PEORIA, Ill. (25News Now) – The Peoria City Council got its first look at the 2027 revised budget plan, including an estimated property tax levy that would increase city revenue by $1.9 million while lowering the tax rate for both the city and the library.
Peoria Finance Director Kyle Cratty said homes and businesses across the city are now worth $2.7 billion, up nearly 6% from last year.
Cratty said that because property values are up, the tax rate residents pay would drop slightly for both the city and the library, even though the levy would bring in $1.9 million overall.
Cratty said if a resident’s tax bill is higher, it is because their home is worth more, not because the city raised its rate. He said what schools and other taxing districts charge also affects a resident’s total tax bill.
Council Member Andre Allen asked Cratty to explain why a resident’s bill can be significantly higher year over year even though the city’s property tax levy has remained flat or decreased.
Council Member Dennis Cyr said homeowners who make improvements to their homes are affected by a rule that raises their taxes three years after they pull a building permit. “Who made the rule about building permits and keeping track of what people are doing in their home and then punishing them for taking care of their home three years later?” Sear said.
The city manager said those rules come from Springfield, not City Hall, and said state lawmakers would have to change them.
City Council approved the estimate unanimously. This was council’s first hearing on the 2027 revised budget. A Truth in Taxation hearing is set for Nov. 10, with a final binding levy vote expected Dec. 8.
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