OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

Chesapeake City Council Meeting and Work Session - April 22, 2025

City Council — Tuesday, April 22, 2025
BodyChesapeake, Virginia
SessionCity Council
DateTuesday, April 22, 2025
StatusFILED
Video Record
0:00 / 3:20:13

Transcript — Verbatim
1:18

Is that me?

1:20

God.

1:21

Why is it everybody calls me, right?

1:30

Good evening, everyone.

1:31

I want to welcome you all to our April 22nd, 2025 work session.

1:38

Mr.

1:38

Manager, would you please, sir?

1:41

Thank you, Mr.

1:41

Mayor.

1:42

So tonight we're going to try to wrap up the operating and capital budget.

1:47

You all did a lot of work last week to find a way to get the majority of the priority public safety items funded.

1:55

You were able to fully fund public safety priority A and fully fund everything else in the proposed budget.

2:13

And so for today, we're going to go over the final operating budget amendments.

2:17

I'll have Jonathan go through sort of those different buckets that you can see on your slides.

2:22

Likewise, go over the CIP amendments.

2:47

So as Chris mentioned, I'm going to walk you through two separate sections.

3:15

As well, we have a number of amendments from that have been requested by the school board, and we will present those to you as well.

3:45

Then we have the reallocation of the personal property tax from mosquito control.

3:50

And you can see a number of other transactions there that we will need to make in order to uh effectuate those amendments.

3:58

Now a couple things I'll point out on this slide.

4:07

What those represent is these are the summaries of those transactions.

4:25

We are not showing that on this slide.

4:32

Something else that I would point out on this slide is this is not all of the changes to the general fund.

4:38

In a moment, I'm going to show you some amendments that have been requested by the school board, and they are requesting to use FY24 reversion and revenue sharing true up.

5:00

So in a couple of weeks, when you see, assuming this is where we landed, when you see the changes in the general fund, it will not be a reduction of 2.9 million dollars.

5:10

It will be different.

5:11

So in just a few slides, I will show you that.

5:33

Next, we move to the mosquito control fund.

5:37

Again, City Council decided to redirect the eight cent of the personal property tax from mosquito control to enhance public safety.

5:47

So on the in within the mosquito control fund, there are a number of things that we would need to do to remove that revenue from the fund and then replace that revenue with the use of fund balance.

6:04

So these are the amendments that have been requested by the school board to the school's operating budget.

6:11

There are no CIP amendments, although they did request CIP amendments in the same letter, the difference being the timing.

6:31

So that document was complete, so we did not add these amendments at that time.

6:37

The CIP was different.

6:39

We were still working on that document, so we will able to and incorporated those changes into the city manager's proposed CIP.

6:49

So as you can see, if you go to the very bottom, I mentioned earlier the FY24 reversion and revenue sharing true up.

6:57

Again, those amounts would need to be appropriated in the general fund and then transferred to the schools to fund the various amendments that are shown here on the slide.

7:08

All of these are one-time costs as that is fund balance, so it is a one-time revenue source.

7:16

In total, it's about 20.7 million dollars of amendments that the school board is requesting.

7:22

And this will impact their operating fund, their athletics fund, and their cell tower fund.

7:31

Then we move to the CIP on the general government side, again consistent with funding, enhanced public safety option A.

7:41

This is a reduction of the increased funding for the fire station four replacement.

7:47

There is some previously appropriated and I believe some program funding for fire station four that remains.

7:54

This is simply the amount that was increased in the city manager's proposed budget and funded by the dedication of the two cent real estate tax.

8:05

Similarly, fire station 14, the and the replacement of the fifth police precinct also must be reduced in order to bring the budget back into balance.

8:16

And then the second set of turnout gear initially, we were funding that over two years out of the city lockbox again as part of the one cent dedication to the city lock box as part of the enhanced public safety dedication.

8:31

Now that that has gone away, we are funding that through a direct transfer from the general fund in the form of general fund pay go to the CIP, and we're doing it all in year one.

