Both the city and county of Peoria are facing hard times. They’re in a budget shortfall and are looking at increasing revenue and cutting costs (which means services will be cut in some way). Each entity has unwisely committed themselves to large, approximately $40 million capital outlays for non-essential projects: the city for a private Marriott hotel downtown, and the county for a private museum that has received tepid support for multiple years.
Here’s the good news: Both of these projects have missed their contractual deadlines, meaning that the municipalities could easily cancel these agreements and save taxpayers a boatload of money, both in up-front capital costs and on-going operational expenses.
Here’s the bad news: They ain’t gonna do it. Despite a history of just these types of white elephants that have contributed to the current budget mess, you can bet your heavily-taxed bottom dollar that they’re still going to go through with them, even as they cry poverty when it comes to essential city services such as police protection and road maintenance.
It seems no one in the city is able to make the connection between large, non-essential projects, and high taxes. They all hate high taxes, and they all hate service cuts, yet they continue to support large, money-losing, unnecessary projects that swallow their tax money and give them little to nothing in return.
Residents are content to believe the tortured logic of their local politicians. Here are a few of my favorites:
- “Canceling this capital project won’t do any good because the money to pay the debt can’t be reallocated to operational expenses; it can only be spent on this project.” — That’s true, but irrelevant. From the taxpayer’s perspective, canceling the project will save us money because we won’t have to support it with our tax money. It doesn’t matter that it can’t be reallocated; the municipalities are still going to have to plug their budgets with increased revenue from either taxes or fees. By canceling the agreements, that saves us from an even higher tax increase.
- “This project will pay for itself.” — Let’s look at the hotel project. The developer can’t find financing for the rest of the project (apparently banks are a little more cautious with their money than the City of Peoria — which is saying something), and the Embassy Suites expansion in East Peoria was recently scrapped because, “The hospitality business as a whole in the country is experiencing extremely hard times.” Yeah, sounds like that will pay for itself, doesn’t it? Obviously the museum will never pay for itself; even ardent supporters don’t claim that.
- “But the people voted for it.” This applies only to the museum, since the public didn’t know anything about the hotel until two days before the council voted on it, and basically had no voice in the matter. It’s not as if there isn’t precedent for the city council to ignore a vote by the people. They cut funding to the library expansion even after it was approved by a large majority of voters. This project was only narrowly approved, and mostly on the backs of Dunlap and North Peoria voters. It lost handily outside the city. I’ll bet if we had an referendum on increasing garbage fees, that would lose. Should the municipalities thus take that off the table? The fact is that any cuts in service or increases in revenue are going to be unpopular. Leadership requires that unpopular, but fiscally-responsible decisions be made in tough times.
The city and county need to cut the fat. They’re in debt. They can’t afford to provide basic services to their residents. If these developments are really the sure-fire money-makers they claim to be, let private interests finance them, not the taxpayers who are stretched already in this poor economy. Show some leadership.
Once again, the voice of logic and reason speaks, but those who have the power to take this advice, won’t.
Not only would renewing the agreements cost additional money (salary of staff and lawyer fees) but they will probably end up where they are now. And that Cub Food complex is just swarming the city with cash.
And the city could use that 80 million to approach become ADA compliant on sidewalks and curb cuts.
Wasn’t the vote on the museum actually worded for “public facilties” uses? Which means that this tax money could be used for other public facilities such as Belwood or someplace else where we are going to have to raise taxes to support it. Please fell free to correct me if I am wrong.
Yes SD… it was worded with wiggle room. That tax can still be collected and used for other things even if the museum tanks.
Wasn’t the museum vote binding, and the library vote not?
You people are correct, but……missing the point. The museum tax was disguised as a “public facilties” tax, but…who here REALLY thinks that money will ever be used for anything besides a museum we don’t need?
The Peoria well-to-do who supported this project were warned about the potential problems before this thing ever went to a referendum. It would be more than a little embarassing now to say “OOPS!” “Maybe we were wrong!”
Just think of all of those construction company [owners] who will be missing out on those monster contracts? Where will ours kids go to get an education?
That would be a great selling feature for Peoria. Welcome to Peoria – we are ADA compliant on sidewalks and curb cuts – spend the weekend!
How does the city of East Peoria manage to attract development, while the city of Peoria rots?
Regarding East Peoria: Would YOU pay $200 a night for a hotel room in East Peoria?!?!?!
To roughly quote a line from a Superman movie (Lex Luthor), “Promises were made – gifts were exchanged….”
I keep saying it over and over again, but sooner or later, Peoria is going to HAVE TO fix that whole ‘poopy in the river when it rains’ problem, and that probably looks to cost tens of millions of dollars. It’s not looking to get easier any time soon.
