City Council Meeting, 12/2/2025

one. Welcome all. We're about ready to get going with our informal session.

Patrick.

All right. So, Mr. Mayor, members of council, as you all know, towards the end of every u calendar year, we tend to have um a overview of the city's finances to including a review of the city's debt capacity. So this presentation will be given primarily by Davenport with the support of our finance department and they're going to give the city and the public an overview of the city's debt profile and also the

debt capacity. But before we get going, Monica Kroski, deputy city manager, will kick off and introduce our new finance deputy director, Nikki Griffith.

Thank you for letting me do that. But I think it's important that we give her a proper introduction to the city. Uh Nikki Griffith joined us in July and we are so excited that she's on our team.

Uh Nikki is a certified finance public officer. Um GFOA, which is the government finance officers association, is like 20,000 members and more strong.

And Nikki served on their debt committee for almost six years. So getting to see a snapshot nationally of whether it's schools cities counties states um what are the financial strategies they're using. Um we got her from the city of Chesapeake where she was the assistant director for debt and strategic planning and she did a lot of cool things there. Um one notable thing is that when Chesapeake, you might

recall, Chesapeake transferred their treasurer's office investment portfolio to their finance department. uh that's like a billion dollar investment portfolio and Nikki was responsible for stabilizing that and standing it up to um getting it on good ground. Um prior to Chesapeake, Nikki worked as the assistant director in the state of Maryland's treasurer's office and then prior to her work at the state level,

she worked on the budget side as well as the finance side for some large counties in Maryland. um over her career she's done some really interesting innovative financing schemes or not schemes strategies I'll say innovative financial strategies uh one of which was a public private partnership financing strategy and she actually won a national award for uh that debt strategy um accounting

undergrad and graduated magna kumladi from Salsbury uh university and we are just so so excited that she joined our team you all know Cal and Austin, they're part of Davenport who serves as a financial adviser. Uh so with the addition of Nikki, uh we feel as though we have a powerhouse finance team working with budget, our other members of the finance department and Davenport.

Um so excited that we were able to recruit Nikki. So I just wanted to give her background to you all so that you could be a bit more familiar with uh some of her accomplishments over her career. Uh, so I think Cal, are you next up to walk us through? So, so just wanted to do that. Thank you'all.

Welcome.

Thank you, Mr. Mayor. Um, mayor, members of council, um, city manager, and other esteemed guests in the room here again, Kyle LS with Davenport, um, the city's financial adviser. Nice to see you as always. Um, I think I would echo, um, Monica's kudos there of Nikki. We've actually had the pleasure of working with Nikki and a number of those different local governments. Um, and I

believe, don't quote me exactly on this, they're all AAA rated. And so, as we go into our financial review of the city, which we always appreciate doing for the mayor and council and the public, um, that AAA experience is something that is unique. It's very, very valuable and certainly Nikki brings that to the table. Um, and we're excited also again as your outside advisor, uh, to have her

here. Um so what we have up on the screen um as the manager mentioned is what we call the financial state of the city. We do this again about this time of the calendar year. It's that time of year where you're wrapping up the audit for last fiscal year. That'll be done very soon as we understand. Um really thinking about planning and strategizing for obviously your next budget year which will be FY27 under leadership

obviously of the manager and your budget office and obviously in the middle of this fiscal year. So we like to come at this time and just give you again that update um as you go into that planning process.

Um on page one here in terms of the introduction again just a quick overview in terms of Davenport um headquartered in Virginia have for 160ome years. Um importantly as your advisor we just like to give this as a little bit of a of a maybe a reminder so to speak. We're not here to lend any money. U we're not here to do anything other than sit on the same side of the table as you advising

you as a city council mayor so forth and so on um in these planning processes through your budget through your CIP and ultimately when it comes time to borrow money which we'll talk about at the end of the presentation how you go about that in the best possible manner and so we just note that um on this page here in terms of the introduction Um we'll start really on page two um in

terms of what we call here the credit rating overview. So you in Virginia Beach enjoy the highest possible credit ratings that any city or local government can achieve. And so that is a critical um portion of your overall financial management. We're going to talk about how you get to that level. Um but certainly you as a city are in rarified error. part of our job working with your senior staff is to help make

sure we maintain and maximize those AAA credit ratings. Um the rating agencies, you see them in the middle of the page there, Moody's, SNP, which is really short for standard and pores and Fitch ratings. Um you see the various categories there. They use a little bit different numbering in systems, but basically they are all at AAA. Um and those were recently affirmed within the

last year or thereabouts. So on the next couple pages, we'll give you some commentary from the rating agencies and so certainly you've got an excellent staff. We appreciate being here. U but these rating agencies provide very good detailed reports that will walk through some of the highlights. We think it's important to give you some of that information again as you go into your budget process and your planning

process. what is important to these rating agencies when they are affirming those AAA credit ratings.

Um so on page three u we'll go rating by rating. I won't read this word for word.

Um all these reports are are public and available in that way. Um but we'll start with Moody's. Uh Moody's tends to be the oldest of the three of those national credit rating agencies. Um and so we tend to start with them in terms of their overview. Um we put in the box here, a couple different boxes, um credit strengths and credit challenges.

So something that these rating agencies do um especially within the last 10 or so years is give us some specifics in terms of what they view as relative strengths of the city and relative challenges. Obviously at aa um our strengths far outnumber our challenges, but they give us both sides of the equation again so we can see the full picture. Um so what do they say there in terms of credit strengths? They talk

about a sizable and diverse local economy. So you obviously a very large city both on land area and population.

Your economy is large and diverse. Um that is something that there's a big positive um in the eyes of the rating agencies. Um they talk about healthy property wealth levels um and above average growth of the taxable base. And so basically the fact that your tax base primarily in the form of your real estate values have been growing been developing in recent years is a positive to the rating agencies. They see that um

in their ultimate metrics that they use to come up with those AAA levels. Um third bullet point there they talk about comprehensive financial policies and conservative budgeting practices. And so in all of the things that the rating agencies look at, the hardest to quantify is typically the management practices. Um, but they do care very very much about how a local government like the city is run and how it is

managed. You as a mayor and city council have excellent leadership. Your senior staff is very very good and very experienced. And so they say that right there. You've got comprehensive financial policies um that you follow and have for years and years. So that track record of staying on top of those policies, being able to sort of check those boxes year-over-year in terms of having a structurally balanced budget,

having appropriate fund balance levels, having at a uh appropriate amount of debt outstanding, and being able to show that going forward, not just in this year, but on a going forward basis is very important to the rating agencies.

Um they also talk about conservative budgeting practices. Um we've obviously had the last four or five years an unusual four or five years coming out of the pandemic. Um very strong economy broadly in terms of the nation, strong economy locally here. Um and so the fact that you've been able to as a city um with your leadership here evolve to that situation in terms of that economy they've noticed and taken note of in

terms of their rating. Um obviously as you move into next budget season um the challenge is always being able to understand and and paint a picture about what that next budget cycle will look like. And so we'll talk about that uh on the next couple pages. Um they also in the middle of page here they talk about credit challenges. So we're AAA um again our strengths outnumber our challenges

but they do note things that um are useful to again take note of in terms of what's underpinning these AAA ratings.

They say that our reserve and liquidity levels are below those of similarly rated cities. So part of what the rating agencies do is they compare us to other AAA cities and counties across the country and sometimes those are small, sometimes those are very large. We tend to be one of the larger in that area and they're doing a a comparison across that. And so they do say there on a

relative basis our uh reserve levels are not quite as high as you might see. Um they also say in that second bullet point there some exposure to funding reductions and cuts at the federal level. Um specifically department of defense they watch those things very very closely. You know better than anybody with your management here. Uh what those are doing in terms of the local economy. Uh we make sure to tell

that story when we talk to the rating agencies. Uh but they're clearly very very important to both the regional economy and the local economy and so they take note of that.

Uh last bullet point I'll make at the bottom here um very last um again at the bottom of the page um they talk about the long-term liabilities being manageable. So what they really are looking at there is our debt profile and our overall pensions and OPED type liabilities and what they're saying there is it's manageable. So we'll talk later in the presentation about the forward-looking view of that, but they

look at that whole CIP. You show as a city to the rating agencies where we think we're going over the next 5 years in terms of debt issuance. And to date, they have seen that as being manageable even though it is very very large dollars. Again, they see those management practices as being important to maintaining that.

Uh second page in terms of of again some summary here. won't go into quite as much detail, but this is standard and pores or S&P. Um, you note here at the top of the page a couple things they say and they use their words very specifically. Um, they talk about the city's large, diverse, high value property tax base. So, again, they're looking at the fact that our assessed values have grown in the last four or

five years. Uh, they'll want to see and understand what that trend will be on a going forward basis. Um but to date that's they've seen that being both large, diverse, um and high value using their terms. Um and secondly, they say there are strong finances. And so what do they mean by strong finances? The fact that you have annual structurally balanced budgets, you've historically had some surpluses the last several

years in terms of revenues versus expenditures. Maintaining that situation going forward will be important to maintaining these AAA credit ratings.

Uh the third rating agency rating agency um again that we have in terms of that AAA is Fitch ratings. Um they have a little bit different take in terms of how they describe things but again we're AAA and we expect it to continue to be there. And so you see the words that they use there on the page. They talk about historically strong operating performance. And again what they mean

there is making sure that our revenues are keeping pace with our expenditures.

They see that in the audit, but they also want to see and understand in a budget process, are you as a city making sure that your revenues are keeping pace with expenditures? Um, something we have seen um in our call it service territory, we tend to operate nationally but a lot in the mid-Atlantic region is we've had this very good four or five years clearly in terms of the overall

economy and revenue growth. We have seen last couple years clearly expenditures be inflation or whatever other factors have pushed that expenditure base sort of cost of doing business up. And so the challenge going forward will be for you as a city and your peers and neighbors making sure that those recurring revenues continue to keep pace with the recurring expenditures. And so you've

done that historically. Um and that's something that uh the tailwinds of the economy last several years have been very helpful to. You as a council have been very responsible that way. Um but we do see that as a continued challenge um as we live in this environment where inflation has come down, but it certainly is not at a zero level. And so we're going to need to make sure those

recurring revenues annually are likely growing to make sure they're keeping pace with the recurring expenditures that are needed uh to obviously run a city as large and dynamic as yours. Um they also say in the middle of the page there um we are at the center of a um important and growing MSA. So they look at the region, they understand the Hampton Roads region, they understand really the anchor and the epicenter of

Hampton Roads. since they want to see and understand how the regional economy is growing. Um, you know, obviously some of the big drivers there in terms of the military, etc. Um, that's all part of what we as a city present to them on a going forward basis, but those are the dynamics that are less within our control on a day-to-day basis as a city.

