Financial Highlights

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, 2022, the fund balance ratio exceeded the target. The City was also able to establish the budget stabilization fund at 2.5%

The City’s Capital Reserve Balance was $21.9 Million

Tax Revenues

Local tax revenues are the second largest source of funding for governmental fund revenues. For the prior three years the City collected:

The City had a 5% increase in sales tax revenue from 2021 to 2022.

Property Tax

The following chart indicates the growth in the General Property Taxes revenue over the past ten years. The increase in the real estate and personal property taxes over time is due to increase in assessed value of the real and personal property as well as tax increases in FY’s 2012, 2016, 2017, and 2019. There was no tax increase in FY2022. These tax increases were added to fund increases in education as well as public safety.

The total estimated taxable value of all property in Suffolk for the 2022 tax year is $13.2 billion, an increase of $3.3 billion since 2013.

New commercial and residential construction added $13.0 billion in taxable value.

City property tax remains constant for the fourth consecutive year at $1.11/$100 valuation and is the third lowest in the region