Hampton City Council Work Session – April 8, 2026

The Hampton City Council held a work session on April 8, 2026, beginning at 3:01 p.m. and adjourning at 5:42 p.m. All seven council members were present. The main agenda items included a briefing on the Resilient Hampton Fox Hill, Grandview, and Harris Creek Water Plan (which was deferred), detailed presentations on the FY 2027-2031 Capital Improvement Plan (CIP) and the FY 2027 Manager's Recommended Budget, and a closed session for appointments and performance discussions.

Consent Calendar

• Item 26-0135 – Briefing on Resilient Hampton Fox Hill, Grandview, and Harris Creek Water Plan: Deferred to the City Council Work Session on April 22, 2026, by a unanimous vote (7-0).

Discussion Items

• FY 2027-2031 Capital Improvement Plan (CIP) Presentation – Senior Budget and Management Analyst James Balderston presented the proposed five-year CIP, which funds capital projects over $50,000 with a useful life of at least five years. Key points included:

  • Goals: support the FY 2027 budget, maintain the city’s AA bond rating, and prioritize infrastructure and maintenance.
  • Funding sources: bonds, general fund, dedicated sources, and state/federal grants.
  • Financial challenges: limited resources, unfunded mandates, inflation, labor shortages, and increasing maintenance costs.
  • Allocation by council strategic priorities: Excellence in Government (47%), Educated Citizenry (15.6%), Living with Water ($48.8 million), Placemaking (10.8%), and others.
  • Major projects: Boo Williams Sportsplex maintenance, Downtown and Coliseum master plan updates, Coliseum and Convention Center maintenance, Hampton City Schools maintenance, Phoebus and Willow Oaks library improvements, street and traffic maintenance, sewer rehabilitation, homeless housing (tiny home community), drainage and flood mitigation, Darling Stadium improvements, golf course renovations, Phoebus streetscape, pickleball courts, North Phoebus Community Center renovation, and Therapeutic Recreation Center renovation (with $850,000 in congressional funding secured by Rep. Bobby Scott).
  • Balderston noted that Excellence in Government’s large share is driven by core infrastructure and facility maintenance.
  • Councilwoman Carolyn Campbell asked about the difference between master plan updates and implementation funding; City Manager Mary Bunting explained that Phoebus and Buckroe planning had already been addressed.
  • Councilwoman Campbell also asked whether the Phoebus Library project included roof repairs; it does not—roof repairs would fall under general public facilities maintenance.
  • The CIP timeline: public hearings on April 22 and May 6, final adoption on May 13, 2026.

• FY 2027 Manager’s Recommended Budget Presentation – City Manager Mary Bunting presented an overview of the proposed $708.6 million budget, a 4.3% increase over FY 2026. The full budget will be released on April 15, 2026. Key highlights:

  • Economic challenges: cooling housing market, inflation, federal workforce uncertainty, rising utility/fuel costs, delayed state budget, and increased costs from state mandates.
  • Real estate tax rate: maintained at $1.14 per $100 of assessed value, continuing a trend of reductions (down 10 cents over four years, representing over $16 million in tax relief). Each penny equals about $1.6 million in revenue.
  • Disabled veteran tax exemption: Hampton expects $13.7 million in exempted revenue in FY 2027 due to a large military/veteran population, a disproportionate impact compared to other localities (1% vs. 7-8% of residential tax base).
  • Fee adjustments: stormwater fee increase of $1 per ERU per month ($12/year for residents), wastewater fee increase of $0.21 per hundred cubic feet (to $7.45), solid waste fee increase of $0.26 per week (to $9.04 for recyclers), and a 10% increase in before- and after-school program fees. Bunting noted public support via the I Value engagement process for these increases.
  • Employee compensation: 4% wage increase for civilian employees, city absorption of the full 13.2% increase in healthcare premiums, and recent 7.5%+ base pay increases for sworn officers. Bunting stated that the 4% exceeds the region’s average of 3.5% and is necessary for retention.
  • Strategic investments by priority:
    • Educated Citizenry: $2.8 million increase to Hampton City Schools (total city contribution ~$102 million, $43 million above state required match), library improvements.
    • Safe and Clean Community: CAD/911 system upgrade, red light and school zone cameras, paramedic pharmacy tech, Sheriff’s STAR reentry program, fire station design for Station 2 and Station 6.
    • Family Resilience and Economic Empowerment: $2.5 million additional for tiny home community (with $2 million already in housing funds), workforce development, regional partnership with Newport News on homelessness.
    • Living with Water: continued drainage and flood mitigation projects (e.g., Aberdeen Gardens, Farmington Ditch, Gloucester Street).
    • Excellence in Government: FOIA software, paralegal, community development software upgrades, chairlift at former circuit court building.
    • Placemaking: Bay Days-style waterfront festival, guided history tours, Darling Stadium restrooms/concessions, Briarfield Park lighting, Phoebus streetscape, pickleball courts, Therapeutic Recreation Center modernization.
    • Economic Growth: master plan updates for Coliseum Central and Downtown, implementation funding, zoning code modernization, permitting software.
  • Vice Mayor Steve Brown asked about the financial impact of real estate tax reductions; Bunting explained the 10-cent reduction provided over $16 million in relief. He also asked about the Riverside Psychiatric Emergency Department funding; Bunting confirmed it is the remaining balance of a prior commitment, not new funding.
  • Councilwoman Martha Mugler complimented the presentation and asked about non-highlighted projects; Balderston explained they are continuing items from previous CIPs.
  • Mayor Gray commended staff for efficiency and commended the balanced budget.

• Closed Session – At 4:16 p.m., the council unanimously approved a closed session (motion by Vice Mayor Brown, second by Councilmember Harper) pursuant to Virginia Code §2.2-3711.A(.1) to discuss appointments and performance of council appointees. The closed session lasted until 5:42 p.m.

• Appointments to Virginia Municipal League 2026 Policy Committees – Item 26-0130 was considered during closed session and subsequently approved by the council.

Key Outcomes

• Item 26-0135 (Water Plan Briefing) deferred to April 22, 2026, by unanimous vote.
• No votes taken on the CIP or FY 2027 Budget; these were presented for discussion. Public hearings scheduled for April 22 and May 6, with final adoption on May 13, 2026.
• Closed Session approved unanimously (7-0) to discuss appointments and performance.
• Resolution Certifying Closed Session (Item 26-0109) approved unanimously (7-0) at 5:42 p.m., followed by adjournment.
• Appointments to VML Policy Committees were approved during the closed session process.