City Council Special Formal Meeting, 4/15/2026

everyone and welcome. Thank you all for being here today.

Honorable members of city council and our disted audience. In accordance with Virginia Beach City Code 2-21 and by the authority vested in me as the mayor of the city of Virginia Beach, I hereby call for a special formal session of the Virginia Beach City Council on Wednesday, April 15th, 2026 at 6:00 p.m.

Virginia Beach Convention Center, 1009th Street. The purpose of the special formal session is to conduct public hearing to obtain public input regarding first the fiscal year 202627 operating budget and capital improvement program. Next the authorization of 72,827,365 in general obligation bonds.

Authorization of 22,56,000 uh in water and soar utility revenue bonds. Authorization of 21,57,315 storm water utility revenue bonds and loan preceeds. Um increases in the water fees and sore fees. boundary modification for town center special dis uh uh district and uh create the Penrook Square special service district SSD and dedicate certain tax revenues to the project. If you wish to make comments

during the meeting, please follow the two-step process provided below.

Register by WebEx here or register to the city's uh clerk's office by calling 7573854303.

Um, this uh special formal session will be broadcast on uh cable TV, virginia.gov, Facebook live. Citizens are encouraged to submit their comments to the city council prior to the special formal session via email city council atvb.com.

Sincerely, Bobby Dyer. Okay, welcome one. Welcome all. And madame clerk, I think we're ready to get going.

The first speaker is Marissa Ferguson.

After Miss Ferguson will be JB Moss.

Welcome.

Welcome. Thank you for letting me start this off you guys. So, uh, good evening neighbors and esteemed leaders of Virginia Beach. Um, like she said, my name is Marissa Ferguson and over the last 13 years, I've worked tirelessly in the restaurant industry. I know the sweat, the long hours, and the exhaustion that comes with this industry because I live it every single day. Our doors open before the sun. They close

long after the sun sets. and I spend the time in between managing staff schedules, food costs, and the constant pressure to keep our doors open. That's why the 6% meals tax stacked on top of the 6% sales tax for a qu crushing 12% total feels like such a betrayal to me and every one of us who pours our hearts into feeding our community. Restaurant people work harder than most folks

realize. We're on our feet for 10, 12, sometimes 14 hours a day. We sacrifice family dinners, holidays, and weekends so that tourists and locals can enjoy a hot meal after a day at our beaches. Our profit margins are razor thin, often just 3 to 5%. The city collects more in tax from a single $100 check than we clear in profit after staffing, rent, vendors, and utilities to keep the

lights on. When the tax jumped another half percent last July, I watched customers double take their checks and more often than not call me over to explain to them this tax that they assumed we as an independent restaurant were pocketing from them directly. With everything we do to make guests feel welcome and invited into our establishment, this interaction is devastating. The customer is left

feeling nickeled and dimed after an otherwise pleasant and enjoyable meal.

In response, they began to skip the appetizer, pass on dessert, or simply stayed home. Business dropped and I had to cut hours across the board, front of house and back of house. This means less money in the pockets of people who rely on tips and hourly income to survive dayto-day.

This tax doesn't just hurt owners or myself, it punishes the entire industry.

Most cities across America charge zero or 1% on meals. Virginia Beach chose to make ours one of the highest in the country. It's unfair. It's regressive.

And it's damaging the very businesses that welcome millions of visitors every year. Our restaurants are the heartbeat of Virginia Beach tourism. And I urge city council to cons to listen to the restaurant and restaurant association roll back this tax and give us a fighting chance. We're not asking for a handout. We're asking for fairness so we can keep doing what we love every day,

feeding our community and fueling our economy. Thank you very much.

Thank you for coming.

The next speaker is JB Moss and then Amber Costa.

Good evening, honorable mayor and city council. My name is JB Moss and I'm here to speak out against the Virginia Beach Meals Tax. I researched each of you and how you got to the position you're in, your donors, your campaign promises and slogans. It seems that many of you claim to stand for locals, small business, and diversity. There is no small business sector that's larger, more diverse, or

caters to these ideals more than the restaurant industry. The fact that we're here again having to beg you for fairness is both humiliating and infuriating.

[snorts] The we've played a sort of whack-a-ole game with you when it comes to justifying this cancerous tax. You give a reason, we disprove it, you scrape up another reason. Meals t meals tax rates as high as ours are only seen in our small region and some outlier cities in central and northern Virginia.

