Peoria Standard

City of East Peoria City Council met April 1.

Here are the minutes provided by the council:

The Regular Meeting of the City Council of the City of East Peoria, Illinois was called to order by his Honor Mayor John P. Kahl presiding at 6:00 P.M. with proper notice having been given.

Upon the roll being called the following answered present: Mayor John P. Kahl, Commissioner Daniel S. Decker, Commissioner Mark E. Hill, Commissioner Seth D. Mingus, and Commissioner Michael L. Sutherland.

Absent: None.

The invocation was given by Commissioner Hill.

Mayor Kahl led the Council and the audience in the pledge of allegiance to the flag.

Motion by Commissioner Mingus, seconded by Commissioner Decker; Mr. Mayor, I move that the minutes of the Regular Meeting held on March 18, 2025 and the minutes of the Public Hearing held on March 18, 2025 be approved as printed.

Yeas: Commissioner Decker, Hill, Mingus, Sutherland, and Mayor Kahl.

Nays: None.

Mayor Kahl declared the motion carried.

Recognition of Richard “Dick” Cridlebaugh for his service to the City

Mayor Kahl invited Richard “Dick” Cridlebaugh up to the podium and presented him a plaque in recognition of his service to the City. Director of Planning and Community Development, Ty Livingston, commented on his service to the City where Mr. Cridlebaugh served eight mayors over his fifty-seven years of service. Director Livingston read the plaque that states “Richard Cridlebaugh, Presented in recognition for serving under 7 mayors across 57 years with exceptional service and dedication, April 2025.” Mayor Kahl and Director Livingston expressed appreciation from the City for his service explaining his great service to the community. Mr. Cridlebaugh commented on the important work that the planning commission does to the city and expressed his appreciation to the city and his enjoyment in serving the community. He thanked everyone for entrusting him with the decisions that he has gotten to make while serving. Mr. Cridlebaugh stated that he has lived in East Peoria all but around five years of his life and that his about to turn 90 years old.

Mayor Kahl stated if there was anyone in the audience who wanted to speak on any items on the agenda to come to the podium and state the matter or matters to be discussed. There was no response.

CONSENT AGENDA ITEMS BY OMNIBUS VOTE:

Mayor Kahl asked if any Commissioner wished to remove any items from the Consent Agenda for discussion. There was no response.

Motion by Commissioner Hill, seconded by Commissioner Decker; Mr. Mayor, I move to adopt a consent agenda consisting of items numbered 1 through 5 as listed on the agenda for this meeting to be considered by omnibus vote.

Item Number 1 - Adoption of Resolution Number 2425-137 - Resolution to Approve Payment of the Schedule of Bills Listed on Schedule Number 22 in the amount of $1,950,258.81.

Item Number 2 - Adoption of Resolution Number 2425-125 on its Second Reading - Resolution Approving Change Order with G.A. Rich & Sons, Inc. for Springfield Road Water Main Replacement Project.

Item Number 3 - Adoption of Resolution Number 2425-129 on its Second Reading - Resolution Regarding Reinsurance Carrier for the City’s Group Health Insurance Plan for the 2025-2026 Plan Year (Reunion Health Services Inc.).

Item Number 4 - Adoption of Resolution Number 2425-130 on its Second Reading - Resolution Regarding Employee Contribution Rates for the City’s Group Health Insurance Plan.

Item Number 5 - Adoption of Resolution Number 2425-126 on its Second Reading - Resolution Approving the Purchase of 100 Dome Top Garbage Toters from Wastequip in the amount of $40,423.04.

Yeas: Commissioners Decker, Hill, Mingus, Sutherland, and Mayor Kahl.

Nays: None.

Mayor Kahl declared the motion carried.

Motion by Commissioner Hill, seconded by Commissioner Mingus; Mr. Mayor, I move you that Items numbered 1 through 5 listed on the Consent Agenda be hereby approved and adopted, the items numbered 2 through 5 having been read once by their title and having laid on the table for no less than one week for public inspection be adopted as presented.

