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Clayton City Council reviews conservative 2025 budget; income-tax levy not expected to deliver revenue until mid-2026
Summary
At a workshop presentation, Schwitzer outlined a conservative draft 2025 budget that holds spending steady pending levy collections; the recently passed income-tax levy takes effect Jan. 1, 2026, and staff expect remittances and estimated payments to be processed and reach the city by June 2026.
Schwitzer presented the Clayton City Council with a conservative draft of the 2025 budget and detailed revenue and expense projections, warning that the income-tax levy voters approved will not generate city receipts until mid-2026.
Schwitzer said the levy "passed in all three Wards" but "doesn't go in effect till 1-1-26," so employers and companies will not begin withholding remittances until the following quarter; estimated and annual resident payments are due April 15 and, after processing by the state collection authority, the city likely will not see funds until June 2026. He urged caution: "we don't want to just say we got this levy money's coming; let's not spend it before we get it."
The draft keeps the city’s approach conservative after line-by-line reviews with department heads. Across funds, personnel costs remain the largest expense driver: Schwitzer reported increases in police and fire personnel costs since 2022 and said the budget assumes a 3% wage reopener across labor agreements as a placeholder until unions finalize terms. He told councilors that police personnel rose from about $2.1 million in 2022 to a projected $2.6 million, and that fire and EMS personnel also show steady increases.
Schwitzer outlined projected revenues of roughly $13 million for 2025 (excluding transfers), driven primarily by income tax collections and charges for services. Transfers from the general fund to enterprise and public-safety funds are substantial: planned transfers include amounts for police, fire/EMS, and the service department. He explained the mechanics and cautioned that once transfers leave the general fund they cannot be transferred back, so staff will transfer only what is necessary during the year.
The presentation showed the proposed general fund ending balance at about $1.7 million for the 2025 budget year with longer-term forecasts improving after 2026 when levy revenues are expected to start: Schwitzer projected a general fund balance rising toward an estimated $4.2 million in 2026 and continuing growth into 2029 as debt maturities ease. He emphasized the conservative posture: "we didn't make cuts because we still don't know what's going to happen next year — we don't want to just say we got this levy money's coming; let's not spend it before we get it."
Schwitzer also flagged several operational and program details: Meadowbrook Golf is budgeted to require an estimated $200,000 subsidy next year, rental and liquor-license revenue have improved golf-course receipts, and cable-franchise fees have declined as households shift to streaming. He said the administration preserved community events line items (including leaf pickup) while reducing other operating expenditures where possible.
The workshop concluded without any formal budget vote; councilors asked clarifying questions on variances, transfers and fund balances. The council adjourned the workshop after the presentation.
