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City manager outlines modest user-fee increases, transfers and proposed payoff of grader lease in FY27 review
Summary
City Manager Heidi told the Philadelphia City Council work session on March 23, 2026, that the administration recommends a 1.5% wage and user-fee increase, transfers into the Major Maintenance and Repair Fund, and paying off a grader lease (~$124,000) to reduce debt service; council asked for follow-up on timing and fee-schedule options.
City Manager Heidi told the Philadelphia City Council work session March 23 that administration plans only modest changes to special-revenue funds in fiscal 2027, recommending a 1.5% across-the-board step increase for wages and a 1.5% increase in user fees tied to the February 2026 Anchorage consumer-price index.
Heidi said those adjustments are intended to keep user-funded accounts (water, sewer, dock/harbor, boat haul-out, senior meals and volunteer fire/EMS) roughly in balance while preserving capital reserves. "We're recommending a 1 and a half percent increase on user fees, as well per the 2/20/26 February Anchorage consumer price index," she said.
The administration proposed targeted transfers into the Major Maintenance and Repair Fund (MMRF) when funds meet the operating-balance target. Heidi recommended transfers of about $12,641 from the sewer fund and $28,862 from the water fund into the MMRF to support capital work and unanticipated repairs. She said the consolidated MMRF would total roughly $274,852.67 under the current restructuring of small liability accounts.
To lower annual debt service, the city manager also recommended paying off the road/grader lease this fiscal year with a transfer of about $124,000. She said the payoff would cut roughly $51,000 a year in scheduled payments and save approximately $13,000 in interest over time, freeing funds for other public-works projects. "The benefits include relieving some of the assigned funds payable to the general fund and annual general fund expenditures," Heidi said when presenting the payoff case.
Council members questioned priorities, with some urging payoff to reduce interest costs and others urging investment in long-term capital such as a maintenance facility for equipment. Heidi said she would bring capital-project scenarios and the cash-flow management policy back to council for a fuller discussion.
There were no formal votes at the work session. The administration said it will return with a draft fee schedule and the capital-budget packet in a future meeting for council action.
