HomeMy WebLinkAboutCity of Suffolk - Public Financial ReportCITY OF SUFFOLK
VIRGINIA
CITY OF SUFFOLK
VIRGINIA
POPULAR ANNUAL
FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
1 / Popular Annual Financial Report
TABLE OF
CONTENTS
Mayor’s Message
City Leadership
About Our City
Suffolk Priorities:
Expanded Economic Development
Growth Management and Comprehensive Planning /
Public Education
Transportation
Leisure, Health, and Wellness / Public Safety /
Civic Engagement and Responsive Citizen Services
Financial Stability
Where the Money Comes From
Where the Money Goes
How We Are Doing: EXPENSE AND REVENUE TRENDS
Net Position
Capital Assets
Debt Administration and Accounting Terms
03
05
07
08 -12
08
09
10
11
12
13
14
15
16
17
18
The 2021 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 results. 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 2021 Annual Comprehensive Financial
Report (ACFR), our formal annual report.
To conform with 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 full disclosure of all material events, financial and non-
financial. The 2021 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 at www.suffolkva.us/ACFR-20-21, or
by contacting the Finance Department at (757) 514-7500.
The Government Finance Officers Association (GFOA) has been
promoting the preparation of high quality popular annual finan-
cial reports since 1991. More than 140 governments participate
in the program each year. The Popular Annual Financial Reporting
Awards Program is specifically designed to encourage state and
local governments to prepare and issue a high quality popular
annual financial report. The PAFR can play an important role
in making financial information accessible to ordinary citizens
and other interested parties who may be challenged by more
detailed traditional financial reports. Additional details can be
found at the GFOA website: www.gfoa.org.
Popular Annual Financial Report / 2
TO THE
CITIZENS
OF SUFFOLK
On behalf of Suffolk
City Council, it is my
pleasure to present the
2021 Popular Annual
Financial Report. 2021
brought continued
challenges but Suffolk
continues to thrive
as evidenced by our
re-affirmed AAA ratings from Standard & Poors
Rating Service, Moody’s Investors Source and Fitch
Ratings. These coveted designations are a result
of sound and fiscally responsible financial policies,
prudent budget management and an outstanding
forecast for continued growth and prosperity.
Suffolk is one of only three Hampton Roads cities
to achieve this level of credit worthiness. These
exemplary ratings have created refinancing
opportunities resulting in over $47 million dollars
of debt savings since our first AAA rating in July of
2014.
Moody’s AAA rating narrative noted, “The
continued growth and diversity and diversification
of the City’s sizeable tax base including the
institutional presence of the federal government,
healthy resident income levels, strong and stable
fund balance, and liquidity supported by formal
fiscal policies and budget assumptions, as well as
manageable debt and pension balances.”
Financial stability and a strong financial foundation
are paramount to providing opportunities for
future growth, but it is imperative to recognize
the catalyst behind this growth, as well as the
associated issues that affect the quality of life of
our citizens.
Economic development, public education,
recreational opportunities, transportation, public
safety, City services, and housing opportunities
are all critical to our City’s success. In addition,
we must be diligent in managing this growth as we
strive to retain the historic and unique character
of our villages and neighborhoods.
Suffolk continues to attract a diverse mix of
industries thanks to our prime Mid-Atlantic
location, room for expansion, available work force,
and pro-business climate. All substantiated by
over five million square feet of new industrial real
estate set to open in 2022 that will be highlighted
by the opening of Amazon’s $230 million dollar
multistory robotics fulfillment center in Northgate
Commerce Park. This facility is expected to employ
over 1,000 individuals.
Education is a primary factor when families
and businesses are considering to locate in our
City. Our school system must achieve and be
perceived as a premier school division. In 2021,
$62,775,180.00 was allocated to our school
system. This amount represented 32% of local
tax dollars and fully funded the amount requested
by the school division. Plans are underway to
build a new John F. Kennedy Middle School and
an addition to Northern Shores Elementary, which
was recognized nationally as a Blue Ribbon School.
Recreational opportunities continue to expand
and develop thanks to our nationally accredited
Parks & Recreation Department. During 2021,
enhancements of trails, Lone Star Park upgrades,
and playground improvements were a few of
the projects completed. The highly anticipated
Bennetts Creek Recreation Center is scheduled to
3 / Popular Annual Financial Report
MAYOR’S MESSAGE
Popular Annual Financial Report / 4
open in 2022. As we plan for the future, funds
have been allocated for Nansemond River access
and a Downtown Festival Venue.
Parks & Recreation, in cooperation with the Division
of Tourism, contributes immensely to the social
well-being of our citizens by providing numerous
programs and events. A few examples are TGIF
concerts, Taste of Suffolk, Carpool Cinema, Festival
of Lights, the KID ZONE before and after school
program, the Rec N Crew after school program,
activities at East Suffolk Recreation Center and
Whaleyville Recreation Center and much more.
