NORFOLK, Va. (WAVY) — Norfolk officially approved its 2024 fiscal year operating and capital improvement budgets on Tuesday night.

The overall budget is more than $1.9 billion total, with $1.4 billion in the operating budget. That includes a 5% raise for employees and additional 2.5% raise for public safety employees.

Meanwhile the bulk of the CIP budget is going to the $2.6 billion downtown flood wall project, with Norfolk pitching in $56.6 million in a local contribution in 2024. Another $12 million will go to improvements at the Half Moone Cruise Terminal downtown, after Carnival recently expanded its partnership with Norfolk.

The vote Tuesday was 7-1 for the operating budget, with Councilman Tommy Smiegel voting no, and 6-2 for the CIP, with Councilman John “JP” Paige voting no along with Smiegel.

Smiegel in voting no for the operating budget again cited a lack of tax relief for citizens. The city’s real estate tax rate of $1.25 per $100 in assessed value won’t change despite an increase in assessments by 6.8% overall. There are also several new fee increases with stormwater and solid waste collection.

“I’ve tried multiple times with this council to convince you guys that we should do something for our citizens to give that money back, I know Councilwoman McClellan and [Mayor Alexander] indicated some support for that, but even a 2-cent real estate decrease, which Hampton did … almost every locality considering some type of tax reduction … there’s just no relief for citizens and this was the opportunity to do it this year.”

Previous coverage on Norfolk’s proposed budget from March

WAVY’s Norfolk budget proposal update from May

Smiegel added that “there are some good things in there” but said there were equity issues with many things in the CIP budget such as the millions for the floodwall project and cruise terminal going downtown.

“I represent Ward 5, very middle class part of the city, and my citizens are telling me that they’re upset their tax dollars are not being investing in their neighborhoods, it’s going to other parts of the city.”

In voting no against the CIP, Smigiel pointed to that $12 million going to the Half Moon terminal, a number that wasn’t changed from City Manager Chip Filer’s initial proposal, as an issue.

“I don’t want to diminish [Carnival’s] investment in this, but it should be their investment, not ours … it’s little things like this that get me.”

Paige said he voted no on the CIP it wasn’t clear if money for redevelopment of the St. Paul’s area is going to minority contractors.

“Until I can confirm that we some minority contractors for the brunt of the money that’s coming in for [for St. Paul’s] I have to go no.”

Paige added: “A lot of these problems that we’re talking about and addressing tonight, it’s simply that, the inequity of the money being distributed throughout our city, so I’m going to have to say no.”‘

The votes came after comments from several city residents, who said their requests for priorities such as money for school maintenance/improvements and a new grocery store for the St. Paul’s area weren’t really heard by council.

Councilwoman Andria McCllellan acknowledged those concerns ahead of voting yes on the CIP: “I can’t disagree with the comments tonight, our schools are an economic development driver and we need to figure out a way to work with our school board better on that, so I’m going to voting aye, but we’ve got to do a better job communicating, and you’re probably not going to agree with whatever we come up with, not 100%, but at least we have to tell you what it is.”

You can read the full budget document here.