ACTION REQUESTED:
Title
Communication from the City Manager and Finance Director/Comptroller with a Request for a POLICY SESSION to Discuss the 2019 CITY OF PEORIA BUDGET.
Body
BACKGROUND: In December 2017, the Peoria City Council adopted a biennial budget for 2018 and 2019. The adopted 2019 budget anticipated $206,335,814 in revenues and $198,124,113 in expenses. The 2019 General Fund budget included $93,546,708 in revenue and $93,479,261 in expenses.
Pension estimates from the Illinois Department of Insurance are anticipated to be $1,400,000 higher. The County Supervisor of Assessments has estimated a contraction in assessed values of 2.5%, reducing current collections at the same rate by $800,000. City staff are estimating a 2.0% decline in sales taxes, which is $900,000 less than this year. The Illinois Department of Revenue has lowered Personal Property Replacement Tax estimates 8.0%, a $500,000 decrease. Based upon other current revenue collections, City staff estimates another $400,000 decline in revenues. This totals $4,000,000 in higher expenses or lower revenues for 2019. In addition, the City will be required to pay the PAAG lawsuit in 2019. This could be anywhere from $1,700,000 to $2,200,000 by the time the Circuit Court Judge determines the interest rate.
Estimated Impact
Public Safety Pension Increases
($1,400,000)
Assessed Valuation (down 2.5%)
($800,000)
Sales Taxes (down 2.0%)
($900,000)
Personal Property Replacement Taxes (down 8.0%)
($500,000)
Other Revenues
($400,000)
TOTAL DEFICIT
($4,000,000)
PAAG Lawsuit
($2,000,000)
City staff will take the time in the policy session to discuss:
1. An approach to increasing liquidity in the General Fund that doesn't have an impact on operations;
2. The City fund balance policies and approaches to increase fund balance over the next 5 -10 years;
3. Meeting pension obligations;
4. Balancing the operating budget;
5. Planning for future capital needs; and
6. Efforts to grow the Peoria t...
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