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Council approves utility-rate ordinance after debate over storm-drain funding and MS4 requirements
Summary
Perry City adopted Ordinance 26-l on June 25, 2026, updating water, sewer, storm-drain and garbage rates effective July 1. Council deliberated options for storm-drain funding amid MS4 regulatory requirements and discussed timing and scale of increases.
Perry City Council on Thursday adopted Ordinance 26-l, setting updated utility rates to take effect July 1, 2026, after a discussion about enterprise fund health, stormwater regulatory obligations and rate design.
Finance staff presented the enterprise fund projections: the water fund reflects a planned 15% increase driven by operational and capital needs and a multi-year rate plan; the sewer fund shows changes tied to depreciation and a projected net cash position; and the storm-drain fund faces a projected operating loss (staff cited roughly $52,002.88 before depreciation). Staff stressed the city must demonstrate a dedicated revenue stream to meet stormwater (MS4) inspection, maintenance and reporting requirements.
On the regulatory context, an agency representative explained the federal framework and state implementation: "The federal law mandates you have a revenue stream, and so this is a federal mandate for this fee that you put in," noting state agencies administer MS4 requirements locally. Public-works staff described recurring compliance tasks including street sweeping and post-storm inspections that drive significant annual costs.
Council debated narrowly targeted increases (an example cited was a 12¢ bump) versus a larger, simpler adjustment (for example $1), and the possibility of adding an automatic escalation mechanism. One council member asked whether the city has a capital master plan for storm-drain projects; staff said the city maintains a capital facilities plan that includes impact-fee methodology but noted it may need updating.
After discussion, council adopted the ordinance with the chosen effective date of July 1, 2026, and directed staff to prepare the July billing file and publish the new rate schedule. Staff noted the city can revisit rates outside the budget cycle if conditions warrant.
The vote was unanimous.
