Hampton approved a more than $677 million budget on Wednesday, growing nearly 5.4% from 2025.
Here are five things to know.
A cent off the property tax rate
The real estate tax rate is going down 1 cent to $1.14 per $100 of assessed value. The city has decreased the rate by 10 cents since 2022, which is now just under the median property tax rate of $1.15 per $100 of assessed value in Hampton Roads’ seven core cities.
The decrease follows Hampton’s stabilization policy, which recommends rate changes based on market forces. Adopted in 2006, the policy generally recommends rate drops when property values are growing.
Overall, the assessed value of properties in Hampton increased by more than $1 billion this year. Residential property values made up the lion’s share of that, rising by 7.7% or more than $880 million. That means many property owners will pay more in tax despite the decreased rate.
Council can cut the rate further than the policy recommends, which it did from 2023 through 2025. Councilmember Carolyn Campbell wanted to see that again and was the only vote against the budget.
“I know there's things we want to do, I know there's projects we want to do; we just have to balance that out with what the people can stomach,” she said after an April council meeting.
At a cost of $1.6 million, City Manager Mary Bunting said another cent reduction would have required holding employee raises to 3.5% and cutting projects ranked highly by council and residents in recent polling.
Late budget amendments
City employees will receive 4% raises thanks to last-minute amendments.
Bunting thought she would have to cut funds to a few programs, including Riverside Health’s violence intervention program, after Gov. Glenn Youngkin vetoed millions for violence reduction grants. The grant would have given Hampton $2.5 million to continue and expand its violence interruption and prevention initiatives.
Youngkin said the effectiveness of the programs needs to be better evaluated in the next biennial budget.
Bunting was also considering axing plans to hire a new manager for Hampton Public Library’s main branch and reducing cemetery maintenance grants.
However, the city identified $750,000 in additional revenue following updates to its real estate assessment data. Two large logistics centers, run by NorthPoint Development and Manekin LLC, received certificates of occupancy and were added to Hampton’s property tax projections. Bunting said supplements are typically minor and offset by assessment appeals.
Hampton City Schools also received more money from the state than anticipated and agreed to increase its reimbursements to the city by $500,000. The schools return funding to pay for services and personnel that the city provides the division, such as school resource officers, groundskeeping and debt service for school-related projects.
Bunting said the combined $1.2 million will allow the city to continue grant-funded violence reduction programs and increase staff raises. Prior to the adjustments, staff were to receive a 3.5% raise.
Mayor Jimmy Gray said it's a step forward toward his goal of bringing Hampton’s pay from the middle to the top of the pack among Hampton Roads cities.
“There’s always competition out here for the best employees, and we think to have the best employees, we’ve got to provide a decent salary and benefits.”
Utility rates on the rise
Residents can expect to pay $18 more per month for wastewater services. Bills will also increase about $1.50 per year after that through 2030.
The rising rates and surcharge fees will cover operating costs and $230 million in improvements to Hampton’s aging sewer system, most of which is more than 65 years old. By 2040, a third of the city’s system will be 100 years old.
$106 million is needed for high-priority repairs by 2030. The city also faces fines from the Virginia Department of Environmental Quality if it does not upgrade to meet regulations.
Stormwater fees will also go up $1 per month each year through at least 2031. The funds will cover increased operations and maintenance costs as well as projects to reduce neighborhood flooding and harden the city’s infrastructure to heavy rainfall.
Additional school funding
Hampton is giving $4 million more than in 2025 for a total of $99 million.
The amount is based on a division funding formula that increases the schools’ allocation based on a percentage of residential property and utility taxes.
Like city employees, school staff will receive 4% raises and other targeted adjustments to make the jobs more competitive. Also, like the city, school staff will not pay more for rising healthcare costs.
School operations total more than $300 million, including state and federal funding and make up 45% of the city budget.
Capital improvements
Hampton plans to spend $93 million on capital projects in 2026, amounting to $460 million over five years.
Some of the largest items include $7.5 million for schools, including roof replacements, new HVAC units and boilers, updated fire alarm systems and new electronic devices for instruction.
$9.5 million is for street resurfacing and reconstruction and the repair or replacement of traffic signal equipment; $3 million will replace 3.2 miles of Mercury Boulevard from North King Street to Fort Monroe; $4.4 million replaces cranes used at the steam plant at NASA Langley Research Center; $18 million will go toward water drainage and resiliency projects around the city; and $7.2 million is earmarked to improve downtown infrastructure, sidewalks and parks.
