Newport News manager proposes $1.14 billion FY2025 operating budget; council schedules public hearings

Lisa Cipriano, director of the Department of Budget and Evaluation, presented the city manager's recommended FY2025 operating budget on March 26, describing a $1,142,307,554 plan that keeps the real estate tax rate unchanged and prioritizes schools, public safety, and youth programs.

The proposal preserves the current real estate tax rate "at a dollar 18 per 100 of assessed value," Cipriano said, and recommends a general fund operating budget of $624,000,000, about 2.4% above the revised FY2024 figure. The administration described the overall operating budget as rising roughly 3.4% year-over-year and said the levy is expected to increase about 2.14% because of modest assessment growth.

Why it matters: The recommended budget funds a $3.5 million increase in the city's contribution to schools, a proposed 3% general wage adjustment for eligible employees effective July 1, and full pension contributions for retirement systems. Cipriano told council the plan includes a near-$1 million pilot to add 12 single-role paramedics (separate from firefighter/medic roles) to improve emergency medical response and funding to complete a midnight-basketball pilot and expand a summer youth employment program.

Cipriano noted a growing disabled-veterans property tax exemption that reduces taxable value, saying the program produced more than 300 new applicants and will cost the city "over $1,000,000" in exempted revenue in the current year, a factor that reduces net collections despite an increased levy. The presentation also flagged a roughly $1.1 million decline in machinery-and-tools tax revenue tied to the closure of Continental.

Council action: Councilmember Cleanna Malone moved to schedule public hearings on the budget for April 9 at 7 p.m. in the City Council chambers and April 11 at 7 p.m. at the Denbigh Community Center; the motion was seconded and passed by roll call vote, "motion carried, 6-0." Cipriano said the budget documents will be posted online and that additional work sessions can be held in April at council's request.

Other programmatic items: The budget recommends increased funding for homelessness prevention and housing-assistance programs, funds six community support agencies from 25 applicants, and expands a Parents as Teachers initiative in Human Services to add capacity for roughly 80 more families (bringing the program's team structure to three teams and supporting about 160 families currently enrolled). City staff also said they are coordinating with a local health provider and Riverside hospital on trauma-informed services for gun-violence victims.

Procedural and follow-up items: After the public-hearing scheduling vote, council approved a motion to enter a closed session under Virginia FOIA exceptions to discuss prospective business location and expansion, an investment subject to competitive bargaining, three litigation matters involving Adams Outdoor Advertising, and a confidential regional asset-inventory report. That motion also passed 6-0. Staff committed to provide council position papers and additional background information in the days ahead, including details from an ongoing compensation study and a regional housing study expected in about six to eight months.

What to watch next: The public hearings on April 9 and April 11 will be the formal opportunities for citizens to comment before council considers final action on the FY2025 operating budget.