Peoria County committees approve fiscal 2026 budget, levy and appropriation ordinance after debate over reserves and fees

Peoria County's joint finance and executive committees approved the fiscal 2026 budget, a 2025 tax levy payable in 2026 and related appropriation actions during a Nov. 6 meeting that included extended debate over reserves, vacancy funding and fee increases.

Heather (county finance staff) presented the recommended fiscal 2026 budget: general fund revenues of $64.2 million, a total county budget of $172.5 million, and a proposed tax levy of $36,164,881 at a rate of 82.41 cents per $100 of equalized assessed value (EAV). The administrator's recommendation included a planned use of about $18.3 million in reserves across funds, staff changes that net to a small FTE decrease, and approximately $30 million in capital and project investments including $3.5 million for initial jail master-plan engineering and design.

The committee approved a joint resolution to appropriate $725,000 from the risk-management reserve into the claims-liability line to cover a large litigated settlement and other pending liabilities. Heather told the committee the appropriation is a joint request with the county operations committee and is intended to cover settled and projected liabilities.

To manage unfilled positions, the recommended ordinance created a new general-county vacancy line item totaling $2,008,850 for prorated salary and benefit costs. The ordinance specified that transfers from that vacancy account to departmental budgets during the year require confirmation from finance and HR and would be administered by the county administrator, with the board retaining final appropriation control at year-end. A proposed amendment that would have allowed committees to appropriate remaining vacancy funds in the following fiscal year did not receive committee approval.

The committee also considered the results of a Bellwether fee study covering five departments — the sheriff's office, coroner, county clerk, Peoria City/County Health Department and Peoria County Animal Protection Services (PCAPS). Bellwether recommended fee increases to recover direct and some indirect costs; staff estimated the net revenue increase at about $490,000 across departments. Committee members debated timing and phase-in options for the county clerk and health department; the committee ultimately voted to adopt the fee schedule increases (county clerk fees were phased in over three years by committee motion) after discussion and public comment from Clerk Parker and PCAPS director Becky Spencer.

An amendment to lower the county's recommended levy (reducing the proposed increase by about $1.14 million) was proposed and debated; the amendment received three yes votes and failed to pass in committee. The full levy ordinance was then approved by the committee as presented. The annual appropriation and budget ordinance passed the committee as presented and will be submitted to the full county board for final action.

Votes at a glance (committee actions on Nov. 6): - Risk-management appropriation (5.2): motion to appropriate $725,000 from risk reserves into claims liability; outcome: approved (motion carries; committee reported "eyes have it"). - Fiscal 2026 recommended budgets (items 6.1'6.14): motion to accept the recommended budgets and related committee amendments; outcome: approved. - Fee schedule resolution (fees for sheriff, coroner, county clerk, health department and PCAPS): motion to adopt fee-study recommendations, with county-clerk fees phased in over three years; outcome: approved after amendment (committee recorded an amendment vote and then carried the resolution as amended). - 2025 tax levy ordinance (payable 2026): proposed amendment to reduce the levy failed (three yes votes). The levy ordinance as presented was approved and will advance to the full board. - Annual appropriation and budget ordinance (fiscal 2026): motion to approve the ordinance; outcome: approved; a separate committee amendment to redirect leftover vacancy dollars to departmental committees did not pass and was recommended for floor amendment consideration.

Committee discussion focused on the long-term reserve policy, the size and purpose of specific fund balances (including IMRF and FICA), and the tradeoffs between using reserves to limit tax increases and maintaining reserve targets for future fiscal stability. Multiple members urged continued scrutiny of reserves and a possible standing workgroup to review reserve policies and fund balances. No final votes committed the board to long-term uses of reserves beyond the 2026 plan; the budget and levy approved by the committee will be returned to the full county board for final action.