The expansion of broadband to underserved
and non-served citizens throughout our City
has seen much progress this year as indicated
by the welcome news that over $21 million
dollars through the Virginia Telecommunication
Initiative (VATI) grant will be received for Suffolk,
Southampton County and Isle of Wight County to
provide access to over 12,000 households. This
funding, combined with additional received grants
and our participation in the Southside Network
Authority, is projected to provide universal
broadband availability for all within a few years.
Public safety is a priority as evidenced by the
nearly 30% allocation of general funds devoted
to our Police and Fire & Rescue Departments. In
addition, over $12 million is projected to be spent
on apparatus and equipment within the next five
years. The design of a much needed four bay fire
station near College Drive is underway, along
with numerous expenditures that ensure our
personnel are prepared and equipped to respond
to our citizens’ calls for assistance. Recognizing the
need to work together to address crime within
our City is a priority. National Night Out is an
example of how our citizens are willing to partner
with our public safety professionals to develop a
relationship which fosters mutual respect and a
unified effort to combat crime. The City of Suffolk
has ranked in the top five in the country for cities
with populations of 50,000 to 100,000 for fifteen
consecutive years.
With the growth our City has experienced comes
the challenge of keeping pace with infrastructure
improvements and addressing traffic concerns.
Significant corridors of congestion include Route
17, Route 10 and Route 58. Railroad crossings
also continue to be troublesome for our citizens.
City staff has taken advantage of opportunities to
leverage local dollars to obtain State and Federal
funds to mitigate these issues. Noteworthy
projects currently underway include Route 58 and
the Nansemond Parkway/Wilroy Road Overpass
along with the Shoulders Hill/Route 17 and
Crittenden Road/Route 17 intersections. There
is also the encouraging news that the Hampton
Roads Transportation Accountability Commission
has moved up the priority of improvements to
Route 17 and Route 10, which could result in
accelerated funding.
Public Works also continues to monitor, expand and
modify bus routes provided by Virginia Regional
Transit with action taken after considerable analysis
and public input.
In conclusion, Suffolk is thriving and opportunities
abound for all to enjoy. We are in an enviable
position and look forward to a continued bright
future for our City.
Mayor Michael D. “Mike” Duman
5 / Popular Annual Financial Report
CITY
LEADERSHIP
The City of Suffolk is governed by a 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.
The Suffolk City Council has an
established vision for the City which
sets the course for Suffolk over the next
13 years. Vision 2035 is described as:
Suffolk is a vibrant and fiscally strong
community leading the region in
advancements in education, comprehensive
transportation, public safety and diverse
economic growth while continuing to
preserve its rural heritage and enhancing
its neighborhoods and urban centers.
Throughout 430 square miles of rich
land and pristine waterways, citizens
and tourists treasure the beautiful trails,
rivers and open spaces. Residents, visitors
and merchants delight in the revitalized
downtown featuring cultural, educational
and recreational opportunities. Diverse
shopping, businesses and entertainment
venues abound. A sense of harmony and
pride permeates this rare community, where
crime is low; where schools are cutting
edge; where people and goods move safely
and efficiently throughout the City; and
where citizens receive valuable services and
have opportunities to be engaged. Suffolk
is the desired destination of the Hampton
Roads Region.
The City will achieve this by focusing on the
following priorities, each of which will be
highlighted within this report:
• Expanded Economic Development
• Public Education
• Leisure, Health, and Wellness
• Transportation
• Public Safety
• Financial Stability
• Growth Management and
Comprehensive Planning
• Civic Engagement and Responsive
City Services
Mayor Michael D. Duman
Donald Z. Goldberg
Suffolk Borough
Popular Annual Financial Report / 6
Albert Moor II, P.E.
City Manager
Vice Mayor Leroy Bennett
Cypress Borough
Timothy J. Johnson
Holy Neck Borough
Shelley Butler Barlow
Chuckatuck Borough
Lue R. Ward, Jr.
Nansemond Borough
Roger W. Fawcett
Sleepy Hole Borough
Leotis L. Williams
Whaleyville Borough
7 / Popular Annual Financial Report
ABOUT OUR CITY
QUICK FACTS
Consolidated as City of Suffolk
and City of Nansemond
(formerly Nansemond County) January 1, 1974
GEOGRAPHY
Land 400 square miles
Water 30 square miles
GOVERNMENT
Form of Government Council-Manager
Chief Elected Official Mayor
8-Member City Council 4-Year Terms
Full Time Equivalent City Employees 1392
DEMOGRAPHICS*
Population 94,960
Unemployment Rate 5.0%
Median Household Income* $74,884
Median Home Cost $281,400
*Sources: Weldon Cooper Center for Public Service, Virginia Employment Commission, Bureau of Economic Analysis, U.S. Census Bureau.
