Clayton Budget Proposal Calls For Utility Rate Hikes, Staff Expansion, No Property Tax Increase

CLAYTON, N.C. — Residents in Clayton could soon pay more for water, sewer, electric and solid waste services under the Town of Clayton’s proposed 2026-2027 fiscal year budget, even as town leaders recommend no increase to the property tax rate.

The proposed budget totals approximately $140.25 million. Town officials released the spending plan ahead of a public hearing scheduled for May 18.

Under the proposal, Clayton’s property tax rate would remain unchanged at 49 cents per $100 valuation. However, several fee increases are recommended, including:

• An 8.3% increase in combined water and sewer rates
• A 2.5% increase in residential electric rates
• A $2 per month increase in solid waste collection fees

Town officials said the increases are tied largely to rising wholesale water and power costs, increased solid waste contract expenses and fuel-related surcharges.

The budget proposal also includes a 3 percent cost-of-living adjustment for employees. Town officials said the increase aligns closely with average salary adjustments being provided by municipalities across North Carolina.

One of the largest components of the recommended budget is personnel growth as the town continues to expand.

The proposed budget includes 18 new full-time positions and four new part-time positions across multiple departments.

Overall, the town projects a workforce of approximately 370 full-time equivalent positions for the new fiscal year beginning July 1, 2026.

The proposed budget also includes continued investment in several major infrastructure and capital projects, including expansion of the Sam’s Branch Water Reclamation Facility, construction of a new elevated water storage tank in West Clayton and development of the future Southwest Public Safety Center for police and fire operations.

Officials said the recommended budget attempts to balance rapid growth, infrastructure needs and increasing operating costs without raising property taxes on residents.

A public hearing on the budget is scheduled for 6 p.m. May 18 at Clayton Town Hall. Town Council is tentatively scheduled to consider adoption of the budget June 1.