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 represents a 9% increase from the previous year’s allocation. The general fund is critical, as it finances the city’s essential day-to-day operations. While the fiscal year runs from January 1 to December 31, the final figures for 2025 have yet to be finalized.
Mayor Annalee Sams, who typically votes only in the event of a tie, did not cast a vote this time. The budget anticipates revenue of $49.82 million, which includes a projected $802,000 from the city’s fund balance. This fund balance serves as a reserve for emergency expenditures and helps cover costs in December and January before property tax revenues are collected.
The expected fund balance at the end of 2025 is approximately $27,584,473. Mayor Sams noted that the city may not need to withdraw as much from the fund balance as projected. “We are always conservative with our revenue estimates,” she stated. “We always project flat sales tax revenue. But it typically increases. If it does next year, we won’t have to rely on our fund balance as much.”
Key Revenue Sources and Personnel Costs
The budget forecasts $25.73 million in tax revenues, breaking down into $9.1 million from property taxes and $16.63 million from other taxes, primarily the city’s share of the Local Option Sales Tax (LOST). Officials do not expect to raise property tax rates to fund this budget.
Furthermore, the budget plans for $18.38 million in “transfers in,” including a significant $15.55 million transfer from Dalton Utilities. The city mandates that the utility must transfer either $10 million or 5% of its total revenue, whichever is greater, each year. An additional $2 million will come from the Dalton-Whitfield Solid Waste Authority, co-owned with Whitfield County.
Personnel costs constitute nearly 75% of the budgeted expenses, a trend that officials indicated is standard. The budget allocates $37.51 million for salaries and benefits, increasing from $34.21 million in 2025. This rise of $3.5 million includes $2.1 million for wage increases associated with a newly implemented step and grade pay scale for the fire department, as well as the addition of six full-time positions.
Health insurance costs saw a sharp increase of 35%, amounting to $1.3 million. Mayor Sams mentioned that while initial projections for health insurance costs were higher, the city managed to mitigate the increase by raising deductibles and out-of-pocket expenses. Additionally, for the first time, the city offered employees a high-deductible account with a health savings account option, allowing them to save money tax-free for healthcare expenses. “Those actions helped us keep a large increase in healthcare costs from being even larger,” she remarked.
Funding for Public Safety and Infrastructure Projects
The Dalton Police and Fire Departments together account for over 53% of the total spending in the 2026 budget. The budget designates $13.16 million for the police department, reflecting a 4.7% increase from 2025. This funding will ensure full staffing for the department, maintaining 90 sworn officers. Despite having been approved for this number of officers for many years, the department has struggled to maintain full staffing due to retirements and other departures. The budget also includes provisions for three additional school resource officers to serve Dalton Public Schools.
The fire department will receive $13.18 million, marking a significant increase of 13.57% from the previous year. Meanwhile, the Public Works Department is allocated $9.41 million for 2026, up about 5% from 2025.
Additionally, the budget will utilize $703,000 from Special Purpose Local Option Sales Tax (SPLOST) funds for paving projects. The Parks and Recreation Department will benefit from an allocation of $5.48 million, an increase of 17% compared to last year.
Overall, the approved budget reflects the city’s commitment to maintaining essential services while planning for future growth and stability.
