City Manager proposes 3.5% wage increase for Hampton's general workforce

During the Hampton City Council Work Session on April 9, 2025, city officials discussed critical issues surrounding employee compensation and budget allocations. The meeting highlighted the importance of competitive pay for city employees, emphasizing that the workforce is essential for effective city service delivery.

City representatives noted that Hampton serves more residents per employee than most peer localities, which underscores the need for adequate compensation. A significant portion of the community expressed that employee compensation should be prioritized over tax rate reductions. In response, the city proposed a 3.5% general wage increase for its workforce, slightly above the average 3% raise seen in other localities. Additionally, the city plans to cover a 4.5% increase in healthcare insurance premiums, ensuring that employees benefit fully from the wage increase.

To address potential future pay compression issues, the budget includes a 1.5% scale adjustment for civilian employees. This proactive measure aims to prevent employee dissatisfaction and manage costs effectively. The city also reaffirmed its commitment to sworn public safety employees, including police and firefighters, who will continue to receive annual step increases as part of a public safety step plan implemented two years ago.

The budget discussions also touched on strategic priorities, with funding directed toward initiatives that align with community needs and council support. While most revenue was allocated to mandated increases and employee compensation, a few projects lacking strong public backing were included due to their critical nature, as identified by city management.

Overall, the meeting underscored the city's commitment to supporting its employees while balancing budgetary constraints and community priorities. The council will continue to evaluate these proposals as they move toward final budget decisions.