City Council Meeting, 12/9/2025

Welcome one. Welcome all to uh our last meeting of the year. U this will be a good one. U Mr. Dehaney, we're ready to go.

So Mr. Mayor, this is the most exciting presentation of the year. This will be the the big this will be the big reveal of the city's um annual audited financials and the presentation will be kicked off by Wendy Yu who is our interim finance director and then Cherry Beckard Cherry Beckard who's the audit um firm that did the audit will also follow up after Wendy followed by um Shelby Brown with

Cherry Becker will be Kevin Kbasa the city controller who'll give an overview of the city's um overall finances. So the next voice you hear will be Wendy U, interim finance director.

Welcome.

Good afternoon, mayor, vice mayor, and member of city council. As a I'm Wendy H, internal finance director. It is pleasure to be here today to present the audit the result of FY25 audits. With me we have Shelby Brown, audit manager from Chel Becker and also Shannon Leard uh senior associate fun Becker and also uh Kevin Kbasa city's controller. We will begin with Miss Brown's presentation followed by Kevin

Kbasa's overview of FY25 audit financial result. Before we start, I want to sincere thank everyone to make this audit s successful.

First, I would like to thank for this city council for your continued leadership and unwaving support of a strong financial policy to the city audit office. Thank you for your partnership and for your thoughtful oversight you provided throughout the audit process.

Before you is a city's FY25 comprehensive annual financial report.

Producing this 276 document is significant undertaking.

It reflects the outstanding dedication and also expertise of finance department staff.

In the interest time, I'm not going to read each name. I will express my sincere appreciation to everybody who contribute to this achievement and also I want to recognize city department for your cooperation and support during this audit process. With that I'm please turn over to Miss Brown.

Hello. Thank you for welcome.

Oh, thank you for having me here today.

My name is Shelby Brown. I'm an audit manager at Cherry Beckard and I manage the City of Virginia Beach fiscal year 25 annual audit.

So, we have audited the financial statements of the city of Virginia Beach for the fiscal year ending June 30th, 2025. And we have issued an unmodified opinion on the financial statements. Um, and our report was issued December 4th, 2025. An unmodified opinion is the best opinion that you can receive on your audit. It is a clean opinion.

We also u performed our audit under government auditing standards and the Commonwealth of Virginia's auditor of public accounts specifications for audits of counties, cities, and towns.

And we are happy to report that we identified no instances of non-compliance required under either of these standards.

We also identified no material weaknesses and internal control over financial reporting.

Um, regarding this uh uniform guidance audit, the single audit is currently in process. The OMB compliance supplement was issued at the end of November. Um, so we will issue our single audit once we are able to um complete those procedures. We plan to issue a report on the compliance for each major federal program. Um and the report will be on the um internal control for compliance

in accordance with the uniform guidance.

We are happy to report that we encountered no difficulties um during our audit. No and no disagreements with management as we performed our audit procedures. We did not have any instances that required us to seek outside counsel to perform our audit procedures. And we have requested certain management representations in our uh representation letter which is dated December 4th, 2025 which is the

same date of our audit report.

Um, additionally we are not aware of any instances in which management um sought outside counsel for the audit procedures and any um discussions that we had were in the normal course of business with management as we um progressed through our audit. And as of today, we are not aware of any fraud or illegal acts affecting the city um during this time.

And then lastly here, uh we are not aware of any matters that indicated a substantial doubt about the city's ability to continue as a going concern.

Now I'll open the floor for any questions you may have.

Okay. Any questions at all?

Okay.

Just a quick question because looks really good. Do you have any recommendations on on anything? Not that I'm looking for any, but um the main recommendation would be to just continue strengthening internal controls. Um as I mentioned, the internal control procedures at the city are pretty tight. Um but we just always recommend to continue looking for areas of improvement where you can um strengthen those controls.

Okay. Thank you.

Thank you so much.

Okay, cool.

I was just thinking, cool cool.

I know we're going to be here for a while.

So, now the most exciting part will be Kevin Kobasa, the city's controller.

Hey, Kevin. Good to see you.

Good morning or good afternoon.

Good afternoon, mayor, vice mayor, members of council. As we said, I'm Kevin Kilbas. I'm the city controller.

I'm here to present the audited financial results for the fiscal year ended June 30th, 2025.

Um, it's a good thing that we didn't get any more snow than we did last night because and had to cancel the meeting because we're required to present it to you guys by code of Virginia. So, we could have worked out where we could have had to call a special session, but we're here so we're glad to present it.

Um, and just let you know, Mr. Mayor, Mr. City Manager, after the presentation, I have a confirmation sheet that you guys need to sign just saying that I was here presenting it to you.

government at work.

Well, it now.

Oops.

It does. It was just You're bringing it up.

There we go.

All right.

Okay. I just before I get started, I too just wanted to take a second to acknowledge uh the staff that we have up in the accounting office and finance. Um they did a wonderful job helping us get this um report together. all the support staff as well, the communications office for their help with you'll see a wonderful picture of our dome um on your front cover of the capper or the actor.

Um so just what we're going to go over today, we're going to do an overview of the audited financial results. We're going to talk about the net position, which when you think about a for-profit business, that's your version of the equity. Assets minus liabilities is your net position. We're going to go over the general fund, do a budget to actual results, talk about our unassigned fund

balance and where that is, and then we're going to do a look at the city's four enterprise funds. So, what those are, those are self-supporting um funds that provide services to the residents.

