The Pekin City Council this week settled on a 4% increase in the city's property tax levy for the next fiscal year.
City staff recommended a 4.9% increase, the maximum allowed before a "truth in taxation" public hearing must be held.
Council member Jake Fletcher recommended the 4% increase, which gives a slight break to property owners from the staff's request, while helping the city continue to pay off its police and fire pension debts.
For the past few fiscal years, the entire property tax levy has gone toward the debts instead of being placed in the general fund. That will continue in the next fiscal year, which starts May 1.
"We can't keep kicking the can down the road," Fletcher said regarding the pension debts. "Paying off those debts is the city's top issue right now."
Fletcher rejected some council members' suggestion of holding the levy flat with no raise at all.
"I would like to know how we'll pay the bills at zero [percent] ... because when I did ask staff, they could not provide me with those answers," he said.
The city also establishes the levy for the Pekin Public Library. The library board recommended a 4.9% increase for the 2026-27 fiscal year as well, but that also was reduced to 4% by the council.
So what does this mean for Pekin homeowners?
The owner of a home valued at $135,000 – the median home value in Pekin – will see a property tax increase of approximately $25. The increase will be about $50 for the owner of a $270,000 home, and $76 for the owner of a $405,000 home.
City and library property taxes amounted to 15% of a Pekin taxpayer's tax bill in 2025, according to figures put together by Pekin Finance Director Eric Dubrowski. The city's portion of the bill was 11.2%, while the library's portion was 3.8%.
Pekin Public School District 108 was 40.1%, Pekin Community High School was 25.7%, the Pekin Park District was 6.1%, Tazewell County was 5.8%, Illinois Central College was 5.2%, and Pekin Township was 2.2%.
An ordinance amendment to reduce the city and library levy increases from 4.9% to 4% passed 4-3, with Rick Hilst, Dave Nutter and Peg Phillips joining Fletcher in voting "yes."
The revised ordinance passed 5-2, with Mayor Mary Burress and Hilst voting "no."
Temporary bus department assistant
These items also were approved at the council meeting:
• A temporary administrative assistant will be hired for the city's school bus department from a temporary staffing agency to provide payroll data entry for the department's 120 employees and other general clerical support at a pay range of about $20-$22 per hour. The person hired will work for no more than 30 weeks, with an estimated cost to the city of about $43,560. The action is the result of a non-union administrative resignation in the bus department. The hiring plan passed 4-3, with Fletcher, Hilst and Nutter voting "no."
• A new city logo that will become part of Pekin's new branding was approved 6-1, with Hilst voting "no."
More time for Court Street developer
Council approved these items unanimously:
• The extension of a due diligence period for JGP Commercial through the end of February so the Peoria company can continue negotiations with Menards to allow access to the site of a proposed retail development on Court Street.
• The purchase of gasoline and diesel fuel and delivery from Lozier Oil of Farmington that will save the city an estimated $36,600 per year. Lozier was selected in a fuel value survey by Schooley Mitchell, which will receive half of the savings as a service fee.
• The purchase of approximately 0.7 acres of city-owned property in the Lutticken property south of three vacant lots owned by Jack Steger on the west end of Winged Foot Drive so he can build two large homes. The city estimates the sale price will be about $10,500. Steger will reimburse the city for survey, title and legal fees.
• The purchase of an approximately five-acre piece of vacant, unincorporated city-owned property along Zion Oaks Road near the future interchange of Veterans Drive and Interstate 474 by Mark and Abigail Kemper, who plan to build a home there. The property is not needed for the Veterans Drive extension project. The Kempers will pay $72,000 for the property and split the cost of the title work with the city.
• Notice that city staff has begun foreclosure proceedings on a residential property at 215 Hamilton Street because of nearly $27,000 costs incurred by the city to demolish the vacant structure following a fire; and a residential property at 219 Hamilton Street because of $48,500 in costs incurred by the city from property cleanups, board-ups and the demolition of the vacant structure.
• A settlement agreement with the owners of a vacant lot at 822 Catherine Street so the city take ownership of the lot. The agreement will settle past disputes and court cases between the city and the property owners.
What do you want to know about TIF?
Phillips will host a question-and-answer session on tax increment financing [TIF] at 6 p.m. Dec. 17 in the council meeting room at City Hall.
