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HomeMy WebLinkAboutMAY 12, 2026 SPECIAL FORMAL SESSION MINUTES (BUDGET) O I� V VIRGINL4 BEACH CITY COUNCIL Virginia Beach, Virginia MAY 12,2026 Mayor Robert M. Dyer called to order the CITY COUNCIL SPECLAL FORMAL SESSION of the VIRGINL4 BEACH CITY COUNCIL in City Council Chamber, City Hall, on Tuesday, May 12, 2026, at 6:00 P.M. Council Members Present: Michael E Berlucchi, Stacy Cummings (participated via WebEx from Scottsdale, Arizona due to attending grandson's graduation), Mayor Robert M. Dyer, Barbara M. Henley, David Hutcheson, Cal "Cash" Jackson-Green, Robert W. "Worth" Remick, Dr. Amelia N. Ross-Hammond, Jennifer Rouse, Joashua E `Joash" Schulman and Rosemary Wilson Council Members Absent.• None 2 MAYOR'S CALL FOR SPECIAL SESSION ITEM#78315 "HONORABLE MEMBERS OF CITY COUNCIL In accordance with the Virginia Beach City Code Section 2-21, and by the authority vested in me as Mayor of the City of Virginia Beach, I hereby call for a SPECIAL FORMAL SESSION of the VIRGINIA BEACH CITY COUNCIL Thursday,May 12,2026, at 6:00 P.M. City Council Chamber Building I-2"d Floor 2401 Courthouse Drive The purpose of this SPECIAL FORMAL SESSION is to allow City Council to consider the adoption of the FY2026-27 RESOURCE MANAGEMENT PLAN (Operating Budget, Capital Improvement Budget and related ordinances) as listed in the public agenda. If you wish to make comments during the meeting,please follow the two-step process provided below: 1. Register for the WebEx here. 2. Register with the City Clerk's Office by calling 757-385-4303 prior to 5:00 p.m. on May 12, 2026 This Special Formal Session will be broadcast on Cable TV, vir7-iniabeach.gov and Facebook Live. Citizens are encouraged to submit their comments to the City Council prior to the Special Formal Session via email at CityCouncilnae vbgov.com. Sincerely, Robert M. Dyer Mayor" Enclosure cc: City Manager City Attorney City Clerk Deputy City Managers FOL4 Officer Communications Office May 12, 2026 1A BEA �r✓ City of Virginia Beach U �iZ 2 OF OUR NA�N VirginiaBeach.gov MUNICIPAL CENTER,BUILDING 1 2401 COURTHOUSE DRIVE Robert M. "Bobby" Dyer VIRGINIA BEACH,VA23456-9000 MAYOR OFFICE:(757)385-4581 CELL.(757)749-4659 BDYER&.VBGOV.COM May 7, 2026 HONORABLE MEMBERS OF CITY COUNCIL In accordance with the Virginia Beach City Code Section 2-21, and by the authority vested in me as Mayor of the City of Virginia Beach, I hereby call for a SPECIAL FORMAL SESSION of the VIRGINIA BEACH CITY COUNCIL: Tuesday, May 12, 2026, at 6:00 P.M. City Council Chamber Building 1 —2Ind Floor 2401 Courthouse Drive The purpose of this SPECIAL FORMAL SESSION is to allow City Council to consider the adoption of the FY2026-27 RESOURCE MANAGEMENT PLAN (Operating Budget, Capital Improvement Budget and related ordinances) as listed in the public agenda. If you wish to make comments during the meeting, please follow the two-step process provided below: 1. Register for the WebEx here. 2. Register with the City Clerk's Office by calling 757-385-4303 prior to 5:00 p.m. on May 12, 2026. This Special Formal Session will be broadcast on Cable TV, virginiabeach.gov and Facebook Live. Citizens are encouraged to submit their comments to the City Council prior to the Special Formal Session via email at CityCouncil(cDvbgov.com. Sincerely, Robert M. Dyer Mayor cc: City Manager City Attorney City Clerk Deputy City Managers FOIA Officer Communications Office p�r11A BF,gc U City of Virginia Beach o r= OF BUR NAt�� `Q Stacy Cummings VirginiaBeach.gov District 8 MUNICIPAL CENTER,BUILDING 1 2401 COURTHOUSE DRIVE VIRGINIA BEACH,VA 23456-9000 CELL:(757)629-8691 STCUMM INGSOVBGOV.COM May 8, 2026 HONORABLE MAYOR MEMBERS OF CITY COUNCIL Dear Colleagues, Please be advised that I will be participating virtually in the Special Formal Session scheduled for Tuesday, May 12, 2026, at 6:00 p.m., as I will be out of town attending my grandson's college graduation. Sincerely, .ee .- -4�-2- -I- , Stacy Cummings Councilman, City of Virginia Beach 3 ITEM—IIA.I FY2026-27 OPERATING BUDGET ORDINANCES I RESOL UTION ITEM#78316 The following registered to speak. Holli Martir, 4165 Rainbow Drive, Phone: 339-5325, spoke in OPPOSITION to proposed tax increases Upon motion by Vice Mayor Wilson, seconded by Council Member Ross-Hammond, City Council ADOPTED,BY CONSENT, Ordinance to APPROPRIATE$3,961,944,885 consisting of$724,902,416 in inter fund transfers, $350,466,956 for internal service funds, and$2,886,575,513 in operations for Fiscal Year beginning July 1, 2026 and ending June 30, 2027 Voting: 11 - 0 Council Members Voting Aye: Michael F. Berlucchi, Stacy Cummings,Mayor Robert M.Dyer,Barbara M.Henley, David Hutcheson, Cal "Cash" Jackson-Green, Robert W. "Worth" Remick, Dr. Amelia N. Ross-Hammond, Jennifer Rouse, Joashua F. "Joash" Schulman and Rosemary Wilson Council Members Absent: None COUNCIL MEMBERS REMICKAND ROSS-HAMMOND FILED DISCLOSURE LETTERS REGARDING THE FY 2026-27 OPERATING BUDGET COUNCIL MEMBERS SCHULAIANAND ROUSE FILED DISCLOSURE LETTERS REGARDING THE FY 2026-27 OPERATING BUDGET AND CAPITAL IMPROVEMENT PROGRAM May 12, 2026 1 AN ORDINANCE MAKING APPROPRIATIONS FOR THE FISCAL YEAR 2 BEGINNING JULY 1, 2026 AND ENDING JUNE 30, 2027 FOR 3 OPERATIONS 4 WHEREAS, the City Manager has heretofore submitted an Annual Budget for the City for the fiscal year 5 beginning July 1, 2024, and ending June 30, 2025, and it is necessary to appropriate sufficient funds to cover said 6 budget. 7 8 NOW,THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH,VIRGINIA THAT: 9 10 Sec.1. The amounts named aggregating $3,961,944,885 consisting of $724,902,416 in inter-fund transfers, 11 $350,466,956 for internal service funds, and $2,886,575,513 in operations, are hereby appropriated subject to the 12 conditions hereinafter set forth for the use of departments, and designated funds of the City government, and for 13 the purposes hereinafter mentioned, as set forth in the Annual Operating Budget, which is hereby incorporated by 14 reference,for the fiscal year beginning July 1,20252026 and ending June 30,2922027(hereinafter,the"Fiscal Year"), 15 a summary of which is attached to this ordinance as "Attachment A—Appropriations." The City Council elects to 16 fund the Virginia Beach City Public Schools by lump sum appropriation. 17 18 Sec.2. In accordance with Section 5.04 of the City Charter, Estimated Revenue in Support of Appropriations is set 19 forth in said Annual Operating Budget,with a summary of Estimated Revenue in Support of Appropriations attached 20 to this ordinance as"Attachment B—Revenues." 21 22 Sec.3. With the exception of the funds under the control of the School Board, specifically the funds numbered 23 115,135,201,202,203,204,210,211,212,213,214,215,650,651,652,653,750,751,and 752(hereinafter referred 24 to as "School Board Funds"), the total number of full-time permanent positions shall be the maximum number of 25 positions authorized for the various departments of the City during the Fiscal Year, except for changes or additions 26 authorized by the Council or as hereinafter provided.The City Manager may from time to time increase or decrease 27 the number of part-time or temporary positions provided the aggregate amount expended for such services shall 28 not exceed the respective appropriations made therefore. The City Manager is further authorized to make such 29 rearrangements of positions within and between the departments as may best meet the needs and interests of the 30 City, including changes necessary to implement the employee transition program. 31 32 Sec.4. To improve the effectiveness and efficiencies of the government in service delivery,the City Council hereby 33 authorizes the City Manager or his designee to transfer appropriated funds and existing positions throughout the 34 Fiscal Year as may be necessary to implement organizational adjustments that have been authorized by the City 35 Council. Unless otherwise directed by the City Council, such organizational adjustments shall be implemented on 36 such date or dates as the City Manager determines, in his discretion, to be necessary to guarantee a smooth and 37 orderly transition of existing organizational functions. The City Manager shall make a report each year to the City 38 Council identifying the status and progress of any such organizational adjustments. 39 40 Sec.S. All current and delinquent collections of local taxes shall be credited to the General Fund, Special Service 41 District Funds, Tax Increment Financing Fund or any fund to which City Council has, by ordinance, dedicated a tax 42 levy. 43 44 Sec.6. All balances of the appropriations payable out of each fund of the City Treasury at the close of the Fiscal 45 Year, unless otherwise provided for,are hereby declared to be lapsed into the fund balance of the respective funds, 46 except all appropriations to School Board Funds derived from local public sources,which shall lapse and revert to 47 the Fund Balance of the General Fund,and may be used for the payment of the appropriations that may be made in 48 the appropriation ordinance for the fiscal year beginning July 1, 20252026 . Prior to the expenditure of any sums 49 that have lapsed to the fund balance of any fund, an appropriation by the City Council shall be required. 50 51 Sec.7. All balances of appropriations in each fund which support authorized obligations or are encumbered at the 52 close of the business for the Fiscal Year,are hereby declared to be re-appropriated into the fiscal year beginning July 53 1, 20252026,and estimated revenues adjusted accordingly. 54 55 Sec.8. All balances of appropriations and position authorizations attributable to grants or other similar funding 56 mechanism from state or federal sources and trust or gift funds, whose period of expenditure extends beyond the 57 fiscal year ending on June 30,20252026,are hereby declared to be re-appropriated and re-authorized into the Fiscal 58 Year, and estimated revenues adjusted accordingly. The close-out of any grant or similar funding mechanism shall 59 account for all expenditures in such grant, and provided there is any remaining balance in the grant,the portion of 60 the balance attributable to local sources shall revert to the General Fund, special revenue fund, or enterprise fund 61 that provided the local contribution. 62 63 Sec.9. No department or agency for which appropriations are made under the provisions of this ordinance shall 64 exceed the amount of such appropriations except with the consent and approval of the City Council first being 65 obtained. It is expressly provided that the restrictions with respect to the expenditure of the funds appropriated 66 shall apply only to the totals for each Appropriation Unit included in this ordinance and does not apply to Inter-fund 67 Transfers. 68 69 Sec. 10. The City Manager or the Director of Budget and Management Services is hereby authorized to approve 70 transfers of appropriations in an amount up to$250,000 between any Appropriation Units included in this ordinance 71 through the accrual period.The City Manager shall make a monthly report to the City Council of all transfers between 72 $25,000 and $250,000. In addition, the City Manager may transfer, in amounts necessary, appropriations from all 73 Reserves for Contingencies except Reserve for Contingencies—Regular,within the intent of the Reserve as approved 74 by City Council. 75 76 Sec. 11. The City Manager or the Director of Budget and Management Services is hereby authorized to establish and 77 administer budgeting within Appropriation Units consistent with best management practices, reporting 78 requirements, and the programs and services adopted by the City Council. Consistent with best management 79 practices, the City utilizes a modified accrual system of accounting. Revenues are considered available when 80 collectible either during the current period or after the end of the current period, but in time to pay year-end 81 liabilities. Expenditures are recognized when a transaction or event is expected to draw upon current spendable 82 resources rather than future resources. In practical effect,the modified accrual system allows a window of 45 days 83 wherein the City may accrue back to the immediately preceding fiscal year revenues and expenditures. The City 84 Manager or the Director of Budget and Management Services is further authorized to establish administrative 85 directives to provide additional management oversight and control to ensure the integrity of the City's budget. 86 87 Sec. 12. The City Manager or the Director of Budget and Management Services is hereby authorized to change the 88 Estimated Revenues included in this ordinance to reflect expected collections. If the Estimated Revenue in support 89 of an Operating Appropriation Unit declines,the City Manager or the Director of Budget and Management Services 90 is hereby authorized to reduce, subject to any other provision of law, those appropriations to equal the decline in 91 Estimated Revenue. The City Manager shall give prior notice to the City Council of any reduction to total 92 appropriations exceeding $250,000. The notice to City Council shall identify the basis and amount of the 93 appropriation reduction and the Appropriation Units affected.The accounting records of the City will be maintained 94 in a manner that the total of Estimated Revenue is equal to the total of the Appropriation Units for each of the City's 95 funds. The City Manager or the Director of Budget and Management Services is hereby authorized to transfer any 96 excess appropriations to the Reserve for Contingencies after all anticipated expenditures for which those funds were 97 appropriated have been incurred. Nothing in this section shall be construed as authorizing any reduction to be made 98 in the amount appropriated in this ordinance for the payment of interest or principal on the bonded debt of the City 99 Government. 100 101 Sec. 13. The Department of Economic Development is hereby authorized to pay an amount up to $100,000 from 102 their FY'^�o 2026-27 Operating Budget to the City of Virginia Beach Development Authority,for the purpose of 103 implementing a District Improvement Plan(DIP), also referred to as Fagade Improvement Grants. 104 Sec. 14. Allowances made from the appropriations made in this ordinance by any or all of the City departments, 105 bureaus,or agencies,to any of their officers and employees for expenses on account of the use by such officers and 106 employees of their personal automobiles in the discharge of their official duties shall follow the Internal Revenue 107 Service standard mileage rates used to calculate the deductible costs of operating an automobile for business, 108 charitable, medical or moving purposes. 109 110 Sec. 15. In the event of an emergency and under emergency circumstances wherein the City Council cannot 111 reasonably hold a meeting, the City Manager is authorized to transfer and expend appropriated sums from any 112 budget account to ensure that the emergency is handled as efficiently and expeditiously as possible. Immediately 113 following the expenditure of funds under this provision,and as soon as the City Council can reasonably meet under 114 the existing circumstances, the City Manager shall notify the City Council of the reason for such action, how funds 115 were expended,and present to the City Council for adoption an emergency appropriations ordinance that sets forth 116 what measures are required to ensure that funds are forthwith restored to the appropriate accounts and that the 117 budget is balanced at the end of the fiscal year in which the emergency expenditures occurred. 118 119 An emergency is defined for the purposes of this provision as an event that could not have been reasonably foreseen 120 at the time of the adoption of the budget,and in which(i)an immediate threat to the public health,safety or welfare 121 is involved,such as clean-up after a hurricane, and/or(ii)immediate action is required to protect or preserve public 122 properties. 123 124 Sec. 16. All travel expense accounts shall be submitted on forms approved by the Director of Finance and according 125 to regulations approved by the City Council. Each account shall show the dates expenses were incurred or paid; 126 number of miles traveled;method of travel,hotel expenses;meals;and incidental expenses.The Director of Finance 127 is specifically directed to withhold the issuance of checks in the event expense accounts are submitted for "lump- 128 sum"amounts. 129 130 Sec. 17. A salary increase totaling approximately 3.95 3_5%en the pay date containing july 1, 2025 in July 2026 is 131 hereby provided to both part-time and full-time City employees, including appointees within the Constitutional 132 Offices and the five Constitutional Officers.Salary increases for full-time City sweFn employees on a step plan are to 133 receive a one-step increase (approximately 3%) and a 0.5% general increase. Employees at step 16 will receive a 134 0.5%general increase and a bonus. Salary increases for non swum non-step plan City employees shall be provided 135 through a 3 A-3_5%general increase. 136 137 ° 138 both paFt tame and full time appointees withiR Genstitutienal Qffir=es. SalaFy increases fOF full tome SWOM 139 appointees an a step plan aFe tG Feceive a one step increase(approximately 3%).SalaFy*RGFeases for non step plan 140 appointees shall be. ..ided rhF gh a 0.5%g Fal it 141 142 ° 143 GeRstitutmonal040eeFS 144 145 Sec.2018.A$16,000,009$7,500,000 reserve is established within the General Fund for additional pay increases to 146 adjust pay ranges of non-sworn classifications identified to be less competitive than the market. Increases will be 147 effective January 2027. 148 . Funding 149 from this reserve can be allocated as necessary between Departments to adjust salaries and prevent compensation 150 adjustments from negatively impacting the delivery of services. 151 152 Sec.Z119. An amount of up to $10,000,000 in attrition savings is hereby used to balance the Fiscal Year 20 153 2026-27 Operating Budget. To accomplish this purpose, the City Manager or his designee is hereby authorized to 154 transfer savings in salary or fringe benefit accounts among General Fund supported departments up to$10,000,000, 155 notwithstanding other budgetary controls outlined in this ordinance. 156 157 Sec.2-220.To ensure proper allocation of health insurance,the City Manager is hereby authorized to transfer health 158 insurance between departments and funds,in any amount notwithstanding other budgetary controls outlined in the 159 ordinance up to the total amount budgeted for health insurance, to ensure health insurance cost align with actual 160 expenditure. 161 162 Sec.21.The entire amount appropriated for health insurance in Fiscal Year 2025-26 shall be transferred to the health 163 insurance fund to ensure long term sustainability. 164 165 Sec.2422. In Fiscal Year'^�6 2026-27,to further improve the effectiveness and efficiency of the government in 166 service delivery,the City Council hereby authorizes the City Manager to implement any organizational adjustments 167 not otherwise set out within this budget document that may be necessary to carry out the following initiatives: 168 a. The departments throughout the City to improve existing technology services and applications and to 169 streamline the implementation of technology applications. 170 b. To ensure that public infrastructure is maintained, renovated, or constructed as authorized through 171 established appropriations in the Capital Improvement Program. 172 173 ;yeaFS twe and three 175 176 Sec.22523.The City Manager is hereby authorized to enter into a sponsorship agreement for"Project Cajae Prodigal 177 Son" in preparations for a SeptembeF 2026 event through existing appropriations within the Tourism dveFt 178 Investment Program.The sponsorship agreement will be developed by the City Manager's Office and approved by 179 the City Attorney. 180 181 Sec."24. Violation of this ordinance may result in disciplinary action by the City Manager against the person or 182 persons responsible for the management of the Appropriation Unit in which the violation occurred. 183 184 Sec. -1725. Section 21 of this ordinance is effective June 30, 2026. All other sections of this ordinance shall be 185 effective on July 1, 20252026. 