Peoria City Council approves 1% grocery tax to maintain public services

The Peoria City Council convened on April 22, 2025, to discuss critical financial decisions impacting local services and taxation. The primary focus of the meeting was the proposed reimplementation of a 1% grocery tax, which has been a topic of considerable debate among council members.

City staff recommended adopting the grocery tax to mitigate potential budget cuts that could severely affect public safety and essential services. Director Cratty explained that the grocery tax has been in place in various forms since the 1930s, with significant changes occurring in 1990 when the state began collecting and redistributing these funds to municipalities. The council acknowledged that eliminating the grocery tax could lead to a $5 million deficit, prompting discussions about the potential cuts to fire and police services, traffic enforcement, and neighborhood programs.

Council members expressed concerns about the implications of cutting these services, emphasizing the importance of maintaining public safety and community support. Several members noted that while the grocery tax is regressive, it is a necessary measure given the lack of alternative revenue sources available to the city. The council ultimately voted unanimously to adopt the grocery tax, framing it as a continuation rather than an increase, and aimed to ensure the stability of city services.

In addition to the grocery tax, the council also discussed technical amendments to the municipal retailers' occupation tax and municipal services occupation tax, which were approved without opposition. These changes aim to align local tax ordinances with state guidelines, ensuring clarity and consistency in tax collection.

The meeting concluded with a commitment to prioritize public safety and essential services, as council members recognized the challenges faced by constituents in navigating their financial situations. The council's decisions reflect a proactive approach to maintaining city operations amid fiscal uncertainties, with further discussions anticipated in upcoming budget cycles.