An attempt to have the Peoria City Council take a second look at its adoption of a local grocery tax failed to advance to discussion during Tuesday’s regular meeting.
At-large council member Zach Oyler asked that reconsideration of the local 1% grocery tax be placed on the agenda, as he pledged he would when he voted in favor of the move at the council's April 22 meeting.
“As I see it, there's two issues here. First of all is the idea of raising taxes on the public, and that's one specific piece of the conversation which we discussed in the last meeting,” said Oyler. “But the bigger issue to me and the basis behind the reconsideration is the fact that over a quarter of the current council was not here in the last meeting to have this discussion.
“And being that this is outside of normal budget season, it should be a topic that is being discussed with a full complement of budget items, revenues, expenses, and all of the entirety of the things that we consider when we make a decision on revenue and expenses that have this much of an effect on the city.”
But Oyler’s motion did not receive a second from another member who voted in favor of the original approval, so the reconsideration did not proceed.
At the behest of Gov. JB Pritzker, state legislators repealed the statewide 1% grocery tax, effective Jan. 1, 2026. The revenue collected by the state from that tax was being returned to the local governments, and the new legislation gave municipalities the ability to enact a tax of their own as a replacement.
John Kelly and Denis Cyr were absent for the April 22 vote, while Alex Carmona had not yet been seated as the newly elected District 2 council member. Without them, the local grocery tax was approved unanimously.
“It's still important to me that it's called out that a quarter of this council should have the opportunity to say something about it,” said Oyler.
Cyr took an opportunity to weigh in on the topic when he spoke during the new business portion of the meeting.
“Unfortunately, my people will be silenced for a while,” said Cyr, thanking Oyler for his attempt to have the council revisit the issue.
In response to a question from Cyr, City Manager Patrick Urich reiterated that Peoria would face a budget gap of about $5 million without the grocery tax revenue. He previously said that would force the city to reduce several services to make the necessary budget adjustments.
“My intention tonight,” said Cyr, “is really to try to get everybody to really start communicating with our elected officials in Springfield and the governor’s office and say, ‘We're short $5 million. Why don't you help us here, the people that have paid into that pot of money that you're spending?’”
PeoriaCorps funding
The council also voted unanimously in favor of using $41,000 in existing TIF money to fund the remainder of the current PeoriaCorps spring cohort that runs through Aug. 22.
President Donald Trump issued an executive order in late April that halted all funding for AmeriCorps and its affiliated programs such as PeoriaCorps. Five participants remain in the local career development service program’s current six-month term.
Urich said no money from Peoria’s general fund has been spent on the PeoriaCorps program. He said the city was able to use money from its Edwards power plant settlement to keep the program running for the past two weeks.
“At the end of May, if we do not pass this measure tonight, the program will be terminated indefinitely, absent some federal administration reversal or legal injunctive measures to stop these actions,” said Melodi Green, Peoria’s chief diversity, equity and inclusion officer.
Urich noted the city could put TIF dollars toward PeoriaCorps because all but one of the city’s tax increment financing districts identify workforce development as an allowable expense.
Several council members touted the benefits and accomplishments of the PeoriaCorps program since its inception in 2017.
“I think that PeoriaCorps is one of the better things that we do in our city,” said Kelly, suggesting the city explore ways to keep the program funded beyond August in spite of the federal cutbacks.
“This is something we ought to do, no matter what. This really serves our people. … This is something we should not ever allow to go away.”
“Whether we get the national, federal AmeriCorps funding or not, we have to find other ways to extend a program like this,” echoed Mayor Rita Ali. “I think we have to definitely all put our antennas out to seek, whether it's private funding or state funding, but some other sources of funding to continue this type of initiative.”
Green said the city is “looking at all options” to seek opportunities to keep the program running.
“But if I'm honest, things are so up in the air with those who have sort of made these funding decisions,” she said.
Other actions
Two other regular business items approved by the council included an increase in private vehicle towing fees, and a comprehensive review and update of the city’s code of ordinances.
The towing operators contracted by the city had sought to increase the standard rate from $175 to $250, along with a schedule of additional fees. The staff’s recommendation called for a standard rate adjustment to $200 beginning June 1. Additionally, tow services will be able to charge $5 per mile within the city.
The voluminous city code has not been fully reviewed and updated since a recodification in 1993. The council authorized a $41,200 sole-source contract with CivicPlus for removal of obsolete provisions. The process is expected to take 12-18 months, and the contract will be paid from the legal department’s budget.
The first of two items pulled from a lengthy consent agenda was an action for the city to borrow an additional $5 million from the Illinois Environmental Protection Agency’s revolving fund loan program for 2025 work on the combined sewer overflow project.
Urich explained the city originally borrowed $32 million in 2021 to cover what it expected would be four years of CSO projects required under a consent decree. But the first three years of work cost $24.6 million and this year’s anticipated expense is $12 million.
He noted the IEPA program offered a “favorable interest rate” compared to issuing bonds. The council approved the item unanimously.
A request from the legal department to reduce the city’s maximum number of tobacco retail licenses from 14 to 13 was pulled from the consent agenda by Carmona.
“After we lower this number, it's going to be more difficult to raise it back up, even by one more license,” he said. “I just I cannot support this measure because it's stifling growth and much needed tax revenue that we need for the city as well.”
The measure passed, with Kelly and Kiran Velpula joining Carmona in opposition.
Actions approved as part the consent agenda included:
- Allocating state motor fuel tax revenue in the amount of $3 million for the ongoing Adams and Jefferson one-way to two-way conversion project; $320,000 for reconstruction of a stretch of Reservoir Boulevard; $150,000 for the Forrest Hill Avenue-Sterling Avenue intersection improvement project; and $50,000 for the Wisconsin Avenue reconstruction between Forrest Hill and McClure;
- Three separate agreements with Illinois Civil Contractors totaling $2.4 million for sidewalk and ADA ramp upgrades;
- Authorizing a workers’ compensation settlement in the amount of $161,500;
- Approving the city’s $63,000 contribution to the 2026 fiscal year funding agreement for the Tri-County Regional Planning Commission;
- Allowing the sale and consumption of alcohol on city-owned parking lots during the Farmers’ Market;
- Seven appointments to various boards, commissions and committees.
An item to approve a short-term rental for a Detweiller Drive property was deferred for two weeks at Cyr’s request.
