Newport News presents $1.267 billion FY2027 recommended budget; public hearing continued to April 16
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Summary
City officials presented a $1.267 billion recommended operating budget that proposes no real estate or personal property tax increases, increases school funding by $3 million and budgets market and step adjustments for public safety and city employees; council continued the public hearing to April 16.
Lisa, the city's budget presenter, summarized the city manager's FY2027 recommended operating budget and said the proposal would not include a real estate or personal property tax increase. "We were looking forward to not having a real estate tax increase nor other, rate, tax rate increases," she told council.
The presenter described a $1.267 billion total operating budget and said the general fund portion would be about $679 million. The proposal includes targeted compensation moves: market adjustments and a one-step increase for sworn public-safety employees and a 3.5% salary increase recommended for eligible non‑sworn staff. The presentation listed specific line items that drive increased costs, including additional debt service for school projects and higher employer health‑insurance contributions.
The budget package increases the city's contribution to Newport News Public Schools by $3 million, from $125 million to $128 million, and includes a multi‑fund view that the presenter said combines the General Fund, the School Fund and 18 other funds such as special revenue and trust accounts. For Waterworks, the presenter said a modest rate change is recommended after a decade without increases; she illustrated the impact as roughly 31 cents per day for an average household that uses 5,000 gallons a month.
To fit the priorities without raising property taxes, the presenter said the plan reduces some current‑year operating costs by $3.4 million, holds back $3.4 million in cash capital until funding can be confirmed, and relies on revenue stability in locally collected consumer taxes.
Why it matters: the recommendation sets the city's spending priorities and frames upcoming council deliberations, including line‑item changes and potential amendments. Council members will review the budget in work sessions through April and are scheduled to adopt the school operating budget and the city's total operating budget later in the spring, as required by state code.
What happens next: Council voted to continue the FY2027 public hearing to Thursday, April 16 at 7 p.m. in Room 113 of the Denbigh Community Center so that additional public comments and deliberations may be collected before adoption.
