CITY OF SUFFOLK, VIRGINIA
POPULAR ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDING JUNE 30, 2020
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TABLE OF CONTENTS Mayor’s Message City Leadership
About Our City
07 08 -12
Expanded Economic Development
Growth Management and Comprehensive Planning / Public Education
Leisure, Health, and Wellness / Public Safety / Civic Engagement and Responsive Citizen Services
Where the Money Comes From
Where the Money Goes
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TO THE CITIZENS OF SUFFOLK The 2020 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 2020 Comprehensive Annual Financial Report, our formal annual report. To conform with generally accepted accounting principles (GAAP), the Annual Report 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 2020 Annual Report was audited by Cherry Bekaert LLP and has received an unmodified or “clean” audit opinion. Unlike the Annual Report, 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 Annual Report 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 Annual Report on the City’s website at www.suffolkva.us, or by contacting the Finance Department at (757) 514-7500.
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MAYOR’S MESSAGE On behalf of the Suffolk City Council, it is my pleasure to present the 2020 Popular Annual Financial Report. Without a doubt, 2020 was a challenging year for all of us, and we continue to adapt and remain flexible as we all navigate the “new normal” of the COVID-19 pandemic and aftermath. We know that inspiration and growth only come from adversity and challenge, and we’ve certainly experienced our fair share. While many things have changed, one thing is now and has always remained constant – we’ve never stopped working to provide the very best services possible for our citizens.
The City has also been successful in leveraging local dollars to obtain significant state and federal funding, thereby lessening the burden on local taxpayers. We were awarded $29.2 million in funding from VDOT for the Nansemond Parkway/Wilroy Road Overpass from the Commonwealth Railway project to provide a long-term, permanent solution to the ongoing traffic and train conflict at this intersection.
There are many “good news” stories to report. Our population numbers are continuing to grow according to the U.S. Census Bureau, and we remain one of Virginia’s fastergrowing localities. More and more people are choosing to call Suffolk home, and we’ve seen the largest percentage increase in home sales in the region, growing by 10.2% over the previous year. We’re also ranked in the Top Ten when it comes to affordable housing in Virginia. In October 2020, 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). We can proudly proclaim that we are one of an elite few cities or towns in our region with a Triple Triple-A rating. These ratings reflect the City’s continuing commitment to strong financial management.
Our recreational opportunities are also continuing to expand and develop thanks to our nationally accredited Parks & Recreation Department. We opened our first Inclusive Playground at Lake Meade Park near Downtown in 2019, offering an inclusive
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experience for people with disabilities, their families, and friends. Another such playground is slated for the northern end of our City to open in 2021. We’ve all witnessed incidents of violence and upheaval this past year across the nation. These unfortunate events further emphasize the fact that public safety is a fundamental building block for a strong foundation. We can proudly state that we are not only fortunate to have the very best public safety professionals in the region, but they are also prepared with the very best training, equipment, and technologies – all designed to keep our citizens safe and to propel our entire City forward. Public safety is more than just response times and crime stats – it’s also about engagement and mutual respect. We know that involved and informed citizens with equal opportunities for all to succeed and thrive are essential to the quality of life that we enjoy.
When it comes to Economic Development, we’re full of opportunity, even during the toughest of times. With our convenient, available transportation networks, close proximity to the Port of Virginia, easy access to rail, business-friendly climate, access to talented labor, and our high quality of life, even with the challenges of 2020, many new businesses decided to establish roots here because they are confident that it is the smartest growth strategy. They were certainly correct in that decision! As the Mayor of Suffolk, I’ve witnessed and had the opportunity to experience the many facets and inner workings of our community, and have come to know and respect the incredible people who make it all possible. Especially over the last year, I’ve seen the challenges, the struggles, the opportunities, and the celebrations, and I am always left in awe of the incredible human spirit and stories that exist.
