PEORIA, Ill. (25 News) – The Peoria City Council on Tuesday night unanimously approved a nearly $301 million budget for next year, with a focus on improving infrastructure and paying more for employee’s pension and healthcare.
“So, this is the actual spending authority that we will then have for FY26, with the estimates built into it for FY27. We’ll come back next year with the revised budget for adoption, of 2027,” City Manager Patrick Urich said.
Council members also approved Peoria’s annual property tax levy, which will collect $34.4 million in property taxes next year and keeps the tax rate unchanged compared to the previous year at $1.34 for every $100 of equalized assessed value.
“This ordinance in front of you tonight is in line with the council’s previous direction on maintaining the tax at or below the previous year’s rate,” City Finance Director Kyle Cratty said.
According to 25 News, Peoria expects to collect more in property taxes than last year because values have generally increased.
Fiscal year 2026 will bring a decrease in capital spending, which can be special or one-time expenses, by 39.1 percent. The decrease was brought on by shifting some sewer and stormwater projects to operating expenses, and the city using all of its American Rescue Plan funding.
Operating expenses, that keep the city running day-to-day, will increase 7.9 percent. Peoria also expects higher pension spending and healthcare costs in FY 2026.
Council accepted a $2 million state grant to help build the Salvation Army’s new men’s shelter downtown. The shelter is expected to open next December.
In other business, council members approved a special use permit for Dunlap Community District 323 to build a new elementary school near Peoria’s city limits.
The North Pacific Street site is in back of Wilder-Waite Elementary School. Council is requiring that if the old school building is ever torn down, new roads and sidewalks will have to be put in.
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