186 187 Sec. U26. If any part of this ordinance is for any reason declared to be unconstitutional or invalid, such decision 188 shall not affect the validity of the remaining parts of this ordinance. Requires an affirmative vote by a majority of all of the members of City Council. Adopted by the Council of the City of Virginia Beach,Virginia, on the/2 day of May, 2026. APPROVED AS TO CONTENT: APPROVED AS TO LEGAL SUFFICIENCY: "Budget an Management Services :DorneyZOffice� City of Virginia Beach,Virginia Fiscal Year 2026-2027 Budget Ordinance Attachment A-Appropriations FY 2026-2027 100 GENERAL FUND Agriculture 1,121,829 Benefits Administration 735,538 Board of Equalization 2,386 Budget and Management Services 1,635,582 Circuit Court 1,619,979 City Attorney 6,512,477 City Auditor 1,096 627 City Clerk 841,427 City Manager 3,481,557 City Real Estate Assessor 4,467,462 City Treasurer 9,276,181 Clerk of the Circuit Court 5,158,410 Commissioner of the Revenue 7,799,676 Commonwealth's Attorney 15,243,485 Communications Office 5,049,003 Community Organization Grants 750,000 Convention and Visitors Bureau 11,769,341 Cultural Affairs 6,130,458 Debt Service 60,855,263 Economic Development 4,343,068 Emergency Communications and Citizen Services 13,229,947 Emergency Management 2,344,717 Emergency Medical Services 27,556,489 Employee Special Benefits 12,090,402 Finance 7,155,060 Fire 93,408,788 General District Court 613,753 Health 4,409,267 Housing and Neighborhood Preservation 9,854,422 Human Resources 11,326,870 Human Services 157,916,497 Independent Financial Services 204,929 Information Technology 27,076,835 Juvenile and Domestic Relations District Court 168,811 Juvenile Probation 1,255,981 Leases 2,855,265 Library 22,903,761 Magistrates 39,097 Municipal Council 947,481 Office of Performance and Accountability 658,726 Parks and Recreation 47,442,954 Planning 18,386,455 Police 150,312,823 Public Works 121,895,599 Regional Participation 11,573,997 Reserve for Contingencies 19,078,948 Revenue Reimbursements 1,610,000 Sheriff and Corrections 76,986,811 Transfer to Other Funds 620,820,307 Vehicle Replacements 7,500,000 Virginia Aquarium 18,038,063 FY 2026-2027 Voter Registration&Elections 3,346,817 Fund 100 Appropriation Totals 1,640,899,621 115 SCHOOL OPERATING FUND Debt Service 50,071,611 Public Education 1,022,752,184 Transfer to Other Funds 22,727,913 Fund 115 Appropriation Totals 1,095,551,708 150 FLOOD PROTECTION REFERENDUM Debt Service 26,281,335 Reserve for Contingencies 7,918,250 Transfer to Other Funds 4,336,301 Fund 150 Appropriation Totals 38,535,886 190 GENERAL DEBT FUND Transfer to Other Funds 3,644,389 Fund 190 Appropriation Totals 3,644,389 201 GREEN RUN COLLEGIATE CHARTER SOP Public Education 5,062,922 Fund 201 Appropriation Totals 5,062,922 203 INSTRUCTIONAL TECHNOLOGY SOP Public Education 1,500,000 Fund 203 Appropriation Totals 1,500,000 204 ATHLETICS SOP Public Education 7,137,188 Fund 204 Appropriation Totals 7,137,188 210 EQUIPMENT REPLACEMENT SRF Public Education 110,688 Fund 210 Appropriation Totals 110,688 211 VENDING OPERATIONS SRF Public Education 250,000 Fund 211 Appropriation Totals 250,000 212 CELL TOWER TECH SRF Public Education 1,500,000 Fund 212 Appropriation Totals 1,500,000 213 CAFETERIAS SRF Public Education 50,154,437 Fund 213 Appropriation Totals 50,154,437 214 GRANTS SRF Public Education 103,308,858 Fund 214 Appropriation Totals 103,308,858 215 TEXTBOOKS SRF Public Education 9,134,181 Fund 215 Appropriation Totals 9,134,181 221 AGRICULTURE RESERVE PROGRAM SRF Agriculture 269,938 Debt Service 7,807,821 Reserve for Contingencies 509,927 FY 2026-2027 Transfer to Other Funds 1,490,000 Fund 221 Appropriation Totals 10,077,686 222 LAW LIBRARY SRF Library 273,390 Fund 222 Appropriation Totals 273,390 223 OPEN SPACE & PARKS SRF Debt Service 515,383 Parks and Recreation 582,231 Reserve for Contingencies 1,660,160 Transfer to Other Funds 500,000 Fund 223 Appropriation Totals 3,257,774 224 PARKS AND RECREATION SRF Debt Service 3,329,193 Parks and Recreation 25,795,879 Public Works 4,305,082 Reserve for Contingencies 3,197,161 Transfer to Other Funds 1,274,000 Fund 224 Appropriation Totals 37,901,315 230 COMM ATTY FORFEITED ASSETS SRF Commonwealth's Attorney 100,000 Fund 230 Appropriation Totals 100,000 234 EMS COST RECOVERY Emergency Medical Services 14,479,648 Transfer to Other Funds 420,352 Fund 234 Appropriation Totals 14,900,000 240 TOURISM ADVERTISING PROGRAM SRF Convention and Visitors Bureau 19,798,851 Reserve for Contingencies 63,197 Transfer to Other Funds 557,083 Fund 240 Appropriation Totals 20,419,131 241 TOURISM INVESTMENT PROGRAM SRF Convention and Visitors Bureau 14,217,933 Cultural Affairs 520,500 Debt Service 26,586,882 Emergency Medical Services 1,215 132 Parks and Recreation 1,390,265 Public Works 6,616,452 Regional Participation 1,488,661 Reserve for Contingencies 7,047,153 Transfer to Other Funds 5,153,410 Fund 241 Appropriation Totals 64,236,388 242 MAJOR PROJECTS FUND Reserve for Contingencies 9,533,804 Transfer to Other Funds 12,310,787 Fund 242 Appropriation Totals 21,844,591 243 ATLANTIC PARK DEVELOPMENT AGREEMENT Reserve for Contingencies 4,937,470 Fund 243 Appropriation Totals 4,937,470 FY 2026-2027 250 CBD SOUTH TIF SRF Debt Service 3,311,083 Reserve for Contingencies 1000 000 Transfer to Other Funds 7,751,888 Fund 250 Appropriation Totals 12,062,971 251 TOWN CENTER SSD SRF Economic Development 1,010,000 Parks and Recreation 168,110 Public Works 2,667,000 Reserve for Contingencies 121,723 Transfer to Other Funds 674,566 Fund 251 Appropriation Totals 4,641,399 252 SANDBRIDGE SSD SRF Public Works 907,501 Reserve for Contingencies 5,578,071 Transfer to Other Funds 400,000 Fund 252 Appropriation Totals 6,885,572 255 Pembroke Special Services District Reserve for Contingencies 477,159 Fund 255 Appropriation Totals 477,159 260 FEDERAL SECTION 8 PROGRAM SRF Housing and Neighborhood Preservation 31,808,662 Fund 260 Appropriation Totals 31,808,662 261 STATE RENTAL ASSISTANCE PROGRAM SRF Housing and Neighborhood Preservation 1,590,946 Reserve for Contingencies 5,678 Fund 261 Appropriation Totals 1,596,624 270 CONSOLIDATED GRANTS SRF Commonwealth's Attorney 586,169 Emergency Communications and Citizen Services 5,000 Emergency Management 102,914 Emergency Medical Services 388,000 Fire 2,572,966 Housing and Neighborhood Preservation 1,844,959 Human Services 4,588,155 Public Works 20,000 Reserve for Contingencies 1,789,981 Sheriff and Corrections 167,042 Transfer to Other Funds 300,000 Fund 270 Appropriation Totals 12,365,186 271 EMERGENCY FEMA GRANT SRF Fire 500,000 Fund 271 Appropriation Totals 500,000 272 FEDERAL HOUSING ASSISTANCE GRANT SRF Housing and Neighborhood Preservation 1,104,828 Reserve for Contingencies 7,874 Fund 272 Appropriation Totals 1,112,702 273 COMMUNITY DEVELOPMENT GRANT SRF Housing and Neighborhood Preservation 2,461,485 Reserve for Contingencies -155,011 Fund 273 Appropriation Totals 2,306,474 FY 2026-2027 310 OLD DONATION DREDGING SSD SRF Reserve for Contingencies 95,924 Fund 310 Appropriation Totals 95,924 311 BAYVILLE CREEK DREDGING SSD SRF Reserve for Contingencies 103,789 Fund 311 Appropriation Totals 103,789 312 SHADOWLAWN SSD SRF Reserve for Contingencies 46,515 Fund 312 Appropriation Totals 46,515 313 CHESOPEIAN COLONY DREDGING SSD SRF Transfer to Other Funds 1,131,000 Fund 313 Appropriation Totals 1,131,000 314 HARBOUR POINT DREDGING SSD SRF Reserve for Contingencies 35,526 Fund 314 Appropriation Totals 35,526 315 GILLS COVE DREDGING SSD SRF Reserve for Contingencies 52,461 Fund 315 Appropriation Totals 52,461 316 HURDS COVE DREDGING SSD SRF Reserve for Contingencies 301,742 Fund 316 Appropriation Totals 301,742 317 SCHILLING POINT DREDGING SSD SRF Transfer to Other Funds 85,000 Fund 317 Appropriation Totals 85,000 400 GENERAL GOVERNMENT CIP FUND Building Capital Projects 27,291,715 Coastal Capital Projects 5,683,470 Economic and Tourism Development Capital Projects 5,520,237 Information Technology Capital Projects 10,475,914 Parks and Recreation Capital Projects 9,642,479 Roadways Capital Projects 24,994,132 Fund 400 Appropriation Totals 83,607,947 410 WATER & SEWER CIP FUND Sewer Utility Capital Projects 4,995,467 Water Utility Capital Projects 3,004,533 Fund 410 Appropriation Totals 8,000,000 420 STORMWATER CIP FUND Stormwater Capital Projects 18,265,898 Fund 420 Appropriation Totals 18,265,898 430 FLOOD PROTECTION CIP FUND Flood Protection Capital Projects 4,336,301 Fund 430 Appropriation Totals 4,336,301 480 SCHOOLS CAPITAL PROJECTS FUND School Capital Projects 5,000,000 Fund 480 Appropriation Totals 5,000,000 FY 2026-2027 510 WATER AND SEWER ENTERPRISE FUND Debt Service 23,868,396 Public Utilities 118,711,870 Reserve for Contingencies 3,473,716 Transfer to Other Funds 17,245,498 Fund 510 Appropriation Totals 163,299,480 520 STORMWATER UTILITY ENTERPRISE FUND Debt Service 14,317,441 Public Works 20,566,434 Reserve for Contingencies 2,659,036 Transfer to Other Funds 20,156,501 Fund 520 Appropriation Totals 57,699,412 530 WASTE MANAGEMENT ENTERPRISE FUND Public Works 47,575,596 Reserve for Contingencies 667,322 Transfer to Other Funds 2,863,649 Fund 530 Appropriation Totals 51,106,567 540 PARKING ENTERPRISE FUND Public Works 7,952,524 Reserve for Contingencies 43,606 Transfer to Other Funds 1,059,772 Fund 540 Appropriation Totals 9,055,902 600 CITY GARAGE ISF Public Works 22,012,685 Reserve for Contingencies 244,476 Fund 600 Appropriation Totals 22,257,161 601 FUELS ISF Public Works 8,766,202 Fund 601 Appropriation Totals 8,766,202 602 RISK MANAGEMENT ISF Finance 20,415,279 Reserve for Contingencies 27,319 Fund 602 Appropriation Totals 20,442,598 603 LANDSCAPING ISF Parks and Recreation 5,852,820 Reserve for Contingencies 165,185 Fund 603 Appropriation Totals 6,018,005 606 INFORMATION TECHNOLOGY ISF Information Technology 37,809,531 Reserve for Contingencies 62,150 Fund 606 Appropriation Totals 37,871,681 650 RISK MANAGEMENT ISF - SCHOOLS Public Education 16,658,726 Fund 650 Appropriation Totals 16,658,726 651 FLEXIBLE BENEFITS FORFEITURE ISF Public Education 100,000 Fund 651 Appropriation Totals 100,000 FY 2026-2027 652 HEALTH INSURANCE ISF Public Education 146,060,969 Fund 652 Appropriation Totals 146,060,969 653 HEALTH INSURANCE ISF - CITY Public Education 92,291,614 Fund 653 Appropriation Totals 92,291,614 801 CITY BEAUTIFICATION FUND Parks and Recreation 50,000 Fund 801 Appropriation Totals 50,000 811 MAYOR'S COMMITTE TRUST FUND Municipal Council 15,000 Fund 811 Appropriation Totals 15,000 812 OYSTER HERITAGE TRUST FUND Public Works 38,000 Fund 812 Appropriation Totals 38,000 814 PARKS AND RECREATION GIFT FUND Parks and Recreation 84,000 Fund 814 Appropriation Totals 84,000 817 SOCIAL SERVICES GIFT FUND Human Services 46,710 Fund 817 Appropriation Totals 46,710 818 VIRGINIA BEACH LIBRARY GIFT FUND Library 112,000 Fund 818 Appropriation Totals 112,000 822 TREE MITIGATION Parks and Recreation 414,383 Fund 822 Appropriation Totals 414,383 Total Budget Appropriations 3,961,944,885 Less Internal Service Funds 350,466,956 Less Interfund Transfers 724,902,416 NET BUDGET APPROPRIATIONS 2,886,575,513 City of Virginia Beach,Virginia Fiscal Year2026-2027 Budget Ordinance Attachment B-Revenue FY 2026-2027 100 GENERAL FUND Admission Tax 2,168,091 Automobile License Tax 10,299,928 Bank Stock Capital 4,666,586 Boat License Fee 2,359,470 Business License Tax 71,447,567 Charges for Services 64,524,646 Cigarette Tax 5,373,860 City Tax on Deeds and Wills 8,597,200 Federal Revenue 27,491,793 Fines and Forfeitures 5,170,698 General Sales Tax 101,263,558 Hotel Tax 11,946,740 Miscellaneous Revenue 8,546,408 Permits Fees and Regulatory Licenses 9,004,270 Personal Property Tax 215,911,140 Real Estate Tax 760,083,532 Restaurant Meal Tax 67,490,249 Specific Fund Reserves 2,413,001 State Revenue 173,781,681 Transfer In 13,618,939 Use of Money and Property 32,642,549 Utility Tax 42,097,715 Fund 100 Revenue Totals 1,640,899,621 115 SCHOOL OPERATING FUND Federal Revenue 15,494,107 State Revenue 515,077,422 Transfer In 559,522,641 Use of Money and Property 5,457,538 Fund 115 Revenue Totals 1,095,551,708 150 FLOOD PROTECTION REFERENDUM Real Estate Tax 35,035,886 Use of Money and Property 3,500,000 Fund 150 Revenue Totals 38,535,886 190 GENERAL DEBT FUND Specific Fund Reserves 3,644,389 Fund 190 Revenue Totals 3,644,389 201 GREEN RUN COLLEGIATE CHARTER SOP Transfer In 5,062,922 Fund 201 Revenue Totals 5,062,922 203 INSTRUCTIONAL TECHNOLOGY SOP Specific Fund Reserves 589,334 Use of Money and Property 910,666 Fund 203 Revenue Totals 1,500,000 204 ATHLETICS SOP Transfer In 5,937,588 FY 2026-2027 204 ATHLETICS SOP Use of Money and Property 1,199,600 Fund 204 Revenue Totals 7,137,188 210 EQUIPMENT REPLACEMENT SRF Specific Fund Reserves 110,688 Fund 210 Revenue Totals 110,688 211 VENDING OPERATIONS SRF Charges for Services 200,000 Specific Fund Reserves 50,000 Fund 211 Revenue Totals 250,000 212 CELL TOWER TECH SRF Specific Fund Reserves 500,000 Use of Money and Property 1,000,000 Fund 212 Revenue Totals 1,500,000 213 CAFETERIAS SRF Charges for Services 12,200 000 Federal Revenue 31,681,966 Specific Fund Reserves 4,767,471 State Revenue 1,005,000 Use of Money and Property 500,000 Fund 213 Revenue Totals 50,154,437 214 GRANTS SRF Federal Revenue 55,581,841 Miscellaneous Revenue 2,179,428 Specific Fund Reserves 10,000,000 State Revenue 29,140,010 Transfer In 6,407,579 Fund 214 Revenue Totals 103,308,858 215 TEXTBOOKS SRF Miscellaneous Revenue 18,121 Specific Fund Reserves 3,321,161 State Revenue 5,694,899 Use of Money and Property 100,000 Fund 215 Revenue Totals 9,134,181 221 AGRICULTURE RESERVE PROGRAM SRF Real Estate Tax 5,127,203 Transfer In 3,644,389 Use of Money and Property 1,306,094 Fund 221 Revenue Totals 10,077,686 222 LAW LIBRARY SRF Charges for Services 273,390 Fund 222 Revenue Totals 273,390 223 OPEN SPACE & PARKS SRF Restaurant Meal Tax 3,257,774 Fund 223 Revenue Totals 3,257,774 224 PARKS AND RECREATION SRF Charges for Services 7,815,463 Real Estate Tax 29,626,687 FY 2026-2027 224 PARKS AND RECREATION SRF Use of Money and Property 459,165 Fund 224 Revenue Totals 37,901,315 230 COMM ATTY FORFEITED ASSETS SRF Specific Fund Reserves 100,000 Fund 230 Revenue Totals 100,000 234 EMS COST RECOVERY Charges for Services 14,900,000 Fund 234 Revenue Totals 14,900,000 240 TOURISM ADVERTISING PROGRAM SRF Charges for Services 4,000 Hotel Tax 8,615,161 Restaurant Meal Tax 9,581,690 Specific Fund Reserves 1,210 180 Use of Money and Property 1,008,100 Fund 240 Revenue Totals 20,419,131 241 TOURISM INVESTMENT PROGRAM SRF Admission Tax 9,697,365 Cigarette Tax 383,847 Hotel Tax 27,637,107 Miscellaneous Revenue 2,088,240 Permits Fees and Regulatory Licenses 151,778 Restaurant Meal Tax 20,313,182 Use of Money and Property 3,964,869 Fund 241 Revenue Totals 64,236,388 242 MAJOR PROJECTS FUND Real Estate Tax 2,563,601 Restaurant Meal Tax 14,755,802 Transfer In 4,525,188 Fund 242 Revenue Totals 21,844,591 243 ATLANTIC PARK DEVELOPMENT AGREEMENT General Sales Tax 2,533,278 Real Estate Tax 315,952 Transfer In 2,088,240 Fund 243 Revenue Totals 4,937,470 250 CBD SOUTH TIF SRF Real Estate Tax 11,312,971 Use of Money and Property 750,000 Fund 250 Revenue Totals 12,062,971 251 TOWN CENTER SSD SRF Charges for Services 194,300 Fines and Forfeitures 302,610 Real Estate Tax 2,864,489 Transfer In 1,150,000 Use of Money and Property 130,000 Fund 251 Revenue Totals 4,641,399 252 SANDBRIDGE SSD SRF Hotel Tax 6,110,040 Real Estate Tax 222,532 FY 2026-2027 252 SANDBRIDGE SSD SRF Use of Money and Property 553,000 Fund 252 Revenue Totals 6,885,572 255 Pembroke Special Services District Real Estate Tax 477,159 Fund 255 Revenue Totals 477,159 260 FEDERAL SECTION 8 PROGRAM SRF Charges for Services 2,100,000 Federal Revenue 29,423,450 Specific Fund Reserves 285,212 Fund 260 Revenue Totals 31,808,662 261 STATE RENTAL ASSISTANCE PROGRAM SRF State Revenue 1,596,624 Fund 261 Revenue Totals 1,596,624 270 CONSOLIDATED GRANTS SRF Charges for Services 454,180 Federal Revenue 4,540,037 State Revenue 6,292,185 Transfer In 1,078,784 Fund 270 Revenue Totals 12,365,186 271 EMERGENCY FEMA GRANT SRF Federal Revenue 500,000 Fund 271 Revenue Totals 500,000 272 FEDERAL HOUSING ASSISTANCE GRANT SRF Federal Revenue 1,092,702 Miscellaneous Revenue 20,000 Fund 272 Revenue Totals 1,112,702 273 COMMUNITY DEVELOPMENT GRANT SRF Federal Revenue 2,156,474 Miscellaneous Revenue 150,000 Fund 273 Revenue Totals 2,306,474 310 OLD DONATION DREDGING SSD SRF Real Estate Tax 95,924 Fund 310 Revenue Totals 95,924 311 BAYVILLE CREEK DREDGING SSD SRF Real Estate Tax 103,789 Fund 311 Revenue Totals 103,789 312 SHADOWLAWN SSD SRF Real Estate Tax 46,515 Fund 312 Revenue Totals 46,515 313 CHESOPEIAN COLONY DREDGING SSD SRF Real Estate Tax 274,894 Specific Fund Reserves 856,106 Fund 313 Revenue Totals 1,131,000 314 HARBOUR POINT DREDGING SSD SRF Real Estate Tax 35,526 Fund 314 Revenue Totals 35,526 FY 2026-2027 315 GILLS COVE DREDGING SSD SRF Real Estate Tax 52,461 Fund 315 Revenue Totals 52,461 316 HURDS COVE DREDGING SSD SRF Real Estate Tax 301,742 Fund 316 Revenue Totals 301,742 317 SCHILLING POINT DREDGING SSD SRF Real Estate Tax 78,595 Specific Fund Reserves 6,405 Fund 317 Revenue Totals 85,000 400 GENERAL GOVERNMENT CIP FUND Transfer In 83,607,947 Fund 400 Revenue Totals 83,607,947 410 WATER&SEWER CIP FUND Transfer In 8,000,000 Fund 410 Revenue Totals 8,000,000 420 STORMWATER CIP FUND Transfer In 18,265,898 Fund 420 Revenue Totals 18,265,898 430 FLOOD PROTECTION CIP FUND Transfer In 4,336,301 Fund 430 Revenue Totals 4,336,301 480 SCHOOLS CAPITAL PROJECTS FUND Transfer In 5,000,000 Fund 480 Revenue Totals 5,000,000 510 WATER AND SEWER ENTERPRISE FUND Charges for Services 154,645,660 Miscellaneous Revenue 3,474,539 Transfer In 2,559,160 Use of Money and Property 2,620,121 Fund 510 Revenue Totals 163,299,480 520 STORMWATER UTILITY ENTERPRISE FUND Charges for Services 55,389,412 Miscellaneous Revenue 10,000 Use of Money and Property 2,300,000 Fund 520 Revenue Totals 57,699,412 530 WASTE MANAGEMENT ENTERPRISE FUND Charges for Services 46,681,227 Miscellaneous Revenue 500,000 Specific Fund Reserves 3,050,340 State Revenue 100,000 Use of Money and Property 775,000 Fund 530 Revenue Totals 51,106,567 540 PARKING ENTERPRISE FUND Charges for Services 7,350,000 Fines and Forfeitures 600,000 Permits Fees and Regulatory Licenses 112,000 Specific Fund Reserves 176,706 FY 2026-2027 540 PARKING ENTERPRISE FUND Transfer In 96,840 Use of Money and Property 720,356 Fund 540 Revenue Totals 9,055,902 600 CITY GARAGE ISF Charges for Services 21,480 781 Miscellaneous Revenue 170,000 Specific Fund Reserves 150,000 Use of Money and Property 456,380 Fund 600 Revenue Totals 22,257,161 601 FUELS ISF Charges for Services 7,196,202 Specific Fund Reserves 1,500,000 Use of Money and Property 70,000 Fund 601 Revenue Totals 8,766,202 602 RISK MANAGEMENT ISF Charges for Services 17,019,839 Specific Fund Reserves 1,422,759 Use of Money and Property 2,000,000 Fund 602 Revenue Totals 20,442,598 603 LANDSCAPING ISF Charges for Services 6,018,005 Fund 603 Revenue Totals 6,018,005 606 INFORMATION TECHNOLOGY ISF Charges for Services 37,871,681 Fund 606 Revenue Totals 37,871,681 650 RISK MANAGEMENT ISF-SCHOOLS Charges for Services 8,995,919 Specific Fund Reserves 7,662,807 Fund 650 Revenue Totals 16,658,726 651 FLEXIBLE BENEFITS FORFEITURE ISF Specific Fund Reserves 100,000 Fund 651 Revenue Totals 100,000 652 HEALTH INSURANCE ISF Charges for Services 140,060,969 Specific Fund Reserves 6,000,000 Fund 652 Revenue Totals 146,060,969 653 HEALTH INSURANCE ISF-CITY Charges for Services 84,883,510 Specific Fund Reserves 6,345,750 Use of Money and Property 1,062,354 Fund 653 Revenue Totals 92,291,614 801 CITY BEAUTIFICATION FUND Charges for Services 50,000 Fund 801 Revenue Totals 50,000 811 MAYOR'S COMMITTE TRUST FUND Miscellaneous Revenue 15,000 Fund 811 Revenue Totals 15,000 FY 2026-2027 812 OYSTER HERITAGE TRUST FUND Miscellaneous Revenue 38,000 Fund 812 Revenue Totals 38,000 814 PARKS AND RECREATION GIFT FUND Miscellaneous Revenue 84,000 Fund 814 Revenue Totals 84,000 817 SOCIAL SERVICES GIFT FUND Miscellaneous Revenue 23,760 Specific Fund Reserves 22,950 Fund 817 Revenue Totals 46,710 818 VIRGINIA BEACH LIBRARY GIFT FUND Miscellaneous Revenue 112,000 Fund 818 Revenue Totals 112,000 822 TREE MITIGATION Charges for Services 414,383 Fund 822 Revenue Totals 414,383 Total Budget Revenues 3,961,944,885 Less Internal Service Funds 350,466,956 Less Interfund Transfers 724,902,416 NET BUDGET REVENUES 2,886,575,513 G1�1A BCl FA City of Virginia Such f A C7 Y 2 OF OUR NpT�N VBgovcom ROBERT W."WORTH"REMICK CELL:(757)840-5855 COUNCIL MEMBER EMAIL:WRemick(&vbaov.com DISTRICT 6 May 12, 2026 File No.0101798 Mrs. Amanda Barnes City Clerk Municipal Center Virginia Beach, Virginia 23456 Re: Disclosure Pursuant to Virginia Code § 2.2-3115(I) Dear Mrs. Barnes: Pursuant to the Virginia Conflict of Interests Act, Sections 2.2-3115(I), Code of Virginia, I make the following declarations: 1. I am executing this written disclosure regarding the City Council's consideration of the FY 2026-27 Operating Budget. 2. The FY 2026-27 Operating Budget includes funding for various leases wherein the City is the tenant. One or more landlords for such leases have used Colliers International as a real estate services provider. 3. 1 have a personal interest in Colliers International Virginia, LLC because I am an employee of the firm, and its address is 150 West Main Street, Suite 1100, Norfolk,Virginia 23510. 4. The City Attorney's Office has advised me that although I have a personal interest in this transaction, because I do not personally provide services to the various landlords, the Act provides that I may participate in the Council's discussion and vote on this transaction,upon disclosure of this interest. 5. 1 hereby disclose the facts above and declare that I am able to participate in this transaction fairly, objectively, and in the public interest. 