Dayton council work session narrows 2026 levy target to roughly 14–16%

DAYTON — City staff and council members spent the Aug. 12 work session debating levy options and budget trade‑offs before settling on a preliminary target range for next year’s tax levy.

Staff presented a baseline that assumed an 18.22% levy increase, which Speaker 2 described as producing a tax rate “about 36.06%” and an estimated impact of roughly “$22 a year” for a home worth $525,000. Councilmember Speaker 5 offered an alternative package that would lower the tax rate to about “35.35%,” trimming roughly $305,000 from the proposed increases while preserving hires and some capital spending.

The council debated whether to rely primarily on growth from new construction or to distribute increases across all taxpayers to cover inflation and additional service demand. Several members urged trimming capital purchases and delaying some hires to reduce levy pressure; others expressed concern that cutting now could cause operational shortfalls later.

After extended discussion of capital equipment, public-works purchases and service-level implications, Speaker 2 summarized the direction: the council coalesced around a levy in the neighborhood of 14–16% and asked staff to submit a single tax-statement number to the state and bring back a draft budget for the September meeting. Speaker 2 told the group staff will provide the number needed for the tax statement and that allocations can still be adjusted before final approval.

No formal motion or vote occurred during the work session. The council scheduled follow-up budget work in September and signaled a preference to allocate additional carry‑forward or surplus dollars toward long‑term capital needs such as a future ladder truck.