8:47

And then finally, moving to public utilities, as council will recall, we had a conversation last week about the Avalon Water and Sanitary Sewer Project.

8:59

And this shows you all the various components of putting that project back into the original programs that it existed in prior to it being moved to a standalone project and funded by debt service backed by the South Norfolk TIFF.

9:18

So these are the various transactions that will need to occur again to produce a net decrease in year one of just over 20.9 million dollars in the public utilities CIP.

9:34

Now we'll move to the new and updated ordinance sections.

9:49

Um was not in alignment with the ordinance or there was some ambiguity in the ordinance, and one of the things we wanted to try to do was reduce that ambiguity, increase transparency, improve internal controls, and also enhance clarity.

10:00

And one of the things we wanted to try to do was reduce that ambiguity, increase transparency, improve internal controls, and also enhance clarity.

10:10

So you'll see here there are four sections that we've either decided to add a section or simply revise the language within an existing section in order to do one of those four things.

10:23

So the first section is section for the FY26, the section number can change from year to year, but for FY26, it is Section 11, and this section deals with the health care fund.

10:35

So for each of these, I'm going to talk about what the amendment would do or what the change would do, and then why we're recommending it.

10:42

So this change simply allows the city manager, the or authorizes the city manager to move appropriations within the health care fund to match actual expenditures.

10:54

A couple of weeks ago, City Council considered and approved a transfer of about $3.1 million for this very purpose.

11:04

The expenditures for health care were out of alignment with the budget.

11:09

Back when this fund was established back in 2016, council at that time gave the city manager and the finance department as the designee the authority to move appropriations.

Discussion Breakdown — Share of Meeting
Budget Equity Analysis██████████████████████████26%
Procedural██████████████████18%
Public Engagement████████████12%
Public Safety██████████10%
Public Works█████5%
Boundary Disputes█████5%
Historic Preservation█████5%
Transportation Safety███3%
Community Engagement██2%
Summary of Proceedings

Chesapeake City Council Meeting Summary – April 22, 2025

On April 22, 2025, the Chesapeake City Council convened a work session at 5:00 p.m. and a regular meeting at 6:30 p.m. in the City Hall Council Chamber. The work session focused on final budget ordinance changes and data center taxation. The regular meeting featured proclamations, public hearings on the FY2026 budget, approval of consent and regular agenda items, appointments to boards and commissions, and a closed session. All votes were unanimous unless otherwise noted.

Work Session (5:00–5:45 p.m.)

  • Budget Ordinance Section Changes: Finance staff presented proposed amendments to the budget ordinance, including granting the City Manager authority to move appropriations within the health care fund without council approval, reducing grant appropriations to match actual awards, clarifying the legal level of budgetary control, and treating grants like encumbrances for carryover. These changes aim to improve transparency and internal controls.
  • Data Centers: The City Manager discussed a potential increase to the data center tax rate, noting the current low rate has not been an effective incentive. He indicated that a tax increase would be brought forward soon and would not harm existing pipeline projects.
  • Fire Station 4 and Other Priorities: The City Manager presented sample expenditure reductions to fund the $1.6 million annual debt service for Fire Station 4. It was clarified that land acquisition for the station would proceed using one-time funds regardless of this ongoing funding. Several council members expressed positions on nonprofit funding and the victim witness grant replacement, with Council Member Newins questioning the value of nonprofit contributions and Council Member King defending them.

Public Hearings

Citizens commented on four budget-related ordinances (tax levy, appropriations, capital improvement appropriations, and transient occupancy tax increase). Speakers included:

