Council Cuts FY27 Deficit Nearly in Half, Confronts Years of Deferred Maintenance

Clayton's City Council spent nearly three hours wrestling with how to deploy limited reserves against a backlog of neglected infrastructure, a shrinking budget gap, and state housing mandates — setting the stage for pivotal spending decisions later this month.

• FY27 general fund deficit slashed from $670,000 to $345,000 through staff reorganization and supply cuts; Council weighs $2.7M in reserve-funded projects with formal approval deferred to April 21

• Police inventory exposes sweeping safety backlog: 143 unpainted curbs, 65 missing fire hydrant reflectors, 27+ damaged or missing signs, and years of deferred weed abatement

• HCD-required housing ordinance introduced 5-0 on first reading, adding "by right" affordable housing language to the zoning code — Clayton's third state-mandated amendment

• Retiring Fire Chief Lewis Broschard honored; announces new firefighting helicopter arriving May 1 and $18–20M regional dispatch center opening in June

• Resident calls out city transparency failures; staff confirms full website redesign is underway

$345K Deficit, $2.7M Wish List: Council Faces Hard Choices on Reserves

The basics: Clayton's general fund deficit for FY27 was reduced from roughly $670,000 to $345,000 through approximately $200,000 in salary and benefit savings from staff reorganization and about $160,000 in service and supply cuts. Revenue growth is slowing — property tax and sales tax growth rates are declining from approximately 3% to 2.6–2.7%.

Why it matters: With $6 million in reserves but no new major revenue sources, the Council's decisions on a $2.7 million menu of one-time projects will define Clayton's capital investment priorities for the next two years.

Where things stand: Staff presented a sprawling list of potential reserve-funded requests, including a $100,000 sidewalk safety program, $125,000 in exterior building paint, up to $500,000 for expanding baseball fields at Clayton Community Park (with a Little League partnership offering sweat equity), $46,000 for a five-year park camera contract at Grove and CCP, $32,000 in police tech and safety equipment, an emergency operations plan update, $18,000 for GIS data organization, and $8,000 in Endeavor Hall signage. Ongoing requests included a library hour expansion ($70,000–$230,000 depending on hours added), a consolidated Axon body-worn camera/fleet camera/taser contract at roughly $38,000 per year locked for 10 years, and $6,000 per year for permit tracking software.

"The overall financial position remains really sound and really stable here in Clayton. We're actually very insulated from a lot of what's happening in other jurisdictions," said Dennis Buzanek, Clayton staff.

Mayor Jeff Wan recommended isolating one-time reserve-funded projects from the general fund so the public can distinguish them from regular operations. He also raised a pointed liability question about the sidewalk safety study:

"If you have a known issue and you do not take action, it's a lot different than if you have an unknown issue and do not take action."

The other side: Councilmember Holly Tillman pushed back firmly on any hesitation around safety spending:

"Not doing something is not an option for me. We have to do this."

Vice Mayor Richard Enea offered a counterpoint on both the deficit and the sidewalk liability concern. He noted a roughly $300,000 Climatech federal rebate headed to the city could nearly offset the FY27 gap. On sidewalks, Enea drew on his experience as a former councilmember elsewhere, recalling that a prioritized sidewalk assessment helped defend against a liability claim:

"The attorney came to the city and said this. And we showed them the list that's prioritized by this company. And if you want to take us to court, go ahead."

Councilmember Kim Trupiano steered the library discussion, arguing the exterior paint money should be redirected to interior renovation phases 2–3 and cautioning that expanded library hours need a sustainable revenue source:

"To use the reserves, we need an ongoing funding source. And to me that's almost better use with our 1% sales tax that we've been talking about so that it's sustainable."

Public commenter Keith Hayden urged the Council to prioritize and fund an emergency evacuation plan, citing lessons from the Paradise and Santa Rosa wildfires and emphasizing the need for cross-jurisdictional coordination with fire, police, and neighboring communities.

Decisions: No formal vote was taken. Council gave general direction supporting most items, redirected library paint to interior renovation, and deferred formal budget approval to April 21 with corrected year-end numbers.

What's next: The Council is expected to take formal action on the FY27 budget and reserve-funded projects at the April 21 meeting.

Police Inventory Reveals Massive Safety Backlog; Council Demands Accountability

Why it matters: A police department-led inventory uncovered 143 segments of curb needing repainting, 12 street signs needing replacement, 38 segments of bots dots (reflective road markers), 65 missing blue fire hydrant reflectors, 15 faded or nonexistent roadway markings, and 17 damaged regulatory signs — all classified as safety deficiencies resulting from years of neglect.

Where things stand: City Manager Kris Lofthus was blunt about the scope of the problem:

"This didn't happen in the last three months. This has been neglected items for years. And we recognize that and we are doing our best to correct the issues."

On weed abatement, the city has one contractor working Clayton Road to Fire Station 11, with Marsh Creek, Oakhurst trails, and Peacock Creek still outstanding — all under a ConFire June 1 deadline. Peacock Creek irrigation, which had been shut off without repair in the past, has been fully replaced and dead vegetation removed. Grove Park received praise from Vice Mayor Richard Enea for tree trimming, grass replacement, and a planned concrete pour for bare areas.

Capital projects at 90% design include downtown pedestrian improvements — rapid flashing beacons, a raised tabletop intersection at Main and Marsh Creek Road, and a raised crosswalk. The Four Oaks Lane to Pine Hollow ADA-accessible pathway is at 60% design with an estimated $200,000 cost.

