Peoria City Council Special Meeting – October 7, 2025

The Peoria City Council held a special meeting on Tuesday, October 7, 2025, at 6:02 PM to hold a public hearing and discuss the 2026-2027 biennial budget. The meeting included a public comment, a series of report backs from the city manager and finance director, and a motion to defer a proposed freeze on sewer, garbage, and stormwater fees. The council also heard detailed presentations on the SAFER grant, revenue-generating assets, and several new state funding awards.

Public Comments & Testimony

• Eric Hutcheson (volunteer, Center Bluff Neighborhood Association) spoke in support of funding a street lighting project on Knoxville Avenue between Corrington and McClure. He noted that seven lights are out due to underground wiring issues, and the project is on the city’s list but currently unfunded. He emphasized that the area includes businesses, an OSF Children’s Hospital facility, and the Knoxville Center for Student Success, which offers night classes.

Discussion Items

• Report Backs on Budget Questions: Finance Director Craddy presented responses to council members’ questions from the September 30 meeting:

  • Downtown Development Goals: Four existing organizational goals were identified as directly impacting downtown development; further actions will be brought back after the budget process.
  • Pavement Preservation: The 2026 budget includes $500,000 for mill and overlay, the low point in five years; future years anticipate $960,000.
  • ADA Sidewalks: $500,000 is budgeted for 2026, up from $100,000 in 2025; additional sidewalk work occurs through road reconstruction projects.
  • 2023 Civic Center Bond: Debt service is interest-only through 2029, with a first optional call date of 2033; refinancing would be considered if savings exceed 5% of interest costs.
  • Revenue-Generating Assets: Assets such as sewers, parking decks, vehicles, and leased buildings generate revenue. Fire Chief Solberger highlighted three examples: the training tower generating over $200,000 annually from training other municipalities; a fire recovery program working with insurance companies that has generated over $625,000 since 2023; and a FEMA SAFER grant awarded to hire 11 firefighters.
  • City Council Budget Clarification: The $3.5 million figure in prior years included citywide administrative costs (health insurance, FICA, IMRF) that have since been moved to individual departments; the corrected council budget for 2026 is approximately $500,000.
  • Fee Freeze Impact: Freezing the anticipated 3% sewer lateral fee ($200,000), $12 garbage fee increase ($427,000), and 2.9% stormwater fee increase ($478,500) would reduce revenue by a total of $1.1 million. The city manager noted that these funds support CSO obligations, garbage fund solvency, and stormwater capital projects.

• SAFER Grant Debate: The fire department was awarded a third SAFER grant for 11 firefighters. The grant covers 75% of costs in years 1-2 (city pays 25% = $410,000/year) and 65% in year 3 (city pays 35%). After three years, the city would bear full costs (~$1.6 million/year). Councilmember Kelly expressed concern about long-term pension and payroll liabilities, while Councilmembers Sear, Vespa, and Gordon-Young supported the grant, citing overtime savings of $1.2 million annually for rescue one alone. Chief Solberger noted the grant would eliminate $1.2 million in overtime for rescue one, resulting in net savings of about $789,000 per year in the first two years. The grant also requires a staffing floor of 202 firefighters for four years.

• City Manager’s Budget Adjustments: The city manager proposed several items to balance the budget:

  • Passenger Rail: $6.4 million grant (90% federal) for step two of the Peoria-Chicago rail corridor; city match of $640,000, possibly offset by state funds.
  • State Road Grants: $6.9 million for Wisconsin Avenue (McClure to Forest Hill), freeing up state motor fuel tax for other roads; $10 million for Sheridan Road; $87.2 million for Route 29; $42.7 million for Lincoln and Howitt; $189 million total in state capital plan.
  • Expo Gardens: $1.2 million acquisition cost; remaining $798,900 from land bank grant; plus $100,000/year for property maintenance.
  • Revenue Adjustments: Increase real estate transfer taxes and building permits by ~$350,000.
  • Capital Project Delay: Move Hickory Grove Road and Sheridan Road construction from 2026 to 2027, leaving engineering in place.
  • Operating Cuts: Reduce contract with Greater Peoria Sanitary District by $600,000 in 2026; eliminate the additional $2 million pension contribution in 2027 (still making the actuarial required payment).
  • These adjustments, if all adopted, would result in a balanced budget with a surplus of $6,682 in 2026 and $25,594 in 2027.

• Councilmember Allen requested a report back on how previous American Rescue Plan funds were allocated to violence prevention.

• Councilmember Sear requested three report backs: (1) capital budget by funding source, (2) a list of all taxes and fees the city administers, and (3) an eight-year history of tax rates for the 11-12 line items on a typical property tax bill (including Peoria Public Schools and Dunlap School District).

• Councilmember Jackson requested a list of capital projects that were budgeted but never started over the past two years.

• Councilmember Sear also requested a report on accounts receivable.

Key Outcomes

• Vote on Fee Freeze Motion: Councilmember Sear moved to freeze the sewer, garbage, and stormwater fee increases for 2026-2027. After discussion, Councilmember Riggenbach moved to defer the vote until the next meeting (October 14, 2025) to allow the full budget adjustment package to be presented in writing. The deferral motion passed unanimously.
• City Manager and staff will prepare budget motions for the next meeting, incorporating all proposed adjustments and report backs.
• The meeting was adjourned at 7:52 PM (estimated).

Next Steps

• The next regular council meeting will include a budget discussion with the full package of proposed motions and report backs.