Clayton records tornado costs in third‑quarter report; board adopts $1.4M budget amendment

City finance staff presented the fiscal 2025 third‑quarter financial report Aug. 12, showing elevated expenditures tied to the May 16 tornado and a budget amendment to record initial storm costs. City Manager told the Board that general fund expenditures are about $1.9 million higher year‑to‑date than last year, driven in part by overtime and contractual services related to storm response; the budget amendment includes $1.4 million for storm expenses.

The city also reported corrections to interest income entries in several capital funds after the county found errors in their interest allocations; the amendment increases interest earnings estimates in the equipment replacement, capital improvement and bond construction funds. Staff said federal reimbursement from FEMA will lag and that many debris‑removal and labor costs will be submitted for reimbursement during the next fiscal year; FEMA documentation requirements are being followed to preserve eligibility.

Board members asked about the tornado damage totals (staff cited an initial FEMA estimate around $5 million) and the timing of reimbursements; finance staff said some reimbursements will be submitted during construction and that FEMA typically reimburses after project documentation is complete. A separate question about a recently issued special obligation bond produced clarification that bond issuance costs were recorded and that interest expense timing depends on the debt service schedule.

Alderman Beuse introduced Bill No. 7082 (the fiscal 2025 third‑quarter budget amendment). The board gave unanimous consent to consider adoption on the day of introduction, then approved the ordinance on second reading by recorded vote: Beuse, Patel, Fader, Hummel, York and Mayor McAndrew voted aye.