Peoria council balances 2026–27 budget with grants, project deferrals and fee freeze; land bank funds eyed for Exposition Gardens

Peoria City Council on Tuesday approved a package of budget amendments and accompanying motions intended to balance the city's 2026–27 biannual budget without the proposed increases to garbage, sewer and stormwater fees.

City staff presented six report-backs before the motions, including an update on American Rescue Plan Act (ARPA) spending, an unaudited month-end financial report and a review of delinquent receivables. Finance Director Kyle Cratty told council that revenues were slightly below budget year-to-date but that timing of state grants and some investment maturities explained the gap; he said the city still expected to meet budget expectations once later-year receipts were counted.

The nine motions the council adopted combined (a) a freeze on proposed household-fee increases, (b) moving major road construction outlays into 2027, (c) the addition of several external grants, (d) modest operating adjustments and (e) revenue updates. City Manager and staff said the net effect is to eliminate a roughly $3.1 million 2026 deficit and to bring both 2026 and 2027 budgets into balance.

Key financial moves approved by the council included:

- Freezing the proposed 2026–27 increases for garbage, sewer and stormwater fees, reducing projected revenue by approximately $1.10 million in 2026 and $1.14 million in 2027. - Deferring construction spending for Hickory Grove Road ($1,030,000) and Sheridan Road ($1,600,000) from 2026 into 2027 while leaving design and engineering work in the earlier year. - Adding a Federal Railroad Administration corridor ID grant for $6.4 million. - Appropriating a state grant for the Wisconsin Avenue project (Forest Hill to McClure) that will begin in 2027 and free roughly $6.9 million in state motor-fuel-tax allocations for other projects. - Adding a $2.0 million legislative land bank grant; staff earmarked $1,201,100 of that for 2025 (to be used toward acquisition activity including Exposition Gardens) and the remainder ($789,900) in 2026. - Adding $100,000 in each year (2026 and 2027) for Exposition Gardens maintenance and readiness costs. - Adding a SAFER grant to the Fire Department budget (amount not specified in discussion). - Increasing revenue…