Virginia Beach City Council Special Formal Session - FY 2026-2027 Budget Adoption - May 13, 2026
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Virginia Beach City Council Special Formal Session - FY 2026-2027 Budget Adoption - May 13, 2026
The Virginia Beach City Council held a special formal session on May 13, 2026, to consider adoption of the Fiscal Year 2026-2027 Resource Management Plan, which includes the operating budget, capital budget, tax levies, and related ordinances. The meeting was called to order at 6 p.m. on May 12, 2026 (with the transcript timestamp indicating May 13). After a single public comment and discussion by Councilmember Barbara Henley, the council voted unanimously (11-0) to approve the budget package.
Consent Calendar
- The council considered and approved the full consent agenda as read by the clerk, consisting of 15 operating budget items and 6 capital budget items:
- Ordinance to appropriate $3,961,944,885 for the FY 2026-27 operating budget (including $724,902,416 in interfund transfers, $350,466,956 for internal service funds, and $2,886,575,513 for operations).
- Ordinance to establish real estate tax levy for FY 2027.
- Ordinance to establish personal property and machinery/tools tax levy for calendar year 2027.
- Ordinance to authorize submission of the FY 2026-27 annual funding plan to HUD.
- Ordinance to amend City Code sections on tax exemption/deferral for elderly or disabled persons.
- Ordinances to amend City Code sections on sewer and water capital recovery fees.
- Ordinance to amend City Code sections on pricing for automated refuse and yard waste containers.
- Ordinance to amend Town Center Special Services District boundaries.
- Ordinance to establish Turnbrook Square Special Service District and dedicate revenues for Pembroke Square facilities.
- Ordinance to declare surplus of $1 million within the central business district TIF/Town Center TIFF.
- Resolution to extend school revenue sharing formula policy to June 30, 2027.
- Ordinances to add City Code sections on volunteer resources and budget amendment procedures.
- Ordinance to appropriate $417,716,343 for the FY 2026-27 capital budget from various sources.
- Ordinances authorizing issuance of general obligation bonds ($66,927,365 for public improvements; $5,900,000 for flood protection), stormwater utility revenue bonds ($721,057,315), and water/sewer system revenue bonds ($22,506,000).
- Resolution affirming commitment to fund locality share of VDOT projects.
Public Comments & Testimony
- Holly Martier (single mother, Virginia Beach resident) spoke against the proposed tax and fee increases, stating she is barely surviving on one part-time job, has struggled with utility bills, and called the potential real estate tax increase "despicable" and "a disgrace to the human race." She urged council not to raise taxes, warned it could lead to foreclosure, and criticized the additional restaurant tax as harmful to businesses. She commended Councilmember Barbara Henley for voting against previous increases.
Discussion Items
- Councilmember Barbara Henley expressed general support for the budget but raised several concerns:
- Cross-country track/trail system (Item 10 in reconciliation letter from mayor/vice mayor): She had expected $600,000 to begin design in the first year, but the approved plan delays design funding to year two, tied to the ITA master plan approval, which she noted faces many issues.
- Road projects: She noted that two road projects—Centerville Turnpike Phase 3 and Indian River Road Phase 7—have been stalled for 10 years despite being listed in the 2016-17 CIP. She expressed irony that $25 million for Hudome Way (serving two businesses) was funded while critical transportation projects remain on hold. She called for more information from Public Works to move road projects forward.
- Council aide hours: A reconciliation request from the city manager proposed increasing council aide hours from 20 to 30 per week at a cost of $145,000, a matter not discussed by council previously. She urged further discussion before approval.
- Despite these concerns, she stated she would support the budget overall.
Key Outcomes
- The council voted unanimously (11-0) to approve the operating budget, capital budget, and all associated ordinances and resolutions. Councilmembers Cummings and Hutchinson provided verbal votes.
- The meeting was adjourned immediately after the vote.
