Newport News manager recommends $1.2 billion FY2026 operating budget; council schedules public hearings

The Newport News City Council heard a presentation on the city manager’s recommended Fiscal Year 2026 operating budget and the community survey that will inform the next strategic plan, with council voting to set public hearings on the budget in April.

City budget staff recommended a $1,200,000,000 operating budget for FY2026 that includes the general fund, school funds, user-fee funds and special revenue and trust funds. Lisa Cipriano, director of budget and evaluation, told council the recommended plan maintains the real estate tax rate at $1.18 per $100 of assessed value and does not propose increases to Waterworks, solid waste, stormwater or wastewater user fees.

The recommendation would fully fund the school superintendent’s operating request of $2,400,000, continue the public safety step plan begun in the current fiscal year and move non‑sworn general employees into a market-based compensation plan with a proposed 3% general salary adjustment for eligible employees. Cipriano said the budget was built conservatively given federal funding uncertainty and inflationary pressures.

Cipriano provided the revenue and expenditure context: an average assessed-value increase across eight property categories of 3.76% and an estimated $2,300,000 in new real estate tax revenue at the $1.18 rate. She also cautioned that increased participation in the disabled‑veterans tax relief program is reducing net new revenue; staff estimated roughly $9,100,000 in combined tax relief from exemptions and deferrals and said the net current…