Calendar year 2016 is not a reassessment year. The City is allowed to receive additional revenue up to the Consumer Price Index (CPI) which was only 0.7% for this year, and for the value of new construction which was up this year. The property tax levy process is somewhat complex in that as assessments increase the City is not allowed to gain any more revenue. Therefore the maximum tax rates we are allowed to levy actually lower or “roll back” to generate no more revenue than the past year. The only ability to gain revenue is through growth in the CPI, new construction, and through recoupment of taxes from successful protests that have been resolved in the past year. The City is addressing the recoupment process this year due to the significant revenue lost through successful protests over the past few years. In each year, the City is allowed to “recoup” the lost revenue which was due to assessed valuation reduction through the protests adjudicated by the Missouri State Tax Commission. The City is allowed to increase the levies to generate the revenue lost in the last year only. The Clayton School District has used this recoupment process for several years. This recoupment process is the only method for the City to receive the amount of taxes that has been refunded to property owners in the last year through the protest process.

The Clayton School District has used this recoupment process for several years. This recoupment process is the only method for the City to receive the amount of taxes that has been refunded to property owners in the last year through the protest process. Thus the City’s maximum levies this year are projected to generate the amount of revenue from the previous year, plus CPI and revenue related to new construction, plus the recoupment process we are incorporating this year. These levies as presented are subject to change by the Board of Equalization and through the Missouri State Auditor’s certification process, therefore there is the potential for them to change slightly when they are presented to the Board for final passage. In response to Mayor Sanger’s question if someone is successful in getting a property tax reduction than that reduction is spread across the city to everyone else as in increase to make up for that loss. Ms. Watson confirmed, yes. In response to Alderman Boulton’s question, Ms. Watson also confirmed that this would be the first time that the City will go through the recoupment process and added that the City has had a significant loss (tax) in the last three years. In response to Alderman Lintz’ question, Ms. Watson stated that the City could recoup approximately $450,000, which the numbers could change pending the State auditor’s review.

Alderman Garnholz introduced Bill No. 6572, an Ordinance Levying and Establishing the Rate of Annual Taxes for General Municipal Purposes; Police Building Debt Service; General Obligation Debt Service; and, Special Business District Purposes to be Collected by the City Of Clayton, Missouri, for the Year 2016 to be read for the first time by title only. Alderman Winings seconded. City Attorney O’Keefe reads Bill No. 6572, an Ordinance Levying and Establishing the Rate of Annual Taxes for General Municipal Purposes; Police Building Debt Service; General Obligation Debt Service; and, Special Business District Purposes to be Collected by the City Of Clayton, Missouri, for the Year 2016 to be read for the first time by title only. The motion passed unanimously on a voice vote. AN ORDINANCE TO CONSIDER APPROVING THE PROPOSED FY2017 OPERATING AND CAPITAL IMPROVEMENTS BUDGET AND TO HOLD A PUBLIC HEARING – 1ST READING

Mayor Sanger opened the public hearing and requested proof of publication. City Manager Owens reported that on July 1st, the Board of Aldermen received the City Manager’s proposed Fiscal Year 2017 Operating and Capital Improvements Budget. As part of the budget process, the Board is required to hold a public hearing to seek public input prior to formal budget adoption. Janet Watson reported that there are a few changes to the proposed budget and they are summarized on the attached reconciliation.

As part of the budget process, the Board is required to hold a public hearing to seek public input prior to formal budget adoption. Janet Watson reported that there are a few changes to the proposed budget and they are summarized on the attached reconciliation. In the General Fund, we have adjusted the budget for additional plan review services, the new parking system costs and related revenue, added revenue from a lease agreement, and have moved the Emerald Ash Borer injections from FY 2016 to FY 2017. These changes created a small deficit of less than $11,000 in the General Fund, therefore to provide a balanced budget we have reduced the ERF contribution from the General Fund by $11,000. To keep the ERF fully funded we have reallocated $11,000 of property proceeds from the Capital Improvement Fund to the ERF. Regarding capital items, the parking control vehicle purchases have been adjusted by year, and three bond-funded capital projects and a sidewalk project have been revised either due to final bid results, combining projects or timing. We believe the proposed budget maintains the extraordinary level and proficiency of service that has been expected by our residents and traditionally provided by the City. The Board of Aldermen has studied this proposed budget and the public has had opportunity for input. Recommendation is to conduct a public hearing and adopt the Fiscal Year 2017 Operating and Capital Improvements Budget as presented in the proposed budget, adjusted by the reconciliation attached to this ordinance.