This page intentionally left blank Annual Comprehensive Financial Report of the City of Chesapeake, Virginia for Fiscal Year Ended June 30, 2024 Prepared by the Chesapeake Department of Finance Kristen N. Bailey, Director City of Chesapeake, Virginia Finance Department Our Mission We ensure fiscal responsibility and sustainability through prudent financial management, innovative solutions, and transparent practices. We foster public trust by upholding the highest standards of accountability, integrity, and service. By prioritizing long-term financial health and ethical stewardship of resources, we support economic prosperity for the City and the citizens we serve. Our Vision We will be a leader in financial management by upholding the highest standards of integrity, supporting innovation, and delivering exceptional customer service. We foster a culture of transparency and accountability, ensuring the long-term financial health and prosperity of the community we serve. Acknowledgments This report was prepared through the dedicated and proficient efforts of the Department of Finance staff and various departments. Their professionalism and commitment to excellence embody the spirit of the City that Cares, upholding the highest standards of transparency and stewardship. The following employees were instrumental in the preparation of this report: Tanisha Alston Melinda Commander Jackelyn Jarzynka Kristen Bailey Susan Evans Linda Mathis Lisa Blackford Nicole Griffith Amanda McAdams Kristin Burns Michelle Hines Nancy Randall Lorra Calvert Denise Henderson Tamara Walters Evellyn Chesley We extend our sincere appreciation to the City Manager, Mayor, and Members of City Council for their leadership and support. Their commitment to responsible governance and dedication to maintaining the City’s fiscal responsibility and sustainability have been vital in ensuring the success of this report. Thank you for your continued focus on transparency, accountability, and the well-being of our community. Please visit us at: CITY OF CHESAPEAKE, VIRGINIA Table of Contents June 30, 2024 Page Schedule Number INTRODUCTORY SECTION: Letter of Transmittal I City Wide Organizational Chart XXVII City Officials XXVIII GFOA Certificate of Achievement XXX FINANCIAL SECTION: Report of Independent Auditor 1 Basic Financial Statements: Government-wide Financial Statements: Statement of Net Position A 24 Fund Financial Statements: Governmental Funds Financial Statements: Balance Sheet C 30 Proprietary Funds Financial Statements: Statement of Net Position E 36 Fiduciary Funds Financial Statements: Statement of Fiduciary Net Position H 40 Other Discretely Presented Component Units: Combining Statement of Net Position J-1 44 Management’s Discussion and Analysis (MD&A) 7 Statement of Activities B 25 Statement of Revenues, Expenditures, and Changes in Fund Balances D 32 Statement of Revenues, Expenses, and Changes in Net Position F 37 Statement of Cash Flows G 38 Statement of Changes in Fiduciary Net Position I 41 Combining Statement of Activities J-2 45 Notes to Basic Financial Statements: K 49 1. Summary of Significant Accounting Policies 51 2. Deposits and Investments 58 3. Accounts Receivable and Payable 63 4. Capital Assets 66 5. Long-Term Obligations 74 6. Advances and On Behalf Of Payments 83 7. Interfund Balances and Transfers 83 8. Retirement Plans 85 9. Other Postemployment Benefits 100 10. Fund Balances 119 11. Deferred Compensation Plan 122 12. Commitments 122 13. Related Parties 123 14. Contingent Liabilities 125 15. Subsequent Events 129 16. Accounting Pronouncements 130 i CITY OF CHESAPEAKE, VIRGINIA Table of Contents, Continued June 30, 2024 Page Schedule Number FINANCIAL SECTION (Continued): Required Supplementary Information Other Than MD&A: Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual – General Fund L-1 132 Schedule of Employer Contributions – Virginia Retirement System L-2 133 Schedule of Changes in the Net Pension Liability and Related Ratios – City L-3 134 Schedule of Changes in the Net Pension Liability and Related Ratios – Schools L-4 136 Schedule of Employer’s Share of Net Pension Liability L-5 138 Schedules of Employer Contributions – Other Postemployment Benefits - City Directed L-6 139 Schedule of Changes in the Net OPEB Liability (Asset) and Related Ratios – City L-7 140 Schedule of City of Chesapeake Proportionate Share of Net OPEB Liability – VRS Directed Programs L-8 143 Schedule of Changes in the Net OPEB Liability (Asset) and Related Ratios – Schools L-9 144 Schedule of City of Chesapeake Schools Proportionate Share of Net OPEB Liability – VRS Directed Programs L-10 146 Schedules of Employer Contributions – Other Postemployment Benefits – VRS Directed L-11 148 Notes to Required Supplementary Information L-12 151 Other Supplementary Information: Combining and Individual Fund Schedules: Governmental Funds: Major Governmental Funds: General