Peoria City Council Special Meeting Summary – September 30, 2025
Peoria City Council Special Meeting Summary – September 30, 2025
The Peoria City Council held a special meeting on Tuesday, September 30, 2025, at 6:00 PM to address time-sensitive agenda items and begin formal discussions on the 2026-2027 biennial budget. The meeting included approval of tax levy estimates, a temporary liquor license, and a comprehensive budget presentation by the finance director.
Consent Calendar
- Item 25-275: Approved the proposed estimated tax levy of $1,419,540 with an estimated tax rate not to exceed 0.074315 for the Town of Peoria. Motion passed unanimously after a discussion regarding reserve goals. Township supervisor indicated reserve levels are being monitored to avoid a drastic fall and noted that reaching a six-month reserve would take 12–20 years under current trends.
- Item 25-276: Approved a Class H temporary outdoor liquor license for Peoria's Real Steel Inc. to hold the Warehouse District Blocktoberfest fundraiser on October 4, 2025, from 9 a.m. to 9 p.m. on Oak Street between Adams and Jefferson Avenue. The event is expected to become an annual administrative approval after its second year. Motion passed unanimously.
- Item 25-277: Approved the estimate of taxes to be levied in the amount of $34,418,810 at a rate of 1.3483 for the City of Peoria, subject to truth-in-taxation provisions. Finance Director Kyle Craddy explained that the rate is maintained from the previous year, and the overall dollar increase of 6.56% matches the estimated growth in equalized assessed value (EAV). The $2 million road bond levy was noted as a historical policy. Motion passed unanimously.
Discussion Items
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Item 25-278: 2026-2027 Biennial Budget Presentation – Finance Director Kyle Craddy delivered a detailed presentation covering the strategic plan alignment, economic outlook, revenue/expenditure projections, capital plans, debt, and pension obligations. Key points included:
- Revenue: Total revenues of $298 million for 2026, down 1.4% from 2025, with local taxes (home rule, HRA) being strong but state revenues lagging due to use tax changes and lower grant expectations.
- Expenditures: Operations at $216 million (up 7.7%), driven by health insurance costs (expecting an additional $3.5 million transfer) and pension increases. Capital budget of $48.9 million (down 36.7% in part due to reclassification of some items to contractual expenses).
- Pensions: Public safety pension contribution of $39.3 million represents about 30% of general fund revenue. Staff recommended making an additional $1.8 million contribution (beyond the actuarial minimum) to further reduce the long-term liability peak, which has dropped from $81 million to $58 million by 2040.
- Stormwater: Staff recommended taking the CPI increase of ~2.9% for stormwater fees (not taken since 2021), which would add about $10–15/year for the average homeowner and raise approximately $500,000.
- Debt: Recommended issuing $8.9 million in new general obligation bonds for capital projects (fleet, facilities, etc.), structured as 20-year bonds. Civic Center debt will be fully paid in 2028, but remaining bond payments (about $1.6 million per year) will continue through 2044 under current cascade-of-funds agreements.
- Fund Balance: General fund projected to end 2026 with $56.7 million (43% of operating expenses), with a small surplus of $17,000. Long-term projections show a structural deficit beginning around 2028–2029, with fund balance crossing the 25% policy threshold by 2029.
Council members raised questions and offered comments:
- Councilmember Allen asked for a report on the pavement preservation program ($500,000) and clarification on fund balance usage.
- Councilmember Kelly criticized the use of fund balance and noted the city's EAV growth has not kept up with inflation over 15 years. He also questioned the accuracy of certain budget book figures (e.g., city council budget showing $5 million in benefits) which Finance Director Craddy acknowledged as a reporting error.
- Councilmember Gordon-Young inquired about the CPI increase for stormwater.
- Councilmember Riggenbach praised the strategic plan alignment and urged continued aggressive pension funding. He also supported doubling the pavement preservation and sidewalk budgets.
- Councilmember Sear expressed concern about multiple fee/tax increases (stormwater, garbage, sewer totaling ~$1.2 million) and argued for cutting $4.2 million in expenses instead. He also questioned the civic center debt repayment schedule and suggested only bonding for revenue-generating assets.
- Councilmember Vespa discussed EAV as a leading indicator.
- Councilmember Kelly also raised concerns about SSA transparency and the implicit subsidy in retiree health insurance.
The budget discussion will continue at subsequent meetings (public hearing October 14, additional discussions October 14 and 21, with final adoption targeted for November 4).
Key Outcomes
- Item 25-275, 25-276, and 25-277 all passed unanimously.
- No formal action was taken on the 2026-2027 budget; discussion will continue at upcoming meetings.
- The council voted to convene in closed session immediately following the regular meeting to discuss pending litigation and closed session minutes (motion passed unanimously).