Um so, we'll talk about those as well.

Um before going into 25, just revisit our last um FY24. Um ACER and PAFER, they both received the achievement of excellence from GFOA.

So there's three awards that GFOA does for the acter for the paffer and also the our budget. The city has received the excellent award in all of those also known as kind of the triple crown is what they call it.

So getting into FY25 looking at the statement of net position for all city funds. Um the total assets increased for in FY25 $17 million. U majority of this um assets being cash.

We have a total cash of about $1.8 billion citywide and total um capital assets of $5.3 billion. So total assets on the city being about $7 billion.

Um looking at a total liabilities um they went slightly down from last year um down about $75 million. It's related to paying off certain debts. Um so looking to it total net position for the city in FY25 was 4.7 billion majority of that uh making up of our capital assets.

Going into the general fund I'm just focusing highly on that a total budget of a little over $ 1.4 billion for our general fund. Um actual collections were $40.4 million over budget or roughly 2.7%.

um total budget expenditures about 1.6 billion and actual coming in slightly underbudget 148 million or about 9.1%.

So if you look at that we were expected to have a use of fund balance of $116 million but through the revenue being over budget expenditures coming in under we actually increased our fund balance by 74.1.

Um, so looking at the ending fund balance of 442 million, we had total reservations of 263 and we'll go over all of those and what those come up to.

That leaves us with our total unassigned fund balance of 178.4 million or 11.5% of the FY26 revenue. So we know that you guys have the policy that that unassigned fund balance must be between 8 and 12%. So we are meeting that policy right at the top range at 11 and a half.

So going over those reservations I was talking about. So we have um part of our fund balance is made up of inventories and loans receivable. You back those out. We have restricted funds from the federal government for community services board. Those get um put aside because they have to be used for that specific purpose. We have the school reserve fund that gets reported in the

general fund in the act. So that balance of $24.4 million is reserved. The school reversion and the school chew up totaling about $45 million.

Carry fors and incumbrances from the prior year.

And then the flood protection uh fund that gets reported in the general fund.

That's about $80 million of cash that's sitting in there. So that's part of your reservations. than other uses in the 26 budget um for capital projects and for other uses of fund balance. And so that brings us down to that 178.4 million or that 11.5%.

So I like to show this. This is about a 10-year history of where that unassigned fund balance has been. Um we see those green lines representing that 8 to 12 window like that we uh like to keep it through. um we see that uh peak that it took in 2021 during COVID, it went down to our our lowest point in those 10 years and then went back up and now it's

starting to come back down again as we continue to use um the fund balance to help meet our needs as they arise.

So, just to give you a little bit of more deep dive into some of those revenues for the general fund, like I had mentioned, they were 40.4 million over budget or 2.7%.

Um, with that too, you have the school revenue sharing formula. So, how that 7.5 million of that revenue sharing formula was made up. Um, everything from the other local taxes and up is what's included in that revenue sharing formula. So, we were about $15 million over budget with that, meaning that $7.5 million went to the schools.

Um, just looking at some of the other taxes, you have our meals tax. Uh that was $62 million in the general fund, but it was $98 million citywide. It gets allocated out to different funds. So there was $98 million in meals tax, hotel tax, citywide, $52 million.

And then one of the other important ones to look at is your interest revenue. Um we see in the general fund that it was um $28 million of interest revenue um and $42 million uh citywide. So when we're talking about we have 1.7 million or billion dollars of cash, we're generating about $42 million of interest on that through the course of the year.

Um and then one other item, the federal revenue, see it was 4.8 8 million over budget that included money that we received from FEMA for COVID that we spent um a few years ago. So, we finally got back that from them.

Uh looking at the the general fund expenditures and how they're broken down, uh majority of those transfers to the schools makes up the largest expenditures.

Um we have salaries and then other operating expenses. So, you can see how they compare to the prior year.

Looking at the enterprise funds, like I had mentioned, you have our two biggest ones, the water and sewer and storm water. When you look at these, you need to know that this includes a CIP portion of it. So all those CIP cash that the water and sewer and storm water has, that's included in this statement in that position. Um, with those two funds, the majority of them of the assets, our capital assets, of course, our

infrastructure that we have built for those. Um you see that it has uh bonds payable for the debt that it is outstanding.

Um and mentioning too that with them being self-supporting funds, they also have liabilities for pension and OPED.

Um when looking at the total net position, the unrestricted net position is similar to like the unassigned fund balance that I was talking about. So you can see here that all four of our enterprise funds are doing well.

Just a quick highlight of the statement of revenues and expenditures for those enterprise funds. You see the charges for services. Those are those fees that I was talking about from the citizens.

Um you have the operating expenses taken off uh interest expenses, interest income, and that's coming down to the changes in that position for those enterprise funds.

Looking at some of the long-term uh debt annual payments that we make, we retired principal of $105 million last year um with interest on that of 43.2.

Um the city pension was $82.3 million.

So that's what the city is contributing to VRS for our employees. And we see that increased about 10 million from the prior year. Those rates are set by VRS and they do a study every two years to determine what those contribution rates are.

So that went up. So that's why you see that increase there. Um we have the OPED expenditures for both city and schools.

Those have stayed pretty constant for the past two years.

Um with that being said, I will take any questions that y'all might have.

Any questions for Kevin Barbara and could we just have those slides printed off for us?

