HomeMy WebLinkAboutCity of Newport News - Public Financial ReportFiscal Year Ending
June 30, 2021
NEWPORT NEWS
Introductory Section:
Introduction .........................................................................................3
City Government Officials ..................................................................4
Strategic Priorities ...............................................................................5
Local Economy ....................................................................................6
Newport News by the Numbers .......................................................7
Financial Section:
Statement of Net Position .................................................................8
Statement of Activities .......................................................................9
Revenues.............................................................................................10
Expenses .............................................................................................11
Long Term Debt .................................................................................12
General Fund ......................................................................................13
Fund Balance .....................................................................................14
Closing Section:
Year in Review .....................................................................................15
Table of Contents
PAFR FY2021 | 3
The Popular Annual Financial Report (PAFR) is a short form report that provides Newport
News residents and other interested parties a summarized view of the City’s financial
activities. The PAFR offers a picture of the City’s general financial condition, including a
brief analysis of where the City’s revenues come from and where those dollars are spent.
The City of Newport News produces an audited financial statement each year called the
Annual Comprehensive Financial Report (ACFR). This is an in-depth look at the financial
statements of the City and follows Generally Accepted Accounting Principles (GAAP).
The information in this PAFR is derived from the ACFR for the fiscal year ended June 30,
2021. This report provides a summary of financial information for the City and School
Board, but is not required to provide the same level of detail as the ACFR. This report does
not include information on all the City’s funds, component units, or all necessary financial
statements and note disclosures. Therefore, it does not fully conform to GAAP.
To review the ACFR in its entirety please visit https://www.nnva.gov/458/accounting
Outstanding Achievement in ACFR
The ACFR, one of the supporting documents for this report, represents award-winning work,
with the City of Newport News receiving the Government Finance Officers Association’s
Certificate of Achievement for Excellence in Financial Reporting each year since 1979.
Department of Finance
The Accounting staff with the Department of Finance is proud to present the PAFR for the
fiscal year ending June 30, 2021. We hope you enjoy reading this report and invite you to
access this report and our audited ACFR online for more detailed information.
Introduction
PAFR FY2021 | 4
SOUTH DISTRICT
McKinley L. Price, DDS, Mayor
At-large
Term Expires December 31, 2022
Cynthia D. Rohlf, City Manager
Appointed March 2017
NORTH DISTRICT Councilwoman Sharon P. Scott, MPA
North District 1, Seat B
Term Expires December 31, 2022
Councilman Marcellus L. Harris III
North District 1, Seat A
Term Expires December 31, 2024
CENTRAL DISTRICT Councilman David H. Jenkins
Central District 2, Seat B
Term Expires December 31, 2022
Councilwoman Dr. Patricia P. Woodbury
Central District 2, Seat A
Term Expires December 31, 2024
Vice Mayor Saundra Nelson Cherry, D. Min.
South District 3, Seat B
Term Expires December 31, 2022
Councilwoman Tina L. Vick
South District 3, Seat A
Term Expires December 31, 2024
City Government Officials
PAFR FY2021 | 5
1. Health, Safety & Well-Being
2. Education & Learning
3. Opportunity & Economic
Prosperity
4. Fun, Entertainment & Culture
6. Quality Government &
Innovation
7. Environmental Stewardship &
Sustainability
5. Welcoming Communities &
Connected Neighborhoods
PEOPLE
PLACES
GOVERNMENT
Strategic Priorities
Newport News is a vibrant City at the mid-point of the Atlantic Coast and at the center of
the Virginia Beach-Norfolk-Newport News Metropolitan Statistical Area. The region is the
37th largest market in the United States and the largest metro area between Washington
and Atlanta, with a population estimate of 1.7 million. The area is defined by science and
technology industries, balancing commercial and military applications, research facilities,
higher education, distribution, manufacturing and healthcare.
