The City of Peoria's first proposed budget includes tax hikes, some layoffs and fee increases. The goal is to fill a $6 million spending gap:
The proposed budget would raise the sales tax rate in the city by a .25-percent, and raise the motor fuel tax rate another three-cents-per-gallon. That would raise more than a million dollars for road maintenance, but leave the city about $6 million to maintain road conditions as they are. City Manager Patrick Urich says the proposed spending plan is trying to be realistic:
"At least initially, at this point and time with council's desire to not raise the property tax rate, we really have to look at sales tax and motor fuel tax to start to fund our operations."
The City’s property tax rate hasn’t changed much for about the last 20 years. The proposed budget did NOT include ways to pay for looming combined-sewer-overflow costs via mandates from the EPA. City Councilman Chuck Grayeb says that means the council likely would tackle the issue next year:
"If we're going to have to hit the people up for more money, and we are, why don't we just do it all at once? Why do we need a one-two punch?"
City staff says that's because there's no binding agreement yet with the EPA as talks continue.
The proposed budget also would cut about seven positions, but add another nine, including five police officers. A new fee to pay for vacant property upkeep and increased fees for video gaming machines are also proposed to increase. The Council will hash out more budget details in multiple meetings next month.