Peoria begins biennial budget review; finance director flags pension, health-insurance and capital pressures

The Peoria City Council opened formal review of the 2026–27 biennial budget at a special meeting on Sept. 30, with Finance Director Kyle Cratty presenting details of revenue forecasts, expenditure assumptions, capital priorities and organizational goals tied to the council’s strategic plan.

Cratty told the council that accepting the levy estimate earlier in the meeting was only a procedural step and that the council would finalize the budget in the coming weeks. He framed the budget around six strategic priorities adopted by council — quality of life, infrastructure, downtown development, community safety, business growth and prosperity, and equity and inclusion — and described one organizational goal for each priority that staff will pursue in 2026.

Key budget figures presented by Cratty included $298 million in total revenues for 2026 (down 1.4% year-over-year), operational expenditures of $216.6 million (up 7.7%, driven largely by benefits and pension costs), and capital spending of $48.9 million (down 36.7% from the prior period, though staff said reclassifications to contractual lines partially explain the reduction). Cratty said the city is self-insured for health…