INTO data decisions THAT MATTER
A FROM THE MAYOR message
I am pleased to present to you the Popular Annual Financial Report (PAFR) for the fiscal year ended June 30, 2025. This PAFR, which is unaudited, is a simplified and condensed version of the City’s audited Annual Comprehensive Financial Report (ACFR).
This report demonstrates our commitment to transparency, accountability, and responsible fiscal management. The financial well-being of our City is a collective effort, and it is crucial that our residents have access to reporting on how their tax dollars are being used. This report provides an overview of our City’s financial activities during the past year, including revenues, expenses, and significant financial achievements.
I would like to take this opportunity to express my gratitude to the hardworking City employees and officials, as well as the dedicated citizens of our City, who have made these financial achievements possible. Together, we have continued to build a prosperous, vibrant, and inclusive community that we are all proud to call home.
If you have any questions or need further information regarding this report, please do not hesitate to contact our City Finance Department, which will be more than happy to assist you.
Thank you for your continued support, and I look forward to continuing to thrive together.
Phillip D. Jones
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 nnva.gov/458.
PRIORITIES
PEOPLE PLACES GOVERNMENT
Health, Safety & Well-Being
Education & Learning
Opportunity & Economic Prosperity
Fun, Entertainment & Culture
CITY GOVERNMENT
Mayor, At-large
Phillip D. Jones
Term Expires Dec. 31, 2026
City Manager
Alan K. Archer
Appointed 2023
Welcoming Communities with Connected Neighborhoods
Quality Government & Innovation
Environmental Stewardship & Sustainability
For a full report on the City’s strategic priorities, download the latest Strategic Plan at nnva.gov/440
officials
Vice Mayor
Curtis D. Bethany, III
Term Expires Dec. 31, 2026
Councilman
Marcellus L. Harris III, D. Div.
Term Expires Dec. 31, 2028
Councilman
Cleon M. Long, P.E. Term Expires Dec. 31, 2026
Councilman
Robert Coleman
Term Expires Dec. 31, 2028
Councilman
John R. Eley, III
Term Expires Dec. 31, 2026
Councilwoman
Tina L. Vick
Term Expires Dec. 31, 2028
TURNING DATA INTO
decisions
What It Means for Newport News
Whether through real-time crime metrics, neighborhood revitalization studies, or economic-site analytics, every major initiative in 2025 was grounded in evidence. Turning Data Into Decisions is more than a theme, it is an operating philosophy that guides how Newport News evaluates needs, engages residents, and sets priorities.
Strategic planning for growth and revitalization
As part of our long-term vision, the City introduced the inaugural NN EDGE Summit, a dynamic platform that showcased equitable and transformative development opportunities across all districts. The summit highlighted 12 high-priority redevelopment sites and invited attendees to explore how publicprivate partnerships, guided by data and strategic analysis, can shape the future of Newport News.
Hands-on strategic planning and civic innovation
This year also marked the launch of The iNNoX Zone: Newport News Exchange, a one-day interactive civic innovation experience that invited residents and business owners to explore, exchange, and experience the City’s future. Through gamified activations and real-time feedback tools, participants directly influenced planning and service design, demonstrating how data and community insight work together to inform policy.
Public safety excellence
Safety remains a core priority, and in 2025 our datadriven strategies delivered measurable improvements. Mid-year crime statistics released in August showed stable homicide numbers and fewer non-fatal shootings compared to the previous year. These results reflect the effectiveness of targeted interventions, data tracking, and cross-agency collaboration. With a homicide clearance rate more than double the national average (118 percent compared to 57.8 percent), Newport News continues to demonstrate how metrics paired with strategic action lead to real results.
Looking Ahead: Building on Momentum
Neighborhood resilience and infrastructure investment
Our neighborhoods flourish when decisions are intentional. A $929,000 state award for flood-resilience assessments exemplified how Newport News uses research, stormwater models, and infrastructure data to guide investments that protect and revitalize communities.
As we look toward the year ahead, our data-driven foundation will continue to advance our strategic imperatives: inclusive growth, vibrant neighborhoods, an advantaged workforce, and organizational excellence. We will continue to refine how we collect, present, and act on data, ensuring that our decisions are transparent, equitable, and grounded in the needs of the community.
The lessons of 2025 reaffirm a simple truth: when we listen to data and then act, we turn insight into impact.
Left to right: 1) NN EDGE Summit agenda from the two day event that discussed economic development, growth and expansion across all the districts. 2) One of the interactive stations at the iNNoX Zone event. 3) The City is committed to improving neighborhood infrastructure with flood-resilience assessment money awarded by the state . 4) Mayor Jones and the Newport News Police Department greet community members at the 65th Annual Denbigh Day Parade.
• Huntington Ingalls Industries, Inc.
• Newport News Public Schools
BY THE EDUCATION
11,737 33 M
Hydrants Gallons Delivered per Day Meters Connected
Tons
DEMOGRAPHICS
Newport News celebrated 42 years as a Tree City USA by planting 3 new trees in Newport News Park.
Total Revenue for 2025 was $793.6 million, an increase of 3.3% from 2024, as restated.
The City’s largest revenue source is from property tax making up 47% of the City’s revenue.
