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Perry City council accepts tentative budget including proposed 13.33% property-tax increase; hearing set for Aug. 11
Summary
Perry City accepted receipt of a tentative FY2026–27 budget that includes a proposed property‑tax rate increase estimated to generate about $164,354 (roughly 13.33%). The council set a public tax hearing for Aug. 11, 2026, at 7:15 p.m. and staff said department funding decisions depend on the final certified rate.
Perry City officials on May 14 accepted a tentative fiscal year 2026–27 budget that includes a proposed municipal property‑tax rate increase staff estimated would raise roughly $164,354, or about 13.33% compared with the city’s current certified rate. The council voted unanimously to accept the tentative budget and set a truth‑in‑taxation hearing for Aug. 11, 2026, at 7:15 p.m., subject to county and state approval.
The proposed change would move Perry’s municipal rate from about 0.001801 to an estimated 0.002041. Shanna Johnson, the staff member presenting the budget, showed an impact schedule to illustrate how the additional revenue would be allocated. She said the increase would generate an estimated $164,003.54 in new city revenue and that the average primary residence in Perry would see an annual city‑share increase of about $60. "The proposed tax increase will generate approximately $164,354 in additional revenue," Johnson said during the presentation.
Johnson told the council the packet lays out department impacts if the council adopts the proposed rate: police would receive $28,600 for a competitive pay schedule and enhanced IT support, administration $10,754 for IT and legal needs, and a $125,000 increase in the fire line is included to fund a contract increase. She warned that if the council does not approve increased property‑tax revenue, certain items — notably the fire contract — could not be fully funded. "If the property tax increase was not funded ... the fire contract fee cannot be fully funded, which would result in a loss of fire services," she said as the council reviewed the impact schedule.
Council members asked staff to be precise about assumptions in the impact schedule. Johnson said she used last year’s rates with a 2% growth assumption to estimate revenues and that final certified valuations and the county’s certified tax rate could change the net need. She also said the council may choose to accept the certified tax rate (if it covers the city’s needs) and cancel the public hearing.
The council’s motion to accept the tentative budget passed unanimously. The council then approved Resolution 2026‑08 to schedule the required public hearing on Aug. 11, 2026, at 7:15 p.m.; staff will submit the hearing date to the county and the state tax commission for final approval. Staff noted changes to the budget can be made up to the point the council adopts a certified tax rate.
