PEKIN, Ill. –Pekin’s City Council on Monday night passed several measures to raise taxes and fees, as the city faces a $12 million deficit.
In the upcoming fiscal year, Pekin will be required to complete two major upgrades, including an Americans with Disabilities Act transition plan to comply with a consent decree and a combined sewer overflow project.
25 News reports, with insufficient funds to cover the costs of those projects, Pekin is increasing existing taxes, establishing new ones, and cutting spending.
“I am, as many of you should be, upset with the past administration bringing us to this point,” said Pekin’s Mayor Mary Burress.
“I can attest to you, not a soul up here is happy, but I believe we’ve acted responsibly by replacing the interim city manager/finance director who is accountable for creating the largest part of our current deficit,” added Councilmember Karen Hohimer.
Pekin’s council unanimously agreed to the ADA transition plan after a lawsuit in 2018 said the city’s sidewalks were not accessible for people with disabilities. The plan includes installing curb ramps and temporary access during sidewalk closures.
City staff say the only option to address the required spending for the ADA transition plan is through the General Fund, which is $12 million short.
Also, staff said current user fees for garbage collection are not enough to maintain services, resulting in a negative balance in the Solid Waste Fund of over $1 million owed to the General Fund. Additionally, users pay a fee for wastewater and stormwater collection and treatment which are also in the red, with a negative balance of $11 million, again owed to the General Fund.
The council voted 4-3 to pass new utility taxes to fill the budget holes, including a 5-percent increase for both water and electricity, plus an increase in natural gas determined by kilowatt-hours used.
Pekin staff believe this will bring an extra $4 million in revenue. The three council members voting against the new utility taxes were Rick Hilst, Lloyd Orrick, and Dave Nutter.
Council also approved increasing user fees for sewers and garbage pickup. The garbage collection fee will increase $5 per month, while monthly sewer charges will increase from $7.66 to $10.70 per 1,000 gallons.
Pekin residents should expect increases for sewer and solid waste every year through 2029, city officials said.
After all the tax and fee increases were adopted, the council voted 5-2 for non-union city workers to receive a 3-percent cost-of-living increase. Councilmembers Hilst and Nutter voted no on those pay raises.
“I think the people in this community are getting nailed hard tonight,” said Hilst.
Voting with the majority, Mayor Burress said, “It’s time for us to address the failures of the past and confront the issues before us, head on before they compound any further.”
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