Mayor Jeff Wan called it "precisely the type of project where it is completely appropriate to use one-time fund because it creates a sidewalk that is ADA accessible."

Paving project design is complete for eight road segments — Marsh Creek between El Molino and Clayton Road, Mount Aire Parkway (with a road diet adding bike lanes), Herman Drive, Mitchell Canyon Road, Eagle Peak, Oakhurst, East El Portal, and Main Street between Oak and Marsh Creek. Bid release is targeted for mid-May with Council approval sought June 2 for fall 2026 completion. If bids come in under budget, additional segments may be added. The city also approved a $50,000 pothole repair contract, replacing what staff described as the previous practice of buying cold patch at a hardware store.

Enea pushed for upgrading Clayton's faded street signs to reflective materials:

"Those colors are terrible. They fade. I know why they did it. They wanted to make the town western. It's not western anymore."

Wan pressed repeatedly for a comprehensive master work plan:

"Everything on a list means nothing gets missed."

Lofthus also announced a 311 resident reporting system is ready to launch:

"We will have a workflow. Those are items that when they come in, they will be trackable. They will be assigned to a staff person, that staff person will then report when they've completed the work."

What's next: Council directed staff to produce a master work plan with inventory, dates, and costs. The paving project bid release is targeted for mid-May. Weed abatement must be completed by ConFire's June 1 deadline.

Third Time's the Charm? Council Introduces Another HCD-Required Housing Fix

The basics: The Council unanimously introduced an ordinance amending Clayton Municipal Code Section 17.36.079, as recommended by Planning Commission Resolution 04-2026. The three changes, dictated by the state Department of Housing and Community Development, require: (1) housing element opportunity sites accommodating RHNA shortfalls must allow by-right development when at least 20% of homes are affordable; (2) rezone requirements prevail where base zones have lower densities than required minimums; (3) the term "by right" — meaning exempt from CEQA review — must be explicitly defined in the code.

Why it matters: This is the third amendment HCD has required since Clayton adopted its housing element in 2024. Failure to comply risks the city losing local zoning control.

Councilmember Jim Diaz expressed sharp frustration:

"When I was up at the League of California Cities meeting in Sacramento, I must have talked to at least a dozen city representatives, all had their plans approved. Is there a gremlin up there that doesn't like Clayton?"

Mayor Jeff Wan clarified that the by-right provision only triggers when there is a RHNA lower-income housing shortfall. Vice Mayor Richard Enea asked whether converting existing apartments, such as Diamond Terrace, to affordable units would count — staff confirmed the 570-unit RHNA requires new housing construction.

Decisions: Approved 5-0 on first reading (For: Diaz, Tillman, Trupiano, Enea, Wan; Against: none; Absent: none). A second reading is required before final adoption and submission to HCD.

Retiring Fire Chief Honored; New Helicopter and Dispatch Center on the Way

The Council presented a proclamation honoring retiring Contra Costa County Fire Protection District Chief Lewis Broschard for 18-plus years of service. Key achievements included the annexation of East Contra Costa and Rodeo-Hercules fire districts, reinstitution of Fire Station 11 in Clayton, creation of a firefighting hand crew and seasonal helicopter program, and achieving a uniform ISO Class 2/2Y rating.

Broschard noted the strategic shift Clayton experienced:

"It used to be that Clayton was sort of the end of the tracks for ConFire and you were at the end of our network. And now you're kind of in the middle of our network with the annexation of East Contra Costa Fire."

He also announced two major upgrades:

1. A brand new helicopter arriving May 1. It will deploy from Byron with faster speed and more water capacity.

2. A state-of-the-art communications center costing $18–20 million is opening in June to dispatch ambulances and fire apparatus throughout most of Contra Costa County.

Broschard officially retired March 30 but returned within a week as a retired annuitant. He noted the upcoming 25th anniversary of the Sept. 11 memorial at Fire Station 11.

Minor Items

• Consent calendar approved 5-0 after items C, D, E, and F were pulled for discussion and returned. Items included the housing element annual progress report and other routine approvals.

• NBS fee study contract extended by $42,000 to conduct a comprehensive fee study alongside the existing $18,000 cost allocation plan. Staff said some fees lack legal nexus under Prop 218, risking legal challenge. Staffer Dennis Buzanek explained: "The separation under Prop 218 between a fee and a tax is really an important component to this." The cost allocation plan is also expected to redirect staff-time charges from the general fund to special districts like the Landscape Maintenance District.

• Stormwater assessment renewed at $29 per equivalent residential unit — the capped statutory maximum. Staff explained the NPDES system under the Clean Water Act and the dual sewer/stormwater pipe infrastructure. Mercury contamination in west Contra Costa County was flagged as an emerging concern for Project Clean Water.

• Red Cross proclamation: The Council proclaimed March 2026 as American Red Cross Month. Justin Mueller, regional CEO of the American Red Cross Northern California Coastal Region, accepted the proclamation, noting volunteers responded to 101 disasters in Contra Costa County, installed 778 smoke alarms, and trained over 12,000 residents in first aid.

• Public works director hiring update: City Manager Kris Lofthus reported 57 applications received with eight candidates advancing to interviews for the long-vacant position.

• Resident Gabriel Flores criticized declining transparency, calling the city website search "almost useless" and saying he was forced to watch hours of video to understand council votes. Councilmember Trupiano asked staff to inform Flores about the website redesign underway.