Clayton holds hearings, files first readings on 2025 property tax levies and 2026 budget amid tornado recovery

The Board of Aldermen opened public hearings Sept. 9 and approved first readings of ordinances to set the city's 2025 property tax levies and the fiscal year 2026 operating and capital budgets. City officials told the board the city saw significant reassessment-driven value growth this year but is constrained from fully realizing that growth by Missouri's Hancock Amendment and the voter-approved rollback limits. City Manager David Gibson said residential assessed values rose by about $12.3 million and commercial assessed values by about $28.1 million for calendar-year 2025. Because revenue increases are limited to the lower of 5 percent or the annual Consumer Price Index, this year capped collections tied to rate changes at 2.9 percent. The city's finance summary shows roughly $297,000 in new-construction revenue available to the general fund and about $198,000 attributable to reassessment under the rollback cap. The combined residential levy in the proposed schedule would decrease about 4 cents to roughly $0.607 per $100 of assessed valuation; the commercial combined rate would be just above $0.71; and the personal property combined rate would be about $0.89. Properties inside the special business district would pay an additional levy of roughly $0.10 that funds downtown economic development, bringing those combined rates to about $0.71 (residential) and $0.81 (commercial). Gibson warned the city's general revenue rate has eroded over decades to about $0.454 in 2025 from roughly $0.90-$0.95 in 1995. On the budget, Gibson and staff presented an abbreviated version of the August work-session briefing. The fiscal picture for FY26 is muddied by costs from a May tornado. Staff reported an estimated FY25 deficit tied to storm response of about $1.1 million and projected the general fund balance to fall from about 79 percent at present to roughly 60 percent in FY26 because of tornado recovery and a one-time design allocation for the former Shaw Park ice rink site. City staff said they expect most tornado-related costs to be reimbursed by FEMA and the State: FEMA typically reimburses about 75 percent and Missouri about 10 percent for eligible costs, though timing can lag into late FY26 and beyond. Officials said the equipment replacement fund will be unusually large in FY26 because of two fire trucks and other purchases, with planned equipment spending near $4.8 million. Staff noted lead times on fire apparatus remain long: the city's trucks are in build and had required travel to the manufacturer. On personnel, the FY26 budget adds a planning technician in the planning department, a municipal service technician for parks and recreation to address parks maintenance and named gardens, and a mid-level IT reclassification ("network engineer 2") intended to improve retention. The budget includes a 2.5 percent range adjustment for represented police and fire personnel and a placeholder 2 percent range adjustment for non-represented staff effective April 1, plus a one-time $600 retention incentive for full-time employees who remain employed through Oct. 1. Gibson and staff emphasized that without significant expenditure cuts or new revenue, the city may need to consider a future property tax increase to narrow the structural gap between revenues and expenditures once one-time tornado effects clear. The board then introduced Bill 7090 (2025 tax levies) and Bill 7091 (FY2026 budget) and read both for the first time by title; both items advanced on first reading. The board scheduled subsequent readings and final action under the normal ordinance process. Ending: Staff said detailed budget documents and the full budget presentation are posted on the city website and that the complete August work-session recording remains on the city's YouTube channel for residents seeking the full discussion.