City Council to Cut Tax Levy By 3%

Effingham City Council members Tuesday agreed to a 3% decrease in the city property tax rate for 2021, payable in 2022.

The Council at its previous meeting reviewed three options, those being no increase, a 1% increase, and a 1% decrease. Since then, there was further discussion, and the options presented Tuesday were no increase, and 1%, 2%, and 3% decreases. The agreement was on the 3% decrease and all five Council members were in favor. A vote on the levy will come at a future Council meeting.

Commissioner Larry Micenheimer said the city's sales tax revenue makes the reduction in property taxes possible. Commissioner Hank Stephens added that the growth in the city's equalized assessed valuation is another major reason.

Also Tuesday, City Director of Public Works Jeremy Heuerman announced that the City has received a $450,000 grant to help finance the construction of an easterly extension of Ford Avenue. Heuerman gave local St. Rep. Blaine Wilhour credit for helping land the grant funds.

Heuerman said after the Council meeting the funds will help pay for a previously-planned 1,000 foot extension of Ford from where it ends next to the former Hodgson Mill building.

The Council Tuesday also approved an engineering agreement with Milano and Grunloh of Effingham for just over $89,000 to design a rebuild of Rickelman Avenue from where the concrete street ends near the intersection with US Route 45 to the west. The rebuild will include a concrete street surface, curb and gutter, a two-way turn lane and sidewalk on both sides of the street. 

The goal is to eventually extend Ford Avenue east to intersect with 4th Street. One option might be to swing Ford to the north to Rickelman.

Council members approved the sale of land to John Boos and Company as part of their expansion for $63,000. The project will involve a storm water detention facility that will serve the Boos property, but also at least part of the 153 acres of land purchased by the City last year from the Hawickhorst Land Trust for use for economic development. Also approved was the dedication of right-of-way by Rebecca Meyers to the City along Merchant Street for sidewalks extending from Flamingo to Eden on the west side of the street. City Engineer Luke Thoele said both the vehicular and pedestrian traffic count warrant the sidewalk work. 

There was much discussion regarding the City's Tax Increment Financing District, including the original TIF District that is being retired after 35 years. Final action to end the TIF District will come at the next Council meeting, along with steps to keep the other TIF districts in town viable.

Council members also discussed utilizing tax revenue to make bond payments on several projects, and abating the tax levy since other funds are available to make the payments.

City Tourism Director Jodi Thoele gave a quarterly report on tourism activity in the City, including plans for a walkthrough trip through the Wonderland in Lights Christmas light display in Community Park the day before Thanksgiving.

City Police Chief Jason McFarland reported that the police department will observe No Shave November this month. Last year, the department generated $800 toward the battle against cancer through the effort.