Abby Patel Jones, director of the Department of Management & Budget, presented the city manager's proposed 2026 operating and capital budget, describing a $518.9 million total operating budget (a 3.9% increase over 2025) organized around 14 community priorities established in the city's policy budget framework.

Jones said the proposed budget emphasizes housing investment, demolition and blight remediation, public safety, neighborhood conditions and youth development. "For 2026, the total operating budget is $518,900,000 which is $19,700,000 higher or 3.9% higher than 2025's original budget," she said.

Key proposed investments listed by Jones include:

- Youth programs: $12.1 million total, including $4.3 million for Preschool Promise and $507,000 for recreation youth programming.
- Dayton Recovery Plan (DRP) allocations: $6.2 million remaining for DRP parks and spray-park improvements and nearly $9.6 million remaining for housing projects tied to the DRP.
- Demolition and vacant-property work: $10.1 million dedicated to demolition (including $7.3 million remaining in DRP), a $1 million annual general fund demolition allocation, and CDBG and DRP vacant-lot cleanup and tree-lawn programs.
- Housing: $18 million total housing investments including federal HOME and CDBG funds, DRP funding, and programs for owner-occupied repairs and down-payment assistance.
- Violence reduction and Mediation Response Unit: $473,000 for Cure Violence implementation and a nearly $800,000 shift to general-fund support for the Mediation Response Unit (seven full-time positions and contract support).
- Permitting and technology: roughly $319,000 for three permitting positions and $130,000 for contracted plan-review services, plus software implementation funded by CDBG to digitize plan review.
- Public safety: Fire budget $53.7 million (continued cross-staffing, recruit class, overtime); Police budget $71.1 million (two recruit classes, overtime).

Jones described nearly $15 million in major budget "solutions" (one-time and non-recurring sources) used to balance the general fund, including ARPA interest earnings, use of cash reserves, a health-insurance holiday, and departmental cuts.

She also reviewed legal and procedural requirements cited in the presentation: the city charter (section 1.56), Ohio Revised Code 5705.38 and 5705.41/45, and local code requirements for balanced appropriations; Jones gave a timeline with key dates: public notice in the Dayton Daily News on Jan. 11, 2026; appropriation published Feb. 8; first reading and public hearing Feb. 18; second reading Feb. 25; and an effective date for the original appropriation of March 27, 2026.

Commissioners asked procedural questions about the public-hearing timing and the staff said the first reading on Feb. 18 will include the public hearing; staff also said additional community outreach opportunities will be publicized. The commission moved and approved the city manager's recommendations by voice vote later in the meeting.