Hampton City Council workshop warns FY2026 revenue growth will be limited by new state law

City Manager Ron Dunt told the Hampton City Council at a Jan. 6 budget workshop that a recently proposed state measure will constrain the city's revenue growth for FY2026 and urged council members to contact local legislators about the effect on small, rural communities.

Dunt presented a high-level view of FY2026 budget considerations and said that State Legislature House File 718 places Hampton in Tier 1, which reduces the allowable combined general fund levy growth from 3% to 2%. He described that property tax reform remains a top priority in the 2025 legislative session and could further restrict cities' property tax authority; Dunt encouraged the council to explain to legislators how proposed changes affect small, rural municipalities.

Public Works Director Doug Tarr and Police Chief Mark Morrison updated the council on nuisance properties, reporting that they have several court orders and expect to complete some court-ordered cleanups next week. Council members asked questions about properties they have observed around town; the minutes record the update and planned next steps but do not list specific property addresses.

Dunt also presented a proposed lease renewal for a water tower with Woolstock Mutual Telephone Corp. He said the only change to the agreement is an increase in monthly rent from $950 to $1,000; the council reached consensus to place the item on the council meeting agenda for Thursday, Jan. 9.

The council reviewed a draft Capital Improvements Plan and discussed budget planning for FY2026. The workshop ended at 6:42 p.m., and the minutes state that further budget discussion will continue at subsequent workshops.