Those that are more within the day-to-day control are again making sure the structurally balanced budget whereby revenues are keeping pace with expenditures and our fund balance levels we'll talk about in the page um are at the appropriate level and hopefully on the higher side of of the appropriate level.

Um so in summary on a little bit of the financial management side, we'll shift gears a bit. Um just to give you from our perspective at least a history, you're going to get your FY25 um audit here in the very near future.

Um but again with the rating agencies and outside will see in terms of some of those takeaways. Um, I'll point here to the middle two bullet points on the page whereby your revenues on average, not every year, but on average have been growing at about 5% on an annual basis.

And so they've been clipping along, whether that be natural growth or some different changes within the budget, they've been growing on average about 5% a year. Um, the second bullet point, really third bullet point of the page there, expenditures over that same time period have been growing about 4.7%.

So technically revenue growth has been greater than the expenditure growth.

That's what you want. Um there's a a pretty small margin there in terms of the growth in the two. So it's basically a balanced budget. They've been keeping pace with each other. Um plus or minus.

And so again, the challenge going forward is making sure that situation continues whereby the revenue growth keeps pace with those expenditures and thus you have a structurally balanced budget and you're maintaining if not maybe growing a little bit your reserves and fund balances.

Um on that topic of reserves and fund balances, the fourth bullet point of the page there we'll talk about on the next page is the unassigned fund balance. And so when these rating agencies are looking at the city and your credit ratings, they'll look at all kinds of different things. Um, but one of the single most important things they'll look at from a financial standpoint is your unassigned fund balance level. Um,

you as a city of a policy to make sure you've got a minimum amount of that. Um, you also have a little bit higher target level. We'll show you the next page what that what that looks like. But if there's one single uh financial measurement or metric that the rating agencies are looking at on an annual basis is what is that unassigned fund balance level and how is that trending and how does that compare to your

policy?

And so to that end on page seven this is that unassigned fund balance. Um and again you've got the policy that you see on the graph at the bottom if you're a visual person. Um you can see what that policy range has been historically. Um the minimum level there at 8% and the sort of upper bound that's that red dotted line and the really yellow dotted line sort of the upper bound um at the

12%. And so what you see over the last basically four years is that level has kind of plateaued and even come down a little bit. Um that is a factor because this particular policy is a ratio. It's not pure dollars. It's a ratio that says how many dollars do we have in the unassigned fund balance relative to the size of the budget. And so as that budget grows, the amount of dollars in

that fund balance needs to make sure it keeps pace to keep ourselves within that that 8 to 12% range. And so what we've seen the last couple years is the relative amount of dollars Indiana fund balance has actually crept down a little bit. We're still very much within the policy level. We're not out of compliance with the policy. Um but in a perfect world, we really like to see that that downward trend really flatten

off um and try and keep you as a city at a position whereby we're really on the upper end of your policy range. That'll really be ideal. Um we say that for a variety of reasons.

one is cash is king. And so in any business um which you can think of the city very much as a business uh we like that concept of cash is is is king. Um and I think that that holds true in a lot of different ways. Um uh also importantly uh in terms of the revenue making potential that fund balance and so interest rates where they are uh the interest earnings on that fund balance

that just comes right back to the general fund. It's a great way to help counterbalance some of the inflationary pressures that you feel. Um, and as we'll talk about in the latter part of the presentation, you as a city are embarking on a continued series of large capital projects. You've got um you've got the flood protection program, the other uh larger capital projects. And so, as these rating agencies are looking

at the outlook for the city and saying, as we'll talk about in the next section, we've got a bunch of stuff to do in terms of capital. that means we're going to borrow some dollars in a pretty substantial amount. One of the single best ways to counterbalance the fact we're going to be borrowing more is to make sure we've got a really really good fund balance. Um and so we make that

point here, you're very much in compliance with the policy, but in an ideal world, we'd like to see that be maintained um at that level and not not sort of going down at all um in terms of the bars going forward.

Um the next page, uh we'll just show you a quick comparison here of that unassigned fund balance relative to some of your neighbors and peers. Um so the rating agencies when they do this type of analysis, they're going to look specifically at Virginia Beach. Um they're also going to look at what other cities around both the region and the nation do and where they stack up.

And so on this particular page, we've just taken a series of other local governments around the region, different shapes and sizes. Um you can get a flavor here of what those others that are all highly rated. You are the highest rated, but are all highly rated.

Um what they look like. Um the bottom of the page you see in that kind of gold bar um at 11 plus% Virginia Beach. Um there are some anomalies here. So Williamsburg at the very very top, much smaller than than the city. Um, but Williamsburg is an interesting one. It's a client of ours. They're very reliant on tourism related revenue. And so because of that, they've always had and they've got a good policy that way, a

higher level of fund balance to make sure they've got enough contingency uh for the fact they've got one very large business basically or business uh sector that is dependent upon or they are dependent upon for their revenue stream.

Um and so we just point that out as one sort of at the the top of the graph there. Um but if you look at other regional AAA's, you've got a SUFFK that is smaller than Virginia Beach scale does matter here to some degree. Uh but a suffica is at 24 plus%. Um Chesapeake is a little bit below us, but has some other uh fund balances as well. So I think the takeaway here is that where

you are relative to your neighbors and peers um is in good position. you're the largest of any of these. Um, but we're by no means an outlier on the high side in terms of the amount of fund balance we have as a city relative to the size of the budget.

So, with that, we'll talk a little bit about shifting gears, uh, the debt side of the equation. Um, again, talked about the rating agencies, what matters, the finances and the fund balances being very, very important to them. Um, as we get to page nine, we'll start to talk about uh what our debt profile looks like and what we expect that to uh sort of evolve to over the next several years

in terms of future borrowings. Um, as we start that on page nine, um, we'll just give you a picture here of what the taxup supported debt profile is. So, this is purely uh, the debt that is associated with um, our tax revenues.

So, that's general city, that's our schools, flood protection program is in here. This is not water and sewer, this is not storm water. Those are separate um independent enterprise funds.

Basically, those are fully paid for by the revenue streams that support them.

And so, because of that, that's an important fact, they don't play into this uh tax support debt profile that we look at on the screen here. Um there's about a billion dollars outstanding right now. Um it's a large number. You obviously are a very large city, so you have to understand that relative to the size of the city. Um, importantly, and this goes into the planning and the good

job the city's done historically, uh, you pay your debt off in a very responsible manner. So, this is all fixed rate. Um, you look at the graph on the page there, these debt payments basically like a ski slope down in the future. What that does is provides future capacity, future affordability.

So, we'll talk in the next sections about adding new projects, adding new borrowings. you've got a built-in decline that your budget office can work with to layer these new borrowings in over time and try and minimize to the greatest extent possible the impact on the budget. Um and so again, you pay your debts off responsibly and it creates capacity um to add these new projects that we'll talk about obviously

by virtue of the city council approved CIP in the future um in a responsible manner.

Um on page 10 uh before we even get into the new uh borrowings that are likely to occur, plan to occur, um we've mentioned how important the policies and planning are to the rating agencies and you as a city have a series of financial policies that have been in place for for a long long time that help to govern uh how much is borrowed and for what. Um and they do

that via a variety of policies on the screen there. Um I won't read those word for word but we'll show you some graphs of where we stand in terms of those policies even factoring in the new CIP going forward. Um I will note at the bottom of the page here that um as your adviser um working with your staff we look at these about every 3 years to say okay are these the right levels? Um the

world of public finance evolves, the city evolves. um are these still the right policies and the right policy levels given the world of finance and given the city where you are right now and so we've done that. We feel um in terms of our recommendation those policies are still appropriate and in a good position. So not recommending any changes, but just we want to do make sure we note that uh for the mayor and

council um that we have looked at that and look that about every three years and say okay those are right those the right levels. Um and so again on the page there we have debt to assessed value, debt service to expenditures, fixed costs to general government expenditures and a 10-year payout ratio.

So each of those measures a a different lever, if you will, in terms of making sure that the debt profile and the amount that is borrowed for capital is managed in a responsible way so that we go talk to the rating agencies, we can show them that plan, show them where we're going, and again give them that comfort uh that we'll continue to be aa city into the future.

Um so as we shift to page 11 um this is where we start to think on a going forward basis. So again we're in the sort of budget cycle and budget season thinking about the future um and to the planning uh sort of aspect here. um what you as a city have identified across what we call charter bonds, PFRBs, and the flood protection program over the next 5 years is about $1.3 billion of

new borrowing over that roughly 5-year time period. And so as we talk about the AAA credit ratings, one of the reasons those are so so important is as you look at a CIP and a need to go borrow dollars of this magnitude, those AAA credit ratings allow you as a city to borrow at the lowest possible cost of funds in the marketplace. And so that's why obviously at the beginning of the presentation we

talked so much about that because as we think about where we're going over the next several years is going to be very very important in terms of making sure as we take on these various uh new obligations we're able to do so at the lowest possible uh cost of funds. Um one point we'll make here um the top left of that chart there uh under charter bonds at roughly $162 million. Uh we are

planning as a city to move forward with those in the very near term. So, we've got a time schedule at the back of the presentation. We'll talk through um the rest of the uh sort of planned issuances here. They're very much methodical. We see they're about every other year for the different types of bond issues. Um they are for the moment largely planning estimates, working with obviously

finance, working with the budget team.

We'll finalize what exactly those dollar amounts will be based upon the actual cash flows. Um but we are uh moving forward with the 162 million that you see in the top left hand side really in the first portion of the calendar year.

So we just may note that to council that'll be back in front of you in the relatively near term.

Um so the next couple pages we'll just give you a visual. We've talked about these policies. Um talked about how important they are. What we're really doing on these next couple pages is layering in this roughly 1.3 billion that is planned to be issued in various installments, not all at once, but it's in various installments over the next 5 years and measuring that relative to these policies that you have. Um, so

we'll start on the left hand side, debt versus assessed value. You can see where your policy level is in the red line there. Um, as we stack up those various bar charts using what are hopefully conservative assumptions, um, you can see that we have a very solid level of capacity relative to that desk debt versus assessed value policy.

So, we're in good shape there.

