The City of Peoria is looking at options to pay for city road repairs.
City Council passed a motion to raise $4 million for road maintenance Thursday night.
The question is where will the money come from? Peoria is exploring a property tax raise based on debt service (the amount of debt the city pays from property tax revenues).
“We have $18 million of other revenues that we use to pay our debt service. If we abate $16 million, instead of $18 million, then we will have $2 million of revenues freed up to pay for roads,” said Peoria City Manager Patrick Urich.
The proposed increase would add 20 cents for every $100 of assessed value to property tax bills within the City of Peoria.
Council also discussed a proposal to create a $25 vehicle license for all cars in the city. City staff will not pursue that option after council was against the idea.
More discussion on roads is expected at the council’s next meeting Tuesday.