ACTION REQUESTED:
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Communication from the City Manager and Finance Director/Comptroller with a Request to RECEIVE and FILE a PRESENTATION and Discussion of the 2020-2021 BIENNIAL BUDGET.
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BACKGROUND: Staff will present an overview of the City Manager’s Recommended 2020-2021 Biennial Budget. Following the strategic planning sessions with Council, the City staff worked to prepare a spending plan that achieved the overall City Council goals, while aligning spending with the Council’s priorities.
Expenses for fiscal year 2020 are recommended at $218,084,228, an increase of 6.8% from the 2019 Revised Budget. Overall operating expenses increase 3.6% or $5,476,782. Personnel expenses increase $2,112,061 due contractual salary increases. A net increase of three (3) positions are included in this budget recommendation. Employee Benefits increase by 4.5% or $2,279,734, as public safety pension cost growth is offset by a reduction in health care costs. Contractual services increase by 6.7% or $1,578,104, due to increases for garbage costs and additional stormwater management expenses. Supplies and materials increase 1.9%, or $71,806. Support to other agencies decreases -4.8%, or $395,132. Library operations decrease -2.6%, or $169,791. Debt service costs decrease -5.4% or $1,150,557 as debt service begins to decline. Capital expenses increase 31.3% or $9,466,414 as the first year of combined sewer expenses are anticipated to begin. Additional state motor fuel taxes will afford additional road funding and Fire Station 16 is proposed for replacement in 2020. Revenues for 2020 are anticipated to increase 4.2%, or $8,764,495. Higher local revenues due to increased fees are offset by continued contraction in property taxes. Local sources increase 3.1% or $4,457,382. State revenues increase 11.3%, or $5,143,044, as sales and income taxes increase, coupled with additional state road grants. Total fund balances decrease -$345,707, as capital spending in Tax-Increment-Financing districts increases. However, the General Fund balance increases $1,401,073 to continue to replenish reserves.
Expenses for 2021 increase 0.5% from 2020, or $1,149,358. Personnel services increase 3.1%, or $1,912,610, and benefits increase 6.0%, or $3,142,556. Capital expenses decrease -6.8%, or $2,690,744, and debt service decreases -4.5% or $902,659. Revenues for 2021 increase 2.6%, or $5,644,419 as local fees continue to grow. Total fund balances increase $4,149,354.
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