PEORIA, Ill. — Peoria City Council must decide how to spend $47 million it received from the U.S. government.
As part of its $1.9 trillion American Rescue Plan, the $350 billion Fiscal Recovery Fund was born out of the COVID-19 pandemic to assist states, local governments, tribes, and territories, with four objectives: to support COVID response efforts, to replace lost public sector revenue, to support immediate economic stabilization, and to address systemic public health and economic challenges.
State and local governments have been told they may also use the funds for water, sewer, and broadband infrastructure.
The funds must be entirely obligated by Dec. 31, 2024, and completely spent by Dec. 31, 2026.
That said, City Manager Patrick Urich, during a special Tuesday night meeting at Peoria Riverfront Museum to discuss the funding, said now is the time to get the ball rolling.
He gave a list of suggestions of ways the funds could be used, but urged council to act quickly on two matters.
One, to devote $10 million towards future working cash bonds for 2021. Urich said such borrowings had been built into the 2021 budget, but had not yet been issued, and such a devotion would eliminate the need to borrow.
Two, to end furloughs for employees not represented by a union for the rest of 2021. Urich said managers employed by the city have been taking one unpaid day off per month since midway through 2020.
“They’re the only group of employees taking a pay cut,” he said, estimating it would cost $180,000 to eliminate the unpaid days off for July through December of 2021.
Council Members Denis Cyr, Beth Jensen, Sid Ruckriegel, and Zach Oyler expressed immediate support for the matters, with Oyler even suggesting the furloughs be eliminated starting in June.
“I think we’re already in the middle of primetime season, especially with Public Works and Community Development. I think it’s a disadvantage for us to wait until July to make that move,” Oyler said.
The city manager said his other suggestions, such as partnering with other entities that have received ARP funding, and putting the money towards capital projects, aren’t as time sensitive.
“I do think we have the opportunity to spend the summer talking about this, and use this for an opportunity for it to roll right up into our budget discussion we’ll have in the fall,” Urich said.
“We may have to run questions back up through the Treasury Department, but we’re more than happy to do that.”
Mayor Rita Ali suggested the council would facilitate town hall meetings to solicit input as to how the funds should be spent.
“This is such a rare opportunity,” she said, “and it’s during our time, so we get to help make those decisions.”