  • Vic Nicholls (self) offered detailed comments on budget pages and questioned items like the South Norfolk TIFF, dispatcher staffing, and the LS Greenlink return on incentives.
  • Pamela Brandy (self) spoke in opposition, expressing frustration with tax increases and demanding more transparency.
  • Tom Bell (Professional Firefighters of Chesapeake Local #2449) spoke in support of the enhanced public safety budget, noting the fire department's needs and thanking council for the investment.
  • Carolyn White (Pughsville community) spoke in opposition, highlighting lack of stormwater drainage and trail connectivity in her neighborhood.
  • Nichole Davis (Endependence Center) offered comments on the Thrive program's outcomes, including serving 206 residents over three years and helping 6 gain employment.
  • Nathan Croslin (Public Art Committee) spoke in opposition, requesting restoration of $100,000 for the public art committee and $50,000 for the Fine Arts Commission.
  • Markiella Moore (self) offered comments questioning utility project funding, stormwater positions, and requesting disclosure of details.
  • Rogard Ross (Friends of Indian River) spoke in support, thanking council for budget items benefiting the Indian River area.

No action was taken on these public hearing items; they were presented for citizen input only.

Consent Calendar

  • Approved agenda and minutes of March 11, 18, and 25, 2025.
  • Consent agenda items (City Manager Items 1–4) approved unanimously:
    1. Application for 2025 Virginia Rules Camp Grant from the Attorney General's Office.
    2. Transfer of $1,940,000 within FY2025 operating budget for snow event expenses.
    3. Acceptance and appropriation of $800,000 from the Department of Behavioral Health and Developmental Services for the Community Health Services Block Grant.
    4. Transfer of $950,000 within the Health Insurance Internal Service Fund.
  • Item 5 (Fire Department reimbursement) was removed at Council Member Ritter's request and considered under the regular agenda.

Discussion Items

  • City Manager Item 5: Council approved the appropriation of $363,938 to the Fire Department for reimbursement of payroll expenses from three Virginia Task Force 2 deployments, two Hampton Roads Metropolitan Medical Strike Team training exercises, and the Luke Bryan Farm Tour. Council Member Newins made a conflict-of-interest disclosure regarding her husband's fire department employment.
  • City Manager Item 6A & 6B: Approved appropriations for portable radio upgrades: $398,849 from the Public Safety-Police State HB 599 account and $2,074,255 from the Fee Supported Activities Special Revenue Fund to the Public Safety Radio Replacement Capital Improvement Project.
  • City Manager Item 7: Approved a resolution supporting the Chesapeake Redevelopment and Housing Authority's issuance of up to $20,000,000 in multifamily housing revenue bonds for Landmark Housing LLC.
  • City Manager Item 8: Approved a resolution authorizing the City Manager to apply for FY2025 Port Infrastructure Development Program grant funding for design and construction of a pier at the LS Greenlink site.
  • New Business: Approved an initiating resolution requesting the Planning Commission to consider amendments to Article 14 of the Zoning Ordinance to permit external lighting on non-residential structures and signs, subject to conditions. The resolution passed 9–0.

Appointments

  • Planning Commission: Clayton Spruill appointed (8–1 vote; one no vote present).
  • Local Board of Building Code Appeals: Curt Craven (Alternate), Michael Pack, and Andrew Raffin appointed by unanimous consent.
  • Natural Event Mitigation Advisory Committee: Robert Lee (Emergency Management) appointed by unanimous consent.
  • Transportation Toll Facility Advisory Committee: David Schwind (Technical Background), Tawanna McFarlin (Financial Background), and Daniel Rosinski (Attorney) appointed by unanimous consent.

Public Comments (Non-Agenda)

  • Carolyn White (Pughsville) discussed boundary issues with Suffolk, historical context, and utility concerns.
  • Vic Nicholls (self) raised senior services, Greenbrier traffic, and infrastructure concerns.
  • Tommy Hart (self) shared a personal story about a 1980s murder investigation and alleged police misconduct.
  • Jennifer Knight (Historic Preservation Commission) requested funding to update the 1999 archaeological survey.
  • Pamela Brandy (Pughsville) reiterated boundary and utility tax concerns, demanding answers.
  • Rogard Ross (Friends of Indian River) discussed safety improvements and expressed opposition to lighting the LS Greenlink tower, citing bird migration risks.