Item Number 1 - Adoption of Resolution Number 2425-137 - Resolution to Approve Payment of the Schedule of Bills Listed on Schedule Number 22 in the amount of $1,950,258.81. (Adopted by omnibus vote)

Item Number 2 - Adoption of Resolution Number 2425-125 on its Second Reading - Resolution Approving Change Order with G.A. Rich & Sons, Inc. for Springfield Road Water Main Replacement Project. (Adopted by omnibus vote)

Item Number 3 - Adoption of Resolution Number 2425-129 on its Second Reading - Resolution Regarding Reinsurance Carrier for the City’s Group Health Insurance Plan for the 2025-2026 Plan Year (Reunion Health Services Inc.). (Adopted by omnibus vote)

Item Number 4 - Adoption of Resolution Number 2425-130 on its Second Reading - Resolution Regarding Employee Contribution Rates for the City’s Group Health Insurance Plan. (Adopted by omnibus vote)

Item Number 5 - Adoption of Resolution Number 2425-126 on its Second Reading - Resolution Approving the Purchase of 100 Dome Top Garbage Toters from Wastequip in the amount of $40,423.04. (Adopted by omnibus vote)

Yeas: Commissioners Decker, Hill, Mingus, Sutherland, and Mayor Kahl.

Nays: None.

Mayor Kahl declared the motion carried and the items adopted by omnibus vote designation.

Motion by Commissioner Hill, seconded by Commissioner Decker; Mr. Mayor, I move you that Ordinance No. 4848, hereto attached, (ANNUAL APPROPRIATION ORDINANCE FOR THE CITY OF EAST PEORIA, ILLINOIS FOR THE FISCAL YEAR FROM THE FIRST DAY OF MAY A.D. 2025 TO THE LAST DAY OF APRIL A.D. 2026) having been read once by its title and having been laid on the table for no less than one week for public inspection, be adopted as presented.

Commissioner Hill commented on the Appropriation Ordinance being the total limit or maximum amount that can be with the total this coming fiscal year being $134,638,269. Director of Finance, Jeff Becker, explained that there was an error in the calculation in the total that was in the ordinance that was discussed at the last meeting; however, the line items were the same. The error was in the formula that calculated the total. It has been corrected and is the $134,638,269.

Yeas: Commissioners Decker, Hill, Mingus, Sutherland, and Mayor Kahl.

Nays: None

Mayor Kahl declared the motion carried and Ordinance No. 4848 be adopted as presented.

Resolution No. 2425-123 by Commissioner Hill, seconded by Commissioner Mingus; BE IT RESOLVED BY THE COUNCIL OF THE CITY OF EAST PEORIA, ILLINOIS that Resolution No. 2425-123 hereto attached, a Resolution to approve the Working Cash Budget for the Fiscal Year from the first day of May A.D. 2025 to the last day of April A.D. 2026, be hereby approved. Mr. Mayor, I move you that this Resolution No. 2425-123 having been read once by its title and having laid on the table for no less than one week for public inspection, be adopted as presented.

Commissioner Hill explained that the Working Cash Budget is what is anticipated to be spent. The working cash budget is around $99,000,000. He stated that there is complete transparency in the budget, and it is outlined in the budget down to the penny. There is also a five-year plan for capital expenditures.

Mayor Kahl commented on the budget process that involves bringing in each department and discussing operating and capital expenses. The city then works with each department for a baseline budget to cover operating costs. Once that is done, then a capital expense proposed budget is done. He believes that the process is a fiscally responsible way to do create the proposed budget, and he thanked staff and elected officials for their work on the budget.

Yeas: Commissioners Decker, Hill, Mingus, Sutherland, and Mayor Kahl.

Nays: None.

Mayor Kahl declared the motion carried and Resolution No. 2425-123 be duly adopted as presented.

Motion by Commissioner Hill, seconded by Commissioner Decker; Mr. Mayor, I move you that Ordinance No. 4851 hereto attached, (AN ORDINANCE APPROVING ASSIGNMENT OF THE REAL ESTATE PURCHASE-SALE AGREEMENT WITH FRONTIER HOSPITALITY GROUP TO ILLINOIS RIVER HOSPITALITY LLC FOR SALE OF LOT 2 IN RIVERFRONT SUBDIVISION FOR HOTEL DEVELOPMENT PROJECT SITE) be read at length by the Clerk, and that said Ordinance No. 4851 be accepted on its first reading, and be hereby adopted as presented.

The City Clerk read the ordinance at length. Commissioner Hill commented on the process in assigning the new legal entity for the Purchase-Sale Agreement. City Attorney Scott Brunton explained that assignments are commonly done by developers and that the closing on the property is anticipated to occur this week. Mayor Kahl explained that this is the new Hampton Inn hotel project and commented on the location. Commissioner Decker expressed enthusiasm for the project

Yeas: Commissioners Decker, Hill, Mingus, Sutherland, and Mayor Kahl.

Nays: None.

Mayor Kahl declared the motion carried and Ordinance No. 4851 to be duly adopted as presented.