2401 COURTHOUSE DRIVE,SUITE 2116,VIRGINIA BEACH,VIRGINIA 23456 Mrs. Amanda Barnes -2- May 12, 2026 Re: Disclosure Pursuant to Virginia Code § 2.2-3115(I) I respectfully request that you record this declaration in the official records of the City Council. Thank you for your assistance in this matter. Sincerely, Worth kemick Councilmember RWR/RRI G IA-$FAc'! U City of Virgini a S cach * � U 2 2 94S 5 eF' OF OUR NA'�oN VB90V-Mn Dr.Amelia Ross-Hammond CELL:(757)840-0735 COUNCIL MEMBER EMAIL:arosshammond(@vbaov.com DISTRICT 4 May 12, 2026 File No.0101796 Mrs. Amanda Barnes City Clerk Municipal Center Virginia Beach, Virginia 23456 Re: Disclosure Regarding the Virginia African American Cultural Center Dear Mrs. Barnes: I make the following declaration: 1. I am executing this written disclosure regarding the City Council's vote on the operating budget for FY26-27. 2. The budget includes funding for the Virginia African American Cultural Center (VAACC)through regional grants. I am the Founder and Chairman of the VAACC. I do not receive a salary or other compensation from the VAACC. 3. The City Attorney has advised me that the State and Local Government Conflict of Interests Act provides that, because I do not receive compensation from the VAACC, I do not have a"personal interest" in the VAACC, and therefore the Act places no restriction on my ability to participate in the City Council's discussion and vote on the budget. I nevertheless wish to make this public disclosure. Accordingly, I respectfully request that you record this declaration in the official records of the City Council. Thank you for your assistance and cooperation in this matter. Sincerely, Dr. Amelia Ross-Hammond Councilmember ARH/RRI 2401 COURTHOUSE DRIVE,SUITE 2116,VIRGINIA BEACH,VIRGINIA 23456 C IA-B 4c 04 City of Virginia Beach tz i 00- 0UR NANO �''1�V.COIIi JENNIFER.ROUSE CELL:(757)840-1821 COUNCIL MEMBER EMAIL:Lvrouselowbaov.c DISTRICT 10 May 12, 2026 In Reply Refer to 0101794 Mrs. Amanda Barnes City Clerk Municipal Center Virginia Beach, Virginia 23456 Re: Disclosure Pursuant to Conflict of Interests Act § 2.2-3115(H) Dear Mrs. Barnes: Pursuant to the State and Local Government Conflict of Interests Act, I make the following declaration: 1. I am executing this written disclosure regarding the City Council's vote on the FY 2026-27 Operating Budget and Capital Improvement Program. 2. The FY 2026-27 Operating Budget includes funding for educational programming and operations at the Joint Use Library and at the Advanced Technology Center (ATC), and those are projects for which the City partners with Tidewater Community College(TCC). 3. 1 am employed by TCC and therefore have a personal interest in TCC. TCC's campus is located at 1700 College Crescent, Virginia Beach,VA 23453. 4. 1 am a member of a group---employees of TCC—and the members of the group are affected by this transaction. I am able to participate in the Council's consideration of the budget fairly, objectively,and in the public interest. Accordingly, I respectfully request that you record this declaration in the official records of City Council. Thank you for your assistance. 7ifely, er V. Rouse ilmember JVR/RRI 2401 COURTHOUSE DRIVE.SUITE 2116.VIRGINIA BEACH.VIRGINIA 23456 4 ITEM—HA.2 FY2026-27 OPERATING BUDGET ORDINANCES/RESOL UTION ITEM#78317 Upon motion by Vice Mayor Wilson, seconded by Council Member Ross-Hammond, City Council ADOPTED,BY CONSENT, Ordinance to ESTABLISH the Tax Levy on Real Estate for FY2027 Voting: 11 - 0 Council Members Voting Aye: Michael F.Berlucchi, Stacy Cummings,Mayor Robert M.Dyer,Barbara M.Henley, David Hutcheson, Cal "Cash" Jackson-Green, Robert W. "Worth" Remick, Dr. Amelia N. Ross-Hammond, Jennifer Rouse, Joashua F. "Joash" Schulman and Rosemary Wilson Council Members Absent: None May 12, 2026 1 AN ORDINANCE ESTABLISHING THE TAX LEVY ON REAL ESTATE FOR 2 FISCAL YEAR 2027 3 BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH,VIRGINIA: 4 5 Sec. 1. Amount of Levy on Real Estate. 6 There shall be levied and collected for fiscal year 2026 2027 taxes for general purposes on all real estate, 7 including all separate classifications of real estate set forth in the Code of Virginia,not exempt from taxation and not 8 otherwise provided for in this ordinance, at the rate ninety-seven cents($0.97)on each one hundred dollars($100) 9 of assessed valuation thereof.The real property tax rate that has been prescribed in this section shall be applied on 10 the basis of one hundred percentum of the fair market value of such real property, except for public service real 11 property,which shall be on the basis as provided in Section 58.1-2604 of the Code of Virginia. 12 13 Sec.2. Amount of Levy on "Certified Storm Water Management Developments and Property," "Certified Solar 14 Energy Recycling Equipment, Facilities or Devices" Classified as Real Estate, and "Environmental 15 Restoration Sites,"Real Estate Improved by Erosion Controls,and Certain Wetlands and Riparian Buffers. 16 In accordance with Sections 58.1-3660(A),58.1-3660.1,58.1-3661,58.1-3664,58.1-3665 and 58.1-3666 of 17 the Code of Virginia, there shall be levied and collected for general purposes for fiscal year 2926 2027,taxes on all 18 real estate (a) certified by the Department of Environmental Quality as "Certified Storm Water Management 19 Developments and Property," (b) certified as provided by Section 58.1-3661 of the Code of Virginia as "Certified 20 Solar Energy Equipment, Facilities or Devices," or"Certified Recycling Equipment, Facilities or Devices," (c) defined 21 by Section 58.1-3664 of the Code of Virginia as an "Environmental Restoration Site,"(d)improved to control erosion 22 as defined by§ 58.1-3665 of the Code of Virginia, or(e) qualifying as wetlands and riparian buffers as described by 23 § 58.1-3666 of the Code of Virginia, not exempt from taxation, at a rate of ninety-seven cents($0.97) on each one 24 hundred dollars of assessed valuation thereof. The real property tax rates imposed in this section shall be applied 25 on the basis of one hundred percentum of fair market value of such real property except for public service property, 26 which shall be on the basis as provided in Section 58.1-2604 of the Code of Virginia. 27 28 Sec.3. Amount of Levy on Real Estate Within the Sandbridge Special Service District. 29 There shall be levied and collected for fiscal year24262027,taxes for the special purpose of providing beach 30 and shoreline restoration and management at Sandbridge on all real estate within the Sandbridge Special Service 31 District, not exempt from taxation, at the rate of one cent($0.01) on each one hundred dollars ($100) of assessed 32 value thereof. This real estate tax rate shall be in addition to the real estate tax rate set forth in Section 1 of this 33 ordinance. For real property that qualifies for Land Use Assessment, pursuant to Division 2 of Chapter 35 of the City 34 Code, or Exemption, or Freeze for Elderly and Disabled Persons, pursuant to Division 3 of Chapter 35 of the City 35 Code,this real estate tax rate shall be applied in the same manner as the real estate tax rate set forth in Section 1 of 36 this ordinance.The real estate tax rate imposed herein shall be applied on the basis of one hundred percentum of 37 the fair market value of such real property except for public service real property, which shall be on the basis as 38 provided in Section 58.1-2604 of the Code of Virginia. 39 40 Sec.4. Amount of Levy on Real Estate Within the Town Center Special Service District. 41 For the special purpose of operating and maintaining the parking garage and providing enhanced services 42 for the plaza and public spaces within the boundaries of the service district at the Town Center, as well as other 43 additional services authorized by § 15.2-2403 of the Code of Virginia, there shall be levied and collected for fiscal 44 year 2426-2 227, taxes on all real estate within the Town Center Special Service District, not exempt from taxation, 45 at the rate of forty-five cents($0.45)on each one hundred dollars($100) of assessed value thereof.This real estate 46 tax rate shall be in addition to the real estate tax set forth in Section 1 of this ordinance. For real property that 47 qualifies for Land Use Assessment,pursuant to Division 2 of Chapter 35 of the City Code,or Exemption or Freeze for 48 Elderly and Disabled Persons, pursuant to Division 3 of Chapter 35 of the City Code,this real estate tax rate shall be 49 applied in the same manner as the real estate tax rate set forth in Section 1 of this ordinance. The real estate tax 50 rate imposed herein shall be applied on the basis of one hundred percentum of the fair market value of such real 51 property,except for public service real property,which shall be on the basis as provided in Section 58.1-2604 of the 52 Code of Virginia. 53 54 Sec.S. Amount of Levy on"Energy-Efficient Buildings". 55 In accordance with Section 58.1-3221.2 of the Code of Virginia and any relevant section of the City Code, 56 there shall be levied and collected for general purposes for the fiscal year 2026 2027, taxes on all real estate that 57 has been classified as an energy efficient building, not exempt from taxation, at a rate eighty-two cents ($0.82) on 58 each one hundred dollars of assessed valuation thereof.The real property tax rate imposed in this section shall be 59 applied on the basis of one hundred percentum of fair market value of such real property except for public service 60 property,which shall be on the basis as provided in Section 58.1-2604 of the Code of Virginia. 61 62 Sec.6. Amount of Levy on Properties Listed in the Virginia Landmarks Register. 63 In accordance with Section 58.1-3221.5 of the Code of Virginia and any relevant section of the City Code, 64 there shall be levied and collected for general purposes for the fiscal year 2026 2027, taxes on buildings that are 65 individually listed on the Virginia Landmarks Register, not including the real estate or land on which the building is 66 located, so long as the building is maintained in a condition such that it retains the characteristics for which it was 67 listed on the Virginia Landmarks Register at a rate fifty cents ($0.50) on each one hundred dollars of assessed 68 valuation thereof. The real property tax rate imposed in this section shall be applied on the basis of one hundred 69 percentum of fair market value of such real property except for public service property,which shall be on the basis 70 as provided by Section 58.1-2604 of the Code of Virginia. 71 72 Sec.7. Amount of Levy on Real Estate Within the Various Dredging Special Service Districts. 73 There shall be levied and collected for fiscal year 2026 2027, taxes for the special purpose of providing 74 neighborhood channel dredging of creeks and rivers to maintain existing uses on all real estate within each special 75 service district listed below: 76 a. Old Donation Special Service District,not exempt from taxation,at the rate of eighteen and four-tenths 77 cents($0.184)on each one hundred dollars($100)of assessed value thereof. 78 b. Bayville Creek Special Service District, not exempt from taxation, at the rate of forty-seven and two- 79 tenths cents($0.472)on each one hundred dollars($100)of assessed value thereof. 80 c. Shadowlawn Special Service District, not exempt from taxation, at the rate of fifteen and ninety-four 81 hundredths cents($0.1594)on each one hundred dollars($100)of assessed value thereof. 82 d. Chesopeian Special Service District, not exempt from taxation, at the rate of twenty-nine and thirteen 83 hundredths cents($0.2913)on each one hundred dollars($100)of assessed value thereof. 84 e. Harbour Point Special Service District, not exempt from taxation,at the rate of twelve cents($0.12)on 85 each one hundred dollars($100)of assessed value thereof. 86 f. Gills Cove Special Service District, not exempt from taxation, at the rate sixteen cents($0.16) on each 87 one hundred dollars($100)of assessed value thereof. 88 g. Hurd's Cove Special Service District, not exempt from taxation, at the rate of forty-three and eight- 89 tenths cents($0.438)on each one hundred dollars($100)of assessed value thereof. 90 h. Schilling's Point Special Service District, not exempt from taxation, at the rate fifty-eight cents ($0.58) 91 on each one hundred dollars($100)of assessed value thereof. 92 93 This real estate tax rate shall be in addition to the real estate tax rate set forth in Section 1 of this ordinance. Except 94 as provided explicitly in Chapter 35.3 of the Code of the City of Virginia Beach, this tax rate shall apply without 95 reduction to any properties subject to ad valorem taxes including those properties enrolled in the Exemption or 96 Freeze for Elderly and Disabled Persons,City Code§§35-61, et seq. As set forth in section 15.2-2403(6)of the Code 97 of Virginia,written consent is required to apply this tax rate to the full assessed value of properties subject to special 98 use value assessment. The real estate tax rate imposed herein shall be applied on the basis of one hundred 99 percentum (100%)of the fair market value of such real property except for public service real property,which shall 100 be on the basis as provided in Section 58.1-2604 of the Code of Virginia. 101 102 Sec.8.Amount of Levy on Real Estate within the Atlantic Park Community Development Authority 103 There shall be levied and collected for fiscal year 20262027, taxes for the special purpose of providing 104 funding consistent with the purposes of the Atlantic Park CDA within the boundaries of the Atlantic Park Community 105 Development Authority at the rate of twenty-five cents($0.25)on each one hundred dollars($100)of assessed value 106 thereof.This real estate tax rate shall be in addition to the real estate tax rate set forth in Section 1 of this ordinance. 107 The real estate tax rate imposed herein shall be applied on the basis of one hundred percentum of the fair market 108 value of such real property except for public service real property,which shall be on the basis as provided in Section 109 58.1-2604 of the Code of Virginia. 110 111 Sec.9 Severability. 112 If any portion of this ordinance is for any reason declared to be unconstitutional or invalid, such decision 113 shall not affect the validity of the remaining portions of this ordinance. 114 115 Sec. 10_Effective Date. 116 The effective date of this ordinance shall be July 1,242-5-2026. 117 118 Requires an affirmative vote by a majority of all of the members of City Council. Adopted by the City Council of the City of Virginia Beach,Virginia,on the/V'4 day of May, 2026. APPROVED AS TO CONTENT: APP S TO LEGAL SUFFICIENCY: 04x4Ai) Budget and Management Services ity Att ey's Office 5 ITEM—II.A.3 FY2026-27 OPERATING BUDGET ORDINANCES I RESOL UTION ITEM#78318 Upon motion by Vice Mayor Wilson, seconded by Council Member Ross-Hammond, City Council ADOPTED, BY CONSENT, Ordinance to ESTABLISH the Tax Levy on Personal Property and Machinery and Tools for Calendar Year 2027 Voting: 11 - 0 Council Members Voting Aye: Michael F.Berlucchi, Stacy Cummings,Mayor Robert M. Dyer,Barbara M.Henley, David Hutcheson, Cal "Cash" Jackson-Green, Robert W. "Worth" Remick, Dr. Amelia N. Ross-Hammond, Jennifer Rouse, Joashua F. "Joash" Schulman and Rosemary Wilson Council Members Absent: None May 12, 2026 1 AN ORDINANCE ESTABLISHING THE TAX LEVY ON PERSONAL 2 PROPERTY AND MACHINERY AND TOOLS FOR THE CALENDAR 3 YEAR 2027 4 BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH,VIRGINIA: 5 6 Sec. 1. Amount of Levy on the General Classification of Tangible Personal Property. 7 In accordance with Chapter 35 of Title 58.1 of the Code of Virginia,taxes shall be levied and collected for 8 general purposes for the calendar year 2026 2027 on all tangible personal property, including all separate 9 classifications of personal property set forth in the Code of Virginia, not exempt from taxation and not otherwise 10 provided for in this ordinance, at the rate of four dollars ($4.00) on each one hundred dollars ($100) assessed 11 valuation thereof. 12 13 Sec.2. Personal Property Tax Relief. 14 As required by § 58.1-3523 of the Code of Virginia, qualifying vehicles (as defined by § 58.1-3523), not 15 otherwise exempted from taxation in this ordinance or by law,shall be subject to the following: 16 1. Any qualifying-vehicle with a total assessed value of$1,000 or less will be levied no tax, reflecting a 17 reimbursement of 100%Personal Property Tax Relief Act. 18 2. Any qualifying vehicle with an assessed value of between$1,001 and$20,000 will be levied at 47.8% 19 of the computed tax based on the total assessed value of the vehicle. Tax relief authorized by the City Council 20 provides for 10.1%of the amount that would otherwise be billed for qualifying vehicles. Reimbursement is expected 21 from the Commonwealth under the Personal Property Tax Relief Act equal to the remaining 42.1%of the computed 22 tax on the first$20,000 of assessed value. 23 24 3. Any qualifying vehicle with an assessed value of over$20,000 will be levied at 47.8%of the computed 25 tax based on the first$20,000 of assessed value and 100%of the computed tax based on the assessed value in excess 26 of$20,000. Tax relief authorized by the City Council provides for 10.1% of the amount that would otherwise be 27 billed for qualifying vehicles. Reimbursement is expected from the Commonwealth under the Personal Property Tax 28 Relief Act equal to the remaining 42.1%of the computed tax on the first$20,000 of assessed value. 29 30 Sec.3. Amount of Levy on Certain Classifications of Tangible Personal Property 31 In accordance with Chapter 35 of Title 58.1 of the Code of Virginia,taxes shall be levied and collected for 32 general purposes for the calendar year 2026 2027 on the certain classifications of tangible personal property set 33 forth below at the rate of four dollars($4.00)on each one hundred dollars($100)assessed valuation thereof. 34 a. heavy construction equipment as described in §58.1-3506(A)(8)of the Code of Virginia; 35 b. computer equipment as described in §58.1-3506(A)(11)of the Code of Virginia; 36 c. tangible personal property as described in(a)§58.1-3506 of the Code of Virginia as"certified pollution 37 control equipment and facilities" and (b) §58.1-3661 of the Code of Virginia as "certified solar equipment,facilities 38 or devices and certified recycling equipment,facilities or devices"; 39 d. furniture, office, and maintenance equipment as described in § 58.1-3506 (A) (24) of the Code of 40 Virginia; 41 e. all tangible personal property employed in a trade or business other than described in subdivisions A 1 42 through A 18,except for subdivision A 17,of§58.1-3503 as described in§58.1-3506(A)(26)of the Code of Virginia; 43 f. programmable computer equipment and peripherals employed in a trade or business ad described in 44 §58.1-3506(A) (27)of the Code of Virginia; 45 g. tangible personal property used in the provision of internet service as described in§58-1-3506(A)(31) 46 of the Code of Virginia; 47 h. forest harvesting and silvicultural activity as described in §58-1-3506(A)(33)of the Code of Virginia; 48 i. equipment used primarily for research, development, production or provision of biotechnology as 49 described in §58-1-3506(A)(34)of the Code of Virginia; 50 j. tangible personal property which is owned and operated by a service provider who is not a CMRS 51 provider and is not licensed by the FCC used to provide,for a fee,wireless broadband internet service as described 52 in §58-1-3506(A)(37)of the Code of Virginia. 53 54 Sec.4. Amount of Levy on Manufactured Homes. 55 There shall be levied and collected for general purposes for the calendar year 20262027 taxes on all vehicles 56 without motive power,used or designated to be used as manufactured homes,as defined by Section 36-85.3 of the 57 Code of Virginia, at the rate of ninety-seven cents 0.97 on each one hundred dollars($100)of assessed valuation 58 thereof. Such property declared a separate class of tangible personal property in Section 58.1-3506(A)(10). 59 60 Sec.S. Amount of Levy on All Boats or Watercraft Used for Business Purposes Only. 61 There shall be levied and collected for general purposes for the calendar year 20262027 taxes on all boats 62 or watercraft used for business purposes(both boats weighing less than five(5)tons and boats weighing five(5)tons 63 or more), except as provided for in Section 8 of this ordinance, at the rate of one dollar and fifty cents ($1.50) on 64 each one hundred dollars($100) of assessed valuation thereof. Such property declared a separate class of tangible 65 personal property in Sections 58.1-3506(A)(35)and(A)(36). 66 67 Sec.6.Amount of Levy on All Boats or Watercraft Not Used Solely for Business Purposes. 68 There shall be levied and collected for general purposes for the calendar year 20262027 taxes on all boats 69 or watercraft not used solely for business purposes weighing less than five (5) tons, and weighing five (5) tons or 70 more, except as provided for in Section 8 of this ordinance, at the rate of one dollar and fifty cents($1.50)on each 71 one hundred dollars ($100) of assessed valuation thereof. Such property declared a separate class of tangible 72 personal property in Sections 58.1-3506(A)(1)(a)and (A)(1)(b)of the Code of Virginia. 73 74 Sec.7. Amount of Levy on Machinery and Tools. 