Virginia Beach City Council Meeting – November 19, 2025: Reversion Funds, Stormwater Advisory, and Charter Amendment Vote
Virginia Beach City Council Meeting – November 19, 2025
The Virginia Beach City Council met on November 19, 2025, to receive presentations on the school division's fiscal year 2024-25 reversion reconciliation and the Stormwater Management Advisory Group's recommendations, hold public hearings on a proposed charter amendment (blue line), council salary increases, and other items, approve consent agenda items including resolutions honoring Bobby Malotti and Admiral Jeremiah Denton, and vote on a resolution to support a charter amendment reflecting the 10-1 method of elections for city council and school board.
Consent Calendar
- Approved ordinances and resolutions including: a resolution requesting a charter amendment requiring a supermajority vote for land use approvals south of the blue line (alternative three), an ordinance authorizing a lease with T-Mobile for parking garage space, an ordinance declaring city property on Bars Road excess and authorizing exchange, an ordinance renewing a Cox Communications franchise, a resolution to designate Kings Grant Road in honor of Admiral Jeremiah Denton, a resolution naming the 24th Street stage the "Robert 'Bobby' Malotti Stage," and several others involving contracts, appropriations, and planning items. All were approved 10-0.
Public Comments & Testimony
- Charter Amendment (Blue Line) – John Moss proposed an amendment requiring the vote of the district council member for supermajority approvals; Sean Montero (Virginia Beach Tea Party) opposed development south of the blue line, citing preservation of rural character and water dynamics.
- Council Salary Increase – Multiple speakers opposed a proposed 71% increase in council salaries. John Moss, Waverly Woods, Tim Wurst, Kim Mayo, and Sally Ward argued that the timing was inappropriate given economic hardship, that council knew the salary when they ran, and that such a raise should be put to a voter referendum. A few speakers noted council members Cummings and Dyer had publicly opposed the raise.
- 10-1 Voting System Referendum – Numerous speakers (Janet Burns, Eddie C, Martha Thoreau, Bernita Richardson, Ella Dunbar, Sean Montero, Susan Feathers, Dr. Eric Majet, Georgia Allen, Melissa Lucason, Gary McCollum) urged the council to approve the resolution unanimously, emphasizing that the voters had clearly mandated the 10-1 system in the November 4, 2025 referendum. Some criticized council members who had campaigned against the measure or were absent (Councilwoman Henley). Reverend Gary McCollum offered a prayer for unity and wisdom.
Discussion Items
- School Reversion Reconciliation (Crystal Pate, CFO for Virginia Beach City Public Schools) – Presented the unaudited 2024-25 reversion funds totaling $38,094,580, plus a $7,464,613 city revenue sharing surplus, for a total of $45,559,193 available for reappropriation. Key allocations: $38.5 million to the capital improvement program, including $23.6 million for Princess Ann High School Replacement, $4.4 million for payroll system replacement, $10.5 million transferred to School Reserve Special Revenue Fund for 2026-27 CIP, $1.2 million for Jericho Road demolition, and $5.8 million to the health insurance fund to build the two-month reserve. Council praised the budget team's accuracy (budget of ~$1.1 billion, reversion of 2.18% vs. 2% target). Concerns about health fund management and the one-time nature of the funding were addressed; the school board agreed to place the $5.8 million in a special revenue fund, not for ongoing expenses, and to provide monthly reports.
- Stormwater Management Advisory Group (Chris Pocta, Chair; Julie Brennan, Facilitator) – The group achieved unanimous consensus on all recommendations. Key recommendations:
- Encourage and invest in regional stormwater solutions (e.g., regional BMPs) and explore diverse ownership models.
- Facilitate redevelopment aligned with the comprehensive plan, without lowering standards.
- Do not create additional ordinances based on drainage basins; instead enhance education and update mapping (e.g., recurrent flooding indicator map already updated).
- Formalize a cost-share program with mandatory criteria (public component, weight of factors) and ensure sufficient funding.
- Offer incentives (parking reduction credits, financial incentives, flexibility in BMP design) to encourage exceeding ordinance requirements and green infrastructure.
- Lobby the state for expanded authority and incorporate recommendations into the zoning ordinance update. Council members expressed appreciation and noted the need to balance stormwater management with attainable housing and permit timeliness.
Key Outcomes
- Consent Agenda – Approved 10-0 as read by Vice Mayor Wilson.
- Resolution Honoring Bobby Malotti – Approved unanimously; the 24th Street stage will be renamed the Robert "Bobby" Malotti Stage; a formal unveiling will occur in spring 2026.
- Resolution Honoring Admiral Jeremiah Denton – Approved unanimously; Kings Grant Road will be designated in his honor; signage ceremony planned for spring.
- Resolution to Support Charter Amendment for 10-1 Voting System – Approved 9-0 (Councilwoman Henley absent; Councilman Berlucci absent from earlier roll call but not listed as voting). Council Member Stacey Cummings, who had supported the 7-3-1 system, voted in favor, stating the voters had spoken and it would end litigation costs. The resolution will be sent to the General Assembly.
