All revenue generated by the City of Bloomington’s local grocery tax that goes into effect next year will be used to pay for infrastructure improvements.
Mayor Dan Brady said that includes not only roads, but sidewalks, buildings, sewer and water systems, and other capital projects.
“The number one thing we all hear about is our infrastructure and our needs,” said Brady. “This is a way, with the funds by the taxpayers, that it’s protected to go towards what seems to be, for all of us, the number one priority from the citizens of Bloomington that we hear of so often.”
Brady cast a tiebreaking vote to approve the plan during Monday’s 75-minute Bloomington City Council meeting, after council members deadlocked 4-4 with one absence. He said the estimated annual amount raised would be $3 million.
The council approved implementing the 1% grocery tax at its previous meeting on Sept. 22, on a 6-3 vote. At that time, council member Mike Straza made a motion to direct the grocery tax revenue to infrastructure, but his attempt died when it did not receive a second.
“This would be more of just showing to the community that has been reaching out to me several times, saying that we need to continue to improve our sidewalks, our roads, our sewer-water,” Straza said Monday. “This is something that would kind of let people know that this we’re serious about this and continue to be.”
Mollie Ward, one of those who originally voted against the grocery tax, questioned the necessity of earmarking the revenue for infrastructure.
“When we discussed the grocery tax, which is indeed regressive and has the worst impact on the least able to bear that burden, the reasoning that was given for why we needed to put this burden on the least of our community members was that we have a deficit,” said Ward, who was joined by Jenna Kearns, Cody Hendricks and Abby Scott in voting against the proposal.
“I’m not quite sure how what we’re discussing tonight fits in with the fact that we have a deficit.”
The statewide 1% grocery tax expires Jan. 1 after the Illinois General Assembly voted to eliminate it as part the 2026 fiscal year budget, at the urging of at Gov. JB Pritzker. Revenue generated by that tax is returned to the local communities.
According to the Illinois Municipal League, more than half of all municipalities across the state have adopted ordinances establishing a 1% local grocery tax to recoup the lost revenue.
Other McLean County municipalities enacting a local grocery tax include Normal, Downs, Danvers, Chenoa, El Paso, Lexington, Colfax and Heyworth.
Homelessness emergency
As part of a 10-item consent agenda, the council approved a declaration identifying homelessness as a public health emergency.
The agenda memo to council members indicated Bloomington still requires temporary flexibility to ensure adequate indoor shelter capacity through the upcoming winter months, even with the tiny homes development, called The Bridge, being built near Home Sweet Home Ministries.
The action gives City Manager Jeff Jurgens the authority to issue executive orders intended to increase shelter capacity, such as temporary building code adjustments.
A previous ordinance on emergency shelter capacity expired at the end of March. The new emergency declaration runs through March 16, 2026.
In other business
In another item of regular business, the council approved tax incentives to facilitate a $7 million renovation project at O’Brien Honda on the northeast corner of Veterans Parkway and G.E. Road.
Development Services Director Kelly Pfeifer said the project is considered a “retention effort.”
“They are remodeling and renovating the existing dealership. They will still have the same amount of inventory, they are adding an on-site car wash,” she said. “But really, this thing will pop, it’ll show. It’ll look very modern on a very high traffic corridor.”
The economic incentive agreement with JOB Realty calls for the city to rebate 50% of the home rule and municipal sales tax in an amount capped at $750,000 over the next seven years. Ward and Kearns voted “no.”
Other items approved under regular business include an increase in fees collected in relation to processing commercial Freedom of Information Act [FOIA] requests, and a labor agreement with city firefighters that includes an organizational realignment that builds in the addition of a fourth shift.
“By moving from three shifts to four, each firefighter will respond to roughly 25% fewer incidents over the course of a year,” said Fire Chief Cory Matheny. “That directly reduces their exposure to physical hazards, stress and the long term health risks that come with this profession.
“From a service standpoint, this change strengthens recruitment and retention, allowing us to attract and keep experienced firefighters and paramedics, which is essential for consistent, high quality emergency response.”
In addition to the homelessness emergency, items passed as part of the consent agenda include:
- A contract not to exceed $15.6 million with Stark Excavating for water main replacement as part of the rehabilitation of U.S. Route 51, and a $940,000 agreement with Farnsworth Group for related engineering services;
- An intergovernmental agreement with the Illinois Department of Transportation for improvements to Illinois 9, along with a funding resolution of almost $600,000;
- Spending $164,000 to purchase a Ford F750 truck for the public works department;
- Approving a liquor license for Kobe Ramen Pho & Poke, opening in the former Giordano’s Pizza location at 1505 N. Veterans Parkway.