75 In accordance with Section 58.1-3507 of the Code of Virginia,there shall be levied and collected for general 76 purposes for the calendar year 20262027 taxes on machinery and tools,including machinery and tools used directly 77 in the harvesting of forest products or semiconductor manufacturing, not exempt from taxation, at the rate of one 78 millionth of one cent ($.000001) on each one hundred dollars ($100) of assessed valuation thereof. As provided by 79 §58.1-3506(B)of the Code of Virginia,the following personal property shall also be taxed at the rate of machinery 80 and tools: 81 a. all tangible personal property used in research and development businesses, as described in § 58.1- 82 3506(A)(7)of the Code of Virginia; 83 b. generating or cogenerating equipment,as described in §58.1-3506(A)(9)of the Code of Virginia;and 84 c. all motor vehicles,trailers and semitrailers with a gross vehicle weight of 10,000 pounds or more used 85 to transport property or passengers for hire by a motor carrier engaged in interstate commerce, as described in § 86 58.1-3506(A)(25)of the Code of Virginia. 87 88 Sec.8.Amount of Levy on Privately Owned Pleasure Boats and Watercraft Used for Recreational Purposes Only. 89 There shall be levied and collected for general purposes for the calendar year 20262027 taxes on all 90 privately owned pleasure boats and watercraft used for recreational purposes only, at the rate of one millionth of 91 one cent ($.000001) on each one hundred dollars ($100) of assessed valuation thereof. Such property declared a 92 separate class of tangible personal property in Sections 58.1-3506 (A) (12), (A) (28), and (A) (29) of the Code of 93 Virginia. 94 95 Sec.9.Amount of Levy on Privately Owned Camping Trailers, Privately Owned Travel Trailers,and Motor Homes 96 Used for Recreational Purposes Only,and Privately Owned Horse Trailers. 97 There shall be levied and collected for general purposes for the calendar year 20262027 taxes at the rate 98 of one dollar and fifty cents ($1.50) on each one hundred dollars ($100) of assessed valuation thereof on the 99 following property: (a)all privately owned camping trailers and motor homes as defined in Section 46.2-100 of the 100 Code of Virginia and privately owned travel trailers as defined in §46.2-1900 of the Code of Virginia,that are used 101 for recreational purposes only;and (b)privately owned trailers as defined in §46.2-100 of the Code of Virginia that 102 are designed and used for the transportation of horses, except those trailers described in subdivision (A) (11) of§ 103 58.1-3505 of the Code of Virginia.Such property declared a separate class of tangible personal property in Sections 104 58.1-3506(A)(18)and (A)(30)of the Code of Virginia. 105 106 Sec. 10.Amount of Levy on One Motor Vehicle Owned and Regularly Used by a Disabled Veteran. 107 There shall be a reduced tax, levied and collected for general purposes for the calendar year 20262027 108 taxes at the rate of one dollar and fifty cents ($1.50) on each one hundred dollars ($100) of assessed valuation, on 109 one(1)motor vehicle owned and regularly used by a veteran who has either lost,or lost the use of,one or both legs, 110 or an arm or a hand, or who is blind, or who is permanently and totally disabled as certified by the Department of 111 Veterans'Affairs.Any motor vehicles in addition to the one(1)so taxed shall not qualify for the taxation at the rate 112 established herein,and shall be taxed at the rate or rates applicable to that class of property.To qualify,the veteran 113 shall provide a written statement to the Commissioner of the Revenue from the Department of Veterans' Affairs 114 that the veteran has been so designated or classified by the Department of Veterans' Affairs as to meet the 115 requirements of Section 58.1-3506(A)(19)_of the Code of Virginia,and that his or her disability is service connected. 116 Such property is declared a separate class of tangible personal property in Section 58.1-3506(A)(19)of the Code of 117 Virginia. 118 119 Sec.11.Amount of Levy on a Motor Vehicle Owned and Used Primarily by or for Someone at Least Sixty-Five 120 Years of Age or Anyone Found to be Permanently and Totally Disabled. 121 a. In accordance with Sections 58.1-3506.1 et seq.of the Code of Virginia,there shall be a reduced tax, 122 levied and collected for general purposes for calendar year 20262027 taxes,at the rate of one millionth of one 123 cent($0.000001)on each one hundred dollars($100.00)of assessed valuation, on one(1)automobile or pickup 124 truck owned and used primarily by or for anyone at least sixty-five years of age or anyone found to be permanently 125 and totally disabled, as defined in Section 58.1-3506.3 of the Code of Virginia,subject to the following conditions: 126 1. The total combined income received, excluding the first $7,500 of income, from all sources 127 during calendar year 20234 by the owner of the motor vehicle shall not exceed twenty-two thousand dollars 128 ($22,000). 129 2. The owner's net financial worth, including the present value of all equitable interests, as of 130 December 31 of calendar year 20242025,excluding the value of the principal residence and the land, not exceeding 131 one(1)acre, upon which it is situated,shall not exceed seventy thousand dollars($70,000). 132 3. All income and net worth limitations shall be computed by aggregating the income and assets, 133 as the case may be,of married individuals who reside in the same dwelling and shall be applied to any owner of the 134 motor vehicle who seeks the benefit of the preferential tax rate permitted under this ordinance,irrespective of how 135 such motor vehicle may be titled. 136 b.Any such motor vehicle owned by married individuals may qualify if either spouse is sixty-five or over or 137 if either spouse is permanently and totally disabled,and the conditions set forth in subsection(a)have been satisfied. 138 139 Sec. 12.Amount of Levy on Computer Equipment and Peripherals Used in a Data Center. 140 There shall be levied and collected for general purposes for the calendar year 20262027 taxes on all 141 computer equipment and peripherals used in a data center as authorized in § 58.1-3506(A)(43) of the Code of 142 Virginia at the rate of forty cents($0.40)on each one hundred dollars($100)of assessed valuation thereof. 143 144 Sec. 13.Amount of Levy on EMS Volunteer Motor Vehicles. 145 There shall be levied and collected for general purposes for the calendar year 20262027 taxes on motor 146 vehicles that meet the ownership and tax burden requirements as set forth in § 58.1-3506(A)(15) of the Code of 147 Virginia at the rate of one millionth of one cent($0.000001)on each one hundred dollars($100)of assessed valuation 148 thereof. Such property declared a separate class of tangible personal property in §58.1-3506(A)(15)of the Code of 149 Virginia and is limited to one motor vehicle per member.The member is required to regularly respond to emergency 150 calls and the Council believes such designation may be obtained if the member has completed at least 80%of their 151 hourly duty commitment. Such property shall be subject to the certification of the applicable chief of the volunteer 152 emergency medical services agency or volunteer fire department, and if the owner or lessee discontinues active 153 volunteer participation in the activities of such volunteer emergency medical services agency or volunteer fire 154 department,the applicable chief shall forthwith provide the Commissioner of the Revenue of such change in status, 155 which shall result in the Commissioner of the Revenue issuing a prorated tax assessment in accordance with the 156 taxation of motor vehicles. 157 158 Sec. 14. Tangible Personal Property of a Business that Qualifies for the Business License Incentive Program for 159 New Businesses. 160 The tax rate applicable to the tangible personal property of a business that qualifies for the Business License 161 Incentive Program for New Businesses, such classification authorized by § 58.1-3506(A)(45), shall be one millionth 162 of one cent($0.000001)per$100 of assessed value. This tax classification shall apply for the first two years in which 163 the qualifying business is subject to tax upon its personal property in the City of Virginia Beach. 164 165 Sec. 15.Assessed Value Determination; method of filing returns for motor vehicles,trailers and boats. 166 In accordance with Section 58.1-3103 of the Code of Virginia, personal property mentioned in the above 167 sections shall be assessed at actual fair market value,to be determined by the Commissioner of the Revenue for the 168 City of Virginia Beach. As authorized by Section 58.1-3518.1,the Commissioner of the Revenue may provide for the 169 annual assessment and taxation of motor vehicles, trailers and boats based on a previous personal property tax 170 return filed by the owner or owners of such property. The Commissioner of the Revenue may also rely upon 171 registration information held by the Department of Motor Vehicles in ascertaining ownership and situs of vehicles. 172 173 Sec. 16.Severability. 174 If any portion of this ordinance is for any reason declared to be unconstitutional or invalid, such decision 175 shall not affect the validity of the remaining portions of this ordinance. 176 177 Sec. 17. Effective Date. 178 179 This ordinance shall be effective January 1,2026 2027. 180 181 Requires an affirmative vote by a majority of all of the members of City Council. Adopted by the City Council of the City of Virginia Beach,Virginia,on/L"`day of May,2026. APPROVED AS TO CONTENT: APPROVED AS TO LEGAL SUFFICIENCY: Bu get and Management Services )eys Office 6 ITEM—II.A.4 FY2026-27 OPERATING BUDGET ORDINANCES/RESOLUTION ITEM#78319 Upon motion by Vice Mayor Wilson, seconded by Council Member Ross-Hammond, City Council ADOPTED, BY CONSENT, Ordinance to AUTHORIZE the City Manager to submit the FY2026-27 Annual Funding Plan to the U.S. Department of Housing and Urban Development(HUD) Voting: I1 - 0 Council Members Voting Aye: Michael F.Berlucchi,Stacy Cummings,Mayor Robert M.Dyer,Barbara M.Henley, David Hutcheson, Cal "Cash" Jackson-Green, Robert W "Worth" Remick, Dr. Amelia N. Ross-Hammond, Jennifer Rouse, Joashua F. "Joash" Schulman and Rosemary Wilson Council Members Absent: None May 12, 2026 I AN ORDINANCE TO AUTHORIZE THE CITY MANAGER TO SUBMIT AN ANNUAL 2 FUNDING PLAN TO THE U.S. DEPARTMENT OF HOUSING AND URBAN 3 DEVELOPMENT 4 5 WHEREAS, the United States Congress established legislation designated as the Housing and Community 6 Development Act of 1974 that sets forth the development of viable urban communities as a national goal; and 7 established additional legislation addressing the goals of reducing homelessness, increasing affordable housing 8 opportunities, and providing housing for people with HIV/AIDS; 9 10 WHEREAS, there is federal assistance available to help achieve these goals and conduct related activities, 11 including additional federal assistance set aside for related programs made available through various acts providing 12 coronavirus pandemic relief and support;and 13 14 WHEREAS,as a prerequisite to receiving the above-referenced federal assistance,the City of Virginia Beach 15 has developed an Annual Funding Plan for submission to the Department of Housing and Urban Development and 16 has created the necessary mechanisms for its implementation in compliance with federal and local directives; 17 18 NOW,THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH,VIRGINIA THAT: 19 20 The City Manager is hereby authorized and directed, as the executive and administrative head of the City, 21 to submit the City's FY'^,, �25 26 FY 2026-27 Annual Funding Plan (the "Plan") and amendments thereto, along with 22 understandings and assurances contained therein and such additional information as may be required, to the 23 Department of Housing and Urban Development to permit the review,approval,and funding of the Plan. Adopted by the Council of the City of Virginia Beach,Virginia,on the/Xtay of May, 2026. APPROVED AS TO CONTENT: aAD LEGAL SUFFICIENCY: udget and Management Services fice 7 ITEM—II.A.5 FY2026-27 OPERATING BUDGET ORDINANCES/RESOLUTION ITEM#78320 Upon motion by Vice Mayor Wilson, seconded by Council Member Ross-Hammond, City Council ADOPTED,BYCONSENT,, Ordinance to AMEND City Code Sections 35-64 and 35-67 re Exemption or Deferral of Real Estate Taxes for elderly or disabled persons Voting: 11 - 0 Council Members Voting Aye: Michael F.Berlucchi, Stacy Cummings,Mayor Robert M.Dyer,Barbara M. Henley, David Hutcheson, Cal "Cash" Jackson-Green, Robert W. "Worth" Remick, Dr. Amelia N. Ross-Hammond, Jennifer Rouse, Joashua F. "Joash" Schulman and Rosemary Wilson Council Members Absent: None May 12, 2026 1 AN ORDINANCE TO AMEND SECTIONS 35-64 AND 35-67 OF 2 THE CITY CODE PERTAINING TO THE EXEMPTION OR 3 DEFERRAL OF REAL ESTATE TAXES FOR ELDERLY OR DISABLED 4 PERSONS 5 SECTIONS AMENDED: §§35-64 AND 35-67 6 7 WHEREAS,the City Council has previously directed adjustments to the income component of the tax relief 8 for elderly and disabled persons to be adjusted annually to mirror the average increase or decrease of the value of 9 single family residences;and 10 11 WHEREAS, the median increase in the value of a single family residence for FY 2025 26 2026-27 is 12 5.64%5.54%; 13 14 NOW,THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH,VIRGINIA THAT: 15 16 Sections 35-64 and 35-67 of the City Code are hereby amended and reordained to read as follows: 17 18 Sec.35-64. General prerequisites to grant;effect of residency in hospital,nursing home,etc. 19 20 (a) Either the exemption or freeze, but not more than one (1), as provided for in this division shall be 21 granted to persons subject to the following provisions: 22 23 (1) The title to the property for which exemption or freeze is claimed is held, or partially held, on 24 June thirtieth immediately preceding the taxable year, by the person or persons claiming exemption, deferral or 25 freeze and is occupied as the sole dwelling of such person or persons. 26 27 (2) The head of the household occupying the dwelling and owning title or partial title thereto or 28 either spouse in a dwelling jointly held by married individuals is either permanently and totally disabled or is sixty- 29 five (65) years of age or older on June thirtieth of the year immediately preceding the taxable year; provided, 30 however,that a dwelling jointly held by married individuals may qualify if either spouse is over sixty-five(65)years 31 of age. 32 33 (3) For the tax exemption programs, the total combined income received from all sources during 34 the preceding calendar year by: (i)the owner or owners of the dwelling who use it as their principal residence and 35 (ii) the owner's or owners' relatives who live in the dwelling, shall not exceed eighty twe thousand eight hundred 36 thirty dollar` ($82 830) eighty seven thousand four hundred nineteen dollars ($87 419) provided that the first ten 37 thousand dollars ($10,000.00) of income of each relative, other than a spouse of the owner, who is living in the 38 dwelling,shall not be included in such total:and provided further that the first ten thousand dollars($10,000.00)or 39 any portion thereof of income received by a permanently and totally disabled owner shall not be included in such 40 total. 41 42 (4) For the tax freeze program, the total combined income received from all sources during the 43 preceding calendar year by: (i)the owner or owners of the dwelling who use it as their principal residence and (ii) 44 the owner's or owners' relatives who live in the dwelling,shall not exceed one hundred eight th,.,,.and seventy five 45 one hundred fourteen thousand sixty two dollars($114 062) provided that the first ten thousand 46 dollars($10,000.00)of income of each relative,other than a spouse of the owner,who is living in the dwelling,shall 47 not be included in such total;and provided that the first ten thousand dollars($10,000.00)or any portion thereof of 48 income received by a permanently and totally disabled owner shall not be included in such total. 49 50 (5) For the tax exemption programs, the net combined financial worth, including equitable 51 interests, as of December thirty-first of the year immediately preceding the taxable year, of the owners, and of the 52 spouse of any owner, excluding the value of the dwelling and the land (not exceeding ten acres) upon which it is 53 situated,shall not exceed three hundred and fifty thousand dollars($350,000.00). 54 55 (6) For the tax freeze program, the net combined financial worth, including equitable interests, as 56 of December thirty-first of the year immediately preceding the taxable year,of the owners,and of the spouse of any 57 owner,excluding the value of the dwelling and the land(not exceeding ten acres)upon which it is situated,shall not 58 exceed three hundred and fifty thousand dollars($350,000.00). 59 60 (7) The dwelling is occupied. 61 . . . . 62 63 Sec.35-67. Amount of exemption. 64 When a person claiming exemption under this division conforms to the standards and does not exceed 65 the limitations contained in this division,the tax exemption shall be as shown on the following schedule: 66 67 Total income, 68 All Sources Tax Exemption 69 $0.^�03,21��^0 $0.00-$66,714.00 100% 70 $63,212.01 $68 118.0Q $66,714.01-$71,892.00 80% 71 $68,118 01 $73�0.00 $71,892.01-$77,065.00 60% 72 $73,029.01 $7 7,,92g.00 $77,065.01-$82,243.00 40% 73 $77,926.01$82,839.00 $82,243,01-$87,419.00 20% 74 75 No lien shall accrue as a result of the amount certified as exempt. 76 77 BE IT FURTHER ORDAINED:That this ordinance shall be effective on July 1, 2026. Adopted by the City Council of the City of Virginia Beach,Virginia,on this/'Ot4 day of May, 2026. APPROVED AS TO CONTENT: AS TO LEGAL SUFFICIENCY:� __— 8bnqkr1_ I 1Pj f 'I udget and Management Services ey Office 8 ITEM—II.A.6 FY2026-27 OPERATING BUDGET ORDINANCES/RESOLUTION ITEM#78321 Upon motion by Vice Mayor Wilson, seconded by Council Member Ross-Hammond, City Council ADOPTED,BYCONSENT,, Ordinance to AMEND City Code Sections 28-4 and 28-4.1 re Sewer Capital Recovery fees Voting: 11 - 0 Council Members Voting Aye: Michael F.Berlucchi, Stacy Cummings,Mayor Robert M.Dyer,Barbara M.Henley, David Hutcheson, Cal "Cash" Jackson-Green, Robert W. "Worth" Remick, Dr. Amelia N. Ross-Hammond, Jennifer Rouse, Joashua F. "Joash" Schulman and Rosemary Wilson Council Members Absent: None May 12, 2026 1 AN ORDINANCE TO AMEND THE CITY CODE PERTAINING TO 2 SEWER CAPITAL RECOVERY FEES 3 4 SECTIONS AMENDED§ 28-4-28-4.1 4 WHEREAS, City Council held a public hearing on the proposed fee changes to provide for public comment; 5 6 BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH,VIRGINIA THAT: 7 8 Sec.28-4.-Sewer capital recovery fees—Generally. 9 (a) The fees prescribed by the following subsections of this section shall be paid as the property owner's share of 10 the cost of the public sewer system and associated conveyance facilities.Such fees shall be known as"sewer capital 11 recovery fees" and shall be deemed system revenues, as defined in the Master Water and Sewer Revenue Bond 12 Resolution adopted February 11, 1992. Such fees shall be applicable to a use or structure not presently connected 13 to the sanitary sewer system when such use or structure connects and as otherwise provided in this article. If a 14 property owner has paid sanitary sewer connection fees in effect as of June 30,2014,but has not obtained a building 15 permit for the building or structure to which such fees apply,the property owner may,through December 31,2014, 16 elect to pay sewer capital recovery fees in the amount prescribed in this article, less a credit of any sanitary sewer 17 connection fees previously paid. Any property owner who pays such fees between July 1, 2014 and December 31, 18 2014 may choose to pay sewer capital recovery fees in the prescribed amount or the applicable amount of sanitary 19 sewer connection fees in effect as of June 30, 2014. 20 21 (b)in cases in whieh a gFavity sewer GeRReetien to the publie seweF system as net available to the prepeFty,the seweF 22 eapital FeceyeFy fee shall be iR ameunt equal to fifty(50) percent of the applicable fee set forth iR subseetien (a)e 23 seetwen 28 .L 24 25 (b1) 26 Notwithstanding the provisions of subsections(b)Where a use or structure connected to the public sewer system is 27 reconstructed, expanded or modified, so as to result in an increase in water meter size, the sewer capital recovery 28 fee shall be in an amount equal to the difference between the fee corresponding to the size of new water meter 29 installed to serve such use or structure and the fee corresponding to the size of the water meter replaced. 30 31 (c) 32 Where the property owner is required to construct sewage facilities that are to become a part of the public sewer 33 system in order to provide service and pump station capacity to a specific parcel or parcels, the sewer capital 34 recovery fee shall be in an amount equal to twenty-five(25) percent of the applicable fee specified in subsection(a) 35 of section 28-4.1. Where the property owner is required to construct sewage facilities that are to become a part of 36 the public sewer system in order to provide service to a specific parcel or parcels and the property to be served 37 discharges through a publicly-owned pump station the property owner is not required to modify,the sewer capital 38 recovery fee shall be in an amount equal to fifty-one (51) percent of the applicable fee specified in subsection (a) 39 of section 28-4.1. 