PEORIA, Ill. – Peoria City Council members began the process Tuesday night to craft the budget for the next couple years.
The FY 26-27 spending plan proposes more than $301 million in expenses and around $298 for revenues. Projections show about $136 million in reserves.
Finance Director Kyle Cratty says the budget was crafted with the city’s strategic plan in mind that focuses on areas such as quality of life, prosperity, and infrastructure. The results of those goals outlined include completing 90% of capital and routine maintenance projects by the end of 2026, investing in the Central Business District to increase foot traffic by 10%, and modernizing technology.
Council documents also project for 2026 that public safety pensions are funded, and the city is prepared for the next phase of the combined sewer projects, which
Operational costs are projected to be around $216 million, a 7.7% increase, which Cratty says is due to increasing benefits, health insurance, and pension costs. Capital projects are estimated at just under $49 million, a more than 36% decrease from the previous year. City officials say that’s due to less grants available.
Even though the city projects revenues to be down 1.4%, Cratty says there’s been a boost from stronger local taxes, despite lagging state and federal sources. He says that’s due to an unknown number in grant funding.
Cratty says there are some long-term concerns with the budget. He says current patterns have the gap between expenses and revenues increasing over time, unless there’s a correction with business cycles.
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