Dixon City staff present FY 2025–26 consolidated budget with $60 million in outlays; adoption set for June 3

City staff presented the proposed FY 2025–26 consolidated budget at a special Dixon City Council workshop, saying the plan totals $60,000,000 with projected revenues of $73,600,000 and is scheduled for formal adoption on June 3.

“KThis budget is a collaboration between the city manager, the finance department and the operating departments,” Kate, the staff presenter, said, outlining the budget calendar and timetables for departmental requests, draft preparation and the June adoption deadline. Kate told the council the proposed general‑fund revenue projection represents a 9% increase driven largely by a voter‑approved 1% sales tax and growth in residential units.

Staff acknowledged some timing uncertainty in property‑tax collections because of county software issues; Kate said supplemental collections are expected to arrive next year rather than this year but that the delay is temporary. The presentation projects a $1.5 million year‑end deficit for the current fiscal year and a $477,000 deficit for FY26 that staff expect to reduce once one‑time items and departmental savings are confirmed.

The budget retains healthy reserves — staff noted an ending reserves projection near 43% — and treats roughly $1 million in capital and other one‑time spending as reserve‑funded costs rather than ongoing obligations. Kate summarized next steps as incorporation of council feedback, a June 3 adoption hearing and final budget publishing by July 31.

The presentation closed with councilmembers thanking staff for managing post‑pandemic constraints and preparing a balanced plan that restores previously paused positions and funds capital maintenance.