DeKalb council reviews FY2026 budget as police-and-fire pension shortfall looms

DeKalb City Council and the Financial Advisory Committee on Aug. 18 heard a preliminary review of the proposed fiscal 2026 operating budget that highlighted a large police-and-fire pension liability and revenue uncertainties that could affect future levies and reserves.

City Manager Nicholas opened the presentation, saying, "I have provided you with some background information on a preliminary point in our budget process. It's a very public process." He told council members the city is early in the budget calendar and expects more detailed work in October and again in November and December.

The presentation to elected officials and advisory commissioners emphasized that personnel costs account for roughly 85% of projected expenditures and that roughly 75% of general fund revenue comes from a handful of sources: property tax, state and home-rule sales taxes, municipal utility tax and investment interest.…