Council brainstorms money-saving ideas

The August 11 Peoria City Council meeting promises to be a long, long meeting. The council spent an hour and a half Tuesday night brainstorming ideas for plugging the projected $10 million budget deficit. City staff will take those ideas and run the numbers on them (and in some cases, check the legality of them), then bring them back on August 11 for a policy session where council members will discuss them in detail.

Here is the list of ideas as compiled by the Journal Star:

New tax and fee ideas

  • 2 percent tax on package liquor
  • “Carry out” tax on restaurants, retail establishments, distributors or other businesses that generate wrappers, bottles and other products that turn into litter
  • “Bed tax” on not-for-profit entities such as Bradley University and local hospitals
  • Business license fee
  • Additional tax to use city parking decks
  • Arrest fee
  • Fire service protection districts
  • 5 percent water utility tax
  • Storm water utility tax
  • Fee assessed on pet owners
  • 2 cent per gallon motor fuel tax
  • Eliminating $6 a month garbage tax and rolling it into the property tax

These were in addition to the suggestions made by staff in this report, which includes wage freezes, voluntary separation, revenue adjustments (cutting funding to ArtsPartners, the public library, and other organizations), and revenue increases (e.g., eliminating free land waste pickup).

Councilman Gary Sandberg also suggested that, if the council is going to consider cutting funding to the library, they should also consider cutting funding to the Peoria Civic Center by the same percentage. He also asked staff to bring back a report on how much downtown parking decks would need to charge to break even (i.e., eliminate parking subsidies).

He also hinted at a more radical suggestion: eliminate the city’s police department and turn that function over to the Peoria County Sheriff’s Office. Sandberg points out that county law enforcement officers’ salaries are one-third less than Peoria police officers’. After the meeting, he added that we could put half the savings in salaries toward plugging the budget deficit, and use the other half of the savings to hire more police officers. In effect, we could help plug the deficit and increase police protection at the same time.

I asked Police Chief Steve Settingsgaard what he thought about Sandberg’s proposal. He said that it wasn’t an apples-to-apples comparison to compare city officers to county officers. Instead, when comparing salaries, the council should compare city officers in Peoria to city officers in other similar-sized cities. He said that there are differences between city and county law enforcement, but didn’t elaborate on what those differences are.

34 thoughts on “Council brainstorms money-saving ideas”

  1. I know what would save a ton of money lets just get rid of the fire department while we are at it and develop an all volunteer force to. I mean if Chilli can go with a volunteer force why shouldnt peoria. Before I would want to turn the department over to the county I would want to see differences in training etc… between the two departments. Wait I just thought of something why not just use the national gaurd? We could just activate a unit of national gaurd and get rid of both departments I wonder if there is some cost savings there? Wait here is another idea how about we have a chief deputy who could appoint citizens as volunteer law enforcement (think wild west here) and we could just all patrol our own neighborhoods? Maybe I should send some of these ideas to Mr. Sandberg so he can bring them up at the next meeting?

  2. Your property insurance goes up if you have a volunteer fire department. Insurance rates do vary by what, if any, along with the quality of fire department there might be. You might save some money on taxes or in budgets but homeowners will see a significant insurance increase. I like my low insurance rates and the satisfaction of knowing that we have a top notch fire department.

  3. Considering Illinois has the quirk of granting every level of government the power of taxation, I’m surprised more city services haven’t been spun off into their own little districts yet. Fire protection districts aren’t that uncommon; it wouldn’t be a stretch to create a library district either. On one hand, it saves the city money… but on the other, it’s just one more line on your property taxes.

    Although I should be careful what I bring up… otherwise we could be stuck with fun ideas like a “Convention and Exposition Authority” a la McPier in Chicago to run the Civic Center and the new museum with little oversight…

  4. If you raise the rates in the pubic decks downtown you will drive all the parkers to the private decks that have much lower monthly rates. You will loose a lot more than you gain.
    This would be a huge mistake, can’t believe Gary would have not thought of the loss of business. I guess he knows best??

  5. I would predict that the private decks would raise their rates too. They are low because the city is artificially keeping prices down.

  6. With regard to the services that are provided in West Peoria–it is really best to “live West of Peoria.”

  7. Why have 2 police departments, Public Works, Fleet services,Inspections,Code,and the like. Uni-Gov time has come. Only the FD would be not provided by the City – County partnership. The city could spin off the fire deparmewnt into a fire district and they would be independent from the city. PAWS also is a city-county partnership.
    There is a City /County health department now.Also why have 2 election boards? “Pollitical Turf” will need to be surrendered. The chant for higher taxes by some needs to be stopped and partnerships be done to save tax $$$.

  8. Eliminating the $6 garbage tax is an excellent idea. Much better and fairer to support that through general taxation. As I recall, several politicians were elected on pledges to get rid of it.

    But what about universal recycling? Is that part of the mix?

  9. If the city continues to subsidize the parking garages to keep the rates lower how much are they actually netting from keeping them city lots? Is it worth it? Sell them or charge what it costs to run the service.

  10. We also have the township of Peoria and the city of Peoria, while the council serves as councilmen and trustees, we are paying for potentiallly duplicative services or positions whose duties could be absorbed. Other areas have metropolitian governments, combining all the local government services into on area. Louisville is a positive example, and yes I realize that there is a significant population differnce. The concept is the same. Addiitionally as the state is in the same fiscal arrangement, where could any combination of departments make sense. I have studied this so don’t have any suggestions, just thoughts. I think citizen groups need to band together and make reasonable suggestions on what we need and what we are willing to sacrifice. Are there other partnerships, say with the business community, that could be developed to increase community investment. Quite frankly, some on the council only think in terms of tax dollars, the community as a whole even with the current economic turndown, still is rich in resources. It involves thinking as community vs. a government entity.

