Peoria continues to spend money – and there are some good reasons for that.

In adjusting to the economic downturn, the top priority for city officials has been maintaining core services for the public.

"We will spend money where needed to continue those core services," says City Manager Carl Swenson. "The expansion of the Municipal Court is an example. That project has been planned and needed for several years, and is moving as scheduled because of the growing demand in that area."

On the other hand, Swenson notes, the planned renovation of City Hall is on hold while officials determine what the city can and cannot afford. "All told, it looks like about $80 million in capital projects must be delayed," he says, noting that the details will be worked out with the City Council in the coming months.

In many cases, money being spent came with strings attached. It can be used only for certain purposes, or must be returned if not spent.

Take the new mural on the 83rd Avenue side of Bikers Edge in Oldtown. The city’s "Percent for the Arts" fund, created from money set aside from capital projects, paid for the $31,500 project. Money from that fund can be used only for designated art projects.

Another example is the $1.6 million Osuna Park renovation. It was financed with general-obligation bonds, which can be used only to pay for capital projects and required authorization from Peoria voters.

Another important distinction in budgeting is whether revenues and spending are on the table for just the fiscal year in question, or whether they must be factored in for years beyond.

One-time revenue is money that might not be available in subsequent years – money that comes from things like construction sales tax, development user fees or unexpected savings from the previous budget year. One-time funds are used for single purchases, such as building projects or pieces of equipment.

Any time the city plans to build a facility, which may be paid for from one-time revenue, it also must plan for all of the other ongoing expenses that come with it.

Once the expansion of the Municipal Court is complete, for example, the city must hire additional staff and account for annual operation and maintenance costs.

"We don’t use one-time funds for things like employee salaries and benefits because we can’t rely on it to be there consistently," Swenson says. "This policy is probably most responsible for Peoria’s relatively good financial position compared with other Valley cities, which were funding staff with unpredictable revenue sources that have completely evaporated."