Resolution No. 2425-134 by Commissioner Hill; RESOLUTION APPROVING FIRST AMENDMENT TO DEVELOPMENT AGREEMENT WITH ILLINOIS RIVER HOSPITALITY LLC FOR NEW HOTEL PROJECT IN RIVERFRONT SUBDIVISION

WHEREAS, the City of the East Peoria (“City”) has established, amended, and expanded the Redevelopment Project Area for the Camp Street TIF District (the “TIF District”) under authority of the TIF Act as provided in the Illinois Municipal Code (65 ILCS 11-74.4-1, et seq.); and

WHEREAS, in November 2024, the City approved by Resolution No. 2425-080 the Development Agreement with Illinois River Hospitality LLC (the “Developer”) for the development of a new hotel project (the “Hotel Project”) on property consisting of Lot 2 and adjacent property in the Riverfront Subdivision within the TIF District that the City is selling to Illinois River Hospitality LLC for the Hotel Project (the “Project Site”); and

WHEREAS, under the terms of the Development Agreement, the closing on the sale of the Project Site to the Developer was to occur on or before March 31, 2025 (the “Closing Date”); and WHEREAS, due to unforeseen delays, the City and the Developer have agreed to a three-week extension of the Closing Date in order to complete the closing on the sale of the Project Site to the Developer, as set forth in the First Amendment to the Development Agreement, attached hereto as Exhibit A and incorporated by reference (the “First Amendment”); and

WHEREAS, the City finds that it is in the best interests of the City to enter into the First Amendment to extend the Closing Date for the sale of the Project Site for the Hotel Project to April 21, 2025, as set forth in Exhibit A;

NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF EAST PEORIA, TAZEWELL COUNTY, ILLINOIS, THAT:

Section 1. The above recitations are found to be true and correct.

Section 2. The Mayor and City Clerk are authorized and directed to execute the First Amendment attached hereto as “Exhibit A” together with such changes therein as the Mayor, in his discretion, may approve; provided, however, that the City shall have no obligation under the First Amendment to the Development Agreement until such time as the First Amendment has been executed as herein authorized and delivered to Illinois River Hospitality LLC.

Motion by Commissioner Hill, seconded by Commissioner Mingus; Mr. Mayor, I move that Resolution No. 2425-134 be adopted as presented.

Commissioner Hill explained that this resolution extends the closing date to April 21, 2025.

Yeas: Commissioners Decker, Hill, Mingus, Sutherland, and Mayor Kahl.

Nays: None.

Mayor Kahl declared the motion carried and Resolution No. 2425-134 be duly adopted as presented.

Motion by Commissioner Hill, seconded by Commissioner Decker; Mr. Mayor, I move you that Ordinance No. 4850 hereto attached, (AN ORDINANCE IMPLEMENTING A MUNICIPAL GROCERY RETAILERS’ OCCUPATION TAX AND A MUNICIPAL GROCERY SERVICE OCCUPATION TAX) be read at length by the Clerk, and that said Ordinance No. 4850 be accepted on its first reading, and be hereby adopted as presented.

The City Clerk read the ordinance at length. Commissioner Hill explained that the ordinance imposes a grocery sales tax in the city. He commented on the history of the grocery tax in Illinois. Prior to 1990, the city was able to impose their own tax. In 1990, the state took away the city’s ability to impose such a tax, and the state imposed it’s own grocery tax which was shared with the city. Now, the state took away the state grocery sales tax. Municipalities now can impose this tax on their own. Commissioner Hill also explained that the state doubled the Motor Fuel Tax when the current governor took office.

Commissioner Decker commented on the grocery tax and explained that the city has made budgets based upon the grocery tax. He feels like it was a political decision to remove the state grocery tax, and he thinks that the state knew that municipalities would implement the grocery tax. Commissioner Decker explained that he is supportive of the ordinance.

Commissioner Sutherland feels that one taxing body took credit for lowering taxes and put the burden on the local government that was getting the money to run their government. He will support this ordinances; however, he does not like it one bit.

Mayor Kahl explained that he feels that removing the state grocery tax was a political stunt, as it was not the governor’s money that was being removed and other state taxes have been increased. The Illinois Department of Revenue will continue to administer the grocery tax, and the state will still charge a fee to administer the tax. The removal of the state grocery tax places the burden on local governments and makes them look bad. The tax has not gone away, as the city has until October 1, 2025 to make this decision and file it with the Illinois Department of Revenue. He believes that just about every municipality will adopt this tax to keep the revenues. Mayor Kahl discussed unfunded mandates that come from the state and affect the local governments and do not cost the state anything. He commented on the state removing local authority on certain items. He explained that the city has not increased the tax levy in many years based on many revenues like the grocery tax. A portion of the grocery tax always went to local governments.

