Hampton previews FY27 budget and five-year CIP, holds votes to defer an item and enter closed session

James Balderson, the city's senior budget analyst, and City Manager Mary presented a preview of Hampton's 2027'2031 Capital Improvement Plan and the manager'recommended FY27 budget at a city council work session. Balderson outlined the CIP as a five-year plan that funds capital items above $50,000 and said the first year will be incorporated into the manager'recommended budget released April 15.

Balderson said the CIP balances new initiatives with critical maintenance to protect Hampton's AA bond rating and described four funding sources for projects: bonds, the general fund, dedicated sources tied to specific taxes or fees, and state and federal grants. He walked council through seven strategic priorities and highlighted major allocations including $5.47 million for Colosseum capital maintenance and a $23.3 million, five-year program for the Convention Center that covers ballroom and meeting-room renovations, HVAC and equipment replacement, and infrastructure repairs.

On education, Balderson identified Hampton City Schools maintenance and technology investments and a large renovation projection in 2028. Balderson also described new and ongoing resilience and stormwater projects'Bronze Grove Drive drainage improvements, the Charlton Slide Gate to mitigate tidal flooding, Colonial Acres dredging, Westover Street drainage upgrades, and the Market Creek flood risk management project (noting partnership work with the U.S. Army Corps of Engineers and potential home acquisition/elevation in special flood hazard areas).

The CIP preview included placemaking and recreation projects such as Darling Stadium renovations, a golf course overhaul, Phoebus streetscaping, and new pickleball courts at several sites. Balderson noted a therapeutic recreation center renovation received a congressional earmark of $850,000.

City Manager Mary placed the CIP in context of the operating budget, saying the proposed total FY27 budget is $708,640,649, a 4.3% increase from the prior year. She said Hampton will recommend holding the real-estate tax rate at $1.14 per $100 assessed value and described an expected $3 million increase in parimutuel revenue sharing that helps the city's revenue outlook.

Mary proposed targeted user-fee adjustments: a path toward a $1 per ERU/month stormwater fee over time (supported in public polling), a proposed combined wastewater user surcharge totaling $7.45 (the transcript did not specify the billing unit), an increase in the solid-waste user fee to $9.04 per week for recycling customers (up $0.26), and a 10% increase in before- and after-school program fees. She said those adjustments were chosen to sustain critical services and to maintain service levels residents indicated they wanted to keep.

On compensation, Mary recommended a 4% general wage increase for civilian employees to keep pace with regional pay trends and said the city would absorb a 13.2% rise in health insurance premiums so employees realize the wage adjustment. She also summarized recent and planned public-safety pay changes and stepped increases.

Council members asked questions about specific project scopes and costs (for example, whether the Phoebus library allocation included roof repairs) and about prior commitments such as the Riverside Psychiatric Emergency Department funding balance; staff said some FY27 entries represent the remaining balance of previously approved commitments rather than new net funding. Balderson and Mary directed follow-up on specific clarifications where needed.

Procedurally, council voted to defer the first presentation item (referred to as item 26 on the agenda) to the April 22 work session; the clerk recorded an "Aye" from each councilmember on the roll-call vote. Later the council moved and unanimously approved a motion to convene a closed session under Virginia Code Section 2.2-3711.A.1 to discuss appointments and the performance of council appointees, with the closed session scheduled to begin in the Lawson Conference Room at 4:35 p.m.

The council will hold public hearings on the FY27 budget and CIP on April 22 and May 6, with final budget adoption scheduled for May 13. Staff will provide the full manager'recommended budget when it is published online and at libraries on April 15.

Ending: Council thanked staff for the presentation and the meeting moved to procedural business and the scheduled closed session.