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Perry council approves certified tax rate and adopts budget measures after debates on police pay and server funding
Summary
On June 11, Perry City Council voted unanimously to adopt the certified tax rate (0.001859) for FY2027 and to advance budget work, after staff outlined a proposed higher rate that would have generated an extra $164,054 for police pay, IT and a fire contract. Council favored using fund balance and compensation changes instead of an immediate tax increase.
Perry — The Perry City Council voted unanimously June 11 to adopt the city’s certified property-tax rate for fiscal year 2027, choosing not to move forward immediately with a proposed higher rate that would have triggered a Truth in Taxation hearing this summer.
City finance staff presented two options: keep the certified rate at 0.001859 (projected revenue about $1,160,102) or adopt a proposed rate of 0.002122 that staff said would generate an additional $164,054 and require public hearings. “This would generate an additional $164,054,” staff said during the meeting while outlining how the extra money would be earmarked.
Why it mattered: the additional revenue would have been allocated largely to public safety and technology — staff broke the $164,054 example into about $28,600 toward police compensation/IT support, $10,454 for administration IT and legal counsel, and $125,000 to cover an announced fire-contract increase. Supporters of the proposed rate said it would close a shortfall without deep cuts to services; critics pointed to the city’s savings and urged alternatives.
How council debated it: several council members pressed staff on options that would avoid a tax hike, including using fund balance to pay for a $70,091 server upgrade and adjusting proposed compensation items. One councilor summarized the tension: “I don’t know that I’m convinced we need the property tax increase,” while staff explained tradeoffs between lowering the proposed rate and preserving capital savings.
Compensation and staffing were central to the decision. The police chief and council discussed the department’s staffing model and a proposal to leave the authorized headcount at eight officers rather than the previously approved nine; staff said reworking pay increases into bonuses and trimming some retirement pickups could yield roughly $103,675 to $122,298 in savings — amounts large enough to reduce or remove the need for a tax increase.
Council’s action and next steps: after discussion the council approved resolution 2026-10 adopting the certified tax rate (0.001859) by unanimous roll call. Because the certified rate was adopted, the council avoided immediately triggering a Truth in Taxation hearing; staff will bring a budget amendment to the next meeting to reflect any changes the council directs, and the council reserved the right to revisit taxes before the final budget deadline if conditions change.
Quotes and context: Shanna, the staff budget presenter, said the proposed rate and budget packet were intended to show officials “how the city’s operation would be affected if the property tax remains the same” and laid out how the proposed $164,054 would be distributed. Multiple council members advocated using creative budget tools and fund balance as a first resort, rather than defaulting to a property tax increase.
What’s next: staff will prepare a formal budget amendment for the council’s June 25 meeting reflecting the council’s direction on compensation pickups, the server procurement, and capital transfers. The council can still elect a proposed tax rate later this summer (which would trigger a public tax hearing) but will not do so unless it chooses to revise today’s action.