Yep. Absolutely.

So thanks Mr. presentation and for the work. page 13 just the prior screen the principal and interest. So we're paying off really principal that's total principal there paid off and then the interest below it's not so okay that's a lot of principal paid off in one year right out of how many what would be the total about one and a half billion when you include city and we know the school's

debt is showed in our books as well so it's about 1 and a half 1.6 6 billion with about 300 million of that being schools related.

That's due primarily to because the way we pay the bonds.

Correct. Yes. So they're not schools aren't allowed to have any debt on their books. It has to come from the city. So that's the same way across the state.

Okay. And then thank you mayor and um thank you Mr.

Kasa. It's always great to hear from you. And um just to follow up on Council Member Ramik's question, we retired that principal of 105 million, but um are those ongoing interest obligations or were those interest obligations associated with the principal retirement with that principal retirement? Um, and then the just one other thing. I mean, I know, you know, we deal with thick

budgets and and um lots of information, but um when the when the public hears that we're we have $1.8 billion of cash, um I was hoping that you might give some context around that. um you know that that whether whether that is a responsible amount of cash considering our overall expenditures what we need that cash for um just just so that everybody has a little bit better handle on that who's watching and then um and

then I also wanted to uh point out that this is I think the second or third year I remember that um our interest income has overperformed um and and I I think that's a testament to staff and and I also think to the treasur's office who is um managing those investments. So I was hoping that you might be able to speak to those people.

Yeah, absolutely. I'll start with the interest one that is yes the treasur's office does manage our investments and you know of course um they're limited in what they can invest in. Of course it's public funds. We have to be very riskadverse to what they do but yeah the return that they're getting on the money right now is fantastic. I mean it's kind of the same thing if you would look at

the return rate of like a CD. a lot of stuff that they invest in is things like that. So that they're seeing hives that they've never seen before that helps the city as well because we can invest in those. So yeah, that is a lot of money that they are able to come up for us um and do that investing for that 1.8 billion.

Yep. So that 1.8 So that's broken down in a lot of different funds. So looking at just a general fund by itself, that's a little over $300 million in cash. So that's part of that um unassigned fund balance will be a part of that. So having that within that policy, we know the cash that that general fund has is sufficient because it helps meet that unassigned fund balance. A lot of the

other ones are in the capital project funds. Um so that's the cash that we've mostly paid because we know that whenever we go out for debt, we do that on a reimbursement basis.

So the cash that we have in there is cash that we have provided for those funds to meet those project needs and then we go out and seek reimbursement on those.

So that's what we would call PIGO.

Correct. Yes.

Essentially.

And then you've also got some enterprise funds. So there's a lot of other of that cash um like our OPED trust fund that we have that's close to $80 million. So that's not something that we really have access to but it's part of our cash portfolio. So there's a lot a lot of stuff in there that we don't really have access to, but it's just included within the cash. I'd be happy to provide kind

of a breakdown of where all that money comes from and where it sits.

Mhm.

Okay. Anybody else? Yes. So, um, with the pension, the city pension and the school pension, um, because there a lot of things you were showing like percentages of where we should be or shouldn't be. And I think you said, I mean, I know that the VRS sets that every year, right, as to where we are, but are we again for the general public, is this is this a good are we in a good

spot there? Is that the 82.3 77.5 does that feel reasonable?

Yeah. So when VRS sets it, they look at um what they call the unfunded uh liability percentage and we're typically right around that 80 to 82%. So the rate that they set is a combination of what you need to meet the current needs and also a amterization of paying off that unfunded liability.

Okay? So they do a study every two years looking at what the value is of our assets and liabilities for that pension and come up with what you need what that percentage needs to be to meet that. So yeah I mean we've kept our unfunded portion right around or the covered portion about 82% for the past five or six years. So that's really a recommended okay amount. That's what I want. Yep. And

then um you had the slide a minute ago was 11 point I think you said our our funds left residual the which slide I'm not sure which one that was.

So that was it the unassigned fund balance one or probably this one.

Whatever I'll just ask you. Um you said it was between 8 and 12 was the two percentages that you were Oh my bad. trying to Yeah. trying to shoot for and that we were at like 115, I believe. Yes.

Um just for an education point for myself and for others, let's say you come in at 7.5 or you come in at 12.5. What are what are what happens? What's the two what's what's that mean?

So, it's a it's a policy that city council has adopted to be within that 8 to 12%. We've had years, like you saw, we've been above it. So then that would mean kind of towards the next budget process, you want to look at how you can use that fund balance to kind of bring it down. And the same way of where if you're under it, then you're going to

want to look at how you don't use as much fund balance the next time.

Pretty simple once you understand it.

And then you're if you're above it, you you might use it to buy more apparatus or whatever. You know, it's okay.

You never want to be below it, right?

Because yeah, all this stuff ties into the city's bond ratings, right? So if you're below it, then it shows that you're not meeting your commitments and also puts them puts them in a place where they're worried that you if you need to meet your obligations, you won't be able to meet your obligations, right?

You know, right? And so sitting here week after week, you start to see where like the the triple bond ratings from all three rating agencies having this come in, this is Wive feeding into the other.

