Council debates stormwater MS4 costs and choices on utility-rate increases

Perry City council members spent significant time June 25 examining stormwater (MS4) obligations and how those regulatory duties affect the city’s utility rates and capital planning.

Staff noted the storm drain fund is projecting an operating shortfall of about $52,002.88 including depreciation (roughly $19,798 excluding depreciation). Options presented ranged from a modest 12¢-per-customer bump (a proposed 2% change) to roughly $1 per customer to close the shortfall. Staff said the stormwater program requires recurring activities—annual street sweeping, inspections, monitoring, and detention-basin maintenance—that drive personnel and contract costs. One staff member explained the city now meets an MS4 threshold administered at the state level (DEQ) under the federal Clean Water Act, requiring routine inspection and outfall monitoring.

Council members asked how much of the storm drain obligation is capital (impact-fee-funded) versus operations and whether impact fees can be used for repair and replacement; staff explained impact fees are restricted to capacity and growth-related work and that some restricted funds provide cash when included. Council asked staff to pull the capital facilities plan for storm drain to better assess large project timing and to consider designing any rate increase with a logical rationale rather than an arbitrary flat amount. Several council members emphasized the option to raise rates later if needed rather than locking a larger immediate increase into the ordinance.

The council ultimately adopted Ordinance 26‑L setting utility rates with an effective date of July 1, 2026, and directed staff to return with a capital/facilities plan and further analysis around impact-fee use and reserve structure.