  11. you can only charge so much for parking downtown before it become cost prohibitive to the tenants and the employees, many who must pay there own parking. Once you reach that point tenants will start looking else ware like out north and the cornfields were parking and land is much cheaper.
    Cat moving out of many of the downtown offices they have rented have opened up a bunch of parking spots in many of the public and private decks. The private and public decks are competing against each other for business so whoever has the cheaper rates is going to win.

  12. If the city isn’t making good money on the parking lots – they should get rid of them and stop subsidizing the the cost. If there are plenty of non-city lots available that people can use – let them.

  13. parking decks are usually built out of necessity not because they are money makers. You won’t find a buyer for them.

  14. Taking this a step further, is there any real reason why Peoria and East Peoria should not be one city? Everything (services,government) is doubled and the 2 cities fight each other over who will give the biggest subsidy or tax breaks to every new development.

  15. So, peoriafan, let me get this straight: You believe the city should continue competing with private parking decks, driving the rates ever lower, because it’s better for the city and private businesses to lose more money. And even though public and private decks are competing for parkers, and there are more spaces downtown than we need, raising city rates will cause parkers to move to private decks and also cause those companies to move to greenfield sites. And even though there’s a glut of parking, the public decks are still there by necessity. And even though they’re a necessity, no one will want to buy them, even though they will apparently buy the private decks so the private businesses can move out to the greenfield sites….

    Does that about cover it?

  16. If private parking decks can make a profit and stay in business with the current parking rates, why can’t the city do the same?

  17. Do an analysis of the city owned boondoggles and sell them off — parking decks, Gateway Building etc…… It is better to take a loss then to provide annual subsidies to money losers draining the taxpayer coffers.

    Governments should get out of the private sector —- parking decks, Gateway building, nursing home, museum, Riverplex —- please stop competing with private businesses who pay taxes and stop popping up business models with public dollars.

    Return to the basics —- police, fire, public works …. the cupcake vs. ice and sprinkles on the top while the cupcake deteriorates.

  18. I still say that a 10% cut in the largest departments is needed. It is obvious they have gotten too large with high salaries for upper management and middle management positions. Just freezing salaries is not enough.

  19. Peoriafan, “parking decks are usually built out of necessity not because they are money makers. You won’t find a buyer for them.”

    I think you will find parking decks are huge money makers if they are run correctly. You have a big piece of property that you do not have to heat, cool, provide plumbing, etc to and you are constantly turning over the customers.

    Parking in downtown Peoria is very inexpensive. I say allow the rates to raise and if people think it is too expensive, then let them take the bus.

    How about city vehicle stickers. Charge people $10 or $20 per vehicle. How much additional revenue will that generate?

  20. Eliminating the police department is just stupid! A city of this size needs a PD. Also, fire districts are generally used when a small town, has a fire department that also covers rural areas nearby. If Peoria Fire also covers the countryside out of the city, then it could very well be a fire district.

    Some cities, Crystal Lake in northern IL for example, have a city fire department that also runs a fire district. The city department covers the city, and the fire district contracts with the city to provide services outside the city. That may be workable in Peoria, but you still could not eliminate the city department.

  21. Not-for-profits ‘taxation’ has been discussed. I know many people who question the not-so-not-for-profit status of OSF, etc. Dare I even mention Bradley University…?

    In their defense, how many tax-paying people do they employ between the two?

    How many people will the multi-million dollar not-for-profit museum employee?

  22. mdd asks an interesting question about why E. Peoria and Peoria do not become one city.

    In order for the partnership to be successful, each partner must bring something substantial to the table. East Peoria seems to be doing very well for itself. Peoria on the other hand…..? Given the inflated egos of our mayors, city councils, etc, do we really think we could get the two cities to play nice together? I can still hear them laughing across the river because somehow that really ridiculous museum sales tax was passed! Oh…my mistake………..I meant ‘facilities tax.’

  23. All the suggestions presented here and/or at the public forums seem unlikely to go anywhere. According to the PJStar article the mayor only thinks a couple of things discussed at the last council meeting are worthwhile and there won’t be a lot of changes. And with the current city council composition what he says seems to go.

  24. I thought Sanberg just asked for the numbers……..I didnt realize he was proposing anything yet.

  25. diana

    you all know me, conservative fiscal libertarian

    without malice, if don’t like those people put a couple of bullets wounds in them

    I for you, more real estate taxes on new construction out north of town, and all the spending they think of, i am able and willing to pay more taxes

  26. Gary is well known for pulling peoples’ chains just for the fun of it and to stir the —; don’t you people get all riled up by him!

  27. We could just un-incorporate Peoria and become a part of the county. I don’t advocate that, but it’s no more crazy than some of the other ideas.

    Peoria and E Peoria becoming one town? I think there are too many egos and too many people holding power that none of them will go for that idea.

  28. Im sure EP would just jump at the chance to merge with Peoria. Crime, terrible schools, huge budget gap, white flight yeah what a great deal. Why would we force a higher rate of tax on new construction on North Peoria? They already pay a much higher rate in property taxes due to a higher home value then most of what I call “true Peoria.” Peoria knows that without the money generated from north expansion they would be in even worse fiscal condition. Do you realize how many people in the trades are employed by the north expansion?

    Call me crazy but I have always wondered why the city of Peoria didnt push to have a project like the Grand Prairie Mall move in to the riverfront area downtown? It seems that if a redevelopment project such as that could move into downtown the museum would be a better fit, more business for the restaurants and bars more foot traffic etc…With development such as that the inner city would begin to become a destination and would be more of a viable option for development thus making more money for the city.

  29. Gracious, over the years even West Peoria has passed up several “opportunities” to merge with Peoria. However, West Peoria is stuck with 150 schools.

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