WAVY.com

Chesapeake FY25 budget keeps real estate tax rate, funds raises for city employees, teachers

CHESAPEAKE, Va. (WAVY) — Chesapeake’s $1.6 billion proposed fiscal year 2025 operating budget keeps the city’s real estate tax rate at $1.01 with no new fees for residents.

It also includes 3% and higher raises for general city workers, teachers and public safety employees. The starting pay for teachers is now just over $55,000.


City Manager Christopher Price shared the budget and briefed council on its details this week, and said keeping the $1.01 real estate tax rate (per $100 in assessed value) will lead to a $14.6 million increase in general fund revenue compared to FY 2024.

The rate was first lowered from $1.05 to $1.01 for FY2023 due to unusually high increases in assessments. However, this year’s assessments only increased by an average of 4.4%, Price said. Simultaneously, the city’s personal property tax rate will remain at $4.08 per $100 in assessed value.

Price said the increased revenue will help the city increase compensation to hire/retain employees and implement other initiatives.

One big change includes the hiring of 72 new full-time employees related to the closure of the Hampton Roads Regional Jail. The closing of the jail on April 1 means Chesapeake’s city jail will have to take in Chesapeake inmates who were at HRRJ.

24 of the new positions will be at the Chesapeake Sheriff’s Office, including 15 new deputies, five new sergeants and four behavioral health case workers. Price though said the city expects to save about $1.5 million a year in operating costs compared to paying for services from the HRRJ (which was more than double the cost to house an inmate at the local jail, Price said).

Price said most of the planned capital projects are funded as part of the city’s capital improvement plan (CIP), but some projects like the George Washington Highway widening and Southgate Bridge Replacement are no longer fully funded due to inflation and competing priorities. For example, the George Washington Highway project increased in cost from $47.8 million to $60 million.

Meanwhile a potential performing arts center for the city remains unfunded after a study found it would cost over $315 million.

Other unfunded items (which totaled $139.5) include a $2.3 million request for body-worn cameras for deputies, $3.4 million for Parker Road widening and $5 million for city vehicle replacements.

The city will hold three work sessions in April for city council to discuss and adjust the budget before it’s adopted on May 14. Public hearings on the budget are scheduled for April 23.

You can read the full budget here and listen to Price’s presentation here.