The city of Peoria faces a nearly $8 million dollar deficit in next year’s budget, a deficit that will grow to $11 million dollars by 2020 without corrective action.
Peoria City Manager Patrick Urich reported to the city council Tues. that one of the primary reasons for the growing deficit is the mandatory contribution for pensions.
"In 2012, were levying about $16-million for all of our retirement costs. In 2016, we were at $19.7 million," Urich said.
For future budgets, Urich anticipates the pension costs will grow at an eight percent rate. This comes at a time when Urich projects utility taxes growing below inflation rates, and sales and property taxes matching the rate of inflation. He also suggests that contract services will increase faster than inflation. That could mean an increase in fees for garbage collection.
The council is expected to approve a 2018 budget in November.
Meanwhile, starting next week, residents can offer suggestions on service cuts or tax increases here.