The Dalton City Council unanimously approved a general fund budget of $49.82 million for the fiscal year 2026 during a meeting on Monday. This budget, which funds the majority of the city’s daily operations, reflects a 9% increase from the budgeted amount for 2025. Mayor Annalee Sams, who typically votes only in the case of a tie, did not participate in the vote, which passed with a 4-0 margin.
The budget anticipates revenues of $49.82 million, which includes $802,000 drawn from the city’s fund balance. This reserve fund is utilized for emergency expenditures and to manage cash flow during the early months of the fiscal year, as property tax revenues begin to arrive. By the end of 2025, officials project the fund balance will stand at $27,584,473. Mayor Sams noted that the city may not need to withdraw as much from the fund balance as proposed, citing a cautious approach to revenue estimates.
“We are always conservative with our revenue estimates,” Sams explained. “We always project flat sales tax revenue. But it typically increases. And if it does next year, we won’t have to rely on our fund balance as much.”
Tax revenues are projected at $25.73 million, including $9.1 million from property taxes and $16.63 million from other taxes, primarily the Local Option Sales Tax (LOST). Officials do not expect to raise property tax rates in the coming year to support the budget.
The budget includes $18.38 million in “transfers in,” with a significant $15.55 million coming from Dalton Utilities. The utility is required to transfer either $10 million or 5% of its total revenue each year to the city. The budget also accounts for a $2 million transfer from the Dalton-Whitfield Solid Waste Authority, which the city co-owns with Whitfield County.
Personnel costs are projected to account for nearly three-quarters of the budget. The total allocated for salaries and benefits is $37.51 million, an increase from $34.21 million in 2025. This increase of $3.5 million includes $2.1 million for higher wages related to the implementation of a new step and grade pay scale for the fire department, along with the addition of six full-time positions.
Moreover, health insurance costs rose by 35%, equating to approximately $1.3 million. Sams indicated that while initial projections were steep, adjustments such as increased deductibles and the introduction of a high-deductible health plan with a savings account option helped mitigate even larger increases.
Both the police and fire departments together represent 53% of the overall budget. These departments, alongside public works, account for 72% of the total expenditures for 2026. The Dalton Police Department is set to receive $13.16 million, marking a 4.7% increase from the previous year. This funding aims to ensure full staffing at 90 sworn officers, a figure that has not been reached consistently due to retirements and other departures. The budget also provides for three additional school resource officers to serve Dalton Public Schools, bringing the total number of sworn officers to 93.
The Dalton Fire Department is allocated $13.18 million, reflecting a 13.57% increase from 2025. Additionally, the Public Works Department will receive $9.41 million, up approximately 5% from the prior year. The budget includes $703,000 in funds from the Special Purpose Local Option Sales Tax (SPLOST) designated for paving projects. The Parks and Recreation Department will benefit from a $5.48 million allocation, representing a 17% increase from 2025.
With this budget, the Dalton City Council aims to enhance services while managing the city’s financial health prudently.