- Appointments – Approved 9-0: Arts and Humanities Commission (Tim Crowley), Health Service Advisory Board (Tina Gustin), Independent Citizens Review Board (Isadro Berea, Los Angelo Campos, Arneta Spikes).
- The council approved a motion to recess into closed session (10-0) for legal and personnel matters, later certified the session.
- No votes were taken on the council salary increase item; it was a public hearing only.
- The charter amendment (blue line) public hearing was held; no vote taken on that item during the meeting (it was a consent agenda item under alternative three).
Meeting Transcript
Come on, welcome all. Call this meeting to order. And uh, Mr. Dehaney, if we can go ahead and get your own. Mr. Mayor, members of council. The first presentation will be provided by Crystal Pate, the CFO for the schools. She's gonna brief city council on their fiscal year 2425 reversion reconciliation request. Okay, welcome. Nice to see you again. No, thank you. It's been so long. Um good afternoon, Mayor, Vice Mayor, members of City Council, Mr. Dehaney. This afternoon, I will provide a summary of Virginia City Public Schools unaudited 2024-25 reversion funds and the reconciliation of the revenue sharing formula between the city and schools. Um, the information was presented to the school board, which approved a resolution on October 28th. Um, today's presentation will cover the timeline of revenue recognition for the school division, a breakdown of the 2024-25 reversion funds, the city school revenue sharing formula reconciliation, the total amount available for reappropriation, and then the school board approved spending plan. So to begin, I'd like to review when and how we learn about actual revenues compared to the projections used to build the budget. The fiscal year 2024-25 budget was approved in May of 2024 using forecasts based on enrollment, which determines staffing, projected state and federal aid, the city's local contribution, and other anticipated revenue sources. These were the best estimates available at adoption, but actual receipts vary throughout the year. Each month, the school board receives interim financial statements reflecting actual revenues, which are reporting on varying schedules. On September 23rd, we presented the fiscal year 24-25 year in interim financials to the school board, which provided an overview of revenues received related to the fiscal year. Because revenues are received on varying timelines, year-in reporting includes both finalized amounts and pending receipts. Key milestones in the fiscal year 24-25 revenue timeline include December of 2024, the governor's biannual budget amendments are released, and the Virginia Department of Education released the accompanying document and calculation tool on January 7th of 25, providing the first look at proposed state revenue adjustments for fiscal year 25 and 26. On March 6th of 25, the Virginia Department of Education released the document and calculation tool, reflecting the General Assembly amendments adopted on February 22nd for fiscal year 25 and 26. April of 2025 interim financial statements showed federal revenues above projected budget projections due to impact aid payments, and other revenue sources were also slightly above budget at that time from a dual settlement that was later transferred from the operating budget to the grant fund. For the May 2025 interim financial statements, additional impact aid payments increase federal revenues further above budget, and other revenues approach budget projections due to a propane bus rebate, indirect costs for grants, and lost and damaged technology, partially offset by lower than projected stop arm program receipts. On June 5th, the Virginia Department of Ed released its final calculation tool confirming state revenue adjustments. June 30th, 2025 year and financial statements verified that both federal revenues and state revenues, including state sales tax, exceeded budget. And note that sales tax allocations reported during the year are based on state revenue projections with semi-monthly payments later true up to actual collections. August 2025, fiscal year in close, finalized and reconciled fiscal year 24-25 financials and preparation for year-in reporting audits and submission of required state and federal documents. And on September 3, 2025, the city confirmed us of a 7.5 million surplus for Virginia B. City Public Schools under the revenue sharing formula. So this timeline illustrates that budget estimates evolve as more information becomes available. Flexibility remains essential to address revenue fluctuations and unforeseen needs such as fuel and utility cost increases, inflationary pressures, natural disasters, litigation, technology demands, new mandates, or health care costs. So this slide outlines each component contributing to the total 2425 reversion. Unexpended debt service for approximately 5.6 million dollars resulted from the absence of a bond sale, leading to lower debt service costs than budgeted. To avoid volatility, we continue to budget debt service at the 2324 levels, knowing that if debt is not issued during the year, the surplus is typically redirected to the CIP at year end. With a bond issuance plan for the spring, debt service costs are expected to increase in future years. Next are revenues exceeding budget projections. Across all sources, revenues surpassed estimates by approximately $10.7 million. In Virginia, school divisions may not expend additional revenues without city council appropriation, unappropriated funds revert to the locality. Most revenue surpluses are identified late in the year, leaving insufficient time to complete appropriation and spend responsibly before June 30th. So breaking down the $10.7 million variants further for federal revenue. The April 25 interim financial statements first signaled a surplus due to the impact aid payments, and by year in federal revenue exceeded budget by approximately $2.8 million driven by impact aid and Medicaid reimbursements. For other revenues, the May 2025 interim financial statements showed growth in this category. By year in, these exceeded budget by roughly $415,000, largely due to a $400,000 propane bus rebate. Regarding state revenues and state sales tax, the Virginia Department of Education released the final calculation tool on June 5th. As part of the year-in closing process, a portion of sales tax receipts collected in July are recorded back to June to ensure accurate recognition within the correct fiscal year. As reported in the interim financial statements for the year ending June 30th, the results were state revenue exceeded budget by approximately $4.7 million.
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