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Norfolk — After deep cuts to city government spending last year in response to the COVID-19 pandemic, next year’s budget looks to be, by and large, back on track in Norfolk.
There’s no tax rate increase in the budget proposed Tuesday by City Manager Chip Filer, but the city’s revenues and spending will grow anyway. That’s thanks mainly to rising home values that mean many people’s tax bills will go up and the expected rebound in restaurant dining, hotel stays and events — all of which dropped off sharply due to the pandemic.
One major new cost, and Filer’s top budget priority: across-the-board raises for city staff.
But when more libraries and recreation centers will reopen remains a major question mark. Filer said Tuesday that some could reopen as of July 1, but despite expected increases in revenue the city didn’t have the money to do them all immediately. A full plan has not yet been developed for how the remainder will be reopened.
The city’s general fund — basically the day-to-day operational budget — will grow to $923.5 million, roughly $40 million more than this year, according to city documents. That represents a substantial increase, about 4.5%, but officials said it was still less than pre-pandemic spending forecasts.
Filer told the City Council Tuesday that the moves to slash last year’s budget “set the stage for our recovery this year.” Of the $40 million that was cut last spring, a hefty chunk came from closing rec centers and libraries and laying off staff.
Filer has previously said there are no plans at the moment for any of the closures to be permanent, but had warned that the facilities would stay shuttered for at least the immediate future, saying the city won’t have the money to immediately reopen many of the facilities that remain closed.
Currently, eight recreation centers and six libraries are open in a limited capacity. But 17 rec centers, six libraries and three library-operated computer centers are closed for now.
The new budget would fund increased hours at the city’s flagship Slover Library, expanded aquatics and athletics operations, opening Campostella’s Richard Tucker Library when construction is finished this summer and reopening an unspecified number of additional facilities.
“Funds are not available to open all facilities for their regular hours,” Filer wrote.
And he didn’t have a concrete plan for that reopening Tuesday. He said he plans to develop one as the council considers and tweaks the budget over the next several weeks.
Despite lingering pandemic impacts and the continued closure of rec centers and libraries, the city will increase spending in several areas.
Raising city employees’ pay to be able to “attract and retain talent” was Filer’s “top budget priority,” he wrote in his budget overview to the council.
Most employees will get a 3% pay boost, but raises will be even higher for several groups of public safety employees:
- 911 operators will get an average 6.7% raise, paid for by eliminating five positions, Filer said;
- Sheriff’s deputies will get an average of 5% raise; and
- Police will get an average 8% raise by basically moving every officer up the existing scale one rung, which Filer said would immediately make Norfolk police salaries the region’s highest, instead of among the lowest as they are now.
Overall, the proposed raises would equate to about $8.9 million more in city spending on employee pay.
Norfolk’s real estate assessor expects the value of taxable property in the city to go up 3.25% this year. That means even though the tax rate of $1.25 on every $100 of assessed value will stay the same, the average property owner’s bill will go up.
An increase in tax revenues also means a corresponding increase in schools funding, per the city’s funding formula for Norfolk Public Schools.
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The city is planning $133.7 million in schools funding — roughly $8.7 million more than the current year and $4.9 million more than last year’s pre-COVID budget.
Filer’s budget would give the school district $9 million for schools maintenance — not quite the $16 million the schools had requested.
He also included the school district’s plan to spend a separate $17.7 million in surplus funds on capital projects. However, Filer said the council should first demand a more detailed plan from the school district on how it plans to spend that leftover money and tens of millions more in capital spending.
Fees for water, wastewater and stormwater will go up slightly, but no other user fees would increase under the budget proposal.
The manager also floated an updated Capital Improvement Plan, where the city lists the major upcoming infrastructure projects. Included for this year are:
- $7 million to start construction on a water-management park known as the the Blue/Greenway on the Tidewater Drive side of Tidewater Gardens, which would ultimately cost $17 million over the next 5 years;
- A nearly $6.5 million beach replenishment project for four spots in Ocean View and Willoughby Spit;
- $7.6 million to improve drainage in several neighborhoods, including Talbot Hall, Glenrock and East Ocean View; and
- $4 million to “design a combination recreation and library facility” at the Norfolk Fitness and Wellness Center site in Wards Corner. There’s no money in the budget to build any such facility, but Budget Director Greg Patrick said the $4 million would let the city “go through the design process with the community to go from concept to closer to reality and figure out what a combo library/rec center looks like.”
Several budget work sessions and public hearings are scheduled for the City Council throughout April and early May. The council is expected to vote on a finalized budget on May 11.
Ryan Murphy, 757-739-8582, ryan.murphy@pilotonline.com