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Council tables FY2026–27 budget after public plea to target industrial water users
Summary
Council continued the FY2026–27 budget public hearing to June 15 to allow follow-up on support-service allocations and citizen requests that large industrial water and sewer customers bear a larger share of rate increases; staff explained support-services cost allocation and agreed to supply additional contract and rate detail.
The Clayton Town Council continued the public hearing on the town manager’s recommended FY2026–27 budget at the June 3 meeting and moved final adoption to the council’s June 15 session to allow time to address several council and public questions.
Budget Manager Todd Melton explained the recommended budget and the methodology used to allocate support-service costs (finance, HR, IT and other centralized services) to enterprise funds so utilities are charged their proportionate share of overhead. Melton said the consulting firm Black & Veatch (Black & Beach in the hearing transcript) conducted the cost-allocation analysis, developed cost drivers and interviewed department heads; staff said a full report will be available in coming weeks.
Public commenter Jason Carter urged the council to pursue a targeted rate approach: rather than an across-the-board 16.5% water increase for all customers, Carter proposed a 30% increase for a small set of out-of-town industrial meters that consume a large share of system water and a 10% increase to their sewer rates. Carter said 18 industrial meters account for a disproportionate percentage of daily consumption and argued industrial customers should bear more of the cost of scarce water resources and system investment.
Council asked staff to provide additional detail on professional-contract spending and the support-services allocation methodology and to respond to Carter’s industrial-customer consumption data before the next meeting. Council unanimously approved a motion to table the budget vote and keep the public hearing open to receive the requested follow-up information.
Staff flagged timing constraints: the town must adopt a budget in time for the July 1 fiscal year start, so council set a June 15 target to finalize the FY2026–27 appropriation. The finance office will circulate requested detail on contract spending and the support-services report to council members ahead of that meeting.
