Chesapeake council adopts final FY26 amendments for schools, city operating budget and CIP

Chesapeake City Council on June 10 unanimously approved final amendments and technical corrections to the city and school fiscal year 2026 budgets, including $10.35 million in additional state revenue for Chesapeake Public Schools, a series of operating-budget reclassifications and multiple changes to the capital improvement program (CIP).

The approvals finalize amendments the school board adopted after the city approved the FY26 budget in May. The school board’s requests include a roughly $4.82 million compensation adjustment (an extra 1% to bring the total increase to 4%), funding for elementary common planning time, additional teacher and administrative specialist positions, school security equipment and vestibules, and one additional school resource deputy with a vehicle. City council approved the school package by a 9-0 vote.

Budget staff said the bulk of the school changes are funded by newly adopted state revenue rather than a new city contribution. “All of the adjustments with the exception of the $51,000 for the schools are coming from that $10,000,000,” Councilmember Ritter asked at the work session; the city manager replied, “Yes, ma’am.” The package also reallocates $51,422 from a city manager reserve tied to a revenue-sharing reconciliation with schools.

Budget director Jonathan Hobbs summarized the school-side amendments as appropriations within the school operating fund: $10,346,657 in state revenue; $51,422 from the city manager reserve; $4,824,810 for the additional compensation adjustment; $1,330,973 for elementary common planning time; $412,933 for five administrative specialist positions; $436,443 for five general classroom teachers; $483,033 for a “modern classroom” project; $164,803 to add one school resource deputy and a vehicle (this request has a companion adjustment on the city side); $228,084 for security equipment; $1,000,000 for elementary security vestibules; $1,000,000 for infrastructure support; and $117,000 for a financial-wellness technology program.

On the city operating side council approved a set of final-year adjustments and technical corrections, most of which staff described as bookkeeping, fund-source corrections or late fiscal-year personnel and equipment moves that the city manager had already approved administratively. Notable city-side amendments include $12,500 for a full-employment program administered with the Virginia Department of Social Services; $110,000 to Central Fleet for higher-than-anticipated utilities at the joint fleet facility; $10,593 and a 0.25 FTE increase for the libraries; a 1.0 FTE addition in the sheriff’s office for the school resource deputy (paired with the schools’ request); $20,780 to the treasurer’s office to consolidate part-time positions into a full-time post; a net reduction of 0.125 FTE in human resources ($49,249); an increase of 12.5 FTE and about $120,251 for the voter registrar to staff expanded election operations; and a required $1.3 million supplemental principal payment from the Chesapeake Transportation System (CTS) to its debt service.

Council also approved changes to the CIP, including an appropriation of $914,972 for the Elbow Road bridge replacement (a cost-share adjustment with Virginia Beach), $160,000 in additional state funds for a State of Good Repair milling and paving project (staff noted a project-number error in the backup materials), a reduction in anticipated federal funding on one project (about $325,000), establishment of a new Dominion Boulevard Trail project with a $225,000 developer contribution, and a scope clarification for CIP 13,280 (citywide stormwater outfall regrading and restoration).

Council members asked staff for follow-up details on several items. Councilmember Ritter requested an update on agreements for shared use of facilities; the manager said school and city staff were still negotiating and would provide a follow-up the next day. Ritter also asked for a recent accounting of Commonwealth’s attorney asset‑forfeiture receipts and uses; the police chief and budget staff confirmed that seized assets that are forfeited are shared among the Commonwealth’s attorney, police department and, in certain cases, the sheriff’s office, and the manager agreed to provide historical amounts on request. Superintendent Cotton told the council the state funding increase is ongoing, not one-time, and that the district is using the ongoing funds for recurring investments such as staff raises and positions.

Votes at a glance

- Consideration of amendments to the Chesapeake Public Schools FY 2026 budget — adopted 9-0. Key appropriations: $10,346,657 state revenue; $4,824,810 additional compensation; $1,330,973 elementary planning time; $1,000,000 security vestibules; $164,803 school resource deputy (plus vehicle).

- Consideration of amendments to the FY2026 city operating budget — adopted 9-0. Key changes: Central Fleet utilities $110,000; voter registrar +12.5 FTE / $120,251; CTS supplemental debt payment $1,300,000; library 0.25 FTE / $10,593; sheriff +1 FTE / $164,803.

- Consideration of proposed amendments to the FY2026–2030 CIP — adopted 9-0. Key changes: Elbow Road bridge appropriation $914,972; State of Good Repair milling/paving $160,000 (project-number corrected in backup); new Dominion Boulevard Trail project $225,000 (developer contribution); scope modification for CIP 13,280.

- Request for amendments to the FY2026 operating budget and CIP (technical corrections and transfers) — adopted 9-0.

Why this matters: The package finalizes how the city and school division will spend FY26 money approved in May, incorporates state budget changes that affect school operating revenues, updates CIP project funding and fund sources, and resolves late‑year administrative changes so departments and internal service funds (like Central Fleet) can be charged and maintained properly.

Details and context: Staff emphasized that many of the items are accounting or technical corrections (fund reclassifications, fee schedule corrections, moving fuel costs back to operating departments from Central Fleet, and correcting fund numbers for CDBG and HOME grants). On the public-safety pay plan the manager said staff had to swap two amounts between ordinance sections so the public-safety step and a potential structural increase would be implemented in the correct ordinance paragraphs; he said this is a reclassification within the ordinance, not a new appropriation.

What council asked staff to do next: provide a brief update on shared‑use facility agreements between the city and schools; supply a recent historical listing of asset‑forfeiture receipts and expenditures for the Commonwealth’s attorney and police department; and confirm details behind a developer contribution for the newly created Dominion Boulevard Trail project.

The council moved from the work session into the regular meeting after the votes. The decisions recorded on June 10 finalize FY26 technical and substantive budget changes for the city and schools.