Perry won’t see rate increases, but some city savings will go towards expenses

PERRY — There won’t be new rate increases for Perry, but the city will use their savings to cover expenses. On Tuesday, the Perry city council unanimously approved the fiscal year 2027 budget, which also included approval for no fee increases and additional fees. 

Assistant City Manager Mitchell Worthington said at the meeting that there will be no rate increases in the enterprise and general fund. There will also be no millage rate increase to property taxes. In 2025, the millage rate was 12.697.

At the end of Tuesday’s meeting, Mayor Randall Walker thanked staff and councilmembers for their work. He said it was an unusual budget cycle that required using their savings to balance the final budget. 

“This is not sustainable long-term. It would be my hope that the council and staff will be able to find ways to fully fund our budgets in the future without using any of our cash reserves,” he said. 

During council comments at the end of the meeting, Councilmember Amy Fouse said she realizes it is not ideal to dip into the city’s savings to keep rates from increasing, but she appreciates the hard work to avoid it. 

She suggests the city do a sustainability study in each of its funds for it to remain balanced, without implementing future rate and millage increases or repeated use of its savings. 

“Surrounding communities did not have the same approach to that as we did, and I think it was the right thing to do for the people in our area,” she said. 

According to the meeting agenda, the amount the city plans to spend throughout the year is about $65 million. Their revenues, the amount they expect to receive, are $63 million. 

Throughout the year, water and sewer fees were one of the main concerns for citizens and council members.

During the February 3 council meeting, Worthington discussed with Mayor Walker and council an ordinance to approve the mid-year FY 2026 operating budget. This is a standard process for municipalities. 

The budget proposed a 3% increase in water and sewer consumption rates, which was denied in a 4-2 vote. 

Additional fees, like the Fire Protection fee, have also been a concern. In February, a resident sued the city, saying it violated state law. This fee will also not increase.

Since then, councilmembers Amy Fouse, Dan Peterson, Robert Jones and James Moody have been vocal about their opposition to additional increases and fees to citizens. In discussions about the FY 2027 budget, their opinion remained the same.

After Worthington explained the budget, Councilmember James Moody said working on it was not easy and they are proud of the final result. He said extreme inflationary pressure also impacts the city. 

Peterson said the budget process was an interesting experience of balancing infrastructure, growth, financial needs and citizens’ concerns. 

“This is no easy task and there’s been a lot of conversations, questions and answers. I really appreciate the opportunity to work together, to pull that together,” he said. 

Peterson thanked citizens for making their voices heard and said the budget reflects a commitment to listening. 

Mayor and council will hold their next pre-council meeting at 5 p.m. and the regular council meeting at 6 p.m. on July 7. Everyone is invited to attend, and the agenda is available before meetings on the city’s website. Both meetings are also livestreamed on YouTube.