40 41 (d) 42 Whenever Notwithstanding the provisions of subsection (c) where a property to be served discharges through a 43 publicly-owned pump station,the sewer capital recovery fee shall be in an amount equal to one hundred twenty-six 44 (126)percent of the applicable fee specified in subsection (a)of section 28-4.1.Where a property to bg served does 45 not discharge through a publicly-owned pump station the sewer capital recovery fee shall be in an amount equal to 46 the fee specified in subsection (a)of section 28-4.1.and ( )the s,.-« M installati costs aFe -.lcul.ted pursuant to 47 subsection (c) ef this seetiOR, or(2)the estimated peak sanitary seweF flew e)(eeeds the IpFepeky'S flow allocation, 48 theFe shall be aR additienal fee *n the ameunt of one thousand, one huRdFed eighty seven dellaFs ($1,187.00) pe 49 . "Peak 50 "shall 51 Fn..aR pv that "rtieR of the purnp station's c eityassigned+ the pFopeFty. � 52 53 (c4 54 55 h,,.-.,by established Such fee shall be.JeteFw,ined as fellows: 56 M 57 Fer eampgFeunds and etheF uses epeFated en a seasena! basis,the fee shall be on aR amount equal te ene half(134) 58 ef the applicable seweF capital Feeevery fee specified in 5ubsectiOR (a) ef seetien 28 4A for each wateF meter 59 installed te serve such campgraund. Fer suGh fee te be applieable, the OWReF shall first eRteF iRte a GeRtraGt with 60 the Gity ffeviding that,ifsueh campgreund is cenveFted to year FOURd use,the E)wneF shall,at the time efeenveFSOGR 61 63 94 64 For campgFouRds epeFated OR a yeaF FeURd basis the sewer capital FeeeveFy fee shall be in an afflGHRt equal to the 65 . 66 (34 67 FaF tempaFary uses and StFUGWFes, the applieable fee shall hP dPtkQFFniRed by the directeF ef public utilities based 68 upon the estimated GeRtFibUtiOR Of WaSte—te. te the public sanitary seweF system 49M the ffepesed use e 69 70 peried of time and not thereafteF Fepeated E)R an annual or other basis 71 72 (f) 73 No building permit shall be issued and no water or sewer tap shall be installed for any property until the fees required 74 by this section have been fully paid,except as otherwise provided in this article. 75 76 (g) 77 Existing contractual agreements between property owners and the city regarding fees and waiver of fees shall 78 remain in effect. 79 80 (h) 81 Where a property having no water meter is connected to the public sewer system, the sewer capital recovery fee 82 shall be in an amount equal to the applicable fee for a water meter of a size necessary to serve such property, as 83 determined in accordance with the applicable provisions of the Department of Public Utilities Design Standards 84 Manual. 85 86 Sec.28-4.1.-Same—Amount. 87 The sewer capital recovery fee shall be determined as follows: 88 (a) 89 For single-family and duplex dwellings and triplexes where the dwelling units are separately-metered (per dwelling 90 unit)and for all non-residential uses: 91 Meter Size(in inches) Sewer Capital Recovery Fee % $2,521.00 1 $6,302.00 1.5 $12,603.00 2 $20,165.00 3 $37,809.00 4 $63,016.00 6 $126,032.00 8 $201,650.00 10 $289,872.00 92 (b) 93 For multiple-family dwellings, the fee shall be in an amount equal to seventy (70) percent of the applicable sewer 94 capital recovery fee or reduced fee under section 28-4(c)or section 28-4(d), as the case may be, per dwelling unit. 95 (c) 96 For mixed-use and other buildings containing both residential and non-residential uses, separate meters shall be 97 required to serve the residential and non-residential components of the property unless otherwise directed by the 98 Director of Public Utilities or designee.Fees shall be payable for each meter serving the property in accordance with 99 this section. 100 101 Adopted by the Council of the City of Virginia Beach,Virginia, on the_/?-' 'ay of May,2026. APPROVED AS TO CONTENT: LAPED AS TO LEGAL SUFFICIENCY: A-k A PCkzft)66tP Budget and Management Services ey's Office 9 ITEM—HA.7 FY2026-27 OPERATING BUDGET ORDINANCES/RESOLUTION ITEM#78322 Upon motion by Vice Mayor Wilson, seconded by Council Member Ross-Hammond, City Council ADOPTED, BY CONSENT, Ordinance to AMEND City Code Section 37-7.1 re Water Capital Recovery fees Voting: 11 - 0 Council Members Voting Aye: Michael F.Berlucchi,Stacy Cummings,Mayor Robert M.Dyer, Barbara M. Henley, David Hutcheson, Cal "Cash" Jackson-Green, Robert W. "Worth" Remick, Dr. Amelia N. Ross-Hammond, Jennifer Rouse, Joashua F. "Joash" Schulman and Rosemary Wilson Council Members Absent: None May 12, 2026 1 AN ORDINANCE TO AMEND THE CITY CODE PERTAINING TO 2 WATER CAPITAL RECOVERY FEES 3 4 SECTION AMENDED§ 37-7.1 4 WHEREAS,City Council held a public hearing on the proposed fee changes to provide for public comment; 5 6 BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH,VIRGINIA THAT: 7 8 Sec. 37-7.1. - Water capital recovery fee generally. (a) The fees prescribed by this section shall be paid as the 9 property owner's share of the cost of water resource development and associated distribution facilities. Such fees 10 shall be known as "water capital recovery fees" and shall be deemed system revenues, as defined in the Master 11 Water and Sewer Revenue Bond Resolution adopted February 11, 1992. Such fees shall be applicable to a use or 12 structure not presently connected to the water system when such use or structure connects and as otherwise 13 provided in this article. if a property ewneF has paid wateF Feseffee FeceveFy fees in e4eet as efjune 30, 2014, 14 has not obtained a building peFmit f9F the building 9F StFUCAUFe W which such fees apply,the pFoperty owner may, 15 through DecembeF 31, 2014, elect to pay water capital Fecovery fees in the amount specified by this article, less a 16 , 17 18 applicable amount of..ate.. y fees ff r a efjune 30, 2014. 19 20 (b) 21 The water capital recovery fee shall be determined as follows: 22 (1) 23 For single-family and duplex dwellings and triplexes where the dwelling units are separately-metered (per dwelling 24 unit)and for all non-residential uses: Meter Size(in inches) Water Capital Recovery Fee $2,900.00 1 $7,251.00 1.5 $14,502.00 2 $23,203.00 3 $43,506.00 4 $72,509.00 6 $145,019.00 8 $232,030.00 10 $333,543.00 25 26 (2) 27 For multiple-family dwellings, the fee shall be in an amount equal to seventy (70) percent of the applicable water 28 capital recovery fee, per dwelling unit. 29 (3) 30 For irrigation meters,the fee shall be in an amount equal to twenty-five(25)percent of the applicable water capital 31 recovery fee for the equivalent size meter. 32 (4) 33 For mixed-use and other buildings containing both residential and non-residential uses, separate meters shall be 34 required to serve the residential and non-residential components of the property unless otherwise directed by the 35 Director of Public Utilities or designee. Fees shall be payable for each meter serving the property in accordance with 36 this section. 37 (5) 38 Where a use or structure connected to the public water system is reconstructed, expanded or modified so as to 39 result in an increase in water meter size, the water capital recovery fee shall in an amount equal to the difference 40 between the fee corresponding to the size of new water meter installed to serve such use or structure and the fee 41 corresponding to the size of the water meter replaced. 42 (c) 43 In the event of a dispute as to the amount of fees owed,the property owner may appeal the department of public 44 utilities'decision to the city manager or his designee and,thereafter,to city council. 45 (d) 46 No building or plumbing permit shall be issued for any property unless the fees provided for in this section have 47 been paid in full. 48 (e) 49 Existing contractual agreements between property owners and the city regarding water capital recovery fees or their 50 equivalent and waiver of such fees shall remain in effect. 51 52 Adopted by the Council of the City of Virginia Beach,Virginia, on the/iday of May, 2026. APPROVED AS TO CONTENT: APPROVED AS TO LEGAL SUFFICIENCY: J/1'A'Ak B dget and Management Services orney's Office 10 ITEM—II.A.8 FY2026-27 OPERATING BUDGET ORDINANCES I RESOL UTION ITEM#78323 Upon motion by Vice Mayor Wilson, seconded by Council Member Ross-Hammond, City Council ADOPTED, BY CONSENT, Ordinance to AMEND City Code Section 31-15 and 31-35 re pricing on automated refuse receptacles and yard waste containers Voting: 11 - 0 Council Members Voting Aye: Michael E Berlucchi,Stacy Cummings,Mayor Robert M.Dyer,Barbara M.Henley, David Hutcheson, Cal "Cash" Jackson-Green, Robert W. "Worth" Remick, Dr. Amelia N. Ross-Hammond, Jennifer Rouse, Joashua F. "Joash" Schulman and Rosemary Wilson Council Members Absent: None May 12, 2026 1 AN ORDINANCE TO UPDATE VARIOUS SECTIONS OF THE CITY CODE TO 2 UPDATE PRICING ON AUTOMATED REFUSE RECEPTACLES AND YARD 3 WASTE CONTAINERS 4 SECTIONS AMENDED:31-15 and 31-35 5 BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH,VIRGINIA,THAT: 6 The following sections of the City Code are hereby amended and reordained to read as follows: 7 Sec.31-15. Provision of automated refuse receptacles. 8 (a) It shall be the responsibility of owners of residential structures located in areas of the city serviced by the 9 automated collection system to provide automated refuse receptacles. 10 (b) Within thirty (30) days of the date of occupancy of a new structure located in any such area, the owner or 11 occupant thereof shall provide an automated refuse receptacle. 12 (c) The city shall make automated refuse receptacles available for sale to homeowners who are residents of the 13 city. The fee for each receptacle shall be , which shall be a reasonable fee 14 established by the director of public works paid to the city before the receptacle is provided. 15 Sec.31-35. Use of yard waste containers. 16 The city shall make available to those homeowners who are residents of the city a yard waste container,which shall 17 be picked up and delivered by city employees. Prior to the container being delivered,there shall be paid to the city 18 a reasonable fee established by the director of public works , for the use of a yard waste 19 container delivered for a 24-hour period Monday through Thursday and a separate fee established by the director 20 of public works seventy five dollars «7-5 00) for deliveries made on Fridays and picked up on Monday. The city 21 employees shall deliver and place the yard waste container on the property of the homeowner of an occupied 22 dwelling who has requested the yard waste container. Prior to delivery of the yard waste container,the homeowner 23 shall sign a statement which shall state: 24 (1) That he the individual is not a contractor and that4is the need arises from-h s homeownership; 25 (2) That the yard waste container shall only be used for tree limbs, leaves, shrubbery, grass trimmings and yard 26 debris; 27 (3) That he-the individual will not place hazardous waste, stumps, building and construction materials or other 28 bulky items within the yard waste container; 29 (4) That 4e the individual will not fill the load above the top of the container; 30 (5) That he-the individual will release the city from liability for any damages resulting from city equipment or 31 personnel being on private property to deliver or remove the yard waste container; 32 (6) That he-the individual will be responsible for any injuries and/or damages that result to individuals using the 33 container or directly to the container while being used by the homeowner;and 34 (7) That he-the individual will reimburse the city for any costs associated with the handling and disposal of any 35 material or items placed in the yard waste container in violation of any of the provisions of this section. Adopted by the Council of the City of Virginia Beach,Virginia,on the/ Z'~day of 2026. APPROVED AS TO CONTENT: APPROMED AS TO LEGAL SUFFICIENCY: udget and Management Services orney's Office 11 ITEM—HA.9 FY2026-27 OPERATING BUDGET ORDINANCES/RESOLUTION ITEM#78324 Upon motion by Vice Mayor Wilson, seconded by Council Member Ross-Hammond, City Council ADOPTED, BY CONSENT, Ordinance to AMEND the boundaries re Town Center Special Service District(SSD) Voting: 11 - 0 Council Members Voting Aye: Michael F.Berlucchi,Stacy Cummings,Mayor Robert M.Dyer,Barbara M.Henley, David Hutcheson, Cal "Cash" Jackson-Green, Robert W. "Worth" Remick, Dr. Amelia N. Ross-Hammond, Jennifer Rouse, Joashua F. "Joash" Schulman and Rosemary Wilson Council Members Absent: None May 12, 2026 1 AN ORDINANCE TO AMEND THE BOUNDARIES OF THE TOWN CENTER 2 SPECIAL SERVICE DISTRICT 3 4 WHEREAS,the Town Center Special Service District(the"SSD")was enacted by ordinance adopted by the City Council 5 on May 14, 2002(Ord#2699B); 6 7 WHEREAS,the City Council has modified the boundaries of the SSD by ordinances adopted September 27,2005(Ord 8 #2896N), May 15, 2007(Ord#2980K)and May 14, 2019(Ord#3591K); 9 10 WHEREAS,new development is occurring near the Town Center core that will rely on and utilize existing Town Center 11 parking infrastructure, 12 13 WHEREAS, after conducting a public hearing,the City Council hereby determines it would be in the best interests of 14 the City and its citizens to expand the SSD boundary to include the parcel associated with the new development, 15 16 NOW,THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA BEACH,VIRGINIA: 17 1. That Ordinance#3591K is hereby amended as follows: 18 19 The particular boundaries of the district are set forth in detail in the attached map. Also,attached hereto is a list of 20 the parcels within the district. In the event of any discrepancy between the map and the list of parcels, the map 21 shall prevail. 22 23 2. This ordinance shall be effective on July 1,2026. 24 25 Adopted by the City Council of the City of Virginia Beach,Virginia,on this x-t ay of May, 2026. APPROVED AS TO CONTENT: APPROVED AS TO LEGAL SUFFICIENCY: Budget and Management Services City Attorney's Office Town Center SSD Parcels 14774570940000 14775510280000 14775540310000 14775570690000 14775591410000 14775479320000 14775488980000 14774457290000 14774477180000 14774488920000 14775408700000 14775418700000 14774475100000 14775414290000 14775445380000 14775485370000 14774471260000 14775412160000 14775402230000 Proposed Modifications to Town Center Special Service District N W10 s VIRGINIA BEACH BLVD 00 cd' 14775570690000 fBANK 74J7094l0000 o L~nLn o „n -1ttti 1—I—I—I- - Ln 14775479320000 ST o � O Cp 14775488980 000 tJ O N O O Y w Z O m O O w CA 00 O O Q Z LU z ,"n 14774477180000 o a v w q v � z MAIN ST a n ^ n IZ w 00, Z Z .�� � LU O COMMERCE ST Y O a: O Z O c Ln 14775485370000 CA 14774475100000 It n CA a R z Ln r, o n v n a 0 a COLUMBUS ST Ln N I 14774471260000 I I I I I I I I ! I I I I ! I I ! I I I I ! I ! V l I I I I I I I I I I I I I I I I I I I I I I ! I I I 1 1 1 1 ! I I I I I I I I 1 1 1 1 1 1 1 1 ! ! ! I ! I I I I I I I I I I I I I I I I I I I I I I I ! I L J-J-111111.i J--LL 1 L 111 J-1 -I----------J---..----! NINA DR r. SSD Outline Q Parcels r _�I Recorded Parcels 0 100 200 I I Feet 12 ITEM—ILA.10 FY2026-27 OPERATING BUDGET ORDINANCES I RESOL UTION ITEM#78325 Upon motion by Vice Mayor Wilson, seconded by Council Member Ross-Hammond, City Council ADOPTED, BY CONSENT, Ordinance to ESTABLISH Pembroke Square Special Service District; ESTABLISH the Tax Levy on Real Estate; and DEDICATE real estate tax revenue from properties within Pembroke Square Special Service District re public facilities and parking garages Voting: 11 - 0 Council Members Voting Aye: Michael F. Berlucchi,Stacy Cummings,Mayor Robert M.Dyer,Barbara M.Henley, David Hutcheson, Cal "Cash" Jackson-Green, Robert W. "Worth" Remick, Dr. Amelia N. Ross-Hammond, Jennifer Rouse, Joashua F. "Joash" Schulman and Rosemary Wilson Council Members Absent: None May 12, 2026 1 AN ORDINANCE CREATING THE PEMBROKE SQUARE SPECIAL SERVICE DISTRICT 2 AND DEDICATING CERTAIN TAX REVENUE FROM THE PROJECT 3 4 WHEREAS, Pembroke Mall shopping complex opened in 1966, expanded in 1981, and announced 5 redevelopment plans in 2021 to create a mixed use multi-level development with senior housing, a hotel, 6 apartments,structured parking,and retail; 7 8 WHEREAS,in April 2022 the City Council approved an initial cost participation agreement for public parking 9 in furtherance of the redevelopment of Pembroke Mall; 10 11 WHEREAS,in July 2024 the revised term sheet was adopted by the City Council for the development of 745 12 structured parking in two garages and the project is expected to be completed by the summer of 2028;and 13 14 WHEREAS, as a part of the development and pursuant to the Code of Virginia, the City Council desires to 15 provide additional,more complete,and more timely services to the public parking garages and other public facilities 16 within the area by designating a special service district;and 17 18 WHEREAS, pursuant to the Code of Virginia,the City Council held a public hearing on April 15,2026; 19 20 NOW,THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH,VIRGINIA THAT: 21 22 1. A special service district known as the Pembroke Square Special Service District"The District"is hereby 23 created pursuant to the Code of Virginia §15.2-2400 and designated as such. 24 25 2. The District is bounded as depicted on the attached map labeled as"Exhibit A." 26 27 3. The District is created for the purpose of providing financing for additional, more complete, and more 28 timely governmental services to public facilities,to maintain public garages within the District, and to 29 pay for up to$5,500,000 towards the acquisition cost for parking units. 30 31 4. The Pembroke Square Special Service District Fund is hereby established to account for revenues 32 realized from additional taxes imposed on the District and for expenditures related to operating and 33 maintaining the public parking garages and for the more complete, and more timely governmental 34 services to public facilities as well as$5,500,000 in acquisition costs described above. 35 36 5. Pursuant to the authority contained in Code of Virginia§15.2-2403,there shall be levied and collected 37 for fiscal year 2027, taxes on all real estate within the Pembroke Square Special Service District, not 38 exempt from taxation, at the rate of forty-seven cents ($0.47) on each one hundred dollars ($100) of 39 assessed value thereof to fund the City's obligations to pay, either in whole or part,the expenses and 40 charges for providing and maintaining services and necessary facilities in the service district as 41 described in this ordinance.Such additional taxes may include an annual tax upon any property in the 42 service district which is subject to local taxation. 43 44 BE IT FURTHER ORDAINED,THAT: 45 46 The real estate revenues within The District in excess of the amount of such revenues generated on July 1, 47 2026,are hereby dedicated to the City's obligations for the acquisition cost for the parking units. Adopted by the Council of the City of Virginia Beach,Virginia,on theL day of May, 2026. APPROVED AS TO CONTENT: TO LEGAL SUFFICIENCY: C B dget and Management Services ey's Office r Special Service Districts w uj 4 z 1.4 14774656340000 14775616730000 O 2�.A 7'AA 14774664820000 G.AVOA02 Pembroke Mall 0 0 0 0 0 O CO 0 0% 0 ao N M O N n n � n 4774554260000 14774574830000 14775534840000 14775594250000 VIRGINIA BEACH BLVD 3/3/2026 SSD 0 Parcels 0 70 140 Pembroke Square SSD Parcels 14775649550000 14775534840000 13 ITEM—II.A.11 FY2026-27 OPERATING BUDGET ORDINANCES I RESOL UTION ITEM#78326 Upon motion by Vice Mayor Wilson, seconded by Council Member Ross-Hammond, City Council ADOPTED, BY CONSENT, Ordinance to DECLARE as SURPLUS $1-Million of funding within the Central Business District South Tax Increment Financing Fund (Town Center TIF) re FY2025-26 Operating Budget Voting: 11 - 0 Council Members Voting Aye: Michael F. Berlucchi, Stacy Cummings,Mayor Robert M.Dyer,Barbara M.Henley, David Hutcheson, Cal "Cash" Jackson-Green, Robert W. "Worth" Remick, Dr. Amelia N. Ross-Hammond, Jennifer Rouse, Joashua F. "Joash" Schulman and Rosemary Wilson Council Members Absent: None May 12, 2026 1 AN ORDINANCE TO DECLARE $1,000,000 OF FUNDING WITHIN THE 2 CENTRAL BUSINESS DISTRICT SOUTH TAX INCREMENT FINANCING 3 FUND AS SURPLUS WITHIN THE FY 2025-26 OPERATING BUDGET 4 5 WHEREAS, the Central Business District Tax Increment Financing Fund (Town Center TIF) was established 6 for the purpose of developing the Pembroke Area of the City and the Town Center Special Service District was 7 established to provide a funding source for the maintenance and enhanced services within Town Center;and 8 9 WHEREAS, an analysis of the Town Center TIF indicated that there is sufficient funding to meet the long 10 term obligations of the Fund and a separate analysis of the Town Center SSD has indicated that a $1,000,000 11 transfer would allow the City Council and City staff sufficient time to develop a sustainable funding plan for the 12 continued maintenance of Town Center;and 13 14 WHEREAS, $1,000,000 is available within the fund balance of the Town Center TIF. 15 16 NOW,THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA BEACH,VIRGINIA: 17 18 That$1,000,000 of funding within the Town Center TIF is hereby declared to be in excess of the long-term 19 obligations for the development of Town Center and is hereby declared surplus. 