Clinton adopts tentative FY2026 budget, council sets Truth-in-Taxation hearing after approving 7.5% property tax plan

The Clinton City Council voted 3–2 on June 24 to adopt the city—s tentative fiscal 2026 budget using a 7.5% property tax increase as the planning figure and set a Truth‑in‑Taxation public hearing for Aug. 5, 2025, at 6 p.m. The action gives staff a clear budget target while preserving the council—s ability to finalize the tax rate and any further changes at the August hearing.

Council members and city staff framed the decision around two long-standing fiscal challenges: a recent decline in sales-tax revenue compared with prior years and the need to begin funding capital and replacement projects the city has deferred. Staff said the city—s sales-tax receipts have softened from their recent high, which reduces the variable revenue stream the city previously relied on to balance operations and capital spending.

Staff recommended a package of changes that included utility fee adjustments (water, sewer, stormwater and garbage) and other pass‑through increases. During the meeting staff said the initial, staff‑recommended utility package would raise the average household utility bill by approximately $11.01 per month. Council members then asked staff to reduce the water portion of the increase; after adjustments the council approved a utility schedule that reduced the total estimated average household impact to $9.75 per month. Staff said many fee increases are pass‑throughs tied to outside providers (waste collection, North Davis Sewer District, dispatch) and that a full rate study is underway for water and other enterprise funds.

Council members discussed tradeoffs between spreading smaller increases over multiple years and adopting a larger immediate increase to build reserves and to fund required matching payments tied to major projects. Staff described an upcoming borrowing arrangement with the Board of Water Resources (Weber Basin project) that requires the city to match roughly 15% of the loan amount in cash when payments are made; council members noted the timing of those match payments in 2026–2027 as a reason to move more revenue into capital funds now.

After debating several options (including keeping the tax rate at 5% or moving to 10%), the council settled on a 7.5% planning figure. The council emphasized that the figure adopted on June 24 is the working number used to finalize the tentative budget and that the final certified tax rate will be set after the Aug. 5 Truth-in-Taxation hearing. Staff said they will present the full rate‑study results and updated revenue numbers to the council before that hearing.

Other actions and votes during the meeting included: - Approval of fee schedule adjustments for utilities with the council reducing the water-related component so the combined utility increase averages $9.75 per month for the typical household after pass‑through adjustments. (Council roll call recorded a dissent on the broader fee schedule earlier in the meeting.) - Adoption of budget amendments (Resolution 11-25) to reallocate and consolidate certain project funds and to correct accounts identified during final audit preparation; the council adopted those amendments earlier in the evening. - Approval to continue the Home Depot water-service agreement item to a future short meeting so city attorney and staff can finalize language. - Approval to purchase a used Toro Z sprayer with a full warranty at $13,000 for parks/facilities operations.

Council members described the vote as a compromise intended to balance the need to increase recurring revenue with concern about the immediate burden on residents. Mayor and staff urged that the council—s chosen path will be adjusted if the upcoming rate study or updated revenue numbers indicate a different course. The council also asked staff to return a final, consolidated budget document after August public hearings and to continue work on fee processors and other administrative efficiencies (for example, charging card-processing fees as a pass‑through to reduce the general fund impact of electronic payments).

The Aug. 5 Truth‑in‑Taxation hearing is scheduled for 6 p.m. in the council chamber; staff will post updated budget and rate‑study materials on the city website once the full analyses are available.