On the right hand side, debt service versus the budget. Um, that's really a measurement of how many pennies out of every dollar in the budget are going to make a debt service payment. Um, you can see as we start to layer those different pieces on the dark green bars are the existing debt service. You see how that falls off very very nicely. That creates the ability and the capacity if you will

to start taking on uh the lighter green and then the tan and the blue which is the flood protection. Um, and really maintain for the moment a relatively stable um amount of of the proportion of dollars from the budget going to debt service. Um but again it does start to creep up in the outy years especially as the bigger dollars for flood protection comes in and so we watch that very

closely. It's a measurement of annual financial flexibility um and you are in good shape relative to that policy. We need to watch that very very closely um on a going forward basis.

Um the other two policies we'll point out again in the graphical form here uh left hand side fixed cost ratio. Uh this is really taking a similar concept to debt service to expenditures um but broadening it a bit and taking into account pensions and other fixed cost payments that you have as a city. Um that's a little bit closer in terms of relative that ratio. We're going to watch that very closely um as that's

important to the rating agencies. Um in the right hand side the 10-year payout ratio again making sure we're not pushing those debts too far into the future. um which you are not doing again given your existing debt structure with fixed rate bonds that are basically paid off within 20 years.

Um so with that I'll pause for just a moment and let Nikki take over here with the plan for this next borrowing.

Welcome.

Thank you. Thank you Kyle. Um so I'll go ahead and move on with as um Kyle alluded to um we've already started planning for the next general obligation bond issue. um it will be a reimbursement of already um spent uh monies for uh city projects and as well as the school projects. So you can see down there it's about 115 million of city projects that we've spent on already and a little over 47 million for

school projects. Um, and as the debt metrics showed previously when, um, Kyle went over that, um, we are projected to stay within all of our, uh, debt management policies with the projected, um, bond issuance, um, and we will continue with our, um, historical practice of financing them over 20 years um, at level principal. So, we stick with that um, paying off the principal as soon as possible. and we've already

um coordinated with the budget office to make sure that all of these um additional debt service payments are included in the budget planning.

Um so Davenport also uh routinely reviews the city's currently outstanding debt to see if there's any opportunities for a refinancing and we are fortunate that that is the case. Um, so interest rates are at historically favorable levels. Um, and they've identified some um, potential opportunities to refinance um, some of our older debt um, at a savings. Um, and we would have the

opportunity to reduce the interest rate on the bonds to get these debt service savings, but we will not be extending the maturity of the bonds, which is another um, best practice per um, GFOA.

Uh the industry standard is that we um have at least uh 3% um net present value savings on the debt service. So um if we don't hit the the threshold, then we would just not refund those at this time until we can recognize that type of savings. Uh currently the um Davenport is estimating about $2.9 million in debt service savings. Um and we are going to work together with Davenport and the

budget office to see how we can best structure that to um provide the most relief to the operating budget um to give us some options to um you know fund some other things that are important as well as debt service. Um and then finally um as we mentioned it's subject to um current market conditions. So up to the day of the sale, we could um decide that we're not going to hit that

3% threshold and so we'll just pull that from the sale and do it at another date.

In in my um experience, sometimes we just go back a month later and do um the refunding a month later. So um it's always on our radar. Um so we'll keep that in mind. And now I will hand it back over to Kyle for our concluding comments.

Thank you.

over here.

Welcome back.

Thank you, sir. Good to see you again.

Um well, just a couple concluding observations, then we'll give you some next steps and obviously any questions mayor, council, you have. Um uh but again, first takeaway there. The city's financial standing is very strong. And so, um mayor, city council obviously at the helm of that, um with your administration manager budget and finance office um and the rating agency recognize that as do we. Um, second

bullet point there. Um, you know and recognize, we know and recognize you're taking on what we call generational amount of capital projects. Um and so understanding this planning process, knowing how important it is that the uh recurring revenues again are keeping pace with recurring expenditures helps to make sure that that structural balance remains in the budget as you're taking on these very large and important

uh again what we call maybe our term generational capital projects. Um, third bullet point there, you have debt capacity. Um, in terms of, as we thought about those graphs a couple pages ago, you take the the bars and look at those relative to the red lines, you've got capacity, and that's what we call capacity um, in terms of the debt side of the equation. What is arguably more important um, than capacity um, is

really the affordability side of it. And so that again gets to the concept of the operating budget, working with your budget team and making sure um as Nikki just mentioned, obviously I already coordinated with this next borrowing to make sure those payments are budgeted into uh on a going forward basis. Um and so that affordability side of things is arguably more difficult in fairness than

the capacity, meaning those ratios we're looking at. And that's obviously the season you're going into right now to make sure those revenues again are keeping pace with the need to cover both operations and capital.

Um, and as we look at all of that, um, again, we'll continue to watch and evaluate and we always appreciate being able to be here with you, uh, mayor and counsel.

um last page and then again any questions mayor and council you have but our next steps um really here that uh this afternoon I guess maybe afternoon evening um as it kind of bleeds from one to the other but the balance of the calendar year really working closely with uh your senior staff here to get a number of these events teed up for the early part of calendar year 2026 it'll

be here very quickly um uh January 6th on your uh agenda will be a authorization for this upcoming borrowing that both Nikki and I have mentioned a couple times. So again, it's all been planned for within your budget.

It'll come before council on January uh excuse me, January 6th. Uh balance of January, you'll always be working very hard with uh your senior staff here in terms of uh your winter retreat. Um in terms of the timing of the bond issue, um that'll be in the what we call February March time frame. So the last action of council will meet be in January and then over the balance of January into February into March. We'll

go through the process of updating the rating agencies presenting the current state of the city then ultimately selling the bonds competitively in the marketplace in the February to March time frame and that'll be when the interest rate is locked in and again hopefully also when we're able to save some dollars via that refinancing that that Nikki mentioned.

Um, and then lastly during the spring, obviously with uh the leadership of your manager, budget and finance, any other uh analysis that needs to be done among these important variables, we're always able to do that. And so with that, mayor and council, that's what we have for you this afternoon. Um, I'll pause there.

Any questions or anything else you'd like to elaborate on?

Stacy, great presentation. Uh, very clear, very understandable. Um, page seven for a second.

I'm just going to say this because I have to, but you you're uh you expressed some concern about the uh dip in the uh fund balance.

Uh we've had good strong revenue growth over the last several years, but our uh spending has outpaced the the rate of spending has outpaced the rate of increase in the revenues. So I mean this graph shows pretty clearly that spending is what's driving that. It's not the revenue streams.

Yeah, it's it's a combination of them.

And so to your point, the amount of fund balance as a proportion of the budget has shrunk. Um the prior slides though, what you also noticed is that your your natural revenue growth has been about that 5% level versus the expenditure growth about 4.7. And so on a recurring basis, you've been pretty well in balance. Um but it's really a question of making sure that the corpus of those

dollars and the unassigned is able to keep pace with the size of the budget.

Hey Josh, thank you very much for the report. I enjoy um I've learned a lot over the last several years and um consistently amazed by our budget staff and um what they're able to do. Um a couple of questions for you. Uh the first one is um slide five.

Um I I read I read a lot of this stuff as just kind of you know warning markers and and uh things to keep in mind. And uh the second to last bullet that says um although not expected sustained decline in available general fund balance below 7.5% would reduce a city's financial resilience and um and our credit rating.

So I'm I'm thinking about things like attrition and vacancy savings. um and on a side fund balance um and and also the investments we're making in capital you know reinvesting in capital infrastructure particularly along storm water and flooding. Um so um I know a a lot of times I mean when we have emergencies or um exigent circumstances that um that that we use these as budgeting tools. Um, I I was hoping that

you you might be able to kind of explain a little bit about how important that is, not not just to our our our credit rating, but but also um our cost of borrowing money. And I've got one follow-up question for you after that.

Yeah. In terms of Councilman, the the I think correct me if I think where you're pointing out there is that that unassigned fund balance is just one of those very critical measures and markers for the rating agency in terms of the overall financial flexibility of the city. And so a lot of their assessment of it comes down to what flexibility do you have to weather a storm, whether

literal and figurative, you know, fig excuse me, literal or figurative, knowing that that we're here um on the coast. And so things like vacancy savings, attrition, so forth and so on.

Um what they're really going to care about um and the fund balance is that one of those primary markers is what's your financial flexibility? What is your ability to weather um again what may be a slowdown in the economy? what is your ability to weather something that um you as you think about the economy? Um we're by no means, you know, financial prognosticators or economic prognosticators. Um but what's your

ability to weather something that doesn't grow at the same pace it has the last four or five years? And so I think the flexibility side of it and thinking about it in terms of the budget, where are your levers that you as a council can pull when you end up getting a surprise? Um because that's just the way, you know, it's the way the world works. set your budget effectively as of

July 1st and you've got 365 year excuse me days uh to kind of work through that.

So I think if it's if it's helpful to take away maybe one concept from there and the importance of it all and your point about how important these AAA ratings are to making sure it's as affordable as possible, it's really making sure you've got good flexibility in terms of finances clearly with the fund balance and also making sure they get structural balance within the budget. Well, and I appreciate you

saying um when the storm comes because it's not just a coastal storm because I remember what was it three years ago almost. We had a tornado that I mean we don't typically have those here but it was absolutely destructive.

I believe we relied upon um you know unassigned fund balance or some some other kind of flexible measure and and and and to be able to respond to that appropriately. Um, so, um, so I wanted to throw that out there, but, uh, to your point, um, it was actually the vacancy savings, right? So, I think with the how the city currently budgets for personnel, it allows for the council to be able to pivot towards using things

like vacancy saving in lie of going into the on a side fund balance, which reduces the amount of money that we have to kind of meet that um, debt matrix. So is it goes back to the conservative budgeting principles that the rating agencies like to point out that the city has the conservative budgeting principles that that that also get us within two 2% every year of our uh ginormous operating

budget which I think um our budget staff needs to be commended for um and I know they are but u my other question is relative to schools and some of their capital needs um and and you know putting that in the big picture uh you and and layering that in with with our citywide needs and and some of the the recent conversations that we've had around um the rising cost of health

care. Um I I want to make sure that um our schools are coordinating with you and with with with the the the city side of the house when we're making these long-term projections and what our um asset replacement schedules are and capital reinvestment needs are. Um so that that we we we don't get into a place where we we diverge.

Yeah. And that that is that is critically important because again in Virginia where we're a little unique in Virginia even relative to the rest of the country is we really as a city um while the schools are separate and independent um you really are responsible. You're sort of the the funding source of last resort for those schools and especially when it comes to capital. And so the concept of having to

borrow for schools, which is different in other states. If you go to you go to Ohio, the school district is separate.

