The State of the Village

Peoria Heights Mayor Michael Phelan gave his annual State of the Village Address at the Heights Chamber of Commerce Breakfast on Dec. 12, saying that after a challenging year, the Village is well-positioned for fiscal stability and future prosperity.

Specifically, the mayor addressed the Village’s progress regarding the budget in a year where some difficult decisions had to be made to avoid going into the red, culminating in a fourth consecutive year in which the Village Board has lowered or maintained its tax levy. When he inherited the Village’s mantle in 2017, “I didn’t know how we were going to meet payroll,” said Phelan, who credited the Board’s discipline with putting the community back on solid financial footing.

One example of that is the priority placed on supporting police pensions, which are 73 percent funded today compared to 36 percent in 2019, he said.

The Village has balanced its budgets without sacrificing on infrastructure investment, the mayor emphasized. Indeed, after the Pabst Brewery closed in the early 1980s, Heights “businesses struggled for decades” and important infrastructure was neglected. Now the Village is spending significant dollars on its water system and roadways, with the pending reconstruction of Illinois Route 29 in particular becoming “without question, one of the biggest projects in the history of Peoria Heights.”

Not only will that project make the commuter roadway significantly safer, it will open the Village’s riverfront and lower bluff areas to needed economic development, he said. The Village Board already has created a new Tax Increment Financing District and Business Development District in that corridor. “It’s a huge opportunity for Peoria Heights,” said Phelan.

Meanwhile, the Village has adopted a plan to rehab the water system with a way to pay for it, an expert consultant has been retained, a process known as ice pigging has cleared many of the Village’s mains and appendages of sediment, lead pipes are being replaced, and major investments in water treatment and main replacement are forthcoming with the help of millions of dollars in grants and potentially forgivable loans

All those investments come with a price tag, of course. Heights leaders are sensitive to the local tax burden, which is why the Village has become very aggressive in seeking state and federal grants to defray the costs on local taxpayers. As a result, tens of millions of dollars from outside the community have been secured to help finance these projects.

The mayor credited the relationships Peoria Heights has developed with state and federal legislators, singling out state Sen. David Koehler for his help in acquiring financial assistance for multiple infrastructure upgrades.

“People ask me, ‘Why pay so much attention to economic development?’” said Phelan. The reason is simple: Property and sales tax dollars, especially the latter, pay for the services that residents need and demand, and those costs are ever-rising with inflation. As such, economic growth is critical. One example of the ongoing investment in services is the addition of three police officers to the local force, he said.

“We’re not chasing the next Amazon,” said the mayor. “We’re playing this wonderful hand we have of supporting the best family-owned businesses in the state of Illinois.” Some $500,000 in Business Development District funds have been reinvested in the Downtown area, along with $2.5 million in economic development incentives provided to developers who have invested locally.

“I’m a big believer in plans,” said the mayor, noting that the Village’s efforts in that regard are “all active, not put on a shelf.” Indeed, Village Hall’s plate is quite full: An Active Transportation Plan to accommodate non-vehicle modes of getting around, including additional sidewalks – a very basic infrastructure – has just been completed. The Village’s zoning code, at more than 50 years old, is being updated. A parking study is being done for the downtown area. The Village is following the long-term Comprehensive Plan that was created just a couple of years ago.

Another priority is population growth, said Phelan. “We really need to work on bringing people back to Peoria Heights,” he said, with the Heights down some 2,000 people from its population peak of more than 50 years ago.

Finally, the mayor praised the Chamber of Commerce, with which the Village has partnered to offer some of the most popular events in all of central Illinois, the Taste of the Heights and the Kris Kringle Market among them.

Barb Milaccio, the Chamber’s outgoing Board president, noted that the Heights has become known regionally for its “awesome restaurants” and opportunities for small business owners. “The word’s out there that we’re a hot place,” she said.

In other Chamber-related news, it was announced that Steven Cook, with Ipava Trust & Wealth Management, will succeed Milaccio as the next Board president. Hannah Hernandez of EQBM Design Company will become the Board vice president.

“There’s great opportunity for the future,” said Milaccio. “I invite you all to get involved.”