OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

Hampton City Council Work Session – Budget Polling Results and Revenue Estimates, March 25, 2026

City CouncilWednesday, March 25, 2026
BodyHampton, Virginia
SessionCity Council
DateWednesday, March 25, 2026
StatusFILED
Video Record
0:00 / 1:08:15

Transcript — Verbatim
0:45

Good afternoon and welcome to the Hampton City Council work session.

0:50

Um this evening we oh it's afternoon uh clerk is not able to join us today, so uh filling in for hers uh deputy clerk uh Tammy Lee.

0:59

And so I'm gonna ask the deputy clerk to call a roll.

1:02

Councilman Bowman, present, Vice Mayor Brown, here councilwoman Campbell, present, councilwoman Fairby, present.

1:11

Councilwoman Harper, Councilwoman Muggler, Mayor Gray.

1:17

All right, here and Councilwoman Muggler and Councilwoman Harper will not be joining us today, both uh taking care of uh business uh that prevents them from being with us for either the meeting.

1:28

So with that, I'm going to ask the city manager to uh introduce the first item.

1:34

Thank you, Mr.

1:34

Mayor.

1:35

Um, today is all about budget as we're actively in the budget season.

1:39

As council members know, and hopefully the community knows, over the last few weeks we've been conducting our annual I value budget input, giving residents the opportunity to weigh in on their preferences as it relates to uh certain key expenditure items before the community as well as revenue options.

1:56

And today we are going to be presenting the results of that uh polling that we did.

2:02

I want to stress now, and I'll I'll say at the end of the presentation again that this is preference polling, it's not voting because ultimately it is the uh city council that makes the final decisions on the budget, and the manager makes a recommendation based upon this input, which I very much value, but also other considerations that we must take into account that maybe the public isn't aware of at the time that they're polling.

2:24

So this is information, it's very valuable information.

2:27

I want to thank all of the people who took time to either come in person or to fill out the online poll and assure you that this input is very much appreciated and will be used in shaping my final budget recommendations, but it does not always equal to an absolute um match because there are some things that I have to take into account.

2:48

Um, and we'll talk more about that in two weeks when I present the preview of the actual budget.

2:53

Um but for today, we're gonna be sharing first the I value results, and then after that, Mr.

2:58

Daughtery will share where we look to be with revenues.

3:01

So I'm gonna turn it over to Mary Fugier, who has been heading up our conventions and visitors bureau as well as our marketing and communications office to give you the results.

3:11

Good afternoon.

3:12

Good afternoon, Mayor Gray, Vice Mayor Brown, members of council, City Manager Bunting, and City Attorney Sid Noor.

3:19

I also, as Mary did, I would like to thank everyone who took time to express their opinion and the budget polling process.

3:27

Whether they attended in person or online, their input is greatly appreciated.

3:33

We conducted a multifaceted campaign with website presence, social media, e-news, and the distribution of approximately 60,000 postcards to Hampton residences.

3:46

We combined engagement, the combined engagement included more than 90,000 social media views, more than 3600 uh Thursday, I'm sorry, more than 3600 Thursday, March 5th Facebook live views with more than 125 live comments, 49 in-person participants, and more than 650 online responses.

4:51

Excuse me, 12 percent, age 20 to 34, and approximately 30 percent of each age range 35 to 49, 50 to 64, and 65 and over.

6:30

Both times the answer no change was the majority response received with a bump of 5% seen at the end of the polling presentation.

6:43

We additionally asked whether residents were open to increasing the real estate tax rate to cover the cost of unfunded state mandates in order to maintain current services, and 63% responded no.

8:44

Related to stormwater fees, 54% prefer to either continue with previous guidance of increasing the fees by a dollar, or to being more aggressive with fee increases to fund necessary projects.

9:15

When polled, 67% support at least a 10% increase in fees.

10:01

We saw 32% of those polls supported an 80% city to 20% employee division of cost, and a 52% majority supporting the historical division of cost or higher between city and employees.

10:23

Project funding requests that would impact the city operating budget were shared.

10:28

We asked participants to rank them in order of importance.

10:34

The top ranked operating budget priorities were homeless transition housing for the human services and community services board.

10:45

The upgrade of three permanent full-time positions, a full-time lieutenants to captains, and funding for five permanent full-time medic and firefighters for the fire and rescue division.

11:00

One permanent full-time paramedic pharmacy technician for the fire and rescue division.

11:07

Funding for the sheriff's transition and re-entry program known as STAR Pathway to Success Program, and Small Business Development Center funding for an outside agency.

11:43

The projects that ranked highest included improvements to 911 emergency communications platforms.

