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July 28, 2026 <br /> <br /> <br /> The School Board Resolution states that “Portsmouth Public Schools has <br />significant and documented capital improvement needs that have not been adequately <br />addressed through existing local revenue sources alone, and…funding these needs <br />through property tax increases \[rather than a 1% sales tax\] would place a <br />disproportionately harmful burden on Portsmouth homeowners and small businesses”. <br /> <br /> The School Board Resolution further states that “capital improvement projects <br />including new school construction, major renovations, and the acquisition of new school <br />sites are essential to meeting the needs of Portsmouth’s student population and <br />addressing long-standing deferred maintenance”. <br /> <br /> Under the requirements of the Virginia Code, in order for a referendum to be held, <br />it is first necessary for City Council to adopt a resolution initiating the process, and second <br />for the Circuit Court to enter an order authorizing the referendum. <br /> <br />Discussion: <br /> <br /> <br />only <br /> Under the Virginia Code, revenues raised through the 1% sales tax can be <br /> <br />used for capital projects for the construction or major renovation of Portsmouth schools. <br /> <br /> According to projections by the Virginia Department of Taxation, the 1% sales tax <br /> <br />would raise approximately $13,000,000 annually for this purpose. <br /> <br /> The Virginia Code exempts food purchased for consumption and essential <br /> <br />personal hygiene products from the 1% tax. <br /> <br /> If the referendum is approved by the voters, the 1% tax would be authorized <br /> <br />through June 30, 2046. <br /> <br />Financial Impact: <br /> <br /> <br /> This Resolution merely authorizes the holding of a referendum. If the referendum <br />is approved, it is estimated that approximately $13,000,000 in revenue would be received <br />annually for the sole purpose of school construction and substantial renovation. <br /> <br />Recommended Action: <br /> <br /> Adoption of the resolution. Strategic Pillar #5: Education, Workforce & <br />Partnerships for the Future. <br /> <br />Next Steps Following Council Action: <br /> <br /> The City Attorney will make the necessary filings to obtain an order from the <br /> <br />Portsmouth Circuit Court to authorize the referendum. <br /> <br /> The referendum would be held as part of the general election on November 3, <br /> <br />2026. <br /> <br />1. Sergio Neal, 2102 Nashville Avenue, offered a suggestion on how to fund additional <br /> monies for the schools. <br /> <br />2. Luis Padilla, 301 Chautauqua Avenue, spoke in opposition to this item. <br /> <br /> Councilman Hugel asked that City Attorney Challenger provide information on what <br /> <br />the next steps would be to reconsider this referendum if voted down by citizens. <br /> <br /> City Manager Challenger will provide an update. <br /> <br />Motion by Mr. Hugel, and seconded by Ms. Bryant, to adopt the following <br />resolution, and was adopted by the following vote: <br /> <br />“RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORTSMOUTH, VIRGINIA <br />INITIATING A REFERENDUM PURSUANT TO SECTION 58.1-605.1 OF THE CODE <br />OF VIRGINIA, AS AMENDED BY THE 2026 BIENNIAL BUDGET OF THE <br />COMMONWEALTH OF VIRGINIA, TO AUTHORIZE IMPOSITION OF AN ADDITIONAL <br />LOCAL GENERAL RETAIL SALES TAX NOT TO EXCEED 1%, THE PROCEEDS OF <br />WHICH WOULD BE USED TO PROVIDE REVENUE SOLELY FOR CAPITAL <br />PROJECTS FOR THE CONSTRUCTION OR MAJOR RENOVATION OF SCHOOLS <br />SERVING THE CITY OF PORTSMOUTH. <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />