DeKalb city manager presents 2026 budget package; council signals intent to hold city levy rate

City Manager Bill Nicholas presented a proposed FY2026 budget and related capital plans at a joint DeKalb City Council and Finance Advisory Committee workshop, urging council members to hold the city property tax levy rate at the same level as last year while committing to street, water and public-safety priorities.

Nicholas told the workshop the packet before members includes a narrative summary and detailed spreadsheets for the general fund, water fund and key capital funds and that the packet had been slightly amended before the meeting. "I would like to see us spend about $250,000," he said of proposed one-time capital spending for the city's 250th-anniversary observance, adding the money would likely transfer from the general fund reserve to the capital fund and be spent on symbolic, durable projects rather than one-time entertainment.

The recommendation to keep the city levy rate unchanged — the city manager cited an option to maintain last year's rate of roughly 0.622 — drew apparent support from the council. Council members nodded in agreement and the city manager said, "I'll bring that forward," indicating he will present a formal levy recommendation at the council meeting scheduled next week.

Why it matters: Nicholas framed the proposal around the city's revenue mix (property, sales/use, municipal utility and state income taxes), existing service and capital needs, and pension obligations. He said development-driven increases in equalized assessed value (EAV) have reduced the city's rate in recent years, but that faster revenue growth cannot be relied upon to cover rising costs for pensions, street maintenance and vehicle replacement.

Key budget proposals and figures

- Property tax/levy: Nicholas recommended keeping the city levy rate the same as last year (the background materials cite a rate around 0.622). He…