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VIRGINIA BEACH — Residents could pay more for water, sewer and trash services in Virginia Beach if the city manager’s proposed budget is adopted this spring.
The City Council learned more about what it will take to run the city in the coming fiscal year at a meeting Tuesday. The $2.5 billion proposed operating budget has grown by 3.4% as compared with the previous year, said Kevin Chatellier, director of budget and management services.
The school system’s operating budget is 46% of the total. Transfers between the city’s and school system’s operating budgets as well as internal service funds, such as city garage charges, are subtracted from the total gross budget of $3.47 billion.
Chatellier said his team’s first priority in drafting the operating budget was to maintain baseline services as much as possible.
No more federal stimulus funds are coming, and the “great resignation” of employees is still affecting the city, he said.
“This has been a difficult budget for us,“ said City Manager Patrick Duhaney. “Our revenues are flatlining and cost of services are increasing dramatically.”
The city anticipates reductions in revenue from federal sources. General sales tax revenues also are expected to trend downward as consumer confidence is falling and the elevated spending habits during the pandemic could taper off, according to the budget documents.
On the upside, Duhaney doesn’t want to raise the real estate tax rate, and if you’re a city employee, a 5% raise could be heading your way. The proposed raises will cost $25 million.
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The proposed budget includes hiring more homeless prevention staff, police officers and legal staff in the commonwealth’s attorney’s office to assist with the review of police body worn cameras.
Forty new paid employees are budgeted for Emergency Medical Services, which has seen a decline in its volunteer workforce as a result of the pandemic. The department is lacking enough resources to staff ambulances efficiently, leading to an increase in response times.
The proposal would eliminate library fines and late fees. But adult memberships to the city’s recreation centers, which cost $110 a year, would increase by $2.
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To help maintain utility services, Duhaney proposes an increase in fees over the next several years. They will generate roughly $6 million more in revenue.
Combined with the recent jump in real estate assessments, an average homeowner could shell out an additional $360 a year, Chatellier said, which includes an increase in the waste management fee by $30 per year, water service by $18 and sewer service by $9 more in fiscal year 2024.
In addition to the operating budget, the city’s total proposed Capital Improvement Program budget through fiscal year 2029 is $5.1 billion, including appropriations to date. Project costs in some cases are exceeding 40% of the budgeted amount due to inflation, making it more challenging for the city to choose which ones should move ahead, Chatellier said.
Money is programmed in the proposed CIP over a six-year period for new fire apparatus, the creation of bike paths and preserving open space, among other projects.
Several City Council members were quick to say they want to find a way to provide tax relief. Vice Mayor Rosemary Wilson requested more information on how shaving a few cents off of the real estate tax rate will affect the bottom line.
Public hearings on the proposed budget will be held April 19 and 25. The budget is scheduled to be adopted May 9.
Stacy Parker, 757-222-5125, stacy.parker@pilotonline.com