Suffolk approved a more than $942 million budget on Wednesday, an 8% increase from 2025.
Here are five things to know.
Property tax rates are flat
Real estate taxes will remain at $1.07 per $100 of assessed value in 2026, but that doesn’t mean residents won’t see their bills increase.
The total property value in the city increased by 4.71% or 6.54% when new construction is added. The exact increase will vary in different parts of the city, but generally means many property owners will pay more despite the flat tax rate.
Suffolk would have to decrease its tax rate to $1.032 per $100 of assessed value to keep property tax revenue flat.
Uncertainty drove some decisions
While some residents and one city council member wanted a lower tax rate, council was reluctant to do so and reduce revenue while facing economic uncertainty and possible federal funding cuts.
“This year, I’ve got a little bit of angst as to what’s going on,” said Mayor Mike Duman. “I don't think there’s anybody at any level of government, city, state, local, fed or even global, that has a lot of faith in predicting what is going to come down the pike this year.”
Councilmember John Rector said he expected Suffolk to lose some federal money it anticipated, similar to Portsmouth, which had a $24 million Federal Emergency Management Agency grant cut in April, and that rising material costs and other impacts from trade disruptions are already changing the city’s calculus for some infrastructure projects.
Rector said he didn’t think the figures in the city’s capital plan beyond 2025 are “worth the paper that they’re written on.”
Councilmember Tim Johnson was the opposing vote. He said he couldn’t support the budget without decreasing the tax rate when hearing some residents have seen their home values rise 20% to 30% over the past five years.
“I’m very concerned about the uncertainty of what we’re coming forward to in the next year, but I don’t think that allowing a 2-cent decrease in our taxes is going to make that big a difference.”
Additional school funds and staff raises
Suffolk Public Schools is receiving $5.8 million more from the city for a total of $81.2 million. The city is also changing how it accounts for school resource officers, paying new and current staff out of its budget and no longer asking the schools to reimburse the cost.
The amount is less than the $7 million the schools asked for, but Duman said in April that the change will put the division’s budget ahead by about $200,000 in 2026.
Schools make up 28% of local tax appropriations.
Suffolk is giving staff 3% raises and other targeted pay adjustments to make compensation more competitive.
The city is also budgeting for 46 new full-time employees, including two sheriff deputies and nine police officers, four of whom are school resource officers. Other hires include 10 fire and rescue positions, six social services employees and four Downtown Library staff members.
Water and trash rates will go up
Residents’ water and sewer bills will increase by about $4 per month for the average household, bringing the typical bill from about $109 to $113 per month. The increase does not include Hampton Roads Sewer District bills.
Suffolk utilities staff say the additional money is needed to cover increased operating costs and almost $10 million in capital upgrades.
Trash rates will also bump by $4.75 per month, bringing bills to $30 per month. Staff say it’s largely to pay for replacing five of Suffolk’s trash trucks, which will cost about $2 million. Suffolk will also draw nearly $900,000 from its refuse fund to help pay for the trucks.
Infrastructure and facilities
More than $117 million in Suffolk’s budget is set aside for infrastructure and quality of life projects, about 40% of which is sourced from state and federal grants.
“We’re behind the wheel when it comes to infrastructure so we have to put forth the money in place to get that done, just to catch up,” said Councilmember Ebony Wright.
Infrastructure projects in the city’s capital improvements plan for 2026 include $32 million for Route 460 improvements and $3.8 million for the Kings Highway Bridge design, both largely grant funded; $4 million for improvements to the intersection of Route 17 and Shoulders Hill Road; $1 million for new sidewalks along Townpoint Road; about $10 million for various roadway and infrastructure improvements around the city; and $485,000 for a feasibility study for an Amtrak stop.
Suffolk is also setting aside $950,000 for work on its first city-run homeless shelter; $1 million for renovations of the old Virginian-Pilot building to create office space that can be used during the Godwin Courts Building renovation; and $3.3 million for security systems in city buildings, addressing space needs for staff in City Hall and replacing HVAC units at the North Suffolk Public Library building.
