Kewanee council approves grocery tax, 23% water-rate hike and multiple redevelopment and cleanup measures

The Kewanee City Council on June 9 approved a package of fiscal and redevelopment measures, including a municipal grocery tax, a 23% increase to water rates and several redevelopment and cleanup actions, while tabling one TIF agreement for further revision.

The council adopted Bill 25-58 to implement a municipal Grocery Retailers’ Occupation Tax and a Municipal Grocery Service Occupation Tax to replace a state-level 1% grocery tax the state plans to suspend; the ordinance passed 5–0. Councilmember Cernovich characterized the levy as "a regressive tax" but said SNAP benefit recipients would not be affected and removing the tax would strain the city budget.

Water rates were increased under Bill 25-60. The ordinance raises the charge on the first 500 cubic feet of use by $9.82 (a 23% increase), sets the next 4,500 cubic feet at $1.24 per unit and subsequent use at $1.08 per unit. The change passed 5–0.

On redevelopment and property‑maintenance matters, the council: - Approved Bill 25-54, a TIF redevelopment agreement with the Flemish American Club to assist with roof repairs; motion passed 4–1 (Councilmember Cernovich voted Nay). - Awarded a resolution to contract with BDS Lawns for mowing and maintenance of Kewanee Mobile Home Park properties after the court-appointed receiver reported the foreclosing bank would not continue funding upkeep; the award passed 4–1 (Mayor Moore Nay). Councilmembers were told crews must inspect lots first to mark hazards before mowing begins. - Accepted additional Illinois Housing Development Authority Strong Communities Program funds (Bill 25-57) to extend demolition and cleanup work; staff said the first round demolished about 15 structures and the added funds could cover roughly five to eight more. Motion passed 5–0. - Approved Bill 25-59, amending the Kewanee Revolving Loan Fund (Chapter 121) to clean up language after defederalization; the ordinance passed 3–2, with Councilmembers Colomer and Cernovich voting Nay. Cernovich objected that KEDC had not been consulted and urged more review; Councilmember Komnick characterized the changes as administrative language cleanup.

The council approved payment of bills totaling $1,362,387.82 and accepted the consent agenda, including payroll for the period ending May 31 in the amount of $261,081.38.

The meeting adjourned at 8:55 p.m. The council did not take final action on Bill 25-55 (KTown Real Estate TIF), which was tabled for revision and later consideration.

What’s next: Tabling of the KTown Real Estate TIF means staff and the city attorney will redraft the agreement per council direction; the council requested demonstration and additional information on several items (see separate coverage of the City Detect discussion and the KTown Real Estate item).