Hampton council adopts FY2026 tax rate and budget; key votes and ordinance actions

Hampton City Council on Wednesday adopted the fiscal year 2026 tax rates and a series of budget appropriation ordinances, approving general, capital, enterprise and grant fund budgets after amending revenue and expenditure lines to cover employee compensation and other priorities.

Council adopted ordinance 25‑0042 to set the real‑estate tax rate for fiscal year 2026. The motion to adopt the tax and fee ordinance passed on a roll call vote: Councilwoman Carolyn Campbell voted “Nay”; Councilman Bowman, Vice Mayor Brown, Councilwoman Ferebee, Councilwoman Harper, Councilwoman Mugler and Mayor Gray voted “Aye.”

City Manager Bunning explained the adopted general fund amendments (item 16) increase current real property tax revenue by $749,924 and add a $504,000 transfer from the school operating fund to preserve a 4% workforce salary increase; those amendments and the general fund ordinance (25‑0045) passed on a roll call vote with Councilwoman Campbell recorded as “Nay” and the other members voting “Aye.” The capital budget ordinance (item 17) likewise passed with Campbell voting “Nay.” The city manager said last‑minute supplemental assessment increases and a reimbursement arrangement with Hampton City Schools helped avoid deeper cuts and supported the higher employee compensation level.

Council also approved a block of other tax and fee ordinances (items 11–15) including service district taxes for business improvement districts and stormwater/sewer fee ordinance amendments; those measures passed on a single motion with unanimous approval. Budget appropriation ordinances for enterprise funds and operating funds (items 18–31) were adopted on a single motion and recorded as unanimous.

The grant fund ordinance (item 32) was amended to reflect the loss of a previously expected SAFER community violence reduction grant; staff shifted roughly $2.5 million from the SAFER grant line to other miscellaneous grants and contingency to balance the grant fund. The grant fund ordinance as amended passed unanimously.

Other formal actions recorded by the council included reappointments and appointments: the Virginia Peninsula Public Service Authority appointment (reappointing Jason Mitchell as Hampton’s appointee and Michael Bowery as alternate) and reappointments to the Hampton Senior Citizens Advisory Committee; those personnel motions passed unanimously.

Separately, the clerk opened an invitation to bid and announced a single bid from Dominion Energy Virginia to grant a 15‑foot easement across two city parcels on Hall Road to install underground primary lines and a pad‑mounted transformer feeding 187 Hall Road; staff will review bids and hold a public hearing on the easement at the May 28 meeting, the clerk said.

Votes at a glance (selected items from the meeting):

- Consent agenda (grants for living shoreline, Millpointe living shoreline, Pembroke Pond retrofit and minutes): Adopted unanimously. - Rezoning 25‑0101 (1263 West Queen Street): Approved, unanimous (see separate article). - Rezoning 25‑0010 and Use Permit 25‑0011 (North Armistead Avenue multifamily): Approved, unanimous (see separate article). - Use Permit 25‑0103 (611 Rotary Street, funeral/mortuary): Approved, unanimous (see separate article). - Ordinance 25‑0042 (real‑estate tax rate for FY2026): Adopted; roll call 6‑1 (Councilwoman Campbell opposed). - General fund budget ordinance 25‑0045 (amended): Adopted; roll call 6‑1 (Councilwoman Campbell opposed). - Capital fund ordinance 25‑0046: Adopted; roll call 6‑1 (Councilwoman Campbell opposed). - Budget ordinances 18–31 (enterprise and operating funds): Adopted unanimously on a single motion. - Grant fund ordinance 25‑0062 (amended to reflect SAFER grant reduction): Adopted unanimously. - Appointments (items 33–35): Adopted unanimously.

City staff indicated the tax rate and budget adjustments were informed by supplemental assessment revenue, a reimbursement arrangement with Hampton City Schools and the council’s stated priority to reach a 4% salary increase for city employees. The city manager said lowering the tax rate further by another penny would have required roughly $1.6 million in cuts that would have impacted the employee compensation goal or other high‑priority services.

A public hearing on a single bid for an easement to serve 187 Hall Road was scheduled for the May 28 meeting; Dominion Energy Virginia submitted the $1 bid described in the clerk’s readout.