THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Thursday, January 12, 1995 TAG: 9501120159
SECTION: SUFFOLK SUN PAGE: 04 EDITION: FINAL
SOURCE: BY MAC DANIEL, STAFF WRITER
DATELINE: SUFFOLK LENGTH: Short : 49 lines
The city of Suffolk is on firm financial ground and growing, according to the latest edition of the city's comprehensive annual financial report.
Some of the highlights of the report include:
Undesignated funds in the city's general fund increased from $3.3 million in fiscal year 1993 to $5.96 million in 1994.
The city's ability to pay its bills on time is at the highest level in seven years.
The value of commercial and residential construction permits has nearly doubled since 1992. The value of such construction is now estimated at $76.8 million.
Consumer spending is up for the first time since 1988.
The rosy picture painted by this latest financial report shows Suffolk on a rebound, thanks in part to a vibrant increase in new construction and good financial management. The city was again awarded a state award for financial reporting, the 11th year in a row the award has been given to Suffolk.
One reason for the bright outlook has been the closure of the old Nansemond Taxing District. The undesignated fund balance from that tax district - a total of $130,510 - was transferred to the city's general fund in July 1993.
But there are some warning signs that the city is trying to counter. Property tax revenues, for instance, now account for 50.1 percent of the general fund balance - too large of a percentage for any form of city revenue. City Manager Myles E. Standish has said the city plans to lower that number in the next fiscal year.
In addition, the city's unemployment rate jumped to 8 percent, the largest it has been since 1991.
Meanwhile, the city is trying to increase its bond rating.
The city wants to extend water and sewer lines throughout this predominately rural city, a project that is expected to cost upwards of $100,000.
But with a double-A bond rating from the two largest bond rating houses in New York City, the city does not currently have enough financial clout to pull off the project without sacrificing at home.
City officials have publicly stated that they would like the city to attain a triple-A bond rating, thus allowing the city to borrow money at a lower rate. by CNB