Hampton council advances FY2026 budget ordinances after state veto forces funding shifts

Hampton City Council held a special meeting May 7 to take public comment on the city manager's recommended FY2026 budget and to introduce a package of tax, fee and appropriation ordinances, then voted to advance those ordinances to the council's May 14 meeting for final consideration.

City Manager Mary Bunting and interim budget manager Angelique Schenck told council that the city's FY2026 plan had assumed $2,500,000 in SAFER (community violence reduction) grant funding approved by the General Assembly. Those grants were removed by a governor's line‑item veto late last week, and staff recommended shifting some of the violence‑reduction spending into the general fund to preserve three programs: a diversion program for young people, a violence‑interrupter program, and a housing‑stabilization effort connected to Riverside. "This program was vetoed or the expansion of this program was vetoed by the governor on Friday," Angelique Schenck said, describing the $2.5 million SAFER grant the budget had relied on.

To replace the lost grant revenue, staff proposed a mix of actions: move the SAFER funding items into the general fund where feasible; reduce or eliminate certain other new items included in the manager's recommended budget; and draw down contingency by roughly $36,800 to balance the budget. Specific staff recommendations included funding the housing stabilization program at a reduced level of $100,000 (down from the manager's recommended amount), eliminating a planned main branch library manager position (duties to be reassigned), halving a new cemetery maintenance grants program from $172,000 to $86,000, removing funding for 10 part‑time summer intern positions, reducing expansion funding for the Wonder Walk event, and ending the proposed special event advertising line (staff said marketing would absorb advertising duties).

Bunting and Schenck said staff prioritized preserving violence‑reduction investments because of the programs' role in reducing fatal and nonfatal shootings. "The violence reduction efforts are the most critical because they save lives," Bunting said. Staff presented options for how reduced cemetery maintenance funding could be allocated, noting the full $172,000 would have been calculated by acreage (18 cemeteries over 44 acres) and that the $86,000 option could either cover fewer cemeteries or reduce the frequency/level of maintenance per site.

During the public hearing two citizens addressed the council. Aaron Weaver urged a lower tax rate and questioned whether certain capital or one‑time funds could be repurposed for schools and employees. "We must put the citizens and employees first," Weaver said, urging the city to look at capital line items before cutting services. Brenda Marks pressed for financial transparency from the contractor that managed the Aquaplex and reiterated her view that the facility had been subsidized. Bunting responded that finance staff are preparing operative documents from the Aquaplex contract and said she would provide the records when completed; she also explained that some capital projects are funded with bond proceeds and cannot legally be repurposed for recurring operating costs.

Clerk of council read titles for more than twenty ordinances: tax‑rate and fee changes (including a proposed one‑cent reduction in the real estate tax rate from $1.15 to $1.14 per $100 of assessed value), increases to courthouse security and sewer and stormwater fees, and appropriation ordinances for the general fund and multiple enterprise and internal funds (see "Votes at a glance" below). After the public hearing, Council member Ferriley moved to advance the tax, fee and appropriation ordinances to the May 14 meeting; the motion was seconded and the clerk called the roll. The roll call recorded ayes from Councilman Bowman, Vice Mayor Steven Brown, Councilwoman Campbell, Councilwoman Farabee, Councilwoman Harper, Councilwoman Mugler, and Mayor James A. Gray Jr.; the motion carried and the package was advanced for final action on May 14.

Bunting reminded residents that any changes adopted by council would not take effect until the start of the fiscal year on July 1, 2025, and that adjustments to real estate tax rates would be reflected on the first billing due in the new fiscal year (December 5). Council and staff said they are prepared to bring formal budget amendments at the May 14 meeting to respond to the SAFER grant veto and to consider any council proposals that emerge from tonight's public comments.

Next steps: staff will draft specific ordinance language and budget amendment motions for May 14; council will consider final adoption then. If approved, FY2026 budget changes and any new positions or programs would take effect July 1, 2025.