Tag Archives: Henry Holling

City of Peoria

City anticipates $10 million budget deficit

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From the City of Peoria’s “Issues Update”:

At the present time, with no changes, the City is projecting a potential budget deficit for 2010 of $10,046,499. This budget is based on re-forecasted revenues and expense increases based on historical patterns. Those increases include:

  • 4.75% wage increases for represented employees;
  • 3.5% wage increases for management-class employees;
  • 1.5% increase in supply costs;
  • 2.5% increase in contractual costs; and,
  • 10% increase in the cost of healthcare.

The potential budget deficit represents a significant, yet fully-realized, challenge as the process for addressing the gap begins. While anticipated improvements in the economy may lessen the impact, the reality is that the City has an underlying structural issue of the rate of expense increases outpacing the rate revenue increases.

Given the size of the deficit, the City is not waiting until the Fall to begin its budget process. A team of senior staff leaders, including the Police, Fire and Public Works Departments, has continued the year-round work of identifying potential solutions. That team will be joined by three members of the City Council, to be appointed by the Mayor, who will collaborate with staff to craft a joint Council-Administration plan. Initial direction from the full Council will be solicited at the June 9, 2009 regular meeting, and opportunities for public participation and input are being organized. The City Manager is also meeting with representatives of the City’s employee unions next week.

The budget issues are serious. However, recent experiences in addressing 2009 budget issues prove that a well-designed process, open communication, creativity and teamwork will produce a similar positive result.

Here’s the detailed report from Finance Director Jim Scroggins:
PDF Link Prelimnary 2010-2013 Budget

Mayor Ardis was quoted by the Journal Star as saying, “The first answer the council comes up with will not be to raise taxes. In light of what is going on at (District 150) and other taxing bodies coming out and raising taxes significantly, that’s not what we’re going to do. There will be some type of revenue enhancements and most likely service cuts while the economy stays like this. Everything will be on the table for discussion.”

Everything will be on the table? I doubt it. I’ll bet privatizing the city’s parking decks won’t be on the table. Nor will changing the redevelopment agreement with the museum group to put more of the Sears block back on the tax rolls. Nor will selling the Kellar Branch to Pioneer Railcorp, which would give the city three-quarters of a million dollars immediately. Nor is raising taxes to cover essential services being given serious consideration even though the mayor (and nearly every other city and county leader) supported raising taxes for the aforementioned non-essential museum.

I also find it interesting that the budget cuts this year are described in the Issues Update as a “positive result,” even though seal-coating of roads was cut by 50%, and code enforcement and police suffered cuts as well. The fire department is fearful that they’ll be the next department to be hit. While these departments are facing cuts, the Civic Center just completed a $55 million expansion, the city has committed to give $40 million to a private hotel developer, and the county has just committed $40 million to the proposed downtown museum.

Peoria has millions for bread and circuses, while basic services suffer.

City of Peoria, Museum Block

About those “Build the Block” banners on light poles…

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Some have been wondering why the “Build the Block” campaign is able to put banners on the light poles around the city and who pays to put them up and take them down. I asked Interim City Manager Henry Holling about that issue and received this response:

Good day Mr. Summers. Thanks for your inquiry on City banners and the current display of “Build the Block”. The current banner display was paid for by Lakeview Museum, a principal partner in “Build the Block” and includes labor by City sign crews to post and remove; the sponsoring organization pays for all materials, design and artwork. City banner policy is that only requests from community-based non-profit, non-partisan, non-discriminatory, community-service organizations will be considered on a first come/first served basis. There is typically a wait of 90 to 120 days to get in the present queue. “Build the Block” was kicked off last June as the tagline for the huge Caterpillar Visitor Center/Museum $135 million project. Among others, the City of Peoria is a partner in the project as mentioned in the Mayor’s State of the City address. “Build the Block” was initiated way before the approval by the County Board of a referendum April 7, 2009. In fact, “Build the Block” banners were posted downtown last June, 2008 as part of the educational and communication initiative tied to the event of a massive positive development at the riverfront. Appreciate your interest in this spectacular project for Peoria.
Henry

What’s going on here? you ask. Well, it’s a combination of legal requirements and clever marketing.

You see, Lakeview and the rest of the Museum Collaboration Group cannot advocate for or against a political issue or candidate because they’re a not-for-profit organization. But they can do anything else, such as educate the public on their museum plans and solicit private donations and public subsidies. The “Build the Block” banners fall under that category. They’re put up by Lakeview, the not-for-profit organization, and they say nothing about the referendum.

All the signs and mailings that say explicitly to “vote yes” on the public facilities sales tax referendum are produced by a legally separate organization called “Friends of Build the Block.” This is a political advocacy group. If you look at the small print on these signs and postcards, you’ll see it says “Paid for by Friends of Build the Block.”

Here’s where the clever marketing comes in. Both organizations use the same graphic elements in their materials. They both use the “Build the Block” logo, the same fonts, the same kind of layout and design. So in the minds of residents and voters, the legal division between the two groups is transparent — that is, the average voter sees no difference between them. It all looks like one organization.

So, when Joe Citizen sees a banner hanging on a city light pole, his mind associates “Build the Block” with the “vote yes” literature he’s received in the mail. Ta-dah! All of the museum group’s advertising is effective in advocating for the referendum even though some of it doesn’t explicitly say so. To get a festive attribute get a banner for thanksgiving and enjoy the coming holiday.

City of Peoria

City manager search suspended; Holling’s contract to be extended

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From a press release:

For the past five months the City Council has been engaged in an intensive search process for a permanent City Manger. The process produced several excellent candidates. We interviewed three well-qualified individuals. One candidate was a consensus choice of the council. Two weeks ago the City Council offered the position to Mr. Eric Stuckey, Assistant County Administrator of Hamilton County, Ohio (Cincinnati). Mr. Stuckey was very impressed with the opportunity in Peoria and visited with us on two occasions. He was also interviewing for a similar position and in the end he selected a position in Franklin, Tennessee because of family considerations.

Based on past City Manager search experience, and with the advice of our consultant Jim Mercer, the City Council has elected to postpone further search activities until after the first of the year. The coming holidays, ongoing national economic concerns and local spring elections would all suggest suspending the search a couple months.

The City is fortunate to have a seasoned administrative team in place with leadership by Interim City Manger Henry Holling. The City Council and staff have continued to move Peoria city government forward. Important projects and critical services are progressing. We will have a balanced budget for 2009 in very challenging economic times with no service cuts and no tax increases.

Our plan is to continue the present Interim City Manger arrangement and remain focused on our vision of an excellent quality of urban life … vibrant, progressive, diverse and welcoming.