PEORIA, IL -- Here is David Berry's report on August 8 Peoria City Council meeting:
ON THE 309: PEORIA CITY COUNCIL IN A NUTSHELL 8/8/17
A detailed presentation & discussion of Peoria’s budget woes was front & center in this session of Peoria City Council. At-Large Councilman Zach Oyler & 3rd District Rep Tim Riggenbach were absent from Tuesday’s proceedings.
Bradley University’s plan for custom campus & city street signs dominated the Consent Agenda. At-Large Rep Beth Jensen questioned city staff on whether or not the West Bluff Home Owners Association & University neighbors were consulted about the signage change. After much guffawing, staff stated that they were unsure if any neighbor outreach was attempted.
“Public input” on governmental issues is a cornerstone of Jensen’s platform, as she consistently pushes for citizen inclusion in city policy. Additionally 2nd District Rep Chuck Grayeb wondered if the red color of the proposed signs is in violation of state or federal signage regulations. Staff replied that the color of the signs may be a problem, as a similar plan on the Illinois State campus, was scuttled due to federal guidelines.
Mr. Grayeb went on the say that BU is the city’s “5th largest employer and a good neighbor”. He felt confident that the school would have no problem interacting with citizen groups & getting consent for this “iconic branding”. Given these outstanding issues, Jensen pressed for a 1 month vote deferral. A new hearing on the signage is now set for September 12th.
Item 17-248, of the Consent Agenda concerned a new Commercial Building Rehabilitation Program for the city’s south side. 1st District Rep Denise Moore urged approval of the program, which she brought forward after “getting calls” from many 1D residents, on the topic. Businesses can front money for commercial improvements and then seek approval for matching grants, up to $20,000. The welcomed $150,000 program will be funded from the South Village Tax Increment Financing fund.
Regular Business was absorbed by a slide show concerning Peoria’s budget obstacles, by Finance Director/Comptroller Jim Scroggins & City Manager Patrick Urich. The report was full of facts & figures, but left many issues unanswered. A lengthy Q & A session, with council members followed. The biggest unknown, in this financial maze, remains the city’s Combined Sewage Overflow bill & how it will be paid. That issue is yet unresolved & will definitely be addressed in the near future. The main take away from the presentation was the city’s loss of revenue and rise in costs, on many fronts. The report contended that an overall loss in sales tax played a part in this year’s $7.9 million budget shortfall.
Declines in other tax streams, seemingly could have been foreseen by the City & offset, when writing this budget. Landline telephone excise tax collection dropped significantly, due to increased mobile phone use. Urich then conceded that increased on-line shopping caused a loss in commercial sales tax.
Additionally, gaming revenue dropped, due to the growing popularity of video gambling. Video machine wagering cut into lottery sales, accounting for approximately $1 million less revenue. Each of these declines seems to be common sense & could have been easily predicted. Council members have often criticized city finance heads for being shortsighted and reactive. This situation could well be another example.
Peoria’s cost centers rose as well. Employee pension costs were cited as a cumbersome debt. Pensions now account for approximately 40% of the Fire Department and PPD’s payroll. These costs were predicted to rise in the future. Interestingly, 70% of Peoria’s budget is spent on public safety & infrastructure.
Not addressed was the fiscal drain of Peoria’s 12 TIF districts. These funds siphon large amounts of tax revenue from city coffers & directly contribute to Peoria’s debt. Many millions of dollars currently sit unused in these accounts. Perhaps the time has come to put these taxes to work and attempt to raise home & business values, handle needed infrastructure in blighted areas, & improve Peoria’s workforce skill set.
By law, TIFs are designed to help achieve these goals. More programs like Moore’s Commercial Building Rehabilitation Program are obviously needed. During his presentation, the City Manager proposed a 5-10% cut in city services to bridge this year’s gap. It seems nonsensical to cut services and have yearly budget shortfalls, when large amounts of tax payer money sit unused, in cloistered accounts.
Once again, Jensen pressed the City Manager to hold public budget meetings, to inform & gather insight from residents. Urich stated that 4 or 5 such meetings will be held in August & September.
Tuesday night’s budget report was much more comprehensive than this report has outlined. Here is a link to the entire presentation.
Resident Doug Johnson used the “Citizen’s Opportunity to Address” to argue for a return the previous meeting format, in which, council members could converse with citizens, at the end of sessions. He also touted the virtues of raising the minimum wage in town. This issue’s value has never been debated in the Council. Here is a link to the full agenda & minutes is available at:
-- David Berry
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