Anon,
Maybe if Peoria fixes Cameron’s “poopy in the river” problem, ‘they’ WILL come!
Some might say “depends” whether to spend $200 for a hotel night in E. Peoria.
As to politicians cancelling taxes approved by a referendum even if the referendum or referendums were mis-leading? Not a chance. Public facitly taxes are good for almost any facility the county would like to build. Ball diamonds, skate board parks and nursing homes to name a few.
“How does the city of East Peoria manage to attract development, while the city of Peoria rots?”
What does East Peoria have the Peoria does not? What is all this development you speak of besides the fast food restaurants and chain hotels on their riverfront?
Besides the gambing boat I don’t see much going on over there that Peoria has not already done.
East Peoria is way over rated. They are just playing catch up to Peoria. Big friggin deal they have a Kohls and Taco Bell. We have had a Kohls in Peoria for twenty years now.
If it was not for the Peoria Civic Center do think they would have built the Embassy Suites where they did? Do you think that all the development that has happened on the E. Peoria riverfront would have had happened if it was not for the close proximity to downtown Peoria. Who do you think goes to lunch at all those restaurants during the work day- people that work downtown Peoria not downtown East Peoria.
Question: Last Friday night at the airshow preview we watched the show from the docks down at the Marina by the Gateway Building. There were a LOT of dead fish and it stunk to high heaven. Can anyone tell me if this is a unique occurance (possibly caused by sewer overflow) or, do the fish just naturally float there when they die, sewer overflow or not?
diane: Would the dead fish challenge be due to the silt in the river problem? Not sure just asking. Or perhaps it is a result of the “poopy in the river problem”.
peoriafan sez: “If it was not for the Peoria Civic Center do think they would have built the Embassy Suites where they did? ”
I say: You dolt. If our city leaders had their heads out of their rear orifice’s, we would have that hotel on this side of the river.
Peoriafan,
Dude. When you write things like
“If it was not for the Peoria Civic Center do think they would have built the Embassy Suites where they did? Do you think that all the development that has happened on the E. Peoria riverfront would have had happened if it was not for the close proximity to downtown Peoria. Who do you think goes to lunch at all those restaurants during the work day- people that work downtown Peoria not downtown East Peoria,”
don’t you think you are kind of shooting yourself in the foot? I mean if people work in downtown Peoria and decide to spend their $ eating lunch in E. Peoria restaurants… well… which side do you think comes out ahead here?
BUT THERE IS A GLIMMER OF HOPE PEOPLE!! TWO WORDS!!
regional museum.
IN the new Pixar release UP, the dogs get easily distracted by the word “squirrel”… it reminds me of our city and schools getting so easily distracted by the “spend money”.
I honestly think that bureaucrats really think differently from human beings. They somehow think that they are required to spend as much money as possible on anything and everything except people. “Capital” is an investment, people is a charity.
I would add the updated projection of $41M for a new and improved Bel-wood to this list. That would save taxpayers additional debt service aka interest and reduce their property taxes by .06 per $100 assessed value.
What could be purchased with all the money that taxpayers pay for being in bondage I mean debt?
We saw the movie “Up”. Don’t waste your money.
The city/county leaders remind me of drunk housewives on a weekday shopping spree with the hubby’s credit card.
No one in city or country leadership wants to take their name off something that 10 years from now they can proudly say they had a hand in pushing through (regardless that it may still be a white elephant). Besides, afterwards they may then be able to get a cushy job with one of the companies involved after they are voted out of office or have decided they are finished “giving back to the community” through public service because of a better offer.
Wow, Cathy… a little anti-woman there! You have to ask yourself, Cathy… what is it those husbands did to make their wives want to get drunk and spend money. And now-a-days, that credit card is in her name too because she’s also working her hiney off.
I’d say the leaders are acting more like the husbands by ignoring their constituents and playing climb the corporate ladder instead….
diane sez: “We saw the movie “Up”. Don’t waste your money.”
For once I completely agree. Save your money.
Diane and Emtronics… your depth in analysis and critique is overwhelming.
“save your money”… for what? I spent $7 on the movie. What do you want me to save it for?
MAWB: “You have to ask yourself”
Why did those women marry those men?
MiddleAgedWomanBlogging, when I was married 51 years ago my husband was the only one allowed a credit card within the family by the credit card company. That is the way it was back then. I was allowed to purchase using credit only with my husband s consent and I never abused that allowance. However, I was aware of many wives within our circle who did.
[Portion of comment deleted by blog owner]
kcdad — that $7 will cover a month of garbage pickup. 🙂 I didn’t find UP to be that bad…..though my tastes run a little more to Bruno (hilarious by the way – if you can take the humor as it’s intended).
kcdad: Save that $7 for the regional museum tax.
Bruno: homohumor… nice.