SUFFOLK’S PROFILE - FISCAL YEAR 2021
The present City of Suffolk was formed January 1, 1974, from the consolidation of the City of Suffolk and the City of Nansemond (formerly Nansemond Coun-ty). The City is Virginia’s largest city in land area and one of the top fifteen largest cities in land area in the nation with over 400 square miles of land mass and 30 square miles of waterways. The diverse landscape includes a mix of rural, suburban and urban develop-ment areas. The City is situated in the western por-tion of Hampton Roads, Virginia’s coastal plain area, and is bound by the James River to the north, the Cities of Chesapeake and Portsmouth to the east, the State of North Carolina to the south, and the Coun-ties of Southampton and Isle of Wight to the west. The City of Suffolk is one of seven major cities that form the Norfolk-Virginia Beach-Newport News met-ropolitan area with 1.7 million people. This region is also known as the Hampton Roads area. The City’s government is organized under the Council-Manager
form of government. The governing body, the City Council, is composed of seven members and a Mayor who collectively develop policies for the admin-istration of the City. The Mayor is elected at large and each Council Member is elected by borough in a city-wide election every other year, with terms of office being four years. The City Council appoints a City Manager to act as administrative head of the City. The City Manager serves at the pleasure of City Council and carries out the City Council’s policies and directs business procedures. The City Manager also appoints the directors of all departments. As a full service city, Suffolk provides a broad range of munic-ipal services authorized by statute or charter. These services include education, public safety, highways and streets, parks and recreation, sanitation, health and social services, public improvements, planning and zoning, public utilities, storm water manage-ment and general administrative.
SUFFOLK PRIORITIES
Popular Annual Financial Report / 8
Suffolk is the fastest growing city in Hampton Roads and is well positioned for continued growth and pros-perity. With a diversified and skilled workforce, proximity to the Port of Virginia, available land for develop-ment, 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 business and investment, create jobs, and provide an invig-orating 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.
NEW AND EXPANDING BUSINESS HIGHLIGHTS JANUARY 1 – DECEMBER 31, 2020
NEW BUSINESS SECTOR INVESTMENTGXO Warehousing & Distribution $ 20,000,000Dart Advantage Logistics Warehousing & Distribution $ 20,000,000Branch Civil Office $ 2,100,000Kristi Corporation Adv Manufacturing $ 1,100,000
ACI Atlantic Constructors Adv Manufacturing $ 320,000
EXPANDING BUSINESS SECTOR INVESTMENT
Smithfield Foods Office $ 1,700,000
Amazon Warehousing & Distribution $ 1,500,000
Tidewater Animal Clinic Medical $ 900,000
Continental Terminals Food & Beverage Processing $ 500,000
The Economy of Suffolk is continuing to grow as evidenced by the following trends:
• Median home sales are up 10% from last year.
• Median Household Income (MHI) has grown 49% from 2000 to 2020.
• Median Household Income is up 7% from FY 2020.
THE INFORMATION IN THIS SECTION REFLECTS THE DATA FOR CALENDAR YEAR 2020
EXPANDED ECONOMIC DEVELOPMENT
An interestingly diverse group of retailers opened to the public in 2020, such as fitness clubs, convenience stores, coffee shops, specialty gift shops, financial services and more. The retailers spent over $40 million in 2020 to enter or expand in the Suffolk market.
• Food & Beverage
• Retail
• Advanced Manufacturing
• Modeling and Simulation
• WH & Distribution
• Medical
• Office
• Hospitality
$84.8M+Capital Investment 475New Jobs Created 766K+Square Footage Impacted
2%
1%
1%2%
2%
4%23%
30%
2%
2%2%
1%
22%
44%
48%
32%
3%
8%
11%
60%
9 / Popular Annual Financial Report
SUFFOLK PRIORITIES
PUBLIC EDUCATION
GROWTH MANAGEMENT AND
COMPREHENSIVE PLANNING
The City Council and City Management place a high priority on education in the City. Over the next ten years, approximately $394.4 million has been appropriated or planned for in the Capital Improvements Plan for renovations and new schools, as well as provide for HVAC improvements and a new operations facility. Suffolk Public Schools has 2,021 full time employees.
Suffolk features many development and character
types, from dense, walkable urban neighborhoods, to
riverside communities, and rural villages. The plan em-
phasizes enhancing existing character and promoting
quality new development.
Suffolk continues to see population growth with an 12.3% increase since the 2010 Census.
This population trend is projected to continue over the foreseeable future. By 2040, we expect to see an
increase in population by 30%.
The Suffolk Department of Planning and Community Development managed the review and approval of 100
site plans and engineering plans.
Strategic planning, key location, a highly-trained workforce and business-friendly environment once again
catapulted Suffolk to the enviable position of one of the fastest growing cities in Virginia and a top pick
for business development. The residential growth and change in Suffolk require the City to be proactive in
planning for its future to ensure efficient and effective delivery of services and a high quality of life for its
citizens. Through the proficient management of residential and commercial development, the City contin-
ues to offer families and businesses plenty of room to live, work and play.