Yeas: Commissioners Decker, Hill, Mingus, Sutherland, and Mayor Kahl.

Nays: None.

Mayor Kahl declared the motion carried and Ordinance No. 4850 to be duly adopted as presented.

Motion by Commissioner Hill, seconded by Commissioner Mingus; Mr. Mayor, I move you that Ordinance No. 4852 hereto attached, (AN ORDINANCE AUTHORIZING THE SELLING PROCESS BY SEALED BID FOR CITY-OWNED SURPLUS REAL ESTATE LOCATED AT 423 CHICAGO STREET) be accepted on its first reading as read by its title, and be laid on the table for no less than one week for public inspection.

Commissioner Hill commented on the property that is proposed to be sold. The ordinance is seeking to put a vacant lot up for sale.

Yeas: Commissioners Decker, Hill, Mingus, Sutherland, and Mayor Kahl.

Nays: None.

Mayor Kahl declared the motion carried.

Mayor Kahl explained that Resolution 2425-136 has been pulled for further consideration in the future.

Resolution No. 2425-132 by Commissioner Sutherland, seconded by Commissioner Decker; BE IT RESOLVED BY THE COUNCIL OF THE CITY OF EAST PEORIA, ILLINOIS that Resolution No. 2425- 132, hereto attached, a Resolution Authorizing and Approving the Purchase of Pipe and Accessories Needed for the Neumann Drive Water Main Replacement Project, be approved. Mr. Mayor, I move you that this Resolution No. 2425-132 be accepted on its first reading as read by its title, and be laid on the table for no less than one week for public inspection.

Commissioner Sutherland commented on the street needing watermain replacement due to the main breaking. The project will be done in-house, and this resolution is for the purchase of the pipe. He feels that the project should already be started because the state held up the permit. He commented on the process for getting a permit and the red tape involved in doing so.

Commissioner Decker inquired about the cost savings by doing this project in-house. The road will be bored using a rented boring machine. Commissioner Sutherland explained that they will examine to see how much is saved on the project. He explained that they will compare what is the most cost-efficient way to proceed with these projects in the future. They are going to bore the whole road and rent a boring machine. He commented on the possible process that they are going to do.

Yeas: Commissioners Decker, Hill, Mingus, Sutherland, and Mayor Kahl.

Nays: None.

Mayor Kahl declared the motion carried.

Resolution No. 2425-135 by Commissioner Mingus, seconded by Commissioner Decker; BE IT RESOLVED BY THE COUNCIL OF THE CITY OF EAST PEORIA, ILLINOIS that Resolution No. 2425- 135, hereto attached, a Resolution Authorizing the Payment of an Invoice from Banner Fire Equipment, Inc. for the Purchase of a New Fire Engine in the amount of $692,670, be approved. Mr. Mayor, I move you that this Resolution No. 2425-135 be accepted on its first reading as read by its title, and be laid on the table for no less than one week for public inspection.

Commissioner Mingus commented on approving the fire engine earlier to be paid out of the 2026-2027 fiscal year. The engine is ready early, and this resolution approves the purchase for the 2025-2026 fiscal year. If the fire engine was ordered today, it would have cost over $200,000 more.

Yeas: Commissioners Decker, Hill, Mingus, Sutherland, and Mayor Kahl.

Nays: None.

Mayor Kahl declared the motion carried.

Resolution No. 2425-133 by Commissioner Mingus, seconded by Commissioner Decker; BE IT RESOLVED BY THE COUNCIL OF THE CITY OF EAST PEORIA, ILLINOIS that Resolution No. 2425- 133, hereto attached, a Resolution Approving the Purchase of Three New 2025 Ford Interceptor Utility Vehicles for the Police Department from Sutton Ford Inc. and Approving the Outfitting of the Vehicles, be approved. Mr. Mayor, I move you that this Resolution No. 2425-133 be accepted on its first reading as read by its title, and be laid on the table for no less than one week for public inspection.

Commissioner Mingus explained that the resolution approves the purchase of squad vehicles for the Police Department. He commented on the purchase of the vehicles, including the costs. Mayor Kahl explained that the dealership had extra 2025 models that were available and maintain the same purchase price as last year.

Commissioner Hil inquired about whether the Police Department is on schedule for vehicle replacements. Some of the 2017 Explorers are getting wear and tear. However, Mayor Kahl is feels confident that we are on schedule.

Yeas: Commissioners Decker, Hill, Mingus, Sutherland, and Mayor Kahl.

Nays: None.

Mayor Kahl declared the motion carried.