Newport News Quick Facts
• Incorporated in 1896
• Population of 186,247 according to 2020 decennial census data
• 5th largest city by population in the Commonwealth of Virginia
• 4th largest city by acreage in the Commonwealth of Virginia
• Occupies 69 square miles
• Per Capita Income of $44,465 (2019)
• Median Age of 33
1. Huntington Ingalls Industries, Inc.
2. Riverside Regional Medical Center
3. Newport News Public Schools
4. U.S. Department of Defense
5. City of Newport News
6. Ferguson Enterprises Inc.
7. Christopher Newport University
8. U.S. Department of Army and Air Force
9. Canon
10. Walmart
Top 10 Employers
Local Economy
NEWPORT NEWS
PAFR FY2021 | 6
PARKS &
RECREATION
Newport News by the Numbers
PAFR FY2021 | 7
Fiscal Year 2021
Average Daily Students
Elementary Schools
Secondary Schools
Libraries
Calls for Service
Patrol Units
Reduction in Crime
Emergency Medical Services Calls
Public Assistance Calls
Fire Stations
Fire Trucks & Ambulances
Fire Hydrants
Gallons per Day
Meters Connected
Parks
Park Acreage
Celebration in Lights Visitors
Recyclables Collected (Tons)
Streets (Miles)
Streetlights
Potholes Repaired
27,113
24
13
4
165,480
244
8.8%
23,474
3,064
11
43
11,472
33,000,000
132,100
36
8,696
151,819
8,738
506
21,026
13,718
EDUCATION
POLICE
FIRE
WATERWORKS
PUBLIC WORKS
PARKS &
RECREATION
What Is Net Position?
The financial balance sheet, known in accounting terms as the “Statement of Net
Position” provides a picture of the health of the City at the end of the fiscal year.
Categories of Net Position
Net Investment in Capital Assets: Investment in capital assets, less accumulated
depreciation and any related outstanding debt used to acquire those assets.
Restricted: Amounts that have legal restrictions on how these resources may be used.
Unrestricted: Remaining amounts that can be used to meet the City’s various obligations.
PAFR FY2021 | 8
Statement of Net Position
City of Newport News 2021 Statement of Net Position
Assets
Current Assets
Capital Assets, Net
Deferred Outflows
Total Assets + Deferred Outflows
Liabilities
Current Liabilities
Long term Liabilities
Deferred Inflows
Total Liabilities + Deferred Inflows
Net Position
Net Investment in Capital Assets
Restricted
Unrestricted (Deficit)
Total Net Position
817.8
1,641.4
206.0
2,665.2
268.9
1,576.9
69.5
1,915.3
1,118.7
103.5
(472.3)
749.9
In Millions $
PrimaryGovernment
$411.0
870.6
91.1
1,372.7
164.0
829.2
9.0
1,002.2
492.5
52.2
(174.2)
$370.5
GOVERNMENTAL
ComponentsUnits
217.0
414.1
11.3
642.4
49.5
194.0
0.5
244.0
354.1
-
44.3
398.4
BUSINESSTYPE
106.7
129.5
99.7
335.9
41.0
485.4
56.7
583.1
115.4
21.0
(383.6)
(247.2)
83.1
227.2
3.9
314.2
14.4
68.3
3.3
86.0
156.7
30.3
41.2
228.2
OTHER
Totals
FY 2021PUBLICSCHOOLS
PAFR FY2021 | 9
What is the Statement of Activities?
Similar to the financial income statement, the Statement of Activities presents the
revenues, expenses and transfers for the year and shows how the net position of the City
has changed. Changes in net position show the health of the City, with an increase being
a positive sign.
Types of Revenues
Program Revenues: Charges for services, operating and capital grants and contributions.
General Revenues: Property and other taxes and interest earnings.
Statement of Activities
City of Newport News 2021 Statement of Activities
Revenues
Program
General
Total Revenues
Expenses
General Government
Public Safety
Public Works
Education
Other Governmental Activities
Public Utility
Component Units
Total Expenses
Transfers
In (Out)
Net Position
Beginning Net Position
Change in Net Position
End Net Position
415.9
771.3
1,187.2
105.0
143.5
77.4
135.1
134.1
72.0
393.3
1,060.4
-
623.0
126.9
749.9
In Millions $
PrimaryGovernment
$181.4
479.7
661.1
105.0
143.5
77.4
135.1
134.1
-
-
595.1
9.5
295.0
75.5
$370.5
GOVERNMENTAL
ComponentsUnits
101.2
1.8
103.0
-
-
-
-
-
72.0
-
72.0
(9.5)
376.9
21.5
398.4
BUSINESSTYPE
102.7
286.2
388.9
-
-
-
-
-
-
360.7
360.7
-
(275.4)
28.2
(247.2)
30.6
3.6
34.2
-
-
-
-
-
-
32.6
32.6
-
226.5
1.7
228.2
OTHER
Totals
FY 2021PUBLICSCHOOLS
PAFR FY2021 | 10
Total Revenue for 2021 was $661.1 million, an increase of 9.4% from 2020. The City’s
largest revenue source is from property tax, making up 45% of the City’s revenue.
