Virginia Beach’s budget for the 2025-2026 period has been one of the “most challenging” in the last 20 years, according to Virginia Beach Mayor Bobby Dyer. By state code, Virginia Beach must have a balanced budget, but as of February, the budgeted costs for the next fiscal year sit $7 million higher than they were supposed to (as of reporting by WHRO in February), diagnosed as the effects of projects affected by inflation and slowing growth in tax revenue.

Thus, since the city council does not want to increase real estate taxes to offset these costs (which is at 97¢ per $100 of assessed value, the lowest in Hampton Roads), the plans for Fiscal Year (FY) 2026 increase the meal tax by 0.5% and create a tax on “pleasure boat vessels 18 feet and above” for $1.5 per $100 of assessed value. The city manager, Patrick Duhaney, presented this proposal for the city and VBCPS budgets to the city council on March 25, and the budget will be adopted by May 13. The budget for this year (October 1, 2025 to September 31, 2026), the FY 25-26 period, should be just over $2.8 billion, an increase of $125 million from last cycle. 

The Capital Improvement Program (CIP), an annually developed six-year-long (2026-2031) plan for infrastructure maintenance and construction, has been programmed with $5.6 billion in funding. This year’s budget, in an effort to support the CIP, proposes to revive the “Major Projects Fund” with $21.1 million in funding. In addition, the CIP is projected to spend a total of over $750 million on three construction projects around the city: Atlantic Park, Rudee Park, and the Princess Anne High School replacement.

Atlantic Park:

Overview of the project

Situated next to the ViBe Creative District on 19th Street and just 1,000 feet from the Oceanfront’s shore, the project includes the construction of a surf lagoon, 425 apartments, shops, and “The Dome,” an entertainment venue that can accommodate 5,000 guests (and pays homage to the old Dome that was torn down in 1994).

Created by Venture Realty Group (which is responsible for “6 million square feet of projects worth more than $600 million in the Hampton Roads market”) and supported by PA alumnus Pharrell Williams, Atlantic Park will use “Wavegarden” technology, capable of producing 1,000 artificial waves per hour up to six feet high year-round. Wavegarden already has nine surf parks around the world, with numerous other projects planned around the world. 

The parking garage and “The Dome” are projected to open in May, while the surf lagoon is supposed to open this July. 

How much will it cost?

The project will cost an estimated $325 million, about $200 million of which is appropriated by the CIP, including:

• $48.1 million: “Street Improvements”
• $9.2 million: “Acquisition”
• $55 million: “The Dome”
• $45 million: Parking Garage (1650 spaces)
• $36.6 million: “Offsite Infrastructure”

Rudee Park:

Overview of the project

Rudee Park is a proposal for a multi-use park at the far-most end of the boardwalk situated on the coast of Rudee Inlet. The eight-acre (or six football fields) plot of land has been owned by the city since 2004 when it was purchased for $7 million, and is currently occupied by parking spaces. After years of talks, this proposal aims to finally develop the area. Included in the features of mockups from 2022 by Virginia Beach Parks and Recreation are a fishing pier, a skatepark, and “artful” play structures, among others. Designers have indicated a focus on ocean views and resistance to the effect of climate change. 

A survey taken of 4,000 Virginia Beach residents found that 71% of respondents wanted a green space for the Rudee Park space, and 83% did not want a hotel. The plan is in the final stages of refining the design and will be presented sometime in April in front of the City Council, who will have to approve the plans before construction begins. However, there has been a mix of skepticism and approval within the membership of the city council on the program, particularly about the cost of the park.

How much will it cost?

The project, led by local firm Dills Architects, was appropriated $68 million by the Tourism Investment Program Fund within the Capital Improvement Program. The city council already moved $4 million to fund design work in the fall of 2023. 

Princess Anne High School Updates:

Overview of the project

Princess Anne celebrated its 70th birthday last year; it is the oldest school in Virginia Beach, and after surviving a fire that burned down a third of the building in 1995, including 29 classrooms, the library, and the cafeteria, it has become a mish-mash of architectural features and time-periods. For the last 15 years, proposals for a rebuild have been kicking around the local government level, but to no real avail. 

In March 2023, however, it appeared that a collaboration between the S.B. Ballard Construction Company and the City Government may have had PA staff and students move out of the building in the summer of 2025 into the Holland Road Annex (the old Kellam HS Building). The new building, whenever constructed, could be operational for the next “80 to 100 years.” Regardless, when presented with the plans in March 2024, the Virginia Beach School Board voted to postpone the proposed plan until 2043 because there was not enough funding, among a multitude of factors (click here for more information). Currently, while only 14% of the CIP budget is for schools, 45% of all Virginia Beach City government spending last year was on education. 

As of March 2025, PA has been deemed the division’s “top priority” per VBCPS’ Chief Operating Officer, Jack Freeman, but little has occurred in the way of news around the PA rebuilding effort since last year. 

How much will it cost?

The total projected cost of the Princess Anne High School replacement project is now $500 million, of which $176 million has already been appropriated, and a further $40 million is expected to be appropriated by 2031, leaving room for a further $283 million that needs to be found before construction begins.