The new City Manager Scott Moore will have to forego the traditional “honeymoon” period new managers usually enjoy. He gets the unenviable job of reporting this distressing news to the council at his very first meeting:
The Finance Department is now projecting the FY2010 budget deficit to be $14.5 million. This re-forecasting is the result of continued poor performance in City revenues, especially sales tax receipts.
The Finance Department had previously predicted a deficit of $10.5 million, which was already unbearable. The new deficit projection is 38% higher. Ouch.
As an aside, I thought it was interesting that he says, “especially sales tax receipts.” I wonder what effect these “especially” lower sales tax receipts are having (or will have) on a couple of new sales taxes — the Hospitality Improvement Zone (HIZ) tax and the upcoming public facilities (museum) tax. And, conversely, what effect the addition of these new taxes will have on future sales tax receipts. Sales taxes are largely voluntary. If consumers don’t want to pay them, they simply make their purchases in one of the surrounding communities, like East Peoria. As taxes go up, I wonder how much more business Peoria will lose.
But I digress. What does this mean for city services? Read on:
A total of 46 positions have been identified for complete elimination and 14 have been identified for seasonal lay-off…. The Police Department will be faced with reducing its fore by 17 officers. The Fire Department is faced with eliminating 15 positions, including shutting down one fire company. If the Firefighters Local 50 had not conceded their 2010 wage increases, the closing of a second fire company would be facing the department. Other front-line departments like Public Works and Emergency Communications could also expect critical losses in service delivery internally and externally. Information Systems and Legal will lead to serious interruptions and delays that will impact front-line departments and citizens alike.
The report goes on to say, however, “The critical loss of services and the crippling effect of many of these changes is likely unacceptable,” and asks for more direction from the council. I’m not sure what else the council could do to reduce expenses; I think there’s going to have to be some talk about raising taxes — specifically property taxes — to mitigate some of these cuts. Property taxes are not volatile like sales taxes.
With sales taxes, the city sets the rate and then gets revenue based on public purchasing. When people don’t go shopping as much or shop somewhere else, revenue goes down. With property taxes, however, the city starts by determining the amount of money it needs to receive (called a “levy”) and then the necessary tax rate to raise that amount is figured based on the equalized assessed value (EAV) of property within the city. Thus the city is more or less guaranteed to receive the money it requests in this way.
The question is, what will public reaction be? Will they rather see draconian cuts to police and fire, or fewer cuts coupled with an increase in their tax rates to maintain an adequate level of service?
CJ – It’s worse. My understanding is that on Tuesday night the City Council will be voting on defunding the Peoria Animal Welfare Shelter. That would be a public safety nightmare….I think Lauren Malmberg will be making a statement shortly in that regard.
CJ…
Peoria has poor city services, high taxes, and terrible schools. What is the incentive to live here?
People that advocate raising property taxes, sales taxes, and other “levies” take note of Peoria. Taxes are not a zero sum game. Just because you raise taxes doesn’t mean that you will automatically gain revenue. People have a choice, and people are resourceful. They will find ways around impediments to their success. Even if it means moving to Dunlap or across the river.
The secret fix to this problem, and I say secret because it is obvious but no one seems to understand it, is to make Peoria a more attractive location to live. Lower taxes, reduce regulations, and provide reasons to move to Peoria. Get the government out of the way, and let the talented people of Peoria succeed. People need to be able to produce without looking over their shoulder trying to avoid the long arm of the Treasurer.
Lastly, it is obvious that the money for schools and police services are being wasted on other projects that have little to no importance to people not associated with them. Its time to do what all responsible people do when they are in debt, cut nonessential spending and focus on just surviving (police, schools, maintenance). Right now, Peoria is in a fight to survive, its time to start acting like it.
