NORFOLK, Va. — City leaders across Hampton Roads made big decisions Tuesday night as they voted on municipal budgets for Fiscal Year (FY) 2025.
Each of the five cities who voted Tuesday — Norfolk, Virginia Beach, Chesapeake, Newport News and Portsmouth — includes at least a 3% pay increase for city employees.
Chesapeake, Norfolk, Portsmouth and Newport News also voted to approve the sale of the Hampton Roads Regional Jail (HRRJ) to Portsmouth. Hampton is the last city to make a decision before this sale can be finalized, with city council expected to vote on the sale on May 22.
Hampton and Suffolk voted on their budgets for the upcoming year before this week.
Here are some highlights from each city budget, as well as the full proposed budget documents.
NORFOLK
The Norfolk City Council voted on its largest budget in city history; the 2025 fiscal year budget is just shy of $2 billion.
Some of the main budget items include improvements to neighborhood safety and quality of life, along with addressing homelessness and mental illness.
Another large part of the budget is tax relief, with a two-cent decrease in the real estate tax rate. Further, the city proposed a 3.5% general wage increase for employees.
Their six-year capital improvement plan includes funds to renovate Scope Arena and Chrysler Hall.
There will also be no fee increases aside from the established automatic fee increases for Storm Water, Water, and Wastewater systems, necessary to maintain current operations.
The budget also allocates $1.7 million and 14 full-time equivalent employees to address homelessness, mental illness, and substance abuse. An additional $1.5 million from Capital Improvement Plan funds will also go toward this initiative.
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VIRGINIA BEACH
In a 10-1 vote, the Virginia Beach City Council approved its revised FY 2024-25 Budget and Capital Improvement plan. City leaders approved an operating budget of more than $2.6 billion, nearly 3% higher than last year's.
The budget cuts the real estate tax rate by two cents and increases the waste collection fee by about $3 per month to cover additional costs of recycling.
The city also moved to increase all city employee wages by nearly 3.5%.
Last week, Virginia Beach City Council members decided to expand the city's budget to provide support for the arts and more funding for the fire department.
On Tuesday night, council members approved the funding necessary to add 30 full-time positions at the fire department.
The city council voted to direct funding to expand current art facilities. Further, the city approved funds to bring back the Parks After Dark program, which would cost more than $350,000.
For a full breakdown, view the city's proposed budget here. City officials said the final approved budget will be posted online on or around July 1.
CHESAPEAKE
The City of Chesapeake voted on its proposed budget on Tuesday night, with the proposed operating budget totaling $1.6 billion, and the capital improvement budget of $367 million.
Although no new fees were recommended, the budget suggested increasing tax bills due to real estate assessments expected to climb 4.5% citywide.
With the closure of the HRRJ, City Manager Christopher Price said they need to hire 72 new full-time employees to man their city jail, which he said will save $1.5 million a year.
Here's a full breakdown of the recommended operating budget and capital improvement plan.
NEWPORT NEWS
Considering its strategic plan developed for 2020 to 2025, the City of Newport News said it's prioritizing people, places, and government in its budget for 2025.
The Newport News City Council unanimously passed its $624.3 million FY 2025 budget, which includes $1.1 billion plan for the general fund, $123.1 million for schools, and $118.3 million for public safety.
Council members approved a step plan for police, fire and emergency services workers that will increase wages 5%, along with funding a dozen new single-role paramedic positions.
Before voting on the budget Tuesday night, council members held a work session to discuss potential adjustments to the proposed FY 2025 budget.
Among those amendments was council members changing raises for city workers making $174,000 a year or more from 3% to 1.5%.
For a full breakdown of Newport News' approved FY 2025 budget, click here.
PORTSMOUTH
Portsmouth City Council members voted unanimously Tuesday night to approve the budget for next year, which includes the initial costs for collective bargaining and a 5-cent real estate tax credit.
For FY 2025, Portsmouth recommended an overall budget of $933,605,787, with $830,493,587 potentially allocated to the operating budget and Portsmouth Public Schools and the remaining $103,112,200 proposed for the Capital Investment Fund.
"Over the last two years, the city's economy has experienced unprecedented growth. The new revenue streams have given the city increased opportunities to thrive," wrote Interim City Manager Dr. L Pettis Patton. "As the city navigates through this period, we must be mindful and determined that these investments create a brighter future for the city and that our fiscal responsibility is vital."
In FY 2025, the city expects to make another $16 million via the Rivers Casino Portsmouth. That money will go to the general fund, which can be used for anything and everything. Since it first opened more than a year ago, the city has received more than $20 million.
Finally, Portsmouth Police Chief Steven Jenkins gave an update on the doorbell camera initiative that aims to provide officers with an extra resource when investigating crimes.
In 2022, the department started giving out 250 of them to residents, who had the option to register them with the city. Chief Jenkins said there are now just five cameras left.
Here's the proposed FY 2025 budget for Portsmouth.
HAMPTON
Last week, the Hampton City Council approved its more than $600 million budget for FY 2025, which included a lower real estate tax and a 3% general wage increase for city employees.
The FY25 budget, which goes into effect on July 1, of $643,271,950 is a 5.2% increase from last year. The total includes Hampton City Schools' budget which accounts for $289,035,244.
SUFFOLK
Suffolk also previously approved its $883 million budget — a 0.4% increase from last year's.
The proposed budget recommended adding 44 new positions to various departments, including the fire department, police, emergency communications, and social services.
Further, city leaders proposed maintaining the $1.09 per $100 of assessed value for the city-wide real estate tax.