Okay. Thank you. So the big the big thing that council needs to understand is like the rating agencies we are AAA and we have a lot of great positive but we also got a lot of ch we also got some challenges because we're a big organization that we're only not only are we trying to grow but we're also focusing on recapitalization right so we borrow I think some folks say we borrow

we borrow a lot because we got a lot of stuff to do right and the reason why we're AAA is because we keep a solid on a side fund balance and we pay off the principal in such a quick fast way Right. We we tinker with that form a little bit. Then it may change outlooks on how they perceive the city from a bond rating standpoint.

So sure. So that's what you're doing. I mean where credit is due, right? Is is like you're you're running the machine at a very high uh rate and a very efficient rate to get the best we can out of out of all sides.

Right. That's so that's good.

Thanks.

Anybody else?

I just want to thank you for this is stellar work. You know, running a city the size and magnitude and complexity of Virginia Beach with all the operation departments and all the needs and capital needs, operating needs. You know, uh we are very fiscally sound but you know the work that you do is very complicated but you make it very simple with the efficiency and I think it's reflected in our bond rating. I think uh

we get recognition for being a very well managed city uh you know with finances and everything and it takes a lot of the hard work that your department does to do this but I'll tell you what you know kudos to all of you. Thank you.

Thank you.

Okay, now we're on to discussions, initiatives, and comments. Anybody must be the last meeting. Okay, Barbara.

Well, last week I told you that we had had a a very well attended uh district meeting and uh on Monday of last week.

Well, we had the district forum on Thursday and it also was very well attended and I just I'm so encouraged by the number of people who come very excited and who want to be more involved.

But what I'm hearing is that they don't feel like they're having an opportunity to be involved particularly early on when we are making plans. They don't want to be just the last stop uh at a preuncter uh public hearing about a plan. They want to be a part of the development of the plan. uh one of the people who attended recall being uh in the uh one of the breakout groups when

we did the first transition area ITA transition area plan when we just asked the people what do you want and I think that's what we maybe are not doing with our people quite enough early on in the process and saying to our people what do you want uh and and I hope that we will be able to u work on that uh we did get a a lot of concern about the Virginia

Beach National Golf Course uh RFP and how that was done. Um maybe getting ahead of the public and even thinking that we might want to sell that property. Uh there was a lot of of u concern about that process and what we're going to do with it. Uh I know that we have made no decision but I think we really need to back off on that and start over. Uh I think the fact that

it did raise so much concern kind of shows that we got ahead of the people uh when we uh even put some of the things possibilities in the RFP. So I have had some really well attended sessions in district 2. But what it tells me is our people want to be involved and they want to be involved in a meaningful way. They don't want to be blindsided by something that they weren't even thinking about,

which is kind of what happened with the golf course. Uh they want to uh they want transparency and they want to be participants. And I I think that's a good message for us going into a new year, particularly a year when we're going to be looking at some pretty heavy things early, such as our uh comprehensive plan update and uh looking at the at some of these other things

that we have on the table. So, I I just want to uh emphasize that uh citizen participation is something that we we need to make sure we're allowing early in the process and allowing it in a fashion that's meaningful to the people that they really feel like they have something worthwhile to to offer and they want to to be participants. I think we had almost 40 speakers under our open

mic night last week and those folks were very well informed and they uh they're following what's going on, believe me and uh I think that's encouraging for us and I look forward to the new year.

Yeah, thank you. And if I can, you know, just comment that Mrs. Henley and I agree with her 100%. But I think what I've been seeing uh quite frankly is that almost every district council people are holding meetings and you know getting input all over the city. And I think and you correct me if I'm wrong Mr. manager. Uh, you know, the fact is we did get a couple unsolicited uh, you know, suggestions for the golf

course, but then we decide to put out a public RFP which a lot of and which disclosed a lot of what was being considered and with did uh, you know, sele opportunity for people to have the input on it. Um, and then once again, even during the budget process with public hearings, but I think with all district council folks, you know, going out there and, you know, meeting with their districts and even

collaborating with each other and, you know, doing things, we certainly have, uh, you know, the public forums and, you know, and, you know, I remember even when I was a district guy, uh, when we had that controversial intersection on Kempl and Indian River, I think We had a number of chetses about that. And then even when we were talking about Atlantic Park, there were 65 public engagements

uh you know before we even started with the term sheet. So, but once again, we welcome the public. It's part of our action plan and everything and going into the new year. Um especially with the uh challenges we're facing, you know, we are definitely going to be bringing the public to the table. Josh, thank you, Mr. Mayor. Um, I wasn't going to say anything, but and I appreciate you mentioning uh what you

did, and um you know, I've had one or two difficult projects in in my district over the last couple years. And and and we've got another maybe one or two coming up. And um we we had and public works had um you know we had we had gotten the community together to you know to to have an early look at at some of these things. Um and um and it's it's a balance that we try

to strike, right? So if you engage early, we we might not have all the answers quite yet. And when we're in front of the public, people will ask us and ask our ask our staff questions. And we don't we don't have the answers quite yet because we wanted to involve the public early. Um and so we look like we're hiding something when we're not because we just don't know. We don't

know yet. Um and we want to make sure people are coming along with us. Um, and then contrast that to situations where we wait until we have all the information so that we can provide it and be able to answer the questions and then when we go have a meeting of that that includes that that type detail. Um, you know, then then then people feel like we got ahead of them and we we came

at them late. Um, so, so when we engage early or whether we engage early or whether we engage late, um, it it can be difficult sometimes. Um, and we we all try to do the very best we can. And I know this isn't a a time for us to talk about the golf course, but um, you know, I I'd like to say one or two things about that just because my daughters

