The Ripple Effect: Fourth Quarter 2024 Update on the Flood Protection Program and a Stormwater Overview

The departments of Public Works and Budget Management Services delivered a report to City Council on Dec. 3 covering the progress on flood protection projects, a financing update and details on a possible utility fee increase. 
 
In case you missed it, here’s what you need to know: 

Projects Continue to Progress

The Flood Protection Program’s (FPP) current projects saw significant progress from the first quarter of 2024 to now, including:  

• A majority of the projects in design moved on to the next phase of implementation.
• The Church Point/Thoroughgood best management practice and drainage improvements project is now in the preliminary engineering phase. 
• Construction bids for the First Colonial Road/Oceana Boulevard drainage improvements project came in less than the engineer’s estimate. 
• Construction is complete for the Old Forge Road and Red Lion Road drainage improvements project. 

Program spending is currently at $95.2 million, an increase of $12 million since last quarter. The majority of that spending, more than $74 million, comes from the Windsor Woods, Princess Anne Plaza/The Lakes master project, which includes the Bow Creek Stormwater Park Section I and the Windsor Woods Tide Gate projects, both under construction.  

The costs for the Flood Protection Program projects have increased since the last quarter and the total program estimated cost is more than $1 billion. Four projects have had schedule delays since the last quarter. Some factors that contribute to cost increases and schedule delays include: 

• Environmental permitting delays 
• Land swap for federal property 
• Time-of-year restrictions  
• Continued supply chain shortages  
• Rising cost of materials and labor 

The Flood Protection Program fiscal year 2025 funding of $821.5 million comes from several sources with the majority from the $567.5 million bonds authorized in the November 2021 referendum. There is a gap of approximately $224 million between the fiscal year 2025 programmed funding and the current total program cost. To close that gap, the City will continue to seek state and federal grants, phase project implementation, and reassess or reduce the scope of projects. As an example, by reassessing and reducing the scope of two Flood Protection Program projects in design, the estimated future cost savings to the City will be $14 million.

Possible Fee Increases

The monthly stormwater utility fee that residents pay is used for maintenance and day-to-day operations that minimize flooding and improve water quality in our area, including mosquito control and street sweeping. With an expected $5 million to $7 million gap in the stormwater fund over the next several years, a utility fee increase will likely be proposed. Two options:  

• A 5.9-cent increase, which would raise bills by $1.79 per month or $21.54 annually for a single-family home. This option would cover current costs, but it doesn't plan for future needs or upgrades.
• An 8.9-cent increase, raising the bill by $2.71 per month or $32.49 annually for a single-family home. This option not only covers current costs but also sets aside funds for future needs and upgrades. 

A stormwater utility rate increase would affect multi-family home and commercial property monthly bills depending on the amount of impervious area on the property (surfaces like driveways and roofs that allow little to no water penetration). City Council will hear more on the needs to fund stormwater operations when it meets in March.  

The Virginia Beach Flood Protection Program — The Ripple Effect — is a comprehensive 10-year plan to address recurrent flooding in Virginia Beach. In November 2021, Virginia Beach voters overwhelmingly supported a resiliency package for several key flood protection initiatives to include drainage improvements, tide gates, pump stations and flood barriers throughout the city. The projects are led by Public Works with support from a community oversight board for transparency and accountability. Learn more at VirginiaBeach.gov/RippleEffect.