20 21 22 BE IT FURTHER ORDAINED:That the effective date of this ordinance shall be June 30, 2026. 23 24 Adopted by the Council of the City of Virginia Beach,Virginia,on this/t"Aday of May, 2026. APPR VED AS TO CONTENT: R VED TO LEGAL SUFFICIENCY: udget and Management Services ney's Office 14 ITEM—II.A.12 FY2026-27 OPERATING BUDGET ORDINANCES/RESOL UTION ITEM#7832 7 Upon motion by Vice Mayor Wilson, seconded by Council Member Ross-Hammond, City Council ADOPTED,BY CONSENT,Resolution to EXTEND the City/School Revenue Sharing Policy to June 30, 2027 Voting: 11 - 0 Council Members Voting Aye: Michael F. Berlucchi,Stacy Cummings,Mayor Robert M.Dyer,Barbara M. Henley, David Hutcheson, Cal "Cash" Jackson-Green, Robert W. "Worth" Remick, Dr. Amelia N. Ross-Hammond, Jennifer Rouse, Joashua F. "Joash" Schulman and Rosemary Wilson Council Members Absent: None May 12, 2026 1 A RESOLUTION TO EXTEND THE CITY/SCHOOL REVENUE SHARING POLICY 2 3 WHEREAS,the current City/School Revenue Sharing Policy was adopted on November 19, 2019, and is set 4 to expire on June 30, 2026 after being formally extended three times; 5 6 WHEREAS,the policy exists to establish a procedure for allocating local tax revenues between the City and 7 the Virginia Beach City Public Schools; 8 9 10 NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA BEACH,VIRGINIA,THAT: 11 12 Section 7.3 of the City/School Revenue Sharing Policy is hereby amended to change "June 30, 2026" to 13 "June 30, 2027."The City Council hereby directs the City Manager to engage with Virginia Beach City Public Schools 14 to revise this formula for the FY 2027-28 Budget and include language regarding health insurance premiums for city 15 and school employees to ensure to the greatest extent possible that employee premiums between the two bodies 16 remains the same on an annualized basis and that school premiums shall not be less than city premiums. Adopted by the Council of the City of Virginia Beach,Virginia, on the day of 2026. APPROVED AS TO CONTENT: APPROVED AS TO LEGAL SUFFICIENCY: udget and Management Services At ney's Office 15 ITEM—II.A.13 FY2026-27 OPERATING BUDGET ORDINANCES/RESOLUTION ITEM#78328 Upon motion by Vice Mayor Wilson, seconded by Council Member Ross-Hammond, City Council ADOPTED, BY CONSENT, Ordinance to ADD City Code Sections 2-500 and 2-501 re Department of Emergency Communications and Citizen Services Voting: 11 - 0 Council Members Voting Aye: Michael F. Berlucchi,Stacy Cummings,Mayor Robert M.Dyer,Barbara M.Henley, David Hutcheson, Cal "Cash" Jackson-Green, Robert W. "Worth" Remick, Dr. Amelia N. Ross-Hammond, Jennifer Rouse, Joashua F. `Joash" Schulman and Rosemary Wilson Council Members Absent: None May 12, 2026 1 AN ORDINANCE TO ADD SECTIONS 2-500 AND 2-501 TO THE CITY CODE TO 2 CREATE THE DEPARTMENT OF EMERGENCY COMMUNICATIONS AND CITIZEN 3 SERVICES AND TO SET FORTH THE FUNCTIONS THEREOF 4 5 SECTIONS ADDED: §§2-500 and 2-501 6 7 BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH,VIRGINIA: 8 9 That Sections 2-500 and 2-501 are hereby added to the Code of the City of Virginia Beach,Virginia,to read 10 as follows: 11 12 ARTICLE XXX.—DEPARTMENT OF EMERGENCY COMMUNICATIONS AND CITIZEN SERVICES 13 14 Sec.2-500.—Created;composition. 15 16 There is hereby created a department to be designated the department of emergency communications and 17 citizen services or ECCS, which shall consist of a director of the department and such other employees as may be 18 authorized by the city council. 19 20 Sec.2-501.—Functions. 21 22 The department of emergency communications and citizen services shall be responsible for providing 23 efficient, accurate, and professional processing of emergency, non-emergency, and informational requests The 24 department shall also be responsible for the provision of such other services as may be directed by the city manager. Adopted by the Council of the City of Virginia Beach,Virginia on the/ZA day of gjd" 2026. APPROVED AS TO CONTENT: ED AS TO LEGAL SUFFICIENCY: udget and Management Services rney's Office 16 ITEM—II.A.14 FY2026-27 OPERATING BUDGET ORDINANCES/RESOLUTION ITEM#78329 Upon motion by Vice Mayor Wilson, seconded by Council Member Ross-Hammond, City Council ADOPTED, BY CONSENT, Ordinance to AMEND City Code Sections 2-7 re Office of Volunteer Resources Voting: I1 - 0 Council Members Voting Aye: Michael F.Berlucchi,Stacy Cummings,Mayor Robert M.Dyer,Barbara M.Henley, David Hutcheson, Cal "Cash" Jackson-Green, Robert W. "Worth" Remick, Dr. Amelia N. Ross-Hammond, Jennifer Rouse, Joashua F. "Joash" Schulman and Rosemary Wilson Council Members Absent: None May 12, 2026 1 AN ORDINANCE TO AMEND CITY CODE RELATED TO THE OFFICE OF 2 VOLUNTEER RESOURCES 3 SECTIONS AMENDED: 2-7 4 BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH,VIRGINIA,THAT: 5 The following section of the City Code are hereby amended and reordained to read as follows: 6 Sec.2-7.-Office of volunteer resourcesi deFeGtOF 7 The office of volunteer resources shall promote volunteerism within city governmental agencies to enhance 8 the economic, educational, social and physical quality of the community and to support municipal services 9 valued by citizens of the city.The eity^ jai shall appeiRt a diFe.tee of the office of yel .,teeF r h 10 shall seFve at the pleasuFe ef the city coun6i and shall provide leadeFship and guidanGe f9F the PF9gFaFns and 12 13 Adopted by the Council of the City of Virginia Beach,Virginia,on the/day of 2026. APPROVED AS TO CONTENT: APPROVED AS TO LEGAL SUFFICIENCY: �LgjV4� B dget and Management Services City Attorney's Office 17 ITEM—II.A.15 FY2026-27 OPERATING BUDGET ORDINANCES/RESOLUTION ITEM#7833 0 Upon motion by Vice Mayor Wilson, seconded by Council Member Ross-Hammond, City Council ADOPTED, BY CONSENT, Ordinance to AMEND City Code Sections 2-187.1 and 2-199 re Budget Amendment Procedures Voting: 11 - 0 Council Members Voting Aye: Michael F.Berlucchi, Stacy Cummings,Mayor Robert M.Dyer,Barbara M.Henley, David Hutcheson, Cal "Cash" Jackson-Green, Robert W. "Worth" Remick, Dr. Amelia N. Ross-Hammond, Jennifer Rouse, Joashua F. "Joash" Schulman and Rosemary Wilson Council Members Absent: None May 12, 2026 1 AN ORDINANCE TO AMEND CITY CODE SECTIONS 2-187.1 AND 2-199 2 REGARDING BUDGET AMENDMENT PROCEDURES 3 SECTIONS AMENDED: 2-187.1 and 2-199 4 BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH,VIRGINIA,THAT: 5 The following sections of the City Code are hereby amended and reordained to read as follows: 6 Sec.2-187.1.-Budget amendment procedures. 7 (a) The city council may amend the budget from time to time to increase the aggregate amount to be 8 appropriated during the current fiscal year as shown in the currently adopted budget; provided, however, 9 that any such amendment which exceeds one (1) percent of the total revenue shown in the currently 10 adopted budget must be accomplished by publishing a notice of a meeting and a public hearing in the 11 manner set forth in Va. Code 15.2-2507 papeF having geneFal circulatien an the Gity at least 12 In (7)days PFi0F t the etin a-t 13 14 (b) The notice shall state the city's intent to amend the budget and include a brief synopsis of the proposed 15 budget amendment.Any such amendment may be adopted at the advertised meeting,after first providing 16 a public hearing during such meeting on the proposed budget amendment. 17 .... 18 Sec.2-199.-Same—Amendments. 19 20 (a) The city council may amend the capital improvement program and capital budget appropriation ordinance 21 from time to time to increase the aggregate amounts thereof, provide for supplemental appropriations 22 from available revenue,add or delete projects and transfer funds between projects. 23 24 (b) Supplemental appropriations to the capital budget shall be adopted by the vote of at least a majority of all 25 of the members of council. However, any such supplemental appropriation which exceeds one(1) percent 26 of the total revenue shown in the approved capital budget may only be accomplished after providing a 27 public hearing on the proposed amendment. Notice shall be given by publishing a notice of a meeting and 28 public hearing in the manner provided by Va. Code 15.2-2507 ispaper having geneFal 29 .The notice shall state 30 the council's intent to amend and include a brief synopsis of the proposed amendment. 31 32 (c) Subject to any applicable restrictions of law or restrictions of any bonds or bond issue,amendments which 33 do not require supplemental appropriations, but which involve additions or deletions of projects or in the 34 case of the capital improvement program an increase in the aggregate amount thereof, may be made 35 without requirement of a public hearing by a majority of all of the members of city council at the same 36 meeting at which such amendment is introduced. 37 Adopted by the Council of the City of Virginia Beach,Virginia,on theZg day of 19,2,V2026. APPROVED AS TO CONTENT: Le TO LEGAL SUFFICIENCY: udget and Management Servicess Office 18 ITEM—II.A.16 FY2026-27 OPERATING BUDGET ORDINANCES I RESOL UTION ITEM#78331 Upon motion by Vice Mayor Wilson, seconded by Council Member Ross-Hammond, City Council ADOPTED,BYCONSENT, Ordinance to AMEND City Code Sections 21-320 and 21-321 re parking and parking meters Voting: 11 - 0 Council Members Voting Aye: Michael F.Berlucchi, Stacy Cummings,Mayor Robert M.Dyer,Barbara M.Henley, David Hutcheson, Cal "Cash" Jackson-Green, Robert W. "Worth" Remick, Dr. Amelia N. Ross-Hammond, Jennifer Rouse, Joashua F. "Joash" Schulman and Rosemary Wilson Council Members Absent: None May 12, 2026 1 AN ORDINANCE TO AMEND CITY CODE SECTIONS 21-320 AND 21-321 2 REGARDING PARKING AND PARKING METERS 3 4 SECTIONS AMENDED:21-320 AND 21-321 5 6 BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH,VIRGINIA,THAT: 7 8 The following sections of the City Code are hereby amended and reordained to read as follows: 9 10 Sec.21-320.—Installation,maintenance,required signals,etc. 11 12 (a)The City Manager shall have the authority to provide for the installation or placing of parking meters 13 within the City and the regulation, control, operation and use thereof in accordance with the provisions of this 14 Division and shall maintain such meters in good working condition.SuEh .,.long meters shall be placed upon+"^ 15 . Each parking 16 meter shall be placed or set in such a manner as to show or display a signal that the parking space assigned to it 17 is or is not legally in use and to display, upon deposit of the proper coin of the United States of America therein, 18 a signal indicating legal parking time for the time allotted for such coin for the part of the street upon which such 19 meter is placed. Each meter shall be so arranged that, upon the expiration of such parking limit, or the portion 20 thereof for which the necessary coin or coins have been deposited, it will indicate, by mechanical operation and 21 proper signal,that the lawful parking period has expired. 22 23 (b)The term"parking meter"as it is used in this Chapter 21 shall be broadly construed to include parking 24 payment means and methods to include parking meters that are assigned to a street block of on-street parking 25 spaces, a parking zone as designated by appropriate signage, or a parking lot or other parking facility that allows 26 payment through a kiosk, mobile application, or other payment methodology. The City Manager shall cause 27 appropriate signage to be erected to allow persons parking to locate the relevant parking payment options. As 28 provided in Subsection d of Section 21-322,the term "coin" is to include all commercially acceptable methods of 29 payment. 30 31 Sec. 21-321.—Designation of and method of parking in meter spaces. 32 33 (a)The City Manager or such officers and employees of the City as he shall select shall place lines or 34 markings on the curb or in the street about or alongside of each parking meter installed pursuant to the 35 provisions of this Division,to designate the parking meter space for which such meter is to be used or such 36 block,zone, parking lot,or other parking facility as provided by Subsection b of Section 21-320. It shall be 37 unlawful for any person to park any vehicle in any such space, except within the lines and markings designating 38 such space. 39 40 41 vehir;le paFl(ed On such sparse shall be PaFked se that the feFeFnest PaFt ef such vehiGie shall be alongside of and 42 43 sidewalk, any vehicle paFI(ed On such paFI(iRg space shall be paFI(ed with the f9FeFn0st paFt Of SUGh 19Phir-AP 45 46 u The number of vehicles allowed to be parked in a designated parking space in a parking meter 47 zone shall be limited to one(1)vehicle per space. Adopted by the Council of the City of Virginia Beach,Virginia,on theOA of 2026. APP OVED AS TO CONTENT: A AS TO LEGAL SUFFICIENCY: udget and Management Services ' y ey's Office 19 ITEM—II.A.17 FY2026-27 OPERATING BUDGET ORDINANCES/RESOL UTION ITEM#78332 Upon motion by Vice Mayor Wilson, seconded by Council Member Ross-Hammond, City Council ADOPTED,BY CONSENT, Ordinance to AMEND City Code Section 2-83 re holidays Voting: 11 - 0 Council Members Voting Aye: Michael F. Berlucchi,Stacy Cummings,Mayor Robert M.Dyer,Barbara M.Henley, David Hutcheson, Cal "Cash" Jackson-Green, Robert W. "Worth" Remick, Dr. Amelia N. Ross-Hammond, Jennifer Rouse, Joashua F. "Joash" Schulman and Rosemary Wilson Council Members Absent: None May 12, 2026 1 AN ORDINANCE TO AMEND SECTION 2-83 OF THE CITY CODE 2 PERTAINING TO HOLIDAYS 3 SECTION AMENDED: §2-83 4 BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA BEACH,VIRGINIA: 5 6 1. That Section 2-83 of the Code of the City of Virginia Beach, Virginia is hereby amended and 7 reordained to read as follows: 8 9 Sec.2-83. Holidays. 10 11 (a). The City of Virginia Beach will follow official holidays as granted by the Commonwealth of Virginia as 12 codified in §2.2-3300 of the Code of Virginia and supplemented by the holiday policy promulgated by the 13 Virginia Department of Human Resources.All permanent and probational merit and non-merit employees, 14 with the exception of sworn Fire and Police Department staff,shall be covered by the provisions of this sub- 15 section. 16 17 (b) For sworn Fire and Police Department staff the observed holidays are: 18 19 {1)The first day of January(New Year's Day). 20 (2)The third Monday in January(Martin Luther King Day). 21 (3)The last Monday of May(Memorial Day). 22 (4)The nineteenth day of June(Juneteenth). 23 (5)The fourth day of July(Independence Day). 24 (6)The first Monday of September(Labor Day). 25 (7)The eleventh day of November(Veterans Day). 26 (8)The fourth Thursday of November(Thanksgiving Day). 27 (9)The day after the fourth Thursday of November(the day after Thanksgiving Day). 28 (10)The twenty-fourth day of December(Christmas Eve). 29 (11)The twenty-fifth day of December(Christmas Day). 30 (12) Three(3)flexible personal holidays(to be taken as a personal, national, religious or other holiday the 31 city does not observe). Part-time employees shall not be eligible for these holidays. 32 .... 33 34 2. The effective date of this ordinance is January 1, 2027. Adopted by the City Council of the City of Virginia Beach,Virginia on the ZZ day of May, 2026. APPROVED AS TO CONTENT: AS TO LEGAL SUFFICIENCY: 7 1 Budget and anagement Services ney' is 20 ITEM—II.B.1 FY2026-27 CAPTAL BUDGET ORDINANCES I RESOL UTION ITEM#78333 Upon motion by Vice Mayor Wilson, seconded by Council Member Ross-Hammond, City Council ADOPTED, BY CONSENT, Ordinance to ADOPT the FY2026-27 through FY2031-32 Capital Improvement Program (CIP) and APPROPRIATE$417,716,343 re FY2026-27 Capital Budget, subject to funds being provided from various sources set forth herein Voting: 11 - 0 Council Members Voting Aye: Michael F.Berlucchi,Stacy Cummings,Mayor Robert M. Dyer,Barbara M.Henley, David Hutcheson, Cal "Cash" Jackson-Green, Robert W. "Worth" Remick, Dr. Amelia N. Ross-Hammond, Jennifer Rouse, Joashua F. "Joash" Schulman and Rosemary Wilson Council Members Absent: None May 12, 2026 1 AN ORDINANCE TO ADOPT THE FY 2027 - FY 2032 CAPITAL 2 IMPROVEMENT PROGRAM AND TO APPROPRIATE FUNDS FOR THE FY 3 2026-27 CAPITAL BUDGET SUBJECT TO FUNDS BEING PROVIDED FROM 4 VARIOUS SOURCES SET FORTH HEREIN 5 WHEREAS,the City Manager,on March 24,2026,presented to City Council the Capital Improvement Program for Fiscal 6 Years 2026-27 through 2031-32; 7 8 WHEREAS,the City Council held a public hearing on the program to provide for public comment; 9 10 WHEREAS,the City Council has determined the need for certain projects in the Capital Improvement Program;and 11 12 WHEREAS, it is necessary to appropriate funds for both existing projects and projects beginning in Fiscal Year 2026-27, 13 as set forth in said Capital Improvement Program. 14 15 NOW,THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH,VIRGINIA THAT: 16 17 Section 1. The Capital Improvement Program, as modified, for the construction of, or addition to, capital facilities 18 identified for Fiscal Years '^26 2026-27 through '^�1 2031-32 is hereby adopted, and the projects listed therein are 19 hereby approved as capital projects. 20 21 Section 2. The projects shall be financed from funds to be appropriated periodically by City Council, and until funds 22 are so provided, the projects are for planning purposes only and may be deleted, altered, or rescheduled in any manner at 23 any time by City Council. 24 25 Section 3. Funds in the amounts aggregating $417,716,343 for capital projects in the Capital Budget for Fiscal Year 26 20zv 5 25 2026-27, as set forth in said Capital Improvement Program, are hereby appropriated, by project and subject to the 27 conditions set forth herein. The amount of funding for individual projects is set forth in "Attachment A —Capital Budget 28 Appropriations,"a copy of which is attached hereto. 29 30 Section 4. In accordance with Section 2-196 of the City Code, financing sources in support of the Capital Budget for 31 Fiscal Year 2025 26 2026-27 as set forth in said Capital Improvement Program is attached to this ordinance as "Attachment 32 B—Financing Sources." 33 34 Section S. Capital project funds appropriated in prior fiscal years are to be adjusted in accordance with said Capital 35 Improvement Program and reallocated as identified in "Attachment C—Transfers,"a copy of which is attached hereto. 36 37 Section 6. Reductions in financing sources in support of the Capital Budget for Fiscal Year 2025 26 2026-27 as set forth 38 in said Capital Improvement Program are attached to this ordinance as"Attachment D—Changes in Financing Sources." 39 40 , 41 " 42 Government Capital Pretest Fund"te fund 420"SteffnwateF Capital o t F ,, 43 44 SP-G-VOR 8. in accoFdanee with finaneial best pFaetiees $1,500,000 On pFevieusly apffGffiated federal funds te Capital 45 " is hereby Feduced and Feplar=ed with fund balance ef the GeReFal Fund. 46 47 Section .7. In accordance with best financial practices and to avoid arbitrage, previous appropriations from 48 authorized Public Facility 49 Revenue Bonds totaling$215,231 are hereby reduced and replaced with interest earned through the Virginia State Non- 50 Arbitrage Program (SNAP). 51 52 Section 448. Additional appropriations, the addition of capital projects, and changes in project scope shall not be 53 initiated except with the consent and approval of the City Council first being obtained. An appropriation for a project in the 54 Capital Improvement Program shall continue in force and,to the extent required by law,re-appropriated for use in Fiscal Year 55 '^2-26 2026-27 until the purpose for which it was made has been accomplished or abandoned. 56 57 Section 349. All contracts awarded for approved and appropriated capital projects,exclusive of school projects, must 58 be certified as to the availability of funds by the Director of Finance prior to the initiation of work on the contract. 59 60 Section -1410. Subject to any applicable restriction of law or of any bonds or bond issue, the City Manager or the 61 Director of Budget and Management Services is authorized to approve transfers of appropriations in an amount up to 62 $250,000 between capital projects as may best meet the needs of the City. The City Manager shall make a monthly report to 63 the City Council of all transfers between$25,000 and$250,000. The City Manager or the Director of Budget and Management 64 Services is hereby authorized to establish and administer the budgeting of capital projects consistent with best management 65 practices, reporting requirements and the Capital Improvement Program adopted by the City Council. 66 67 Section 3411. To ensure timely completion of water and sewer projects, appropriations for water and sewer 68 companion projects may be transferred between these projects by the City Manager (or designee). "Companion projects" 69 mean water and sewer projects having the same name or project scope and description with the exception of "water" or 70 "sewer" being in the title and/or project scope and description. 