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Town of Clayton workshop moves to formalize planning and zoning fund as UDO costs rise
Summary
Council members at a July 9 budget workshop agreed the Town has created a dedicated planning and zoning fund to pay for ongoing updates to the unified development ordinance (UDO), but debated how to seed it—using annexation proceeds, permit fees, or a slice of property-tax revenue.
The Town of Clayton’s budget workshop on July 9 focused on creating a dedicated planning and zoning fund to cover growing costs to update the town’s unified development ordinance (UDO).
Chair said the town has set up a planning and zoning fund and that the Department of Local Government Finance (DLGF) had directed creation of specialized funds. “We created planning and zoning. It’s done,” the Chair said, adding the fund will house subcategories for administrative fees and planner payments. The Chair said consultant work on the UDO has been larger than expected and that the consultant estimated about $30,000–$35,000 to complete the revisions.
The Clerk raised practical questions about where funding would come from and how to structure the appropriation. “How much are UDO updates gonna keep costing?” the Clerk asked, noting that permit fees alone will not support the anticipated expenses. Participants discussed diverting a percentage of property-tax revenue (examples given: 5% and 15%) and moving annexation proceeds into the new fund as immediate seed money. The Clerk said the town had already set a fund code (2240) and that separate salary and administrative lines would need to be created so payroll and payments could be tracked.
Officials also discussed the mechanics of creating the fund by ordinance and how House Enrolled Act requirements and DLGF scrutiny had prompted the change. The Chair said the new fund would allow the town to track planning revenues (sponsorships for banners, permit fees) and to pay Banning Engineering and other planning service providers from a single account. The Chair added a modest stipend—$100 per meeting—has been proposed to encourage planning commission attendance so the commission can form quorums and conduct business related to the UDO.
The workshop did not adopt a formal motion or set a final percentage diversion; participants agreed staff would calculate options and return with a draft budget. The Chair said the existing balances in annexation and other special funds could be used to pay immediate consultant invoices while the council finalizes the long-term allocation.
Next steps: staff will model specific funding scenarios (percentage of property tax, permit-fee assumptions, and annexation transfers) and present a revised budget or ordinance language at a future meeting for formal action.
