ACTION REQUESTED:
Title
Communication from the City Manager and Finance Director/Comptroller with a Request to RECEIVE and FILE a PRESENTATION and Discussion of the 2021 REVISED ANNUAL BUDGET.
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BACKGROUND: Staff will present an overview of the City Manager’s Recommended 2021 Revised Annual Budget. Council received the Budget Calendar last week with the goal of adopting the 2021 Revised Annual Budget by November 17, 2021.
Expenses for fiscal year 2021 are recommended at $204,563,745, an increase of 9.7% from the 2020 Revised Budget. Year-over-year debt service increases 98.9% or $9,837,837, as the City returns to prior debt service schedules after restructuring debt in 2020. Operating expenses increase by 0.3% or $539,124, as the reductions made to address the pandemic revenue shortfalls are extended into 2021. Personnel expenses decrease -0.6% or $369,247, due to the significant workforce restructuring in 2020. Due to the pandemic, the City reduced the total headcount by fifty (50) positions in 2020, a reduction of 7.5%. Employee Benefits increase by 1.3% or $856,621, as public safety pension cost growth is offset by a reduction in health care costs. Contractual services increase by 0.0% or $10,957, as staff has tightened spending due to the pandemic. Supplies and materials increase 0.1%, or $5,523. Support to other agencies decreases -4.8%, or $3,114,687, as the pandemic-related Federal support through the Community Development Block Grant and the Economic Development Administration Revolving Loan Grant are exhausted. Library operations increase 0.6%, or $28,740.
Total revenues increase 8.7% or $16,631,150 to $208,241,320 as local sources rebound from the pandemic. Hotel, Restaurant and Amusement Taxes begin to return to normal levels and cannabis revenues will see a full year of collections. Effective July 1, 2021, internet sales shall be subject to the State and Local Sales Tax, instead of the Local Use Tax, increasing both revenues. Stormwater Utility rates are scheduled to increase in 2021. State sources of revenue are anticipated to decline in 2021 with fewer grant funds, and less Income Tax, Personal Property Replacement Tax and State Motor Fuel Tax distributions. Total fund balances increase $3,677,574, and the General Fund increases $1,735,830 to meet the Council’s fund balance policy.
FINANCIAL IMPACT: The City is required to have a balanced budget.
NEIGHBORHOOD CONCERNS: The budget has direct impact upon services delivered in City neighborhoods.
IMPACT IF APPROVED: N/A
IMPACT IF DENIED: N/A
ALTERNATIVES: Alternatives to the proposed recommendations will be discussed.
EEO CERTIFICATION NUMBER: N/A
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL’S 2017 - 2032 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Financially Sound City
2. Safe Peoria
3. Beautiful Peoria
4. Grow Peoria
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Have an efficient government.
2. Keep taxes and fees competitive.
3. Reinvest in neighborhoods.
4. Reduce crime.
5. Grow employers and jobs.
6. Support sustainability.
7. Improve Peoria Public Schools.
8. Invest in our infrastructure and transportation.
DEPARTMENT: City Manager's Office