No tax or fee hikes for Chesapeake residents
CHESAPEAKE — Coming off a year where revenues and spending were slashed due to a global pandemic, Chesapeake council members got their first look at a proposed $1.26 billion operating budget for next year.
The city cut this year’s budget by about $46 million, anticipating decreases in taxes due to people losing jobs, staying home more and traveling and eating out less. Hiring freezes were put in place and new projects were suspended.
Chesapeake largely avoided the dire economic situation for which it braced. City Manager Christopher Price said revenue outperformed projections in the last quarter of last fiscal year, something that’s continued into this year.
Price and budget director Jonathan Hobbs discussed the 2022 fiscal year operating budget — and a five-year plan for construction and other “capital” projects” — at a council work session on Tuesday. There are three more work sessions planned over the next month, and changes could be made before the council votes to adopt a final budget, likely on May 11.
The public will have a chance to comment April 27 and May 11 during the regular council meetings, which start at 6:30 p.m.
The operating budget does not include an increase to the real estate tax of $1.05 per $100 of assessed value. It also doesn’t include any new fees.
Price and Hobbs said they worked to make sure spending reflects the council’s priorities and the city’s comprehensive plan. As examples, they noted proposals to replace some city department buildings, better secure data and improve air and water quality with a new park along the Indian River.
Among other highlights: There’s $4.5 million set aside in a reserve to provide the city’s roughly 4,000 employees a raise. Price said that gives him flexibility to determine the timing of the pay increase due to concerns over continued impacts of the pandemic. The budget calls for spending $24.7 million over the next five years to replace the city’s tax system that runs on a mainframe computer system. It’s the system that serves at the backbone for the billing, payment and tracking of tax and some other payments across the city, said city spokesman Heath Covey. City documents say the mainframe applications are at “end-of-life” and “present a significant risk to the city.”
It also includes earmarking $36.2 million — $14.5 million of it in the next fiscal year — to replace public works and public utilities buildings in Greenbrier, near City Park. The existing facilities are “deteriorated” and “functionally inadequate for efficient and safe operations,” the budget says.
Covey said the city is still deciding where the new facilities will be or where they could be relocated.
Indian River residents will note the budget includes spending plans for the creation of Blue Heron Landing Park along the neighborhood’s section of the river. The city has been speaking with residents and studying ways to make improvements.
The project will include a living shoreline, looped trails through marshes and kayaking and fishing access, according to city documents.
Overall, the budget grew about 7.3% compared with last year, Hobbs said.
“A significant part of what’s causing it ... is COVID-19,” Hobbs said. “When the budget was developed last year we had no idea what the economic impact of COVID-19 would be. We drastically reduced revenues because we did not know what was going to happen. These growth rates are off those reduced base lines for (fiscal year 2021).”
About 48% of the budget goes to schools, including for new positions and finishing the expansion of full-day kindergarten.
The City Council will meet again April 13 for another budget work session. The full proposed operating budget can be read on the city’s website at CityofChesapeake.net/budget.