The city of Peoria's financial position is unusually strong in the aftermath of the COVID-19 pandemic. It's a wave Peoria Mayor Rita Ali wants the city to ride to further growth.
That was the general theme of the mayor's annual State of the City address Thursday at Luthy Botanical Gardens.
The city's revised 2023 budget was $265 million. Ali said overall city revenues were $282 million in 2022, up 12% from 2021. Fifty-two percent of revenues come from local taxes, fees, and fines. The bulk of the rest is from state and federal sources.
Ali said the city exceeded revenue projections over the past two years. The city general revenue fund is at about 50% of operating expenses, double the 25% minimum set by policy.
"It means that the budget surplus from 2022 can be used beginning 2024 to pay more toward public safety pensions and still exceed the fund balance policy," Ali said. "It means that the city has several years of fiscal certainty and a buffer in the event of economic turndown or recession."
It's a far different budgetary situation than the city faced at the beginning of the COVID-19 pandemic, when lost revenues forced difficult cuts to the table.
"American (Rescue) Plan Act or ARPA funding has had a huge positive impact on our budget," Ali said. "We will continue to utilize these funds through 2024 and make up for the end of these funds by tapping other grant and funding sources."
Peoria received $46 million in federal relief dollars.
Peoria City Manager Patrick Urich said he believes the current budget surplus will "easily" cover three or four years' worth of public safety pension obligations.
"There's really two options, one, we cut expenses or two, we raise taxes. So those are really the two options that we have," Urich said. "Hopefully, we'll continue to see growth."
Urich was bearish on the return of the public safety pension fee that proved unpopular with Peoria taxpayers.
The mayor said the police department's focus on reducing gun violence and fostering community relationships is bringing results.
"The Peoria Police Department placed special emphasis on gun related crimes in 2022. The results were encouraging, as Peoria saw a 28% decrease in shooting incidents 2022 compared to 2021. We saw a 24% decrease in homicide victims in 2022 compared to the prior year," she said.
The mayor said law enforcement collaborations like the Peoria Area Federal Firearms Task Force and the Greater Peoria Auto Crimes Task Force will make an impact, combined with initiatives like the police behavioral health co-responder program, and community-based violence reduction programs.
Ali also touted infrastructure projects, noting the city's $60 million capital budget was a 20-year high water mark. A $25 million state grant will fund the first leg of a $52 million Main Street reconstruction project from the foot of Water Street to Farmington Road.
The mayor also highlighted her efforts to bring passenger rail service back to the city of Peoria, a $13 million Connect Illinois broadband application to bring high-speed internet to the 61605 ZIP code, and an $11 million Federal Highway Administration grant application to bring more electric vehicle charging stations to the region.
Ali said she also plans to roll out a new African American role model program for youth in late July or early August in conjunction with the PNC Bank Foundation.
The mayor said while Peoria often makes national lists as one of the most affordable places to live in the country, she wants Peoria to be the best place to live, period.
"The flowers are blooming, and we are well positioned for growth and prosperity," she said.