They've got their own taxing power. They can go borrow for their own capital needs entirely independent. Um in Virginia, we don't have that. We've got in a situation whereby the city and some places obviously the county um is responsible ultimately for the borrowing for the school capital projects. And so to your point is absolutely critical because it's such a large portion of your CIP, such a large portion of the

capital that needs to be updated and maintained and enhanced and all those different things. Um and so that has been happening historically and it'll continue to be very very important especially as you think about having to do all the things you as a city need to do including flood, including schools, including your other general infrastructure. So I think it's it's a very important point um and one that is

critical to that planning process in terms of what can be done responsibly um within the various parameters that you have any well I just want to say any city would be thrilled to have gotten report like the one we got today you know with our AAA bond rating and all the agencies and this it's not always been so I mean I remember and Barbara does too that we didn't have this AAA bond rating and

once we achieved it, we have wanted to hang on to it because it's so important and it saves the taxpayers a lot of money, but it's also good good budgeting and good financing and we owe a lot to our staff who has helped guide us and and get us to the right place and we're so grateful to you and and to the councils over the years to to get that

AAA bond rating and to have such a good report and we really appreciate Davenport coming and sharing this with us and I think it's a great way to end the year.

Hey work.

Thank you mayor and I want to agree I want to commend the Davenport team for working with our senior staff Nikki Griffith. Welcome and congratulations and and everyone here staff should be commended for this report. It's a very good report. So, case in point, if you could comment, Kyle, on our flood protection program went from $567 million to over 1.5 million and we're able to take that hit and extra over a

billion dollars extra through I guess refinancing, but you're these are generational expenses that you're talking about.

Can you comment on how we're or I mean that's a big accommodation. It's very very large and it's it's I mean there's no better example of a generational investment that a city has to make than than what you're doing in terms of flood. And I think it it really goes to your ability to think long term. And so the city's ability to take what was originally 567 and a half and through

all the various reasons that we don't need to go into. I'm certainly not an expert in, but be able to plan longterm to make sure that is manageable over time, which will continue to be a process to make sure that you're able to manage that. Um, but it really goes to the expertise of your staff to be able to think outside of just the next couple budget cycles. Um, but really over the

next 5, 10, 15 years, how does that get rolled in in a sustainable um and responsible manner because that again there's no no better example of a generational capital project than that.

Mr. Mayor, to add on what Mr. Remick said I want to also acknowledge that when um when staff is ideating ways to manage the debt and manage the city's finances, we use um Davenport as a backs stop, you know, cuz we're not their only client. They have clients all across the eastern seabboard and also into the Midwest. So, when we come up with ideas, we use them as a backdrop to kind of be

able to say, "Hey, is this something that's going to resonate well with the rating agencies?" For example, last week when we presented to you all about the plan to take some funds from projects that are funded out in the latter years to bring some funds to projects that are ready to go for construction. Now, that report gave us some sound advice on how best to kind of package that and really

kind of helped us feel like that was the best way to move forward on what we presented to you all. And Kyle, I don't know if you want to add anything to that before you guys wrap up.

Yeah, I mean, I think it's it's um Mr.

manager to your to your point um what we enjoy doing and certainly we work with a bunch of different local governments and so it does give us a good perspective on what's been done other places your flood protection program is unique um but just how to think about and manage very large capital projects um they take a long time that's an aspect of all of these they get adopted in the budget certainly

the planning and the design and the permitting the execution of all these takes a long time it's just the nature of it um and so helping which we appreciate to to bounce ideas back and forth um and understand again where does this take us not just next budget year but the next four, five, six, seven, 10 years down the line is something that your staff does a very very good job of.

Okay, Amelia.

Yes, thank you again both and welcome. I wanted to point out on your concluding observations. I had two. one you've already mentioned to do with generational and at the end where you have a key component that is very important because we try to look in many ways to continue generating revenue.

So talk a little bit more just to kind of bring that home.

Yeah, I'd be happy to. Um and so again to your point there, we've kind of mentioned this a couple different times, but um just how important it is to make sure that your revenues, which obviously at the discretion of of the mayor and council, whatever those revenues may be, you as a very large city have a variety of different levers you can pull to use use maybe that that metaphor in terms of

the revenue growth. Um but I think what we've really seen in all the places that we work, every place is unique, but um this dynamic whereby the very fast revenue growth that we had coming out of the pandemic um created a a nice gap relative to expenditures for a couple years, but that has narrowed. And for most places that we work with nowadays, inflation is lower than it was, but it's

still a pressure. And so we do see um it being very important to make sure that in whatever revenue sources you have, whether it be property taxes or other types of fees and charges, that those are keeping pace with inflation on an annual basis. Um because again, it's just a fact of life. Um the inflation situation is what it is. You don't control that. We don't control that. Um but making sure that your revenues are

growing in line uh with those recoccurring expenditures um is very very important.

Yes. Thank you. because I still credit the mayor on during that pandemic where he went to war about getting the beaches open.

That's that is a strong revenue and he made that point.

Thank you.

Thank you.

Thank you. Anybody else? You know, let me just say, you know, I think we got a lot to be proud of. Um, you know, for the way we've handled things over the number of years, especially postco where there are tremendous, you know, pressures put on us and quite frankly, a lot of the pressure uh pressures are, you know, still there as evidenced by inflation. Cost of government for every

municipality in this great country of ours has gone up. Uh and you know it's it's unavoidable but once again you know it's the confrontation of reality that we had to deal with it and it's not it's the cost of building materials and you know once again we go to the things that you know the essential services that we do that maintain our quality of life.

You know you can't you it would be meaningless to have a great AAA bond rating if we didn't have the quality of life to go with it. And I think we were able to balance very well to the point where, you know, we get national recognition for the quality of life that we have, the safe city that we have, you know, things of that that nature. And then, you know, dealing, you know, with

the other things like, you know, within our mil rate, you know, there's 30 cents of that come from unfunded and underfunded mandates, uh, and things of that nature. But the fact that and you know it it takes a total team. It you know it takes uh it it's not it goes well beyond the council. It goes to management. It goes to the people of Virginia Beach uh for the quality of

life they have having the confidence to put their businesses here and things with us. But once again, as we look forward to the future and see the numerous challenges we've had and we were just talking about that with, you know, the storm water regulations that we're going to be obligated to take care of, you know, it's sure a lot better going into the game with a strong financial base and that's how we're

going to confront the future. So, I just want to say you all thank you all very much. Great job, folks.

Thank you.

Okay. Parks and wreck. Yeah.

Yes, sir.

All right. So, Mr. Mayor, members of council,

Yeah. No, you're fine. So, Mr. Mayor, members of council, at this time, um, the parks and recreation director, Michael Kersh, is going to present to council a presentation that we presented to council probably a year and a half ago. But, um, Albeia, we when we did that presentation, we didn't have, um, some additional council members. And this item came to you all I think a couple weeks ago from your planning

commission with a recommendation to adopt this part of the a part as part of the um the comprehensive plan. Um director Kersson is going to go over the parks needs assessment to kind of refresh the council and the public about the the strategy and the plan and also to kind of reiterate that what council approves here is not necessar is not appropriating any funds or or tying the city to any kind of financial

requirements associated with what's proposed in the plan. So, Michael, the floor is yours.

Great. Thank you, manager Haney. That was a perfect leadin. Uh, again, Michael Kersian, parks and recreation director.

It was updated in 2000, 2008, and again in 2016.

The goals of that plan emphasize improving connectivity through bikeways and trails, which remain a top priority for the department, and providing a park within a 10-minute walk time of all residents, which is a fairly standard goal amongst progressive park systems across the nation. The newly updated 2024 plan is a continuation of those planning efforts and really contains a lot more nuts and bolts on how to get

there and an overall assessment of the park system. Um, so a couple things, uh, one of the things we wanted to do was we wanted to look at changing recreational trends, changing landscapes, the desire to view our park system through a more equitable lens. Uh, we really wanted the goal to have external experts evaluate our entire park system and all of those goals came together in our updated

master plan. If you recall, back in 2020, we had completed a vision for the rec centers. That modernization plan provided staff with the vision, the overall needs and estimated costs for ensuring our rec centers remain vi remain viable well into the future.

Similarly, we are in a need of this a similar type of study for the park system, its overall needs, costs and strategies for moving the park system forward. We retained a highly qualified team of national consultants and we began this pro process in 2021. Uh following extensive public input and internal analysis of the park system, the plan was presented as Patrick said to city council in April of 2024.

That presentation was a lot longer than what I'm going to do. I'm going to give you the 30,000 foot view um of their presentation. Uh so it was a lot longer.

to do in more details, but I'll give you a quick recap.

As manager Duhaney mentioned, I'll tell you what the plan is and what it is not.

In essence, the plan is an outside objective review of our parks. Provides recommendations for some various changes. Some of those are either even minor internal changes. I'll I'll show you one of those in the presentation.

and makes recommendations for prioritizing future parks and future park invest improvements based on resident input for when and if funding ever becomes available to do so. It provides an overview of the needs of the park system, the associated costs associated with each of those, and it ranges from uh addressing deferred maintenance backlogs for existing parks to the opportunities to serve new

residents and currently underserved neighborhoods that have no parks. It provides guidance and data on where and what kind of investments to make for the greatest return on investment. However, this plan is not you must do this, you must from that. Like any master plan, it is simply a vision and helps to guide staff through the future. Approval of the plan in no way obligates the city council to fund any of the

recommendations andor increase funding of the park system in any way. It merely attempts to provide sound data and public input on the highest priorities and gives both staff and council an idea of the overall park needs of the system.

Finally, having an adopted master plan is a key component to maintaining the department's national accreditation.

We were the very first department in the state of Virginia to become accredited in 1999.

We were the 19th in the nation and only 2% of all municipal departments in the nation hold accreditation. So we're very proud of our accreditation and this is a key component to maintaining that status.

Thank you.

So all that being said oh Chad this is not working again.

Can you advance it for me? This happened earlier on the previous we were helping Davenport out and was wasn't working on theirs as well.

And by the way, with me, of course, is Chad Morris, administrator for capital planning, who who you all know and is responsible for the capital program of the park system.

It's doing the same thing. It's advancing on the computer but not the screen right?

I clicked it like 10 times on presentation to get out of that.

Everybody has a paper copy. So So if you want to just go to the I'll I'll just keep going. Um if you look on slide three, the hard copy. So a really quick overview of the process that our consultants used. They dove into existing condition conditions. They looked at demographics. They actually went out and inspected our parks on a random basis. They reviewed our uh statistically valid household data that

we get every two years. They looked at our levels of service. They look at national recreation trends. They combine all of that together to give you an overall snapshot of your level of services, your gaps, and your needs in your park system.

