There are several options on the table, but none of them were palatable enough to members of the Peoria City Council to move forward with plugging the city's gaping $50 million budget hole on Tuesday.
City Manager Patrick Urich presented four scenarios, ranging from no operational cuts, but extensive borrowing backed by a property tax hike; to a $15 million cut to operational expenses that would result in 150 layoffs - the bulk of which would come from the police and fire departments, which are already working at bare-bones staffing levels.
To make an arugment to potential bond buyers the city is in a position to pay back borrowing with interest, Urich said Peoria would need to raise about $3 million a year through a property tax increase, which would come out to about $50 more on an average homeowner's bill.
"From my standpoint, I can't support the borrowing because I don't think that our citizens can sustain another tax increase after the stormwater, the parcel pension fee," said councilman Zach Oyler. "We can't go out to a struggling citizenry and pass another tax increase."
Councilmembers also balked at the extensive layoffs on the table. A $5 million cut to operating expenses would result in the layoffs of 22 firefighters and the idling of two machines, the loss of 29 police officers through a combination of layoffs and leaving vacancies open, and cuts to other departments for a total of 48 job cuts.
The $10 million operational cut option would result in 99 job cuts. The $15 million cut option would decommission 5 engine companies and reduce the police force by 46 positions. The total city workforce would be reduced by 22 percent.
Peoria Police Chief Loren Marion III said a cut that large would have a profound impact on a department already working 16 officers short of its 229-strong authorized capacity.
"Every unit/division would be touched. The services that we currently provide today would not look the same," said Marion.
Second District Councilman Chuck Grayeb said the city should wait to see if federal assistance comes through before making a decision on cutting public safety.
"If you proceed to do it before you should do it, you'll be doing great harm to the city. And you might as well appropriate some money to block off our bridges and tell people not to enter because you're going to have an unsafe city," he said.
Councilwoman Beth Jensen suggested only opening City Hall four days a week and cutting hours as an alternative to layoffs.
Several councilmembers said they weren't ready to make a decision Tuesday, but wanted more time to talk about and weigh the options.
An audibly-frusturated Peoria Mayor Jim Ardis told councilmembers they are dreaming if they can close the gap without taking tough votes.
"Nobody wants to be in this position. Nobody. And none of the ideas are ones that we relish, that we can't wait to make this vote," Ardis said.
And he said the problem only gets worse the longer council "kicks the can" and the city survives on dwindling working cash funds. Currently, there's only enough money in that fund to continue city operations for less than a month.
"We can meet every day, or we can have private meetings, but they're not going to get us anywhere if the elected officials cannot give the management direction. That's what we're elected to do," he said.
A motion from 3rd District Councilman Tim Riggenbach to eliminate the borrowing-only and cuts-only options failed on a 6-5 vote. An motion from councilwoman Jensen to seek $5 million in savings by talking to bargaining units to explore savings options without the possibility of layoffs on the tables failed 9 to 2.
The city manager was tasked with talking to PDC about potential cost savings if Peoria eliminates recycling and yard waste pickup.
The council is set to meet again in two weeks.
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Peoria City Council Wrestles With Ugly Budget Options
