PEKIN, Ill. — The Pekin City Council learned Monday night how the city’s budget can be readjusted with the current COVID-19 pandemic.
Pekin City Manager, Mark Rothert, explained that less revenue is expected in the upcoming months.
“In genreal, on average we receive around $2 million in our general fund per month,” Rothert said.
Around $650 thousand of revenue is expected per month.
“The city could experience up to, what could be, $4.85 million in a deficit for expenditures going out more than the revenue,” Rothert.
To help reduce the lost revenue, Rothert said eliminating non-essential costs, delaying the hiring of some positions, and reducing low-priority services are an options.
Rothert also mentioned one step could be to lobby for Federal Aid and Assistance, similar to what local colleges and universities have done for funding.
Another option would be the Rainy Day fund, which pulls cash balances from other funds such as the Solid Waste Fund, Sewer Fund, Bus Fund and others.
“$5.1 million would be there in the General Fund,” Rothert said.
A revised budget needs be approved by April 30th, according to guidelines from the State of Illinois.
Several council members said they needed more time to look into the options and do research before deciding a plan of action.
Pekin Mayor, Mark Luft, said it is a unique situation.
“This time crunch with putting this budget together, with contracts we’re dealing with right now, with the COVID-19, researching for funds and help in that area,” Luft said. “Not only for the municipality but our small businesses, wondering where we are going to be three to four months from now. It has been a very difficult process.”
Luft said the budget can be amended as the year go along.
