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 estimates for 2027 by $250,000 (real-estate transfer tax) and $100,000 (building permits).
- Reducing sewer operating expenses by $600,000 in 2026 and foregoing a $2.0 million additional pension contribution for police & fire in 2027 (the city will still make its required pension payments).

Council members repeatedly cited the goal of avoiding immediate fee increases while using external grant funding and timing changes to preserve core services. Council member Kelly cautioned that foregoing the $2.0 million extra pension contribution in 2027 represented a long-term trade-off: "Moving or foregoing that $2,000,000 contribution means that we will be lacking the return on $2,000,000 for 13 years," Kelly said, noting the compounding effect on long-term pension liabilities.

Staff also summarized collection and receivables work. The finance director and city legal staff said the city carries roughly $35 million in past-due receivables (a carryover from prior years), with large shares tied to stormwater utility fees and municipal housing/environmental fines. Collection strategies cited during the meeting included property-leaning, memoranda of judgment filed in the county recorder's office, targeted settlements with commercial debtors and enrollment in the state/local debt-recovery program once the controller's office approves system access. City legal staff said stormwater accounts are generally higher-quality collectible debt and that a focused staff position to pursue liens and collections could produce a positive return on investment.

Council approved the nine budget motions by recorded votes; nearly all passed unanimously. One motion to add Exposition Gardens maintenance funds passed with one dissent (Council member Cyr). The council directed staff to complete the formal ordinances for final adoption at an upcoming meeting following the required Truth in Taxation hearing next week.

Why it matters: The package avoids immediate rate increases for consumers while relying on grant funding, project scheduling and operating adjustments to restore fiscal balance. It also postpones an additional pension payment the council had previously planned, a choice councilors acknowledged will increase long-term pension funding needs if markets do not offset the change.

Votes at a glance (selected agenda items and outcomes):

- Approval of minutes (09/23/2025 and special meeting 09/30/2025): Moved by Council member Riggenbach; seconded by Euler; outcome: approved unanimously.

- Town of the City of Peoria — October actual and November anticipated expenditures (Agenda 25-280): Mover: Council member Gordon Young; seconded by Trustee Allen; outcome: approved unanimously.

- Consent agenda (includes workers' compensation settlement $119,072.39; sewer cleaning/intergovernmental agreement $90,640 low bid + $9,064 contingency = $99,704; IDOT intersection project local cost $8,205 + contingencies; Gray Oak Subdivision dedication deed from Dean Custom Builders; ordinance amendment to Class K catering liquor license requirements; mayoral appointments to boards): Moved by Council member Cyr; seconded by Council member Allen; outcome: approved unanimously.

- First reading and council action — reduce membership of Transportation Commission from 11 to 9 (Agenda 25-289): Moved by Council member Kelly; seconded by Council member Jackson; outcome: approved unanimously (first-reading action recorded).

- Accept Organized Retail Crime Grant, Office of the Illinois Attorney General, $50,000 (Agenda 25-290): Moved by Council member Cyr; seconded by Council member Allen; outcome: approved unanimously; appropriation ordinance (supermajority required) also approved unanimously.

- Adopt nuisance-gathering ordinance (Agenda 25-291): Moved by Mayor Rita Ali; seconded by Council member Carmona; outcome: approved unanimously (see separate article).

- Receive and file month-ended 08/31/2025 unaudited financial report and audited financial report (Agenda 25-292): Moved by Council member Cyr; seconded by Council member Gordon Young; outcome: received and filed unanimously.

- Budget motions (selected):
• Freeze proposed 2026–27 garbage/sewer/stormwater fee increases (revenue reduction ≈ $1.10M in 2026, $1.14M in 2027): mover Council member Steer; outcome: approved unanimously.
• Defer construction: Hickory Grove Road ($1,030,000) and Sheridan Road ($1,600,000) moved to 2027 (design remains in 2026): mover Council member Cyr; outcome: approved unanimously.
• Add FRA corridor ID grant $6.4M: mover Council member Riggenbach; outcome: approved unanimously.
• Add Wisconsin Avenue state grant; frees $6.9M in MFT for other projects: mover Council member Riggenbach; outcome: approved unanimously.
• Add legislative land bank grant $2.0M (allocations: $1,201,100 in 2025; $789,900 in 2026) and add $100,000 in 2026 and 2027 for Exposition Gardens maintenance: mover Council member Euler (land bank) and Euler (maintenance); outcome: land bank approved unanimously; Exposition Gardens maintenance passed with one no (Cyr).
• Add SAFER fire department grant (amount not specified in discussion): mover Council member Riggenbach; outcome: approved unanimously.
• Increase 2027 revenue estimates: real-estate transfer tax +$250,000; building permits +$100,000: mover Council member Euler; outcome: approved unanimously.
• Reduce sewer operating expenses $600,000 (2026) and reduce extra police & fire pension contribution $2,000,000 (2027): mover Council member Cyr; outcome: approved unanimously.

Discussion highlights and staff clarifications: Finance Director Kyle Cratty said revenues are below budget by about 2.7% year-to-date largely because of timing of state grant receipts and lower interest income, but the city expects to meet budget once late-year receipts post. Staff reported $35 million in carried delinquent receivables (multi-year), with stormwater and housing/environmental fines the largest buckets; roughly $3–$4 million of stormwater balances are late fees. Corporation Counsel and the treasurer discussed collection tools including property liens/memoranda of judgment, negotiated settlements and joining the local debt-recovery program once IT/training access is available. Several council members emphasized the need to pursue collections while minimizing hardship for residents.

Next steps: The city will hold its Truth in Taxation hearing as scheduled next week; staff will prepare the ordinance language and appropriation documents required for the formal budget adoption at an upcoming regular meeting (staff indicated the November 4 business meeting is the next available date for final action).