The City of DeKalb’s City Council and Finance Advisory Committee met in a special joint session on Nov. 17 to review the proposed fiscal year 2026 budget and staff recommendations for funding capital needs, operations and pension obligations.

City Manager presented the budget overview and told the panel that the city plans to use a mix of existing revenue and reserves to cover 2026 priorities. "From our general fund reserve, we are on the street maintenance side, going to bring $1,400,000 out of the general fund reserve," he said, and added the city would use roughly $540,000 of reserves for equipment and vehicle purchases and about $1,900,000 to help cover shortfalls in state pension payments. He also noted general obligation bond debt-service and interest for 2026 would total a little over $2,300,000; when those items are combined, the manager reported the total reserve withdrawals amount to approximately $6,164,460.

Why it matters: those reserve withdrawals are meant to preserve core services — notably street maintenance and vehicle/equipment replacement — while the city manages pension and debt-service obligations that affect future operating flexibility. Manager commentary emphasized that the city has used reserves in recent years to supplement capital needs but described that as unsustainable long-term without offsetting revenue or spending adjustments.

Budget details presented to council included a $300,000 local human services grants allocation and a separate Community Development Block Grant (CDBG) fund that typically brings about $400,000 in federal funds for eligible programs. Manager also broke out the street maintenance package for 2026 as $1,000,000 from the motor fuel tax (MFT) fund, $750,000 from fund 400 (local capital), and $1,400,000 from the general fund reserve.

On capital projects, the manager described a planned bus maintenance and operations facility that is intended to house, fuel and service buses rather than serve as a passenger transit hub. "It's about a $22,000,000 project. It's entirely funded by federal sources," he said, while noting not all grant funds are yet allocated and a key funding/contracting milestone is expected in April or May.

Council members asked targeted questions about equipment replacement timelines, the earmarked $250,000 for a February celebration and whether some recurring program support should be restricted to DeKalb residents. Several members praised the budget’s presentation and performance measures; the manager said he would make minor numeric corrections in the budget book and return formal budget documents for the public hearing next Monday.

Next steps: staff will adjust the budget narratives and spreadsheets as directed and present the formal FY2026 budget at the scheduled public hearing, where the council may vote on levies and appropriations.