In Suffolk, you can reap the amenities of a big City, while at the same time retain the flavor Here, hometown charm isn’t a cliché – it’ss and character of a small town. There is no our way of life and something experienced limit to what can be accomplished, and every and exhibited in Suffolk every day! That is day we’re building for tomorrow. Leadership, especially true as it relates to our Historic vision, solid management, and experience are Downtown and the ongoing renaissance of continuing to propel Suffolk to new heights our commercial core. If you haven’t joined us and innovation. As we like to say, “It’s A Good lately, come experience, see, and taste what Time to Be in Suffolk! so many are talking about. The focus is a fusion of cultures, and here, you can find it all! Mayor Michael D. “Mike” Duman
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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 to oversee the operations.
Mayor Michael D. Duman
The Suffolk City Council has an established vision for the City which sets the course for Suffolk over the next 15 years. Vision 2035 is as follows: 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.
Donald Z. Goldberg Suffolk Borough
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
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Vice Mayor Leroy Bennett Cypress Borough
Shelley Butler Barlow Chuckatuck Borough
Roger W. Fawcett Sleepy Hole Borough
Timothy J. Johnson Holy Neck Borough
Lue R. Ward, Jr. Nansemond Borough
Leotis L. Williams Whaleyville Borough
If you have questions about this report, or need additional financial information, please contact the Finance Department of the City of Suffolk by email, FinanceEmail@suffolkva.us, by phone at 757-514-7500, or by mail at Finance Department, City of Suffolk, P.O. Box 1858, Suffolk, VA 23434. Albert Moor, Interim City Manager
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ABOUT OUR CITY 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 County). 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 development areas. The City is situated in the western portion 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 Counties 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 metropolitan area with 1.6 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 administration 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 municipal 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 management, and general administrative.
SUFFOLK’S PROFILE - FISCAL YEAR 2020 QUICK FACTS Consolidated as City of Suffolk and City of Nansemond (formerly Nansemond County)
GOVERNMENT January 1, 1974
GEOGRAPHY Land Water
400 square miles 30 square miles
Form of Government Chief Elected Official 8-Member City Council Full Time Equivalent City Employees
Council-Manager Mayor 4-Year Terms 1387
DEMOGRAPHICS* Population Unemployment Rate Median Household Income* Median Home Cost
93,825 8.8% $70,664 $263,400
*Sources: Weldon Cooper Center for Public Service, Virginia Employment Commission, Bureau of Economic Analysis, U.S. Census Bureau.
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SUFFOLK PRIORITIES EXPANDED ECONOMIC DEVELOPMENT
ECONOMIC DEVELOPMENT EFFORTS BROUGHT 2,500 NEW JOBS TO SUFFOLK. Suffolk is one of the fastest growing cities in Hampton Roads and is well positioned for continued growth and prosperity. With a diversified 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 business and investment, 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.
Median Household Income (MHI) has grown in the City by 49% from 2000 to 2019. The City of Suffolk has the third highest MHI in the region, which is almost equal to the state, and higher than the national MHI. THE ECONOMY OF SUFFOLK IS CONTINUING TO GROW AS EVIDENCED BY THE FOLLOWING TRENDS: • Median Home sales price is $263,400, up from last year. • Median Household Income is $70,664.
NEW AND EXPANDING BUSINESS HIGHLIGHTS JANUARY 1 – DECEMBER 31, 2020 NEW BUSINESS
Amazon Warehousing & Distribution $200,000,000 Add’l Bridgeport Buildings Speculative Mixed Use $ 13,320,000 Acesur Food & Beverage $ 11,000,000 Harbour Breeze Medical Center Medical $ 6,250,000 Bridgeman Civil Industrial Contracting $ 4,000,000
EXPANDING BUSINESS SECTOR INVESTMENT Bayview Physicians Wanchese Fish Co – Cooke Seafood Harbour View Place Phase II Sentara Healthcare
Medical Medical Retail Medical
$ $ $ $
42,000,000 8,000,000 5,500,000 2,100,000
NEW AND EXISTING BUSINESSES HAVE INVESTED $300 MILLION IN CREATING OR EXPANDING BUSINESS IN SUFFOLK.
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SUFFOLK PRIORITIES GROWTH MANAGEMENT AND COMPREHENSIVE PLANNING
Suffolk features many development and character types, from dense, walkable urban neighborhoods, to riverside communities, and rural villages. The plan emphasizes enhancing existing character and promoting quality new development. Suffolk continues to see population growth with a 8.9% increase in the last 10 years. This population trend is projected to continue over the foreseeable future. By 2040, we expect to see an increase in population by 30.46%.
