Virginia Beach City Council Votes to Adopt Revised FY26 Budget

The Virginia Beach City Council adopted the revised FY 2025-26 Budget and Capital Improvement Program (CIP) on May 13 by a vote of 10 to 1. 

The total approved Operating Budget of $2.8 billion represents a 4.75% increase over last year’s budget.  

In response to community feedback, the proposed pleasure boat tax of $1.50 per $100 of assessed value was removed from the budget, and an annual registration fee, based on the size of the vessel, will be implemented instead. Revenue generated through this new fee will provide a sustainable funding source for future dredging needs. 

The adopted budget establishes compassionate billing to support expanding Emergency Medical Services and providing sustainable revenue for the Volunteer Rescue Squads. Virginia Beach EMS will begin billing health insurance plans for ambulance transport on July 1 or later, and it aims to reduce or avoid out-of-pocket expenses to patients. 

The administrative pre-work to initiate compassionate billing is underway and includes partnering with the third-party EMS billing company, Digitech Inc., establishing related policies, infrastructure and an application process for provider ID numbers and billing credentials. Funding in the new Cost Recovery Special Revenue Fund (SRF) will be equitably allocated between EMS and volunteer rescue squads using a proposed revenue sharing formula.   

Residents can continue to get updated information and read frequently asked questions about the program at the EMS Compassionate Billing page.  

Following the presentation of City Manager Patrick Duhaney’s proposed FY 2025-26 budget  to City Council on March 25, the Council held five workshops to hear from each department head 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. Using all of this information, the City Council recommended changes, which were incorporated into the reconciled budget. 

These changes also include: 

• A reduction of $10 million for the Rudee Loop Park project  
• An allowance for sworn fire department staff to maintain the previous 11 observed City holidays and three flexible holidays  
• An increase in the funding for additional placemaking signs for the City’s four remaining historically African American communities without signs  
• An increase in appropriations for the Woodstock Road sidewalk, Lookout Road sidewalk, enhancements to the Salem Village Park, Lynnhaven Cottage improvements, East Coast Surfing Championship (ECSC), Neptune Festival, a traveling replica of the Vietnam Veterans Memorial, portable bathrooms at the Lynnhaven Marina, VA250 Commission, Juneteenth celebrations, Virginia Symphony Orchestra, as well as increases to other regional grants 

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

The final approved budget will be posted at Budget.VirginiaBeach.gov around July 1.

Caption: Pie chart illustrating FY 2025-26 Adopted Operating Budget Total Estimated Appropriations. 13.3% Planning/Public Works/Public Utilities; 4.5% Parks & Recreation, Libraries, Aquarium & Cultural Affairs; 7.6% Human Services/Health/Housing; 8.2% Financial/General Government; 4.3% City Capital Projects; 13.6% Public Safety; 2.0% Convention & Visitors, Economic Development; 2.5% City General Fund and Flood Protection Debt Service; 44.0% Education.

• Budget