City Manager’s Proposed FY 2026-27 Budget Presented to City Council

Virginia Beach City Manager Patrick Duhaney presented a proposed FY 2026-27 budget on March 24 that provides tax relief to residents while increasing City employee salaries and maintaining current service levels, as a result of feedback from City Council at its winter retreat in January. 

City Council placed top priority on providing tax relief, investing in infrastructure needs, attracting and maintaining a qualified City workforce, and maintaining City assets. The proposed budget seeks to follow these directions, while balancing sustainability and taxpayer affordability.  

Operating Budget 

The proposed operating budget includes a one-time credit of 10.1% on personal property tax for a maximum of $80 per vehicle, based on assessed value. This tax credit would apply to each personal vehicle owned by a Virginia Beach resident and would apply to more residents than a reduction in real estate tax would. About 495,000 personal vehicles are registered in Virginia Beach, while 113,535 residents own real estate.

In addition, the proposed tax relief would benefit households that rent their housing. These households are more often housing cost-burdened, which is defined as spending more than 30% of income on housing. 

The proposed budget includes a salary increase for all City positions of about 3.5% in July. An additional increase for non-sworn employees is proposed in January 2027, because non-sworn positions did not receive a market adjustment similar to what public safety employees received in the current fiscal year.  

A total of 25.48 positions were reduced between the City and Virginia Beach Public Schools (VBCPS). Overall, City positions increased by 27.27, while VBCPS positions decreased by 52.75, primarily from federal grants that have ended. As in prior years, each position added by the City is offset by either a reduction in staffing from another department, or a dedicated funding source outside of the City’s General Fund.  

The proposed FY 2026-27 net operating budget including all funds for both the City of Virginia Beach and VBCPS totals $2,883,974,039, representing a 3.27% increase over last year’s amended budget.

Caption: Pie chart illustrating FY 2026-27 Proposed Operating Budget Total Estimated Appropriations. 13.9% Planning/Public Works/Public Utilities; 4.6% Parks & Recreation, Libraries, Aquarium & Cultural Affairs; 7.6% Human Services/Health/Housing; 7.6% Financial/General Government; 4.2% City Capital Projects; 14.3% Public Safety; 1.7% City General Fund and Flood Protection Debt Service; 2.1% Convention & Visitors, Economic Development; 43.9% Education.

Capital Improvement Program 

The proposed Capital Improvement Program (CIP), the City’s complex six-year plan for funding large-scale projects, maintains all previously fully funded roads projects, funds a new Princess Anne High School, additional public safety equipment, fire trucks, and includes funding for a schematic design of updates to the Virginia Aquarium.  

Following the recommendations of the Atlantic Avenue Taskforce, the proposed CIP includes a reduced scope of $35 million for the Atlantic Avenue improvements.  

Highlights of the six-year CIP, totaling $5.3 billion, include: 

• Funds Princess Anne High School construction in 2028 at $330.4 million.
• Fully funds Great Neck Recreation Center renovations.
• Adds funds for design costs for Bayside and Princess Anne recreation centers renovations.
• Fully funds Holland Road Phase I, Independence/Edwin intersection, Woodstock and Lookout sidewalks.
• Leverages state funding for Interstate 264 and the next phases of Laskin Road improvements.
• Continues funding of Virginia Beach Courthouse modernization, the VB Trail, Indian River Road Safety Improvements.
• Enhances funding for maintenance of City facilities.
• Adds to Resort Area parking and elevator repair at Town Center garages.
• Adds funds for stormwater and flood protection, including the mega bundle, which groups seven large-scale flood protection sub-projects in three neighborhoods that experienced severe flooding during Hurricane Matthew in 2016.

The full proposed resource management plan — consisting of the executive summary, operating budget and CIP — is available for residents to view at public libraries, the Clerk’s Office in City Hall and online at VirginiaBeach.gov/ProposedBudget. 

The proposed budget will not be finalized until May 12. Before that, departments will answer questions on their proposed budget from City Council, residents can provide input online or in person at public hearings on April 15 and April 21, and a reconciliation workshop will be held on May 5. 

Share Your Thoughts at Two Public Hearings and Online  

Residents are encouraged to provide feedback about the proposed budget. Several options are available. If you have a specific budget question, send it to budget@vbgov.com. 

The City Council will hold two public hearings in April to gather resident input on the budget. Both meetings will be held at 6 p.m. and allow for in-person and virtual audiences. 

• Wednesday, April 15 – Virginia Beach Convention Center – April 15 WebEx
• Tuesday, April 21 – Council Chamber, City Hall, Bldg. 1 – April 21 WebEx

Residents wishing to make comments during the hearings must register with the City Clerk’s Office by calling 757-385-4303 prior to 5 p.m. on the day of the hearing. If participating virtually, please also register via WebEx.

Input related to the budget also may be submitted via SpeakUpVB.com, now through 11:59 p.m. on May 5.

All input will be provided to City Council. 

Next Steps in the FY 2026-27 Budget Process 

• April: City Council will ask questions of City departments on their departmental budgets during workshops on April 7, April 14, April 21 and April 28. Two public hearings on April 15 and April 21 provide residents an opportunity to comment on the proposed budget. 

• May: The reconciliation workshop is May 5, 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, and City Council votes to adopt it on May 12.  

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.

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