NORFOLK — City Council members on Tuesday approved a $1.9 billion budget that includes a 3.5% raise for city employees, a real estate tax decrease, and a pay scale bump and step increase for sworn public safety workers.
At the meeting, council members unanimously approved the $1.53 billion operating budget and city compensation plan with little discussion. The council voted separately to adopt the $285 million capital improvement plan, which Councilmember Tommy Smigiel voted against, saying it invested too much in downtown Norfolk at the expense of the rest of the city.
“I don’t believe that the CIP budget is equitable across the city,” Smigiel said.
The approved budget — for the fiscal year which runs from July 1 to June 30, 2025 — includes a 2-cent decrease in the real estate tax rate, taking it from $1.25 to $1.23 per $100 of assessed value. The reduction would result in tax savings of around $53.36 for the median Norfolk home valued at $266,800, Norfolk City Manager Pat Roberts said previously[cq comment=”cq all” ]. The personal property tax rate will remain the same, with the city taxing vehicles at $4.33 per $100 of assessed value.
City officials formulate the capital improvement plan for a five-year period, and the 2025-29 plan includes about $1.5 billion in capital projects. Of the $285 million allocated for the fiscal year that starts in July, $10 million will go toward construction of a new Maury High School. The plan also allocates $4.5 million this fiscal year to renovate Scope arena and $1.5 million to renovate Chrysler Hall.
Roberts said the finalized budget is a balance between major infrastructure investments and tax relief for residents.
“With real estate values continuing to climb, I think all of council saw the importance of moderating the tax rate, which they’re always committed to do and always willing to consider,” Roberts said.
The budget also allocates $164.2 million for Norfolk Public Schools. The school system’s $671.6 million budget includes staff raises, funding for a community school pilot program and plans to investigate closing under-capacity schools.
The spending plan also includes about $1.8 million in budget additions made by City Council. Those include $1 million to regraded salary increases for fire and rescue employees and $500,000 for the city’s commercial corridor grant program, among other additions.
The budget does not include any city fee increases beyond scheduled annual increases to city stormwater, water and wastewater system fees. Water fees will increase 21 cents, to $6.29 per 100 cubic feet. Wastewater fees will increase 21 cents, to $5.44 per 100 cubic feet. Residential stormwater fees will increase 50 cents to 14.07 a month, and commercial rates will increase the same amount, to $14.07 a month per 2,000 square feet.
The capital improvement plan also includes $25 million to construct a downtown floodwall and other projects related to the city’s Coastal Storm Risk Management program — less than city leaders had planned, because the state budget reduced matching funds from a proposed $73.8 million to $25 million. However, city officials said the project still has adequate funding for its first phase.
The reconciliation improvement plan also includes $11 million to relocate a water line at Harbor Park in order to advance the floodwall project construction.
Trevor Metcalfe, 757-222-5345, trevor.metcalfe@pilotonline.com
