Kevin, the city’s presenting staff member, opened the Clayton City Council workshop with a review of 2026 revenue and expense trends, saying the city grouped its major funds—general, police, fire, service and Meadowbrook—and compared 2023–2025 figures before proposing a 2026 plan.

Kevin said personal‑service costs (payroll, benefits and insurance) have remained largely level while operating expenses rose, driven in part by interfund transfers to police, fire, debt service and streets. He told the council transfers are projected to fall next year because 2026 will route dedicated municipal income‑tax shares to police and fire rather than relying on transfers: "0.5 of income tax is going to police, 0.5 is going to fire. But then all of the remaining, 1.5% is now going to the general fund," he said.

The presentation compared past transfer totals (about $2.8 million in 2023 and nearly $3.3 million budgeted in the prior year) to a projected roughly $1.44 million transfer for 2026, a drop Kevin attributed to the new income‑tax allocations. He cautioned, however, that the city likely will not receive the full effect of the new tax remittances until May or June 2026 after collection and processing by the county collection authority.

On staffing and compensation, Kevin said the budget assumes a 3% cost‑of‑living increase consistent with guidance from the state employee relations board and includes negotiated union steps. The proposal includes one new police officer, two firefighters and a new economic development director on the administrative side. "For 2026 budget, there is 1 new hire for the police. The fire department is gonna be looking at 2 new hires included in there," Kevin said.

Kevin flagged rising non‑personnel costs for fuel, utilities and a new contract for Flock cameras and dispatch services. He also described Meadowbrook’s operating deficit trend—about $276,000 in 2023, $180,000 in 2024, $49,000 last year and a $22,000 deficit through October of the current year—and said Meadowbrook revenues generally do not meet expenditures.

The presentation listed CIP items included in next year’s budget: Clayton’s share of Hope Road/Main Street improvements (presented at about $915,000), Meadowbrook irrigation pump work ($11,000), a culvert project with Trotwood ($55,000), parks and cemetery mower leases, annual street maintenance ($600,000), new turnout gear for the fire department ($66,000), vehicle lease payments and bond service. Kevin noted the general fund began the year with roughly $4.2 million and, year‑to‑date, sat near $5.2 million, which he characterized as approximately a $1 million increase.

Council members asked for clarifications about chart visuals and specific dollar lines in the presentation; Kevin confirmed the $1,440,000 figure on a chart represented total transfers out projected for next year and explained why the graphic might look misleading. He also said the city will publish notices to residents and businesses regarding changes to withholding and income‑tax collection once letters are distributed by the tax collector.

The workshop concluded after brief follow‑ups on developer‑related funds, health‑care cost changes and project timing. A motion to close the workshop passed by roll call.