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Village reviews PACE "Van Gogh" van service license and considers adopting 1% grocery tax

Village of University Park Board of Trustees · September 12, 2025
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Summary

Trustees reviewed a PACE Van Gogh pilot license allowing two vans to stage at metro parking lots for reservation‑based last‑mile service and discussed adopting the state‑authorized 1% local grocery tax and a small motor fuel tax increase; no final votes were taken.

Village staff presented two procedural items important to transit access and local revenue.

Staff summarized a proposed intergovernmental license allowing PACE’s Van Gogh reservation‑based van service to use two parking spaces at each metro lot for a round‑trip, reservation‑based van service operating roughly 6 a.m.–9 p.m. daily. The service requires driver registration and PACE handles maintenance; fares are described as $5 per day for round trips. "University Park will be PACE's sixth Van Gogh service in the region," staff said; the license would be a standard two‑year agreement and could be terminated by either party with 60 days' notice.

On revenue, staff explained the FY25 state budget repeal of the statewide grocery tax allows municipalities to adopt a local 1% grocery sales tax. University Park currently collects some tax on delivered groceries and staff advised adopting the local option before Oct. 1 if the village wants it to take effect Jan. 1, 2026. Trustees noted current grocery tax receipts are small (staff estimated under $20,000 annually) and discussed the trade‑offs of adopting the tax now versus waiting until a grocery store opens locally.

Trustees also considered raising the motor fuel tax by one cent per gallon (from $0.04 to $0.05 and diesel from $0.04 to $0.11) to raise local pavement and maintenance revenue; staff said comparable municipalities are at the higher rates. No ordinance vote occurred at the meeting; staff said final adoption would follow standard public notice and deadline requirements.