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Clinton adopts tentative final budget with 7.5% property‑tax increase; council sets truth‑in‑taxation hearing
Summary
After months of planning and debate, the council approved a tentative final FY2026 budget that includes a 7.5% property‑tax increase to shore up capital reserves, fund bond match obligations and cover utility/rate adjustments; the truth‑in‑taxation hearing was set for Aug. 5, 2025.
The Clinton City Council on June 24 adopted a tentative final FY2026 budget that includes a 7.5% property‑tax increase, following extended debate about the city’s declining sales‑tax growth and upcoming Weaver Basin (water) bond match requirements. The council voted 3–2 to approve the tentative budget and scheduled a truth‑in‑taxation hearing for Aug. 5 at 6 p.m.
Staff had recommended a 10% estimate for state filing to preserve flexibility, citing a projected shortfall from lower sales‑tax receipts and the need to set aside about $500,000 for capital improvements. Finance staff explained that the Weber Basin loan requires periodic 15% local matches (roughly $150,000 per payment) beginning next fiscal year. Council members debated whether to take the full staff recommendation or adopt smaller, staged increases. Several council members pushed for single‑digit increases and additional review after forthcoming rate studies. Council member Marie Doherty proposed a compromise level of 7.5% that would still allow staff to begin funding capital needs while giving the council time to revisit numbers prior to the final tax‑rate adoption.
During budget deliberations the council also identified possible expenditure reductions totaling roughly $45,000 (delay of cemetery expansion, scale back residential sidewalk repairs and trim national training budgets) as candidate savings to offset rate increases. Staff said the city will continue more detailed rate studies and present final tax figures in August; the tentative budget adopted tonight gives staff direction to prepare materials for the truth‑in‑taxation process and public notices.
Mayor (unnamed) emphasized the long‑term context: Clinton has relied on one‑time growth and sales‑tax gains for years and must transition to more stable revenue sources and planned annual adjustments to maintain services and capital replacement schedules. Council members voting in favor said the 7.5% compromise balanced resident impact and fiscal responsibility; dissenting council members favored a higher increase to move more quickly toward capital funding targets.
