City manager presents FY26 recommended budget: $1.2B operating plan, no real estate tax increase; council schedules public hearings

The city manager and Lisa Cipriano, the city’s budget director, presented the city manager’s recommended FY2026 operating budget to Newport News City Council and asked the council to adopt a public‑hearing schedule for the budget.

The recommended operating budget totals about $1.2 billion and, as presented, maintains the city’s real estate tax rate at $1.18 per $100 of assessed value with no recommended increases to waterworks, solid waste, stormwater or wastewater user fees. The manager said the budget "is based on maintaining the real estate tax rate of 1 18 per 100 of assessed value." The recommendation includes full funding of the school superintendent’s operating request of $2,400,000, full funding for the public safety step plan begun in the current year, a market‑based compensation plan for non‑sworn general employees, and funds for a 3% general salary adjustment for eligible employees.

Cipriano said the city is recognizing an average assessment increase of 3.76% across eight property categories; she said that, at the current tax rate, each penny on the rate is worth about $2,260,000 and that an increase in assessed value would generate approximately $2,300,000 in new revenue before accounting for expanded participation in tax relief programs. She told council that combined tax relief due to increased participation in the disabled veterans exemption and other deferrals is estimated at about $9,100,000, which offsets some of the assessment gains.

The presentation identified major expenditure drivers in FY26: full funding of school operations (the schools' recommended budget was cited at $406,000,000), funding public safety positions and compensation, utilities and maintenance for four new facilities (about $1,000,000), increased demolition and code compliance funding tied to blight concerns, vehicle replacement funding, and a new supplement for the public defender’s office of $245,000. The manager and Cipriano said the budget includes 43 positions realigned from vacancies and eight added positions for FY26; they said the overall general fund position count is flat year‑to‑year.

Cipriano outlined targeted investments drawn from citizen engagement results: one additional code compliance inspector and more demolition funding to address blighted/vacant buildings (ranked highest in the citizen survey), a year‑long housing study, $1.1 million in enterprise/tourism zone incentives, $1.1 million in cash capital for school projects, $118,000 to pay tuition for eligible aviation academy students, and second‑year funding for a youth career summer program. She also described a proposed adjustment to the elderly tax exemption, raising the qualifying assessment threshold toward the current poverty guideline for a family of four ($32,150), and said staff would calculate the number of households affected before firming the change.

In addition to the budget presentation, the council voted to set public hearings on the recommended budget. Councilman Coman (speaker identified in the transcript at the time of motion) moved the motion, citing section 6.09 of the city charter, to hold a public hearing on April 8, 2025 at 7 p.m. in Council Chambers and to continue the hearing on April 10, 2025 at 7 p.m. in Room 113 of the Denbigh Community Center to allow additional public comment. The motion was seconded and the roll call vote recorded all five members present voting yes: Councilman Long, Vice Mayor Bethany, Councilman Coleman, Councilman Harris and Mayor Jones. The clerk announced "Motion carried 5 0."

Council then approved a motion to go into a closed meeting under the cited Virginia code provision for candidate interviews, disposition of publicly held real property in the northern section of the city, and potential acquisition of real property in the central section of the city. That motion and the subsequent certification vote after the closed session were recorded; the certification roll call showed four council members voting (Long, Bethany, Coleman, Harris) with Mayor Jones not recorded on the certification roll call, and the clerk announced the motion carried 4‑0.

Ending: Staff will publish the recommended budget, narrative, line item details and supporting materials online and in libraries; staff also said position papers on topics requiring additional information will be distributed to council in the coming weeks ahead of budget deliberations and public hearings.