The Clayton Board of Aldermen convened on September 9, 2025, to address key financial matters, primarily focusing on the annual property tax levies. The meeting commenced with a public hearing regarding the proposed tax rates, a necessary step for the city to submit its levies to St. Louis County for billing.

City officials highlighted that 2025 is a reassessment year, resulting in significant changes in assessed property values. Notably, residential assessed values increased by over $12.3 million, while commercial assessed values rose by more than $28.1 million. Despite these increases, the city is limited by the maximum voter-approved tax levy rate, which allows for additional revenue growth capped at either 5% or the Consumer Price Index (CPI), which for this year is set at 2.9%.

The finance director presented a detailed breakdown of the expected revenue increases. The general fund anticipates an increase of approximately $297,000 from new construction and about $198,000 from reassessment, reflecting the constraints imposed by the CPI cap. This means that while property valuations have risen significantly, the actual revenue growth for the city remains modest.

The proposed tax rates were discussed, revealing a slight decrease in the combined residential rate by 4 cents, bringing it to 60.7 cents per $100 of assessed value. The commercial property rate will see a decrease of approximately 1.3 cents, totaling just over 71 cents. Personal property taxes will remain nearly flat at 89 cents.

Additionally, properties within the special business district, which funds local economic development initiatives, will incur an additional assessment of about 10 cents, resulting in a combined rate of 71 cents for residential and 81 cents for commercial properties in that area.

The meeting also touched on the historical context of the city's property tax rates, noting a significant decline in the general revenue rate, which has dropped to 45.4 cents in 2025 from around 90 to 95 cents approved by voters in 1995. This decline reflects the impact of the Hancock amendment and ongoing valuation changes over the past three decades.

Following the public hearing, the board will proceed with the first reading of the ordinance, with staff recommending approval of the proposed tax rates. The meeting underscored the challenges faced by the city in balancing property tax levies with the need for revenue amidst rising property values.