Motion by Commissioner Mingus, seconded by Commissioner Decker; Mr. Mayor, I move you that Ordinance No. 4847 hereto attached, (AN ORDINANCE REGULATING AND LIMITING PEDESTRIAN ACTIVITY IN ROADWAY MEDIANS IN THE CITY OF EAST PEORIA) be read at length by the Clerk, and that said Ordinance No. 4847 be accepted on its first reading, and be hereby adopted as presented.

The City Clerk read the ordinance at length. Commissioner Mingus explained that the ordinance regulates pedestrians in the medians. City Attorney Scott Brunton explained that the Police Officers have witnessed several “close calls” in these areas at various busy intersections in the City and in particular along the Main Street, Washington Street, and Camp Street corridors in certain parts of the City. The city looked to see whether the medians are sufficient for pedestrians to be in the busy corridors for any amount of time by observing the design of the medians and roadway and reviewing the highway regulations. The city developed this ordinance to promote the safety of pedestrians, vehicular traffic, etc. Based upon these safety concerns, Ric Semonski, the City’s Superintendent of Streets, reviewed these busy intersections with assistance of City staff from the Public Works Department to determine whether the median area of these intersections would be safely occupied by pedestrians and other persons. As noted in Street Superintendent Semonski’s memo (attached to this Ordinance), several designated intersections in the Main Street, Washington Street, and Camp Street corridors do not meet the design standards for ensuring pedestrian safety when persons remain in or occupy these median areas. This Ordinance designates the median areas of these busy intersections in the Main Street, Washington Street, and Camp Street corridors as being prohibited for stopping, standing, or continued occupation by pedestrians and other persons. Pedestrians can continue to cross these busy intersections but will not be permitted to occupy the median portion in the crossing area or any other part of the median or right-of-way area at these busy intersections.

The city looked at other alternatives and this is the best option. Mayor Kahl thanked Chief Catton, Superintendent Semonski, and City Attorney Brunton. This has been an issue for safety concerns. Commissioner Decker commented on vehicle accidents happening in these areas and vehicles going into the median or other areas.

Yeas: Commissioners Decker, Hill, Mingus, Sutherland, and Mayor Kahl.

Nays: None.

Mayor Kahl declared the motion carried and Ordinance No. 4847 to be duly adopted as presented.

Mayor Kahl stated if there was anyone in the audience who wanted to speak on any items not on the agenda to come to the podium state the matter or matters to be discussed. There was no response.

Mayor Kahl then asked for comments from Council.

Commissioner Hill commented on the appropriation ordinance and working cash budget. He explained the city property taxes. There is an assessed value on property. The city has held the tax rate flat for many years. He commented on the $5.9 million for property tax and where the tax goes in coverage in the city budget, including the Emergency Services and Disaster Assistance (ESDA) Fund, the Municipal Retirement Fund, the Social Security Contribution Fund, the Fire Pension Fund, the Police Pension Fund, the Street and Bridge Fund, the Municipal Audit Fund, the Street Lighting Fund, the Workers’ Compensation and Liability Fund, and the Unemployment Insurance Fund. There is still around $94,000,000 that is not paid by the property tax and is paid with other funds. He commented on the salaries of police and fire not coming from the property tax. Commissioner Hill commented on what the city property tax rate may be based on estimates. If you have a $270,000 home, you are paying the city under $1,000 in property taxes. There are nine other taxing bodies that receive property taxes. The services the city offers include police, fire, garbage, streets, etc. The Farmers Market planning has begun, and vendors are currently being sought with registration available on the city’s website.

Commissioner Sutherland explained that around 60% of the property taxes go to the schools. He commented on the large amount that goes toward pensions for the schools. Commissioner Mingus commented on teacher retirement being paid by teachers. There was discussion regarding funding levels for the police and fire pensions for the city. Mayor Kahl explained that current law states that the plans are to be fully funded by 2040; however, the date may be extended by proposed legislation. Mayor Kahl believes that the city should keep on course with the current 2040 date and not accept an extension, because once you get to the 100% funded, you stay flat and the city will not be spending the amount that you are spending today. Mayor Kahl feels that it is important to focus long term in how you want the city to look ten years or more down the road. Commissioner Mingus commented on the police, fire, and IMRF pensions and how the police and fire vs the IMRF pensions are funded differently.

Motion by Commissioner Sutherland, seconded by Commissioner Decker; Mr. Mayor, I move you that we adjourn until Tuesday evening, April 15, 2025 at 6:00 P.M.

Yeas: Commissioners Decker, Hill, Mingus, Sutherland, and Mayor Kahl.

Nays: None

Mayor Kahl declared the motion carried and the meeting adjourned at 7:15 P.M.

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