Popular Annual Financial Report / 10
TRANSPORTATION
The residential growth and change in Suffolk require the City to be proactive in
planning for its future to insure efficient and effective delivery of services and a
high quality of life for its citizens.
The transportation network plays a key role in accommodating growth within Suffolk and providing con-
nections throughout the region. The 2035 Comprehensive Plan addresses areas of limited connectivity
within the City, as well as issues such as congestion, heavy freight traffic, emergency preparedness, and
promoting mobility and alternate forms of transportation.
Fiscal Year 2021
Accomplishments
• Inspected 75 bridges to meet State and
Federal standards.
• Purchased 3 new buses to replace the
aging transit fleet.
• Completed bus stop improvements at
seven bus stops.
11 / Popular Annual Financial Report
SUFFOLK PRIORITIES
• The Suffolk Health Department provided immuniza-
tion services to almost 300 Suffolk citizens in FY 2021.
LEISURE, HEALTH, AND WELLNESS
CIVIC ENGAGEMENT AND
RESPONSIVE CITY
SERVICES
PUBLIC SAFETY
• National Night Out 2021, an annual community
event promoting police-community partnerships,
was named #3 in the nation.
• The Police Department completed Crisis Intervention
training or Mental Health First Aid with 100% of its
Officers and Communications Operators.
• Police - Completed 100% of the Commission on Ac-
creditation for Law Enforcement Agencies (CALEA)
communications standards and standard operating
procedures.
• Suffolk Sheriff’s Office staff has ensured that over
95,000 visitors and employees were provided a safe
and secure environment allowing them to utilize the
City of Suffolk Courts Building without threat, fear of
injury or intimidation as well as maintaining COVID-19
safety screening protocols for all visitors and stake-
holders.
• 37 Firefighter recruits completed and an additional 40
new recruits began the Fire Academy.
• Added 8 certified Firefighter/Medics and 4 Tactical
Medic Team members.
• 18 new Firefighters were recruited for the new
College Drive Fire Station.
• Animal Control - Increased animal adoptions by 4%.
CITIZEN REPORTING
• Received the Award for Outstanding Achievement
in Popular Annual Financial Reporting from the
Government Finance Officers Association of the
United States and Canada (GFOA).
• Earned Accreditation for Continued Excellence in
meeting Statewide Standards of Performance by the
Virginia Commissioners of the Revenue Association.
COMPLETED AND UPCOMING CAPITAL PROJECTS
• Seaboard Coastline Trail Phase II
• Colonial Avenue Roadway Realignment
• Fire Station 1 Site Improvements
• Sleepy Hole Golf Course Cart Storage Building
• Closed Drainage and Street Improvements
• Water and Sewer System Upgrades
• Inclusive playground at Bennetts Creek Park
• The Suffolk Public Library launched an expanded
WiFi2Go program (50 total devices) to provide wire-
less internet access to people with varying needs
throughout the community.
• Established the Suffolk Commonwealth’s Attorney’s
Citizens Academy and CSI Camp for children ages
12-15 years of age.
• Conducted 4-H youth development programs and
projects through socially distanced means and
through interactive online webinars.
Popular Annual Financial Report / 12
The City is committed to being responsible stewards of our taxpayer dollars and will continue to address the strategic needs and priorities of the City through the implementation of cost reduction strategies.
• AAA Bond Rating
In September 2021, 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). Having an AAA rating is very beneficial to
the City. Having an AAA rating makes the City more capable of borrowing large sums of money com-
pared to institutions that have a lower credit rating. With more access to credit, the City can grow at a
lower cost of borrowing. This savings can go towards other City projects.
• Achieved a current 3-year combined real estate and personal property tax collection rate of 98.6%.
• Achieved 100% of the City’s financial policy goals through the adopted annual operating budget.
• Created the Downtown Business Development Program to provide grant assistance to retailers in the
Downtown corridor.
In FY 2021, City Council adopted revised financial policies to continue to strengthen the City’s financial
position. The unassigned general fund balance is set at 20% of the budgeted governmental funds
expenditures. Upon achieving 20%, any additional surplus will be applied as follows:
1) Up to $500,000 to be used for one time needs.
2) Remaining surplus will be split 50% to a Capital reserve and 50% to a budget stabilization reserve
fund until such reserve equals 2% of budgeted expenditures. At this point, all remaining surplus is
put in the capital reserve.
City Council approval is required to use any of the reserves.
FINANCIAL STABILITY
OTHER ACCOMPLISHMENTS
FINANCIAL REPORTING AWARDS
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 to the City of Suffolk, Virginia for
its annual comprehensive annual financial report for the fiscal year ended June 30, 2020, repre-
senting the thirty-seventh consecutive year that the City has received this award. The Certificate
of Achievement is a prestigious national award recognizing conformance with the highest stan-
dards for preparation of state and local government financial reports. In order to be awarded a
Certificate of Achievement, 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 appli-
cable legal requirements.
