Hampton city council members met with city staff during a retreat this week to share their preliminary wishlists for the 2026 budget.
Council’s input will be considered alongside ideas from residents in Hampton’s upcoming “I Value” budget meetings. City Manager Mary Bunting said the mix of priorities will help shape her budget recommendation in April.
Bunting said this year’s budget is shaping up to be one of the tightest she’s had in years.
“I am confident we won't have to make major cuts, and that's the good news,” she said. “How much of a raise I can give and whether I can do any new priorities that remains to be seen.”
In preliminary polling, council members supported employee raises and covering the tab for rising insurance premiums, amounting to nearly $6 million; ranked new program and project funding priorities; and supported lowering the property tax rate in 2026.
“We’re in a tight employment market where people out there have a lot of other choices,” Mayor Jimmy Gray said. “We’re going to have to pay them a decent rate and put them in an environment where they have some opportunities for growth and professional development as well.”
Hampton’s 2026 financial outlook is under pressure from inflated costs, flat personal property tax revenue and a slew of maintenance costs for aging infrastructure. The city is also considering its options for programs that rely on federal grants, some of which Bunting said remain frozen.
The budget is cushioned by real estate values continuing to rise, if at a slower pace than in 2023 and 2024. Hampton is projecting more than $8.5 million in property tax revenue this year. Property taxes make up about 47% of local revenue.
The growth means that residents could see their property tax rate decrease. The tax rate stabilization policy employs a formula to recommend increases or decreases based on market conditions.
Based on the city staff’s calculations, the policy would support a decrease from $1.15 per $100 of assessed value to $1.14. Council can cut the rate further, which it has done yearly since 2023.
The median property tax rate in Hampton Roads’ seven core cities is $1.15 per $100 of assessed value.
While the tax rate could dip, wastewater fees are projected to increase annually through 2030. The average resident's monthly bill could increase more than $18 in 2026, with bills going up about $1.50 through 2030.
Public Works Director Jason Mitchell said the rising rates and surcharge fees are needed to cover $230 million in improvements to Hampton’s aging sewer system, most of which is more than 65 years old. With $106 million due by 2030 for high-priority repairs, Bunting said there’s little time to smooth the increase over more years.
“We have an old system,” said Gray. “It’s reached the useful lifespan of that particular type of infrastructure. It’s time to pay the piper now, so we’ve got to do it to keep the system flowing.”
Residents could also see $1 per month increases to stormwater fees each year through at least 2031. Mitchell said that will cover increased costs of operations and maintenance and projects to reduce neighborhood flooding and harden the city’s infrastructure to heavy rainfall.
Bunting said the city will now seek residents' input on the proposals and projects they’d like to see prioritized in the budget. Meetings are scheduled for March 18 at the Virginia Aquaplex at 6:30 p.m. and March 22 at the American Theater at 9 a.m. Online polling will go live on Hampton's website from the 18th through the 25th.
“I always encourage the in-person sessions if you’re able,” Bunting said. “You get to ask questions, participate and give-and-take with your fellow Hamptonians and see what they’re thinking.”
City Council will review resident input on March 26. Bunting will preview the recommended budget on April 9 and publish it on April 15. Public hearings on the budget are scheduled for April 23 and May 7. Council could approve the final budget on May 14.
