The East Peoria Chamber of Commerce recently hosted the 2025 State of the City Address at the Par-A-Dice Hotel Casino. As Mayor, I had the privilege of delivering my sixth State of the City Address. The purpose of the program is to share what has been accomplished to date as we prepare to wrap up this fiscal year and what we can look forward to in fiscal year 2025-2026. Our local economy remains strong, and we have a lot of great things on the horizon in East Peoria.

The city continues its strong financial and budgetary performance. The fiscal year 2025-2026 proposed budget includes $71.6 million in revenues, a 2.2% increase compared to the previous year, and $94 million in expenditures. Expenditures include $20 million in bond debt, of which will all be covered by loan proceeds related to the Blutowne development project received from Flaherty & Collins, to fund the construction of the new police station and the remainder in carry over RBI and general funds that have previously been allocated for delayed capital improvement projects. The city has maintained a balanced budget for decades and takes immense pride in being fiscally responsible with the taxpayer’s money.

The fiscal year 2025-2026 proposed budget includes $32.8 million in capital expenditures. Aside from the cost of construction of the new police station, other capital expenditures include $3 million in residential street improvements, $1 million in water and sewer main replacement, $2.5 million in improvements to EastSide Centre, $1.5 million in improvements to the Riverside/Camp intersection, $600,000 in improvements to Pinecrest Drive, $695,000 for the purchase of a new fire engine, $500,000 for the purchase of a new Vactor truck, $210,000 for the purchase of new squad cars, $247,000 for the purchase of a new plow truck, $125,000 for the purchase of new gateway signage, $100,000 for the new belltower structure to be located in Levee Park, and the remaining balance towards the purchase of other equipment and to make additional facility improvements.

Since 2016, the city has made great strides towards meeting the state mandate to fully fund its pension obligations by 2040. The firefighter pension fund was 47.1% funded in 2016 and is 65.6% funded as of May 1, 2024. The police pension fund was 53.6% funded in 2016 and is 66.2% funded as of May 1, 2024. The vast majority of the property tax revenues collected by the city are used to cover its pension obligations. Despite proposed legislation being introduced in Springfield that would extend the deadline from 2040 to 2050, we feel that it is in the best financial interest of the city to stay on track to meet these obligations by 2040. It is important to note that despite the numerous unfunded mandates brought on to our local government by the state, the city has been able to maintain its property tax levy at a rate equivalent for nearly 30 years. 

We were pleased to announce that there will be new businesses joining East Peoria’s thriving and diverse business community in 2025. We also announced plans to move forward with the development of Center Street Crossing, a mixed use/entertainment concept that is much desired in our revitalized downtown area. We provided updates on the final approval on the Riverfront TIF District, the Blutowne development project, and the Hampton Inn riverfront development project. The new Riverfront TIF District will set the stage for future development along the riverfront corridor north of I-74 to just south of Highview Road. The city has been very successful with its use of economic tools, such as TIF Districts, to encourage the economic development or redevelopment of blighted, declining, or underperforming areas. A lot of the work that is being done today began with the visionary leadership that East Peoria has been blessed with for many decades.

We have a lot to look forward to in 2025, and I simply cannot cover it all in this one article. We thank you all for the continued support and will continue to place the needs of our community first and foremost. 

Always grateful,
John