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Perry adopts FY 2026-27 budget; council directs absorption of employee-only insurance increase and applies 3.3% CPI
Summary
Council approved the FY 2026-27 budget and related authority budgets, instructed staff to reflect March CPI (3.3%) in utility rates, and directed administration to absorb the incremental employee-only health insurance cost this year while pursuing further insurance evaluation before next budget cycle.
Perry — After an extended public discussion and a council motion to amend the proposal, the Perry City Council approved the FY 2026-27 budget and directed staff to incorporate a 3.3% CPI adjustment and to absorb the increased employer cost for employee-only health insurance.
Staff presented April financials and the proposed budget showing a small net loss under conservative revenue assumptions but a break-even position if taxes meet or exceed projections. The city manager and CFO explained insurance renewals were challenging this year: an initial carrier proposal increased premiums by 22%, brokers negotiated that down to about 12%, and staff offered employees three enrollment options, including a high-deductible HSA plan (kept free for employee-only coverage with employer HSA contribution) and an incentive to enroll on a spouse’s plan.
Council members debated alternatives including eating the cost from reserves, shifting capital priorities, or encouraging employees toward HSA/marketplace options. By motion the council directed administration to: apply the March CPI (3.3%) in the budget calculations, absorb the incremental employee-only insurance cost so employees will not pay the additional monthly charge this year, and begin a comprehensive insurance evaluation prior to next year’s enrollment period.
The council also approved related resolutions for the Perry Municipal Authority (Resolution 2026-02) and the Perry Facilities Authority (Resolution 2026-01) consistent with the city budget directives.
What happens next: Administration will update the budget documents to reflect the 3.3% CPI and the council’s insurance direction, notify employees of the council decision regarding the employee-only subsidy, and continue negotiating or evaluating alternative insurance options for future years.
Authorities and actions: Resolution 2026-08 (city budget adoption) was approved with the stated conditions; Perry Municipal Authority Resolution 2026-02 and Perry Facilities Authority Resolution 2026-01 were approved with the same stipulations.
