Chesapeake adopts $1.7 billion budget without real estate tax hike
CHESAPEAKE — City leaders this week approved an operating fiscal 2026 budget of $1.7 billion that grants city raises, implements the Greenbrier Area Plan and funds enhanced public safety needs and projects.
City Council voted unanimously Tuesday to adopt the budget, which will span July 1 to June 30, 2026, and includes $17 million in amendments made since the initial budget presentation in March.
The multi-year capital improvement plan allocates $217 million in fiscal 2026 — about $22 million less than what was initially presented due to council avoiding tax hikes. The CIP includes $47.8 million for police and fire facility replacement, $22 million for Greenbrier Area Plan implementation, and $11 million for site readiness program.
Leaders spent weeks considering a 2-cent increase on the city's real estate tax rate of $1.01 per $100 of assessed value to cover a host of staffing and equipment needs for the police and fire departments, which was met with pushback from residents. Among those needs was a second set of firefighting gear, police technology enhancements, additional staffing for Animal Services and fire rescue, medic and tanker trucks.
But council members ultimately agreed to generate about $5 million annually by redirecting an 8-cent mosquito control dedication to a new public safety dedication, funding utility projects only in the designated utility enterprise fund without general fund support, and using $500,000 that can be taken from the budget's bottom line.
That approach left about $200,000 of additional funds for another priority. At Tuesday's meeting, council members voted 6-1 on a request from council member Jeff Bunn to use the funding as a supplement for the victims witness protection program, carried out by the sheriff's office. Only council member Daniel Whitaker voted against it.
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Part of the series of budget votes also included a transfer of $4.9 million in surplus funds from the Greenbrier Tax Increment Financing District and $5.7 million of surplus funds from the South Norfolk Tax Increment Financing District fund balances to the city's general fund balance. Portions of tax revenue from property assessments within these special districts are earmarked specifically for projects there, primarily to spur economic development and improve infrastructure.
The Greenbrier TIF will see a $15 million allocation in the fiscal 2026 budget, while South Norfolk will receive $14 million.
The city will maintain its personal property tax rate of $4.08 per $100 of value.
Some fees and taxes, however, will increase. The hotel tax rate will increase by $1, bringing it up to $2 per night. The increased revenue generated will be dedicated to the city's conference center special revenue fund.
Additionally, all monthly water and sewer service charges and usage rates will increase by 2.9% on Jan. 1 following previous action taken by council.
The budget vote also included a redirection of a half percent of the meals tax to the city's lockbox.
The budget includes a $680.6 million transfer to Chesapeake Public Schools for its operating budget, including an additional $20.7 million budget request from CPS that wasn't included in the initial budget.
Council also opted not to fund a data analyst position requested by the fire department and EMS.
At Tuesday's meeting, several speakers made pleas for increased funding to various nonprofits and organizations, such as Meals on Wheels, Chesapeake Humane Society, ForKids and a career and community development program called 'Neighborhood.'
George Reed of the New Chesapeake Men for Progress pushed for the city to fund the construction of a convocation center that could be used for the city's high school graduations. He also pushed for more funding to mitigate flooding.
Vice Mayor John de Triquet addressed the crowd at the meeting, stating that council members have the flexibility to come back and amend the budget at future meetings. Council member Debbie Ritter said the public comment on the city's Human Services grant showed there may be 'duplication of efforts' in Chesapeake, and that the schools' system may be in a better position to fund some of the city's nonprofit organizations.
Natalie Anderson, 757-732-1133, natalie.anderson@virginiamedia.com
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