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Federal COVID relief to reduce Peoria government borrowing, prevent employee furloughs

PEORIA CITY HALL

PEORIA (WEEK) - The Peoria City Council decided Tuesday night how the city government will use millions of dollars in federal COVID-19 relief.

The council voted unanimously to reduce future debt obligations by putting $10 million from the American Rescue Plan into the general fund. That means the city will not have to borrow the money by issuing working cash bonds.

Also, federal aid will be used to spare eligible employees from having to take unpaid furlough days. City workers were supposed to take one furlough day a month from June through December. They'll also be paid for furlough days they took from March 3 to May 31.

City staffers estimated the government will lose about $18.1 million in revenue due to the pandemic's economic impact. Last month, the city received $23.5 million in the first distribution of federal fiscal recovery funds.

Howard Packowitz

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