Perry council approves multi-part utility rate package, including large water increases and new billing fee

The Perry City Council on Tuesday approved a package of ordinances that raise water, sewer and electric rates and add a $2 administrative fee to utility bills.

The package, brought after two town-hall meetings and months of staff study, includes Ordinance No. 2024-22 (water rates), Ordinance No. 2024-21 (sanitary sewer rates), Ordinance No. 2024-25 (electric utility fee amendment), and Ordinance No. 2024-23 (a $2 administrative billing fee). Council also adopted implementing language for an updated average-billing program intended to give eligible customers a steadier monthly charge.

City Manager Nate presented staff financial modeling showing water operations currently running a substantial deficit and set out two broad approaches: (1) a phased three‑year schedule adopted on the agenda that spreads increases over time, and (2) a one-year ‘break-even’ approach that would have produced larger immediate increases on water rates. "We're $1,400,000 negative in water and sewer," Nate told the council while explaining why additional revenue is needed to keep day‑to‑day operations funded and to begin addressing a backlog of capital projects.

Residents at the meeting pressed the council on the local impact of higher bills. Felicia, who introduced herself during public comment, said she had compared Perry to nearby towns and urged councilmembers to re-examine internal spending before approving large rate increases: "This increase is going to affect them very negatively," she said, citing five‑year payments the city made to its city attorney and chief financial officer as examples she wanted reviewed.

Council discussion focused on how new revenue would be allocated between water projects, sewer operations, capital needs and possible staff merit increases. Staff emphasized that the ordinance package as adopted was structured to allow council oversight during implementation and to return to later meetings to adjust years two and three if needed. "We can look at where we're at, evaluate, and reassess," the presiding officer said.

Votes at a glance: - Ordinance 2024-22 (water rates): adopted; council set an effective timeframe discussed as Jan. 1 with publication/effective timing noted as Feb. 1 per the city code process. The council recorded roll-call votes during the meeting and approved the ordinance and its emergency clause. - Ordinance 2024-21 (sanitary sewer rates): adopted with emergency clause approved. - Ordinance 2024-25 (electric rates): adopted; the ordinance included a 4.62% increase for industrial electric customers as written and an emergency clause was approved. - Ordinance 2024-23 (administrative billing fee): adopted to add a $2 administrative fee per utility bill, with an emergency clause approved.

Staff and some councilmembers acknowledged the burden on residents on fixed incomes and urged targeted customer service and outreach: the average-billing program was modified to ease enrollment windows but preserves cash‑flow safeguards so the city does not carry large short-term receivables. Staff also reiterated that certain federal or state grants (if awarded) could offset capital costs but should not be relied on to fix recurring operational deficits.

The council directed staff to provide implementation schedules and regular updates on projects funded by the new revenue and left open future adjustments to the multi-year schedule based on the community response.

The ordinances were adopted on roll call during the meeting; details of who voted for or against each ordinance are recorded in the meeting minutes and the official roll-call transcript.