City Manager Megan O'Callaghan and Finance staff presented Dublin’s proposed 2026 operating budget and the 2026–2030 capital improvements program during the Dublin City Council meeting on Oct. 20.

The city is proposing operating revenues of $119,500,000 for 2026, roughly a 5% increase from the 2025 budget, and a proposed operating budget that is balanced. The plan keeps the General Fund balance above the city's 50% policy target at a projected 53.7% in the budget and anticipates a modest operating surplus of about $62,000 if adopted as proposed, staff said.

The five‑year capital plan totals just under $375,000,000; about $120,000,000 of that is for maintenance. The 2026 capital improvements program (CIP) project requests total $72,100,000 with transportation projects accounting for roughly 54% of the CIP, utilities about 10%, parks 12% and the remainder for fleet, facilities and technology, according to Finance Director Matt Rubino.

Rubino told council the budget assumes the city's long‑standing practice of conservative income tax forecasting, using the current year budget as a base and applying a rate of change rather than an optimistic projection. He said income tax remains the city's principal revenue source, and noted that about 90% of income tax revenue comes from businesses located in Dublin, and that 75% of income tax revenue is used for the General Fund with 25% allocated to capital.

On personnel and operating costs, the proposed operating budget includes a personnel increase (the presentation references a 4% average increase for non‑bargained employees and ratified union increases for bargaining units), funding for seven new positions (listed in the packet as three communications technicians, three police officers and an aquatics coordinator) and fringe benefit costs projected at approximately $19,000,000. The budget documents show an estimated 4% overall increase in operating expenditures driven largely by payroll and benefits.

Rubino said staff will pursue a water and sewer rate study next year (presented separately during tonight's meeting) to map rate trajectories and better match rates to capital planning. He also told council the city expects to issue debt in 2026 in an amount not to exceed an estimated $12,900,000 to help fund capital needs.

Councilmembers asked about multi‑year revenue planning and use of the city's quarterly utilization reviews. Several members urged that the Finance Committee develop a more formal policy to align projected revenue growth with expense growth and inflation. Rubino and staff said the city has ongoing quarterly budget monitoring with department directors and that fund utilization has historically ended the year higher than budgeted projections.

The presentation will return to council for second reading and public hearing on Nov. 3, when council will consider formal adoption of the operating budget and the CIP appropriation measures that follow the ordinance.

Ending: The administration said the 2026 budget reflects a “balanced and strategic approach,” emphasizing reinvestment in maintenance and the enterprise of city services; councilmembers indicated they will pursue follow‑up work in the Finance Committee on revenue policy and fund utilization.