Peoria’s City Council has approved an estimated property tax levy of about $41 million for the coming year, alongside a small proposed rate decrease. But residents whose property values rise could still see higher bills. The levy is part of the city’s proposed 2027 budget revisions, which now face further review before final approval.
Key takeaways
The proposed rate change is modest, and the effect on an individual bill will depend in part on the assessed value of the property. The council’s vote advances estimates, but the levies and revised budget still require final approval.
- The council unanimously approved an estimated city levy of about $41 million, with the rate down roughly one cent per $100 of equalized assessed value.
- The city’s proposed revised budget calls for $348 million in spending, against $338 million in estimated revenue, with about $10 million drawn from existing fund balances.
- Final votes on the city and Peoria Township levies are targeted for Dec. 8.
How the proposed levy is structured
For truth-in-taxation calculations, the 2027 collectible property tax levy is estimated at nearly $36.4 million, at a rate of $1.33. The city’s share is estimated at $29.4 million, at a rate of $1.07. These figures are distinct from the roughly $41 million estimated levy approved by the council, which reflects aggregate levies.
Finance Director Kyle Cratty told council members that the amount collected by the city is expected to increase by about $1.9 million when the aggregate levies are considered. The calculations for the city portion do not include bonds for the Peoria Public Library and Peoria Civic Center. Including those, the rates for the city and library are expected to decline next year.
Why some homeowners may pay more
A lower tax rate does not necessarily mean a lower property tax bill. Cratty said residents may owe more if their property values have increased, including as a result of comparable sales nearby and broader sales and inflationary growth in Peoria.
The city’s rate is one component of a property tax bill, so the proposed decrease alone cannot determine what any individual resident will pay. The effect will depend on how property values change and on other taxing bodies’ levies.
Budget and next steps
The levy vote came during a more than two-and-a-half-hour budget meeting that included presentations from 10 department heads on planned spending in the 2027 revisions to Peoria’s biennial budget. Council members also approved an estimated $1.4 million property tax levy for Peoria Township.
Both the city and township levies need final approval before filing with Peoria County. The council is expected to take up those final votes on Dec. 8, when it is also expected to adopt the revised budget.
