New numbers indicate Peoria is facing a budget deficit of $7.9 million dollar in this year’s general fund.
City Manager Patrick Urich sent an email to his employees Tuesday informing them of the shortfall.
Urich says the numbers are a result of a decline in sales, utility and property taxes.
“There is a glut of homes on the market in that $300,000 range in the region,” Urich said. “That is leading us to a concern about where property values are going to be in the next year.”
Urich believes the excess of available properties is a result from Caterpillar layoffs.
“Online shopping is really taking a big decline in sales tax numbers,” Urich said.
Urich says tax revenue from the Par-A-Dice Hotel and Casino has also led to the budget deficit.
“With the advent of video gaming…people don’t have to leave their town. Someone from Delavan doesn’t have to leave Delavan to go down and gamble,” Urich said.
Urich says the City may have to make cuts to stabilize the budget. He is asking department heads to come up with two plans for their department, one involving a five percent cut and the other ten percent.
“Our overall operating budget is about $121 million, 78 percent of that budget is people,” Urich said.
Urich says the state is still withholding tax dollars from the city. Money it may not see for a couple of years.