Peoria council reviews largely flat FY2027 budget with capital-heavy plan and targeted staffing requests
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Summary
City staff presented a proposed FY2027 budget that keeps tax rates unchanged and holds overall spending roughly flat while shifting major dollars to capital projects; operating costs rise ~3%, utilities include a pre-approved 5.1% rate increase, and staff highlighted a $90M water acquisition flagged in the CIP.
City of Peoria staff presented a tentative FY2027 budget at a council study session, telling the council the plan holds tax rates steady while managing modest operating increases and sizable capital spending.
City Manager Mike opened the session, emphasizing staff work to keep total spending flat year over year while calling attention to large capital items. CFO Sean said the proposed budget totals about $1.185 billion, with capital representing roughly half of that ($579 million) and operating about $493 million, a roughly 3% increase. The plan includes no property‑tax or sales‑tax rate increases; a previously approved 5.1% utility rate increase is built into the forecast and slated to take effect July 1, 2026.
Staff described a one‑time $40 million sweep of unspent carryover dollars back into the general fund to fund future priorities, and said that a potential water resources acquisition (approximately $90 million in the CIP) is the largest single capital flag. Without that water project, staff said the capital program would be materially smaller.
Officials also reviewed personnel and compensation impacts: the FY2027 operating ask includes roughly 31 net headcount additions across departments and a compensation package that produces an estimated $6 million net operating impact in the near term (about $10 million gross offset by other adjustments). Departments highlighted targeted additions for police, fire and municipal court and one‑time investments such as booking area renovations and wellness programs.
On revenues, staff warned of state‑level and other risks: changes in state shared urban revenue, the loss of rental tax revenue, and a pending state house resolution that would effectively cap certain fee increases through 2030. Staff said those items are reflected with conservative assumptions in the revenue forecast.
Several departments presented their operating and capital requests during the session; staff emphasized the tentative schedule for the budget process: tentative budget adoption on May 5, public hearings mid‑May and final property tax action in early June.
The study session produced no votes; council members asked questions and requested follow‑up detail on items including aviation costs, the composition of capital carryover, and where potential fee changes would appear in the public materials. The council recessed and planned follow‑up study sessions for water portfolio items and for the Peoria Innovation Corps business plan.
Ending: Staff will return a cleaned‑up tentative budget and the council expects to consider adoption on May 5 before public hearings on May 19 and final property‑tax action on June 2.