Annual Budget
The Government Finance Officers Association of the United States and Canada (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 fourteenth consecutive year
for this recognition as it is valid for a one-year period.
13 / Popular Annual Financial Report
WHERE THE MONEY COMES FROM
When assessing the financial results of the City, it is important that we focus on the City’s general fund. This
page and the next report general fund financial data only. The general fund is the general operating fund
of the City and supports the regular day-to-day operations of the City. It is used to account for all revenues
and expenditures of the City, except those required to be accounted for in another fund such as capital
projects, grants and debt service funds, and utility, refuse, and stormwater activities.
Like all governments, the City must raise funds to pay for the services that it provides to its citizens and businesses. These sources of funds, referred to as revenue, are raised through grants, charges, and taxes.
GENERAL FUND REVENUE BY SOURCE
(IN MILLIONS) EXCLUDING TRANSFERS
In total, 2021 revenue increased by approximately $5.9 million when compared to 2020.
The City of Suffolk has a variety of revenue sources to fund operations. The largest
general fund revenue sources are real estate and personal property taxes, followed by
other local taxes and state revenue.
The chart above indicates the growth in the gen-eral property tax revenue over the past ten years. The increase in the real estate and personal prop-erty taxes is due to a combination of an increase in the overall assessed value, as well as limited tax rate increases for education and public safety.
Real Estate and Personal Property Taxes $144.4 - 61.9%
Other Local Taxes $53.1 - 22.8%Fines and Forfeitures $0.7 - 0.3%
Charges for Services $3.0 - 1.3%
Miscellaneous $0.8 - 0.3%
State Revenue $23.1 - 9.9%
Federal Revenue $5.3 - 2.3%
Revenue from Use of Money and Property $0.8 - 0.3%
Permits, Fees and Regulatory Licenses $2.1 - 0.9%General Fund Revenue By Source (In Millions)
Revenue by Source:
FY Ending
06/30/2020
FY Ending
06/30/2021
Real Estate and Personal Property Taxes 140.0$ 144.4$
Other Local Taxes 48.7 53.1
Permits, Fees and Regulatory Licenses 1.8 2.1
Fines and forfeitures 0.8 0.7
Revenue from Use of Money and Property 2.7 0.8
Charges for Services 3.4 3.0
Miscellaneous 3.0 0.8
State Revenue 21.6 23.1
Federal Revenue 5.4 5.3
Total Revenues 227.4$ 233.3$
** Do not include Transfers In
Page 16 of CAFR
General Fund Expenditures by Function (In Millions)
Expenditures by Function:
FY Ending
06/30/2020
FY Ending
06/30/2021
General Government Administration 16.5$ 17.4$
Judicial Administration 9.2 9.5
Public Safety 63.5 63.6
Public Works 1.0 1.0
Health and Welfare 14.7 14.6
Education 58.1 65.5
Parks, Recreation and Cultural 11.1 10.7
Community Development 6.4 5.7
Nondepartmental 0.6 0.8
Total Expenditures 181.1$ 188.8$
Page 16 and page 43 (Transfers to) of the CAFR
** Do not include Transfers Out for Debt and Other
Page 16 of CAFR
General Fund Revenue By Source (In Millions)
Revenue by Source:
FY Ending
06/30/2020
FY Ending
06/30/2021
Real Estate and Personal Property Taxes 140.0$ 144.4$
Other Local Taxes 48.7 53.1
Permits, Fees and Regulatory Licenses 1.8 2.1
Fines and forfeitures 0.8 0.7
Revenue from Use of Money and Property 2.7 0.8
Charges for Services 3.4 3.0
Miscellaneous 3.0 0.8
State Revenue 21.6 23.1
Federal Revenue 5.4 5.3
Total Revenues 227.4$ 233.3$
** Do not include Transfers In
Page 16 of CAFR
General Fund Expenditures by Function (In Millions)
Expenditures by Function:
FY Ending
06/30/2020
FY Ending
06/30/2021
General Government Administration 16.5$ 17.4$
Judicial Administration 9.2 9.5
Public Safety 63.5 63.6
Public Works 1.0 1.0
Health and Welfare 14.7 14.6
Education 58.1 65.5
Parks, Recreation and Cultural 11.1 10.7
Community Development 6.4 5.7
Nondepartmental 0.6 0.8
Total Expenditures 181.1$ 188.8$
Page 16 and page 43 (Transfers to) of the CAFR
** Do not include Transfers Out for Debt and Other
Page 16 of CAFR
N:\Finance\Audit FY2021\AFR\AFR FY21 Tables and Charts FY2021 CAFR
General Property Tax Revenue
FY04 66.4
FY05 74.9
FY06 86.9
FY07 88.8
FY08 98.4
FY09 99.4
FY10 98.8
FY11 99.5
FY12 103.6
FY13 104.6
FY14 110.2
FY15 112.9
FY16 117.6
FY17 123.4
FY18 127.3
FY19 136.2
FY20 139.1
FY21 146.7 0
20
40
60
80
100
120
140
160
FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21
Mi
l
l
i
o
n
s
Source: Comprehensive Annual Financial Reports 2011 -2021
General Property Tax Revenue
Popular Annual Financial Report / 14
WHERE THE MONEY GOES
Once the City collects taxes and other revenues, the monies must be spent efficiently to provide services
to the citizens and businesses of the City. As this section will further detail, the City provides a variety of
services to its residents and businesses.