went to First TE and and, uh, um, have gone through that program. I used to live over there as you know um in Newcastle and I'm very familiar with the area. Um and that was a difficult situation for us in that we had like the mayor said a couple of folks who who came to us with ideas um and we talked about that as we usually do um around the table in close session. we had

questions and concerns and things. Um, and and by the time that got kind of got brought back to us, there were kind of other interested parties uh who had other ideas and and and from what I remember without, you know, revealing close session details. Um, you know, the only way for us to get that out into the public was through a RFP mechanism. Um, and and I think the public probably read

that uh verbatim as a request for proposals when in reality it was really a response to proposals so that we could get it out from behind closed doors and so that we could engage people and make sure that everybody knows that I think we all feel the golf course is an important part of this community and it's one of the only places where you can actually go golf and not see a

house. um and uh and and and it's a ve a very valuable part of this community.

So, um I I just think that needed to be said out loud that um what we did or at least my perception of what we did was um we were trying to be transparent. Um and and uh we got lots of emails. Um and and and we've all been doing our best, I know, to respond to everybody and do that responsibly and and uh and and and I think we're all here for the same

reason at the end of the day.

Thank you.

Okay. So, on council comments, correct?

Um we won't meet in a couple of weeks.

So, because of that, um I'm announcing that district 7 is having their first job fair. I'm going to have that at Kimville Rec Center. That's going to takes place December 20th. That's going to be at Kimville Rec Center from 12:00 p.m. to 2 p.m. The goal behind that is to give our district hope, right, going into the new year. If you're looking for a job, come to the rec center. If you have a job, but you

want a better paying job, come to the rec center. My goal is to give not just um and it's not going to be exclusive uh to district 7. If you come and you're from a different district, we welcome you too. But the goal is to give uh citizens hope that they're not alone. We are working hard behind the scenes making sure that they have the jobs that they need to keep their families going

because we care. So again, uh December 20th at Kimsville Rec Center, uh from 12:00 p.m. to 2 pm. Now, no tax dollars were used for this event.

Make that clear.

Disclaimer, right? This is just a community initiative that I felt was necessary to give our citizens hope going into 2026. I believe in Virginia Beach.

Great.

Barbara, uh, could either Mr. Janei or Mr. Styles kind of give us a a rough overview of how we are going to proceed now with this RFP?

I know the the comment time is over. So now what will happen? Do we have a a a time frame?

So I I think um I don't know how many RFPs we got. We probably got about three or four if not more than that. Right.

Probably more than that. But staff is going to review the the proposals in response to the RFP.

BB National BB National. Yep. The BB National Golf Course. And then we're going to put that in the presentation form and then brief city council in a close session to seek direction from council in terms of where it wants to go. I anticipate if council wants to move forward with any of the proposals, council asks us to give a public briefing and from there council will give us direction in terms of what

next steps look like. for council to make any kind of change to the current makeup of the RFP, it would require a public vote either from the city council and the VBDA or the city council, you know. So, we'll work all those details out depending on what we receive in terms of the nature of the proposal, but basically right now staff is reviewing the proposals and then we'll bring those

proposals to city council in close session for review and discussion. And depending on where council wants to go, we will proceed with um either canceling the RFP or bringing something forward for public consideration. What's been clear from a staff standpoint from council is that this is to be remain a publicly accessible golf course and um and also first TE will be the lease terms with first TE will be honored

regardless of where this goes or where we go next. Mark, is there anything else to add?

Nope.

That's good. Hey, Michael.

Thank you, Mayor. Um, just have two things to share. The first is that I just want to um just share that last week I had the privilege to attend the 2025 North American Summit Against Anti-Semitism.

Um, and it was a it was a privilege and it was an honor and it was a great opportunity to um glean uh more about the really terrifying landscape um that includes discrimination and around discrimination and worse associated with anti-semitism in America and around the world. um and also learn about best practices. Um all centered around the notion that every single person, something we all believe and subscribe

to, that every single person has the right and the expectation to live in safety and with dignity in their community, in their hometown. And I really want to say that based on what I learned, I feel Virginia Beach is in a very strong position. And largely that is credited um with the leadership and advocacy of the Jewish community in Hampton Roads, the United Jewish Federation of Tidewater, the Simon

Family JCC, Jewish Family Services, and all of the associated um Jewish organizations that serve not only the Jewish community, but our entire community at large. um their leadership in partnership with uh the city's administration, our police department, um federal partners has, I think, put uh our community in in a very strong position to to be in a place to combat anti-semitism as we have. We have not

seen the most egregious examples of anti-semitism that at least that I'm aware of that other communities are facing. But it's important to just pause and um take uh inventory of where we are and contemplate where we'd like to be.

And um as I mentioned, I think we're in a strong position, but it's always important to learn. And and I'm really grateful that I had the chance to do that. And in concert with what Councilman Green just noted, no taxpayer uh funds were used as part of that experience either. But I want to do everything I can to share what I learned um with the community and I I will do

that and um and just encourage us to stand strongly against hate and discrimination in every form and um it was nice to focus on that last week.

