VIRGINIA BEACH, Va. — People in Virginia Beach are getting their first look at what could be in next year’s budget.
During a meeting on Tuesday, city council members heard the city manager’s proposed $2.6 billion operating budget.
Let's break it down.
For one, it’s 2.77 percent higher than last year’s operating budget. Kevin Chatellier, Director of Budget and Management Services, attributes that to revenue growth, though not as high as other post-pandemic years.
Something that had many of the council members talking was the two-cent real estate tax reduction, despite sky-high real estate assessments.
"I think we're probably going to have to be responsive to the conditions of the day and be reflexive and the conditions of today are that the assessments are rising at an unsustainable rate," said Councilman Michael Berlucchi.
The rate would drop from 99 cents to 97 cents.
Councilwoman Jennifer Rouse wondered how sustainable that reduction would be to fund other projects.
"I want to think about the impact long term and to be able to maintain our services but finish the projects that neighborhoods have been looking to get accomplished, how much more will this kick out these kinds of projects?"
The operating budget proposal also includes increasing the waste management monthly fee by three dollars and five cents because the current recycling contract is doubling in cost.
"To maintain the same service that citizens are currently being provided, the cost went up dramatically. And basically, it will cost us another three dollars and five cents to provide the same baseline services," said City Manager Patrick Duhaney.
Also listed in the proposed operating budget, both city and school employees would get pay increases, though they would be structured differently.
The budget would also add employees to multiple departments—15 security positions for elementary schools and 14 middle school reading specialists, 4 EMS paramedics, 17 public works personnel and 17 firefighters.
"This is, again, not to enhance services but to maintain services. The fire department in recent years has been experiencing a need to hold over staff from one shift to another shift," said Kevin Chatellier, Director of Budget and Management Services, referring to the 17 fire department positions. He adds the department asked for 60 positions.
It would also eliminate some already vacant positions in departments like Emergency Communications. However, to make up for that, the budget aims to include funds for AI technology to answer non-emergency calls.
The budget would also eliminate the Kentucky Avenue ICF and add four full-time lifeguard positions to keep pools operating at pre-pandemic levels.
45 percent of the operating budget goes towards the school division. City Council members will hear the finalized VBCPS budget during their next meeting.
In the $5.4 billion Capital Improvement Plan over the next six years, $60 million could go towards fully funding the Rudee Loop Park Development. 24 percent of the funds could go to flood protection and stormwater projects and 19 percent to roadways.
Funding for Rudee Loop was pulled from funds to expand resort area parking, though $28 million remains there.
Something that Councilwoman Barbara Henley was second guessing is the plan to "redirect" certain funds. Essentially, the city is looking at ARP, TAP and Open Space funds and if they're healthy enough, they can redirect funds there within the CIP instead of pulling from the General Fund.
There are two public hearings scheduled to voice your opinions on the budget—April 17 and 23 at City Hall both at 6 p.m.
The Council will vote on the budget on May 14.
To read more about the budget, click here. To watch the full presentation, click here.