Telling me that Newport News's meals tax is higher and thinking it justifies the alarming rate is in disingenuous is just disingenuous. With our property values, beautiful boardwalk hotels, military foundation, incredible restaurant scene, I think we can set our expectations a little higher. Unless our new slogan is Virginia Beach, not quite as bad as Newport News. What if I walked into your

business and told you you needed to raise prices by 6% on your customers?

You would deal with the outcry from the customers, still work your grueling hours, but you and your staff wouldn't receive a dime of that 6%. Well, that's the Virginia Beach meals tax in a nutshell. You want comparisons? Here are some comparisons. There are 19,500 cities in the United States. 87% of them have zero meals tax. And of the 13% that do, the vast majority are in the 0.5 to

1% range. Another fun fact about those cities is they all have first responders in schools. The overwhelming majority must follow the Dylan rule and they all have virtually zero local income tax. I look now upon you newer council members.

I assume many of you took the job and wanted to make a difference. Well, here's your chance. I know Mayor Dyer and Vice Mayor Wilson have routinely said they're opposed to helping us in this matter, but you don't have to be.

You're the future. Speaking of the future, we're ready for a new relationship as the restaurant association with city council. We want to back your initiatives and spread your facts to our collective 1.5 million social media followers. We don't want to just show up and start complaining when we oppose something. We want to be We want a true partnership built on honest discourse. In closing, please understand

we're not here asking for favors, grants, or handouts. We're here in search of fairness. Just tax us the same way all other retail in the city is taxed. We have collected billions for you over the last 50 years. Enough is enough.

Thank you.

The next speaker is Amber Costa.

Good evening.

And then Nicole Davis.

Good evening, members of city council. U my name is Amber Kaska. I'm a Virginia Beach resident and the owner of the Stockpot. And I'm here today to respectfully oppose the meals tax and encourage you to consider u meaningful relief instead. At your recent budget presentation, council made clear that providing tax relief to its citizens is a priority of yours. I appreciate that commitment and I would argue that the

meals tax is one of the most direct and meaningful places to provide that relief. Based on your own projections, the meals tax is estimated to be the third highest tax or fee paid per household in fiscal year 2627.

A reduction or ideally an elimination of this tax would provide immediate visible relief to Virginia Beach citizens families like my family. I'm speaking not only as a local restaurant owner but also someone deeply engaged in our industry. Um, I serve on the executive board of the Virginia Restaurant Lodging and Travel Association, on the board of the Virginia Beach Restaurant Association, and I'm a member of the

National Restaurant Association. Through these roles, I have direct insight into our financial realities that the restaurants are facing across the city, across the region, across the nation.

Um, restaurant profitability projections for fiscal year 2627 from the National Restaurant Association have gone down.

Um, historically you hear the numbers 3 to 5%, they're estimating now 2 to 4%.

Those numbers are continuing to decline.

Those margins are already incredibly thin and any additional cost pressures have [clears throat] an impact in our ability to survive to reinvest in our employees and employ our local residents. Um, I also want to share a specific example from my business. After last year's half a percent meals tax increase based on our revenue the stockp play p play p play p play p play p play

p play p play p play p play p play p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p paid approximately $1,470 in credit card processing fees, that's simply to collect and remit the taxes.

So we pay a fee to our credit card processor on the total. It doesn't they don't divvy up what's a tax, what's not a tax. Um this often overlooked reality, restaurants don't just collect taxes, we pay to process them. Every time a guest pays with a credit card, we incur fees on the full transaction amount, including the taxes owed to the city and the state. As the taxes increase, so do

our costs without any additional revenue to offset them. We at the stockpot don't feel comfortable passing those processing fees onto our guests because, as we all know, consu consumers strongly hate those fees. Uh so instead, we absorb that cost ourselves. And from the customer side, these increases change behavior. For many households, even small added costs are enough to turn one

night out each month into staying home instead. Across hundreds of customers, that means fewer visits, fewer hours for our employees, less spending with our local suppliers, and a weaker local economy. I urge you to align your actions with your stated goal of tax relief and reconsider any increase to the meals tax. If tax relief is truly the goal, reducing the meals tax is one of the clearest ways to put money back

into the hands of Virginia Beach families while protecting the small businesses that serve them. Thank you for your time and your consideration.