In 2020, the Suffolk Department of Planning and Community Development presented twelve text amendments to the Planning Commission and City Council for consideration, addressing noise, food trucks, family transfers, mini-warehouses, lot and design standards, and other items. They also managed the review and approval of 135 site plans and engineering plans. Suffolk features many unique neighborhoods, beautiful natural landscapes, and small-town charm. The City faces the challenge of maintaining these and other valued assets while experiencing sustained growth. This desire to accommodate growth while preserving Suffolk’s special features has prompted the City to address service provisions, connectivity, environmental protection, and the quality of life and traditions as the City continues to grow and develop.
PUBLIC EDUCATION The City Council and City Management place a high priority on education in the City. Over the next ten years, approximately $324.8 million in school capital projects are planned for in the Capital Improvements Plan for renovations and new schools, HVAC improvements, and a new operations facility.
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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. The transportation network plays a key role in accommodating growth within Suffolk and providing connections 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 2020 Accomplishments
• Increased transit ridership by 12% over the last three years. • Inspected 75 bridges to meet State and Federal standards. • Purchased four new buses to replace the aging transit fleet. • Conducted a feasibility study for an operations facility for Suffolk Transit.
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SUFFOLK PRIORITIES LEISURE, HEALTH, AND WELLNESS • Suffolk was selected for the list of one of the Best Cities for Young Families in Virginia by NerdWallet, a personal finance site for consumers. Among factors considered were home affordability, prosperity and growth, quality of education, and family friendliness. • Participated in the Best Practice Court Team to improve outcomes for foster care youth and address truancy and related issues in coordination with the school system.
COMPLETED AND UPCOMING CAPITAL PROJECTS • • • • • •
Trail Enhancements Lake Kilby Fire Station Renovation Rt 17/Crittenden Road Improvements Cypress Park and Pool Renovations Shoulders Hill Rd./Rt 17 Intersection Improvements Water and Sewer System Upgrades
• Suffolk received the Stairway to Success Award – Good Level, recognizing the City’s excellence in its commitment to Early Childhood Education at the Virginia Municipal League (VML) Annual Banquet. • Provided immunization services to 629 citizens and family planning services to 720 citizens.
PUBLIC SAFETY • Suffolk Fire & Rescue - Twenty-one firefighter recruits completed and an additional 13 new recruits began the Fire Academy. • Trained 30 new volunteers in a variety of activities including adoption events, animal foster care, and staff assistance at the Animal Shelter.
CIVIC ENGAGEMENT AND RESPONSIVE CITY SERVICES • The Suffolk Public Library launched an expanded WiFi2Go program to provide wireless internet access to people with needs throughout the community – more important than ever during COVID.
• Suffolk Police Department completed 100% of the Commission on Accreditation for Law Enforcement Agencies (CALEA) communications standards and standard operating procedures.
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 Commissioner of the Revenue’s Association.
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FINANCIAL STABILITY The City is committed to being responsible stewards of our taxpayer dollars and addressing the strategic needs and priorities of the City. Financial policies are vital in maintaining consistency and focus. A good measure of the City’s ability to cope with unexpected financial challenges or emergencies is the ratio of unassigned General Fund balance as a percentage of the budgeted governmental funds expenditures. The target for this ratio is 15%. At June 30, 2020, the City’s fund balance ratio exceeded the target.
OTHER ACCOMPLISHMENTS • Received AAA bond ratings from all three bond rating agencies. • 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. • Facilitated the sale of surplus items resulting in over $350,000 in proceeds.
FINANCIAL REPORTING AWARDS Comprehensive Annual 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 Comprehensive Annual Financial Report for the fiscal year ended June 30, 2019, representing the thirty-sixth consecutive year that the City has received this award. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government financial reports. In order to be awarded a Certificate 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 applicable legal requirements.
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, 2020. 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 thirteenth consecutive year for this recognition, as it is valid for a one-year period.
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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.
