to other governmental funds, and Capital Projects fund expenditures), plus the budgeted expenditures in the School Operating and Food Service Funds, indicates the ability of the City to cope with unexpected financial challenges or emergencies. The policy also states that any surplus amounts over 20% will be put into a budget stabilization fund until it reaches 2.5% based on the same ratio and the remaining will go to a capital reserve fund. The City has set the unassigned fund balance percentage at 20%. At June 30, 2023, the fund balance ratio exceeded the target. The City was also able to establish the budget stabilization fund at 2.5%. In 2023, the City’s Capital Reserve Balance was $47.8 million. In 2022, the City’s Reserve was $21.9 million.
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CAPITAL
Assets The term capital assets is used to describe assets that are used in operations and that have initial useful lives extending beyond a single reporting period. Capital assets include major government facilities, infrastructure, equipment, and networks that enable the delivery of public sector services. Capital Assets (net of depreciation) (in Millions) Governmental Activities
Business-type Activities
2021
2022
2023
2021
2022
2023
2021
2022
2023
Land
$23.5
$23.6
$25.1
$4.7
$4.7
$4.7
$28.2
$28.3
$29.8
Construction in progress
112.8
152.4
185
27.0
18.9
20.9
139.8
171.3
205.9
Buildings
86.4
83.4
86.8
72.9
73.4
71.6
159.3
156.8
158.4
Infrastructure
249.2
217.2
204.3
-
-
-
249.2
217.2
204.3
Improvements other than buildings
39.4
39.2
42.8
289.8
291.4
290.5
329.2
330.6
333.3
Machinery and equipment
28.4
32.0
30.2
60.2
66.6
63.6
88.6
98.6
93.8
Intangible right to use leased asset
24.7
22.6
22.5
5.0
4.1
3.6
29.7
26.7
26.1
Intangible right to use subscription assets
-
-
0.3
-
-
-
-
-
0.3
1.7
4.1
4
7.7
6.0
4.4
9.4
10.1
8.4
$566.1
$574.5
$601.0
$467.3
$465.1
Intangibles Total
Total
$459.3 $1,033.4 $1,039.7 $1,060.3
PROPERTY TAX The chart following indicates the growth in the General Property Taxes revenue over the past ten years.
Source: Comprehensive Annual Financial Reports 2014-2023
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23 FY
22 FY
21 FY
20 FY
19 FY
18 FY
17 FY
16 FY
FY
FY
15
$200 $180 $160 $140 $120 $100 $80 $60 $40 $20 $14
Millions
General Property Tax Revenue
Real Estate and personal tax revenues represent the City’s largest source of revenue, and totaled $176.3 million in fiscal year 2023. In 2022 the total revenue was $161.2 million. This growth is due in part to increased property values and new commercial and residential construction which added a total $13.3 billion in taxable value. Along with this growth, in fiscal year 2023 there was a real estate tax rate decrease for citizens from $1.11 to $1.09. Other Local Tax revenues are the second largest source of funding for governmental fund revenues and are comprised of sales and use, meals, lodging, utility, business license, tobacco, and admissions taxes. While the City did lose revenue due to the worldwide pandemic in some areas, the effect on sales taxes and meals taxes were not as large as originally estimated.
TAX REVENUES Local tax revenues are the second largest source of funding for governmental fund revenues.
2023 $237.5 Million
2022 $222.6 Million
2021 $199.8 Million
Tax Revenue Sources Source
2021
2022
2023
$146.7
$161.2
$176.3
Sales and Use
15.6
16.4
18.0
Utility Tax
4.9
5.0
5.0
Communication Taxes
2.6
2.5
2.4
Business and Occupational License
9.2
11.0
11.8
Motor Vehicle License
2.7
2.7
2.8
Bank Stock
0.7
0.8
0.8
Recordation
2.5
3.3
1.9
Tobacco
2.0
1.8
1.9
Lodging
1.7
2.2
2.1
Meals
11.3
15.6
14.3
Administration
0.0
0.2
2.3
199.8
$222.6
$237.5
General Property Tax
Total
GOVERNMENTAL FUNDS The focus of the City’s Governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. As of June 30, 2023, Governmental funds for the City were $297.4 million. The City expended $78.9 million towards public safety efforts. This represents 27.3% of governmental expenses. Education continues to be one of the City’s highest priorities and commitments representing $65.4 million. This represents 23.0% of governmental expenses. The next largest expense category was public works at $49 million or 17% of governmental expenses.
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GENERAL
Fund
The General Fund is the chief operating fund of the City. As of June 30, 2023, the fund balance of the General Fund was $169 million. $98 million represents the unassigned fund balance. The General Fund has increased from 2022. This increase is attributable to better than anticipated collections of real estate and other local taxes, such as sales tax and business license tax and higher interest rates which increase earned revenue on the city’s cash and investment balances.
