In Virginia Beach, a significant turnout of city waste management personnel, boating enthusiasts, and library supporters marked the first of two public budget hearings. Approximately 200 individuals gathered at the convention center to discuss the city manager’s proposed $2.8 billion budget for the upcoming fiscal year. The budget, which reflects a 4.7% increase from the current year, encompasses employee pay raises, a new boat tax, and an increase in the meals tax.
The proposal includes raising the current meals tax from 5.5% to 6%, anticipated to generate roughly $9.2 million for a new projects fund. This proposed increase has met opposition from local stakeholders, including the Virginia Beach Restaurant Association, who are actively communicating with the City Council to express their concerns. Business owner Chris Ludford, who supplies oysters to local restaurants, highlighted the challenges restaurant owners are facing in recovering from pandemic-induced labor shortages.
Library supporters voiced their objections to the proposed elimination of five library positions, including four branch service coordinators. Concerned individuals emphasized the vital role these positions play in maintaining efficient library operations, warning that the cuts would overburden remaining staff and compromise service quality.
Additionally, the proposed implementation of a pleasure boat tax of $1.50 per $100 of assessed value for vessels 18 feet or longer has sparked debate. Critics, including boat owners and City Commissioner of Revenue Phil Kellam, argue that this tax could drive boat owners to relocate their vessels outside of the city, negatively impacting local businesses tied to the boating industry. Alternatives, such as a one-time registration fee, were suggested as potential solutions.
The budget also prioritizes pay increases for public safety workers and the city’s lowest-paid employees, such as custodians. It includes a step increase plan for public safety personnel and a 3% raise for the rest of the workforce. Alfred McClenny, a waste management operator, noted the need for more manpower, as the city competes with neighboring regions for workers.
A second public budget hearing is scheduled to take place at 6 p.m. on Tuesday at City Hall. Residents can access the full budget proposal at public libraries, City Hall, and online at VirginiaBeach.gov/ProposedBudget.
Your Takeaway
The proposed changes in Virginia Beach’s fiscal agenda could have several impacts on the community. An increase in the meals tax could potentially drive up dining costs, which may influence consumer behavior, affecting local restaurants trying to recover from recent labor shortages. This ripple effect could extend to suppliers and other related businesses, creating a broader economic impact.
The suggested cuts to library staffing raise concerns about the future of public library services, which are vital to community education and engagement. Reducing staff might lead to longer wait times and decreased service quality, potentially diminishing the libraries’ role as community hubs.
Furthermore, the proposed boat tax could deter boat ownership, affecting related industries such as marinas and waterfront businesses. If boat owners move their vessels elsewhere, the local economy could see a drop in revenue generated from boating activities, highlighting the need for careful consideration and potential alternative solutions.