Town of Clayton workshop moves to formalize planning and zoning fund as UDO costs rise

The budget workshop for the Town of Clayton on July 9 moved to formalize a planning and zoning fund to cover ongoing UDO work and related planning expenses. Chair opened the meeting by saying the group would "continue talking about our budget for 2027," and members focused on where to place a previously budgeted $25,000 and how to sustain future payments to planners.

Staff and council members noted that fund 1318 had been used previously for planning work in the gateway system and that a new planning and zoning appropriation was created after guidance from the Department of Local Government Finance (DLGF). "We created planning zone that's 2240," a staff member said while explaining subaccounts for admin, salaries and miscellaneous expenses. Participants also referenced House Enrolled Act 10001 as increasing scrutiny of building and planning activity.

The group discussed funding mechanisms after concluding that permit revenues alone would not cover the town's ambitions. Council members used sample calculations — including diverting modest percentages of property tax (examples discussed included 5% and 15%) — to illustrate how the new fund could be capitalized. One participant estimated that taking 5% of a recent monthly amount would yield roughly $5,000; a 15% diversion was calculated to produce a larger, but still limited, annual contribution.

On program costs, staff and a council member said completing an adoptable, comprehensive UDO would likely run about $30,000–$35,000 but that some work could be done internally to reduce consultant fees. The transcript identified planner Mary Stradder as the contractor who would bill the town for UDO work; staff advised using the planning fund (fund 1318) to pay her invoices. Members discussed whether planning salaries should be paid from the new fund or the general fund and agreed to structure the planning fund with subcategories for salaries and administration.

The meeting concluded with a plan to draft an ordinance creating the fund and to bring refined budget numbers back to the council. No formal vote was taken during the workshop.