The City is committed to ensuring
the highest level of safety for its
citizens and has expended $63.6
million towards public safety
efforts in FY2021.
Annually, the City Manager submits a budget for City Council’s adoption. The proposed budget must not
include expenditures that exceed estimated opening balances and anticipated income. The budget process
is approached with a focus on maintaining core services critical to residents, while simultaneously identify-
ing sustainable savings that strengthen the City’s ability to deliver services more efficiently and effectively.
The Real Estate tax rate of $1.11 per $100 of assessed value is the 3rd lowest in the region.
Public Safety, $63.6 - 33.7%
Judicial Administration, $9.5- 5.0%
Nondepartmental, $0.8 - 0.4%
Education, $65.5 - 34.7%
Community Development, $5.7 -3.0%
Parks, Recreation, and Cultural, $10.7 - 5.7%
General Government Administration, $17.4 - 9.2%
Health and Welfare, $14.6 - 7.7%
Public Works, $1.0 - 0.5%
General Fund Revenue By Source (In Millions)
Revenue by Source:
FY Ending
06/30/2020
FY Ending
06/30/2021
Real Estate and Personal Property Taxes 140.0$ 144.4$
Other Local Taxes 48.7 53.1
Permits, Fees and Regulatory Licenses 1.8 2.1
Fines and forfeitures 0.8 0.7
Revenue from Use of Money and Property 2.7 0.8
Charges for Services 3.4 3.0
Miscellaneous 3.0 0.8
State Revenue 21.6 23.1
Federal Revenue 5.4 5.3
Total Revenues 227.4$ 233.3$
** Do not include Transfers In
Page 16 of CAFR
General Fund Expenditures by Function (In Millions)
Expenditures by Function:
FY Ending
06/30/2020
FY Ending
06/30/2021
General Government Administration 16.5$ 17.4$
Judicial Administration 9.2 9.5
Public Safety 63.5 63.6
Public Works 1.0 1.0
Health and Welfare 14.7 14.6
Education 58.1 65.5
Parks, Recreation and Cultural 11.1 10.7
Community Development 6.4 5.7
Nondepartmental 0.6 0.8
Total Expenditures 181.1$ 188.8$
Page 16 and page 43 (Transfers to) of the CAFR
** Do not include Transfers Out for Debt and Other
Page 16 of CAFR
General Fund Revenue By Source (In Millions)
Revenue by Source:
FY Ending
06/30/2020
FY Ending
06/30/2021
Real Estate and Personal Property Taxes 140.0$ 144.4$
Other Local Taxes 48.7 53.1
Permits, Fees and Regulatory Licenses 1.8 2.1
Fines and forfeitures 0.8 0.7
Revenue from Use of Money and Property 2.7 0.8
Charges for Services 3.4 3.0
Miscellaneous 3.0 0.8
State Revenue 21.6 23.1
Federal Revenue 5.4 5.3
Total Revenues 227.4$ 233.3$
** Do not include Transfers In
Page 16 of CAFR
General Fund Expenditures by Function (In Millions)
Expenditures by Function:
FY Ending
06/30/2020
FY Ending
06/30/2021
General Government Administration 16.5$ 17.4$
Judicial Administration 9.2 9.5
Public Safety 63.5 63.6
Public Works 1.0 1.0
Health and Welfare 14.7 14.6
Education 58.1 65.5
Parks, Recreation and Cultural 11.1 10.7
Community Development 6.4 5.7
Nondepartmental 0.6 0.8
Total Expenditures 181.1$ 188.8$
Page 16 and page 43 (Transfers to) of the CAFR
** Do not include Transfers Out for Debt and Other
Page 16 of CAFR
GENERAL FUND EXPENDITURE BY FUNCTION
(IN MILLIONS) EXCLUDING TRANSFERS
15 / Popular Annual Financial Report
HOW WE ARE DOING
The following charts show the current 3-year trend of general fund revenue by source and general fund expenditures by function. The City can use this data to analyze the reasons for changes in revenue and the best uses of the City’s funds from year to year.
