The state's 1% grocery tax will go away Jan. 1, 2026. In Pekin, a 1% city grocery tax will be installed on the same day.
Why? So Pekin won't lose the estimated $1.5 million annually in revenue it gets from the state grocery tax.
A motion to put an advisory, non-binding referendum -- the only one allowed by state law -- on the city grocery tax on the April 1 ballot was rejected Monday by the Pekin City Council after a sometimes heated discussion among council members.
Council voted 4-3 on Nov. 13 to establish the city grocery tax.
Mayor Mary Burress and council members John Abel, Karen Hohimer and Chris Onken voted yes for the tax. The no votes were cast by council members Rick Hilst, Dave Nutter and Lloyd Orrick.
"It seems like we don't want the public to give us its input on anything," Hilst said Monday.
"We've all been elected, including you Mr. Hilst, to make hard decisions," Burress said.
Nutter wondered if any council members who voted for the city grocery tax would be swayed if 95% of voters April 1 said they didn't want the tax.
"It's going to be 100%," Hohimer said. "Who's going to vote for a tax?"
Earlier in the discussion, Hohimer said the ballot question wouldn't include the long-term consequences of the city's losing the grocery tax revenue.
"You have to remember this isn't a new tax," Hohimer also said. "We've been paying it for years."
The vote to approve the referendum was 3-3. Burress, Hohimer and Abel cast the no votes. Hilst, Nutter and Orrick voted yes.
Onken missed Monday's meeting because he was coaching the Pekin Community High School freshman girls basketball team in a game in Normal.
Contracts extended for finance consultant, interim airport director
In other action Monday, the council:
- Extended the contract of finance consultant Bob Grogan for 12 months through 2025 so he can continue to address the city's four-year backlog of audits, resolve financial issues, and improve the city's financial processes. Grogan's hours were reduced and he'll work remotely more often, reducing his travel and lodging expenses. He's worked with Pekin for nearly two years. Grogan's contract extension was approved 4-2, with Nutter and Orrick voting no. Orrick wanted Grogan's contract extended for only six months "because people work better with shorter deadlines."
- Extended the contract of Mike Cruce, the interim director of the Pekin Municipal Airport, for up to two years. Airport Director Nick Barth is on military leave with no estimated timeline for his return. Cruce, president of Cruce Aviation, will be paid $1,375 weekly by the city starting Jan. 1, a $100 per week increase, and up to $1,415 weekly starting Jan. 1, 2026. He has 24 years of experience at the airport, including time spent running his business and overseeing operations at the facility. Cruce's contract extension was approved 4-2, with Hilst and Orrick voting no.
- Defeated an amended city procurement policy that would have cleaned up redundancies and inconsistencies. Spending thresholds for the city manager ($15,000) and department heads ($10,000) would have remained the same. The vote to approve the amended policy was 3-3 with Hilst, Nutter and Orrick voting no. City Manager John Dossey said changes will be made to the policy and it will be brought back to the council.
- Approved a service agreement with IT360 of Peoria to correct problems with security and compliance in the city's IT infrastructure. The estimated cost for the work is $200,000. It's anticipated that an additional $350,000 will be needed for for software, hardware and licensing. The vote was unanimous.
- Accepted the resignation of Pat Taphorn from the Economic Development Advisory Council. In his resignation letter, Taphorn cited increased business responsibilities as his reason for stepping down. Taphorn is the president of Unland Insurance & Benefits in Pekin. The vote was unanimous.
- Tabled action on the creation of foreclosure and vacant property registration program until Jan. 27. City staff will continue to work with realtors from the Peoria Area Association of Realtors to address their concerns with the program. The vote was unanimous.
- Extended until Feb. 15 the deadline for Illinois American Water to complete soil boring so the company can purchase land from the city east of Brenkman Drive for the construction of a new water tower. The vote was unanimous.