In total, 2020 revenue increased by approximately $9.5 million when compared to 2019. GENERAL FUND REVENUE BY SOURCE (IN MILLIONS) EXCLUDING TRANSFERS General Fund Revenue By Source (In Millions) FY Ending FY Ending 06/30/2019 06/30/2020 $ 133.8 $ 140.0 46.3 48.7 1.3 1.8 0.8 0.8 3.0 2.7 3.6 3.4 1.8 3.0 21.4 21.6 5.9 5.4 $ 217.9 $ 227.4
Revenue by Source: Real Estate and Personal Property Taxes Other Local Taxes Permits, Fees and Regul atory Licenses Fines and forfeitures Revenue from Use of Money and Property Charges for Services Miscel l aneous State Revenue Federal Revenue Total Revenues ** Do not include Transfers In
Other Local Page 16 ofTaxes CAFR $48.7 - 21.4%
Permits, Fees and Regulatory Licenses $1.8 - 0.8%
Fines and Forfeitures $0.8 - 0.4%
General Fund Expenditures by Function (In Millions) Expenditures by Function: General Government Administration Judicial Administration Public Safety Public Works Health and Welfare Education Parks, Recreation and Cultural Community Development Nondepartmental Total Expenditures Page 16 and page 43 (Transfers to) of the CAFR
61.6% 21.4% 0.8% 0.4% 1.2% 1.5% 1.3% The 9.5%chart above indicates the growth in the General Property Tax revenue over the past ten years. The 2.4% increase in the real estate and personal property taxes 100.0%
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.
Revenue from Use of Money and Property $2.7 - 1.2%
FY Ending FY Ending Charges for Services 06/30/2019 $3.4 06/30/2020 - 1.5% $ 16.2Miscellaneous $ 16.5 8.8 $3.0 - 1.3% 9.2 62.4 63.5 State Revenue 1.0 1.0 $21.6 - 9.5% 13.6 14.7 60.4 58.1 Federal Revenue11.1 12.0 $5.4 - 2.4% 4.6 6.4 0.7 0.6 Real Estate and Personal Property Taxes $ 179.7 $ 181.1 $140.0 - 61.6%
9.1% 5.1% 35.1% 0.6% 8.1% 32.1% 6.1% 3.5% 0.3% 100.0%
The Suffolk has variety of sources of revenues to fund operations. The largest ** Do notCity includeof Transfers Out for Debt and a Other general Page 16 of CAFRfund revenue sources are real estate and personal property taxes, followed by other local taxes and state revenue.
Popular Annual Financial Report / 14 General Fund Revenue By Source (In Millions) FY Ending FY Ending Revenue by Source: 06/30/2019 06/30/2020 Real Estate and Personal Property Taxes $ 133.8 $ 140.1 61.6% Other Local Taxes 46.3 48.7 21.4% Permits, Fees and Regul atory Licenses 1.3 1.8 0.8% Once City collects taxes and other revenues, the monies must Fines andthe forfeitures 0.8 0.8 0.4% be spent efficiently to provide services to the citizens and of the City. As this section will2.7 further1.2% detail, the City provides a variety of services to its Revenue from Usebusinesses of Money and Property 3.0 residents and businesses. Charges for Services 3.6 3.4 1.5% Miscel l aneous 1.8 3.0 1.3% Annually, the City Manager submits a Budget for City Council’s adoption. The proposed budget must not include State Revenue 21.4 21.6 9.5% expenditures Federal Revenue that exceed anticipated revenues. 5.9 The budget 5.4 process 2.4% is approached with a focus on maintaining core services critical to residents, while simultaneously identifying sustainable savings that strengthen the City’s ability to Total Revenues $ 217.9 $ 227.5 100.0%
WHERE THE MONEY GOES deliver services more efficiently and effectively. ** Do not include Transfers In
The Estate tax rate of $1.11 per $100 of assessed value is the 3rd lowest in the region. PageReal 16 of CAFR
GENERAL FUND EXPENDITURE BY FUNCTION General Fund Expenditures by Function (In Millions) (IN MILLIONS) EXCLUDING TRANSFERS Expenditures by Function: General Government Administration Judicial Administration Public Safety Public Works Heal th and Wel fare Education Parks, Recreation, and Cultural Community Devel opment Nondepartmental Total Expenditures