“The secret fix to this problem, and I say secret because it is obvious but no one seems to understand it”
That’s because it doesn’t typically work. You have to provide a floor of city services, otherwise people don’t move to the city. It’s a vicious downward spiral, where services decline, people move out, tax receipts decline, so services decline, people move out, tax receipts decline, etc.
The secret fix to Peoria’s school problem is better leadership. It’s a huge mistake to close a high school with more than 800 students and decades of tradition behind it. That will send even more people moving to Dunlap and across the river. There are other ways to save money. (Peoria already has very high per–pupil funding, and if the money had been used wisely District 150 would not be in this fix.)
People stay in a community because it is just that, a community. In some Chicago burbs, people pay much higher taxes than in Peoria, but stay there because of the overall community and its amenities — schools, shops, restaurants, trails (!), parks, etc.
Peoria has turned its city leadership over to the developers, and so is ‘auto-city’ everywhere except the inner rings of the city. Developers want cheap land and have paved over or developed acres of precious farmland on Peoria’s outskirts. But the future is with bike-able, walkable smaller communities, neighborhood schools and parks, not huge McMansions in the distant burbs and overcrowded inner city high schools.
Yes, I agree with Elaine. It would be interesting to see what would happen if all students were sent back to their home schools. I know many have escaped to other communities and/or private schools, but I believe a significant number are hiding out in other places in 150–remember the accusations of changes of address at Lindbergh. There are legitimate ways of escaping neighborhood schools (Edison, etc.) and there are less legitimate ways. I understand the current need for escape. Once again, I suggest the alternative school should come first–then send students back to their home schools and drop all the escape routes.
It’s time to give up on the “tradition” that is Woodruff. Tradition does not exist with a building. Peoria has too many high schools, the board made the proper decision. Moving on…
James–and your connection to and knowledge about 150? I do agree that traditiion doesn’t exist with a building–but the history of the students and its teachers. However, some of us have other reasons for believing Woodruff shouldn’t be closed. I am a 1955 Woodruff graduate, but my nostalgia has nothing to do with my feelings about closing the school. I switched my allegiance to Manual long ago–but now think it should be on the list for closing ahead of Woodruff–but still believe no school should be closed at the moment.
So anyway, back on topic…..
Mr. Moore definitely has his work cut out for him. I think you’re right, property taxes are one of the few remaining ways to generate some quick revenue. Of course with unemployment the way it is, you may see a lot of people who are unable to pay their current property taxes, let alone a hike on top of that.
Overall, the council, mayor, and the schools need to take a good, hard look. The days of “Will it play in Peoria?” are long gone….the idea of a museum drawing crowds nationwide is preposterous, Peoria’s arrogance could very well be its own demise. Fix the core issues, then you can worry about your tourist traps.
To me, what is so utterly disgusting about all this debate is how very few people that should be able to make a difference see how all of this mess is intertwined and related and impacts all other parts of the city.
And if one does not believe this, then take a good look at East Peoria and how their development has been dependent upon one thing: the simple movement of a gambling facility because of one’s morality issues.
The planning, growth and development of this town is like a spider-web and as Native Americans believe, when you pull on one strand, the whole web is influenced. The people at city hall seem to ignore this and the stale planners there should have been let go a long time ago.
As Cameron typed, if these fools believe a museum or a 500 bed hotel are the answers they are crazy. People who think like this should be fired.
And really, does anyone think that a financial planner who was off 38 percent in projections would have a job in the private sector for long? Not only that, be praised at a city council meeting for their great work?
People at city hall need to start looking longer term and start coming up with ideas to build the tax base and population in Peoria. Laying off police at a time when it is being reported Peoria as more gang members per capita is not the answer. Nor is it the answer when expecting a 500 bed hotel to remain filled.
Oh for crying out loud. Closing a high school has nothing to do with Peoria’s financial problems. Nothing. Raising property taxes is easy and quick, but when property values fall because of empty homes and businesses, then so goes the “raise”. Remember our Mayor says; “It’s better here” another bullsh#t line.
