The Dayton City Council has unanimously approved a budget for the city’s 2026-2027 fiscal year, which is set to start July 1.
The new budget has a general fund of $9 million available for city programs like the police and fire departments, public works and waste collection; a 39% decrease from the 2025-2026 budget’s nearly $15 million general fund. The primary cause of that decrease is in the reduction of funds carried forward into the new fiscal year—only $2 million, compared with the $5 million carried over in 2025-2026.
Another issue is the lack of American Rescue Plan funds, which were federally distributed to local governments to help lift some of the economic burden of the COVID-19 pandemic and stopped being distributed last year. According to Dayton City Auditor John Chamberlain, most of Dayton’s ARP funding went to the city’s Public Works Department, which faces a 2% reduction in funds in 2026-2027. The Professional Services budget, which is used to hire outside consultants, is also facing a 23% cut.
Despite the reductions, the city leaders say Dayton is well set for the future.
“The Government Finance Officer’s Association recommends municipal governments have about three months of operating expenditures on hand in cash,” auditor Chamberlain explained, “For Dayton, that’s about $1.7 million.”
“You’re in a very solid cash position,” he told the council.
No other city department is seeing a reduction, either. In fact, most are seeing an increase in funding to account for rising inflation—including a 6% increase to the police and fire department budget that the city shares with nearby Bellevue, which will vote to approve its 2026-2027 budget on Wednesday night.