One other thing we did with this uh parks master plan unlike any other past plan is equity was a major consideration for this update. Four measures of equity were identified early in the process and most major park systems across the nation that are doing these plans are weaving equity into that. The four lenses of equity we looked at are environmental equity, access equity, design equity, and economic equity. And

I'll touch on those a little bit more in a moment.

So if we go to slide five, which eventually we'll get up there on the screen.

Nope.

Not working.

Another one of those equipment malfunctions.

We try now.

How many city staff does it take to Uhhuh.

So I'll keep I'll keep moving on as they work on that. Um if you look at slide five of the presentation. So one of the first actions of the consultant was really to gain an an objective look because again we're staff. We can be somewhat biased when we look at our own facilities and our own services and gain an objective look at the park system.

They looked at our developed park sites, our current undeveloped park sites. They looked at the quality of those parks, the types and numbers of recreational amenities to meet the needs of our population. And we're there.

They looked at Yep.

They looked at access to parks. Thank you very much. It was all Chad.

And that really gave our consultant a snapshot on the current status of our park system. Who were serving, where, how many amenities we have, is it meeting the demand, what's the quality of our parks out there. Uh, one of the things they also did, as I mentioned, some of the aspects of the consultants work was really looking internally on how we even classify our parks. Here's an example of one recommendation they

gave us that we've already implemented uh, leading up to 2024.

We had been classifying our parks into 16 different categories. It was just a little ownorous and uh they recommended us moving to a more manageable five types of park classifications. That in no way changes the park system, in no way changes the level of services, in no way changes the quality of our parks, but really is an internal change on our part uh to streamline how we look at our

parks and how we classify them.

Next really came a deep dive into the current status of the park system, its amenities, access equity analysis, and where the park system is likely meeting current recreational needs and where it is lacking in certain amenities. As you can see from this chart, there are numerous types of amenities either non-existent or at significant insufficient numbers to meet current demand based on population, based on

national trends and local trends.

A good example of this that you're all aware of is outdoor pickle ball courts.

Um, according to all of our uh data and our national consultants, we would need approximately 20 to 25 new courts installed today to meet current demand.

And this sport is only growing. It remains the fastest growing sport in America with 20 million players in 2024.

This is a 45% increase from the previous year and a 310% increase over the past three years. Additionally, pickle ball is projected to grow at a compound annual rate of 15% for the next eight years. It's not going away. It's continuing to grow. Professionally, in my career, I've never seen a recreational trend take off this fast and sweep the nation so quickly. It's just one of the many reasons why

updating your master plan every 10 years at least is so needed. Uh trails another highly desired amenity by the public continues to m mimic national trends. Uh and we are uh making strides on that and the VB trail once it's built will certainly help meet some of that current unmet need.

The consultants did an excellent job of overlaying various data sets based on the previously mentioned equity dimensions to determine areas of the highest need for potential future investment. Uh you can see on the the maps here where the highest needs are.

There's the four uh different levels of equity we looked at. For instance, access equity is that standard 10-minute walk time to a park. Who has such access versus who does not? uh the CDC social vulnerability index is an index of 20 or 16 uh different variables that's used um by the health department and many others as well as a conditions assessment.

The consultant then took all this mapping and all this data and combines it into one composite what we call a heat map that can help us and aid us in terms of indicating where the highest needs are in our community for different types of recreational amenities.

I will say that while this map gives us excellent information, it does not weigh in what I call realworld factors such as land availability, cost, the types of amenities, the space that those amenities take, and so while it's a valuable tool for helping us prioritize future resources, it's just a tool. So, I just want to mention that the 2024 master plan wraps up with a list of the top recommendations for the

department and city city to consider as we move into the future. Each of these recommendations come with a cost and they are each exclusive of each other and they're focused on five key areas.

The first, of course, is to continue to address deferred maintenance within the parks. This is their routine and normal repair and replacement of existing amenities that have outlived their lifespan. So it's just like us going in approximately 15 to 18 years replacing a playground that needs replaced. We're replacing an existing amenity in an existing park. This is critical for the continued delivery of our existing

levels of service. And if we want to continue providing the level of health, wellness, and social outcomes that our current park system provides.

However, only focusing on that recommendation and and doing deferred maintenance backlog uh doesn't fully recognize nor capitalize on our land assets for the greatest ROI.

nor does it help bridge the deficit in park access or things such as rec recreational trends such as pickle ball or some of the amenities that we don't have um in the system at all. Um hence the additional recommendations attempt to address those deficiencies by recommending investing at some point and at some level in the future investing in our underdeveloped parks as well as investing in our backlog of undeveloped

parks that are still awaiting to be opened. Uh just for a little refresher, underdeveloped parks are those parks and we have about a hundred of them. Uh where it's a park and it has maybe one recreational amenity. So it might be a 5 acre 3acre neighborhood park with a playground and that's it. And while that amenity is great for that subset of the population with kids between six and 10

that want to play on a playground, it's really good. But a large portion of the neighborhoods and the area around that park don't utilize the park because there's nothing there for them to do. Uh research is pretty clear. It shows once parks reach three to four amenities within a park, visitation utilization skyrockets and then your RORI goes up.

So for a little more investment, we can really capitalize on these land assets that we have. So that's underdeveloped parks. Undeveloped parks are the park sites that we've acquired over the years that have really have no amenities whatsoever yet. They're awaiting future development.

It's great that we have those. The city was extremely uh looking to the future.

A lot of these properties were purchased with the open space program. Some were purchased 10, some as much as 20 years ago. They're still awaiting development.

Uh we've only opened two new parks in the past 10 years and we have no new parks in our CIP scheduled right now are funded for the next five. So there's no new parks coming other than of course the tip funded Rudy Park project. That's a challenge for us moving forward.

If and when uh the city can uh invest in some of these underdeveloped or undeveloped park sites, we do have a list prioritized. Now I will say it should be noted that when this plan was completed the consultant's recommendations were made as a snapshot in time. Since that time there have been additional acquisitions that have occurred such as the Washington Square parcel uh which is in a high needs area. No

parks was identified um years ago as a need for a park site. As well as we have the upcoming anticipated Bayside sixth grade campus high needs area. The community there had been advocating for this for over a decade. Uh so both of those would be high priority parks as well. But you can see here the list um of current park sites uh that we believe would be the most strategic in future investments.

There's also a need to acquire land. Um that's if it's even possible in some of these areas. Sometimes it's not. Um but there is uh the need for in areas that have no parks that we don't even have undeveloped parklands in these. If we ever want a park in these neighborhoods, we'd have to acquire the land to do so.

This map tells us where we should go to look for that land if we wanted to have the greatest ROI on our acquisition dollars.

We also look at water access. It's very important for us to provide water access. We're surrounded by oceans, bays, rivers, marshes. Um we've really come a long way. Uh there's a little side note there in the bottom of the slide. We actually have five uh water access points right now under construction or design. Uh five additional ones. So that's impressive.

Two of those uh were additional state funding that came to us um after the pandemic. Um the historic Kensville kayak launch is just about wrapped up, Chad, or almost wrapped. Is it wrapped up now?

It's not open yet.

Not open yet, but construction is just about done. Uh so we're making headways but again moving forward we have identified additional park sites where we could add additional water access for the public public.

So here is where real life considerations play into any potential future decision-making on investments in the park system. It's a combination of all these factors. Feasibility, costs, needs, city goals, they all play a role in any future master planning or funding.

What's this? What's the entire cost of all these recommendations?

A lot.

Uh, but I will say when you see this next slide, you need to put this in perspective. Uh, you heard Davport talk about a city of our size. We have a large park system. Every park system has some level of deferred maintenance.

Every park system has needs just like schools, just like the storm water. So, the next slides I'll show you is the total fund. It'd be no different than the schools coming to you saying, "Here's a total amount to fix up every school and build everything we need." Or the storm water folks come and say, "Here's what it costs to build every floodgate, repair every pipe, and do everything." This is a snapshot on the

total needs of the park system at this time.

Roughly $777 million.

Now, that's not going to happen. Uh but it gives us an idea of what we're looking at in terms of if and when the city wanted to get to uh reinvesting in underdeveloped parks. If the city wanted to get to investing in some of these undeveloped parks and getting them open for the public, what that would cost.

What is the cost of our current life cycle replacement and our current deferred maintenance? It's all there. Uh you'll also note that land acquisition takes a big chunk of this money and I will just put that aside for right now and focus on focus on the uh top five bullets. Doing so and breaking these numbers up over five-year increments, you can see that the investments are potentially spread out in time and

certainly get a lot more reasonable in terms of bang for your buck and what could happen.

Currently, as I said, we are really only doing uh number two, life cycle replacement. The vast majority, almost 100% of the park and recreation CIP budget goes to life cycle replacement, repairing and replacing existing amenities. Uh we do not have the funds to really do any amenity construction for undeveloped parks or or undeveloped parks.

So, at some point in the future, uh during um a formal council meeting, uh we'll be coming forward hopefully and asking for approval of the master plan.

But at this time, I'm happy to take uh any questions.

Any questions at this point, Stacey?

Thank you.

Somewhat encouraging.

Good. Um, one is when you look at um I guess go to page seven.

So I was looking at the the needs where we have these shortfalls and u one of the items was trails.

shows us, you know, severely lacking in especially, I guess, softpack trails.

But we do have First Landing, which is a state park, correct?

Which is a tremendous resource and to the community that I guess if you included that that that helps.

It does quite a bit.

And we have Back Bay, which is a phenomenal phenomenal. We have the beaches that you can walk on. Uh but keep in mind when we do so most of this data this is coming from a random household survey that surveys the public and says what's your need if they have access to the HOA pool or tennis courts or playgrounds if if they go to first landing that's wrapped into their thought process on their response

for need. So the fact that we have those assets are captured in this data if that makes sense. Okay. And then can you give us a quick update on the status of the entire BB trail?

Sure.

Uh Chad was here and he's the expert on this. Uh phase one uh from New Town Road in Norol just uh past town center spanning over Independence Boulevard.

It's fully funded under design.

on the agreement.

We're still waiting on the signed agreement for the federal grant.

Phase four is fully funded through the state grant and we're waiting for word on our next federal grant for phase two that we might hear about within the next month. Anything you want to add to that, Chad?