Simple, dump the museum, dump the hotel (let the developer pay for it) concentrate on police, crime, fire, and basic city services. Make Peoria safer and the streets cleaner. Sell off the land we own like the Sears lot. I’ll bet CAT buys it and then we can tax it. Dump the endless loopholes and nets one has to jump through just to open a business in this town. How worse can it get? Start enforcing the codes on the books vigorously and start assessing fines. Raise the parking rates on our decks or sell them off, stop subsiding them because people whine it’s too far to walk. Tell the Civic Center that the top jobs there are gone unless you turn a profit and then if that doesn’t work fire them and hire a management company that will turn a profit. No more HRA Tax to support it. Start cleaning out top jobs at city hall that make 6 figures a year. Obviously they aren’t doing their jobs otherwise someone could have seen this debt coming. No, wait, they did see it coming some years ago but did nothing. Fire them.
We need to clean house here. Even our city buses look like Chicago rejects. (They are). I was in a small burb outside Joliet last week and their buses were clean and new. What is going on at CityLink? Someplace somewhere, money is going down a hole and we need to plug it, get our priorities right and when (if) we recover, then hand out those bonuses.
To append to post above – end all the handouts. The Link Cards, The Public Housing, the state checks. The handouts are killing us. Our schools, our neighborhoods, our city. Everyone must work if they are able, regardless the job. Stop the handouts.
I don’t think the buses are Chicago rejects. I lived in Chicago many years and they run their buses until they won’t run anymore. Chicago does buy new buses though.
I have been on CityLink buses that have come from Minneapolis and Rochester. Not sure if it was Rochester MN or NY, but some of them even have markings inside that indicate where they were from.
I agree. Peoria’s city council and school boards all should be replaced. When the city is having such financial problems, giving a developer $40 mil is ridiculous. They are too busy worrying about the future that they are forgetting to deal with the present.
The city isn’t paying for the museum, the citizens of the county voted for that.
“… I’m being flagged down… Home invasion in progress…officer requests backup, over…”
PPD dispatch: ” Your nearest backup is 10 minutes away…”
” Call East Peoria now! Help!”
Emtronics, I agree with most of what you said, but I believe a school closing has everything to do with the state of Peoria’s finances. If things were “better here,” people would be moving into the city instead of out of it and we wouldn’t need to close a school. I can’t believe they are laying off police officers. Firefighters and police are the last ones that should go.
Transportation should be one of our city’s biggest assets, but when people don’t ride it how are they supposed to finance it?
Unfortunately, we just had a city/state election. Wait until next time though……
I hope our ‘voices’ will be heard at the polls. I wonder how a ‘museum’ tax vote would turn out now? We [they] should have seen this coming. Somehow I feel our esteemed civic leaders knew this was going to happen. Peoria is on fire [figuratively speaking] and our city council men and women are collectively playing the fiddle.
Read carefully – there could be a test later. The Peoria plan now appears to be:
Build a hotel with unneeded capacity replacing existing buildings of architectural interest and adequate business with funds collected from already existing but under used facilities.
Build a new museum to replace an already scarcely attended facility.
Reduce police and fire personnel in a city with an above National average crime rate.
Increase occupancy and business activity along Washington Street while reducing the lanes for vehicle access.
I’d like to take this time to thank our loud mouth, womanizing, but oh so moral ex-mayor maloof. Thanks to you and your christian moral crusaders! the paradice located and built a great looking area around the boat, complete with luxury hotel! Just think…no build the block, no build the al’s block, a somewhat vibrant downtown/riverfront with plenty of foot traffic to go around and an all year 24 hour attraction! Seems like a lot of the problems could have been solved.
But please continue your crotchety old man ways with bradley. when they refuse to let a guy who gambled on his own game into their hall of fame, remember some of the arguments you made against gambling in this town…
CJ:
I think the sales tax vs property tax argument is about like an in-call girl and and out-call girl arguing as to which is the lesser whore. And I think Rick Baker would agree.
