Chesapeake council approves FY2026–27 budget, transfers $10 million in TIF surplus to general fund amid neighborhood objections

Chesapeake’s City Council adopted the fiscal year 2026–27 operating and capital budgets and approved a transfer of surplus Tax Increment Financing (TIF) funds to the general fund, moves city officials said were needed to balance the budget and fund a public-safety pay plan.

City Manager Price told the council that the two TIF districts involved — Greenbrier and South Norfolk — generated surpluses because fewer eligible capital projects were programmed this year and because the city has been successful obtaining federal and state grants that replaced some planned TIF expenditures. "The TIF funds are they're special financing districts… and in years where we don't have enough projects to match the level amount of money, then we declare a surplus," Price said.

The council approved declaring $5,700,000 from the Greenbrier TIF and $4,300,000 from the South Norfolk TIF as surplus and transferring those amounts to the general fund. The motion passed 8–1. Council members who supported the transfer said the surplus contribution was the minimal amount necessary to fund the public-safety pay plan and that the city is making significant investments in the districts through other non‑TIF funding streams.

Residents and neighborhood advocates urged a different approach. "It would be very, very wrong to the citizens in South Norfolk… Don't you have any respect, any concern for those of us who live in South Norfolk?" Dr. George Reid said during public comment, urging the council not to remove TIF funds while local streets, flooding and sidewalks remain in need of repair.

Bradley Moore of the South Norfolk Civic League said temporary projects financed with TIF money and perceived lack of notice to residents had undermined trust. "That project was not communicated well to our community… it was a done deal," he said.

Council members pressed staff for details about which projects qualify for TIF funding and why some infrastructure needs remain unmet. Price and budget staff said not all capital needs are TIF‑eligible, that the city is managing an unusually large capital-improvement program with limited staffing capacity, and that some projects were funded instead with federal or state grants, reducing the pool of TIF‑eligible projects for the current year.

The council also approved the tax levy ordinance for FY2026–27 and adopted the budget appropriation ordinance as presented; both measures were adopted by unanimous votes and take effect July 1, 2026.

What’s next: City staff recommended policy discussions outside the immediate budget timeline to evaluate the city’s use of TIF surplus designations and the council’s prior direction to use those monies to support the public-safety pay plan. The transfer of the declared surplus will be executed as part of the FY2026–27 budget actions.