On Tuesday, the Clayton City Council voted to approve placing a 1% sales tax on the November Ballot.
The unanimous votes, the city hopes with voter approval, they can raise a little over $1 million a year to address both the structural deficit and begin making improvement across the city.
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.
Councilmember Kim Trupiano expressed concerns that they were imitating a sales tax simply to address structural deficits or actually use some of the money for some of the projects. She asked the city manager to reiterate what he had told her earlier in the day.
City Manager Kris Lofthus explained in simple math, if they have a $400k deficit and raise $1 million, that is $600k for the council to spend as they wish on projects – sidewalks, streets, improvements to parks.
“We know we have a very long list of deferred maintenance whether its facilities, roadways, parks, irrigations, in a variety of different areas. There is more work than money at this point, and things we haven’t addressed” said Lofthus. “We want to invest in those and this is the opportunity to do them. Without this, there is no investment in a large scale.”
Lofthus used the library improvements as an example noting it’s a three-phase approach and they can only barely fund Phase 1. Phase 2 and Phase 3, they were not touching but this would give them the opportunity to do, as well as increase library hours.
He also referred to the council “wish list” stating each councilmember has a list of items they wish thy could get done but there is no money.
He also shared that each year the expenditures are growing faster than revenue—they don’t have the revenue to bring the gap closure. He also said they are a single point of failure noting many of the departments are 1 person.
“A lot of cities can cut there way out of a deficit. We are not overspent, we are not over paid, we are not at the top mark for salaries, benefits, no. We recognize we are not going to cut our way out of this. We don’t have a spending problem, we have a revenue problem,” stated Lofthus. “Clayton wants to be Clayton and not have commercial retail and all those things, we are very limited in how we create that new revenue.”
He also said later this year, they will host forums with the community to see where they would want to invest the funds—they want the community input before decisions on spendings were made if the tax passes, the community would set the priorities.
Vice Mayor Richard Enea reminded the public that it was important to remember the Clayton had never asked the residents for a tax increase in 62-years they have been a city.
“We are not asking for more than other cities, this tax increase would be in line with all the other cities that people shop at,” said Enea.
After public comments, which one person supported the sales tax to assist with the library, the council took to discussion.
Mayor Jeff Wan stated the residents want a level of service that is unsustainable with the level of revenue they receive.
“If the residents want to continue that level of service, then I think it’s appropriate that they have the option to yay or nay to that,” said Wan. “We are here to represent them and give them that choice… it is clear that if we do not take action here, the level of service that we have become accustomed to will need to be modified and the expectation will need to change.”
The council then voted in a 5-0 vote to place a sales tax on the November ballot.
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.
For the agenda and more information, click here
