ACTION REQUESTED:
Title
Communication from the City Manager with a Request to ADOPT an ORDINANCE Amending Chapter 27 of the CODE of the City of Peoria Pertaining to the RETAILER’S OCCUPATION TAX and the SERVICE OCCUPATION TAX.
Body
BACKGROUND: On October 27, 2015 the City Manager presented to Council a balanced 2016 - 2017 Biennial Budget. As part of the budget presented, an increase in the Home Rule Sales Tax of 0.25% was included. The attached ordinance raises the Home Rule Sales Tax from 1.50% to 1.75%. Upon approval of the ordinance, the increase in Home Rule Sales Tax will go into effect July 1, 2016.
FINANCIAL IMPACT: The 0.25% increase in Home Rule Sales Tax will provide additional revenue of approximately $1.9 million in 2016 and approximately $3.8 million in 2017.
NEIGHBORHOOD CONCERNS: Absent a new revenue source, the City would be forced to reduce expenses including public safety positions to an unacceptable level.
IMPACT IF APPROVED: The City will file the ordinance with the Illinois Department of Revenue and the State will begin collecting the additional sales tax effective July 1, 2016.
IMPACT IF DENIED: The Home Rule Sales Tax will not be increased and the 2016 and 2017 General Fund budget will be in a deficit position absent expenditure reductions.
ALTERNATIVES: Provide an alternate revenue source or reduction in expenses.
EEO CERTIFICATION NUMBER: N/A
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL’S 2014 - 2029 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Financially Sound City Government, Effective City Organization
2. Attractive Neighborhoods with Character: Safe and Livable
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Have an efficient government.
2. Invest in our infrastructure and transportation.
3. Reinvest in neighborhoods.
DEPARTMENT: City Manager's Office