Five-Year Forecast Gives First Look at Upcoming Budget Needs

The budget process for fiscal year 2025-26 officially kicked off on Nov. 26 during a joint meeting of the Virginia Beach City Council and School Board, as the City’s Department of Budget and Management Services presented the Five-Year Forecast. 

Compiling the best data available, the Five-Year Forecast document provides estimates of revenue from all major general revenue sources, including real estate tax, personal property tax and other taxes, as well as expected expenditures and information gathered from City departments and sources such as the Bureau of Labor Statistics and multiple agencies of the Commonwealth of Virginia. It gives a first look at the City’s overall financial position, so that policy discussions can begin. 

In December, council members will continue to review this information in preparation for a retreat planned for late January.  

Because revenue from the Commonwealth provides nearly half of the operating budget for Virginia Beach City Public Schools, the governor’s proposed budget also will be an important consideration for VBCPS. The Governor’s proposed budget is released in December. 

Next Steps in the Budget Process

Leading up to the public hearings for the City’s budget in April and final adoption in May, the budget process follows this timeline:

• February: The City Council and the public receive the annual report of real estate assessments for FY 2025-26, and the Department of Budget and Management Services uses it to update the school funding formula to provide to Virginia Beach City Public Schools. The superintendent will present to the School Board a proposed estimate of needs. VBCPS holds workshops and public hearings before their budget is adopted by the School Board.
• March: The Schools’ budget request is approved by the School Board in March, and the city manager presents the proposed operating budget of both the City and Schools 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: State Code requires the city manager to present a proposed operating budget by April 1 each year. City Council hears from individual department directors on their proposed budget. 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 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.

• View Five-Year Forecast
• Subscribe