Revenues
City of Newport News 2021 Governmental Revenues
45%
1%
35%
6%
5%
5%3%
45% Property Tax
35% Program Revenues
6% Other
5% Restaurant Food, Hotel & Motel Tax
5% Sales Tax
3% Business License Tax
1% Consumer Utility
$277.5
32.0
26.2
25.3
18.0
6.3
385.3
207.0
18.9
$611.2
285.8
29.2
27.5
24.5
18.4
6.3
391.7
194.2
18.5
604.4
300.5
31.7
30.9
23.8
19.5
6.3
412.7
229.3
19.1
661.1
Property Tax
Restaurant Food, Hotel & Motel Tax
Sales Tax
Other
Business License Tax
Consumer Utility
Total Taxes
Program Revenues
Other
Total Revenues
Revenues 2019 2020 2021
In Millions $
PAFR FY2021 | 11
Total spending in 2021 was $595.1 million, an increase of 2.9% from 2020. The City’s
governmental activities include a variety of services with $278.6 million or 47% of its
spending directed toward Education and Public Safety.
Expenses
24%
23%
18%
13%
9%
5%
4%
3%
1%
Public Safety
Education
General Government
Public Works
Health & Welfare
Parks, Recreation & Culture
Interest & Other Fiscal Charges
Community Development
Judicial Administration18%
1%
5%
4%3%
24%
23%
13%
9%
General Government
Judicial Administration
Public Safety
Public Works
Health & Welfare
Education
Parks, Recreation & Culture
Community Development
Interest & Other Fiscal Charges
Total Expenses
$ 104.5 98.0 105.0
8.1 8.0 8.3
126.2 131.2 143.5
78.2 76.4 77.4
46.2 46.6 55.7
122.3 148.7 135.1
33.7 33.6 32.9
11.7 13.5 15.5
21.0 22.1 21.7
$551.9 578.1 595.1
Expenses 2019 2020 2021
In Millions $
City of Newport News 2021 Governmental Expenses
PAFR FY2021 | 12
Credit Rating
Long Term DebtCity
City Water Works
AA+
AAA
Aa1
Aa1
Rating Agency Standard & Poor’s (S&P) Moody’s
Long Term Debt
In Million $
600
500
400
300
200
100
0 2019 2020 2021
$545
$490
$445
Outstanding Debt
General Obligation Bonds Revenue Bonds Literary Bonds
General Obligation Bonds
Literary Bonds
Revenue Bonds
Totals
In Millions $2019
432
3
54
490
2020
390
3
52
445
24
0
111
135
2021
432
3
111
545
407
3
-
410
GOVERNMENTAL BUSINESSTYPE
$
$
PAFR FY2021 | 13
General Fund
What is the General Fund?
The General Fund is the primary operating fund of the City and provides funding for the
daily operations and services of the City. It supports the core services of the City including
public safety, human services, education and general government.
General Fund Revenues
General Fund revenues increased by 3% from the prior year, primarily due to an increase
in general property tax revenue.
60%
3%
4%
23%
10%
60% General Property Taxes
23% Other Local Taxes
10% Intergovernmental
4% Charges for Services
3% Other:
Interest & Rent
Licenses & Permits
Recovered Cost
Miscellaneous
Fines & Forfeitures
General Fund Expenses
General Fund expenses decreased by 0.4% from the prior year, with public safety and
education making up the largest percentage of spending.
27%
2%
2%
2%
28%9%
24%
6%28% Public Safety
27% Education
24% General Government
9% Health & Welfare
6% Park Recreation & Culture
2% Community Development
2% Judicial Administration
2% Public Works
PAFR FY2021 | 14
Classifications of Fund Balance
Nonspendable: Amounts that are not in spendable form.
Restricted: Amount that must be spent in the way designated by an external party.
Assigned: Amount intended to be spent in a specific way, but that do not meet criteria
to be restricted.
Unassigned: Residual, spendable amounts not contained in other classifications.