Michael, thank you for doing that. You know, that was really, you know, very great thing you did. Well, it was a privilege and also I just want to say that as we know discrimination is connected and there is no instance where a person who or group who discriminates or projects hate onto one group are quick or concurrently project hate onto other groups. So, it's incumbent upon us to stand strong and united

against hate and discrimination wherever it exists. and and and as you know, maybe you were going to talk about this in a moment, Mayor Virginia Beach was again recognized as the most caring city in the country. And I think that's a reflection of our values um as caring people and as people who do stand against hate and discrimination and and I've seen that time and time again in

the lifetime that I've lived here. So, it was affirming and it was illuminating and um it was very educational. So, thank you. I also wanted to share that on December 17th, Councilman Cummings and I are co-hosting a town hall meeting along with Delegate Tada. Um, grateful that the city's budget director, the city treasurer, Lee Henderson, as well as the uh, city real estate assessor

will be joining that um, town hall on every topic but with a specific focus on affordability. As you can see, it's a partnership, so there's no particular district focus. It's on December 17th from 6 PM to 7:30 at the Central Library.

Very good. Thank you.

Okay, Rose, may I read?

Well, on a light note, um participated in the holiday parade on Saturday night and it was really cold. It was really, really cold. But and you know how these parades are, you have to line up about an hour and a half before you actually get started. So anyway, I really had the uh distinct honor to hang out with the sheriff's department and and be with all the sheriffs. They came out uh and they

had their own Santa as well and to be with them uh for the parade. And as cold as it was, it was incredible how many people came out. I mean, the streets were just packed with people. And I don't know if they had their own little personal heaters or what, but they were a lot of people out there and a lot of children and their pets and very excited about the holidays coming. So, it's kind

of a it was it was really nice and really helps you put you in the in the spirit. So, anybody else?

Yeah, I'll tell you what, it was a great parade actually. People were sitting three blocks beyond the reviewing stand.

It was that packed and it was very good. Um the other thing is uh the manager and I on Friday had the opportunity to attend the uh Navy Marine Corps 250th um you know celebration and I was honored to be you know a speaker as the uh charad from New Jersey uh you know mayor and uh I'll tell you what we are so proud of the military presence that

we have not only in this nation not only in the region But what we have right here in Virginia Beach, I mean, you you better believe that we are key element in national security in a very, you know, big way.

Uh Rosemary and I quarterly attend meetings uh with both Oceanana and Little Creek and um you know once again you know uh and then we got some very very nice comments from uh and went to a re a NATO reception and there was a new fourstar general admiral uh and and very complimentary to Virginia Beach you know as a place that the military love to you with and have their families raised. And

uh then once again, you know, Michael said once again, Wallet Hub, you know, declared us the best most caring city.

And you know, one of the things we always say, Virginia Beach does get a lot of kudos. And I always say in a speech, it's really the people that live here, work here, have their businesses here, but also give their time, talent, and treasure. We have a plethora of groups uh faith-based non-faith-based that just go out and help other people.

And uh you know I think you know I think that that's why we are known as the smallest large city in the country is the fact that people really care about other people. They care about their neighbors. They care about the elderly, the disabled and there are so many organizations out there helping. But you know once again we are we are a great city. Okay. How about agenda review?

How about agenda review?

So, under ordinances and resolutions, we have no speakers. Does anybody um you say I'm just Well, I'm trying to figure out my agenda because I only had to have an agenda um or protection where we're doing transfers.

I just want to make some comments about that. I don't know if you want to pull it if there's not another speaker, but I do have some comments about these transfers. So, I don't want this to get lost in the Can we make the comments at the end of the vote?

At some point, I I do want to make some comments because I'm real concerned the vote transfers and how follow opportunity to speak after the vote.

Okay. After the vote, people are going to wonder why in the world I'm voting. Okay.

Under planning, uh, Prosper Homes District 9.

All good.

Number two, Brian Patrick Mooney, District 9. Also, all good.

Number three, District 6.

Please.

Number four, Steven Alexander Homes, uh, District Two. I've had no questions about that. It can be consent.

Number nine, Lin Haven Station Condos District Three.

Okay. For consent.

Six, Rihanna Studio Catrine LLC, District 3. I've received no communication about this or concerns uh raised to me. So that would be okay for consent as well.

Steven Bruce, Regent University, I am abstaining. I have a letter on file.

District 7.

Yes, I received no uh constituents uh in concern for this consider agenda.

And number eight, Robert Mills, District Five. Uh, that's on consent.

And number nine, the ordinance to amend section of the city zoning ordinance.

I just want to make a question or a statement on number nine because I have spoken with the city attorney about this as well as some of the folks in the city. Um, because it is concerning to me when we give more power to the U. board of zoning appeals versus uh ruling on this as a body on land use. And so I'm in agreement. I support this this, but I

just want to make that clear because it's um can be questionable sometimes how much power we give away on land use versus uh an unelected but appointed body to board.

That's it. Vice Mayor, just one clarification for ordinance number 15.

That applicant or building they're requesting the withdrawal. So the consent will be to allow withdrawal. Correct.

Which one is that?

Ordinance number 15.

Yes. Requesting withdrawal. So that's what which item was that again?

15. The last one.

No, I'm sayinges.

The other one about defenses that Okay. Thank you. Uh the chair will entertain a motion to recess into a close session pursuant to the exemptions from open meetings allowed by section 2.2 3711A code of Virginia as amended for the following purposes. Public contract discussions of the award of a public contract involving the expenditure of public funds. Um discussion of terms of the scope of such contract where the

discussion in open session would adversely affect the bargaining position for negotiating strategy of the public body pursuant to section 2.23711A 29.

Uh one is the protocol uh project sun.

