After a couple of months of difficult cost-cutting decisions, the Peoria Heights Village Board unanimously adopted a balanced budget of nearly $5.8 million on April 16.
The Fiscal Year 2025 budget reflects an increase in operational spending of more than 18 percent over the budget adopted one year ago and of about 9 percent over estimated actual spending, with but a few days to go in Fiscal Year 2024.
Much of the jump was driven by the Village Board’s decision last December to transition from a volunteer to a paid fire department. After an initial budget proposal that projected a $1 million, year-to-year increase in fire protection spending alone, the Board scaled back on that and some other services to get expenditures more in line with anticipated revenues.
The Board also raised the cost on residents for garbage collection, which will go from $10 to $20 per month beginning May 1, with Trustee Matt Wigginton in opposition. Previously, the Village had subsidized half the actual cost of garbage pick-up.
However, with a so-called “structural deficit” – meaning that future projected revenues are not sufficient to keep up with current spending practices -- the Village must continue to monitor its checkbook closely if it wishes to refrain from imposing higher taxes or cutting services down the road.
“Our margins are very slim,” warned Village Administrator Dustin Sutton. “When I say ‘slim,’ I mean slim.”
That reality was a factor in the Board’s decision to reject, for the time being, a request from the Peoria Heights Chamber of Commerce for $20,000 to support upcoming festivals such as Taste of the Heights and Kris Kringle Market.
While there was some debate on that, and while there is a recognition that those events bring value to the Heights in terms of visibility and tax revenues, now is just not the time, trustees generally agreed.
While those circumstances could change as the year progresses, the Village may be able to squeeze out a few more dollars through a state grant and in-kind services such as police protection will again be provided, “I’m not interested in amending this budget,” said Trustee Brandon Wisenburg. “Next year could be a better year,” added Trustee Jennifer Reichert.
Mayor Michael Phelan cautioned that while it’s critical to keep an eye on the bottom line, it’s also important to continue “reinvesting in what our brand is,” which is part of the what the Chamber does. “Our brand is valuable.
The Chamber’s membership has grown to about 300 members and is hoping to become more self-sustaining by expanding its profit-making activities at local festivals and elevating its sponsorship opportunities, said Board Vice President Steven Cook.
The 2025 fiscal year begins on May 1.
In other action or discussion:
Bradley will pay $6,000 annually in rent over a five-year term, with four option periods of five years each. Meanwhile, the Village Board approved the expenditure of up to $10,000 to bring the facility up to code for the kitchen operation – specifically the installation of a commercial-grade ventilation system -- which prompted some debate about the source of those dollars.
Community Development Director Wayne Aldrich said the funds would come out of the Business Development District program and not the Village’s operating budget, while noting that Bradley’s investment is considerable.
Turner Center Director Jim Foley called the initiative “a perfect fit” for Peoria Heights and its brand and said “the experience with the Village has been top-notch, and I mean that sincerely.
“This will add an important new resource to the entrepreneurship community. Food entrepreneurs need access to a licensed, shared commercial kitchen to help with their startup and growth journey,” he said. “I am excited we are working with Connie Randall, who recently retired from her catering company, A Matter of Taste. By combining her passion and expertise with the support services of the Turner Center, entrepreneurs working in our new shared kitchen have access to more than just a facility. They have access to expertise and resources to help them succeed.”
Public Works Superintendent Chris Chandler said that American Pipeline Solutions would be “taking care of everything south of Lake (Avenue) in this round,” along with all water mains coming from Village wells to its treatment plant. The process will take place over two weeks mid-summer, much of it in the middle of the night so as to create as little disruption as possible.
The process involves injecting an icy salt slurry into the underground pipes, which then forces out the sludge that has accumulated. About 25 percent of the Village got the ice pigging treatment last fall, and “we feel like it really did make quite an impact,” said Chandler. Specifically, ice pigging can ameliorate the brown water that sometimes pours from local taps, which can be caused by build-ups of manganese in the pipes.
Traffic will be redirected one block east during that time period.
The event has become increasingly popular, drawing approximately 6,000 people last year. Now in its fourth year, “it’s kind of turned into a well-oiled machine,” said Trustee Matt Wigginton.
The Board approved a one-year contract with Cardinal Infrastructure Services for $15,000 for federal lobbying services. Cardinal has been instrumental in helping the Village acquire government grants over the last couple of years amounting to millions of dollars for projects including the pending reconstruction of Illinois Route 29 and Prospect Road.