Thank you for coming.

The next speaker is Nicole Davis.

After Miss Davis is Rebecca Ree.

Good evening, mayor and council members.

My name is Nicole Davis. I'm the executive director of the independent center and a Virginia Beach resident.

And I'm here tonight to talk about the community organization grant that the city invests in and ask for your continued partnership. Because of the Kun community organization grant, the city partners with trusted trusted local organizations like the Independent Center to reach neighbors who need help staying independent and engaged in our community. Since July, the Independent Center has worked directly with 157

Virginia Beach residents with disabilities and provided information and referral to over 780 people across the city. At any given time, the independent center is actively working with dozens of residents as they set and pursue their own independent living goals. And the majority of those who complete services successfully achieve those goals. This year, that work has led to measurable outcomes. 19 residents

have received home modifications, allowing them to safely remain in their home. One resident moved into independent living for the first time, something they didn't even think was a possibility. 32 residents received benefits counseling, helping them pursue employment while maintaining critical supports. Two residents obtained employment, increasing their financial independence, and nine residents

strengthen their ability to manage their own financial resources, supporting a long-term stability. These outcomes mean fewer emergency calls, fewer costly institutional placements, and more residents being included and contributing to their neighborhoods and local econom e economy. This work is made possible through the community organization grants, which allows the city to deliver these services through

organizations like the independent center. We are proud to be a part of that work and we ask for your continued investment in these services that not only strengthen the community but make it diverse and inclusive. I thank you for your time.

Thank you for coming.

The next speaker is Rebecca Ree.

Rebecca Ree and then Emily Hawk.

Good evening.

Good evening. My name is Rebecca Ree and I'm a proud mom of three busy kids here in Virginia Beach. as well as being fully full-time employed in the restaurant business. And like so many families in our community, my husband and I juggle work, school, rehearsals, sports, homework, and the endless scramble at the end of these long days to put food on the table. That's why I'm strongly opposed to the city's prepared

meals tax. It's hitting us right where it hurts most, our family's budget and the simple joy of sharing a meal together at the end of these days. Every week we like so many others rely on quick prepare prepared options to feed our family. Whether it's grabbing pizza after rehearsals or practice, picking up subs from the deli to ease the hustle and bustle of a busy school night, or

just treating the kids to take out when the work day ran longer than expected.

With the city's six% prepared meals tax stacked on top of the 6% general sales tax, we are now paying a whopping 12% extra on top of those meals. That adds up fast. What used to be an affordable family dinner out or easy take-home option now costs noticeably more, forcing us to cut back or even to skip it altogether. This tax feels especially unfair to working parents like us. We're not dining at

fancy restaurants every night. We're feeding growing children who need reliable and convenient food. The extra burden squeezes families when we're already stretched thin by inflation, rising grocery prices, and housing costs. Instead of supporting our local restaurants and helping families connect over food, this tax discourages exactly the kind of community dining that makes Virginia special. City leaders, you guys

say it brings in revenue, but at what cost? We're skipping school fundraising nights. We're downplaying celebrations for honor roll or team's big win. I know my kids notice when we say, "Nope, not tonight." to their favorite spots. It hurts small businesses. Restaurants report fewer customers, which few means fewer jobs, less vibrancy in our neighborhoods. There are smarter ways to

fund our city's needs without punishing everyday families for eating a prepared meal at our local restaurants. We deserve relief and not another hidden fee on top of our dinner. our I urge our city council to reduce and eventually eliminate the prepared meals tax. Let's make life a little easier for the moms, dads, and their kids who just want to enjoy a meal together. Without the extra

sting at the checkout, our families and our local economy will be better for that. Thank you.

Thank Thank you for coming.

Next speaker is Emily Hawk Emily and then Diana Howard.

Good evening.

Good evening. Thank you for your time.

