PEORIA, Ill. — After months of discussion to revise the 2020 annual budget for Peoria, City Manager Patrick Urich presented a balanced 2021 budget Tuesday night to the City Council.
Expenses in 2021 for the city are expected to make a 9.7% increase, largely because of debt service increases.
After restructuring debt in 2020, year-over-year debt service is expected to increase 98.9% in 2021.
However, personnel expenses will decrease year-over-year due to positions that were cut in 2020. Due to the pandemic, Peoria reduced the total number of positions by 50.
“In 2010, we had 760 employees, and we’re down to. . . 615,” said Urich. “That’s a significant reduction of headcount in just 11 years.”
Revenues for the city are expected to bounce back in 2021, with an increase of 8.7% expected.
Hotel, Restaurant and Amusement Taxes will begin to return to normal levels, according to the annual budget book.
In addition, cannabis revenues will be collected for the entire year.
Through 2020-2021, Urich says nearly $40 million in revenue will have been lost due to the COVID-19 pandemic.
“Currently, estimates stand at $20 million in lost revenue in 2020,” said Urich. “The overall two-year estimate, that we’re currently standing at, is about $36 million in lost revenue.”