13:03

With the second hearing on May 6th, and the final council vote on May 13th.

13:12

Thank you very much for allowing me to present these results.

13:18

So, Mr.

13:19

Mayor, you know, just to give a concrete example.

13:32

Whereas the majority, if you looked at where did you get over 50%, it it really uh took the 50% or more of the population supported two and a half or higher.

13:44

This is an example of where I'm not going to be comfortable aligning perfectly with the public input, and that's because we're seeing cities release their budget, Newport News released their budget yesterday as an example with a three and a half percent increase for their employees.

14:01

So if we go too much you know lower than what our neighboring localities are, what do you think that does?

14:07

I know I'm asking a rhetorical question for council, but for the public, that maybe has our employees look to go to another locality.

14:13

So we're gonna need to that's something where I have to keep managerial discretion at least in the manager's recommended budget to be able to say, I understand the public said this, but the public may not have known just as I didn't until they released their budget exactly what every other city was going to do.

14:29

But as cities are starting to roll out their budgets, um, some have already released some will be doing over the next two weeks.

14:35

I'm hearing that it localities are likely to be in that three and a half percent plus or minus range, and so for us to go to two and a half percent would not be right for our employees.

14:46

So I I always want to explain to the public, you know, why we ask.

15:00

We really do care, and I think you'll see a lot of alignment, for instance, with those top operating and capital priorities, as well as some of the recommendations we've talked about with fee increases or tax rates, but there will be some areas such as this one where I will just feel compelled to deviate from the public input because I have more knowledge about what's going on than we knew at the time we were asking people to.

15:15

So when I do release the budget, we will do a reconciliation of that and show people so that they don't feel like their time or energy is wasted because as we said at the outset, we very much appreciate anyone who takes the time to learn more and to participate.

15:28

It helps to give us a stronger community-based budget.

15:31

But um, we we will have some changes we need to make along the way.

15:36

Okay.

15:37

Questions, comments from council members.

15:40

Okay.

15:41

All right, thank you, Mary.

15:43

Oh, sorry, Councilwoman Ferraby.

15:46

Oh, thank you.

Discussion Breakdown — Share of Meeting
Fiscal Sustainability█████████████████████████████████████████████75%
Budget Equity Analysis██████10%
Personnel Matters██3%
Public Engagement2%
Public Safety2%
Cannabis Regulation2%
Legislative Advocacy2%
Transportation Safety2%
Procedural2%
Summary of Proceedings

Hampton City Council Work Session – Budget Polling Results and Preliminary Revenue Estimates

The Hampton City Council held a work session on March 25, 2026, from 1:00 PM to 2:08 PM to review results of the annual I Value Budget resident polling and receive the preliminary revenue estimates for fiscal year 2027. Five council members were present (Mayor Gray, Vice Mayor Brown, Councilmembers Bowman, Campbell, and Ferebee); Councilmembers Harper and Mugler were excused. Staff emphasized that polling is advisory and final budget decisions rest with the Council.

Discussion Items

1. I Value Resident Polling Results

  • City Manager Mary Bunting introduced the presentation, stressing that the 738 responses (online and in-person) are preference polling, not a vote. Outreach included 60,000 mailed postcards, social media, e-newsletters, and public meetings.
  • Mary Fugere (Director, Hampton Convention & Visitor Bureau and Marketing & Outreach) presented detailed results:
    • Demographics: 61% female, 35% male; 78% not city employees; participation spread across age groups (20–34: 12%; 35–49, 50–64, 65+: ~30% each).
    • Real estate tax: Majority preferred no change; 63% opposed increasing the rate to cover unfunded state mandates. 71% supported a blighted property tax.
    • Utility/public works fees: 75% supported maintaining or increasing wastewater fees; 53% supported raising solid waste collection to $9.04/week; over 50% favored continuing weekly bulk trash; 57% supported continuing residential recycling.
    • Stormwater fees: 54% supported a $1 increase or more aggressive increases; 46% preferred no increase.
    • School-age program fees: 67% supported at least a 10% increase.
    • Employee compensation: 27% supported a 4% increase; a majority supported at least 2.5%. City Manager Bunting noted that neighboring cities (e.g., Newport News with a 3.5% increase) may require a higher recommendation to remain competitive.
    • Health insurance: 32% supported an 80/20 City-to-employee split; 52% supported maintaining the historical cost-sharing or higher City contribution.
    • Top operating budget priorities: homeless transition housing, Fire and Rescue staffing (three lieutenant-to-captain upgrades, five new medic/firefighters, one paramedic pharmacy technician), Sheriff’s STAR Pathway to Success program, and Small Business Development Center funding.
    • Top capital priorities: 911 emergency communications improvements, Phoebus Library enhancements, Phoebus streetscape and public amenities, and renovation of the North Phoebus Community Center.
    • 47% of respondents identified competitive wages for city staff as their top overall budget priority.
  • Councilwoman Ferebee thanked staff and noted that the results show strong community support for competitive employee wages.

