Peoria city leaders are on track to approve a two-year balanced budget by the end of the month — without previously recommended fee increases.
A series of budget amendments approved during the Peoria City Council’s marathon meeting Tuesday closed the $3 million deficit for 2026 that was a part of the biennial spending plan initially presented by city staff.
“We adjusted some capital projects, moving some of the road money into future years,” said City Manager Patrick Urich. “Ultimately, with the motions that were made, we ended up putting what amounted to about $3 million more into [general] fund balance in 2026 and $1.1 million more in 2027.”
The original proposal had 2026 expenses at around $301 million and revenue at $298 million. Urich said the changes adjusted the figures to $300.5 million in both revenue and expenses for 2026, and $324.3 million for 2027.
Urich said several council members, particularly Denis Cyr, strongly opposed the recommended increases in storm water, garbage and sewer fees, so they were removed. But Urich said the city may need to reconsider those fee increases in future years.
“We’re going to have to be mindful of what we need to operate the programs that we have, particularly with regards to sewers and the combined sewer overflow project,” he said. “Eventually, we're going to have to look at making sure that we have the revenues in place to operate that, and to pay our debt service on the combined sewer overflow program.
“Same with garbage: The hauling contract will continue to increase by about 3% a year. So at some point in time, we're going to have to make sure that the fees that we charge are able to cover the costs that we incur.”
While the fee increases were withdrawn for the next two years, many Peoria homeowners are likely to see higher property tax bills. Although the city’s tax rate is unchanged, Urich said the actual levy amount increases by 6.56%, based on assessed valuations going up by the same percentage.
Under Illinois law, any levy increase of more than 5% requires a “truth in taxation” public hearing. The hearing for this budget is set for a special city council meeting on Tuesday.
Urich said the council’s long session to get the budget proposal balanced allowed them to move up the anticipated approval vote by one week, from Nov. 4 to Oct. 28.