General Fund - Fund Balance
$1.2
0.6
27.7
66.5
$96.0
1.3
0.6
26.7
70.6
99.2
1.5
0.6
29.8
71.4
103.3
Nonspendable
Restricted
Assigned
Unassigned
Total Funds
Classification 2019 2020 2021
In Millions $
City of Newport News 2021 Governmental Fund Balance
General Fund Balance
In Millions $
100
75
50
25
0 2019 2020 2021
$96.0 $99.2 $103.3
Unassigned Assigned Nonspendable Restricted
PAFR FY2021 | 15
COVID-19
The city received $31.2 million in 2020 in federal Coronavirus Act Relief and
Economic Stimulus (CARES) funds to assist in response efforts. In June 2021,
the city received $33.4 million in federal funds with the American Rescue Plan
Act (ARPA) to continue to address economic fallout due to COVID-19 and lay the
foundation for a strong and equitable recovery. The City will receive an additional
$33.4 million in ARPA funding in June 2022.
Health Equity Program
In FY 2021, Newport News became part of Virginia’s Health Equity Program, a
state-local partnership created to increase equitable access to essential supplies
in underserved and historically disadvantaged communities, many of which
were disproportionately impacted by COVID-19. As part of this effort, the City’s
paramedicine team distributed personal protective equipment (PPE) and public
health information to residents.
Small Business Grants
To ensure the resiliency of our local businesses, the City partnered with the
Economic Development Authority and established a series of grant programs
utilizing CARES funds to support small businesses impacted by the COVID-19
pandemic. The COVID-19 Resiliency Grant, Back to Business Grant and Grow Your
eBusiness Grant provided financial assistance to small businesses in Newport
News. Nearly 600 applications were submitted and over $1.85 million in grants
were awarded.
CARES Workforce Assistance Program
Unemployment continued to be a concern for residents as a result of the pandemic.
To address this problem head-on and help residents get back to work, the City
launched the CARES Workforce Assistance Program (C-WAP). This innovative new
program offered residents workforce development training in industries such as
healthcare, information technology, shipbuilding and repair, construction and
truck driving. Over 200 residents participated in the program, with 300 credentials
issued and 94 participants gaining employment.
Year in Review
PAFR FY2021 | 16
Supplemental Assistance Funding for Emergencies (SAFE) Program
The City expended roughly $908,000 of its Coronavirus Aid, Relief, and Economic
Security Act (CARES) funds to establish the Supplemental Assistance Funding for
Emergencies (SAFE) Program for residents. The SAFE Program provided one-time
assistance to residents who did not meet federal and state eligibility for other
social service benefits with various expenses, such as rent/mortgage, utilities,
food, medication, transportation and childcare.
CARES Non-Profit Relief
The City also used $2.7 million of its CARES funds to support local non-profit
partners who provided critical services during the pandemic. The non-profit grant
program provided operational and project support funding to 31 local non-profits
who provide services to the community.
Atkinson Boulevard Opens
Fiscal Year 2021 also saw the completion of the $65 million Atkinson Boulevard
project. This addition to the City’s roadway network provides a new 1.2 mile four
lane divided roadway with a 1,740 foot long bridge and multi-use path over the
CSX railroad and I-64 between Warwick Boulevard and Jefferson Avenue, north of
Denbigh Boulevard and south of Fort Eustis Boulevard. This project provides traffic
efficiency improvements for citizens in this developing part of the City and adds
a much needed connection between Warwick Boulevard and Jefferson Avenue.
These efficiencies provide a savings of time and reductions in air pollution for each
vehicle mile.
Bethea Basketball Court
A new outdoor basketball court donated by NFL player and Denbigh High School
graduate Antoine Bethea and the Bethea Family Foundation was completed in
FY 2021. The Antoine Bethea Basketball court, located behind Denbigh Community
Center, is the first full-sized lighted outdoor court in the City and also includes
bleachers, fencing and free WiFi for the outdoor space.
Year in Review
PAFR FY2021 | 17
Celebration in Lights
While events looked a little different during the year due to COVID-19 restrictions,
Newport News continued to offer a variety of special events for residents and
guests of all ages. Celebration in Lights, Virginia’s first drive-through holiday event,
celebrated its 28th year with 32,952 vehicles compared to 21,479 in 2019 – a 53%
increase in attendance and the 3rd highest vehicle count since the event began.
Virtual One City Marathon
Newport News celebrated the 7th anniversary of the One City Marathon in March
of 2021. The event was a success, with more than 700 entries in the five races and
a number of individuals participating in the newly created multi-race challenges,
despite the transition to a virtual event. As in prior years, the race had participants
from across the country, and this year even had participants from across the globe!
