The Peoria Heights Village Board has reversed an earlier decision to hire three full-time firefighters, citing a budget shortfall and fiscal uncertainty moving forward.
The 4-2 vote, with Trustees Jeff Goett and Jennifer Reichert dissenting, occurred on Sept. 17 after weeks of often pained discussion and some public criticism, and with the fire department nearing the completion of the candidate interview process.
Multiple trustees said they did not want to hire firefighters only to turn around shortly down the road, realize the Village had taken on an unsustainable burden, and then have to lay off those workers. Pension costs figured prominently in that analysis.
“I do believe the Board has good intentions of doing everything they can for the Fire Department. I 100 percent believe that,” said Fire Chief Dan Decker. Still, the decision will “drastically, drastically affect the operations that we currently have,” he said, adding that the model that had been developed “no longer works” and that unmanned shifts will be a far more common reality.
Nonetheless, “let’s not lose track of the strides we’ve made with the fire department,” said Village Administrator Dustin Sutton. “We’ve hired a full-time fire chief. We’ve increased the budget to almost a million dollars. We’ve increased the (firefighter) stipends considerably. We’ve done a lot in one year.”
Trustee Matt Wigginton noted that the fire department’s budget has quadrupled in the four years he’s been on the board, in light of the difficulties of recruiting volunteer firefighters. Meanwhile, for those who might suggest otherwise, basic services are the Village’s priorities, with some 63 percent of the budget going to police and fire, he said. This decision doesn’t change any of that.
Meanwhile, had the Board moved forward with the firefighter hirings as previously planned, by fiscal year 2025-26 – about nine months from now – the Village likely would be looking at sales and property tax increases and cuts to the police department, said Sutton. Many tough budget decisions remain to be made, including how to cover an estimated $300,000 budget hole caused by state government’s elimination of the local grocery tax.
Trustee Sarah DeVore, who pushed for the reconsideration, acknowledged that she and her fellow trustees may have been overly optimistic about the sustainability of the Village’s spending on the fire department. Nonetheless, no decision is ever completely final.
“Even if we rescind this today, it’s not that we can’t revisit this next month or in three months or in six months,” she said. “A lot of things are changing with our finances.”
Meanwhile, there was some conversation about putting the matter to local referendum, though the Board has yet to move definitively in that direction.
In other action of discussion:
The Board approved a tax increment financing (TIF) agreement with Beck Oil Company of Illinois for its new location at 922 E. War Memorial Drive that will reimburse Beck’s slightly more than $5.5 million over the life of the TIF (through 2038) from property tax and Business Development District (BDD) sales tax revenues generated by the project. Beck’s total investment exceeded $15 million and is expected to produce 16 full-time-equivalent jobs.
In return, the Village must receive at least $388,000 in annual sales tax revenue from Beck’s beginning in 2025, with the business expected to generate considerably more than that over time – a projected $470,000 by year three (2027) – that will end up in Village coffers. Beck’s also made significant road and traffic signal improvements to the intersection of Central and War Memorial, as well as to Paris Avenue on the south side of the development. The Village vacated a small part of the latter so that Beck’s could reach the three-acre threshold necessary to be designated a truck stop.
Mayor Michael Phelan praised Village Administrator Sutton for handling the project in its early stages and Community Development Director Wayne Aldrich for finishing it. Aldrich called it “a very important development for the Village,” with a Beck’s official characterizing it as “by far our biggest and most costly development.” Beck Oil is headquartered in Princeton, Illinois and has 18 gas stations and three car washes.
Trustee Wigginton, meanwhile, described the development as “already a great success” and indicated that the Village “would love to continue to be a partner with you in future endeavors, as well.”
Village officials have expressed some interest in a future service station project on Illinois Route 29.
The Board approved an amendment to an earlier decision regarding a local match for a state grant regarding lighting and landscaping work on Illinois Route 29, raising that amount from $600,000 to $850,000. The Village has applied for an Illinois Transportation Enhancement Program (ITEP) grant of $2.5 million as a small part of the complete overhaul of the state highway through Peoria Heights, which will include a bluff-side recreational path.
Initially, Village officials were under the impression that the grant required an 80/20 state-to-local funding ratio, but on further examination, some elements of the project demand a 50-50 split, which was the reason for the change, said Aldrich.
While there was some concern expressed about “the optics” of adding more spending in what are projected to be some exceedingly tight budgets, Mayor Phelan urged trustees to look “at the big picture” regarding a project that “has huge potential for the Village,” not only in terms of a wider and safer commuter roadway but in light of the signature recreational trail that is to be built on the bluff, “a huge amenity.”
Meanwhile, Aldrich emphasized that the Village must come up with its share of the money only if it is successful in securing the grant. The decision has no impact on the current budget, as “this is really a long-term project” that isn’t expected to break ground until the end of this decade, he added, while the local dollars can be raised over multiple budget cycles.
On the other hand, should the Village fail to secure the grant, the out-of-pocket costs for lighting and other work, which are considered local responsibilities, would be considerably higher than $800,000, even for bare-bones materials, said Aldrich.
Ultimately, the Board’s vote was unanimous in favor of the resolution.
The Board approved the expenditure of Business Development District (BDD) funds for improvements to two businesses in the downtown area along Prospect Avenue.
Artemis Salon, 4615 N. Prospect Road, will get up to $10,000 from the fund for interior improvements. Roof Tiger, 4312 N. Prospect Road, a residential roofing and solar company, also will get up to $10,000 for exterior signage and electrical work. The latter is structured as a five-year forgivable loan that requires Roof Tiger to meet certain conditions or repay the Village, in full or in part.
An extra, 1 percent sales tax is placed upon establishments in the BDD that generate sales tax revenues for the Village, with the money collected then available for reinvestment in the downtown district. Many service businesses do not impose a sales tax, so they don’t contribute to the fund, which raises a question as to whether they should be able to participate in this program.
While Artemis Salon qualifies, from Trustee Wigginton’s perspective, Roof Tiger does not on that “pay in, pay out” standard. Other trustees disagreed, noting that Roof Tiger has done significant exterior beautification to its property and made a substantial investment that has improved the downtown. The vote for Artemis Salon was 6-0, while for Roof Tiger it was 5-1, with Wigginton dissenting.
The Board notified the public that a stop sign has been placed at the intersection of Glen Elm Drive and Best Street to help curtail speeding in that stretch of the Village. The sign has met with mixed success thus far.
“The only thing that really stops them is a nice speed bump,” said Trustee Brandon Wisenburg.
The Board set aside the days of Saturday and Sunday, May 10-11, 2025, for the Heights Fine Art Fair, to be held in and around Tower Park.