Council faces grim budget realities

The Peoria City Council had their annual retreat Wednesday night at the Peoria NEXT Innovation Center on West Main street. All the council members, the Mayor, and City department heads attended the retreat.

I was unable to attend the entire retreat, but did get there for roughly half of it. Based on materials distributed at the meeting, revenues are down again, and they’re expecting another ten to eleven million dollar deficit. They also appear to be anticipating a possible decline in population. One of the slides labeled “Key Expense Drivers” stated, “5,000 Loss in Population equals Approximately $500,000/yr of per Capita Income — 1 person = $100/capita.”

The Journal Star reports that revenues are down for a few reasons: (1) “reduction in property tax revenues because of a slump in the city’s equalized assessed valuation” caused by “assessment devaluations of commercial properties throughout the city,” (2) “January’s sales tax figures dropped by 10 percent from their November and December numbers,” indicating a troubling trend, and (3) “state income tax revenues are down from a year ago.” Nothing but bad news from the finance director.

By the end of the meeting, the following “next steps” were established, which are nearly identical to last year’s budget process:

  1. City Manager: Sit down with the professionals and come back with a budget that shows the cuts that can be made.
  2. Look at all forms of revenue growth — everything is on the table.
  3. Department heads to sit with staff and consider additional budget modifications.
  4. Challenge to the staff to consider new, alternative, and creative forms of service delivery to reduce costs/enhance revenues.

Translation: Expect higher taxes and/or fees, the possible invention of new fees, and more cuts in services. The Mayor especially made it clear that he believes the budget hole cannot be filled by cutting alone — new revenue will have to be generated.

21 thoughts on “Council faces grim budget realities”

  1. Hotel loans are still on the table tho right?

    My property taxes went up 5.6% year over year from 2009-2008. My assessed value curiously went up 2% even tho property values fell sharply overall. I won’t be holding my breath to see a decreased assessment for 2010.

  2. LOL! And how many businesses didn’t start up, folded, or couldn’t expand their taxable revenue because the city denied liquor licenses to law-abiding, respectable businesses and/or entrepreneurs? I recall a lot of denials over the past few years.

  3. they raise taxes again, more people leave = higher deficit; they raise taxes again, more people leave = higher deficit; do you see a pattern here?

  4. No comment. I am packing my bags… heading for greener pastures [and a smarter city council].

    Thanks for all the fish.

  5. After enough economies collapse, some future generation will be blessed with political representatives who universally understand that when you tax something, you get less of it.

  6. I think its about time to re-instate the phrase, “Will the last one to leave Peoria, please turn out the lights?” i know i wont be hitting the switch, because we should be otta here by the Fall. Will the grass really be greener elsewhere? we have no idea. But, things cant be any worse and we are willing to take our chances.

  7. our property taxes are just $100 shy from doubling in the past three years. We cannot afford additional property taxes. It’s not all through the city, the county, the library, the school district.

  8. CJ: I really wanted to comment about the trail post and all the money spent on various things but you must have comments turned off for that post. So, I’ll just say you forgot to list the what $40 million library upgrade.

  9. Emtronics — I don’t know why it took so long for your comment to show up under the latest post, but it came through right after I received your comment for this post. I double-checked, and comments are turned on for the post.

  10. If you access from Opening page by using ” Latest from the Chronicle” Banner there is no link to post comment. If you access thru article then there are comments.

  11. Paul: And I ask you — what are we getting for these new taxes? Are the streets better repaired? No. Do residents feel safer? No. Did they install sidewalks in the parts of the city that have never had them? No. Hell, these gang of dolts vote to approve new subdivisions without adequate sidewalks because the poor, poor, developers don’t want the expense. Are they using it to enforce zoning codes? Well, they do enforce codes if by that you mean they give warning tickets to those who make complaints about more serious violations.

  12. Precinct,
    After reading c.J.s last post about the Kellar Branch Trail, ‘Jo-Bob’ County in ‘Any-State’ U.S.A. would be better than Peoria City Council. Are you serious?

    No wonder your esteemed council is in……
    Full ‘Retreat’! Har!

  13. tell Peoria,
    our neighborhood association met last night. one Councilman Montelongo came to ask input for the city budget talks. We live in an older part of the city. Our crime rates are 1.25 major crime per day and this is what the police catch. When we had POP officers and a full compliment of district officers, working with association members and businesses we dropped crime in the most ardent criminal area by 66%. Now our one officer cannot keep with the calls. There is an increase in the number of firearm related incidents including a criminals kicking the door of a residence, shooting guns in the house, scaring the hell out of the people and robbing them. Bradley has one person point a gun at someone and it’s news and two more officers quickly are patrolling there. Our District councilwoman told our association when asked by an 80 year old residents when the sidewalks on her street would be fixed responded that they weren’t bad enough. Essentially until someone sues they are not considered dangerous, although two other councilmembers who have walked the street tripped on the same “safe” sidewalks. We have a police camera that should be a huge tool to proactively attack crime in progress, which is used to review the crime after it happens. Grass is knee deep in at least a dozen houses and soon mosquito populations will be rivaling the darkest depths of Africa due to the Lazy SOB’s who toss their tires into our alleys instead of paying the darn $3.00 disposal fee.

    What are we getting? the raise in taxes was due to a highly increased assessed value of our home. Unless this house sells before 10am on a Sunday, before the thugs wake up to shoot at each other, stand in the street both flagging down cars or just yelling at them in general, we won’t get squat for it, despite the care to keep it up.

    We approved the libary index. The other raises in taxes, we did not. marketing by those that directly benefit herded the necessary sheep to vote for other items.

    We need to reduce debt service. We need to look at the 5 year projects and put capital projects on hold and transfer those funds to the operating budget as a temporary spending gap measure. District council people need to be prudent with thier discretionary funds and get full council approval for expenditures vs. shoring up any pet projects, neighborhoods, organizations under the spending limit wire. We need to stop tossing good money after bad into bad rehabiliation specialists, developers, etc. We need to build business bases and retain them, but not give away our shirts doing it. We need to strongly address bad landlord/tenants by using our home rule ability to move some ordinances to criminal misdemeanors, which will either force bad landlord/tenants who won’t keep up properties and/or pay fines to be responsible or have a six month stay at the counties greybar inn. That saves in two ways, increased revenues that aren’t being collected and a savings on staff time because we won’t be paying to tag as many houses in the first place or paying to mow some slugs yard collecting $900 a month section 8 on a house that no one should ever be forced to live in. Plus propety values remain stable, encouraging more home ownership, bringing more positive people back into stressed areas.
    We need to enforce the tickets written. Sorry if you walk in the street when there is a sidewalk, crank your music waking up the dead or other illegal and simply disrespectful behavior then you pay your ticket. There is no coorelation that I can find in any study that I know of that link pigmentation to these behaviors, therefore they are choices, and bad choices lead to bad consequences. It is simple respect for others across socio-economic, religious, gender, and race. If someone has a study please post it.

    someone get me one of those blue boxes…..

  14. Precinct,

    My apologies. You just struck me as the type who would own a “Go Peoria City Council” t-shirt, ball cap, coffee mug, boxer shorts, bumper sticker……..

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