The Dalton City Council approved a general fund budget of $49.82 million for 2026 during a meeting on Monday, marking a 9% increase from the previous year’s budget. The council voted decisively, with a unanimous 4-0 outcome. Mayor Annalee Sams, who typically only votes in the event of a tie, did not cast a vote in this instance. The city’s fiscal year runs from January 1 to December 31.
The approved budget is designed to support the city’s day-to-day operations and projects total revenue of $49.82 million. This figure includes $802,000 drawn from the city’s fund balance, a reserve intended for emergency expenditures and to manage cash flow during the early months of the fiscal year when property tax revenues are still being collected. The projected fund balance at the end of 2025 is estimated to be $27,584,473.
Mayor Sams indicated that the city might not need to utilize as much from the fund balance as anticipated. “We are always conservative with our revenue estimates,” she stated. “We always project flat sales tax revenue. But it typically increases. And if it does next year, we won’t have to rely on our fund balance as much.”
Budget Breakdown and Revenue Sources
The 2026 budget anticipates $25.73 million in tax revenues. This includes $9.1 million from property taxes and $16.63 million from “other taxes,” primarily the city’s share of the Local Option Sales Tax (LOST). Officials indicated that there are no plans to raise property tax rates in the upcoming fiscal year.
Additionally, the budget allocates $18.38 million in transfers, including $15.55 million from Dalton Utilities, which is required to transfer either $10 million or 5% of its total revenue to the city each year. There is also a $2 million transfer from the Dalton-Whitfield Solid Waste Authority, which the city co-owns with Whitfield County.
Personnel costs dominate the budget, accounting for nearly 75% of total spending. The budget includes $37.51 million for salaries and benefits, an increase from $34.21 million in 2025. Personnel expenses rose by $3.5 million, with $2.1 million allocated for increased wages due to the implementation of a step and grade pay scale for the fire department and the addition of six full-time positions.
The cost of health insurance also contributed to the budget increase, rising by 35%, or $1.3 million. Mayor Sams noted that while initial health insurance cost projections were higher, the city managed to mitigate these increases by adjusting deductibles and out-of-pocket expenses. For the first time, employees were offered a high-deductible health plan with a health savings account option, allowing them to set aside money tax-free for healthcare expenses.
Funding for Emergency Services
The budget emphasizes funding for essential services, with the police and fire departments together accounting for 53% of total expenditures. The Dalton Police Department will receive $13.16 million, a 4.7% increase from 2025, which will fully staff the department with 90 sworn officers. Although the department has been authorized for this number of officers for several years, staffing levels have often fallen short due to retirements and other departures. The budget also provides for three additional school resource officers for Dalton Public Schools, increasing the total number of sworn officers to 93.
The Dalton Fire Department is allocated $13.18 million, reflecting a significant 13.57% increase from the previous year. The Public Works Department is set to receive $9.41 million, up by approximately 5% from 2025. Additionally, the budget includes $703,000 from Special Purpose Local Option Sales Tax (SPLOST) funds designated for paving projects, while the Parks and Recreation Department will receive $5.48 million, a 17% increase from the prior year.
The approved budget underscores the city’s commitment to maintaining essential services and addressing personnel costs while managing taxpayer contributions responsibly.