Property taxes are an annual sales tax on the cost of living in a particular location. And while the “residential or commercial property consumer”‘s reaction may be delayed as compared to a sales tax, getting that consumer back is probably going to take longer.
Peoria and its various units of government do not seem to realize that they are in competition for consumers of public services and that the smaller, more efficient and homogeneous communities around Peoria, are quite frankly, kicking Peoria’s ass when it comes to delivering “value”.
I think as a professional sort of consultant that you are, if you sat down with a Tri-County focus group and asked them to list what was most important to them as consumers of public services the list might look something like this:
#1 – Safety ;
#2 – low taxes;
#3 – good schools
#4 – convenient shopping
Now if you look at this as a version of “Family Feud”, museums, libraries, bike trails and riverfront walkways don’t even make it into the top of the list. Sorry, but those are just not the top priorities for the majority of people, especially the average family with 1 or more incomes and a couple of kids.
Then you look at the population of people that due to economic circumstances don’t have the same or CAN’T AFFORD THE SAME priorities as those who purchase homes in Morton, E Peoria et al. Their list of priorities will look something like:
#1 – affordable housing (as in I had a relative I could stay with);
#2 – public transportation, because I could not afford a car;
#3 – social services was nearby – and lets include in this answer the methadone clinic, 12 step support group, more than one Goodwill Store, soup kitchen, and perhaps a work release center and HIV/AIDS treatment clinic;
#4 – medical care;
#5 – entry level jobs on public transportation routes.
Peoria governmental units have long been addicted to increasingly burdening a decreasing population of productive citizens to protect and provide for a growing population of less than productive citizens.
Having watched Detroit for the last 3 years and learned of its history, I see Peoria following in the pattern of decline and predict that the worst is yet to come and that like Detroit, the City and School District will be bankrupt, absent a State bailout as the state of Michigan has had to do for City of Detroit and its school district. But the bailout of Detroit achieved for Dertoit through the legislative block of votes in the Black Caucus and Unions (teacher and auto) will not be an option for Peoria.
If I had to predict, while I see is the private industry and institutions buying up and tearing down depreciated property block by block and depopulating the older neighborhoods of any low income housing of which they are not the benefactor and title holder.
Here is an example of how that works. St Francis, through indirect funding and influence of non-for-profit board members who have professional and personal connections to people that work at St Francis, pushes a low income housing project on Perry and Voris St. The low income house is for low income parents with low income children who will have low income test scores in the low income classes at Irving Grade School.
Two parent families with two parent incomes that were still living in the area don’t work so hard to send their kid to classes focused on low income kids, so they sell their house to a landlord and move across the river so that their kid can go to a more competitive school. The landlord fills the void in his house with low income parents of low income kids who will settle for the low income classes at the low income school.
The low income property will get torn up over and over again by the low income parolee who beats the low income mom of the low income kids and eventually the landlord looks to get rid of his low income headache and who does he find as a buyer? You guessed it….the Sisters of St Francis.
Bradley, Caterpillar as institutions they have nothing but time to wait while the little guy and gal just trying to make their little place in the world grow up, get a clue, move across the river and every day at 5:00 pm exit the St Francis parking deck, across the bridge and happily stopping by the Super Walmart on their way to an East Peoria suburb.
My prediction is that on this road to taxation perdition, is that the Peoria city council will raise property taxes and within 2 years will be talking about the need for an income tax. Like Detroit, Peoria’s population will decline significantly each year while the surrounding townships and villages will see growth in their populations. Eventually, due to the loss in population, Peoria will not have the representation on the County Board, or state representative offices that it once had, but Peoria probably will have a majority African American population along with its first African American mayor.
….ok getting late…..but I am very interested in reading the responses…..
