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VIRGINIA BEACH — Most residents will not get a break this year on city real estate taxes, and they will pay more for water, sewer and trash services soon. On Tuesday, in a 8-3 vote, the City Council adopted the $2.5 billion budget, which includes public utility fee increases over the next several years, beginning July 1.
Council members Barbara Henley, Chris Taylor and Sabrina Wooten voted against it.
“The budget should reflect all of the needs of the citizenry,” said Wooten before the vote.
Taylor felt there hadn’t been enough discussion as a body about tax cut options.
“I can’t support this process,” Taylor said.
The school system’s operating budget is 46% of the total. Teachers will have a 1.5% bump in salary each time they advance a step, and bus drivers and cafeteria assistants will move up the pay grades to get closer to the $15 an hour state minimum wage requirement by 2026.
The real estate tax rate will stay the same as last year at 99 cents per $100 of assessed value, even as rising real estate tax assessments mean higher tax bills for residents. Assessments grew by more than 9% for most property owners. A single family home that was assessed at $330,000 last year is now worth about $30,000 more, which equates to a roughly $300 higher annual tax bill.
Total Virginia Beach assessments are projected at $76 billion in fiscal year 2024, which will generate $755 million in tax revenue for the city.
The budget does not include real estate tax relief for most, despite requests from dozens of residents who spoke at public hearings or reached out personally to their City Council representatives.
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Surviving spouses of military service members who died in the line of duty will be nearly exempt from paying real estate tax, reducing revenue in the general fund by about $90,000.
Sandbridge residents who have been paying $1.01 per $100 of assessed value, will see a 1 cent reduction, which equates to a reduction of approximately $173,000 in revenue for the special service district.
City employees will receive a 5% raise, which will cost taxpayers $25 million.
This year’s budget is 3.4% higher as compared with the previous year, and the city manager had to account for reductions in revenue from federal sources, which had helped Virginia Beach over the last several years, particularly during the pandemic.
The budget includes hiring more staff to man ambulances, homeless prevention personnel, police officers and legal staff in the commonwealth’s attorney’s office to assist with the review of police body worn cameras.
Dozens of last-minute additions to the budget also passed. The council approved $12.5 million to cover more Atlantic Park utility upgrades and construction of the entertainment venue. The money was shifted from other funds already programmed in the budget. The source of money will come from tourism tax dollars.
Stacy Parker, 757-222-5125, stacy.parker@pilotonline.com