Dixon Council adopts $60.6 million spending plan for fiscal year 2025–26

The Dixon City Council on June 3 adopted the City’s FY 2025–26 budget and a companion budget for the Dixon Public Financing Authority. Finance staff presented the plan showing $73,600,000 in proposed revenues and transfers and $60,600,000 in proposed expenditures; the council approved the resolution by roll-call vote.

Finance staff said 56% of the proposed expenditures are supported by the general fund and noted projected general-fund reserves of 43.3% at the end of FY26. The staff presentation acknowledged an approximately $500,000 shortfall for FY26 that staff described as the result of one‑time purchases and said ongoing labor-negotiation outcomes could affect future projections. The finance director told the council the city “does not come close” to the state-imposed appropriation limit and that auditors review the calculation.

Councilmembers pressed staff for more clarity on a so‑called public-benefit fund and how those revenues will be accounted for. The finance presentation said the city expects an 8% increase in property taxes tied to residential growth and that the 1% sales‑tax increase — estimated at $3,100,000 — is proposed to fund additional public-safety staffing. The finance director listed positions the sales-tax revenue is proposed to support, including three battalion chiefs, three fire captains, one firefighter‑paramedic, two police lieutenants, one police sergeant and five police officers.

During public comment, residents urged the council to consider whether the public‑benefit label accurately communicates how the sales‑tax receipts will be used. After discussion and questions, a councilmember moved to adopt the budget and the council approved the joint resolution by roll-call vote (ayes recorded for Councilmember Hendershot, Councilmember Johnson, Vice Mayor Bogue and Mayor Bird). The adopted budget takes effect July 1, 2025, and staff said quarterly updates will return to the council.