Fund: Schedule of Revenues and Other Financing Sources – Budget and Actual M-1 160 Schedule of Expenditures, Encumbrances, and Other Financing Uses – Budget and Actual M-2 164 Debt Service Fund: Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual N 169 Capital Projects Funds: General Capital Projects Fund: Schedule of Expenditures and Encumbrances – Budget and Actual O-1 172 Public Utilities Capital Projects Fund: Schedule of Expenditures and Encumbrances – Budget and Actual O-2 180 Chesapeake Transportation System Capital Projects Fund: Schedule of Expenditures and Encumbrances – Budget and Actual O-3 183 Stormwater Management Capital Projects Fund: Schedule of Expenditures and Encumbrances – Budget and Actual O-4 184 ii CITY OF CHESAPEAKE, VIRGINIA Table of Contents, Continued June 30, 2024 Page Schedule Number FINANCIAL SECTION (Continued): Nonmajor Governmental Funds: Special Revenue and Permanent Funds: Combining Balance Sheet P-1 188 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances P-2 192 Tax Increment Financing Greenbrier Fund: Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual P-3 196 Tax Increment Financing South Norfolk Fund: Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual P-4 197 Virginia Public Assistance Fund: Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual P-5 198 Integrated Behavioral Healthcare Fund: Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual P-6 199 Conference Center Fund: Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual P-7 200 Juvenile Services Fund: Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual P-8 201 Interagency Consortium Fund: Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual P-9 202 E-911 Operations Fund: Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual P-10 203 Fee Supported Activities Fund: Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual P-11 204 Internal Service Funds: Combining Statement of Net Position Q-1 206 Combining Statement of Revenues, Expenses, and Changes in Net Position Q-2 207 Combining Statement of Cash Flows Q-3 208 iii CITY OF CHESAPEAKE, VIRGINIA Table of Contents, Continued June 30, 2024 Page Schedule Number FINANCIAL SECTION (Continued): Chesapeake Public Schools Component Unit: Governmental Funds: Balance Sheet R-1 211 Schedule of Revenues, Expenditures, and Changes Fiduciary Funds Financial Statements: Schedule of Revenues, Expenditures, and Changes in Schedule of Revenues, Expenditures, and Changes in Schedule of Revenues, Expenditures, and Changes in Other Component Unit: Statement of Revenues, Expenditures, and Changes in in Fund Balance R-2 212 Statement of Fiduciary Net Position R-3 214 Statement of Changes in Fiduciary Net Position R-3A 215 Fund Balance – Budget and Actual – Schools General Fund R-4 216 Fund Balance – Budget and Actual – Schools Nutrition Services Fund R-5 217 Fund Balance – Budget and Actual – Schools Textbooks Fund R-6 218 Balance Sheet S-1 220 Fund Balance – Chesapeake Mosquito Control Commission S-2 221 STATISTICAL SECTION: Financial Trends Information: Net Position by Component Table 1 224 Revenue Capacity Information: Debt Capacity Information: Ratio of Annual Debt Expenditures for General Obligation Changes in Net Position Table 2 226 Fund Balances, Governmental Funds Table 3 233 Statement of Changes in Fund Balances, Governmental Funds Table 4 234 Assessed and Estimated Actual Value of Taxable Property Table 5 236 Direct and Overlapping Property Tax Rates Table 6 237 Principal Property Taxpayers Table 7 238 Property Tax Levies Table 8 239 Property Tax Levies and Collections Table 9 241 Ratios of Outstanding Debt by Type Table 10 242 Ratios of Outstanding General Bonded Debt Table 11 244 Debt Affordability Indicators Table 12 245 Bonded Debt to Total General Governmental Expenditures Table 13 246 Ratio of Debt Expenditures to Local Revenues Table 14 247 Legal Debt Margin Information Table 15 248 Revenue Bond Coverage (Pledged Revenue) Table 16 249 iv CITY OF CHESAPEAKE, VIRGINIA Table of Contents, Continued June 30, 2024 Page Schedule Number STATISTICAL SECTION (Continued): Demographic and Economic Information: Demographic and Economic Statistics Principal Employers Operating Information: Municipal Employment Statistics Authorized Full-time Equivalent City Government Employee Positions by Department Operating Indicators by Function/Program Capital Asset Statistics by Function/Program COMPLIANCE SECTION: Schedule of Expenditures of Federal Awards Notes to Schedule of Expenditures of Federal Awards Report of Independent Auditor on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards Report of Independent Auditor on Compliance for each Major Federal Program and on Internal Control over Compliance Required by the Uniform Guidance Schedule of Findings and Questioned Costs Table 17 Table 18 Table 19 Table 20 Table 21 Table 22 T-1 T-2 250 251 252 253 254 256 258 262 263 265 267 Next >