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Newport News Now is a daily e-newsletter that launched in March 2016. Articles that ran in our newsletter between March 2016 and March 2018 are available on these pages. Newsletters produced beginning in April 2018 can be viewed on our new daily newsletter page.

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Mar 22

City Manager Releases FY17 Recommended Budget

Posted on March 22, 2016 at 1:57 PM by Communications Department

budget-2017 No Real Estate Tax Increase

The recommended operating budget for the fiscal year beginning July 1, 2016 and ending June 30, 2017 was presented to City Council this afternoon. The total FY 2017 budget recommended by the City Manager is $858,137,322, which is 3.6% higher than the adopted current fiscal year budget.

Real estate assessed values are expected to increase for the second consecutive year with an overall projected increase for all properties of 1.75%. This does not mean that all properties will see an increase or similar assessment adjustment; in fact, the change is generated primarily by industrial and commercial property values. Personal Property Tax revenue, Sales and Meal Tax revenues, and Business, Professional, Occupational License Tax (BPOL) revenues are anticipated to increase due to continued consistent growth, and anticipation that real estate and business opportunities within the City will continue to expand in the coming fiscal year.

There are no real estate tax rate changes recommended for FY 2017. The rate will remain level with the current fiscal year at $1.22 per one hundred dollars of assessed value. For the User Fund fees, there is some higher expenditure for the upcoming fiscal year, primarily driven by state or federal mandates and by the same demands as the General Fund (pension, healthcare, and salary increases). This makes user fee increases unavoidable for the Water and sewer charges, as well as for Solid Waste and Stormwater fees. In general, for an average household of four with a 2016 real assessment of approximately $169,100, the average annual increase is $23.04. The proposed budget maintains the services that citizens expect of the City of Newport News and no services will be eliminated. This includes funding for the City’s contribution of $118,300,000 to the School Division, which provides level funding with the current fiscal year, as well as an additional $1 million reserved for the Division

Other budget recommendations include:
  • An average merit increase of 3% based on performance for eligible City employees effective July 1, 2016
  • General Fund support for the City’s Debt Service payments for outstanding General Obligation Debt. This amount is $394,000 or 1.05%, less than the current year amount.
  • There is recommended funding for thirty-five (35) Community Support agencies that are supported by the City. Regional Organizations in which the City is a member or participant will receive level funding. Hampton Roads Transit’s (HRT) funding will increase for route improvements.
  • Youth and Gang Violence Reduction initiative has been funded at $1.5 million, an increase of $400,000, to enhance the Summer Training & Experience (STEP) program and to continue the same level of service for community–based violence prevention from Human Services’ TOP Program.
“This recommended budget includes the necessary rate and fee increases and additional reductions to achieve the level of City operations desired by our citizens,” says City Manager Bourey. “It funds our pension and health care obligations, maintains funding to schools and infrastructure, funds initiatives that support our Strategic Priorities as well as invests in our valued employees.”

» Read the entire City Manager Recommended Budget FY 2017.