Uh the other one is project project periwinkle and the other one is uh project 1800 and then uh personnel matters discussions considerations or interviews of prospective candidates for employment assignment appointment promotion performance the motion salaries disappointing or resignation of specific public uh officers appointees or or employees of any public body pursuant to section 223711A1

and that would be city manager contract.

Okay. Okay. Do I have a motion?

So move second.

I have hi.

Hi.

Hi.

Hi Mayor.

Hi.

Okay. We are research researching the quote.

Everyone, I'm calling this meeting to order. And if you're all 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. And if we may, if I may ask for a moment of silence for all all of those who paid the ultimate price to protect our city and our nation

and the pledge of allegiance.

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

Okay, madame clerk, do we have a roll call?

Yes, your honor. All present, including councelor Cummings.

Okay. Do I have a motion to certify the close session?

Second.

Okay.

Sorry, we had just an issue with the vote system. So, we're going to do a verbal vote for um certification of the close session. I apologize. Council member Luchi, I.

Council, do we have a motion yet?

We did, didn't we? We did.

Sorry. Council member Cummings is absent. Council member Henley.

Council member Henley. Thank you.

Council Hutcherson.

Hi. Council Jackson Green.

Hi, Council Member Rimick.

Hi.

Ross Hammond.

Hi.

Council member Morouse.

Hi.

Council member Schulman.

Hi.

Vice Mayor Wilson.

Hi.

Mayor Dyer.

I.

By a vote of 10 to zero, you've certified the close session be in accordance with a motion to recess.

Okay. Do we have a motion to approve the minutes of the informal and formal sessions of November 25th?

So moved.

Second.

Okay. Open a vote. Got to do a verbal again. One second. We can open this vote.

Oh, here we go.

The vote is open.

Mayor Dyer, may I have your vote, please?

I'm trying. There we go.

By a vote of 9 to zero with with council member Beluchcci abstaining. You approve the minutes as submitted.

Okay. Thank you. Okay. At this point, I think we can do the consent agenda.

Thank you, Mr. Mayor. Everything is on consent and the ordinance and resolutions.

Number one is the ordinance to designate as exempt from local property taxation Ray Echoes of healing. Number two is the ordinance to designate as exempt from the local property taxation Ray the Food Bank of South Eastern Virginia. Number three is the ordinance to designate as exempt from local property taxes Ray Maverick Learning Center. Number four is the ordinance to designate as exempt

from local property taxes Ray Philippine Nurses Association of Virginia. Number five is the ordinance to designate as extern exempt from local property taxes Ray Protection Pause in Peril. Number six, the ordinance to designate is exempt from local property taxation Ray Quality of Life in Inc. Number seven is the ordinance to designate is exempt from local property taxation with the micro nonprofit network inc.

Number eight is the ordinance to amend the FY202526 capital improvement program CIP for flood protection. Number nine is the ordinance to authorize the city manager to execute a lease of city-owned property for up to 5 years with Backbay Wildlife Guild, Inc. at 1113 Atlantic Avenue, Ray the Dwit Cottage. Number 10 is the ordinance to direct the city manager to implement changes to oceanfront parking and to authorize

within the department of public works FY202526 parking enterprise fund operating budget RA fulltime position one full-time position number 11 is ordinance to amend section 21-322 and repeal section 21-323 of the city guard code rate metered parking number 12 was the ordinance to amend the city code section 21230 ra the traffic calming at Timberlake Drive.

Number 13 is the ordinance to eliminate the local repayment obligation from various volunteer rescue squads for loans provided prior to November 2024.

Number 14 is the resolution to adopt the 2025 disaster recovery plan. Number 15 is Ashton Builders One LLC for an appeal to the historical review board decision to deny application certificate certificate of appropriation rate 425-12 to install white vinyl fencing in the north landing estates development for the appropies at 258 to 2524 peaceful lane district 2 and this is going to be for withdrawal

Open a public hearing on planning on planning.

Okay. Number one is Prosper Homes and Investments LLC for variances to section 4.4B of subdivision regulations rail lot width and street line frontage at 2453 Gford Avenue and that is district 9.

Second.

Number two is Brian Patrick Mahoney and Amber Marie Mahoney Mooney, excuse me.

Mooney for a change in nonconformity ray modify from elevation and roof at a raised roof deck and restraining walls and relocate mechanical equipment at 2618 West Chub Lake Avenue. And that is in district 9. Number three is CS CIB JB this second LLC for a modification of mod of of conditions to a conditional use permit a short-term rail at 409 44th Street. That is in district 6. Number

four is Steven Alexander Holmes LLC at Princess Anne Road Princess Burough Development Company Inc. for a conditional use of zoning from A1 and A 2 agriculture district to conditional R10 residential district. Ray developed 14 single family residence lots on the parcel south of 1925 Fisher Arch and that's in district two.

Number six is Linhaven Station Condominiums Associates and Global Cinematic Society LLC and Harbor Investments LLC. Global Cinematic Society LLC and Harbor Investment LLC for conditional change of zoning 0-2 office District to conditional B2 Community Business District at 101 and 105 Northland Haven Road. And that's unit 105, District 3.

Number six is Bana Croseri Kerishi Studio Citrine LLC, Holland Office Park LLC for exitional use permit. Ray Beauty Salon at 4510 Holland Office Park and that is in district 3. Uh number seven is Steven Bruce at Region University for a conditional use permit. Ray indooroutdoor recreational facilities to develop athletic and fitness duplex at 1328, 1352, 1354, 1418, 1424, and 1446

Regent University, Messa District 7, and the mayor, Mayor Dyer will be abstaining.