Meeting Transcript
Thank you very much. Good evening, everyone. Good evening. It is six o'clock PM on Tuesday, September 30th, 2025, the last day of the month, ladies and gentlemen. I'd like to call the meeting of the Peoria City Council to order and also welcome everyone here in our city council audience as well as our listening audience on Cable Channel Twenty Two and on YouTube. Madam Clerk, the council mics are open. Please call the roll. Mayor Ali. Present. Council Member Allen. Present. Councilmember Carmona. Here. Councilmember Sear. Here. Council Member Gordon Young. Present. Council Member Jackson. Councilmember Kelly. Here. Councilmember Euler. Here. Councilmember Riggenbach. Here. Councilmember Velpula. And Councilmember Vespa. Here. You have a quorum present, Madam Mayor. Thank you, Madam Clerk. Everyone, please join me and stand for a moment of silent prayer or silent reflection, followed by the Pledge of Allegiance. Councilmember Gordon Young. I move to approve item two five-two seven five. Seconded by Council Member Trustee Allen. Any discussion or questions? Trustee Sear. Thank you, Ma'am Mayor. Just one question. I'm not sure who I'm supposed to ask a question to. What is the goal to your knowledge, or who's our who's our early liaison? It may be oh I'm sorry. approve item two five dash two seven five seconded by council member uh trustee allen any discussion or questions trustee sear just kind of a uh thank you ma'am mayor just one question and I'm not sure who I'm supposed to ask the question to um what is the goal to your knowledge or who's our who's our liaison in the town it may be oh I'm sorry the question may is either to our liaison or to our township supervisor um I don't know if you know that I mean we're decreasing by five percent right this year uh what is the goal I mean there's obviously we want to you know spend the uh the reserve do you know what the goal her goal is as far as for how much reserve she wants to have on the books as much as I love to answer that question why don't we ask her she's here oh I mean I'm sorry I didn't see you over there sorry did you hear my question I did um what is your goal for the reserve down the road well to the the goal of the reserves is simply to get a balanced budget um from my understanding just several years back prior to me coming in there was a historical reduction in funding on the the reserve on the tax levy um typically government um entities or taxing bodies do not do a significant reduction based on what the um the actual uh budget is the yearly budget is however I understand that there were some circumstances as to why that decision was came about um what I have been doing over the last several years or in the last four years since I've been in is just watching where we are so far um our reserves have come down they're not coming down at a drastic rate and I do not think that it would be in our best interest to see a drastic fall in the reserve simply because our current budget our annual budget is about 2.3 million um and our incoming funds from the levy is significantly lower than that so we kind of have to watch those numbers very carefully to make sure that we do not end up to where we have to do um a truth in taxation and there are other things that may come about if we don't find that balance so we're just watching the monitoring the numbers very closely but would you like to see six months reserve 12 month reserve a year I mean what what would you like to see? I do not think that six months is realistic. If we were to get our reserves down to six months we have to think about how long it would take us to get our levy to where our actual budget is or our actual annual budget is today and with our annual budget being 2.3 million that is that in the case in the event that none of our costs increase um that increase that's operational increase we already know that you know with am just daily day to day operations those costs are increasing um I did do the numbers on that if we were to um do increases of three percent just to meet our levy where our annual budget is today it would take if we increase it by three percent it will take close to 20 years if we were to increase it 5% it's going to take roughly about 12 to 13 years. So my question would be for the board if that is the route to go to get it down to that six month minimum what are we going to do during that time frame if there is no uh solution that is set in place then that is probably the it will be detrimental to get it down to six months six months is the absolute bare minimum to keep operations running and it's just not realistic with what we have going on currently at the township. Thank you thank you ma'am mayor you're welcome uh excuse me the motion is to approve the proposed estimated tax levy of one point four one nine five four oh with an estimated tax rate not to exceed zero point zero seven four three one five for the town of the city of Peoria please cash your ballots motion passes unanimously madam clerk we are at the city portion of the agenda 25-276 is a communication from the city manager incorporation council with request to approve the site application for a class H temporary outdoor liquor license for an event held by Peoria's real steel Inc for its warehouse district blocktoberfest fundraiser on the block of Oak Street between Adam Street and Jefferson Avenue on October 4th 2025 from 9 a.m to 9 p.m. So those uh the Fourth of July fundraiser is one that's been very popular and hugely successful that council doesn't see anymore because our ordinance provides that once council's approved it in a couple of years, then staff can do so administratively. So these uh this is a a growth of that type of an event um that's being hosted in the a slightly different part of the warehouse district adjacent to uh dozer stadium. Um and uh I think the organizers hope that it'll be a continuing event going forward to celebrate that part of the warehouse district as well as raise funds for a not-for-profit. We'd uh ask for approval of the event. Um, and if they renew it next year and it's approved, then after that it'll be an administrative approval.
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