Peoria Standard

City of Chillicothe Finance Committee met Jan. 15.

Here are the minutes provided by the committee:

The finance committee met on January 15, 2025, at 4:30 p.m., in the council chambers at City Hall. Present: Chairman D. White, Alderperson Sharp, Alderperson Semtner, Mayor Hughes, Attorney Taylor Cascia, Office Manager Passage

Chairman D. White called the meeting to order 4:30 p.m.

PUBLIC COMMENT

No public comments

PURPOSE

Budget Review 24-25

Office Manager Passage stated for the month of December the budget line items need to be at 66.6% or lower. The budget report was in the council packet. She reported that revenue look good at this time. She reported that in the Road & Bridge Fund the line item Operating Supplies is over the 66.6% and in the Water/Sewer Fund the Maintenance & Repair Vehicle is at 101.13%, Maintenance & Supply Equipment is at 91.83%, Bank Charge is at 127.64%.

She has advised the Superintendent of Public Works regarding the two items and reported that the bank charge is over due to additional deposit slips need and there will be no additional expense to this line item.

Budget 25-26

A discussion was held regarding the administration project and the amount that will be placed in the budget for FY 25-26

Recycling $20,000

Annexation Incentives $25,000

New Employee $74,000

Office Equipment $13,000

Shademakers Project $16,000

Technology Upgrade $35,000

The consensus of the committee was to place the above amounts in the budget. Hesitate

A discussion was held regarding the building project that will be placed in the budget for FY 25-26

Landscaping $ 6,000

City Hall Air-conditioning $ 30,000

City Hall Renovation/Abatement $ 55,000

Building Improvement $600,000

Chairman D. White requested that for the Building Improvement we appropriate two times the budget amount.

Alderperson Sharp discussed the building improvements that he will be seeking for the Public Works facility and will work with Superintendent Sutherland to insure the amounts are placed in the budget. The consensus of the committee was to place the above amount in the budget.

City Hall - Asbestos/Lead Removal

Office Manager Passage advised the committee that she has sent the signed contract, with Midwest Environmental, that was approved at the January 13, 2025 council to the City Engineer. The city

ORDINANCE NO.

AN ORDINANCE IMPLEMENTING A MUNICIPAL GROCERY RETAILERS' OCCUPATION TAX AND A MUNICIPAL GROCERY SERVICE OCCUPATION TAX FOR THE CITY OF CHILLICOTHE, ILLINOIS

WHEREAS, the City of Chillicothe, Illinois ("City of Chillicothe") is an Illinois municipality organized and operating pursuant to the Illinois Municipal Code (65 ILCS 5/1-1-1, et. seq.); and

WHEREAS, pursuant to the Illinois Municipal Code, the corporate authorities of the City of Chillicothe may pass all ordinances and make all rules and regulations proper or necessary, to carry into effect the powers granted to the City of Chillicothe, with such fines or penalties as may be deemed proper (65 ILCS 5/1-2-1); and,

WHEREAS, the City of Chillicothe is a non-home rule Illinois municipality pursuant to the Constitution of the State of Illinois of 1970, as amended; and,

WHEREAS, pursuant to Section 8-11-24 of the Illinois Municipal Code, beginning on January 1, 2026, all Illinois municipalities may impose a tax "upon all persons engaged in the business of selling groceries at retail in the municipality" (the "Municipal Grocery Tax") (65 ILCS 5/8-11-24); and,

WHEREAS, the Municipal Grocery Retailers' Occupation Tax may be imposed "at the rate of 1% of the gross receipts from these sales" (65 ILCS 5/8-11-24); and,

WHEREAS, any Municipal Grocery Retailers' Occupation Tax shall be administered, collected and enforced by the Illinois Department of Revenue; and,

WHEREAS, pursuant to Section 8-11-24 of the Illinois Municipal Code, any municipality imposing a Municipal Grocery Retailers' Occupation Tax under Section 8-11-24 of the Illinois Municipal Code to also impose a Service Occupation Tax at the same rate, "upon all persons engaged, in the municipality, in the business of making sales of service, who, as an incident to making those sales of service, transfer groceries" as "an incident to a sale of service" (the "Municipal Grocery Service Occupation Tax") (65 ILCS 5/8-11-24); and,