Number eight, Robert Mills, One Perfect Day LLC for conditional use permit, raise short-term rentals at 303 Atlantic Avenue, unit 1503, and that is in district 5. Number nine is the ordinance to amend section 105 of the city zoning ordinance pertaining to non-conforming non-conformities. Move for approval.

We have a second. Uh the reason I have a letter with the city attorney on my reasons for abstaining on item seven.

Okay. The vote vote is open.

By a vote of 10 to zero, you have approved the consent agenda as read by Vice Mayor Wilson, noting Mayor Dyer's abstension on planning number seven.

Okay. Thank you. And Mrs. Henley, you have a a comment. Yes, I did have a comment about uh item eight uh in our ordinances, which is the uh capital improvement program for flood protection. Um this has to do with uh transferring money in order to be able to make the projects of the Windsor Woods, Princess Anne Plaza, and the Lakes uh be able to go to construction.

Certainly, this is something that has to be done. Uh there's no question about it. Uh these neighborhoods were developed back in the 50s and 60s before the city council understood the flooding problems that we have in the city of Virginia Beach and these neighborhoods were built and they flood and they have to be fixed even though we've got a difference of money available of over $400 million

uh with these projects that were non-referendum projects. uh and now we have a shortfall and in order to be able to make these projects go forward now we have to transfer money from other projects that were also in the bond referendum that are just not ready to go to development at this time and I can understand that however we don't have the same excuse that the city councils in 50s and 60s had because

we do know the flooding problems particularly in the southern watersheds.

And we do know that if we allow those areas to develop in ways that are not suitable, they're going to flood. And a future council is going to be sitting here doing the same thing we are having to spend hundreds of millions of dollars to fix it. But we do know the difference. And like I say, we can't say we didn't. We've done the studies. We know what's going to happen. And it's

it's incumbent on this city council to make certain that going forward in our land use decisions we pay attention to our flooding studies that we have done and that we know uh what's going to happen if we put things where they don't belong.

uh we are having to transfer monies from some projects particularly in the southern watersheds and in the beach area to make up this difference and I'm very concerned when people at Sandbridge and Newbridge Road or the Stormwater Green infrastructure areas or the Panga Ferry Road projects or the Westnet Creek projects and then those oceanfront projects that were approved in the referendum. Now that money is being

transferred to be able to use it in these projects and supposedly it's going to work out with the way the bonds come due and so forth, but sometimes things don't work out. And I am going to ask that I am able to every month at my district forum make a report on these transfers and whether or not uh things are working out so that these projects are going to be done because we can't

have people in those areas whose projects were also on the bond referendum and now say well I guess our projects won't get done because that money has been transferred. Uh it's not supposed to happen. We're supposed to be able to work it out. But I want to make sure we do and I want to make sure that we make monthly reports uh to the to the people particularly in the southern watersheds that their projects will be

done uh in in a timely fashion. And thank you.

Thank you.

Yes, Michael.

Uh thank you, mayor. If if I could, I'd just like to take a moment to express gratitude to the council and to the city staff and I think probably most certainly most importantly to the um Windsor Woods Princess Plaza Lakes community who have been fierce and strong advocates for flood protection in uh District 3 and in our neighborhoods for years in particular since Hurricane Matthew in 2016. Um the prioritization

here and um and the bundling reflects what is um an emergent and um very important priority to protect more than 30,000 households in those neighborhoods that were impacted by Hurricane Matthew and uh in 2016 and um continue to be impacted to this day. We only needed to be reminded um by the storm that occurred on September 16th of this year, the impact that flooding can have on our lives and on

our neighborhoods and also the trauma that it uh imposes upon the families who experience that um that flooding. and the the bundling here and the prioritization reflects one the economic reality that we're living in and the inflationary pressures on the bond referendum and flood protection projects. It also reflects our entire and when I say our community, I mean the uh neighborhoods, the civic leagues, the

individuals who are flood advocates, the council, the professional staff who have all come together in solidarity to support those families and those households. And I don't want this moment of um passing this on the consent agenda to go by without just taking a moment to pause and acknowledge the import of this vote tonight. and the um and the really excellent way our community came

together to support those neighborhoods and ensure that we're doing everything we can do with the um uh with rapidity to ensure that um we're doing taking all measures to protect homes but most importantly to protect life and as well property in those neighborhoods. So, I just want to thank all involved and Mr. Baluchcci, thank you for being a steadfast champion for your district and taking care of a very, very high

priority need. Okay, at this point, any appointments?

Yes. Uh, yes, we have one, Mr. Mayor.

That's the uh military economic development uh advisory committee would like to appoint Vanessa Christie.

Move for approval.

One one second. We're trying to get the vote system to open.

We're going to have to do a verbal vote again. I'm sorry. We're having issues.

Um, council member Beluchcci.

Hi.

Council member Cummings is absent.

Council member Henley.

Hi.

Council member Hutchinson. Council Jackson Green.

Hi.

Council member Remick.

Hi.

Council member Ross Hammond.

Hi.

Council member Rouse.

Hi. Council member Schulman I.

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

Okay. Any old business? Any new business? Thank you all and have a great Christmas season and a happy new year.