No, that's correct. Um for phase one, um we're still waiting. the the government shutdown. Uh getting the agreement with the federal government kind of delayed that, but we should be expecting that um agreement back anytime soon. Um still working on the design for phase one. And as Michael mentioned, phase 4 is part of the smart scale grant and those funds come forward uh to the city in 2028 and

we'll start the design process at that point in time. Um we're also looking at um different delivery models for for those projects potentially um design build or progressive design build. So we're looking at that to see uh pros and cons of going that delivery method as far as saving time, saving dollars or um best way forward to get that project implemented. Um and then also as Michael

mentioned, we're waiting to hear back from the safe streets for all uh grant um that which we were awarded $14.9 million for phase one. This is the same grant that we submitted for and we do hope to hear sometime this month.

And that was for 20 It's a 20 million 20.8 million.

Which phase is that?

That would be phase two from Constitution to South Plaza Trail about 2.3 miles I believe.

Phase three is where unfunded currently.

Thank you.

When we get the signed agreement back from the feds, that starts the clock on getting phase one built and we have a fiveyear to get that built and that one involves the bridge over dependence.

There's going to be a bit of engineering and and work. So once we receive that sign, we have five years to get that phase one done.

Hey, Cash Hutch and Ameilia.

Oh, um I was just saying hello. I Good job.

I see your hand.

No, I know. I know. I know.

Thanks for letting me follow you.

Don't say hello.

So, um, first thing is, uh, to piggy back off of what Stacy's asking and talking about is like just like you did on the the last getting the slides rolling and all, Chad, let's let's let's hit that fiveyear mark in like three years for phase one so we can get some people on it. You know what I mean? Like that's a big I know. I know. If we don't

get the bridge yet, okay, I get it. The bridge over troubled independence, as we'd say. But uh but you that's going to be a big project. But if we could get all the way there, that would really be nice. Uh sooner, you know, I think it would be a lot for us. And I don't know, over under promise, overd deliver, you know. So hopefully that's where we are.

Um more serious note though is district 4, 7, and 10. They're the red. You can see them. They're the red. They're the red colors in there. Um as far as that goes. And my question goes with uh the the the amount of money that I saw. I know you can't be on two slides at once, but it was like was it like some it was $18 million or something like that to purchase?

My question is sort of is is the is there land available in 47 and 10 to bring them up and is that a really expensive? You know what I mean? Is there is there some wiggle room there?

It's a great question. I'll say two things. One is any map and any data set needs to be looked at as a tool and just one data set. For instance, Green Run is a master plan community which is a massive subdivision in one of these districts that has all HOA parts. And so we show a park gap.

There's really not a park gap there because we don't we wouldn't buy land because they have multiple HOA parks for their area in there. And so you got to take that real world consideration and fact with the N. But I will say, is there land available for for parks?

Probably, but it's probably few and far between, likely expensive. And we actually have plans to potentially go out and get a consultant to look parcel by parcel across the city to what really is the potential there to help us plan for some of these areas. Uh that that Okay. very just a little bit of a followup to give a push for this as well is um with our park at um in district

one between Indian River and Providence there I think we've called it Woodstock I'm there's like two or three different names we call it over there but anyway people show up that are close you know what I mean is is yeah we've got some wonderful big parks and some big areas that we can go to but folks that want to walk on a Monday Tuesday Wednesday morning yep they're not looking to go very far and

they don't need a 10 mile track, you know, just something that's a half a mile, you know, they can make a few laps. So, it I I just and I know I'm preaching to the choir, but I'm just saying as far as I think that's an important area to look at, you know, especially if we could string a couple things together, that would be even better.

So, and to put a plug in for uh Councilman Baluchcci just not here, let's not forget doing some connection with uh Mount Trashmore. Anytime we can do that, I think would be a big a big deal.

Okay. Thank you. Let's go Amelia and then Stacy.

First of all, I want to thank you for the presentation.

You remember several years ago we started mentioning pickle ball.

It's just grown all over the place. So that's interesting you brought that up.

But um looking at one area, you basically touch Bayside six.

What's going on with that area? Would you say cuz know we're looking at down the road Mhm.

to have generational intergenerational park in that area. Can you speak to that for a minute?

Sure. I don't know if Patrick wanted to, but of course, city council has already approved uh to transfer that property uh to the city for a future park. There are some steps that need to happen. Uh they need to demolish the building, get it down the grade. We're actually talking to them right now. There's a there's an agreement being worked out. I believe they're going to use a reversion funds

to do that. Uh then it needs subdivided.

Uh kind of the plat needs subdivided.

Once that happens, it'll come to city council for formal. I believe you'll take another step to formally accept that property. Then it that will be a nicesized property. That'll be a community-sized piece of property that can serve both as a neighborhood park and community park with some larger amenities. Uh and then that would go into our undeveloped inventory of park sites um across the city.

Okay. and on another to do with the trail. We're praying because that comes right through New Town all the way along Independence and so forth all the way along Taylor. So that's a lot for district 4.

If I could say one more thing about the Bayside campus. Uh, one of the things our master plan consultant recommends is if and when um we can find additional investments to build and open new parks.

They recommend and we concur where possible, not every year of the city it's possible, but where possible focusing on communitysized parks. While they're more expensive to build, the bang for the buck, the usage is tremendously when compared to smaller neighborhood parks. and only communityized parks can get us the amenities that are most in demand. Dog parks, athletic fields, pickle ball

courts, you know, these are the things that the public's kind of screaming for, they need to go in these bigger sites.

And so for that reason, many others, uh, when and if Bayside, uh, property comes to us, it would probably move up the list in terms of prioritization pretty quickly just based on factors such as that because that's what our consultant recommends doing is focusing on those larger properties to really get these amenities in that the public's the public's needing.

Thank you. Okay, Stacey and then Josh and then Jennifer.

Slide seven.

Um, is there an opportunity to join the venture with either private uh sources or schools, universities, uh, locally here to help in the development of especially the ITA where we're looking to do some really good things with, you know, action sports. Yes.

Uh have have we looked there? Is there um a thought process about using some other re you know resources?

Sure. A couple short answer is yes. Um out of the four cities I've worked in and out of all the other park recreation departments I know of and directors I talked to, we probably have the best relationship with our school system that I've ever seen. The public can use those assets on the school grounds weekends, evenings, all summer long. We do cost sharing with them uh to pay for those

things. We count those assets in our inventory, give them a partial credit for public use. So that in itself with the public school system is amazing. Um we have uh numerous times in the past reached out to universities to gauge their interest in joint ventures. Uh we've had good conversations, but unfortunately they typically want to they don't want the general public coming into their sites if it's ever

built, right? they they just they got to keep it for their residents only. When it comes to action sports or major uh projects, there's certain opportunity to seek private funding.

That would be future RFPs, future RFIs in terms of interest levels and who has capital that would want to invest in something. More commonly, I've seen across the nation kind of what we did here at the sports center. The city builds it and pays for it. You have outside groups that want to operate it, but seldom do you have somebody coming to the table with 10 20 million to build it on their own because

the return on the finances just aren't there. But it is possible.

I'm thinking um one thought I had is a cross country track in the ITA.

Yes.

If we had a worldass cross country track course I guess they call them. we had a world-class cross country course that the local universities would certainly be able to to use that our school system y would be able to use that and also be available to the public time. So I I just see that as a great opportunity to bring all those resources that they would have a they have a stake in that.

I agree.

Thank okay Josh and Jennifer. Thank you, Director Kershman, um, and Mr. Morris for, um, coming back and, and sharing this with us. And, um, I think it tells tells a whole bunch of different kind of stories. Um, but the one story we should all be really proud of is the award-winning parks and rec department that we have. Um, and, um, the wonderful park amenities that we have and the number of them.

um and and how impressive your staff is at at managing them um considering, you know, the the level of investment and the geographic scope. Um and and as Councilwoman uh Ross Hammond was speaking and Council Member Cummings um brought up the how do we pay for this stuff? Um, I you know, you you all presented a an awesome uh parks and wreck plan for the for the ITA. Um, and we should be looking for

any and all ways to partner with um third parties um and anybody um who who would be able to come and and um build out and help us operate um these amenities. And and I and I think we shouldn't be afraid at this. I mean, it's a really big number on page 15, but um you know, we've been able to use I mean, first of all, our the people who write grant applications in our city are

fantastic.

Yes. So um so where we can leverage other the OPM other people's money um we we should and um you know we we were creative and and work with schools and found a way for school reversion funds to pay for the reubdivision and demolition of the Bayside six rate campus. So, it was it was found money, so to speak. And it really um you know, and and I commend and and thank um city

staff and school leadership and the school board for the collaboration there. And and yet another example is Rudy Park um and the fundraising campaign that um that I know will be successful in bringing in millions of dollars to help pay and underwrite, you know, for those amenities. So, so just because there's a big number at the bottom of the page that these are decades out.

That's correct.

And um some of and and this is and these are choices that we have. Um so I I thank you for the work. Um it it's really great work and I would love to see this come back on the agenda so that we can adopt it and and formally uh incorporate it as part of our city planning.

Okay. Jennifer, thank you. Ben and Rosemary.

Uh just wanted to say the Oak Springs part. We did do some upgrades.

Yes.

Thank you.

Credit for district.

Thank you very much.

We got some of this, you know, done. So, can you share a little bit about what we were able to do in the last budget for Oak Springs?

Sure. In the last couple years, actually, uh yourself um and other council members have have uh been able to provide additional investments to some of our smaller neighborhood parks that have space. uh we have added outdoor fitness equipment to three parks in the past two years because of these additional f and that's where that's where I'm talking about when it comes in un underdeveloped park

there's only a playground there so there's only something to do for young children just for a couple years but by going out there putting in outdoor fitness equipment now you have something for adults to do people that want to work out outdoors and use that equipment it just brings another user group gets more eyes and ears in the park gets more park usage. We have these incredible land assets uh that really a lot of

times uh don't get a lot of use because there's just not things there to do. But by adding these additional amendies, making these targeted additional investments to existing parks can really up their game in these neighborhoods.

So, I want to thank you as well as um other council members who have done this for parks in their districts.

Mayor, as always, Michael, you do a fantastic presentation. Thank you. Thank you.

And uh our citizens love the parks and recck department and all that you provide. And we still have to be very very mindful of taking care of what we have.

We've got the the big three rec centers that are reaching a point that we're going to have to do something soon or we're going to have some major issues.

Great Neck is starting this year.

Oh, good. So we have Great Neck, Bayside, and Prince Sand.

Correct. They they need some serious work done.

Yep.

They were not included in this plan. We only the parks because we do have a funding strategy, a funding source, and a plan for the rec centers. So that that helps. That's why it's not on this list of needs. The rec centers kind of have their own separate.

I'm happy to hear that because But we also throughout the city, you know, there's also the parks that have got to have shelters replaced.

