The Dalton City Council has unanimously approved a general fund budget of $49.82 million for the fiscal year 2026, marking a 9% increase from the previous year. This decision, made on Monday, October 2, 2023, lays out the financial framework for the city’s day-to-day operations. The budget is projected to balance revenue and expenditures, with a fiscal year running from January 1 to December 31.
The budget incorporates $802,000 from the city’s fund balance, a reserve aimed at covering emergency expenses and supporting operations during the early months of the year, as property tax revenues are collected. Mayor Annalee Sams, who typically votes only in the event of a tie, expressed optimism regarding the city’s revenue estimates. She noted that the city conservatively projects flat sales tax revenue, which often sees an increase. “If sales tax revenues go up next year, we won’t have to rely on our fund balance as much,” she stated.
Budget Breakdown and Revenue Projections
The budget anticipates total revenues of $49.82 million, including $25.73 million from taxes. This figure comprises $9.1 million in property taxes and $16.63 million from other tax sources, predominantly the Local Option Sales Tax (LOST). City officials have indicated that they do not foresee the need to increase property tax rates to support the budget.
Additional revenue streams include $18.38 million from transfers, with $15.55 million coming from Dalton Utilities. The utility is required to transfer either $10 million or 5% of its total revenue to the city each year. The budget also includes a $2 million transfer from the Dalton-Whitfield Solid Waste Authority, a joint venture with Whitfield County.
Personnel costs dominate the budget, accounting for nearly 75% of total spending. The 2026 budget allocates $37.51 million for salaries and benefits, a significant increase from $34.21 million in 2025. This rise includes $2.1 million for wage increases related to a new step and grade pay scale for the fire department and the addition of six full-time positions. Health insurance costs have also surged by 35%, equating to $1.3 million, although measures such as increased deductibles and the introduction of a high-deductible account with health savings options have mitigated the impact.
Department Funding Allocations
The budget allocates substantial funding for both the police and fire departments, which together account for 53% of total expenditures. The Dalton Police Department will receive $13.16 million, representing a 4.7% increase from 2025. This funding will support full staffing for the department, which is authorized for 90 sworn officers. Despite this authorization, the department has struggled to maintain full staffing levels due to retirements and other departures. The budget also includes provisions for three additional school resource officers to serve Dalton Public Schools.
In addition, the fire department is set to receive $13.18 million, reflecting a 13.57% increase from the prior year. The Public Works Department will be allocated $9.41 million, a rise of approximately 5% from 2025. The budget also designates $703,000 from Special Purpose Local Option Sales Tax (SPLOST) funds for paving projects, highlighting a commitment to infrastructure improvements.
The Parks and Recreation Department will see an increased budget of $5.48 million, which is a 17% rise from the previous year, further emphasizing the city’s focus on community services and facilities.
The approved budget indicates a strategic approach to addressing both operational needs and community development, ensuring that Dalton continues to provide essential services while also planning for future growth.