FY Ending FY Ending 06/30/2019 06/30/2020 $ 16.2 $ 16.5 8.8 9.2 62.4 63.5 1.0 1.0 13.6 14.7 60.4 58.1 12.0 11.1 4.6 6.4 0.7 0.6 $ 179.7 $ 181.1
Public Safety, $63.5 - 35.1%
Judicial Administration, $9.2- 5.1%
9.1% 5.1% General Government 35.1% Administration, $16.5 - 9.1% 0.6% 8.1% Nondepartmental, $0.6 - 0.3% 32.1% 6.1% Community Development, 3.5% $6.4 -3.5% 0.3% Parks, Recreation, and Cultural, 100.0%$11.1 - 6.1%
Public Works, $1.0 - 0.6%
Health and Welfare, $14.7 - 8.1%
Education, $58.1 - 32.1%
Page 16 and page 43 (Transfers to) of the CAFR
EDUCATION SAFETY ARE TOP PRIORITIES FOR THE CITY AS ** Do not include Transfers AND Out for DebtPUBLIC and Other Page 16 of CAFR EVIDENCED BY THE FACT THEY ARE THE LARGEST BUDGETED GENERAL FUND EXPENDITURES IN FY20. The City is committed to ensuring the highest level of safety for its citizens, and has expended $63.5 million towards public safety efforts in FY20, which represents an increase of $1.1 million over FY19 expenditures.
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NET POSITION The Statement of Net Position presents information on all City assets and deferred outflows of resources, and liabilities (Tables and Charts - MDA Net and deferred inflows ofPosition) 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 such as the School Fund. Net position is one way CITY OF SUFFOLK, VIRGINIA to measure the City’s financial health, or financial position. NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS NET POSITION (IN MILLIONS)
Current and other assets Capital and other non-current assets Total assets
Net Position Governmental Activities 2020 2019 $ 232.5 $ 196.2 537.9 531.7 770.4 727.9
Deferred Outflows of Resources
Business-type Activities 2020 2019 $ 74.3 $ 85.5 464.2 458.2 538.5 543.7
2020 $ 306.8 1,002.1 1,308.9
2019 $ 281.7 989.9 1,271.6
25.1 362.9 388.0
13.8 346.9 360.7
7.9 395.8 403.7
8.6 400.7 409.3
33.0 758.7 791.7
22.4 747.6 770.0
Deferred Inflows of Resources
Net position: Net investment in capital assets Restricted Unrestricted Net position
312.9 9.5 83.4 $ 405.8
301.9 1.6 76.5 $ 380.0
107.0 2.6 45.6 $ 155.1
104.2 2.5 46.3 $ 153.0
419.9 12.1 129.0 $ 560.9
406.1 4.1 122.8 $ 533.0
Current and other liabilities Long-term liabilities Total liabilities
The City has a solid financial position with 23% of net position, or $129.0 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 equipment, less accumulated depreciation and related outstanding debt used to acquire those assets) of $419.9 million comprises 74.85% of the net position. These assets are not available for future spending because they are assets used to provide services to citizens.
The City’s combined net position (which is the City’s “Bottom Line”) increased by $28.0 million in FY 2020, of which approximately 2.16% represents resources that are subject to external restrictions or enabling legislation.
N:\Finance\Audit FY20189\CAFR\Tables and Charts FY2019 CAFR.xlsx N:\Finance\Audit FY20189\CAFR\Tables and Charts FY2019 CAFR.xlsx (MDA Capital Assets Tab) (MDA Capital Assets Tab) Popular
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CAPITAL ASSETS The City’s capital assets for its governmental and business-type activities as of June 30, 2020, totaled $1,002.1N:\Finance\Audit million, net FY20189\CAFR\Tables of accumulated depreciation. This investment in capital assets includes land, buildings, and Charts FY2019 CAFR.xlsx (MDA Capital Tab) improvements other thanAssets buildings, infrastructure, machinery and equipment, and construction in progress.
