PORTSMOUTH — City Council on Tuesday voted to place a referendum on the November ballot that will ask voters whether to authorize a local sales tax of up to 1% to fund school capital projects.

The Virginia General Assembly this year included legislation in the budget to allow local governments to consider the initiative as a way to help address a statewide $25 billion deficit in school capital funding. If approved, the additional general retail sales tax proceeds would be used for new construction and renovation of Portsmouth Public Schools.

The question will be on the ballot for Portsmouth voters when they hit the polls for the Nov. 3 general election.

City Council voted 5-1 to authorize the ballot referendum, with Vice Mayor Bill Moody voting in opposition. Council member Bill Dodson Jr. was absent from Tuesday's meeting.

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"During my time on council, three new schools have been built," Moody said. "We did them without a referendum. We did them within our budget and I feel that we could do that again."

A resolution of support from the Portsmouth School Board states that the additional revenue would help address "long-standing deferred maintenance" and "significant and documented capital improvement needs that have not been adequately addressed through existing local revenue sources alone." The board said the additional tax option is less burdensome than implementing a real estate tax rate increase.

The tax would generate $13 million annually for the city, according to a city memo citing the Virginia Department of Taxation. If approved by voters, it would be in effect through June 2046. Food purchases and essential hygiene products would be exempt from the tax.

"When you hear 'tax,' it just brings a bad taste in people's mouths," said Portsmouth resident Sergio Neal. "But we got to remember the return on investment."

Portsmouth resident Luis Padilla said an independent audit of the schools' spending and ensuring existing tax dollars are spent "effectively" are better alternatives.

"A 1% increase may sound small on paper, but it stacks up over the course of a year into a very heavy financial burden on residents and local businesses," Padilla said. "Right now, families in Portsmouth are stretched thin as it is and asking them to give more is already hard. It's not feasible."

If voters approve the referendum, City Attorney Derek Challenger said council members would have 120 days to advance an ordinance to implement it.

Other cities have also authorized the ballot measure this year in their jurisdictions, including Richmond and Charlottesville. York County Board of Supervisors voted in support last week.

Also at Tuesday's meeting, Portsmouth City Council voted unanimously to transfer an additional $2.5 million from its capital improvement plan to the school board's fiscal 2027 budget of $304.6 million. The $2.5 million increase brings the city's local share to $92.4 million.

Natalie Anderson, 757-732-1133, [email protected]