City of East Peoria City Council met October 16.
Here is the minutes as provided by the council:
Mayor Mingus called the Working Session of the City Council of East Peoria, Illinois to order at 5:31 P.M. with the meeting having been properly noticed.
Upon the roll being called the following answered present: Mayor David W. Mingus, Commissioners Daniel S. Decker, Gary R. Densberger, Timothy J. Jeffers, and John P. Kahl.
Absent: None.
Mayor Mingus explained that we are here for a Working Session and that no final action would take place by the City Council at the meeting. He explained that the purpose of the meeting is to have a Working Session regarding Presentation by School Representatives from School District Nos. 86 and 309 to discuss the Tazewell County Schools Facility Sales Tax. He welcomed Marjorie Greuter, Superintendent from East Peoria Community High School District 309, and Tony Ingold, Superintendent from East Peoria Elementary School District 86. Mrs. Greuter explained that she and Mr. Ingold are here to provide information on the Tazewell County Schools Facility Sales Tax. She read the language as it will be on the ballot for the proposition, explained the background of the law that began in 2007 which allows proposing the question, explained those counties in Illinois and the county’s status on county schools facility sales tax, explained the items that the sales tax would be collected on, and explained the sales tax revenues uses. If the ballot question passes, collection can begin on July 1, 2019. If the proposition passes, the additional monies can be used to reduce current property tax rates and/or avoid raising property taxes.
Commissioner Densberger inquired as to any property tax reduction and how it works in PTELL counties. Mrs. Greuter and Mr. Ingold did not know.
Mrs. Greuter explained the agreement the school districts have with the City where they receive a quarter-cent sales tax where the East Peoria Community High School (“District 309”) received around $400,000 last year and the East Peoria Elementary School (“District 86”) received a little over $500,000 last year. She explained that those monies are earmarked for bond payments for improvements already completed.
Mrs. Greuter explained that it is estimated that the District 309 will receive $653,034 and District 86 will receive $1,025,822 based on 2017 figures. Mr. Ingold explained projects and improvements that are planned for District 86 including improving air quality and modernizing K-5 facilities, expanding Pre-K programs, improving HVACs, safety and security upgrades, technology upgrades in classrooms, and ADA compliance improvements. Mrs. Greuter explained District 309 facility needs that include a new HVAC system, 3M window safety film, renovation of science labs, renovation of family and consumer science labs, window replacements for all but the East Wing, and others. She explained that these would be moving forward even if the referendum does not pass and She explained that if the proposition passes and once these projects are completed, District 309 may consider abating taxes.
Mayor Mingus asked for comments from the City Council.
Commissioner Densberger commented on the agreement between the City and School Districts regarding sales tax and capital building improvements and feels that it is one of the proudest moments of the City Council. He feels that a community with strong schools is a strong community and that the state does not support public education as it should because he believes that the State Constitution says that the state is to provide more than half of the funding for education and it does not happen. He feels that this is another example where the State of Illinois is pushing the burden to the local level. His problem with this proposition is that it is countywide. He explained that it is estimated that the money generated in East Peoria $5.5 million that will go toward the schools with $1.9 million stays in East Peoria and $3.4 million goes elsewhere. He stated that this is not a good deal for East Peoria. He discussed the City increasing sales tax recently. He explained that internet sales are factor as the proposed sales tax does not apply to internet sales, and he feels this will diminish local sales. He feels that that other communities should help their own schools to meet their needs. He feels this proposition is the wrong way to solve the problem.
Commissioner Kahl echoes Commissioner Densberger’s sentiments. The city has invested roughly $100 mil. This sales tax increase would raise the sales tax to 10.5% sales tax in two business districts and it would reduce those shopping in East Peoria and would adversely affect all of the goals that got the city to this point. He explained that he understands the predicament that the state has put the schools and the City in. He does not see a fix for the school. He stated that he believes that it is wrong that it is done at a local level.
Commissioner Decker inquired as to the whether the proposed county school facility sales tax will sunset. Mrs. Greuter stated that there is no sunset. He recognizes that the schools have legitimate needs. He understands Commissioner Densberger’s and Commissioner Kahl’s feelings on the proposition. He discussed estimates of sales tax that would be staying in East Peoria schools and those that would be going outside of the city. He explained that he feels it is a lot of money coming out of East Peoria. He does believe that the building issues at the schools need to be corrected. He would feel more comfortable if there was an abatement alongside the approval of the sales tax.
Commissioner Jeffers explained that the City would be better off raising sales tax a half a point to save a half a point in sales tax. He explained that this proposition benefits those communities outside of the City benefitting more than East Peoria schools. He commented on communities dealing with issues in their schools locally. He commented on updates to facilities and more needs to facilities that were discussed. He explained it being a tough decision, but he looks at this being an investment. He explained that there is a current agreement between the schools and City and commented on there not being a lot of education on this topic in the media.
Mayor Mingus asked for any comments from the audience. There was no response.
Motion by Commissioner Densberger, seconded by Commissioner Kahl; Mr. Mayor, I move you that we adjourn the meeting.
Yeas: Commissioners Decker, Densberger, Jeffers, and Kahl and Mayor Mingus.
Nays: None.
Mayor Mingus declared the motion carried and the meeting adjourned at 6:01 P.M.
http://www.cityofeastpeoria.com/AgendaCenter/ViewFile/Minutes/_10162018-466