71 72 Section-1412.To ensure timely completion of Flood Protection projects,appropriations for companion projects within 73 the same "master project" may be transferred by the City Manager or his designee. "Master Project" refers to any of the 74 seven umbrella projects as identified within this document.These transfers will be reported to the Flood Protection Citizen 75 Oversight committee monthly. 76 77 Section 4-513.To ensure prompt construction contract execution and to mitigate the impacts of inflation on 78 authorized capital projects,transfers in excess of$250,000 may be made between capital projects within the same capital 79 improvement section if such additional funding is immediately needed to issue a construction contract.These transfers will be 80 reported to City Council monthly. To the extent practicable,any such transfer should not materially jeopardize the schedule 81 of the project from which the funds are transferred. 82 83 Section 4614. The City Manager or the Director of Budget and Management Services is hereby authorized to change, 84 subject to any applicable restriction of law or of any bonds or bond issue,the financing sources for the various capital projects 85 included in this or previous ordinances to reflect effective utilization of the financing sources and actual collections and/or 86 realized revenues. If the financing sources in support of capital projects decline,the City Manager or the Director of Budget 87 and Management Services is authorized to reduce,subject to any applicable restriction of law or of any bonds or bond issue, 88 those appropriations to equal the changed financing source. The City Manager must give prior notice to the City Council of 89 any reductions to total appropriations exceeding$250,000.The notice to City Council shall identify the basis and amount of 90 the appropriation reduction and the capital projects affected. The accounting records of the City will be maintained in a 91 manner where the total of financing sources is equal to the total appropriations for each of the City's capital projects funds. 92 93 Section 4-715. The Capital Improvement Program debt management policies contained and included in the Resource 94 Management Plan document shall be the policy guidelines of the City, and the City Manager shall annually report on the 95 status of those guidelines and the projected impact of the proposed Capital Improvement Program on those guidelines,such 96 information to be included in the Resource Management Plan submittal. The City Manager may propose modifications to 97 those policies and guidelines through the Resource Management Plan. 98 99 Section U16.Subject to the appropriation of sufficient funds within a capital project,the acquisition of real property 100 necessary for the project is authorized by means of voluntary negotiation with willing sellers. 101 102 Section 4917. Attachment B of this Ordinance includes $86,509,750 of funding using Public Facility Revenue Bonds 103 ("PFRB Financing"). "Attachment E Projects Utilizing Public Facility Revenue Bonds," attached hereto and incorporated, 104 provides a list of projects that include PFRB Funding and the amount of PFRB Funding for Fiscal Year'^�6 2026-27.Without 105 changing the amount of total PFRB Funding authorized by this Ordinance,the Director of Finance is authorized to adjust the 106 allocations and/or amounts among the projects to ensure that the tax-exempt status for any resulting bonds is retained. 107 108 Section 2018.Violation of this ordinance shall result in the City Manager taking disciplinary action against the person 109 or persons responsible for the capital project in which the violation occurred. 110 111 Section-24:19. If any portion of this ordinance is for any reason declared to be unconstitutional or invalid,such decision 112 shall not affect the validity of the remaining portions of this ordinance. 113 114 Section 2420. This ordinance shall be in effect from the date of its adoption; however, appropriations for the Fiscal 115 Year '^'�6 2026-27 Capital Budget shall be effective on July 1, 2025 2026. The tFa RsfeF of funding i Seetien 8 `hall be 116 . 117 118 Requires an affirmative vote of the majority of the members of City Council Adopted by the Council of the City of Virginia Beach,Virginia, on the/10tay of May,2026. APPROVED AS TO CONTENT: APPR VED AS TO LEGAL SUFFICIENCY: iBug�etancl Man gement Services City Attorney's Office City of Virginia Beach,Virginia Attachment A—Capital Budget Appropriations Project Appropriations Number Projects FY 2026-2027 Buildings&Assets 100047 Facilities Access Systems 425,000 100138 Convention Center Capital Maintenance 2,859,750 100165 Energy Performance Enhancements(City) II 550,000 100168 Euclid Yard Facility Replacement 1,500,000 100170 Facilities Planning Services 250,000 100175 Fire Apparatus IV 11,634,448 100176 Fire Facility Rehabilitation and Renewal III 1,000,000 100178 Fire Training Center Improvements IV 300,000 100203 Heritage Building Maintenance II 300,000 100225 Judicial Center Maintenance 70,000 100260 Beach Maintenance Facility 250,000 100392 City Security Enhancements 500,000 100437 VA Aquarium Bldg.Systems&Facility Infrastructure II 1,434,540 100445 Various Buildings HVAC Rehabilitation&Renewal IV 2,500,000 100446 Various Buildings Rehabilitation and Renewal IV 4,100,000 100463 Virginia Aquarium Renewal and Replacement III 600,000 100651 Critical Court Facility Safety and ADA Accessibility 20,200,000 100652 Mounted Police Maintenance and Repair 2,000,000 100699 Virginia Beach Sports Center Maintenance 2,000,000 100729 Public Safety Equipment Replacement II 4,095,848 100742 Dome Maintenance 3,000,000 100743 Public Works Operations Yard Improvement Project 300,000 100744 SCBA Replacement 10,000,000 100746 Municipal Center Building Renovations 5,000,000 100747 Human Services Building Renovations 880,000 100748 Library Building Renovations 3,600,000 100749 Virginia Aquarium Modification 3,000,000 Total Buildings&Assets Projects 82,349,586 Coastal 100030 Bay Beaches Restoration 125,000 100038 Beach Replenishment II 2,275,000 100142 Croatan Beach Restoration 78,000 100149 Dredge Operations Rehab and Modifications 225,000 100258 Lynnhaven Inlet Maintenance Dredging II 375,000 100277 Chesopeian Colony Neighborhood Dredging II 1,517,796 100344 Rudee Inlet Federal Dredging II 600,000 100345 Rudee Inlet Outer Channel Maintenance Dredging II 650,000 100349 Sandbridge Beach Access Improvements II 400,000 100643 Schilling Point Neighborhood Dredging II 85,000 100726 Various Minor Dredging Projects III 500,000 Total Coastal Projects 6,830,796 Economic&Tourism Development 100048 Burton Station Road Improvements 111 6,900,000 Project Appropriations Number Projects FY 2026-2027 100059 Resort Parking District 25,000,000 100157 Economic Development Investment Program II 1,228,311 100285 Oceanfront Parking Facilities Capital Maintenance/Development II 612,500 100420 Town Center Garage and Plaza Capital Maintenance II 2,429,426 100421 Town Center Reinvestment 150,000 100456 Virginia Beach Amphitheater Capital Maintenance 200,000 100686 Pembroke Square Public Parking 5,500,000 100727 Oceanfront Capital Projects Reinvestment II 850,000 100728 Strategic Development Projects II 300,000 Total Economic&Tourism Development Project! 43,170,237 Flood Protection 100062 Central Resort District Drainage Improvements 11,000,000 100167 Eastern Shore Drive Lynnhaven Colony Park Pump Station 8,333,333 100418 The Lakes-Holland Road Gate 764,367 100487 Windsor Woods Pump Station 2,667,492 100512 USACE Regional Coastal Storm Risk Management Study 1,622,000 100516 Bow Creek Stormwater Park 1,000,000 100517 Princess Anne Plaza North London Bridge Creek Pump Station 4,294,584 100521 The Lakes South London Bridge Creek Channels and Gate 1,805,876 100548 Pungo Ferry Road Improvements 1,000,000 100553 Windsor Woods-Thalia Creek/Lake Trashmore Imp. 1,065,246 100578 Stormwater Project Administration 1,000,000 100582 Stormwater Infrastructure Cost Participation 2,000,000 100604 The Lakes Flood Barriers 294,637 100605 Windsor Woods Flood Barriers 149,978 Total Flood Protection Projects 36,997,513 Information Technology 100083 Cable Access Infrastructure Replacement II 140,000 100084 City Software Upgrade/Replacement Plan 1,944,146 100087 Communications Infrastructure Replacement III 626,801 100107 Network Infrastructure Replacement III 5,182,073 100110 Police Oceanfront Cameras 250,000 100574 Courts Technology System Sustainment 250,000 100618 Revenue Management System Sustainment 250,000 100694 Enterprise Audio Visual Lifecycle&Support 275,000 100697 Business and Personal Property Tax&Departmental Revenue Management System 200,000 100698 Cardiac Monitor Replacement 420,352 100703 IT Service Continuity III 480,613 100704 Maintain and Secure Corporate Data II 1,777,101 100705 Next Generation Network II 250,000 Total Information Technology Project! 12,046,086 Parks&Recreation 100256 Lynnhaven Marina and Boat Ramp Facilities Repairs/Reno 350,000 100393 Sportsplex/Field Hockey National Training Ctr Rep/Reno 1 726,135 100632 Park Infrastructure Replacement&Underdeveloped Park Improvements 4,150,000 100644 Virginia Beach Trail Phase 1 3,129,170 100706 Athletic Fields Lighting and Renovations IV 275,000 Project Appropriations Number Projects FY 2026-2027 100707 Bikeways/Trails Repairs and Renovations II 280,000 100708 City Bikeways and Trails Plan Implementation III 1,000,000 100709 Community Recreation Centers Repairs and Renovations IV 2,000,000 100710 Golf Courses Contractual Obligations-Maintenance II 97,000 100711 Greenways,Scenic Waterways and Natural Areas IV 250,000 100712 Park Playground Renovations IV 1,191,309 100713 Parks and Special Use Facilities Development/Reno IV 2,300,000 100714 Tennis Court Renovations IV 300,000 Total Parks&Recreation Project! 16,048,614 Roadways 100057 Centerville Turnpike Phase II 788,603 100123 Cleveland Street Improvements IV 1,013,828 100211 1-264/Independence Interchange Improvements 10,000,000 100243 Laskin Road Phase III 3,227,150 100278 Nimmo Parkway VII-B 9,499,656 100348 Rural Road Recurring Flooding,SLR&Resiliency 500,000 100422 Traffic Calming 250,000 100482 Independence Blvd/Edwin Drive Intersection 6,038,863 100502 Citywide Street Lighting Improvements III 70,000 100522 Traffic Signal Retiming II 1,063,000 100564 Holland Road Phase 1 8,447,557 100565 Holland Road Phase II 1,455,762 100568 Northampton Blvd/Diamond Springs Road 8,843,911 100634 Construction Engineering and Inspection (CEI) Program 3,500,000 100646 Indian River Rd/Thompkins Lane Intersection 650,000 100647 Independence Blvd/Pleasure House Rd Intersection 966,206 100648 General Booth Boulevard/Dam Neck Rd Intersection 1,500,000 100649 Providence Road 1,500,000 100650 Clearfield Avenue 6,000,000 100660 Indian River Road Safety Improvements 9,181,617 100672 North Great Neck Road Bridge Rehabilitation 573,102 100682 Woodstock Road Sidewalk 2,798,930 100683 Leading Pedestrian Interval Intersection Improvements 100,000 100691 Transportation Network Analysis 250,000 100692 Virginia Beach Blvd&Independence Blvd Ped Crossings 1,023,734 100702 Lookout Road Sidewalk 622,153 100730 Traffic Safety Improvements V 786,946 100731 Bus Stop Infrastructure and Accessibility Improvements II 250,000 100732 Major Bridge Rehabilitation III 886,898 100733 Rural Road Improvements III 250,000 100734 Street Reconstruction III 3,450,000 100735 Traffic Signal Rehabilitation III 2,900,000 100751 Citywide Sidewalk Program 3,122,976 100752 Kings Grant Sidewalk 50,000 Total Roadways Projects 91,560,892 Schools 601001 Renovation and Replacement Energy Management/Sustainability 2,810,000 Project Appropriations Number Projects FY 2026-2027 601002 Tennis Court Renovations-Phase II 240,000 601015 Princess Anne High School(Renovation/Modernization) 3,970,000 601016 Energy Performance Contracts-Phase II 2,500,000 601017 Renovations and Replacements-Grounds III 5,740,000 601018 Renovations and Replacements-HVAC III 29,490,000 601019 Renovations and Replacements-Reroofing III 9,890,000 601020 Renovations and Replacements-Various III 5,830,000 601022 Elementary School Playground Equipment Replacement 290,000 601027 Renovations and Replacements-Safe School Improvements 240,000 601033 Comprehensive Long Range Facilities Master Plan Update 800,000 601034 School Cable Access Infrastructure 140,000 Total Schools Projects 61,940,000 Sewer Utility 100327 Pump Station Program VI 10,170,000 100361 Sanitary Sewer System Revitalization Program III 6,500,000 100371 Sewer Pump Repairs and Replacements 1,000,000 100374 Sewer Tap Installation Program II 600,000 100440 Vacuum Valve Monitoring System 1,600,000 100519 Sanitary Sewer Force Main Rehabilitation 1 3,325,000 100525 Landstown Yard Improvements IV 25,000 100526 Utilities Technology Support Program 200,000 Total Sewer Utility Projects 23,420,000 Stormwater 100043 BMP Maintenance Program Phase 1 1,000,000 100053 Canal Management Phase 1 500,000 100161 Elizabeth River Watershed 500,000 100263 Lynnhaven River Basin Ecosystem Restoration Project 350,000 100264 Lynnhaven River Watershed Water Quality Projects II 222,618 100515 Enhanced Neighborhood Rehabilitation-Phase 1 1,236,349 100543 Lake Edward Water Quality Improvement Project 500,000 100566 Chatham Hall Water Quality Improvement Project 1,650,000 100668 Bellamy Woods Water Quality Improvement Project 650,000 100671 Brigadoon Park Water Quality Improvement Project 825,000 100715 Lake Management III 3,307,611 100716 Oceanfront Stormwater Facilities Maintenance II 4,650,000 100717 Primary System Infrastructure Improvements III 1,520,000 100718 Residential Drainage Cost Participation Program III 50,000 100719 Southern Canal/Lead Ditch and Culvert Improvements II 2,390,000 100720 Southern Rivers Watershed II 375,000 100721 Stormwater Pump Station Modifications II 1,250,000 100722 Stormwater Quality Enhancements III 1,200,000 100723 Surface Water Regulatory Compliance Program II 1,700,000 100724 SW Infrastructure Rehabilitation&Improvements III 5,140,041 100725 Water Quality Cost Participation Projects III 250,000 Total Stormwater Projects 29,266,619 Water Utility 100230 Lake Gaston Raw Water Transmission System Rehabilitation 1 60,000 Project Appropriations Number Projects FY 2026-2027 100238 Landstown Yard Improvements IV 25,000 100303 Pembroke Meadows Neighborhoods Water Rehabilitation 4,000,000 100432 Utilities Technology Support Program 200,000 100470 Water Line Extension, Replacement&Rehab Program II 2,584,000 100471 Water Pump Repairs and Replacements 322,000 100478 Water Tap Installation Program II 600,000 100479 Water Transmission System Upgrade Program II 1,195,000 100640 Stumpy Lake Dam Improvements 2,600,000 100685 Water Meter Replacement Program 2,000,000 100701 Princess Anne Road Water Transmission Main 500,000 Total Water Utility Projects 14,086,000 Total Capital Budget 417,716,343 City of Virginia Beach,Virginia Attachment B-Financing Sources Capital Budget Financing Sources FY 2026-2027 Charter Bonds 73,780,192 Federal Contribution 22,802,919 Franchise Fees 280,000 Fund Balance-General Fund 30,373,005 Fund Balance-Parks&Recreation 1,000,000 Fund Balance-Schools 10,000,000 Fund Balance-Tourism Investment Program 3,000,000 Loan from Virginia Resources Authority 8,333,333 Miscellaneous Funding 97,727 PAYGO-Agricultural Reserve Program 1,490,000 PAYGO-Boat Fee 2,359,470 PAYGO-Chesopeian Colony 1,131,000 PAYGO-Cigarette Tax 1,228,311 PAYGO-EMS Billing 420,352 PAYGO-Fire Programs 300,000 PAYGO-Flood Protection 4,336,301 PAYGO-General Fund 52,614,792 PAYGO-Major Projects Fund 12,310,787 PAYGO-Open Space 500,000 PAYGO-Outdoor Initiative 4,016,309 PAYGO-Parking Enterprise 612,500 PAYGO-Parks&Recreation 1,000,000 PAYGO-Sandbridge 400,000 PAYGO-Schilling Point 85,000 PAYGO-Schools 5,000,000 PAYGO-Storm Water 17,275,898 PAYGO-Tourism Advertising Program 500,000 PAYGO-Tourism Investment Program 3,050,000 PAYGO-Town Center 502,726 PAYGO-Water&Sewer 8,000,000 PAYGO-Town Center TIF 2,076,700 Private Contribution 536,796 Public Facility Bonds 86,509,750 Retained Earnings-Storm Water 2,000,000 Retained Earnings-Water&Sewer 7,000,000 Speed Enforcement 4,208,029 State Contribution 13,354,464 Storm Water Utility Bonds 12,723,982 Water&Sewer Bonds 22,506,000 Total Capital Budget 417,716,343 City of Virginia Beach, Virginia Attachment C - Transfers Appropriations Prior Project# to FY 2026-27 Parks and Recreation 100708 City Bikeways&Trails Plan Implementation III 228,439 100632 Park Infrastructure Replacement& Underdeveloped Park Improv 788,974 Total Transfer To: $ 1,017,413 Transfer From: 100190 Foxfire Trail Pedestrian Bridge 228,439 100289 Open Space Park Infrastructure Development& Maintenance 788,974 Total Transfer From: $ 1,017,413 Roadways Transfer To: 100529 Elbow Road Extended Phase II-B 9,729,174 100057 Centerville Turnpike Phase II 15,005,800 100730 Traffic Safety Improvements V 4,033,026 100159 Elbow Road Extended Phase II-C 1,598,284 100646 Indian River Rd/Thompkins Lane Intersection Imp. 187,635 100683 Leading Pedestrian Interval Intersection Improvements 78,864 100692 Virginia Beach Blvd& Independence Blvd Ped Crossings 181,127 Total Transfer To: $ 30,813,910 Transfer From: 100205 Holland Road Phase VI 138,954 100058 Centerville Turnpike Phase III 15,005,800 100423 Traffic Safety Improvements IV 4,033,026 100554 Independence Blvd/Columbus St Pedestrian Improvements 51,297 100217 Indian River Road Phase VII-A 9,729,174 100213 Indian River Road Phase VII-B 1,598,284 100214 Indian River Road/Kempsville Road Intersection 27,567 100483 West Neck Road Phase IV 229,808 Total Transfer From: $ 30,813,910 Miscellaneous Transfer To: 100074 21st Century Enterprise Resource Planning(HCM) 2,440,000 100745 Police Technology Sustainment 1,481,446 100729 Public Safety Equipment Replacement II 71,882 100677 Waste Management Facility Replacement 3,048,095 100214 Indian River/Kempsville Improvements 1,690,695 100318 Princess Anne VII 3,108,417 Total Transfer To: $ 11,840,535 Transfer From: 100291 Operations Facility Renovations 6,421,732 City of Virginia Beach, Virginia Attachment C - Transfers Appropriations Prior Project# to FY 2026-27 100503 Judicial Center Escalator Replacement 3,296,027 100152 Eastern Branch Lynnhaven River Dredging 229,065 100552 Western Branch Lynnhaven River Dredging 412,265 100580 Gunshot Detection 1,070,830 100581 Crime Prevention Through Environmental Design 410,616 Total Transfer From: $ 11,840,535 City of Virginia Beach, Virginia Attachment D - Reductions in Funding Amount of Reduction in Appropriations Project# Prior to FY2026-27 Funding Source 100669 Oceana Gardens $ (396,229.00) State Revenue 100058 Centerville Phase III $ (6,000,000.00) Federal Revenue 100423 Traffic Safety Improvements IV $ (281,445.80) State Revenue 100401 Street Reconstruction II $ (606,019.00) State Revenue 100300 Atlantic Avenue Street Improvements $ (6,800,000.00) Public Facility Revenue Bonds 100214 Indian River/Kempsville Improvements $ (2,061,194.00) State/Federal Revenue 100318 Princess Anne VII $ (3,728,743.65) State/Federal Revenue Total Reduction:—$ (19,873,631) City of Virginia Beach, Virginia Attachment E - Projects Utilizing Public Facility Revenue Bonds Summary of Public Facility Bonds: 601016 Energy Performance Contracts Phase II (115 School Operating) $ 2,500,000 601015 Princess Anne High School Replacement (115 School Operating) $ 12,000,000 100165 Energy Performance Contracts II (100 General Fund) $ 550,000 100048 Burton Station Road Improvements III (100 General Fund) $ 6,900,000 100686 Pembroke Square Public Parking(255 Pembroke Square SSD) $ 5,500,000 100059 Resort Parking District(241 TIP Fund) $ 25,000,000 100318 Convention Center Capital Maintenance (241 TIP Fund) $ 2,859,750 100062 Central Resort District Drainage(150 Flood Protection Fund) $ 11,000,000 100651 Critical Court Facility Safety and ADA Accessibility(242 Major Projects) $ 20,200,000 $ 86,509,750 Note:The fund responsible for the debt service as a result of the issuance of bonds in these amounts is shown in parentheses next to the project title. 21 ITEM—HB.2 FY2026-27 CAPTAL BUDGET ORDINANCES/RESOL UTION ITEM#78334 Upon motion by Vice Mayor Wilson, seconded by Council Member Ross-Hammond, City Council ADOPTED, BY CONSENT, Ordinance to AUTHORIZE the issuance of General Obligation Public Improvement Bonds in the maximum amount of$66,927,365 re various public facilities and general improvements Voting: 11 - 0 Council Members Voting Aye: Michael F.Berlucchi, Stacy Cummings,Mayor Robert M. Dyer,Barbara M.Henley, David Hutcheson, Cal "Cash" Jackson-Green, Robert W. "Worth" Remick, Dr. Amelia N. Ross-Hammond, Jennifer Rouse, Joashua F. "Joash" Schulman and Rosemary Wilson Council Members Absent: None May 12, 2026 1 AN ORDINANCE AUTHORIZING THE ISSUANCE OF GENERAL 2 OBLIGATION PUBLIC IMPROVEMENT BONDS OF THE CITY OF 3 VIRGINIA BEACH,VIRGINIA, IN THE MAXIMUM AMOUNT OF 4 $66,927,365 FOR VARIOUS PUBLIC FACILITIES AND GENERAL 5 IMPROVEMENTS 6 WHEREAS, the City of Virginia Beach, Virginia (the "City'), desires to authorize the issuance of general 7 obligation public improvement bonds for various purposes in the maximum amount of$66,927,365 as permitted by 8 the City Charter,without submitting the question of their issuance to the qualified voters;and 9 10 WHEREAS, City Council held a public hearing on the General Obligation Debt Authorization to provide for 11 public comment. 