Hampton manager previews $677.9 million fiscal 2026 budget and five-year capital plan; proposes tax cut, fee increases and wage boost

City Manager Mary Bunting presented Hampton's manager-recommended fiscal 2026 budget and a preview of the five-year Capital Improvement Plan (CIP) at a Hampton City Council work session, outlining a $677,930,817 proposed budget, a proposed real-estate tax-rate cut from $1.15 to $1.14 per $100 of assessed value, increases to stormwater and wastewater fees, and a 3.5% general wage increase for city employees.

The presentation also summarized the FY26'FY30 CIP, which the manager described as the city's five-year roadmap for major durable investments. Staff said the CIP proposal allocates roughly $460 million to capital projects organized around council priorities such as infrastructure (described by staff as central to 'excellence in government'), education, living with water/resilience, placemaking and public safety.

Why it matters: the manager framed the recommended budget as balancing fiscal restraint with priority investments. The plan includes a proposed fourth consecutive reduction in the city's real-estate tax rate, targeted personnel additions and pay adjustments, and fee increases the manager said are necessary to meet state and regional regulatory requirements and aging infrastructure needs.

CIP overview and priorities

Shu Mohammed, a management analyst in the city manager's office, opened the CIP presentation by describing the CIP as a five-year plan for projects over $50,000 with a useful life of at least five years. Mohammed said the FY26'FY30 CIP distributes funding across seven priorities, and that the first year of the five-year plan becomes the capital portion of the manager's recommended budget. "The 5 year capital…