General Fund Revenue By Source (in Millions) FY Ending 06/30/2020
Revenue by Source Real Estate and Personal Property Taxes
FY Ending 06/30/2021
FY Ending 06/30/2023
$144.4
$156.3
$175.9
Other Local Taxes
53.1
61.4
61.2
Permits, Fees and Regulatory Licenses
2.1
2.4
1.9
Fines and forfeitures
0.7
0.7
0.7
Revenue from Use of Money and Property
0.8
0.9
8.4
Charges for Services
3.0
4.0
4.7
Miscellaneous
0.8
1.0
1.2
State Revenue
23.1
22.9
23.6
Federal Revenue
5.3
5.3
5.7
Total Revenues
$233.3
$254.9
$283.1
General Fund Revenue By Source (in Millions) Real Estate and Personal Property Taxes $175.9 | 62% Other Local Taxes $61.2 | 22% Permits, Fees and Regulatory Licenses $1.9 | 1% Revenue from Use of Money and Property $8.4 | 3% Charges for Services $4.7 | 2%
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State Revenue $23.6 | 8% Federal Revenue $5.7 | 2% Fines and Forfeitures $0.7 | 0% Miscellaneous $1.2 | 0%
General Fund Expenditures By Function (in Millions) Expenditures by Function General Government Administration
FY Ending 06/30/2021
FY Ending 06/30/2022
FY Ending 06/30/2023
$17.4
$19.1
$21.9
Judicial Administration
9.5
9.9
10.5
Public Safety
63.6
68.6
77.2
Public Works
1.0
1.0
1.2
Health and Welfare
14.6
14.6
15.0
Education
65.5
65.4
66.5
Parks, Recreation and Cultural
10.7
11.4
13.5
Community Development
5.7
7.4
7.5
Nondepartmental
0.8
0.7
1.4
$188.8
$198.1
$214.8
Total Expenditures
General Fund Expenditures By Function (in Millions) Parks, Recreation and Cultural $13.5 | 6.3%
Public Safety $77.2 | 36%
Community Development $7.5 | 3.5%
Public Works $1.2 | 0.6%
Nondepartmental $1.4 | 0.6%
Health and Welfare $15.0 | 7.0%
General Government Administration $21.9 | 10.2%
Education $66.5 | 31%
Judicial Administration $10.5 | 4.9%
ECONOMIC FACTORS •
For fiscal year 2023, the City’s tax rate was $1.09 per $100 and remains the third lowest tax rate in the region.
•
The City’s economic development initiatives created over 620 new jobs and over $359 million in new and expanding capital investment in the City during the calendar year 2022.
•
Population in the City has increased 12.9% in the last ten years.
•
The City has achieved Triple A (Aaa/AAA) from Moody’s, Fitch and Standard & Poor’s Rating Agencies. These ratings reflect the City’s continued commitment to strong financial management.
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FINANCIAL AWARDS &
Accomplishments
Government Finance Officers Association Accolades Certificate in Achievement for Excellence in Financial Reporting For the 38th consecutive year. Award for Outstanding Achievement in Popular Annual Financial Reporting For the 7th consecutive year. Distinguished Budget Presentation Award For the 13th consecutive year.
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GLOSSARY OF
Terms
Assessed Value: The dollar value assigned to a home or other piece of real estate for property tax purposes. Capital Assets: These include all land, buildings, equipment, and other elements of the City’s infrastructure having a cost of more than $5,000 and having been funded by the Capital Budget. Debt Service Funds: Funds to finance and account for the annual payment of principal and interest on bonds. Deferred Inflow of Resources: An acquisition of net assets by the City that is applicable in a future reporting period. Deferred Outflow of Resources: A consumption of net assets by the City that is applicable to a future reporting period. General Fund: The main operating fund of the City, which is used to finance the City’s operations. General Fund Revenues: Revenues which the City raises through taxation and other means. General Revenues are available to be used for any authorized program or function. General Fund Expenditures: The primary fund from which the City pays ongoing expenses. General Obligation Debt: Debt secured by the full faith and credit of the local government issuing the debt. The City pledges its tax revenues unconditionally to pay the interest and principal on the debt as it matures. Governmental Fund: Governmental funds is money, assets, or property of a local government, including any branch, subdivision, department, agency, or other component of any such government. Operating Budget: A plan for the acquisition and allocation of resources to accomplish specific purposes. The term may be used to describe special purpose fiscal plans or parts of a fiscal plan, such as “the budget of the Police Department or Capital Budget” or may relate to a fiscal plan for an entire jurisdiction, such as “the budget of the City of Suffolk.” Trend: A general direction in which something is developing or changing.
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2023 Popular Annual Financial Report | 18
City of Suffolk 442 W. Washington Street Suffolk, VA 23434 757.514.4000 www.suffolkva.us
Produced by the City of Suffolk Finance Department