12 13 NOW,THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH,VIRGINIA THAT: 14 15 1. It is hereby determined to be necessary and expedient for the City to construct and improve various public 16 facilities and make general improvements, all of which will promote the public welfare of the City and its inhabitants 17 and will facilitate the orderly growth, development, and general welfare of the City, and to finance the costs thereof 18 through the borrowing of up to$66,927,365 and issuing the City's general obligation bonds therefore. 19 20 2. Pursuant to the City Charter and the Public Finance Act of 1991(§15.2-2600 et seq.of the Code of Virginia), 21 there are hereby authorized to be issued general obligation public improvement bonds of the City in the maximum 22 amount of $66,927,365 to provide funds, together with other funds that may be available, for various public 23 improvement projects, including School, Roadway, Coastal, Economic and Tourism, and Building projects,for project 24 activities that include, but are not limited to, the following: preliminary studies and surveys, permit compliance, 25 environmental assessment, planning, design, engineering, site acquisition, relocation of residents, utility relocation, 26 construction, renovation, expansion, repair, demolition, site improvement, site work, legal services, inspection and 27 support services,furniture and equipment,and contingencies. 28 29 3. The bonds may be issued as a separate issue at one time or in part from time to time or combined with 30 bonds authorized for other purposes and sold as part of one or more combined issues of public improvement bonds. 31 32 4. The bonds shall bear such date or dates, mature at such time or times not exceeding 40 years from their 33 dates,bear interest,be in such denominations and form,be executed in such manner and be sold at such time or times 34 and in such manner as the Council may hereafter provide by appropriate resolution or resolutions. 35 36 5. The bonds shall be general obligations of the City for the payment of the principal, premium, if any, and 37 interest on which its full faith and credit shall be irrevocably pledged. 38 39 6. The City Clerk is directed to make a copy of this ordinance continuously available for inspection by the 40 general public during normal business hours at the City Clerk's office from the date of adoption hereof through the 41 date of the issuance of the Bonds. 42 43 7. The City Clerk, in collaboration with the City Attorney, is authorized and directed to immediately file a 44 certified copy of this ordinance with the Clerk of the Circuit Court of the City of Virginia Beach. 45 46 8. This ordinance shall be in full force and effective from its passage. 47 48 Adoption requires the affirmative vote of two-thirds of all members of the City Council. Adopted by the Council of the City of Virginia Beach,Virginia,on the/ OA day of May, 2026. APPROVED AS TO CONTENT: D AS TO LEGAL SUFFICIENCY: udget and Management Services orney's Office 22 ITEM—II.B.3 FY2026-27 CAPTAL BUDGET ORDINANCES I RESOL UTION ITEM#78335 Upon motion by Vice Mayor Wilson, seconded by Council Member Ross-Hammond, City Council ADOPTED, BY CONSENT, Ordinance to AUTHORIZE the issuance of General Obligation Public Improvement Bonds in the maximum amount of$5,900,000 re flood protection Voting: 11 - 0 Council Members Voting Aye: Michael F. Berlucchi, Stacy Cummings,Mayor Robert M.Dyer,Barbara M. Henley, David Hutcheson, Cal "Cash" Jackson-Green, Robert W. "Worth" Remick, Dr. Amelia N. Ross-Hammond, Jennifer Rouse, Joashua F. "Joash" Schulman and Rosemary Wilson Council Members Absent: None May 12, 2026 1 AN ORDINANCE AUTHORIZING THE ISSUANCE OF GENERAL 2 OBLIGATION PUBLIC IMPROVEMENT BONDS OF THE CITY OF 3 VIRGINIA BEACH,VIRGINIA, IN THE MAXIMUM AMOUNT OF 4 $5,900,000 FOR FLOOD PROTECTION 5 6 WHEREAS, the City of Virginia Beach, Virginia (the "City"), desires to authorize the issuance of general 7 obligation public improvement bonds for flood protection in the maximum amount of$5,900,000,as permitted by the 8 City Charter,without submitting the question of their issuance to the qualified voters;and 9 10 WHEREAS, the City of Virginia Beach established lockbox for general ob►igation bonds following the passage 11 of the November 2021 Bond Referendum for Flood Protection whereby all future charter bond capiacity would be 12 retricted for future flood protection projects;and, 13 14 WHEREAS, City Council held a public hearing on the General Obligation Debt Authorization to provide for 15 public comment. 16 17 NOW,THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH,VIRGINIA THAT: 18 19 1. It is hereby determined to be necessary and expedient for the City to construct and improve flood 20 protection, to promote the public welfare of the City and its inhabitants and will facilitate the orderly growth, 21 development, and general welfare of the City, and to finance the costs thereof through the borrowing of up to 22 $5,900,000 and issuing the City's general obligation bonds therefore. 23 24 2. Pursuant to the City Charter and the Pubic Finance Act of 1991(§15.2-2600 et seq.of the Code of Virginia), 25 there are hereby authorized to be issued general obligation public improvement bonds of the City in the maximum 26 amount of $5,900,000 to provide funds, together with other funds that may be available, for various public 27 improvement projects related to flood protection, for project activities that include, but are not limited to, the 28 following: preliminary studies and surveys, permit compliance, environmental assessment, planning, design, 29 engineering, site acquisition, relocation of residents, utility relocation, construction, renovation, expansion, repair, 30 demolition,site improvement,site work,legal services,inspection and support services,furniture and equipment,and 31 contingencies. 32 33 3. The bonds may be issued as a separate issue at one time or in part from time to time or combined with 34 bonds authorized for other purposes and sold as part of one or more combined issues of public improvement bonds. 35 36 4. The bonds shall bear such date or dates, mature at such time or times not exceeding 40 years from their 37 dates,bear interest,be in such denominations and form, be executed in such manner and be sold at such time or times 38 and in such manner as the Council may hereafter provide by appropriate resolution or resolutions. 39 40 5. The bonds shall be general obligations of the City for the payment of the principal, premium, if any, and 41 interest on which its full faith and credit shall be irrevocably pledged. 42 43 6. The City Clerk is directed to make a copy of this ordinance continuously available for inspection by the 44 general public during normal business hours at the City Clerk's office from the date of adoption hereof through the 45 date of the issuance of the Bonds. 46 47 7. The City Clerk, in collaboration with the City Attorney, is authorized and directed to immediately file a 48 certified copy of this ordinance with the Clerk of the Circuit Court of the City of Virginia Beach. 49 50 8. This ordinance shall be in full force and effective from its passage. 51 52 Adoption requires the affirmative vote of two-thirds of all members of the City Council. 53 Adopted by the Council of the City of Virginia Beach,Virginia,on the/ of May, 2026. APPROVED AS TO CONTENT: AP P AS TO LEGAL SUFFICIENCY: B Ldgetand Management Services C' orney's Office 23 ITEM—II.B.4 FY2026-27 CAPTAL BUDGET ORDINANCES I RESOL UTION ITEM#7833 6 Upon motion by Vice Mayor Wilson, seconded by Council Member Ross-Hammond, City Council ADOPTED, BY CONSENT, Ordinance to AUTHORIZE the issuance of Stormwater Utility System Revenue Bonds in the maximum amount of$21,057,31 S Voting: 11 - 0 Council Members Voting Aye: Michael F.Berlucchi, Stacy Cummings,Mayor Robert M. Dyer,Barbara M.Henley, David Hutcheson, Cal "Cash" Jackson-Green, Robert W. "Worth" Remick, Dr. Amelia N. Ross-Hammond, Jennifer Rouse, Joashua F. "Joash" Schulman and Rosemary Wilson Council Members Absent: None May 12, 2026 1 AN ORDINANCE AUTHORIZING THE ISSUANCE OF STORMWATER 2 UTILITY SYSTEM REVENUE BONDS AND LOAN PROCEEDS FOR THE CITY 3 OF VIRGINIA BEACH, VIRGINIA, IN THE MAXIMUM AMOUNT OF 4 $21,057,315 5 WHEREAS, the City of Virginia Beach, Virginia (the "City"), desires to authorize the issuance of stormwater utility 6 system revenue bonds in the maximum amount of$12,723,982 and$8,333,333 in loan proceeds for financing improvements 7 and expansions to the City's stormwater utility system (the "System"), as permitted by the City Charter without submitting 8 the question of their issuance to the qualified voters;and 9 10 WHEREAS,City Council held a public hearing on the Stormwater Utility Debt Authorization to provide for public 11 comment. 12 13 NOW,THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH,VIRGINIA THAT: 14 15 1. It is hereby determined to be necessary and expedient for the City to continue its program of improving and 16 extending the System, which will promote the public welfare of the City and its inhabitants and will facilitate the orderly 17 growth,development,and general welfare of the City,and to finance the costs thereof through the borrowing of$21,057,315 18 and issuing the City's revenue bonds therefore. 19 20 2. Pursuant to the City Charter and the Public Finance Act of 1991(§15.2-2600 et seq.of the Code of Virginia),there 21 are hereby authorized to be issued stormwater utility system revenue bonds of the City in the maximum amount of 22 $12,723,982 to provide funds,together with other available funds,for financing the costs of improvements and expansions 23 to the System. 24 25 3. Pursuant to the City Charter and the Public Finance Act of 1991 (§ 15.2-2600 et seq.of the Code of Virginia) and 26 § 10.1-603.25"Virginia Community Flood Preparedness Fund:loan and grant program"of the Code of Virginia,$8,333,333 in 27 loan proceeds are hereby authorized to be issued for stormwater improvements in the Eastern Shore Drive flood protection 28 master project. 29 30 -4. The bonds shall bear such date or dates, mature at such time or times not exceeding 40 years from their dates, 31 bear interest,be in such denominations and form, be executed in such manner and be sold at such time or times and in such 32 manner as the Council may hereafter provide by appropriate resolution or resolutions. 33 34 45. The System is an undertaking from which the City may derive a revenue. The bonds shall be limited obligations 35 of the City,payable as to principal,premium,if any,and interest solely from the revenues derived by the City from the System, 36 and shall not be included within the otherwise authorized indebtedness of the City. The bonds shall not be deemed to create 37 or constitute an indebtedness of,or a pledge of the faith and credit of,the Commonwealth of Virginia or of any county, city, 38 town,or other political subdivision of the Commonwealth,including the City. The issuance of the bonds and the undertaking 39 of the covenants,conditions,and agreements to be contained in resolutions to be adopted or agreements to be entered into 40 hereafter shall not directly,indirectly,or contingently obligate the Commonwealth,the City,or any other political subdivision 41 of the Commonwealth to levy and collect any taxes whatsoever or make any appropriation therefore except from the 42 revenues pledged to the payment of the principal of and premium, if any, and interest on the bonds. 43 44 -56. Such resolutions to be adopted and agreements to be entered into hereafter authorizing the issuance of the 45 bonds and providing the details thereof shall contain appropriate covenants requiring the City to fix,charge,and collect such 46 rates, fees, and other charges for the use of and the services furnished by the System and to revise the same from time to 47 time and as often as shall be necessary so as to produce sufficient net revenues to pay principal of and premium, if any, and 48 interest on the bonds as the same become due and to provide a margin of safety therefore. Such resolutions and agreements 49 shall also include such additional covenants,agreements,and other terms as are customary for the protection of the holders 50 of stormwater revenue obligations. 51 52 67. The City Clerk is directed to make a copy of this ordinance continuously available for inspection by the general 53 public during normal business hours at the City Clerk's office from the date of adoption hereof through the date of the 54 issuance of the bonds. 55 56 -78. The City Clerk, in collaboration with the City Attorney, is authorized and directed to immediately file a certified 57 copy of this ordinance with the Clerk of the Circuit Court of the City of Virginia Beach. 58 59 99. This ordinance shall be in full force and effect from its passage. Requires the affirmative vote of a majority of all members of the City Council. Adopted by the Council of the City of Virginia Beach,Virginia, on the attay of May, 2026. APPROVED AS TO CONTENT: APPROVED AS TO LEGAL SUFFICIENCY: < - Budget and Management Services Le y's Office 24 ITEM—ILB.5 FY2026-27 CAPTAL BUDGET ORDINANCES I RESOL UTION ITEM#7833 7 Upon motion by Vice Mayor Wilson, seconded by Council Member Ross-Hammond, City Council ADOPTED, BY CONSENT, Ordinance to AUTHORIZE the issuance of Water and Sewer System Revenue Bonds in the maximum amount of$22,506,000 Voting: 11 - 0 Council Members Voting Aye: Michael F. Berlucchi, Stacy Cummings,Mayor Robert M.Dyer,Barbara M.Henley, David Hutcheson, Cal "Cash" Jackson-Green, Robert W. "Worth" Remick, Dr. Amelia N. Ross-Hammond, Jennifer Rouse, Joashua F. "Joash" Schulman and Rosemary Wilson Council Members Absent: None May 12, 2026 I AN ORDINANCE AUTHORIZING THE ISSUANCE OF WATER AND SEWER 2 SYSTEM REVENUE BONDS OF THE CITY OF VIRGINIA BEACH,VIRGINIA,IN 3 THE MAXIMUM AMOUNT OF$22,506,000 4 4 WHEREAS, the City of Virginia Beach, Virginia (the "City'), desires to authorize the issuance of water and sewer 5 system revenue bonds in the maximum amount of$22,506,000 for financing improvements and expansions to the City's 6 water and sewer system (the "System"), as permitted by the City Charter without submitting the question of their issuance 7 to the qualified voters;and 8 9 WHEREAS,City Council held a public hearing on the Water and Sewer Revenue Bond Authorization to provide for public 10 comment. 11 12 NOW,THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH,VIRGINIA THAT: 13 14 1. It is hereby determined to be necessary and expedient for the City to continue its program of improving and 15 extending the System, which will promote the public welfare of the City and its inhabitants and will facilitate the orderly 16 growth,development,and general welfare of the City,and to finance the costs thereof through the borrowing of$22,506,000 17 and issuing the City's revenue bonds therefore. 18 19 2. Pursuant to the City Charter and the Public Finance Act of 1991(§15.2-2600 et seq.of the Code of Virginia),there 20 are hereby authorized to be issued water and sewer utility system revenue bonds of the City in the maximum amount of 21 $22,506,000 to provide funds,together with other available funds, for financing the costs of improvements and expansions 22 to the System. 23 24 3. The bonds shall bear such date or dates, mature at such time or times not exceeding 40 years from their dates, 25 bear interest, be in such denominations and form,be executed in such manner and be sold at such time or times and in such 26 manner as the Council may hereafter provide by appropriate resolution or resolutions. 27 28 4. The System is an undertaking from which the City may derive a revenue. The bonds shall be limited obligations 29 of the City,payable as to principal,premium,if any,and interest solely from the revenues derived by the City from the System, 30 and shall not be included within the otherwise authorized indebtedness of the City. The bonds shall not be deemed to create 31 or constitute an indebtedness of,or a pledge of the faith and credit of,the Commonwealth of Virginia or of any county,city, 32 town,or other political subdivision of the Commonwealth,including the City. The issuance of the bonds and the undertaking 33 of the covenants,conditions,and agreements to be contained in resolutions to be adopted or agreements to be entered into 34 hereafter shall not directly,indirectly,or contingently obligate the Commonwealth,the City,or any other political subdivision 35 of the Commonwealth to levy and collect any taxes whatsoever or make any appropriation therefore except from the 36 revenues pledged to the payment of the principal of and premium, if any,and interest on the bonds. 37 38 5. Such resolutions to be adopted and agreements to be entered into hereafter authorizing the issuance of the 39 bonds and providing the details thereof shall contain appropriate covenants requiring the City to fix,charge,and collect such 40 rates, fees, and other charges for the use of and the services furnished by the System and to revise the same from time to 41 time and as often as shall be necessary so as to produce sufficient net revenues to pay principal of and premium, if any,and 42 interest on the bonds as the same become due and to provide a margin of safety therefore. Such resolutions and agreements 43 shall also include such additional covenants,agreements,and other terms as are customary for the protection of the holders 44 of water and sewer revenue obligations. 45 46 6. The City Clerk is directed to make a copy of this ordinance continuously available for inspection by the general 47 public during normal business hours at the City Clerk's office from the date of adoption hereof through the date of the 48 issuance of the bonds. 49 50 7. The City Clerk, in collaboration with the City Attorney, is authorized and directed to immediately file a certified 51 copy of this ordinance with the Clerk of the Circuit Court of the City of Virginia Beach. 52 53 8. This ordinance shall be in full force and effect from its passage. Adoption requires the affirmative vote of a majority of all members of the City Council. Adopted by the Council of the City of Virginia Beach,Virginia, on the/2 day of May,2026. APPROVED AS TO CONTENT: APPROVED AS TO LEGAL SUFFICIENCY: 2-,,,a�� 7i Budget and Management Services City Attorney's Office 25 ITEM—II.B.6 FY2026-2 7 CAPTAL BUDGET ORDINANCES I RESOL UTION ITEM#78338 Upon motion by Vice Mayor Wilson, seconded by Council Member Ross-Hammond, City Council ADOPTED,BY CONSENT, Resolution to AFFIRM the City commitment to fund the Locality Share of Projects and PROVIDE Signature Authority for projects under agreement with the Virginia Department of Transportation (VDOT) Voting: 11 - 0 Council Members Voting Aye: Michael F.Berlucchi,Stacy Cummings,Mayor Robert M.Dyer,Barbara M. Henley, David Hutcheson, Cal "Cash" Jackson-Green, Robert W. "Worth" Remick, Dr. Amelia N. Ross-Hammond, Jennifer Rouse, Joashua F. "Joash" Schulman and Rosemary Wilson Council Members Absent: None May 12, 2026 I A RESOLUTION AFFIRMING THE CITY OF VIRGINIA BEACH'S 2 COMMITMENT TO FUND THE LOCALITY SHARE OF PROJECTS 3 AND PROVIDE SIGNATURE AUTHORITY FOR PROJECTS UNDER 4 AGREEMENT WITH THE VIRGINIA DEPARTMENT OF 5 TRANSPORTATION 6 WHEREAS,the City of Virginia Beach is a recipient of Virginia Department of Transportation funds under 7 various grant programs for transportation-related projects;and 8 9 WHEREAS,the Virginia Department of Transportation requires each locality, by resolution, to provide 10 assurance of its commitment to funding its local share; 11 12 NOW,THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH,VIRGINIA THAT: 13 14 1. The City hereby commits to fund its local share of preliminary engineering, right-of-way, and 15 construction, as applicable, of the projects under agreement with the Virginia Department of 16 Transportation in accordance with the project financial documents through appropriation in its Operating 17 Budget and Capital Improvement Program. 18 19 2. The City Manager and/or his/her designees are authorized to execute all agreements and/or addendums 20 for any approved projects with the Virginia Department of Transportation subject to the requirements 21 set forth in City Code § 2-154 that such agreements include review as to sufficiency of funding by the 22 Director of Finance and as to legal sufficiency by the Office of the City Attorney. 23 24 Adopted by the Council of the City of Virginia Beach,Virginia, on the day of May,2026. APPROVED AS TO CONTENT: APPROVED AS TO LEGAL SUFFICIENCY: udget and Management Services C' orney's Office 26 ADJOURNMENT ITEM#78339 Mayor Robert M. Dyer DECLARED the City Council SPECIAL FORMAL SESSION ADJOURNED cat 6:20 P.M. ru Chief Deputy City Clerk A a a es, MM Robert M. Dyer City Clerk Mayor City of Virginia Beach Virginia May 12, 2026