2. Budget Briefing – Preliminary Revenue Estimates for FY2027

  • City Manager Bunting noted the absence of a state budget (General Assembly adjourned without agreement, special session set for April 23) and uncertainty regarding potential new revenues from adult-use cannabis retail and skill games, which were not included.
  • Chief Financial Officer Karl Daughtrey presented the revenue forecast, built on the current real estate tax rate of $1.14 per $100 assessed value:
    • Total recurring revenues: $472.6 million, up $15.9 million (3.5%) over FY2026.
    • One-time revenues: $9.8 million, down $4.47 million (primarily from fund balance for capital improvements, technology replacement, and performance bonuses).
    • Of the $15.9 million recurring increase, $11.2 million is available for general appropriation; $4.7 million is committed: $2.8 million for school funding (formula-based), $609,000 for VDOT urban maintenance, $525,000 in business license tax (from HRBT construction) designated for capital improvements, plus convention center and special assessment commitments.
    • General property taxes: $262.4 million (+$10 million, 4.4%). Real estate assessments +4% (generating $7.2 million); each penny on the rate yields ~$1.7 million. Personal property taxes: $52 million (+$1 million), flat assessment trend.
    • Other local taxes: $108.6 million (+$2.5 million, 2%). Meals tax +$400,000 (1.3%); sales tax adjusted downward by $1.5 million; business license tax +$600,000 (mostly HRBT construction, treated as one-time); lodging tax -$300,000 (4.3%); communications sales tax flat at $5.8 million (state-set 5% rate, does not apply to streaming).
    • Pari-mutuel tax: +$3.3 million to $5.9 million due to state formula change allowing Hampton to retain full local share starting July 1, 2026.
    • Cigarette tax: -$287,000 (9.4%) to $2.7 million; electronic cigarettes and vape products are not taxable by localities under state law.
    • License, permit, and other fees: $1.6 million (-$283,000, 15%), reflecting lower construction activity.
    • Fines and forfeitures: $5.4 million (flat); includes red-light photo enforcement ($1.2 million budget) and school speed zone cameras ($3.1 million budget). School speed zone revenues are used only for direct program costs (camera operation and qualifying safety improvements); red-light camera revenues have supported broader public safety purposes.
    • Revenue from use of money and property: $6.5 million (+$182,000, 3%), with interest income projected conservatively.
    • Charges for services: $12 million (+$1.1 million, 10%), driven by EMS transport fees, landfill host fees, and a 10% increase in school-age program fees.
    • Miscellaneous revenues: $6.3 million (+$75,000).
    • State and federal revenues: adjusted only for public assistance and VDOT urban maintenance; others (HB 599, constitutional officers) await state budget.
    • Use of fund balance: $9.9 million, $4.4 million less than FY2026.
  • Mr. Daughtrey and Ms. Bunting clarified that each penny reduction in the real estate tax rate would reduce revenues by ~$1.7 million and also affect school funding under the city’s formula.
  • Vice Mayor Brown inquired about skill game tax revenue restrictions (none) and potential economic impacts of ongoing conflicts (assumed short-term, no long-term budget effect).

Key Outcomes

  • No votes were taken; the work session was informational.
  • The City Manager stated her recommended budget may deviate from public polling in some areas (e.g., employee compensation) due to regional competition and additional fiscal factors. A reconciliation will be provided with the budget release.
  • Next steps announced:
    • April 8, 2026: City Council work session preview of the expenditure side of the budget.
    • April 15, 2026: Formal release of the FY2027 recommended budget document (online and at libraries).
    • April 22, 2026: First public hearing on the budget.
    • Further hearings on May 6 and final council vote on May 13, 2026.
  • The meeting adjourned at 2:08 PM. No regional issues, new business, or closed session items were discussed.