Meeting Transcript
One welcome all honorable members of City Council in accordance with Virginia Beach City Code 2-21 and the authority vested in me as Mayor of the City of Virginia Beach. I hereby call for a special formal session of the Virginia Beach City Council. Tuesday, May 12th, 2026 at 6 p.m. City Council Chamber, Building 1, Second Floor, 2401 Courthouse Drive. The purpose of the special formal session is to allow council members to consider the adoption of the fiscal year 2026-2027 resource. If you wish to make comments during the meeting, please follow the two-step process provided below. Register for the WebEx here or register for the City Council office by calling 757-3854303 prior to 5 p.m. on May 5th, 2026. This uh special formal session will be broadcast on cable TV, Virginia Beach.gov, and Facebook Live. Citizens are encouraged to submit their comments to the council prior to the special formal session via email at City Council at VBGov.com. Um Madam Clark, do we have a roll call? All present. Councilmember Cummings is participating virtually. All present, sir. Okay, great. At this point, um, I understand we have a speaker, but we'll have the reading of the uh you know first, and we'll call the speaker up. Okay, Rug Mary. Good evening, everyone. Umgthy, so just bear with me. Uh this is under this is for the um 2627 resource management plan uh reconciled proposal. A is the FY 2026-27 operating budget. Number one is the ordinance to appropriate 3,961 million 944, 885, consisting of 724 million 902,416 in interfund transfer, 350 million four hundred and sixty-six thousand nine hundred and fifty-six dollars for internal service funds, and two billion eight hundred eighty-six million five hundred and seventy-five thousand five hundred and thirteen dollars in operations for fiscal year beginning July 1st, 2026 and ending June 30th, 2027. Number two is the ordinance to establish a tax levy on real estate for FY 2027. Number three is the ordinance to establish the tax levy on the personal property and machinery and tools tax for calendar year 2027. Number four, is the ordinance to authorize the city manager to submit the FY 2026-27 annual funding plan to the U.S. Department of Housing and Urban Development HUD. Number five, is the ordinance to amend City Code sections 35-64 and 35-67, ray exemption for deferral of real estate taxes for elderly or disabled persons. Number six is the ordinance to amend City Code sections 28-4 and 28 uh 4.1, Ray Sewer Capital Recovery Fees. Number seven is the ordinance to amend City Code Section 37-7.1, Ray Water Capital Recovery Fees. Number eight, is the ordinance to amend City Code Section 31-15 and 31-35, Ray Pricing and Automated Refuse Receptacle and Yard waste containers. Number nine is the ordinance to amend the boundaries, Ray, the Town Center Special Services District, the SSD. Number 10, is the ordinance to establish Turnbrook Square Special Service Service District. Establish for the tax levy for real estate and dedicate real estate tax revenue from properties within Pembroke Square Special Service District, right? Public facilities and parking garages. Number 11 is the ordinance to declare a surplus of one million of funding within the central business district with South Tax Increment Enhance Financing and Town Center TIFF, FY 2025-26 operating budget. Number 12, it's the resolution to extend the city's school revenue sharing formula policy to June 30th, 2027. Number 13 is the ordinance to add the city council sections 2-500 and 2-501. Number 14 is the ordinance to amend City Code Sections 2.7 and Office of Volunteer Resources. Number 15 is the ordinance to amend City Code sections 2-187.1 and 2-199 Ray budget amendment procedures. And appropriate 417,716,343 FY 2627 capital budget subject to funds being provided from various sources and uh from here in. Number two is the ordinance to authorize the issuance of a general obligation public improvement bonds and the maximum amount of six uh sixty-six million nine hundred and twenty-seven thousand three hundred and sixty-five dollars for various public facilities and general improvements. Number three is the ordinance to authorize the issuance of general obligation public improvement funds in the maximum amount of five million nine hundred thousand uh rate flood protection. Number four is the ordinance to support the to authorize the issuance of stormwater utility system uh revenue bonds in the maximum amount of 721 million 57,315 dollars. Number five is ordinance to authorize the issuance of water and sewer system revenue bonds in the maximum amounts of 22 million five hundred and six thousand dollars, and number six is the resolution to affirm the city's commitment to fund the locality share of projects and provide signature authorities for projects under agreement within the Virginia Department of Transportation V dot. I move for approval. Okay, you have a second second second. Okay, at this point, uh we do have a speaker. Yes. I want to remind everyone that the city council speaker policy that allows certain representatives of groups to speak for 10 minutes applies only to planning items. All other speakers, whether speaking individually or on behalf of the group, will have up to three minutes to speak on a single item.
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