Perry City staff recommend phased $8,435 sewer connection fee; council to seek delay on vote

Perry City finance staff on Monday told the council a proposed sewer connection charge of $8,435 per equivalent residential unit (ERU) was the result of a year-long rate study and a project-cost allocation model, and recommended the city phase the fee in over two years.

Mr. Worththington, representing the finance department, said the new wastewater treatment plant has 2.5 million gallons per day capacity and that 61.8% of that capacity (about 1.545 million gallons per day) is allocated to new customers. Using an ERU defined as 285 gallons per day, staff calculated roughly 5,421 ERUs and arrived at a per-ERU connection fee of $8,435 by dividing the $45.7 million in capital allocated to new growth by that ERU count. He summarized the staff implementation proposal as a 50% phase-in on Jan. 1, 2026 ($4,218 per ERU) and full implementation on Jan. 1, 2027.

The finance presentation included the principal cost of the treatment plant as $73,992,239; staff stated that figure represents principal only and that borrowing-interest totals are modeled but were not on hand during the session. Mr. Worththington said all fee revenue would be placed in a restricted account and used exclusively to pay the portion of system debt allocated to new growth, and that irrigation meters would not be charged because they do not feed the sewer system.

During public comment, resident Lee Winggate said the proposal felt like an impact fee rather than a connection fee and warned it would harm affordability, stating: "you're trying to introduce a 8435 impact fee. That is be the largest impact fee throughout the whole state of Georgia." Council members and developers' representatives had previously expressed concern about the speed of implementation; staff said that feedback led to recommending the phased start and a later effective date.

Council members pressed staff for additional detail on how the 61.8% allocation was calculated, the interest cost and debt-service modeling, and the practical effects for existing ratepayers (staff noted roughly 8,800–9,000 existing sewer accounts exist). Given multiple council members were expected to be absent at the next meeting and because of public concerns, several council members supported requesting that the formal vote be postponed so the full council can participate.

Staff committed to provide the council with the interest modeling and annual reports on collections and usage of the restricted account. The council will ask at pre-consent tomorrow that the sewer connection fee be tabled pending the additional materials and broader council participation.

If adopted as proposed, the fee would apply to new domestic meters (a standard 3/4-inch residential meter = 1 ERU) and would stop being collected once the roughly 5,421 ERUs allocated to new growth have been used. The precise total borrowing cost (principal plus interest) was not provided in the session and will be supplied by staff on request.

Council did not take a final vote on the fee during the Nov. 17 work session; a formal action was deferred for further review and a request to table will be made in pre-consent.