Correct. And that's what a lot of this money that's what this money is going towards. So, still have to remember that we got to take care of what we have and and balance. It's always about balance.

But um and the pot to do that kind of stuff, repave parking lots, replace shelters, bathrooms is general fund.

And you did a lot with Redwing this year. I know.

Yes. And we got one more old old decrepit old bathroom at Redwing in the back. That'll get done this year. It's funded on our current CIP. We've really hit some of these old cinder block really old bathrooms. Some of them weren't even on city water. Um that was uh Bavo Farms we did last year. We hooked finally got that redone and hooked up to city water. So we've been trying to hit this really old outdated

infrastructure and upgrade them. But it it costs money.

That's a major park as well. And of course we couldn't do it without your right arm of Chad.

Chad and his team miracle workers with the funds that we have. We really appreciate the work. I mean, he's got this brain that just knows everything.

Yes.

Like an encyclopedia of parks. Uh but anyway, we we thank you and and our our citizens treasure this and it's one of the reasons we have the quality of life we have and and being the number one parks and rec center in the country.

Right. We clap.

YES.

You know, there's a saying that's true.

If it's a fact, it ain't bragging. And we we talked about this with our last presentation. You know, we got a quality of life here. You know, I can tell you that the uh admirals that now is the chief of naval operations called the common down of the Marine Corps last year that Virginia Beach was the number one requested duty station in the Navy.

And I take a lot of pride in the fact, oh yeah, Norfolk's got NATO, but a lot a lot of them live right here in Virginia Beach. And when the Supreme Commander of NATO tells me, oh, of course, he said, when people come here for four years, they go out to we want the quality of life. You got the rec centers, you got the schools, uh you got the safety, it's

all part, you know, of the big thing that goes on. And when you think about the innovation that you've done over the years, remember a number of years ago there were a bunch of decrepit tennis courts on hard neck and general booth or now what are they 44 pickle ball courts and they also have a stadium where people can come and observe and ESPN comes and does their tournaments with the professionals with the college

teams. They were decrepit old tennis courts about 10 years ago and uh you know but once again I want to give kudos to you know the parks after dark program that you're all doing. We did that as a pilot a couple years ago and it's taking off and you know we're expanding it and but once again it's a uh it's an investment that we made over time as a commitment uh you know to the localities

and I believe your budget's around $88 million correct you know maybe a little more but you know we invest into what you know what we're trying to do and what we're trying to create And as I said in the last meeting, you know, we can have a AAA bond rating all we want, but we don't have the quality of life to go along with it. It's for, you know, once again, I just want to thank

you. Patrick, did you have a closing?

Mor.

Okay. No, but once again, thanks again.

Appreciate it.

Great. Thank you.

Okay, we're moving on. Council leaison reports. Anybody?

Hey, thank you so much. Um, first to start, um, is a policy with the Hampton Roads Transit Commissions and several others that, um, there are two there or commissioners in there for each city. So, I've been serving through for Virginia Beach and just about last month, the governor did make a new appointment for Virginia Beach. And so, I thought to bring him here so you all could get a

chance to meet him and welcome him.

Would you please stand up? Mr. Jay Jameson.

He's the and he's also president of the Sky Surgical which is a medical company. Right. So, we wanted to welcome you and that you all of our colleagues get to see you since you're going to be with me like a partner representing the city.

discussion.

Thank you very much. Thanks for stepping to the plate.

Okay.

Okay. Any other liaison? Okay. How about I do have one more.

Okay. I went this morning to um the Hampton Rose Community Action Program in Newport News through the rain and what it was a very nice program and it honored people especially invited me because serving on that governing board was to do with housing and homelessness.

They brought up one lady who came up and she says a lot of times they don't recognize this area but she was a working homeless.

So that was a little different. We haven't looked at that and how someone took her in and gave her somewhere to stay without rent I mean paying anything and today now she's one of the directors in their housing resource. So that was interesting to see another group of people for the working homeless.

Success story.

That's very good stuff.

Okay. How about any discussions or comments?

Okay. Rosemary.

Um yesterday I attended the uh assumption command for uh the whole fleet the whole Atlantic fleet uh where uh Admiral Carl Thomas has taken over. And this was Admiral McCall's position, but he left in August and they had an interim person now. So, but now there's a an official and it'll be Admiral Thomas. And it was a beautiful ceremony on the uh Harry S.

Truman, which was very exciting to go on an anytime you get a chance to go to aircraft carry, it's exciting. And uh let's see, the uh there were two congress people uh Whitman and Kiggins were there too. So, it was was on the front page this morning. So, but we were representative there.

Yeah, we were we're very proud of our military, especially our Navy, you know, presence. You know, you know, you know, folks don't realize every year we do a commemoration of the Battle of Midway.

And, you know, we have, you know, I think 36th Street in the Atlantic, we have, you know, monuments there. And people don't realize that Midway was a turning point in World War II. And all of those aircraft came from Oceanana.

Yeah. So that's a big deal. I mean, thank you for attending. I appreciate that. Anybody else? Okay, let's go.

Josh, Jennifer, and Barbara.

Um, thank you, mayor. I just want to quickly uh say thank you to those of you who were able to attend and and uh and celebrate in in Town Center for the Grand illumination on Saturday. Uh that was I mean, they do such a nice job. is a partnership between the central business district association and the city to decorate town center. They add um new elements to the displays every

year. Um one I didn't catch which is right by Tupelo honey. Um it's a it's beautiful brand new tree and there's some other um ornaments that are um kind of you know by by one Columbus center and obviously the lion share of them are in Fountain Plaza.

Uh it was great to see you, mayor. Um and uh it was it was just it was a beautiful evening. So um and I know all of our neighborhoods and and uh that have their own kind of unique celebrations going on. Aries on the Bay had Santa on the beach this Saturday. So it was like it was the one warm day. Um so um so that that was uh that was great

for them. And um I just I love I love seeing all the holiday cheer around town. So thank you. didn't mention Amelia and Hutch were there also. Yeah.

Okay. Jennifer, I wish you wasn't going to say anything, but I was chatting ahead of council and this time last year, I was admitted into the hospital to have a baby. So, I wasn't even here at this table and past year. So, I just want to uh thank everybody who was here at the time uh and over the past year who have sent well wishes and um so I've been teaching

for 11 years. I've been this is my third year on council, my first year as a mom and my first year doing all of that. So, it's been an incredible balance and I just thank everyone at this table and everyone in the city and everyone out in the public who's made it possible and who have been really understanding about just this transition and it's really exciting and Olivia will be one this

week and I can't believe it. So, um I just wanted to share it's good to be here. They grow up so fast.

And welcome to the wonderful world of three full-time jobs.

Barbara, well, last night we had a very well attended uh District 2 uh meeting. Uh it was really a a session to let everybody look at district 2 and see how very large it is, very unique it is. and uh for me to give an opportunity to say to all the folks who are a part of district 2 that uh I very much look forward to having their help and and getting to all

of the different organizations and neighborhoods and so forth that we have there to make sure everybody is well served and I really appreciate all the people who came out last night um to learn about the issues. I think it showed that the people care and they're very concerned and they have some concerns about some of the directions that the city's taking too and and but I think the important thing is it was so

good to see a big crowd of people out.

It sort of reminded me of old times. Uh but a big crowd of people out who are interested in the city are willing to get involved. Uh, and um I I hope that this is the beginning of more people across the city being active and letting us hear from them because um we have to we have to have them at the beginning of a process, not at the end. And I I

really uh thank all the people who came out last night.

Hey, anybody else at this point? Okay, Amelia, I forgot to thank Jeanie Evans. She put together that entire machine for the town center. This is for closed in my district. I'm happy the council members who came out and joined us and the little ones.

So, but we want to give a special thank you because every year she works on this and every year she brings even more creative ideas out and it was crowded.

A lot of people come.

Yeah, they were. Thank you.

Great. Okay. How about agenda review?

Well, we only have three items on our agenda. Uh, is everybody okay with them all being on consent?

Yes.

All right. Consent agenda and the quickest agenda review.

But there are a lot of speakers for open mic night. I think the last count was about 20. So, I know we're having public um hearing tonight on the um tax exemption items, and I just want to put it out there that um one of one of the um one of the organizations is Maverick Learning Center and my daughter's unpaid director on Mavic Learning. So, and I've talked to our city attorney. No

conflict. I can do whatever. But I just wanted to get that out so that you um since we're in an agenda review and since it was a short agenda review and everything's on consent, um I I just and that's happened a couple of different times over the course of the year. um you know on on some pretty significant items. Um and and I think it's important just to say out loud that um just when

when something's on the consent agenda, it's because um we're all engaged in what I like to call the problem prevention business. and and and that's a testament to everybody working together, talking to their constituents, um helping iron things out so that by the time they get up here, um you know, they they don't they don't have the controversy that sometimes some of the some of the larger items have. So, um I

just want to say that for the benefit of the public and and and also for the benefit of all of us just to um just to realize like we're doing some really good work and and um I think it's I think it's awesome. Okay. And ju just a clarification right after we do the minutes before the public hearings, we're going to have an add-on uh you know honoring Shane Adams retirement and

uh will be here. So, uh, we're going to have that also added. Okay. At this point, the chair will entertain a motion to recess into a closed session pursuant to the exemptions from open meetings allowed by section 2.237 11A code of Virginia as amended for the following purposes. Personnel matters, discussions, considerations of interviews or promotion. Candidates for employment assignment appointment

promotion performance demotion salaries of disciplining or resignation of specific public officers, appointees or employees of any public body pursuant to section 2.23711A1 and that would be council appointments for boards, commissions, committees, authorities, agencies, and appointees.

Do I have a motion?

Move second.

Hi

Okay, we are reducing to close.

one. Welcome all to our meeting. We're going to call this meeting to uh order and if you're willing and able, please stand for the invocation.

Heavenly Father, you are always with us and beside us. Be with us this evening as we consider the affairs of our great city. Give us the patience to listen, the wisdom to decide, and the strength to act. Amen.

And if we may now have a moment of silence for all of those who paid the ultimate price to protect our city and our nation.

And if we could do the pledge of allegiance.

I pledge allegiance to the flag of the United States of America to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all.

Okay, Madame Clerk, do we have the roll call?

Yes, your honor. All present, excluding Council Member Beluchcci.

Okay, do I have a motion to uh for the certification of the close session?

Second.

Okay, we'll open the vote.

The vote is open.

Mayor Dyer, may I have your vote? Thank you. By a vote of 10 to zero, you've certified the close session to be made in accordance with a motion to recess.

