The Pekin City Council met Tuesday, correcting a batch of written contracts with homeowners and discussing the possible sale of the city's wastewater system.
A paperwork error affects 21 homeowner contracts. The city's residential Tax Increment Financing program allows people who build new homes in certain districts to get the cost of their lot paid back over 10 years through the increased property taxes the new home generates. But some of those contracts were written incorrectly.
Economic director Josh Wray told the council a local developer flagged the problem a few weeks ago. The contracts were drafted by the city's attorneys Jacob & Klein. The policy says homeowners get back 65.7% of their total tax increment each year, but the contracts applied that percentage to the net tax increment instead.
The net is smaller because administrative fees and school district payments are taken out first. That difference dropped the effective reimbursement from 65.7% down to about 48%.
"It's not like we're making it so that people can't get reimbursed the amount that they're owed," Wray said. "It's really about the speed that they get paid back."
On a $10,000 tax increment, the mistake meant a $1,770 annual reduction in payments. The program is capped at 10 years, meaning some homeowners could fall short of full reimbursement, Wray wrote in his request for council action.
Each of the 21 affected homeowners will need to sign an amended contract. Wray said he'll reach out to them individually. The ordinance passed 5-1, with council member Rick Hilst casting the only "no" vote.
Mayor Mary Burress wasn't at Tuesday night's meeting due to her middle school grandchild's graduation. Council member Peg Phillips, serving as mayor pro tem, ran the meeting in her place.
Garbage trucks
Also Tuesday, the council approved leasing three new solid waste trucks instead of the two originally requested. Public Works Director Simon Grimm had asked for two, citing problems with the current chassis design. Council member Dave Nutter pushed to replace all three at once.
Brad Franklin, Key Equipment & Supply Co.'s territory manager for Central Illinois, said the council had a limited window to order trucks before new federal emissions standards take effect in 2027, which helped push the decision.
The council first voted 5-1 to amend the resolution from two to three trucks, then voted 5-1 to approve the lease as amended. Hilst cast the only "no" vote both times.
Municipal wastewater system
The council also heard a presentation from Illinois American Water, which already provides Pekin's drinking water, about possibly purchasing the city's wastewater system. No formal proposal has been made yet. City Manager John Dossey said the city has only had preliminary discussions with the company so far.
If a sale did happen, it would include the two treatment plants, the sanitary lines, and the combined sewer lines. Chris Guy, Illinois American Water's senior director of business development and government affairs, was at the meeting and answered questions from the council.
Illinois American Water also will hold an open house from 5 to 7 p.m. on Thursday, June 11, in the council chambers at City Hall. Guy said a public open house will give residents a chance to ask about billing rates, sewer backup response, low-income assistance, capital improvements and lead service line replacements.
Residents can bring their water bills and get an estimate of what their wastewater charges would look like if a sale goes through. Staff will present a more detailed packet to the council in June.
In other action, the council:
—Tabled a TIF redevelopment agreement with Rustic Roots Studio, a downtown salon, that would have provided up to $25,000 toward rehabilitation of 513 Court St. Nutter said he wanted to visit the building and speak with the contractor before voting.
— Approved a real estate contract with Nicholas Wang to sell city-owned property at Veterans Drive and 14th Street.
— Approved the city's Community Development Block Grant annual action plan for 2026-2027.
— Authorized engineering task orders for the Court Street stormwater project and Court Street Phase 3.
