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Hampton council adopts FY2026 budget, sets real-estate tax rate in 6–1 vote
Summary
The Hampton City Council adopted the FY2026 budget and tax-and-fee ordinances on a 6–1 roll call. Councilwoman Campbell cast the lone 'nay' on the tax rate and several budget items; the adopted general fund increased from $677,930,817 to $679,184,741 to cover a 4% employee pay adjustment and other amendments.
The Hampton City Council voted to adopt the FY2026 real-estate tax ordinance and associated budget amendments on May 14, approving changes that raise the amended general fund total from $677,930,817 to $679,184,741. Councilwoman Thurman moved adoption of the tax ordinance; the roll call was 6–1 in favor, with Councilwoman Campbell voting no.
City Manager Bunting told the council the state veto of a planned SAFER grant required staff to move some youth-violence program costs into the general fund, but supplemental assessment revenue and a reimbursement from Hampton City Schools allowed the recommended 4% employee salary increase to be funded. "To lower the rate another penny, it would be about $1,600,000," Bunting said, explaining why staff did not propose an additional cut to the tax rate. The general fund amendments include a $749,924 increase in current real property tax revenue and a $504,000 transfer from the school operating fund, with targeted increases including $486,000 for youth and young adult opportunities and $767,924 for retirement and employee benefits to fund compensation changes.
The council approved the general fund ordinance (item 16) by roll call; Councilwoman Campbell cast the lone dissent on that motion as well. The council also adopted a series of budget appropriation ordinances for capital and special funds and the amended grant fund (item 32), which shifted $2.5 million out of the SAFER grant and into contingency and other miscellaneous grant lines to reflect the governor's line-item veto.
Looking ahead, the manager said the council will publish the detailed budget documents and that some items were taken in block motion at tonight's meeting. Mayor Gray thanked staff for the budget process and the partnership with the school board in reaching the final package.
