City of Peru approves $75M budget for 2026

The Peru City council unanimously passed Mayor Ken Kolowski’s fiscal year 2026 budget —a $75 million plan— during Monday’s meeting.

The budget, Kolowski said, is a reflection of the city being proactive to potential decreases in sales tax revenue.

“If there’s any kind of 2008 housing market collapse —the city of Peru will be just fine,” Kolowski said. “And if I’m wrong, and I pray to God that I am, we’re going to be more than fine.”

Sales and home rules tax revenue account for 75% of the city’s $22 million general fund budget. According to the budget, general fund expenses are expected to increase due to “continued investment in above ground infrastructure and vehicles and a continued inflationary impact on normal operating costs.”

The budget includes $4.2 million in grants for major capital investment, with the largest being the continuation of the Plank Road widening project and the OSLAD grant project at Washington Park.

Kolowski said the city was able to bring down the general fund tax budget by about $500,000 by being “proactive instead of reactive.”

“I don’t really see it as cuts — I call them adjustments,” he said. “I’ve been concerned about this particular year for two years…there’s a lot going on in the world right now and I just thought it was time to take it easy.”

Kolowski said the city is going to be in really good shape going into the 2027 fiscal budget.

“We pulled back — just a little,” he said. “The city of Peru is still growing. We’re still doing projects, we’re still doing streets and we’re still doing sewer separation.”

“The city of Peru’s finances are just fine,” Kolowksi said. “We’re just tightening it up a little.”