My name is Emily Hake and I'm a proud Virginia Beach transplant. Lifelong member of the restaurant industry and I'm here to speak out against the Virginia Beach meals tax. I may not have grown up in Virginia Beach, but when I moved here, one of the things I fell in love with the most was how inviting and involved this community is. The Wounded Warrior Project, Seal Kids Foundation,

Fallen Heroes, American Legion, Mission United, The Purple Heart Foundation, The Pink Fund, St. Jude's Children's Hospital, The Susan G. Kman Foundation, the American Cancer Society, Alex's Lemonade Stand, CHKD, Centara Virginia Beach General, The Alzheimer's Association, the American Heart Association, John Bai Elementary School, Norfick Academy, Star of the Sea School, Linkhorn Park Elementary, Strawbridge

Elementary, Birdneck Elementary, Three Oaks Elementary, First Colonial High School, Linhaven Middle School, Virginia Beach Middle School, Cape Henry Collegiate, Great Neck Middle School, Bayside High School, Cox and Kell high schools, Ocean Lakes Elementary and High Schools, Corporate Landing Middle School, countless soccer, wrestling, field hockey, swim, basketball, football volleyball tennis baseball

and softball teams from these schools listed above, Beach FC, ECVC, Francis Day. Ashbury Methodist Church, Beth Messiah Synagogue, Spring Branch Community Church, Wave Church, New Hope Baptist Church, Galilee Episcopal, the Virginia Beach Police Department, the Virginia Beach Fire Department, the Knights of Columbus, Ronald McDonald House, Habitat for Humanity, the Backbay Restoration Foundation, Linhaven River

Now, the Elizabeth River Project, the Brock Environmental Center, Laws, Domestic Violence and Sexual Assault Services, CASA Child Advocates, Transitions, Family Violence Services, Community Lodgings, Reeba's Animal Rescue, the Virginia Beach SPCA, the Peninsula Animal Rescue, the Tears Foundation, the Mary Pearl Williams Foundation, Samaritan House, and the Southeastern Virginia Food Bank. I may

seem long-winded, but these are just a few organizations that the restaurant tours sitting behind and with me have supported within the last year alone, using their time, money, and connections. Despite thin margins and long hours, we have given back to the community in every way we possibly can.

and to force a detrimental tax on a group of people this charitable is both unfair and unacceptable. Thank you for your time.

Thank you for coming.

Next speaker is Diana.

How you doing, D?

Oh, I'm doing good. How you doing? Uh well, I'm Diana Howard and I'm here on behalf of the Virginia Beach Tea Party to oppose the increase in our uh uh real estate tax 5.2%. you know, when you raise our assessments and you don't lower the the rate, you are actually increasing our taxes. And so I recently talked uh to uh Miss Wilson about that and uh reducing the tax rate. And she

said, "But all the money is dedicated, so where would we do it?" So since we're circulating the um meals tax referendum, you know, I'll start with that. So let's get rid of some of those dedicated taxes. open space, which you said has $11 million in there, right? They don't need another $3.2 million from uh the meals tax. I mean, $11 million, that's going to cover four more half acres of

overly priced land, right? Major projects, meals, uh the major projects get meals tax, $14.7 million, right? They also get uh three cents of the the property tax, $2.5 million. But I find is that the general uh fund put $52 million in the CIP and $30 million of fund balance in the CIP. And if you go to the um non-EP departmental, they have uh what is it? $9.5 million reserved for

future major fund projects. So I don't think they need the meals tax, right? So also in the non-departmental budget, there's $5 million for Atlantic Park development agreement and there's $3 million in there for the CIP for the dome for maintenance. We just built that. It already needs maintenance. Boy, that thing is becoming a money pit. The tourism investment program has a reserve

for future capital projects also with uh $4 million. What is this development agreement? There's $4.3 million for that. I foyed it. So I'll find out soon.

Your priority should be lowering taxes on Virginia Beach citizens here. So, I wondered was your mayor the mayor was your London trip in that? Was that one of your priorities? Hope you had fun.

Regional grant reserves $2 million in there for that. So, while I just charged 20 mill $20,000 to fix up my house, you're giving grants to businesses to fix up their property. I don't think that's fair. There's a total unassigned uh balance in the fund for $163 million and 700 what? Yeah. So 163.7 million and there's reserve for contingency of $22.5 million. So I really think there's enough money in the

budget to reduce taxes on Virginia Beach citizens.

Anybody, anybody who wants to sign the petition, I have them so you can circulate them.

Just see me.

The next speaker is David Davis Steedman.

Davis Steedman. And then Courtney Pritchard will be after Mr. Steedman.

Good evening.

Good evening, members of city council.

