Chesapeake council adopts FY 2025–26 budget; council approves TIF transfers and tax changes, adds funding for victim‑witness program

Chesapeake City Council approved the fiscal year 2025–26 operating and capital budgets and a series of related tax and funding measures during its May 13 meeting.

The council voted unanimously to set the city tax levy for the fiscal year beginning July 1 and to adopt the operating budget and appropriation ordinance. The council also approved transfers of declared surplus balances from two tax‑increment financing (TIF) districts — $4,860,912 from the Greenbrier TIF and $5,701,880 from the South Norfolk TIF — to the general fund.

Councilmembers also approved an ordinance increasing the flat transient occupancy collection from $1 to $2 per night and directed the revenue from that increase into the conference center special revenue fund. Separately, council established a 0.5 percent dedication of meal tax revenue to the city lockbox in support of the conference center special revenue fund.

During budget consideration the council approved a single amendment that added $200,000 to the operating budget to provide supplemental funding to the sheriff’s Victim‑Witness program. The amendment was offered by Councilmember Bunn, seconded and adopted by an 8–1 vote; the council then adopted the full operating budget, as amended, by a 9–0 vote.

Council discussion and public testimony at the meeting also addressed human services competitive grants and the city’s nonprofit partnerships. More than a dozen nonprofit leaders spoke during the public comment period in support of continued human services grant funding, citing local service volumes and program outcomes. Several council members and the city manager said the adopted budget preserves human services competitive grants and asked staff to continue coordinating with the nonprofit community as the city moves into the fiscal year.

Other capital and budget decisions adopted included appropriation adjustments and project funding requests: the council authorized an official intent resolution to reimburse certain project expenditures with future borrowing, approved capital appropriations for the next fiscal year and approved several grant and economic development investment items that had separate roll calls. Two economic development grants were approved (one Great Bridge façade grant adopted 8–1 and one economic development investment grant adopted 9–0) and the council approved a de‑appropriation and reallocation of selected funds where noted in the packet.

Where budget actions create ongoing personnel costs — for example the Victim‑Witness positions supported by the supplemental appropriation — staff noted the appropriation covers the first year and that future budgets will need to account for continuing personnel costs. The city manager and department staff told council they will return with implementation details, performance expectations and any required memoranda of understanding for externally managed programs included in the adopted budget.

Votes recorded in the meeting transcript: tax levy and operating budget ordinances adopted 9–0; Greenbrier and South Norfolk TIF transfers adopted 9–0; transient occupancy increase adopted 9–0; meal tax dedication adopted 9–0; capital appropriation ordinance adopted 9–0; the $200,000 victim‑witness budget amendment adopted 8–1 then the overall operating budget approved 9–0. Several other consent and grant items carried by recorded roll call during the meeting as noted in the public minutes.