Okay. At this point, could we have the a motion to approve the minutes of the special formal session of November 18, 2025 and the informal and formal sessions of November 18, 2025?

Second.

The vote is open by vote of 10 to zero. You approve the minutes as submitted.

Okay. And this is a point where we get to honor people who deserve honor, who make Virginia Beach the great city it is. St. Adams, will you please come down to the podium?

All right.

Yeah, let's hear it.

And it's my privilege to read this in your honor and also the honor of everyone in blue that you have served with for over the years. Let's give them all a hand.

Whereas in September of 1988, Scene Adams attended the Virginia Beach Police Academy and graduated in January of 1989.

Upon graduation from the academy, he was a career as an officer in various assignments to include special operations, traffic, SWAT, ocean front uh summer operations and training.

And where whereas Sain rose through the ranks in the Virginia Beach Police Department serving as a sergeant from 2001 to 2006, lieutenant from 2006 to 2011, and captain at from c 2011 to 2021.

His leadership assignments included training, executive aid to the police chief, command duty officer, fourth precinct commander, second precinct commander, special investigations commander, and special operations commander.

On April 22nd, 2021, he was promoted to deputy police chief, a position which he held with distinction, while he oversaw the operations division and administrative division.

And whereas seen is the only one in the Virginia Beach Police Department history to receive the distinguished title of chief of staff to the police chief.

And whereas seain achieved numerous educator educational milestones, earning a master's degree in public administration and a graduate certificate in criminal justice education from the University of Virginia and a BA in criminology.

He is a graduate of the 259th session of the FBI National Academy, Senior Management Institute for Police and Police Executive Leadership School.

And whereas through his leadership and vision, seen recognized the opportunity to integrate firearms training with dynamic scenario-based instruction during the development of Creed's training facility. His forwardthinking approach has elevated the department's training program to one of the best in the nation, empowering officers to perform at their highest level under the stress high stress conditions and

strengthening their readiness to serve with excellence.

And whereas seen understood the mission of the service to the community and visitors of Virginia Beach is one part of a broader public safety network. He valued the collaboration of all professionals regardless of the uniform or title. seen helped the Virginia Beach community with the highest regards and develop everlasting partnerships for long-term problemsolving solutions in creating the safest community.

Seen proudly served as the police liaison to the human rights commission.

whereas his retirement after 37 years of dedicated service marks the end of an era. He stands as the last VBPD officer to have served during the 1989 Virginia Beach Greek Festival and was the last SWAT sniper who personally trained by US Marine Carlos Hathcock II.

Whereas as he transitions into the new chapter as a private citizen, seen departs with a legacy that will resonate for years to come. He will be honored not only by public safety leadership, but by the officers, deputies, dispatchers firefighters EMT forensic technicians, emergency managers, and others who saw him as a steadfast leader.

who never forgot what it means to serve at the entry level. Now, therefore, be it resolved on this day, Tuesday, December 2nd, 2025, the Virginia Beach City Council honors a public servant whose leadership, dedication, and integrity have profoundly impacted the city of Virginia Beach. As St. Adams begins his next chapter, he does so with the enduring respect and gratif gratitude of this

council, our citizens, and the public safety community he so faithfully served. given by the city council of the city of Virginia Beach on the 2nd day of December, 2025 and present this resolution duly signed by each member of the Virginia Beach City Council.

Let's have the police please come down for the picture. Come on down y'all.

Come on down fellas.

Hey Chief Nudig, I think the I think the mayor was saying for y'all to come down.

So Chief, I don't think it's just you.

Can you get the rest of your folks to come down, too?

Sheriff Hulcom. Sheriff Hulcom, I think the mayor wants you down there as well, too sir.

This is photographer gets a wide angle.

Everybody

know each other, but you're going to have

Try it again.

Okay.

All right, I got you all in there, but I need to

just think about what he's going to do in retirement.

Since there's so many of you, I'm sure there's a few blinks, so we're taking extra precautions.

Thank you very much.

It's okay.

Thank you.

Thank you, sir.

Yeah. Appreciate it.

Yeah, we got a lot of steps people got to take to get back here. Long way around.

Got to get our steps in.

Yeah.

Uh saying, once again, thanks again.

You know, people like you make Virginia Beach the great city it is.

And uh I tell you what, we have a reputation welldeserved reputation of be being one of the if not the most safe city in this country. It's because of thanks of you and the dedicated professionals you work with 24/7. Please say a few words.

Thank you, Mayor, and uh vice mayor, members of council, Mr. Manager, uh friends, colleagues, and family. Thank you all for being here and taking the time out of your busy schedules to be here. tonight. Um, truly overwhelmed and honored uh to to have this recognition, but it certainly wasn't necessary. I came I'm a native of Virginia Beach, but uh I joined the police department when I

was 23 years old. And uh to say that 37 years has flown by. I can remember the first day that I walked in the door. So, um I've had a blessed career. A lot of great opportunities that wouldn't have happened without some of the folks that are here in the room. And uh I could spend all night thanking the people that have influenced me, have shaped my leadership style, and given me the

opportunity, but some of the ones that are here that I just really have to call out and appreciate the influence that they had on me. Certainly retired chiefs Jim Sea and Tony Zakro, Jake J. Cox couldn't be here tonight, but I really appreciate the confidence that they had in me uh to see whatever they saw to give me the opportunities, but really put me in a position to uh to hone my leadership and learn. And they've

imprinted their style and their leadership qualities into me and I greatly appreciate that. Um certainly the last five years um of of my career and the opportunity working with Chief Nudigate has been uh is one that uh I greatly appreciate. I appreciate Chief the confidence you had to uh promote me to deputy chief and give me that opportunity. Uh Mr.

Manager, thank you as well. Um police work has changed in 37 years. Seems like it changes almost daily.

but they have the ability to be flexible enough to meet the needs of our community that sometimes seems to continue to increase. Uh but bring in the right tools to make sure that our officers have the right tools is critically important and I appreciate the chief's vision. I appreciate what he brought to the police department and I thank him very much for the opportunity that he gave me to u have a play a small

role in that. Um, I'd like to thank our community. I've had a lot of opportunities to meet a lot of great folks from our great citizens, our faith-based organization leaders, our civic members, business owners, and such that I've fostered relationships with that have been just fantastic. And working together to make this city a safer place has been something that's been amazing. and I greatly appreciate

how our community has constantly supported us as an organization, but as a city as a whole, but in particular the police department. Um, in our ups and downs, the challenges that we have faced together as a city in 37 years, uh, our community constantly comes out, has our back and supports us, and we certainly couldn't do it without their backing and their support. So, I want to thank our

community and our and our certainly our great citizens of this city. And then I want to thank our officers. Uh they're out there every day, you know, answering calls for service. Uh public safety as a whole out there every day doing what they do to keep us safe, meet our needs, help the injured, lend a helping hand, serve in ways that maybe they didn't think they were going to have to do, but

they do it each and every day. Pretty selfless acts, and I greatly appreciate what they do. And in a time where maybe folks don't uh think too much of folks who wear the badge, I greatly appreciate the support that this council has given our police department. You all have stepped up big time over the years. Uh uh with one issue after another to support this police department. And uh I

know that I appreciate it. The chief appreciate it. myself and my peers go out as much as we can to let the officers know how much that uh you have done to support us and I know our officers appreciate it. But we certainly couldn't do it without them. They're our best asset that we have and I greatly appreciate the dedication of each and every one of them. And of course, lastly, I have to thank my family

who's been there to support me for the last 37 years. and uh without a good support at home, it'd be tough to do this job each and every day. So, thank you all very much. It's a great honor.

Thanks for being here.

And thank you all very much. Thank you.

It's an honor to honor people that deserve honor. And I'll tell you what, this defines Virginia Beach as a great city we are. Thank you all.

Now we'll just take a minute.

Okay, moving on. Uh we'll move on to the public hearings. Uh, do we have any speakers of for the I'll read the list.

The proposed t property tax exemptions for Echoes and Healing, Food Bank of Southeast Virginia, Maverick Learning Centers, Philippine Nurses Association of Virginia, Protecting Pause and Peril, Quality of Life, or the Micro Nonprofit Network.

No speakers, sir.

No speakers. Uh moving on in public hearings to the amendments to the fiscal year 2025 capital improvement uh pro project for flood protection of the lakes, Windsor woods, Princes and Plaza projects.

There are no speakers, sir.

Okay. And finally, the lease of uh city property for 113 Atlantic Avenue to Wit Cottage.

No speakers.

Okay. Moving on. Are there any uh speakers signed up for one?

No, sir. Yes.

Okay. If we can do the consent agenda.

Thank you.

Thank you, Mr. Mayor. Uh there's only three items. Uh, number one is the ordinance to accept and appropriate $110,000 from the US Department of Homeland Security to the FY202526 Fire Department operating budget and authorize $11,000 local match within the FY202526 Fire Department general fund. the purchase of fitness, health monitoring, and health assessment equipment.

Number two is the ordinance to accept and appropriate $46,875 from the US Department of Homeland Security to the FY202526 Fire Department operating budget and authorized $15,625 local match within the FY202526 Fire Department general fund Ray Fire Department's Marine Team. And number three is the ordinance to appropriate $94,000 from the fund balance of the Commonwealth Attorney's Forfeited Asset

Special Revenue Fund to the FY 202526 Commonwealth Attorney's Operating Budget to second phase of the digital phase, the digital case file initiative. Move for approval. Do we have a second? Second.

Any discussion? Okay, let's open the vote.

The vote is open. By a vote of 10 to zero, you've approved the consent agenda as read by Vice Mayor Wilson.

Okay. Do we have any appointment appointments?

We do, Mr. Mayor.

um active transportation advisory committee to appoint uh Brian Hickman, the Beaches and Waterways Advisory Commission to appoint Connor Smith, the Chesapeake Bay Preservation Area Board to reappoint Steven Ballard, uh Community Services Board to reappoint Sheree Hines and Grace Pearl Per

um to the historic preservation Commission appoint Mary Gentry and to reappoint Christy Lions. The Resort Advisory Commission to appoint Robert Fine and to reappoint Charles Kaitton, uh Lori Overhalt and Michael Ronan. And the Virginia Beach Cannabis Advisory Task Force to reappoint Brandon Hackne, Leticia Tibs, Michael Mch, and Ryan Suit. Move for approval.

Okay, the vote is open.

Let's open the vote.

I vote of 10 to zero. You have appointed this as read by Vice Mayor Wilson.

Okay. Any unfinished business? Any new business? Okay. We are journ open mic.