02/27/2025
In honor of my “Open , Honest, Fearless Communication” slogan. I’m needing to weigh in on the latest discussion about “Running the City like a Business”.
First, there is no one operational model that fits all the inner workings of City Government. At it’s core, the City of Pekin is a service provider; however, there are situations that come up within a fiscal year where I truly believe the City could base their decisions using a business model. Is it 100% of the time, no it’s not. Is it 50% of the time, probably not. I feel it’s probably a 20/80 split.
20% of the time; make decisions using a business model. Land acquisition is not one of the City’s strengths. We purchased $600K dollars of land on Sheridan only to pay an additional $200K to back out of the agreement with the seller. To date, nothing is being built on that property we purchased. We are now in the hole 800K dollars with no line of sight for a return on that investment. Then on the other side of the equation, we sold prime real estate for 1 dollar. Neither one of these scenarios is an example of common sense business practices. No return on investment and essentially zero revenue on a property sale. These are the types of scenarios that come up where the City needs to make decisions acting through a business model.
The other 80% of the time; I feel the City needs to run under the Personal Finance model. Basically, treat it like your own family budget. Money in and Money out. Are we operating in the green? If so, how much green? Are we operating in the red? If so, why? How can we fix it? Where do we need to tighten up?
For example, I might have the means to buy a 100K Corvette, but is that a good financial investment for my family? Simply put, no it’s not. I need to prioritize my family’s needs vs. my family’s wants.
Transition this strategy into City Government, what are the needs of the Citizens vs. what are the needs of the City? Let’s keep in mind we operate under the Management Form of Government, so it’s the City Manager’s entity to run. Is the City Manager running it like a business or are they running it like a personal finance model?
We need to prioritize the needs of the citizens while balancing out the needs of the City. Are those needs or are they wants? In the beginning I said the City of Pekin is a service provider? So why did the City buy a trench burner? What service is that providing our citizens? Again, wants vs. needs? For example, shortly after I got married I bought a $1500 pool cue? Certainly wasn’t a need for my wife and I at the time, but I wanted it and bought it. City Government is no different in my opinion. We have to balance wants vs. needs.
As for the garbage service and bus service, I simply need to see the balance sheet for both operations. I need to be convinced it truly is cheaper? How is it cheaper when you tack on payroll, insurance, diesel fuel, maintenance, and the potential unplanned workman comp claims? Being a service it should be at least operating at a break even point. If it’s not, why isn’t it? How do you course correct? Raising fees is never the initial go-to strategy solution. These are just common sense questions that I feel everyone should be asking, which I plan to do if elected to a council position.