The nearly $800,000 in budget cuts spanned across city general fund departments and impacted personnel, contract and material-related costs, Patel-Jones said.
“This reduction is a combination of numerous budget adjustments across multiple departments,” Patel-Jones said. “Each department was asked to cut 0.75% from the 2026 budget. Each department approached this reduction differently and had the opportunity to adjust based on their operational needs.”
This led to reductions in the recruit class for the city’s police and fire departments, going from a class of 20 to a class of 18 for the fire department and a class of 22 to a class of 17 for the police department.
“We are still maintaining required staffing levels in both police and fire,” Patel-Jones said.
Also included in the reductions were cuts in expenses related to fuel costs for the fire department’s fleet of vehicles. The city’s public affairs office, too, saw a reduction in its cable franchise fee.
Dayton 2026 general fund major budget solutions
| Category | Cost |
|---|---|
| Health insurance holiday | $1,534,100 |
| FEMA tornado reimbursement | $1,331,800 |
| ARPA interest earnings | $5,000,000 |
| Cash reserves | $3,689,600 |
| 2026 budget cuts | $766,800 |
| Reduced current year cash investment budget | $450,000 |
| Reduced fringe benefit rates | $582,900 |
| Unclaimed funds | $300,000 |
| New revenue | $875,600 |
| Total major budget solutions for the general fund | $14,809,800 |
Source: City of Dayton
“One-time” expenses included a health insurance holiday planned for the 2026 fiscal year, which will save the city $1.53 million. Another $1.3 million came to the city through FEMA — a reimbursement for expenses related to the 2019 tornado. And $5 million is coming from interest earnings that have been accumulating from the American Rescue Plan Act.
The budget also includes a $450,000 reduction in investments for funds geared toward development, capital projects and capital equipment and technology. In addition to $875,600 in new revenue the city identified, the budget will also be balanced by $300,000 in unclaimed funds and $582,900 in savings from reduced fringe benefits rates.
“All of this helps to balance the budget, specifically the general fund for 2026,” Patel-Jones said.
Wednesday’s public hearing about the budget was scheduled partly to clarify information requested by commissioners. No residents signed up to speak during the hearing, but Dayton resident and veteran Cevin Moore said during the regular commission meeting that he’d like to see money funneled over to efforts that support other veterans.
“New revenue, unclaimed funds, but there’s been nothing said to how to help a veteran,” Moore said. “I’d like to know what we can do to make it better.”
Dayton’s original proposed annual budgets between 2017 and 2021 predicted that the city would need to dip into its savings, but it was never necessary since revenues outperformed projections. Dayton has nearly $60 million in cash reserves.
Patel-Jones previously said Dayton’s general fund revenues heavily rely on the business cycle, and vulnerabilities include a potential future recession; uncertain federal grant programs, funding and policies; aging equipment and infrastructure; employee turnover and burnout and other changes.
The city’s 2026 budget proposal was presented to the Dayton city commission in October 2025. The proposed budget was posted on the city’s website that same month.
The first reading of the budget will be in February, with a second reading also planned for next month. The appropriations will take effect in March.
Cory Frolik contributed to this report.
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