My name is Davis Steedman and I'm a senior at Norfick Academy. As part of our senior curriculum, we are challenged to research and present a position on an issue that impacts our community. I chose to examine the restaurant tax here in Virginia Beach. I was born and raised in this city and I care deeply about its future. However, through my research and personal experience, I've come to

believe that this tax is detrimental to the very community it is meant to support. As someone who frequents local restaurants and is part of a workforce that relies heavily on the hospitality industry, I've seen firsthand the negative effects this tax has on both businesses and customers. It discourages people from dining out, reduces customer traffic, and ultimately impacts the

number of hours available for employees.

For many of my peers and I, these jobs are our first opportunities to earn money, build responsibility, and gain real world experience. Yet friends of mine are struggling to find summer jobs or even secure enough hours to make meaningful income. This tax is not just a line item on a receipt. It directly affects the livelihoods of young workers and small business owners across our

city. When I presented my project titled 86 the restaurant tax, both teachers and students were surprised to learn how much of an outlier Virginia Beach is compared to other cities. In the days that followed, many people shared personal stories about how this tax has changed their dining habits and strained their family budgets. As first time voters, my peers and I are paying close

attention to the decisions made by this council. We are eager to support leaders who understand the real and lasting impacts of policies like this one. I respectfully urge you to reconsider the restaurant tax and its consequences on the hospitality industry, small businesses, and the people of Virginia Beach. Thank you.

Thank you for coming.

The next speaker is Courtney Pritchard.

After Miss Pritchard will be Emily Johnson.

Good evening.

Good evening, council. My name is Courtney Pritchard. You may remember me from the boat tax rant. Um, and I do appreciate y'all going with the $40 registration fee last year in lie of the $1.50 per $100 of assessed value. Um, although this year I see it's going to be a $250 fee. And I'm sure next year it'll be 500 because y'all got a funny way of doing math. Um, if you haven't

heard from these people, then you are not connected to reality and to our city. Y'all better cancel that food tax because that is ridiculous and we got plenty of money in the budget. And I have found instead of just problems, I have come with solutions. My handydandy folder. And I did go through about 350 pages of the 420 page budget. So there are some places that you can take it

from. First, I do want to address the fact, don't be standing up here touting like you're proud of yourselves about these tax credits because your tax credit on the personal property tax for the vehicles is maxed out at $80. And on the homes, your tax credit uh for the real estate tax is $77.

So, $157, that's three bags of groceries now. So, I don't know if that resonates with you, but that don't come out here like you're proud of something because that is nothing to be proud of. That's a slap in my face to be quite honest.

Um, a lot of the places you can take it from and we love our city. We used to, you know, we used to love the city because it's like a small town in a big city, but now, as you can see by all the Facebook comments and stuff, people hate y'all, you know, and they hate living here. And you guys are going to drive the good people of the city away. What

makes our city is the locals and the people and the community. And we're not connecting if we can't go to restaurants and eat because we can't freaking afford it, you know, and there's a lot of spending in here. You know, this entire capital improvement program is pretty insane. And you guys can take it out of your parks. This I spoke on this the last time. This crazy kooky little thing

y'all want to do about putting a freaking 12mi bike path on the train tracks for, you know, 36 38 million.

Stop. That's ridiculous. We don't need it. Nobody wants to ride their bike through, you know, Central Drive. Okay?

Like, it's not a scenic, beautiful place downtown. It's going to be a fail. It's going to be a fail like all the rest of the stuff. Y'all just miss the mark every time. You know, Town Center, you miss the mark. The dome, don't get me started on the dome. $3 million for maintenance of a brand new building. And hey, that's not to mention the $8 million closed door settlement we're coming up with to give these freaking

developers. It cost them a million dollars to correct the problem. Why are we giving them $8 million? So, you know, I don't know what's up with that. Sure, I'm going to look into it some more.

Don't don't even think I'm not. Um, we've got I mean, just all of this park stuff is crazy. 13.8 million.

Thank you for coming. Appreciate it.

Yep. Y'all just y'all need to get in line with your community because you're not going to be able to live in it anymore.

The next speaker is Emily Johnson. After Miss Johnson is Martha Theo.

Good evening.

