Dayton council opens public hearing on 2026 budget and outlines 7.16% proposed levy increase

Dayton City staff presented the proposed 2026 budget and tax‑levy parameters during the council’s Dec. 9 meeting, explaining how the city’s levy and tax rate translate to resident impacts.

City staff said the proposed levy is a 7.16% increase — about $628,000 — intended to cover anticipated general‑fund and contract cost increases for 2026. Staff emphasized that a 1 percentage‑point change in the city tax rate is roughly $54 a year for the owner of a $534,000 house and about $242,000 in levy revenue for the city. Staff also reviewed changes in tax capacity over the past five years and noted that much of Dayton’s recent capacity growth has been commercial, which helps spread tax burdens.

The presentation covered other budget details, including a proposed 4% increase in water rates and 1% for sewer, adjustments in personnel (one additional staff position and a restructured fire schedule), and a shift of certain utilities and central charges into a single central‑services bucket to improve tracking. Staff explained how property tax calculations start from projected operating needs, then subtract known revenue sources (grants, state aid, fees) to derive the levy.

Council opened and then closed the public hearing on the proposed levy; no members of the public addressed the council at the hearing. Staff reminded the council that certification of the final levy is scheduled before year‑end and that final tax statements also reflect county and school district levies that staff cannot control.

The council did not adopt the levy at the Dec. 9 meeting; staff said they expect to finalize certification by Dec. 31, 2025.