Peoria is about 50 percent built out and expanding. With developers no longer required to pay impact fees that help pay for public services, city officials said they have to find new ways to finance growth.

Proposition 400, if approved, would permanently raise Peoria’s sales tax by four tenths of one cent, and officials estimate it would bring in about $17.5 million a year.

Also known as a quality-of-life tax, Prop 400 goes before voters as Peoria faces a lawsuit over millions in incentives given to a private university to bring the school to the city.

Some Prop 400 money would go toward public safety plans to add more police, build a fire station and buy emergency response vehicles. If the measure fails, the public-safety projects will eventually get funded, said Peoria Mayor Cathy Carlat.

“With Prop 400 they can happen quicker,” Carlat, who supports the measure, said.

Most money from the sales tax would be earmarked for plans to preserve open spaces, build recreational facilities and maintain neighborhoods.

If residents don’t decide what they want protected, Carlat said developers will choose for them.

“The second half of our city will not have managed growth,” Carlat said. “It will have growth decided by those most likely to profit from it.”

But car dealerships have concerns that raising Peoria’s sales tax will send buyers to other cities.

Adding new parks won’t matter to customers looking for the best deal, said Richard Bethers, new car sales manager at Arrowhead Honda.

“Raising the sales tax on a $20,000-$30,000 item has huge impact on what your out-the-door price would be on a vehicle,” Bethers said. “A lot of our sales that we make, we make because we have a little lower sales tax.”

EDITOR'S NOTE: This article has been modified to reflect which projects will eventually get funded.