Good evening. Hello members of the city council. My name is Emily Johnson and I have lived in Virginia Beach my entire life, all 19 years of it. I am currently an employee of both Oceani Seafood Restaurant and the Beach Pub and I'm a student at Tidewater Community College as well about to graduate. I know that I am young. I know that I don't have a lot of experience and that is why I come

here to you today not only with my own voice but with the voices of my peers and my co-workers.

I have asked them a series of questions.

Things like what is your opinion on the meal tax? How often do you go out to eat? Has the meal tax affected the amount of tips that you make? The resounding answer is negative. Twice I have had co-workers say that the meal tax is ridiculous. Some co-workers flat out refuse or avoid coming to Virginia Beach altogether to eat out. And the most important thing is that almost every single co-orker that I have talked

to has said that they have seen a decrease in the amount of tips that they make. due to the mail tax. The mail tax is not targeting the tourists as intended. It is targeting the people, the ones that are working at the restaurants who are trying to make an honest living and better their own lives. That is why I and many of my co-workers are simply asking for you to

just reduce the meal tax to at least 3.5%.

Eventually, we'd like you to get rid of the meal tax altogether. and hopefully we'll see that our tips go up and that we will hopefully be able to make a better lives for ourselves and for our families. Thank you for your time and consideration.

Thank you for coming.

The next speaker is Martha Theo and then Debbie Lu Hay.

Good evening.

Good evening, Mayor and members of council.

Thank you for the opportunity to speak tonight. I'm here to ask you to reconsider a policy that unintentionally creates a barrier for individuals with disabilities who are trying to live as independently and as productively as possible. Right now in Virginia Beach, individuals must keep their total income under $29,000 per year to avoid paying personal property taxes on a vehicle.

That total includes social security, income that is essential for daily living, not extra or discretionary.

Many people with disabilities rely on a vehicle, even if they do not drive themselves.

My son is one of them. He depends on me for transportation, to medical appointments, work, and community activities.

He pays to ensure the vehicle. It is essential to his independence.

He is not alone. Some individuals use wheelchairs and rely on others to drive them. Some drive themselves. But in all cases, access to a vehicle is not a luxury. It's a necessity.

Yet, under this policy, if they earn a little more or simply receive their full benefits, they risk crossing that threshold and facing attacks they cannot easily afford. that discourages work, independence, and progress.

Last year, the commissioner of the revenue recommended increasing this threshold and noted it would have minimal impact on city revenue. I respectfully ask you to consider that recommendation. Now, this is a small practical change that would remove a real barrier and support dignity, independence, and the ability to contribute. This is not about special treatment. It's about fair treatment. If

we truly believe in opportunity and inclusion, we cannot continue to penalize people for working harder or striving for independence. I urge you, please act now. Thank you for your time and consideration.

Thank you both for coming.

The ne the next speaker is Debbie Liu Hay and then Vanessa Ber.

Good evening.

Um, thank you so much for having us here and for your attention.

I am Debbie Lou, president of the Virginia Beach Restaurant Association.

I'm also manager of the Ocean Eddie Seafood Restaurant.

The association met with many of you this past year. Unfortunately, some of you we did not get to meet, but we wanted to discuss that Virginia Beach restaurant tax with you. I've sent letters. I've attended a budget meeting and I conversed with some of you about repealing the Virginia meals tax.

I'm not sure if the association was heard. So, tonight I brought my family, my two boys who are in the restaurant industry, one being a chef, and my mother who's 88 next week, who's the owner of Oceanetti Seafood Restaurant.

I also brought you some of my best friends.

They're all in every district. There's representation here from either a working place or their homes in each of your districts.

We urge you to reduce the tax to 3.5.

Economic growth from tourism and population increases has already generated increased tax revenue which you already heard earlier today.

Please do not single out an industry with this high tax and help us stay as citizens here in Virginia Beach.

Thank you.

The next speaker is Vanessa Burgerer and then Greg Alire.

Good evening.

Good evening, council members, ladies and gentlemen, members, and my fellow community. I come tonight to address you about the meal tax. We ask that you please reduce it to 3.5%. As you've heard from our other concerned citizens, it places a burden upon the staff and upon the families in our community. I'd like to ask you for a moment to think about the word allocation.

We understand that you're trying to allocate a tax onto the industry in order to pay for projects that you find will ultimately benefit us in return.

However, I would ask you to please consider how that tax is being allocated and why. I think the motive at the end of the day is positive for the development of Virginia Beach, but to achieve it, I believe that there's another solution.

