Town Posts Nearly $938,000 Net Surplus Ahead of FY 2025 Close
Cape Charles, Virginia–The Cape Charles Town Council has directed the Finance Department to present preliminary closing figures for the fiscal year ending June 6, 2025, in advance of the town’s annual audit. The early release of these numbers is intended to give council members a top-level snapshot of the town’s financial health as they begin making major long-term planning decisions, including setting the budget for the coming fiscal year.
The results paint a broadly positive picture. Across all funds, the town recorded a combined net surplus of $937,686 in FY 2025—nearly three times the $337,401 surplus posted the previous year and more than triple the $294,836 recorded in FY 2023.
General Fund: Strong but Tightening
The General Fund, the town’s primary operating account, brought in $5,233,506 in revenue during FY 2025—a slight decline from the $5,320,465 collected in FY 2024 but still well above the $4,505,825 recorded two years ago. Meanwhile, expenditures rose sharply to $4,785,361, up from $3,650,588 the prior year. The result was a General Fund surplus of $448,145, a significant drop from last year’s $1,669,877 excess.
The trend suggests that while revenue has largely stabilized, spending growth is accelerating—a dynamic council members will likely scrutinize closely as they look ahead.
Capital and Infrastructure Funds Show Improvement
The Capital Fund reversed two consecutive years of deficit spending, posting a $433,038 surplus in FY 2025 after running shortfalls of $155,373 and $76,894 in the two prior years. Revenue came in at $755,683 while expenditures dropped sharply to $322,645, suggesting that major capital projects from previous years have wound down.
The Debt Service Fund continued to run a deficit, though at a dramatically reduced scale. The $16,032 shortfall in FY 2025 is a fraction of the $674,820 gap recorded in FY 2024, indicating the town has retired or restructured significant debt obligations.
Enterprise Funds: A Mixed Bag
Among the town’s enterprise operations, the Utility Fund recorded a $102,058 surplus—a notable turnaround from deficits of $626,281 in FY 2023 and $347,921 in FY 2024. However, both revenue and expenditures dropped dramatically, reflecting what appear to be structural changes in how utility operations are accounted for.
The Harbor Fund continued to operate at a loss, posting a $62,099 deficit in FY 2025. That said, the gap has narrowed each year from a $97,538 shortfall in FY 2023 and $198,713 in FY 2024. Revenue climbed to $1,278,791, the highest of the three-year period, though expenditures also rose to $1,340,890.
The Sanitation Fund posted a small $4,123 deficit, essentially breaking even. The Special Activities Fund returned to surplus territory with a $36,699 gain after a $40,966 deficit the prior year.
What Comes Next
The town has engaged Davenport & Company, a financial advisory firm, to provide council with a comprehensive analysis built on these preliminary figures. Davenport is expected to deliver its report, including forward-looking financial projections, at the regular March Town Council meeting.
That presentation is expected to form the foundation for council’s upcoming budget deliberations and any decisions about long-term fiscal strategy. The numbers released here, while preliminary and subject to adjustment during the annual audit, represent the most complete picture of the town’s finances available at this time.
All figures exclude reappropriations, transfer of utility sale proceeds, and transfers to fund balance.
FY 2023–2025 Financial Summary by Fund
About the Author
Stu Stu and I actually agree for once.
If you need to rent your vacation property to help pay the mortgage, then you could not afford it to…
"Building Department: Schedules and conducts physical inspections to ensure the property meets safety standards, occupancy limits, and applicable building codes."…
Renewable Energy? Sounds like a liberal wet dream. Drill Baby, Drill!
You are as crazy as a bed bug in June.