Virginia Beach City Council Unanimously Approves Revised Budget with Tax Relief for Vehicle Owners and Pay Raises

The Virginia Beach City Council voted unanimously on Tuesday, May 12, 2026, to approve a revised $2.88 billion budget for the 2026-27 fiscal year. The 11-0 vote also included the formal adoption of the city’s Capital Improvement Program. The total budget, which amounts to $2,886,575,513, represents a 3.36% increase over the previous fiscal year. This spending plan covers both city operations and the Virginia Beach City Public Schools system.

Tax Relief for Residents

A key component of the newly approved budget is the implementation of personal property tax relief for local residents. Under the revised plan, vehicle owners will see a 10.1% credit applied to their personal property tax bills. This credit is available to every resident who owns a personal vehicle in Virginia Beach, though the relief is capped at a maximum of $80 per vehicle.

Employee Compensation and Market Adjustments

The council also approved several measures to increase compensation for city employees. Starting in July, city staff will receive an approximately 3.5% salary increase. To further address workforce needs, the budget allocates additional funding to be implemented in January 2027. This funding is intended to bring certain city positions up to current market rates. The spending plan also includes a 1.5% bonus for sworn positions and other select roles. These bonuses are capped at $1,500 and will be distributed during the fiscal year.

Community and Regional Funding

During the reconciliation process, the council directed specific funds toward various community priorities. This includes an allocation of $1,376,520 for youth sports and activities. The budget also provides $425,427 in amusement tax reserves to support arts and culture organizations. The council approved $2.1 million for regional grants, which will be administered through the Community Organization Grant committee.