Revenue Highlight: Real estate and personal property tax revenue is the City’s largest revenue source. The property tax revenue balance totaled $144.4 million and $140.0 million in fiscal year 2021 and 2020, respectively. The increase in the real estate and personal property taxes over time is due to increase in as-sessed value attributable to a combination of growth and increased value.
GENERAL FUND REVENUE BY SOURCE 3 YEAR TREND (IN MILLIONS)
GENERAL FUND EXPENDITURE BY FUNCTION 3 YEAR TREND (IN MILLIONS)
Expense Highlight: Education continues to be one of the City’s highest priorities and commitments representing $65.5 million. This amount is an increase from fiscal year 2020 and represents 23.9% of overall governmental expenses. This increase is evidence of the continued commitment to providing high
quality education in Suffolk Public Schools.
EXPENSE AND REVENUE TRENDS
Public Safety
Judicial Administration
Nondepartmental
Education
Community Development
Parks, Recreation, and Cultural
General Government Administration
Health and Welfare
Public Works
Real Estate and Personal Property Taxes
Other Local Taxes
Fines and Forfeitures
Charges for Services
Miscellaneous
State Revenue
Federal Revenue
$-$20.0 $40.0 $60.0 $80.0 $100.0 $120.0 $140.0 $140.0
2021
2020
2019
Revenue from Use of Money and Property
Permits, Fees and Regulatory Licenses
$-$10.0
0.8
5.3
0.8
0.8
3.0
2.1
0.7
1.0
9.5
5.7
10.7
23.1
53.1
144.4140.0133.8
65.5
63.6
14.6
17.4
0.6
5.4
3.0
2.7
3.4
1.8
0.8
1.0
9.2
6.4
11.1
21.6
48.7
58.1
63.5
14.7
16.5
0.7
5.9
1.8
3.0
3.6
1.3
0.8
1.0
8.8
4.6
12.0
21.4
46.3
60.4
62.4
13.6
16.2
$20.0 $30.0 $40.0 $50.0 $60.0 $70.0
2021
2020
2019
HOW WE ARE DOING NET POSITION
Popular Annual Financial Report / 16
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.
The City’s combined net
position (which is the
City’s “Bottom Line”)
increased by $24.6 mil-
lion in FY 2021, of which
approximately 2.51%
represents resources
that are subject to external
restrictions or enabling
legislation.
The City has a solid financial position with 24.2% of net position, or $141.4 million, as unrestricted. The unrestricted portion of net position is available to allow the City to provide services to citizens.
Net investment in capital assets (land, buildings, infrastructure, improvements, machinery and equip-
ment, less accumulated depreciation and related outstanding debt used to acquire those assets) of $429.3 million. This equates to 73.3% of the total net position. These assets are not available for future spending because they are assets used to provide services to citizens.
NET POSITION (IN MILLIONS)
(Tables and Charts - MDA Net Position)Tables and Charts FY2021 CAFR
N:\Finance\Audit FY2021\AFR\AFR FY21
CITY OF SUFFOLK, VIRGINIA
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
2021 2020 2021 2020 2021 2020
Current and other assets 271.5$ 232.5$ 93.8$ 74.3$ 365.3$ 306.8$
Capital and other non-current assets 541.6 537.9 462.3 464.2 1,003.9 1,002.1
Total assets 813.1 770.4 556.1 538.5 1,369.2 1,308.9
Deferred Outflows of Resources 40.8 35.3 28.9 21.5 69.7 56.8
Current and other liabilities 38.8 25.1 6.4 7.9 45.2 33.0
Long-term liabilities 386.3 362.9 410.1 395.8 796.4 758.7
Total liabilities 425.1 388.0 416.5 403.7 841.6 791.7
Deferred Inflows of Resources 11.6 11.9 0.2 1.2 11.8 13.1
Net position:
Net investment in capital assets 318.3 312.9 111.0 107.0 429.3 419.9
Restricted 12.2 9.5 2.6 2.6 14.8 12.1
Unrestricted 86.7 83.4 54.7 45.6 141.4 129.0
Net position 417.2$ 405.8$ 168.3$ 155.1$ 585.5$ 560.9$
Net Position
(In Millions)
Governmental Activities Business-type Activities Total
17 / Popular Annual Financial Report
CAPITAL ASSETS
The City’s capital assets for its governmental and business-type activities as of June 30, 2021, totaled $1,003.9 million, net of accumulated depreciation. This investment in capital assets includes land, build-
ings, improvements other than buildings, infrastructure, machinery and equipment and construction in
progress.
