City Council will Focus on Capital Improvement Program at Winter Retreat

This month, while Virginia Beach families might be planning their budgets for the upcoming year and setting aside money for future home repairs or improvements, the Virginia Beach City Council is doing the same thing for the City, only on a long-term, larger scale. 

The City’s fiscal year runs from July 1 to June 30, and its budget has two parts: Operating and the Capital Improvement Program (CIP). The Operating Budget details spending needs for the upcoming fiscal year. The CIP is the City’s plan for future funding for large-scale projects, including constructing, maintaining and improving facilities and infrastructure such as schools, roadways, public buildings, parks and recreation facilities. 

To be included in the CIP, a project generally must cost at least $250,000 and be a major expenditure for construction, purchase of land and existing structures or technology improvements.  

• View Adopted FY25 Budget

Capital Improvement Program

The Capital Improvement Program spans six years to allow for appropriately estimating projects and their potential effects on the City’s Operating Budget. Funds are appropriated for the first year (Capital Budget) of the six-year plan. Years two through six are used for planning purposes only and are not formally adopted as appropriations by City Council.  

The CIP is a complex working document that City Council reviews annually to reflect changing priorities and funding opportunities. It is coordinated with City policies and plans as well as with the agencies and stakeholders of each of the projects. The goal is to establish the appropriate level of aesthetics and quality for each project at the lowest possible cost and lowest level of disruption to the community. 

Interact with a listing of all of the current CIP projects by costs, sections, districts and more on the CIP dashboard.

• CIP dashboard

FY 2025-26 Budget Process and Retreat 

The budget process for fiscal year 2025-26 officially kicked off in November with the presentation of the Five-Year Forecast which gives a first look at the City’s overall financial position, so that the City Council and the Virginia Beach City Public Schools (VBCPS) School Board can begin policy discussions. 

At the Winter Retreat planned for Jan. 27-28, council members will focus on developing a plan for staff to use to navigate challenges ahead for the CIP, which include project bids that continue to exceed estimates, accelerated timelines for projects and insufficient funding. City Council will work on determining priorities and how staff should focus their efforts with limited resources. The CIP challenges and outline for the retreat were presented to City Council by Kevin Chatellier, director of Budget and Management Services, on Oct. 22, 2024. Follow up presentations from each Capital Improvement section manager were provided in November and December to provide City Council and the public with additional information on all capital projects.  

The retreat will be open to the public, livestreamed on the City's website and Facebook page, cablecast live on VBTV via Cox channel 48 and Verizon channel 45, and posted to YouTube within 36 hours of the meeting’s conclusion.  

Next Steps in the FY 2025-26 Budget Process 

• February: The City Council and the public receive the annual report of real estate assessments for FY 2025-26 from the City Real Estate Assessor. The VBCPS superintendent will present to the School Board a proposed estimate of needs. VBCPS holds workshops and public hearings before its budget is adopted by the School Board. 
• March: The VBCPS budget request is approved by the School Board in March, and the city manager presents the combined proposed operating budget of both the City and VBCPS to City Council on March 25. The proposed budget is available for the residents to view at public libraries, City Hall, and online at budget.virginiabeach.gov. 
• April: City Council hears from individual department heads on their departmental budgets. Two public hearings provide residents an opportunity to comment on the proposed budget. 
• May: The reconciliation workshop is a week before the state-mandated deadline of May 15 for the budget to be adopted. This workshop is for the City Council to finalize the budget. This year the budget is scheduled to be adopted on May 13, 2025.  

Learn more by visiting budget.virginiabeach.gov. Watch the City Council meetings and be prepared to provide your input on the proposed budget in April. Subscribe now to get updates on the City’s budget process and how you can provide your input before major decisions are made.