PEORIA, Ill. — With the help of COVID-19 relief money and some surprise local revenue, the City of Peoria appears to be in a good position reviewing their 2023 budget proposal, but the city is still preparing for a recession.
Peoria has a 2023 budget of more than $260 million. City Council had its first discussion Tuesday night on the proposed budget.
“I think of all the years I’ve been sitting around the horseshoe this is probably the first budget that we opened not talking about how much we have to cut, so this is a breath of fresh air,” said council member Tim Riggenbach.
In the proposal, the city plans to spend $62 million in capital improvements. Almost 91% of the projects directly impact citizens with sewers, roads and sidewalks.
“I’m pleased to see we’re receiving this grant for the sidewalk work in the 61605. My question is what about some of the other older parts in the city?” asked council member Beth Jensen.
Some council members questioned $31 million going toward pension funds.
“This is a way we can take the unanticipated state revenues and use to pay arguably what is a state-directed problem that we have at the local level, which is funding pensions,” said City Manager Patrick Urich.
According to 25 News, there are no fees or property tax increases in the proposal.
“We are anticipating a slight reduction in home rule sales tax as well as state sales tax, primarily because we are looking at the possibility of a recession at some point during 2023,” said Finance Director Kyle Cratty.
Council action on the budget is expected in mid-November.
