PEORIA, Ill. — As the COVID-19 pandemic spikes across the United States at record levels, the Peoria City Council passed a revised budget for the 2021 fiscal year at Tuesday night’s meeting.
The spike in COVID cases across the country was on many council members minds during the decision, as they wondered when they could expect some form of relief from the federal government.
As of right now, according to City Manager Patrick Urich, the city will borrow $10 million to shore up lost revenues in 2021.
If federal relief does come, council member Denise Moore asked Urich where the money received would go.
“The first step would be to minimize any borrowing that we have,” said Urich. “Because of the long-tail that will have in terms of the cost on an annualized basis if we have to borrow $10 million.
“It really turns into a $20 million expense.”
The revised budget was approved after multiple special meetings on the topic, and council member
Chuck Grayeb said he was glad the council didn’t accept the budget as it was first proposed.
“We must realize we have cut nearly 300 full-time employees in the past seven years,” said Grayeb. “At some point, you are producing a city that cannot meet the needs of its people.”
Grayeb has historically voiced his support for ensuring public safety above many other matters, including when he was one of the voices in support of finding a way to save a fire engine earlier this year.
One of the optimistic sources for the city in 2021 will be cannabis sales, when the city will be able to have a whole year of tax revenue compared to 2020.
Urich estimates that the city will have lost nearly $40 million in revenue through 2020-2021 due to the COVID-19 pandemic.