Well Chase, you had me at least on the first part of your blog. Families want, what they want, and clearly it is not what the City of Peoria and District 150 are offering. Sharon argues that somehow we should have kept all these folks from escaping??? What?, make em take what is being offered, like it or not??? I blog constantly about the value of creating charter or magnets schools and/or academies within the District that offer a more competitive academic choice and I am branded an elitist. I am a realist and clearly what Chase describes is how many families feel, all you have to do is look at the growth in neighboring communities. And as sctobrien states, all matters are interconnected. Even if the District offered a more pristine school experience there is still the issue of housing costs and property taxes. Property taxes in Peoria almost make it unaffordable for young families to live.
Chase, I bet you are enjoying it in Ann Arbor.
Peoria – Detroit… Interesting comparison.
Who gets to play the role of
Coleman A. Young?
John D. Dingell?
sctobrien: Exactly. Try to explain that to many citizens who do not live in an older neighborhood and you usually get a glazed over look. I have been saying these very details in public meetings for 15 years and again, glazed over looks or you are not progressive …..
Emtronics: Exactly. Terminate these money pits before they get started and concentrate on BEST (Basic Essential Services Today).
Chase: Interesting. Yup — safety, schools, infrastructure … same BEST.
Irving is slated for closure so that part of your theory may have holes. On the Near Northside — OSF continues to expand and more and more social service agency facilities — an increase in transitional services from the prison system vs. some of the previous serious mental health group homes. Wondering if the money has dried up for the first service group to being increased for the second service group? Follow the money.
Peoria can be likened to a one stop shop for social services — there is some level of need for these services. Few are in District 5 — price of real estate and the lack of political will to share the neighborhoods for all districts to help support transitioning.
And since housing is affordable here — why would people pay $200,000 for a dwelling in Chicago when they can come to an older neighborhood and get something for $45,000 – $60,000 or less and fix it up and not be paying for it for thirty years and get employment and so on….
Endless cycle — icing and sprinkles for an ever deteriorating cupcake.
Frustrated: I think you may have misinterpreted what I said. You said that I thought we should have “kept” people from escaping. I was speaking of the original impetus for escape–and that clearly was white flight–it is why Peoria Christian and Richwoods were built–at least, the timing makes it hard to deny and I was privy to conversations in the late 1950s that convinced me that that was very much the case. I wasn’t making any pronouncement about what should have happened–I was just wishing that it hadn’t happened. Nobody could have kept it from happening. I don’t know where you were in the 1950s or 1960s, but I think if everyone would have stayed put, the integrated public school could have succeeded–I think we did it at Manual for 10 to 20 years–but by then everyone was fleeing the south end and probably the most devasting flight then was by the stable black families in the south end. As long as I’m wishing, I will say that I wish the gang and drug culture hadn’t taken hold–and wish that some of my former students hadn’t gotten caught up in the temptation to make the money to be the providers for the whole city. Stop the drug trade–and the public schools would make a miraculous transformation–but now even the children of the elite in whatever schools to which they escape will still be exposed to and tempted by the drug cullture–if not by the sellers than by the users. That’s the horror of the world today–and I believe the root cause of our problems.
Karrie and Chase…..agreed.
All frosting while the cake spoils.
Still waiting for the miracle museum to arrive.
The Ingersoll commentary is profound: “Peoria governmental units have long been addicted to increasingly burdening a decreasing population of productive citizens to protect and provide for a growing population of less than productive citizens.”
The combination of post WWII housing units, Taft, Harrison, and Warner, evolved from being temporary housing for transient and low income people into becoming a housing industry for generations of people. As some moved on, others drifted in and it became increasingly ghettoized. The program eventually expanded through out the city as builders, bankers, government bureaucrats jumped into the housing game gravy train. They did not solve or even attempt to solve the social, economic, and cultural problems and seem happy to take the money and run.
Daily, I see a significant population not working – consuming resources, passing along a culture of indifference and dependence to their youngsters.
