Peoria adopts $1.9 billion 10‑year CIP, tentatively sets $1.19 billion FY2026 budget with no tax‑rate increases

Peoria City Council on May 13 approved a 10‑year capital improvement program (CIP) totaling about $1.9 billion and adopted a tentative fiscal year 2026 budget that sets maximum spending authority at $1.192 billion. Both actions passed by 7‑0 voice votes.

Deputy City Manager Kevin Burke and Finance staff told council the 10‑year CIP allocates roughly one‑third of the program to water and wastewater, more than one‑quarter to the Peoria Innovation Core, and about 17 percent to streets and traffic control. The FY2026 capital budget is about $572 million, of which approximately $294 million is carryover from FY2025. Staff said the full CIP includes 266 projects spread over the decade.

Burke said funding sources include roughly 22 percent debt (various bond types), about 20 percent developer impact fees, a near‑20 percent share tied to Peoria Innovation Core reimbursements, and portions from utility rates and the transportation sales tax. He said some costs tied to growth are expected to be covered by impact fees and that the Innovation Core model anticipates reimbursement and reinvestment of initial city investment.

Key additions since the council budget study session include $3 million for design of a recreation center at Paloma Community Park (design only, no construction funding included), $10 million for Peoria Sports Complex auxiliary field improvements funded from reserved half‑cent economic development tax capacity, and $4 million for emergency communications equipment with anticipated outside grants.

On the operating side, the tentative FY2026 budget was presented as balanced and sustainable and included no increases to the city’s sales tax rate (1.8% for general retail) or the combined property tax rate of $1.44 per $100 limited assessed valuation. The budget does include proposed utility rate increases of 5.5% in FY2026 and 5.1% in FY2027.

Staff described personnel and compensation elements: total adjustments to employee compensation of about $14.9 million (primarily a 2.9% cost‑of‑living adjustment and a 5% merit pool), a 2.8% increase in health insurance, and 38 new positions (32 in the general fund, six in other funds) with roughly $5.7 million in ongoing personnel costs. Burke said 21 of the new positions were for police and fire‑medical staffing over the last two years, reflecting the council’s public‑safety priorities.

The tentative budget also includes a 7% contingency set‑aside for unforeseen needs; staff noted that the tentative budget establishes a maximum spending authority and that adoption of the final budget and property tax rate will follow public hearings in June.

Council member Castro Bullock, who said she spent substantial time with staff reviewing department budgets, thanked staff for detailed briefings. The council then approved resolutions to adopt the 10‑year CIP and to set the FY2026 tentative budget spending authority; both votes were 7‑0.

Staff said next steps include public hearings on utility rates and the final budget on June 3 and final tax rate adoption at a later meeting.