Mayor Kate Wdowiasz’s proposed 2026 city budget contains a 2% tax increase. She emailed her proposal and an accompanying message late Tuesday, eschewing the traditional City Hall budget release press conference.

“This year’s proposed city budget reflects a clear vision: a more efficient, transparent, and financially stable Dunkirk,” Wdowiasz began her budget statement. “Our approach is deliberate and focused — protect core services, reduce unnecessary costs, and reform outdated systems that no longer serve the best interests of taxpayers.”

She said the 2% tax hike “allows the city to continue providing essential services without cuts and without adding any new staff positions. We are doing more with less while preserving the quality of life our residents deserve.”

The Common Council must ratify Wdowiasz’s budget, after making whatever changes it wants. The council ended up approving a 2025 budget with an 84% tax increase; Wdowiasz’s proposal was for 108%.

Wdowiasz added in a Wednesday addendum to her budget message that department heads will no longer have the option to receive an insurance buyout.

“In the interest of fairness to employees and to maintain competitive compensation, those who had previously participated in the buyout program will receive a modest increase in base pay — equal to only a fraction of what the insurance buyout would have cost taxpayers,” Wdowiasz wrote.

Here are a few things the OBSERVER noticed in a quick look at Wdowiasz’s 2026 proposal:

— The general fund balances, with $20,931,863 in both revenues and expenses. Revenues were $19,211,163 in the 2025 adopted budget, while expenses came in at $19,199,163.

— Wdowiasz’s mayoral salary line goes from $54,500 this year to $75,000 for 2026.

The mayor stated in her Wednesday addendum that the pay hike was a “similar adjustment” to the base pay increase for employees caused by the end of the insurance buyout program. Wdowiasz called it “equivalent to only a fraction of the value of the full-time elected officials’ insurance buyout benefit, which covers the full monthly premium of a family health insurance plan.”

— The $41,500 salary for the city treasurer has been removed. City officials are hoping that Dunkirk’s voters will agree to abolish the position this Election Day.

— The revenue section gets a $1.038 million boost from a county landfill user’s fee, a line that was zero in 2025.

— There is also a revenue boost anticipated in state “CHIPS” highway aid, from $652,298 in 2025 to $1,093,257 for ’26.

— There are some significant cuts in the City Hall building expense section. The water, gas, electric and maintenance lines were all slashed down to a $210,379 total for the section, compared to $311,053 in the adopted 2025 budget.

— A line item to pay for demolition of unsafe buildings was zeroed out. The line was $75,000 for 2025.

— Another expense item zeroed out: Recreational activities at the Dunkirk Senior Center. The 2025 budget offered $7,500 for that.

Wdowiasz went on to announce some financial office reforms at City Hall in her statement Tuesday.

She stated that her “administration is actively reviewing opportunities to consolidate departments and realign administrative functions to eliminate redundancy, improve financial oversight, and strengthen coordination across city operations. This review includes assessing overlapping duties within the Fiscal Affairs, Clerk, and Treasurer’s offices to ensure that each department operates efficiently and in the best interest of taxpayers.

“As part of this process, we are exploring a modern administrative structure that aligns Dunkirk with other municipalities across New York state — by establishing a city comptroller to oversee financial management and creating a clerk-treasurer position to streamline administrative and fiscal responsibilities. These changes will strengthen accountability, improve transparency, and support a more cohesive and professional city government.”

Wdowiasz added that the city government is “continuing to invest in and implement modern technology and software systems to improve efficiency, accountability, and recordkeeping across all departments. This year’s budget includes funding to update our financial management and timekeeping systems, which will allow for more accurate tracking of employee benefit time, payroll, inventory, assets, and departmental spending. These upgrades directly address issues identified in past audits and will strengthen internal controls, enhance transparency, and ensure full compliance with state and federal reporting requirements.”

Here’s Wdowiasz’s closing statement:

“This budget is not just a spending plan — it is a road map for continued reform and recovery. We are cutting waste, streamlining operations, modernizing government, and positioning Dunkirk for a more resilient and responsible future. We have faced hard truths, made difficult decisions, and taken bold steps toward restoring financial integrity. Together — with the support of the Common Council, our employees, and our residents — we are transforming this challenge into an opportunity to rebuild confidence and deliver lasting results for our community.”