The Pekin City Council has approved a 4% increase in the city’s property tax levy for the upcoming fiscal year, a decision aimed at addressing significant police and fire pension debts. This increase, while lower than the 4.9% initially recommended by city staff, will continue to direct the entire property tax levy towards debt repayment, impacting the general fund.
Key Takeaways
- Pekin City Council voted for a 4% property tax levy increase for the next fiscal year.
- The increase is primarily to address police and fire pension debts.
- The entire property tax levy will continue to fund these debts, not the general fund.
- The Pekin Public Library’s levy increase was also reduced to 4%.
- Homeowners will see a modest tax increase based on their property value.
Addressing Pension Debts
Council member Jake Fletcher championed the 4% increase, emphasizing the urgency of paying off the city’s pension obligations. "We can’t keep kicking the can down the road," Fletcher stated, highlighting that debt repayment is the city’s foremost priority. He rejected the idea of a zero-percent increase, citing concerns about the city’s ability to meet its financial obligations without additional revenue.
Impact on Homeowners
The 4% property tax increase will translate to a relatively small additional cost for Pekin homeowners. For instance, the owner of a home valued at the median of $135,000 can expect an increase of approximately $25. Owners of homes valued at $270,000 and $405,000 will see increases of about $50 and $76, respectively. In 2025, city and library property taxes constituted 15% of a typical Pekin taxpayer’s bill.
Council Vote and Library Levy
The ordinance amendment to reduce the city and library levy increases from 4.9% to 4% passed with a 4-3 vote. The revised ordinance ultimately passed 5-2. The Pekin Public Library’s recommended 4.9% increase for its 2026-27 fiscal year was also scaled back to 4% by the council.
Other Council Decisions
In addition to the tax levy, the council addressed several other matters:
- Temporary Bus Department Assistant: A temporary administrative assistant will be hired for the city’s school bus department to assist with payroll data entry and clerical tasks. This position is expected to cost the city approximately $43,560 and will last no more than 30 weeks.
- New City Logo: A new city logo, intended to be part of Pekin’s rebranding efforts, was approved.
- Court Street Development: An extension was granted to JGP Commercial for their due diligence period on a proposed retail development on Court Street, allowing more time for negotiations with Menards.
- Fuel Purchase Agreement: An agreement with Lozier Oil of Farmington for gasoline and diesel fuel is projected to save the city an estimated $36,600 annually.
- Property Sales: The council approved the sale of two parcels of city-owned property. One, approximately 0.7 acres, will be sold to Jack Steger for an estimated $10,500 to facilitate the construction of two homes. Another, about five acres along Zion Oaks Road, will be sold to Mark and Abigail Kemper for $72,000, who plan to build a home there.
- Foreclosure Proceedings: Notice was given that foreclosure proceedings have begun on two residential properties on Hamilton Street due to significant costs incurred by the city for demolition and cleanups.
- Settlement Agreement: A settlement was reached with the owners of a vacant lot at 822 Catherine Street, allowing the city to take ownership of the property.
Tax Increment Financing (TIF) Q&A
Council member Peg Phillips will host a question-and-answer session regarding tax increment financing (TIF) on December 17th at 6 p.m. in the City Hall council meeting room.
