City of Peoria Finance Director Kyle Cratty told City Council at its April 8 meeting that December 2024 financials and audit process was going well. He noted $800,000 loss year end from general fund — which was better than expected and covered by reserves. There was also discussion on liability for Public Safety pensions due in 2040, which is funded with 90% of personal property taxes. Pension obligation was reported to be $33.5 million in 2024 and is $36 million in 2025.

In response to questions from Councilor Denis Cyr, Cratty explained the finance department is analyzing markets to determine when to issue municipal bonds. Cratty anticipated the city would need $300 million over 20 years to meet pension liability by 2040.

Cratty discussed three options to replace lost funding with state of Illinois ending 1% grocery tax. The resulting $5 million hole in the 2026 budget could impact funding public safety pensions. After lengthy discussion, Council voted unanimously to pass 1% grocery tax. A call for reconsideration could be held later.