22% Program Revenue
TAX REVENUE BY SOURCE
$14.8 M Other Taxes
$23.5 M Business License Tax
$35.5 M Sales Tax
$43.3 M Meals & Lodging Tax
15% Other 63% Taxes
$793.6 M Total Revenue
$13.4 M Telecom & Consumer Utility Tax
$370.4 M Property Tax
GOVERNMENTAL ACTIVITIES
$754.0 M Total Expenses
Total spending in 2025 was $754 million, an increase of 5.5% from 2024, as restated. The City's governmental activities include a variety of services with $320.7 million or 42.5% of its spending directed toward Education and Public Safety.
STATEMENT OF
and grants restricted to specific
General Revenues include property and other taxes and interest earnings.
Revenues
STATEMENT OF ACTIVITIES (IN MILLIONS)
$118 M Increase in Net Position from FY25 Operations
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. The City’s activity is shown in three categories:
GOVERNMENTAL ACTIVITIES
Most of the City’s core services are included here, such as education, public safety, public works, human services, and general administration. Taxes and state and federal grants finance most of these activities.
BUSINESS TYPE ACTIVITIES
The operation and performance of the City's public utility, Newport News Waterworks, is included here. Waterworks' operations are designed to be selfsupporting through user charges.
COMPONENT UNITS
Here the report includes Newport News Public Schools, a separate legal entity for which the City provides a significant portion of operating funding. Non-major component units, which include the Economic and Industrial Development Authority and the Peninsula Airport Commission, are not presented in this document.
net position
STATEMENT OF NET POSITION (IN MILLIONS)
What is the Statement of Net Position?
The Statement of Net Position presents information on all of the City’s assets and liabilities, deferred outflows, and deferred inflows with the difference between the above reported as Net Position.
An asset is something that the City owns, like buildings, equipment, and land. Assets also include cash, investments, and accounts receivable.
A liability is a debt or something the government owes to others, like loans, and bills received but not yet paid.
Net Position is the difference between what the City owns and what the City owes. Positive net position balances indicate a measure of financial stability.
$1,015.8 M
The City’s investment in capital assets for its governmental and business-type activities as of June 30, 2025, totaled $1,532.2 million (net of depreciation). This investment includes land, buildings and improvements, drainage and water/sewer systems, machinery and equipment, roads, bridges, and construction in progress.
Major capital asset projects under construction during the fiscal year included the following:
• Choice Neighborhood Initiative Infrastructure Improvements
• Menchville Marina Lighting and Dock Improvements
• Southeast Community Resource Area (SECRA) Recreation Center and Huntington Middle School
• Warwick Boulevard Drainage Improvements
Left to right: 1) Southeast Community Resources Area Recreation Center and Huntington Middle School construction progress. 2) Menchville Marina. 3) Warwick Boulevard drainage improvements area between Raleigh Rd. and Center Ave.
LONG TERM
Construction and maintenance of the buildings and infrastructure of the City are generally funded by 20-year General Obligation Bonds. The maintenance of the City’s Waterworks infrastructure is typically funded by revenue bonds. The annual principal and interest payments (debt service) are included in the City’s (or Waterworks’) annual operating budget. At the end of the current fiscal year, the City had total outstanding debt of $451.8 million, a decrease of 9% from last year.
OUTSTANDING DEBT (IN MILLIONS)
The City has adopted policies which guide its capital improvement planning and its issuance of long-term debt. These policies are intended to help the City maintain or improve its credit rating, help the City manage its capital investments in a manner which does not create an undue financial burden on its citizens and taxpayers, and keep changes in debt service obligations at levels that do not reduce the City’s ability to provide acceptable municipal and educational services to its citizens.
The City and City’s Waterworks Department maintain strong credit ratings with the financial rating agencies Standard & Poor’s (S&P) and Moody’s. These credit ratings allow the City to gain access to capital at lower interest rates.
$18.0 M
General Fund
Revenues, including other financing sources, increased by 1.5% from the prior year, as restated, primarily due to increases in general property tax revenue and other revenue.
What is the General Fund?
The General Fund is the primary operating fund of the City and provides funding for daily operations and services. It supports the core services of the City including public safety, human services, education, general government and public works.
General Fund Expenditures, including transfers, increased 4% from the prior year, as restated, primarily due to increases in personnel costs.
GENERAL FUND
Funds that are intended for specific purposes but do not meet the criteria to be classified as restricted. ASSIGNED
Funds that must be spent in a way designated by an external party.
Represents the value of inventory, longterm receivables, and permanent endowments, which are not available to be spent.
Residual, spendable amounts not contained in other classifications.
Outstanding Achievement in Popular Financial Reporting (PAFR)
The City of Newport News received an Award for Outstanding Achievement in Popular Annual Financial Reporting from the Government Finance Officers Association of the United States and Canada (GFOA) for its PAFR for the fiscal year ended June 30, 2024. This prestigious national award recognizes conformance with the highest standards of creativity, presentation, understandability and reader appeal for preparation of governmental popular reports.
For comments or questions about the Popular Annual Financial Report, please contact the Newport News Department of Finance at 757.926.3929.