Virginia Beach City Council Votes to Adopt Revised FY 2027 Budget

The Virginia Beach City Council adopted the revised FY 2026-27 budget and Capital Improvement Program (CIP) on May 12 by a vote of 11 to 0. 

The adopted budget fulfills the Council’s priorities to deliver equitable tax relief, strengthen support of the City of Virginia Beach workforce, and prioritize essential capital maintenance. 

The adopted operating budget includes a credit of 10.1% on personal property tax for a maximum of $80 per vehicle, based on assessed value. This tax credit will apply to each personal vehicle owned by a Virginia Beach resident.

The adopted budget includes a salary increase for all City of Virginia Beach positions of about 3.5% in July. Also, funding was set aside to be used in January 2027 for adjusting salaries to the market rate for positions that did not already receive an adjustment. In addition, sworn positions and some others will receive a 1.5% bonus (up to $1,500) during the fiscal year. 

The adopted FY 2026-27 net operating budget, including all funds for both the City of Virginia Beach and Virginia Beach City Public Schools (VBCPS), totals $2,886,575,513, representing a 3.36% increase over last year’s amended budget.    

Following the presentation of City Manager Patrick Duhaney’s proposed FY 2025-26 budget  to City Council on March 24, the Council sought information from City departments regarding operational needs. In addition, the Council received feedback from the community through two public hearings, interactive online resources, SpeakUpVB.com, email and social media.

Based on the input, the Council recommended changes in the operating budget, which were incorporated into the reconciled budget and did not use any additional local funds. 

These changes also include: 

• Youth sports and activities: Allocate $1,376,520 from the unallocated Revenue Sharing Formula Funds for one-time grants, neighborhood parks, g and to support the ITA Athletic Village and Preservation Area Plan. 
• Arts and Culture: Allocate the reserve of $425,427 of the amusement tax for additional contributions to the Virginia Symphony, Virginia Museum of Contemporary Art, Arts and Humanities Commission, Virginia Beach Surf and Rescue Museum, and additional funding for the Sustainability grant program within the Department of Cultural Affairs. 
• Other support: Allocate the budgeted reserve of $2.1 million for the regional grants as recommended by the Community Organization Grant (COG) committee. 

Changes in the Capital Improvement Program (CIP) include an approval of $1.5 million for improvements to the Virginia Beach Sportsplex and Field Hockey Complex; appropriation for additional African American community signs; establishment of a new project for design of the Kings Grant sidewalk; increase appropriations by $250,000 for improvements to Atlantic Avenue lighting; and increase appropriations for additional Oceanfront police cameras. 

Find more details about the budget adjustments made after the proposed budget and during reconciliation.  

The proposed budget is available at Budget.VirginiaBeach.gov, and the final approved budget will be posted around July 1, the beginning of the fiscal year.

Caption: Pie chart illustrating FY 2026-27 Adopted Operating Budget Total Estimated Appropriations. 13.7% Planning/Public Works/Public Utilities; 4.6% Parks & Recreation, Libraries, Aquarium & Cultural Affairs; 7.5% Human Services/Health/Housing; 7.5% Financial/General Government; 4.1% City Capital Projects; 14.1% Public Safety; 2.1% Convention & Visitors, Economic Development; 3.0% City General Fund and Flood Protection Debt Service; 43.3% Education.

• Budget