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Peoria Council adopts tentative FY2027 budget and 10‑year CIP, including large water acquisition
Summary
Council adopted a $1.185 billion tentative FY2027 budget and a 10‑year capital improvement program that includes $90 million proposed for a Vidler water purchase; both resolutions passed 7–0 and set spending ceilings for upcoming hearings on the final budget and property‑tax levy.
The Peoria City Council on May 5 adopted a $1.185 billion tentative FY2027 budget and approved a 10‑year capital improvement program after staff presented the fiscal plan and CIP details.
City Manager Mike Foust introduced CFO Sean Kindle and Budget Manager Don Jenkins to present the budget and CIP. Kindle told council the tentative FY27 budget totals $1.185 billion, of which roughly $579 million is capital and about $490 million is operating, and said there are no property‑tax or sales‑tax rate increases in the proposal. “No tax increases in this budget,” presenters told council.
Staff briefed council on key items: a planned $90 million Vidler water‑resource purchase included in the capital budget; a planned 5.1% utility rate increase that was previously approved by council and is scheduled to begin July 1, 2027; 31 new positions proposed at an ongoing cost of about $4 million; and a modest operating increase offset by changes in pension contributions and other adjustments.
The 10‑year CIP (FY2027–2036) lists 258 projects with a 10‑year total of approximately $2.2 billion. Staff said about a third of projects relate to water and wastewater, about 28% relate to the Peoria Innovation Campus and nearly a quarter are streets projects. Financing plans assume roughly 45% of the program will be supported by debt, ~33% by restricted or designated funds (transportation sales tax, utility revenues, impact fees), ~11% from outside sources (grants, developer contributions) and the remainder from one‑time or other funds.
Staff also noted changes since the budget study session: the SRP–CAP interconnect project ($19M total; ~$1M FY27) was removed from the plan because the Vidler purchase freed up alternative redundancy; one storage project was removed for similar reasons; and one intersection project was advanced in schedule. Staff requested adoption of Resolution 2026‑72 (tentative budget) and Resolution 2026‑73 (10‑year CIP).
Council moved and seconded the motions and both resolutions were adopted unanimously, with the clerk recording a 7–0 vote. The tentative budget adoption sets the maximum spending level for the fiscal year; council will return for public hearings on the final budget and truth‑in‑taxation schedule ahead of a June property‑tax levy decision.
What happens next: staff said public hearings on the final budget and truth‑in‑taxation are scheduled in coming weeks, with the property‑tax levy slated for June 2. The adopted tentative budget and CIP authorize staff to begin design and procurement steps for CIP items funded in FY27, including the transmission and recharge work linked to the water plan.