So, in short, please reconsider the meals tax to reduce it down to 3.5% as as Emily said, to eventually see it go away.

I urge you to think about how we can allocate and find different money elsewhere to pay for it. Thank you for your time.

Thank you.

Appreciate it.

The next speaker is Greg Alire. And then mayor, we have one WebEx speaker.

Welcome.

Good evening, uh, mayor and councilman.

Uh, my name is Greg Alkyre. I live in district 8 and I am also a restaurant owner and a member of the Virginia Beach Restaurant Association.

[clears throat] I'm here today to speak on in opposition of the proposed increase on the meals tax. Virginia Beach is a tourism driven economy and restaurants are a center part of that experience. We are not just businesses.

We are employers gathering gathering places and key drivers to visitors.

When guests choose where to travel, they look at the overall cost of their experience.

Dining is one of the most frequent and visible invisible expenses um sorry visible expenses during any visit.

While one p while a half a percent increase may seem small, it adds up quickly across multiple meals, multiple days across families and groups.

Visitors don't analyze the breakdown of taxes, they feel it, the total price.

And when the [clears throat] price crosses a threshold because behavior changes, they dine out less.

They choose different destinations and they shorten their stay.

That matters because in tourism economy volume drives revenue.

If we reduce visitation or d din din din din din din din din din din din din din din din din din din din din din din din din din din din din din din din din din din din din din din din diner frequency that we reduce the very tax that we rely on.

Restaurants see fewer guests, employees see fewer hours, vendors see less volume and ultimately the city collects less in total revenue.

[clears throat] This is not just about restaurants. It's about a broader economic ecosystem that depends on healthy, active and hospitality industry. Restaurants also operate on a narrow margin. We are highly sensitive to changes in customers behavior. When costs rise for the guest, we feel it immediately in the traffic and sales. Our position is not to simply oppose an increase, but to advocate for

more sustainable long-term approach. The Virginia Beach Restaurant Association supports holding the current rate and working towards phasing it down to return to a more competitive meals tax of 3.5%.

Not immediately, but in a way that aligns with our tourism growth, economic stability, and long-term revenue health for the city.

We believe that Virginia Beach should be positioned as a competitive, accessible destination, not more, not a more expensive one. We want to continue to grow, hire, contribute to the success of the city, but that depends on maintaining an environment where our visitors choose Virginia Beach again and again.

We ask Thank you very much, sir. Really appreciate you coming for your time.

And the last the last speaker is via webex Kevin Shy. Mr. Shy, you are unmuted and may begin.

Uh, good evening. My name is Kevin.

Do you hear?

I appreciate the opportunity to share my Sorry, we're having um Sean, can you turn it up? We can barely hear him.

Give us one second, Mr. Sharky, please.

Mr. Sharky, you want to try again? See if we can hear you.

Want to go again?

Can you try me?

No.

Mr. Sharky, if you would try again.

All right. Can you hear me?

Uh, sure. Let's try this. Go ahead.

All right. Good evening. My name is Kevin Shy. I'm the owner and executive chef of 1608 Craft House on Pleasure Pleasure House Road. As someone who's worked in the Virginia Beach restaurant community for over 20 years, the last 11 as a small business owner, I urge you to consider the real impact this tax has on small businesses like mine. This meal tax directly affects our ability to

remain competitive, especially when most of our customers are watching their budgets closely. Increased costs could mean fewer guests. Fewer guests threaten the livelihood of not just owners, but our employees and their families. Guests sometimes feel like we're ripping them off. I've had guests from out of town ask to speak to a manager because they don't have the extra taxes where they

live. Even guests taking the commenting online to quote unquote watch pricing as it doesn't match the menus on the price.

the prices on the menu. This could potentially affect our reputation, giving a negative look on our business with something that is completely out of our control. Most of us already operate on razor thin margins and don't have a large corporation back backing us. This tax makes it harder for us to survive, let alone let alone thrive or reinvest in our business. I ask you to reconsider

the meals tax and explore alternatives that do not jeopardize the small businesses that form the backbone of our community. Thank you for your time.

Mayor, that is all the speakers, sir.

Uh, folks, I want to thank each and every one of you for coming out. We hear you. And but once again, thank you.

Thank you. Thank you. God bless you.