CAPITAL ASSETS (NET OF DEPRECIATION IN MILLIONS)
N:\Finance\Audit FY20189\CAFR\Tables and Charts FY2019 CAFR.xlsx
(MDA Capital Assets Tab)
2020 2019 2020 2019 2020
Land 24.2 $24.2 $4.7 $4.7 $28.9 $
Construction in progress 85.3 75.4 33.9 25.0 119.2
Buildings 88.6 91.5 73.0 75.0 161.6
Infrastructure 265.1 263.2 - - 265.1
Improvements other than buildings 37.4 36.7 281.5 278.1 318.9
Machinery and equipment 35.1 38.3 62.0 64.8 97.1
Intangibles 2.2 2.4 9.1 10.6 11.3
Total 537.9 $531.7 $464.2 $458.2 $1,002.1 $
(in Millions)
Governmental Activities Business-type Activities Total
Capital Assets
(net of depreciation)
Capital Assets
N:\Finance\Audit FY2021\AFR\AFR FY21 Tables and Charts FY2021 CAFR
(MDA Capital Assets Tab)
2021 2020 2021 2020 2021
Land 23.5$ $24.2 $4.7 $4.7 $28.2 $
Construction in progress 112.8 85.3 27.0 33.9 139.8
Buildings 86.5 88.6 72.9 73.0 159.4
Infrastructure 249.2 265.1 - - 249.2
Improvements other than buildings 39.4 37.4 289.8 281.5 329.2
Machinery and equipment 28.5 35.1 60.2 62.0 88.7
Intangibles 1.7 2.2 7.7 9.1 9.4
Total 541.6 $537.9 $462.3 $464.2 $1,003.9 $
(in Millions)
Governmental Activities Business-type Activities Total
Capital Assets
(net of depreciation)
2020
28.9 2.809045
119.2 13.92569
161.6 15.87808
265.1 24.82319
318.9 32.79211
97.1 8.835541
11.3 0.936348
1,002.1
(in Millions)
Total
Capital Assets
(net of depreciation)
Assets are increasing due
to the City’s commitment
to maintaining and adding
to the infrastructure of
the City through the cap-
ital improvement plan.
Some of the improve-
ments contained in the
City’s adopted ten-year
capital improvement plan
are as follows:
• School facility major
repairs and maintenance
• Rt. 17/Shoulders Hill
Intersection Improvements
• Fire Apparatus
acquisition
• New Central Library
• Reconstruction of Rt.
58/Holland Rd
Infrastructure
25%
Buildings
16%
Construction in progress
14%
Land
3%
Intangibles 1%Machinery and equipment 9%
Improvements other than buildings 32%
Capital Assets
CAPITAL ASSETS DEBT ADMINISTRATION
Popular Annual Financial Report / 18
The Commonwealth of Virginia limits the amount of general obligation debt outstanding to 10% of the lo-cality’s assessed value of real property, which is $1.06 Billion for 2021. The City Charter further limits this general obligation limit to 7% of the City’s assessed value of real property, or $741.8 million. Of the debt shown above, only $446.9 million is general obligation debt that is applicable to the legal debt limits. The City has met both of the legal debt limits. Achieving these limits represents the City’s conservative debt borrowing policy.
ACCOUNTING TERMS
OUTSTANDING DEBT (IN MILLIONS)
N:\Finance\Audit FY2021\AFR\AFR FY21 Tables and Charts FY2021 CAFR
(MDA LT Debt Tab)
2021 2020 2021 2020 2021 2020
Bonds payable 275.7 $266.6 $380.0 $360.9 $655.7 $627.5
Bond Premiums 17.8 20.5 18.0 24.6 35.8 45.1
-
Capital leases 1.3 1.5 0.4 0.5 1.7 2.0
Loans and notes payable - - - - - -
Total 294.8 $288.6 $398.4 $386.0 $693.2 $674.6
Outstanding Debt (in millions)
Governmental Activities Business-type Activities Total
N:\Finance\Audit FY2021\AFR\AFR FY21 Tables and Charts FY2021 CAFR
(MDA LT Debt Tab)
2021 2020 2021 2020 2021 2020
Bonds payable 275.7 $266.6 $380.0 $360.9 $655.7 $627.5
Bond Premiums 17.8 20.5 18.0 24.6 35.8 45.1
-
Capital leases 1.3 1.5 0.4 0.5 1.7 2.0
Loans and notes payable - - - - - -
Total 294.8 $288.6 $398.4 $386.0 $693.2 $674.6
Outstanding Debt (in millions)
Governmental Activities Business-type Activities Total
Long-term debt: At the end of fiscal year 2021, the City had total outstanding
debt of $693.2 million, including general government, school construction and
utility fund debt.
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.
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.”
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 re-
porting 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 Reve-
nues 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.
Trend: A general direction in which something is developing or changing.
Do you like this report? What other information would you like to see contained in this report?
Please let us know by contacting the Finance Department by emailing FinanceEmail@suffolkva.us,
calling 757-514-7500, or stopping by the Department of Finance located in City Hall at
442 West Washington Street, Suffolk, Virginia 23434.
Please visit the City’s website at www.suffolkva.us for additional information
including the City’s Annual Comprehensive Financial Report.
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