Meeting Transcript

Good afternoon and welcome to the Hampton City Council work session. Um this evening we oh it's afternoon uh clerk is not able to join us today, so uh filling in for hers uh deputy clerk uh Tammy Lee. And so I'm gonna ask the deputy clerk to call a roll. Councilman Bowman, present, Vice Mayor Brown, here councilwoman Campbell, present, councilwoman Fairby, present. Councilwoman Harper, Councilwoman Muggler, Mayor Gray. All right, here and Councilwoman Muggler and Councilwoman Harper will not be joining us today, both uh taking care of uh business uh that prevents them from being with us for either the meeting. So with that, I'm going to ask the city manager to uh introduce the first item. Thank you, Mr. Mayor. Um, today is all about budget as we're actively in the budget season. As council members know, and hopefully the community knows, over the last few weeks we've been conducting our annual I value budget input, giving residents the opportunity to weigh in on their preferences as it relates to uh certain key expenditure items before the community as well as revenue options. And today we are going to be presenting the results of that uh polling that we did. I want to stress now, and I'll I'll say at the end of the presentation again that this is preference polling, it's not voting because ultimately it is the uh city council that makes the final decisions on the budget, and the manager makes a recommendation based upon this input, which I very much value, but also other considerations that we must take into account that maybe the public isn't aware of at the time that they're polling. So this is information, it's very valuable information. I want to thank all of the people who took time to either come in person or to fill out the online poll and assure you that this input is very much appreciated and will be used in shaping my final budget recommendations, but it does not always equal to an absolute um match because there are some things that I have to take into account. Um, and we'll talk more about that in two weeks when I present the preview of the actual budget. Um but for today, we're gonna be sharing first the I value results, and then after that, Mr. Daughtery will share where we look to be with revenues. So I'm gonna turn it over to Mary Fugier, who has been heading up our conventions and visitors bureau as well as our marketing and communications office to give you the results. Good afternoon. Good afternoon, Mayor Gray, Vice Mayor Brown, members of council, City Manager Bunting, and City Attorney Sid Noor. I also, as Mary did, I would like to thank everyone who took time to express their opinion and the budget polling process. Whether they attended in person or online, their input is greatly appreciated. We conducted a multifaceted campaign with website presence, social media, e-news, and the distribution of approximately 60,000 postcards to Hampton residences. We combined engagement, the combined engagement included more than 90,000 social media views, more than 3600 uh Thursday, I'm sorry, more than 3600 Thursday, March 5th Facebook live views with more than 125 live comments, 49 in-person participants, and more than 650 online responses. Excuse me, 12 percent, age 20 to 34, and approximately 30 percent of each age range 35 to 49, 50 to 64, and 65 and over. Both times the answer no change was the majority response received with a bump of 5% seen at the end of the polling presentation. We additionally asked whether residents were open to increasing the real estate tax rate to cover the cost of unfunded state mandates in order to maintain current services, and 63% responded no. Related to stormwater fees, 54% prefer to either continue with previous guidance of increasing the fees by a dollar, or to being more aggressive with fee increases to fund necessary projects. When polled, 67% support at least a 10% increase in fees. We saw 32% of those polls supported an 80% city to 20% employee division of cost, and a 52% majority supporting the historical division of cost or higher between city and employees. Project funding requests that would impact the city operating budget were shared. We asked participants to rank them in order of importance. The top ranked operating budget priorities were homeless transition housing for the human services and community services board. The upgrade of three permanent full-time positions, a full-time lieutenants to captains, and funding for five permanent full-time medic and firefighters for the fire and rescue division. One permanent full-time paramedic pharmacy technician for the fire and rescue division. Funding for the sheriff's transition and re-entry program known as STAR Pathway to Success Program, and Small Business Development Center funding for an outside agency. The projects that ranked highest included improvements to 911 emergency communications platforms. With the second hearing on May 6th, and the final council vote on May 13th. Thank you very much for allowing me to present these results. So, Mr. Mayor, you know, just to give a concrete example. Whereas the majority, if you looked at where did you get over 50%, it it really uh took the 50% or more of the population supported two and a half or higher. This is an example of where I'm not going to be comfortable aligning perfectly with the public input, and that's because we're seeing cities release their budget, Newport News released their budget yesterday as an example with a three and a half percent increase for their employees. So if we go too much you know lower than what our neighboring localities are, what do you think that does? I know I'm asking a rhetorical question for council, but for the public, that maybe has our employees look to go to another locality. So we're gonna need to that's something where I have to keep managerial discretion at least in the manager's recommended budget to be able to say, I understand the public said this, but the public may not have known just as I didn't until they released their budget exactly what every other city was going to do. But as cities are starting to roll out their budgets, um, some have already released some will be doing over the next two weeks. I'm hearing that it localities are likely to be in that three and a half percent plus or minus range, and so for us to go to two and a half percent would not be right for our employees. So I I always want to explain to the public, you know, why we ask.

SUMMARIZED BY OPENPUBLICA AI
TRANSCRIPT VIA PUBLIC VIDEO
openpublica.com