NEWPORT NEWS, Va. (WAVY) — Newport News’ proposed $1.14 billion fiscal year 2025 budget keeps the city’s real estate tax at the $1.18 rate it was lowered to last year, and includes no fee increases for residents.
Meanwhile the budget includes an additional $3.5 million ($123 million total) to fully fund Newport News Public Schools’ budget request, a 3% general wage increase for city employees and funding for various youth programs.
Budget Director Lisa J. Cipriano briefed council on the budget proposed by City Manager Alan Archer on Tuesday.
The city lowered the real estate tax rate to $1.18 (per $100 of assessed value) last year due the big increases in real estate assessments (about 9.5%) citywide. This year, they’re only seeing about a 2% increase in assessments across all property types.
Cipriano says the city will get about $2.5 million in tax revenue this year by keeping the rate at $1.18, but the increases in tax exemptions for disabled veterans will lead to lower real estate tax revenue in 2025 compared to 2024.
The city saw 300-plus new disabled veteran applicants (and a corresponding $1 million more in tax exemptions) in the past year, and Cipriano says the city expects the increase in applicants to continue.
Some bigger new expenses in FY2025 include funding for 12 new paramedic positions and nearly $1 million to help youth through programs like a new Summer Youth Employment Program (Hampton has one) and the recently-started (in Newport News) Midnight Basketball initiative.
Those who’d like to share their thoughts on the budget with council can go to public hearings on on April 9 at City Hall and April 11 at the Denbigh Community Center.
You can read the full proposed FY2025 budget here, and watch Tuesday’s budget briefing here.