On Tuesday, the Clayton City Council is set to call for a tax measure to be placed on the ballot.
According to the agenda, City of Clayton staff are recommending the council adopt placing a 1% sales tax on the November 3, 2026 ballot. This comes as the city looks to address its structural deficit – which they say is $320,000.
If approved, it would raise approximently $1 million annually.
According to the agenda, projections of the past ten years of actual and projected revenues and expenditures, staff estimates that the structural deficit in FY2028 will be over $550,000, and by FY2032 that structural deficit will be over $1,180,000. Funds in the reserves would be used to cover these structural deficits. The reserves would be at or just below the current reserve policy limit by FY2031 and the City would face a financial cliff that would likely include service-level reductions.
The city says it has budgeted $10,000 for election services in FY2027.
The question to voters:
“CITY OF CLAYTON SALES TAX MEASURE.
To provide local funding to maintain City of Clayton programs, services, and facilities, including: police services, traffic enforcement and road safety, road and sidewalk improvements, enhance library and recreation opportunities, park maintenance, recruitment and retention of city employees and other city services, shall the City of Clayton levy a 1% sales tax until ended by voters generating approximately $1,000,000 annually, subject to public review, the annual audit and all funds benefiting Clayton?
This fall, Mayor Jeff Wan and Councilmember Kim Trupiano are up for election.
The City Council directed staff on May 19, 2026, to prepare legislative actions to place a 1% Transaction and Use (Sales) Tax on the
November ballot. Outside analysts estimate the City would generate an additional $1.1 million a year from this type of tax.
If You Go
Clayton City Council Meeting
Tuesday, June 16, 2026
7:00 pm
Agenda – click here
