ACTION REQUESTED:
Title
Communication from the City Manager and the Finance Director/Comptroller with a Request for Continued Discussion Regarding the 2016-2017 CITY OF PEORIA BIENNIAL BUDGET.
Body
BACKGROUND: Council deferred action on the budget on November 19, 2015. The City Manager and Finance Director will provide an overview of the options available to Council pertaining to final approval of the 2016-2017 Biennial Budget. Staff will also outline why the budget will need to be approved by December 8, 2015.
The total 2016 - 2017 Biennial Budget for the Fiscal Year 2016 is $185,356,415 which consist of the following:
|
|
City |
Library |
Total |
|
Operations |
$ 138,141,997.00 |
$ 6,450,521.00 |
$ 144,592,518.00 |
|
Capital |
20,038,000.00 |
- |
20,038,000.00 |
|
Debt Service |
20,725,897.00 |
- |
20,725,897.00 |
|
Total |
$ 178,905,894.00 |
$ 6,450,521.00 |
$ 185,356,415.00 |
The total 2016 - 2017 Biennial; Budget for the Fiscal Year 2017 is $199,587,293 which consist of the following:
|
|
City |
Library |
Total |
|
Operations |
$ 143,170,659.00 |
$ 6,556,103.00 |
$ 149,726,762.00 |
|
Capital |
28,879,113.00 |
- |
28,879,113.00 |
|
Debt Service |
20,981,418.00 |
- |
20,981,418.00 |
|
Total |
$ 193,031,190.00 |
$ 6,556,103.00 |
$ 199,587,293.00 |
Council will have the following revenue increases on the agenda December 8 for the Operating Budget:
• Sales Tax increase 0.25% ($1.9 million in 2016, $3.8 million in 2017);
• Liquor Licenses ($89,000);
• Miscellaneous Business Regulations ($40,000);
• Building permits ($0.3 million); and
• Rental Registration ($0.8 million).
Should the Council not approve the proposed operating revenues, expenditures will have to be reduced. Since 66% of the personnel expenses are in public safety, cuts would be unavoidable in Police and Fire.
Council will have the following revenue increases on the agenda December 8 for road funding:
• Local Motor Fuel Tax Increase $0.03 per gallon ($1.2 million);
• Property Tax - Road and Bridge Levy ($1.2 million); and
• Property Tax - Debt Service Extension Levy ($2.0 million).
Without revenue for roads, the City will have the same insufficient road program. Deferred maintenance will continue to rise and the condition of arterial and residential streets will continue to decline.
FINANCIAL IMPACT: Depending on the deicisions of the Council, there will be less funding for roads and or operating expenses.
NEIGHBORHOOD CONCERNS: Public Hearing for the Budget was held November 10, 2015. Numerous other public meetings were held.
IMPACT IF APPROVED: The budget and final tax levy adoption must occur by December 8, 2015.
IMPACT IF DENIED: A delay in the tax levy and budget adoption would result. If significantly delayed, the City would not meet legal mandates.
ALTERNATIVES: Establish a different amount of estimated taxes and tax rate.
EEO CERTIFICATION NUMBER: N/A
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL’S 2014 - 2029 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Financially Sound City Government, Effective City Organization
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Have an efficient government.
2. Keep taxes and fees competitive.
DEPARTMENT: Finance