Perry council tables proposed multi‑year utility rate increases after extended debate

The Perry City Council on Monday paused action on a set of proposed utility rate ordinances after more than two hours of staff presentations, council questioning and public concern about affordability.

City Manager Nate Reid presented a spreadsheet modeling several three‑year scenarios designed to “catch up” revenue the city said it missed over past years. One example would raise residential rates by 35% in year one, then 20% and 15% in subsequent years; commercial and industrial increases in some scenarios were higher. Reid told the council the staged approach would allow the city to begin capital projects and restore utilities to a sustainable position without one immediate large spike.

Supporters said the phased increases would produce roughly $900,000–$975,000 in the first year — money staff say is needed to begin repairs on deteriorated water and sewer infrastructure. “This would put us in a place to get started in year 1, particularly on those water projects,” Reid said.

Opponents and several councilmembers urged more clarity and protections for low‑income residents. Councilmembers raised questions about how many residential households could be harmed, whether churches and nonprofit helpers would be treated as commercial customers, and whether industrial rate increases might push local employers to seek power from another provider. On affordability, staff pointed to existing programs and agreed to explore loosening enrollment rules for the city’s average‑billing option and other assistance measures.

Several councilmembers also discussed an alternative: placing a local sales tax on the ballot. Staff said a one‑cent sales tax could raise about $600,000 a year but noted voters have rejected similar measures in the past and that adding the tax would make Perry one of the higher‑taxed cities in Oklahoma.

After debate, a councilmember moved to table item 10 (all proposed utility ordinances) until the next meeting so staff can return with a firm proposal, additional communications material and recommended affordability changes. The motion passed on a roll‑call vote recorded as seven in favor and two opposed.

What’s next: Staff will return with a refined written proposal and suggested program changes for average billing and customer assistance; the council indicated it expects to revisit the package at its next meeting with the goal of implementing any adopted changes on Jan. 1 if approved.

Vote: Motion to table all items under Item 10, passed by roll call (7 yes, 2 no).