Virginia Beach council approves $3.86 billion FY2026 operating budget, amid meal-tax and library disputes

The Virginia Beach City Council approved the fiscal 2025–26 operating and capital improvement budgets and related ordinances on May 13 by a 10–1 vote.

The adopted operating appropriation ordinance authorizes $3,864,748,322 for the year beginning July 1, 2025, and ending June 30, 2026, and the capital program includes an appropriation and CIP through FY2030–31. The council also authorized multiple bond issuances and revenue bonds, and approved ordinances ranging from tax-levy settings to code amendments and a new dedication of meal-tax revenue to a Major Projects Fund.

The vote concluded a special formal session called by the mayor to consider adoption of the resource management plan, operating budget, capital improvement budget and related ordinances. Vice Mayor Wilson read the list of ordinances and moved approval; the motion passed after one council member indicated she would oppose the package.

Council deliberations and public comments highlighted three fault lines: dedicated meal-tax revenue for a new Major Projects Fund, proposed library position eliminations, and how the council may use Town Center tax-increment financing (TIF) funds. Council member Heather pressed for postponing the meal-tax increase and for clearer, targeted use of funds allocated for…