Waterworks Deploys Smart Meters
During FY 2021, Newport News Waterworks began the deployment phase of
an innovative Advanced Metering Infrastructure (AMI) project. AMI enables
continuous two-way communication over a fixed network between the water
utility system and water meters. The implementation of smart metering will reduce
wasted water because leaks can be detected and addressed sooner. In addition,
use of these smart meters will save Waterworks labor, fuel, and vehicle costs
associated with truck rollouts, and allow customers to access timely and detailed
consumption data, receive quicker response times for move-ins and move-outs,
and be alerted about potential high bills by identifying high usage earlier. This
project is expected to be completed by the end of calendar year 2023.
GeoHUB Newport News
In the fall of 2020, the City launched GeoHUB, an interactive portal for open
data, making more than 50 datasets available for citizens to view, download and
manipulate. This data sharing portal provides a user-friendly way to access City
data and information about the many projects and initiatives throughout the City
in a manner that helps drive innovation, increase civic participation and improve
how the City serves its residents.
Year in Review
YouthBuild
The City launched YouthBuild, a workforce development and education program
utilizing a $1.4 million grant from the U.S. Department of Labor. YouthBuild
provides education and occupational skill development to help participants obtain
employment in construction and other in-demand industries to include carpentry
and maintenance, and pre-apprenticeships in plumbing, HVAC and electrical
services. In the fall, YouthBuild participants put their new skills to good use by
working with Habitat for Humanity to help build a home in the City’s Southeast
Community, receiving additional instruction from certified grade A construction
professionals.
CARE Program
The City launched a progressive new program designed to provide crisis intervention
services to individuals within the City. The Community Assistance Response (CARE)
Program is the result of a partnership between the Newport News Fire Department
(NNFD), the Newport News Police Department (NNPD) and the Hampton-Newport
News Community Services Board (H-NNCSB). Members of the CARE team provide
initial support for those experiencing mental or behavioral health issues within the
city.
Youth Justice Diversion Program
The Department of Juvenile Services sought enabling legislation to create a diversion
program for low level first time offender juveniles in Newport News. HB2017 was
signed into law by Virginia Governor Ralph Northam shortly thereafter, allowing
the Department of Juvenile Services to begin the process of piloting the Youth
Justice Diversion Program (formerly known as Youth Court). The program educates
youth who make unfortunate decisions to be accountable and responsible for their
actions and provides resources they need to avoid further confrontation with the
justice system. The program is expected to start hearing cases in FY 2022.
Student Connect Library Cards
As part of the City’s ongoing efforts to support young people, Newport News Public
Library collaborated with Newport News Public Schools (NNPS) to configure a
daily data exchange that allows all NNPS students to automatically receive library
memberships.
PAFR FY2021 | 18
Year in Review
PAFR FY2021 | 19
Ferguson Headquarters Opens
Ferguson Enterprises, the largest wholesale plumbing distributor in the U.S,
completed construction of an eight-story, 260,000 square foot campus investing
nearly $83 million and creating 350 new jobs. The new facility houses 1,600 Ferguson
employees working in marketing and communications, Ferguson’s national sales
center, e-business, human resources, information technology, security and other
corporate functions.
CNI Ground Breaking
Construction began in mid-July 2021 on the first phase of construction for the
City’s Choice Neighborhoods Initiative (CNI). The mixed-use development will
feature apartments, townhomes and retail space and is a critical element in the
revitalization of the City’s Southeast Community, with an estimated completion
date of late fall 2022.
Welcome, IndieDwell
In May 2021, Governor Ralph Northam announced that IndieDwell, a
non-profit affordable housing manufacturer, will invest over $2 million to
establish an East Coast facility in the City’s Southeast Community and create
250 jobs with full benefits for community residents in partnership with Virginia
Housing. Opportunities will include on-the-job training, as well as some employee
ownership of the new entity.
Offices @ Two Five & J
In June 2021, the Offices @ Two Five & J, a 5,420 square foot co-working space,
opened in the Southeast Community. A culmination of more than $2 million in
investments, including a $480,000 grant from the Virginia Department of Housing
and Community Development’s Industrial Revitalization Fund, The Offices @ Two
Five & J serves as a business hub to encourage professional and entrepreneurial
growth and success, networking and idea sharing, while providing support services
to small business owners and entrepreneurs at all stages of business development.
Year in Review
Department of Finance
2400 Washington Avenue | Newport News, Virginia 23607