CAPITAL ASSETS (NET OF DEPRECIATION IN MILLIONS) Capital Assets Ca pita l Assets Capital Assets (net of depreciation) (net of depreciation)(net of depreciation) (in Millions) (in Millions) (in Millions)
Activities Governmental Activities Governmental ActivitiesGovernmental Business-type Activities
2019 2020 2019 Land 24.2 Land 24.2 Land $ 24.2 Construction in progress Construction Construction in progress 85.3 in progress 75.4 75.4 Buildings 91.5 Building88.6 s Building s 91.5 Infrastructure 263.2 Infrastructure Infrastructure 265.1 263.2 than 37.4 buildings 36.7 Improvements other than buildings Improvements otherImprovements than buildingsother 36.7 Machinery and equipment Machinery and equipment 38.3 Machinery and equipment 35.1 38.3 Intangibles 2.4 2.4 Intangibles Intangibles 2.2
Business-type Activities Business-type TotalActivities
2018 2020 2020 $ 24.2 23.5 4.7 85.3112.2 33.9 94.2 88.6 73.0 265.1265.6 34.3 37.4281.5 43.9 35.1 62.0 1.5 2.2 9.1
2019 2019 2019 4.7 $ $$ 24.2 4.7 25.0 75.4 25.0 75.0 91.5 75.0 -263.2 278.1 36.7 278.1 64.8 38.3 64.8 10.6 2.4 10.6
2018 2020 2020 $$ $ 4.75.6 28.9 25.6 33.9 119.2 77.5 73.0 161.6 - 265.1 275.4 281.5 318.9 67.2 62.0 97.1 12.1 9.1 11.3
575.2 $ 537.9464.2
463.4 $$ $ 1,002.1 464.2
458.2 531.7 458.2
2019 2019 28.9 4.7 100.4 25.0 166.5 75.0 263.2 314.8 278.1 103.1 64.8 13.0 10.6
Assets are increasing due 308.8 Capital Assets to the City’s commitment to maintaining and adding to the infrastructure of the City through the Capital Improvement Plan. Some of the improvements contained in the City’s adopted ten-year Capital Improvement Plan are as follows:
School Operations Facility
New Central Library
• Shoulders Hill Intersection Improvements • Fire Apparatus acquisition •
Bennett’s Creek Recreation Center
2018 2020 29.1 28.9 137.8 119.2 171.7 161.6 265.6 265.1 309.7 318.9 111.1 97.1 13.6 11.3
1,038.6 $ $ 1,002.1
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DEBT ADMINISTRATION Long-term debt: At the end of the current fiscal year, the City had total outstanding debt of $674.6 million, including general government, school construction, N:\Finance\Audit FY20198\CAFR\Tables and Charts FY2019 CAFR.xlsx and utility fund debt. (MDA LT Debt Tab)
OUTSTANDING DEBT (IN MILLIONS)
Outstanding Debt (in millions)
Bonds payable Bond Premiums
Governmental Activities 2020 2019 266.6 $ 262.3 20.5 22.7
Business-type Activities 2020 2019 360.9 $ 365.9 24.6 27.1
2020 627.5 45.1
2019 628.2 49.8
Loans and notes payable
The Commonwealth of Virginia limits the amount of general obligation debt outstanding to 10% of the locality’s assessed value of real property, which is $1.008 Billion for 2020. The City Charter further limits this general obligation limit to 7% of the City’s assessed value of real property, or $706.0 million. Of the debt shown above, only $436.1 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.
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MORE INFORMATION The Government Finance Officers Association (GFOA) has been promoting the preparation of high quality Popular Annual Financial 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. Popular Annual Financial Reports 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.
WE WANT TO HEAR FROM YOU 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 at FinanceEmail@suffolkva.us, or 757-514-7500. Please see the City’s website at www.suffolkva.us, for additional information, including the City’s Comprehensive Annual Financial Report.
CITY OF SUFFOLK
442 W. Washington Street Suffolk, VA 23434 757-514-4000 www.suffolkva.us www.facebook.com/suffolkva www.twitter.com/cityofsuffolk www.youtube.com/user/CityofSuffolkVA