By Philip Haldiman, Independent Newsmedia

It is budget time for Peoria.

The city kicked off its budget hearings with a council study session last week.

City Manager Carl Swenson said the total proposed budget of $590 million maintains core resident services without any increases to taxes, but includes  2.25 percent  utility  rate and 3.9 percent  residential  solid  waste  increases.

The budget for the general fund, the city’s primary operating fund, is $146.4 million — a 5.06 percent increase over the previous year. The city proposes a $211.3 million capital budget for fiscal year 2018, with a 10-year capital improvement program of $657.7 million, and $212 million budgeted for next year.

Mr. Swenson said the revenue picture is improving, but expenditure growth continues to out pace expected revenues.

“The fiscal year 2018 proposed budget strikes a balance between available revenues and the needs of our fast-growing community,” Mr. Swenson said . “This proposed budget reflects our commitment to provide quality services and amenities to our residents, while preserving our organization’s long-term financial viability.”

The proposed fiscal year 2018 budget, available at peoriaaz.gov/budget, will be reviewed in open budget study sessions by the Peoria City Council 5 p.m. Wednesday, March 29 and Thursday, March 30 in Council Chambers, 8401 W. Monroe St.

The meetings will also stream live at peoriaaz.gov/channel11 and appear live on Peoria Channel 11.
Mr. Swenson said the top key objectives for this budget are to maintain financial integrity, enhance public safety, economic development, community based service delivery and expand amenities and services to growth areas.

He said one of the biggest challenges with this budget were cuts in revenues due to the impacts of state law changes affecting impact fees and income taxes. Additionally, high public safety pension costs, minimum wage increases and explosive growth in the northern part of the city put a strain on the city’s long-term financial forecast.

“In putting this budget together, it was more difficult than you might think. When you look at the stock market or consumer confidence, you get that the economy is doing quite well, and it is, but we had some headwinds we had to play through in putting the budget together,” Mr. Swenson said. “There have been things that have reduced our revenue, things have come from the outside city. We had to make some cuts, but fortunately we were able to make some adds, but that is because we have been very conservative in how we have structured our budget.”

The budget includes utility and  residential  solid  waste  increases. Mr. Swenson said while  utility  rates  typically  require  small  annual adjustments to keep pace with  inflationary costs and  growth  in  demand, Peoria’s residential solid  waste program has not had a rate increase in nine  years.

“In fact, the rate was reduced significantly in fiscal year 2012  based on better than expected  recycling revenues and lower landfill costs,” he said. “A small but necessary rate adjustment is necessary to reflect current waste management contracts and increased demand due to growth throughout the city.”

Public safety and fire-medical make up about 55 percent of the proposed operating budget. It will include new technology and equipment for data-driven and community-based policing, as well as six new positions in the police department — three additional officers, two public service officers and a victims advocate.

Peoria Fire-Medical Department is budgeted for fire station improvements and expansion, as well as new vehicles and equipment.

Mr. Swenson said the city added 16 people  to the police department over the last three years.

“Every police department is hiring, including ours,” he said. “We are going through a hiring cycle right now.”
Funds are budgeted for the construction of Northern Community Park and a new neighborhood park in the Meadows subdivision. Other parks and trails projects planned for the next few years include  improvements  at Country Meadows Park  and  a new trail segment  along the east side of New River from Williams Road to Happy Valley Road.

A workplace safety administrator and three equipment operators for residential solid waste are  proposed, as well as funds for residential roadway improvements and maintenance, utility plant upgrades and expansions, and a general plan update, scheduled for the ballot next year.

 

Budget series
This is the first article in a series of three that will look at Peoria’s proposed 2018 budget. It provides a general overview of the budget and the city’s key objectives. The second week will provide readers with details about the operating budget and the third week will detail utility rates and capital improvement projects.