Peoria City Council members are getting their first looks at the city staff’s proposed two-year budget.
The recommended spending plan was presented for initial receipt and filing during Tuesday’s council meeting.
It has 2026 anticipated expenses of $301 million and projected revenues of $298 million, representing decreases of 3.6% and 1.4%, respectively.
City manager Patrick Urich said the budget proposal includes a reserves balance of $136.3 million at the end of next year, and prioritizes the six key aspects of Peoria’s strategic plan: infrastructure, community safety, business growth, downtown development, embracing equity, and improving the quality of life.
“We have sufficient resources to make our debt service payments for next year and weather any future economic downturn,” said Urich. “This budget fully funds public safety pensions and prepares the city for the next phase of our combined sewer projects, the two largest fiscal challenges the city faces.”
Operational expenses are forecasted to increase by about $15.5 million, or 7.7%. Expiration of American Rescue Plan Act [ARPA] funding and conversion of some sewer and stormwater projects into operational expenses result in a $28.4 million decrease in capital spending, representing a 36.7% drop.
“We have continued emphasis on maintaining what we own with our existing infrastructure and our continued investment in the growth of small businesses throughout our community,” said Urich.
The proposed budget for the 2027 fiscal year has revenue at $319.5 million and expenses at $320.6 million. The full document is available for public viewing in the city clerk’s office, and a digital version can be found on the city’s website.
Council budget discussions get underway at a special meeting next Tuesday, with staff providing an estimate of the property tax levy. Discussions are expected to continue each Tuesday until a vote on approval, targeted for Nov. 4.
Potential new TIF districts
Also Tuesday, the council approved scheduling public hearings on Nov. 18 for two proposed new tax increment financing [TIF] districts, along with the creation of “interested parties” registries for both.
The Adams/Liberty TIF area in downtown Peoria includes the PNC Bank Building, Creve Coeur Building and adjoining parking deck that were purchased by the city in hopes of attracting mixed-use development.
The other new TIF district aims to facilitate development in the Northwoods Mall commercial corridor.
“We looked at the area around Northwoods Mall, knowing that this is an area that is concentrated commercial development inside the city and commercial zoning inside the city, and then looked at it and said, ‘There's some opportunities for redevelopment within this area,’” said Urich.
“If you look at what many other communities are doing throughout the country, where you have large parking spaces that are set up as part of old shopping malls, they're turning them into apartments and other commercial entities.”
Council member Andre Allen, whose Fourth District includes the mall area, said he’s eager to get an opportunity to engage with the public on the proposal.
“It just demonstrates our vision for wanting this to not only be a current shopping destination, but again, for it to grow for future growth and sustainability,” he said.
The interested parties registries allow for anyone who wants to follow progress on the TIF districts to sign up to receive updates.
Separately, a public hearing was held regarding the recommended creation of a Glen Hollow Business District. The establishment of the business development district would add a 1% sales tax within the district that would go toward development purposes.
Two residents spoke during the public hearing, saying the additional tax would likely push them to do their shopping at other retail centers or in neighboring communities.
Other business
The meeting also featured presentations on the Peoria Civic Center’s annual performance and budget for the next year, and a report on the inventory and conditions of off-premises billboards.
Additional items approved as part of the consent agenda include:
- A joint funding request with the Illinois Department of Transportation for up to $3.9 million in federal funding for the reconstruction of the University Street-Northmoor Road intersection, along with a local funding match of $2.1 million, subject to IDOT approval, and allocating $2.2 million in state motor fuel tax funds for construction costs;
- A four-tiered action approving a Class I liquor license for Fairways, the full-scale restaurant and bar that will operate at the Peoria Park District’s renovated Golf Learning Center;
- Granting site approval for a temporary outdoor liquor license for the Peoria County Bicentennial Celebration on the courthouse grounds;
- A retail liquor license for the UFS Outlet Center at 8901 N. Knoxville Ave., and an on-site consumption liquor license for Analytical Brewing at 831 SW Adams St.;
- Accepting the preliminary plat for the Hacienda Murillo Subdivision at 9810 N. Garden Lane;
- An agreement with IDOT regarding participation in the annual bridge washing program;
- Allowing a special use to convert an office property at 7211 N. Knoxville to multi-family apartments;
- Updating city code to amend liquor license requirements for catering businesses; and
- Three special use short-term rental approvals in residential districts.
At the request of First District council member Denise Jackson, a proposal to convert a group of properties on Lincoln Avenue and Howett Street from a residential district to neighborhood commercial for a planned auto repair business was tabled for one month.