Key Outcomes

  • All regular agenda items passed unanimously (9–0): fire reimbursement, radio upgrades (two parts), housing revenue bonds, and LS Greenlink grant application.
  • Consent agenda approved with item 5 removed.
  • All appointments made as listed above.
  • Initiating resolution on external lighting passed 9–0.
  • Closed meeting authorized to discuss real property boundary line with Suffolk; certification motion passed.
  • Mayor announced meetings with Public Utilities (National Drinking Water Week) and Lions Club; potholes can be reported via 382-CITY or online.
  • The budget finalization and adoption is scheduled for May 13, 2025, with final amendments on June 10, 2025.

Meeting Transcript

Is that me? God. Why is it everybody calls me, right? Good evening, everyone. I want to welcome you all to our April 22nd, 2025 work session. Mr. Manager, would you please, sir? Thank you, Mr. Mayor. So tonight we're going to try to wrap up the operating and capital budget. You all did a lot of work last week to find a way to get the majority of the priority public safety items funded. You were able to fully fund public safety priority A and fully fund everything else in the proposed budget. And so for today, we're going to go over the final operating budget amendments. I'll have Jonathan go through sort of those different buckets that you can see on your slides. Likewise, go over the CIP amendments. So as Chris mentioned, I'm going to walk you through two separate sections. As well, we have a number of amendments from that have been requested by the school board, and we will present those to you as well. Then we have the reallocation of the personal property tax from mosquito control. And you can see a number of other transactions there that we will need to make in order to uh effectuate those amendments. Now a couple things I'll point out on this slide. What those represent is these are the summaries of those transactions. We are not showing that on this slide. Something else that I would point out on this slide is this is not all of the changes to the general fund. In a moment, I'm going to show you some amendments that have been requested by the school board, and they are requesting to use FY24 reversion and revenue sharing true up. So in a couple of weeks, when you see, assuming this is where we landed, when you see the changes in the general fund, it will not be a reduction of 2.9 million dollars. It will be different. So in just a few slides, I will show you that. Next, we move to the mosquito control fund. Again, City Council decided to redirect the eight cent of the personal property tax from mosquito control to enhance public safety. So on the in within the mosquito control fund, there are a number of things that we would need to do to remove that revenue from the fund and then replace that revenue with the use of fund balance. So these are the amendments that have been requested by the school board to the school's operating budget. There are no CIP amendments, although they did request CIP amendments in the same letter, the difference being the timing. So that document was complete, so we did not add these amendments at that time. The CIP was different. We were still working on that document, so we will able to and incorporated those changes into the city manager's proposed CIP. So as you can see, if you go to the very bottom, I mentioned earlier the FY24 reversion and revenue sharing true up. Again, those amounts would need to be appropriated in the general fund and then transferred to the schools to fund the various amendments that are shown here on the slide. All of these are one-time costs as that is fund balance, so it is a one-time revenue source. In total, it's about 20.7 million dollars of amendments that the school board is requesting. And this will impact their operating fund, their athletics fund, and their cell tower fund. Then we move to the CIP on the general government side, again consistent with funding, enhanced public safety option A. This is a reduction of the increased funding for the fire station four replacement. There is some previously appropriated and I believe some program funding for fire station four that remains. This is simply the amount that was increased in the city manager's proposed budget and funded by the dedication of the two cent real estate tax. Similarly, fire station 14, the and the replacement of the fifth police precinct also must be reduced in order to bring the budget back into balance. And then the second set of turnout gear initially, we were funding that over two years out of the city lockbox again as part of the one cent dedication to the city lock box as part of the enhanced public safety dedication. Now that that has gone away, we are funding that through a direct transfer from the general fund in the form of general fund pay go to the CIP, and we're doing it all in year one. And then finally, moving to public utilities, as council will recall, we had a conversation last week about the Avalon Water and Sanitary Sewer Project. And this shows you all the various components of putting that project back into the original programs that it existed in prior to it being moved to a standalone project and funded by debt service backed by the South Norfolk TIFF. So these are the various transactions that will need to occur again to produce a net decrease in year one of just over 20.9 million dollars in the public utilities CIP.

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