Problems of culture, economics, and race have mellowed in the U.S. However, the lack of serious focus leaves cities like Peoria, Detroit, Saint Louis, Cincinnati… in a turmoil of two Americas. U.S. cities have devolved into the likeness of European cities of a century ago. Fewer landowners, more tenants, small class of wealthy people using political power to provide and protect their economic interests and personal well being.
The ‘Emtronics’ commentary should be written down in a list sequence, provided to the City Chiefs (no sleight meant to the Indians), and monitored for progress.
I’d add two more to that list. 1. Term limits of two per person in all levels of elected government office with pay. 2. No pay or benefit raises for officials can be effected during the time they serve. What they start with is what they get.
Frustrated:
Yes, I am enjoying Ann Arbor. It makes the Top 10 list of healthy places to live along with top 10 as far as non-metropolitan Downtowns. My step mother lives in Groveland, but she loves coming to Ann Arbor, and especially downtown Ann Arbor.
Sure, Michigan has economic problems, but Ann Arbor is to a large degree insulated because of the large, international educational institutions, 3 major hospital systems and being the center of high tech development (not production but R & D) for a number of international companies. Ann Arbor is #2 in the country for Venture Capital Funds, right behind Mountain View California.
Like the City of Peoria, Ann Arbor’s municipality is facing cutbacks, but nowhere near the same degree. But the primary difference is that Ann Arbor is a coveted place to live, not just within Michigan, but around the world, whereas if you mention that you are from Peoria, Illinois, most people are going to feel sorry for you, or if they are from Chicago, they will probably spit on you.
I was in Toronto a couple of weeks ago, and how interesting that was to see a place where the the economy and housing market is still thriving. I saw more cranes in Missassagua (suburb of Toronto) than I did in Chicago two days before.
Is it to early to say the museum is finished?
Any chance of Peoria City going after that coveted 1% tax?
Chase – I visited and had the Ann Arbor “experience”, so I understand. It is frustrating that Peoria is not able to pull that “experience” together on a smaller scale. Peoria has a thriving university, a top-notch medical community, a Fortune 100 Co., a riverfront, a civic center, athletic team, etc. . .What is stopping the area from developing into a more vibrant community???
But Ann Arbor has a educational community that is considered an INTERNATIONAL MECCA. Top students, from around the world, with their ancillary personal and professional connections come to Ann Arbor and remain after graduation to work in or start up new companies.
Yes, a great deal of this is Auto R&D but it is also medical, defense industry and for the past couple of decades, Information Technology.
Unlike Peoria, Ann Arbor gets rid of subsidized housing, except for the elderly or students that is anywhere near downtown, encouraging up scale private investment. Ann Arbor also has a DDA – Downtown Development Authority….there is a Sandbergian history to how the City mismanaged parking….which controls the parking garages and meters and that is controlled by the business interests downtown, rather than the municipality.
Ann Arbor business, restaurants and entertainment pull in dollars from all over Michigan. People in Lansing (70 miles away) Bloomfield (50 miles), Toledo, Detroit of course come to have dinner on the sidewalk on Main Street of Ann Arbor. Monday nights there is no street parking available and the parking decks are 75% full. And there is no special event, it is just people driving (non-students) coming to the bistros, art galleries, shows and yoga studios.
And 8 Saturdays in the fall, 110,000 people mass at the stadium while an equal number within a 2 mile radius are spilling out of the pubs and into the streets.
The only way for Peoria to come even close to this would be the merger of the medical corporate, university/educational campuses with the downtown. Peoria would be much improved if Bradley University and Illinois Central College sat right on top of Downtown. In Ann Arbor in addition to the 40-50k U of M students you have within 7 miles you have Eastern Michigan (like ISU), Washtenaw Community College, Concordia, and Cooley Law School. And you have two major hospital system and the Veterans Administration hospital.
Ann Arbor is in the higher education business. Peoria is in the social services business.