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Clayton council adopts midyear budget amendment; staff flags 60% revaluation increase
Summary
Council adopted Ordinance 2025-513 approving midyear budget adjustments. Staff reported a healthy fund balance, possible use of PayGo for library renovations, limited obligation bonds for public safety complexes, planned staffing conversions, and a projected property revaluation increase of about 60 percent that could affect next year’s tax rate.
The Clayton Town Council voted to adopt Ordinance 2025-513 on a voice vote after a midyear budget presentation from town staff.
Town staff reported the town’s fund balance remains healthy, with approximately $1.7 million above the 30 percent target reserve. Staff said that discretionary funds could be programmed for priorities identified in the council’s strategic plan and the upcoming FY 2026 budget discussions.
Staff discussed several midyear recommendations: converting several part-time positions to full-time or permanent part-time status; adding an apprentice position in the electric department with the goal of retention; hiring full-time safety specialists in human resources; and converting a part-time file technician to a full-time position. Staff also noted a recently executed lobbyist contract with Electus.
On capital projects, staff said library renovations might be paid with cash on hand (PayGo) rather than financed, freeing debt capacity for two planned public safety complexes. The recommendation for longer-term financing for those complexes is limited obligation bonds; staff said bids and construction are still months to a year away. Rolling stock (vehicle) replacements were discussed as another option where staff may use cash rather than new debt.
The presenter told the council that property tax revaluation figures indicate an approximate 60 percent increase in assessed values; a revenue-neutral tax rate after a 60 percent revaluation would be roughly 45 cents compared with the town’s current rate of about 65 cents. Staff emphasized the revaluation was a “desktop exercise” for planning and that final figures could change after county protests and final rolls are certified.
A council member moved to adopt Ordinance 2025-513 and a second was recorded; the motion passed on a voice vote without a roll-call tally in the transcript. Town staff said the council will continue detailed FY 2026 discussions at an upcoming retreat and work sessions.
