North Tidewater News

Dec 14, 2023 - The City of Hampton received a positive audit report from accounting firm Cherry Bakaert, indicating that the city is in a solid financial position. The report revealed no instances of noncompliance or material weaknesses, providing reassurance to the City Council and the community.

During the presentation of the city's financial results, Finance Director Karl Daughtrey highlighted several positive developments. Firstly, meal tax revenue exceeded projections by $3.8 million in fiscal year 2023, although the growth was not as significant as the previous year. Additionally, sales tax revenues increased, driven primarily by higher prices rather than overall economic growth.

The hotel tax also saw a notable increase of $1.4 million above projections. This growth can be attributed to the success of sports tourism at venues such as the Aquaplex and Boo Williams Sportsplex, which continue to attract students and families to the city. Furthermore, the city benefited from an expected $4.9 million in revenue from the use of money and property, largely influenced by higher interest rates.

It is important to note that some of these increases may be one-time occurrences. However, overall, Hampton's long-term financial condition remains healthy, with a substantial amount in reserve funds. This financial stability is highly regarded by credit rating agencies and contributes to the city's favorable credit rating. As a result, Hampton can secure the lowest possible interest rates when borrowing for essential capital projects like the new Wythe Fire Station.

In addition to the positive financial report, the City Council approved several measures during their meeting. These included the construction of a large apartment complex at Commerce Drive and Pine Chapel Road, which will consist of approximately 380 units. Furthermore, an extended stay hotel at Hartford and Marcella roads was given the green light, providing additional accommodation options for visitors to the city. Lastly, a rezoning and use permit were granted to complete the approvals for the Riverside Behavioral Health & Recovery Center, further enhancing the city's healthcare infrastructure.

Overall, the City of Hampton can celebrate a clean audit report and a solid financial footing. The positive financial results, along with the approved measures, demonstrate the city's commitment to progress and development. With a healthy reserve fund and a favorable credit rating, Hampton is well-prepared to undertake future projects and ensure the continued prosperity of the community.

To learn more, click on this link: https://hampton.gov/CivicAlerts.aspx?AID=5506