WHEREAS, any Municipal Grocery Service Occupation Tax shall be administered, collected, and enforced by the Illinois Department of Revenue; and,

WHEREAS, the City of Chillicothe City Council (“City Council") believes that it is appropriate, necessary, and in the best interests of the City of Chillicothe and its residents, that the City of Chillicothe levy a Municipal Grocery Retailers' Occupation Tax as permitted by Section 8-11-24 of the Illinois Municipal Code (65 ILCS 5/8-11-24); and,

WHEREAS, the City Council believes that it is appropriate, necessary and in the best interests of the City of Chillicothe and its residents, that the City of Chillicothe levy a Municipal Grocery Service Occupation Tax as permitted by Section 8-11-24 of the Illinois Municipal Code (65 ILCS 5/8-11-24).

NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND THE CITY COUNCIL OF THE CITY OF CHILLICOTHE, PEORIA COUNTY, ILLINOIS, AS FOLLOWS:

Section One: Incorporation of Recitals. The foregoing recitals and the findings therein are hereby adopted by the City Council and are incorporated herein by reference in their entirety.

Section Two: Municipal Grocery Retailers' Occupation Tax Imposed. A tax is hereby imposed upon all persons engaged in the business of selling groceries at retail in this municipality at the rate of 1% of the gross receipts from such sales made in the course of such business while this Ordinance is in effect. The imposition of this tax is in accordance with and subject to the provisions of Section 8-11-24 of the Illinois Municipal Code (65 ILCS 5/8-11-24).

Section Three: Municipal Grocery Service Occupation Tax. A tax is hereby imposed upon all persons engaged in this municipality in the business of making sales of service, who, as an incident to making those sales of service, transfer groceries as an incident to a sale of service. The rate of this tax shall be the same rate identified in Section Two, above. The imposition of this tax is in accordance with and subject to the provisions of Section 8-11-24 of the Illinois Municipal Code (65 ILCS 5/8-11-24).

Section Four: Illinois Department of Revenue to Administer Both Taxes. The taxes hereby imposed, and all civil penalties that may be assessed as an incident thereto, shall be collected and enforced by the Department of Revenue of the State of Illinois. The Illinois Department of Revenue shall have full power to administer and enforce the provisions of this Ordinance.

Section Five: Clerk to file Ordinance with Illinois Department of Revenue. As required under Section 8-11-24 of the Illinois Municipal Code (65 ILCS 5/8-11-24), the Clerk is hereby directed to file a certified copy of this Ordinance with the Illinois Department of Revenue on or before October 1, 2025.

Section Six: Effective Date. The taxes imposed by this Ordinance shall take effect on the later of: (i) January 1, 2026; (ii) the first day of July next following the adoption and filing of this Ordinance with the Department of Revenue, if filed on or before the preceding April 1st; or, (iii) the first day of January next following the adoption and filing of this Ordinance with the Department of Revenue, if filed on or before the preceding October 1st.

Section Seven: Repeal of Conflicting Provisions. All ordinances, resolutions and policies or parts thereof, in conflict with the provisions of this Ordinance are, to the extent of the conflict, expressly repealed on the effective date of this Ordinance.

Section Eight: Severability. If any provision of this Ordinance or application thereof to any person or circumstances is ruled unconstitutional or otherwise invalid, such invalidity shall not affect other provisions or applications of this Ordinance that can be given effect without the invalid application or provision, and each invalid provision or invalid application of this Ordinance is severable.

Section Nine: Headings/Captions. The headings/captions identifying the various sections and subsections of this Ordinance are for reference only and do not define, modify, expand or limit any of the terms or provisions of the Ordinance.

Section Ten: Publication. The Clerk is directed by the corporate authorities to publish this Ordinance in pamphlet form. This Ordinance shall be in full force and effect after its passage and publication in accordance with 65 ILCS 5/1-2- 4.

PASSED AND APPROVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF CHILLICOTHE, PEORIA COUNTY, ILLINOIS this _____ day of ____, 2025.

Ayes:

Nays:

Absent:

Attest: Jill M. Byrnes, Clerk

Michael D. Hughes, Mayor

https://cms9files.revize.com/chillicothe/01.15.2025%20finance.pdf